Environmental Branding Blocks Competitors
In an era in which consumers are making brand decisions based on corporate image in addition to brand benefits, Tom's of Maine finds competitive advantage via a thorough approach to corporate social and environmental responsibility. By Jacquelyn Ottman
In the hotly contested market of personal care, and elsewhere, manufacturers need every source of competitive advantage. In an era in which consumers are making brand decisions based on corporate image in addition to brand benefits, Tom's of Maine finds competitive advantage via a thorough approach to corporate social and environmental responsibility.
Tom's of Maine is a natural personal-care products firm based in Kennebunk, Me.. The company was co-founded in 1970 by Tom and Kate Chappell, a husband-and-wife team, on the refreshing and honorable principle that humans, animals, and all other forms of nature deserve dignity and respect.
Tom's of Maine excels in a challenging industry by committing this concept to all aspects of its business. The company has never strayed from its original mission to create products that are more healthful to use, and to produce those products in synergy with its community and environment. Tom's of Maine treats its employees, interacts with its community, deals with the environment, and shares its profits in a manner that is thoroughly consistency with its mission.
Three strategies are key elements to the company's thorough agenda:
Prove Quality and Environmental Benefits
Tom's of Maine uses only the highest quality natural ingredients in its products, which also contain no additives, preservatives, artificial flavors, or fragrances. Packaging is also responsible. The toothpaste, for example, comes in a recycled aluminum tube and a box made from 100 percent recycled cardboard and printed with soy-based inks. They do not test on animals.
By adding quality and effectiveness to its list of product benefits, Tom's of Maine allows consumers to meet their needs as well as preserve the planet. Consumers must no longer choose between effectiveness and environmental benefits; they can have both with this brand.
Establish Credibility
Tom and Kate Chappell understand the value of consumer trust. In a manner unprecedented in consumer goods marketing, Tom's of Maine lists all ingredients on product labels together with the specific purpose and source of each ingredient.
In addition, every product label bears Tom and Kate Chappell's signatures along with their company's story. These signatures help to personalize the company and to ensure consumers that the company's mission is preserved throughout all business operations.
Consider Your Consumer a Stakeholder
Since day one Tom's of Maine has maintained a policy of teaming up with consumers. A Consumer Dialogue Team answers each and every letter or phone call personally. The team also provides callers with information about products and related social and environmental issues.
Additionally, Tom's of Maine understands the important place children hold in present and future consumption. They make products geared specifically towards children such as Silly Strawberry and Outrageous Orange Toothpastes.
To obtain children's trust and loyalty, the company makes a point to correspond with them and to provide any information requested. Many children send thank you notes, share stories and experiences, and include artwork and photos of pets, families, and friends.
These and other strategies are paying off. Tom's of Maine's offerings command a 20 to 50 percent premium, depending on the product and market, and in 1995, the company's sales were $20 million, up over 25 percent since 1991.
Moreover, what started as a profitable niche opportunity is now finding its way into the mainstream. The full line of Tom's of Maine brand natural personal-care products is now distributed in 7,000 health-food stores throughout the United States, Canada, and England, as well as 20,000 food and drug outlets on the east and west coasts.
The company has also received numerous awards including the Corporate Conscience Award for Charitable Contributions from the New York City's Council on Economic Priorities, the New England Environmental Leadership Award, and the Governor's Award for Business Excellence.
Admittedly, Tom's of Maine's environmental and social strategies are not based purely on altruism. Dylan Reinhardt, the firm's manager of corporate communications, concedes, "The environmental and social responsibility policies are a barrier to competitive advances. Even a competitor with much greater resources cannot just replicate our formula and expect to take our market share. Our corporate practices add a richness and depth to our product appeal that creates an unusually strong brand loyalty."
Indeed, Patti Murphy, Consumer Relations Coordinator, reports that the company receives more than 75 letters a week from consumers. She notes the one theme that dominates the consumer mail is an appreciation for Tom's of Maine's values.
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Jacquelyn Ottman is president of J. Ottman Consulting, Inc., a NYC-based marketing consulting firm that advises companies on how to develop and market environmentally sound products. She is the author of Green Marketing: Opportunity for Innovation. This article was originally published in Marketing News, June 22, 1998.
Tom's of Maine is a natural personal-care products firm based in Kennebunk, Me.. The company was co-founded in 1970 by Tom and Kate Chappell, a husband-and-wife team, on the refreshing and honorable principle that humans, animals, and all other forms of nature deserve dignity and respect.
Tom's of Maine excels in a challenging industry by committing this concept to all aspects of its business. The company has never strayed from its original mission to create products that are more healthful to use, and to produce those products in synergy with its community and environment. Tom's of Maine treats its employees, interacts with its community, deals with the environment, and shares its profits in a manner that is thoroughly consistency with its mission.
Three strategies are key elements to the company's thorough agenda:
Prove Quality and Environmental Benefits
Tom's of Maine uses only the highest quality natural ingredients in its products, which also contain no additives, preservatives, artificial flavors, or fragrances. Packaging is also responsible. The toothpaste, for example, comes in a recycled aluminum tube and a box made from 100 percent recycled cardboard and printed with soy-based inks. They do not test on animals.
By adding quality and effectiveness to its list of product benefits, Tom's of Maine allows consumers to meet their needs as well as preserve the planet. Consumers must no longer choose between effectiveness and environmental benefits; they can have both with this brand.
Establish Credibility
Tom and Kate Chappell understand the value of consumer trust. In a manner unprecedented in consumer goods marketing, Tom's of Maine lists all ingredients on product labels together with the specific purpose and source of each ingredient.
In addition, every product label bears Tom and Kate Chappell's signatures along with their company's story. These signatures help to personalize the company and to ensure consumers that the company's mission is preserved throughout all business operations.
Consider Your Consumer a Stakeholder
Since day one Tom's of Maine has maintained a policy of teaming up with consumers. A Consumer Dialogue Team answers each and every letter or phone call personally. The team also provides callers with information about products and related social and environmental issues.
Additionally, Tom's of Maine understands the important place children hold in present and future consumption. They make products geared specifically towards children such as Silly Strawberry and Outrageous Orange Toothpastes.
To obtain children's trust and loyalty, the company makes a point to correspond with them and to provide any information requested. Many children send thank you notes, share stories and experiences, and include artwork and photos of pets, families, and friends.
These and other strategies are paying off. Tom's of Maine's offerings command a 20 to 50 percent premium, depending on the product and market, and in 1995, the company's sales were $20 million, up over 25 percent since 1991.
Moreover, what started as a profitable niche opportunity is now finding its way into the mainstream. The full line of Tom's of Maine brand natural personal-care products is now distributed in 7,000 health-food stores throughout the United States, Canada, and England, as well as 20,000 food and drug outlets on the east and west coasts.
The company has also received numerous awards including the Corporate Conscience Award for Charitable Contributions from the New York City's Council on Economic Priorities, the New England Environmental Leadership Award, and the Governor's Award for Business Excellence.
Admittedly, Tom's of Maine's environmental and social strategies are not based purely on altruism. Dylan Reinhardt, the firm's manager of corporate communications, concedes, "The environmental and social responsibility policies are a barrier to competitive advances. Even a competitor with much greater resources cannot just replicate our formula and expect to take our market share. Our corporate practices add a richness and depth to our product appeal that creates an unusually strong brand loyalty."
Indeed, Patti Murphy, Consumer Relations Coordinator, reports that the company receives more than 75 letters a week from consumers. She notes the one theme that dominates the consumer mail is an appreciation for Tom's of Maine's values.
--------------
Jacquelyn Ottman is president of J. Ottman Consulting, Inc., a NYC-based marketing consulting firm that advises companies on how to develop and market environmentally sound products. She is the author of Green Marketing: Opportunity for Innovation. This article was originally published in Marketing News, June 22, 1998.
