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April, 2002 - Monitor industry meeting ... May, 2002

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April, 2002 - Monitor industry meeting ... May, 2002 - Letter to monitor manufacturers ... Label on monitor base or stand ... – PowerPoint PPT presentation

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Title: April, 2002 - Monitor industry meeting ... May, 2002


1
ENERGY STAR Program RequirementsProduct Labeling
  • July 22, 2003
  • Ann Bailey, Director
  • ENERGY STAR Product Labeling

2
Why Label Your Products?
  • More than 50 of the general population considers
    energy efficiency to be a very important product
    attribute when purchasing electronics (The
    Natural Marketing Institute, 2003)
  • ENERGY STAR awareness is 40 nationally and
    exceeds 50 in many major markets
  • 50-60 say the presence of the ENERGY STAR
    influenced their purchase decision
  • 71 are likely to recommend ENERGY STAR to a
    friend

3
Why Label Your Products?
  • ENERGY STAR offers the attributes of a strong
    ingredient brand
  • immediate point of differentiation
  • added value (saves energy, money and the
    environment)
  • reduced effort and perceived risk for consumers
  • Plus objective third-party credibility
  • products that earn the ENERGY STAR meet strict
    energy efficiency guidelines set by the
    Environmental Protection Agency

4
Why Label Your Products?
  • Print articles mentioning ENERGY STAR have
    reached a combined circulation of more than 700
    million people over the past year
  • As of May, 850 companies run ads each month for
    ENERGY STAR products
  • ENERGY STAR product ads have risen 25 over the
    past year -- exceeding 10,000 per month

5
Partnership Agreement
  • Goal standardized format capturing fundamental
    program requirements
  • comply with product eligibility criteria
  • comply with logo use guidelines
  • qualify a product within a set time
  • provide shipment data
  • keep product lists up-to-date
  • label products, product literature and web site
  • Transition began in 2000 and takes place as
    product specs are revised - only OE remains

6
As of April 1, 2003
7
Labeling of Qualified Product
  • Interior fixtures 96 (78)
  • Portable fixtures 100 (100)
  • CFLs 81 (67)
  • Programmable Thermostats 75
  • Clothes Washers 86
  • Refrigerators 94
  • Dishwashers 75
  • DVDs 47 (TVs 25)
  • Ceiling fans 35

Source EPA Retail Store Level
Assessments September 2001 June 2002
8
Labeling Language
  • Provide clear and consistent labeling of ENERGY
    STAR qualified computer monitors. The ENERGY
    STAR label must be clearly displayed on the
    top/front of the product, on the product
    packaging, in product literature (i.e. user
    manuals, spec sheets, etc.), and on the
    manufacturers Internet site where information
    about ENERGY STAR qualified models is displayed.

9
Purpose of Labeling Requirement
  • Make it simple for buyers (consumers and
    businesses) to easily identify energy-efficient
    models
  • Clearly differentiate between models
  • Allow retailers and manufacturers to leverage
    significant outreach
  • Ensure partners are recognized for their high
    efficiency products
  • Increase awareness of ENERGY STAR among purchasers

10
Chronology of Labeling Discussion
  • Early 2001 - Initiated discussion with ITI
    concerning the new PA
  • March, 2002 - Letter to monitor manufacturers
  • explained rationale for PA requirements
  • indicated our willingness to consider labeling
    options
  • included laundry list of proposals we had heard
    so far
  • April, 2002 - Monitor industry meeting
  • further discussion of labeling requirement and
    sharing of concerns/suggestions

11
Chronology of Labeling Discussion
  • May, 2002 - Letter to monitor manufacturers
  • announced decision not to accept labels on back
    panel
  • stated intention to issue approved set of
    labeling options as official interpretations of
    PA
  • final call for suggestions
  • June, 2002 - Additional industry input received
  • ITI, IBM, Viewsonic, Dell, Apple

12
Chronology of Labeling Discussion
  • December, 2002 - Partner meeting
  • reviewed the new PA requirements
  • status report on PA phase-in
  • July 22, 2003 - Todays meeting
  • presentation of proposal allowing four options
    for labeling of monitors

13
Partner Concerns
  • Desire not to include brands other than their own
    on the product
  • Preference for a transparent, seamless design
  • Costs to produce and apply the label
  • Contamination of recycling process
  • Consumers dont look/ask for the label
  • Label does not add value for buyer
  • Label does not increase sales for partner

14
Options Considered
  • Temporary label
  • Electronic label
  • Folder similar to control panel folder
  • On screen display
  • Label on monitor base or stand
  • Removable label for power cord, similar to safety
    labels on consumer products
  • Label incorporated into boot up process (initial
    boot up or all boot ups)

15
Options Considered (cont.)
  • Consumer outreach/advertising in lieu of labeling
  • Label on promotional piece in the shipping box
  • Label on plastic protective covering for monitor
  • Label on accessories, e.g., mouse pad
  • Label on point-of-purchase promotional item,
    e.g., shelf-talker, and work with retail staff

16
Where We Ended Up
  • Four options
  • Balance partner concerns with labeling objectives
  • Demonstrate flexibility while providing options
    that have roughly equal merit

17
Monitor Labeling Options
  • - Permanent label on top/front
  • - Temporary label on top/front
  • - Electronic label
  • - Label used in advertising

18
Permanent Labeling
19
Temporary Labeling
20
Temporary Labeling
21
Electronic Labeling
  • Certification mark appears on monitor screen
    through software driven by the computer such as
  • Desktop folder similar to control panel folder
  • On screen display
  • Boot up screen
  • Navigation screen
  • Allows flexibility in implementation, depending
    on operating system, but requires failsafe to
    ensure only qualified monitors are labeled
  • Will be handled case-by-case

22
Electronic Label
  • Maximum 2 clicks to get to ENERGY STAR
  • Icon should be on a screen with few others
  • ENERGY STAR folder to contain information in .pdf
    files
  • What is ENERGY STAR
  • Energy and environmental benefits of ENERGY STAR
    qualified product
  • Information on ENERGY STAR products (OE and
    others)
  • Power management

23
Electronic Label - Example
From Desktop
ENERGY STAR
24
Electronic Label - Example
25
Electronic Label - Example
Two clicks down ENERGY STAR icon
ENERGY STAR
26
Labeling via Advertising
  • Incorporate the logo into advertising such that
    the number of impressions that result are roughly
    equivalent to the impressions that would have
    resulted from consumer exposure to the label on
    their qualified product
  • Provide partners flexibility while guaranteeing
    approximate equivalency of impact as measured by
    the number of impressions achieved
  • impressions reach ( of people) X frequency (
    of times)

27
Labeling via Advertising
  • A 52(S)
  • Where
  • A of impressions that would need to be
    achieved from the advertising and
  • S of ENERGY STAR qualified units shipped by
    the partner in the previous calendar year

28
Labeling via Advertising
  • Assumptions -- very conservative, derived in
    consultation with PR/Ad experts
  • Temporary labels
  • 75 of temporary labels removed immediately
  • 25 remain on for the life of the monitor
  • A monitor is used an average of 208 days/yr
  • 60 are in offices, used 5 days/week
  • 40 are in homes, used 3 days/week
  • combined total average is a little over 4
    days/week
  • One impression per day

29
Labeling via Advertising
  • To determine shipments, partner may use
  • actual shipments of qualified monitors in the
    previous year
    OR
  • an estimate of shipments calculated by
    multiplying its total monitor shipments by a
    national ENERGY STAR market share percentage
    provided by EPA

30
Labeling via Advertising
  • At a minimum, ads must properly display the Ask
    About ENERGY STAR or We Sell ENERGY STAR logo
    with a statement conveying the meaning/value of
    ENERGY STAR
  • Partners also are encouraged to prominently
    display the certification or promotional logo in
    ads that feature qualified products and offer
    more explanation of ENERGY STAR along with a call
    to action

31
Labeling via Advertising
  • Appropriate ad media
  • TV, radio, print, Internet
  • Ads must be targeted to consumers outside
    partners company
  • The following may not be used to fulfill this
    requirement
  • Employee education
  • Use of logo on company web site

32
Labeling via Advertising
  • Reporting on ad activities
  • shipment numbers used to determine of
    impressions needed
  • copies of ads in which the logo was included to
    fulfill this requirement
  • dates/period ads were placed
  • total of impressions achieved

33
Real World Example
  • Company D sold 4.3 million monitors in 2000,
    Assume 50 were ENERGY STAR qualified
  • At 52 impressions/qualified monitor, Co. D needs
    to achieve 112 million impressions
  • Translated into dollars
  • At an average of 14/thousand impressions, Co. D
    would need to spend 1.5 million on advertising
    that includes ENERGY STAR
  • Co. Ds ad budget was 431 million in 2001
  • Co. D would be spending less than 1 of its ad
    budget on ads that include ENERGY STAR

34
Timing
  • Partners are free to pursue any of the 4 labeling
    options beginning at any time
  • Official labeling requirement will be deferred
    until OE partners transition to the new logo
  • Transition to the new logo will be coordinated
    with changes to the EU agreement and is expected
    to occur in 2005
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