Business Strategy

Who Wants to be The Green Marketing Expert, Wholefoods or Michael Pollan?

Way back in 2006, when  author & educator Michael Pollan’s raised concerns about the national supermarket chain Whole Foods in his book, “The Omnivore’s Dilemma.” Whole Foods CEO and founder John MacKey wrote a letter to Pollan. The two continued their dialog publicly, while the rise of the organic food movement lifted up small manufacturers and producers as well as large multinationals.

These two eco-minded leaders agreed on the ‘ “reformation” of the American food system,’ supporting more locally grown production: In California this would mean, anyone at a farmers’ markets to Earthbound Farm. While they both disagreed on several points, you could bet your tofu on the fact that both of these guys were advocating for change in the American food system.

But what surprised me in their paper dialog a few years ago was that Pollan was basing his arguments on some fundamental marketing principles. “..As Whole Foods recognized before many others did, there is another consumer being born out there, one who takes a broader view of his interests, understands that spending more on higher-quality food is worth it on so many levels,” says Pollen.

“As competitors like Wal-Mart and Safeway move into selling industrial organic food, Whole Foods can distinguish itself by moving to the next stage, doing things they can’t possibly do. “Local” surely is one of those things: and your buyers already know exactly how to do it. All Wal-Mart knows is how to source industrial organic food from China.”

And then something happened. Whole Foods’ stock prices went on a roller-coaster ride; and the business was expanding. Fast. 65 stores were in development in 2005; and by September 2007, WF acquired their major competitor Wild Oats. WholeFoods has its national price-friendly brand, 365 on its shelves, nation-wide. And the brand, which once stood for local and sustainable, made its mid-course correction to be in favor of big and not so local, and not so green.

Maybe this is sounding a bit like an overwrought “Wolfman” but the hidden side of this food chain is getting ugly.  As a consumer, when I pay premium prices on most of the experience I get here, and I see all the nice little signs in the fresh produce aisles  telling me where my apple, beets and tomatoes come from, I expect the same transparency in the freezers.

The 365 California vegetables, according to a recent ABC report are manufactured in China. Is there that much demand to warrant growing these thousands of miles away from the state whose namesake

Is Whole Foods looking a lot like Safeway? Has green now gone so far mainstream that it must stand by “go big or go home?” Is MacKey wrong to have certified “organic” food from China? Is mainstream television damaging the green business movement?

I think the damage comes from the lack of transparency. Consumers shouldn’t have to do all the work at figuring out the Whole Foods brand. If Whole Foods wants to handle this transparently, and up the ante on “quality” they need to step up and admit who the independent auditors are and change their packaging design immediately that these products, if they are proudly made in China.

Corporations Leadership in Sustainability

I attended The Executive Council’s Leadership Forum on Value Based Sustainability: The Business Case for Green & Clean in San Jose yesterday; an intimate conference with 100  global brand leaders, corporate execs, a handful of consultants, and a nice handful of green-focused PR and media folks.

It may look as though nothing is new in sustainability, but in less than a decade, industries have moved from viewing sustainable practices as a risk, into reflecting bottom-line savings, and even changing operational strategies.

In 2003, few corporations were openly talking about sustainability, and now, the greening of an organization seems to include employees, customers;  anyone along the supply chain. The story of sustainability has been carried and shifted by employees, and I suspect from the point of view  of the customer.

The overarching take-aways from this one-day event weren’t entirely new. And it seemed, that most in the audience are familiar with what the Fortune 100 are doing; and are fairly involved with their respective corporate missions.

But the panel discussions, presentations and discussions were encouraging; and brought up questions that greenies have been posing for over a decade:

1. Should a company be responsible for educating the public about sustainability?

2. If a company makes something inherently un-sustainable eg: drinks in plastic bottles, if the packaging is made from 70% plant-based materials, and still recyclable, is this product inherently “green?”

3.What is the role of government in moving sustainability? Businesses are a huge lever for change, even social change, should sustainability be left to private sector or civic sector?

4. What role does marketing play in sustainability?

LinkedIn Vs. Email: The Battle is Over.

Trade show producer and entertainer Ken Newman masters sleight of hand but when he’s not performing on the trade show floor, Ken’s magic may be how he uses social media to market his 25-year old company, Magnet Productions.

“Email is white noise,” says Ken, who still uses email blasts to reach key prospects but he sees its limitations in its efficacy. as email conjures up only two percent of his annual revenues.

Email is like the digital equivalent of 25 lbs of recycled paper you get in the mail everyday. I’m not going to open the PG&E bill, or the letter from the IRS first. I’m going to sort the stuff on the front stoop and throw most of it that doesn’t look of interest to me immediately in the recycling bin. There is just too much for me to open and organize. On the other hand, LinkedIn is something that my prospects and former clients are excited about. They open a message from me, because it’s come from an organized network free of junk.

So Ken did an experiment to test his hypothesis that LinkedIn was more effective to getting new engagements:

He sent out LinkedIn requests to his entire address book, and asked his prospects and clients if they would write a testimonial for him and post it to his LinkedIn profile. The results?

  • A 20% response rate.
  • Personal messages & testimonials from marketing directors, senior execs – decision makers who hire Ken directly.
  • Warm, direct responses from former clients whom he hasn’t connected with in over two years.
  • 21 new testimonials in less than one week.
  • Bookings for over four new engagements.
  • Comments regarding Ken’s expansion of services.
  • An offer to speak at an exclusive conference from his knowledge about social media.

There is the sense, it is business centric. It’s got a lot less noise. People look at that and think if I don’t respond to this in a timely fashion, I wont be thought of. The only way I can test that is empirically, the only way I did this to get recommendations on email 2%

“When someone is writing how wonderful you are, it reminds them how valuable you are. It’s happened to me, when I write a testimonial for someone else…. It makes me think,  ‘Wow, This person is really that wonderful.’ ”

LinkedIn is about connection in a very profound way, says Ken, who’s also got a healthy following on Twitter, Facebook and biznik. Even outside the viritual world, Ken knows how to build and manage business relationships, and understanding that connection in safe and trusted medium creates an impression in the mind of prospect.

A message from someone on LinkedIn may carry more value than email because it’s coming from a closed network; a perception that the sender of the message is familiar in someway, focused on business, and intelligent enough to use something that, I also have the decoder ring for.

There are 50 million LinkedIn users, and since 2002, LinkedIn has been building its credibility and product to ensure that those of us using it, will benefit from its experience.  Has LinkedIn worked in growing your business?

Ready for The New Year? What are your Biggest Marketing Challenges?

It’s a new year, and you’re all about a fresh start. I, for one, have a new website + higher purpose; new workspace, and more healthful lifestyle habits. It’s a nutritious beginning to a new decade. And unusual resources of inspiration helped me to re-mix The goodMix.

My advice to those who are working to do good in the world, and perhaps make a profit while doing so, is to identify your top three marketing challenges. If you are struggling to come up with this triad, you may want to go back to your business or marketing plan and refresh your mind.

If this last paragraph makes you feel as though you’ve fallen off a 40-story building, you may want to consider having clearly defined goals in written form so you can refer to this throughout the year.

Marketing goals should be: S.M.A.R.T. Which is acronym for: Specific – Who is involved; your resources + constraints;

Measurable – how will you count your results; how much, how many;

Achievable – Can you or your team really get these activities done in the time-frame allotted? (Honesty is highly under-rated)

Realistic – Is each goal something that you have the resources to do? Are you going to need meds to get them accomplished?

and Time-Bound.(That means taking out a calendar and identifying key dates)

Marketing goals for the most part are NOT your business goals. They are the activities that will: drive more traffic to your website, help you buy software, pay for an assistant (don’t even think of skipping Realistic); and help you drink less.

Value-Based Sustainability: A Case for Green

As the corporations hire more Corporate Sustainability Officers, certify their building, and use greener products, more attention to how sustainability will be given to feeding the bottom-line. And a new word is added into our lexicon. Value-Based Sustainability is a way of describing the realized value – and/or profit-  to the company for engaging in sustainable activities.

The upcoming conference , “Value-Based Sustainability: The Business Case for Green, Clean & Lean,” hosted at the Fairmont in San Jose on January 26th has a huge panel of corporate rock stars: Adam Werbach of Saatchi S; former Executive Director, The Sierra Club; Rupert Davis, MontaRosa; Jeff Seabright, Chief Environmental Officer, Coca-Cola Rob Bernard, Chief Environmental Strategist, Microsoft Bob Stoffel, SVP of Sustainability, UPS, to name a few.

The producer of the event, The Executive Council, is a member-based, high-level peer to peer organization dedicated to connecting business leaders, exploring best business practices, new technologies, and the forces of change shaping our future. The Executive Council has an unparalleled reputation for producing high-value, interactive, dialogue driven events rich in take-aways and networking opportunities.

It is an invitation-only event for senior level executives looking to develop relationships with peers and get content most relevant to making strategic, results-producing decisions.

This event is part of a series, with a follow-up 2010 event scheduled in New York on June 8. Stay tuned for the follow-up to this event.