Hoe duurzaamheid valoriseren?

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1 Hoe duurzaamheid valoriseren? Workshop 20 oktober 2011

2 +18 jaar ervaring in de business : marketing en business development op directie niveau in telecom : British Telecom, Mobistar en Telenet België en Orange UK in London. Zowel B2C als B2B ervaring. Focus op nieuwe groei markten en change management. P&L management, ontwikkeling van nieuwe business modellen. C-Change opgericht in C-Change adviseert bedrijven rond marktontwikkeling voor de nieuwe consument. We zijn continu op zoek naar producten en diensten die iets toevoegen aan het leven van consumenten. Daarom geven we nooit advies zonder te praten met de doelgroep, samen met onze opdrachtgever.

3 7 jaar ervaring in strategische merk- en communicatieplanning, zowel freelance als voor reclame agentschappen als Duval Guillaue, 10 Advertising en Internet Architects Medeoprichter van Studio Spark, een agentschap dat zich toespitst op de begeleiding van duurzame innovatietrajecten. Klanten zijn ondermeer Colruyt, Dorell (Maxicosi), Boss Paints, Toerisme Vlaanderen, Ovam, etc

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5 Wij hebben enkel merkenloze producten in het productassortiment, hoe maken we dan onze duurzame product/bedrijfsinspanningen zichtbaar aan de consument? Onze concurrenten bieden een gelijkaardig duurzaam concept aan, alleen zij krijgen dit verhaal blijkbaar beter verkocht aan de klant als wij. Waarom lukt dit niet bij ons? Duurzaamheid is een heel moeilijk te communiceren verhaal, hoe kan je dit vertalen in een attractief verkoopsverhaal?is er een manier om de consument op de winkelvloer te overtuigen van ons duurzaam alternatief? Wij werken enkel B2B, hoe kunnen wij onze klanten overtuigen onze duurzame producten toe te passen in hun producten? Wij doen heel wat inspanningen om onze processen te verduurzamen, ligt mijn klant hier wel wakker van en hoe kunnen wij deze inspanningen valoriseren? Wij overwegen een duurzaam product op de markt te brengen, maar met welke duurzame aspecten kan ik de markt vandaag overtuigen? Hoe maak ik onze duurzame ontwerpinspanningen zichtbaar aan de klant wanneer op het eerste zicht uiterlijk geen verschil is tussen 5 ons duurzaam product en dat van concurrenten?

6 Uw duurzame bedrijfsinspanningen valoriseren, hoe pakt u dit aan? - Agenda - 1. Introductie en aanvulling van uw vragen 2. Wat is duurzaamheid? Wie is geïnteresseerd? Resultaten uit onderzoek 3. En dan? Inspiratie en voorbeelden en ook een concrete handleiding 4. Verdere begeleiding : we zetten u op weg 5. Antwoorden op uw vragen

7 Meet the new consumer to unleash your full potential Innovation is not only about the idea it is also about how it is brought to the market 7

8 in a globally evolving context requiring re-thinking Limited energy and resource stocks Against backdrop of growing population with growing needs T/O cost 7 -> 9 billion people Food production x 2 4 billion people without access to drinking water 80% in cities From 850 million to 3 billion cars Energy demand x 40% 1 on 3Kwh from renewables 3l car is norm (or battery driven one?) Marginal thinking ends, new vision is required

9 From sustainability to business model innovation 1. Sustainability corporate ethics or even CSR Sustainability = preparing for future value creation 1/ How will sustainability significantly impact you? 2/ How can you significantly impact sustainability? 2. Production process changes, consumption process changes 3. From environmental driven focus to basic market development, taking macro economic and societal changes into account 4. Impact on different elements of the business and P&L : fundamental strategic thinking 5. Focus on opportunity = new paradigm

10 An emerging new consciousness Market leadership for those innovators who solve these unanswered market expectations What if I could maintain my quality of life while my financial means will most probably be decreasing? What if I could maintain my freedom & independence without owning an own car? What if I could reduce my energy bill without loosing comfort or investing heavily? What if I could really know if I can trust that brand claim while I know this company only wants to make a profit? What if I could reduce my environmental footprint without loosing in comfort? What if I could live more simply without giving up too much? What is this paradox for your product, how can you solve it? What does sustainability concretely mean for your customer of your product?

11 It starts by asking different questions 11 Consumer what ifs for your product/sector What if I could have the comfort of carpet with the benefits of hard cover floors? What if I could have a floor covering in my office that always looks new and clean? What if I could have a mattress that is always clean and in shape? What if I could have a greenhouse roof that is ascertained hail and storm resistant and captures solar warmth? What if I could renew my living room every year without having to buy a new couch? X Value chain dependencies and opportunities What if I could reduce/abolish my resource costs? (Umicore) What if I could create a recurring revenue stream by developing a modular, adaptable product? What if I could modernize my category using sustainability? What if I could reduce my sales price by abolishing my material cost What if I could use my industrial and process capacities to solve an unanswered market demand? What if there were an industry standard on sustainability (FSC)?

12 Meet the new consumer to unleash your full potential Innovation is not only about the idea it is also about how it is brought to the market 12

13 77% Belgians recognise themselves as a conscious consumer I am a conscious customer % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Totally disagree Disagree Rather disagree Rather agree Agree Totally agree Q: Ik zie mezelf als een bewuste consument 1045 resp, Mar11 Is this new?

14 For 68% this is more than before 68% of consumers are box-turners Buy more consciously than before 3% 11% 18% 39% 21% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Totally disagree Disagree Rather disagree Rather agree Agree Totally agree Q: Ik denk bewuster na bij wat ik aankoop dan vroeger (lees bij vb altijd de info op de verpakking) 1045 resp, Mar11 What does this mean?

15 59% declare a changed consumption behaviour I consume less/i consume differently Totally disagree Disagree Rather disagree Rather agree Agree Totally agree Q: Ik kan echt zeggen dat ik consu-minderen of consum-anderen ben (actief minder/anders gaan consumeren) 1045 resp, Mar11 What drives this?

16 Economic sensitivity Sustainability (environment & social) Conscious Consumer New values set Flat world of info Trust/ cynicism towards brands Cannot influence Socio-demos & profiles : who to target Can control indicator negative

17 Economic crisis still influences consumption in 2011 and is expected to keep doing so Economic sensitivity Will have to keep adapting behaviour due to economic crises Had to change behaviour due to economic crises Feel impacted by economic crises Totally disagree Disagree Rather disagree Rather agree Agree Totally agree 69% states to be impacted by economic crisis 60% state they needed to adapt their behaviour and will need to continue doing so over the next year(s) 1045 resp, Mar11 Implication : generally consumers will be more price conscious. Products that last longer, are repairable, modular, have an advantage

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19 This conscious consumption attitude is supported by an increasing new values set New values set Local involvement Consu-less, work less, Support good causes more % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Totally disagree Disagree Rather disagree Rather agree Agree Totally agree 58% are locally involved and willing to improve local quality of life 52% consume less, work less, because enough is more important than as much as possible 85% though give less to good causes - from other research, we know this is linked to the economic crises Implication : return(?) of basic values like authenticity, accountability, proximity,

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21 and an increasing distrust towards companies and brands Trust and responsibility Believe companies will fundamentally handle sustainability and make the difference Believe companies are rethinking hemselves under influence of crisis Believe companies & institutions will revert to old habits once crisis os over Trust companies to do what's right % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Totally disagree Disagree Rather disagree Rather agree Agree Totally agree 49% trust companies to do what s right but their trust does not run deep : 73% believe companies will revert to old habits once the crisis is over Only 34% believe companies indeed rethink themselves under influence of the crisis For 72% the solution for sustainability will not come from companies Implication : ethical messages tend to be accepted with cynicism : clarity about the shared benefit and win-win for all

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23 Concessionless sustainability

24 And a market for new products Just a better 24 & more efficient light bulb & more nice looking water filter & more powerful water saving toilet

25 The trust gap leads to a real feeling of lack of responsibility and hence lack of real relation with the brand Companies are not yet taking up their social and environmental responsibility as much as I do % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Totally disagree Disagree Rather disagree Rather agree Agree Totally agree 75% of consumers are experiencing the gap between their own actions and what companies are doing Implication : increasing distance between brands and consumers opportunity to explicitate what you are doing if you are doing it

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27 Marketing as largest threat to sustainability Sustainabilty as bad marketing tool % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Totally disagree Disagree Rather disagree Rather agree Agree Totally agree In the same series of questions, still 40% of consumers state sustainability Is just a way of asking more money and selling more Customer insight : next to the obvious lack of trust and relation at a higher level, demonstration is key

28 But also marketing as largest opportunity for sustainability 100% 90% Changed product or brand because of label % 70% 60% 50% 40% 30% 20% 10% 0% Totally agree Agree Rather agree Rather disagree Disagree Totally disagree 47% consumers changed product or brand because of presence sustainability label

29 Case study Retailer labeling Insight : Label paralysis : making sustainable choice more easy Latent market demand growing from social class 1-2 niche to mainstream Lack of available products lead to inertia to turn citizen-ship into consumer choices except for the do-gooders and eco-buyers Potential to become first mover and gain category leadership and market share by answering latent customer demand Competition from Jumbo and Plus Action : introduction Puur en Eerlijk brands : Across different categories with respectful sourcing as common denominator More expensive than other house-brands but quality Benefit for customer : easy choice, range, quality Benefit for Ahold : shift from cheaper house-brands to this new range of more expensive and premium house-brands with quality shine-off to brand

30 Marketing in all its facets Through the line coherence and authenticity Physical touchpoint CSR-HR = PR Be in the hygiene conversation, not the eco conversation (only)

31 Become the new normal

32 Against this background of distrust, the conscious consumer is an interconnected consumer Flat world of info Request transparent information on sustainability Information entails responsibility Consumers can influence companies because of internet % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Totally disagree Disagree Rather disagree Rather agree Agree Totally agree 78% believe they can have a real influence on companies thanks to the internet For 56% this also entails a larger feeling of responsibility leading to a significant request for transparent communication on how they produce and mitigate potential impacts on people and environment (88%)

33 And acts upon the information he receives Will actively share and recommend/discourage on the internet Will take action upon info Will look up info when heard something % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Totally disagree Disagree Rather disagree Rather agree Agree Totally agree 86% actively look up information when they heard something about a product/brand 83% will indeed act upon the information they found 51% will actively post on the internet and recommend/discourage purchase of products or brands Implication : consumers will talk to each other when they hear stuff Potential for on-line conversation management.

34 34 slideshare.net/bnox - conversity.be Conversation Manager, Steven Van Belleghem

35 Spontaneous mentions of sustainable brands What is your top 1 sustainable brand? (spontaneous) Colruyt Miele Max Havelaar Oxfam 3.81% 3.06% 4.78% 8.23% Ecover 13.39% Cannot mention sustainable brand 23% 0% 5% 10% 15% 20% 25% Only 23% name no brand, from 63% 2010 Big benchmark brands absolutely missing : chicken-egg problem Implication : Colruyt and Miele top of mind mentions indicative of consumer understanding of sustainability

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37 Declared priority level per sector My purchase choice is influenced by potential impacts on people and environment electro/ict housing (near)food travel work clothing banking 60% 58% 54% 50% 76% 75% 75% 0% 10% 20% 30% 40% 50% 60% 70% 80% Virtually standard in appliances, housing and food Large increase in food and banking Not one sector below 50% anymore Implication : already hygiene factor in some sectors condition to play, how do you make it differentiating : bust the sustainibility buzz and make it concrete

38 Sustainable purchase motivations 35% intrinsically motivated Suboptimal question % refractory Optimal question % interested Interest question % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Totally disagree Disagree Rather disagree Rather agree Agree Totally agree 80% would buy sustainably if full range and availability were present : 20% remain uninterested With an external motivator of better price or quality, a significant 92% reverts to sustainable purchasing, leaving only 8% real refractories The intrinsically motivated, buying sustainably even if more expensive or of lesser quality form 35% of the population, of which 8% are dark green

39 Significantly growing group of intrinsically motivated 33% intrinsically motivated 67% externally motivated Only if substantial benefit % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Totally disagree Disagree Rather disagree Rather agree Agree Totally agree

40 Willingness to pay more 30% intrinsically motivated WTP more % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 1-5% 5-10% 10-20% Meer dan 20% 69% is willing to pay more for sustainability 30% is willing to pay more than 5% more

41 Willingness to pay more increases with personal relevance WTP more if clear personal impact WTP more with transparent sust'y policy % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Totally disagree Disagree Rather disagree Rather agree Agree Totally agree 77% is willing to pay more if it is clear to them how their personal impact decreases on environment and people 63% is willing to pay more if the company has a transparently communicated sustainability policy

42 Segmentation New Consumer Functionals Economicall y restricted 16% Conscious customer Humvees 15% No concessions 32% Change Makers 17% Rich & conscious 20% Ideologicals Pragmaticals

43 17% 20% 31% 16% 15% Change makers Rich & conscious No concessions Economically restricted Humvees 37% intrinsically motivated IDEOLOGICALS 31% externally motivated PRAGMATICALS 31% un-motivated FUNCTIONALS Wallonia & Bxl 50+ Tendency slightly more women Not highest educations Flanders <29 Tendency slightly more men Highest educations No regional differences No genders differences Not highest educations Wallonia 30-50, 50+ Women Lower educations Flanders <29 Men Highest educations Outspoken willingness to pay more Still willingness to pay more No willingness to pay more

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46 First insight into barriers : feasibility gap Appliances Housing (Near)-food Travel and transport Work Clothing Banking and insurances Banking and insurances Work Clothing Travel and transport (Near)-food Housing Appliances => Can I have a real influence? Do companies help me with it? Customer insight : What difference can I make? Can I make the difference?

47 What drives this feasibility gap? Price first... Uptake barriers Think they are more expensive 42 Effective impact on environment unclear Unsure brand/company is sustainable Feeling having to choose between sustainability and quality Same product other brand offers lower price, promo Lack of offer Distrust claims Same product other brand claims something else Implication : strict sustainable positioning will lead to increased price perception, decreased quality perception and fundamental questions about your brand s claims not a position you want to be in

48 Reasons to buy sustainable Arguments with most leverage not contribute to child labour or unfair working conditions reduce my personal impact on environment consume less energy 39 products are better for my health 37 take up my responsibility 25 better quality and longer lifetime 20 cheaper 15 I like it when others see I do this A story of responsibility and guilt not a position you want to be in Focus on the direct benefit of its being sustainable (your answer to the what if question)

49 Buy more if Same price and quality as non-sustainable variant 50 Can be re-used 28 Designed to last longer 27 Made more efficiently 27 Transparent info can be found 25 Help me be sustainable 24 Presence of label 16 Clear information in store Implication: market is for grabs for eco-superior products a position you want to be in

50 How to build brand trust? Most important levers Offers good price/quality ratio Offers strong after-sales service Offers high quality products and services Puts customer first in product development Has satisfied employees Communicates in an open and transparant way Has a sustainability policy and produces sustainably Sells sustainable products Positive brand perception is in first instance driven by common sense consumer expectations Sustainability in all its forms can positively influence the brand Has a widely known brand Supports good causes Delivers strong financial results Classical brand trust drivers score least well Q: For me a company gets a better brand image when it

51 Goaloriented, pragmatic Realistic, financially pressured Conscious Consumer Selfempowere d Conscious Critical, involved, connected, informed Reversed power distribution : Show me what you have to offer me and I ll tell you if I let you seduce me

52 KMO typologie mbt duurzaamheid 54 KMO-typologie mbt. sustainability = ideologische betrokkenheid Sociale identiteit = instrumentele betrokkenheid Marketingtool = pragmatische betrokkenheid Economische voordeel = opportunistische betrokkenheid Maatschappelijke verplichting Bron : Sep-Okt11 B2B diepte interviews voor energieleverancier die groene stroom wil vermarkten

53 Inzichten die leiden tot argumenten 55 KMO-typologie mbt. sustainability Sociale identiteit Impact op milieu en mensen Innovatief karakter Marketingtool Authentiek doorheen value chain en alle gebruikte materialen Info voor MVO rapporten Eerste zijn op markt Economische voordeel Aanvoer grondstoffen Prijzen grondstoffen Maatschappelijke verplichting Bijkomend voordeel (eco-superior) Easy win / no brainer Bron : Sep-Okt11 B2B diepte interviews voor energieleverancier die groene stroom wil vermarkten

54 Uw duurzame bedrijfsinspanningen valoriseren, hoe pakt u dit aan? - Agenda - 1. Introductie en aanvulling van uw vragen 2. Wat is duurzaamheid? Wie is geïnteresseerd? Resultaten uit onderzoek 3. En dan? Inspiratie en voorbeelden en ook een concrete handleiding 4. Verdere begeleiding : we zetten u op weg 5. Antwoorden op uw vragen

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