Businesses Beware: Do Not Milk Consumers!

September 2008 was a difficult month for some, to say the least. On Wall Street, news about the collapse of financial and lending institutions, etc. dominated headlines; while in Asia, China’s melamine-tainted milk scandal came to light when over 54,000 babies were taken ill and a handful even lost their lives.

Focusing on the melamine milk crisis, let’s consider what led to this tragedy.
One issue that no business can truly avoid is rising costs. With oil prices higher than ever before and affecting just about every industry, companies have had to find creative means to stay competitive. The two more commonly taken measures are shrinking portions and substitutions. And these are not exclusive to China…

Consumer food market examples:

1. Your box of cereal may look the same as before, but check the content weight and you might see that you’re now paying the same (or more!) for less product. [shrinking portions]
2. Foods such as sausages or meat patties may now contain a higher percentage of cheaper ingredients such as flour rather than real meat. [substitutions]

Substitution was exactly what Chinese suppliers did in the milk incident – they watered down the milk, then added melamine to boost the apparent levels of protein during food tests.

But there’s no good way to cover up a dishonest penny-saving method for long. Somewhere, somehow, people are going to find out. Consumers are quickly becoming aware and more wary of cost-cutting measures that may affect not only their pockets but also their health and well-being in the long run. And with the way news travels these days, once a business is exposed, it will be very easy for the company to lose everything in no time at all.

If there’s one lesson to be learned from the milk scandal, it is that businesses, whether B2B or B2C, should be ever vigilant to ensure that quality raw materials and consistent manufacturing processes are used in accordance with the highest industry standards. Getting the right certifications and approvals may require some investment, but these are necessary expenditures that should be made without consideration.

Because, should the time come when consumers are affected and the news breaks, it’ll be too late and no use then crying over spilled milk.

The Graying of Green… And How to Stop It

By Yulia Tribrat

While common sense tells us that sustainability is far from a fad, marketing industry experts point to widespread “green fatigue” among many of the nation’s consumers. Put simply, today’s jaded consumers have been bombarded by green messages for so long they’re beginning to have a lessened effect.

But there are ways to get beyond the “green noise” and build your brand’s equity, extend messages about sustainability practices and still come out on top.

Here are just a few…

http://adage.com/cmostrategy/article?article_id=130411

Yulia Tribrat is an Account Associate in the London office of ABI marketing public relations.

Precycling: Will It Catch On?

First, everyone wanted to ‘Go Green’. Then, ‘Carbon Footprint’ became a highlight on people’s lips. Now, ‘Sustainability’ is all the rage. Will ‘Precycling’ be the next buzzword?

Precycling is making sure that items which will generate waste are prevented from entering a home or workplace. In waste management, the common three terms are ‘Reduce, Recycle, Reuse.’ Precycling is perhaps best described as ‘Refuse’ – not as in ‘waste’, but ‘say no’ or ‘reject.’ In essence, it is the practice of avoiding products that will require reducing, recycling, or reusing in the first place.

Though the term precycling has been around for at least 20 years now (earliest reference Trendspeak found was in 1989), it hasn’t yet caught on with consumers in a major way like the other concepts mentioned above. But with social responsibility becoming ever popular, and with greater education amongst consumers about the environmental effects of many of their purchasing decisions, precycling could very well be the next big thing among the masses.

Final Thoughts from the Sustainable Packaging Forum

With a five-hour wait at the Denver Airport before journeying home, I had the chance to review my notes and give some thought to a very informative two days.

The final day’s speakers and roundtables, in my opinion, got down to the nitty-gritty of evaluating a company’s sustainable practices and products: Measurement. Which tools should you use? In which contexts? All metrics are not created equal – so which do you choose?

Colbert Reports from Denver

Tim Colbert continues to report from the Sustainable Packaging Forum in Denver:

Live From the Sustainable Packaging Forum

Having posted some audio musings from the opening moments of the Fourth Annual Sustainable Packaging Forum, I’ve ducked out of lunch early to share some keen insights from this morning’s first session.

Entitled Sustainability and Cost: Responsible Value Chain Business Decisions in a Weak Economy, the discussion featured CPGs (Kellogg, Frito-Lay, Sara Lee), packaging companies (ALCAN, GP) in addition to raw material suppliers and machinery manufacturers.

The main take away is that a slowing economy in many instances provides a cataylst for companies throughout the value chain to increase efficiencies and decrease energy use.

I was writing things down so fast during their spirited give and take that the following quotes are without attribution. But I guarantee that this is what was said. Some choice outtakes:

“We all agree sustainability is not a fad-it is here and here to stay.”
“Sustainability is now woven into decision making from the ceo on down.”
“Our ceo has said publicly and often that is one of our most important business opportunities.”
“Sustainability is about forcing efficiencies into the system”
“Major brands are actively looking further down the sc to tap innovatove suppliers and resin companiesm”

And my favorite: “We’re already doing things that are right–now we need to get the message out.”

Indeed. As a professional communicator in BtoB I am frequently frustrated by the inability or unwillingness of companies to responsibly communicate their sustainability successes and plans.

Opportunity, in the words of that anthem from the 70s, keeps walkin by. (Roberta Flack)

Audio: ABI at Packaging Sustainability Forum

Tim Colbert, director at ABI, is attending the Sustainability Packaging Forum in Denver this week.  He’ll be sending podcasts from the forum all week.

Denver, CO  (September 9, 2008) –  Packaging Professionals attending the Sustainable Packaging Forum (Sept 9 – 11 in Denver) will learn more about a new service that helps effectively communicate sustainable practices up and down the supply chain to differentiate products and build business.  The new service, called Sustainability Driver^TM, is from BtoB marketing public relations firm ABI which will be exhibiting at the forum. For more information on the service visit www.sustainabilitydriver.com.

“This new service is ideal for companies working in the packaging industry,” says Tim Colbert, director at ABI who will attend the event.  Colbert will post reports live from the conference at www.trendspeak.com.  “Companies up and down the packaging supply chain have positive green initiatives that can help them differentiate their products or services.  Sustainability Driver^TM helps ensure that they are communicating their full benefits, targeting decision makers, and realizing a business return on their green investment.”

ABI has worked in the packaging industry for nearly 30 years.  Working with some of the industry’s top leaders, the marketing public relations agency has helped companies communicate business value, differentiate brands, and launch groundbreaking technologies.

“Our extensive experience in packaging combined with our expertise in sustainability communication gives us unique insight into this powerful trend,” says Colbert.  “We’re happy to be part of this forum and look forward to contributing to the conversation on this important issue here in Denver.”

Read the full release here: Link

Audio: ABI Launches New Sustainability Driver Program

ABI has launched a new service that lets BtoB companies promote their sustainable practices. The services will help companies both identify green initiatives as well as develop strategies to promote them through the supply chain.

Tim Colbert, a director at ABI, talks about the programs benefits and ABI’s experience working with BtoB green initiatives.

Listen to a previous interview with Elisabeth King on BtoB green initiatives here: Link

From the press release:

ABI, the leader in business-to-business marketing public relations, announces Sustainability Driver™, a new program that helps BtoB companies effectively communicate sustainable initiatives and realize positive business results from green practices. For more information, BtoB visit www.sustainabilitydriver.com.

Sustainability Driver™ consists of a strategic four-stage discovery and communication process: 1) Assessment Workshop, 2) Competitive Landscape Overview, 3) Analysis and Results Presentation, and 4) Integrated Sustainability Driver Communication Plan.

Sustainability Driver™ will enable BtoB companies to effectively communicate benefits such as lean manufacturing and operations, sustainable materials, reduced shipping costs, and improved energy savings to high-level decision makers.

Sustainability Driver™ will help identify and position sustainability benefits and create strategic messaging to help business fuel relationships with key customers and prospects. ABI will also develop a focused Sustainability Driver™ communication program to discover opportunities and drive sales.

For its nearly 30 years of exclusive focus on BtoB, ABI has developed tactics and strategies to help manufacturers overcome commodification, communicate benefits over features, and reach key specifiers. ABI has used this unique experience to create Sustainability Driver™ especially for BtoB companies.

“In BtoB we have always focused on business benefits and sustainability is no different,” says Isacson. “Right now we are working with companies to identify what is unique about their sustainable practices and how to most effectively communicate the business value so they can discover opportunities and grow market share.”

Read the press release here: Link

Visit the website here: Link