Intrinsically linked: The role ofconsumers & the role of business

Christine SchneiderDecember 08, 2009

CSCP conference Brussels: Give consumers a voice –

How to influence consumers to uptake sustainable innovations

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Quality with Brands and Technologies

Laundry /Home Care

AdhesivesTechnologies

Cosmetic /Toiletries

Our Business Sectorsand Top Brands

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Performance based on Sustainability:From Corporate Vision to Product Development

Corporate visionCorporate vision

Corporate valuesCorporate values

Focal areasFocal areas

Sustainability – A total company focus

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A sustainable Business Modelhas to focus on the entire Value Chain

DisposalDisposal

DistributionDistribution

Use phaseUse phase

Rawmaterials

Rawmaterials

TransportationTransportation

Manufacturingof productsand packaging

Manufacturingof productsand packaging

Manufacturingof ingredientsManufacturingof ingredients

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Influencing Consumer Choices:Attitudes vs. Behaviour

There is a large gap between consumer attitudes,willingness and actual behavior changeThe consumer will not compromise on performance,convenience or price

Global retail consumerssegmented by

willingness to pay forproducts

with environmental &social benefits – Surveyof consumers in Brazil,

Canada,China, France,

Germany, India, the UKand the US.

Source: The McKinseyQuarterly, March 2008.

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The Role of the Consumer:Key Learnings

Consumers are confusedabout which productsare more sustainable

On pack claims do notexplain the complexitiesof life cycle analysis andglobal supply chains

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Identify desirable ImprovementOptions & suitable Approach(es)

EnergySource

ProductDesign

WashingMachine

Consumer behavior

Progress requires Time & Continuity:Persil Advert 1982

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Persil: 50 Years Laundry Care-Compass1959 and 2009

1959 – first detailed instruction,how to use laundry detergents in thenew automatic washing mashines

2009 – detailed recommendations onlaundry care for sustainable product use

Sustainability in Laundry Washing:Progress from 1979 to 2008

Dosage (Grams per Wash Cycle)Water (Liters per Wash Cycle)

Energy per Wash Cycle (1978=100)

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Performance based on Sustainability:Our Message to the Consumer

For more than 130 years, our brands have combinedtop quality with respect for people and the environ-ment. Our branded products offer both high perfor-mance and ecological compatibility. We manufacturethem using as little water and energy as possible,under good working conditions, for resource-conserv-ing use in the home. This is what we stand for-worldwide, today and tomorrow.

Quality &Responsibility

Utilizing the Communication Portfolioto provide relevant Guidance

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The business perspective:Statement of Intent

…efficiency gains and technologicaladvances alone will not be sufficient tobring consumption to a sustainable level …

… changes will also be required to consumerlifestyles and the ways in which consumers use andchoose products and services…

…business needs to play a leadership rolein fostering more sustainable levels ofconsumption …to achieve moresustainable lifestyles.

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The Role of Business:Mainstreaming sustainable consumptionInnovation: developmentof new and improvedproducts, services andbusiness modelsincorporating provisions fordelivering maximumsocietal value at minimumenvironmental cost

Choice-Influencing: the useof marketing communicationsand awareness-raisingcampaigns to enable andencourage consumers tochoose and use productsmore efficiently andsustainably

Choice-Editing: the removal of “unsustainable” products,product components and services from the marketplace.

In partnership with other actors in society such as policy makers and retailers

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Sustainability as innovation driver

= Innodriver

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QR Code – a variable technical platform

ingredients, biodegradability

sustainability profile (focal area)

CO2 / energy calculator / LCA

what Henkel as sender stands for

Interface to POS-activities / CRM

link to retailer cooperation

information & engagement at POS and in-home

branded content

(part of brand communication mix)

digital media involvement

interactive added consumer value

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QR Code – presentation 06.11.2009

presented to public at

Deutscher Nachhaltigkeitstag

Düsseldorf, November 6, 2009

Henkel booth:

- sustainability @ Henkel

- QR-code

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Outlook:Interactive Consumer Informationen

“Clever compared“:

60 degree Celsius result in ca. 1100 g CO2 and 0,24 EURper wash load, 20 cycles per month 58 EUR per year

30 degree Celsius result in ca. 600 g CO2 and 0,11 EURper wash load, 20 cycles per month 27 EUR per year

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Performance based on SustainabilityLeading in Consumer Information for InnovativeSustainable Consumption

softwareon mobile

scanningcode

interactivemobi-website

Information-panelon our products