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ALISON WORTHINGTONUC DAVIS WORKSHOPMARCH 25, 2009
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Sustainability: The Rise of Consumer Responsibility
The Hartman Group: Customized Market Research, Insights and Consulting
Understanding cultural change that shifts consumer behavior in new directions
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Sustainability: The Rise of Consumer Responsibility
A Deep Well of Consumer Insights in Sustainability
The Redefinition of Quality
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Sustainability: The Rise of Consumer Responsibility
Sustainability Has a History
“Report Says Global Warming Poses Threat to Public Health”—The New York Times
"Most Consumers Say They Would Like More Green Products”—The Financial Times
"More New Alternative Fuel Vehicles Continue to Roll Off US Automaker Assembly Lines” —The Oil & Gas Journal
"Tomorrow's Shade of Green: Environmentally Oriented Construction Materials for the 21st Century” —Home Improvement Market
"Can Retailers Turn Green This Year?” —Marketing Magazine
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Sustainability: The Rise of Consumer Responsibility
Sustainability Has a History
“Report Says Global Warming Poses Threat to Public Health”—The New York Times
"Most Consumers Say They Would Like More Green Products”—The Financial Times
"More New Alternative Fuel Vehicles Continue to Roll Off US Automaker Assembly Lines” —The Oil & Gas Journal
"Tomorrow's Shade of Green: Environmentally Oriented Construction Materials for the 21st Century” —Home Improvement Market
"Can Retailers Turn Green This Year?” —Marketing Magazine
These headlines all occurred between 1996 and 1997!
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Sustainability: The Rise of Consumer Responsibility
Sustainability Is Now Moving Into The Mainstream
Food & Beverages
fresh, local, seasonal, organic, biodynamic
organic baby food
farmers markets, CSA
wild salmon, grass fed beef, free range chicken
Rainforest Alliance, Fair Trade
Sources
writings: Al Gore, Michael Pollan, Marion Nestle, Paul Roberts
food movements: Slow Foods
blogs, groups: Greentopia, Ideal Bite, Grist, Green Festival
lifestyle retailers: Whole Foods, Timberland, IKEA, Am Apparel
Home
natural/organic cleaners
sustainably harvested wood
solar panels
programmable thermostats
green waste recycling
faucet aerators
Personal Goods
baby products
natural /organic skin care
bamboo & organic clothing & bedding
reusable shopping bags
Prius, bus pass, biking
Sigg water bottles
Garden
garden in every school, urban gardening
grow-your-own veggies & herbs
drip irrigation system
ladybugs
native plants
Pet Care
raw foods
organic food
herbals, acupuncture
non-toxic pet grooming products
non-PVC toys
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Sustainability: The Rise of Consumer Responsibility
We Draw Our Conclusions From Two Significant Waves Of Research (conducted in 2007 and 2008)
Qualitative Ethnographic Immersions• Over 150 hours of consumer interviews
» In-depth interviews in homes, social network parties, consumer photo journaling
» Observation of sustainability activities
• Field locations
» In 2007: Chicago, Raleigh, Boston, Newark, Los Angeles, Seattle
» In 2008: Columbus, Dallas, Seattle
Quantitative National Survey• Custom online survey; sample size 1,600, nationally
representative of US population
• Conducted January 2007 and in September 2008
• Additional teen (14-17 years of age) survey
• Customized category reports
A Consumer-Centric Approach
• Our research methods give consumers great freedom to define sustainability objectively and broadly
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Sustainability: The Rise of Consumer Responsibility
5%
13%
58%
14%
10%
Total
Always Usually Sometimes Rarely Never
Over 75% of Consumers Consider Sustainability At Times When Making Purchases
Q6: “How often are your purchasing decisions based upon your concerns for issues such as the environment and social well-being?”Base: All respondents (n=1,856) Source: Sustainability 2008 Survey, Sept. 2008
How often are your purchasing decisions based upon your concerns for issues such as the environment and social well-being?
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Sustainability: The Rise of Consumer Responsibility
12% can identify a sustainable company
25% can identify a sustainable product
Sustainability Is A Vast Untapped Opportunity
Q12: “Are you familiar with the term "sustainability"? Base: All respondents (1606 U.S. adults in 2007; 1856 U.S. adults in 2008).Sources: Sustainability 2007 (Jan.) and 2008 (Sept.) surveys.
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Life Stage Changes Are Entry Points To Build Sustainability Connections With Consumers
Overarching Dimensions of Responsibility
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Consumers Speak Up: Sustainability:
The Rise of Responsibility
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Sustainability: The Rise of Consumer Responsibility
Paul – A Periphery Consumer
Learns most information about sustainability-related concerns from talk shows or the local news
Skeptical about claims that human behavior is causing global warming, but believes that reducing waste “just makes sense”
Has been a consistent recycler since the city made curb-side pick-up available (because it saves him money on his garbage bill!)
Believes that eco-friendly products are too expensive, but will purchase the green versions of a product when it is on sale
Gas prices would have to reach $5/gallon to consider taking the bus or sharing a ride to work
Just bought an energy efficient dishwasher because of a rebate
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Sustainability: The Rise of Consumer Responsibility
Katie – A Mid-level Consumer
Concerned that natural resources will be depleted when son gets older
Tries to buy refillable containers both to save money and prevent wasteful packaging
Uses reusable canvas bags for grocery shopping out of concerns that plastic and paper bags require more energy to produce and recycle (it doesn’t hurt that she saves money with each bag too)
Shops at a large national grocer because prices are affordable and it’s close to home, but frequents a natural food store for produce
Dislikes how national chains are “taking over”mom-and-pop businesses and frequently eats at local eateries and coffee shops to support the community
Purchased hardwood floors from a local, family-owned bamboo importer
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Marilyn – A Core Consumer
Believes that real, substantive change must occur at a systemic level if we are to solve the world’s challenges
Distrustful of big companies and retailers, and always looks online to investigate ownership
Only buys Fair Trade coffee due to concerns about economic equity in other countries
Shops at farmer’s market and also receives a weekly Community Supported Agriculture (CSA) box
Takes the bus to work at least three times a week
Composts food scraps and yard waste
Chose reclaimed wood flooring, recycled plastic countertops for home improvement despite the significant price premium
Most new children’s toys she buys are locally crafted wooden toys
Uses rain water barrels to water her garden
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Marilyn – A Core Consumer
Believes that real, substantive change must occur at a systemic level if we are to solve the world’s challenges
Distrustful of big companies and retailers, and always looks online to investigate ownership
Only buys Fair Trade coffee due to concerns about economic equity in other countries
Shops at farmer’s market and also receives a weekly Community Supported Agriculture (CSA) box
Takes the bus to work at least three times a week
Composts food scraps and yard waste
Chose reclaimed wood flooring, recycled plastic countertops for home improvement despite the significant price premium
Most new children’s toys she buys are locally crafted wooden toys
Uses rain water barrels to water her garden
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Consumer Depictions of Sustainability Include “Green” ….
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Sustainability: The Rise of Consumer Responsibility
… But There is A Broader Movement of Hope, Responsibility and Action that Extends Beyond Green
Be Responsible
Sense of Urgency
Hope
Connection
Simple Living
Authenticity
Control
Care/Nurturing
Local
Community
Healthy
“It comes a lot from every person taking personal responsibility and saying, I’m gonna commit to this, this is
important, I’m gonna do my part.” - midlevel consumer
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Consumers Describe Sustainability in Terms of Community, Local, Health, Preserving Resources, and Simple Living
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Healthy: For Many, Sustainability Starts At a Personal Level: In, On, Around The Body…
“What goes in our bodies is the most important, what goes on our bodies is a close second.” – mid-level consumer
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Healthy: Perception of Risk is an Important Trigger to Participation in Sustainability
As consumers learn more about risks, they are not willing to accept the status quo
Implications: natural/green is becoming the cost of entry in many categories
Fear of harmful effects of industrial ingredients
Heightened bodily sensitivity (irritations, allergies)
Awareness of where something is made (local, fair trade)
All Natural
Organic
“Locale”
Green
Personal experience, anecdotal stories & urban legends feed
anxieties
Translates to aspirational
behavior at retail
Increased social pressure to care about the environment
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Organic: A Growth Category Driven By Personal Benefits (e.g., Health, Safety)
83%
67%
62%
59%
57%
49%
46%
29%
28%
27%
22%
21%
14%
13%
11%
Absence of pesticides
Absence of growth hormones
Absence of GMO's
Safer for one's health
Environment-friendly
Absence of antibiotics
Absence of food irradiation
Family (small-scale) farms
Absence of BSE
Better treatment of farm animals
Better taste
Locally grown
Gourmet cooking
Sustainable production
Fair TradeSource: Organic 2006 Study (n=2109)
From the following list, what properties do you think are implied or suggested by the term "ORGANIC"?
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However, Freshness, Local and Sustainable Now Rank Higher Than Organic
When selecting foods and beverages to purchase, how important are the following labels or phrases to you?
All respondents (n=2,161)Top 2 Box based on 7-point scale ranging from “Not at all important” (=1) to “Extremely important” (=7)
90%
64%
53%
49%
47%
46%
45%
36%
35%
34%
32%
30%
29%
29%
11%
Fresh
Pesticide-free
Natural
Hormone-free
Origin of ingredients
Certified humane
Locally grown
Sustainable
Seasonal
USDA Organic
Fair trade
Free range
Grass-fed
Organic
Heirloom
Top 3 Box*
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Local: Defined By More Than Distance
Shows respondents who “agree”. Source: 2007 Sustainability Study (n= 1,600)
52%
37%
37%
36%
31%
27%
23%
It's important for me to buy locally grown food wheneverpossible.
It's important for me to know whether the milk I buy comes fromcows that have been given growth hormones.
When I think of food quality, I only think of how the productlooks, tastes, and smells rather than where it is produced.
It's important for me to buy meat and poultry that have beenraised without routine use of antibiotics.
When I think of food quality, I only think of how the productlooks, tastes, and smells rather than how it is produced.
I trust the government to insure the safety of my food.
It's important for me to buy organically grown food wheneverpossible.
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Sustainability: The Rise of Consumer Responsibility
Local: Is Most Powerful When It Includes a Product Narrative
Question: Thinking about how local products are marketed, how much do you agree with the following statements?
20%
25%
25%
23%
33%
32%
35%
38%
31%
28%
24%
24%
9%
8%
12%
11%
7%
6%
5%
5%
Seeing a picture of the peoplethat make a product makes it
more credible to me.
Seeing a picture of where alocal product is made makes
the product more credible thanmass produced products.
Learning about the peoplebehind a local product (who
makes it) is important to me.
Learning about the storybehind a local product (how it's
made) is important to me.
Completely agree Partly agree Neither agree nor disagree Partly disagree Completely disagree
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Sustainability: The Rise of Consumer Responsibility
Local Has Both Symbolic and Objective Meanings To Consumers
Objective: Geographic Symbolic: Locale
When asked in survey format which statement they think best defines a “local product” consumers defer to geographic definitions:
• 50% say “made or produced within 100 miles”
• 37% say “made or produced in my state”
Geographically local is important to consumers because it signifies “fresh”
During in-person interviews, when describing distinctions about local products, consumers also describe products using locale:
• Unique: Expressing the distinct geography of a region which implies quality attributes
• Distinctive: Specific tastes attributed to a locale
• Authentic: Cues a small producer
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Sustainability: The Rise of Consumer Responsibility
Preserving Resources: There is a Growing Awareness of the “Social Life” of Products
Consumers are weighing in product distinctions based on production, consumption, and beyond
Implications: natural/green products resonate with a holistic connection to self, community and earth
Pre-consumption
Renewable materials
Ethical production
Consumption
Clean ingredient list
Safe
Post-consumption
Biodegradable
Reusable
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Sustainability: The Rise of Consumer Responsibility
Packaging is the First And Last Sustainability Cue Consumers Notice
Food Packaging Materials That Consumers View Most Negatively
Importance of Packaging Materials
Q38: When purchasing products, how important is it that [the] packaging be...” (5-point scale of importance). Q42: “Which of the following types of food packaging/containers are you concerned about when it comes to your health or the
environment?“ (Select up to 3).Base: Consumers inside the World of Sustainability (n=1,662)
Source: Sustainability 2008 Survey, Sept. 2008
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Sustainability: The Rise of Consumer Responsibility
Simple Living: Consumers Increasingly Desire to Live More Responsibly
The Green lifestyle (eco-chic) is becoming something to envy and
desire rather than being about trade-offs
Implications: natural/green products are considered to be “good for me” AND “good for the environment”
Increased concern for ill effects of ramped up consumption, increasingly scarce resources and economic crisis has resulted in:
Cultural Shift: Consumers rethinking purchase/lifestyle habits (e.g. commuting, buying less, living simply)
Responsible Purchases: Consumers now feel a moral obligation to “do my part” by “doing the right thing” and “voting with my wallet”
Sustainability has arrived! Politicians, celebrities and everyday consumers not just hard core environmentalists are leading the dialogue
In times of economic hardship, sustainable products are a way to express personal values
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Sustainability: The Rise of Consumer Responsibility
There is a “Constellation of Values” that Trigger Consumer Interest in Sustainability
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Sustainability: The Rise of Consumer Responsibility
Consumers Define Sustainability in a Multitude of Ways
76%
55%
44%
44%
35%
33%
32%
25%
23%
22%
17%
12%
12%
12%
11%
11%
9%
7%
6%
4%
Ability to last over time
Ability to support oneself (self-reliance)
Conserving natural resources
Recycle, reuse, reduce
Responsibility
Environmentally friendly
Economic viability
Responsible farming methods
Green
Reducing carbon footprint
High quality
Humane treatment of animals
Fair trade
Simple living
All natural
Organic
Connecting with others
Local
Social activism
Reduction of meat consumption
Q13: “The word ‘sustainability’’ may mean different things to different people. What does it mean to you?”
Base: Consumers familiar with the term “sustainability” (n=151)Source: Sustainability 2008 Survey, Sept. 2008
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Sustainability: The Rise of Consumer Responsibility
The Hartman Model Looks At Sustainability Through A Consumer Lens Defined By “Responsibility”
Though widely used in business circles, the term “sustainability” is not a household word and has limited traction as a marketing term
Consumers interpret the word “sustainability” as green and link it to only one zone, environmental
“Responsibility” is a broader theme and better word to depict sustainability
• a value-laden term describing a call to action to contribute to the greater good
• goes beyond green• articulates the role of companies and consumers as
they negotiate their respective sustainable behaviors
The Hartman model starts with a traditional foundation of the interconnection of economic, social and environmental zones, but uniquely….
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Sustainability: The Rise of Consumer Responsibility
…Incorporates Personal Benefits That Motivate Consumers To Act on Sustainable Aspirations
Consumer Lens
What I value
What I know
What I choose to do
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Sustainability: The Rise of Consumer Responsibility
Importance of Company Practices in Consumers’Purchasing Behavior - It Isn’t Just about the Environment
85%
79%
77%
76%
76%
75%
72%
71%
70%
66%
63%
62%
61%
54%
45%
Provides quality products
Provides safe working conditions for its employees
Sells products/services at low prices
Tries to reduce waste and pollution
Tries to minimize the environmental impact of its production
Produces and distributes products in an energy-efficient manner
Provides good wages and benefits to its workers
Avoids inhumane treatment of animals
Tries to reduce the use of non-renewable resources
Takes steps to reduce its carbon footprint
Avoids unnecessary packaging
Uses green building techniques in its manufacturing and facilities
Represents the principles I agree with
Maintains supportive relationship with local community
Ensures the best possible return to its shareholders
Top 2 Box*
*Top 2 Box based on 5-point scale ranging from “Very Unimportant” (=1) to “Very Important” (=5)Q10/Q11: “When deciding which product/service to purchase, how important is it that the company that produces the product/service……?”
Base: Significant shoppers inside the World of SustainabilitySource: Sustainability 2008 Survey, Sept. 2008
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Sustainability: The Rise of Consumer Responsibility
Consumers Frame their Evaluations of a Company Using Dimensions of Responsibility
Resource consumption
Biodiversity
Waste disposal
Employment practices
Community involvement
Fair trade
Animal welfare
Profitability
Ownership
Money circulation
Household finances
Personal protection
Belonging/feeling good
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Sustainability: The Rise of Consumer Responsibility
Consumers View Sustainable Companies as Responsible Companies
Consumers make subjective interpretations about a company’s objective actions.
•E.g., Company uses petroleum and coal as power source ….
•E.g., Company switches to solar power …
Company is environmentally irresponsible
Company is more eco-friendly, but limited by bad social policies toward employees
It is therefore critical for a company to engage in self-reflexive inquiry and evaluation regarding what’s important and where it stands in light of the dimensions of responsibility.
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Sustainability: The Rise of Consumer Responsibility
Evaluations of Corporate Responsibility are Made in the Context of Transparency and Authenticity
Access to a company’s values, policies, and practices; open communications.
The extent to which a company’s activities are true and consistent with their values.
How accessible is information ?
How easy is it for consumers to learn about your company?
Does your company do what it says it does?
How long has your company been doing what it says it does?
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Foods and Beverages are Central to Consumer Perceptions of Sustainability
“Food is so basic. Everyone has to have it. And it impacts everything. So it makes sense that sustainability has to start with food.” ~ Sustainability Consumer
Consumers believe foods and beverages are a central sustainability issue that impact all zones of sustainability:
Personal Benefit
Personal safety; nourishment and vitality; enjoyment
Environmental (responsible) Farming practices; (decreased) food miles
Social Ethical treatment of animals; connection to local food producers
Economic Community support; Fair trade practices
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Sustainable Product Adoption Pathways
Food and Beverage Specific:
Sustainable Product Adoption Pathway:
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Sustainability: The Rise of Consumer Responsibility
Current Market Reach and Immediate Growth Opportunity (by Product Category)
Q30: “Which of the following specific foods or beverages have you purchased or consumed in the past 30 days?”Q31: “For which of the following foods/beverages are you willing to pay 20% more for a sustainable version?”Base: Significant shoppers inside the World of Sustainability who purchased general product category (base size varies by category, from 174 [meat alternatives] to 1,461 [bread]).
70%
36%
24%
26%
19%
18%
13%
17%
22%
12%
14%
18%
19%
8%
6%
16%
5%
14%
8%
8%
7%
20%
18%
25%
21%
25%
25%
26%
20%
14%
24%
20%
16%
15%
24%
23%
13%
23%
13%
19%
17%
32%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Meat alternatives
Bottled water
Seafood
Fruits
Vegetables
Eggs
White meat
Milk
Yogurt
RTD beverages
Red meat
Bread
Packaged rice
Pre-packaged coffee
Deli cheese
Butter
Rice-based products
Wine
Fresh prepared food/deli
Packaged cheese
Chocolate
Buyers of Sustainable Version (Among General Category Buyers)
Non-buyers of Sustainable Version Who Would Pay 20% Extra (Among General Category
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Sustainability: The Rise of Consumer Responsibility
6%
15%
21%
37%
47%
48%
66%
78%
77%
54%
Yourhousehold
Your localcommunity
Your state
The UnitedStates
The world
2007
2008
Percentage answering “much worse” or “somewhat worse” to the question: “When you think about the direction things are headed, how you think the quality of life will change in each of the following areas?”
Sources: 2007 Sustainability Survey (n=1,489 consumers within the World of Sustainability).2008 Sustainability Survey (n=1,662 consumers within the World of Sustainability)
Recent Events Have Shifted Consumers Perceptions that Quality of Life Will Change for the Worse
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Sustainability: The Rise of Consumer Responsibility
Economic Concerns Top the List of Consumer Concerns
88%
77%
76%
74%
69%
61%
52%
50%
42%
42%
31%
30%
29%
28%
25%
23%
20%
Higher gas / heating oil prices
Healthcare costs
Dependence on imported oil
Bank and mortgage crises
Unemployment
Rapid rise of inf lation
Climate change / global w arming
Natural disasters
Depletion of natural resources
Air pollution
Lack of food safety
Social inequality (gender, race, economic)
Carbon emissions
Overpopulation
Heavy use of pesticide/fertilizer in agriculture
Contaminated drinking w ater
Genetically modif ied crops and food
Q4: “What are the main issues that are currently impacting our society?”Base: All respondents (n=1,856)
Source: Sustainability 2008 Survey, Sept. 2008
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Sustainability: The Rise of Consumer Responsibility
Is the Consumer Economic Frugality for Real?
More pronounced evidence of channel shifting
• Favoring Walmart over mainstream grocery retail on some occasions
Consumers appear to be dining out less often• Significant opportunity for prepared and convenience foods in retail
Some consumers appear more oriented to promotional strategies
• Numerous data sources point to recent spikes in coupon use
75%
71%
71%
62%
24%
20%
20%
I try to buy items on sale
I eat out less
I drive less
I cut dow n my entertainment activities (going tomovies etc.)
I cancelled my vacation plans
I shop at club stores more (Costco, Sam's Club)
I am selling some of my possessionsQ51: “How have recent economic conditions impacted your life?”
Base: Consumers inside the World of Sustainability (n=1,662).Source: Sustainability 2008 Survey, Sept. 2008.
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What is Not Changing….
Consumers are not radically changing their food and beverage preferences• Abandoning certain foods or trading down quality does not solve consumers’
financial problems
• They are making some trade-offs, but not leaving categories entirely.
• Would life go on without our cherished Balsamic vinegar?
Consumers are not abandoning their interest in quality food experiences• The consumer’s redefinition of quality has been a well-documented ongoing
trend for over a decade
• Food choices are integral to consumers’ values and lifestyle
In times of economic hardship, sustainable products are a way to express personal values
13%
62%
25%
I buy more sustainable products nowthan last year
I buy the same amount of sustainableproducts
I buy few er sustainable products nowthan last year Base: Consumers inside the World of Sustainability (n=1,662)
Source: Sustainability 2008 Survey, Sept. 2008
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Sustainability: The Rise of Consumer Responsibility
56%
82%
36%
66%
95%
73%
Making purchase decisions is an effectiveway for me to express my values
Businesses and corporations should provideleadership in the area of environmental
protection
Core
Mid-level
Periphery
Consumers have high expectations for companies and believe their purchases matter
Purchasing Decisions, Voting Decisions or Local Community Involvement: Which Has a Greater Impact on Society? **
2008 Sustainability Survey (n=1,856 total consumers and 1,662 within the World of Sustainability)
2007 Sustainability Survey (n=1,489 consumers within the World of Sustainability)
39%
42%
19%
17%
18%
65%
My purchasingdecisions
My voting decisions
Involvement in localcommunity
Inside Sustainability WorldOutside Sustainability World
“I like to give something back, and I don’t have a lot to give to charity, but what I can do instead is give it to purchases that are more sustainable.” – core consumer
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Price Remains an Important Consideration when Purchasing a Sustainable Product
65%
56%
48%
45%
34%
70%
61%
52%
53%
73%
63%
43%
72%
68%
32%
Product is soldat the low estprice possible
Productdirectly
benefits me(e.g., low ersmy utility bill)
Product ismade by a
company thatprotects theenvironment
Total
Core
Inner Mid-level
Outer Mid-level
Periphery
While consumers outside the Core rate price the highest, Core consumers are most interested in the environmental stance of the company producing the product.
Q16: “Which of the following are most important to you when purchasing sustainable products? (Please select up to 3 choices)”Base: Significant shoppers inside the World of Sustainability (n=1,591; 243 Core, 589 Inner Mid-level, 487 Outer Mid-level, 272 Periphery)
Source: Sustainability 2008 Survey, Sept. 2008
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7%
24%
27%
40%
56%
34%
0% 10% 20% 30% 40% 50% 60%
Core
Inner Mid-Level
Outer Mid-Level
Periphery
Outsiders
Total
CoreInner Mid-LevelOuter Mid-LevelPeripheryOutsidersTotal
However, over a third of Consumers are willing to pay 20% more for a sustainability benefit
Likelihood of Paying 20% Higher Prices for Sustainability Products
Question: Compared to a year ago, are you more or less willing to pay 20% more for sustainable versions of products/services? Source: 2008 Sustainability Survey (n=1,662 consumers within the World of Sustainability)
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Willingness to Pay a 20% Premium for Sustainable Foods
Q31: “For which of the following foods/beverages are you willing to pay 20% more for a sustainable version?” Base: Consumers inside the World of Sustainability who purchased general product category (base size varies by category, from 174 [meat alternatives] to 1,461 [bread])
Source: Sustainability 2008 Survey, Sept. 2008
44%
40%
38%
38%
35%
35%
32%
31%
29%
29%
28%
27%
26%
25%
24%
24%
23%
21%
19%
18%
38%
Meat alternatives
Fruits
Eggs
Vegetables
White meat
Milk
Seafood
Red meat
Yogurt
Bread
Pre-packaged coffee
Deli cheese
Butter
Wine
Packaged rice
Packaged cheese
Ready-to-drink beverages
Bottled water
Chocolate
Rice-based products
Fresh prepared food/deli
Willing to Pay 20% Extra forSustainable Version (AmongGeneral Category Buyers)
Consumers are most willing to pay a premium for fresh food and highly differentiated categories
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Consumers Seek To Uplevel The Quality of Their Food Experiences, An Overarching Food Trend
IMPLICATIONS | OPPORTUNITIES
Consumers are willing to pay more for products that are perceived to be higher quality and deliver an enhanced experience
Food Requirements
REDEFINITION OF
QUALITY
Sustainability
Natural Organic Fresh Local Sustainable
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33%
28%
27%
25%
23%
20%
18%
17%
15%
14%
9%
8%
7%
7%
3%
2%
Product label
Internet search engine (e.g., Google)
In-store information (e.g., signs at store, salespeople)
TV/Radio
New spapers
Books/Magazines
A product company's advertisement
Friend or colleague
Family member
A product company's w eb site
Internet-based social netw orking group (e.g., Facebook, MySpace)
Medical professional (e.g., doctor, nutritionist)
Special interest organizations (e.g., Audubon Society, Nature Conservancy)
Government agency (e.g., EPA, USDA)
A product company's annual report/corporate social responsibility report
Union organizations
On-pack, internet and in-store are the top sources for information on sustainability (not 3rd parties or company reports)
Q26: “Which of the following in-store information sources have you used in
the past 3 months to learn about sustainable products or companies?”Base: Significant shoppers inside the
World of Sustainability (n=1,591). Source: Sustainability 2008 Survey,
Sept. 2008.
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40% of Consumers View Certification As Important
Q39: “Many sustainable products come with certification that verifies products' sustainable benefits. How important is sustainability certification to you?” Base: Significant shoppers inside the World of Sustainability (n=1,591; 243 Core, 589 Inner Mid-level, 487 Outer Mid-level, 272
Periphery). Source: Sustainability 2008 Survey, Sept. 2008.
How important is certification to you?
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Certifications vary in influence by category with the following having the highest awareness
USDA Organic continues to be a powerful communication “handle” and marker for quality despite the increased awareness around local and “rBST-free” (in dairy)
• Categories: Food and Beverage, Food Service, Personal Care, Home Décor
Fair Trade has gained momentum among Mid-level and Core sustainability consumers as a meaningful symbol of comprehensive responsibility. Strongly associated with cocoa and coffee; increasing awareness in tea, sugar, flowers
• Categories: Food and Beverage, Food Service, Home Décor
Reduce, Recycle, Reuse has strong comprehension for packaging• Categories: Food and Beverage, Personal Care, OTC Medicine and Supplements, Household
Cleaners, and Food Service
Not Tested On Animals / Cruelty Free has high awareness among core sustainability consumers especially teens
• Categories: Personal Care, OTC Medicine and Supplements, Household Cleaners
Energy Star has high awareness in the Home Décor category
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Consumers Prefer Independent Organizations as Providers of Certification
24%
17%
39%
25%
23%
35%
26%
20%
39%
22%
13%
22%
22%
11%
34%
Independentorganization(e.g., non-
profit group)
Governmentagency
Companymaking the
product
Total
Core
Inner Mid-level
Outer Mid-level
Periphery
Preferred Provider of Sustainability Certification
Q40: “Who would you prefer provide certification?” Base: Significant shoppers inside the World of Sustainability (n=1,591; 243 Core, 589 Inner Mid-level, 487 Outer Mid-level, 272 Periphery). Source: Sustainability 2008 Survey, Sept. 2008
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Sustainability: The Rise of Consumer Responsibility
“Reducing Carbon Footprint” is Growing in Importance
22%
40%
25%
19%
13%
7%
Reducing carbonfootprint
Total
Core
Inner Mid-level
Outer Mid-level
Periphery
Outsiders
Q13: “The word ‘sustainability’’ may mean different things to different people. What does it mean to you?”Base: Consumers familiar with the term “sustainability” (n=1,151)
Source: Sustainability 2008 Survey, Sept. 2008
Importance of Carbon Footprint When Purchasing A Product/Service
66%
95%
73%
61%
42%
Takes stepsto reduce its
carbonfootprint
Top 2 Box*
Total
Core
Inner Mid-level
Outer Mid-level
Periphery
* Top 2 Box based on 5-point scale ranging from “Very Unimportant” (=1) to “Very important” (=5). Q11: “When deciding which product/service to purchase, how important is it that the company that produces the product/service...?”Base: Significant shoppers inside the World of Sustainability (n=1,591; 243 Core,589 Inner Mid-level, 487 Outer Mid-level, 272 Periphery).Source: Sustainability 2008 Survey, Sept. 2008.
Association of Carbon Footprint With Sustainability:
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Greenwashing May Be A Media Rather than a Consumer Phenomenon
Consumer Reactions to Large Company’s Environmentally Friendly Claims (By Sustainability Consumer Segment)
Q27. When a large company claims that its products or its manufacturing processes are environmentally friendly, what is your initial reaction? The company's claim is...” Base: Consumers inside the World of Sustainability who responded to this question (n=1,521; 226 Core, 556 Inner
Mid-level, 464 Outer Mid-level, 275 Periphery). Source: Sustainability 2008 Survey, Sept. 2008.
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Generally, Teens Rely Less on Sustainability To Guide Purchase Decisions
24%
58%
18%
36%
41%
23%
Never/Rarely
Sometimes
Alw ays/Usually Adults Teens
Q6: “How often are your purchasing decisions based upon your concerns for issues such as the environment and social well-being?” Base: All respondents (1,856 adults, 413 teenagers, 185 teenage males, 228 teenage females). Sources: Sustainability 2008 Survey, Sept. 2008; Sustainability 2008 Teen Survey, Nov. 2008.
Purchase Decisions Based on Sustainability:
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Teens Are More Responsive to Contemporary Social Dimensions of Sustainability Such As Living More Simply
“Simple living”, “humane treatment of animals”, “all natural”, “social activism”, “local” and “reduction of meat consumption”resonate twice as much with teens as adults
Q13: “The word “sustainability” may mean different things to different people. What does it mean to you?” Base: Consumers familiar with the term “sustainability” (1,151 adults, 183 teenagers). Sources: Sustainability 2008 Survey, Sept. 2008; Sustainability 2008 TeenSurvey, Nov. 2008.
What “Sustainability” Means To Consumers:(Associations Held More Often By Teenagers than By Adults)
Figure 84.
12%
17%
12%
11%
12%
11%
6%
9%
7%
4%
26%
25%
25%
24%
21%
20%
19%
16%
14%
10%
Simple liv ing
High quality
Humane treatment of animals
A ll natural
Fair trade
Organic
Social activ ism
Connecting w ith others
Local
Reduction of meat consumption
Adults
Teens
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Organic & Sustainability: Millennials Foster Sustainability Through Community
For Millennials, Sustainability is about being community oriented and supporting small, local businesses. Millennials refer to Sustainability as “going green.”
Local trumps Organic as organic brands have become overly processed to Millennials seeking “real food.”
Never has there been a generation so acutely aware of local and global environmental issues.
Millennials are attempting to build communities grounded in the positive as opposed to reactionary Boomer parents.
For Millennials, Sustainability is about supporting socially conscious businesses as opposed to purchasing products to solve problems.
Transparency and building smaller brands are key for earning the trust of Millennials.
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The Rise of Consumer Responsibility Key Findings
Consumer awareness has increased with industry and media attention
Much of this has portrayed sustainability too narrowly as just “green”
“Responsibility” is the new broader consumer platform for “good companies”
“Responsible Purchasing” is on the rise
Sustainability is a marker for quality and can be a tie breaker in a purchase decision
The current economic downturn is not changing most sustainable behaviors, but consumers are making more considered decisions and tradeoffs in less essential categories
Consumers look for information about sustainability at point of purchase (e.g., in-store, on-pack communication)
Consumers are seeking narratives and storylines regarding sustainable practices and the people and places behind sustainable products
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Strategic Guidelines Around Sustainability:
Develop company or brand narratives that are core to your principles and connect consumers to the people, places and processes that epitomize your company. Let others (NGOs, consumers) tell your story
Stay oriented to consumer definitions (hope, connection, care, control, etc.), not industry definitions, of “sustainability”
Link personal benefits to sustainable products and services
Define Quick, Easy Steps that allow participation to be flexible and part of everyday high frequency behavior
Social and Economic values carry equal weight to Environmental ones.Show them how the company is part of a community, and stay inclusive.
Packaging remains a critical vehicle for communicating sustainability benefits (e.g., content, recyclability, practices)
Address key barriers to regular participation: convenience, price and availability – sustainability provides differentiation.
“Open up” the business for direct consumer input and dialogue as well as transparency about company processes, values, etc.
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hghghhghgh
Alison Worthington
The Hartman Group, Inc.
(425) 452-0818 ext. 161
laurie@hartman-group.com
www.hartman-group.com
Sign up for HartBeat
www.hartman-group.com/hartbeat
THANK YOU!
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Summary | Product Purchases (by Product Category)
Q28/Q30: “Which of the following [specific] foods or beverages have you purchased or consumed in the past 30 days?”Bases: Significant shoppers inside the World of Sustainability (n=1,591) and general category buyers (varies by product).Source: Sustainability 2008 Survey, Sept. 2008.
92%
88%
88%
85%
83%
83%
74%
72%
69%
69%
63%
62%
51%
46%
45%
44%
38%
34%
33%
21%
10%
14%
26%
13%
18%
19%
24%
12%
22%
6%
8%
39%
8%
17%
18%
32%
14%
8%
5%
70%
19%
16%
Bread
Vegetables
Milk
White meat
Eggs
Fruits
Red meat
Ready-to-drink beverages
Butter
Packaged cheese
Bottled water
Chocolate
Yogurt
Packaged rice
Seafood
Fresh prepared food/deli
Rice-based products
Deli cheese
Pre-packaged coffee
Wine
Meat alternatives
Buyers of General Category(Among All Shoppers)
Buyers of Sustainable Versions(Among General Category Buyers)
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