Consumers v.

Business:
Crossing the Green Chasm
JoAnna Abrams John Burshek Mindclick Group

Are Consumers There?
Do they know where you are?

1928

2004
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PROPRIETARY & CONFIDENTIAL

Over 60% Are Believers
And they account for $522 Billion in discretionary spending:
Market Size Total Annual Expenditures: $3.3 Trillion* Discretionary Expenditures: $522 Billion*

Enthusiasts Active Awares

Alarmists

Concern for Global Warming

*Source: US Dept of Labor Statistics 2005

Passive Awares

Indifferents

Non Believers

Importance Beliefs to Reduce Global Warming 3 Source: © 2008 MindClick Consumer Global Warming Monitor™ 3

PROPRIETARY & CONFIDENTIAL

Consumers Are Engaged Regardless of Beliefs

Enthusiasts Alarmists

% Taking “Green” Actions

Passive Concerns Indifferents NonBelievers

Active Concerns

6 -7 green actions

10-11 green actions

Average Number of “Green” Actions
Source: © 2008 MindClick Consumer Global Warming Monitor™

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PROPRIETARY & CONFIDENTIAL

Proven By Their Actions
70 60 60 50 40 30 20 13 10 0
Recycled paper, glass and plastic Installed energy efficient lights/bulbs Washed clothes in cold w ater Sw itched off Recycled electronics at technological night w aste products Received statem ents online Reduced bottled w ater/single serve drink purchases Sw itched to re-usable bags for grocery shopping Adopted Reduce, Reuse, Recycle approach for fam ily Com posted Calc envir footprint

58 49 44 43 36 35 31 26

4

Action/Product can be Mass Market Successful (36%) Action/Product can be Niche Market Successful (15%) Current U.S. Market penetration of the Internet

Source: © 2008 MindClick Consumer Global Warming Monitor™

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PROPRIETARY & CONFIDENTIAL

And Their Purchases
70 60 50 40 30 20 10 0
Purchased Purchased in Purchased higher bulk vs single produce from concentrate serving farmer's laundry market or detergent locally grown outlets Purchased organic cleaning supplies Purchased organic Milk Purchased organic health and beauty products Purchased a new vehicle that is more fuel efficient Purchased organic clothing, towels, sheets, etc Purchased a hybrid vehicle

37

36 32 19 19 15 9 6 1

Action/Product can be Mass Market Successful (36%) Action/Product can be Niche Market Successful (15%) Current U.S. Market penetration of the Internet
Source: © 2008 MindClick Consumer Global Warming Monitor™

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PROPRIETARY & CONFIDENTIAL

Engaged--Despite Lack of Belief In Impact
Only 17% believe what they’re doing is making a difference!

Source: © 2008 MindClick Consumer Global Warming Monitor™

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PROPRIETARY & CONFIDENTIAL

And Willing To Go Farther
Will consumers respond to simple yet radical ideas and concepts? They say YES!!
To reduce waste and take care of the environment, 55% are highly likely to switch to another milk brand that offered reusable glass bottles. 44% are highly likely to purchase coffee from a different brand than their usual if it offered a reusable mug program vs. disposable cups.

Source: © 2008 MindClick Consumer Global Warming Monitor™

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PROPRIETARY & CONFIDENTIAL

Regardless of Belief In Global Warming
• Why are you likely to purchase coffee from Brand X based on a reusable mug program?
– – – – – – – – “...shows the company is taking global warming seriously...it gives every day people something they CAN do easily. There would be no excuse not to make that little bit of effort to carry your mug.” “Sounds like a good initiative, even though i don't buy into all this global warming mumbo-jumbo, i still like to do things that are good for the environment.” “Don't give a crap about recycling, but it creates a bond between all the customers and the staff at Brand X.” “better for the environment and easier on my conscience” “i like their idea and their initiative. its nice to see a company go out on a limb a bit to help the environment” “Not because it's reusable or earth friendly, but because it sounds like a good program assuming that there is NO extra cost to the consumer.” “Why not, we drink out of coffee cups in restaurants that have been used before, what's the difference? AND, of course it would create less garbage!” “sounds cool and very customer-oriented on top of caring for the environment” 9 9

Source: © 2008 MindClick Consumer Global Warming Monitor™

PROPRIETARY & CONFIDENTIAL

Consumers Believe We’re All Accountable
Consumers hold government, business and individuals equally responsible for changing behavior, habits and practices :

Source: © 2008 MindClick Consumer Global Warming Monitor™

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PROPRIETARY & CONFIDENTIAL

And Don’t Believe Business Is Delivering
Only 16% believe that businesses are working to address the problems of global warming.

Source: © 2008 MindClick Consumer Global Warming Monitor™

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PROPRIETARY & CONFIDENTIAL

Why The Disconnect?
“Green” terms are failing to connect with consumers.

Source: © 2008 MindClick Consumer Global Warming Monitor™

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PROPRIETARY & CONFIDENTIAL

Too Much Jargon
All the consumer “gets” in this ad is: Another place on the coast to live. The rest . . . confusion.
Homes will truly “fit” here, blending ecologically and naturally into the unmatched pristine setting and will be built of concrete (www.polysteel.com) with sustainable, energy-efficient designs and the newest ecodensity™ concepts.

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PROPRIETARY & CONFIDENTIAL

And Lack of Innovation
Slapping A “Green” Label On An Existing Product Doesn’t Fool Anyone

Go “green” this summer! Ride any of these ZEROemission vehicles & have fun reducing your carbon footprint!

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PROPRIETARY & CONFIDENTIAL

The Great Green Chasm

Expectations vs. Beliefs
66% Believe Business Needs to Change 77% Engaged in “Green” Activities/Purchases 16% Believe Businesses Are Doing so 40% Don’t Believe Certified, Sustainable, Carbon Neutral Green Labels/Minor Product Changes
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PROPRIETARY & CONFIDENTIAL

Actions vs. Attitudes Language vs. Jargon
Reduce, Reuse, Recycle Innovation, Simple, Easy

Consumer “Green” Concepts vs. Business “Green” Concepts

Is Anyone Getting There?
While differences in awareness, image and influence exist in consumer’s minds between companies, NO company or product is a real overall leader:

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PROPRIETARY & CONFIDENTIAL

Toyota & Whole Foods

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PROPRIETARY & CONFIDENTIAL

Bridging The Chasm
Push the envelope on product development and innovation and see how far your target audience is willing to go Position/package based on understanding the “green” perspective of your target audience

Create “green” messages that are understandable, believable, trustworthy and relevant

Be mindful of balance between delivering basic expected benefits and “green”

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PROPRIETARY & CONFIDENTIAL

MindClick’s Sustainability Practice
Designed and created to give companies a definitive understanding of the success potential of current green initiatives. Provides a competitive positioning map of a company’s green initiatives against primary industry competitors. Answers the question, is your company a true leader or simply riding the wave of changing consumer’s behavior and attitudes? Establishes a benchmarked protocol for testing creative messaging, advertising and other marketing communication to maximize effectiveness.

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PROPRIETARY & CONFIDENTIAL

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