3. Association of National Advertisers
SUBSECTION TITLE
3
Case Study: Customer ‘A’
Working Hypotheses:
• Environmental considerations are having a greater impact on building materials purchase
decisions. Opportunity exists for Company A to drive growth and strengthen its
competitive advantage by positioning itself to satisfy these emerging requirements
• ‘Green’ is NOT a one-size-fits-all proposition. ‘Green’ means different things to
different buyers, and the market can be segmented based on how attitudes differ
toward ‘Green’
Company A:
• A large, “super-regional” supplier of building materials for the commercial construction
industry
4. Association of National Advertisers
SUBSECTION TITLE
4
Project Objectives
• To understand how builders/contractors define ‘green’ and their motivation to pursue/
not pursue green building materials/solutions
• To identify the key drivers of ‘green’ purchase decisions and dimensionalize their
relative importance
• To identify and prioritize distinct segments of ‘green’ based primarily on differences
in attitudes toward green
• To identify a ‘green-oriented’ value proposition that is compelling and distinctive to
the target segment
5. Association of National Advertisers
SUBSECTION TITLE
5
Target Selection
‘Green’ Research
Planning & Prep
High-level Project Approach
Value Proposition
Development
Target
Selection
Customer/Contractor
Segmentation
• What are the
distinguishing attitudes,
behaviors, and
firmographics of
builders and
contractors in the
marketplace?
• How many distinct
‘green’ segments are
there?
• How similar or different
are attitudes, needs,
and behaviors across
segments?
• Which segments are
the largest in terms of
pure numbers and
“incidence?”
• Which segments are
the most economically
attractive?
• With which segments
do we currently
perform best?
• What primary benefit
should serve as the
foundation for a green
value proposition?
• Is the foundational
benefit motivating,
credible, and
differentiated?
• What are the
interrelationships
between benefits (how
do they link)?
6. Association of National Advertisers
SUBSECTION TITLE
6
Attitudes
“What’s Relevant?”
Benefits
“What Motivates?”
Segmentation
Target Selection
“Who do we chose to go after?”
Value Proposition
25 different attitudes were used to
segment the marketplace
14 benefit statements and purchase
behaviors were captured to determine
what drives buyers to purchase
• Who will be most responsive?
• What do the want?
• How do they want it to benefit them?
• How do we prove it?
High-level Project Approach
7. Association of National Advertisers
SUBSECTION TITLE
7
Attitudinal Segmentation
‘Green’ Attitudinal Segments
Green Lovers Green for Me
• Believe ‘green’
building materials have
an impact on the
environment
• See value in ‘green’
building materials for
commercial
construction
• Believe ‘green’ is
worth the investment
• Least price sensitive
segment
• Also believe ‘green’
building materials have
an impact on the
environment
• Believe government
regulation is increasing
• More dependent on
manufacturers for
knowledge, expertise
and compliance
• Looking for help in
understanding ‘green’
Partially Green Green Rejecters
• Believe that ‘green’
building is important in
the commercial
construction space
• Not necessarily looking
for assistance
• Believe government
regulation is increasing
• Do see the value in
‘green’ building and
believe it has a notable
impact on environment
• Do not see the business
benefits in ‘green’
• Not willing to pay more
for ‘green’ offerings
• Most skeptical about the
validity/efficacy of
‘green’ building
• Do not believe ‘green’
building has a notable
impact on the
environment
25% 23% 34% 18%
Green
Lovers
Green
for Me
Partially
Green
Green
Rejecters
155
92 85
63
Distribution of Respondents Spend Indices – ‘Green’ Segments
Green
Lovers
Green
for Me
Partially
Green
Green
Rejecters
8. Association of National Advertisers
SUBSECTION TITLE
8
Target Selection
Primary and secondary targets were chosen to serve as the foundation for the
company’s future ‘green’ strategy
Green Lovers Green for Me Partially Green Green Rejecters
Primary Target Secondary Target
• Believe ‘green’
building materials have
an impact on the
environment
• See value in ‘green’
building materials for
commercial
construction
• Believe ‘green’ is
worth the investment
• Least price sensitive
segment
• Also believe ‘green’
building materials have
an impact on the
environment
• Believe government
regulation is increasing
• More dependent on
manufacturers for
knowledge, expertise
and compliance
• Looking for help in
understanding ‘green’
• Believe that ‘green’
building is important in
the commercial
construction space
• Not necessarily looking
for assistance
• Believe government
regulation is increasing
• Do see the value in
‘green’ building and
believe it has a notable
impact on environment
• Do not see the business
benefits in ‘green’
• Not willing to pay more
for ‘green’ offerings
• Most skeptical about the
validity/efficacy of
‘green’ building
• Do not believe ‘green’
building has a notable
impact on the
environment
9. Association of National Advertisers
SUBSECTION TITLE
9
Value Proposition Development
Analysis of key drivers of customer behavior (likelihood to recommend) highlighted a few
distinct benefits that could serve as the core for the company’s future value proposition
To further assess the validity of these
benefits, we developed Pathway
Models to understand what functional
and higher-order benefits “ladder
up” to these key drivers (next page)
Benefits
Index
Safe work environment
120
Help demonstrate commitment to environment
115
Superior knowledge & expertise
110
Enhance productivity
109
Improves company image
108
Increase satisfaction
106
Comprehensive solutions
105
Industry thought leader on environmental issues
104
Reduce operating costs
101
Certified green
98
Reduce fines
95
Supports competitive advantage
95
Credibility
89
Maintain property value
88
Reduce financial liability
86
Conserve energy
80
Derived Importance Analysis
10. Association of National Advertisers
SUBSECTION TITLE
10
Pathway Modeling
Conclusions
Help demonstrate commitment to
environment
Healthy work
environment
0.41
Improves company
image
Credibility
Reduce financial
liability
Enhance productivity
Reduce costs
0.47
0.32
0.48
0.54 0.38
0.52
0.36
0.42
0.43
Pathway Model
For Green Lovers, the most
effective way to help customers
demonstrate their commitment to
the environment is to show the real
financial and operational benefits
associated with ‘green’ building.
Image by itself is not enough
11. Association of National Advertisers
SUBSECTION TITLE
11
Foundation for ‘Green’ Value Proposition Development
Green Lovers
Commercial construction material provider
‘Green’ Results
• Safe work
environment
• Improves image
• Enhanced
productivity
Cost savings Credibility
Productivity Thought leadership
a demonstrated commitment to environment
Offer materials that
provide real business
value to customers in
terms of showing
tangible, financial
benefits that can
result from ‘green’
building – image by
itself is not enough
Target
Frame of
Reference
Primary
Benefit
Proof
Points
