Development and implementation of a marketing and promotion strategy for the European Ecolabel in Fr

1
Development and implementation
of a marketing and promotion
strategy for the
European Eco-label in France
targeted towards the detergents
industryENV.G.2/SER/2003/0108r2004-12-15
Brussels
2
Context

• AFNOR Certification has been the lead Competent
  Body for the development of criteria for the EU
  eco-label of hand dishwashing detergents and is
  now starting to actively promote the whole
  detergent family including laundry detergents and
  all purpose cleaners.
• Today only one producer in France has the EU
  eco-label for hand dishwashing detergents and all
  purpose cleaners.
• The objective is to increase the number of
  producers in the sector and also attract new
  companies from laundry detergent and dishwasher
  detergent sector.

3
Objectives of the tender

• Assist the marketing and promotion of the French
  Competent Body AFNOR Certification targeted
  especially towards the detergents industry and
  retailors sector.
• With a view to
• increasing visibility and use of the EU
  eco-label on the French market
• developing fruitfull partnership with retailers
  and other multipliers
• implementing the French approach at the European
  level.

4
Market study on the Detergent sectorMethodology
- Step 1 Market overviewParis, July 2004
5
Methodology

• 1. Quantify and qualify the market
• 2. Evaluate market perception
  of eco-friendly labels
• 3. Draw up a battle plan

6
1. Quantifiy and qualify the market

• Determine the number and profile of the concerned
  companies
• Analyse the figures
• Establish the specifications of the data
  requested
• Select data bases and purchase the most efficient
• Draw up the strategy to apply to go to step 2

7
2. Evaluate market perception

• Quantitative approach
• Step 1 self-administered questionnaire
• by email
• by mail
• Step 2 follow-up call and phone interviews
• Qualitative approach
• Focus group select pros and cons to determine
  motives
• Synthesis of the results and conclusions.

8
3. Draw up a battle plan

• Analyse the existing communication tools and
  actions carried out in the past.
• Draw up 3 company profiles
• Pros, mitigated and cons
• Build up an action plan aiming at convincing the
  greatest number of companies according to the
  above cited profiles by
• Referring to their expectations,
• Answering their queries
• Removing obstacles and objections

9
1. Quantify and qualify the market
10
1.1 Determine the figure and profile

• The APE code 245 A
• (Registration code for French professionnal
  activities)
• Established by the INSEE, it offers a first
  overview of the French market of soap, detergents
  and cleaning products.
• Specificities of the parachemical industry (2001
  data)
• About 350 companies of 20 employees and more
• 2/3 employ less than 100 employees

11
1.2 Analyse the figures

• From the first segmentation by staff we can
  assume that
• The 6 largest international Groups represent the
  greatest share of opponents to the principle of
  eco-labellisation
• The 68 remaining companies with between 20 and
  499 employees represent the SMEs and
  subsidiaries. This type of structure represents
  the majority of the sector.
• In a medium-sized company, decision-making
  positions involving the application for
  ecolabellisation are limited.

12
1.3 Establish the specifications of the data
requested

• Data base management
• The data base will be supplied progressively with
  replies obtained via the self-administered
  questionnaire and then by follow-up calls.
• The data base will lead to a synthesis aiming at
  defining the main steps of the qualitative
  approach.(cf 2.2)

13
1.3 Specifications

• All companies registered under the APE code 245 A
• Corporate name
• Staff bracket (from 20 to 499 employees or total)
• Turnover
• Job Title
• Plant manager
• Quality manager
• Sales manager
• R D manager
• Managing director
• Company data (supplementary information)
• Activity / Turnover export activity on the EU
  zone.
• R D Investments
• Identification of raw material suppliers

1) Address and phone number 2) E-mail
14
1.4 Select databases and purchase the most
efficient.

• Study the databases
• Select the files according the level of
  qualification and price.
• DBI  Industrie Plus 
• Dun Bradstreet
• Kompass
• IDEXPO (Chimie Data)
• Guides Vasseur  Savons Détergents  - pot. 200
  contacts
• Telefirm
• Telexport

15
Selecting data bases
16
1.5 Draw up the strategy to go to step 2

• Refer to the existing file to carry out a first
  quantitative survey sending a self-administered
  questionnaire by mail (165 companies 331
  questionnaires)
• Study expectations and obstacles through a focus
  group meeting if necessary.

17
2. Evaluate market perception
of eco-friendly labels
18
2.1 Survey

• The data base once provisioned, we will carry a
  survey to answer the following objectives
• Identify the companies with certified products
• Analyse the notoriety and perception of
  eco-friendly labels by manufacturers.
• Identify the various approaches and commitments
  of competitors of European Ecolabel
• (ex Engagement pour le Progrès de l industrie
  Chimique, Code of Good Environmental Practice...)
  
• Detail the major obstacles and expectations
  concerning the Environment and parachemical
  industry.

19
2.1 Survey

• Method
• Mailing of a questionnaire printed on AFNOR
  Certification letterhead.
• Follow-up call for non-repliers
• Detect interlocutors for a focus group or
  individual interview later on.

20
2.2 Questionnaire

• 1/ Which ecological labels do you know ?
• 2/ How did you get to know them ?
• Professionnal press
• Internet
• News bulletin
• 3/ Have you ever undertaken any application for a
    green  certification or label (ecological
  label, green chart, )
• IF YES,
• Which application have you chosen ?
• What are the reasons that oriented such choice ?
• Do the packaging of your products bear any
   green  certification ? If yes, which one ?
• IF NO, why did you choose not to apply ?
• Too heavy regulation
• Complexity of requested criteria
• Cost of investment
• Lack of interest of the public for such labels
• Lack of information.

21
Questionnaire

• 4/ Do you know the European Ecolabel ? Yes
  No
• The European Ecolabel
• In your view, what are the advanatges and
  inconvenients of the European Ecolabel ?
• 5/ Does the applicatioon for the European
  Ecolabel interest you ? Yes No
• 6/ What supplementary information would you like
  ?
• Certification reference list
• Information on the awarding process
• Other suggestions
• Would you like to receive this information By
  mail ? Bye-mail?
• Following this study on the detergennt sector,
  would you accept to participate in a round table
  organised in your town to discuss green labels ?

Is granted in France by AFNOR CERTIFICATION? It
is awarded according to a certification reference
list after control that the products comply with
the requirements of the specifications (cahier
des charges ?) It guarantees a that a product is
both efficient and more respectful to
environment. It is recognizable by all consumers
of countries members of the EU, thanks a to the
same logo,
22
Summary of results

• Unprompted name recognition
• Ecolabel (18), Eco Emballage (8), EcoCert
  (6), NF
  Environnement (6).
• Name recognised after prompting
• Ecolabel (40)
• Information sources Trade press (18), Internet
  (12), organisation newsletter (Afnor) (12)
• 30 have initiated a procedure to earn an
  ecological certification or label 56 have not.
• Applied for/to
• ISO (14), Eco Emballage (10), Swann (8) and
  just 2 for Ecolabel
• Reasons for the choice
• ISO requirement, growing customer demand,
• other labels consumer pressure

23
Summary of results

• Factors discouraging application Investment
  cost (20),
• Lack of information (18)
• Ecolabel advantages
  
  worldwide identification and auditing by a
  recognised organisation (Afnor Certification)
• Ecolabel drawbacks
• certifies a product whereas ISO certifies a
  process,
• negatives criteria, impact, low return on
  investment, niche market
• not known to consumers
• Interest in Ecolabel 38 of managers
  interviewed said they were interested and 56
  want to receive more information, both
  scientific (about the list of authorised raw
  materials) and practical (certification
  procedure).

24
Step 2 Meeting the professionnals

• From the feedback of information collected
  through the questionnaire and follow-up call, we
  will draw up a first profile of the main target
  to conquest.
• Study of remaining targets
• Distributors / retailers
• Environmental NGO s
• Consumers
• Journalists

25
3. Draw up a battle plan
26
3. Draw up a battle plan

• Analyse the existing communication tools and
  actions carried out in the past.
• Draw up 3 company profiles
• Pros, mitigated and cons
• Build up an action plan aiming at convincing the
  greatest number of companies according to the
  above cited profiles by
• Referring to their expectations,
• Answering their queries
• Removing obstacles and objections

27
3.1 Initiatives targeting manufacturers

• As the survey results show, the main factors
  discouraging manufacturers are a lack of
  information, the Ecolabels weak name recognition
  and low level of credibility with consumers, and
  a lack of advertising/communication.
• We advised Afnor to take advantage of the
  European Flower Week, 18 to 24 October 2004, to
  raise manufacturer awareness.

28
3.1 Initiatives targeting manufacturers

• Direct Marketing campaign
• Purchase of Kompasss database of names
  345 companies, 457
  contacts, including Plant, Quality Assurance,
  Sales Marketing and Research and Development
  managers, plus Corporate Offices
• Merge and purge with the Afnor database

29
3.1 Initiatives targeting manufacturers

• Direct Marketing campaign
• Creation of an information report, including
• - a dedicated folder
• - an information sheet about the European
  Ecolabel
• - an information sheet with the application
  procedure for each category of detergent
• - a self-assessment sheet for each detergent
• - a reply coupon to request additional
  information
• - a brochure about the European Flower Week
  consumers campaign.

30
3.1 Initiatives targeting manufacturers

• Direct Marketing campaign
• Follow-up and call-backs by Afnor departments.
• Report detailing the campaign and its results.

31
3.1 Initiatives targeting manufacturers
Folder with information Leaflets and coupon
32
3.1 Initiatives targeting manufacturers
Flower Week campaign leaflet
33
3.1 Retail distribution contacts

• Contacts with specific retailers (Monoprix, Cora,
  Carrefour, Leroy-Merlin) prove that they are
  interested in more environmentally friendly
  product lines, under either manufacturer brand
  names or their own house brands.
• Retail distributors are increasingly
  incorporating green labels, thereby meeting a
  desire on the part of their customers to be good
  citizens.
• For many retailers, therefore, the desire to
  promote green products is strongly tied to
  consumer demand. The Ecolabels lack of name
  recognition and the small number of products that
  feature it have discouraged faster growth.

34
First result of the action

• November 2004
• 2 new companies have now the EU Eco-Label
• 2 companies are in the certification process
• 11 companies have asked for more information in
  hand dishwashing or other purpose cleaner.

35
Conclusion

• Twelve years after its creation, the European
  Ecolabel is finally poised to begin a new
  virtuous circle the more consumers are aware of
  its existence, the more manufacturers will be
  convinced of its value and retailers will urge
  them to create new products to meet the new
  green standards.
• This will make Afnors job easier, because it
  will be responding to an initiative of
  manufacturers themselves.