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Tuesday, March 16, 2010

CPG companies go Green (not with envy)

Is there any advantage of associating your brand to a social cause? Does it affect your brand equity?

This remains to be a major debate. While there have been many examples of such associative branding, there have also been glaring failures.

While one may like that Colgate has extended its brand to Oral Hygiene - there have been many who have questioned its efficacy?

Hindustan Unilever Limited (HUL) had its social cause (venture) called "Shakti" whcih was appreciated and used by some and again questioned by some citing it as an unlawful trade practice of selling their own stuff

Though not from the world of Retail or CPG, Aircel has associated itself with Save the Tiger initiative in India. However there have been questions on how does any of that help the cause?

P&G too in the past had launched a "Shiksha" initiative. It has now gone into the Go Green campaign with a future friedly environmental push.

However what will push all these CPG giants to really be "Green" is its biggest customer WalMart.

Retail giant Wal-Mart Stores Inc. recently announced that it wants suppliers to reduce 20 million metric tons of greenhouse gas emissions by the end of 2015. Wal-Mart has also been designing more energy-efficient stores and pursuing alternative fuels for its truck fleet