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BDA considers use of Fairtrade label in marketing

A Buckingham Design Associates product story
Edited by the Marketingweek Marketplace editorial team Dec 16, 2009

Buckingham Design Associates has considered whether 'going Fairtrade' is being abused by companies as a marketing ploy.

This year, the Fairtrade Foundation celebrated its 15th birthday.

Over the years it has helped improve the livelihoods of more than seven million people throughout Africa, Asia and Latin America.

It is a well-respected organisation, fighting a noble cause.

But as more shoppers opt for ethical brands, are companies going Fairtrade just for the marketing value?
This week, Nestle announced its Kit Kats (the four-fingered variety anyway) are to be made from Fairtrade cocoa.

It is estimated the extra cash will benefit 8,000 Ivory Coast farmers, with more funds being poured into education, healthcare and training.

But with Nestle arguably the UK's most boycotted company (thanks to its controversial marketing of baby milk), the news has hardly been greeted with universal praise.

Nestle's critics have come out in force to question whether its gesture is genuine or just a cynical marketing ploy.

Nestle is not the only company to be put under the ethical spotlight this year, with Starbucks, Cadbury and Tate and Lyle now all basking in a Fairtrade-certified glow.

These days you won't just find ethical shoppers in Bodyshop and buying wicker baskets in specialist boutiques.

The ethical market is now big business, with UK shoppers spending 40 billion green pounds last year.

Many high-street retailers now sell eco-fashion ranges, while you can fill your home with sustainably made furniture and choose from 4,500 Fairtrade-certified products.

In a recent survey, 82 per cent of consumers said they prefer to buy from companies that are socially and environmentally responsible and 23 per cent will do so even if their products are more expensive.

It is no wonder brands are eager to give their marketing an ethical stamp.

In 2007, the Advertising Standards Authority (ASA) warned that the 'green' claims being made in many marketing campaigns might not be authentic.

This followed action against a number of car manufacturers for their shaky claims on the 'clean technology' used in their cars.

The ASA's warning seems timely, with so many brands now eager to paint themselves with a green-tinted brush.

But in the rush to go green, many are forgetting the other values that are intrinsic to being seen as ethical: authenticity, honesty and trustworthiness.

As with all claims made in marketing, if brands are seen to be wearing green badges they do not deserve they risk a backlash when their misdemeanours are exposed.

This is why I do not expect to see a rush of people lifting their embargo on Nestle products anytime soon.

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