SunChips Case Study

Content

• Catalyst
• Summary
• Analysis
  • Consumer Packaged Goods Firms Increasingly Perceive Green Business Practices As A Key Marketing Tool
  • Strong Ethical Credentials Are Associated With Enhanced Consumer Trust
  • However, Consumer Skepticism Has Marred Many Corporations' Ethical Attempts As 'Greenwashing'
  • Frito-Lay Has Relaunched Sunchips As An Environmentally Focused Brand
  • The Relaunch Acknowledges An Intersection Between Health And The Environment
  • The Relaunch Has Proven A Success, With Annual Sales For The Brand Rising Substantially
  • The Green Focus Could Help Save The Company Money, As Well As Improve Its Image
  • Improving The Environmental Impact Of Sunchips' Production Has Been A Major Part Of The Company's Green Plans
  • The Company Has Installed Solar Panels To One Of Its Sunchips Factories To Make It More Environmentally Sound
  • The Factory Was Reopened By Arnold Schwarzenegger On Earth Day, Helping Generate Publicity For The Initiative
  • The Company Plans To Refit Another Factory By 2010 To Run Off The Power Grid
  • Carbon Footprint Reduction Has Also Been A Major Company Focus
  • Sunchips Has Become One Of The First Major Brands To Highlight Its Renewable Energy Purchases On Its Packaging
  • Sunchips' Carbon Offsetting Practice Is In Line With Pepsico's Overall Policy
  • However, There Has Been Criticism Of The Value Of Carbon Offsetting
  • The Company Has Invested Substantially In Marketing The New-Look Sunchips Brand
  • Sunchips' Marketing Spend In 2008 Hit $15 Million In Only Four Months
  • The Company Has Produced Tongue-In-Cheek Adverts To Avoid Being Perceived As Morally Superior
  • The Relaunch Was Promoted With A 'Solar Powered' Newspaper Advert
  • In Addition, Solar Billboards Used The Sun Shadow To Display The Sunchips Brand Name
  • Sunchips Has Also Financed The Rebuild Of A Tornado-Hit Town, Which Has Been Shown On The Discovery Channel
  • Wal-Mart Is Featuring The Brand In Adverts That Promote The Retailer's Sale Of Green Brands
  • The Brand's Web Presence Includes A Revamped Website And A Page On Facebook
  • Sunchips Faces Various Threats To Future Growth
  • Future Success Of The Brand Could Rely On Green Issues Staying On-Trend
  • The Credit Crunch Could Hinder The Growth Of Green Companies As Consumers Choose Price Over Ethics
• Appendix
  • Case Study Series
  • Methodology
  • Secondary Sources
  • Further Reading
  • Ask The Analyst
  • Datamonitor Consulting
  • Disclaimer
• List Of Tables
  • Table 1: Top Five Green Power Purchasers In The Us, As Of July 2008
• List Of Figures
  • Figure 1: Sunchips Are Now Manufactured Partly In A Solar Powered Factory, While It Uses The Green-E Mark On Packs To Show Its Support Of Green Energy
  • Figure 2: A Substantial Amount Has Been Spent On Promoting Sunchips' Relaunch
  • Figure 3: Sunchips Has Donated Funds To Help Rebuild A Tornado-Hit Town