SunChips case study: re-branding a product with greener credentials

SunChips case study: re-branding a product with greener credentials

Introduction

This report on SunChips forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It focuses on how FritoLay intends to target mainstream and green consumers with the brand's new environmentally focused proposition.

Reasons to Purchase

*Gain insight into the methods used by important industry players to give them a competitive edge

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DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
Consumer packaged goods firms increasingly perceive green business practices as a key marketing tool 2
Strong ethical credentials are associated with enhanced consumer trust 2
However, consumer skepticism has marred many corporations' ethical attempts as 'greenwashing' 3
Frito-Lay has relaunched SunChips as an environmentally focused brand 3
The relaunch acknowledges an intersection between health and the environment 3
The relaunch has proven a success, with annual sales for the brand rising substantially 4
The green focus could help save the company money, as well as improve its image 4
Improving the environmental impact of SunChips' production has been a major part of the company's green plans 4
The company has installed solar panels to one of its SunChips factories to make it more environmentally sound 4
The factory was reopened by Arnold Schwarzenegger on Earth Day, helping generate publicity for the initiative 5
The company plans to refit another factory by 2010 to run off the power grid 5
Carbon footprint reduction has also been a major company focus 6
SunChips has become one of the first major brands to highlight its renewable energy purchases on its packaging 6
SunChips' carbon offsetting practice is in line with PepsiCo's overall policy 6
However, there has been criticism of the value of carbon offsetting 7
The company has invested substantially in marketing the new-look SunChips brand 8
SunChips' marketing spend in 2008 hit $15 million in only four months 8
The company has produced tongue-in-cheek adverts to avoid being perceived as morally superior 8
The relaunch was promoted with a 'solar powered' newspaper advert 9
In addition, solar billboards used the sun shadow to display the SunChips brand name 9
SunChips has also financed the rebuild of a tornado-hit town, which has been shown on the Discovery Channel 9
Wal-Mart is featuring the brand in adverts that promote the retailer's sale of green brands 10
The brand's web presence includes a revamped website and a page on Facebook 10
SunChips faces various threats to future growth 11
Future success of the brand could rely on green issues staying on-trend 11
The credit crunch could hinder the growth of green companies as consumers choose price over ethics 11
APPENDIX 12
Case study series 12
Methodology 12
Secondary sources 12
Further reading 12
Ask the analyst 12
Datamonitor consulting 13
Disclaimer 13
List of Tables
Table 1: Top five green power purchasers in the US, as of July 2008 7
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 5
Figure 2: A substantial amount has been spent on promoting SunChips' relaunch 9
Figure 3: SunChips has donated funds to help rebuild a tornado-hit town 10