Big things come often come in little packages, or so they say. This seems to be the case at retail these days as marketers rush to *enhance* their products by making more out of less. This has started a chain reaction that goes something like this:
* Environmentalists suggest that reducing package size can decrease
landfill waste and energy consumption;
* Wal-Mart announce its plan to reduce packaging by 5% and
challenges its vendors to come up with reductions;
* Unilever launches Small & Mighty All detergent which is 3x as
powerful as regular detergent;
* P&G follows suit by creating highly concentrated formulas for Tide
and its other brands;
* Target and other retailers jump on the band wagon realizing that
small packages will be easier to keep in stock, taking up less
room and allowing for more products on their shelves;
* Marketers figure out that they can actually make more money with
concentrated products since they are less expensive to produce and
to ship not to mention the PR value of being able to taut their
“greenness”;
* Consumers figure out that the concentrated product is easier to
bring home and takes up less space in their cupboards;
* Everybody wins.
Reuters wrote about this trend earlier in the week:
Growing demand from U.S. retailers and manufacturers for smaller,
eco-friendly packages is pushing box makers and chemical companies
to create compact packaging that is bio-based and recyclable. Most
initiatives, although still in their infancy, are being spurred by
increasing environmental awareness and looming legislation. But
companies exploring smaller and ‘greener’ packaging options are also
doing so with a keen eye on profits.
It is easy to see in this case that green is indeed good, helping consumers, retailers and manufacturers alike. The environmental benefit of producing smaller packages is modest now but ultimately could yield massive energy savings (manufacturing, shipping and stocking) and significant waste reduction. This chain reaction may not have been anticipated by Wal-Mart and undoubtedly was motivated by more than simply wanting to do good for the environment–AND this is fine by me.
What interests me now is the possibilities for chain reactions in other marketing arenas. Marketers who seize the day by truly going green may be surprised by the ripple effect across their entire supply chain. The impact may be far greater than they expected pleasing not only the press but also their shareholders and their customers. What do you say, Detroit? How about starting a chain reaction by declaring your call to reduce the weight of your cars by 20% in the next five years? Sounds good to me.