The Power to The Power to Make a DifferenceMake a DifferenceHow strong brands and caring consumer researchers can help make the world more sustainable

SAMRAJune 3rd 2011

The theme of the 2011 SAMRA Conference is Daring to Care. Well I am a market researcher and I dare to care.

I believe that business leaders, marketers and market researchers have the opportunity to play an incredibly important role in the future of humanity and the world we live in. The opportunity is not only to make our businesses and brands sustainable, but to inspire sustainable behavior in our customers and consumers.

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Albert Einstein

“Not everything that can be counted, counts… and not everything that counts, can be counted.”

But justifying my belief based on market research data is hard. Particularly for the quantitative researcher, examining behavioral and attitudinal data to prove that a green agenda matters, brings to mind a pertinent quote from Albert Einstein:

“Not everything that can be counted counts and not everything that counts can be counted.”

There is little proof that a sustainable or green agenda matters to more than a minority of the general public today.

Much of the data I see suggests that our most important stakeholder, “the consumer,” the person who ultimately allows our companies to make a profit, provides a return to investors and pays our salaries, does not appear to care about the environment, or their future. People may say they care, but their behavior states otherwise. People care about themselves, their family and their immediate circumstances. In practice, few are willing to change their behavior or pay a premium for a brand that is greener than their existing, preferred choice.

In my presentation today, I want to demonstrate that our role as researchers in helping to build strong brands is not incompatible with a sustainable future. In fact, it may be one of the more important things we can do to make sure the future is sustainable. And I want to briefly consider what that might mean for how we approach our jobs.

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Realizing the Full Realizing the Full

Benefits of Benefits of

SustainabilitySustainability

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We all know the trends: population growth, consumption growth, resource depletion, water shortages, and climate change.

These trends explain why so many chief executives of major consumer-facing companies are willing to change the way their companies do business. They know their businesses must become more sustainable if they are to make profits in years to come.

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Why businesses care about sustainabilityWhy businesses care about sustainability

Sustainability today offers an opportunity to improve the bottom line through supply chain efficiency and reducing waste

Sustainability tomorrow provides opportunities to help consumers address new needs and create value for both business and society

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Sustainability today offers an opportunity to improve the bottom line through supply chain efficiency and reducing waste.

Sustainability tomorrow provides opportunities to help consumers address new needs and create value for both businesses and society.

Today, most major marketers in the Fortune 1000 have signed up to a sustainability agenda. For instance, UK retailer Marks & Spencer, publicizes its Plan A and has recently announced a goal to be "the world’s most sustainable retailer" by 2015.

Such commitment is positive for society and the bottom line. Less waste means less resources are required to make the same amount of stuff. And less waste means bigger profits.

In the U.S., Walmart, not content with sustainability, is now seeking to improve the eating habits of its shoppers by providing healthier packaged goods and cheaper fresh fruit and vegetables.

Proctor & Gamble, Unilever and Nestle have publicly embraced the need to improve people’s lives beyond serving a functional need. Programs like Tide’s Loads of Hope, Dove’s Campaign for Real Beauty or Pepsi’s Refresh Project, are designed to promote the brand while espousing societal beneficial causes and are becoming commonplace.

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Unfettered sales growth sits uncomfortably Unfettered sales growth sits uncomfortably alongside a sustainability agendaalongside a sustainability agenda

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We currently use more than 1.5 times what the earth can

replenish each year

But laudable though these initiatives are, their ultimate objective is to grow sales. And unfettered sales growth is tough to reconcile with true sustainability.

To be truly sustainable, growth needs to “meet present needs without compromising the ability of future generations to meet their needs.” In 2007, The Global Footprint Network estimated the ecological footprint of all humans on earth at 1.5. This means that humans were using up the earth’s resources 1.5 times faster than the earth could replenish them that year. That figure has doubled since 1996.

If we are to live within our planet’s means, we need to recognize that sustainability is not just about reducing waste in the supply chain; it is also about preventing excessive and wasteful consumption. And that is a big challenge.

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Maximizing the impact of sustainability initiativesMaximizing the impact of sustainability initiatives

The impact of production is often far less than the impact of consumption• The UK’s Environment Agency found the benefits of reusable nappies depends on how

they are laundered

Marketing often helps encourage excessive waste and confusion for marginal benefit• Failed products and green washing place both our brands and our future in jeopardy

To maximize the impact of sustainability initiatives, we need to extend the appeal of greener products to a mass market• And that means overcoming a significant degree of consumer inertia

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The adoption of a sustainability agenda by a company is a good thing. But environmental impact studies often find that the biggest issue is not poor production practices, but poor consumption practices.

For instance, it is a common belief that disposable diapers or nappies are really bad for the environment compared to reusable ones. But the UK’s Environment Agency found that reusable nappies (diapers) could have more impact on the environment than the use of disposable products. The report concludes that “the impacts for reusable nappies are highly dependent on the way they are laundered.”Unfortunately, it seems that both options might be equally bad.

When you think about it, marketing is not aligned with a sustainability agenda either. The waste involved in “growth marketing” is incredible. We launch new brands that promptly fail because they do not meet consumer expectations. We over-state the degree to which our companies pursue sustainability. And we obfuscate issues related to sustainability and green marketing in an attempt to gain competitive advantage. Actions like these result at best in marginal benefit today, while at the same time undermining trust in our brands and our collective future.

If we are to maximize the impact of our companies’ sustainability agendas, then we need to find ways to make green choices more appealing to the mass market, not the granola fringe. And that means marketing them effectively to overcome significant consumer inertia, not over claiming to maximize needless consumption.

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What People Tell UsWhat People Tell Us

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Businesses can have a vested interest in helping consumers develop more sustainable habits. But for this to happen, we need to understand where sustainability fits in the consumer’s agenda. And unfortunately, consumers seem to be somewhat less concerned about the future than are business leaders.

(I will note immediately that one of the key issues is simply finding the right language to express what sustainability really entails. When it comes to survey research, we often end up using bland descriptors like “environmentally friendly.”Sustainability and lessening our impact on the environment may be addressed by similar actions, but they are not the same thing.)

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Even if people act on their beliefs, less than 1 in 3 Even if people act on their beliefs, less than 1 in 3 are willing to pay more for environmentally friendly are willing to pay more for environmentally friendly productsproducts

8SOURCE: Yankelovich Monitor USA 2009

Important to me and I am willing to pay a little more for it

Not important to me, I will not pay

for it

Important to me but I do not expect to

pay more for it

The data shown in here is from Yankelovich’s Monitor survey in the USA. Respondents were asked a number of questions about what was important to them in terms of buying environmentally friendly, organic and locally grown products. When it came to environmentally friendly products, the majority of people stated that this was important to them. Only 16 percent stated that it was not. However, when asked whether they would be willing to pay a little more for environmentally friendly products, only one in three agreed they would do so.

So only a minority believe it is worth paying a little more for environmentally friendly products. Even then, I have to question whether or not these people will follow through on their stated beliefs. Much of the data I see suggests that motivations of habit, convenience and saving money often overwhelm people’s desire to buy “green” products or act more sustainably. For many people right now, the word “sustainability” is more a threat than anything else. The motivation to save theplanet is at odds with age-old motivations that have helped humankind become the all-consuming force it is today.

Part of the problem is that simply stating that an alternative brand is green can be counter-productive. Tell people what they are doing now is “wrong,” and it triggers feelings of guilt and defensiveness. Their automatic response is to reject the green alternative: it won’t work, it’s too expensive or it’s fine for the granola crowd but not me.

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Derived importance suggests consumers are evenDerived importance suggests consumers are evenless swayed by green credentialsless swayed by green credentials

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Category Body Care Grocery Stores Cars

Country USA UK USA UK Germany Japan

Most Important

Number of strong green brands … 0 1 2 2 0 2

Environmentally Friendly

SOURCE: BrandZ 2009

Of course, market researchers have long known that stated importance does not correlate directly with behavior. People want to believe well of themselves and they want us to think well of them too. It is not so much that they lie about socially sensitive issues; it is more that they tell us how they wish things were. Over the years, researchers have developed many techniques to adjust for effects like social desirability. One approach we use is to derive importance rather than use stated importance, by correlating attitudes against a metric we know relates to behavior, such as brand bought last or purchase consideration.

Unfortunately, while derived importance is quick and easy to apply, it does not necessarily help us make the case for sustainability or a green agenda. In category after category in Millward Brown’s BrandZ study, statements like “make an effort to be the most environmentally friendly brand” are found to be the least related to brand loyalty. In categories where environmental concern is further up the hierarchy of importance, it is because one or two brands have taken the lead and addressed that latent need.

In Japan in 2009, a high proportion of people believed Toyota and Honda were making an effort to be environmentally friendly because they had publicized their commitment, but this was not the case in Germany. Today, Toyota’s hybrid Prius is a highly successful car, not just in Japan, but around the world. Its success reflects well on Toyota and leaves the German car companies scrambling to keep up.

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There is a latent need waiting to be met by the There is a latent need waiting to be met by the right brandright brand

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Companies should make it easier for me to do the right thing (environmentally friendly, eating right, etc.)

SOURCE: Yankelovich Monitor USA 2009

Ultimately, I believe that many people do feel concerned for the future of the environment, but they lack the motivation to act on that concern. They want someone else to fix the problem. It is a latent need waiting to be met by the right brand.

Here is some more data from the Yankelovich monitor in the USA. When asked to agree or disagree with the statement, “Companies should make it easier for me to do the right thing, like being more environmentally friendly, eating right, etc.,” 71 percent agreed. There was little variation by education or income and Millennial’s were more likely to agree than older respondents.

If a viable green brand does not exist, people have no alternative but to keep using the existing products. But if a company offers them a green alternative, they may switch. And therein lies the opportunity. If people believe that they are consuming the wrong things, but aren't willing or able to expend effort to remedy the situation, brands may be able to capitalize on this by doing the right thing on consumers' behalf, thus helping them follow through on their good intentions.

The question is how best to seize this opportunity. If brands are to make sustainability into a competitive advantage and inspire their consumers to more sustainable behavior, then they must find ways of overcoming long-established behaviors.

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Purpose and Purpose and Ideals Empower Ideals Empower BrandsBrands

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Right now, we stand at a tipping point where it is not clear whether we can turn things around and live within our planet’s means.

What is clear, is that if we are to do so, we must take action quickly. And while it may seem perversely counter-intuitive, the brands that are best positioned to change consumer behavior may not be found among the plethora of new green alternatives, but rather among the most well-known brands produced by leading multinationals.

In the next section of my presentation I am going to explore how companies can help inspire consumers to be more sustainable by either building or leveraging strong, trustworthy brands.

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The Stengel Study of Best Brands The Stengel Study of Best Brands for the decade ending 2010for the decade ending 2010

• Qualified brands by:• Equity strength relative to

competition

• Equity growth over time

• Equity stretch across markets and categories

• Identified brands that consistentlyoutperformed the competition in financial growth and value over time

• Established Top 50 Best Brands ranking

• Watch the video here12

Jim Stengel, the former global marketing officer of Procter & Gamble, has a new endeavor: The Jim Stengel Company, LLC. The mission of the Jim Stengel Company is to inspire brand and business leaders globally to rethink their marketing to achieve higher performance.

Millward Brown Optimor has been working with Jim since he left P&G to create The Stengel Study of Best Brands. The study is the only one to quantitatively identify the brands that have built the strongest emotional bond with consumers and the greatest financial brand value growth over time. The study will be featured in Jim’s book, Grow, which is due out in December 2011.

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The Stengel Study of Best Brands The Stengel Study of Best Brands –– 20102010

These fifty brands have enjoyed phenomenal growth over the last decade. They have grown both their emotional bond with consumers and their financial earnings. Superficially, it is not clear that there is any commonality between them. They come from a wide variety of product categories, address very different needs and have very different positioning.

But what this disparate set of brands do share is meaningful differentiation.

Meaningful differentiation starts with the brand’s purpose. “Purpose” refers to the difference a brand intends to make in people’s lives. In order to be successful, a brand must resolve some consumer need, want, or desire. A brand’s purpose may address a purely functional need, or it may go beyond that—and many of the Best Brands do go beyond that.

Many of the Best Brands are empowered by their pursuit of ideals. An ideal is the higher-order benefit that takes a brand’s purpose beyond the functional benefits expected of a product category and allows it to deliver against higher-order needs—fulfillment, identity, affiliation, societal and environmental good. Often rooted in the brand’s heritage, an ideal creates a meaningful goal for the brand that aligns employees and the organization to better serve customers.

Purpose makes a meaningful differencePurpose makes a meaningful difference

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Pampers exists …to help mothers raise happier and healthier babies.

Jack Daniels exists …to affirm each person’s individuality and independence.

Method exists …to inspire a revolution in home cleaning and care.

Of course, an ideal may not necessarily be directly related to a green or sustainable agenda. Proctor & Gamble’s Pampers, the 34th most valuable brand in the world, is devoted to helping ensure babies are happy and healthy. In contrast, Jack Daniels exists to affirm its drinker’s individuality. But within the Best Brand portfolio, we find several brands where doing good is central to the brand’s purpose.

For instance, Method, the U.S. household cleaning products company, is dedicated to inspiring a healthy revolution in home cleaning. Method created a new household cleaning segment by combining product performance with a green, sustainable agenda. Their commitment is apparent throughout the company. For Method, there is no compromise between performance and being green, as this quote from Josh Handy, Method’s Creative Director, suggests:

“If we can't achieve a high-performing green product and packaging, then we just won't do it.”

Alongside Method, we find companies like, Natura, the Brazilian personal care brand, and Seventh Generation, another green cleaning brand in the U.S. The presence of brands like these confirms that doing good is not incompatible with growing strong brands and achieving strong financial results.

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Conversion from familiarity to positive Conversion from familiarity to positive differentiation is key to supporting a price premiumdifferentiation is key to supporting a price premium

More appealinge.g. the Starbucks  

experience

Higher

opinion

e.g. Audi's 4‐wheel drivee.g. Apple's unique 

design

Different

+ +

"Different (in a good way)"

*Familiarity defined as unaided awareness/bought/used last/owned

When we examine our BrandZ equity database, the Best Brands score well on a number of key metrics, but one combination of metrics stands out in particular. We call it Voltage, and it is a measure of the brand’s potential to command a price premium and attract new customers.

The better a brand converts people from active familiarity with a brand--either using it or thinking of it spontaneously--to agreeing that it is one they think highly of, that is more appealing to them and that is different from other brands, the more likely it is that the brand will be able to support a price premium. Notably, the metric that describes thisconversion has a statistically significant relationship with the probability that a brand will grow its value market share in the year following a survey.

In other words, brands that people think are different (in a good way) are more likely to command a price premium and to grow value market share. The degree of differentiation required for a brand to grow and prosper will depend on the nature of the brand and category. The key question to ask is whether a brand is different enough, given its competitive context.

Brands that are Brands that are ““different in a good waydifferent in a good way”” shift the shift the demand curve out demand curve out

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High

Average

Low

Different (in a good way)

SOURCE: Millward Brown and IRI data

This chart shows the results of a Millward Brown analysis of Voltage against IRI volume share and price data. Better differentiated brands support the same volume at higher prices.

The Best Brands in our analysis don’t just sell more. They are able to charge more because they are meaningfully different. Meaningful differentiation is the essential property of any successful brand. People choose brands that they believe offer something more relevant and compelling than the competition. And maybe that is part of the solution to the sustainability issue facing marketers. To grow profits we need to focus on growing the value perceived in our brands. The more meaningfully different people perceive them to be the more income we can generate from each sale.

The question is, can we make green credentials meaningfully different for the mass market?

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Sustainability is Not Sustainability is Not

Incompatible with Incompatible with

Business SuccessBusiness Success

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All our research data suggests that the more people trust a brand, the more likely they are to be inspired to action by it. But today, green is not a badge of trust. Instead it is a reason for suspicion. Is that claim true? Will the product really work? And how much extra do I have to pay?

With this in mind, let me introduce you to a Best Brand that has sustainability “baked-in” to its business and brand. In its own country it is a well-known and trusted brand, one that succeeds in inspiring people to buy greener and more sustainable products.

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NaturaNatura: a longstanding commitment to sustainability: a longstanding commitment to sustainability

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Natura is a Brazilian brand that was founded in 1969 by two guys with shared passions: cosmetics and people. In 1974, the company opted for a direct sales model using consultants similar to that of Avon. While this business model has undoubtedly helped fuel the brand’s success in Latin America, Natura is also credited for embracing sustainability and the use of natural ingredients in its formulas.

In 1983, Natura began to produce and sell refills. This initiative resulted in a significant decrease in the disposal of solid waste in the environment. And in 2007, the company put into practice the Carbon Neutral Program, designed to reduce and offset all emissions of greenhouse gases (GHG). Since then, in spite of CAGR in earnings of nearly 20 percent over the last three years, Natura claims to have reduced carbon emissions by nearly 10 percent.

Today, Natura aims to transform social and environmental challenges into opportunities for business by espousing the Triple Bottom Line. The Triple Bottom Line encompasses strong cash flow for good financial results, social impact through generation of wealth for their consultants, and environmental impact through encouraging use of refills, sustainable extraction and use of recycled and recyclable materials. I have met with executives from Natura and can personally vouch for the passion created by the corporate commitment to these goals. Nor has commitment to social and environmental good detracted from the strength of the Natura brand. The philosophy behind the business practices may be well ahead of the general consumer mindset in Brazil, but people still appreciate Natura for its healthy and sustainable products.

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How do these two brands compare?How do these two brands compare?

A strong global brandStrong earnings growth based on extension across product categories and countries

Strong social responsibility credentials

The Campaign For Real Beauty

6% bought last in BrazilGood value positioning

A strong regional brand• Strong earnings growth based on

extension across product categories and countries

Strong social and environmental responsibility credentials26% bought last in Brazil• Justified premium positioning

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While Natura might be a new brand to many of you, I would like to compare it to one that may be more familiar.

Unilever’s Dove brand is also one of our Best Brands. The appeal of this brand has been successfully extended across product categories and countries to achieve significant earnings growth over the last decade. At the heart of the brand is its commitment to The Campaign For Real Beauty, which seeks to inspire women to be comfortable with themselves and to have confidence in their own unique beauty.

Dove has been a significant brand in Brazil for some time. But in spite of the same degree of familiarity and perceived performance on key category criteria, over four times as many Brazilians who buy body care products claim that the last brand they purchased was Natura, not Dove. Moreover, they are likely to have paid a higher price for their purchases. In Brazil, Natura commands what we call a justified premium positioning compared to Dove’s good value positioning.

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Even if Even if NaturaNatura’’ss customers are not interested in the customers are not interested in the environment, the brand does good by being goodenvironment, the brand does good by being good

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Made by companies you can trust

Are leading the way

Made by companies that behave responsibly 

toward the environment

Have recommended to a friend

Offer something different

SOURCE: Millward Brown BrandZ 2010

The data you see here explains why Natura can command both higher sales and premium prices.

74 percent are willing to agree that Natura is a brand they trust and 65 percent agree that it is a company leading the way. Moreover, a large proportion of Brazilian body care consumers agree that Natura is scientifically advanced, keeps skin in better condition and offers a good range of products. These functional benefits ladder up to a strong emotional appeal.

Global brands like Dove and Avon may be as well known as Natura, but they simply do not inspire the same degree of passion. 54 percent of people claim to have recommended Natura to a friend compared to 41 percent for Avon and 22 percent for Dove. Overall, based on 2010 Voltage scores, Natura’s growth potential is over three times that of Dove.

To what degree does Natura’s sustainability commitment drive the brand’s appeal? It is certainly well-known that Natura espouses a green agenda. 64 percent of personal care buyers in Brazil agree that the brand behaves in a responsible way toward the environment. But is that a cause of Natura’s strength or the result of it? I would argue that Natura’s environmental credentials are not the key driver of the brand’s success but supplementary ones.

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NaturaNatura’’ss lead helps elevate the importance lead helps elevate the importance of being environmentally friendlyof being environmentally friendly

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Country Brazil USA UK

Most Important

SOURCE: Millward Brown BrandZ 2010

Comparison with the same analysis in the USA and UK finds that trying to be environmentally friendly has far less importance in those countries. In the USA, it ranks as the least important influence on purchase and in the UK ranks 14th out of 15 attributes. To my mind, this suggests that Natura is influencing or activating latent needs in Brazil that have not been addressed in the other two countries. (Although the slightly higher ranking in the UK may reflect the presence of The Body Shop which has also espoused a more sustainable positioning.)

Because Natura satisfies basic category needs as well as or better than the competition, being environmentally friendly then becomes the deciding factor in whether someone chooses the brand or not. Without the functional credentials and trust, Natura would not be the powerhouse it is today. Natura does good by being good.

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Making Making ““GreenGreen””

Matter to the MassMatter to the Mass--

MarketMarket

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In many categories today, we find new brands dedicated to offering a more sustainable alternative to existing brands. The presence of small, growing brands dedicated to a green, more sustainable agenda is undoubtedly a good thing. But as we shall see, their impact is hampered by their lack of brand strength. Lacking awareness, credibility or resonance with the majority of consumers, green brands often struggle to make an impact. If their sustainability agenda is to really take hold, green brands must address these shortcomings.

As brand marketers well know, building a brand is a process that takes significant time and resources. For instance, it has taken Natura over 40 years to become the powerhouse it is today. On the other hand, if more existing, strong brands were to adopt a true sustainability agenda, then the positive impact would not only be greater, but it would likely be far faster. Familiar, trusted brands can bring a green agenda to people who otherwise would see it as a threat to their peace of mind. What is more, it helps ensure the sustainability of the brands themselves, positioning them for future success.

In the next section of the presentation I want to use one specific product category in the U.S. to examine the challenges facing less well-known green brands. One of the most interesting brand battles playing out right now in the U.S. is in a product category that most of us would rather avoid. Call them diapers or nappies, most people would rather someone else had to deal with them once used.

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Seventh Generation needs to improve awareness of Seventh Generation needs to improve awareness of what its diapers stand forwhat its diapers stand for

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% familiar with brand

SOURCE: Millward Brown BrandZ 2010

In the U.S., the category is dominated by two well-known brands: P&G’s Pampers and Kimberly-Clark’s Huggies. But over the last decade, a number of brands have been launched trying to take share from the established brands by offering a greener alternative.

One of them, Seventh Generation, is one of our Best Brands and is best known as a household cleaning brand, notably in paper products like toilet paper, tissues and towels. In 2010, 42 percent of diaper buyers were familiar with the Seventh Generation brand name and 24 percent agreed the brand behaved in a responsible way toward the environment. But active awareness of the Seventh Generation brand within the diaper category was low at 16 percent. If the brand is to make a difference and succeed in the diaper category, it needs to focus on the basics of sales and marketing and improve its awareness among potential diaper buyers.

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Seventh Generation needs to reframe Seventh Generation needs to reframe perceptions of affordabilityperceptions of affordability

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% familiar with brand who think it costs more than they are prepared to pay

SOURCE: Millward Brown BrandZ 2010

But there is another hurdle that the brand must overcome. Seventh Generation also needs to improve its affordability if it is to broaden its customer base. As we saw earlier, there is a general antipathy to paying extra for a product even if it is considered better for the environment. Whether it is perception or reality, many people believe Seventh Generation diapers are too expensive. Among those at Presence and not Relevance, 75 percent perceive the brand as too expensive. For most of these people – close to nine out of 10 of them – that is the only “negative”they cite for the brand. Addressing perceptions of affordability would go a long way to growing the value of the Seventh Generation brand in this category.

How could Seventh Generation address this issue? They certainly should not lower the brand’s price by lowering margins in the hope of driving more volume. This strategy invariably ends up lowering profitability. Instead, Seventh Generation might use cost control to lower the actual price and maintain margins, or it might try to reframe people’s perceptions of value. But “green” as it is typically presented is unlikely to provide the necessary reason—unless it can be turned into a message that resonates with a wider audience.

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On its own, On its own, ““greengreen”” is simply not a compelling is simply not a compelling motivation for buying a diapermotivation for buying a diaper

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… Meet the needs of you and your baby, Are more comfortable for baby to wear than others, Unaided awareness, Is the most popular, Have a better range of nappies than other brands to suit the needs of your baby, Want to be seen buying, Allow your baby to move around more easily than others, Let your baby’s skin breathe better than others, Are brands that are setting the trends…

top

bottom

middle

SOURCE: Millward Brown BrandZ 2010

Why is “green” not enough to justify a price premium? Let’s have a look at the relative importance of the different attributes in our study in relation to their predicted brand loyalty.

Of the 17 attributes included in our analysis of importance, “are less harmful to the environment” ranks last. Most important are attributes like “appeal to you more than other brands” and “prevent leaks better than other brands.” So even though 86 percent of people who believe Seventh Generation diapers perform in an acceptable manner also agree that the brand is less harmful to the environment, this perception will only matter to consumer’s brand choice if it can be coupled with something that has more motivational power. Mothers want a convenient solution to the poop problem. But Mothers also care far more about their babies well-being than that of the environment. They want to be sure the diaper they choose will make their babies comfortable and content. If a brand can convince them that it is a good choice on these grounds then, all things being equal, green credentials might get them to switch.

If Seventh Generation is to make a significant impact in this category, it must first deliver against buyer’s core motivations and then seek to inspire people through its commitment to a green agenda. For the brand’s offer to be meaningful and valuable, it must resonate with the target consumer. The brand must meet current needs as well as the existing alternatives and then turn its green credentials into an advantage.

“Look! You get all this and it’s green too.”

Seventh Generation has succeeded in other categories, as the company’s financial track record indicates. They can also succeed in the diaper category–but it will take time. And perhaps there is already another diaper brand well-positioned to make a big difference?

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Which brand is better positioned to Which brand is better positioned to inspire people today?inspire people today?

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Made by companies you can trust

Have recommended to a friend

Help mothers raise happy healthy babies

Are made by companies trying to make people's lives better

Made by companies that behave responsibly toward the environment

SOURCE: Millward Brown BrandZ 2010

And that brings us to the other Best Brand in the diaper category, Pampers.

Pampers’ mission to help mothers raise happy healthy babies is directly aligned with what consumers value most in this category. It is a mission that resonates with millions of mums around the world.

Decades of innovation have ensured that Pampers is seen as a credible functional solution, and decades of marketing have reinforced the belief that Pampers is both a good product and an appealing brand. Pamper’s Voltage score is nearly 40 percent higher than that of Seventh Generation (and off a much bigger base).

Of category users, 50 percent agree that they trust Pampers and 45 percent of people claim to have recommended Pampers to another person compared to only 3 percent for Seventh Generation. Of category users, 43 percent agree that Pampers help mothers raise happy healthy babies, and 43 percent believe Pampers is made by a company that is leading the way, even if only 15 percent believe it acts in a responsible way towards the environment.

So which brand is actually better positioned to do the most good? Pampers or Seventh Generation? With functional and emotional credentials already established, Pampers can choose to espouse a green agenda and make it successful.

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PampersPampers’’ social agenda can inspire people, social agenda can inspire people, so why not an environmental one too?so why not an environmental one too?

“The mom blogger group was so pumped by the initiative that MindyRoberts at The Mommy Blog …whipped up a donation widget. This will live on the Alpha Mom site from now until I at least raise enough money for 10,000 vaccines, or $500. Then I will personally match that amount with up to an additional 10,000 vaccines.”

- Catherine

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And there is good reason to believe that Pampers could inspire people to more sustainable behavior, because the brand already inspires them to action in another arena. Catherine, a blogger at Alpha Mom, reports on Pampers’ mission to eradicate Neonatal Tetanus. The Pampers/UNICEF 1 Pack = 1 Vaccine program has helped provide more than 100 million vaccines that protect moms and babies in developing countries from maternal and neonatal tetanus. As Catherine states, she was so personally inspired by this program that she offered to personally match other people’s donations to the program to the tune of $500. This is the sort of passion that a Best Brand can inspire when it takes a stand on something.

It is not that Team Pampers ignores the need for sustainability. If you visit their website, you will find a section titled EcoNursery where “We envision a future where less is more.” And it appears that Pampers may be experimenting with a part reusable diaper to compete with another green brand called gDiaper. If Pampers chose to launch such a product, the likely impact could be huge, particularly as Pampers is well positioned to solve one of the major environmental issues with reusable diapers. With its sibling brand Tide, Pampers could surely inspire consumers to launder a reusable diaper appropriately. The potential for Pampers to do good by espousing a more sustainable and environmentally friendly agenda is enormous.

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The Role Consumer The Role Consumer

Researchers Can Researchers Can

PlayPlay

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So what has all this got to do with market researchers? I would suggest it has a lot to do with us. It is our job to understand and articulate what consumers will need in future, not just what they want now. And we have an important role to play in ensuring effective behavior change and to reduce marketing waste.

Market research is traditionally represented as “the voice of the consumer.” We are taught to be unbiased and to let the data speak for itself. If we do that when it comes to researching a green agenda, we are likely to believe many respondents who blithely claim that they want to buy green products and are willing to pay a premium for them.

But if we blindly accept people’s responses at face value, we risk leading our firms astray. We may recommend new product launches, re-engineering products to be greener, or launching new campaigns designed to promote a green agenda, only to find that consumers are less eager to act than our data might have suggested. Instead of making business more efficient and sustainable, we create waste: wasted resources, wasted time and wasted professional capital.

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Working with instincts and motivations not simply Working with instincts and motivations not simply putting people on the defensiveputting people on the defensive

There is a latent and growing consumer need for greener and more sustainable brands• Six out of 10 people in the U.S. agree “people consume far more of everything than

they really need.”

But touting green credentials can be counter-productive• Triggers feelings of guilt, defensiveness and rejection

We need to address core consumer motivations to help make green the deciding benefit benefit• Relevant, credible, trustworthy and green

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There is little doubt in my mind that a latent need exists for greener and more sustainable products. We know there is a strong latent demand among consumers to do the right thing. In the U.S., seven out of 10 people think companies should help them do so. In 2008, over six out of 10 people interviewed by Yankelovich stated people consume far more of everything than they really need.

To me, this suggests that there is a real opportunity for the first brand to credibly address that need. The trick is to offer a relevant and credible solution without making it the sole rationale for switching. Simply stating that a brand is green can be counter-productive. Tell people what they are doing is “wrong” and it triggers feelings of guilt and defensiveness. Their automatic response is to reject the green alternative: it won’t work, it’s too expensive or it’s fine for the granola crowd.

If we are to get people to adopt more sustainable brands, we need to make sure that the brand proposition resonates at a personal level. For instance, Method’s financial and brand success is not based in its commitment to being green, no matter how strong, rather the brand inspires people to desire a happy, healthy home. By appealing to a more general motivation “green” becomes a supplementary and positive influence on brand choice.

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Maximizing the impact of sustainabilityMaximizing the impact of sustainability

Sustainability is an opportunity for business• But for the new sustainability agenda to have the maximum impact we need our

consumers to act sustainably too

Marketing is all about getting consumers to act on their beliefs• Marketing can help make green an acceptable choice through new products and

different messaging

Consumer research has an important role to play• Helping anticipate the consumer mindset and identify opportunities and catalysts for

change

This one is personal• That is if you intend to go on living on this planet

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Many companies have adopted a sustainability agenda because it is in their best interests to do so. But without impacting consumer behavior, that agenda will have limited impact on resource depletion and carbon emissions. To have the maximum impact, we need to have the general public buy into sustainability too. Right now, my concern is that consumers are lagging behind consumer-facing companies in their commitment to do the right thing by the planet.

I believe we have a responsibility to use our brands to inspire more sustainable behavior in the majority of the population who are not yet motivated to buy green, recycle and reuse. After all, marketing is all about getting people to act on their beliefs. And, as I hope I have shown, green need not be a threat to established brands. It could be a major opportunity. Helping to bolster their standing against the tide of new, greener alternatives.

Market researchers have an important role to ensure marketing is focused to best effect. To that extent, I am not proposing anything new for our role. But perhaps what we need to do is be more mindful in the way we approach our jobs. Seeking opportunities for change, not simply feeding back data on the status quo. Staying ahead of the general consumer mindset by talking to thought leaders and trendsetters. Helping ensure our brands are a catalyst for positive change not a reason for consumers to do nothing.

And on this occasion market researchers actually do have a personal interest in shaping consumer’s attitudes and behavior. That is, assuming you (and your family) intend to continue living on this planet.

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So maybe itSo maybe it’’s s time we all dare time we all dare to careto careThank you for listening.

Rather than being dispassionate observers and advisors, it is time we all dare to care. Let’s put our skills and passion to work to help build strong brands, a better world and a better future.

Thank you for listening.

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