Thursday, May 21, 2009

The Hartman Group, Inc.
Copyright © 2009
5 Tips To Successfully Market

Sustainable Brands…
…In A Downturn Economy
5 Tips to Successfully Market Sustainable Brands | THE HARTMAN GROUP, INC. | May 2009 | Sustainable Industries
Thursday, May 21, 2009

The Hartman Group has a Deep Well of Consumer Insights in
Sustainability
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The Redefinition of Quality


Generated From a Consumer-Centric Approach
Qualitative Ethnographic Immersions

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• Over 150 hours of consumer interviews

 In-depth interviews in homes, social network
parties, consumer photo journaling
 Observation of sustainability activities
• Field locations
 In 2007: Chicago, Raleigh, Boston, Newark, Los
Angeles, Seattle
 In 2008: Columbus, Dallas, Seattle
Quantitative National Survey

• Custom online survey; sample size 1,600, nationally
representative of US population
• Conducted January 2007 and in September 2008
• Additional teen (14-17 years of age) survey in 2008
• Customized category reports

Despite the Economy…
• Consumers are continuing to purchase sustainable products despite the

economic crisis
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• Consumers are not abandoning their interest in quality experiences

» The consumer’s redefinition of quality has been a well-documented ongoing
trend for over a decade
Base: Consumers inside the World of Sustainability (n=1,662)

Source: Sustainability 2008 Survey, Sept. 2008

Despite the Economy…
• Consumers are continuing to purchase sustainable products despite the

economic crisis
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• Consumers are not abandoning their interest in quality experiences

» The consumer’s redefinition of quality has been a well-documented ongoing
trend for over a decade
Base: Consumers inside the World of Sustainability (n=1,662)


Ultimately, Consumers Believe that Their Purchase
Decisions Matter More Than Ever Before
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73%
56%
Making purchase decisions is an effective way for me to express my values
36% Total
Core
Mid-level
Periphery
Bar 7
Bar 8
2007 Sustainability Survey (n=1,489 consumers within the World of Sustainability)
Which Has a Greater Impact on Society?
39%
18%
My purchasing decisions
42%
65%
My voting decisions
19%
17%
Involvement in local community
Inside Sustainability World

Outside Sustainability World
Bar 3
2008 Sustainability Survey (n=1,856 total consumersBar 4
and 1,662 within the World of Sustainability)
Outside
5 Tips to Successfully Market Sustainable Brands Bar 8
| THE HARTMAN GROUP, INC. | May 2009 | Sustainable Industries

Know That Consumers Have Differing Levels of Passion
and Intensity with Regard to Sustainability
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29% can identify a sustainable company

25% can identify a sustainable product
Source: Sustainability 2008 Survey, Sept. 2008 (n=1,856)


Paul – A Periphery Consumer
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Learns most information about sustainability-related

concerns from talk shows or the local news
Skeptical about claims that human behavior is
causing global warming
Has been a consistent recycler since the city made
curb-side pick-up available (because it saves him money on
his garbage bill!)
Believes that eco-friendly food products are too expensive, but
will purchase the green versions of a product when it is on
sale
Gas prices would have to reach $5/gallon to consider taking the
bus or sharing a ride to work
Just bought an energy efficient dishwasher because of a
rebate

A Periphery
Consumer’s Pantry

Katie – A Mid-level Consumer
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Concerned that natural resources will be depleted

when son gets older
Tries to buy refillable food containers both to save

money and prevent wasteful packaging
Uses reusable canvas bags for grocery shopping out of concerns that
plastic and paper bags require more energy to produce and recycle (it
doesn’t hurt that she saves money with each bag too)
Shops at a large national grocer because prices are affordable and it’s
close to home, but frequents a natural food store for produce
Dislikes how national chains are “taking over” mom-and-pop businesses
and frequently eats at local eateries and coffee shops to support the
community
Purchased hardwood floors from a local, family-owned bamboo
importer

A Mid-Level
Consumer’s
Refrigerator

Marilyn – A Core Consumer
Believes that real, substantive change must

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occur at a systemic level if we are to solve the

world’s challenges
Distrustful of big companies and retailers, and
always looks online to investigate ownership
Only buys Fair Trade coffee due to concerns
about economic equity in other countries
Shops at farmer’s market and also receives a weekly Community
Supported Agriculture (CSA) box
Takes the bus to work at least three times a week
Composts food scraps and yard waste
Chose reclaimed wood flooring, recycled plastic countertops for home
improvement despite the significant price premium
Most new children’s toys she buys are locally crafted wooden toys
Uses rain water barrels to water her garden

A Core
Consumer’s Pantry
and Bathroom

Consumer Segments have Differing Key Purchase
Criteria
Core, Mid-level and Periphery Sustainability consumers are drawn to

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different attributes of products, settings and services.
Personal benefits: Take small steps: Way of Life:

“If it makes sense” “Do the right thing” “Live your values”

5 Tips for Marketing Sustainable Brands
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1. Link your product or service to a personal consumer

benefit if possible

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benefit if possible
2. Speak to consumers using their own words to
describe sustainability

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benefit if possible
3. Understand that sustainability isn’t just about
environmental concerns

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benefit if possible

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benefit if possible
4. Tell consumers the story behind your sustainable
product

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benefit if possible
product

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benefit if possible
product
5. Connect “value” with sustainability in the current
economic downturn

Consumers Need to See a Personal Benefit to Initially
Act on Sustainable Aspirations
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A “Constellation of Values” Trigger Consumer
Interest in Sustainability
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A “Constellation of Values” Trigger Consumer
Interest in Sustainability
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Consumers Define Sustainability in a Multitude of
Ways
76%
Ability to last over time
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55%
Ability to support oneself (self-reliance)
44%
Conserving natural resources
44%
Recycle, reuse, reduce
35%
Responsibility
33%
Environmentally friendly
32%
Economic viability
25%
Responsible farming methods
23%
Green
22%
Reducing carbon footprint
17%
High quality
12%
Humane treatment of animals
12%
Fair trade
12%
Simple living
11%
All natural
11%
Organic
9%
Connecting with others
7%
Local
6%
Q13: “The word ‘sustainability’’ may mean different things to
Social activism
different people. What does it mean to you?”
4%
Base: Consumers familiar with the term “sustainability” (n=151)
Reduction of meat consumption

Consumers Define Sustainability in a Multitude of
Ways
76%
Ability to last over time
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55%
Ability to support oneself (self-reliance)
44%
Conserving natural resources
44%
Recycle, reuse, reduce
35%
Responsibility
33%
Environmentally friendly
32%
Economic viability
25%
Responsible farming methods
23%
Green
22%
Reducing carbon footprint
17%
High quality
12%
Humane treatment of animals
12%
Fair trade
12%
Simple living
11%
All natural
11%
Organic
9%
Connecting with others
7%
Local
6%
Q13: “The word ‘sustainability’’ may mean different things to
Social activism
different people. What does it mean to you?”
4%
Base: Consumers familiar with the term “sustainability” (n=151)
Reduction of meat consumption

Consumers Describe Sustainability Using Proactive,
Positive Language and Imagery
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Hope
Connection
Simple Living
Authenticity
Control
Care/Nurturing
Local
Community
Healthy

Opportunities to Engage Beyond “Green”
85%
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Provides quality products

79%
Provides safe working conditions for its employees
77%
Sells products/services at low prices
76%
Tries to reduce waste and pollution
76%
Tries to minimize the environmental impact of its production
75%
Produces and distributes products in an energy-efficient manner
72%
Provides good wages and benefits to its workers
71%
Avoids inhumane treatment of animals
70%
Tries to reduce the use of non-renewable resources
66%
Takes steps to reduce its carbon footprint
63%
Avoids unnecessary packaging
62%
Uses green building techniques in its manufacturing and facilities
61%
Represents the principles I agree with
54%
Maintains supportive relationship with local community
45%
Ensures the best possible return to its shareholders
Top 2 Box*
*Top 2 Box based on 5-point scale ranging from “Very Unimportant” (=1) to “Very Important” (=5)
Q10/Q11: “When deciding which product/service to purchase, how important is it that the company that produces the product/service……?”
Base: Significant shoppers inside the World of Sustainability

85%
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79%
77%
76%
76%
75%
72%
71%
70%
66%
63%
62%
61%
54%
45%
Top 2 Box*

85%
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79%
77%
76%
76%
75%
72%
71%
70%
66%
63%
62%
61%
54%
45%
Top 2 Box*

85%
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79%
77%
76%
76%
75%
72%
71%
70%
66%
63%
62%
61%
54%
45%
Top 2 Box*

85%
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79%
77%
76%
76%
75%
72%
71%
70%
66%
63%
62%
61%
54%
45%
Top 2 Box*

85%
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79%
77%
76%
76%
75%
72%
71%
70%
66%
63%
62%
61%
54%
45%
Top 2 Box*

85%
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79%
77%
76%
76%
75%
72%
71%
70%
66%
63%
62%
61%
54%
45%
Top 2 Box*

85%
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79%
77%
76%
76%
75%
72%
71%
70%
66%
63%
62%
61%
54%
45%
Top 2 Box*

85%
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79%
77%
76%
76%
75%
72%
71%
70%
66%
63%
62%
61%
54%
45%
Top 2 Box*

Product Narratives Heighten Quality Cues
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It's important for me
It's important for me to know whether the milk I buy comes from
When I think of food quality, I only think of how the product looks, taste
It's important for me to buy meat and poultry that have
When I think of food quality, I only think of how the product looks, tas
I trust th
It's important for me to b
2007 Sustainability Survey (n=1600). Shows respondents who “agree”.

Timely Opportunity for Sustainability
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A new value
paradigm is
emerging…
Price + Quality (+ Utility)

= Value
Utility =
no waste and no
excessive
consumption

Greenwashing is More of a Media Issue than a
Consumer Issue: Small Steps Count!
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Consumer Reactions to Large Company’s Environmentally Friendly

Claims (By Sustainability Consumer Segment)
Total 8% 74%
Core 20% 61%
Inner Mid-level 6% 79%
Outer Mid-level 5% 75%
Periphery 6% 72%
0% 23% 45% 68% 90%

Completely true Mostly true
Q27. When a large company claims that its products or its manufacturing processes are environmentally friendly, what is your initial reaction?
The company's claim is...” Base: Consumers inside the World of Sustainability who responded to this question (n=1,521; 226 Core, 556 Inner
Mid-level, 464 Outer Mid-level, 275 Periphery). Source: Sustainability 2008 Survey, Sept. 2008.

Key Sustainability Findings
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Consumer awareness has increased with industry and media attention

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Many companies view sustainability too narrowly as just “green”


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“Responsibility” is the new consumer platform for “good companies”


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Companies need to stay oriented to consumer definitions (hope, connection,
care, control, etc.), not industry definitions, of “sustainability.”


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Sustainability is a marker for quality and can be a tie breaker in a purchase
decision


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decision
The current economic downturn is not changing most sustainable behaviors, but
consumers are making more considered decisions and tradeoffs in less essential
categories


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decision
categories
Companies need to “open up” the business for direct consumer input and
dialogue as well as transparency about company processes, values, etc.


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decision
categories
Companies need to “open up” the business for direct consumer input and
dialogue as well as transparency about company processes, values, etc.
Consumers are seeking narratives and storylines regarding sustainable practices
and the people and places behind sustainable products

Today’s presentation is based on the report…
Copyright © 2009
Sustainability: The Rise of

Consumer Responsibility
The definitive roadmap plotting
consumer behavior and purchases in
the new culture of sustainability and
adjusting to new economic realities
For more about this report, visit

The Hartman Group website:
www.hartman-group.com

Thursday, May 21, 2009

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The Hartman Group, Inc.

5 Tips To Successfully Market