The Ellen McArthur Foundation, and Kantar have published a marketing playbook demystifying the circular economy and illuminating the role of marketers in accelerating the circular transformation of their businesses.
The publication, ‘Marketing playbook for a circular economy’, is the result of a collaborative research project exploring how marketers are capitalising on the competitive advantage that circularity can offer.
Kantar data finds that 64 per cent of people globally believe that businesses have a responsibility to solve climate and environmental problems (although slightly lower in Australia at 49 per cent), so are looking to brands to find ways to eradicate waste and pollution. And while the linear ‘take-make-waste’ approach has become the norm, circular business models – such as reuse, repair and rental – allow brands to differentiate themselves, strengthen customer loyalty, and unlock new revenue streams.
Jonathan Hall, managing partner of Kantar’s Sustainable Transformation Practice, says: “In too many businesses circularity is viewed as the responsibility of operational and sustainability teams. It’s too late for that kind of thinking: sustainability must be on everyone’s agenda and marketers shouldn’t underestimate the positive impact they can make. They are the voice of the customer as circular solutions are developed and can advocate for change in their business and supply chains. The playbook is a rich source of insight for marketers who want to learn about the part they can play in accelerating this transformation in their businesses.”
The Playbook maps out four pathways for marketers to catalyse change:
Create scalable circular solutions
Marketers are the best people in their business to understand their brand, how their customers think and act, and how that is shaping market trends. That means they can identify circular market opportunities and develop viable products and solutions that not only address climate and biodiversity challenges but also resonate with potential buyers.
Drive demand for circular propositions
To normalise circular behaviours, marketers need to create a demand for circular solutions. By embedding these principles into core brand messaging and creative they can keep circular values front and centre to help drive long-term change.
Make circular behaviours irresistible
Change can be hard, even when we want to make better choices. Marketers are in a perfect place to remove the barriers that stop consumers from adopting more circular behaviours, because they have a deep understanding of what makes people tick. In sectors like white goods, electronics and clothing, a circular strategy can encourage people to take on a ‘stewarding’ role over their purchases to keep them in use for as long as possible. Initiatives like repair, resale and product-as-a-service models can also be used to build loyalty by bringing buyers back to the brand as they care for their products.
Hardwire circular KPIs
Delivering circular outcomes can be challenging for marketers who have inherited linear metrics focused on short-term growth and sales. By integrating circular measures into brand performance, marketers can over time build a clear picture of how circularity is positively contributing to broader objectives like brand growth, resilience, and climate action.
Andres Oliva Lozano, senior research analyst at the Ellen McArthur Foundation, says: “A circular economy provides better value for customers, competitiveness and business resilience, all whilst tackling climate change and allowing biodiversity to thrive. Circular solutions can transform the relationship between brands and customers, moving from transactional to more meaningful and value-driven exchanges that extend well beyond the initial point of sale. The circular economy needs marketers to use their skills to realise this opportunity in their businesses.”
