The Mindful Brand

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The Power to Make a Difference, presented by Millward Brown's Nigel Hollis at the 2011 SAMRA Conference.

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The Mindful Brand

  1. 1. The Power to Make a Difference SAMRA How strong brands and caring June 3rd 2011 consumer researchers can help make the world more sustainableThe theme of the 2011 SAMRA Conference is Daring to Care. Well I am a marketresearcher and I dare to care.I believe that business leaders, marketers and market researchers have theopportunity to play an incredibly important role in the future of humanity and theworld we live in. The opportunity is not only to make our businesses and brandssustainable, but to inspire sustainable behavior in our customers and consumers. 1
  2. 2. “Not everything that can be counted, counts… and not everything that counts, can be counted.” Albert Einstein 2But justifying my belief based on market research data is hard. Particularly for thequantitative researcher, examining behavioral and attitudinal data to prove that agreen agenda matters, brings to mind a pertinent quote from Albert Einstein:“Not everything that can be counted counts and not everything that counts can becounted.”There is little proof that a sustainable or green agenda matters to more than aminority of the general public today.Much of the data I see suggests that our most important stakeholder, “theconsumer,” the person who ultimately allows our companies to make a profit,provides a return to investors and pays our salaries, does not appear to care aboutthe environment, or their future. People may say they care, but their behavior statesotherwise. People care about themselves, their family and their immediatecircumstances. In practice, few are willing to change their behavior or pay apremium for a brand that is greener than their existing, preferred choice.In my presentation today, I want to demonstrate that our role as researchers inhelping to build strong brands is not incompatible with a sustainable future. In fact, itmay be one of the more important things we can do to make sure the future issustainable. And I want to briefly consider what that might mean for how weapproach our jobs. 2
  3. 3. Realizing the Full Benefits of Sustainability 3We all know the trends: population growth, consumption growth, resource depletion,water shortages, and climate change.These trends explain why so many chief executives of major consumer-facingcompanies are willing to change the way their companies do business. They knowtheir businesses must become more sustainable if they are to make profits in yearsto come. 3
  4. 4. Why businesses care about sustainability Sustainability today offers an opportunity to improve the bottom line through supply chain efficiency and reducing waste Sustainability tomorrow provides opportunities to help consumers address new needs and create value for both business and society 4Sustainability today offers an opportunity to improve the bottom line through supplychain efficiency and reducing waste.Sustainability tomorrow provides opportunities to help consumers address newneeds and create value for both businesses and society.Today, most major marketers in the Fortune 1000 have signed up to a sustainabilityagenda. For instance, UK retailer Marks & Spencer, publicizes its Plan A and hasrecently announced a goal to be "the world’s most sustainable retailer" by 2015.Such commitment is positive for society and the bottom line. Less waste means lessresources are required to make the same amount of stuff. And less waste meansbigger profits.In the U.S., Walmart, not content with sustainability, is now seeking to improve theeating habits of its shoppers by providing healthier packaged goods and cheaperfresh fruit and vegetables.Proctor & Gamble, Unilever and Nestle have publicly embraced the need to improvepeople’s lives beyond serving a functional need. Programs like Tide’s Loads ofHope, Dove’s Campaign for Real Beauty or Pepsi’s Refresh Project, are designed topromote the brand while espousing societal beneficial causes and are becomingcommonplace. 4
  5. 5. Unfettered sales growth sits uncomfortably alongside a sustainability agenda We currently use more than 1.5 times what the earth can replenish each year 5But laudable though these initiatives are, their ultimate objective is to grow sales.And unfettered sales growth is tough to reconcile with true sustainability.To be truly sustainable, growth needs to “meet present needs without compromisingthe ability of future generations to meet their needs.” In 2007, The Global FootprintNetwork estimated the ecological footprint of all humans on earth at 1.5. This meansthat humans were using up the earth’s resources 1.5 times faster than the earthcould replenish them that year. That figure has doubled since 1996.If we are to live within our planet’s means, we need to recognize that sustainabilityis not just about reducing waste in the supply chain; it is also about preventingexcessive and wasteful consumption. And that is a big challenge. 5
  6. 6. Maximizing the impact of sustainability initiatives The impact of production is often far less than the impact of consumption • The UK’s Environment Agency found the benefits of reusable nappies depends on how they are laundered Marketing often helps encourage excessive waste and confusion for marginal benefit • Failed products and green washing place both our brands and our future in jeopardy To maximize the impact of sustainability initiatives, we need to extend the appeal of greener products to a mass market • And that means overcoming a significant degree of consumer inertia 6The adoption of a sustainability agenda by a company is a good thing. Butenvironmental impact studies often find that the biggest issue is not poor productionpractices, but poor consumption practices.For instance, it is a common belief that disposable diapers or nappies are really badfor the environment compared to reusable ones. But the UK’s Environment Agencyfound that reusable nappies (diapers) could have more impact on the environmentthan the use of disposable products. The report concludes that “the impacts forreusable nappies are highly dependent on the way they are laundered.”Unfortunately, it seems that both options might be equally bad.When you think about it, marketing is not aligned with a sustainability agenda either.The waste involved in “growth marketing” is incredible. We launch new brands thatpromptly fail because they do not meet consumer expectations. We over-state thedegree to which our companies pursue sustainability. And we obfuscate issuesrelated to sustainability and green marketing in an attempt to gain competitiveadvantage. Actions like these result at best in marginal benefit today, while at thesame time undermining trust in our brands and our collective future.If we are to maximize the impact of our companies’ sustainability agendas, then weneed to find ways to make green choices more appealing to the mass market, notthe granola fringe. And that means marketing them effectively to overcomesignificant consumer inertia, not over claiming to maximize needless consumption. 6
  7. 7. What People Tell Us 7Businesses can have a vested interest in helping consumers develop moresustainable habits. But for this to happen, we need to understand wheresustainability fits in the consumer’s agenda. And unfortunately, consumers seem tobe somewhat less concerned about the future than are business leaders.(I will note immediately that one of the key issues is simply finding the rightlanguage to express what sustainability really entails. When it comes to surveyresearch, we often end up using bland descriptors like “environmentally friendly.”Sustainability and lessening our impact on the environment may be addressed bysimilar actions, but they are not the same thing.) 7
  8. 8. Even if people act on their beliefs, less than 1 in 3 are willing to pay more for environmentally friendly products Not important to Important to me and me, I will not pay I am willing to pay for it a little more for it Important to me but I do not expect to pay more for it SOURCE: Yankelovich Monitor USA 2009 8The data shown in here is from Yankelovich’s Monitor survey in the USA.Respondents were asked a number of questions about what was important to themin terms of buying environmentally friendly, organic and locally grown products.When it came to environmentally friendly products, the majority of people stated thatthis was important to them. Only 16 percent stated that it was not. However, whenasked whether they would be willing to pay a little more for environmentally friendlyproducts, only one in three agreed they would do so.So only a minority believe it is worth paying a little more for environmentally friendlyproducts. Even then, I have to question whether or not these people will followthrough on their stated beliefs. Much of the data I see suggests that motivations ofhabit, convenience and saving money often overwhelm people’s desire to buy“green” products or act more sustainably. For many people right now, the word“sustainability” is more a threat than anything else. The motivation to save theplanet is at odds with age-old motivations that have helped humankind become theall-consuming force it is today.Part of the problem is that simply stating that an alternative brand is green can becounter-productive. Tell people what they are doing now is “wrong,” and it triggersfeelings of guilt and defensiveness. Their automatic response is to reject the greenalternative: it won’t work, it’s too expensive or it’s fine for the granola crowd but notme. 8
  9. 9. Derived importance suggests consumers are even less swayed by green credentials Category Body Care Grocery Stores Cars Country USA UK USA UK Germany Japan Most Important Environmentally Friendly Number of strong green brands … 0 1 2 2 0 2 SOURCE: BrandZ 2009 9Of course, market researchers have long known that stated importance does notcorrelate directly with behavior. People want to believe well of themselves and theywant us to think well of them too. It is not so much that they lie about sociallysensitive issues; it is more that they tell us how they wish things were. Over theyears, researchers have developed many techniques to adjust for effects like socialdesirability. One approach we use is to derive importance rather than use statedimportance, by correlating attitudes against a metric we know relates to behavior,such as brand bought last or purchase consideration.Unfortunately, while derived importance is quick and easy to apply, it does notnecessarily help us make the case for sustainability or a green agenda. In categoryafter category in Millward Brown’s BrandZ study, statements like “make an effort tobe the most environmentally friendly brand” are found to be the least related tobrand loyalty. In categories where environmental concern is further up the hierarchyof importance, it is because one or two brands have taken the lead and addressedthat latent need.In Japan in 2009, a high proportion of people believed Toyota and Honda weremaking an effort to be environmentally friendly because they had publicized theircommitment, but this was not the case in Germany. Today, Toyota’s hybrid Prius isa highly successful car, not just in Japan, but around the world. Its success reflectswell on Toyota and leaves the German car companies scrambling to keep up. 9
  10. 10. There is a latent need waiting to be met by the right brand Companies should make it easier for me to do the right thing (environmentally friendly, eating right, etc.) SOURCE: Yankelovich Monitor USA 2009 10Ultimately, I believe that many people do feel concerned for the future of theenvironment, but they lack the motivation to act on that concern. They wantsomeone else to fix the problem. It is a latent need waiting to be met by the rightbrand.Here is some more data from the Yankelovich monitor in the USA. When asked toagree or disagree with the statement, “Companies should make it easier for me todo the right thing, like being more environmentally friendly, eating right, etc.,” 71percent agreed. There was little variation by education or income and Millennial’swere more likely to agree than older respondents.If a viable green brand does not exist, people have no alternative but to keep usingthe existing products. But if a company offers them a green alternative, they mayswitch. And therein lies the opportunity. If people believe that they are consumingthe wrong things, but arent willing or able to expend effort to remedy the situation,brands may be able to capitalize on this by doing the right thing on consumersbehalf, thus helping them follow through on their good intentions.The question is how best to seize this opportunity. If brands are to makesustainability into a competitive advantage and inspire their consumers to moresustainable behavior, then they must find ways of overcoming long-establishedbehaviors. 10
  11. 11. Purpose and Ideals Empower Brands 11Right now, we stand at a tipping point where it is not clear whether we can turnthings around and live within our planet’s means.What is clear, is that if we are to do so, we must take action quickly. And while itmay seem perversely counter-intuitive, the brands that are best positioned tochange consumer behavior may not be found among the plethora of new greenalternatives, but rather among the most well-known brands produced by leadingmultinationals.In the next section of my presentation I am going to explore how companies canhelp inspire consumers to be more sustainable by either building or leveragingstrong, trustworthy brands. 11
  12. 12. The Stengel Study of Best Brands for the decade ending 2010 • Qualified brands by: • Equity strength relative to competition • Equity growth over time • Equity stretch across markets and categories • Identified brands that consistently outperformed the competition in financial growth and value over time • Established Top 50 Best Brands ranking • Watch the video here 12Jim Stengel, the former global marketing officer of Procter & Gamble, has a newendeavor: The Jim Stengel Company, LLC. The mission of the Jim StengelCompany is to inspire brand and business leaders globally to rethink their marketingto achieve higher performance.Millward Brown Optimor has been working with Jim since he left P&G to create TheStengel Study of Best Brands. The study is the only one to quantitatively identify thebrands that have built the strongest emotional bond with consumers and thegreatest financial brand value growth over time. The study will be featured in Jim’sbook, Grow, which is due out in December 2011. 12
  13. 13. The Stengel Study of Best Brands – 2010These fifty brands have enjoyed phenomenal growth over the last decade. They have grownboth their emotional bond with consumers and their financial earnings. Superficially, it is notclear that there is any commonality between them. They come from a wide variety ofproduct categories, address very different needs and have very different positioning.But what this disparate set of brands do share is meaningful differentiation.Meaningful differentiation starts with the brand’s purpose. “Purpose” refers to the differencea brand intends to make in people’s lives. In order to be successful, a brand must resolvesome consumer need, want, or desire. A brand’s purpose may address a purely functionalneed, or it may go beyond that—and many of the Best Brands do go beyond that.Many of the Best Brands are empowered by their pursuit of ideals. An ideal is the higher-order benefit that takes a brand’s purpose beyond the functional benefits expected of aproduct category and allows it to deliver against higher-order needs—fulfillment, identity,affiliation, societal and environmental good. Often rooted in the brand’s heritage, an idealcreates a meaningful goal for the brand that aligns employees and the organization to betterserve customers. 13
  14. 14. Purpose makes a meaningful difference Pampers exists … Jack Daniels exists … Method exists … to help mothers raise to affirm each person’s to inspire a revolution in happier and healthier individuality and home cleaning and care. babies. independence. 14Of course, an ideal may not necessarily be directly related to a green or sustainableagenda. Proctor & Gamble’s Pampers, the 34th most valuable brand in the world, isdevoted to helping ensure babies are happy and healthy. In contrast, Jack Danielsexists to affirm its drinker’s individuality. But within the Best Brand portfolio, we findseveral brands where doing good is central to the brand’s purpose.For instance, Method, the U.S. household cleaning products company, is dedicatedto inspiring a healthy revolution in home cleaning. Method created a new householdcleaning segment by combining product performance with a green, sustainableagenda. Their commitment is apparent throughout the company. For Method, thereis no compromise between performance and being green, as this quote from JoshHandy, Method’s Creative Director, suggests:“If we cant achieve a high-performing green product and packaging, then we justwont do it.”Alongside Method, we find companies like, Natura, the Brazilian personal carebrand, and Seventh Generation, another green cleaning brand in the U.S. Thepresence of brands like these confirms that doing good is not incompatible withgrowing strong brands and achieving strong financial results. 14
  15. 15. Conversion from familiarity to positivedifferentiation is key to supporting a price premium Higher Different opinion + More  + appealing e.g. Apples unique  e.g. Audis 4‐wheel drive e.g. the Starbucks   design experience "Different (in a good way)"*Familiarity defined as unaided awareness/bought/used last/ownedWhen we examine our BrandZ equity database, the Best Brands scorewell on a number of key metrics, but one combination of metrics standsout in particular. We call it Voltage, and it is a measure of the brand’spotential to command a price premium and attract new customers.The better a brand converts people from active familiarity with a brand--either using it or thinking of it spontaneously--to agreeing that it is onethey think highly of, that is more appealing to them and that is differentfrom other brands, the more likely it is that the brand will be able tosupport a price premium. Notably, the metric that describes thisconversion has a statistically significant relationship with the probabilitythat a brand will grow its value market share in the year following asurvey.In other words, brands that people think are different (in a good way) aremore likely to command a price premium and to grow value marketshare. The degree of differentiation required for a brand to grow andprosper will depend on the nature of the brand and category. The keyquestion to ask is whether a brand is different enough, given itscompetitive context. 15
  16. 16. Brands that are “different in a good way” shift the demand curve out Different (in a good way) High Average Low SOURCE: Millward Brown and IRI data 16This chart shows the results of a Millward Brown analysis of Voltage against IRIvolume share and price data. Better differentiated brands support the same volumeat higher prices.The Best Brands in our analysis don’t just sell more. They are able to charge morebecause they are meaningfully different. Meaningful differentiation is the essentialproperty of any successful brand. People choose brands that they believe offersomething more relevant and compelling than the competition. And maybe that ispart of the solution to the sustainability issue facing marketers. To grow profits weneed to focus on growing the value perceived in our brands. The more meaningfullydifferent people perceive them to be the more income we can generate from eachsale.The question is, can we make green credentials meaningfully different for the massmarket? 16
  17. 17. Sustainability is Not Incompatible with Business Success 17All our research data suggests that the more people trust a brand, the more likelythey are to be inspired to action by it. But today, green is not a badge of trust.Instead it is a reason for suspicion. Is that claim true? Will the product really work?And how much extra do I have to pay?With this in mind, let me introduce you to a Best Brand that has sustainability“baked-in” to its business and brand. In its own country it is a well-known andtrusted brand, one that succeeds in inspiring people to buy greener and moresustainable products. 17
  18. 18. Natura: a longstanding commitment to sustainability 18Natura is a Brazilian brand that was founded in 1969 by two guys with sharedpassions: cosmetics and people. In 1974, the company opted for a direct salesmodel using consultants similar to that of Avon. While this business model hasundoubtedly helped fuel the brand’s success in Latin America, Natura is alsocredited for embracing sustainability and the use of natural ingredients in itsformulas.In 1983, Natura began to produce and sell refills. This initiative resulted in asignificant decrease in the disposal of solid waste in the environment. And in 2007,the company put into practice the Carbon Neutral Program, designed to reduce andoffset all emissions of greenhouse gases (GHG). Since then, in spite of CAGR inearnings of nearly 20 percent over the last three years, Natura claims to havereduced carbon emissions by nearly 10 percent.Today, Natura aims to transform social and environmental challenges intoopportunities for business by espousing the Triple Bottom Line. The Triple BottomLine encompasses strong cash flow for good financial results, social impact throughgeneration of wealth for their consultants, and environmental impact throughencouraging use of refills, sustainable extraction and use of recycled and recyclablematerials. I have met with executives from Natura and can personally vouch for thepassion created by the corporate commitment to these goals. Nor has commitmentto social and environmental good detracted from the strength of the Natura brand.The philosophy behind the business practices may be well ahead of the generalconsumer mindset in Brazil, but people still appreciate Natura for its healthy andsustainable products. 18
  19. 19. How do these two brands compare? A strong global brand A strong regional brand Strong earnings growth based • Strong earnings growth based on on extension across product extension across product categories and countries categories and countries Strong social responsibility Strong social and credentials environmental The Campaign For Real Beauty responsibility credentials 6% bought last in Brazil 26% bought last in Brazil Good value positioning • Justified premium positioning 19While Natura might be a new brand to many of you, I would like to compare it to onethat may be more familiar.Unilever’s Dove brand is also one of our Best Brands. The appeal of this brand hasbeen successfully extended across product categories and countries to achievesignificant earnings growth over the last decade. At the heart of the brand is itscommitment to The Campaign For Real Beauty, which seeks to inspire women to becomfortable with themselves and to have confidence in their own unique beauty.Dove has been a significant brand in Brazil for some time. But in spite of the samedegree of familiarity and perceived performance on key category criteria, over fourtimes as many Brazilians who buy body care products claim that the last brand theypurchased was Natura, not Dove. Moreover, they are likely to have paid a higherprice for their purchases. In Brazil, Natura commands what we call a justifiedpremium positioning compared to Dove’s good value positioning. 19
  20. 20. Even if Natura’s customers are not interested in the environment, the brand does good by being good Made by companies  you can trust Are leading the way Made by companies that  behave responsibly  toward the environment Have recommended  to a friend Offer something different SOURCE: Millward Brown BrandZ 2010 20The data you see here explains why Natura can command both higher sales andpremium prices.74 percent are willing to agree that Natura is a brand they trust and 65 percentagree that it is a company leading the way. Moreover, a large proportion of Brazilianbody care consumers agree that Natura is scientifically advanced, keeps skin inbetter condition and offers a good range of products. These functional benefitsladder up to a strong emotional appeal.Global brands like Dove and Avon may be as well known as Natura, but they simplydo not inspire the same degree of passion. 54 percent of people claim to haverecommended Natura to a friend compared to 41 percent for Avon and 22 percentfor Dove. Overall, based on 2010 Voltage scores, Natura’s growth potential is overthree times that of Dove.To what degree does Natura’s sustainability commitment drive the brand’s appeal?It is certainly well-known that Natura espouses a green agenda. 64 percent ofpersonal care buyers in Brazil agree that the brand behaves in a responsible waytoward the environment. But is that a cause of Natura’s strength or the result of it? Iwould argue that Natura’s environmental credentials are not the key driver of thebrand’s success but supplementary ones. 20
  21. 21. Natura’s lead helps elevate the importance of being environmentally friendly Country Brazil USA UK Most Important SOURCE: Millward Brown BrandZ 2010 21Comparison with the same analysis in the USA and UK finds that trying to beenvironmentally friendly has far less importance in those countries. In the USA, itranks as the least important influence on purchase and in the UK ranks 14th out of15 attributes. To my mind, this suggests that Natura is influencing or activatinglatent needs in Brazil that have not been addressed in the other two countries.(Although the slightly higher ranking in the UK may reflect the presence of The BodyShop which has also espoused a more sustainable positioning.)Because Natura satisfies basic category needs as well as or better than thecompetition, being environmentally friendly then becomes the deciding factor inwhether someone chooses the brand or not. Without the functional credentials andtrust, Natura would not be the powerhouse it is today. Natura does good by beinggood. 21
  22. 22. Making “Green” Matter to the Mass- Market 22In many categories today, we find new brands dedicated to offering a moresustainable alternative to existing brands. The presence of small, growing brandsdedicated to a green, more sustainable agenda is undoubtedly a good thing. But aswe shall see, their impact is hampered by their lack of brand strength. Lackingawareness, credibility or resonance with the majority of consumers, green brandsoften struggle to make an impact. If their sustainability agenda is to really take hold,green brands must address these shortcomings.As brand marketers well know, building a brand is a process that takes significanttime and resources. For instance, it has taken Natura over 40 years to become thepowerhouse it is today. On the other hand, if more existing, strong brands were toadopt a true sustainability agenda, then the positive impact would not only begreater, but it would likely be far faster. Familiar, trusted brands can bring a greenagenda to people who otherwise would see it as a threat to their peace of mind.What is more, it helps ensure the sustainability of the brands themselves,positioning them for future success.In the next section of the presentation I want to use one specific product category inthe U.S. to examine the challenges facing less well-known green brands. One of themost interesting brand battles playing out right now in the U.S. is in a productcategory that most of us would rather avoid. Call them diapers or nappies, mostpeople would rather someone else had to deal with them once used. 22
  23. 23. Seventh Generation needs to improve awareness of what its diapers stand for % familiar with brand SOURCE: Millward Brown BrandZ 2010 23In the U.S., the category is dominated by two well-known brands: P&G’s Pampersand Kimberly-Clark’s Huggies. But over the last decade, a number of brands havebeen launched trying to take share from the established brands by offering agreener alternative.One of them, Seventh Generation, is one of our Best Brands and is best known as ahousehold cleaning brand, notably in paper products like toilet paper, tissues andtowels. In 2010, 42 percent of diaper buyers were familiar with the SeventhGeneration brand name and 24 percent agreed the brand behaved in a responsibleway toward the environment. But active awareness of the Seventh Generationbrand within the diaper category was low at 16 percent. If the brand is to make adifference and succeed in the diaper category, it needs to focus on the basics ofsales and marketing and improve its awareness among potential diaper buyers. 23
  24. 24. Seventh Generation needs to reframe perceptions of affordability % familiar with brand who think it costs more than they are prepared to pay SOURCE: Millward Brown BrandZ 2010 24But there is another hurdle that the brand must overcome. Seventh Generation alsoneeds to improve its affordability if it is to broaden its customer base. As we sawearlier, there is a general antipathy to paying extra for a product even if it isconsidered better for the environment. Whether it is perception or reality, manypeople believe Seventh Generation diapers are too expensive. Among those atPresence and not Relevance, 75 percent perceive the brand as too expensive. Formost of these people – close to nine out of 10 of them – that is the only “negative”they cite for the brand. Addressing perceptions of affordability would go a long wayto growing the value of the Seventh Generation brand in this category.How could Seventh Generation address this issue? They certainly should not lowerthe brand’s price by lowering margins in the hope of driving more volume. Thisstrategy invariably ends up lowering profitability. Instead, Seventh Generation mightuse cost control to lower the actual price and maintain margins, or it might try toreframe people’s perceptions of value. But “green” as it is typically presented isunlikely to provide the necessary reason—unless it can be turned into a messagethat resonates with a wider audience. 24
  25. 25. On its own, “green” is simply not a compelling motivation for buying a diaper top … Meet the needs of you and your baby, Are more comfortable for baby to wear than others, Unaided middle awareness, Is the most popular, Have a better range of nappies than other brands to suit the needs of your baby, Want to be seen buying, Allow your baby to move around more easily than others, Let your baby’s skin breathe better than others, Are brands that are setting the trends… bottom SOURCE: Millward Brown BrandZ 2010 25Why is “green” not enough to justify a price premium? Let’s have a look at the relativeimportance of the different attributes in our study in relation to their predicted brand loyalty.Of the 17 attributes included in our analysis of importance, “are less harmful to theenvironment” ranks last. Most important are attributes like “appeal to you more than otherbrands” and “prevent leaks better than other brands.” So even though 86 percent of peoplewho believe Seventh Generation diapers perform in an acceptable manner also agree thatthe brand is less harmful to the environment, this perception will only matter to consumer’sbrand choice if it can be coupled with something that has more motivational power. Motherswant a convenient solution to the poop problem. But Mothers also care far more about theirbabies well-being than that of the environment. They want to be sure the diaper theychoose will make their babies comfortable and content. If a brand can convince them that itis a good choice on these grounds then, all things being equal, green credentials might getthem to switch.If Seventh Generation is to make a significant impact in this category, it must first deliveragainst buyer’s core motivations and then seek to inspire people through its commitment toa green agenda. For the brand’s offer to be meaningful and valuable, it must resonate withthe target consumer. The brand must meet current needs as well as the existingalternatives and then turn its green credentials into an advantage.“Look! You get all this and it’s green too.”Seventh Generation has succeeded in other categories, as the company’s financial trackrecord indicates. They can also succeed in the diaper category–but it will take time. Andperhaps there is already another diaper brand well-positioned to make a big difference? 25
  26. 26. Which brand is better positioned to inspire people today? Made by companies you can trust Have recommended to a friend Help mothers raise  happy healthy babies Are made by companies trying to  make peoples lives better Made by companies that behave  responsibly toward the environment SOURCE: Millward Brown BrandZ 2010 26And that brings us to the other Best Brand in the diaper category, Pampers.Pampers’ mission to help mothers raise happy healthy babies is directly aligned withwhat consumers value most in this category. It is a mission that resonates withmillions of mums around the world.Decades of innovation have ensured that Pampers is seen as a credible functionalsolution, and decades of marketing have reinforced the belief that Pampers is botha good product and an appealing brand. Pamper’s Voltage score is nearly 40percent higher than that of Seventh Generation (and off a much bigger base).Of category users, 50 percent agree that they trust Pampers and 45 percent ofpeople claim to have recommended Pampers to another person compared to only 3percent for Seventh Generation. Of category users, 43 percent agree that Pampershelp mothers raise happy healthy babies, and 43 percent believe Pampers is madeby a company that is leading the way, even if only 15 percent believe it acts in aresponsible way towards the environment.So which brand is actually better positioned to do the most good? Pampers orSeventh Generation? With functional and emotional credentials already established,Pampers can choose to espouse a green agenda and make it successful. 26
  27. 27. Pampers’ social agenda can inspire people, so why not an environmental one too? “The mom blogger group was so pumped by the initiative that Mindy Roberts at The Mommy Blog …whipped up a donation widget. This will live on the Alpha Mom site from now until I at least raise enough money for 10,000 vaccines, or $500. Then I will personally match that amount with up to an additional 10,000 vaccines.” - Catherine 27And there is good reason to believe that Pampers could inspire people to moresustainable behavior, because the brand already inspires them to action in anotherarena. Catherine, a blogger at Alpha Mom, reports on Pampers’ mission toeradicate Neonatal Tetanus. The Pampers/UNICEF 1 Pack = 1 Vaccine programhas helped provide more than 100 million vaccines that protect moms and babies indeveloping countries from maternal and neonatal tetanus. As Catherine states, shewas so personally inspired by this program that she offered to personally matchother people’s donations to the program to the tune of $500. This is the sort ofpassion that a Best Brand can inspire when it takes a stand on something.It is not that Team Pampers ignores the need for sustainability. If you visit theirwebsite, you will find a section titled EcoNursery where “We envision a future whereless is more.” And it appears that Pampers may be experimenting with a partreusable diaper to compete with another green brand called gDiaper. If Pamperschose to launch such a product, the likely impact could be huge, particularly asPampers is well positioned to solve one of the major environmental issues withreusable diapers. With its sibling brand Tide, Pampers could surely inspireconsumers to launder a reusable diaper appropriately. The potential for Pampers todo good by espousing a more sustainable and environmentally friendly agenda isenormous. 27
  28. 28. The Role Consumer Researchers Can Play 28So what has all this got to do with market researchers? I would suggest it has a lotto do with us. It is our job to understand and articulate what consumers will need infuture, not just what they want now. And we have an important role to play inensuring effective behavior change and to reduce marketing waste.Market research is traditionally represented as “the voice of the consumer.” We aretaught to be unbiased and to let the data speak for itself. If we do that when itcomes to researching a green agenda, we are likely to believe many respondentswho blithely claim that they want to buy green products and are willing to pay apremium for them.But if we blindly accept people’s responses at face value, we risk leading our firmsastray. We may recommend new product launches, re-engineering products to begreener, or launching new campaigns designed to promote a green agenda, only tofind that consumers are less eager to act than our data might have suggested.Instead of making business more efficient and sustainable, we create waste: wastedresources, wasted time and wasted professional capital. 28
  29. 29. Working with instincts and motivations not simply putting people on the defensive There is a latent and growing consumer need for greener and more sustainable brands • Six out of 10 people in the U.S. agree “people consume far more of everything than they really need.” But touting green credentials can be counter-productive • Triggers feelings of guilt, defensiveness and rejection We need to address core consumer motivations to help make green the deciding benefit benefit • Relevant, credible, trustworthy and green 29There is little doubt in my mind that a latent need exists for greener and moresustainable products. We know there is a strong latent demand among consumersto do the right thing. In the U.S., seven out of 10 people think companies shouldhelp them do so. In 2008, over six out of 10 people interviewed by Yankelovichstated people consume far more of everything than they really need.To me, this suggests that there is a real opportunity for the first brand to crediblyaddress that need. The trick is to offer a relevant and credible solution withoutmaking it the sole rationale for switching. Simply stating that a brand is green can becounter-productive. Tell people what they are doing is “wrong” and it triggersfeelings of guilt and defensiveness. Their automatic response is to reject the greenalternative: it won’t work, it’s too expensive or it’s fine for the granola crowd.If we are to get people to adopt more sustainable brands, we need to make surethat the brand proposition resonates at a personal level. For instance, Method’sfinancial and brand success is not based in its commitment to being green, nomatter how strong, rather the brand inspires people to desire a happy, healthyhome. By appealing to a more general motivation “green” becomes a supplementaryand positive influence on brand choice. 29
  30. 30. Maximizing the impact of sustainability Sustainability is an opportunity for business • But for the new sustainability agenda to have the maximum impact we need our consumers to act sustainably too Marketing is all about getting consumers to act on their beliefs • Marketing can help make green an acceptable choice through new products and different messaging Consumer research has an important role to play • Helping anticipate the consumer mindset and identify opportunities and catalysts for change This one is personal • That is if you intend to go on living on this planet 30Many companies have adopted a sustainability agenda because it is in their best intereststo do so. But without impacting consumer behavior, that agenda will have limited impact onresource depletion and carbon emissions. To have the maximum impact, we need to havethe general public buy into sustainability too. Right now, my concern is that consumers arelagging behind consumer-facing companies in their commitment to do the right thing by theplanet.I believe we have a responsibility to use our brands to inspire more sustainable behavior inthe majority of the population who are not yet motivated to buy green, recycle and reuse.After all, marketing is all about getting people to act on their beliefs. And, as I hope I haveshown, green need not be a threat to established brands. It could be a major opportunity.Helping to bolster their standing against the tide of new, greener alternatives.Market researchers have an important role to ensure marketing is focused to best effect. Tothat extent, I am not proposing anything new for our role. But perhaps what we need to dois be more mindful in the way we approach our jobs. Seeking opportunities for change, notsimply feeding back data on the status quo. Staying ahead of the general consumermindset by talking to thought leaders and trendsetters. Helping ensure our brands are acatalyst for positive change not a reason for consumers to do nothing.And on this occasion market researchers actually do have a personal interest in shapingconsumer’s attitudes and behavior. That is, assuming you (and your family) intend tocontinue living on this planet. 30
  31. 31. So maybe it’s time we all dare to care Thank you for listening.Rather than being dispassionate observers and advisors, it is time we all dare tocare. Let’s put our skills and passion to work to help build strong brands, a betterworld and a better future.Thank you for listening. 31

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