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Sustainable Product Development
Gregory Van Buskirk (Clorox Services Co.)
Susie Hoeller (Hoeller Law Firm)
Shannon Boyd (BNSF Logistics)
Terry Stone (Syngenta) Environmental Defense Fund Sustainable Solutions Lab Notes : Breakout Session 1: Sustainable Product Development · Consensus that consumers need to be more concerned about the quality of the products they are buying as opposed to just the cheapest most attainable products. Companies want to produce the most durable and sustainable goods. (Quality) o This will in turn create a long lasting and sustainable consumption function for companies to create a base for the demand for their products. o Adam Siegel- from RILA states that their consumer purchasing department is one that he would like to improve. He also says that you must be a full time consumer in order to understand the patterns and values that consumers have in the products that they buy. o Ethical companies lose business to unethical companies due to the lack of regulation says Susie Hoeller. She goes on to say that as an ethical company you should support some kind of regulation in order to have a competitive edge. o Sustainability deals with the environment and social aspects as well as economic feasibility. You must start with sustainability on the consumer end of the chain. Sustainability must also be on a convenient level on the supply chain in order to ensure that suppliers are not crippled. (CristianBarcan) o The end product is what is important to have as a sustainable good o Fundamentally you need to give business and suppliers more of an incentive to create sustainable goods. Without some kind of reward they will not se a need to change to patterns in the supply chain. Table Rotation: · Suppliers seem to agree that sustainability in their end products is vitally important to their production due the fact that they are also consumers. o There is a degree of concern in the marketability of products of how companies design their products in order to create them in a way that allows them to be sustainable. Producers are looking for the best possible materials along the supply chain in order to ensure that each process in making their products from raw materials to the final product are of sustainable and long lasting quality. o Steve Chotta: Is concerned about what encourages consumers to switch purchasing brands in regards to the sustainable long lasting products. o Susie Hoeller: States that with the changes in the population it is vitally important to have some kind of innovation in the way we produce products. Says she used to work for Texas Instruments and they developed RFID chip and sold it to dutch farmers. Now all companies buy this product. Therefore it is seen that sustainability is driven by proper marketing and innovative thought in the production process. o When an innovation comes everyone’s clock goes back to zero and we are all at equilibrium. (Gregory Van Buskirk) o Shannon Boyd works in logistics and says that he is interested in sustainability due to the fact that he plays a major part in the production chain. If he can do his part he may encourage other companies to follow his example. o There seems to be a mirror effect with producers to understand the sustainability of products. They want to create them in order to create a purchasing base of consumers and also while they are producers they are also consumers and they themselves understand from a general economic perspective that they want better and more durable products. o Susie Hoeller says that many companies are making very deceptive claims on the quality of their products. o US government agencies seem to have split jurisdictions as far as things considered organic and green and this therefore slows down the process of legislative implementation as far as changing the considerations of certain labels on their products. (Susie Hoeller) o The sustainability of good extends to the exterior of company relations even all the way to marketing. You must create a product that looks reliable to consumers. o Susie Hoeller says that some products are inherently not sustainable. An example is Halloween decorations. This encourages waste and inefficiency. If we could cut out this waste of production we would be able to focus on other and more important things. o She goes on to say that some people drive SUVs because there is a demand for them and sustainability is not put into the demand aspect of the economy. As Americans we also may be over consuming. o The fact that less developed countries wish to follow the distinct path of consumerism that the United States has is going to dwarf what we have already done in damage to our lack of sustainable products. o Retailers have major pull in deciding the quality of products that we buy. They may want to save us money but there will be more damage in the long run unless we switch to quality over cheap attainable goods. (Gregory van Buskirk) · There was a general consensus during the second session about the fact that all influence of the creation of sustainable goods can be brought about by the consumer. o With the creation of the social media and the internet it is possible to educate consumers on a much quicker basis. (Susie Hoeller Breakout Session 2: Educating the customer · Learning, Recommendations, Challenges · There is a general consensus that in order to be effective in selling products your consumers must be educated to the point where they understand the practicality of what you are selling. This is what will solidify sustainable consumption. Learning: o Without customer education in regards to what you are selling you can create a reliable demand base. o This also plays back into the fact that if sustainable goods are going to be stimulated by consumers then consumers definitely need to be educated in order to ensure that desired sustainability. o Environmentally friendly products are something that attract a lot of consumers due to a morality aspect. People feel good about themselves if they are buying something that is good for the environment. Recommendations: · We should create products that make consumers feel good about their purchase rather than make them feel guilty about what they are buying. · Promotional intensity is key into educating a consumer with a new product. · Clarity of standard is very important things in packaging in order to show the customer what they are purchasing. · Do not use materials in products that encourage fear mongering and suppress people to turn away from your product. Ex. Products with many environmentally harmful inputs. · Education can be achieved with surveys and polls from volunteer customers in figuring out how to sell what you are producing. · There is a need for internal change in marketing departments in order to effectively communicate to the consumer what you are trying to say. · Perhaps create some kind of platform that promotes a month of environmentally friendly products in order to educate consumers. · Give customers the opportunity to compare competing products in order to show them the benefits of you own. · Perhaps you could implement your organic product into the community through public organizations. Ex. Organic yogurt being sold to hospitals for newborn babies in order to create a new purchasing block for new mothers. (Jenny-Stonyflower) Challenges: · It is sometimes difficult to understand how to make a durable product and at the same time make something that is environmentally friendly. · There is a power of the brand that sometimes turns customers away from learning new ideas for products because they have never heard of the brand name. · Sometimes our advertising campaigns do not work to the extent that we would have wished. And customers reject the methods that we use. · There is some difficulties in distinguishing products in platform advertising due to the fact That there are many sustainable products. · Promoting the positive qualities that associate with sustainable products. · Making the connections with all of the different consuming blocks could prove to be difficult. In order to do this we need to understand why each consumer purchases the products that they do. · Organic producers will need to dispel some myths about the things that they create. · Doing things in a more integrated way.
· Product Specification o Declining quality over past 30 years (ex: cribs, carseats, etc.) § Consumers want low cost, which means lower quality o Some places DO enforce quality products § Illinois, Wisconsin, Connecticut § Arkansas doesn’t necessarily enforce quality products · AR no longer has vehicle inspections , but CA is the opposite o Lack of accountability enables lack of quality § How do companies fix this? · Enforce it by regulation? § Wal-Mart is doing good things, but not acting out on the bad · Sustainabilityà Changing the culture of America o Take money from unsustainable items and put it towards something more durable/sustainable (Ex- spanish lessons for your kids) o This takes much time; would be a next-generation change o It’s possible to change, but hard to see how it will § Ex- water bottlesà change came from out of nowhere, to using them when the sources have always been there. · What caused the random change? o Triggered by something; perhaps a need? A way to adapt § With leadership, things can change much faster. · Media! o Ex- Kellogs (brand can be destroyed in simply 1 day due to the media) · Sustainability Product Development o If companies and consumers work together, it can derive change § Ex- nutrition label · Can you see anyone today NOT wanting them? They cause no harm to products or consumers · Innovation is risk o Many companies don’t want to take risks, so they don’t innovate § PROBLEM: Sustainability Product Development REQUIRES innovation to remain sustainable! · Are there petroleum applications that make a whole lot of sense? o If you don’t outrun the long-run supply, then yes. o In terms of carbon capture, plants “beat us down o Data-driven decisions § Consequences · Global Standards for LCA (Life Cycle Assessment) o Developing of guidelines by the ISO (International Standards Organization) Terry Stone- “Sustainability should be measured by the outcome.”
Susie Hoeller (Hoeller Law Firm)
Shannon Boyd (BNSF Logistics)
Terry Stone (Syngenta) Environmental Defense Fund Sustainable Solutions Lab Notes : Breakout Session 1: Sustainable Product Development · Consensus that consumers need to be more concerned about the quality of the products they are buying as opposed to just the cheapest most attainable products. Companies want to produce the most durable and sustainable goods. (Quality) o This will in turn create a long lasting and sustainable consumption function for companies to create a base for the demand for their products. o Adam Siegel- from RILA states that their consumer purchasing department is one that he would like to improve. He also says that you must be a full time consumer in order to understand the patterns and values that consumers have in the products that they buy. o Ethical companies lose business to unethical companies due to the lack of regulation says Susie Hoeller. She goes on to say that as an ethical company you should support some kind of regulation in order to have a competitive edge. o Sustainability deals with the environment and social aspects as well as economic feasibility. You must start with sustainability on the consumer end of the chain. Sustainability must also be on a convenient level on the supply chain in order to ensure that suppliers are not crippled. (CristianBarcan) o The end product is what is important to have as a sustainable good o Fundamentally you need to give business and suppliers more of an incentive to create sustainable goods. Without some kind of reward they will not se a need to change to patterns in the supply chain. Table Rotation: · Suppliers seem to agree that sustainability in their end products is vitally important to their production due the fact that they are also consumers. o There is a degree of concern in the marketability of products of how companies design their products in order to create them in a way that allows them to be sustainable. Producers are looking for the best possible materials along the supply chain in order to ensure that each process in making their products from raw materials to the final product are of sustainable and long lasting quality. o Steve Chotta: Is concerned about what encourages consumers to switch purchasing brands in regards to the sustainable long lasting products. o Susie Hoeller: States that with the changes in the population it is vitally important to have some kind of innovation in the way we produce products. Says she used to work for Texas Instruments and they developed RFID chip and sold it to dutch farmers. Now all companies buy this product. Therefore it is seen that sustainability is driven by proper marketing and innovative thought in the production process. o When an innovation comes everyone’s clock goes back to zero and we are all at equilibrium. (Gregory Van Buskirk) o Shannon Boyd works in logistics and says that he is interested in sustainability due to the fact that he plays a major part in the production chain. If he can do his part he may encourage other companies to follow his example. o There seems to be a mirror effect with producers to understand the sustainability of products. They want to create them in order to create a purchasing base of consumers and also while they are producers they are also consumers and they themselves understand from a general economic perspective that they want better and more durable products. o Susie Hoeller says that many companies are making very deceptive claims on the quality of their products. o US government agencies seem to have split jurisdictions as far as things considered organic and green and this therefore slows down the process of legislative implementation as far as changing the considerations of certain labels on their products. (Susie Hoeller) o The sustainability of good extends to the exterior of company relations even all the way to marketing. You must create a product that looks reliable to consumers. o Susie Hoeller says that some products are inherently not sustainable. An example is Halloween decorations. This encourages waste and inefficiency. If we could cut out this waste of production we would be able to focus on other and more important things. o She goes on to say that some people drive SUVs because there is a demand for them and sustainability is not put into the demand aspect of the economy. As Americans we also may be over consuming. o The fact that less developed countries wish to follow the distinct path of consumerism that the United States has is going to dwarf what we have already done in damage to our lack of sustainable products. o Retailers have major pull in deciding the quality of products that we buy. They may want to save us money but there will be more damage in the long run unless we switch to quality over cheap attainable goods. (Gregory van Buskirk) · There was a general consensus during the second session about the fact that all influence of the creation of sustainable goods can be brought about by the consumer. o With the creation of the social media and the internet it is possible to educate consumers on a much quicker basis. (Susie Hoeller Breakout Session 2: Educating the customer · Learning, Recommendations, Challenges · There is a general consensus that in order to be effective in selling products your consumers must be educated to the point where they understand the practicality of what you are selling. This is what will solidify sustainable consumption. Learning: o Without customer education in regards to what you are selling you can create a reliable demand base. o This also plays back into the fact that if sustainable goods are going to be stimulated by consumers then consumers definitely need to be educated in order to ensure that desired sustainability. o Environmentally friendly products are something that attract a lot of consumers due to a morality aspect. People feel good about themselves if they are buying something that is good for the environment. Recommendations: · We should create products that make consumers feel good about their purchase rather than make them feel guilty about what they are buying. · Promotional intensity is key into educating a consumer with a new product. · Clarity of standard is very important things in packaging in order to show the customer what they are purchasing. · Do not use materials in products that encourage fear mongering and suppress people to turn away from your product. Ex. Products with many environmentally harmful inputs. · Education can be achieved with surveys and polls from volunteer customers in figuring out how to sell what you are producing. · There is a need for internal change in marketing departments in order to effectively communicate to the consumer what you are trying to say. · Perhaps create some kind of platform that promotes a month of environmentally friendly products in order to educate consumers. · Give customers the opportunity to compare competing products in order to show them the benefits of you own. · Perhaps you could implement your organic product into the community through public organizations. Ex. Organic yogurt being sold to hospitals for newborn babies in order to create a new purchasing block for new mothers. (Jenny-Stonyflower) Challenges: · It is sometimes difficult to understand how to make a durable product and at the same time make something that is environmentally friendly. · There is a power of the brand that sometimes turns customers away from learning new ideas for products because they have never heard of the brand name. · Sometimes our advertising campaigns do not work to the extent that we would have wished. And customers reject the methods that we use. · There is some difficulties in distinguishing products in platform advertising due to the fact That there are many sustainable products. · Promoting the positive qualities that associate with sustainable products. · Making the connections with all of the different consuming blocks could prove to be difficult. In order to do this we need to understand why each consumer purchases the products that they do. · Organic producers will need to dispel some myths about the things that they create. · Doing things in a more integrated way.
· Product Specification o Declining quality over past 30 years (ex: cribs, carseats, etc.) § Consumers want low cost, which means lower quality o Some places DO enforce quality products § Illinois, Wisconsin, Connecticut § Arkansas doesn’t necessarily enforce quality products · AR no longer has vehicle inspections , but CA is the opposite o Lack of accountability enables lack of quality § How do companies fix this? · Enforce it by regulation? § Wal-Mart is doing good things, but not acting out on the bad · Sustainabilityà Changing the culture of America o Take money from unsustainable items and put it towards something more durable/sustainable (Ex- spanish lessons for your kids) o This takes much time; would be a next-generation change o It’s possible to change, but hard to see how it will § Ex- water bottlesà change came from out of nowhere, to using them when the sources have always been there. · What caused the random change? o Triggered by something; perhaps a need? A way to adapt § With leadership, things can change much faster. · Media! o Ex- Kellogs (brand can be destroyed in simply 1 day due to the media) · Sustainability Product Development o If companies and consumers work together, it can derive change § Ex- nutrition label · Can you see anyone today NOT wanting them? They cause no harm to products or consumers · Innovation is risk o Many companies don’t want to take risks, so they don’t innovate § PROBLEM: Sustainability Product Development REQUIRES innovation to remain sustainable! · Are there petroleum applications that make a whole lot of sense? o If you don’t outrun the long-run supply, then yes. o In terms of carbon capture, plants “beat us down o Data-driven decisions § Consequences · Global Standards for LCA (Life Cycle Assessment) o Developing of guidelines by the ISO (International Standards Organization) Terry Stone- “Sustainability should be measured by the outcome.”
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