Please save trees by keeping this document electronic, or recycle. CONFIDENTIAL, DO NOT DISTRIBUTE David Steuer, VP, Client Strategy, Saatchi & Saatchi S July 27, 2009 Sustainability: Why Bother?
Nov 21, 2014
Please save trees by keeping this document electronic, or recycle.CONFIDENTIAL, DO NOT DISTRIBUTE
David Steuer, VP, Client Strategy, Saatchi & Saatchi S
July 27, 2009
Sustainability: Why Bother?
Assess &Imagine
Focus &Design
Implement &Measure
Deliver End-to-End Sustainability Strategy and
Implementation
• LCA measurement/ reporting• Supply chain innovation• Public Relations• Creative• Shopper marketing
2
Corporate Strategy
Strategy diagnostic
“North Star” goal-setting
Strategy refinement
Organizational
Strategy
Organizational opportunity assessment
Sustainabilityengagement strategy
Personal sustainability certification
Brand Strategy
Brand positioning
Lifecycle opportunityanalysis
Stakeholder Communicationand Channel Strategies
Cause marketing
3
Sustainability is much more than “Green”
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SOCIETY, TECHNOLOGY, RESOURCES
Legislation is Mandating Change
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$100 Billion Stimulating—Energy Sector
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Social
Issues that affect all members of society, including poverty, violence, injustice, education, health care, and labor and human rights
59%
Cultural
Issues surrounding how communities manifest identity and preserve and cultivate traditions and customs from generation to generation
36%
Environmental
Issues that affect Earth's ecology, including climate change, preservation of natural resources, carbon footprint, and conservation
58%
Economic
Issues that affect how humans meet their basic needs, including employment opportunities, access to health care, and safe housing
53%
Social and Economic concerns are just as important to individuals as Environmental ones.
Global shopper importance ratings:
11
12
2007 2009
11%
27%
54%
8%
11%
<1%
68%
19%
Light
Blues
Dark
Blues
Core Blues
Disengaged
Pure Blues <1%Pure Blues
Core Blues
Light Blues
Disengaged
Increased Consumer Demand
Sustainability fast becoming mainstream, increasing from 12% to 36% in 2 years.
My Lifestyle is Blue
Dreams of a world where she can ALWAYS buy sustainable products
Views sustainability is part of her identity
Believes she is leveraging consumerism to participate in a larger cause
Incorporates sustainable products into her life at all levels, from asparagus to shampoo to solar panels
My Actions Are Blue
…for Me, My Family, My Community and the Planet
Possesses confidence and pride around her depth of knowledge and engagement in the world of sustainability
Sees the regular purchase of green products as taking better care of her family
Understands the environmental impact of some of her actions and teaches her children about it
Considers herself a spokesperson for the mission of sustainability
The Health and Wellbeing of My Family Comes First
Believes in global warming and is intrigued by “going-green”
Isn’t often familiar with the term “sustainability”
Has purchased the “low hanging fruit” like green cleaners, compact fluorescent light bulbs
Needs to encounter green products at her regular retailer at an affordable price
Sees sustainability as shrouded in mystery, and doesn’t think she’ll ever understand
Dark Blues
Light Blues
Core Blues
13
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Source: Datamonitor's Product Launch Analytics
Sustainable products are stillthe fastest growing sector
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Retailers are Challenging Manufacturers
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Establishing New Standards and Measurements
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…And Innovating for Competitive Advantage
Increasingly, They Are Using Their Position as the Sustainability “Gatekeepers” to Win the Voice of the Consumer.
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Yet in almost all cases, sustainability is not top-of-mind in the store.
Globally, 22% of shoppers think about sustainability when shopping.
91% of shoppers would like to be reminded more about sustainability while shopping.
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Only 55% believe the media.
Few (14%) trust themselves to determine actual sustainability of products.
Only 19% believe they have enough information to evaluate sustainable claims.
Who can they trust to help them?
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48% of shoppers say that greater availability of sustainable products would increase their purchases – they struggle to find these options.
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Do Something
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Nothing: No Longer an Option
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Nothing: No Longer an Option
Extract
ProductFormulation
Manufacture
Distribute
Use
Recycle
Dispose
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WHAT’S YOUR STORY?
Across the globe, people want to feel like they are doing something to help. An altruistic feeling drives purchasing.
Feel like I’m helping 1 1 3 2T 1 1 1 1
Sends message to companies that we want better products
6 3 6 2T 5 2 2 3
Reduce packaging waste
4 2 2 4 6 7 3 4
Make my home safer
5 7 7 1 2 4 7 7
Save Energy 3 5 1 7 4 3 6 6
Save money 2 4 4 6 7 5 5 5
Teach children conservation
7 6 5 5 3 6 4 2
Ranking of Reasons for Wanting to Purchase Sustainable Products:
Q. What is your primary reason for wanting to buy sustainable products? Rankings based on % selecting each response of 7 options.
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Consumer Values: Ways in to Sustainability
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Consumer Values: Ways in to Sustainability
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Focus Areas for Values Groups
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Use TENTransparencyEngagementNetworks
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You can run, but you can’t hide.
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Nearly half of all shoppers (48%) strongly agree/agree with the statement:
“I always research the products I buy on my own to evaluate how sustainable they are.”
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Transparency: Addressed the Warning?
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45% of shoppers say that more ingredient/materials information motivates them.
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http://findthefarmer.com/details.php?lotCode=15JAN10&FarmID=12
Transparency: Traceability at FindtheFarmer.com
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Employee Engagement: Walmart Personal Sustainability Project
Results
• More than 500,000 Associates voluntarily adopted Personal Sustainability Projects
• Over 19,000 employees quit smoking for $34 million in estimated annual savings
• Almost 185,000 pounds of weight lost by Associates
• 1,243,000 miles walked, swam, and biked
• Created over 16,000 “Idea Groups” around Personal Sustainability
• More than 4 million pounds of materials recycled
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http://www.youtube.com/watch?v=XOraijjCHLA
TEN Integrated: Frito Lay
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Networks: Waste = Food
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Networks: SVN (Sustainable Value Network)
40
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Networks: NGOs
41
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