Marketing Sustainability to Women

Marketing Sustainability to Women

Diane MacEachernBig Green Purse

Diane MacEachern www.BigGreenPurse.com

Girlfriend

Mandy• 40’s• 3 kids• Bethesda, MD

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Girlfriend

Susan• 60’s• 2 daughters• WDC

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Girlfriend

Robyn• 30’s• Single• WDC

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Girlfriend

Sue• 40’s• 2 kids• Suburban MD

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Me

Diane (Me)• 50’s• 2 kids• Suburban MD

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Question

Who are we?

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Who Are We?

CPO’s of the home• 80-85% of all retail consumer purchases• 92% - Groceries• 80% - Home improvements• 55% - Consumer electronics• 52% - New vehicle sales• 50% - Stock market investments(Tom Peters, 2004; Consumer Electronics Assoc., 2004; Road & Travel Web, 2004, Allianz 2006)

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Who Are We?

CPO’s at work• 51% - Professional, manager position• 53% - Purchasing managers, buyers• 58% - Wholesale, retail buyers• 50%+ - Human Resource, Admin dept. heads

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Women – Biggest Spenders By Far

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90211 296 340 581

646785

6,144

Trendsight



Who Are We?

Concerned Caretakers• Toxins in utero• Body burden• Victims of environmental disasters• More heart attacks

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Who Are We?

Green Consumers• 50% want more green choices (Frank About Women, G&G, 2007)

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Goal

Use purse to protect the planet

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Question

Will we buy?

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Obstacles – What?

Cost:• Greener products too

expensive for 74%(GfK Roper 2007)

• I don’t have enough money!

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Obstacles – What?

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Susan• 60’s• 2 daughters• WDC

Cost:• Greener products too

expensive for 74%(GfK Roper 2007)

• I don’t have enough money!


The Money Pit

The Biggest Concerns• Money, health and body image• 54% worry about losing house

or not being able to pay rent(Publicis)

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Quality:• “Greener products don’t

work well” say 61%(GfK Roper 2007)

Obstacles – What?

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Obstacles – What?

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Robyn• 30’s• Single• WDC

Quality:• “Greener products don’t

work well” say 61%(GfK Roper 2007)


• CFLs• Organic cotton clothes• Paper

Green STINKS!

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Obstacles – What?

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Confusion:• Vast majority don’t really know what to do


It’s Confusing!

• “As much as terms have been tossed around, many people … are unclear as to what they mean.”

• “Eco-friendly, fuel-efficient, biodegradable, natural are used in different categories to emphasize green, but can confuse and cloud the mind of consumers.”

(Landor Study)

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Obstacles – What?

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(In)convenience:• Supply not available

• Organic food: 3.5%• Shade coffee: 2%• Efficient cars: 5%


Obstacles

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Comfort/Completeness:• All or nothing at all• Women feel more guilty (Yale, UK)


Obstacles – Why?

Producers’ Credibility Gap“Almost all companies are saying that they are

environmentally-friendly, and it’s hard to know who’s telling the truth.”

• General Public – 77%• LOHAS Consumers – 88%(NMI – 2007 LOHAS Consumer Trends Database)

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Obstacles – Why?

Producers’ Credibility Gap• Over promise / Under deliver

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“Compostable” water bottles?I don’t think so!!


Obstacles – Why?

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Producers’ Credibility Gap• Over promise / Under deliver• Myths percolate, perpetuate

“Compact fluorescent bulbs could kill me!”


Obstacles

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Producers’ Credibility Gap• Over promise / Under deliver• Myths percolate, perpetuate• Intangible vs. tangible

“Better environment” vs. Packaging


Negative “Word of Mouth”

• “Brands better at figuring out what I want/need” – 53%

• “Advertisers don’t understand me” – 72%

(Publicis)

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Negative “Word of Mouth”

• “Brands better at figuring out what I want/need” – 53%

• “Advertisers don’t understand me” – 72%

(Publicis)

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Mandy• 40’s• 3 kids• Bethesda, MD


• For average business, every 1 point increase in WOM advocacy = £8.2 mm sales increase

• 1% reduction in negative WOM = £24.84 mm in additional revenues

(London School of Economics)

Why Does “WOM” Matter?

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Why Does “WOM” Matter?

• Brands with the most conversations in their category grow 4x faster than the category average (LSE)

• Increasing conversations by 12% doubles sales growth (Bain)

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Look Who’s Talking!

Conversation is how women get, give information

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8,000 words per day

20,000 words per day

vs.


Look Who’s Talking!

Women• Not just in person:

36.2 million in the blogosphere (15.1 million write own blogs; 21.1 million read, comment)

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What are we saying?

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Women• 84% tell others when they’ve

had a great brand experience• 75% “often or all the time” talk

about brands they feel strongly about

• 50% will tell people about brands they love even when not asked

(Publicis)


What Are We Saying?

Men• product reviews,

news reports

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Women• product advice,

lifestyle suggestions


Obstacles

WHAT?• Cost• Quality• Confusion• (In)convenience• All/Nothing at all

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WHY?• Credibility gap• Overpromise/underdeliver• Perpetuate myths• Stress intangibles


Solutions to make a green brand

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Solutions

Be Bold!• Urge customers to buy 20% less

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Solutions

Be Bold!• Urge customers to buy 20% less• “Miracle on 34th Street”

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Solutions

Pay Attention• Buy Nothing Day

– 2002: Canada– 2007: 65 Countries

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Solutions

Walk the walk

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Solutions

Make choice easy • 3rd party certification

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Solutions

Make choice easy • 3rd party certification• LCA sustainability standards

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Solutions

Tell it like it is – at point of purchase, online

• Admit you’re better, not perfect• Explain higher costs…and

higher benefits

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Solutions

Tell it like it is – at point of purchase, online

• Admit you’re better, not perfect• Explain higher costs…and

higher benefits

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Sue• 40’s• 2 kids• Suburban MD


Solutions

Fund the transition:• 1% for the planet?• 2% for the future?

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Who’s Doing It Right?

Best Buy – “Jill” store, Eden Prairie• Re-designed store environment

– Earth-toned carpeting, toned-down music– Hired more female employees– Trained all employees how to talk with women

• Open-ended questions, aimed at creating conversations

• “Month after month, ranks top in nation, based on sales & profits”

• Expanded concept nationwide

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Bon Ami • Cleans almost everything• Nothing toxic• Third-party verified• Affordable• Transparent communications

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Stonyfield Farms• fossil-fuel free• third-party verified• satisfies real need• creates community• built-in philanthropy

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Forbo Marmoleum Flooring •SMaRT Certified•Transparent info•Cost-effective (replace a tile vs. the whole floor)•Positive word-of-mouth

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Make money• LOHAS market: $209 Billion• P&G: $20 Billion by 2013Save money• Wal-Mart: $10B through less packagingBrand Expansion & Consumer Loyalty• Clorox Green Works: Jan to Mar 2008 $6M

What’s In It For You?

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What’s In It For Us?

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How to make a green brand:

• Promote 20% less• Get certified• Walk the walk• Tell it like it is• Fund the transition

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Marketing Sustainability to Women