Product Strategy Study Guide

-Sustainability- meeting the needs of today without compromising the ability of future generations meeting their needs

-Issues: population, social security

- I=P+A+T

=I= environmental influence

= P= population

= A= affluence

= T= technology

-CRS- profit responsibility, stakeholder responsibility, social responsibility

-GRI- Global Reporting Initiative

- Common framework for sustainability

- ISO 9000- efficiency in products and processes certification for global businesses

- ISO 1400- environmental quality and standards certificate

-Green Marketing- product positioning strategy relative to competition

-Green Washing- saying you’re greener than you are

-What are we minimizing?

- Waste, emissions, raw materials and components, water, energy, land and biodiversity, distribution issues, cause related marketing, HR and vendor policies

-Green Imperative-

1) Increasing target market for sustainable products/business

-LOHAS-lifestyle of health and sustainability target market

- 20% of all US adults

- Hippies

- Naturalites-

- 20% of population

- More concerned with health than sustainability

- Wealthy, highly educated

- Less ethical driven

- Drifters-

- Very large, young generation

- 25% of population

- Educated and tech savvy

- Want to be green but can’t because it’s too expensive

- Values are still forming and eventually will drift into another category

- Conventional-

-20% of population

- Older, less educated

- Concerned with saving money

- Show environmental behavior to save money

- Unconcerned-

- 15% of population

- Really old or really young

2) Sustainability of Resources

- Resources are scarce

3) Lower Costs

- Sustainability is efficient

- Long-run cost savings

4) Product Differentiation and Competitive Advantages

- Green products are tie breakers

5) Competition and Supply Chain

- Competition makes you...