Incentives: Righteous rewards

respond at every level, from the top in terms of corporate mission and
positioning, right through to the products they give away as part of
their promotional and direct campaigns.'

Launched last year, Eco Incentives offers a range of items with an
ethical twist. Examples include bags and pens made from natural
materials, USB memory sticks encased in wood rather than plastic,
biodegradable T-shirts and computer keyboards and monitors fashioned
from bamboo.

Eco Incentives, in line with other specialists including Recycled Mania,
Remarkable and Eco-T, has seen business boom this year. Virgin Media,
the Co-op and the Department for Environment, Food and Rural Affairs are
among those using the firm for promotional giveaways. 'There's normally
a lot of waste here, so corporates using green giveaways - such as those
made from recycled materials, or bamboo, which is easily regenerated -
see benefits in the way they are perceived,' Franks explains.

Pens, stationery and clothing are as popular in the incentives sphere as
ever, with marketers seeking innovation or a twist to the tried and
tested in their bid to stand out. However, the rules of business do not
change just because incentives are ethically sourced and environmentally
friendly; marketers and their procurement departments are as keen as
ever on value for money. But a growing number are now taking the 'triple
bottom-line approach', according to Franks. 'Just as important as
financial consideration are the environmental and social impacts of what
they're buying to represent their brands,' he adds.

Larger-scale incentives pose different issues. Red Letter Days, for
example, offers many experiences that are not particularly carbon-light,
such as rally-driving and luxury car days. But its range also includes
more ecologically sound events, such as horse-riding.

Red Letter Days' sales and marketing director, Zachary Soreff, points
out that it is mainly the big corporates that can afford to implement a
green policy. 'The majority of our clients ask to offset any
environmental impact caused by their choice of experience. Companies
asking for eco-friendly experiences are still in single figures,' he
says. However, he believes this attitude may change over time. 'Buyer
pressure has been sufficient to force change in our business to the
degree that we're developing a Green Letter Days offering.'

It is not only incentives that are getting the green treatment. Leo
Burnett-owned direct agency Arc Worldwide reports that several clients
are looking to improve the efficiency of their promotional activities.
Drinks company Diageo, for example, has sought to establish closer
relationships with its trade partners to ensure promotional items
appearing in bars and pubs do not get thrown straight into the bin.
'That way, it not only maximises its budget, but also avoids wasting the
vast amounts of print and paper traditionally used by these promotional
routes,' says Matt Tabb, Arc's marketing director.

Elsewhere, marketers are using online campaigns to replace printed
material. Tabb cites Chelsea Football Club's recent 'Win when you're
singing' campaign - which saw fans at Stamford Bridge chanting for the
chance to win prizes from club sponsor Samsung - that used e-vouchers
rather than leaflets.

Such activity has clear benefits, according to Couponstar managing
director Jared Keen. 'Campaigns such as Threshers' 40%-off scheme last
Christmas act as a constant reminder of how email promotions can gather
a momentum of their own that far exceeds the original expectations of
the marketer,' he says. 'As well as being an effective route to market,
web-to-print coupons provide a significantly greener opportunity for
marketers looking to reduce their impact on the environment.'

Chris Arnold, founder of ethical marketing agency Feel, cites Honda as a
leader in green promotion (see case study). The car manufacturer has the
advantage of building its ethical credentials on a foundation laid as
long ago as 1956. For those brands without similar traditions, taking a
green stance can be risky, not least because of the immense amount of
confusion about what actually is ethical and eco-friendly.

'Consumers face complex dilemmas, from fairtrade versus carbon air miles
to whether offsetting is a cop-out,' says Arnold. 'The cost of ethics is
high, making it a tough call. When a brand offered customers discount
vouchers or a greener tariff a few months ago, most opted for the
vouchers.' Mintel's 'Green and Ethical Consumer' report, published
earlier this year, found that saving money on bills was the main 'green
motivator' for nearly half of respondents. While one in five was too
busy to care about, or apathetic to, green concerns, 17% suffered from
compassion fatigue and were cynical about the movement.

Sourcing is another issue to bear in mind. Franks underlines the
importance of ensuring that incentives claiming to be ethical and
environmentally friendly are backed by supply-chain transparency. 'We're
looking to feature a unique code on our promotional clothing that will
enable the buyer and recipient to trace garments back through every step
of the manufacturing process to the cotton field,' he says.

But the key question is whether green incentives, physical or otherwise,
really change brand perceptions in the eyes of a cynical public. Arnold
echoes the view of many commentators. 'If you think your route to an
ethical positioning is through incentives alone, then you're very much
in danger of falling into the trap of being seen to be spinning it - a
greenwash,' he says.

He believes that although many companies are genuine in their social and
environmental commitments, the extent of corporate change required
rarely filters through to marketing departments. In other words, a few
environmentally friendly promotional items are not enough to convince
consumers of a genuine change of heart. However ethical and eco-friendly
the incentive is, unless it is backed up by visible action elsewhere in
the business, it is likely to be seen as little more than a token
gesture.

CASE STUDY - HONDA

Honda's stated mission is to be 'the company that people want to exist'.
This is not a position adopted recently - its original philosophy in
1956 was 'respect for the individual'. This has been central to the car
maker's approach since, backed by a commitment to be at the forefront of
efforts to create a sustainable automotive future.

The pledge is reflected in its marketing activity. Honda recently wanted
to demonstrate its commitment to reducing and offsetting CO2 emissions.
It briefed agency Intelligent Marketing to launch a customer-reward
campaign based on the amount of CO2 produced in a month by the average
car owner. This was backed by a 'greener driving' gift,
carbon-offsetting work and community and energy-efficiency projects.

'Offering the gift - a month's carbon-neutral driving via offsetting,
with a certificate, a book on responsible driving and a box of Green &
Black's chocolates - reinforced Honda's objective of making buyers aware
of its values,' says James Garside, creative group head at Intelligent
Marketing. He adds that the initiative also gave dealers the opportunity
to communicate these core values to consumers, something which Honda
believes has helped to strengthen loyalty and respect.

According to Honda, more than 4000 tonnes of CO2 have been offset
through forestry, solar and energy-efficiency projects since the
inception of the reward scheme. It says the campaign has been positively
received across the company's 200-strong UK dealership network.