The So-What? of Sustainability:Inside the Minds of Millennials to Matures

The “So-What?” of Sustainability:Inside the Minds of Millennials to Matures

Elin Raymond, PresidentThe Sage Group, Inc.

The “So-What?” of SustainabilityWhat’s with the “So-What?”

Create sustainabilityConnectionsThe “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’theard the term ‘sustainablepackaging’ or don’t know what it means.”Study by Perception Research Services

87% of consumers are concerned about the environment. Concern stops at the wallet: 25% make no green purchases other than organic foods,

energy-efficient lighting. 1. Perception Research Services

Pressure on name brands: 33% buy store-brands. Shoppers will buy from companies that help them justify preferred, name brand purchases. IRI

Times & Trends Report: Private Label 2008 - November 19, 2008 Post recession, many affluent consumers will return to name brands. Iconoculture.com -July 2009

Companies that greenwash have stolen the focus from sustainable practices.Packaging Digest, November 2009

Customers are paying more attention not only to results, but to how they are achieved.Brand Features - Brandspeak, May 11, 2009

“My job is to recycle; yours [manufacturer] is to make the packaging recyclable.”Sage research - Summer 2008

Educate or stagnate. McKinsey’s Quarterly Journal - November 2008

The “So-What?” of SustainabilityIs the consumer sustainable?

Other Sources Say …

Inside the Minds of Millennials to MaturesA Generational Approach

Age range Approx. % US population

Millennials 17 - 25 years 32%

GenXers 26 - 40 years 20%

Boomers 41 - 55 years 28%

Matures 56+ years 20%

Each generation of consumers has its own unique set of core values, views and behaviors.

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.

The “So-What?” of SustainabilityIs the consumer sustainable? A generational approach

Inside the Minds of Millennials to MaturesGenerational Profiles

Contributions by Chuck Underwood of The Generational Imperative

Formative environment

Core Values Behaviors

MaturesGreat generation

1920s - 1940s

WWII (the Great War)Post-War boomOzzie & Harriet familiesSuburbsTVThe organization man

Community-mindedPatriotismConformityLoyalty

Energetic doersTeam playersLoyal

BoomersIdealistic generation

1940s - 1960s

A golden age of kids, secure familiesSocial activism movementViet Nam

Believe they can achieve anythingTry it allHope, love, optimism, idealismEqual rights for all

Civil rights, feminist, protest and sexual freedom movementsAssertive, aggressiveForever youngParent advocates

Inside the Minds of Millennials to MaturesGenerational Profiles

Formative environment

Core Values Behaviors

GenXersComputer Generation

1960s - 1980s

Computer replaces old devicesDivorceMobile society Dual careers & time-

starved parentsLatch-key kidsPermissivenessShift to service economyGeographic shift from rust belt to sun beltTitle 9 & Women’s movementPost civil rights movement

Inclusive - women, racial & ethnic groupsIndependence, self-reliancedistance from older generations

EntrepreneurialConfident women; men seeking answersFocus on marriage & familyInnovativeLoyalty as quid pro quo

MillennialsOnline generation

1980s - today & tomorrow

Live onlineDefined by 9/11 and corporate greedHelicopter parentsDefinition incompleteStill in formation phase

Social activismAnti-greed (fallen CEOs,, celebs, etc.)Love of family/parentsRevere eldersTeam players

Pro underdogWant recognition more than dollars; not defined by possessionsWork in/with gov’tLive at home longerSee selves as poor

Inside the Minds of Millennials to MaturesSeeking Answers to the “So What?”

Generational Consumer Research Overview - 2008 and 2009

12-question, Web-based Sage Soundings© of company “friends” representing four generations: “My Views on Environmentally Friendly Packaging”

Used commonly understood terminology (no “sustainability”)

Probed eco-views, behaviors

Compared generational responses, 2008 vs. 2009: Did a deepening recession change eco-behaviors and attitudes?

Inside the Minds of Millennials to MaturesSeeking Answers to the “So What?”

Generational Consumer Research Overview - 2008 vs. 2009

2008: Communicated via Facebook and email 2009: Communicated via Facebook, email, LinkedIn and Twitter

2008: 760 queried, 167 responses or 22% - 6.7 MOE 2009: 736 queried, 105 responses or 14% - 8.8 MOE

Inside the Minds of Millennials to MaturesGenerational Eco-Profiles: Beliefs and Behaviors

The eco-importance of product packaging

Somewhat important Important Very important

Millennials 50.0% 41.7% 8.3%

GenXers 26.9% 46.2% 23.1%

Boomers 44.4% 58.8% 18.5%

Matures 20.7% 41.4% 34.5%

In a Datamonitor study, “51% said that packaging was a ‘medium’ or ‘high’ concern, with the US average falling below at 43%.” July 2009

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.


Beliefs in action: Recycling practices2008 vs. 2009

Always recycle Recycle when convenient

Millennials 43.2% - 66.7%> 56.8% - 37.5%

GenXers 69.6% - 53.8%< 30.4% - 38.5%

Boomers 67.6% - 63.0% 32.4% - 33.3%

Matures 89.7% - 82.8% 10.3% - 24.1%

“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


Eco-impact of packaging on purchase decisions2008 vs. 2009

Assess pckg for

e-friendliness

Choose product based on

e-friendliness

Pay more for eco-

friendly packaged products

Millennials

27.2% - 29.2% 11.1% - 20.8%> 27.2% - 25.0%

GenXers 39.1% - 26.9%< 39.1% - 46.2%> 43.5% - 34.6%<

Boomers 38.2% - 37.0% 26.5% - 25.9% 29.4%-37.0%>

Matures 37.9% - 55.2%> 31.0% - 41.4%> 44.8% - 31.0%<


Choices: Favorite soft drink in non-eco-friendly container or other brand in eco-friendly container

Stick w/favorite Stick w/fav until learn more Go w/eco-friendly@higher cost Go w/eco-friendly@lower cost

Millennials 22.2% 24.7% 17.3% 37.0%

12.5%< 25.0% 25.0% 45.8%>

GenXers 26.1% 30.4% 34.8% 17.4% 19.2%< 30.8% 23.1% 30.8%>

Boomers 26.5% 35.3% 23.5% 20.6% 33.3%> 22.2%< 22.2% 25.9%>

Matures 10.3% 27.6% 55.2% 6.9% 6.9%< 41.4%> 27.6% 27.6%>


What role do the ethics and environmental practices of a company play in your product choices?

Never buy from “bad” co. Avoid buying Buy regardless of reputation

Millennials 6.1% -13.0%> 59.3% - 78.3%> 34.6% - 8.7%<

GenXers 17.4% - 20.5% 73.9% - 68.0% 8.7% -12.0%>

Boomers 20.6% -12.0%< 79.4% - 72.0% 20.0%>

Matures 33.3% - 17.9%< 64.3% - 78.5%> 7.1%>

“Sustainably oriented packaging is one of a growing number of issues driven by ethics.” Greener Package, July 7, 2009

Inside the Minds of Millennials to MaturesPackaging Perceptions Overview

Perception = Reality

Eco-friendly packaging

Glass containers Made of recycled materials

Aluminum cans Refillable containers

Products sold in bulk Returnable containers

Cardboard packaging Light-weighted water bottles

Paper grocery bags Websites vs. print ads

Concentrated liquids Retort & aseptic food packaging (norefrigeration in transport)

Packaging made from recycled paper, cardboard, plastic

Peat plant pots

Digital music/movie downloads vs. CDs

Inside the Minds of Millennials to Matures Packaging Perceptions Overview

Perception = RealityNon-eco-friendly packagingSingle-serve anything Products with

excessive wrap

Electronics and toy packaging Anything packed in styrofoam

Heavy, hard plastic packaged Water bottlesitems or bottles

Individual snack packs

Anything not made of recycled Materials Asian packaging

Anything that can’t be recycled Children’s toy packaging

Overkill packaging Anything printed

Most plastic water bottles Blister packaging

Styrofoam anything

Take-out containers

Plastic can rings

Clam-shell containers

Green Guys vs. WannabeesNaming Names

Green Guys• Toyota/Prius• Subaru• Ford• Chevrolet• Pepsico• Quaker Oats• Dr. Bronners• Seventh Generation• Target (2008)• Wal-Mart (2008) • Whole Foods• UPS• Aveda• SC Johnson (2008)• Apple• Method

Wannabees• SC Johnson (2009)• British Petroleum• Dow-Corning• Exxon-Mobil• HP• GE• Johnson & Johnson• Monsanto• Dupont• Target (2009)• Wal-Mart (2009) • MacDonalds

“My perception is a large percentage are using this for marketing and are not ‘walking the walk’ in all aspects.” Sage survey 2009

Eco-Friendly? Not?Naming Products

Eco-Friendly• Ice Mountain - 30% less

plastic • Burts Bees/Chlorox• OB tampons - 56% less

waste than others• GE light bulbs• Nature’s Path• Starbucks (coffee cups)• OXO Good Grips• Mrs. Meyers & Caldrea (P&G)• Coca-Cola (glass bottles) • Sun Chips• Frito-Lay

• Restore• True Green

Not• HP printer cartridges• Listerine (hard plastic

bottles)• Lunchables• Fiji Water• TetraBrik juice boxes• Pringles

• Gillette razors• Energizer/Duracell

batteries• P&G beauty products

(2009)

A Generational Approach forSustainable Success

Overall Observations from Sage Soundings

Survey responses from all generations changed from 2008 to 2009, likely due to a deepening recession.

Product price overrode eco-friendliness in purchase decisions in 2009. (Think Maslow’s Pyramid of Needs).

Sustainability does not mean the same thing to the consumer as it does to packaging professionals.

To the consumer, a sustainable company is one that won’t go under in the near future. To the consumer, sustainable packaging = recyclable. More education needed on the meaning

and scope of sustainability. Consumers view (hard) plastic and over-packaging as harmful.

Consumers perceive greenwashing to be pervasive. (Cynicism toward corporations; lack of clear metrics.

Perception spills over into products that are truly green. Companies must provide proof of sustainability to the consumer to counter doubts due to

greenwashing. -

A Generational Approach forSustainable Success

Overall Observations from Sage Soundings - Continued

Consumers are suspicious of inflated claims. Authenticity and transparency are essential to combat consumer skepticism about product

packaging.

Company/product/packaging/ethics are one in consumer perception.

Green must be an organizational cultural keystone, a key brand attribute.

Your target customers define your brand; it is what they believe it to be.


How to Reach and Appeal to Your Target Consumer

What would influence you to choose an eco-friendly brand over favored, non-eco friendly brand in any product category?

Lower price TV/print ads Articles/TV news Internet/YouTube Friend Web Try it

Millennials 83.8% 46.3% 45.0% 70.0% 53.8%

‘09 87.5% 50.0% 33.3% 16.7% 62.5% 8.3% 54.2%

GenXers 56.5% 47.8% 43.5% 34.8% 91.3% 34.8% 56.5% 65.4% 46.2% 30.8% 15.4% 57.7% 15.4% 50.0%

Boomers 70.6% 52.9% 40.1% 50.0% 64.7% 96.3% 51.9% 55.6% 22.2% 81.5% 22.2% 77.8%

Matures 46.4% 46.4% 53.6% 67.9% 25.0% 53.6% 55.2% 69.0% 69.0% 24.1% 75.9% 20.7% 48.3%

Generational Marketing/BrandingStrategies for Sustainable Success

Millennials GenXers Boomers Matures

Aspire to be more eco-involved, IF they could afford it.

A diminished dedication to always recycling likely due to economic pressures.

Eco-involved; seemingly least affected by the economy.

Most eco-involved; sustainability champions.

More “always recycle” (do what they can - if it doesn’t cost)Price-drivenMore avoid buying from companies with a bad reputationTrust friends - not companies

Purchase decisions more price-driven than previouslyBelieve strongly in the eco-impact of product packaging

Believe in eco-packaging and its impact on the environmentWant and value information in order to make an informed purchase decisionThe only generation that might pay more for eco-friendly packaging.Lifestyle/health orientation

More and more assess and choose products based on

e-friendlinessWant and value information in order to make an informed purchase decisionNow, price is more important to themWomen - main buyers

Market your sustainable product to them by:




TV/print adsLower priceFriend’s recommendationTrying it

TV/print adsLower priceFriend’s recommendationTrying it

TV/print adsArticles, TV news spotsLower priceTV/print adsFriend’s recommendationTrying it

TV/print adsArticles, TV news spotsLower priceTV/print adsFriend’s recommendationTrying it

Generational Marketing/Branding Strategies forSustainable Success

All Generations

Communicate! Clear, truthful, consistent communications can neutralize the greenwashing perceptions and make your

packaging (brand) more sustainable to the consumer.

Target customer research - identify eco-disconnects Conduct segmented customer research on eco perceptions of company/brand(s). Compare external findings with internal beliefs. Identify disconnects. Develop strategic branding plan to build perception connection, authentic environmental strength. Periodic research to capture evolving behaviors, make plan corrections.

Your corporate culture - eco from top to bottom Create executive ethics and the environment (E&E) position. Draw up E&E policy and goals. Upload to Website. Put out annual E&E report: highlights and progress toward goals. Adopt brand-related environmental/social cause. Support with X% of profits. Get trusted third-party environmental certifications; publicize and upload to Website and onto packaging, e.g.,

Energy Star, FSC, etc. Seek environmental awards; publicize on Website and packaging.


All Generations

Your Website Create E&E section. Showcase on home page. Offer first X thousand(s) of visitors to E&E section reduced product pricing, special

offers. Create engaging two-way, eco-forum or blog.

Listen, learn from customers. Encourage involvement in product development. Share eco-tips, stories. Let them direct course of conversation. Encourage participation through reward points, etc.

Build email list of everyone who downloads materials, coupons, etc. Load into CRM system. Send special offers, coupons, promotional items, etc.


All GenerationsYour packaging

Evaluate packaging for carbon footprint, recyclability, reusability, materials minimization, biodegradability, etc.

Review primary, secondary and tertiary packaging; can any be eliminated? If packaging includes plastics, try to incorporate recyclable Nos.

1 and 2. If appropriate, go for bulk to appeal to scrimping shoppers, or smaller, concentrated versions of

your product.

Consider package redesign for essential eco-qualities. Treat package/container as an ad.Treat package/container as an ad. Go for shelf-standout design that says “green.” Cite authentic eco-benefits of product/brand and eco-certifications. Adhere to FTC Green Guides to ensure claims substantiation. Quantify claims. Website address for more info.


Millennials and GenXers

Create online life, friends for your brand Millennials, GenXers always linked/online. Keep engaged via two-way social media.

Create an environmental blog for conversation and awareness, I.e., environmental volunteer opportunities. Online contests: create an ad, design container or package (Consumer-Generated Media) Turn in product labels, tops, wrappers for $ donated to environmental cause they select. Use Twitter to announce contests/promotions, e.g., “A Discount-A-Day,” brand extensions, eco-events and facts, etc. Load clever, non-ad videos onto YouTube, Facebook. Create a Facebook company profile; use it as a communications vehicle.

Help them try your brand. Downloadable free/discount coupons on Facebook, Website, partner sites, smart phones. 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. Email, post eco-relevant press releases/announcements to environmental and industry blogs. Track what’s said about brand/product via YackTrack.com. Sponsor environmental or cause-related events in target geographic markets.

Video uploads. Give out products, promo items, coupons. Conduct product tests, and consumer research.


Boomers and Matures

Eco-Masters program Place ads, articles, TV news spots in media outlets/publications identified as favorites in

target consumer research.

Focus on brand/product environmental attributes, education.

Drive them to your Website for downloadable Green Bucks Back, special offers; information updates on environmental three Rs.

Gather email addresses for them and friends.

Email or mail Green Bucks Back, special offers.

Use them for product/innovation development. Ask for e-feedback on your products/brand. Reward input.

The “So-What?” of Sustainable Branding

“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

For more information …

Contact Elin at [email protected] or 612.321.9897. Blog: www.supersageme.com LinkedIn: www.linkedin.com/in/elinraymondTwitter@ElinRaymond

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The So-What? of Sustainability:Inside the Minds of Millennials to Matures