Case study two: The Solar Mower

The product: The Solar Mower

This case study describes the launch of a solar-driven mower. The technology of using daylight as fuel to drive a lawn mower is an incremental step towards environmentally sound products, as it does not use fossil fuels or electricity in generating power. Therefore it does not emit exhaust fumes or other pollutants in generating power either in the garden or at the power plant. The product is a robot, which mflows at random and looks after itself without human intervention. The product starts automatically in the morning when there is enough sunlight. On cloudy or rainy days it takes things a little easier, depending on the available light. The working zone of the mower is bound by a hidden, low voltage wire loop, which is powered by a discrete solar panel.

Course of events

The original product patent was acquired in 1993 and was introduced in the same year as a prototype to the distributors. This generated enormous interest from the public and media. However, production did not start until 1995 due to production adjustments, with sales to the final customer starting later that year. The product is a business success because it has increased brand awareness but due to high pricing the product has not been a sales success.

Driving forces

In the beginning of the 90s the gardening business started to become a mature market with falling margins, with new product introductions incorporating minor product modifications. In the research survey, interviewees stated that the gardening industry was ‘standing still’ and that ‘we were waiting for something to happen’. The company had been looking for future alternatives for a long time and the concept of a solar-driven mower embodied the modernity and vision that management was looking for. When the product’s inventor presented the proto-type at a trade fair in 1991 the whole industry laughed and said ‘there is not a market for that yet’, ‘that looks like a toy, can it mow?’

However Husqvarna AB expressed the opposite opinion ‘this looks very interesting, let’s do something about it, let’s meet the inventor’. The project group saw the product’s potential as an ‘image maker’, i.e.as a product that would help create an image of an innovative company developing innovative products. Another key issue was that the company had rationalised extensively at the end of the 80s and had entered the 90s as a slim organization. The fact that the company was solid and could invest was an important factor in the decision to move the project forward.

Product prototyping

The new solar technology shifted the focus from horsepower to watts as an energy source (with the product using the same power as an electric bulb). A micro computer is programd to mow randomly with small razor knives instead of a traditional rotating knife. The solar technology required new competence and attracted several external consultants and distributors who wanted to take part in the generation of the technology.

The product

The lessons were extensive. The Solar Mower is a niche product is a new

and required specific marketing. The product is a new concept,

concept, which requires customers to change their perceptions of how

which requires to cut grass. The marketing had to be based on symbolic aspects,

customers to which had to be visible to the customer i.e.modern and futuristic. The product had to perform, but it had to give the perception of functionality and usefulness. change their perceptions

The Solar Mower reflected its consumers, and communicated

of how to that they are modern and/or environmentally conscious.

mow grass.

To help the customer appreciate the product, it was not enough to present the raw technology, it had to create an image that related to the target market. The product required demonstration and demanded more information compared to conventional products, simply because customers had no experience of solar-driven mowers.

Experiences

The following five points present implicit and explicit experiences from the introduction of the Solar Mower. The experiences have emerged from the interviews and they are an interpretation of the material.

 ‘Bridge the scepticism of distributors and customers’ – the project presented evidence of the need for product demonstration to generate sales. The distributors learnt this before Husqvarna AB, stating that the selling, negoiation and demonstration took valuable time away from the selling of other products. Initially, there where doubts expressed by some distributors of the ability to sell the product at all. A perception of customers was ‘nice product but can it really mow?’

 ‘Form of distribution is a key factor’ – the form of distribution in Sweden as well as in other markets did not correspond to the demand in well-populated areas.

‘Identification of target groups and markets’ – the profile of the target market for the product was unknown before launch. The process of launching helped uncover the customers, their needs and how much they were willing to pay. The marketing department tried to cover too many markets and launched the product at the same time with the same concept. In retrospect, the product should have been tested on a ‘reference market’ and market research should also have been conducted.

The distributors should have been involved on a larger scale to ‘check the market’ before launching. The launch was an educational process for the company in which valuable information and knowledge was discovered. Today it is possible to detect target groups for the product such as professionals and ‘business to business’ markets such as, industrial areas, holiday camps, hotels and recreational areas. The product is a niche product’  the marketing of the Solar Mower should have been treated differently from mainstream products, especially the communication and selling practices.

‘The product is an “image maker”’ – the company were able to position the Solar Mower at the innovative end of its green product portfolio i.e. at the ‘easy’ end are products such as the lawn mower with a catalytic converter. The company’s brand awareness has increased because of the product. The product signals to the customer the vision of the company, as one which develops new innovative products. In addition, the customers are now also aware that the company also works in the gardening product industry, and is not exclusively a manufacturer of chain saws and forestry products.

Discussion – what, where, and how to understand green products?

What can we learn from the case studies?

Husqvarna AB started to generate experience regarding environment-related issues at the beginning of the 90s. The two case studies are partially a result of the company’s efforts to understand the complexity and the new learning required to develop green products. Lessons learnt include:

• there are different driving forces for green products compared to conventional products.

• green products require a different form of communication and information profile

• there is a degree of insecurity over the marketing of environmental messages

• it is important to find forms of distribution that fit the requirements of the product’s characteristics.

• new knowledge can be found amongst customers, in different organizational departments and within distributors.

Where can we find new experience in the company?

Project groups, environmental coordinators and distributors have generated new experience and knowledge as a result of the green product launches, but the knowledge is limited to each person. Members of project groups have acted as ‘intrapreneurs’ and have searched for information and knowledge in different parts of the organization.

The ‘individual search process’ takes time and resources, and has not lead to the diffusion of knowledge. So, the company faces the task of trying to facilitate the knowledge transfer processes, especially the transformation from ‘individual knowledge’ to ‘organizational knowledge’. This will be the first step towards improving the organizational learning structure in relation to green product prototyping.

How can a company increase its organizational learning?

The main element of organizational learning is the ability of the entire company to create knowledge, and to diffuse and use it in products, services and systems. When organizations learn, they learn from individuals in other departments, subsidiaries, or from other organizational arrangements (Kim, 1993). Procedures are needed to collect and diffuse experience and knowledge so that it becomes organizational knowledge. Husqvarna AB has realized that in order to learn.

The study indicates that learning processes resulting from green product prototyping seem to be different in comparison to the learning resulting from conventional products more in relation to green products, ‘follow-up projects’ and documentation must be completed as a way of making knowledge more explicit. Experience flows it is cross-functional and cross-hierarchy group discussions coupled with documentation, which are important elements in the knowledge diffusion process. The study indicates that learning processes resulting from green product prototyping seem to be different in comparison to the learning resulting from conventional products. The organizational approach has to be built to respond to, not only technological change, but also market changes. It must also learn to understand green customer preferences, local environmental awareness and environmental legislation in different markets. This illustrates that there appears to be a multi-dimensional learning process taking place in the introduction phase. The company needs to focus on the internal learning i.e. learning within the company (individual and intra-functional), as well as external learning (customers and the competition) in order to increase the understanding of the issues surrounding green product prototyping.

Practical examples of ‘missing links’ in the organizational learning process of green products.

The examples from the case studies illustrate the necessity to ‘organize new knowledge’, an area where there is inertia. It takes time for an organization to learn and establish a program to encourage organizational learning. However, before new learning can take place, unlearning has to happen. Unlearning becomes increasingly difficult the more established and integrated the cognitive structures are (Hedberg & Wolff 1997). Green products are more information-and education-intensive than conventional products in the introduction phase.

There are our key actors in this process:

 • Customers

 • Company staff

 • The marketing dept

 • Distributors.

The following examples show the lack of information and education in the introductory phase of green products. The customers hold certain beliefs and myths about the performance, capacity, quality and the price sensitivity of green products. These beliefs should be dealt with at ‘point-of-sale’, as customers want answers to their environmental questions such as ‘what is a catalytic converter’, ‘what kind of environmental certification does this product have’, ‘how much does the product effect the environment’, etc. These questions take time for the distributor to answer, and they need training and information.

Company staff appears to have great personal interest in environmental issues. There were requests for product-related environmental information concerning the effects of products during production and use phases, as well as the content of the products. The existing product specification was not sufficient; it needed to be complemented with relevant environmental information. Many of the interviewees wanted to be presented with ‘credible’ hard facts concerning the green products. It was felt by employees that sales arguments should not be based on arguments such as ‘saving the Earth’.

The distributor is a linchpin in the sale and promotion of green products. Therefore, the training of this group is crucial to the success of green products. This group was not fully informed of the issues before market introduction, which had a negative effect on sales. The localization of the distributor and the prototyping of the competence of the distributor are areas of key importance.

The marketing department built up its own base of environmental knowledge from scratch. In relation to certain aspects it had to unlearn certain marketing practices. The launch strategy was a kind of ‘green’ training for the marketing staff, as they gained an important insight into how to market such products. The marketing department also found that the experiences of distributors were essential in order to adjust activities.

Conclusion

Many Swedish companies are incorporating environmentally-related activities into their product ranges. These companies are experiencing a learning process, which is highlighting the need to communicate collective environmental knowledge within the organization. The findings from the case studies indicate the need for different approaches to developing and implementing marketing and product prototyping strategies, when launching green products. This paper argues that there is a more complex and multi-dimensional learning process taking place in the introductory phase of green products compared to conventional products. Green products require a higher degree of market differentiation. Therefore green marketing will need to address the issue of local adjustments, with greater efforts to educating and training those involved in the product prototyping process, particularly those in distribution networks. Product prototyping strategies need to be formulated to correspond to local green consumer demands. To build on the experiences of green product prototyping effective knowledge collection and then diffusion mechanisms must be established, particularly in complex organizational structures.

References

Bragd, A. and R. Wolff, ‘From product concept to market concept’. A pilot study concerning environmental sound products. GRI, Gothenburg Research Institute, (1996).

Bragd, A, ‘The organizing of environmentally sound products’. A forthcoming licentiate thesis. GRI, Gothenburg Research Institute, (1997).

Kim, D. H. ‘The link between Individual and Organizational learning’, in Management Review, (Fall 1993) pp1-24, 37-50.

Hedberg, B. and R. Wolff, ‘Organizing, learning and strategizing – From construction to discovery.’ Contribution to the Ladenburg Kolleg on Organizational Learning, (1997).

Acknowledgement

The author would like to gratefully thank the company Husqvarna AB for the opportunity to study and take part in the company’s learning process and share its green product prototyping experiences. Husqvarna AB is helping to spread important information through its insights into green product activities via its collaborations within the academic community.

Colin Beard (left) is a lecturer, writer and trainer specializing in environmental issues. He has been a training advisor to the Countryside Commission UK and was instrumental in creating the UK’s first Dti-funded computerized environmental awareness training package called Earthwise. He has designed and delivered environmental awareness programs to organizations in the UK, Europe and Asia. He has a particular interest in the use of creativity, risk and innovation in learning.

Rainer Hartmann (right) is a consultant on European economy and ecology and visiting lecturer at the School of Leisure Management of Sheffield Hallam University. Following studies in biology, chemistry, European economy and international business administration and 8 years in environmental and genotoxicology research he specialized in European Union R&D policies and economy, comparative international approaches to environmental management and conservation, as well as environmental toxicology.

Sustainable design: re-thinking future business products

Lecturer, School of Leisure Management, Sheffield Hallam University, UK Consultant, HCS Consulting, Germany and Visiting Lecturer,

Sheffield Hallam University, UK

Environmental impact reduction is starting to influence design. But ‘sustainable design’ will need to move on, to find innovative solutions to overcome the threats to global natural capital for future generations. Design, if freed from a compliance mentality, the overpowering dominance of science and other barriers to creativity and innovation, may well start to develop different patterns of thinking. Their products may actually revitalize earth systems by producing ‘e-plus’ effects, as well as saving vast sums of money. Nature itself, with billions of years of design experience, can offer many solutions. The campaigning environmental movement is pushing for a new solutions agenda, and forming partnerships with business to develop new products that do more with less earth resources. This article gives practical examples from clothes to washing machines, from cars to toothbrushes, from countries where resources are abundant to those where resources are scarce. Ideas and checklists are offered to help design re-think and to move to resource reduction and ‘e+’ products.