the so-what? of sustainability:inside the minds of millennials to matures
TRANSCRIPT
The “So-What?” of Sustainability:Inside the Minds of Millennials to Matures
Elin Raymond, PresidentThe Sage Group, Inc.
The “So-What?” of SustainabilityWhat’s with the “So-What?”
Create sustainabilityConnectionsThe “So-What?”
Do your target customers care about sustainability?
Do they even know what it is?
“So-What?” if you’re sustainable?
Learn your target customers’ eco IQ.
Learn what sustainable means to them.
Fill in the blanks in their understanding of your shared roles in sustainability.
Meet their sustainability requirements with your product and packaging.
“89% of consumers haven’theard the term ‘sustainablepackaging’ or don’t know what it means.”Study by Perception Research Services
87% of consumers are concerned about the environment. Concern stops at the wallet: 25% make no green purchases other than organic foods,
energy-efficient lighting. 1. Perception Research Services
Pressure on name brands: 33% buy store-brands. Shoppers will buy from companies that help them justify preferred, name brand purchases. IRI
Times & Trends Report: Private Label 2008 - November 19, 2008 Post recession, many affluent consumers will return to name brands. Iconoculture.com -July 2009
Companies that greenwash have stolen the focus from sustainable practices.Packaging Digest, November 2009
Customers are paying more attention not only to results, but to how they are achieved.Brand Features - Brandspeak, May 11, 2009
“My job is to recycle; yours [manufacturer] is to make the packaging recyclable.”Sage research - Summer 2008
Educate or stagnate. McKinsey’s Quarterly Journal - November 2008
The “So-What?” of SustainabilityIs the consumer sustainable?
Other Sources Say …
Inside the Minds of Millennials to MaturesA Generational Approach
Age range Approx. % US population
Millennials 17 - 25 years 32%
GenXers 26 - 40 years 20%
Boomers 41 - 55 years 28%
Matures 56+ years 20%
Each generation of consumers has its own unique set of core values, views and behaviors.
Get inside the heads of your target customers to create products and packaging that appeal to their underlying generational values and are meaningful to them.
The “So-What?” of SustainabilityIs the consumer sustainable? A generational approach
Inside the Minds of Millennials to MaturesGenerational Profiles
Contributions by Chuck Underwood of The Generational Imperative
Formative environment
Core Values Behaviors
MaturesGreat generation
1920s - 1940s
WWII (the Great War)Post-War boomOzzie & Harriet familiesSuburbsTVThe organization man
Community-mindedPatriotismConformityLoyalty
Energetic doersTeam playersLoyal
BoomersIdealistic generation
1940s - 1960s
A golden age of kids, secure familiesSocial activism movementViet Nam
Believe they can achieve anythingTry it allHope, love, optimism, idealismEqual rights for all
Civil rights, feminist, protest and sexual freedom movementsAssertive, aggressiveForever youngParent advocates
Inside the Minds of Millennials to MaturesGenerational Profiles
Formative environment
Core Values Behaviors
GenXersComputer Generation
1960s - 1980s
Computer replaces old devicesDivorceMobile society Dual careers & time-
starved parentsLatch-key kidsPermissivenessShift to service economyGeographic shift from rust belt to sun beltTitle 9 & Women’s movementPost civil rights movement
Inclusive - women, racial & ethnic groupsIndependence, self-reliancedistance from older generations
EntrepreneurialConfident women; men seeking answersFocus on marriage & familyInnovativeLoyalty as quid pro quo
MillennialsOnline generation
1980s - today & tomorrow
Live onlineDefined by 9/11 and corporate greedHelicopter parentsDefinition incompleteStill in formation phase
Social activismAnti-greed (fallen CEOs,, celebs, etc.)Love of family/parentsRevere eldersTeam players
Pro underdogWant recognition more than dollars; not defined by possessionsWork in/with gov’tLive at home longerSee selves as poor
Inside the Minds of Millennials to MaturesSeeking Answers to the “So What?”
Generational Consumer Research Overview - 2008 and 2009
12-question, Web-based Sage Soundings© of company “friends” representing four generations: “My Views on Environmentally Friendly Packaging”
Used commonly understood terminology (no “sustainability”)
Probed eco-views, behaviors
Compared generational responses, 2008 vs. 2009: Did a deepening recession change eco-behaviors and attitudes?
Inside the Minds of Millennials to MaturesSeeking Answers to the “So What?”
Generational Consumer Research Overview - 2008 vs. 2009
2008: Communicated via Facebook and email 2009: Communicated via Facebook, email, LinkedIn and Twitter
2008: 760 queried, 167 responses or 22% - 6.7 MOE 2009: 736 queried, 105 responses or 14% - 8.8 MOE
Inside the Minds of Millennials to MaturesGenerational Eco-Profiles: Beliefs and Behaviors
The eco-importance of product packaging
Somewhat important Important Very important
Millennials 50.0% 41.7% 8.3%
GenXers 26.9% 46.2% 23.1%
Boomers 44.4% 58.8% 18.5%
Matures 20.7% 41.4% 34.5%
In a Datamonitor study, “51% said that packaging was a ‘medium’ or ‘high’ concern, with the US average falling below at 43%.” July 2009
Sage 2009 research showed that an average of 47% of all respondents think that packaging is important, while an average 21.1% think it’s very important.
Inside the Minds of Millennials to MaturesGenerational Eco-Profiles: Beliefs and Behaviors
Beliefs in action: Recycling practices2008 vs. 2009
Always recycle Recycle when convenient
Millennials 43.2% - 66.7%> 56.8% - 37.5%
GenXers 69.6% - 53.8%< 30.4% - 38.5%
Boomers 67.6% - 63.0% 32.4% - 33.3%
Matures 89.7% - 82.8% 10.3% - 24.1%
“I think we need to educate consumers what happens to packaging when we throw it away. If we saw barges or landfills, we we might become more sensitive to adding to that. But we throw the packaging in the trash, someone takes it away and it’s easy not to think about where it goes from there. “ Sage survey 2009
Inside the Minds of Millennials to MaturesGenerational Eco-Profiles: Beliefs and Behaviors
Eco-impact of packaging on purchase decisions2008 vs. 2009
Assess pckg for
e-friendliness
Choose product based on
e-friendliness
Pay more for eco-
friendly packaged products
Millennials
27.2% - 29.2% 11.1% - 20.8%> 27.2% - 25.0%
GenXers 39.1% - 26.9%< 39.1% - 46.2%> 43.5% - 34.6%<
Boomers 38.2% - 37.0% 26.5% - 25.9% 29.4%-37.0%>
Matures 37.9% - 55.2%> 31.0% - 41.4%> 44.8% - 31.0%<
Inside the Minds of Millennials to MaturesGenerational Eco-Profiles: Beliefs and Behaviors
Choices: Favorite soft drink in non-eco-friendly container or other brand in eco-friendly container
Stick w/favorite Stick w/fav until learn more Go w/eco-friendly@higher cost Go w/eco-friendly@lower cost
Millennials 22.2% 24.7% 17.3% 37.0%
12.5%< 25.0% 25.0% 45.8%>
GenXers 26.1% 30.4% 34.8% 17.4% 19.2%< 30.8% 23.1% 30.8%>
Boomers 26.5% 35.3% 23.5% 20.6% 33.3%> 22.2%< 22.2% 25.9%>
Matures 10.3% 27.6% 55.2% 6.9% 6.9%< 41.4%> 27.6% 27.6%>
Inside the Minds of Millennials to MaturesGenerational Eco-Profiles: Beliefs and Behaviors
What role do the ethics and environmental practices of a company play in your product choices?
Never buy from “bad” co. Avoid buying Buy regardless of reputation
Millennials 6.1% -13.0%> 59.3% - 78.3%> 34.6% - 8.7%<
GenXers 17.4% - 20.5% 73.9% - 68.0% 8.7% -12.0%>
Boomers 20.6% -12.0%< 79.4% - 72.0% 20.0%>
Matures 33.3% - 17.9%< 64.3% - 78.5%> 7.1%>
“Sustainably oriented packaging is one of a growing number of issues driven by ethics.” Greener Package, July 7, 2009
Inside the Minds of Millennials to MaturesPackaging Perceptions Overview
Perception = Reality
Eco-friendly packaging
Glass containers Made of recycled materials
Aluminum cans Refillable containers
Products sold in bulk Returnable containers
Cardboard packaging Light-weighted water bottles
Paper grocery bags Websites vs. print ads
Concentrated liquids Retort & aseptic food packaging (norefrigeration in transport)
Packaging made from recycled paper, cardboard, plastic
Peat plant pots
Digital music/movie downloads vs. CDs
Inside the Minds of Millennials to Matures Packaging Perceptions Overview
Perception = RealityNon-eco-friendly packagingSingle-serve anything Products with
excessive wrap
Electronics and toy packaging Anything packed in styrofoam
Heavy, hard plastic packaged Water bottlesitems or bottles
Individual snack packs
Anything not made of recycled Materials Asian packaging
Anything that can’t be recycled Children’s toy packaging
Overkill packaging Anything printed
Most plastic water bottles Blister packaging
Styrofoam anything
Take-out containers
Plastic can rings
Clam-shell containers
Green Guys vs. WannabeesNaming Names
Green Guys• Toyota/Prius• Subaru• Ford• Chevrolet• Pepsico• Quaker Oats• Dr. Bronners• Seventh Generation• Target (2008)• Wal-Mart (2008) • Whole Foods• UPS• Aveda• SC Johnson (2008)• Apple• Method
Wannabees• SC Johnson (2009)• British Petroleum• Dow-Corning• Exxon-Mobil• HP• GE• Johnson & Johnson• Monsanto• Dupont• Target (2009)• Wal-Mart (2009) • MacDonalds
“My perception is a large percentage are using this for marketing and are not ‘walking the walk’ in all aspects.” Sage survey 2009
Eco-Friendly? Not?Naming Products
Eco-Friendly• Ice Mountain - 30% less
plastic • Burts Bees/Chlorox• OB tampons - 56% less
waste than others• GE light bulbs• Nature’s Path• Starbucks (coffee cups)• OXO Good Grips• Mrs. Meyers & Caldrea (P&G)• Coca-Cola (glass bottles) • Sun Chips• Frito-Lay
• Restore• True Green
Not• HP printer cartridges• Listerine (hard plastic
bottles)• Lunchables• Fiji Water• TetraBrik juice boxes• Pringles
• Gillette razors• Energizer/Duracell
batteries• P&G beauty products
(2009)
A Generational Approach forSustainable Success
Overall Observations from Sage Soundings
Survey responses from all generations changed from 2008 to 2009, likely due to a deepening recession.
Product price overrode eco-friendliness in purchase decisions in 2009. (Think Maslow’s Pyramid of Needs).
Sustainability does not mean the same thing to the consumer as it does to packaging professionals.
To the consumer, a sustainable company is one that won’t go under in the near future. To the consumer, sustainable packaging = recyclable. More education needed on the meaning
and scope of sustainability. Consumers view (hard) plastic and over-packaging as harmful.
Consumers perceive greenwashing to be pervasive. (Cynicism toward corporations; lack of clear metrics.
Perception spills over into products that are truly green. Companies must provide proof of sustainability to the consumer to counter doubts due to
greenwashing. -
A Generational Approach forSustainable Success
Overall Observations from Sage Soundings - Continued
Consumers are suspicious of inflated claims. Authenticity and transparency are essential to combat consumer skepticism about product
packaging.
Company/product/packaging/ethics are one in consumer perception.
Green must be an organizational cultural keystone, a key brand attribute.
Your target customers define your brand; it is what they believe it to be.
Inside the Minds of Millennials to MaturesGenerational Eco-Profiles: Beliefs and Behaviors
How to Reach and Appeal to Your Target Consumer
What would influence you to choose an eco-friendly brand over favored, non-eco friendly brand in any product category?
Lower price TV/print ads Articles/TV news Internet/YouTube Friend Web Try it
Millennials 83.8% 46.3% 45.0% 70.0% 53.8%
‘09 87.5% 50.0% 33.3% 16.7% 62.5% 8.3% 54.2%
GenXers 56.5% 47.8% 43.5% 34.8% 91.3% 34.8% 56.5% 65.4% 46.2% 30.8% 15.4% 57.7% 15.4% 50.0%
Boomers 70.6% 52.9% 40.1% 50.0% 64.7% 96.3% 51.9% 55.6% 22.2% 81.5% 22.2% 77.8%
Matures 46.4% 46.4% 53.6% 67.9% 25.0% 53.6% 55.2% 69.0% 69.0% 24.1% 75.9% 20.7% 48.3%
Generational Marketing/BrandingStrategies for Sustainable Success
Millennials GenXers Boomers Matures
Aspire to be more eco-involved, IF they could afford it.
A diminished dedication to always recycling likely due to economic pressures.
Eco-involved; seemingly least affected by the economy.
Most eco-involved; sustainability champions.
More “always recycle” (do what they can - if it doesn’t cost)Price-drivenMore avoid buying from companies with a bad reputationTrust friends - not companies
Purchase decisions more price-driven than previouslyBelieve strongly in the eco-impact of product packaging
Believe in eco-packaging and its impact on the environmentWant and value information in order to make an informed purchase decisionThe only generation that might pay more for eco-friendly packaging.Lifestyle/health orientation
More and more assess and choose products based on
e-friendlinessWant and value information in order to make an informed purchase decisionNow, price is more important to themWomen - main buyers
Market your sustainable product to them by:
Market your sustainable product to them by:
Market your sustainable product to them by:
Market your sustainable product to them by:
TV/print adsLower priceFriend’s recommendationTrying it
TV/print adsLower priceFriend’s recommendationTrying it
TV/print adsArticles, TV news spotsLower priceTV/print adsFriend’s recommendationTrying it
TV/print adsArticles, TV news spotsLower priceTV/print adsFriend’s recommendationTrying it
Generational Marketing/Branding Strategies forSustainable Success
All Generations
Communicate! Clear, truthful, consistent communications can neutralize the greenwashing perceptions and make your
packaging (brand) more sustainable to the consumer.
Target customer research - identify eco-disconnects Conduct segmented customer research on eco perceptions of company/brand(s). Compare external findings with internal beliefs. Identify disconnects. Develop strategic branding plan to build perception connection, authentic environmental strength. Periodic research to capture evolving behaviors, make plan corrections.
Your corporate culture - eco from top to bottom Create executive ethics and the environment (E&E) position. Draw up E&E policy and goals. Upload to Website. Put out annual E&E report: highlights and progress toward goals. Adopt brand-related environmental/social cause. Support with X% of profits. Get trusted third-party environmental certifications; publicize and upload to Website and onto packaging, e.g.,
Energy Star, FSC, etc. Seek environmental awards; publicize on Website and packaging.
Generational Marketing/Branding Strategies forSustainable Success
All Generations
Your Website Create E&E section. Showcase on home page. Offer first X thousand(s) of visitors to E&E section reduced product pricing, special
offers. Create engaging two-way, eco-forum or blog.
Listen, learn from customers. Encourage involvement in product development. Share eco-tips, stories. Let them direct course of conversation. Encourage participation through reward points, etc.
Build email list of everyone who downloads materials, coupons, etc. Load into CRM system. Send special offers, coupons, promotional items, etc.
Generational Marketing/Branding Strategies forSustainable Success
All GenerationsYour packaging
Evaluate packaging for carbon footprint, recyclability, reusability, materials minimization, biodegradability, etc.
Review primary, secondary and tertiary packaging; can any be eliminated? If packaging includes plastics, try to incorporate recyclable Nos.
1 and 2. If appropriate, go for bulk to appeal to scrimping shoppers, or smaller, concentrated versions of
your product.
Consider package redesign for essential eco-qualities. Treat package/container as an ad.Treat package/container as an ad. Go for shelf-standout design that says “green.” Cite authentic eco-benefits of product/brand and eco-certifications. Adhere to FTC Green Guides to ensure claims substantiation. Quantify claims. Website address for more info.
Generational Marketing/Branding Strategies forSustainable Success
Millennials and GenXers
Create online life, friends for your brand Millennials, GenXers always linked/online. Keep engaged via two-way social media.
Create an environmental blog for conversation and awareness, I.e., environmental volunteer opportunities. Online contests: create an ad, design container or package (Consumer-Generated Media) Turn in product labels, tops, wrappers for $ donated to environmental cause they select. Use Twitter to announce contests/promotions, e.g., “A Discount-A-Day,” brand extensions, eco-events and facts, etc. Load clever, non-ad videos onto YouTube, Facebook. Create a Facebook company profile; use it as a communications vehicle.
Help them try your brand. Downloadable free/discount coupons on Facebook, Website, partner sites, smart phones. Integrate online and traditional marketing, ex., articles and ads in college papers, Facebook, targeted online and print
publications directing visitor to your site for discounts, special offers. Email, post eco-relevant press releases/announcements to environmental and industry blogs. Track what’s said about brand/product via YackTrack.com. Sponsor environmental or cause-related events in target geographic markets.
Video uploads. Give out products, promo items, coupons. Conduct product tests, and consumer research.
Generational Marketing/Branding Strategies forSustainable Success
Boomers and Matures
Eco-Masters program Place ads, articles, TV news spots in media outlets/publications identified as favorites in
target consumer research.
Focus on brand/product environmental attributes, education.
Drive them to your Website for downloadable Green Bucks Back, special offers; information updates on environmental three Rs.
Gather email addresses for them and friends.
Email or mail Green Bucks Back, special offers.
Use them for product/innovation development. Ask for e-feedback on your products/brand. Reward input.
The “So-What?” of Sustainable Branding
“We are seeing the birth of a new perspective of the world, where ecology and economics are two sides of the same coin.” Leif Johansson, CEO, Volvo Group
For more information …
Contact Elin at [email protected] or 612.321.9897. Blog: www.supersageme.com LinkedIn: www.linkedin.com/in/elinraymondTwitter@ElinRaymond
Presentation posted on www.sagegrp.com