Hog case study Essay Example for Free

Hog consequence study EssayProduct Life rhythm method Late Growth / Early Maturity I. Uncertainties that may affect application structure II. The plausible assumptions astir(p wildicate) each important causal factor The uncertainties that exist for the Motorcycle intentness argon fluctuations in the quest categories g everywherenment regulations, price of supplies, Fuel Cost, Global Demand for wheels, Product sassyty, guest loyalty note value (CLV), target ara grocery store, and grocery store sh ar. The casual factors that drive these uncertainties be an important factor when forecasting the proximo of the Motorcycle Industry.The al closely probably scenario for government regulations give push the application towards going Green and becoming more environment solelyy fri oddmently by requiring lower emissions. They leave alone require the industry to im give these emissions standards. Currently the aver historic period motorcycle averages 40 MPG (miles p er gallon) in the city and 50 MPG on high schoolway but they still emit smogginess into the environment. The industry impart most promising drug abuse the fire consumption statistics to their value by relating to the up-to-the-minute price of gaso farm animal and the fact that the average car gets 20 MPG and SUVs get even little at ab forth 16 MPG.Price exit be a major uncertainty for the industry. The industry relies on other companies to provide them with materials so that they could assemble the bike. The increasing greet of transporting these materials from the cook uprs to the motorcycle assembly plants atomic number 18 going to attach and on that pointfore need to increase in the operating cost for the industry and need to higher price for the finished fruit resulting in no value added.The price of the finished product is a very important factor for the industry because all the players in the industry be nerve-wracking to attract the jr. target market and a re competing on price. The Japanese constituters save a mind-set that they are testamenting to incur short-term loss so that they could gain market parcel. This strategy is crowing for the industry because every comp any testament try to reduce its prices and provide eventually non be able to make signifi whoremastert profit. This fact needs to be carefully monitored so that no oneness player tries to influence the overall industry.Economic conditions in the U. S. significantly affect the firms cognitive process from year to year. During an economic recession, Harley-Davidson result feel its effects since consumers tend to tighten up discretionary spend during rough times resulting in no value added to the lodge. This is what is shortly happening in the economy. Global collect fluctuation besides is an important factor to the overall winner of the industry. The global submit for the heavy angle motorcycles grows at an average core rate of 7% to 9% per year and has averaged 8.6% since 1991 for Harley Davidson. This trend leave behind most the likes ofly await because of the Baby-Boomers who previously purchased these bikes will continue to do so as they exit more active and adventurous lives wherefore previous generations. The baby boomers are more affluent then previous generations. The global demand will rise because of this fact. It will also rise because they are not only catering to the older consumers but also towards the younger generation and women. The industry is creating bikes that are cheaper and hot that appeal to the younger consumer.This trend will spread globally because of the Blue naval cleard by Harley Davidson because of the renting Programs, and the Riders bounce computer syllabuss that will be emulated by the other players in the industry. This will lead to the Red Ocean scenario again and companies will compete at the same level within the industry. We also believe that players in the industry will make strat egic alliances with other industries to cross sell their products such as Harley currently produces clothing and accessories to increase and diversify its revenue seminal fluids.The industry will continue to compete on all aspects such as price, touch, and functionality. This intense competition will lead to a Red Ocean until a revolutionary innovator can emerge. The industry will most credibly continue to clothe in Research Development to improve the quality of their products, to try to innovate, to get a better product out to the market and even innovate the way they assemble and market their product to the consumer. Also, personalization and customization of motorcycles will increase as television programs such as American Choppers, and West Coast Choppers are glorifying them.All these factors will lead to an expansion of the Target market and more intense competition. Customer Loyalty Value will most likely rise for the industry because many of the somebody manufacturers devour a wide variety of products that they can offer to their clients. The industry will most likely target previous customers more to get them to purchase a secondary bike. This trend will continue since the largest buyer radical numbers are tranquillise for the next several geezerhood, currently there are 41 jillion US men in the age group of 35 to 54 and that number increases to a little over 41 million in 2020.Also currently there are 80 million baby boomers of those the oldest ones are go in their late 50s and the youngest boomers are just entering earlier part of their 40s. These groups will be heavily targeted by the industry to either purchase their first motorcycle or second motorcycle. III. Plausible assumptions about each important casual factor The most important casual factors are the level of quality of the motorcycles, product novelty and merchandising. These leash factors are predetermined meaning that change is likely to happennd is largely predictable and they are constant meaning that these areas in the industry are unlikely to change.However, product blueprint is uncertain meaning that product innovation depends on other irresolvable uncertainties in the industry. To begin with the first important casual factor the level of quality, we know that if the level of quality for motorcycles increase, it is likely to lead to an increase in other areas as well such as price, sales, market share and customer retention. (Cash flow, interrelationship, linkages and value added). The next important casual factor is product innovation.Similar to quality, if product innovation increases it is likely to lead to increases in other areas such as price, sales, market share, customer retention and gaining refreshing customers. Lastly, marketing is another important casual factor. We know that if marketing is increase and if it becomes more innovative in ways there will be increases in other areas such as sales, market share, customer retention, sta rk naked customers, advertising and promotion, branding and in relationship marketing resulting in value added. IV. Assumptions about individual factors into internally consistent scenarios.Scenario 1 If quality increases it is likely that performances in other areas are likely to increase as well. Improving quality is always beneficial and important to execute any strategic era successfully. The value curve, which is the basic component of the strategy canvas, depicts relative performance across the industrys factors of competition. Creating a overbold value curve involves lineing which factors of the industry should be eliminated, cut back, raised well above and created or offered in regards to the industry. So lets use Harley-Davidson as an example.Eliminate-Reduce- send away-Create Grid Harley-Davidson Eliminate Company staff positions Raise Tariff aegis against global challengers Reduce Inventory levels Create JIT entry practice Employee battle Materials-As-Needed progr am When it came to improve the quality of the business Harley-Davidson eliminated the positions of senior vice president in marketing and operations because there was no value added. The style of leadership at the troupe was very effective because they were able to identify weak links in their operations and cut out the extra manpower that was muda.The follow reduced register levels with the hope that it would make quality problems more apparent and force employees to take action. The tariff protection the company sought to gain time and protect itself from the Japanese inroads in the heavyweight segment was a leading factor that raised them above the industry standards. The companys OWC that was created was the use of JIT inventory practices, employee involvement and the SOC (statistical operator control). Workers were required to participate in the spick-and-spanly formed circles that were made directly responsible for improving motorcycle quality.A Materials-As-Needed (MAN) p rogram was implemented to free up, as much needed cash by reducing WIP inventory, which guide to economies of scale and LC. These changes also led to increased quality. productivity improvement went up by over 50%, WIP inventory was reduced by 75%, scrap and rework went fling off by 68%, U. S. revenues increased by over 80%, planetary revenues by 1. 7 times, operating earnings increased by $59 million and market share in the heavyweight segment increased by 97%. Harley-Davidsons net revenue increased from $1,350,466 in 1995 to $5,015,190 in 2004 in millions.Scenario 2 If product innovation increases it is likely that performances in other areas will increase as well. Product innovation is the new business imperative. It drives growth and coming(prenominal) success for companies. Most companies are detain competing in red maritimes because they define their industry similarly, focus on the same buyer group, define the scope of the products and serve offered by their industry similarly and they focus on the same point in time and practically on current matched threats in formulating strategies.However, Harley-Davidson has not followed these same guidelines, so they are not currently trapped in the red oceans. Harley-Davidson was selected as an outstanding corporate innovator by PDMA in 2003 (Product Development oversight Association) because of its established brand, its strong connection with customers, and because of its continue commitment to product innovation. The company focuses on optimizing the customer cause, and as a company has grown from 40,000 units/year in 1998 to 264,000 units/year in 2002.Their use of multiple and novel venues to gather customer needs and preferences information to guide their new product efforts, while employing a perfunctory Concurrent Product Process Delivery Methodology (CPPDM), has kept their new product engine speed at peak efficiency. Several unique elements and concepts in their process such as swirl, bi ns, and cadence, ensure the peak of innovation, speed to market, match of development resources, and financial vi magnate of individual projects as well as the entire new product portfolio.Scenario 3 If marketing increases performances in other areas is likely to increase as well. Marketing for any company in any industry is extremely important. How well a product/company is marketed leads to the success of that product/company. Blue oceans are defined by untapped market space, demand creation and the opportunity for highly profitable growth. In enjoin to execute a blue ocean strategy market boundaries must be reconstructed and must chance on beyond existing demand. This is in fact what Harley-Davidson did to create a blue ocean for itself and increase the brand name and company revenues simultaneously.The companys three strategic constants passion, sense of purpose and operational excellence are the cornerstone of their blue ocean strategy. there is no competition, as seen by being the only U. S. manufacturer for 46 years, and petition to end overprotective tariffs. All bikes are customizable, and some say that they are made to be tinkered with (not as hands-off as can be, therefore redefining premium brand). The company has a considerable fan club and a phenomenally tidy brand and its quintessential strong emotional connection keeps them in the leadership position.Undoubtedly, Harley-Davidsons greatest marketing asset is the Harley Owners Group, with one million members world wide fashioning it the largest motorcycle-sponsored club in the world. Harley-Davidson is continue to improve value innovation by still focusing on beating the competition, making it irrelevant by creating a leap in value for buyers and their company by opening up a new and uncontested market space. They have done this with the implementation of their Riders acuteness and Rental Programs. The rental program was implemented to hook customers and entice them to buy a Harley.Thi s program is offered by 250 dealers and is available in 52 countries. Survey shows that 32% bought a bike or hardened an consecrate and another 37% planed to buy within one year. The Riders gross profit Program offers move lessons that last for four days and cost students $350. Approximately 70% of students in the program purchase a motorcycle within 18 months and about 40% of the students are women and 30% are under the age of 35. This buyer cultivation relationship created by Harley-Davidson has increased sales, new customers and targets the untapped market of women highly.This value innovation has led to LC for people who have learned to ride the motorcycles through the program and also to the instructors teaching the students. It has led to increased sales and revenues from the 70% of students that buy within 18 of completing the lessons. This continues to be a huge win for Harley-Davidson. V. Analyzing the industry structure that would prevail under each scenario McKinsey Model INDUSTRY ATTRACTIVENESS enemy visibility WeightRateTotal Market Growth Rate. 102. 20 Marketing Size. 103. 30 Competitive Structure. 203. 60 Seasonal/Cyclical. 103. 30 Industry Profit. 102. 30 Tech Demand. 204. 80 Eco of Scale. 102.20 Unique Social. 102. 20 TOTAL12. 90 Competitor Profile WeightRateTotal Market Share. 204. 80 Tech Strength. 203. 60 Marketing Skill. 203. 60 Company Profit. 102. 20 Management Skill. 102. 20 Ability to compete on price quality. 203. 60 TOTAL13. 00 9 Cell Matrix for Motorcycle Industry 2004 Competitor Profile bullocky Average Weak HiIIE MedIE HOGD LowEDD HiMedLow I= Invest E= Evaluate D= Disinvest The next step in scenario planning is to analyze the implications of each scenario for competition. We will determine the future industry structure, implications for industry structural attractiveness and the sources of competitive advantage.The future growth is largely dependent upon its ability to develop and successfully introduce new, innovative an d compliant products. In addition, it must comply with governmental laws and regulations that are subject to change and involve significant costs. Worldwide demand for motorcycles is forecasted to advance to 5. 2% annually to more than 35% million units in 2007, valued at $46 billion. Driven by increased income levels in emerging markets such as India, China, and Southeast Asia, demand for scooters, mopeds and flatboat motorcycles will remain relatively strong, providing continued growth opportunities for motorcycle OEMs and suppliers.The market for large motorcycles will also remain strong, although some concerns regarding future demand have emerged collectible to the aging customer base and rising insurance costs, especially in the US and Europe. plot of land growth prospects remain solid, especially when compared to the 2% annual growth experienced by the light vehicle industry, the industry will likely go through a restructuring phase in the future. many another(prenominal) of the small competitors will begin to exit the market. The intense focus on price in the Asia/peaceable region has ca apply Japanese OEMs to begin to abandon Japan as a production base in favor of lower cost hubs like China or Thailand.In China, for example, the largest motorcycle market and producer in unit terms, is rapidly transitioning away from motorcycle toward cars, and in the process overflowing the world market with motorcycle exports. In contrast, rising fuel prices and increasing restrictions on car uses are favoring motorcycles in develop markets. Two separate motorcycle markets exist. The first is centered in the industrialized Triad (US, Japan, Europe), where consumers who already have one or more vehicles see motorcycles as pleasure vehicles. These motorcycles tend to be larger, more powerful machines, which cost on average about $5,000 to $6,500.The other much larger market in unit terms is found in the emerging economies of the Asia/Pacific, where motorcycles are seen as primary family and work vehicles. These vehicles are cheaper, littler and less powerful than Triad motorcycles. Motorcycles everywhere is being fractured pull down from, stricter emissions controls to noise limits, from land closures to exclusions from HOV lanes. The motorcycle industry has spent the last 10 years of convincing the public that motorcycles are a form of sport and not a form of expatriation.The world has been changing with new issues and now advertising is geared toward qualities like dependability, practicality, technology, safety and environmental friendliness. Women control 85% of all the discretionary dollars spent in the US. Ten years ago women represented about 3% of the motorcycle owners. In 2004, they ramped up to 12% in motorcycles. Utilizing learning curve, dealers are beginning to understand their sales people can no longer talk down to a woman. Some have started to hire women as salespeople. Once only men staffed dealerships, women are video di splay up as techs, service writers, parts counter, and unit salespeople.The behavior has changed. The Motorcycle Safety Foundation conducts training for new motorcyclists. In 2003, they reported that 40% of those signing up for new classes are women. In the case of Harley-Davidson, the Harley rider is now 45 (10 years ago it was 37) and 20% of Harley riders are over 55. Despite the companys success in the past 18 years, it has difficult time attracting younger consumers, who tend, to go for sporty, fast, technologically-savvy hotfoot bikes produced by its competitors. Harley has been investing in its product to attract a younger buyer.It continues to revamp its affordable Sportster line and its higher-tech V-Rod family with liquid-cooled revolution engines continues to appeal to more youthful market. In addition, its sports bike subsidiary, Buell, is to lure in the propagation Y market. Growth in year-to-year sales was slow, but with the economic downturn in the market, sales in this market segment may increase due to the lower price point. These marketing challenges will force the company to examine their manufacturing, marketing, pricing and every other part of the business.For consumers, this will means better pricing, more value and greater service to attract their more discerning and selective purchase. The industries never stand still. Operations improve, markets unfold and players enter and exit. VI. Determining the sources of competitive advantage under the most likely scenario The driving force buns Harley-Davidsons competitive advantage is its quality, marketing and product innovation so we will determine the sources of competitive advantage in these forms. Quality Harley Davidsons source of competitive advantage in regards to quality will most likely be its continued use of the productivity triad.Harleys productivity triad involves employee involvement, use of JIT inventory practices (which Harley renamed MAN Materials As Needed) and statistic al operation control. Quality drives productivity and increased productivity is a source of greater revenue. This can be seen as under Harleys new placement inventory turn increased to 17 and productivity improvement went up by over 50%. This new system allowed Harley to free up cash by reducing its work in process inventory by 75%.This system proves that improved quality does not always mean increased cost because its costs decreased while its U.S. revenues increased by over 80%, international revenues by 1. 7 times, and operating profits increased by $59 million. Their market share under this new system had also increased by 97%. Quality is defined entirely by the customer and end user and based upon that person(s) evaluation of his or her entire customer experience. Through the use of the productivity triad, customer retention will increase as Harley Davidson continues to improve its entire customer experience from how their bikes are interchange (utilizing women sales people t o make women customers more comfortable), to how the bikes perform.The increased customer retention and productivity triad will result in a preeminence advantage over its competitors thus creating superb value to its customers and superior profits for itself. Harley was able to create a blue ocean by driving costs down while simultaneously driving value up for its consumers. Marketing Harley Davidsons source of competitive advantage in regards to marketing will most likely be the continued use of its programs such as the Ladies of Harley, the Riders Edge and Rental Program. The Ladies of Harley group cultivates and will most likely continue to cultivate the interest of women riders.This group was sponsored by HOG to support women motorcycle enthusiasts, and to encourage women to become more active within the group. The Riders Edge program offers motorcycle-riding lessons that last for four days and cost students $350. Surveys show that 70% of Riders Edge participants purchase a mo torcycle within 18 months. This program helps to target the women market (who makes up 40% of participants) and younger riders (30% of participants who were under 35). The future strategy of Harley is to gain market share in the younger rider segment, so it is likely to continue this program.Harley will most likely continue the use of its rental program, which is used to hook customers and entice them to buy a motorcycle. It is said that 32% of participants bought a bike or placed an arrange and another 37% planned to buy one within a year after renting a Harley. The company will most likely increase the number of dealerships the program is offered in, as it has demonstrated great success. This is a value added to the consumer who gets to experience the feel of a Harley before making an positive purchase, and a value added to the company because it almost guarantees future earnings.These programs will result in a specialty advantage over its competitors. Product Innovation In reg ards to production innovation, Harley-Davidson will most likely continue with new product development and upgraded manufacturing technology. With many concerns with environmental health issues, Harley will most likely manufacture a Hybrid or economically friendly motorcycle to entice sales of future consumers who are concerned with environmental conservation and to appeal to current eco friendly consumers. Harley-Davidsons resources and capabilities together form its characteristic competencies.These competencies enable innovation, efficiency, quality and customer retention, all of which could be leveraged to create a cost or differentiation advantage for the firm and thus creating value for its customers and profits for itself. Harley-Davidson has created a strong differentiation strategy climb itself apart from the crowd and making its brand identity legendary. On the next page, you will find a competitive analysis of Harley-Davidson to one of its existing competitors, Honda. Co mpetitive Analysis HARLEY DAVIDSON HONDA Future Goals?Produce and sale high quality motorcycles. ?Maintain market share. ?Replace some of aging boomer customers by tapping into the youth market. ? regale shifting demographics. ?To make cycles more popular. ?Strengthen themselves as a manufacturing company. ?Strengthen focus on initiatives, quality and technology. Current Strategy? Maintain current growth in traditional segments while taking measures to reach younger customers. ?Keep up with trends and customer needs. ?Increase product line of accessory and apparel. ?Provide motorcycles accessories and services to selected niches?Maintain global viewpoint. ?Supplying products with high quality at a reasonable price. ?To create new technology that offers new possibilities in mobility. Assumptions ?Harley would not be able to maintain ?Market for Harley-Davidson products may be maturing. ?Baby-boomers were aging and may not want to ride motorcycles anymore. ?Boomers will ride into thei r late 60 and 70s. ?Manufacturers are more skilled at mass-producing motorcycles efficiently. ?Will continue to be more technically move in the industry. CapabilitiesStrengths ?Renewed RD expenditure.?Strong brand identity and loyalty. ?Boomers are living more of an active lifestyle. ?Productivity triad. Weakness ?Some bikes are too expensive for younger consumers. ?Close association with baby boomers. Strengths ?Strong technical advances. ?Have a stronger brand with the younger generation. ?Caters to younger buyers with littler budgets. Weakness ?Does not have an association with baby boomers who are expected to ride longer. Market Share Harley Davidson maintains a large margin in its dominance in the U. S. whale Motorcycle market as compared to its major competitors.2003 2007 US Heavyweight Market ShareUS Market Share 2007 2006 2005 2004 2003 Harley-Davidson 49. 4% 50% 49. 6% 50. 2% 50. 3% Honda 14. 2 15. 1 16. 6 18. 7 18. 4 Suzuki 12. 5 12. 9 12. 4 10. 2 9. 8 Yamaha 9. 2 8. 6 8. 9 8. 7 8. 5 Kawasaki 7. 2 6. 8 6. 5 6. 4 6. 7 However, Harleys international market share is slightly smaller. For instance, the company has a 38. 4% Canadian market share and a 10. 2% market share in Europe as of 2006. Notably, both of those markets are substantially smaller than the US market. Nonetheless, Harley has a dominant worldwide market share of 33% in what is a growing industry.operating(a) Metrics Several operating metrics are useful in understanding the companys position vis-a-vis its largest competitor. Hondas figures are for its motorcycle business only. Please see map on next page. 2006 Operating MetricsOperating Metrics Harley-Davidson Honda Units Sold 361 103 Units Sold per Employee 35. 4 3. 6 Revenue per Employee (USD) 637,881 356,746 Operating Margin(%) 27. 5 9. 2 CapEx as % of Sales 3. 8% 4. 2% While the companys competitors, notably Honda Motor Company (HMC) and Suzuki, do not have as dominant a market position, they often have greater financial resources. This is largely because companies like Honda have more diverse product lines (like cars), and are greater in size than Harley-Davidson, a far more specialized company. For example, motorcycle sales at the companys largest competitor, Honda, hover around 12% of total revenue. Revenue by Region While around 80% of the Harley Davidsons sales still occur in the United States, its international segments are growing quickly, and the company is pursuing opportunities for gaining market share abroad resulting in value added.This can prove important to the company, as market share has begun to stabilize in the US due to saturation of this market. 12 Month Harley-Davidson Stock Analysis The chart above shows that it has definitely been a tough 12 months for Harley-Davidson stockpile and it is undoubtedly being affected by the economy. VII. Predicting competitor behavior under each scenario Introduction of competitor behavior In 2007, Sales in the motorcycle industry failed to increase after 14 successive years of gains and were lower than in 2006. For Harley-Davidson, revenues declined 1. 3% and earnings declined 4.3% 2007. In preparation for the affects of a slowness American economy, the firms largest market, Harley cut production and shipment of its motorcycles in the 3rd and 4th quarters of 2007. However, on the up side, the motorcycle industry sales in 2007 were over the 1 million mark for the 5th cracking year. Battery and tire sales indicate that ridership and enthusiasm for the sport remain high. Quality The competition will continue to manufacturer new models and invest in quality improvement however, they will focus on supplying products with high quality at a reasonable price.In addition, they will strive to push improve JIT inventory practices and statistical operation control. Quality drives productivity and increased productivity is a source of greater revenue. Marketing The competition will market their brand with the younger generation. It will cater to younger buyers with smaller budgets. The aim to attract the younger target market and compete on price. Furthermore, create bikes that are cheaper and faster that appeal to this market. In addition, the current success that Harley has had with the rentals, and the riders edge program will most likely be emulated by the players in the industry.Product Innovation The competition will continue to invest in product innovation that will appeal to the younger generation in design and price points. They will continue to create new technology that will offer new possibilities in mobility. Conclusion Harley-Davidson has developed a blue ocean strategy by fulfilling dreams through the experience of motorcycling. All bikes are customizable and have developed a huge fan club and a phenomenally powerful brand with emotional connection and loyalty. This loyalty will be crucial to the companys success going forward, and Harley will depend upon duplicating this successinternationally to fuel gr owth.Despite the fact that due to economic issues, in the motorcycle industry sales have been down and cost up, we expect that Harley-Davidson will continue to invest in quality improvement, marketing strategy and product innovation in order to remain competitive in the industry and achieve economies of scale. Harley-Davidson will continue to manufacturer new models and invest in quality improvement however they will do it with increasing cost pressures. The dollar has befuddled 26% of its value against the euro and 11% of its value against the yen since March 2003.Escalating cost for the metals, plastics and other commodities used to manufacture motorcycles and the fuel needed to transport foreign models to the U. S. market, has resulted in price pressures for the European and Japanese manufacturers in particular. Harley will need to look to further cut manufacturing costs, (lean manufacturing) rather than raise retail prices for consumers who, in the U. S. , are continuing to tig hten their belts. Harley-Davidson will continue to invest in marketing. Through marketing efforts the company will look to increase its current loyalty program but also duplicate this success internationally to fuel growth.The companys customers tend to be fiercely loyal to the brand, which has helped to drive consistent growth over the past 20 years while making the company the premier name in its industry. In addition, since the companys core consumer group is aging, it will target women and the younger generation of motorcycle enthusiasts. In order to appeal to this group, the company will continue to use the HOG and riders edge program. Furthermore, the company will continue to revamp its affordable Sportster line and its higher-tech V-Rod family with liquid-cooled revolution engines and its subsidiary, Buell, in order to lure in the Generation Y market.However, it should be noted that in marketing to this new segment, it will lead to the red ocean scenario again and companies w ill compete at the same level within the industry. The company will also have an opportunity to increase marketing in the international markets. While around 80% of the Harley Davidsons sales still occur in the United States, its international segments are growing quickly, and the company will have an opportunity to market to these segments in order to gain market share abroad resulting in value added.This can prove important to the company, as market share has begun to stabilize in the US due to saturation of this market. Harley-Davidson will also continue to invest in product innovation. In order to increase its customer base, the company will focus more on fuel efficiency transportation oriented models in the coming years. With many concerns with environmental health issues, the company will most likely manufacture a Hybrid or an economically friendly motorcycle to entice sales of future consumers who are concerned with environmental conservation and to appeal to current eco frie ndly consumers.