1、ENERGY STAR Program Requirements: Product Labeling,July 22, 2003 Ann Bailey, Director ENERGY STAR Product Labeling,2,Why Label Your Products?,More than 50% of the general population considers energy efficiency to be a very important product attribute when purchasing electronics (The Natural Marketin
2、g Institute, 2003) ENERGY STAR awareness is 40% nationally and exceeds 50% in many major markets 50-60% say the presence of the ENERGY STAR influenced their purchase decision 71% are likely to recommend ENERGY STAR to a friend,3,Why Label Your Products?,ENERGY STAR offers the attributes of a strong
3、ingredient brand immediate point of differentiation added value (saves energy, money and the environment) reduced effort and perceived risk for consumersPlus objective third-party credibility products that earn the ENERGY STAR meet strict energy efficiency guidelines set by the Environmental Protect
4、ion Agency,4,Why Label Your Products?,Print articles mentioning ENERGY STAR have reached a combined circulation of more than 700 million people over the past yearAs of May, 850 companies run ads each month for ENERGY STAR productsENERGY STAR product ads have risen 25% over the past year - exceeding
5、10,000 per month,5,Partnership Agreement,Goal: standardized format capturing fundamental program requirements comply with product eligibility criteria comply with logo use guidelines qualify a product within a set time provide shipment data keep product lists up-to-date label products, product liter
6、ature and web siteTransition began in 2000 and takes place as product specs are revised - only OE remains,6,As of April 1, 2003,7,Labeling of Qualified Product,Interior fixtures 96% (78%) Portable fixtures 100% (100%) CFLs 81% (67%) Programmable Thermostats 75% Clothes Washers 86% Refrigerators 94%
7、Dishwashers 75% DVDs 47% (TVs 25%) Ceiling fans 35%,Source: EPA Retail Store Level AssessmentsSeptember 2001 June 2002,8,Provide clear and consistent labeling of ENERGY STAR qualified computer monitors. The ENERGY STAR label must be clearly displayed on the top/front of the product, on the product p
8、ackaging, in product literature (i.e. user manuals, spec sheets, etc.), and on the manufacturers Internet site where information about ENERGY STAR qualified models is displayed.,Labeling Language,9,Purpose of Labeling Requirement,Make it simple for buyers (consumers and businesses) to easily identif
9、y energy-efficient models Clearly differentiate between models Allow retailers and manufacturers to leverage significant outreach Ensure partners are recognized for their high efficiency products Increase awareness of ENERGY STAR among purchasers,10,Chronology of Labeling Discussion,Early 2001 - Ini
10、tiated discussion with ITI concerning the new PA March, 2002 - Letter to monitor manufacturers explained rationale for PA requirements indicated our willingness to consider labeling options included laundry list of proposals we had heard so far April, 2002 - Monitor industry meeting further discussi
11、on of labeling requirement and sharing of concerns/suggestions,11,Chronology of Labeling Discussion,May, 2002 - Letter to monitor manufacturers announced decision not to accept labels on back panel stated intention to issue approved set of labeling options as official interpretations of PA final cal
12、l for suggestionsJune, 2002 - Additional industry input received ITI, IBM, Viewsonic, Dell, Apple,12,Chronology of Labeling Discussion,December, 2002 - Partner meeting reviewed the new PA requirements status report on PA phase-inJuly 22, 2003 - Todays meeting presentation of proposal allowing four o
13、ptions for labeling of monitors,13,Partner Concerns,Desire not to include brands other than their own on the product Preference for a transparent, seamless design Costs to produce and apply the label Contamination of recycling process Consumers dont look/ask for the label Label does not add value fo
14、r buyer Label does not increase sales for partner,14,Options Considered,Temporary label Electronic label Folder similar to control panel folder On screen display Label on monitor base or stand Removable label for power cord, similar to safety labels on consumer products Label incorporated into boot
15、up process (initial boot up or all boot ups),15,Options Considered (cont.),Consumer outreach/advertising in lieu of labeling Label on promotional piece in the shipping box Label on plastic protective covering for monitor Label on accessories, e.g., mouse pad Label on point-of-purchase promotional it
16、em, e.g., shelf-talker, and work with retail staff,16,Where We Ended Up,Four optionsBalance partner concerns with labeling objectivesDemonstrate flexibility while providing options that have roughly equal merit,17,Monitor Labeling Options,- Permanent label on top/front - Temporary label on top/front
17、 - Electronic label - Label used in advertising,18,Permanent Labeling,19,Temporary Labeling,20,Temporary Labeling,21,Electronic Labeling,Certification mark appears on monitor screen through software driven by the computer such as: Desktop folder similar to control panel folder On screen display Boot
18、 up screen Navigation screen Allows flexibility in implementation, depending on operating system, but requires failsafe to ensure only qualified monitors are labeled Will be handled case-by-case,22,Electronic Label,Maximum 2 clicks to get to ENERGY STAR Icon should be on a screen with few othersENER
19、GY STAR folder to contain information in .pdf files What is ENERGY STAR Energy and environmental benefits of ENERGY STAR qualified product Information on ENERGY STAR products (OE and others) Power management,23,Electronic Label - Example,ENERGY STAR,From Desktop,24,Electronic Label - Example,25,Elec
20、tronic Label - Example,ENERGY STAR,Two clicks down: ENERGY STAR icon,26,Labeling via Advertising,Incorporate the logo into advertising such that the number of impressions that result are roughly equivalent to the impressions that would have resulted from consumer exposure to the label on their quali
21、fied productProvide partners flexibility while guaranteeing approximate equivalency of impact as measured by the number of impressions achieved impressions = reach (# of people) X frequency (# of times),27,Labeling via Advertising,A = 52(S)Where: A = # of impressions that would need to be achieved f
22、rom the advertising andS = # of ENERGY STAR qualified units shipped by the partner in the previous calendar year,28,Labeling via Advertising,Assumptions - very conservative, derived in consultation with PR/Ad experts Temporary labels 75% of temporary labels removed immediately 25% remain on for the
23、life of the monitor A monitor is used an average of 208 days/yr 60% are in offices, used 5 days/week 40% are in homes, used 3 days/week combined total average is a little over 4 days/week One impression per day,29,Labeling via Advertising,To determine shipments, partner may use actual shipments of q
24、ualified monitors in the previous year OR an estimate of shipments calculated by multiplying its total monitor shipments by a national ENERGY STAR market share percentage provided by EPA,30,Labeling via Advertising,At a minimum, ads must properly display the “Ask About ENERGY STAR” or “We Sell ENERG
25、Y STAR” logo with a statement conveying the meaning/value of ENERGY STAR Partners also are encouraged to prominently display the certification or promotional logo in ads that feature qualified products and offer more explanation of ENERGY STAR along with a call to action,31,Labeling via Advertising,
26、Appropriate ad media: TV, radio, print, Internet Ads must be targeted to consumers outside partners company The following may not be used to fulfill this requirement: Employee education Use of logo on company web site,32,Labeling via Advertising,Reporting on ad activities shipment numbers used to de
27、termine # of impressions needed copies of ads in which the logo was included to fulfill this requirement dates/period ads were placed total # of impressions achieved,33,Real World Example,Company D sold 4.3 million monitors in 2000, Assume 50% were ENERGY STAR qualified At 52 impressions/qualified m
28、onitor, Co. D needs to achieve 112 million impressions Translated into dollars: At an average of $14/thousand impressions, Co. D would need to spend $1.5 million on advertising that includes ENERGY STAR Co. Ds ad budget was $431 million in 2001 Co. D would be spending less than 1% of its ad budget o
29、n ads that include ENERGY STAR,34,Timing,Partners are free to pursue any of the 4 labeling options beginning at any time Official labeling requirement will be deferred until OE partners transition to the new logo Transition to the new logo will be coordinated with changes to the EU agreement and is expected to occur in 2005,
