A marketing playbook for sustainable products

Playbooks for success in sustainability

The three types of products (independent, dissonant and resonant) all have different playbooks for targeting green, blue and gray consumers.

Independence strategies generally provide temporary differentiation benefits. Because customers can choose to get their sustainable benefits from a completely different type of product, it is difficult to charge a premium for this in the long term. One of our B2B customers, Georg Fischer (GF), uses renewable materials in all polyvinyl chloride (PVC) metric pressure pipes, fittings and valves. For gray customers, there is no benefit in emphasizing sustainability features – especially as gray customers may wonder if there is a hidden sustainability price premium or performance cost. However, the sustainable production of GF is a selling point for green and blue customers.

Dissonant products require customers to accept reduced performance in exchange for sustainability, but companies can profitably sell such products to green consumers and, in some cases, even to blue consumers. One strategy for broadening the customer base is to attract a subset of blue customers who can be persuaded to accept a performance sacrifice because of new benefits associated with a company’s sustainability actions. An example of this is Oatly, whose plant-based milk struggled to secure sales when it launched in 1994 as a lactose-free alternative. However, in 2014 it changed its image to a lifestyle brand for the ‘post-milk generation’, attracting customers in the blue category.

Products with resonant sustainability features have much more leeway to target a broad customer base. However, when targeting grays, they still need to be careful. GEA, a B2B manufacturing customer of ours, designs equipment with an emphasis on sustainability and cost-efficiency. The AddCool solution for milk powder production reduces CO2 emissions by up to 80% and operating costs by 20% to 30%, while maintaining product quality. European customers, mainly green and some blue, have often paid premium prices for GEA equipment. However, certain American and Asian customers are often gray. For these markets, GEA has adjusted its messaging and pricing, emphasizing economic benefits (such as lower energy and water consumption) rather than sustainability.

One size does not fit all

Our research provides ample evidence that sustainable products cannot all be marketed in the same way. How their social and environmental benefits interact with traditional product benefits will influence which consumer segments they appeal to and which strategies work best.

Social and environmental attributes interact with traditional attributes in ways that significantly influence a product’s appeal to different consumer groups. Taking a one-size-fits-all approach to sustainability marketing risks alienating some customers. Brands should segment their customers based on their attitudes towards sustainability and tailor their messages accordingly.

At the heart of a successful sustainable offering lies innovation, and the real battle for sustainable products will not be waged through advertising or public relations stunts, but in research and development laboratories. This is how successful companies will develop breakthrough solutions that not only deliver unparalleled performance, but also promote environmental protection and social well-being.