APSotW 13 - Eco Friendly Products Insight


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A presentation for Russell Davies APSotW. Insights into the Eco-Friendly Product Market

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APSotW 13 - Eco Friendly Products Insight

  1. 1. Eco-friendly Products in Australia Market Insights by Adam brandsimo.wordpress.com http://www.flickr.com/photos/nature_lover/267647259/
  2. 2. What’s Eco friendly? <ul><li>Eco-friendly has yet to form a clear definition, it can mean any one, or a combination of: </li></ul><ul><ul><li>Made from Renewable sources </li></ul></ul><ul><ul><li>Safe for Grey water/Gardens </li></ul></ul><ul><ul><li>Not tested on Animals </li></ul></ul><ul><ul><li>Recycled or Recyclable </li></ul></ul><ul><ul><li>Free from Chemicals </li></ul></ul><ul><ul><li>Carbon neutral </li></ul></ul><ul><li>Myths about eco-friendly products: </li></ul><ul><ul><li>It is less effective </li></ul></ul><ul><ul><li>Not as concentrated </li></ul></ul><ul><ul><li>More Expensive </li></ul></ul><ul><ul><li>Means more hard work </li></ul></ul>http://www.flickr.com/photo_zoom.gne?id=386797304&size=l
  3. 3. Culture <ul><li>There is a clear shift in cultural acceptance of environmental and social concerns in Australia – where 5 years ago, climate change was only a issue for environmentalists, it is now top of mind for most Australians. </li></ul><ul><li>Cultural Change: </li></ul><ul><ul><li>All new homes must take environmental concerns on board whilst being built </li></ul></ul><ul><ul><li>Water Storage tanks are now featured in suburban homes (a few years ago this was illegal) </li></ul></ul><ul><ul><li>Many households have resorted to using grey water (recycled from their laundry) to water the garden </li></ul></ul>http://www.flickr.com/photo_zoom.gne?id=251978771&size=o
  4. 4. Media <ul><li>Media sources have embraced environmental concerns as a mainstream issue and has been presented by all the major media outlets: </li></ul><ul><ul><li>“ Reducing use of harmful chemicals is one of the best ways you can help protect the environment and look after your wellbeing” Biome.com.au </li></ul></ul><ul><ul><li>“ Sustainability is emerging as a major mainstream trend , and be certain, it is here to stay” ecoSAVVY </li></ul></ul><ul><ul><li>“ Australian designers are leading the way in using sustainable and recycled materials... There are eco-aware items to suit every budget .” Sydney Morning Herald (Nov 06) </li></ul></ul><ul><ul><li>“ It's not just environmentalists who recognise climate change as a major threat . Businesses are ahead of the Government in understanding the need for urgent action to cut soaring greenhouse pollution.” Fairfax (Sept 06) </li></ul></ul><ul><ul><li>“ As much of Australia sinks further into drought, headlines scream of global warming and an energy crisis” Sun Herald (Feb 07) </li></ul></ul>http://www.flickr.com/photos/catteaumaru/57472700/
  5. 5. Current Attitude to the Environment <ul><li>More people are embracing </li></ul><ul><li>sustainability in all forms. </li></ul><ul><li>We are taking far more </li></ul><ul><li>responsibility for our planet </li></ul><ul><li>and environmental issues. </li></ul><ul><li>Key Takeouts: </li></ul><ul><li>The Australian grocery buyer is concerned about the environment </li></ul><ul><li>They feel a responsibility to help </li></ul><ul><li>Eco-Products are perceived to be overpriced </li></ul>Environmentally Friendly Products are overpriced At heart I am an environmentalist If we don’t act now we’ll never control our environmental problems Threats to the environment are exaggerated Percent who agree ROY MORGAN SINGLE SOURCE AUSTRALIA : JUL 2005 - JUN 2006 http://www.flickr.com/photos/ekarjala/55027803/
  6. 6. Market Analysis High Mainstream acceptance http://www.flickr.com/photos/walkaboutwolf/63452603/ Low Mainstream acceptance The eco-friendly cleaning product market in Australia is separated into two distinct groups – one group of products are made for the niche market sold at selected eco-friendly stores, the other is group, lead by ‘Earth Choice’ is available at both independents and mainstream grocery channels.
  7. 7. Earth Choice <ul><li>Nature’s Organics, the parent company of Earth Choice would be the major direct competitor to any new entrant into the Australian Eco-Friendly Cleaner market. They have been established over a number of years, and are present in all major grocery retailers. </li></ul><ul><li>From Nature’s Organics website: </li></ul><ul><ul><li>Earth Choice products offer a unique and environmentally conscious alternative to conventional household cleaning products. We believe our products substantially overcome and reduce environmental concerns recognised and established by the EPA. </li></ul></ul><ul><ul><li>Our formulas and packaging are specifically designed to reduce environmental impact and waste of resources . </li></ul></ul><ul><li>The ‘Earth Choice’ range includes: </li></ul><ul><ul><li>Dishwashing Liquid </li></ul></ul><ul><ul><li>Laundry Liquid </li></ul></ul><ul><ul><li>Eucalyptus Woolwash </li></ul></ul><ul><ul><li>Floor and Surface Cleaner </li></ul></ul><ul><ul><li>Multi Purpose Spray </li></ul></ul><ul><ul><li>Toilet Cleaner </li></ul></ul><ul><ul><li>Fabric Softner </li></ul></ul>http://www.flickr.com/photos/algo/18939485/
  8. 8. Mainstream Distribution <ul><li>Earth Choice is the number 1 ‘Eco-friendly’ product in terms of distribution through mainstream channels, as it is present in all major supermarkets. </li></ul><ul><li>However ‘Priceline’ is a clear opportunity that is not tapped by Earth Choice </li></ul><ul><li>(note: Priceline specialises in body/hair products rather than general cleaning) </li></ul><ul><li>Mainstream channels are a necessity to provide sales volume in a small market such as Australia. </li></ul>http://www.flickr.com/photos/eyecatcher/9388536/
  9. 9. Insight <ul><li>Mainstream consumers don’t really </li></ul><ul><li>care about the environment, </li></ul><ul><li>but they feel pressured to be more environmentally conscious – </li></ul><ul><li>they want products that they can </li></ul><ul><li>feel good about using. </li></ul>http://www.flickr.com/photos/stevewall/206426067/
  10. 10. Opportunities <ul><li>The overriding factor in the current market that all brands, mainstream and niche, are clearly eco-friendly first, marketing second. This provides an opportunity for a strongly branded, and well marketed brand which touches both economic and environmental concerns of mainstream consumers. </li></ul><ul><ul><li>Designed for ‘average’ consumers, not greenies, who feel pressured to be more socially and environmentally conscious. </li></ul></ul><ul><ul><li>Grey Water Suitable Products </li></ul></ul><ul><ul><li>Targeted to consumers new to green products </li></ul></ul><ul><ul><li>Products for hair & body, as well as domestic cleaning </li></ul></ul><ul><ul><li>Competitively priced </li></ul></ul>http://www.flickr.com/photos/darwishh/159680174/