How to Create and Market to Green Buyers

How to Create and Market to Green Buyers Ben Lin Executive Vice President

Ben Lin, Executive Vice President ACM Technologies, Inc. • 10+ years in the imaging supply industry • Worked in multiple departments, including Sales and Marketing, Purchasing, Logistics, and Information Technology • Prior to ACM, was a mangement consultant in the wireless and IT Industry. I focused on strategic initiatives, sales and marketing, and new product development • Broad business background, with emphaiss on vendor relationships and new product development

Agenda

• Setting the Stage: Current Environmental Conditions • How To Become A Green Company • Creating and Marketing Green Products • Case Study: How ACM Developed and Launched EcoPlus • Q&A

Our Natural Resources Are Being Consumed at an Alarming Rate Forest • It takes 24 trees to produce one ton of printing and writing paper • Nearly half the trees cut in North America go towards paper making (source: Conservatree)

• Every Sunday, more than 500,000 trees are used to produce newspapers, 88% of which are never recycled. (source: green-networld.com) • It is estimated that the Earth’s forested area is decreasing at a rate of 13 million hectares per year That is an area about half the size of Nevada (source: UN Food and Agriculture Organization)

(photo: The Global Deforestation)

Our Natural Resources Are Being Consumed at an Alarming Rate Oil and Gas • Approximately 32 billion barrels of oil are consumed each year • The US account for roughly 20-25% of worldwide oil consumption (source: CIA Factbook)

(photo: Physorg)

• It is estimated that there are 1354 billions barrels of gas in reserve worldwide, although that number changes on based on technology improvements and new discoveries (Source: Oil and Gas Journal) • Regardless, Oil is a finite resource, and sometime in the next century, we will run out unless something changes

Our Natural Resources Are Being Consumed at an Alarming Rate Water • Almost a billion people lack access to safe water supplies

(source: water.org)

• 3.6 million people die each year from water-related disease (source: World Health Organization)

• Less than 1 percent of Earth’s water is available for human use, the rest is either salt water found in oceans, fresh water frozen in the polar ice caps, or too inaccessible for practical usage (source: WaterSense, U.S. EPA) • 36 U.S. states are anticipating local, regional or statewide water shortages by 2013

(source: Treehugger)

• In the next 20 years, scientist are forecasting a worldwide water shortage, potentially leading to significant food and energy shortages (source: World Economic Forum) (photo: U.S. Drought Portal)

In the Process of Consuming Those Resources, We Are Generating a Significant Amount of Pollution and Waste Air Pollution • In 2010, about 90 million tons of pollution were emitted into the atmosphere in the United States. These emissions mostly contribute to the formation of ozone and particles, the deposition of acids, and visibility impairment. • Despite great progress in air quality improvement, approximately 124 million people nationwide lived in counties with pollution levels above the primary National Ambient Air Quality Standards in 2010. (source: U.S. EPA, Air Quality Trends)

(photo: Mother Nature Network)

In the Process of Consuming Those Resources, We Are Generating a Significant Amount of Pollution and Waste Solid Waste • Worldwide trash statistics not well tracked, but in the US, it is estimated that an average person creates 4.3 pounds of waste a day, or 1.6 tons of garbage over the course of a year.

• While recycling rates have increased dramatically in recent times, the most optimistic estimates state that only 30% all waste generated are recycled. The rest go straight to landfills or are incinerated. (source: U.S. EPA)

• Some examples of waste generated in the US include 1 billion shopping bags, 140M CellPhones, 40M computers, and 300M Toner Cartridges. (source: Cleanair.org) (photo: Economic, Landfill Decomposition Rates)

Agenda

• Setting the Stage: Current Environmental Conditions • How To Become A Green Company • Creating and Marketing Green Products • Case Study: How ACM Developed and Launched EcoPlus • Q&A

So How Can You Make a Difference?

• Whether it is because your are concerned about the environment, or you believe marketing a green product can help your business, you are here because you obviously care about being Green.

• There are two ways to be more GREEN - Adopt green practices within your business - Market and sell a green product to your customers • Both options really go hand in hand. Although not required, it really creates credibility when you try to sell a green product, if you follow green practices yourself.

Benefits of Becoming a Green Company • Help preserve valuable natural resource • Differentiate your company and your products • Create a work culture that gives employees a sense of community • Government incentives - tax breaks, subsidies, grants, etc.

• Because it feels good • Economic / Financial Benefits. Contrary to popular belief, being green does not mean you have to pay more (source: Green Business Bureau)

The Cultural Impact of Adopting Green Practices Is Significant, though Difficult to Measure • Pride among employees: People feel good about working for a business who cares about the environment. If your business cares about the environment, chances are it also cares about its employees’ well-being.

• An atmosphere of respect: People are excited to contribute to a company that upholds values like social responsibility, integrity and conscientiousness. (photo: Ad Services)

• An attraction for top talent: The nation’s top graduates know that green is the color of the future and they are sensitive to environmental concerns and would want to work for businesses that share their values.

The Cultural Impact of Adopting Green Practices Is Significant, though Difficult to Measure • Increased productivity: Going green results in better indoor air quality, reduced toxic chemicals in your office, better use of natural light, biophilic features such as views and plants are drivers of employee health and productivity. • A sense of community: Green activities such as carpooling to the office or walking to lunch instead of driving encourages coworker comradeship by giving employees a chance to get to know one another beyond the cubicle and their departments. (source: Green Business Bureau)

(photo: Newbury Port Today)

Economic Benefits of Going Green

The following examples of Return on Investments are based on an averaged size business in America with 10 employees working in a 1,000 sq ft. building, open about 10 hours a day and operates for 240 days out of the year. (source: Green Business Bureau)

Economic Benefits of Going Green Compact Fluorescent Light Bulbs - Cost: $3 - $6 per bulb; ROI: 133.3% (source: www.thedailygreen.com)

- Lighting accounts for 13% of energy costs in commercial buildings.

- According to Energy Star, if a business replaces only 100 regular 60 watt bulbs with energy efficient 15 watt CFL bulbs, assuming the business used the bulbs for 9 hours per day for 20 days each month; they will be able to save $2500 a year on average. (source: Green Business Bureau)

(photo: cawrecycles.org)

Economic Benefits of Going Green Programmable Thermostat – Cost: $115; ROI: 156.5% – It’s estimated that 40% of energy usage in a commercial space is dedicated to HVAC. – Average US employee accounts for an annual HVAC expense of $278.

– Installing a programmable thermostat can save 10% of our HVAC costs annually –

For each degree Celsius you lower your heat (for a minimum of an 8 hour period), you can expect to save 2% on your heating bill. (source: Small Business Trends; graph: GBB)

Average Resource and Material Cost per Employee

Economic Benefits of Going Green Install a Water Cooler –

The average cost of a pint of bottled water in the US is $1.23.

–

The average US employee drinks about 1 ½ pint of water a day or the equivalent of $443 in bottled water in a year.

–

Typical delivery service for five-gallon jugs of water cost on average $3.81 per jug, meaning each employee drinks the equivalent of $34 of water a year.

–

Savings per year: $409 per employee. (source: Small Business Trends; photo: GBB)

Additional Easy to Implement Green Initiatives • • • • • • • •

Introduce recycling bins to key locations around the office.

Replace disposable plates, cups, and utensils with reusable versions.

Install motion detectors in buildings to automatically shut off light with inactivity.

Send and receive faxes directly to your computer. If not possible, eliminate fax cover sheets (use post-its on first page).

Reuse paper waste in which you can use the back of unused printouts for drafts, scratch paper or internal memos, etc.

Sign up to pay your bills online and receive invoices and receipts electronically.

Install aerators to your bathroom sinks and faucets in break rooms to regulate water flow.

Form a carpool, take public transportation, or bike to work as a means of transportation.

Taking the Next Step: How a Business Can Go Green Certify as a Green Business

• First and only green chamber of commerce devoted to helping organizations create and implement sustainable business practices.

• Connects businesses with investors, customers and stakeholders.

• Counsels organizations on how to create a buzz and profitable business decisions driven by the new “Green Economy.” (source: ecoChamber)

• www.ecochamber.com

Taking the Next Step: How a Business Can Go Green Certify as a Green Business

• Mission is to foster environmental awareness among businesses and promote business practices that are both environmentally responsible and commercially beneficial.

• Supports green business through comprehensive and industrytargeted certification.

• Online tool assists businesses in their process of certification. (source: Green Business Bureau)

• www.gbb.org

Agenda

• Setting the Stage: Current Environmental Conditions • How To Become A Green Company • Creating and Marketing Green Products • Case Study: How ACM Developed and Launched EcoPlus • Q&A

Profile of the Typical Green Consumer Approximately 75% of the US Population identifies themselves as having at least some green attitudes and behaviors. Here are some research findings on these consumers: (source: Greenbiz.com, Shelton Group)

–

–

–

–

–

–

Only 8% of these shoppers consider environment their top concern (59% stated the economy) Their main motivation to reduce energy consumption was not to save the planet, rather, it was to “reduce bills/control costs (73% of respondents) Many consumers are not truly educated or knowledgeable about environmental issues but are eager to learn Green consumers do not fall into any particular age, income group, or ethnicity. It is difficult to truly categorize them into segments Many green consumers will be willing to pay more for a green product only if they believe it will save them money in the long run Green consumers do not want to entail major sacrifices for a green product, want it to be easy and practical

What Do Consumers Look for in a Green Product?

• Is it really a “green” product?

– What is it made of?

– Is it recycled material?

– Is it be reusable?

– Were natural resources used to make the product?

• How does it benefit the planet and environment?

– Reduces greenhouse gas emissions – Reduces carbon footprint – Reduces use of natural resources

What Do Consumers Look for in a Green Product?

• How does the product benefit me?

– How much does it cost – What are the value propositions – How is the quality compared to non green products – What kind of savings will it provide me in the long-term – How easy is it to get the products • Who is the company behind the product?

– Does the company lives by the same standards and commitments as its products – Does the company stand behind its products in terms of quality – Does the company follow green practices

Key Steps in Creating a Green Offering

1.

Define your product offering and value proposition. Why should consumers buy your green product compared to something else.

2.

Find vendors that share your vision and beliefs, and can provide you with a reliable source of green products.

3.

Clearly state the environmental benefits of your product compared to the competition. Customers want to know why your product is green.

4.

Focus on Quality – Many people think “Green” products are less effective than existing brands. It is your job to assure customers of the quality of your products.

Key Steps in Creating a Green Offering

5.

Price your product to sell. Only 25% of consumers are willing to pay more for a green product. If you want to target the remaining 75%, you must make a compelling economic argument.

6.

Be honest with your green claims. Be able to back up your claims with facts, statistics, and certifications. Green buyers are critical, and will see through false claims.

7.

Create a comprehensive set of marketing around your green products.

Leverage websites, flyers, brochures, product packaging, and social media to get the word out.

8. Stay persistent. It takes time for a brand and product to build awareness and for customers to adopt. It takes much longer to sell consumer on a green concept than just price, but the rewards are worth it.

Agenda

• Setting the Stage: Current Environmental Conditions • How To Become A Green Company • Creating and Marketing Green Products • Case Study: How ACM Developed and Launched EcoPlus • Q&A

Remanufactured Toner Cartridges: A Perfect Green Product • Environmental Benefits: Reman. Toner cartridges reduces the amount of waste and pollution generated, and preserve natural resources • Cost Savings: Reman. cartridges typically cost 20-50% less than the OEM • Product Performance: A properly remanufactured cartridge will work as well as an OEM cartridge • Ubiquity: There are reman. cartridges for almost all major printer makes and models • Market Size: Almost every business and individual have a printer and consume printer cartridges

How Did ACM Create a Green Product?

• ACM Launched a new line of Remanufactured Toner Cartridges called EcoPlus in 2011 • We started to identifying vendors that shared the same beliefs and ideas, and can deliver a quality product • All the packaging was redesigned to provide the smallest footprint possible • Green benefits and Core beliefs written on the box • Added a social responsibility aspect to the product. A percentage of proceeds of every cartridge sold goes towards charity

How Did ACM Create a Green Product?

• Advertisements before the product was available to create brand awareness • Email blasts to customers • Dedicated website and marketing materials • Social Media pages – Facebook, LinkedIn • Once the product was available to our customers, ACM continued to advertise the brand more than ACM • Trade Show exposure with the brand

Marketing Material Samples

Takeaways

• Our natural resources are being depleted at a rapid pace. At the same time, we are generating a significant amount of promotion and waste.

• This trend is driving the market to look for new products and solutions to minimize impact on the environment.

• Businesses can have a significant influence on this environmental trend by either becoming green themselves, or selling a green product.

• Becoming a green company does not have to be difficult, and in fact can actually help companies generate significant savings over time as well as strengthen company culture.

• People are becoming increasingly conscious about the environment, and about 75% of the population consider the environment when shopping, but they are very specific things they look for in a green product, it is important that you consider their requirements as you build up your green offering.

• It takes time and energy to develop a new product. But you must be patient and persistent. Market conditions are ripe for green products, but don’t expect an instant pay off.