Join in on this revealing presentation focused on empowering companies to gain revenue and customer trust through sustainable branding. See how big names of various industries have capitalized on sustainability by following through with their green image and promises.
3. Current consumer thinking in context of
5 year’s worth of data
• Despite recession, all is not lost
• Consumers desiring value AND
values
• Leadership doesn’t demand
perfection
12. Top 10 US Green Brands
2009
1. 6.
2. 7.
3. 8.
4. 9.
5. 10.
13. Likely reasons for CPG rise
• “On-trend” – nesting at home/circling wagons
• Broad distribution
• Relatively low cost
• Significant marketing spend
• Synergy between products and corporate
activity
• Improvement in green product attributes and
delivery
52: What is the first company that comes to mind when you think of the most “green” brand today?
15. Brands are most trusted
after NGOs and individuals
8
23/73
5
26/72
48/49
51/46
52/45
53/42
56/40
59/38
65/33
8-15: How much do you trust each of the following entities to take significant actions to protect the environment?
16. Spokespeople
Cultivating relationships with credible
outsiders helps build credibility
1 Intellectuals such as professors or authors 45
2 Activists 38
3 Politicians 23
4 Celebrities 21
Journalists 16
Corporate Executives 15
Other 9
None of the above 9
Don’t know 10
16
16: Who would be the most credible spokesperson to lead environmental change? Multiple Responses Permitted
19. But it needs to be simple
and meaningful
62%
45%
79%
81%
83% wantgreen advertising helpful
findlooklabel that tells themmark
a for a certification
clear labels
full disclosure
that indicates greenness from
where their food comes
20. As well as less and better packaging
397: What is more important when thinking about how products are packaged?
21. Get the brand fundamentals right
Very Important / Not
Important Important
1 Offers Good Value 78 97/1
2 Is Trustworthy 75 96/2
3 Cares about Customers 68 95/3
Is Environmentally Conscious 45 86/13
Is Innovative 34 82/15
Has a Strong Brand 34 78/20
Is Best in its Category 31 82/16
Contributes to Charities and the Community 28 71/26
Is Distinctive 20 66/31
Is Dynamic 20 63/34
WPP companies plus Esty Environmental Partners Fifth round of research
Understand the general population’s perceptions of the environment and environmental issues Test ed [a contained ] group s of brands within [ specific categories ] industries to gauge brand environmental leadership [ Evaluate people’s perceptions of how brands rate in terms of environmental attributes ] Research Methodology Methodology 1521 online interviews in the US from May 17-20, 2008 Margin of Error Overall, the margin of error is +/- 2.5%, and greater for subgroups Audience US general population 18+
People are clearly more concerned about the economy than they are about the environment. The levels of concern are unchanged from last year. We know that this is an almost incredible set of numbers, given the difference in the state of the economy. We believe it indicates that although economic concerns have risen, so have environmental concerns.
Consumers remain highly concerned about and aware of environmental health as an issue (36). This year, perhaps as the result of the Presidential election, they are also more optimistic that things are going in the right direction (4). They have a surprisingly high degree of trust in corporations to take actions to protect the environment (7), and 76% of people say are prepared to spend the same or more on green products in the coming year. Against this backdrop, companies have a receptive marketplace for building green brands, despite the economic slowdown .
Companies shouldn’t expect significant increases in green spending next year, as only 39% of consumers are planning on spending more . [Note: 39% seems like a lot to me!]
Use bars # 1, 3, 5, 7 Green is a clear way to put the “meaning” into product purchases. If you can tell the story credibly and especially if that story includes price parity, you have a strong platform for a green brand.
Three out of four people say it is important to them that the brands they purchase are green. 77% of consumers say it’s important to buy environmentally friendly brands What is the difference between those two points?
The company that develops a simple, clear rating system for its industry category - play a leading role in its adoption - will gain both early mover advantage and a leadership reputation.
Explanation of the process – greenest brands among those we tested in 10 categories Rise of the packaged goods companies
Potential competitive advantage, even if you don’t have an entirely green company, from a consumer POV Risks and pitfalls: But for many other stakeholders – including more sophisticated consumers -- such a move could lead to greater scrutiny of your core corporate environmental activities, and you need to be able to show that you have thought through your strategy and are “on the path.”
NGOs and individuals are seen as most trustworthy to take concrete steps to protect the environment. People are split on the role of companies THIS IS A BIG OPPORTUNITY (DO WE KNOW HOW IT COMPARED TO LAST YEAR?)
Consumers trust corporations as trustworthy on the environment to a large degree (7), but they also look to third party validation of corporate reputation and green products. Companies need to think broadly about developing their green reputations, including cultivating key relationships with credible outsiders. Partnering with an environmental NGO continues to be a strategy for building corporate credibility (7). Likewise, intellectuals, such as professors or authors, are perceived as the most credible spokespeople to lead environmental change (8). Such people can effectively serve on Environmental Affairs Boards. YOU MUST EMPHASIZE THAT THIS IS BUT ONE ELEMENT IN A CAREFULLY THOUGHT-THROUGH, COMPREHENSIVE STRATEGY – don’t make it sound as though this is the simple answer to a green strategy. This is more like one tiny point of a comprehensive green strategy.
The company that develops a simple, clear rating system for its industry category - play a leading role in its adoption - will gain both early mover advantage and a leadership reputation.
Consumers are getting smarter, asking more questions, and setting higher expectations for both corporate and brand environmental performance. “Environmentally conscious” ranked fourth among top corporate attributes (15) in consumers’ minds, behind offers good value, is trustworthy, and cares about its customers. On the brand front, they’ll look for a specific certification mark at point of sale to tell them the product is green (11).
People want more green information presented quickly and easily. Rather than feeling overwhelmed with advertising about green products, they feel that it helps them make informed purchase decisions (53). They want green product labels – and product information of all kinds, especially related to food -- that are easier to understand (49). The company that can communicate simply and truthfully about green attributes of itself or its products will win with the green-oriented consumer (the majority of consumers). In doing so, keep in mind that consumers tend to think they are “greener” than their friend or neighbor (9). Appeal to their desire to be part of the solution and leaders among their peers.
Consumers are getting smarter, asking more questions, and setting higher expectations for both corporate and brand environmental performance. “Environmentally conscious” ranked fourth among top corporate attributes (15) in consumers’ minds, behind offers good value, is trustworthy, and cares about its customers. On the brand front, they’ll look for a specific certification mark at point of sale to tell them the product is green (11).
“ Environmentally conscious” is fourth most important corporate attribute Behind offers good value, is trustworthy and cares about its customers Consumers are getting smarter, asking more questions, and setting higher expectations for both corporate and brand environmental performance. “Environmentally conscious” ranked fourth among top corporate attributes (15) in consumers’ minds, behind offers good value, is trustworthy, and cares about its customers. On the brand front, they’ll look for a specific certification mark at point of sale to tell them the product is green (11).