Earthsense LOHAS June 2010
LOHAS and LOHOE; How Health & Sustainability is Complemented by Hedonics or Economics When 93% of the population is not included in a definition – you’ve essentially said “no” to the adoption of your product to the mass market. Additionally, you’ve made the fringe so elitist that the only ones responding to the greater purpose are those who can identify with the movement. Earthsense takes a common sense approach to sustainability. We believe there is a little green in everyone, and we are certain that the key is in identifying those attributes that make a product or service desirable without muddying the waters with political or lifestyle philosophies that can alienate people who do not feel compelled to join the cause. In this enlightening session, Earthsense will share research from the most comprehensive database of consumer behavior on green: Eco-Insights. We’ll share the why behind the buy – comparing and contrasting product categories to give you the background you need to create compelling product messaging that appeals to the masses, not just those who already drank the “green kool-aid.” Presented by: Wendy Cobrda, President & Co-Founder of Earthsense
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Earthsense LOHAS June 2010
- 1. HowHedonics & Economics are the natural complement to LOHAS (Bringing sustainability to the masses by thinking like a consumer!)
- 3. 3 Hedonics PSYCHOLOGY studies focusing on desire for pleasure and the avoidance of pain; happiness PHILOSOPHY theories surrounding ethics of seeking individual pleasure at the expense of the well-being of others
- 4. 4 Eudaimonics: contentedness, purpose & meaning, ‘raison d’etre’ Hedonics: temporal feelings, more positive feelings than negative
- 5. 5 ...think I’ll buy the chocolate mocha madness ice cream because …it is cold and creamy and chocolate – it tastes so good! ...think I’ll buy the chocolate mocha madness ice cream because …Ben & Jerry’s is such an environmentally sensitive company. OR
- 6. The Dimensions Framework Earthsense ©2010 All rights reserved. 6 LOHAS Attitude Behavior
- 7. Dimensions Strivers 16% Believers 15% Enthusiasts 7% HIGH CORE Habitual 4% Skeptic 24% Selective 11% MEDIUM ATTITUDE RIM Detached 18% Ambivalent 1% Practical 4% LOW LOW MEDIUM HIGH BEHAVIOR Source: Eco-Insights 2008, 2009 7 7
- 8. Market Shifts 2008 to 2009 2008 2009 Strivers 17% Believers 16% Enthusiasts 7% Strivers 16% Believers 15% Enthusiasts 7% HIGH HIGH Habitual 3% Skeptic 30% Selective 12% Habitual 4% Skeptic 24% Selective 11% MEDIUM MEDIUM ATTITUDE ATTITUDE Detached 12% Ambivalent <1% Practical 2% Detached 18% Ambivalent 1% Practical 4% LOW LOW Biggest change is the shift from “Skeptics” to “Detached.” LOW MEDIUM HIGH LOW MEDIUM HIGH BEHAVIOR BEHAVIOR Source: Eco-Insights 2008, 2009 8 8
- 9. Earthsense ©2010 All rights reserved. 9 Fave Brand What’s in & not in it Psst! Try this! It’s easy Live long & prosper MONEY Love the taste
- 10. LOHAS Manufacturing Source Packaging LOHOE Taste Price Brand Future Health Current Health Availability Lifestyle Ingredients Recommended
- 17. 17
- 18. 18 Earthsense ©2010 All rights reserved.
- 19. We don’t need no stinkin’ green premiums % Willing to Pay a Premium for Different Green Products Source: Eco-Insights 2008, 2009 19
- 20. Economics trumps desire… Earthsense ©2010 All rights reserved. 20
- 21. Green Premium Payer Profiles Differ by Product Source: Eco-Insights 2009 21
- 22. 22 Earthsense ©2010 All rights reserved.
- 23. 23 Earthsense ©2010 All rights reserved.
- 24. Earthsense ©2010 All rights reserved. 24
- 25. 25 RETHINK
- 26. 26 Reduce Reuse Recycle
- 27. 27 ReFUSE ReTOOL ReSTYLE
- 28. 28 ResEarch Reinvent Reposition
- 29. 29 Earthsense ©2010 All rights reserved. LOHAS and LOHOE are not mutually exclusive concepts
- 30. 30 Earthsense ©2010 All rights reserved. Thank you! Earthsense.com GreenConfidenceIndex.com AsTheEarthSpins.com
Notes de l'éditeur
- Life Liberty and the Pursuit of Happiness – Thomas Jefferson (Core of our culture)
- Demographics can help sharpen the target, when we look at specific products, rather than premium price payers in general. Not surprisingly, for the 22 products we tested in spring 2009, we found that income was a useful predictor – but not necessarily sufficient. Age, which correlates with income helps a bit, of course. Here’s an example for gender, for a subset of ten of the products – you see that Men are at least 20% more likely than women to pay a premium for their granola bars, paper towels and MP3 players, for example, while women were 20% more likely than the guys to pay a green premium for fresh poultry, laundry detergent, lotion for their skin or their car. The message here is to model to optimize your target, to distinguish where distinct profiles can be created among likely buyers whose taste may run green….or conventional. NOTE: A product had a gender skew if its indices were outside the range of 90 to 110. Example: For crackers the indices were 96-104; for granola bars, 83 (women) to 118 (men); for pet food, 98 to 102; for poultry, 86 (men) to 113 (women).
- To get consumers to understandPoints:Refuse: Barriers are price premiums, politicization of issues, preachy/controlRejuice: Rest: Redreaming the dream – reset expectations of the product to how its used by consumers, to the importance that consumers bring to your brand.
- To get consumers to understandPoints:Refuse: Barriers are price premiums, politicization of issues, preachy/controlRejuice: Rest: Redreaming the dream – reset expectations of the product to how its used by consumers, to the importance that consumers bring to your brand.