A time for Green Brands
A view from the 2007
ImagePower® Green Brands Survey
Phil Gandy
Planning Director, Landor Associates, London

Postcard from UK & USA:
a rapidly greening environment for brands
Environmental concern now spreading beyond
green-aware European vanguard nations
In UK and the US, fear of global warming
now lodged in the public consciousness
Widespread appetite for greater action to combat the threats
Role for responsible brands to lead and educate
their consumers in engaging with green issues
Business opportunity for brands willing to commit to change
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 2

ImagePower Green Brands Survey:
Methodology
Large sample Internet survey conducted by
Penn, Schoen & Berland Internet Surveys Group, 6-8 April 2007
1,525 interviews among UK adult population
1,504 interviews among US adult population
Respondents aged 18 and over
Gender, age and region weighted to reflect national census information
Respondents rated only the brands they were familiar with
Margin of error among total sample is +/- 2.5%
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 3

Green thinking goes mainstream: UK
Dramatic shift to green attitudes: one of the fastest
revolutions in public thinking and behaviour ever seen
80%
A year ago, Green was a fringe issue
60% What do you think is the most important
green issue or problem today?
60
40%
40%
Today % of Britons 20%
- united across all regions - 20% 11%
7% 6%
spontaneously identify 2% 2% 2% 1
0%
global warming and
Cutting down trees /
Society/Ourselves
None / There is no
Energy + Resource
Carbon Emissions/
Trash Generated/
building in China or
Green house gases
issue or problem
Over Population /
Global Warming /
Climate Change/
most important
Transportation
Corporations
Related issues
Development/
Infrastructure
Deforestation
Air, Water,
Waste by
climate change as biggest
Pollution
/ Ozone
India
issue facing the planet today
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 4

Green thinking goes mainstream: US
US recognition of global warming rather lower:
pollution and waste still seen as important worries 40 %
But awareness and
understanding clearly growing…
In 2006 survey, most US consumers unfamiliar with ‘Green’:
confused about meaning, caring little about own actions
Today, Green no longer a marginal issue for fanatics:
American public engaging with Green issues in large numbers -
displaying Green attitudes and behaviour as strong as anyone’s
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 5

Everybody’s doing it:
widespread shift to green behaviour
Pics montage: recycling waste, recycled paper products,
Fairtrade prods, energy efficiency mark on fridge freezer,
(Miele or AEG fridge), cycling to work, bio diesel, taking the bus…
UK Now unquestioned expectation that everyone will
embrace some shade of green behaviour in day-to-day life
Amongst total UK population…
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 6

We are highly sensitized
to issues of waste
We all agree on the need
to recycle household waste 91 %
Buy recycled products
some or all of the time
61 % 56 %
Take own carrier bags
to the supermarket
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 7

Britons are increasingly wary of
emissions from personal transport
87 59
Choose cars with
energy efficient engines
or reduced emissions % %
Take public
transport to work,
or join a carpool
…whereas only 6% now claim to drive …and only 4% want an
a fast, sporty car off-roader or heavy loader
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 8

Most of us try to conserve water
in our day to day lives
eg Many will wash
the car by hand and
37 %
without a hosepipe
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 9

And we’re increasingly concerned
about integrity of food production
53 %
Over half will choose free range meat or chicken
39 % 16 %
Over a third now Almost a fifth now
choose organic food choose wild fish
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 10

Shades of green:
Scales of engagement in the UK
A third of us are attitudinally
Strong Green: see the impact
lifestyle has on the planet and
take real action to address it
2
Mid and Light Greens make
another 40% - with gradually
decreasing zeal for action
Remaining third are green-aware
but less active about solutions -
through apathy or self-interest
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 11

Shades of green:
A fairly similar picture in the US?
Perhaps surprisingly, segment
proportions not dissimilar to UK -
if anything, ‘more green’
But we must take account of
different understanding of Green
in US vs UK, plus usual positivity
of Americans in surveys!
Differences between segments
are clearest at the extremes…
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 12

Strong Greens UK :
Mature voices of experience
Typically older, life-experienced
men: 50+, well educated, married,
living in suburban and rural areas
Kids moved out: time to consider
and discuss green issues and implications for their families
Recycle regularly, buy recycled products and invest in
energy efficient home appliances
But also actively avoid waste (taking bags to supermarket,
driving a fuel-efficient car and washing it without a hosepipe)
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 13

Strong Greens UK:
Hungry for change
Want politicians to do more:
over half support environmental NGOs
Clearly look to business to take more steps to be greener
Single out home appliances as the business sector that has
done most to make a positive impact on the environment
Strong views on how companies can make a difference -
focusing (more adamantly than general public do) on
(1) reducing emissions / adopting sustainability and
(2) increasing recycling and conservation
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 14

Strong Greens US:
Ordinary Jo
More ‘average’ than UK counterparts:
younger (but predominantly 40+),
female, urban/suburban, average income
Not just in NY/SF: everywhere, with her like-minded friends
Share most attitudes and behaviour with UK Strong Greens
… recycling, buying recycled products
… energy efficiency around the home and in transport
… conservation
… support for NGOs
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 15

Strong Greens US:
‘Mainstream rebels’, with a cause
…but more concerned that society is on wrong track -
and extremely disappointed about collective progress
…has developed independent and determined views
- with less help from the media than in UK
…but more likely to conflate emissions reduction with basic
environmental housekeeping (like care with household
chemicals and supporting laws to reduce water pollution)
Urgent agenda of global warming not yet quite in focus
for most Americans - but getting there fast
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 16

Green Tinted UK:
‘Me generation’ yuppies
Young, urban men / women: Lifestyle, career, socializing
Over half are single and three quarters childless
1 in 5 like driving fast, sporty cars
Accept global warming, but only 20% admit to being Green
Beyond polite green behaviour (recycling, recycled products
sometimes, energy-efficient appliances)…no worries
and no need for change: society is right on track
40%+ can’t say how a company should be more more green
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 17

Green Tinted US:
Optimistic or complacent?
Better informed on Green business practice
than his UK counterparts: only 29% don’t have a clue!
Traditional older family man, 50+ - cf UK Strong Green
Driving is a pleasure (3x more likely than average
to buy a gas guzzler) - and recycling an afterthought
Believing optimistically that US is right on track
with the environment, he feels little need to help
Oil business (+ car manufacturers)
done best job of protecting the environment over past 5 years
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 18

Green leadership role
for business and brands
In both UK and US, over three quarters (76% / 77%) think
society’s environmental performance is ‘neutral / below par’
Over half (57%/56%) believe we’re doing a ‘terrible job’
The more ‘green-concerned’ people are, the less well
they appear to rate the performance of government
Strong and Mid Greens in UK and US instead give credit
to pressure groups and NGOs for driving the issue
Vacuum of leadership creates role for business
to lead and educate the public as responsible consumers
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 19

…and the public wants to listen!
8 in 10 Britons and Americans (80% UK, 83% US) say it’s
important or very important to buy from green companies
Unimportant
Important
Q: When you think about what brands to buy, how important is it to you
that a company is environmentally friendly or is a green company?
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 20

Emergence of green consumerism
Consumers are now waking up to the environmental
consequences of their purchase decisions
Survey reveals increasing appetite for green products
and environmentally responsible brand practices
Brand perceptions reveal common pattern in UK and US:
mainstream brands considered most green are dominated
by grocery retailing, bodycare and household appliances,
as well as energy / petroleum and cars
…Categories close to the individual, where ‘green agenda’
for products can be readily understood
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 21

US consumers worry about chemicals…
So Whole Foods, Wild Oats, Trader Joe’s, Aveda and
Body Shop are all among their greenest-perceived brands
1 6
2 7
3 8
4 9
5 10
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 22

Green war amongst UK retailers…
So grocery retailers dominate the UK Top 11 green brands
- all scoring high marks for ‘recent improvement’
1 6 11
2 7 12
3 8 13
4 9 14
5 10 15
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 23

Rising fuel and energy costs…
Greening reputation of domestic appliances,
energy / petroleum and transport brands
1 6 11 16
2 7 12 17
3 8 13 18
4 9 14 19
5 10 15 20
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 24

What’s your Green agenda?
Green demand has surfaced first in categories where the
‘Green agenda’ has become understood more quickly -
first through debate and publicity from activists, then
through consumer demand and action by brands
Other categories will follow when their Green agendas
become widely understood
Emerging Green agendas are rapidly going mainstream
in automotive, energy/petroleum, banking and travel
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 25

Is your category unexpected?
If brands in ‘unexpected’ categories can only identify
and act on their own motivating green category issues,
they stand to gain significant differential advantage
This survey suggest that online services, technology
and perhaps travel are all ripe for repositioning
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 26

Green makes good business sense
Many businesses may shy away from
investing in green products or services -
believing the issue unlikely to prove
widely motivating and so deliver
a realistic payback
This survey indicates otherwise…
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 27

A green reputation is a platform
for widespread, not niche, appeal
Greenest Brands
Industry Rank General population Strong Greens Green Tinted
Body Care 1
Grocery 2
Appliances 3
Automotive 4
Energy/Petroleum 5
Banking 6
Online technology 7
Travel 8
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 28

Green image drives quality perception
All consumer types link green with quality in most categories:
they expect green brands to make better products
Quality image is often accompanied by expectation of
higher prices - which can impact purchase intentions
But both UK and US consumers willing to pay
a modest ‘green premium’ to compensate
manufacturers for costs
60% of Britons 70% regularly
will spend more on pay more for
home appliances recycled paper
that save energy and ethical bodycare
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 29

Green reputation drives trial
Survey also shows that appearance of a ‘green-perceived’
brand is likely to prompt a significant proportion of category
users towards consideration and green trial in future
News for skeptical investors therefore very positive
Green reputation appears to drive
respect and appetite for a brand
and its products across the broad
spectrum of the public, as well as
building the base of demand
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 30

So what can we learn
from brands that do well in the survey?
Early movers have gained advantage
Over recent years, few organisations have taken the initiative
to develop ethical alternatives. So brands which were once
considered niche have quickly built substantial businesses
by satisfying significant latent demand in their categories
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 31

Green entrants act as change agents,
but retain their leadership position
As pioneer brands go mainstream, they attract new users,
build reputations + put pressure on category competitors
Whole Foods has driven other grocery stores
to offer organic options, but still commands
23% share of US natural foods
cf UK grocery:
Upmarket ethical pioneer Waitrose
now faces mainstream competition;
but its Green reputation remains
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 32

Latecomers must pay cost of entry -
and miss the differential advantage
First sustainable green offerings create news and win hearts
But as more competitors go green,
opportunity to differentiate diminishes
As competitive pressure grows, innovations of the visionaries
become necessary cost of entry for the followers
cf UK grocery: Big players at bottom of table
taking green steps forward,
but credit is not being given
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 33

Windows of green opportunity
are opening now
Expect green-driven churn in ‘new territory’ categories
Aspirant green brands will need to act fast to build reputation
New competitive model: do you / don’t you fall into
a ‘green credentials’ consumer consideration set?
‘Clubbable’ 2-way dividing line is likely to feed more
high-profile collaborations like ‘We’re in this together’ -
a government-sponsored action programme from a panel
of 8 major UK brands (launched April 2007)
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 34

A green reputation lasts - so long as
it’s backed up by substantive action
Age of transparency and consumer empowerment:
reputation must be built on genuine action
…why The Body Shop tops UK table: Green pioneer
for decades, with strong campaigning reputation
Lighthouse brand: put animal
welfare at heart of category agenda,
forcing every competitor to follow
No matter now owned by L’Oreal:
‘moral credit’ earned will be safe in
public mind for some time to come
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 35

Green reputation drives
differentiation and esteem
Streets ahead of other green contenders
Shows persistence of green reputation
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 36

Green leadership builds emotional bonds
Virgin Atlantic makes UK top 20,
despite air travel’s issues
…Known values of the Virgin brand
…Visionary leadership: pushing
for greener airline practice - pledging
profits to greener fuels development
Bold actions command attention and respect, build public
admiration - creating, along with other factors, even ‘love’
Position at No13 in table is a measure of the positive brand
profile that can be built even in a ‘problem’ category
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 37

Inspiring innovation
and focus will be rewarded!
US People’s Vote
for 2007 Green Brand of the Year
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 38

Some parting thoughts
for brand development
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 39

Emerging categories need to catch up
Sustainability must be ‘end to end’
Transparency builds respect and collaboration
Brands should act as teachers and partners
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 40

First, set a vision for the brand that
makes a demonstrable green contribution
Take a theme which echoes your existing positioning -
and so will build on your share of the public mind
If your new ideas don’t connect with existing public
perceptions, your efforts won’t be recognized
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 41

Second, go public with
a concrete programme for change
Make it significant:
greening business landscape
will soon be awash with lipservice,
so only substantial initiatives will make an impact
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 42

Third and not least,
engage your people in the cause
Brands - particularly service brands -
live through the people who deliver them
So if your people aren’t working together
to make new thinking fly, it won’t even
get off the ground
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 43

Bon voyage -
and good luck!
…for everybody’s sake
We are, indeed,
all in this together…
© Landor Associates, Penn, Schoen & Berland Associates and Cohn & Wolfe ImagePower Green Brands Survey - May 2007 44

A time for Green brands
A view from the 2007
ImagePower® Green Brands Survey
Phil Gandy
Planning Director, Landor London