Sustainability: The next customer battleground?

When Tesco recently announced a series of board changes, analysts noted the prominence given to figures with a knowledge of sustainability and environmental issues.

 

Key appointments, for instance, included Tim Mason, head of Tesco's Fresh & Easy chain in the US, who will be promoted to deputy chief executive as part of the reshuffle in the wake of Sir Terry Leahy’s decision to stand down. Mason’s additional responsibility will be for branding, company values and climate change.

 

Speaking to Marketing Week recently, senior manager for retailer services at Nielsen, Mike Watkins, suggested that the board changes revealed plenty about the future of Tesco, and indeed the retail sector at large.

 

"Sustainability will be back on the agenda next year, and the success of the supermarkets will depend on who can communicate the issues best and who can show shoppers they understand the issue best," he told MW. "This may not only be the next phase for Tesco, but UK grocery more widely."

 

In light of Morrisons appointment of group trading director Martyn Jones to the new role of group corporate services director with a focus on corporate responsibility, PR and food safety, there would indeed seem to be something in this. But will CSR and sustainability be, as MW suggests, the "new battleground" for businesses? MyCustomer.com asked a number of experts from the marketing and ethical business fields for their thoughts.

 

“In today’s competitive marketplace consumer’s buying decisions are influenced by a huge variety of factors from price and convenience to brand perception, but of increasing importance is how responsible a corporation is. We only need to look at the impact the BP oil spill has had on the company’s reputation and share price to be certain that consumers are prepared to vote with their purses if they feel that sustainability is being in anyway neglected. Brands that are able to take the lead in not only promoting but also communicating and demystifying sustainability will be seen in the most favourable light by consumers.”  Jo Kenrick, Brand Director of Start and Chair of The Marketing Society Green Alliance.

 

“Sustainability will be more of a critical success factor in some sectors (e.g. electric cars) than in others, but the temperature is building all the time.  I doubt that companies will generally sell more products if they major on the sustainability agenda, but the leaders will ensure that they are well positioned and that their marketing aligns and resonates with the sustainability agenda.” John Elkington, director of Volans.

 

“It’s an entirely legitimate differentiator for companies to use, if it means customers are genuinely making more sustainable choices by choosing from them instead of someone else. To give one example, Arial had great success with its ‘Turn to 30’ campaign because it achieved three golden rules – it made a clear difference in choice (the product is more sustainable than many competitors) it did not compromise on quality; and it did not charge a price premium. I agree it will have a major effect; Marks & Spencer has shown how seriously customers take sustainable commitment from the companies they buy from, with their ‘Plan A’ strategy. Yet there’s a need for companies to tread carefully. Customers are quick to spot ‘greenwash’ and if they think a company is making environmental claims mainly to shift more products, sustainable communications can backfire badly. The key is to ensure that your ethical commitment runs throughout the company (for example in your sourcing decisions, your sustainability policies and all your operations) and that any communications or claims you make can be fully validated. Some companies have recently got into trouble, for example, by making environmental claims that only apply to certain parts of their operations. That’s when green turns into greenwash.” Mark Stuart, head of research, Chartered Institute of Marketing.