Green Ocean Strategies for Global Marketing World SME

Green Ocean Strategies for Global Marketing World SME Expo 2008 Hong Kong SAR December 12, 2008 10/28/2020

The Ingredients of Brand

Green Ocean Agenda B 2 B vs B 2 C SMEs and brands SMEs and Sustainable Supply Chain Blue Oceans and Green Oceans Case Studies in Green Ocean Strategy Green Oceans for Turbulent Times?

Business-to-Business Marketing vs. Consumer Marketing? considered purchases emotional buy ------ yes impulse buy ---- NEVER

Business-to-Business Buyers career reputation hero job complexity promotion? stress performance review? turnover sustainability sales boss price competitiveness colleagues brand reputation efficiency ROI specifications staff customers…

SMEs + Branding Strategy If done correctly • • • yields new business builds exclusive, trusting, loyal customers permits premium, value-based pricing generates more revenues sustains business in economic downturns

SMEs + Branding Strategy Done incorrectly, or not done at all • destroys credibility and trust • makes you invisible -- a commodity in lowest-bidder market

Brand = Purpose + Differentiation § Purpose is customer-driven § Differentiation -- in fact and substance “How are you different and why should the customer care? ”

Brand strategy for the planet “Prove to the world that solving the climate problem is the biggest opportunity for economic and social mobilization since World War II. ” US Former President Bill Clinton, Greenbuild 2008

Brand strategy B 2 B SMEs …. . solving the climate problem is a Green Ocean opportunity for B 2 B SMEs to build brand in North America and Europe

Global Brands + their B 2 B suppliers differentiated their brand using sustainability as their purpose

motum b 2 b clients

Toyota

What does a B 2 B brand need to understand about supply chain and Sustainability?

CEOs, Sustainability and Supply Chain § Supply chain = key enabler for sustainability § To be in their supply chain = prove you are Green and Ethical § Significant change in the wings

CEOs and Sustainability Top reasons for sustainability management Improve Brand (54%) Differentiate Products (50%) Not compliance, risk or cost/price

Sustainability in the Supply Chain 48% of b 2 b buying decisions turn on environmental & sustainability impact 60% of companies had de-selected suppliers for not meeting sustainability criteria

Sustainability Gap = Opportunity 72% of CEOs say their companies should incorporate sustainability into strategies and operations 50% are doing so but <5% doing it successfully. The math looks good.

SME Brands in B 2 B Supply Chain You and the Sustainability-Driven Supply Chain: Opportunity to rescue global brands facing de-selection for not meeting sustainability criteria

…. . Green Ocean a differentiating brand strategy

Blue Oceans = Make Competition Irrelevant § Create uncontested market space § Find + serve Third-Tier ‘non-customers’ § Value innovation = pursue differentiation + low cost

Herman Miller Path to the Aeron Chair

2000’s Reinvented systems furniture

“be a good corporate neighbor by being a good steward of the environment”

Dirk Jan De Pree (DJ), Founder of Herman Miller Statement of Corporate Values, 1955!

2020 Commitments Zero landfill Zero hazardous wastes Zero air emissions Zero water emissions Minimum LEED Silver All Green Energy

the mirra®

Herman Miller: Green Ocean Brand Winner § Most Admired Company in its Industry, 2007 (Fortune) § One of 50 Most Innovative Companies Worldwide (Fast Company) § One of 50 Best Manufacturing Companies (Industry Week) § World’s second largest office furniture maker

“Doing well by doing good. ”

Interface: Green Ocean Brand Winner § World’s largest manufacturer of commercial modular carpet § Founded in late 60 s “to reinvent floor covering” § By 1996, cut GHG by 56% with energy efficiency and renewables

mission Ø ™ Mission Zero: Our promise to eliminate any negative impact our company may have on the environment by the year 2020.

Randomness and Disorder

Entropy® § zero “attic stock” § near zero waste § near zero repair and maintenance cost ”Their biggest product in the shortest period of time in the history of the company. ” Fast Company

Interface: Green Ocean Brand Winner § Offers best brands in industry § Ranked #1 by top interior designers § Global market share twice that of nearest competitors § Strong Financial Performance

“We’re just getting started. ” “…our sustainability goals for 2020 are a brand enhancing competitive strength and strategic initiative. ”

Skeptical in these economic times?

Still Skeptical?

China’s 2 -year, 4 -trillion-yuan stimulus focus on energy/ environmental sectors (China Daily, Nov. 14, 2008)

Britain adopts plan to cut GHG emissions 80% by 2050 (The Guardian, Nov. 27, 2008)

Still Skeptical? § European Union expected to follow China, Canada, South Korea, California with CO 2 curbs on all automobiles § Dutch-Chinese consortium to invest $1 billion building four wind farms in China § This week: 190 Nations meet in Poland to draft “Kyoto 2” for 2013

US: $300 -700 Billion Obama Plan (Wall Street Journal, Nov. 25, 2008)

Obama Plan § Cut GHG emissions by 80 per cent by 2050 § One million plug-in hybrid automobiles by 2015 § Focus on energy and renewables to stimulate jobs § Generate 10 per cent of US electricity from renewables by 2012.

Still Skeptical?

Building Sustainability Building Sustainable Brands Susan Sheehan motum b 2 b Toronto, Canada tel: +1 -416 -598 -7585 ssheehan@motumb 2 b. com