Sustainability Communication at Point of Purchase

Case Studies

Sponsored by:

Prepared by: Stratos Inc. 2009

Introduction to the Case Studies

The company case studies provide summary information on participants participant s practices in terms of what, why and how sustainability information is being communicated at point of purchase. Companys perspectives on challenges and risks, reliance on best , practice guides and assurance practices are also presented where applicable. The information presented in the case studies can be found in the main report.

List of case study companies:

Aveda Boots Canadian Tire Marks & Spencer p Mountain Equipment Co-op Procter & Gamble Timberland

Examples of what Aveda communicates at point of purchase

Product attributes Focus on natural / organic properties, ethical sourcing, animal testing Product lifecycle Campaigns to encourage the recycling of bottle caps Operational performance Secondary focus on promoting environmentally friendly attributes of store fixtures Global & community issues Campaign to encourage the use of wind power

CASE STUDY
COMPANY PROFILE Aveda manufactures and retails professional plant-based hair care, skin care, makeup, Pure-Fume and lifestyle products. Founded in 1978 with the goal of providing beauty industry professionals with high performance, botanically based products that would be better for service providers and their guests, as well as for the planet. www.aveda.com

WHY communicate about sustainability?

Aveda communicates about sustainability because it is integral to its founding mission: to care for the world in which we live, from the products we make to the ways in which we give back to society. The companys entire product line has been developed from plant-based sources. Sustainability point of purchase (POP) communication helps convey Avedas beneficial product attributes, environmental and social performance, and provides a basis for brand differentiation differentiation. Consumers remain loyal to Aveda because they are able to make a choice that is good for the planet, without compromising product performance.

WHY? Brand and Consumer Loyalty HOW? - Aveda strives for a sustainable consumer experience though the use of: labels, posters, displays, packaging, and trained staff.

What media does Aveda use?

Aveda communicates the sustainable attributes of its products by printing related information directly on its packaging. It tells unique stories about product development through the use of in-store posters and through interactions with trained staff during product trials and informal conversations. For initiatives that call the consumer to action, Aveda communicates primarily th i il through th use of posters and interactions with staff. However, h the f t di t ti ith t ff H occasionally, labels are applied to packaging to highlight a featured product, e.g. earth month product.

CASE STUDY

For Aveda, an integral part of a successful sustainability communications program is getting the products

performance right (in terms of quality, functionality and

sustainability) before communicating with consumers.

Aveda communicates about only one main level story at a

time and keeps the message simple. For example, during Earth Month, Aveda might present posters highlighting the p , g p p g g g positive impact of organic farming on local access to clean water. Because of the organic ingredients in Avedas products, this messaging is ideal because it links the product value chain to

St ff interactions Staff i t ti

are a particular emphasis of Avedas i l h i fA d

sustainability communication efforts. Managers participate in monthly sessions that focus strongly on the sustainability attributes of new products. Staff also receive comprehensive orientations upon hire and are frequently tested by secret tested shoppers about their knowledge of product sustainability attributes.

sustainability issues, and educates the consumer on these

issues at the same time.

To supplement Avedas focused POP communication, more

In order to gain assurance that their

detailed information and a wide variety of sustainability stories can be found on the companys

sustainability-related claims are authentic, Avedas Earth

website. Aveda also focuses on

and Community Care Team works with the Este Lauder

legal department to review each sustainability-related claim before making it public. For example, Aveda authenticates claims related to energy efficiency, carbon footprint and offset greenhouse gas emissions.

practical messaging that informs consumers about specific actions they can take to reduce their environmental footprint. The poster above highlighting Avedas commitment to renewable energy might b supplemented by posters encouraging consumers to use i ht be l t db t i t renewable energy sources. This can help consumers feel part of the solution and engages consumers on Avedas mission.

Examples of WHAT Boots Communicates at Point of Purchase

Product attributes Product lifecycle Focus on carbon footprint Washing in cold water

CASE STUDY

COMPANY PROFILE Leading UK health and beauty retailer and member of Alliance Boots. Boots believes that corporate responsibility is the key to being an innovative forward thinking and healthy company. For 60 years company years, Boots has strived to imbed sustainability into its business and recently has focused on reducing its carbon footprint throughout its chain of influence. Boots has focused communications about sustainability as its consumers expect it to be managing sustainability as part of doing the right thing. www.boots.com

WHY communicate about sustainability?

Boots has focused its sustainability communications to meet consumer expectations. Its consumers expect Boots to be managing sustainability as part of doing the right thing, and Boots has found that consumers want to be able to buy products that are doing something positive for the planet.

What media does Boots use?

Boots introduced two carbon footprint reduced Botanics shampoos using point of purchase posters and displays. Boots finds posters and displays allow more flexibility than on-product/packaging carbon footprint labels because the message can be more easily changed based on consumer feedback, or more easily tailored to different audiences. y Some in-store posters call on consumers to take action and use cold water for hair washing in order to reduce the high carbon emissions associated with the products use. Posters also incent consumers that this approach will help them save money through reduced energy bills. Boots also uses banners throughout their retail space to inform consumers of the companys achievements and commitment to carbon reduction.

WHY? - Brand and Consumer Expectations

HOW? Carbon Label on Posters and Displays

CASE STUDY
Boots has been working to imbed sustainability within its business for over 60 years. In response to

market research indicating that

to develop a program to

consumers acknowledge climate change as an important problem, Boots began working with the

Carbon Trust

reduce its direct carbon dioxide emissions The initial focus was to emissions. reduce the carbon content of two Botanics shampoos, but Boots is applying lessons learned about carbon management across its 30,000 products and value chain.

As a result of carbon management

activities, B t h reduced its carbon emissions by more than ti iti Boots has d d it b i i b th

10,000 tonnes.
more than

Additionally, Boots estimates that it could save

1 million through cost savings associated with its Boots takes a straightforward approach to specific actions
the consumer can take to

reduction activities activities.

sustainability messaging, showing their percentage carbon footprint reduction and providing

reduce their carbon footprint during product use. Boots does not attempt t explain to the consumer how it has reduced its carbon tt t to l i t th h h d d it b footprint, but keeps the message simple.

Gaining assurance

that its sustainability-related claims are substantiated through third parties like the Carbon Trust is important to the credibility of initiatives and protects Boots from negative media attention which could damage the brand.

Examples of WHAT Canadian Tire Communicates at Point of Purchase

Product attributes Focus on energy & water conservation, waste reduction, chemicals Product lifecycle Ideal temperature for thermostat setting to conserve energy Operational performance Communications program is under development Global & community issues JumpStart program helps kids in financial need participate in sports & recreational activities

CASE STUDY

COMPANY PROFILE Canadian retailer of general merchandise, offers mix of three specialty categories automotive, sports and leisure and home. As one of Canada s most trusted Canadas companies, Canadian Tire integrates economic, social and environmental concerns into its values, operations and business strategy. The commitment to being a responsible corporate citizen is part of the company s companys strategy for long-term growth. www.canadiantire.ca

WHY communicate about sustainability?

Canadian Tire builds its point of purchase sustainability communication to deliver on four primary business objectives: consumer expectations; corporate brand; sales growth; and consumer loyalty. Over the past three to five years, Canadian Tire has seen a growing interest from the public and from its consumers in environmentally preferred product options. It considers meeting these needs critical to its business success. As one of Canadas most trusted brands, Canadian Tire aims to build consumers for , life. Its consumers trust that it will do the right thing, and delivering environmentally preferred products that perform well reinforces that trust.

WHY? - Brand and Product Differentiation

WHAT media does Canadian Tire use?

Canadian Tire communicates the sustainable attributes of its products and ways in which consumers can reduce energy consumption through information printed directly onto product packaging and through labels such as EcoLogo and Energy Star. This information is supplemented by product knowledge books which are books handed out in store that provide details about various products groups (e.g. fans), coupled with information about energy performance or other environmentally preferable attributes. It also uses staff training to encourage and to engage consumers about energy conservation measures and the sustainable attributes of its products. In-store posters and displays communicate about Canadian Tires JumpStart program and its partnership programs with utilities across the country. 7

HOW? - Canadian Tire considers product labels and id d tl b l d packaging information to be an effective sustainability point of purchase media, because the consumer takes the information home.

CASE STUDY

Canadian Tires communication program focuses on

product performance first, and details of a products environmental preferability compared to other products, second. By coupling this information, Canadian Tire helps

As part of its sustainability program

A Greener

change consumer behaviour be assuring them that products that are better for the environment, perform as well or better than standard products.

y Tomorrow Starts Today, Canadian Tire sells over 1200

environmentally preferable products, including household cleaners, CFL bulbs, lawn care products, and solar panels.

A key communication

tool used by Canadian Tire is encouraging the consumer to

consider the impact of individual choices and the potential benefit of using their p g products. An example of such p messaging is: If every household in Canada switched from a 750ml bottle of traditional cleaner made with petroleumbased raw materials to an All-Purpose Cleaner made with natural ingredients, like our Blue Planet product, we could save 2500 barrels of oil.

Blue Planet, its showcase eco-line, provides

consumers with more sustainable options that also help save money on utility bills.

Canadian Tire feels strongly that

product performance must not be compromised in efforts to make the product more sustainable, as uptake by consumers will be limited.

Of primary importance to Canadian Tires ensuring the credibility of

communication program is

the information
Tire relies strongly on

communicated to consumers. Canadian

independent certification i d d t tifi ti

bodies

like EcoLogo and EnergyStar and also reviews other

claims. Information about product claims are available in-store in case of consumer request.

Examples of WHAT M&S Communicates At Point of Purchase

Product attributes Product lifecycle Focus on fair trade, free-range, organics, climate free range, change & energy Campaign to encourage washing in cold water (90% of carbon in lifecycle associated with product use)

CASE STUDY

COMPANY PROFILE Leading UK retailer of clothing, home products and responsibly sourced food. M&S plans for sustainability at a strategic level. One of its five key objectives is the integration of its Plan A (sustainability strategies) into every aspect of its business so that it grows in a sustainable way. M&S plans to achieve carbon neutrality and zero waste to landfill by 2012.

WHY communicate about sustainability?

M&S communicates about sustainability to build: brand differentiation and in

www.marksandspencer.com

anticipation of a rapidly changing market place. Less directly, efforts to robustly understand and communicate sustainability performance has helped reveal operational efficiencies for M&S. The M&S brand is associated with trust and the idea that when you buy from M&S you are doing the right thing and getting value for your money.

WHY? - Brand

WHAT media does M&S use?

M&S uses labels of external standards such as Forest Stewardship Council (FSC) and Fair Trade on some of their product packaging and have developed their own supportive labeling, e.g. air freight logo to designate products that have travelled by air. Posters and window displays are used to promote the Look Behind the Label Campaign which promotes the sustainable attributes of M&S products. The use of posters is also strongly linked with communication around product lifecycle campaigns and partnerships with organizations such as NGOs.

HOW? - Use of independent labeling schemes, schemes internal labels, posters and displays.

CASE STUDY

M&S

Look Behind the Label

is a communications complement to its Plan A

sustainability program. Focusing on the sustainable attributes of M&S products, it communicates about issues ranging from climate change, waste reduction, safeguarding of natural resources, ethical trading and building a healthy nation. resources nation

M&S is committed to

enacting real product sustainability improvements and communicating these to its consumers. To do this, M&S believes in

starting with operational performance, when

ensuring the validity of its product sustainability claims. M&S uses a four-level assurance program that includes

external auditing of its sustainability data, internal external

audit

of its Plan A governance and managements systems (including supply chain), Plan A systems and engagement with

project management

stakeholders . This helps ensure that the data on which M&S claims are based is
accurate.

M&S is focusing point of purchase communication on areas where consumer

awareness is high, e.g. fair trade and free range, and where consumers can take action to improve their environmental and social footprint. M&S also tries to link more sustainable behaviour with saving money. Consumers have responded positively to M&S efforts in this area. For example, in its initiative through in-store posters to encourage

clothing

recycling

through OXFAM, consumers who donated clothing were given a 5 voucher to

t t f hi h d d When consumers were mailed a similar il d i il use at M&S stores, 55% of which were redeemed. Wh voucher, the rate of redemption was only 5%., indicating that improved results can be achieved where the retailer can engage the consumer to take meaningful action. 10

Examples of WHAT MEC Communicates at Point of Purchase

Product attributes Focus on organically grown cotton, recycled polyester & P C-free products, ethical V sourcing Product lifecycle Encourage the reuse or recycling of gear Operational performance Use of renewable energy, environmentally-preferable products, building sustainability & waste Global & community issues Protecting wild places & encouraging Canadians to play outdoors. Partnership with NGO aiming to P t hi ith i i t ensure that 50% of Canadas wildness is protected forever

CASE STUDY

COMPANY PROFILE Mountain Equipment Co-op (MEC) is Canada's leading supplier of quality outdoor gear and services. As a cooperative, MEC exists to serve the needs of its members and builds its products with purpose, people, and the planet in mind. One of MEC' core values is integrity - and as a result, O f MEC's l i i i d l it looks for ways to provide products that are demonstrate integrity in every way - value, quality as well as environmentally and socially. MEC also works to reduce the ecological footprint of its operations, and supports its community be helping to conserve wild spaces and engaging people in outdoor recreation www.mec.ca

WHY communicate about sustainability?

MEC communicates about sustainability because its consumers (members) want to know. Through direct and web-based interactions, consumers indicate that they are interested in having more information about the sustainable attributes of MECs products so that they can make better decisions about what products they buy. The concept of sustainability is also directly connected to MECs brand and core values, so communicating with consumers about sustainability is values considered essential to the company.

WHY? - Consumer Expectations, Brand and Product Differentiation

WHAT media does MEC use?

HOW? - MEC Product Sustainability Logo, Posters, Displays. Staff Interactions and Catalogue

To communicate about the sustainable attributes of its products, MEC has designed its own product sustainability symbol that is applied to the product during its manufacture The symbol indicates products that contain organically grown cotton blend (at least manufacture. 50%) or organically grown cotton (at least 100%), recycled polyester content (at least 50%) or are completely P C-free. V MEC relies strongly on posters and displays to communicate both about its operational performance and its global and community issue areas. For example, signage throughout the retail space guides consumers on a tour highlighting the stores sustainability features, and posters can be used to address regional differences related to community issues. A recent edition of the MEC catalogue (available in-store) featured a two-page spread called The Power of Choice, highlighting ways in which MEC and its consumers can make a positive impact on the environment. MEC also uses staff training, prints sustainability messages on purchase receipts and thinks that interactive point of purchase communication such as being able to cross check the sustainability information of products using personal handheld technology is not far off. 11

CASE STUDY

In fall of 2007, MEC carried over

342 products with an internally

in order to help consumers differentiate

developed sustainability symbol

p products with more sustainable attributes. Currently, the symbol is applied only to MEC y, y pp y brand products, but efforts are underway to include other products with similar attributes.

Of primary importance to the MEC sustainability communication strategy is to

inspire

its consumers and to make them feel as though they are part of something exciting. As a result, MEC feels that the tone of its messaging is crucial and strives to avoid preaching, but rather develops

action-oriented messaging.

MEC also believes the

messaging must be simple enough to be quickly understood and absorbed at point of purchase, purchase

while maintaining the integrity of the sustainability

It is important to MEC to

story and the complexities of the associated issues.

communicate both positive and negative aspects of its performance. This is the area where MEC feels the risk in sustainability communications lies for most companies.

Another associated concern for those companies communicating specifically about a line of products within a larger

retail context, is the risk of the halo products outside the line.

effect, i.e. the transference by consumers of sustainable attributes onto website and associated blogs, In terms

MEC prefers to keep its point of purchase communication messaging simple and

supplements its point of purchase efforts with in-depth communications through its

which are used as interactive tool to solicit and reply to member inquiries and engage members in MECs sustainability future. One standout example is the Director for Ethical Sourcings blog, which receives over 150 hits a day

of assurance, MEC requires factories that manufacture MEC brand products to sign a V assurance MEC-brand endor Code of Conduct which outlines expectations for health, safety and human rights; conducts an external audit of its factories; uses a stakeholder engagement panel to review and ensure clarify of performance data; and relies on an internal director of product integrity and internal processes to assure its sustainability label.
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Examples of WHATP&G communicates at Point of Purchase

Product attributes Focus on safety, chemicals, recycled content, e led ontent biodegradable Product lifecycle Encourage washing in cold water, reducing quantities, saving money ed ing q ntitie ing mone

CASE STUDY
COMPANY PROFILE Multinational manufacturer of products, including personal care, household cleaning, laundry detergents, prescription drugs and disposable nappies. P&G is designed to innovate sustainably so that it can improve the quality of life for the worlds consumers now and for generations to come. This idea is at the heart of P&Gs purpose. www.pg.com

WHY communicate about sustainability?

P&G communicates about sustainability because consumers are increasingly concerned about the content and disposal consequences of the products they use. Communicating about sustainability helps drive sustainable behaviour and increases sales by letting the consumer know why a particular product is better for the environment or personal health, while still providing outstanding performance and saving the consumer money. Linking sustainability communication with communication about product performance is important as it helps dispel the myth that products that are better for the environment dont perform as well. P&G understands that the consumer is not willing to sacrifice performance.

WHY? Consumer Expectations and Brand HOW? Labeling and Displays

Bounty Select-A-Size

WHAT media does P&G use?

As a marketer who relies on retailers to sell its products, P&G is somewhat limited in the types of media it can use to communicate about sustainability at point of purchase. Therefore, the primary communication method used by P&G is product labeling, the media over which it has the largest degree of control. As a secondary means of communication, P&G provides retailers with shelf talkers, displays that can be affixed to the edge of shelving. di l th t b ffi d t th d f h l i P&G communicates only limited sustainability information at point of purchase, preferring to reduce the messaging to core sustainability and performance attributes, relying on the P&G website to provide in-depth information to consumers who are interested in learning more.

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CASE STUDY

A lifecycle analysis

maps sustainability issues against value chain activities,

from sourcing through consumer disposal, and provides a quantitative analysis of the g p yp p y y largest impacts from a sustainability perspective. P&G conducted a lifecycle analysis of all its products and determined the largest impact to be the energy used by consumers washing their clothes. Given this information, P&G decided to develop Tide Cold Water and Ariel Cool Clean.

Product labeling and displays P&G designs its sustainability

promote the energy and associated cost savings associated with cold water washing washing, and also emphasize improved product performance. communication with two key challenges in mind:

excessive noise at point

of purchase and the prevalence of misconceptions around environmental claims.

As such, P&G keeps its messaging simple and to the point, and does not burden the consumer with claims that do not provide real points of differentiation, e.g. though P&G does not use phosphates in its products, this fact is not prominently displayed because phosphates have not been used in laundry detergents in Canada in over a decade.

The accuracy and clarity of its

sustainability claims are extremely important to P&G, who utilize a

stakeholder

advisory panel d i l

composed of representatives from non-governmental,

regulatory and consumer organizations, as well as its internal audit and legal team to verify corporate performance and language of claims. P&G looks forward to the enforcement of the

Competition Bureaus standards for

environmental claims in the Summer of 2009, as it will help level the

playing field, differentiate products and brands, and help the consumer better navigate the realm of sustainability product offerings.
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Examples of WHAT Timberland Communicates at Point of Purchase

Product attributes Focus on energy, chemicals, eco-conscious material, recycled content Operational p p performance Focus on communicating facility use of renewable energy, number of tress planted

CASE STUDY

COMPANY PROFILE A US manufacturer, marketer and retailer of rugged, outdoor-tested, environmentally conscious gear for men, women and kids. A commitment to making it better provides the foundation for everything Timberland does from product development to partnerships that create positive, sustainable impact. Its approach to building and sustaining strong communities includes three primary strategies: civic engagement, environmental stewardship and global human rights. www.timberland.com

WHY communicate about sustainability?

The value at the core of all Timberlands CSR decisions is transparency. It believes that there is intrinsic value in keeping consumers informed about Timberlands footprint and what it is doing to improve its performance and its products. This transparency promotes consumer loyalty and enhances the value of the brand.

WHAT media does Timberland use?

WHY? Brand

Timberland produced the industry first nutritional label on all Timberland branded industry-first Timberland-branded footwear boxes communicating company sustainability information. They also HOW? - Nutritional and use a variety of proprietary icons to communicate product-specific information Green Index Labeling (see below). Timberland recently developed a green index label that will be rolled out across its product line and will be printed directly on product packaging rating the products environmental impact. Ti b l d packages products i 100% post-consumer recycled content boxes, and includes this information on its Timberland k d t in t l d t tb d i l d thi i f ti it nutritional label. Timberland also communicates about its EarthKeepers line of environmentally conscious products through regionally customized window displays.

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CASE STUDY

Timberlands

Nutritional Label is a communications tool that has served to differentiate

Timberland from its competition. The nutritional label communicates to consumers information on percentage use of renewable energy at Timberland facilities, the percentage of materials that are P C free and made from eco-conscious materials; i.e. renewable, organic, recycled, and the V number of trees plated in a given year.

In response to

feedback from

consumers, Timberland recently developed a complementary Green Index Rating

providing additional, product information. The label, currently on about 2% of Timberland products, provides a relative impact rating of between 0 and 10. Using this rating, Timberland consumers are able to make the choice to purchase a product with a lower environmental impact.

For Timberland, one of the biggest risks regarding sustainability internal

communications is communicating something that is either untrue or unclear. Therefore, as it expands communications efforts, it also increases assurance systems, including

audit

and

stakeholder engagement

activities. Timberland uses focus groups to

test reactions to and interpretations of its product labels.

Maintaining the balance between

communications simple enough for consumers to understand and absorb in a brief point of purchase exchange, and being true to the complexity of the issues associated with product development, is a key challenge. One strategy Timberland uses is to provide in-depth supportive information on its website.

Due to its innovative nature, the nutritional label has

public relations value for Timberland through media interviews and associated write-ups in global publications , it has enhanced the companys

brand recognition

and value. 16