It’s Easy Being Green

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Did you know that deforestation is the single greatest cause of global warming?  And  according to the Natural Resources Defense Council, production of bath tissue (aka – toilet paper) is responsible for 15% of that loss?

My favorite new green product is Marcal’s line of 100% recycled paper products – Small Steps.  Launched earlier this year, the Small Steps line uses 100% recycled fiber, contains no dyes or fragrances, and is not whitened with chlorine bleaching (a common, but environmentally harmful manufacturing process).

There are other brands marketing paper products made from recycled material, Seventh Generation and Whole Foods 365 come to mind, but Marcal’s Small Steps is the first brand to offer a “premium” performance at a popular price. 

American consumers have been on a premium push lately, with ever-softer bath tissue products driving category sales volume – up 40% in 2008.  This softness comes at a high environmental price – brands like Charmin Ultra, Quilted Northern Ultra and Cottonelle Ultra use pulp from trees (and no recycled fibers) to get that plush, cloudlike feel.  And Americans lag behind other countries with recycled paper purchases representing less than 2% of bath tissue sold compared to 20% in South America and Europe.

But now seems like a good time for consumers to take some small steps to save the environment and save some money at the same time.  Greenpeace calculates that if every American household purchased just one roll of 100% recycled bath tissue instead of their usual brand, 400,000 trees would be saved.  Seems like it’s pretty easy to be green!

Battle of the eReaders

robots2Just last month, Barnes & Noble announced their new eBooks platform, explicitly seeking to take their share of the eReader market currently dominated by Amazon.com’s Kindle.

David Pogue, The New York Times’ Personal Technology writer offers a good side-by-side comparison of the two platforms in this video.  Key differences:

  • The Kindle is priced at $299 for a basic model; the eBooks platform is free to download
  • Kindle’s exclusive reader software can also be used on iPhones and iPod Touch, while B&N’s eBooks can be downloaded to any PC, Mac, iPod, Blackberry, iPhone
  • Amazon’s library covers over 345,000 titles; Barnes & Noble offers 700,000

So, who are you betting on in the battle of the eReaders?  Will electronic books replace printed editions and maybe stem the decline in reading for pleasure?

Hot off the presses - another player enters the fray: Sony just announced the launch of their own electronic reader, timed for the holiday gift season. Sony’s touchscreen-enabled reader, dubbed the Daily Edition, will retail for $399; a partnership with the New York Public Library will allow 21 day access to over 29,000 titles.

The games are on!

In the Innovation Zone

Now that summer is in full force throughout much of the country, in addition to the usual irritants – sunburn and houseguests who overstay their welcome - here come the mosquitoes!

And along with the pesky insects comes the advertising for the repellents – all types of sprays, oils and candles that are purported to keep the little buzzers away.  One unique solution appears to be the new Off! Clip-On clipOnThe product has a small, battery-powered fan that disperses the repellent to create a “personal zone of protection.”  The product must be connecting with consumers; AdAge reports sales have exceeded projections by 400%, and many retailers are experiencing out of stocks. 

What I find compelling about this product is how the manufacturer, SC Johnson has effectively leveraged technology drawn from their other brands.  SC Johnson is also the maker of Glade, with a plethora of products designed to keep your house smelling fresh (or at least not stinky!).  Note that the technology behind the Plugins Scented Oil Fan is very similar to that used on the new Off! Clip On.  What an excellent example of  amortizing the costs and benefits of innovation across two disparate product categories.

When Good Tweets Go Wrong

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Is Twitter killing the summer blockbuster?  Well, some potential blockbusters, perhaps. After opening at #1 on Friday, July 10, ”Bruno”, the follow-up to the 2006 hit “Borat” saw second night box office decline by 39%.  And that decline is being attributed by some to negative Tweet reactions by opening-night moviegoers.  As of July 26, domestic box office for “Bruno” stands at $56.6million; for comparason, at the same point of release “Borat” had earned $90.8million and was showing a positive trend.

“Bruno” is not the only summer flick that may have been done in by less than positive social media responses.  “Land of the Lost” and “Year One” are also alleged to be victims of fast-moving poor word-of-mouth driven by Twitter and other social media.

Word-of-mouth has always been an important component in driving audience to the multiplex.  Studios have long relied on those avid film fans who clog the theaters the opening weekend and then talk up the film at the water cooler Monday morning.   Marketing programs have typically been oriented to building a large opening weekend turnout, with the assumption that the studios had until at least Monday until the rest of the potential audience got the film review (positive or negative) from their movie maven friends and co-workers. 

As marketers have tried to harness the power of word-of-mouth, they have embraced a wide variety of social media,app_1_67144926522_6333 including blogs, Facebook, MySpace, etc. with a mix of carefully crafted studio-driven campaigns as well as outreach to influential social media mavens.  How many of you were inundated with friend requests to become a “Watchmen” fan  earlier this spring?

Now, with many avid film goers (and the most likely to be socially connected) ready to offer a “thumbs down”  within minutes of viewing a film, what will happen to the historical opening weekend?  Will the window of opportunity be reduced to the first showing, with the verdict in by 8pm Friday night?

Real Money for Virtual Goods?

virtual-giftsThe current issue of Fast Company highlights one of the fastest growing global industries – virtual goods.  Worldwide sales are projected to nearly double to $1.9billion from $992million in 2008.   As with many things tech, Asia is way ahead of the U.S., with consumers in China, Japan, and South Korea driving sales.

Virtual goods are anything from the flower icons you buy for friends on Facebook or MySpace to branded apparel and accessories to dress your favorite online game character.  Virtual goods are sold in four primary areas: social networks, online dating sites, games, and virtual worlds, reports Brian Balfour of Viximo .  One stat I found intriguing – FooPets members spend an average of $25 per month outfitting and feeding their virtual Fifis and Fidos, about the same amount that pet owners spend on their live animal companions.  

This year’s Virtual Goods Conference is being held in San Jose in September, I wonder if the Marriott expects to be paid with cash or virtual gifts?  So, how many of you have tapped your credit card to purchase a virtual good?  Have you been the recipient of a virtual gift – and what did you think of the giver?

Recognizing the Small Signs

So much of US economic growth in recent years has been dependent upon consumer spending – estimated to be 70% of GDP. A major impact of this current recession has been the dramatic decline in consumer spending, driven by job losses, lack of credit, overleveraged home equity, and the reduced value of savings and other investments.

Despite the federal stimulus plan, largely focussed on capital projects and federal/state employment – economic expansion will only begin with consumers start spending (beyond the basic necessities) and get into the malls, auto dealerships, vacation resorts, etc.

In this Salon article, AP writer Jeannine Aversa interviewed a variety of business owners who interact everyday with regular Americans to get their take on what will signal recovery from this recession.  An Applebee’s restaurant owner believes the recession will be over when customers start ordering “complete meals — appetizers, entrees and desserts — as well as drinks like iced tea or soda” again. Dayspas like Red Door are looking forward to their regular clients coming in for splurge treatments, like facials and massages, not just “maintenance” services such as hair coloring. Convenience store owners are watching for the return of the “lunch bucket guy”, often a construction worker who used to stop in for morning coffee and danish, a lunchtime sandwich, and an after work soda and chips.

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It might not be the big ticket purchases (cars, home remodeling, vacations) that signal the return of consumer spending, but the suburban shopper picking up an extra outfit at the mall or office worker buying a round of drinks at their local watering hole.