Sun., Oct. 31, 2010 - At the Big “R” Show
Green Marketing - Make it Your Business
This panel discussion provided insight on how remanufacturers and distributors can use “green” marketing as a means to maximize company profits by establishing corporate goodwill and promote a company’s green product and services.
Tom Marx discussed how to incorporate a “Green” marketing strategy. Scott Stolberg of AAEQ provided perspectives on how he transformed AAEQ into a leading green company through strategic green marketing initiatives. And Keith Patridge of McAllen Economic Development Corporation discussed their “Green Campaign” successes which promotes remanufacturing and product reuse on the border of Texas and Mexico.
2. 2
Presenters
Tom Marx
President & CEO
The Marx Group
Scott Stolberg
President & CEO
AAEQ Remanufacturers
and Recyclers
Keith Patridge
President & CEO
McAllen Economic
Development Corporation
4. 4
Remanufacturing Was Green
Before Green Was Cool!
Remanufacturing is one of the
three R’s of Product RetirementReuse
Recycling Remanufacturing
5. 5
Just How Green?
Remanufacturing conserves, preserves and protects the
Earth’s renewable and non-renewable resources:
Timber Oil/PetroMetalsWater
6. 6
• Remanufacturing Significantly Reduces
– Green House Gas Emissions (GHG)
– Carbon Footprint
– Energy Use (BTUs)
– Landfill Waste
• Remanufacturing Preserves Renewable and Non-
Renewable Natural Resources
7. 7
Did you Know?
• Remanufacturing can conserve up to 85% of the material and
energy required to produce the same product as new
• Remanufacturing is estimated to save 14 million tons of natural
raw materials annually
• Remanufacturing is estimated to save 400 trillion BTUs per year
of energy
• Remanufactured automotive product components are 40 % to
60 % the cost of a new component
8. 8
Did you Know?
• 28 million tons of added carbon dioxide is avoided by the saved
BTUs
• Millions of barrels of oil and comparable forms of energy is saved
by keeping automotive parts out of the re-smelting process
• The Remanufacturing Industry makes a major impact on the
economy:
• Estimated $53 billion annual sales total
• Estimated 500,000 employed
10. 10
Consumers and the Public Cares
• Based on a McKinsey Quarterly Study, March 2008
– 87% of consumers are concerned about the environment and
social impacts of the products they buy.
– 33% of consumers indicated they were ready to buy green
products or have already done so.
Source: Sheila Bonini, Greg Hintz, and Lenny Mendonca, “Addressing Consumer
Concerns About Climate Change,” McKinsey Quarterly, March 2008.
14. Avoid Green Washing
Don’t be deceptive.
Consumers are keen to green washing. They can
easily determine if you are misusing Green PR or
Green Marketing to create a misleading
perception that your company's policies and
products as being environmentally friendly.
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15. 15
Walk the Talk
Would the public consider you green?
Are you taking proactive steps to be green?
Are you leveraging your efforts?
16. 16
Why we are Green
To be green requires that you take the sustainability of
the Earth’s natural resources serious enough to change
activity in all aspects of your business to conserve,
protect and use existing resources.
17. 17
We Want to be an Inspiration
Company Sustainability Program
Recycle Reduce energy
consumption
Reduce fuel
consumption
18. 18
We Minimize Waste
– Use recycled cardboard boxes
– Recycle metal and rubber
– Use paper instead of plastic or styrofoam for packaging
– Recycle toner cartridges
– Use biodegradable solvents
– Recycle paper, cardboard, bottles and cans
– Discourage use of plastic water bottles
19. 19
Our Marketing Strategy
• Educate and promote a green message and our green usage through
print and electronic media as well as public appearances
• Our Green Message appears throughout AAEQ marketing:
o Value Proposition (core values,
mission statement, brand
pillars)
o Website
o E Blasts / E Newsletters
o Advertising
o Brochures
o Packaging
o On Hold Messages
o Statement Stuffers
o E-mail Signature
20. 20
Community Outreach
• In the form of:
– Speaking Opportunities
– Community Participation
– Webinars
– Observation of Earth Day or Climate Change Day
– Sponsorship of Events and Green Activities
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Our Community Outreach
Results In…
Positive Press
– News releases
– Feature articles
– Local and Regional Awards
– Invitations for more Speaking
Engagements
Increased Awareness about AAEQ
Positive perceptions about our
business and the industry-at-large
31. McAllen Economic Development Corporation . www.ManufacturingIsGreen.com
About McAllen EDC
• Your single point of contact for relocation, expansion
and new business development in McAllen,
TX/Reynosa, MX
• A non-profit organization charged with creating new
jobs and attracting new investment under contract
with the City of McAllen
• Began in 1988 and has recruited more than 600
companies, which has resulted in more than 100,000
jobs in McAllen/Reynosa.
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32. McAllen Economic Development Corporation . www.ManufacturingIsGreen.com
McAllen, TX/Reynosa, MX
BY THE NUMBERS:
McAllen MSA
Population:
768,405
Reynosa Population:
1.2 million
Average Age: 27
Number of companies
in bi-national metro:
400+
Number of
international bridges
between the cities: 3
Number of industrial
parks in both cities:
20
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33. McAllen Economic Development Corporation . www.ManufacturingIsGreen.com
Remanufacturing in
McAllen/Reynosa
• Lower costs
• Labor availability
• 10,000+ workers in the industry
• Strategic location for collection &
redistribution
EXISTING GREEN COMPANIES:
Bigston
JVC
Bissell
BBB
Panasonic
Sharp
Jabil Global Services
Stanley Black & Decker
Union Plastics & Metal
Recycling
Valley Plastics
Technoplas
Teleplan
Standard Motor Products
Celestica
Four Seasons
Shapiro Metals
IFCO Systems
Republic Systems
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34. McAllen Economic Development Corporation . www.ManufacturingIsGreen.com
JVC McAllen
Warehouse/Refurbishing center in the
McAllen Foreign Trade Zone
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35. McAllen Economic Development Corporation . www.ManufacturingIsGreen.com
JVC McAllen
JVC uses certified recyclers to ensure
all materials are properly re-used and disposed of
after the product’s life cycle.
Car Stereos
35
37. McAllen Economic Development Corporation . www.ManufacturingIsGreen.com
Green = Good Business
Green = PROFIT $$$
Green = New Customers/Markets
Green = Good Practice
Green = Better Environment
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38. McAllen Economic Development Corporation . www.ManufacturingIsGreen.com
Marketing Green
To your company To your customer
• Identify problems in your product
line early & address issues
• COST SAVINGS: By finding an
appropriate model, your company
will save $$$
• Do it before your competition thinks
of it
• Green = Innovation & Opportunity
• Tap into emerging markets that will
utilize and buy aftermarket
products
• Customer service- Be certain your
product is remanufactured/reused
(certified destruction/Reman)
• Remanufactured is good quality
(tested, approved)
• Product reuse is more
sustainable (& helps curb
finances)
• Zero waste
• Environmentally-friendly
innovation (your company is at
the top of its game)
• Provide incentives for end of
life reuse so they can receive a
new part (brand loyalty &
pushing new products)
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39. McAllen Economic Development Corporation . www.ManufacturingIsGreen.com
Why McAllen EDC promotes
GREEN
1) Cost-savings for companies
increases competitiveness
2) McAllen known as strategic
global location for companies
to grow, evolve & sustain (&
keep down costs)
4) McAllen becomes known as
a progressive city embracing
green while growing
opportunities for companies to
remain competitive
3) Positive recruitment of
companies leads to the
creation of jobs for local
residents & new wealth
GREEN
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41. McAllen Economic Development Corporation . www.ManufacturingIsGreen.com
Ports of
Manzanillo
& Lazaro
Cardenas
Ports of Altamira & Veracruz
Using the Third Coast * Product comes
in, recycled or
new component
comes out
* Cost savings
* New market
opportunity
* Tap into
emerging markets
* Use of numerous
transportation
means
* Innovation &
Customer service
200+ carriers
Estimated cost reduction of a minimum
12% over current system.
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42. McAllen Economic Development Corporation . www.ManufacturingIsGreen.com
What to say?
• Share the green manufacturing story with people who need to
know
- Young professionals, politicians, general public
- look to new ways to share the story (video, social media, web)
• Look for new ways to continue the green cycle
- develop central collection points that save on emissions, freight
costs and deliver to McAllen/Reynosa
- This saves money continues green processes
Re-brand your company and process as green
- the more we talk about it, the more people will see the positive
environmental impacts from remanufacturing
If we don’t tell the Reman story- who will?
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44. McAllen Economic Development Corporation . www.ManufacturingIsGreen.com
Don’t let your brand haunt
you in the after life…
REMEMBER:
Don’t let your brand haunt you
in the afterlife…
RIP
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45. McAllen Economic Development Corporation . www.ManufacturingIsGreen.com
Visit us here at Booth #225
& at AAPEX Booth #5358
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46. Top 5 Ways to Leverage
your Business as Green
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47. #1 Branding
• Develop a green logo
• Create a green tagline – make sure to
include in all your ads and collateral
• Add “green” to your Value Proposition
statement and Core Values
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49. #2 Become A Green Office
• Develop a sustainability program that promotes reuse, conservation
and preservation
• Create policies and procedures designed to encourage and reward
employees for their efforts to be green
• Consider how to incorporate green practices into your business –
fleet, administrative office, sales, etc.
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51. #3 Website
• Create a page on your website that promotes remanufactured
products as green; show the value to the environment
• Use your green branding on your website to give a visual to your
green efforts
• Include stories of how your employees are green in their own lives
• Tout your community participation with green activities on your site
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53. #4 Public Relations
• Develop a boilerplate for your news release that incorporates a
green message about your product
• Develop at least two releases a year with an environmental focus
• Create a video that shares your green message
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54. #5 Social Networking
• Share your accomplishments, corporate and employee
related in being green and staying green through social
networking sites:
– LinkedIn
– Facebook
– Twitter
– You Tube
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Thank You!
Tom Marx
President & CEO
The Marx Group
tmarx@themarxgrp.com
www.themarxgrp.com
Scott Stoberg
President & CEO
AAEQ Manufacturing & Recyclers
sjs@aaeq.net
www.aaeq.net
Keith Patridge
President & CEO
McAllen Economic Development
Corporation
Keith@McAllenEDC.org
www.McAllenEDC.org
www.ManufacturingIsGreen.com
Notas do Editor
Today we hope to show you how to promote your company’s green assets as a way to improve your bottom line. We have discovered that Green marketing is more than good PR. It is also good for business. It makes good financial sense to invest in efforts to promote your business as green. Our overall goal is to give you some some practical advice on how to implement green marketing into your overall marketing strategy.
Remanufacturing is Green. It has always been green. It is the ultimate form of recycling.*Parts are disassembled, cleaned, repaired or replaced, and then reassembled to working condition. Remanufacturing recaptures the value-added cost of labor, energy and raw materials required to create the same product for consumption. From an environmental standpoint – the cost in resources associated in developing a new product as compared to taking the exact same product and remanufacturing it for consumer consumption is significantly more in terms of the value added to the product calculated by labor, energy and raw materials. *Attributed to : Remanufacturing: The Ultimate Form of Recycling, Rolf Steinhilper, Ph.D., chair for manufacturing and remanufacturing technology at the University of Bayreuth in Germany
If you are not using resources to make new products, then these resources are available for other use and other generations.Some of these are renewable and some are finiteAdditional notes: Natural Renewable Resourcesare those that can be replenished by natural processes at a rate comparable or faster than its rate of consumption by humans or other users, such as: timber and fresh waterNatural non-renewable resources are those that cannot be re-made, re-grown, or regenerated on a scale comparative to it’s consumption. In other words these are resources that are consumed faster than they can be made by nature: Examples are oil, natural gas, iron, coal, copper, gold, silver, zinc, aluminum
Developing a product new from virgin materials creates more greenhouse gas emissions and creates more of a carbon footprint than taking an existing product and remanufacturing it for consumer consumption. Remanufacturing reduces energy use, reduces landfill waste and preserves renewable and non-renewable natural resources.
This claim has been well documented and is based on both the conservation of renewable and non-renewable resources, fuel, manpower and more. Annual energy savings from remanufacturing in the U.S. alone has been estimated to save up to 16 million barrels of crude oil - which equals the consumption of 75,000 car owners. Sources:Bullet One – (Lund, Robert T. 1996, The Remanufacturing Industry, Hidden Giant, Boston, MA)Bullet Two - ( Remanufacturing Is Profitable and Green by Don Hegland,February 24, 2010)
14 million tons of raw material is enough material to fill 155,000 railroad cars to form a train 1,100 miles long. Remanufacturing is big business – with approximately $53 billion annual sales. Collectively, our industry employs close to 500,000 people annually. The automotive remanufacture industry alone is estimated to be $25 billion a year. We have a story to tell – remanufacturing is good for the economy and good for the environment.
That was the sentiment in 2008. How has the world changed since then?
Companies are racing to the top to be green – Dell, IBM, Hewlett Packard – almost every company with a public face wants to be green. The answer is clear – Green is the new Black. Consumers want to support companies that have an interest in sustainability, care about climate change, landfill minimization and preservation of our resources. So, is there a downside to being Green?
To market your business as “Green” first you need to make sure that your business, if scrutinized by the public, would be considered Green.To be green requires that you take proactive steps to be green and that provides you the opportunity to promote your company as green.
Greenwashing is the dreaded word. Before you make efforts to implement a green marketing strategy – examine your company’s practices from the perspective of a “green” focused consumer.
Be an inspiration to your employees, your industry and community. Do an inventory at your company.
Look at every operation in your company
So what is involved with a green marketing strategy. Look at your existing and potentially new marketing efforts through a green prism. How can these marketing materials be developed to promote your industry – remanufacturing - and your business as green? Promote your green assets so new and existing customers can feel good about doing business with your company!Begin with your website. A simple statement about your company’s core values of being green is a start.
Community Outreach Generates good Publicity and Positive Press. Do not count on others involved to promote you. It takes a calculated effort to be green and to promote your business as green. It takes time to determine what is in the community that is a good fit and how you can devote your company’s resources to participate without being wasteful. Someone in your marketing department should head up this effort, and it may require soliciting help from professionals.
If you are green or sell green products, then tell the world. Include your green message in ALL marketing!
Be an example to your employees, customers, media and the community.
Calculate in terms people can understand how your product is helping the environment. Carbon footprint calculators are excellent to add to your site. Build relationships with your customers with your green story.
Remember—PR is FREE and the media wants stories…they all have cut back on their staff, so the opportunity is to provide them with information about how environmentally concerned you are about the products you make.