The Evolving Consumer Perspective ‘Our Food our Future’ Conference, Dublin Lloyd Burdett, Global Head of Clients and Strategy 26 September 2013 0 © The Futures Company 2013 Priorities have changed… 1 © The Futures Company 2013 People feel the world is increasingly hostile and uncertain The world I live in feels like an increasingly hostile and uncertain place % 62 2010 2 © The Futures Company 2013 % 64 2013 I am constantly aware of the need to identify and manage the risks that surround me in the world today % 62 2010 Source: The Futures Company: Global MONITOR, Global Tracking average % 69 2013 Financially, things are tight, forcing a more short-term approach How well things are going financially in your country these days: Poorly/very poorly % 59 2010 3 © The Futures Company 2013 % 62 2013 I am much more focused on figuring our how to cover my current expenses than planning my long-term finances % 52 2010 Source: The Futures Company: Global MONITOR, Global Tracking average % 57 2012 Stress is increasing and people are looking to simplify their lives I suffer from stress these days 44% 2010 4 © The Futures Company 2013 % 48 2013 More and more I am looking for ways to simplify my life % 63 2010 Source: The Futures Company: Global MONITOR, Global Tracking average 69% 2013 But there is continued engagement in sustainability 5 © The Futures Company 2013 Levels of engagement in the issues have remained pretty consistent I have made it a top priority to live an environmentally conscious lifestyle % % 42 46 2008 6 © The Futures Company 2013 2009 % 45 2010 % % 44 45 2011 Source: The Futures Company: Global MONITOR, Global Tracking average 2012 But not everyone is equally engaged. Distinct segments exist… ENGAGED FEEL: Empowered and motivated to make a difference 7 © The Futures Company 2013 CONSTRAINED FEEL: Held back by other priorities in life and a lack of practical solutions UNCONCERNED FEEL: Unaffected and not convinced that problems are really as bad as people say Source: The Futures Company: Global MONITOR, Global Greenprint Segmentation The segments have remained stable for a number of years, with the majority motivated to live more sustainably FEEL ABLE ENGAGED UNCONCERNED UNMOTIVATED 39% 38% MOTIVATED CONSTRAINED 23% FEEL CONSTRAINED 8 © The Futures Company 2013 This picture has barely changed in the last 4 years Source: The Futures Company: Global MONITOR, Global Greenprint Segmentation Enduring limitations and barriers 9 © The Futures Company 2013 Good intentions don‟t always turn into action… Potential costs to me: • • • • More expensive? More time and effort Lesser quality products Sacrifice what I want to do vs. Potential benefits to me: • • • • • • Save money Better for my health Better quality Feel good / alleviate guilt Social kudos Fun – for me and the family • Better for my community People generally only take action if the perceived personal benefits outweigh the costs, however enforced behaviours are an exception e.g. recycling 10 © The Futures Company 2013 Actions and choices need to meet the primary consumer need first CONSUMER Choice, price, quality and convenience driving purchase choices 11 © The Futures Company 2013 CITIZEN A conflict or tension often exists Willing to give time or make compromises to do the right thing Solutions that work well avoid trade-offs, playing well to both “consumers” and “citizens” CONSUMER Choice, price, quality and convenience driving purchase choices Cars that save fuel and money, reduce emissions, and are fun to drive 12 © The Futures Company 2013 Points of tension often exist Beauty creams that are naturally good for both skin and the planet Teas that are healthy and refresh the conscience as well as the body CITIZEN Willing to give time or make compromises to do the right thing Chocolate which tastes good and rewards cocoa farmers fairly Need to bring things closer to home 13 © The Futures Company 2013 People want to take care of „their world‟ before saving “the world” Me and my direct family My World My wider family and friends and communities to which I belong Our World The World 14 © The Futures Company 2013 Source: The Futures Company: Making a Difference The planet and the wider communities upon which my lifestyle impacts Home life is often the lens through which people understand sustainability the best Healthier choices Using more energy efficient devices Recycling and reusing Washing and cleaning less Not letting the tap flow whilst doing personal or domestic chores Unplugging and turning off appliances 15 © The Futures Company 2013 Turning down the heating / air conditioning Walking, cycling or using public transport not driving Reusing grey water for household chores and toilet flushing Where action is present it is often linked to other life priorities Family Turning off lights Money Com m unit y Healt h Growing vegetables with the children Leisure Planting trees in the park Wor k Cycling or using Using public public transport transport Source: The Futures Company, Global Greenprint segmentation 16 © The Futures Company 2013 St at us …behaviors that stick often do so as they are closely linked to one of life‟s core priorities Personal / family health and responsibility for future generations are key motivators % saying that these factors motivate them „A great deal‟ to lead a more environmentally conscious lifestyle Top three choices 17 I am concerned about my own health and my family’s health 67% I want to preserve the world for future generations 62% I have a sense of responsibility as a good global citizen 52% © The Futures Company 2013 Source: The Futures Company: Global MONITOR, Global Average Connecting back to something real and tangible is also key to gaining consumer trust, engagement and credibility 18 © The Futures Company 2013 Source: The Futures Company: Global MONITOR, Global Average We need to change the emphasis… 19 © The Futures Company 2013 Consumer scrutiny and expectations are high and rising Most companies only make claims about their socially responsible efforts to try and sell me more of their products % % % 46 71 66 201o 20 © The Futures Company 2013 2009 2012 I expect the companies whose products I buy to take steps to avoid damaging the environment % 44 2011 2009 Source: The Futures Company: Global MONITOR, Global Tracking average % 84 2012 2011 So don‟t preach.. 21 © The Futures Company 2013 Don‟t celebrate too much too quickly… Charlie‟s Honest Water In New Zealand, the brand Charlie’s Honest Water intended to create a more environmentally friendly bottle by replacing PET with a plant based plastic In the news However, the brand didn’t consider that there are no facilities in New Zealand to recycle 7-category plastics (click on the links below) Proof that Charlie’s Honest Water is nonrecyclable Debate with the founder of Charlie’s Honest Water 22 © The Futures Company 2013 Very quickly, the “honest” brand received accusations of Greenwashing, which forced the brand to help the recycling process Make it real, tangible, rewarding… 23 Colombian white goods manufacturer, Mabe, launched a campaign to promote its water-saving washing machine. To encourage Chinese consumers to lower their carbon footprint, Volkswagen upped its Think Blue campaign with a mobility app. They set up booths where buyers could push a button to donate clean water to rural towns in Colombia. Each booth was connected with a webcam so that the villagers saw exactly who was donating water. With the app, drivers can track their own rides and get eco-friendly, cost-saving driving tips and compete with other drivers to find the best drivers in China © The Futures Company 2013 And help facilitate behaviour change among your consumers… Unilever’s “Sustain Ability” challenge, a behaviour change “social experiment”, and PG Tips partnering with local authorities to promote and facilitate recycling of tea-bags 24 © The Futures Company 2013 Thank you Lloyd Burdett, Head of Global Clients and Strategy E: lloyd.burdett@thefuturescompany.com www.thefuturescompany.com www.twitter.com/futuresco www.linkedin.com/company/the-futures-company www.facebook.com/futuresco