Earth-Friendly Cleaning Products

Category Overview and Trends

HEATHER RAST

2009
http://insightsandingenuity.com
 Earth-Friendly Cleaning Products
Category Overview and Trends

Summary
The key to success (in entering the category) will be finding ways to distinguishing the
Aura Cacia brand in a crowded green (cleaning product) marketplace. Product innovation
must help feed the demand, or mainstreaming, of the entire category. Challenges
include brands with established and extensive distribution channels, strong brand
awareness, and/or a cult-type following. Product distinction should bear the trifecta:
accessibility, affordability, quality in order to be viewed as a viable option in the mind of
the consumer that might be interested in green attributes but not at the sake of quality
(i.e., a repeat cleaning or poor experience).

o What unique offering will the product deliver?

o Where does it fit in the consumer‘s hierarchy of needs?
o Where is the ‗blue ocean‘ that others haven‘t considered?

Many argue that home-based cleaning solutions (vinegar, water, lemon juice, orange oil,
baking soda, etc.) are the best tools, offering affordability and availability while
triggering an emotional sense of ―wholesome goodness‖ through a nostalgic tried-and-
true approach. While some are steadfast, clearly these drivers don‘t resonate with the
vast majority for whom convenience and ease of use are top priorities.

Interestingly, it‘s the concept of generosity – reduce, eliminate the unnecessary, re-think
solutions, support educational and sustainability programs of all sorts – that is a
trademark element in many natural cleaning brands‘ character (Greenworks, Seventh
Generation, Greening the Cleaning). This generosity of deed and (to some degree) word
(via audience communication and ingredient transparency) coupled with warm,
approachable personas dovetail completely with the social media and online community
involvement that without doubt helped popularize the respective brands.
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Memorable Words
Mitch Baranowski, co-founder of eco-consultancy BBMG, states that "At a time of...
growing demand for accountability, ... consumers are rewarding brands that align with
their values... punishing those that don't... and spreading the word with their family,
friends and peers... "

Raphael Bemporad, also co-founder, says "... consumers are redefining what truly
matters and evaluating purchases based on both value and values... by delivering...
price, performance and purpose... brands will be able to close the green trust gap... "
And ―In a world of green clutter, conscious consumers expect companies to do more
than make eco-friendly claims. They demand transparency and accountability across
every level of business practice.‖

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Hard Facts
 2009 National Green Buying Research, a study commissioned by Green Seal and
EnviroMedia Social Marketing and conducted by Opinion Research Corporation,
indicates:
o Twenty-one percent (21%) of consumers say a product‘s reputation is the
biggest factor they weigh when making purchasing decisions.
 Word of mouth (19%) and brand loyalty (15%) follow reputation in
importance.
o Just 9% say green advertising is their primary decision influencer.
o 58% of consumers say they buy green cleaning products.
 ―This research proves people want to do what‘s best for the
environment, but it needs to be easy and accessible. Companies
should be clear about the environmental benefits of their products
and services and make sure what they claim in the TV ad is backed
up consistently on product packaging and on the Web site.‖ Says
Valerie Davis, EnviroMedia Principal and CEO.
 The sustainable marketplace is plagued with perception that green products are
substandard compared to conventional counterparts; only 26% of consumers
surveyed (NMI, Sept. 2009) indicate that ―seeing an environmentally friendly
product makes me think that it is higher quality.‖ More disagree with that
statement than agree, validating that consumer sentiment remains against the
―good and green‖ connection.
 The Clorox Company attributes its early success (rapid growth and mainstreaming
of natural/green cleaning products) to two foundational factors:
o Identification of a new consumer demographic, termed ―chemical-avoiding‖
naturalist, with nearly a century of insight.
o Design and delivery of a total product experience that met the full range of
this segment‘s critical needs.
 This segment was in search for the right green or natural product
providing a brand experience across the full spectrum of possible
elements.

Earth-Friendly Cleaning Products | 10/12/2009

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 Digital Marketing
 A trends test run on common search terms indicate ―green cleaning‖ (yellow line)
is more commonly used than ―natural cleaning‖ (green line). Both rank higher
than ―green cleaning products‖ and ―natural cleaning products, respectively.
o The second chart reflects search popularity by region and city, perhaps
indicating a stronger level of interest in green cleaning products in
particular geographies.
 Much more research and analysis should be done with respect to digital marketing
including organic and paid SEM, and reputation monitoring.
o With the Internet as consumer primary source of information (and means
for content ‗sharing‘ or distribution among like-minded consumers),
strategically planning approaches to optimize Aura Cacia‘s online visibility
will be crucial for promoting awareness, disseminating messages, and
fostering an environment for customer engagement.
o Many brands in the space are using paid search tactics including Adwords
campaigns and sponsored ads to generate awareness and drive site traffic.
To name a few:
 Tide HE detergent
 Clorox Greenworks
 SC Johnson‘s Nature‘s Source
 ECOS
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The Community Collective
 The five core consumer values driving the broader green movement and
stimulating the nation‘s socially-minded consumers (trending toward wanting
companies to meet personal needs and positively impacting society):
o Health and Safety (including allergy prevalence)
o Honesty (including cost/effectiveness)
o Convenience
o Relationships
o Doing Good
 Trust matters. At a time of extreme clutter (messages, labels, products),
conscious consumers are prizing transparency, accountability and authenticity
more than ever. They are looking for deeper, more meaningful relationships – a
chance to participate in brands and be empowered by them.
o Companies who align their values with their actions will earn enduring
loyalty among conscious consumers.
o Conscious consumers care deeply about the world around them, yet they
prioritize issues that affect them directly (a type of self-centered
consciousness). Companies offering products and services that deliver
quality, affordability and sustainability will do better with conscious
consumers than those that do not.
 Peer networks will have a strong influence on the success of a green product
introduction. Skepticism over product claims is rampant, and the reach afforded
messages through online forums, blogs, and communities should not be
discounted. A brand can potentially aim for complete transparency (ingredient
listing, ready availability of MSDS documents, etc.) however it‘s seldom attained
and there will always be detractors (purists) decrying solid advancements by
championing a 100% pure solution – the financial and operational (scale)
feasibility seemingly immaterial.
o Strongly recommend that consideration be given to evaluating the potential
merits of a comprehensive content strategy across all communications
touch points, including the incorporation of social media as a channel for
reaching and creating/maintaining dialogue with target consumers and
influencers.

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For 3 Groups:

Planet Green 82,300 combined fans on Facebook pages.

The Nature
Conservancy

The Organic
Consumer
31,250 combined followers on Twitter.

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 Certifications
There are over 400 seals and certifications related to green and environmental attributes
of products. Some are self-created, others are third-parties-for-hire, and still others
address single attributes or qualities.

While certification logos on packing and marketing materials can attract consumer
attention, data suggests that some consumers are confused by the marks and find it
difficult to evaluate one product in comparison with another, ending in frustration and
potentially a loss of trust.

Below are a few; Green Seal seems to be held in the most commonly
held high regard due to its rigorous criteria and non-partisan stance:

 Green Seal Certification

o Founded 1989
o Non-profit 501 (3)(c)
o Provides science-based environmental certification
standards that are credible, transparent, and essential in an increasingly
educated and competitive marketplace.
o In the spring of 2009, launched a corporate certification program designed
to focus on an organization‘s business program in totality (beyond single
products).
 Quality Assurance International
o Certified organic processing. Documents the authenticity of organic farming
and various subsequent levels of handling.
 USDA Organic Certification
o Administers national production, handling, and labeling standards for
organic agricultural products.
 Leaping Bunny – Cruelty-Free
o The Coalition for Consumer
Information on Cosmetics‘
(CCIC) Leaping Bunny
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Program administers a cruelty-

free standard and the
internationally recognized
Leaping Bunny Logo for
companies producing
cosmetic, personal care, and
household products. The
Leaping Bunny provides the
best assurance that no new
animal testing is used in any
phase of product development
by the co., its labs, or
suppliers.

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Category Review
See the accompanying Excel spreadsheet for detailed comparable data of products. This
page presents anecdotal insights only.

Clorox and SC Johnson, leveraging scale, distribution, and brand awareness, are
leaders in the Grocery, Mass, and Retail channels. For the consumer ―dabbling‖ with
green lifestyle adjustments, these products offer comfort (of doing right by the
environment) while easily obtainable at a reasonable cost without sacrificing quality.

Method and Seventh Generation are a bit more ―boutique‖ type products with greater
attention to packaging design (including recycled components and recyclability),
fragrance variations, and channels. Both offer extensive product lines. From a positioning
standpoint, Method seems to acknowledge a ceding of some eco-ground to other
products (i.e., they‘re not purists) but holding their own with affordability (on average
$.50 more per product than regular varieties) and cleaning qualities. Fragrance varieties
seem to attract consumer interest. Conversely, Seventh Generation champion‘s
complete transparency, authenticity, and a higher level of eco-quality with its products,
taking a more serious, comprehensive and long-
term ecological stance.

1. Clorox Green Works

a. As of Nov 2008, surpassed Seventh
Generation in 4 of the 5 categories in
which they compete.
b. Dominates the mature surface cleaner segment.
c. Seeks to make natural cleaning more mainstream.
d. Does not offer fragrance variations.
2. Seventh Generation
a. Q3 2009 re-launch products with newly designed packaging.
b. Has fallen under some scrutiny because fragrance information is withheld.
Accusations suggest that ‗fragrance‘ could obscure a wealth of eco-insults.
c. Goes to great lengths to cultivate and nurture a community of engaged

Earth-Friendly Cleaning Products | 10/12/2009

evangelists; active in digital and social marketing.
d. Over $100 million in sales closing 2008.
3. Ecover
a. 2007 revenues $93 million; 2007 pretax profit $15 million
b. Seeks to balance economical, ecological and social behavior
4. SC Johnson Natures Source
a. ―Nature's Source is our answer for those who want a natural choice in
cleaners that is widely available, affordable and gets the job done right."
b. Does not offer fragrance variations.
5. Method
a. ―People Against Dirty‖ slogan. Overall design is very contemporary, free
from extraneous aesthetic elements.
b. Over $100 million in sales Q4 2008 (up from $15.3 million in 2005).

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 Trades and Influentials
Associations
Following are some over-arching trade and values-based organizations that have
bearing on legislature, regulation, and issues.

 The Soap and Detergent Association

o On Twitter
 The Organic Consumer Association
o On Facebook
o On Twitter
 The Nature Conservancy
o On Facebook
o On Twitter

Events
There are a significantly large number of eco-centered events, ranging from local and
regional movements to national (traveling) events. Below are two of particular
significance; Greenwashing forum for its importance with product acceptance and
image, and Green Festivals for the opportunity it affords with community outreach
and connection-building.

 Greenwashing Forum (hosted by the University of Oregon)

o Greenwashing is a term for misleading marketing about the environmental
benefits of a product.
 Green Festivals (collaboration between Global Exchange and Green America)
o Largest sustainability event in the world.
o On Facebook
o On Twitter
o On YouTube

Media
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These media outlets are held in strong regard by the green community and could be
ideal audiences for targeted outreach programs.

 Environmental Leader
 Consumer Reports Greener Choices
 National Geographic‘s The Green Guide
 Discovery‘s Treehugger
o On Twitter
o On Facebook
o Carbon emission offset challenge
 Planet Green
o On Facebook
o On Twitter
 Brighter Planet

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Resources
These are niche communications and consulting companies with extensive experience
with environmental subjects. They are distinguished thought leaders, sponsoring
quantitative research and lobbying key issues.

 EnviroMedia Social Marketing and Consulting

o Co-sponsors the Greenwashing Index
 BBMG Branding and Integrated Marketing
 TerraChoice Environmental Marketing
o Offers the Six Sins of Greenwashing

Online Communities
These communities contain more user-generated content and a different journalistic
approach than those under the subsection ―Media‖ on the previous page.

 Eco Factory
o On Twitter
 Care2.com
o Anne Berthold-Bond, Green Living editor at Care2.com
 Lifestyles of Health And Sustainability (LOHAS)
o A market segment focused on health and fitness, the environment, personal
development, sustainable living, and social justice.

Activism
 Greenwashing Index
o Launched January 2008 by EnviroMedia and University of Oregon School of
Communications and Journalism.
o To date, consumers in 138 countries have been posting and rating ads to
―out‖ greenwashers and showcase companies that employ sound
environmental marketing efforts.
 Only 2% of self-proclaimed ‗green‘ products
are legitimate, according to TerraChoice.
The other 98% are guilty of greenwashing.

Earth-Friendly Cleaning Products | 10/12/2009

Groups
These advocacy groups were referenced in one or more
sources reviewed in preparation of this report.

As part of a greater outreach program, it could be beneficial

to connect with key members and build relationships in hopes of gaining a
communication forum and support for the Aura Cacia product.

 Women‘s Voices for the Earth

 Healthy Child Healthy World
 Moms Rising

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 Books
A few often-referenced green books:

 ―Cradle to Cradle: Remaking the Way We Make Things,‖

by William McDonough and Michael Braungart,
visionaries calling for radical change.
 ―Squeaky Clean: The Method Guide to Detoxing Your
Home,‖ by Eric Ryan and Adam Lowry (founders of
Method products).
 ―Naturally Clean: The Seventh Generation Guide to Safe
& Healthy, Non-Toxic Cleaning,‖ by Jeffrey Hollander
(CEO of Seventh Generation). Royalties go to Healthy
Child Healthy World to help the group‘s educational
efforts about environmental toxins.
 ―Deep Economy: The Wealth of Communities and the Durable Future,‖ by Bill
McKibben, a prolific, widely read, and deeply respected author.
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The Green Movement
Green T rends
 Wal-Mart, while always a controversial topic, is breaking ground with sustainability
and ecologically-sustainable business practices – and pressuring suppliers and
merchandisers to comply with their standards.
o ―Our environmental goals at Wal-Mart are simple and straightforward: To be
supplied 100 percent by renewable energy; to create zero waste; and to sell
products that sustain our resources and the
environment.‖
 Fresh and Easy (Tesco-UK retailer) is testing LEED
gold certified stores in CA, AZ and other west coast
states.

Below are just a few newly-introduced, readily available

‗green‘ products. Many more examples can be cited, from
apparel to furniture to housewares.

 SCOTT Naturals napkins, wipes, and tissue

 Samsung Reclaim cell phone, made up of 80% recycled materials
 Olympic low-odor paints

Consumer Green Cleaning Companies

 Terramaids
o No endorsement
 Code Green Cleaning
o Endorse, sell and use optionsforlife products.
o Residential and commercial services.
 Ecomaids
o Endorse, sell and use optionsforlife products.
o Residential and commercial services.
o LEED certified.

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 Green Clean
o Endorse, sell and use ECOS products.
o Green Seal approved.
 The Green Mop
o Began 2003
o Arlington, VA
o Franchise opportunities available

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  2Chicks and a Broom
o Began 2002
o Memphis, TN
o Also provide commercial services
o Over 1,000 clients on roster
o Sell many brands including:
 Seventh Generation
 Mrs. Meyers
 Caldrea
 Ecover
 Maid Brigade
o Began 1979
o Green Clean Certified program
o On Facebook

Commercial Green Cleaning Companies

 Green Clean Commercial
o St. Louis, MO
o Nationwide coverage
o Technicians undergo green training
and renew certification annually
o Uses only Green Seal certified
products
o On Facebook and Twitter
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Market Research and Intelligence
Reported Facts
 LOHAS (Lifestyles Of Health And Sustainability) describes an integrated, rapidly
growing $209 billion market for goods and services that appeals to consumers
who have a meaningful sense of environmental and social responsibility and
incorporates those values into their purchase decisions.
 More than 40 percent of LOHAS consumers — the leading segment when it comes
to green attitudes, behaviors and purchasing — state that they look for proof
when a company makes a claim, reports NMI.
 Over one-third of LOHAS consumers would like to see other trusted sources
endorse the claims made by companies, and further validation shows that 85% of
those looking for verification would like the endorser to be a non-profit org.
o An endorsement by an independent organization can help combat consumer
confusion and allay fears of greenwashing.
 $3971.4 million household cleaning product market (approx. 2005, down from
$4155.1 million in 2000) rose again to almost $5 billion in 2008.
o Down because cleaning priorities have evolved to fit faster-paced lifestyles
and changing household demographics.
 SPINS reports consumers purchased $290 million worth of natural household
cleaners and supplies in 2008.
o Representing 26% growth from the year prior (2007) and 23% growth from
2006 ($105 million).
o ―Natural‖ and ―Green‖ are unregulated (marketing) terms, therefore
distilling truly nontoxic products from those simply laying claims is difficult.
 In the April 2009 BBMG study (which combined field observations with a national
survey on purchasing behavior and social values) titled ―Conscious Consumer
Report: Redefining Value in a New Economy,‖ findings reflect (2,000+ surveyed):
o 23% of U.S. consumers say they have "no way of knowing" if a product is
green or actually does what it claims.
o 77% agree that they "can make a positive difference by purchasing
products from socially or environmentally responsible companies.

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o 67% Americans agree that "even in tough economic times, it is important to
purchase products with social and environmental benefits."
o 51% say they are "willing to pay more" for them.
o 66% say price very important in purchase decision.
o 64% look for quality.
o 55% want "good for your health."
o 49% look for "made in the USA."
o 71% of consumers agree that they "avoid purchasing from companies
whose practices they disagree with."
o 55% tell others to shop products based on a company's social and
environmental practices.
o 48% tell others to drop products based on a company's social and
environmental practices.

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 Syndicated Reports A nd Databases
Several reasonable fee-based sources of quantitative data are available for purchase,
see below. Deeper consumer attitudinal insights and behavior trends could be drawn
from Iconoculture if subscription funding was available.

 ―The US Market for Household Cleaning Products,‖ from Packaged Facts. Published
2005, available for $2,250.
 ―The LOHAS Report: Consumers and Sustainability,‖ from The Natural Marketing
Institute (NMI) is available for $4,000 and provides a general overview of the
LOHAS marketplace and of the five LOHAS segments. It explores how NMI‘s
proprietary LOHAS consumer segments differ in attitudes toward the environment,
society, corporate social responsibility, and health. It also provides an introduction
to their behavior, sources of influence, and demographics.
 The Natural Marketing Institute (NMI) also allows subscription-based access to
their consumer database which includes focus on household products (including
cleaners) and personal care products (skin care, hair care, cosmetics). The
database covers a broad range of attitudes, behaviors, product usage rates,
lifestyle patterns, and demographics in this emerging marketplace.
 ―Household Cleaning Products: The Market, USA,‖ available from Mintel Intl. It
covers market size, segmentation, retail distribution, brand sales, advertising, and
marketing, for $3,995.
 ―Environmentally-Friendly Cleaning Products in the United States 2009,‖ From
Research and Markets, for $2,995.
o Recommend purchase of this report based on wealth of knowledge
potentially available (as described in the abstract) including market size and
forecast, category segmentation, channels, brand share, brand qualities,
marketing tactics.
 ―EcoMarkets Summary Report 2009,‖ produced by TerraChoice environmental
marketing group, reflects insights and data related to B2B and B2G green
purchasing.
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About
Heather Rast is a veteran integrated marketer whose skills with brand-building are
rooted in passionate connectivity with target consumer audiences. As a lifelong
learner, she thrives as an agent for innovation and change through strategic thinking
and planning. Heather is principal at Insights & Ingenuity, a marketing
communications consultancy where she identifies and taps into consumer drivers to
create competitive relevancy and distinction. Service scope includes brand auditing,
communications planning, promotion, and online community building.

Contact Heather via email at heather@insightsandingenuity.com or through her blog

at http://insightsandingenuity.com. You may also connect via LinkedIn or Twitter.

Earth-Friendly Cleaning Products | 10/12/2009

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