Thursday, March 15, 2007

SAS-ssy Idea

It's not every day that one gets the chance to acknowledge a good idea out of the Airline Industry, but today's that day.

Swedish Airline SAS has introduced a new option for its customers, a way to offset their personal carbon emissions while flying. I'm not going to go into the pros and cons of carbon offsetting, its just too...offsetting, nor global warming. What I like about SAS' strategy is that it gives the consumer an option, and an easy one at that, while minimizing business risk.

One of the frustrating things about trying to do anything environmental in the market place is that when polled people say they will spend extra to save mother earth but when it comes time to pay, they revert back to whatever's cheapest (organic food defies this trend as it continues to be the only agricultural area with growth). So when businesses take on the added expense to get the "environmental" tag or service they loses customers and/or don't grow as planned. SAS' strategy counters the poll/reality dilemma. Had they imposed the fee on all customers in a bid to be the "environmental airline," history says they would have gotten destroyed in the market. However, SAS did the smart thing and offered "environmental flights" as an easy upgrade. They can continue to compete on price for those who want it, and they offer a more expensive carbon offset for those who want it. Bottom line, SAS doesn't take any risk while giving customers who want the environmental option easy access to the service and they get the "green" mantle. All upside, no downside.

A really solid way to handle a new product, especially a tricky green one.

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