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Green Marketing

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  1. Green Marketing

  2. Definition of Green Consumer • LOHAS: (Lifestyle of Heath and Sustainability) very progressive on environment and society, looking for ways to do more; not too concerned about price (16%). • Naturalites: primarily concerned about personal health and wellness, and use many natural products; would like to do more to protect the environment (25%). • Conventionals: practical, like to see the results of what they do; interested in green products that make sense (e.g., save money) in the long run (23%). • Drifters: not too concerned about the environment, figure there’s time to fix environmental problems; don’t necessarily buy a lot of green products, though may like to “be seen” in Whole Foods to enhance their image (23%). • Unconcerned: have other priorities, not really sure what green products are available, and probably wouldn’t be interested anyway; they buy products strictly on price, value, quality, and convenience (14%). Population Breakdown Source: Natural Marketing Institute 2/02/10

  3. Psychographic Segmentation for Affluent Individuals Affluent Globalists (18% of population/$207 Billion inspending power) • Would be willing to pay more for products that are environmentally friendly • Minimizing impact on the environment is an important part of life • Believe in protecting the environment Source: Ipsos/Medelsohn Affluent Study November 2009

  4. Profile of Green Attitude & Behavior Segments Age 18-34 110 85 83 18-49 105 91 97 25-54 101 97 105 45-54 96 100 119 55-64 85 115 129 Education Graduated College Plus 85 117 228 Household Income $60,000+ 95 111 145 $75,000+ 94 113 160 $100,000+ 93 115 178 $200,000+ 95 114 239 Index (to Total U.S.) Green at Their Green Ungreen Best Advocates Source: 2009 Doublebase Mediamark Research & Intelligence; Weighted to Population (000) – Base: All

  5. Profile of Green Attitude & Behavior Segments Index (to Total U.S.) Green at Their Green Ungreen Best Advocates Geographic Marketing Regions New England 96 112 178 Mid-Atlantic 89 122 116 East Central 107 91 89 West Central 96 115 96 Southeast 112 82 65 Southwest 117 70 67 Pacific 85 111 135 Source: 2009 Doublebase Mediamark Research & Intelligence; Weighted to Population (000) – Base: All

  6. Profile of Regional Differences in Green Attitude Segments Green Attitudes & Behaviors Ungreen Green at the Supermarket Green in Theory Green But Only If Green at Their Best Green Advocates Source: 2009 Doublebase Mediamark Research & Intelligence; Weighted to Population (000) – Base: All

  7. Degree to Which U.S. Adult Internet Users Incorporate Green Behavior in Daily Lifestyle • Most consumers are incorporating “Green” standards into their lifestyle. This trend is lowest at the extremes in ages. However the amount of people that completely accept “Green” is amongst the youngest demographic: 18-24. • The least eco-conscious consumers are the oldest of the grouping at 65+. • The most eco-conscious consumers are the 55-64 year olds who display tendencies that lean somewhat toward eco-friendly behaviors. Source: Environmental Leader and MediaBuyerPlanner Study as seen in Center for Media Research 1/4/10

  8. Consumer Preference for Green • 67% Americans agree that “even in tough economic times, it is important to purchase products with social and environmental benefits” • 51% say they are “willing to pay more” for them • 66% say price is very important in purchase decision • 64% look for quality • 55% want “good for your health” • 49% look for “made in the USA” Source: Consumer Report 2009

  9. Green Benefits Increased in Importance Since Last Year % of Respondents indicating this attribute is “very important” for products purchased. Source: BBMG Conscious Consumer Report: Redefining Value in a New Economy 2009

  10. Green Company Marketing • According to the green marketing study, 82% indicated they expect to spend more on green marketing in the future. • At least half of respondents plan to engage in online marketing efforts in the future. • 28% of marketers think green marketing is more effective than other marketing messages, compared to 6% of marketers who think it is less effective. • Management is more optimistic, with 46% of them indicating that green marketing is more efficacious. • 23% of those in operations think green marketing is more effective. • Companies with smaller marketing budgets tend to spend more on green marketing. Those with budgets under $250,000 spend just over 26%, while those with budgets of more than $50 million spend 6% on green marketing. Source: Environmental Leader and MediaBuyerPlanner Study as seen in Center for Media Research 1/4/10

  11. Environmental Advertising by Media • Online: 74.2% of respondents have spent marketing budgets online. • Print: Print is the second strongest media for Green marketing at 49.8%. • Direct: Direct completes the top trio, at the third highest ad spend, with 40% of total spend. • Other Media: Outdoor, Radio & TV, and Mobile account for the remaining ad spending. Respondents Reporting Green Marketing Budgets in Media Categories Source: Environmental Leader and MediaBuyerPlanner Study as seen in Center for Media Research 1/4/10

  12. Consumer Attitudes Towards Green Companies • 41% of Americans could not name a single company that they consider the most socially and environmentally responsible. • Within these respondents: • 71% of consumers agree that they “avoid purchasing from companies whose practices they disagree with” • 55% tell others to shop for products based on a company's social and environmental practices • 48% tell others to drop products based on a company's social and environmental practices Source: Environmental Leader and MediaBuyerPlanner Study as seen in Center for Media Research 1/4/10