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1 Copyright © 2015 The Nielsen Company THE SUSTAINABILITY IMPERATIVE NEW INSIGHTS ON CONSUMER EXPECTATIONS OCTOBER 2015

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Page 1: The susT ainabiliT y impera Tive - Nielsen · PDF filepicture, Nielsen’s 2015 Global Corporate Sustainability Report leverages insights from the following sources:

1GLOBAL SUSTAINABILITY REPORT Copyright © 2015 The Nielsen Company

The susTainabiliTy imperaTiveNew iNsights oN coNsumer expectatioNsOctOber 2015

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2 GLOBAL SUSTAINABILITY REPORT

COnsumer brands ThaT demOnsTraTe COmmiTmenT TO susTainabiliTy outperform ThOse ThaT dOn’T• Inthepastyearalone,salesofconsumergoodsfrombrandswitha

demonstratedcommitmenttosustainabilityhavegrownmorethan4%

globally*,whilethosewithoutgrewlessthan1%.

• Sixty-sixpercentofconsumerssaytheyarewillingtopaymorefor

sustainablebrands—upfrom55%in2014and50%in2013.

It’shardtoignorethesirencalltoprotecttheplanet.Ortoremain

unmovedbythosefacingincreasinglypoorlivingconditionsacrossthe

globe.

Asaresult,manyconsumershaveadoptedmoresustainablebehaviors.

Othersareworkingfororsupportingorganizationsdedicatedtosocial

andenvironmentalchange.

Consumersaretryingtoberesponsiblecitizensoftheworld,andthey

expectthesamefromcorporations.Sowhenitcomestopurchasing,

theyaredoingtheirhomework.Checkinglabelsbeforebuying.Looking

atwebsitesforinformationonbusinessandmanufacturingpractices.

Payingattentiontopublicopiniononspecificbrandsinthenewsoron

socialmedia.

“Consumerbrandsthathaven’tembracedsustainabilityareatriskon

manyfronts,”saysCarolGstalder,SVP,Reputation&PublicRelations

Solutions,Nielsen.“Socialresponsibilityisacriticalpartofproactive

reputationmanagement.Andcompanieswithstrongreputations

outperformotherswhenitcomestoattractingtoptalent,investors,

communitypartners,andmostofallconsumers.”

*Across1300+brandsin13categoriesinanaverageof13countries.

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3GLOBAL SUSTAINABILITY REPORT Copyright © 2015 The Nielsen Company

what does it meaN to be a sustaiNable coNsumer braNd?Thereareawiderangeofbusinesspracticesthatbrandsuseto

demonstratecommitmenttosustainability.

Manycompaniesareusingtheirvastresourcestosupportnon-profits

andcivicorganizationsdedicatedtosustainability.Othersaresourcing

materialsinamannerthatismoreenvironmentallysafe.Stillothers

aretakingsmallersteps,suchasrecyclingorinstallingenergyefficient

lighting.

Byintegratingsustainabilityintotheirbusinessmodelsandpurpose—

towhateverdegree—companiescanbothhelpsocietyandincrease

goodwilltowardtheirbrands.

Consumersaremixedinhowtheyassessabrand’scommitmentto

sustainability.Forsome,seeing“organic”onalabelatthecorner

storeismostimportant.Othersarelookingatbrandstoutingamajor

reductioninglobalcarbonfootprint.Forothers,it’sanassociationwith

areputablenon-profitthatgivesbacktothecommunitiesaroundthem.

Regardless,thedatashowsaclearlinkbetweendoinggoodforthe

communityanddoingwellwithconsumers.Togetamorenuanced

picture,Nielsen’s2015GlobalCorporateSustainabilityReportleverages

insightsfromthefollowingsources:

• Onlinesurveyof30,000consumersin60countriestoassesshow

sustainabilityimpactspurchasingdecisions

• Actualretailsalesdatatodetermineifcaringandbuyingtruly

converge

• Deepdiveanalysisintowhichmarketingstrategiesbrandsuseto

demonstratetheircommitmenttosustainability(Seepage17forfull

methodology.)

Overall,resultsconfirmconventionalwisdomthatthemarketfor

sustainablegoodscontinuestoexpand.Thereareofcoursevariations

byregion,demographicsandcategory.Butwhat’smostclearisthe

opportunityforsignificantbrandgrowth,onaglobalscale,forthose

willingtolistenandrespondtoanewkindofconsumer.

Thefindingsinthissurveyare

basedonrespondentswithonline

accessin60countries.While

anonlinesurveymethodology

allowsfortremendousscale

andglobalreach,itprovidesa

perspectiveonlyonthehabits

ofexistingInternetusers,not

totalpopulations.Indeveloping

marketswhereonlinepenetration

isstillgrowing,audiencesmay

beyoungerandmoreaffluent

thanthegeneralpopulationof

thatcountry.Inaddition,survey

responsesarebasedonclaimed

behaviorratherthanactual

metereddata.

about the global surVeY methodologY

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4 GLOBAL SUSTAINABILITY REPORT

“Thehierarchyamongdriversofconsumerloyaltyandbrand

performanceischanging,”saysGraceFarraj,SVP,PublicDevelopment

&Sustainability,Nielsen.“Commitmenttosocialandenvironmental

responsibilityissurpassingsomeofthemoretraditionalinfluencesfor

manyconsumers.Brandsthatfailtotakethisintoaccountwilllikelyfall

behind.”

Toriseabovethecompetition,companiesshouldfullyunderstand

consumerexpectationsandlearnwhatitmeanstopositiontheirbrand

assustainableinthemarketstheycareaboutmost.

A 2015 Nielsen global report on new product

innovation1 revealed that consumers want more new

products on the market that are affordable, healthy,

convenient, and environmentally friendly. In fact,

a notable gap exists between the percentage of

consumers wanting more eco-friendly products (26%)

and those who say they purchased them (10%).

1“LookingtoAchieveNewProductSuccess?ListentoYourConsumers,”June2015,TheNielsenCompany

the findings suggest a gap in prOduct availability— a lack Of inventOry (perceived Or real) is an OppOrtunity fOr grOwth, says farraj.

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5GLOBAL SUSTAINABILITY REPORT Copyright © 2015 The Nielsen Company

susTainabiliTy inFluenCes COnsumer purChase inTenTInaworldofchoice,thereasonswepurchaseoneproductover

anothercanbedrivenbyamultitudeoffactors.Asconcerns

abouttheenvironmentandcorporatesustainabilitycontinueto

buildmomentumaroundtheworld,understandingtheconnection

betweensentimentandpurchasingactionshasneverbeenmore

important.Areproductsmeetingtheneedsofconsumers?Are

marketingeffortsreachingtherightconsumerswithmessagingthat

resonates?

Togainbetterinsight,Nielsenpolled30,000consumersin60

countriesacrosstheglobeandaskedthefollowingquestion:

“Thinkingabouttheconsumablebrands(non-durable)you

purchasedinthelastweek,(suchasfood,drinks,toiletries,over-

the-counterdrugs,etc.),howmuchinf luencedidthefollowing

factorshaveonyourpurchasedecision?”

*Keysustainabilitypurchasingdriverswerecategorizedaseither“VeryHeavyInfluence”or“HeavyInfluence”bythepercentageofrespondents

Theproductsaremadebyabrand/companythatItrust 62%

Theproductisknownforitshealth&wellnessbenefits 59%

Theproductismadefromfresh,naturaland/ororganicingredients 57%

Theproductisfromacompanyknownforbeingenvironmentallyfriendly 45%

Theproductisfromacompanyknownforitscommitmenttosocialvalue 43%

Theproduct’spackagingisenvironmentallyfriendly 41%

Theproductisfromacompanyknownforitscommitmenttomycommunity 41%

Isawanadontelevisionaboutthesocialand/orenvironmentalgoodthe 34%

product’scompanyisdoing

Key purchasing drivers as weighted by all survey respondents*

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6 GLOBAL SUSTAINABILITY REPORT

braNd trustToppingthelistofsustainabilityfactorsthatinfluencepurchasingfornearly

two-out-of-three(62%)ofconsumersglobally:brandtrust.

“Brandtrustandreputationareparamount,”saysGstalder.“Anexcellent

reputationmakesitfarmorelikelyacompanywillbewelcomedintonew

communities;partnerwiththemostrespectednon-profitsworkingon

issuesconsumerscareaboutmost;andbeago-tosourceforproducts

andservices.Andwhatweknowforsureisthatsustainabilityisplaying

anincreasinglysignificantroleinconsumerdecisionmaking.”

Whenitcomestosalesintent,commitmenttotheenvironmenthasthepower

toswayproductpurchasefor45%ofconsumerssurveyed.Commitmentto

eithersocialvalueortheconsumer’scommunityarealsoimportant(each

influencing43%and41%ofrespondents,respectively).

Retaildatabacksuptheimportanceoftheseinfluencers.In2014,65%oftotal

salesmeasuredgloballyweregeneratedbybrandswhosemarketingconveyed

commitmenttosocialand/orenvironmentalvalue.

“Thisindicatesanopportunityforbrandsthathavealreadybuiltahigh

leveloftrustwithconsumerstoevaluatewherebesttointroducesustainable

productsintothemarkettodrivegrowth,”saysGstalder.“Ontheflipside,

largeglobalconsumerbrandsthatignoresustainabilityincreasereputational

andbusinessrisk.Thismaygivecompetitorsofallsizes,theopportunity

tobuildtrustwiththepredominantlyyoung,socially-consciousconsumer

lookingforproductsthatalignwiththeirvalues.”

health aNd wellNessConsumersarelookingforproductsthatarebothgoodforthemandgood

forsociety.Aproduct’shealthandwellnessbenefitsareinfluentialpurchase

decisiondriversformorethanhalfofsurveyrespondents(59%).Products

madewithfresh,natural,and/ororganicingredientscarrysimilarweightwith

consumers(57%).Findingopportunitiestobridgethetwoisapowerfuland

impactfulwaytoconnectwithconsumers.

2NielsenBASESLineExtensionDATABASEPast10years(2003-2008vs.2009-2013)AllCategoriesandCountries

Nielsen’sInnovationPractices,whichconductspre-markettestsonnewproductsandconcepts,aswellassalesforecasting,hasseenasignificantincreaseinevaluationsfornewproductswithsustainabilityrelatedclaims,suchasorganic,allnatural,andenvironmentally-friendly.Thedemandforevaluatingtheseconceptshasmorethandoubledinthepastfiveyears2asconsumerprioritieshavechanged.

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7GLOBAL SUSTAINABILITY REPORT Copyright © 2015 The Nielsen Company

tV adsTVadshighlightingacompany’scommitmenttopositivesocialand/or

environmentalimpactareinfluentialinthepathtopurchasefor34%of

globalrespondents.

Brandsthatactivelyreinforcesocietalcommitmentmustamplify

andsocializetheirmessageusingmultiplesourcesanddistribution

channels.SaysGstalder:“Whilemarketinggooddeedsiscriticaland

expectedbyconsumers,authenticityandcredibilityareessential.Using

multiplecommunicationmethodsisimportant,suchasthird-party

validation(newscoverage),annualreports,affiliationwitharespected

non-profitorcivicorganization,employeevolunteerism,advertising,or

reportingactualworkinthecommunityonawebsite.”

deVeloped Vs. deVelopiNg marketsWhiletherelativeimportanceofsustainablefactorsthatinfluencethe

pathtopurchaseisconsistentacrossregions,theoverallrateswere

lowerinNorthAmericaandEuropethanintheMiddleEast,Africa,Asia,

andLatinAmerica.Consumersindevelopingmarketsareoftencloser

toandmoreawareoftheneedsintheirsurroundingcommunitiesas

theyareremindeddailyofthechallengesaroundthem,whichleadstoa

desiretogivebackandhelpothers.Thissuggestsagreaterlikelihoodto

seekoutandpaymoreforsustainableproducts.

“Consumersindevelopedmarketsarefloodedbychoice,oftenmaking

themmoreskepticalandthereforehardertoinfluence,”saysFarraj.

“Consumersarestartingtoconsidersustainablepracticesabasiccost

ofentry,ratherthanamarketdifferentiator.Goingforward,brandshave

todefineacredible,relevantsocialpurpose,delivergreatersocialvalue,

andcommunicatethatvalueeffectivelytoattractandretainconsumers.”

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8 GLOBAL SUSTAINABILITY REPORT

number OF COnsumers WillinG TO pay mOre COnTinues TO riseNielsenalsoaskedits30,000surveyrespondentsin60countries

acrosstheglobe:

“Howmuchdoyouagreewiththefollowingstatement:Iamwilling

topayextraforproductsandservicesthatcomefromcompanies

whoarecommittedtopositivesocialandenvironmentalimpact?”

Sixty-sixpercentofglobalrespondentssaytheyarewillingtopay

moreforsustainablegoods,upfrom55%in2014(and50%in2013).

Andit’snolongerjustwealthysuburbanitesinmajormarketswilling

toopentheirwalletsforsustainableofferings.Consumersacross

regions,incomelevels,andcategoriesarewillingtopaymoreif

doingsoensurestheyremainloyaltotheirvalues.

Sustainabilitysentimentisparticularlyconsistentacrossincome

levels.Thoseearning$20,000orlessareactually5%more

willingthanthosewithincomesgreaterthan$50,000topaymore

forproductsandservicesthatcomefromcompanieswhoare

committedtopositivesocialandenvironmentalimpact(68%vs.

63%).

There are some notable regional differences in willingness to pay more.Andwhencombinedwithdataonpurchasinginfluencers,ameaningful

picturestartstoemerge.

Whenitcomestosustainability,thefindingsshowitisgenerallyharder

toinfluenceconsumersindevelopedmarketstopurchaseorpaymore.

ConsumersinLatinAmerica,Asia,MiddleEast,andAfricaare23%-29%

morewillingtopayapremiumforsustainableofferings.

sixty-six percent Of glObal respOndents are willing tO pay mOre fOr sustainable gOOds, up frOm 55% in 2014 (and 50% in 2013).

2015

2014

2013

50%

55%66%

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9GLOBAL SUSTAINABILITY REPORT Copyright © 2015 The Nielsen Company

“Sustainabilityisaworldwideconcernthatcontinuestogain

momentum—especiallyincountrieswheregrowingpopulations

areputtingadditionalstressontheenvironment,”saysFarraj.“An

increasingnumberofconsumersindevelopedregionsconsider

sustainabilityactionsmoreofanimperativethanacostlyvalue-add.”

Age matters too.DespitethefactthatMillennialsarecomingofage

in oneofthemostdifficulteconomicclimatesinthepast100years,

theycontinuetobemostwillingtopayextraforsustainableofferings—

almostthree-out-of-fourrespondentsinthelatestfindings,upfrom

approximatelyhalfin2014.

Theriseinthepercentageofrespondentsunder20,alsoknownas

GenerationZ,whoarewillingtopaymorewasequallystrong—from

55%oftotalrespondentsin2014to72%in2015.“Brandsthatestablish

areputationforenvironmentalstewardshipamongtoday’syoungest

consumershaveanopportunitytonotonlygrowmarketsharebutbuild

loyaltyamongthepower-spendingMillennialsoftomorrow,too,”says

Farraj.

Butdon’tabandonBabyBoomersinthequestforMillennials.Fifty-one

percentofBoomers(50-64)arewillingtopayextra,anincreaseof7%

sincelastyear.Thissegmentremainsasubstantialandviablemarket

inthecomingdecadeforselectproductsandservicesfromsustainable

brands.

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10 GLOBAL SUSTAINABILITY REPORT

keY iNFlueNcers For those williNg to paY moreWhenwelookagainattheinfluencesonpurchaseintent(fromthechart

onpage5),wefindthatforthosewhoclaimtheyarewillingtopaymore

forsustainableofferings,theirlevelofinfluencefromsustainability

factorsincreases10to13percentagepoints.

marketers need tO cOnnect messaging with the causes that matter mOst tO cOnsumers and that alsO align with their brand.

Amongthe66%ofglobalrespondentswillingtopaymore,over50%of

themareinfluencedbykeysustainabilityfactors,suchasaproductbeing

madefromfresh,naturaland/ororganicingredients(69%),acompany

beingenvironmentallyfriendly(58%),andcompanybeingknownforits

commitmenttosocialvalue(56%).Sales,andcouponsdidn’tevenmake

thetopfive.Forthisgroup,personalvaluesaremoreimportantthan

personalbenefits,suchascostorconvenience.

“Whenitcomesdowntofinancialcommitment,asustainablesentiment

shiftstooneofincreasedsocialawarenessandresponsibility,”saidFarraj.

global respondents

those willing to pay more

Theproductsaremadebyabrand/companythatItrust 62% 72%

Theproductisknownforitshealth&wellnessbenefits 59% 70%

Theproductismadefromfresh,naturaland/ororganicingredients 57% 69%

Theproductisfromacompanyknownforbeingenvironmentallyfriendly* 45% 58%

Theproductisfromacompanyknownforitscommitmenttosocialvalue* 43% 56%

Theproduct’spackagingisenvironmentallyfriendly 41% 53%

Theproductisfromacompanyknownforitscommitmenttomycommunity 41% 53%

Isawanadontelevisionaboutthesocialand/orenvironmental 34% 45%

goodtheproduct’scompanyisdoing

top sustaiNabilitY purchasiNg driVers For global respoNdeNts Vs. those williNg to paY more

*Forthosewillingtopayextra,theimportanceofthesefactors

increasedthemost

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11GLOBAL SUSTAINABILITY REPORT Copyright © 2015 The Nielsen Company

reaChinG COnsumers WhO Care Demonstratingcommitmenttosustainabilityhasbecomeabasic

costofentry.

Regardlessoftheirdegreeofcommitment,companiesacrossthe

globearefindingwaystoleveragesustainabilityaspartoftheir

marketingstrategy.

Wedefined“demonstratedcommitment”byabrand’suseofoneof

thefollowingtacticswithinitsoverallconsumermessagingstrategy:

1. Claim Only: branddirectlyindicatesaconnectiontosustainabilityonaproduct’slabelorpackaging

2. Marketing Only: branduseswebsites,newscoverage,andothermessagingvehiclestopromotepositivesocialand/orenvironmental

impactinthelocalorglobalcommunity

3. Claim + Marketing: brandusesaproductclaimandalsointegrates

sustainabilityintoitsmarketingpromotion

marketiNg sustaiNabilitY iNitiatiVes is a Far more commoN strategY thaN usiNg product claims oN labelsNotallbrandsoffersustainableproducts.Marketingsocialand

environmentalimpactinitiativesisthepredominantstrategyusedto

reachconsumers.In2014,65%oftotalsalesmeasuredgloballywere

frombrandsthatusedamarketing-onlytactic.

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12 GLOBAL SUSTAINABILITY REPORT

tactics used bY braNdsgloballY

*as a percentage of total sales measured globally

chart 2

chart 3

claim + marKeting

claim only

marKeting only

none

4.3%

29%

7.2%

2%

4.3%

65%

0.9%4%

growth

value share among brands measured

3DoingWellByDoingGoodSustainabilityReport2014,Nielsen

WhileChart3showsthataclaim-onlytacticcorrelateswiththehighest

growthinsales(7.2%),brandsusingthistacticaccountforonly2%of

globalsales.Thismakesaclaim-onlyapproachrelativelyuncommon

acrossallregionsandcategories.Itislikelyusedbysmallerbrands

withlessresourcestomountmarketingcampaignsand/orlessmedia

competition.Overall,traditionalmarketingisadriverofsalesgrowth

forbrandscommunicatingsustainability.On-packcommunicationis

helpful,butrequiresmarketingtoreinforcethemessagingandensure

thatthemessagereachestherelevantconsumers.

However,claimsareimportanttoMillennials.In2014,51%of

Millennialsreportedcheckingtheproductpackagingforsustainability

claimsbeforemakingapurchase3.Andyetonly31%oftotalsales

measuredwerefrombrandsthatprovidethoseclaims(eitheraloneor

supplementedwithmarketing).Thisindicatesanopportunitytoincrease

brandrecognitionamongthiskeydemographicatthepointofpurchase.

29%

4%

65%

marKeting only

claim + marKeting

none

claim only 2%

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13GLOBAL SUSTAINABILITY REPORT Copyright © 2015 The Nielsen Company

lookiNg through a regioNal leNsMarketing-onlytacticsremainthemostcommonlyusedstrategy

acrossregions.Again,thismaybeattributedtothefactthatalarge

percentageofbrandshavenotyetdevelopedsustainableproducts,yet

recognizethatdemonstratingotherwaystheyareadvancingsocialand

environmentalcausesisimperative.

Butweshouldn’tignorethefactthatthepercentageofsalesthatcome

frombrandsusingbothproductclaimsandmarketingismuchhigher

indevelopedmarkets—36%inNorthAmerica,41%inEurope,and

48%inthePacificcountriesofAustraliaandNewZealand,compared

toonly9%inLatinAmericaand19%inAsia.Onceagain,thissuggests

thatmarketersmustworkhardertomeetconsumerexpectationsin

developedcountries.

TacTics used by brands in each region

*Asapercentageoftotalsalesmeasuredineachregion

eurOpe

54%

2%

2%

1%2%

3%

1%

41%

nOrth america

61%

36%

asia/pacific

66%

10%

4%

21%

latin america

88%

9%

claim + marKeting claim only marKeting only none

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14 GLOBAL SUSTAINABILITY REPORT

lookiNg through a categorY leNsSustainableclaimsaremoreprevalentamongconsumablebrandsinthe

studythanthosethatarenon-consumable.

Brandsthatuseaclaim+marketingsustainabilityapproach—including

babyfood(85%),coffee(78%),snacks(60%),andtea(61%)—comprise

themajorityofsalesmeasuredinthesecategories,respectively.

Incontrast,manyhome-goodscategoriesprimarilyuseamarketing-only

sustainabilityapproach.Brandsusingthisstrategy—suchashousehold

cleaners(86%),laundrydetergent(82%),papertowels(91%),andbath

tissues(69%)—accountforthemajorityofsalesmeasuredintheir

categories.

Theheavieruseofclaimsforconsumablegoodsmayindicatethat

customersconsidersustainabilityahigherprioritywhenbuyingproducts

theypersonallyconsumevs.thoseusedaroundthehouse.Thispresents

anopportunityforconsumableproductsthatfocussolelyonmarketing

toaddclaimstotheiroverallstrategyforincreasinggrowth.

Themarketing-onlyapproachusedbythemajorityofcompaniesselling

non-consumablegoodsmightreflectdifferentconsumerexpectations.

Sustainabilitymindedshopperslookfornon-consumableproductsmade

bybrandswithareputationforbeingsocial-and/orenvironmentally-

friendly.Thatreputationcanbeshapedbyamarketing-onlycampaign

beforeconsumersevenenterastore.

However,it’sworthnotingthatinsomenon-consumablecategories,use

ofclaimscancorrelatewithhighersalesgrowth.Whenwelookedatthe

laundrydetergentcategory,brandsthatusemarketing-onlytacticsshow

anegativevaluesalesgrowthof0.1%.Bycontrast,brandsthatusea

claimtactic(eitheraloneorwithmarketing)showhighergrowth(9.6%

amongclaimonlyand5.3%amongclaim+marketingbrands).Thedata

showssimilartrendsamongpapertowelsandbathtissue.

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15GLOBAL SUSTAINABILITY REPORT Copyright © 2015 The Nielsen Company

susTainabiliTy TacTics used by brands in each caTegory

*Asapercentageofcategorysalesmeasuredglobally

claim + marKeting claim only

marKeting only none

water

2%

4%

51% 44%

snacKs

1%

11%

28%60%

diapers

1%

78%

23%

laundry det.

82%

6%12%

coffee

1%

7%13%

78%

cereal1%

3%

48% 48%

paper towels

91%

8%

tea

3%

22%

13% 61%

cooKies

79%

2%4% 15%

hh cleaner

1%

86%

12%

1%

csd

1%

99%

bath tissues

12%

69%

3%16%

baby food

4%8%3%

85%

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16 GLOBAL SUSTAINABILITY REPORT

FIVE WAYS TO WIN WITH SUSTAINABILITY BRANDS THAT DEMONSTRATE COMMITMENT TO SUSTAINABILITY OUTPERFORM THOSE THAT DON’T.

1. FOCUS ON THE GROWING INTEREST FROM MILLENNIALS AND GENERATION Z

Overall, the number of consumers willing to pay more for brands

committed to a positive social and environmental impact continues to

rise—reaching 66% in 2015. Nearly three-out-of-four consumers ages

34 and under willing to pay more.

2. HIGHLIGHT BRAND TRUST AND COMMITMENT TO SOCIAL AND ENVIRONMENTAL IMPACT TO DRIVE PURCHASES

For more than half of consumers (62%), brand trust tops the list of

factors that in�uences purchasing. Brands may have an opportunity

to increase trust by demonstrating commitment to social and

environmental sustainability, which is even more important for

consumers who are willing to pay more.

3. HAVE A DISCERNING SUSTAINABILITY STRATEGY

Consumers in developed markets are harder to in�uence and many

consider sustainability a basic cost of entry. Brands have to de�ne a

credible, relevant social purpose and deliver greater value. Conversely,

consumers in developing markets display the highest priority for buying

sustainably and giving back to the community.

4. SUPPORT YOUR EFFORTS WITH MARKETING

Marketing good deeds is just as important as o�ering a sustainable

product and is key to attracting and retaining consumers. Across

categories measured globally, 65% of total sales come from brands that

use marketing-only tactics to communicate sustainability e�orts.

5. KEEP REGIONAL, CATEGORY AND DEMOGRAPHICS IN MIND

To rise above the competition, you must de�ne the social purpose

of your brand and fully understand consumer expectations. Di�erent

marketing tactics will have various rates of e�ectiveness based on the

region, category and age group.

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17GLOBAL SUSTAINABILITY REPORT Copyright © 2015 The Nielsen Company

abOuT The nielsen GlObal sTudy

NielseN global surVeYTheNielsenGlobalSurveyofCorporateSocialResponsibilityand

SustainabilitywasconductedbetweenFeb.23-March13,2015,andpolled

morethan30,000consumersin60countriesthroughoutAsia-Pacific,

Europe,LatinAmerica,theMiddleEast,Africa,andNorthAmerica.

Thesamplehasquotasbasedonageandsexforeachcountrybased

onitsInternetusers,andisweightedtoberepresentativeofInternet

consumers.Ithasamarginoferrorof±0.6percent.ThisNielsen

surveyisbasedonlyonthebehaviorofrespondentswithonlineaccess.

Internetpenetrationratesvarybycountry.Nielsenusesaminimum

reportingstandardof60percentInternetpenetrationoranonline

populationof10millionforsurveyinclusion.TheNielsenGlobalSurvey,

whichincludestheGlobalConsumerConfidenceIndex,wasestablished

in2005.

retail sales aNalYsisThefindingsfromtheretailsalesinformationincludedinthisreportare

collectedfromstoresusingelectronicpoint-of-saletechnologyand/or

teamsoflocalfieldauditors.Thedatarepresentsacross-sectionof1,319

brandsamong13categories(bothconsumableandnon-consumable

categories)acrossanaverageof13countries*forthe12-monthperiod

endingDecember2014.Onaverage,thebrandsmeasuredinthisstudy

represent73%of2014valuesales(USD)ineachcountry-category

analyzed(privatelabelbrandswerenotincluded).Storeswithin

Nielsen’sworldwideretailnetworkincludegrocery,drug,convenience

anddiscountretailers,who,throughvariouscooperationarrangements,

sharetheirsalesdatawithNielsen.

*Argentina,Australia,Brazil,Chile,China,Colombia,Germany,India,Italy,Philippines,Russia,Singapore,SouthKorea,Thailand,UK,U.S.[1]

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18 GLOBAL SUSTAINABILITY REPORT

about nielsen NielsenN.V.(NYSE:NLSN)isaglobalperformancemanagement

companythatprovidesacomprehensiveunderstandingofwhat

consumersWatchandBuy.Nielsen’sWatchsegmentprovidesmediaand

advertisingclientswithTotalAudiencemeasurementservicesacrossall

deviceswherecontent—video,audioandtext—isconsumed.TheBuy

segmentoffersconsumerpackagedgoodsmanufacturersandretailers

theindustry’sonlyglobalviewofretailperformancemeasurement.By

integratinginformationfromitsWatchandBuysegmentsandotherdata

sources,Nielsenprovidesitsclientswithbothworld-classmeasurement

aswellasanalyticsthathelpimproveperformance.Nielsen,anS&P500

company,hasoperationsinover100countriesthatcovermorethan90

percentoftheworld’spopulation.

Formoreinformation,visitwww.nielsen.com.

Copyright©2015TheNielsenCompany.Allrightsreserved.Nielsenand

theNielsenlogoaretrademarksorregisteredtrademarksofCZT/ACN

Trademarks,L.L.C.Otherproductandservicenamesaretrademarksor

registeredtrademarksoftheirrespectivecompanies.15/9053

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19GLOBAL SUSTAINABILITY REPORT Copyright © 2015 The Nielsen Company