The “So-What?” of Sustainability: Inside the Minds of Millennials to Matures Elin Raymond, President The Sage Group, Inc. The “So-What?” of Sustainability What’s with the “So-What?” The “So-What?” Do your target customers care about sustainability? Do they even know what it is? “So-What?” if you’re sustainable? “89% of consumers haven’t heard the term ‘sustainable packaging’ or don’t know what it means.” Study by Perception Research Services Create sustainability Connections 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. The “So-What?” of Sustainability Is the consumer sustainable? Other Sources Say … 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 Inside the Minds of Millennials to Matures A 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% The “So-What?” of Sustainability Is the consumer sustainable? A generational approach 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. Inside the Minds of Millennials to Matures Generational Profiles Contributions by Chuck Underwood of The Generational Imperative Matures Great generation 1920s - 1940s Boomers Idealistic generation 1940s - 1960s Formative environment Core Values Behaviors WWII (the Great War) Post-War boom Ozzie & Harriet families Suburbs TV The organization man Community-minded Patriotism Conformity Loyalty Energetic doers Team players Loyal A golden age of kids, secure families Social activism movement Viet Nam Believe they can achieve anything Try it all Hope, love, optimism, idealism Equal rights for all Civil rights, feminist, protest and sexual freedom movements Assertive, aggressive Forever young Parent advocates Inside the Minds of Millennials to Matures Generational Profiles GenXers Computer Generation 1960s - 1980s Millennials Online generation 1980s - today & tomorrow Formative environment Core Values Behaviors Computer replaces old devices Divorce Mobile society Dual careers & timestarved parents Latch-key kids Permissiveness Shift to service economy Geographic shift from rust belt to sun belt Title 9 & Women’s movement Post civil rights movement Inclusive - women, racial & ethnic groups Independence, selfreliance distance from older generations Entrepreneurial Confident women; men seeking answers Focus on marriage & family Innovative Loyalty as quid pro quo Live online Defined by 9/11 and corporate greed Helicopter parents Definition incomplete Still in formation phase Social activism Anti-greed (fallen CEOs,, celebs, etc.) Love of family/parents Revere elders Team players Pro underdog Want recognition more than dollars; not defined by possessions Work in/with gov’t Live at home longer See selves as poor Inside the Minds of Millennials to Matures Seeking 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 Matures Seeking 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 Matures Generational 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 Matures Generational Eco-Profiles: Beliefs and Behaviors Beliefs in action: Recycling practices 2008 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 Matures Generational Eco-Profiles: Beliefs and Behaviors Eco-impact of packaging on purchase decisions 2008 vs. 2009 Assess pckg for e-friendliness Choose product based on e-friendliness Pay more for ecofriendly 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 Matures Generational 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% 12.5%< 24.7% 25.0% 17.3% 25.0% 37.0% 45.8%> GenXers 26.1% 19.2%< 30.4% 30.8% 34.8% 23.1% 17.4% 30.8%> Boomers 26.5% 33.3%> 35.3% 22.2%< 23.5% 22.2% 20.6% 25.9%> Matures 10.3% 6.9%< 27.6% 41.4%> 55.2% 27.6% 6.9% 27.6%> Inside the Minds of Millennials to Matures Generational 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 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%> Buy regardless of reputation “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 Matures Packaging 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 (no refrigeration 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 = Reality Non-eco-friendly packaging Single-serve anything Products with excessive wrap Electronics and toy packaging Anything packed in styrofoam Heavy, hard plastic packaged items or bottles Water bottles Individual snack packs Anything not made of recycled Materials Anything that can’t be recycled Asian packaging 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. Wannabees Naming 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 for Sustainable 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 for Sustainable 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 Matures Generational 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 ‘09 83.8% 87.5% 46.3% 50.0% 45.0% 33.3% 16.7% 70.0% 62.5% 8.3% 53.8% 54.2% GenXers 56.5% 65.4% 47.8% 46.2% 43.5% 30.8% 34.8% 15.4% 91.3% 57.7% 34.8% 15.4% 56.5% 50.0% Boomers 70.6% 96.3% 52.9% 51.9% 40.1% 55.6% 22.2% 50.0% 81.5% 22.2% 64.7% 77.8% 46.4% 55.2% 46.4% 69.0% 53.6% 69.0% 24.1% 67.9% 75.9% 25.0% 20.7% 53.6% 48.3% Matures Generational Marketing/Branding Strategies 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-driven More avoid buying from companies with a bad reputation Trust friends - not companies Purchase decisions more price-driven than previously Believe strongly in the ecoimpact of product packaging Believe in eco-packaging and its impact on the environment Want and value information in order to make an informed purchase decision The only generation that might pay more for eco-friendly packaging. Lifestyle/health orientation More and more assess and choose products based on e-friendliness Want and value information in order to make an informed purchase decision Now, price is more important to them Women - 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 ads Lower price Friend’s recommendation Trying it TV/print ads Lower price Friend’s recommendation Trying it TV/print ads Articles, TV news spots Lower price TV/print ads Friend’s recommendation Trying it TV/print ads Articles, TV news spots Lower price TV/print ads Friend’s recommendation Trying it Generational Marketing/Branding Strategies for Sustainable 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 for Sustainable 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 for Sustainable Success All Generations Your 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. 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 for Sustainable 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 for Sustainable 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 eraymond@sagegrp.com or 612.321.9897. Blog: www.supersageme.com LinkedIn: www.linkedin.com/in/elinraymond Twitter@ElinRaymond Presentation posted on www.sagegrp.com