  {"id":6955,"date":"2015-12-09T22:54:05","date_gmt":"2015-12-10T03:54:05","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/method-soap-bringing-green-and-the-rest-of-the-color-spectrum-to-the-masses\/"},"modified":"2015-12-09T22:54:05","modified_gmt":"2015-12-10T03:54:05","slug":"method-soap-bringing-green-and-the-rest-of-the-color-spectrum-to-the-masses","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/method-soap-bringing-green-and-the-rest-of-the-color-spectrum-to-the-masses\/","title":{"rendered":"Method Soap: Bringing Green (and the Rest of the Color Spectrum) to the Masses"},"content":{"rendered":"<p>Founded in 2001, Method Products approached the cleaning products market with a fresh perspective, pairing creative and fun design, while maintaining a mission and commitment to \u201cgreen\u201d cleaning materials that are accessible and appealing to the general population. Method\u00a0grew from $34M in revenue in 2005 to $100M in 2012 and are now estimated at revenues north of $300M.<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a> Method\u2019s success, borne out of the efficacy of its business and operational alignment, has spawned a number of competitors and imitators from new and well-established brands alike.<\/p>\n<p><strong>Innovative Design &amp; Cleaning Products?<\/strong><\/p>\n<p>Method focused heavily on the design and aesthetic of its product to make it stand out and serve as a visual representation of the company\u2019s creativity and innovation.<a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a>\u00a0Method hand soap bottles are uniquely pear shaped, and customers can choose from a variety of eye-catching colors and fun\u00a0scents. Customers are drawn in, and\u00a0they may choose to dive deeper and discover Method\u2019s commitment to environmental sustainability.<a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Method-BTC-Header-4101.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-6983 alignright\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Method-BTC-Header-4101.jpg\" alt=\"Method-BTC-Header-410\" width=\"320\" height=\"168\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Method-BTC-Header-4101.jpg 780w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Method-BTC-Header-4101-300x158.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Method-BTC-Header-4101-600x315.jpg 600w\" sizes=\"auto, (max-width: 320px) 100vw, 320px\" \/><\/a><\/p>\n<p>First, Method is transparent about the ingredients used in its formulation, only using nontoxic and fully biodegradable materials.<a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a> This is in contrast to many traditional cleaning agents that have known and unknown toxic impacts if inhaled or exposed to the skin, and can persist in local water tables even after they are rinsed away. \u00a0More concentrated formulas in areas like laundry detergent reduce packaging material needs. In addition, Method\u2019s bottles are a closed loop system, sourcing from 100% recycled plastic and also subsequently recyclable.<a href=\"#_ftn4\" name=\"_ftnref4\">[4]<\/a><\/p>\n<p>These designs\u00a0allow Method to show that positive environmental benefit doesn\u2019t translate to substandard cleaning products or a less mainstream, hemp-filled lifestyle. These choices directly support Method&#8217;s value proposition of fun, accessibility, and environmental benefit for the customer.<\/p>\n<p><strong>Supply Chain Alignment<\/strong><\/p>\n<p>In addition to the deliberate environmental choices for the product itself, Method cascaded the principals of its core strategy through\u00a0its supply chain, resulting in a tightly coordinated and highly aligned production and distribution process.<\/p>\n<p>Looking more closely at\u00a0product manufacturing, Method\u00a0announced earlier this year the opening of a new facility in the Pullman neighborhood of Chicago. The factory will be powered in part by renewable energy (solar panels on the roof), will be equipped with energy efficient equipment, and will be LEED platinum certified, the highest rating possible. The plastics supplier for the factory is also co-located, reducing operational inefficiencies, shipping cost, and emissions associated with transport. <a href=\"#_ftn5\" name=\"_ftnref5\">[5]<\/a><\/p>\n<p><iframe loading=\"lazy\" title=\"Bottling Soap at the Method Production Plant in Pullman, Chicago\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/yILDSGrhTXQ?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>Method has also partnered with transportation companies so that about 35% of its trucking fleet runs on biodiesel, further reducing the net environmental impact of its products.<a href=\"#_ftn6\" name=\"_ftnref6\">[6]<\/a> Method distributes its product in the mass market, with partnerships with Target, Safeway, Staples, and Lowe\u2019s. \u00a0The environmental focus of Method&#8217;s supply chain is unquestionable, but also done in a way to drive at lowest cost via lower employee turnover, material efficiency, and energy efficiency.<\/p>\n<p><strong>Commitment to Valuing Human Capital<\/strong><\/p>\n<p>Method also focuses on\u00a0sustainability of its workforce. Employees are paid more than 40% above living wage, and the company values local hiring to boost local economies, as demonstrated by their most recent factory setup in the Chicago area. Employees are also encouraged to think about their relationship with the local community, with workers given up to 20 hours a year of paid time to do community service. These initiatives enable workers to stay engaged with their work and relate to the underlying mission.<a href=\"#_ftn7\" name=\"_ftnref7\">[7]<\/a><\/p>\n<p><strong>Corporate Organization<\/strong><\/p>\n<p>In selecting a buyer in 2013, they were savvy to go with Ecover, a large Belgium-based environmentally-friendly cleaning products company, which has given them needed capital and greater economies of scale to drive cost down while remaining committed to their mission.\u00a0<a href=\"#_ftn8\" name=\"_ftnref8\">[8]<\/a><\/p>\n<p><strong>The Road Ahead for Continued Growth<\/strong><\/p>\n<p><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/method2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-7004 alignleft\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/method2-300x148.jpg\" alt=\"method\" width=\"300\" height=\"148\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/method2-300x148.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/method2-600x295.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/method2.jpg 943w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>Method has been successful pursuing its current strategy, and the \u201cgreen\u201d cleaning market has grown significantly, from 3% of the cleaning product market in 2005 to approximately 30% today. Under the well-capitalized Ecover umbrella, Method is in a good position to expand to international markets, such as Europe and Asia, though the road may not necessarily be smooth, given the rise of new competitors from traditional players like Clorox and newer entrants like Mrs. Meyers, which was acquired by SC Johnson.<a href=\"#_ftn9\" name=\"_ftnref9\">[9]<\/a>\u00a0Increased competition will make it more important for Method to continue to communicate their advantage to the marketplace, both environmentally and aesthetically.<\/p>\n<p><strong>Sources<\/strong><\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> http:\/\/fortune.com\/2013\/10\/10\/mopping-up-with-method\/; http:\/\/www.nytimes.com\/2013\/01\/17\/business\/smallbusiness\/a-founder-of-the-soap-maker-method-discusses-its-sale.html<br \/>\n<a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> http:\/\/primary.slate.com\/articles\/technology\/top_right\/2011\/07\/eric_ryan_cofounder_of_method.html<br \/>\n<a href=\"#_ftnref3\" name=\"_ftn3\">[3]<\/a> http:\/\/methodhome.com\/beyond-the-bottle\/ingredients\/<br \/>\n<a href=\"#_ftnref4\" name=\"_ftn4\">[4]<\/a> http:\/\/methodhome.com\/beyond-the-bottle\/packaging\/<br \/>\n<a href=\"#_ftnref5\" name=\"_ftn5\">[5]<\/a> http:\/\/chicagotonight.wttw.com\/2015\/06\/16\/method-factory<br \/>\n<a href=\"#_ftnref6\" name=\"_ftn6\">[6]<\/a> http:\/\/inhabitat.com\/is-it-green-method-home-products\/; http:\/\/www.bcorporation.net\/community\/method-products-pbc<br \/>\n<a href=\"#_ftnref7\" name=\"_ftn7\">[7]<\/a> http:\/\/www.bcorporation.net\/community\/method-products-pbc<br \/>\n<a href=\"#_ftnref8\" name=\"_ftn8\">[8]<\/a> http:\/\/www.nytimes.com\/2013\/01\/17\/business\/smallbusiness\/a-founder-of-the-soap-maker-method-discusses-its-sale.html?_r=0<br \/>\n<a href=\"#_ftnref9\" name=\"_ftn9\">[9]<\/a> http:\/\/www.wsj.com\/articles\/SB10001424052748704364004576132081767603482<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A pioneer in the rapidly-growing market for environmentally friendly cleaning products.<\/p>\n","protected":false},"author":677,"featured_media":7008,"comment_status":"open","ping_status":"closed","template":"","categories":[],"class_list":["post-6955","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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