Sustainability, Authenticity and Social

Sustainability, Authenticity and Social
Sustainability, Authenticity and Social
Responsibility in Consumer Purchasing Decisions
Green Business Conference
San Francisco, CA
November 2, 2005
Presented by:
Gwynne Rogers
The Natural Marketing Institute (NMI)
Presentation Data Source: NMI’s 2005 U.S.
LOHAS Consumer Trends Research Study
LOHAS = Lifestyles Of Health And Sustainability
™ An integrated consumer database which:
™ Measures the size of the LOHAS consumer group
™ Identifies LOHAS consumer attitudes
™ Explores environmentally conscious behavior
™ Measures the importance of corporate social responsibility
™ Determines consumer usage of LOHAS products and services, including
renewable power and many other related topics
™ Research project methodology:
™ Annual tracking study, now in its fourth year
™ Sample Size: 2,000+ U.S. households each year
™ Nationally projectable U.S. adult population
™ Online methodology
™ Accurate at the 95% confidence level to +/- 2%
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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Preview – The LOHAS Lifestyle
™ LOHAS consumers represent a segment of the population, roughly 1 in 4
consumers, with strong environmental and social values, and who base
many of their purchase decisions accordingly
™ For this segment, it’s all about lifestyle – they don’t just buy organic food or
energy efficient appliances, they’re active in all LOHAS-related product
categories
™ LOHAS consumers are attractive for a variety of reasons, including brand
loyalty, influence over others, and price insensitivity
™ LOHAS consumers are incredibly demanding – products that are “green”
are not enough; they need to feel, taste, and perform as well (or in many
cases better) than their conventional counterparts
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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NMI’s 2005 Consumer Segmentation Model
Identifies Four Distinct Segments in U.S. Pop
(% general population U.S. adults…)
INDIFFERENTS
12%
LOHAS
23%
LOHAS =
Almost 50xxx
Million
U.S. Adult
Consumers
CENTRISTS
27%
NOMADICS
38%
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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Summary Characteristics of The NMI Consumer
Segmentation Model
Segment
Size
Defining Characteristics
LOHAS
50
Million
Significantly affected by their concern for the
health of their families, the sustainability of the
planet, their personal development and the
future of society.
NOMADICS
81
Million
Tend to move from place to place with regard to
personal ideals, environmental platforms, and
the overall relevance of sustainability.
CENTRISTS
58
Million
An assemblage who congregate toward the
conservative end of the spectrum when it comes
to dealing with health and sustainability.
INDIFFERENTS
26
Million
Caught up in the day-to-day events; care-free;
not necessarily looking out for tomorrow.
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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Among LOHAS Consumers, 15 Million (7% of
Total Population) Are “LOHAS Leaders”
LOHAS Leaders are LOHAS consumers who also agree completely with:
“When given the choice to buy a product or service, they will usually buy from
companies whose values are most like their own,” and“I try to teach family/friends
about the benefits of purchasing environmentally friendly products.”
INDIFFERENTS
12%
LOHAS
16%
LOHAS Leaders
7%
CENTRISTS
27%
NOMADICS
38%
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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General LOHAS Attitudes
(% consumer segment stating they agree “completely” that they care about…)
95%
Protecting the environment
Use of renewable energy
sources
Using products made from
recycled materials
Socially responsible
business
43%
LOHAS
Non-LOHAS
92%
38%
81%
27%
80%
28%
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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“Sustainability:” Meaningful to Some,
Confusing to Others
(Q.7 - % consumer segment stating that to them, sustainability means…)
Balancing profit with concern about society and the
environment.
41%
25%
They use environmentally responsible materials to make
their products.
39%
19%
They make their products in an environmentally friendly
way.
27%
I’ve heard of the term “sustainability,” but really don’t
know what it means.
13%
It’s simply a marketing activity that has no real meaning
or benefit.
10%
13%
Don’t know - I’ve never heard of the term
“sustainability.“
LOHAS
Non-LOHAS
17%
22%
12%
23%
Indicates significant difference
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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Appeal of Socially Responsible Business and
Values
(% consumer segment stating they agree “completely” with the following…)
80%
74%
80%
I care about socially
responsible business
70%
60%
56%
56%
50%
40%
29%
30%
20%
9%
10%
0%
2003
2005
LOHAS Consumers
2003
28%
I will usually buy products
from companies whose
values are most like my
own
10%
2005
Non-LOHAS
Consumers
* Indicates significant difference
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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Good Corporate Citizenship Moves LOHAS
Consumers to Purchase
(Q. 11 - % consumer segment stating they agree completely with “Knowing that a company is mindful of their
impact on the environment and society…”)
68%
LOHAS
Non-LOHAS
52%
19%
15%
8%
…makes me more likely to
buy their products and
services
…makes me more likely to
buy their stock
7%
…does not change what I
do
All differences are significant
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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Comparison of Usage of Environmentally
Friendly Products Between LOHAS and NonLOHAS Consumers
(Q.25, 37, 52, 62, 80, 84 - % consumer segment stating they have purchased or currently own the following)
92%
78%
70%
68%
LOHAS
Non-LOHAS
65% 61%
53%
51%
48%
43%
36%
28%
15%
16%
Organic Clothing
Organic
Foods/Beverages
Compact Fluorescent
Lightbulbs
Natural Household
Cleaning Products
Natural
Foods/Beverages
Natural/Organic
Personal Care
Recycled Paper Goods
Water Saving Devices
Energy Efficient
Appliances/Electronics
5%
10%
6%
2%
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
11
6%
2%
Renewable Power
20%
21%
SR Mutual Fund
24%
Sheets or Towels
Made With Organic
Cotton
30%
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It’s Black & White:
Drivers to LOHAS Consumer Purchases
(Q. - % consumer stating that the following are important attributes for the respective products)
Food & Beverage
LOHAS
Personal Care
Non-LOHAS
72%
67%
50%
46%
37%
12%
USDA Certified
Organic
35%
14%
12%
8%
Fair Trade Certified
35%
30%
Locally Grown
Biodegradable
Not tested on
animals
USDA Certified
Organic
Electronics and Appliances
72%
50%
58%
38%
33%
9%
ENERGY STAR
Qualified
Conserves water
Contains recycled
content
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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Barriers to Environmentally-Friendly
Purchasing Among LOHAS and Non-LOHAS
Consumers
(Q. 15 - % consumer segment stating that the following limits their purchase of environmentally
friendly products)
LOHAS Consumers
Non-LOHAS Consumers
They are too expensive: 48%
They are too expensive: 58%*
I don’t know enough about them: 30%
I don’t know enough about them: 42%
I am not sure they are actually any better
for the environment: 35%
I am not sure they are actually any better
for the environment: 38%
They are not available at the stores/other
places I shop: 43%*
They are not available at the stores/other
places I shop: 27%
I don’t know of alternatives that are
environmentally friendly: 28%*
I don’t know of alternatives that are
environmentally friendly: 24%
They do not work as well as the products
I usually buy: 15%
They do not work as well as the products
I usually buy: 18%
* Indicates significant difference
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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Non-Consumptive Activities:
LOHAS Consumers Act and Speak Out
(Q. 18 - % consumer segment stating that they do the following do the following daily, weekly, or monthly)
LOHAS
Non-LOHAS
Propensity to Act
(Index of LOHAS:
Non-LOHAS)
Donate money to an environmental group
25%
7%
357%
Encourage my elected officials to pass laws to protect the environment
33%
10%
330%
Take your own bag to the grocery store
32%
12%
267%
Volunteer to clean up parks, trails, and neighborhoods
16%
6%
267%
Boycott a brand or company that has practices I don’t like
45%
19%
237%
Boycott a store that has practices I don’t like
40%
19%
211%
Compost kitchen scraps and garden waste
39%
21%
186%
Participating in household hazardous waste collection day
33%
18%
183%
Walk or ride your bike instead of drive a vehicle
37%
22%
168%
Carpool
24%
15%
160%
Take public transportation (bus, train, etc.)
19%
12%
158%
Recycle paper (e.g., newspaper)
84%
64%
131%
Recycle cans, bottles, jars, etc.
85%
72%
118%
Control thermostat to conserve energy
95%
83%
114%
All differences are significant
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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Summary Observations
™ For “green” or socially-oriented companies, LOHAS consumers are your
target:
™ They are driven by your products’ attributes
™ They are less price sensitive
™ They are the earliest adopters of new and innovative products
™ They try to influence others to purchase products
™ Getting LOHAS consumers’ buy-in requires:
™ Meeting both green and conventional product expectations
™ Being good corporate citizens
™ Providing substantive and credible information on all parts of your
product and business
™ The good news is that LOHAS product marketplaces are growing faster
than conventional counterparts
™ There is room for your business out there
Æ Seize the opportunity!
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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The Natural Marketing Institute
272 Ruth Road
Harleysville, PA 19438
Gwynne Rogers
Strategic Marketing Consultant
phone: 215-513-7300, ext. 227
fax: 215-513-1713
[email protected]
www.NMIsolutions.com
All materials herein are © 2005 by The Natural Marketing Institute. All rights reserved. Reproduction, publication (internal and/or external),
transmission, or other use of any of the within materials, including but not limited to graphics, data, and/or text, for any commercial or noncommercial purposes, is strictly prohibited without the prior express written permission of The Natural Marketing Institute.
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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NMI Corporate Summary
NMI is a strategic consulting, market research,
and business development company specializing
in the health and wellness marketplace.
Our dynamic capabilities focus on the well-being
of people and products, and the environmentally
and socially responsible sustainability of the
planet.
Since 1990, NMI has used its expertise to assist a
wide range of clients across many industries.
NMI principals have over sixty years combined experience in the
industry, including corporate management, international consulting,
new business start-ups, product concept ideation, strategic business
plan development, consumer packaged goods marketing, and market
research management.
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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The LCTD Summary
Content & Scope
™ 50 LOHAS-related attitudinal measures/consumer intensity variables
™ 16 LOHAS psychographic drivers/consumer behavior predictors
™ Product usage patterns (across 75+ product categories)
™ Over 160 brand users identified and measured
™ Sources of influence (36 magazines, 17 other specific media venues)
™ Membership across multiple organizations
™ Shopping patterns across 30 specific stores/other sources
™ Lifestyle measures
™ Complete demographics
™ Product/service category usage, importance of specific product attributes, usage of
specific brands, sources of influence across each of 9 specific LOHAS sectors
™ General population proprietary NMI consumer segmentation model utilized
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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The LOHAS Consumer Trends Database™ (LCTD)
Has Three Main Client Uses
Published Reports:
• 3 Sector-Specific Reports
Subscription Opportunities:
Customized Analysis:
• Proprietary Content
•Food & Beverage
• Target Identification
• Interaction Across Core Database
•Personal Care
• User Profile Analysis
• Customized Analysis & Report
•Transportation
• Product Driver/Attribute Analysis
• 2006 Subscriptions Now Available
• Corporate Social Responsibility Report
• Communications Strategy
• 40+ Pages Each
• Corporate Social/Environmental Strategy
• Hard Copy & Electronic Versions
• 1000’s of Others…
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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Use Prohibited
All materials herein are © 2005 by The Natural Marketing Institute. All rights reserved.
Reproduction, publication (internal and/or external), transmission, or other use of any of the within
materials, including but not limited to graphics, data, and/or text, for any commercial or noncommercial purposes, is strictly prohibited without the prior express written permission of The
Natural Marketing Institute.
Copyright Attribution Notice
If written permission for use of any portion of the within materials shall have been granted by The
Natural Marketing Institute, and if any portion of the said materials provided by The Natural
Marketing Institute shall thereafter be published in any form at any time to any third party, the
following notice must be prominently included in any and every such publication:
Source:
The LOHAS Consumer Trends Database
© The Natural Marketing Institute, 2005
Source: The LOHAS Consumer Trends Database™
© The Natural Marketing Institute, 2005
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