The “So-What?” of Sustainability: Inside the Minds of Millennials to Matures Elin Raymond, President The Sage Group, Inc.
The “So-What?” of Sustainability What’s with the “So-What?” Create sustainability Connections The “So-What?” Do your targe...
<ul><ul><li>87% of consumers are concerned about the environment. </li></ul></ul><ul><ul><li>Concern stops at the wallet: ...
Inside the Minds of Millennials to Matures A Generational Approach <ul><ul><li>Age range Approx. % US population </li></ul...
<ul><ul><li>Each generation of consumers has its own unique set of core values, views and behaviors. </li></ul></ul><ul><u...
Inside the Minds of Millennials to Matures Generational Profiles Contributions by Chuck Underwood of The Generational Impe...
Inside the Minds of Millennials to Matures Generational Profiles <ul><li>Pro underdog </li></ul><ul><li>Want recognition m...
Inside the Minds of Millennials to Matures Seeking Answers to the “So What?” Generational Consumer Research Overview - 200...
Inside the Minds of Millennials to Matures Seeking Answers to the “So What?” Generational Consumer Research Overview - 200...
Inside the Minds of Millennials to Matures Generational Eco-Profiles: Beliefs and Behaviors <ul><ul><li>The eco-importance...
Inside the Minds of Millennials to Matures Generational Eco-Profiles: Beliefs and Behaviors <ul><ul><li>Beliefs in action:...
Inside the Minds of Millennials to Matures Generational Eco-Profiles: Beliefs and Behaviors Eco-impact of packaging on pur...
Inside the Minds of Millennials to Matures Generational Eco-Profiles: Beliefs and Behaviors <ul><ul><li>Choices: Favorite ...
Inside the Minds of Millennials to Matures Generational Eco-Profiles: Beliefs and Behaviors <ul><ul><li>What role do the e...
Inside the Minds of Millennials to Matures Packaging Perceptions Overview Perception = Reality <ul><ul><li>Eco-friendly pa...
Inside the Minds of Millennials to Matures  Packaging Perceptions Overview Perception = Reality <ul><ul><li>Non-eco-friend...
Green Guys vs. Wannabees Naming Names <ul><li>Green Guys </li></ul><ul><ul><ul><li>Toyota/Prius </li></ul></ul></ul><ul><u...
Eco-Friendly? Not? Naming Products <ul><li>Eco-Friendly </li></ul><ul><ul><ul><li>Ice Mountain - 30% less plastic  </li></...
A Generational Approach for Sustainable Success Overall Observations from Sage Soundings <ul><ul><li>Survey responses from...
A Generational Approach for Sustainable Success Overall Observations from Sage Soundings - Continued <ul><ul><li>Consumers...
Inside the Minds of Millennials to Matures Generational Eco-Profiles: Beliefs and Behaviors How to Reach and Appeal to You...
Generational Marketing/Branding Strategies for Sustainable Success <ul><li>TV/print ads </li></ul><ul><li>Articles, TV new...
Generational Marketing/Branding Strategies for Sustainable Success All Generations <ul><ul><li>Communicate! </li></ul></ul...
Generational Marketing/Branding Strategies for Sustainable Success All Generations <ul><li>Your Website </li></ul><ul><ul>...
Generational Marketing/Branding Strategies for Sustainable Success All Generations <ul><ul><li>Your packaging </li></ul></...
Generational Marketing/Branding Strategies for Sustainable Success Millennials and GenXers <ul><ul><li>Create online life,...
Generational Marketing/Branding Strategies for Sustainable Success Boomers and Matures <ul><ul><li>Eco-Masters program </l...
The “So-What?” of Sustainable Branding <ul><ul><li>“ We are seeing the birth of a new perspective of the world, where ecol...
For more information … Contact Elin at  [email_address]  or 612.321.9897.   Blog:  www. supersageme .com   LinkedIn:  www....
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The So-What? of Sustainability: Inside the Minds of Millennials to Matures

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  • My firm The Sage Group, develops and executes branding and marketing programs with an absolute reliance on market research to drive and direct those initiatives. This afternoon, we’ll look at the So-what of sustainability and its implications. Then we’ll venture inside the minds of millennials to matures, based on their profiles and our recent research We’ll take a look at their sustainabiity beliefs and behaviors And find out what they think about some of your brands and products! Finally, I’ll cover marketing and branding strategies to reach and influence each group. The good news? The strategies are all cost-effective. The bad news? You may have to think in new ways - especially if you’re not involved in day-to-day marketing and branding.
  • I always ask new clients, What’s the so-what about your products or brand? Why should I care about it? If you ask the average consumer what’s the so-what of sustainability, most will glaze over: 89% of them haven’t heard the term used in the context of packaging. To them, a sustainable company is one that will be around in the next decade. You have to learn the so-what in order to create brand - or in this case - sustainability connection with your target consumer, if you want your initiative to succeed. And doing so requires research.
  • We’ll be discussing the results of Sage’s two-year study shortly, but I thought it would be interesting to provide a capsule view of what other sources are saying about the consumer and sustainahility. The vast majority is concerned about the environment Not surprisingly, name brands are under pressure with a third of people buying generics - with the exception of Kraft, Coca Cola and Tide. Truly sustainable companies are finding it difficult to separate themselves from those that greenwash. As Ed Hardiman of Bristow, VA said, “If I see one more corporation declaring itself green, I’m going to start burning tires in my backyard!” In the shadow of Enron, Lehman Brothers, AIG and others, consumers are scrutinizing the ethics of companies in tandem with their environmental practices. Finally, consumers still tend to believe that their job is to recycle, yours is to create recyclable packages. The challenge is to educate them.
  • As the title of my presentation denotes, I’m taking you on a generational journey today. When I refer to Millennials, GenXers, Boomers and Matures, here are their age breakdowns and representation within the US population.
  • Each of these generations is the product of its environment, and has its own discreet set of values, views and behaviors. The trick is to get inside the heads of your target consumer base, in order to - in this case - create packaging that appeals to their generational values and is meaningful to them.
  • I’d like to give attribution to Chuck Underwood of the Generational Imperative for many of the overall generational insights you see here. Going from oldest to youngest, we start with the Matures. -The Great War truly defined their lives and generation. -They had Ozzie and Harriet families, led by the organization man. -Their most outstanding characteristics are loyalty and conformity. The Boomers were defined by another war - Viet Nam. -Theirs was a golden age for kids. -Families were secure, and boomer kids believed they could do - and change - anything. -Hope, love, civil rights, feminism, and idealism characterize them - as does their belief that they will be forever young!
  • The GenXers were the only generation of this group that were not defined by a war. -Instead, they were the first to be affected by the computer and all of its reverberations. -GenXers grew up in a mobile society, with transfers, dual careers, divorce, permissiveness and a switch to a service economy. -Women were on the ascendance and men were trying to figure out their new roles. -This generation is inclusive, independent and entrepreneurial. To them, loyalty must be earned. The Millennials are still in formation, altho’ the first of this bunch is online and linked. -The war on terror, along with corporate greed has defined the first wave of millennials. -They are social activists with strong family ties and helicopter parents. -The see themselves as perpetually poor and unlikely to rise out of that state. -To the Millennial, recognition is more impprtant than dollars.
  • Against this generational backdrop, the Sage group conducted generational research to probe views on sustainable packaging, which we called Environmentally Friendly Packaging. [give research overview] You’ll note in some of the images that follow, that we included results from both 2008 and 2009 to give you and idea of the changes that may have taken place in their views and behaviors.
  • To reach our targets we communicated via the Web and social media - adding to that arsenal in 2009.
  • We started out by asking them to rate the importance of product packaging to the environment. I’ve highlighted the significant, or changed, data in pink. At the bottom of the screen, I’ve referred to a Datamonitor study that positioned US participants as lower in their concern for eco-friendly product packaging. In contrast, our study found that an average of 47% of participants found it to be of importance, while another 21.1% saw it as very important.
  • As you may recall, our outside sources said that consumers see their role in guarding the environment as that of recyclers. Our research validated that view. -their focus is on becoming greener - not on being perfect. -More education is needed concerning the nuances of a sustainable lifestyle and their role in that context. -As the quote from our survey says: I think we need to educate consumers what happens to packaging when we throw it away. If we saw barges or landfills, we might become more sensitive to adding to that. But we throw it in the trash, someone takes it away, and it’s easy not to think of where it goes from there.” Another observation: in 2008, the millennials were the wayward generation in terms of their response to the environment. Now we see them stepping up to the plate in that area. -The matures conform to the societal norm - more than 80% always recycle.
  • While all 4 generations feel that enviro-friendly packaging is important, does that belief carry over into their purchasing decisions? -Most take steps to assess the packaging for eco-friendliness. -Some even choose a product based on its relative friendliness - especially genxers and matures. -But Maslow’s pyramid of needs intervened to a greater extent in 2009 than in the previous year. -Far fewer than a year ago would be willing to pay more for that packaging, however. -so you can’t count on recouping sustainable packaging redesign costs near term. Your national organization concurs: “The economy is a big driver of how consumers make their choices.” Jane Chase said in a recent packaging digest article.
  • We put those choices to the ultimate test - their favorite soft drink (read Coke or Pepsi). -Far fewer would stick to their favorite in 2009 as in 2008. -Most want to learn more to justify their purchase decision - especially the matures and genxers. Very few would go with the eco-friendly soft drink at a higher cost. -Consumers of all generations are becoming less brand loyal and more price conscious - even the matures. However, in 2009, an eco-friendly contained soft drink had to have a competitive price to get all of the generations to buy it.
  • Let’s look at ethics and the environment. As you know, more and more, these 2 Es are becoming inseparable. -Even the millennials showed a greater propensity to make belief-based purchases. 78.3% avoid buyhing from a company with unethical practices - the influence of corporate greed and shenanigans. -Only the boomers went up in willingness to buy from a company regardless of reputation - the rebellious generation. -The matures, 2008s champs of sustainability, became more moderate in their application of ethics to purchases with 79% avoiding buying. It may be as one of our survey participants put it: “I’m a die-hard Coke guy and would stay with Coke regardless of packaging - unless I learned that their employees traveled the earth, purposely depleting the ozone layer.”
  • Without prompting, we asked our participants to tell us what packaging types they viewed as friendly. -on the 2008 - or green side - they listed….. -In 2009, they added ..;… Clearly, environmental education is starting to kick in.
  • We also requested their views on the dark side - non-friendly packaging. -over and over, electronics and toy packaging came up in one guise or another. -as did: Packaging that can’t be recycled (remember: your job is to make packaging that’s recyclable? -Hard plastic- their term. They don’t know if a bottle is PET OR HDPE and don’t care what they’re called. -In 2009, they essentially restated the list given in 2008.
  • Now we’re getting into the good stuff! We asked our responders to name names: what companies are TRULY green and which ones are greenwashers or wannabees. -It’s interesting to note that several of the companies landed on both lists from 2008 to 2009. -SC Johnson -Target -WalMart Consistency in brand messaging and reputation management are pivotal in staying in the left lane! A Packaging digest study on sustainability noted that “There are no clear metrics, so customers don’t know what to believe.” and that “you need to provide proof of sustainability to counteract the doubts consumers have developed due to greenwashing.”
  • We also asked participants to name products they believed to be eco-friendly - or not. -Note that consumers seem to absorb information that substantiates a product’s sustainability: -Ice Mountain - 30% less plastic. -OB - 56% less waste. -In contrast to Ice Mountain - Fiji water with its heavier gram weight bottle hit the black list.
  • What do all of these findings tell us about the prospective consumers of our products and brands? -Product price overrode environmental concerns in 2009 - the worst recession in recent history. -Sustainability doesn’t mean the same thing to me as a consumer as it does to you, a packaging professional. Educate! -Pat Conroy of Deloitte, in a Jan article in Pack Digest said, “With many consumer believing that products simply have too much packaging, manufacturers are downsizing and lightening the protective covering around their products. The benefits from these efforts are that many companies are realizing materials savings in costs sturctures and increased demand from consumers.” It pays to be innovative in good times - and especially in bad ones. - Greenwashing is believed to be widespread on the part of the consumer. Again, transparency, authenticity and facts are the only ways to combat this belief.
  • Ethics and the environment go hand in hand in the eyes of the consumer. You must deal with them in that way in your company. A company’s sustainability is a component of its ethics. As is true in all branding: your brand doesn’t belong to you. It belongs to your customers. It is what they believe it to be. Is there a disconnect in your brand?
  • Now that we have an idea of our 4 generations’ environmental beliefs and practices, let’s take a look at what influences their purchase behaviors. -We presented several choices, lower price, TV/print ads, Articles/TV news, Internet/Youtube, Friends, Web, Try it. -the top line in each generational category shows responses in 2008, the one beneath shows those in 2009. -the big surprise in each category - especially millennials and genxers - was that the Web and tools such as youtube didn’t seem to exert more of an influence. However, collectively, Web and social media-related responses averaged out at 22% - so these media cannot be overlooked in a sustainable marketing program.
  • As we look at the 4 generations and move toward the marketing and branding strategies that work with each, there are a few commonalities: -Millennials and genxers were seemingly most affected by the recession in their eco-purchase behaviors and beliefs. -All groups believe that product packaging has a significant environmental impact. -Boomer and matures changed the least over the two year period. -Want and value information to make informed decisions. -Tend to choose products based on their eco-friendliness. -Finally - all groups want to be reached by: -TV/print ads -Friends’ recommendations -Trying the product -Lower price. -Boomers and Matures additionally respond well to articles and TV news spots.
  • Many of you aren’t directly involved in marketing and branding, but regardless, being on top of sustainable success strategies is imperative for everyone involved in a corporate sustainability initiative. So here goes: Here are some general strategies and tactics that are the foundation of any sustainability branding and marketing program. The tactics in each are suggestions; they may not apply in every case. -Communicate! It’s one of the best ways to wash away greenwashing .It’s one of the most important ways to make your package greener - if your messages are clear and truthful. -Research your target customer - as we did in our study. Find out where disconnects may exist between internal perceptions and outside ones. Use results to direct development of a strategic plan to build a perception connection. -Corporate culture - like the sustainable leaders, your culture must be sustainable throughout …
  • Today, nothing communicates and defines your company and brand more than your website. It’s the first and last stop for those following your company and brands. If it’s inviting and interactive it will be your key marketing vehicle. -Use it to make special offers.Change them frequently to encourage visits to the site. -Invite customer testimonials. Neilson research shows that 80% of consumers trust the advice of other consumers. -Engage customers in a two-way conversation. P&amp;G says that 50% of its innovations come from partners and consumers. Dell and Starbucks also rely on customer input for product development and your website is one of the most effective and economical ways to do it.
  • Let’s move into your territory - the package. Iconoculture, a trends research group said: “with money so tight …shoppers need something to believe in, especially if they’re being asked to cough up a couple extra bucks for the good stuff. So really: If we can’t believe what we read on the lable, how do we know what the good stuff is?” I may be preaching to the choir, but: [list ]
  • Now we’ll look at possible strategies that should appeal to the various generations based on our research. Some caveats: -They’re general in nature. You’d have to adapt them based on your brand and products - they’re only a starting point. -There’s a wonderful confluence of consumer usage and acceptance of interactive or social media, and an economy that demands creativity and cost reduction. Social media costs virtually nothing but time and has a stellar ROI - if done correctlly. -So many of the tactics revolve around interactive, online, social media. -85% of millennials and genxers use social media. -And you’re in good company if you do to: more than 300 major companies employ it. -Use sites like yacktrack to find out what’s being said about your brand for consistent brand management.
  • Boomers and matures are the sustainable saviest of the generations with the interest and time to learn about, and commit to, the environment. Take advantage of that to give them the information they seek and reward them for their involvement.
  • The So-What? of Sustainability: Inside the Minds of Millennials to Matures

    1. 1. The “So-What?” of Sustainability: Inside the Minds of Millennials to Matures Elin Raymond, President The Sage Group, Inc.
    2. 2. The “So-What?” of Sustainability What’s with the “So-What?” Create sustainability Connections The “So-What?” Do your target customers care about sustainability? Do they even know what it is? “ So-What?” if you’re sustainable? Learn your target customers’ eco IQ. Learn what sustainable means to them. Fill in the blanks in their understanding of your shared roles in sustainability. Meet their sustainability requirements with your product and packaging. “ 89% of consumers haven’t heard the term ‘sustainable packaging’ or don’t know what it means.” Study by Perception Research Services
    3. 3. <ul><ul><li>87% of consumers are concerned about the environment. </li></ul></ul><ul><ul><li>Concern stops at the wallet: 25% make no green purchases other than organic foods, energy-efficient lighting. </li></ul></ul><ul><ul><li>Perception Research Services </li></ul></ul><ul><ul><li>Pressure on name brands: 33% buy store-brands. </li></ul></ul><ul><ul><ul><li>Shoppers will buy from companies that help them justify preferred, name brand purchases. IRI Times & Trends Report: Private Label 2008 - November 19, 2008 </li></ul></ul></ul><ul><ul><ul><li>Post recession, many affluent consumers will return to name brands. Iconoculture.com -July 2009 </li></ul></ul></ul><ul><ul><li>Companies that greenwash have stolen the focus from sustainable practices. </li></ul></ul><ul><ul><ul><li>Packaging Digest, November 2009 </li></ul></ul></ul><ul><ul><li>Customers are paying more attention not only to results, but to how they are achieved. </li></ul></ul><ul><ul><ul><li>Brand Features - Brandspeak, May 11, 2009 </li></ul></ul></ul><ul><ul><li>“ My job is to recycle; yours [manufacturer] is to make the packaging recyclable.” Sage research - Summer 2008 </li></ul></ul><ul><ul><li>Educate or stagnate. McKinsey’s Quarterly Journal - November 2008 </li></ul></ul>The “So-What?” of Sustainability Is the consumer sustainable? Other Sources Say …
    4. 4. Inside the Minds of Millennials to Matures A Generational Approach <ul><ul><li>Age range Approx. % US population </li></ul></ul><ul><ul><li>Millennials 17 - 25 years 32% </li></ul></ul><ul><ul><li>GenXers 26 - 40 years 20% </li></ul></ul><ul><ul><li>Boomers 41 - 55 years 28% </li></ul></ul><ul><ul><li>Matures 56+ years 20% </li></ul></ul>
    5. 5. <ul><ul><li>Each generation of consumers has its own unique set of core values, views and behaviors. </li></ul></ul><ul><ul><li>Get inside the heads of your target customers to create products and packaging that appeal to their underlying generational values and are meaningful to them. </li></ul></ul>The “So-What?” of Sustainability Is the consumer sustainable? A generational approach
    6. 6. Inside the Minds of Millennials to Matures Generational Profiles Contributions by Chuck Underwood of The Generational Imperative <ul><li>Civil rights, feminist, protest and sexual freedom movements </li></ul><ul><li>Assertive, aggressive </li></ul><ul><li>Forever young </li></ul><ul><li>Parent advocates </li></ul><ul><li>Believe they can achieve anything </li></ul><ul><li>Try it all </li></ul><ul><li>Hope, love, optimism, idealism </li></ul><ul><li>Equal rights for all </li></ul><ul><li>A golden age of kids, secure families </li></ul><ul><li>Social activism movement </li></ul><ul><li>Viet Nam </li></ul>Boomers Idealistic generation 1940s - 1960s <ul><li>Energetic doers </li></ul><ul><li>Team players </li></ul><ul><li>Loyal </li></ul><ul><li>Community-minded </li></ul><ul><li>Patriotism </li></ul><ul><li>Conformity </li></ul><ul><li>Loyalty </li></ul><ul><li>WWII (the Great War) </li></ul><ul><li>Post-War boom </li></ul><ul><li>Ozzie & Harriet families </li></ul><ul><li>Suburbs </li></ul><ul><li>TV </li></ul><ul><li>The organization man </li></ul>Matures Great generation 1920s - 1940s Behaviors Core Values Formative environment
    7. 7. Inside the Minds of Millennials to Matures Generational Profiles <ul><li>Pro underdog </li></ul><ul><li>Want recognition more than dollars; not defined by possessions </li></ul><ul><li>Work in/with gov’t </li></ul><ul><li>Live at home longer </li></ul><ul><li>See selves as poor </li></ul><ul><li>Social activism </li></ul><ul><li>Anti-greed (fallen CEOs,, celebs, etc.) </li></ul><ul><li>Love of family/parents </li></ul><ul><li>Revere elders </li></ul><ul><li>Team players </li></ul><ul><li>Live online </li></ul><ul><li>Defined by 9/11 and corporate greed </li></ul><ul><li>Helicopter parents </li></ul><ul><li>Definition incomplete </li></ul><ul><li>Still in formation phase </li></ul>Millennials Online generation 1980s - today & tomorrow <ul><li>Entrepreneurial </li></ul><ul><li>Confident women; men seeking answers </li></ul><ul><li>Focus on marriage & family </li></ul><ul><li>Innovative </li></ul><ul><li>Loyalty as quid pro quo </li></ul><ul><li>Inclusive - women, racial & ethnic groups </li></ul><ul><li>Independence, self-reliance </li></ul><ul><li>distance from older generations </li></ul><ul><li>Computer replaces old devices </li></ul><ul><li>Divorce </li></ul><ul><li>Mobile society </li></ul><ul><li>Dual careers & time- </li></ul><ul><li>starved parents </li></ul><ul><li>Latch-key kids </li></ul><ul><li>Permissiveness </li></ul><ul><li>Shift to service economy </li></ul><ul><li>Geographic shift from rust belt to sun belt </li></ul><ul><li>Title 9 & Women’s movement </li></ul><ul><li>Post civil rights movement </li></ul>GenXers Computer Generation 1960s - 1980s Behaviors Core Values Formative environment
    8. 8. Inside the Minds of Millennials to Matures Seeking Answers to the “So What?” Generational Consumer Research Overview - 2008 and 2009 <ul><ul><li>12-question, Web-based Sage Soundings © of company “friends” representing four generations: “My Views on Environmentally Friendly Packaging” </li></ul></ul><ul><ul><li>Used commonly understood terminology (no “sustainability”) </li></ul></ul><ul><ul><li>Probed eco-views, behaviors </li></ul></ul><ul><ul><li>Compared generational responses, 2008 vs. 2009: Did a deepening recession change eco-behaviors and attitudes? </li></ul></ul>
    9. 9. Inside the Minds of Millennials to Matures Seeking Answers to the “So What?” Generational Consumer Research Overview - 2008 vs. 2009 <ul><ul><li>2008: Communicated via Facebook and email </li></ul></ul><ul><ul><li>2009: Communicated via Facebook, email, LinkedIn and Twitter </li></ul></ul><ul><ul><li>2008: 760 queried, 167 responses or 22% - 6.7 MOE </li></ul></ul><ul><ul><li>2009: 736 queried, 105 responses or 14% - 8.8 MOE </li></ul></ul>
    10. 10. Inside the Minds of Millennials to Matures Generational Eco-Profiles: Beliefs and Behaviors <ul><ul><li>The eco-importance of product packaging </li></ul></ul><ul><ul><li>Somewhat important Important Very important </li></ul></ul><ul><ul><li>Millennials 50.0% 41.7% 8.3% </li></ul></ul><ul><ul><li>GenXers 26.9% 46.2% 23.1% </li></ul></ul><ul><ul><li>Boomers 44.4% 58.8% 18.5% </li></ul></ul><ul><ul><li>Matures 20.7% 41.4% 34.5% </li></ul></ul><ul><ul><li>In a Datamonitor study, “51% said that packaging was a ‘medium’ or ‘high’ concern, with the US average falling below at 43%.” July 2009 </li></ul></ul><ul><ul><li>Sage 2009 research showed that an average of 47% of all respondents think that packaging is important, while an average 21.1% think it’s very important. </li></ul></ul>
    11. 11. Inside the Minds of Millennials to Matures Generational Eco-Profiles: Beliefs and Behaviors <ul><ul><li>Beliefs in action: Recycling practices </li></ul></ul><ul><ul><li>2008 vs. 2009 </li></ul></ul><ul><ul><li>Always recycle Recycle when convenient </li></ul></ul><ul><ul><li>Millennials 43.2% - 66.7%> 56.8% - 37.5% </li></ul></ul><ul><ul><li>GenXers 69.6% - 53.8%< 30.4% - 38.5% </li></ul></ul><ul><ul><li>Boomers 67.6% - 63.0% 32.4% - 33.3% </li></ul></ul><ul><ul><li>Matures 89.7% - 82.8% 10.3% - 24.1% </li></ul></ul><ul><ul><li>“ I think we need to educate consumers what happens to packaging when we throw it away. If we saw barges or landfills, we we might become more sensitive to adding to that. But we throw the packaging in the trash, someone takes it away and it’s easy not to think about where it goes from there. “ Sage survey 2009 </li></ul></ul>
    12. 12. Inside the Minds of Millennials to Matures Generational Eco-Profiles: Beliefs and Behaviors Eco-impact of packaging on purchase decisions 2008 vs. 2009 44.8% - 31.0%< 31.0% - 41.4%> 37.9% - 55.2%> Matures 29.4%- 37.0%> 26.5% - 25.9% 38.2% - 37.0% Boomers 43.5% - 34.6%< 39.1% - 46.2%> 39.1% - 26.9%< GenXers 27.2% - 25.0% 11.1% - 20.8%> 27.2% - 29.2% Millennials Pay more for eco- friendly packaged products Choose product based on e-friendliness Assess pckg for e-friendliness
    13. 13. Inside the Minds of Millennials to Matures Generational Eco-Profiles: Beliefs and Behaviors <ul><ul><li>Choices: Favorite soft drink in non-eco-friendly container or other brand in eco-friendly container </li></ul></ul><ul><ul><li> Stick w/favorite Stick w/fav until learn more Go w/eco-friendly@higher cost Go w/eco-friendly@lower cost </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>Millennials 22.2% 24.7% 17.3% 37.0% </li></ul></ul><ul><ul><li> 12.5%< 25.0% 25.0% 45.8%> </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>GenXers 26.1% 30.4% 34.8% 17.4% 19.2%< 30.8% 23.1% 30.8%> </li></ul></ul><ul><ul><li>Boomers 26.5% 35.3% 23.5% 20.6% 33.3%> 22.2%< 22.2% 25.9%> </li></ul></ul><ul><ul><li>Matures 10.3% 27.6% 55.2% 6.9% </li></ul></ul><ul><ul><li> 6.9%< 41.4%> 27.6%  27.6%> </li></ul></ul>
    14. 14. Inside the Minds of Millennials to Matures Generational Eco-Profiles: Beliefs and Behaviors <ul><ul><li>What role do the ethics and environmental practices of a company play in your product choices? </li></ul></ul><ul><ul><li>Never buy from “bad” co. Avoid buying Buy regardless of reputation </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>Millennials 6.1% - 13.0%> 59.3% - 78.3%> 34.6% - 8.7%< </li></ul></ul><ul><ul><li>GenXers 17.4% - 20.5% 73.9% - 68.0% 8.7% - 12.0%> </li></ul></ul><ul><ul><li>Boomers 20.6% - 12.0%< 79.4% - 72.0% 20.0%> </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>Matures 33.3% - 17.9%< 64.3% - 78.5%> 7.1%> </li></ul></ul><ul><ul><li>“ Sustainably oriented packaging is one of a growing number of issues driven by ethics.” Greener Package, July 7, 2009 </li></ul></ul>
    15. 15. Inside the Minds of Millennials to Matures Packaging Perceptions Overview Perception = Reality <ul><ul><li>Eco-friendly packaging </li></ul></ul><ul><ul><li>Glass containers Made of recycled materials </li></ul></ul><ul><ul><li>Aluminum cans Refillable containers </li></ul></ul><ul><ul><li>Products sold in bulk Returnable containers </li></ul></ul><ul><ul><li>Cardboard packaging Light-weighted water bottles </li></ul></ul><ul><ul><li>Paper grocery bags Websites vs. print ads </li></ul></ul><ul><ul><li>Concentrated liquids Retort & aseptic food packaging (no </li></ul></ul><ul><ul><li>refrigeration in transport) </li></ul></ul><ul><ul><li>Packaging made from </li></ul></ul><ul><ul><li>recycled paper, </li></ul></ul><ul><ul><li>cardboard, plastic </li></ul></ul><ul><ul><li>Peat plant pots </li></ul></ul><ul><ul><li>Digital music/movie </li></ul></ul><ul><ul><li>downloads vs. CDs </li></ul></ul>
    16. 16. Inside the Minds of Millennials to Matures Packaging Perceptions Overview Perception = Reality <ul><ul><li>Non-eco-friendly packaging </li></ul></ul><ul><ul><li>Single-serve anything Products with excessive wrap </li></ul></ul><ul><ul><li>Electronics and toy packaging Anything packed in styrofoam </li></ul></ul><ul><ul><li>Heavy, hard plastic packaged Water bottles </li></ul></ul><ul><ul><li>items or bottles </li></ul></ul><ul><ul><li> Individual snack packs </li></ul></ul><ul><ul><li>Anything not made of recycled </li></ul></ul><ul><ul><li>Materials Asian packaging </li></ul></ul><ul><ul><li>Anything that can’t be recycled Children’s toy packaging </li></ul></ul><ul><ul><li>Overkill packaging Anything printed </li></ul></ul><ul><ul><li>Most plastic water bottles Blister packaging </li></ul></ul><ul><ul><li>Styrofoam anything </li></ul></ul><ul><ul><li>Take-out containers </li></ul></ul><ul><ul><li>Plastic can rings </li></ul></ul><ul><ul><li>Clam-shell containers </li></ul></ul>
    17. 17. Green Guys vs. Wannabees Naming Names <ul><li>Green Guys </li></ul><ul><ul><ul><li>Toyota/Prius </li></ul></ul></ul><ul><ul><ul><li>Subaru </li></ul></ul></ul><ul><ul><ul><li>Ford </li></ul></ul></ul><ul><ul><ul><li>Chevrolet </li></ul></ul></ul><ul><ul><ul><li>Pepsico </li></ul></ul></ul><ul><ul><ul><li>Quaker Oats </li></ul></ul></ul><ul><ul><ul><li>Dr. Bronners </li></ul></ul></ul><ul><ul><ul><li>Seventh Generation </li></ul></ul></ul><ul><ul><ul><li>Target (2008) </li></ul></ul></ul><ul><ul><ul><li>Wal-Mart (2008) </li></ul></ul></ul><ul><ul><ul><li>Whole Foods </li></ul></ul></ul><ul><ul><ul><li>UPS </li></ul></ul></ul><ul><ul><ul><li>Aveda </li></ul></ul></ul><ul><ul><ul><li>SC Johnson (2008) </li></ul></ul></ul><ul><ul><ul><li>Apple </li></ul></ul></ul><ul><ul><ul><li>Method </li></ul></ul></ul><ul><li>Wannabees </li></ul><ul><ul><li>SC Johnson (2009) </li></ul></ul><ul><ul><li>British Petroleum </li></ul></ul><ul><ul><li>Dow-Corning </li></ul></ul><ul><ul><li>Exxon-Mobil </li></ul></ul><ul><ul><li>HP </li></ul></ul><ul><ul><li>GE </li></ul></ul><ul><ul><li>Johnson & Johnson </li></ul></ul><ul><ul><li>Monsanto </li></ul></ul><ul><ul><li>Dupont </li></ul></ul><ul><ul><li>Target (2009) </li></ul></ul><ul><ul><li>Wal-Mart (2009) </li></ul></ul><ul><ul><li>MacDonalds </li></ul></ul><ul><ul><li>“ My perception is a large percentage are using this for marketing and are not ‘walking the walk’ in all aspects.” </li></ul></ul><ul><ul><li>Sage survey 2009 </li></ul></ul>
    18. 18. Eco-Friendly? Not? Naming Products <ul><li>Eco-Friendly </li></ul><ul><ul><ul><li>Ice Mountain - 30% less plastic </li></ul></ul></ul><ul><ul><ul><li>Burts Bees/Chlorox </li></ul></ul></ul><ul><ul><ul><li>OB tampons - 56% less waste than others </li></ul></ul></ul><ul><ul><ul><li>GE light bulbs </li></ul></ul></ul><ul><ul><ul><li>Nature’s Path </li></ul></ul></ul><ul><ul><ul><li>Starbucks (coffee cups) </li></ul></ul></ul><ul><ul><ul><li>OXO Good Grips </li></ul></ul></ul><ul><ul><ul><li>Mrs. Meyers & Caldrea (P&G) </li></ul></ul></ul><ul><ul><ul><li>Coca-Cola (glass bottles) </li></ul></ul></ul><ul><ul><ul><li>Sun Chips </li></ul></ul></ul><ul><ul><ul><li>Frito-Lay </li></ul></ul></ul><ul><ul><ul><li>Restore </li></ul></ul></ul><ul><ul><ul><li>True Green </li></ul></ul></ul><ul><li>Not </li></ul><ul><ul><ul><li>HP printer cartridges </li></ul></ul></ul><ul><ul><ul><li>Listerine (hard plastic bottles) </li></ul></ul></ul><ul><ul><ul><li>Lunchables </li></ul></ul></ul><ul><ul><ul><li>Fiji Water </li></ul></ul></ul><ul><ul><ul><li>TetraBrik juice boxes </li></ul></ul></ul><ul><ul><ul><li>Pringles </li></ul></ul></ul><ul><ul><ul><li>Gillette razors </li></ul></ul></ul><ul><ul><ul><li>Energizer/Duracell batteries </li></ul></ul></ul><ul><ul><ul><li>P&G beauty products (2009) </li></ul></ul></ul>
    19. 19. A Generational Approach for Sustainable Success Overall Observations from Sage Soundings <ul><ul><li>Survey responses from all generations changed from 2008 to 2009, likely due to a deepening recession. </li></ul></ul><ul><ul><ul><li>Product price overrode eco-friendliness in purchase decisions in 2009. (Think Maslow’s Pyramid of Needs). </li></ul></ul></ul><ul><ul><li>Sustainability does not mean the same thing to the consumer as it does to packaging professionals. </li></ul></ul><ul><ul><ul><li>To the consumer, a sustainable company is one that won’t go under in the near future. </li></ul></ul></ul><ul><ul><ul><li>To the consumer, sustainable packaging = recyclable. More education needed on the meaning and scope of sustainability. </li></ul></ul></ul><ul><ul><li>Consumers view (hard) plastic and over-packaging as harmful. </li></ul></ul><ul><ul><li>Consumers perceive greenwashing to be pervasive. (Cynicism toward corporations; lack of clear metrics. </li></ul></ul><ul><ul><ul><li>Perception spills over into products that are truly green. </li></ul></ul></ul><ul><ul><ul><li>Companies must provide proof of sustainability to the consumer to counter doubts due to greenwashing. - </li></ul></ul></ul>
    20. 20. A Generational Approach for Sustainable Success Overall Observations from Sage Soundings - Continued <ul><ul><li>Consumers are suspicious of inflated claims. </li></ul></ul><ul><ul><ul><li>Authenticity and transparency are essential to combat consumer skepticism about product packaging. </li></ul></ul></ul><ul><ul><li>Company/product/packaging/ethics are one in consumer perception. </li></ul></ul><ul><ul><li>Green must be an organizational cultural keystone, a key brand attribute. </li></ul></ul><ul><ul><li>Your target customers define your brand; it is what they believe it to be. </li></ul></ul>
    21. 21. Inside the Minds of Millennials to Matures Generational Eco-Profiles: Beliefs and Behaviors How to Reach and Appeal to Your Target Consumer <ul><ul><li>What would influence you to choose an eco-friendly brand over favored, non-eco friendly brand in any product category? </li></ul></ul><ul><ul><li> Lower price TV/print ads Articles/TV news Internet/YouTube Friend Web Try it </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>Millennials 83.8% 46.3% 45.0% 70.0% 53.8% </li></ul></ul><ul><ul><li>‘ 09 87.5% 50.0% 33.3% 16.7% 62.5% 8.3% 54.2% </li></ul></ul><ul><ul><li>GenXers 56.5% 47.8% 43.5% 34.8% 91.3% 34.8% 56.5% </li></ul></ul><ul><ul><li> 65.4% 46.2% 30.8% 15.4% 57.7% 15.4% 50.0% </li></ul></ul><ul><ul><li>Boomers 70.6% 52.9% 40.1% 50.0% 64.7% </li></ul></ul><ul><ul><li> 96.3% 51.9% 55.6% 22.2% 81.5% 22.2% 77.8% </li></ul></ul><ul><ul><li>Matures 46.4% 46.4% 53.6% 67.9% 25.0% 53.6% </li></ul></ul><ul><ul><li> 55.2% 69.0% 69.0% 24.1% 75.9% 20.7% 48.3% </li></ul></ul>
    22. 22. Generational Marketing/Branding Strategies for Sustainable Success <ul><li>TV/print ads </li></ul><ul><li>Articles, TV news spots </li></ul><ul><li>Lower price </li></ul><ul><li>TV/print ads </li></ul><ul><li>Friend’s recommendation </li></ul><ul><li>Trying it </li></ul><ul><li>TV/print ads </li></ul><ul><li>Articles, TV news spots </li></ul><ul><li>Lower price </li></ul><ul><li>TV/print ads </li></ul><ul><li>Friend’s recommendation </li></ul><ul><li>Trying it </li></ul><ul><li>TV/print ads </li></ul><ul><li>Lower price </li></ul><ul><li>Friend’s recommendation </li></ul><ul><li>Trying it </li></ul><ul><li>TV/print ads </li></ul><ul><li>Lower price </li></ul><ul><li>Friend’s recommendation </li></ul><ul><li>Trying it </li></ul>Market your sustainable product to them by: Market your sustainable product to them by: Market your sustainable product to them by: Market your sustainable product to them by: <ul><li>More and more assess and choose products based on </li></ul><ul><li>e-friendliness </li></ul><ul><li>Want and value information in order to make an informed purchase decision </li></ul><ul><li>Now, price is more important to them </li></ul><ul><li>Women - main buyers </li></ul><ul><li>Believe in eco-packaging and its impact on the environment </li></ul><ul><li>Want and value information in order to make an informed purchase decision </li></ul><ul><li>The only generation that might pay more for eco-friendly packaging. </li></ul><ul><li>Lifestyle/health orientation </li></ul><ul><li>Purchase decisions more price-driven than previously </li></ul><ul><li>Believe strongly in the eco-impact of product packaging </li></ul><ul><li>More “always recycle” (do what they can - if it doesn’t cost) </li></ul><ul><li>Price-driven </li></ul><ul><li>More avoid buying from companies with a bad reputation </li></ul><ul><li>Trust friends - not companies </li></ul>Most eco-involved; sustainability champions. Eco-involved; seemingly least affected by the economy. A diminished dedication to always recycling likely due to economic pressures. Aspire to be more eco-involved, IF they could afford it. Matures Boomers GenXers Millennials
    23. 23. Generational Marketing/Branding Strategies for Sustainable Success All Generations <ul><ul><li>Communicate! </li></ul></ul><ul><ul><li>Clear, truthful, consistent communications can neutralize the greenwashing perceptions and make your packaging (brand) more sustainable to the consumer. </li></ul></ul><ul><ul><li>Target customer research - identify eco-disconnects </li></ul></ul><ul><ul><li>Conduct segmented customer research on eco perceptions of company/brand(s). </li></ul></ul><ul><ul><li>Compare external findings with internal beliefs. Identify disconnects. </li></ul></ul><ul><ul><li>Develop strategic branding plan to build perception connection, authentic environmental strength. </li></ul></ul><ul><ul><li>Periodic research to capture evolving behaviors, make plan corrections. </li></ul></ul><ul><ul><li>Your corporate culture - eco from top to bottom </li></ul></ul><ul><ul><li>Create executive ethics and the environment (E&E) position. </li></ul></ul><ul><ul><li>Draw up E&E policy and goals. Upload to Website . </li></ul></ul><ul><ul><li>Put out annual E&E report: highlights and progress toward goals. </li></ul></ul><ul><ul><li>Adopt brand-related environmental/social cause. Support with X% of profits. </li></ul></ul><ul><ul><li>Get trusted third-party environmental certifications; publicize and upload to Website and onto packaging, e.g., Energy Star, FSC, etc. </li></ul></ul><ul><ul><li>Seek environmental awards; publicize on Website and packaging. </li></ul></ul>
    24. 24. Generational Marketing/Branding Strategies for Sustainable Success All Generations <ul><li>Your Website </li></ul><ul><ul><li>Create E&E section. Showcase on home page. </li></ul></ul><ul><ul><li>Offer first X thousand(s) of visitors to E&E section reduced product pricing, special offers. </li></ul></ul><ul><ul><li>Create engaging two-way, eco-forum or blog. </li></ul></ul><ul><ul><ul><li>Listen, learn from customers. </li></ul></ul></ul><ul><ul><ul><li>Encourage involvement in product development. </li></ul></ul></ul><ul><ul><ul><li>Share eco-tips, stories. </li></ul></ul></ul><ul><ul><ul><li>Let them direct course of conversation. </li></ul></ul></ul><ul><ul><ul><li>Encourage participation through reward points, etc. </li></ul></ul></ul><ul><ul><li>Build email list of everyone who downloads materials, coupons, etc. </li></ul></ul><ul><ul><ul><li>Load into CRM system. </li></ul></ul></ul><ul><ul><ul><li>Send special offers, coupons, promotional items, etc. </li></ul></ul></ul>
    25. 25. Generational Marketing/Branding Strategies for Sustainable Success All Generations <ul><ul><li>Your packaging </li></ul></ul><ul><ul><li>Evaluate packaging for carbon footprint, recyclability, reusability, materials minimization, biodegradability, etc. </li></ul></ul><ul><ul><ul><li>Review primary, secondary and tertiary packaging; can any be eliminated? </li></ul></ul></ul><ul><ul><ul><li>If packaging includes plastics, try to incorporate recyclable Nos. </li></ul></ul></ul><ul><ul><ul><li>1 and 2. </li></ul></ul></ul><ul><ul><ul><li>If appropriate, go for bulk to appeal to scrimping shoppers, or smaller, concentrated versions of your product. </li></ul></ul></ul><ul><ul><li>Consider package redesign for essential eco-qualities. </li></ul></ul><ul><ul><ul><li>Treat package/container as an ad. </li></ul></ul></ul><ul><ul><ul><li>Go for shelf-standout design that says “green.” </li></ul></ul></ul><ul><ul><ul><li>Cite authentic eco-benefits of product/brand and eco-certifications. </li></ul></ul></ul><ul><ul><ul><li>Adhere to FTC Green Guides to ensure claims substantiation. </li></ul></ul></ul><ul><ul><ul><li>Quantify claims. </li></ul></ul></ul><ul><ul><ul><li>Website address for more info. </li></ul></ul></ul>
    26. 26. Generational Marketing/Branding Strategies for Sustainable Success Millennials and GenXers <ul><ul><li>Create online life, friends for your brand </li></ul></ul><ul><ul><li>Millennials, GenXers always linked/online . </li></ul></ul><ul><ul><li>Keep engaged via two-way social media. </li></ul></ul><ul><ul><ul><li>Create an environmental blog for conversation and awareness, I.e., environmental volunteer opportunities. </li></ul></ul></ul><ul><ul><ul><li>Online contests: create an ad, design container or package (Consumer-Generated Media) </li></ul></ul></ul><ul><ul><ul><li>Turn in product labels, tops, wrappers for $ donated to environmental cause they select. </li></ul></ul></ul><ul><ul><ul><li>Use Twitter to announce contests/promotions, e.g., “A Discount-A-Day,” brand extensions, eco-events and facts, etc. </li></ul></ul></ul><ul><ul><ul><li>Load clever, non-ad videos onto YouTube, Facebook. </li></ul></ul></ul><ul><ul><ul><li>Create a Facebook company profile; use it as a communications vehicle. </li></ul></ul></ul><ul><ul><li>Help them try your brand. </li></ul></ul><ul><ul><ul><li>Downloadable free/discount coupons on Facebook, Website, partner sites, smart phones. </li></ul></ul></ul><ul><ul><ul><li>Integrate online and traditional marketing, ex., articles and ads in college papers, Facebook, targeted online and print publications directing visitor to your site for discounts, special offers. </li></ul></ul></ul><ul><ul><li>Email, post eco-relevant press releases/announcements to environmental and industry blogs . </li></ul></ul><ul><ul><li>Track what’s said about brand/product via YackTrack.com. </li></ul></ul><ul><ul><li>Sponsor environmental or cause-related events in target geographic markets. </li></ul></ul><ul><ul><ul><li>Video uploads. </li></ul></ul></ul><ul><ul><ul><li>Give out products, promo items, coupons. </li></ul></ul></ul><ul><ul><ul><li>Conduct product tests, and consumer research. </li></ul></ul></ul>
    27. 27. Generational Marketing/Branding Strategies for Sustainable Success Boomers and Matures <ul><ul><li>Eco-Masters program </li></ul></ul><ul><ul><li>Place ads, articles, TV news spots in media outlets/publications identified as favorites in target consumer research. </li></ul></ul><ul><ul><li>Focus on brand/product environmental attributes, education . </li></ul></ul><ul><ul><li>Drive them to your Website for downloadable Green Bucks Back , special offers; information updates on environmental three Rs. </li></ul></ul><ul><ul><li>Gather email addresses for them and friends. </li></ul></ul><ul><ul><li>Email or mail Green Bucks Back , special offers . </li></ul></ul><ul><ul><li>Use them for product/innovation development. Ask for e-feedback on your products/brand. Reward input. </li></ul></ul>
    28. 28. The “So-What?” of Sustainable Branding <ul><ul><li>“ We are seeing the birth of a new perspective of the world, where ecology and economics are two sides of the same coin.” Leif Johansson, CEO, Volvo Group </li></ul></ul>
    29. 29. For more information … Contact Elin at [email_address] or 612.321.9897. Blog: www. supersageme .com LinkedIn: www.linkedin.com/in/elinraymond Twitter @ElinRaymond Presentation posted on www. sagegrp .com

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