Earthsense: LOHAS and LOHOE Complementary Concepts

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LOHAS and LOHOE; How Health & Sustainability is Complemented by Hedonics or Economics …

LOHAS and LOHOE; How Health & Sustainability is Complemented by Hedonics or Economics
When 93% of the population is not included in a definition – you’ve essentially said “no” to the adoption of your product to the mass market. Additionally, you’ve made the fringe so elitist that the only ones responding to the greater purpose are those who can identify with the movement.

Earthsense takes a common sense approach to sustainability. We believe there is a little green in everyone, and we are certain that the key is in identifying those attributes that make a product or service desirable without muddying the waters with political or lifestyle philosophies that can alienate people who do not feel compelled to join the cause.

In this enlightening session, Earthsense will share research from the most comprehensive database of consumer behavior on green: Eco-Insights. We’ll share the why behind the buy – comparing and contrasting product categories to give you the background you need to create compelling product messaging that appeals to the masses, not just those who already drank the “green kool-aid.”

Presented by: Wendy Cobrda, President & Co-Founder of Earthsense

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  • Life Liberty and the Pursuit of Happiness – Thomas Jefferson (Core of our culture)
  • Demographics can help sharpen the target, when we look at specific products, rather than premium price payers in general. Not surprisingly, for the 22 products we tested in spring 2009, we found that income was a useful predictor – but not necessarily sufficient. Age, which correlates with income helps a bit, of course. Here’s an example for gender, for a subset of ten of the products – you see that Men are at least 20% more likely than women to pay a premium for their granola bars, paper towels and MP3 players, for example, while women were 20% more likely than the guys to pay a green premium for fresh poultry, laundry detergent, lotion for their skin or their car. The message here is to model to optimize your target, to distinguish where distinct profiles can be created among likely buyers whose taste may run green….or conventional. NOTE: A product had a gender skew if its indices were outside the range of 90 to 110. Example: For crackers the indices were 96-104; for granola bars, 83 (women) to 118 (men); for pet food, 98 to 102; for poultry, 86 (men) to 113 (women).
  • To get consumers to understandPoints:Refuse: Barriers are price premiums, politicization of issues, preachy/controlRejuice: Rest: Redreaming the dream – reset expectations of the product to how its used by consumers, to the importance that consumers bring to your brand.
  • To get consumers to understandPoints:Refuse: Barriers are price premiums, politicization of issues, preachy/controlRejuice: Rest: Redreaming the dream – reset expectations of the product to how its used by consumers, to the importance that consumers bring to your brand.

Transcript

  • 1. HowHedonics & Economics are the natural complement to LOHAS
    (Bringing sustainability to the masses by thinking like a consumer!)
  • 2. 2
    Sustainable consumption?
  • 3. 3
    Hedonics
    PSYCHOLOGY studies focusing on desire for pleasure and the avoidance of pain; happiness
    PHILOSOPHY theories surrounding ethics of seeking individual pleasure at the expense of the well-being of others
  • 4. 4
    Eudaimonics:
    contentedness,
    purpose & meaning,
    ‘raison d’etre’
    Hedonics:
    temporal feelings, more positive feelings than negative
  • 5. 5
    ...think I’ll buy the chocolate mocha madness ice cream because …it is cold and creamy and chocolate – it tastes so good!
    ...think I’ll buy the chocolate mocha madness ice cream because …Ben & Jerry’s is such an environmentally sensitive company.
    OR
  • 6. The Dimensions Framework
    Earthsense ©2010 All rights reserved.
    6
    LOHAS
    Attitude
    Behavior
  • 7. Dimensions
    Strivers
    16%
    Believers
    15%
    Enthusiasts
    7%
    HIGH
    CORE
    Habitual
    4%
    Skeptic
    24%
    Selective
    11%
    MEDIUM
    ATTITUDE
    RIM
    Detached
    18%
    Ambivalent
    1%
    Practical
    4%
    LOW
    LOW
    MEDIUM
    HIGH
    BEHAVIOR
    Source: Eco-Insights 2008, 2009
    7
    7
  • 8. Market Shifts 2008 to 2009
    2008
    2009
    Strivers
    17%
    Believers
    16%
    Enthusiasts
    7%
    Strivers
    16%
    Believers
    15%
    Enthusiasts
    7%
    HIGH
    HIGH
    Habitual
    3%
    Skeptic
    30%
    Selective
    12%
    Habitual
    4%
    Skeptic
    24%
    Selective
    11%
    MEDIUM
    MEDIUM
    ATTITUDE
    ATTITUDE
    Detached
    12%
    Ambivalent
    <1%
    Practical
    2%
    Detached
    18%
    Ambivalent
    1%
    Practical
    4%
    LOW
    LOW
    Biggest change is the shift from “Skeptics” to “Detached.”
    LOW
    MEDIUM
    HIGH
    LOW
    MEDIUM
    HIGH
    BEHAVIOR
    BEHAVIOR
    Source: Eco-Insights 2008, 2009
    8
    8
  • 9. Earthsense ©2010 All rights reserved.
    9
    Fave Brand
    What’s in &
    not in it
    Psst! Try this!
    It’s easy
    Live long &
    prosper
    MONEY
    Love the taste
  • 10. LOHAS
    Manufacturing
    Source
    Packaging
    LOHOE
    Taste
    Price
    Brand
    Future Health
    Current Health
    Availability
    Lifestyle
    Ingredients
    Recommended
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17. 17
  • 18. 18
    Earthsense ©2010 All rights reserved.
  • 19. We don’t need no stinkin’ green premiums
    % Willing to Pay a Premium for Different Green Products
    Source: Eco-Insights 2008, 2009
    19
  • 20. Economics trumps desire…
    Earthsense ©2010 All rights reserved.
    20
  • 21. Green Premium Payer Profiles Differ by Product
    Source: Eco-Insights 2009
    21
  • 22. 22
    Earthsense ©2010 All rights reserved.
  • 23. 23
    Earthsense ©2010 All rights reserved.
  • 24. Earthsense ©2010 All rights reserved.
    24
  • 25. 25
    RETHINK
  • 26. 26
    Reduce
    Reuse
    Recycle
  • 27. 27
    ReFUSE
    ReTOOL
    ReSTYLE
  • 28. 28
    ResEarch
    Reinvent
    Reposition
  • 29. 29
    Earthsense ©2010 All rights reserved.
    LOHAS and LOHOE are not mutually exclusive concepts
  • 30. 30
    Earthsense ©2010 All rights reserved.
    Thank you!
    Earthsense.com
    GreenConfidenceIndex.com
    AsTheEarthSpins.com