Tag Archives: IKEA

GoGreen Conference '11

GoGreen Conference ’11 Emphasizes Sustainability Education, Patience

Whether it’s educating attendees of green and sustainability in the workplace or the speakers’ efforts to educate public and private entities of sustainability in their community, “education” was the buzzword and couldn’t have been stressed enough at the GoGreen Conference ’11 this past Tuesday, November 15. Well, that and a lot of patience.

“It’s not just about being and going green,” said Ed Fox, chief sustainability officer for APS.” It’s about educating and sustaining it.”

Dr. George Brooks, owner of Southwest Green and NxT Horizon Group, agreed: “There’s more to sustainability than solar panels,” he said. “If you want to make sustainability and its process sustainable, you need to make it useful.”

More than 50 speakers from all over the state were in attendance for the first GoGreen Conference ’11 held at the Phoenix Convention Center. Furniture IKEA donated to the panel discussions will be donated to the Phoenix Children’s Hospital.

This all-day conference held back-to-back panel sessions with leaders of sustainable business, who educated attendees on the latest sustainable practices for their respective businesses.

City of Phoenix Major Phil Gordon announced that this was possibly his last opportunity to speak as an elected official about his and the city’s green efforts. He said that although mayor elect Greg Stanton was unable to attend the GoGreen Conference, Stanton is committed to “help build Phoenix as the greenest city.”

Gordon also shared Phoenix-area, sustainability-related statistics and accomplishments over the years, including:

  • Phoenix is home to the only solar light rail stop (near the U.S. Airways Center) in the nation, “maybe in the world.”
  • The city has raised more than $1M in incentives to businesses and homeowners for their sustainability efforts.
  • Through Solar Phoenix, the Valley has more than 425 solar-installed homes. These homeowners have saved 10 percent on utility bills, on average.
  • By 2025, 15 percent of the city will be powered by fossil fuels. And also by 2025, 25 percent of the city will be shaded throughout with canopies and palm trees.

Maria Baier, commissioner of the Arizona State Land Department, provided opening remarks, emphasizing the importance of supporting universities and higher education seeking research dollars for its sustainability efforts. She continues to speak about how to not only go green, but also stay green.

“In order to go green and stay green, we need to keep our product legitimate,” Baier said. “We need to continue to defend it and improve reliability and dependability.”

Rounding out the first session of the conference was Al Halvorsen, senior director of environmental sustainability of Frito-Lay North America.

Halvorsen spoke about Frito-Lay and PepsiCo’s environmental sustain/ability journey — how they were able to confront their challenges (reducing its environmental impact), become an “embracer” of sustainability instead of a “cautious adapter,” and view sustainability as a competitive advantage — incorporating it into PepsiCo’s business with the following strategies:

  • Move Early: Over time, your business will evolve.
  • Balance Short/Long Term: Achieve near-term wins with long-term vision. Your business needs a foundation to help push longer-term envelopes.
  • Focus Top Down and Bottom Up: Track and monitor usage every day.
  • Measure Everything: By 2020, Frito-Lay predicts it will cut its diesel fuel usage in half.
  • Value Intangible Benefits
  • Be Authentic and Transparent: Share your business’s wins, losses and challenges.

“Sustainability for us is a journey and by no means are we there,” Halvorsen said. Jonce Walker, sustainability manager for Maricopa County agreed: “We are nowhere near done,” he said. “We still have so much left to do.”

Check back for part II of the GoGreen Conference ’11 coverage on AZNow.Biz.

For more information about the GoGreen Conference, visit www.gogreenconference.net.

 

Arizona Majority

Surging Hispanic Population Growth Creates Opportunity, Challenges

Arizona’s Majority Minority

Surging Hispanic population growth creates opportunity, challenges

 

Arizona’s population is changing as fast as its landscape. At present, approximately 1.6 million Hispanics, or one in four Arizonans, call the Grand Canyon State home. Since 40 percent of the state’s population now consists of Hispanic and other minority residents, the U.S. Census Bureau estimates Arizona will soon be joining Texas, California, New Mexico and Hawaii as a “majority minority” state.

majority_minorityHispanics are the biggest and fastest growing minority group in Arizona, in its K-12 schools and in the United States, according to Datos 2005, an annual report released by the Hispanic Chamber of Commerce. The number of Hispanic Americans grew by 40 percent between 1990 and 2000 and 49 percent from 2000 to 2004. Between 2000 and 2020, Hispanic growth is estimated to outpace that of non-Hispanic Whites by nearly 2 to 1. “Local businesses need to focus on the Hispanic market,” says Dr. Loui Olivas, assistant vice president of academic affairs at Arizona State University. “Whether businesses do an effective job will be measured through the metrics of customers, billing and revenue by market segmentation. But unless, and until, businesses grasp the numbers and clearly identify what they mean, the Hispanic market will continue to be a lost opportunity for many of them.”

Harry Garewal, president and CEO of the Arizona Hispanic Chamber of Commerce, recommends local business owners utilize published data to learn about the Hispanic market. Datos 2005 is a 10-year culmination of demographic and census data that can help businesses understand the changing Hispanic market, and in turn, help them develop a sound marketing strategy for selling products and services to the Latino community. “Businesses will have a better chance of developing a good marketing strategy if they understand the market,” Garewal adds. “That includes understanding that all Hispanics are looking for the same things as everyone else—opportunity, good quality of life, education and what brings happiness in life.”

Avondale Mazda, an independently owned used car dealership that opened in November 2005, used the Datos report to develop its first marketing strategy. Since close to 50 percent of the local community and its customer base are Hispanic, the report was extremely helpful, says Xavier Brizar, Avondale Mazda’s Hispanic marketing and business manager. “Datos helped us gain a better understanding of the Latino market and the information was easy to understand,” he adds. “In the dealership world, no one in the past would consider using direct mail, but we learned from the report that Hispanics do read it, so using direct mail has been very successful for us. We also know the Latino market uses the Internet (13.6 million Hispanics online), so we have an Espanola link on our Web site to direct them to an Avondale Mazda site in Spanish.”

Avondale Mazda has banners, signage and information about buying cars in Spanish inside the dealership, which makes Hispanic customers feel welcome and comfortable. The dealership also is involved in the Hispanic Chamber of Commerce and is supportive of local community events. “This is a small dealership with only 40 employees, so if someone calls that speaks Spanish, they get to talk to me every time,” adds Brizar, who prior to Avondale Mazda spent 18 years as the marketing manager of Pioneer Ford, where 50 percent of customers were Hispanic. “We know our Hispanic customers want to speak with a person, so it’s important we take care of them in the manner they appreciate.”

Home furnishings retailer IKEA launched a Hispanic multimedia marketing campaign in the United States in late 2004. The ongoing campaign includes Spanish-language TV and radio commercials, print ads, a 300-page Spanish catalog, store signage, product information brochures in both English and Spanish and sponsorships. They also have Spanish-speaking employees in stores. “The Hispanic market is vital to our business,” says Maria Lovera, IKEA’s deputy marketing manager for general and Hispanic markets in the United States. “We’ve always seen it that way, but in the last couple of years, we have strengthened our efforts to address their unique needs and understand their culture. We have also allocated more money for our Hispanic marketing efforts and made a very significant increase in our advertising budget. We feel this is a fast-growing market that is going to be phenomenally successful for retailers who can understand the benefit and embrace the Hispanic community.”

Phoenix is a top 10 Hispanic television market. Hispanic consumers spend an average of 58 hours per week watching television. Arbitron ranked Phoenix as the ninth largest Hispanic radio market reaching 742,000 Hispanics more than 12 years old. Nearly half of Phoenix Hispanics read a Spanish-language newspaper compared to half as many reading an English-language daily.

The Hispanic marketing team at Qwest has used Datos every year since 2000, as one of its tools to compile demographic and census information on the local and regional Hispanic market. They also use it to compare differences year after year in population growth, household growth, buying trends and purchasing power and to develop the company’s marketing strategy. “Datos comes in handy for the Arizona market in particular because it has the lionshare of the Hispanic market in our region,” says Hector Placencia, marketing director for Qwest. “Arizona’s population changes year to year and the updated reports keep us on the curve of these changes. There are many tools out there, but for us, Datos speaks to our customer base. We also share it internally with senior management to raise awareness of change within the Qwest organization.”

AZ Business CoverBased on the growth of the Hispanic population in Arizona over the last year, Qwest, like IKEA, has allocated additional monies for marketing and advertising to the Hispanic community. The fattened budget also includes face-to-face events. “The Hispanic consumer likes to do business in person,” says Alex Juarez, marketing manager for Qwest. “So we partner with businesses in the community like Food City where we have Qwest kiosks set up to meet with them face to face. It works out great because we understand our market very well.”

www.azhcc.com

 

 

Arizona Business Magazine Aug/Sept 2006

AZ Business Magazine Aug-Sept 2006 | Previous: Baby Steps | Next: Policy Agenda

 

Mega Retailers

Mega Retailers Provide Optimum Outdoor Opportunities

Gone Fishing

Mega retailers provide optimum outdoor opportunities, but how do cities lure them here in the first place?

By Mica Thomas Mulloy

Glendale and Mesa may as well be bringing amusement parks into their respective towns. Upcoming additions to the cities are expected to draw millions of visitors each year—many traveling from hours away—and infuse hundreds of millions of dollars into municipal coffers. But it isn’t Disneyland and Six Flags opening their doors in the Valley; rather outdoor mega-retailers Cabela’s Inc. and Bass Pro Shop.

gone_fishingCabela’s plans its grand opening at the end of August in the Zanjero Business Park near Glendale’s Westgate City Center. Bass Pro Shop recently broke ground in Mesa’s super-sized Riverview retail center at the confluence of loops 101 and 202. Both sporting megaliths are highly coveted and, much as IKEA put Tempe on the retail destination map, are expected to edge West and East Valley commerce opportunities toward retail nirvana.

Born in the ‘War Room’
Cabela’s opens in the midst of Glendale Arena and Cardinals’ stadium to offer West Valley residents a super supply of hunting, fishing and outdoor gear. Cabela’s spokesman David Draper says when his company looks for a retail location, executives first examine their mail-order customer base. They literally pinpoint their customers on large maps in their retail “war room” and determine if there is a large enough demand. With countless recreation opportunities in Arizona and metropolitan Phoenix, Glendale was a good match. “Obviously there is a great opportunity there,” Draper says.

Cabela’s purchased a 28-acre site in September 2005 and anticipates hosting 3 to 5 million customers in its first year. The store will feature acres of sporting displays, a freshwater aquarium and a centerpiece mountain replica complete with running waterfalls and streams.

The retailer received some help along the way—Glendale foot the bill to add necessary infrastructure as a development incentive. “The way we look at it, we are bringing something to the area,” Draper says. “To put our store there, we are going to need some infrastructure.” Glendale Economic Development Director Karen Thoreson says the city agreed to build public improvements based on the calculated financial boom Cabela’s should bring: an estimated $34.6 million in tax revenues over 10 years. “It’s bringing in a lot of business around it, it’s bringing in a lot of people who have never been to this side of the Valley,” she says.

Thoreson believes the area will experience supplementary benefits upon the mega-retailer’s arrival such as more than 1 million annual tourists and the addition of 300 new hotel rooms worth $30 million. “People come to Cabela’s like they come to Disneyland,” she says.

How to Land a Retail Giant
Marty DeRito, DeRito Partners CEO and Riverview developer, wanted to kick off the 250-acre commerce center with a unique anchor tenant. With that in mind, he, project partner Kimco Developers and Mesa economic officials started pursuing IKEA and Bass Pro Shop. When IKEA signed on with Tempe, all focus moved to Bass.

DeRito notes Bass Pro Shop, which sells everything outdoors from boats to bait, was interested, but also looked elsewhere in the state and toward California for their next location. “I had as much competition from other states as I did locally,” he says.

A Mesa contingency traveled to the International Council of Shopping Centers convention several years ago to meet with Bass Pro Shop executives and tout what Mesa, and the entire region for that matter, had to offer the retailer.

DeRito said Riverview will ultimately house three to five auto dealerships, 1.5 million square feet of retail space, 400,000 to 500,000 square feet of office and commerce facilities and two hotels. The center is expected to employ 5,000 to 6,000 people, making it one of the largest employers in the region.

After two years of negotiations, Bass Pro Shop was hooked and signed a letter of intent. Larry Whiteley, Bass Pro Shop manager of corporate public relations, says regardless of what a developer offers, all the puzzle pieces must fit together perfectly before the retailer makes a move. “They could offer the moon, but it still has to be right for us,” he says. “We have to research it ourselves and find out if there is a built-in customer base.” Bass looks at the number of hunting and fishing licenses sold in an area, zip code reports of catalog sales and the area’s outdoor activities. Whiteley says in Mesa’s case, everything fit. “We wouldn’t be considering this and doing this if we didn’t feel confident with this,” he says.

With Bass Pro Shop now on board, DeRito Partners and Mesa came to terms on an incentive package for the project. Developers agreed to front $42 million needed to get the center on its feet with the possibility of earning that money back in coming years with shared retail-generated sales taxes.

AZ Business MagazineDeRito says if the center, and therefore the city, makes money, the developers earn some of their down payment back. If not, it is the developer who will suffer, not the tax payers.

Mesa Economic Development Management Assistant Scot Rigby says the incentive package is a win-win situation for Mesa, and the region as a whole. “Since you’re performing, since you are truly becoming a benefit to the city, you are eligible for these types of incentives,” he says of the plan’s structure.

Rigby believes Bass Pro Shop’s agreement to build in Mesa speaks volumes not only for the store and local citizens, but also the economic viability of the entire valley. “The region is showing national retailers that they need to be in Arizona if they are going to be successful in their plans as a business,” he says. “It’s too big of an area for them to overlook now.”

www.cabelas.com
www.basspro.com

Arizona Business Magazine Aug/Sept 2006