Marketing Eco-labels: The Example of the Blue Angel. Hansjoerg Gaus Chemnitz University of Technology, Germany LCM 2007, Zurich August 28, 2007

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1 Marketing Eco-labels: The Example of the Blue Angel Hansjoerg Gaus Chemnitz University of Technology, Germany LCM 2007, Zurich August 28, 2007

2 2 Agenda 1. A Marketing Perspective on Eco-labels 2. Analysing the Marketing of the Blue Angel 3. Factors of Success 4. Opportunities for Action 5. Conclusion: Potentials and Barriers

3 3 1. A Marketing Perspective on Eco-labels Building a Strong Brand With the Consumer: A positive brand evaluation, Acceptance An accessible brand attitude, and Retrieval from memory A consistent brand image. Knowledge Source: Farquhar 1990, p. 8

4 4 1. A Marketing Perspective on Eco-labels Eco-labels: Ideal-typical Response Hierarchy Awareness Knowledge Acceptance/Trust Attention Purchase

5 5 1. A Marketing Perspective on Eco-labels Eco-labels: Ideal-typical Response Hierarchy Awareness Knowledge Acceptance/Trust Attention Purchase

6 6 1. A Marketing Perspective on Eco-labels Explaining Attention to Eco-labels and Purchase of Labelled Products (Thøgersen 2000) Availability Motivation Pro-environental attitude Belief in environmentfriendly buying Paying attention to eco-labels Decision to buy eco-labelled products PCE Trust Knowledge Source: Thøgersen 2000, p. 293

7 7 1. A Marketing Perspective on Eco-labels Conclusions: Main proposition: Eco-labels need professional brand management Besides similarities also particularities: Eco-label not purchased for its own sake Interaction between eco-label and labelled product (situation similar to cobranding) Multi-stakeholder situation (Blue Angel: political actors/disseminators companies/administration, consumers)

8 8 1. A Marketing Perspective on Eco-labels The Marketing Management Process Situational Analysis Strategic Marketing Planning Philosophy, Positioning, Goals, Strategies Operative Marketing Planning (Marketing Mix) Promotion Product Price Place Marketing Implementation Marketing Controlling Source: adapted from Meffert 2000, p. 14

9 9 2. Analysing the Marketing of the Blue Angel Situational Analysis (2001): (Aided) Awareness (+) Paying attention to the Blue Angel in the purchasing situation (-) Willingness to pay higher prices for labelled products (-) Consumers ability to differentiate between the meaning of the Blue Angel and other product labels without third-party evaluation (-) Interest among manufacturers and retailers (-) Freshening up consumers attention and knowledge Source: Federal Ministry of the Environment/Federal Environmental Agency; Gaus and Zanger 2002

10 10 2. Analysing the Marketing of the Blue Angel Linked Communication Agenda Setting Communication (aimed at all target groups) Communication aimed at disseminators Disseminators Consumers Communication aimed at consumers Actors in companies / administration Communication aimed at companies / administration Gaus and Zanger 2002

11 11 2. Analysing the Marketing of the Blue Angel 2003: Aktion Blau (Event-based Communication Platform )

12 12 2. Analysing the Marketing of the Blue Angel

13 13 2. Analysing the Marketing of the Blue Angel Source: Die Welt,

14 14 2. Analysing the Marketing of the Blue Angel Paying Attention to the Blue Angel When Shopping (aided) Percent Total West G East G Source: Federal Ministry of the Environment/Federal Environmental Agency

15 15 3. Factors of Success Benchmark BioSiegel: Food label: products may be purchased for egoistic reasons (+) Easy to understand (+) Advertising budget (+) Cooperation with manufacturers and retailers (POS marketing) (+)

16 16 3. Factors of Success Benchmark FSC-label (Forest Stewardship Council): Wood products: one issue label (+) Easy to understand (+) Community marketing/ Viral marketing (+) Cooperation with manufacturers and retailers (POS marketing) (+)

17 17 3. Factors of Success Blue Angel: Complex portfolio of products and services (-) Many products serve mainly altruistic motivations (-) Low advertising budget (-) Cooperation with manufacturers and retailers (POS marketing) (+?)

18 18 4. Opportunities for Action Strengthening the Marketing of the Blue Angel Advertising budget Cooperation with manufacturers and retailers (POS marketing) Co-Marketing Community Marketing

19 19 5. Conclusion: Potentials and Barriers The Marketing Management Process Situational Analysis Strategic Marketing Planning Philosophy, Positioning, Goals, Strategies Market research Re-positioning? Re-engineering? Operative Marketing Planning (Marketing Mix) Promotion Product Price Place Marketing Implementation Marketing Controlling Brand manager Performance measurement

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