Implementation of a marketing and promotion action for the EU ecolabel on indoor paints and varnishes in selected European

Transcription

1 Final Report Implementation of a marketing and promotion action for the EU ecolabel on indoor paints and varnishes in selected European countries Service Contract B4-3040/2001/329111/MAR/D3 Valør & Tinge Ltd Copenhagen 28. Jan. 03

2 Table of Contents 1. SUMMARY INTRODUCTION OBJECTIVES STRATEGY Target groups Messages IMPLEMENTATION ACTIVITIES AND RESULTS Initial dialogue with license-holders and key stakeholders Product panel in Denmark and Sweden Product panel in France Common European seminar LESSONS LEARNED AND RECOMMENDATIONS

3 1. SUMMARY The main objective of the project is to contribute to the increase of visibility and use of the ecolabel for paints and varnishes on the market and to develop fruitful partnerships with companies using the ecolabel, retailers and other stakeholders. The strategy is to build up product panels in Denmark, Sweden and France as well as to take the first step to a common European product panel. The project has achieved some very good results. Since the project started in December 2001, four new manufacturers have obtained the European ecolabel so today, there are 28 manufacturers with a total number of 41 licenses 11 more than last year. Furthermore, six manufacturers in Denmark and two in Sweden have shown serious interest in the European ecolabel. A common Danish and Swedish product panel has been established and explorations on how the product panel can be funded after the project period have been made. It has been more difficult to establish the French product panel partly because the environmental market is not yet mature and partly because it requires more individual meetings than expected to convince manufacturers and retailers to participate in a product panel. For a longer-term marketing effort towards potential applicants in the three countries, the project finds that a personal dialogue with the decision-makers in the companies is the most efficient way to create an interest in the ecolabel. The establishment of a product panel can at the same time change many manufacturers attitude towards the European ecolabel. This has been crucial in Denmark because the market is dominated by a few players. Finally, the project showed that the announcement of marketing initiatives on the European ecolabel made by the authorities in Denmark, Sweden and EU is the best lever in committing the companies to support the ecolabel. 3

4 2. INTRODUCTION This report describes the relevant measures and lessons that can be drawn from the project and gives recommendations for a longer-term marketing effort towards potential applicants for the European ecolabel. The project is conducted in close dialogue with Ecolabelling Denmark, SIS Miljömärkning Sweden, AFNOR France, The Danish EPA and the Danish Paintmakers Association. The background for the project was the need for a more targeted action toward the manufacturers, importers and retailers of paint and varnishes in order to attract more enterprises to the European ecolabel scheme. The project shows that a personal dialogue at the moment is the most efficient way to create an interest in the European ecolabel and to recruit members to a product panel. Since the project started in December 2001, 11 new licenses to the European ecolabel have been granted, which means that today, 41 licenses exist for the ecolabel on indoor paint and varnishes. The total number of license-holders in EU has increased from 24 to 28. Finally, six Danish and two Swedish producers seriously consider applying for the ecolabel or market ecolabelled products from affiliates. Their commitment to the ecolabel will depend on the ambitions for the European ecolabel campaign in OBJECTIVES The main objectives of the project were to: take the first steps in the strategy of building up national Product Panels or similar dialogue forums in Denmark, Sweden and France as well as a European Product Panel or a similar forum. 4

5 support the existing license-holders by involving them in partnerships and by increasing the visibility of the ecolabel for paints and varnishes. involve the EUEB, the competent bodies of the selected countries, trade associations, retailers and other relevant stakeholders in the founding of the panels and in the financing of marketing activities. 4. STRATEGY 4.1 Target groups The main target groups were: the license-holders the EUEB and the EUEB Marketing Management Group the national ecolabel competent bodies in at least Denmark, Sweden and France the paint & varnish manufacturers trade associations of the three countries as well as the European trade association (CEPE) a limited number (about 15) of identified stakeholders in the three selected countries, such as major manufacturers, retailers, professional purchasers, national consumer councils, other national NGOs etc. The three selected countries have more ecolabelled indoor paint and varnish products than an average European country. At the same time, they represent three different European market sizes: small, medium and large. The paint and varnish industry in Denmark and Sweden has a high degree of both vertical and horizontal integration. The manufacturers often have their own retailers and many manufacturers with different brands are within the same company. The market leaders are represented in both Denmark and Sweden. 5

6 4.2 Messages The following outlines the main messages that have been communicated to the different target groups. In relation to the license-holders, the main arguments for obtaining the ecolabel must be perceived as understood, and the messages to this target group are therefore those connected to the specific strategy. Messages to license-holders The setting-up of product panels or similar dialogue forums is a good opportunity to form partnerships with interested retailers, public purchasers and other stakeholders in order to increase market shares. Product panels are effective ways of pooling the powers and co-ordinate marketing efforts for ecolabelled paint & varnishes. Messages to potential license-holders The license-holders in your branch is preparing a marketing effort, anchored in the setting-up of product panels or similar dialogue forums. The European ecolabel will, in the future, become a trademark of all sustainable companies in your branch. The European ecolabel is better than other ecolabels because it covers all the countries in the European Union and is used on many product groups. The planned European ecolabel campaign in 2004 will increase the consumer knowledge. Being a member of the product panel is a way to get influence on and knowledge about the European ecolabel campaign. The European ecolabel is a good tool in making the company s environmental efforts visible for public purchasers, enterprises, consumers, etc. The expected turnover by using the European ecolabel is higher compared to the expenses necessary when introducing and using the labelling system. Messages to professional purchasers, retailers and other stakeholders 6

7 Buying ecolabelled paint and varnishes is a good way to avoid indoor climate problems, to limit the number of unwanted chemicals and to support an environmentally friendly development. Buying ecolabelled paint and varnishes is not only good for the environment, you also get a quality product. The European ecolabel is better than other ecolabels because it covers all the countries in the European Union and is on many product groups. Buying ecolabelled paint and varnishes is part of implementing the green purchasing strategies of public institutions and private companies. 5. IMPLEMENTATION ACTIVITIES AND RESULTS The following describes the communication activities and results achieved Initial dialogue with license-holders and key stakeholders Activities: Dialogue with 17 license-holders from 7 countries Contact with key stakeholders in Denmark, Sweden and France The initial dialogues were more time-consuming than anticipated because, the contact persons at many license-holders did not speak English, French or German and the contact persons at the license-holders did not have time for an interview. The main conclusions are: Sweden is the only country experiencing a marketing benefit from having the European ecolabel on the products. The tendency shows that the longer down south you go, the lesser are the interest in the environment and the European ecolabel. It is the professional users and public institutions that are most interested in ecolabelled paints and varnishes. 7

8 Despite the fact that license-holders do not have the success with the label as they anticipated, they still want to have the license because they expect the market for environmentally friendly paints and varnishes to increase. License-holders rarely advertise the European ecolabel and their ecolabelled products. When it does happen, it is done along with the general advertising. The companies marketing need is to make the European ecolabel more known to the consumers and to advertise the European ecolabel in relation to professional users as well as public consumers such as hospitals, schools, etc. It is the companies opinion that it is EU or national government responsibility to increase the knowledge on the European ecolabel but they expressed the following relevant messages to market ecolabelled paint and varnishes: Ecolabelled products are also high quality products Ecolabelled products also protect your health Ecolabelled products are not much more expensive than other products And they proposed the following channels to market ecolabelled paint and varnishes: TV and other mass media are necessary to increase the consumers knowledge Streamers on recently painted areas with the European ecolabel could increase consumers knowledge Do-It-Yourselves programmes on television will be ideal channels to change consumers behaviour The yearly paints and varnish fair in Munich could increase the producers knowledge on the European ecolabel and at the same time convince the existing license-holders that they have made the right choice. In the initial dialogues we also informed the license-holders about the marketing material on the EU s homepage, the new discount possibilities for the European ecolabel and that the new criteria will soon be available. The license-holders knew about the marketing material but many did not know the last two subjects. 8

9 5.2. Product panel in Denmark and Sweden Activities: Individual dialogue with manufacturers, the Swedish and Danish ecolabel competent body, the Swedish and Danish consumer organisation, the Danish health and safety organisation for painters, Danish and Swedish environmental organisations, the Danish trade association for painters, the Danish organisation for public procurement One preliminary Danish product panel meeting with 10 Danish participants One preliminary product panel meeting with 15 Danish and Swedish participants One product panel meeting with manufacturers, competent bodies, retailers, and NGOs from Denmark and Sweden Dialogue with the European Commission, the Swedish ecolabel competent body and the Danish Environmental Protection Agency on how the product panel can continue to suit its purpose after this project During the project, there have been three product panel meetings. The first was only for the Danish manufacturers, the trade association, the competent body and the Danish EPA. At the second and third product panel meeting, the participants were both from Denmark and Sweden and at the third meeting, NGOs and retailers participated too. It was the Swedish manufacturers who suggested a joint Swedish and Danish product panel. This could simultaneously be the first step towards a common European product panel for paint and varnish products. In fact, one of the decisions from the third product panel meeting was that Finland and Norway should be invited to the product panel. The Swedish manufacturers have a positive attitude towards the European ecolabel, while the Danish companies are somewhat less interested and more critical. The producers are therefore split in two groups. One group wants the work of the product panel to be directed at consumers and customers, the other wants it to be 9

10 directed at national and European authorities, e.g. by ensuring that the demands of different authorities are commensurable, that the criteria of the European ecolabel are relevant, etc. One effect of the product panel meetings is that they keep the critical license-holders interested in the European ecolabel. Another is that two major players seriously consider marketing their affiliates ecolabelled products in Denmark. The manufacturers have changed attitude toward the European ecolabel and product panel during the three meetings. In the two first meetings, they were interested but also critical. In the last panel meeting, they were much more positive, committing themselves to participate in the product panel. One of the reasons for the change in attitude is that the participants are interested in the European ecolabel campaign in Another is that the decision to participate has been given time to mature in the companies during the project period. Manager of Technical Services Mats Nilsson from Akzo Nobel (Nordsjö) has volunteered to be chairman of the product panel and the companies and stakeholders general attitude towards the product panel are positive and several are committed to participate. If there is funding to continue the product panel it is highly certain that the product panel could be formalised in the beginning of The Danish and Swedish EPA are in the process of investigating the possibilities for financing. The trade associations, the environmental authorities and the ecolabel competent body of both countries have a positive attitude towards starting-up a product panel for paints and varnish products. Presently, three Danish companies have the European ecolabel, one is close to gaining it and five have shown serious interest in it. Today, nine companies have the European ecolabel in Sweden. Furthermore, two have shown serious interest in it. 10

11 If there is funding to continue the product panel, several actors have shown interest in disseminating information about the European ecolabel and the product panel, e.g. the Danish and Swedish trade association and the competent body Product panel in France Activities: Dialogue via mail and phone with French manufacturers, trade associations and ecolabel competent body, AFNOR Preliminary meeting with AFNOR and Cami-Gmc in Paris. A meeting with two other French manufacturers was scheduled but unfortunately the participants cancelled on the very day of the meeting due to traffic jam. Dialogue with the major retailer Leroy Merlin, who has a positive attitude towards the European ecolabel Dialogue with AFNOR on how they can arrange the next meeting It takes a long time to get in touch with the French manufacturers. This is partly because the people we have been in touch with, needed approval from their managers to spend time on a product panel. It is an executive decision, because France has less tradition for co-operation between manufacturers, salesmen, retailers, trade associations, etc. According to the French manufacturers and competent body that we have been in contact with, there is a common feeling among consumers and consumer organisations that environmentally safe paints and varnishes are more expensive and less worth quality-wise. The green segment is small and is only willing to pay 5% more for an environmentally safe product. Today, five small to medium-sized companies have the European ecolabel. Since the European ecolabel is little known by the average and the green consumer, the manufacturers do not prioritise the European ecolabel. Instead, they prefer the national ecolabel. Another barrier for the European ecolabel is that the major 11

12 companies do not want the European ecolabel on their products, because they fear that it will confuse their branding Common European seminar Activities: Dialogue with CEPE Seminar in Copenhagen Dialogue with manufacturers about the seminar Dialogue with national trade associations and ecolabel competent bodies about what can make the companies interested in participating in a seminar Dialogue with Link Inc. who has a marketing project in Belgium Dialogue with the European Commission about the low interest in the seminar In our dialogue with the companies, the companies have shown interest in the following issues: New EU regulation The European ecolabel campaign in 2004 Discussion on a minimum size and placement of the label on the packaging Advice on how to communicate most effectively about the European ecolabel Experience from the Danish textile product panel The dialogue showed at the same time very little interest to participate in a seminar. This is due to a low interest in environmental issues and the travel to Brussels. Therefore the seminar was held in relation to the last product panel meeting in Copenhagen. Only participants from Denmark and Sweden attended. 12

13 6. LESSONS LEARNED AND RECOMMENDATIONS The following describes the lessons that can be drawn from the project and gives recommendations for a longer-term marketing effort. Today, the European ecolabel is on the agenda in all the major Danish and Swedish paint and varnish companies and the attitude towards the European ecolabel has been less and less critical during the project period. In Denmark, the manufacturers believe that most of the paints sold in the market are environmentally friendly. The consumers demand water-based paints instead of ecolabelled paints when they take the environment into consideration. The license-holders though, hope that ecolabelled paints will become a competitive advantage when sold to professionals, kindergartens and other public institutions. In Sweden, the ecolabel is an access to the public market. The consumers know and prefer ecolabelled products but their knowledge on the Swan and the Falcon is much higher than the European ecolabel. This lack of information and expensive products are the main factors that prevent a higher sale of ecolabelled products. The industry has in general no tradition for co-operation on product development and marketing because the competition is hard but there is no threat from competitors from low-waged countries. There are three reasons for the manufacturers to participate in product panels: 1. the European ecolabel campaign in 2004 is a carrot 2. it is a competitive advantage against small and medium-sized companies 3. it is a response to a future market with more focus on the environment It takes time for the manufacturers to commit themselves to participate in a product panel and it is a problem for the trade association to support the product panel 100% because it will promote one product at the expense of another. The Swedish and Danish manufacturers have different objectives. The Swedes want the work to focus on marketing and the Danes want the work to be directed at national and European authorities. 13

14 In France, the general environmental awareness about environmentally friendly products is quite low and the supply of European ecolabelled paints and varnishes is small. The French consumers generally associate European ecolabelled products with lower quality and higher prices. The French manufacturers and trade associations are critical towards the European ecolabel. One of the reasons for the negative attitude is that they prefer the French ecolabel because they have been more involved in developing the criteria and because it does not include a negative list. The negative attitude towards the European ecolabel and the fact that the industry has less tradition for co-operation between manufacturers, retailers, authorities, NGOs, etc. has made it very timeconsuming and difficult to build up a product panel in France. The key actor in building up a product panel or similar dialogue forum is the large retailer Leroy- Merlin. It is Leroy-Merlin who demands that the suppliers can deliver ecolabelled products and Leroy-Merlin is positive towards the European ecolabel because the retail chain has Do-It-Yourselves shops in several EU countries. Recommendations The project gives the following recommendations for a longer-term marketing effort: Raising the awareness and knowledge about the ecolabel among all the European consumers and professional purchasers must have the highest priority. Setting-up a product panel can result in more companies becoming more positively inclined towards the European ecolabel and keep the critical licenseholders in the ecolabel scheme. Product panels are suitable to form partnerships with retailers, manufacturers, trade associations and other stakeholders. Individual meetings with the decision-makers in the companies are necessary to create an interest in the ecolabel and the product panel The announcement of marketing initiatives is the best lever in committing the companies. It will be easier to recruit the members two the product panel if there is funding for a secretary for at least two years. 14

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