A few final adjustments

After meeting the Prof, and as I am working on the final report, here are a few adjustments to the plan:

1. Dynamic variable(s):
Reduced to only one - environment-friendliness - needs to be supported by data (which is available via LCA studies). This is going to be the only key differentiator to be used for promoting glass.

2. Simplified the 5-point positioning statement:
Current Belief - Plastic is more convenient, glass is not
Desired belief - Glass is environmently better than plastic
Consumer Proposition - Glass is more eco-friendly than plastic. For every bottle of glass you buy instead of plastic, you help save 72 grams of CO2 emissions. Plastic adds to environmental waste.

3. Product:
Bundle of benefits - going to only stress on the search attribute of glass being environment-friendly (supported by data and testimonials)

4. Communication Plan:
Message Focus: more on importance of recycling and environmental issues

It's been a fun journey doing all this analysis and going through the different stages... on the home stretch now....

It's all in the data...

So given the main objective of earning share from plastic, we must quantify with data what are the real savings when using glass vs. plastic.

Here is some data:
According to a life-cycle assessment (LCA) study endorsed by AMR Research, for 12 oz (355 ml) bottle manufactured in the US, glass has a carbon footprint of 0.171 kgCO2 and plastic has 0.214 kgCO2. Translating that to an average 20 oz. soda bottle, it is a .072 kgCO2 lesser CO2 emissions for every bottle that is made in glass and not plastic.

Tying this to my business objective and the 4Bs calculation, we are looking at converting some 3.2 million people (1.7 billion bottles in 3 years) over to glass. That is a environmental effect of about 125,600 tonnes of reduced CO2 emissions in the atmosphere over the course of 3 years.

Since the communication objective is information, this will serve at the fundamental selling point in every communication to the consumers (the consumer proposition).

BP - Collaborators

Thoughts on the channel members (collaborators) who would play a vital part in promoting glass and add value in their own way:

1. B2B customers - these are the direct customers of O-I, who take the bare bottles shipped to them and not only put their beverage in it but add packaging/labeling before it reaches the market. Their key value add is product it two-fold:
a. packaging attractiveness
b. info on labels about benefits of glass vs. plastic

2. Restaurants/grocery stores - they add value in terms of place and time - i.e. giving appropriate shelf space and choices to the consumer in terms of glass bottles and also how easy it is for the consumer to buy them (time savings)

3. Communities/government - they provide place and time value in terms of recycling options - have enough recycling stations within easy reach so that people are able to recycle glass bottles easily and realize one of the key benefits of glass promised to them.

4. NPOs - they would add value in terms of product expertise - vouching for the earth-friendly features of glass and also adding credibility and third-party endorsement of O-I's message.

I think these are the 4 key collaborators which O-I needs to work with to get the most out this marketing plan execution...

BP - Evaluate

Given my straightforward business objective (increasing share for glass in the US non-alcoholic beverage (NAB) market by 3% by 2013), the evaluation of the marketing plan can be measured against that business objective.

Hence, here is an attempt at the evaluation metric:

"Every year, for the next 3 years, glass share of the US NAB market should increase by 1%"

Stating it year-by-year let's us measure the effectiveness of the plan on an ongoing basis, and make any adjustments if needed, rather than wait till the end of the 3 years.

Maybe this metric is too simple, but that is what the purpose of this marketing plan is in the end...

The 4Bs data

Thinking through the Bodies > Beliefs > Behaviors > Bucks (Benefits) framework....

Collecting data on the 1st B (bodies) of the 4Bs has been a bit of a challenge. Given that my business objective was clear earn 3% share of non-alcoholic beverage (NAB) market for glass by 2013 - didn't think that Bodies portion would be that big a deal. But market data is very scattered around who and in what packaging and with what frequency is consuming NAB in the US. Still searching through many market sources (Mintel, etc.)

Once I have this, the next 3 Bs should be easy. The last B of Bucks and Benefits can be addressed as:

Bucks - revenue stream for O-I based on additional 3% sale
Benefits - carbon footprint reduction of glass vs. plastic/aluminum (have some numbers on kgCo2 per average bottle in each packaging type)

Continuing with the data search for the 1st B....

Thinking of a NPO partnership

I really think it would be beneficial for O-I to enter into a partnership with an NPO to further the cause of glass. The key with any partnership is to find the right "fit" - one that is fruitful for both parties and leads to the realization of common goals.

With this in mind, following are some crucial determinants in picking an NPO partner for O-I. Ideally, that NPO organization should be:

1. Focused on climate change / global warming as a central mission
2. Very supportive of glass as an environment friendly product i.e. should be self-espousing its benefits
3. Have recycling programs as a main element of its agenda. Ideally, should have community, grassroots-level reclycing schemes. This element will help O-I get reclyced glass into its furnaces and would further help reduce energy consumption and carbon footprint.
4. Preferably have a good brand equity built in the national NPO space - good reputation et al.

Such a partnership also helps O-I's marketing communication efforts by having an NPO promote it alongwith lending further credibility, and hence precipitating the achievement of our business objective.

With these in mind, I'll be looking for any such NPOs and suggest that such a partnership be considered as another executional element in the marketing plan.

BP - Promotion

The attempt here is to educate the target audience about the benefits of glass (information) and get them to buy their beverages in glass bottles (behavior change). Awareness is already there about glass being a packaging alternative and top-of-mind awareness is not the suitable objective in this case. Hence, the focus will be on information objective.

Primary Communication Objective:
Information (followed by credence at later stages)
The information message will focus on:
a. search attributes - supported by data e.g. carbon footprint facts of glass in comparison to plastic, plus product placement which is visually appealing
and
b. experience attributes - supported by consumer testimonials, studies, etc.

Message Focus:
Importance and Perception
Get to increase the importance of environment-friendliness, recyclability and health and wellness in the consumer's mind - plus increase the perception that glass is the most earth-friendly, recyclable and inert packaging material.

Risk Focus:
Promotion (not prevention) - of what is good about glass, what can an average person do by using glass (e.g. carbon calculator of reclycing one glass bottle per week i.e. simple call-to-action), the health benefits of using glass vis-a-vis plastics, what others are saying about their glass experience (testimonials).

Media Types:
These are some options in my mind:
1. Local billboards in select high-population areas
2. TV ads
3. PR (e.g. articles in Wall Street Journal, National Geographic, New York Times, etc.)
4. Internet ads

I need to flush out some of these and focus on ones with biggest bang for the buck.

Partnerships:
With an environmental NPO - need to assess "fit" with glass.

BP - Product of Glass

As a product, glass offers the following benefits as a bundle:

1. Environment friendly / recyclable
2. Superior taste of beverage
3. Health and Wellness (does not react with contents / beverage)
4. Visual appeal (looks premuim compared to other packaging materials)

Thinking of the all product attributes of glass, I took our in-class laddering exercise (the features>benefits>values framework) and used it to create the attributes in the following 3 categories. I highlight (italicize) the ones which I will focus on as differentiation attributes in the communication message.

Search Attributes:
1. Recyclability / Environment friendliness
2. Looks / Appeal
3. Health factor
4. Weight
5. Price

Experience Attributes:
1. Taste / Flavor (of beverage)
2. Feel / Handling
3. Durability
4. Safety
5. Convenience

Credence Attributes:
1. Good citizenship
2. Good parenting
3. Premuim image / cool / sophisticated
4. Self-esteem / satisfaction
5. Health
6. Smart / frugal

Not sure I understood the concept of power attributes (need to check with Prof)

Hopefully, I am on the right track with my BP framework here...

The Brand called Glass

This was an interesting choice for my project.

Although my FE is the company Owens-Illinois (O-I) - leading manufacturer of glass containers in the world - the brand is really 'glass'. Branding the company O-I or a commodity product with very little diferentiation that O-I delivers i.e. bare glass bottle in a B2B business is probably a tougher task than reaching out to the consumer with the story and image of glass as a brand for healthy and environment-friendly choice. As a market leader in terms of volume and revenue, O-I stands to reap the most benefits of increased sales of glass and it only helps to build it as a brand. Further, the end product of the beverage is delivered to the marketplace by the beverage companies (Pepsi, Coca Cola, etc.), the consumer really does not care which company created the bottle the beverage came in (no one is going to lift the bottle and look for the little O-I punt mark). However, the bottle being a glass bottle has tremendous opportunity in terms of visual equity. All these considerations strengthen to build the brand of glass as opposed to the company that produces it.

Any dissenters to this reasoning..... ? I guess you could argue that why does then Intel follow its branding strategy as a company (being in a B2B business setting as well) - I would then say that microprocessors have many more search attributes that are differentiating than a bare glass bottle and hence make the case for building the brand around the company that produces it since it can try to differetiate itself on those attributes.

The communication message - Glass v. Plastic

Since my marketing objective is to acquire customers using plastics bottles for their beverages today, the BP model encourages mentioning and highlighting the downside of plastic vs. glass (as much as what is good about glass). One concern I have here (which has been validated by one of the marketing managers in our company) is that some of our big B2B customers (Pepsi, Coca-Cola) have a lot of their products in plastic and may not appreciate a message out their which promotes the risks associated with it. Although O-I wants to have people switch over to glass, it probably won't be wise to have our existing customers frown at our marketing message.

Hmmmm... this does present an interesting challenge to the next stage of my Big Picture framework.

Your take on global warming?

Now this topic could be opening a pandora's box or a can of worms - however we view it - it is clearly a contentious topic with differing opinions all over the world. And everyone claims to have "data" to support their argument.
Why does this matter to my project? - because the key social "good" in glass promotion is about lower carbon footprint and hence helping the cause of global warming / climate change. If people are not even convinced that this is an issue that humanity should be concerned about, then that has wide-ranging implications on the very basis of this marketing promotion. Or at the very least, the marketing plan will need to revised to segment the market based on those beliefs (amongst other segmentation variables).

Just one of my string of thoughts as I proceed with the project.

So, what is your view on this popular debate of our time and age?

BP - Positioning Statement

For the 5-point positiioning statement, I have the following:

1. Current Do:
Buy non-alcoholic beverages in plastics packaging
2. Current Belief:
Plastics and aluminum are more convenient, cheaper and glass adds no particular value, so why pay more
3. Desired Belief:
Glass is good for the environment and good for my health
4. Desired Do:
Buy beverages in glass bottles
5. Consumer Proposition:
Glass is the most eco-friendly packaging material with the lowest carbon footprint. It is inert and preserves taste the best. Glass looks premium. Plastics leaches contaminants in your beverage and adds to environmental waste.

BP - Target Audience Description

I have to admit that this is the most challenging and fun part of the project yet - since we have to "bring to life" our target customer. I think I have a fairly good idea of who she/he might be. Here is an attempt:

"Megan, 26, lives in a neighborhood in Ann Arbor and is employed in an area firm earning $75,000/year. She went to school at Univ of Michigan and takes pride in her education and how it has helped land her job and do well at work. She drives a VW Passat and frequently shops at the neighborhood Kroger for grocery needs. In addition to price as a major factor in her purchasing decisions, Megan also values quality and would not mind paying a little more for it. While selecting refreshment beverages, packaging does not figure as a prime concern, although she makes a conscious selection.
Megan has an active social life. Most nights Megan would eat at home and over the weekends Megan goes out to eat with her friends - normally at a casual sit-down restaurant like Panera Bread. She likes to work out about 3 times a week.
Megan keeps up with the local-area news and events of Ann Arbor and also checks in on what is happening in the world. She cares about her neighborhood and feels that every person should do their bit in keeping the community safe and clean. She has an innate desire to be a good citizen of the world and help is small ways she can. Megan donates to local area charities every now and then and donated $200 to the Red Cross for the Haiti relief effort."

What do y'all think? Too narrow, too broad? not enough or too much detail?

P.S. Any resemblance with person(s) living or dead is purely coincidental.

BP - Segmentation

The next step in the BP analysis would be to complete the STP - Segment, Target, Position section.

Segmentation:
For segmenting the market on some variables, I am thinking more along the lines of attitudinal - ones which start with the prefix "need for". The laddering exercise in class was a great way to brainstorm these and flush out a comprehensive set of variables that are important to my target segment.
Here is the list, starting with need for:
a. flavor/taste
b. convenience (handling, ease of use)
c. safety
d. saving money
e. environment friendly
f. image
g. health and wellness

Main variable:
To think of this as a "cost of entry" variable, it was not as clear to me in the non-alcoholic beverage space (NAB). All packagining options (plastics, aluminum, glass) fulfill the same basic need of rigid packaging material that contains and preserves the beverage. So then I started to think of the market leader - since they are supposed to dominate on the main variable. Plastics is the clear market leader and presumably the most convenient in general. So, I suppose the defintion of the main variable would be "rigid packagining material that is convenient to handle and use"?

Dynamic variable(s):
In our earn share SoV, this is of paramount importance as this what allows us to differentiate from the competition. In the laddering exercise, I grouped together the benefits that glass can outscore other options like plastics and aluminum. These are the following:
a. flavor/taste
b. environment friendly
c. health and wellness
d. image

BP - Marketing Objective

Continuing with the BP framework and moving to the next stage: marketing objective.


1. Category Definition
The category that I have chosen for the purposes of this project is
NAB (non-alcoholic beverage) segment
which includes:
a. carbonated drinks like Pepsi, Coke, etc.
b. bottled water
c. fruit/vegetable juices
d. RTD (ready to drink) coffee, tea
d. functional drinks (gatorade, etc.)

2. Customer Definition
Current Customer - anyone who buys non-alcoholic beverages, whether in a sit-down restaurant type setting or casual, on-the-move setting or at the grocery stores.

Ideal customer - one who would choose their non-alcoholic beverage in glass bottles in a sit-down restaurant setting and at the grocery stores.

3. Marketing Objective
Acquisition

3. Source of Volume
Earn share from plastic bottles as a packaging option in this category (earn 3% by 2013)

Would you choose glass?

Point in case:
Sitting next to Megan in our class, I saw her drinking water out of a plastic bottle - nothing out of the ordinary - we all do it. Thought triggered in my mind to ask her about her preference for glass. The conversation unfolded somewhat like this:

A - Megan, would you ever want to drink water out of a glass bottle?
M - (snap came the answer) No!
A - Why not?
M - Who wants to carry a glass bottle around all day long, it's heavy, and could break.
A - What if I told you that glass is the most earth-friendly, completely recylcable material and preserves taste the best.
M -(shrugs) Could be, but that doesn't matter to me. It's not convenient.
A - (thinking what to say next for a while) So you don't care about the environment Megan.
M - I do but not sure how much it really matters a few bottles in glass vs. plastic. That's not enough to make me switch.
A - So, what would make you switch? If they are cheaper?
M - Maybe, yes then (still not completely convinced)

Kate - (sensing I may need some help jumps in and whispers to me) - You need to make glass bottles exciting
A - (puzzled look)
K - Like maybe if they will glow in the dark or something!

We all got a hearty laugh in the end but this short dialogue did sum up the challenge of marketing glass in a capsule.

So, would you choose glass? What's your story....

BP - Business Objective

The first step in the BP framework is to clearly and precisely define the Business Objective.

One of the key decisions here is to set the goal i.e. what we hope to achieve with our marketing plan. O-I sells glass bottles in various end-use segements such as beer, wine, spirits, food, beverages (non-alcoholic and alcoholic), etc. My thought process was to pick a goal in a category that offers the biggest growth opportunity. One of the considerations there was the current market share vs. overall market size plus the future growth opportunity. Another one was the geographical area of growth. Keeping this in mind and after discussions with marketing managers in my company, I have chosen to target the NAB (non-alcoholic beverage) segment in North America region (US & Canada).

Here are the 4 elements of the BP Business Objective:

1. FE: Owens-Illinois (O-I)
2. Core competence: skill at glass R&D & processes plus customer relationship building
3. Goal: Increase market share of glass in the NAB segment in NA to 6% (from the current 3%)
4. Time Frame: 2013 (3 years)

Choosing a Business Objective

Per my last post, I was at a juncture of deciding what should be the focus of my business objective - recylcing, B2B customers or end consumer. After much deliberation on the 3 options, I chose to go with marketing glass to the end consumer. This falls in line with the popular marketing notion that even if a business is B2B (like O-I), it should always keep the end customer in mind, even if it is in conjunct thinking with its B2B customer. Marketing directly to the end customer has the domino effect of shifting the desired actions upstream i.e. end customers when convinced of your marketing message will push your B2B customers for your product thereby precipitating the realization of your marketing goals. In turn, this also increases the chances of achieving the desired reclycing behaviors and the associated social impacts.

If I was to sum up the process of my thinking:

Market to end consumer > consumer wants to buy more glass > O-I's B2B customers (Pepsi, Coca-Cola, etc.) increase their demand to O-I > O-I's sales increase > glass has greated share in the container market > more glass is available to be recylced > more glass being produced and recycled glass reduces emissions (glass has lower carbon footprint) > positive environmental impact

Will be following up with greater detail this weekend on the step-by-step BP analysis... lot of catching up to do...

So, what's next...

The next major point of inflection in the project is about "what" is meant by marketing Glass is Green.
If I think in terms of O-I, various avenues seem plausible to pursue, some of which are already been followed by the company to varying degrees, others not so much. O-I already has a sort of operational goal of cutting its CO2 emissions by 65% by the year 2017 (using 2007 as baseline). To achieve that, they have been thinking in terms of:
a. increasing share of recycled glass in our furnaces
b. decreasing energy consumption, in general
c. finding other ways of cutting emissions

To support this goal and to lend a marketing spin to this initiative of glass promotion, here is what I thought were the universe of choices:
1. Encourage more recylcing, in general, in our communities as a way of getting more glass back
2. Sell the environmental benefits of glass to our B2B customers (Pepsi, Coca-Cola, etc.) in order for them to buy more (as a way to, in turn, support their sustainability goals)
3. Market directly to the end customers and increase the demand for glass (which should have effects in 1 & 2 above)

As a marketing objective, each of these options have vastly different strategies. Maybe need to factor in the "biggest bang for the buck" theory....