Market Assessement - Essay Example

Introduction

Over the last few decades, there has been an increase in the need for environmentally sustainable use of the environment. This has created a new market segment that prefers green products. In a bid to respond to this segment, the companies are trying to meet consumer needs and have capitalized on the use of green advertising. In some cases, this has proven to be ineffective as explained by Peattie. This is because the companies have focused on hunting and trying to trap the green consumers using camouflage and some bait which have failed. This is because the consumers can see through these tactics. Companies thus need to change their strategy and views on the upcoming market by conducting business in openness through the provision of full product information to the consumers and developing novel innovations that provide new clean technological solutions to meet the green consumer needs effectively (Peattie 2001). This article analyzed products in the Procter and Gamble and Seventh Generation companies who have been very aggressive in green advertising identifying which structure they are in according to Peattie.

Discussion

Seventh Generation Inc is a company that started out 20 years ago as a corporation dealing with eco-friendly products. It developed the market segment for clean cleaning products by developing its own line. However, currently, the company is facing competition from major companies such as Procter and Gamble and Clorox which are now eyeing this market (Pride & Ferrell 2006). The company's sales of eco-friendly products have tripled over the last year. For instance, the sales of cleaning agents such as baby wipes, detergents, and paper towels made a profit of $150 million which is up to 20% increase from the previous year. Because of the entry of these huge companies into the market, Seventh Generation is now afraid of losing its potential customers to the popular companies which have now turned to green products. It is thus planning on launching an advertising campaign that will help it establish its brand (Windsor 2011). This will help it compete equally with other already established brands.

The company thus takes the model of the green purchaser and the green consumer. This kind of advertisement is likely to yield great results since people are now keen on how businesses conduct their operations (Peattie 2001). The Seventh Generation company's mission has been to change the world through its product. Being a pioneer in green products production, they are better placed in offering genuine products, unlike the existing companies who may just change the outside outlook of their old products labeling them as toxic-free. Consumers today are more aware of how their needs should be met and will not go for green-looking products but want authentically clean products. The company's foundation is built upon offering environmentally friendly products. Since it has shown that it is responsible consistently, and has thus created a great habitat where the green market has grown.

Procter and Gamble is a cosmopolitan consumer goods company that is quite established in the market and is an immediate rival to Seventh Generation as it offers products such as cleaning agents, personal care products, beverages, and food. It has an already established brand with subsidiaries and branches in different countries (Pride & Ferrell 2006). This company can be taken assume the model of the hunter. Since the company has realized that there is a new market segment that has about as a resulted of increased awareness among the consumer on the use of environmentally friendly goods (Peattie 2001). The green advertising on P $ G is based on the notion that pollution of the environment does not mainly results in how the products re mato manufactured but how they are used at home. The company has thus created promotional campaigns aimed at showing people how to use their products in an eco-friendly manner. The products are packaged differently but with no further modification. The company also plans to use 100% eco-friendly energy sources in its production activities. This is in a bid to attract customers and show its response to sustainability needs. This marketing strategy may not work in attracting consumers who want clean products (Windsor 2011). This is because it does not start from the roots. Consumers would be more attracted to all green products from companies such as the seventh generation where sustainability is the driving motive. This is because the consumer is quite aware of their needs and can tell when a product does not fully satisfy them. The organization should show real concern for meeting these needs and know exactly how they should be met.

Conclusion

In order for companies to be able to reach the new market segment which shows a preference to clean products, the company needs to produce genuine clean products and not just change the label and packaging to give them a greener look. This would not work. Consumers today have experienced the bad effects of unsustainable use of the environment. Turning things around require genuine work to be done thereby ensuring that the globe is preserved for current and future generations.