The presentation was part of a one-day roundtable session held for the membership of the Association of National Advertisers (ANA). It contains a real-world case study that illustrates how a former client: 1) dissected and ultimately defined what it means to be "green" in their industry, 2) identified key purchase decision-makers associated with "green," 3) segmented the market based on customers' attitudes toward "green," and 4) developed a compelling "green-based" value proposition and go-to-market strategy for the chosen target segment.

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Communication Challenges of Green Energy
January 2009

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What does it mean
to be ?

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Case Study: ‘Company A’
Ingoing Hypotheses:
• Opportunity exists for Company A to drive growth and strengthen its competitive advantage
by positioning itself to satisfy emerging Green requirements
• Green is NOT a one-size-fits-all proposition. Green means different things to different
buyers, and the market can be segmented based on how attitudes differ toward Green
• The process of identifying a value proposition grounded in Green is no different from a
standard value proposition effort (segmentation, targeting, etc.)
Company A:
• A large, “super-regional” supplier of building materials for the commercial construction
industry

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Project Objectives
• To understand how builders/contractors define Green and their motivation to pursue/not
pursue green building materials/solutions
• To identify the key drivers of Green purchase decisions and dimensionalize their relative
importance
• To identify and prioritize distinct segments of Green based primarily on differences in
attitudes toward Green
• To identify a Green-oriented value proposition that is compelling and distinctive to the
target segment

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Questions to answer
How does the market
segment?
! How similar or different are attitudes, needs, and behaviors across
markets?
! How many distinct segments does the optimal schema yield?
! What are the behavioral and firmographic profiles of each segment?
1
What value proposition
appeals to our target?
! What primary benefit serves as the foundation for a value proposition?
Is the foundational benefit motivating, credible, and differentiated?
! What competencies are required for Company A to deliver the VP?
! What are the interrelationships between attributes and benefits (how
do they link)?
3
Which segments should
we target?
! Which segments are the most economically attractive?
! Which segments align best with Company A internal competencies?
! With which segments does Company A currently perform best?
2

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Types of segmentation
Key
Question:
Dimensions:
Tactical Strategic
Type:
Focus:
§ Category
attitudes,
desires and
beliefs
§ Required/
Have to have
§ Preferred/
Like to have
§ Not needed
§ Product
usage
§ Brand
awareness,
usage &
loyalty
§ Price paid,
share of
wallet, and
purchase
frequency
§ Sector
§ Geography
§ Spend Level
§ Company
size
§ Purchase
§ Key
influencers
Why are they
doing it?
What do they
desire?
What are
they doing?
Who are
they?
How are they
doing it?
AttitudesNeedsBehaviorDemographicsChannel
§ Category
attitudes,
desires and
beliefs
§ Required/
Have to have
§ Preferred/
Like to have
§ Not needed
§ Product
usage
§ Brand
awareness,
usage &
loyalty
§ Price paid,
share of
wallet, and
purchase
frequency
§ Sector
§ Geography
§ Spend Level
§ Company
size
§ Purchase
§ Key
influencers
Why are they
doing it?
What do they
desire?
What are
they doing?
Who are
they?
How are they
doing it?
AttitudesNeedsBehaviorDemographicsChannel
§ Category
attitudes,
desires and
beliefs
§ Required/
Have to have
§ Preferred/
Like to have
§ Not needed
§ Product
usage
§ Brand
awareness,
usage &
loyalty
§ Price paid,
share of
wallet, and
purchase
frequency
§ Sector
§ Geography
§ Spend Level
§ Company
size
§ Purchase
§ Key
influencers
Why are they
doing it?
What do they
desire?
What are
they doing?
Who are
they?
How are they
doing it?
AttitudesNeedsBehaviorDemographicsChannel
§ Category
attitudes,
desires and
beliefs
§ Required/
Have to have
§ Preferred/
Like to have
§ Not needed
§ Product
usage
§ Brand
awareness,
usage &
loyalty
§ Price paid,
share of
wallet, and
purchase
frequency
§ Sector
§ Geography
§ Spend Level
§ Company
size
§ Purchase
§ Key
influencers
Why are they
doing it?
What do they
desire?
What are
they doing?
Who are
they?
How are they
doing it?
AttitudesNeedsBehaviorDemographicsChannel
§ Category
attitudes,
desires and
beliefs
§ Required/
Have to have
§ Preferred/
Like to have
§ Not needed
§ Product
usage
§ Brand
awareness,
usage &
loyalty
§ Price paid,
share of
wallet, and
purchase
frequency
§ Sector
§ Geography
§ Spend Level
§ Company
size
§ Purchase
§ Key
influencers
Why are they
doing it?
What do they
desire?
What are
they doing?
Who are
they?
How are they
doing it?
AttitudesNeedsBehaviorDemographicsChannel
§ Category
attitudes,
desires and
beliefs
§ Required/
Have to have
§ Preferred/
Like to have
§ Not needed
§ Product
usage
§ Brand
awareness,
usage &
loyalty
§ Price paid,
share of
wallet, and
purchase
frequency
§ Sector
§ Geography
§ Spend Level
§ Company
size
§ Purchase
§ Key
influencers
Why are they
doing it?
What do they
desire?
What are
they doing?
Who are
they?
How are they
doing it?
AttitudesNeedsBehaviorDemographicsChannel
§ Category
attitudes,
desires and
beliefs
§ Required/
Have to have
§ Preferred/
Like to have
§ Not needed
§ Product
usage
§ Brand
awareness,
usage &
loyalty
§ Price paid,
share of
wallet, and
purchase
frequency
§ Sector
§ Geography
§ Spend Level
§ Company
size
§ Purchase
§ Key
influencers
Why are they
doing it?
What do they
desire?
What are
they doing?
Who are
they?
How are they
doing it?
AttitudesNeedsBehaviorDemographicsChannel
§ Category
attitudes,
desires and
beliefs
§ Required/
Have to have
§ Preferred/
Like to have
§ Not needed
§ Product
usage
§ Brand
awareness,
usage &
loyalty
§ Price paid,
share of
wallet, and
purchase
frequency
§ Sector
§ Geography
§ Spend Level
§ Company
size
§ Purchase
§ Key
influencers
Why are they
doing it?
What do they
desire?
What are
they doing?
Who are
they?
How are they
doing it?
AttitudesNeedsBehaviorDemographicsChannel
§ Category
attitudes,
desires and
beliefs
§ Required/
Have to have
§ Preferred/
Like to have
§ Not needed
§ Product
usage
§ Brand
awareness,
usage &
loyalty
§ Price paid,
share of
wallet, and
purchase
frequency
§ Sector
§ Geography
§ Spend Level
§ Company
size
§ Purchase
§ Key
influencers
Why are they
doing it?
What do they
desire?
What are
they doing?
Who are
they?
How are they
doing it?
AttitudesNeedsBehaviorDemographicsChannel
§ Category
attitudes,
desires and
beliefs
§ Required/
Have to have
§ Preferred/
Like to have
§ Not needed
§ Product
usage
§ Brand
awareness,
usage &
loyalty
§ Price paid,
share of
wallet, and
purchase
frequency
§ Sector
§ Geography
§ Spend Level
§ Company
size
§ Purchase
§ Key
influencers
Why are they
doing it?
What do they
desire?
What are
they doing?
Who are
they?
How are they
doing it?
AttitudesNeedsBehaviorDemographicsChannel

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u How does the market segment?
Discriminating
Attitudes
q Attitudes that are most
discriminating—those for
which respondents have
the strongest levels of
either agreement or
disagreement
Segment Definition
& Profiling
q For each segment, the
key attitudes, behaviors,
and firmographics that
characterizes it, plus:
• Geographic distribution
• Percent of market
• Percent of spend
Strongly
Agree
Strongly
Disagree
Attitudes
Segmentation
Schema
q Clusters of respondents
who are similar in terms of
their responses on the
discriminating attributes
• 4-segment solution?
• 5-segment solution?
• 6-segment solution?

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Attitudes — the basis for segmentation
Green Attitude Statements
A. Green products are as effective as non-Green
B. Green products are expensive
C. I would pay more for Green products
D. I only explore Green products because my customers demand it
E. Green is an unnecessary distraction for my business
F. Government regulation of Green is only going to increase
G. Manufacturers' Green self-certifications are credible
H. I only explore Green if my organization mandates it
I. I don't see the value of Green
J. Green will help me save money over the long-term
K. Green will help me save money in the short-term
L. Recyclability is a required element of a Green offering
M. Green is worth the investment
N. I am willing to pay more to work with a Green manufacturer
Green Attitude Statements
O. Green is a way to for me to achieve a competitive advantage
P. Business leaders are expected to adhere to Green practices
Q. Practicing Green is a way to attract new customers
R. Practicing Green improves my company's image
S. Adhering to Green improves morale among my employees & staff
T. Adhering to Green effectively protects the environment
U. Building materials are inherently not Green
V. Building materials with low levels of toxicity are Green
W. Green is confusing to me
X. Green requires a lot of training
Y. Green is difficult for me to implement
Z. There is no accepted consensus on what it means to be Green
AA. Manufacturers are the best source of information on Green
BB. I only buy from suppliers that share my Green commitment
Which attitudes are the most
“discriminating?”
To what extent do you agree with the following statements? (1=strongly disagree; 5=strongly agree)

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Discriminating attitudes — the ones that cause clustering
D. Customers
require
H. Company
mandates
K. Saves money
in short-term
Q. Attracts new
customers
J. Saves
money in long-
term
O. Competitive
advantage
-0.47 -0.70 0.50 0.78 0.94 0.88
-0.48 -0.43 -0.49 -0.52 -0.39 -0.44
0.05 0.08 -0.61 -1.04 -1.14 -1.25
1.15 1.33 0.60 0.68 0.41 0.63
Attitudinal Ratings – ‘Green’ Segments
-2 +2
Variance from mean
Segment 1
Segment 2
Segment 3
Segment 4

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4 segments — as defined by their attitudes toward Green
155
92 85
63
Distribution of Respondents
Green
Lovers
Independently
Green
Green
Rejecters
25% 23% 34% 18%
Spend Indices
Green
Lovers
“It’s Not
Easy…”
Independently
Green
Green
Rejecters
“It’s Not
Easy…”
Green Lovers
• Believe Green building
materials impact the
environment
• See value in Green
building materials for
commercial
construction
• Believe Green is worth
investment
• The least price
sensitive segment
Not Easy Being Green
• Believe Green building
materials impact on the
environment
• Believe government
regulation is increasing
• Dependent on
manufacturers for
knowledge, expertise
and compliance
• Looking for help in
understanding Green
Independently Green
• Believe Green building
is important for comm.
construction
• Not looking for
assistance
• Believe government
regulation is increasing
• See value in Green
building, and believe it
has a notable impact on
environment
Green Rejecters
• Do not see business
benefits in Green
• Not willing to pay
more for Green
offerings
• Most skeptical about
the validity/efficacy of
Green building
• Do not believe Green
building has a notable
impact on the
environment

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Questions to answer
What value proposition
appeals to our target?
How does the market
segment?
1
3
Which segments should
we target?
2
! How similar or different are attitudes, needs, and behaviors across
markets?
! How many distinct segments does the optimal schema yield?
! What are the behavioral and firmographic profiles of each segment?
! What primary benefit serves as the foundation for a value proposition?
Is the foundational benefit motivating, credible, and differentiated?
! What competencies are required for Company A to deliver the VP?
! What are the interrelationships between attributes and benefits (how
do they link)?
! Which segments are the most economically attractive?
! Which segments align best with Company A internal competencies?
! With which segments does Company A currently perform best?

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v Which segments should we target?
Stated vs. Derived
Importance
q The difference between what
customers tell you is
important and what actually
IS important to them
(demonstrated through their
behavior)
Competitive
Landscape
q Important purchase
drivers that we own; the
ones that are owned by
key competitors; and ones
that are “up for grabs”
Company A
“Wins”
Competition
“Wins”
Required Crucial
Uninspiring Motivating
Stated
Derived
Segment Screening &
Evaluation
q The basis for determining
which segment(s) to
select as a target(s)
• Primary target
• Secondary target
Financial
Attractiveness
Market
Relevance
Organizational
Capabilities
Benefits

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Desired benefits — stated vs. derived importance
Helps green transition
Healthy work environment
Increase customer satisfaction
Supports comp advantage
Improves company image
Reduce fines
Conserves energy
Reduce financial liabilities
Maintains property value
Reduce costs
Credibility
Complete solution
Certified green
Enhance efficiency
Superior knowledge
Industry leader
Demonstrate
environ commit
High
StatedImportance
%TopTwoBox
HighLow
CRUCIAL
UNINSPIRING MOTIVATING
REQUIRED
Derived Importance
Correlation to ‘Likelihood to Recommend’
Demonstrated credibility, and
commitment to helping customers
transition to Green

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Competitive landscape — where do we win?
Company A
Best-in-ClassCompetitor
Competition
“Wins”
Certified green
Complete solution
Credibility
Reduce costs
Maintains property value
Reduce financial liabilities
Conserves energy
Reduce fines
Improves company image
Supports comp advantage
Increase customer satisfaction
Healthy work environment
Helps green transition
Demonstrate environ commit
Enhance efficiency
Superior knowledge
Industry leader
35
40
45
50
55
60
65
35 40 45 50 55 60 65
%Top-TwoBox
% Top Two Box

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Screening segments — which one(s) should we target?
Green
Lovers
“It’s Not
Easy…”
Independently
Green
Green
Rejecters
Segments
Compare Financials Compare Relevance Compare Capabilities
Financial
Attractiveness
Market
Relevance
Organizational
Capabilities
Target
Recommendation
Select Targets
Primary
Secondary

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Questions to answer
What value proposition
appeals to our target?
How does the market
segment?
1
3
Which segments should
we target?
2
! How similar or different are attitudes, needs, and behaviors across
markets?
! How many distinct segments does the optimal schema yield?
! What are the behavioral and firmographic profiles of each segment?
! What primary benefit serves as the foundation for a value proposition?
Is the foundational benefit motivating, credible, and differentiated?
! What competencies are required for Company A to deliver the VP?
! What are the interrelationships between attributes and benefits (how
do they link)?
! Which segments are the most economically attractive?
! Which segments align best with Company A internal competencies?
! With which segments does Company A currently perform best?

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w What value proposition appeals to our target?
Derived
Importance Analysis
q Identify key drivers of
behavior (i.e., most
important benefits) for
target segments
JohnsonDiversey Project Rubicon — Slide 41
176
156
143
131
123
114
114
108
108
106
106
106
103F. Products tailored to industry
O. Provides expertise for compliance
N. Provides environ-friendly chemicals
T. Offers purchasing from one source
H. Provides integrated chem, serv,
equip
W. Provides training for your employees
M. Offers products that use less water,
energy, labor
AA. Distributors recommend
L. Enhances your reputation
DD. Provides deep application expertise
D. Enhances results thru tools & access
BB. Gets to know your business
EE. Provides best overall value
Performance Partners - Derived Importance*
N = 402
Important
More
Important
*Statistically determined importance of attributes that drive willingness to recommend, indexed to the full set of benefit statements
Benefits
Pathway
Modeling
q Develop pathway models
to understand the optimal
relationships among
benefits
Proprietary and confidential property of Prophet. Do not distribute.JohnsonDiversey Project Rubicon: ‘Green’ Research — Slide 6
‘Green’ Research: Pathway Modeling
Desired Outcome: Healthy work environment
Hierarchy
Higher-order
associations
Functional
attributes &
touchpoints
Desired
Outcome
Green Mandate Green ROI Building Green Brands & Business Green is Healthier & Safer Easy to Be Green Green Expertise & Advice
Pathway Model
Healthy work environment
Help demonstrate
commitment to environment
Increase customer satisfaction
Complete solution
Certified green
Industry thought leader on
environmental issues
Reduce financial liabilities
Enhance efficiency
0.33
.39
Helps you transition to
green
0.26
0.44
0.25
0.41
0.34
0.30
0.38
0.54 0.32
0.41
0.33
0.44
Value Proposition
Development
q Develop the value
proposition—our distinct
promise—based on
themes most resonant
with target segments
Points of Parity
Points of Difference
Points of Preference
Benefits

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Purchase Drivers — the foundation of the value proposition
Benefits
Index
Safe work environment
132
Help demonstrate commitment to environment
128
Superior knowledge & expertise
110
Enhance productivity
109
Improves company image
108
Increase satisfaction
106
Comprehensive solutions
105
Industry thought leader on environmental issues
104
Reduce operating costs
101
Certified green
98
Reduce fines
95
Supports competitive advantage
95
Credibility
89
Maintain property value
88
Reduce financial liability
86
Conserve energy
80
Derived Importance Analysis
Green
Lovers
Point of Preference

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Pathway Modeling — the relationship between benefits and features
Help demonstrate commitment to
environment
Healthy work
environment
0.41
Improves company
image
Enhances
Productivity
Reduced Costs
Credibility
Thought
Leadership
0.47
0.32
0.48
0.54 0.38
0.52
0.36
0.42
0.43
Pathway Model
Green
Lovers
Points of Parity
Points of Difference

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Value Proposition Model — Company A
Company A is the commercial construction provider that…
Healthy Work Environment Thought Leadership
Credibility Improves Company Image
demonstrates a commitment to the environment,
and to helping customers transition to Green
Target
Frame of
Reference
Primary
Benefit
Proof
Points
For… Green Lovers

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Value Proposition Model — from strategy to activation
Post-purchase
Experience
Pre-purchase
Experience
Purchase and
Usage Experience
Brand-Customer
Relationship
Web Site
Advertising
Word of
Mouth
In-store
Experience
Sales
Collateral
Product
PerformanceService &
Delivery
Training
Customer
Care
Technical
Support
Outsourcing
Upgrades
CustomerExperience
ValueProposition