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Sustainable 6
                  How brands can sustain
                themselves into the future

                  An Amárach Report


                                 June 2011
Sustainable 6                                1
Sustainable 6




 About
Amárach
Sustainable 6



                                     Research Partners
30 permanent staff                        UCD & ESRI
+ 180 part time in cati/capi teams

Full Service Research
+ field only
+ consulting

                                   Clients in Ireland
Irish management owned         + UK, USA, Germany
Guaranteed Irish member

                        100,000+ interviews last year
                            & over 400 focus groups
Six Sources of Sustainable Branding



                              1.
                            strategy

                   2.                    3.
                sentiment              social




                   4.                    5.
                science                savvy

                             6.
                            sales



Sustainable 6                                   4
Sustainable 6




1. Strategy
Sustainable 6 – Strategy:
     Good branding – and good
    marketing – has always been
       about sustainability…


Sustainable 6                     6
What Is Marketing?


                      “The strategic business function that
                     creates value by stimulating, facilitating
                         and fulfilling customer demand.

                        It does this by building brands, nurturing
                     innovation, developing relationships, creating
                      good customer service and communicating
                                         benefits.

                        With a customer-centric view, marketing
                     brings positive return on investment, satisfies
                     shareholders and stakeholders from business
                         and the community, and contributes to
                     positive behavioural change and a sustainable
                                    business future.”

Sustainable 6                                                          7
Sustainable 6




2. Sentiment
Sustainable 6




  Sustainable 6 – Sentiment:
  Sustainable brands must be
aligned with our deepest needs
        and emotions…
Forget Maslow


   New insights from Evolutionary Psychology point to a greater importance for parenting and
                  the family in life satisfaction than assumed in late 20th century




                „Old Maslow‟
                                                                „New Maslow‟

Sustainable 6                                                                                  10
Warm Feelings




                 Too     Too
                much     little
                focus   focus
                 here    here


Sustainable 6                     11
Sustainable 6
Sustainable 6
Sustainable 6




3. Social
Sustainable 6




   Sustainable 6 – Social:
The new world of social media
   and social networks will
  provide new pathways to
       sustainability…
Tipping Points

Year in which technology used by majority of Irish adults for first time:




                                   Home PC Broadband Smartphone
       landline                      2005     2009     2012*
      1980s 1990s          2000s                          2010s



                                            Internet           Facebook
                                              2007               2011*
                           Mobile
                           2000                               * Amárach forecast
Sustainable 6                                                                      16
Facebook users in Ireland*
 Only Connect




                              May 2011:
                              1,937,000
   May 2009:
                              64% of internet users
    627,000                    42% of Irish adults

Sustainable 6                                               17
                                           * socialbakers.com
Net Promoter




Sustainable 6    18
NPS Indicators for Ireland




Sustainable 6                19
Sustainable 6
Sustainable 6




4. Science
Sustainable 6




   Sustainable 6 – Science:
    We are going through a
revolution in our understanding
  of human psychology, with
   long-term implications for
  sustainability & branding…
In the Mind




Sustainable 6   23
Behavioural Economics


          “Behaviour is motivation filtered through opportunity.”
                              Clay Shirky

                                                          Capability:
                            COM-B System                  psychological or physical
                                                          ability to enact the behaviour

                                                          Motivation:
                                                          reflective and automatic
                                                          mechanisms that activate or
                                                          inhibit behaviour

                                                          Opportunity:
                                                          physical and social
                                                          environment that enables
                             Source: Prof. Susan Michie
                                                          the behaviour


Sustainable 6                                                                              24
COM-B Action Plastic Bag Tax
 COM-B in & the

    Capability:
    psychological or physical
    ability to enact the behaviour
    = low rate of tax


         Motivation:
          Reflective and automatic
         mechanisms that activate or
         inhibit behaviour
         = tax + social norms


                       Opportunity:
                        physical and social environment
                       that enables the behaviour
                       = choice at checkout
Sustainable 6                                             25
Sustainable 6




5. Savvy
Sustainable 6 – Savvy:
    Brands seeking sustainability
         will have to work with
    consumers – convincing them
     that sustainable is smart and
              not „stupid‟…

Sustainable 6                        27
Economising Habits




Sustainable 6         28
Changing Habits 1




Sustainable 6        29
Changing Habits 2




Sustainable 6        30
Not Just Price

       Most Important Factors in Deciding where to Shop for Goods/Services




Sustainable 6                                                                31
Eco-Shopping




Sustainable 6   32
Sustainable 6




6. Sales
Sustainable 6




    Sustainable 6 – Sales:
Those brands that are aligned
with the long-term dynamics in
                    3. The Smart Future
                       next wave capitalism
 Irish consumer markets will
  „double‟ their investment in
        sustainability…
Demography Is Destiny


                                        Not So Young
   30.0%
   25.0%
   20.0%
   15.0%
   10.0%
    5.0%
    0.0%
    -5.0%        0-9    10-19   20-29    30-39   40-49   50-64   65-74    75+    total
                years   years   years    years   years   years   years   years
  -10.0%
  -15.0%
                        % Change 2000-2007        % Change 2007-2010


Sustainable 6                                                                            35
Saved by Spending




Sustainable 6        36
Sustainable 6




 Towards a
Sustainable
 Recovery
Sustainable Marketing




Sustainable 6            38
This Time Is Different


    Unsustainable         Sustainable
    New Is Better         Better Is Better
    What Customers Want   What Customers Value
    Features & Benefits   Feelings & Experiences
    Be Cool               Be Human
    Bells & Whistles      Keep It Simple
    Personal Autonomy     Family Integrity
    Part of the Problem   Part of the Solution

Sustainable 6                                      39
Sustainable 6

                     Resilience
Resilience is generally defined as the ability to bounce back
from disturbance and to cope with adversity. Resilience
builds upon foundations of sustainability, embracing the
core idea of not letting the demands of the present starve the
needs of the future.

Faced with the inability to sustain our past, we reinvent
ourselves for a new context. Resilience is intimately
connected to the practice of creating futures. It is not enough
simply to bounce back: one has to bounce forward into hope
and purpose.

                                           Miriam Lueck Avery
Sustainable 6




Call us on 01 410 5200 if you want your business to
             bounce forward to success:

          Mark Nolan Managing Director
      or Michael McLoughlin Chief Executive
            or Gerard O’Neill Chairman

for a confidential discussion about your needs and to
explore how we can help you succeed through world
                class market research.

           e. gerard.oneill@amarach.com
                 w. www.amarach.com
              b. www.amarach.com/blog
          t. twitter.com/AmarachResearch

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Sustainable 6 - An Amárach Report June 2011 final

  • 1. Sustainable 6 How brands can sustain themselves into the future An Amárach Report June 2011 Sustainable 6 1
  • 3. Sustainable 6 Research Partners 30 permanent staff UCD & ESRI + 180 part time in cati/capi teams Full Service Research + field only + consulting Clients in Ireland Irish management owned + UK, USA, Germany Guaranteed Irish member 100,000+ interviews last year & over 400 focus groups
  • 4. Six Sources of Sustainable Branding 1. strategy 2. 3. sentiment social 4. 5. science savvy 6. sales Sustainable 6 4
  • 6. Sustainable 6 – Strategy: Good branding – and good marketing – has always been about sustainability… Sustainable 6 6
  • 7. What Is Marketing? “The strategic business function that creates value by stimulating, facilitating and fulfilling customer demand. It does this by building brands, nurturing innovation, developing relationships, creating good customer service and communicating benefits. With a customer-centric view, marketing brings positive return on investment, satisfies shareholders and stakeholders from business and the community, and contributes to positive behavioural change and a sustainable business future.” Sustainable 6 7
  • 9. Sustainable 6 Sustainable 6 – Sentiment: Sustainable brands must be aligned with our deepest needs and emotions…
  • 10. Forget Maslow New insights from Evolutionary Psychology point to a greater importance for parenting and the family in life satisfaction than assumed in late 20th century „Old Maslow‟ „New Maslow‟ Sustainable 6 10
  • 11. Warm Feelings Too Too much little focus focus here here Sustainable 6 11
  • 15. Sustainable 6 Sustainable 6 – Social: The new world of social media and social networks will provide new pathways to sustainability…
  • 16. Tipping Points Year in which technology used by majority of Irish adults for first time: Home PC Broadband Smartphone landline 2005 2009 2012* 1980s 1990s 2000s 2010s Internet Facebook 2007 2011* Mobile 2000 * Amárach forecast Sustainable 6 16
  • 17. Facebook users in Ireland* Only Connect May 2011: 1,937,000 May 2009: 64% of internet users 627,000 42% of Irish adults Sustainable 6 17 * socialbakers.com
  • 19. NPS Indicators for Ireland Sustainable 6 19
  • 22. Sustainable 6 Sustainable 6 – Science: We are going through a revolution in our understanding of human psychology, with long-term implications for sustainability & branding…
  • 24. Behavioural Economics “Behaviour is motivation filtered through opportunity.” Clay Shirky Capability: COM-B System psychological or physical ability to enact the behaviour Motivation: reflective and automatic mechanisms that activate or inhibit behaviour Opportunity: physical and social environment that enables Source: Prof. Susan Michie the behaviour Sustainable 6 24
  • 25. COM-B Action Plastic Bag Tax COM-B in & the Capability: psychological or physical ability to enact the behaviour = low rate of tax Motivation: Reflective and automatic mechanisms that activate or inhibit behaviour = tax + social norms Opportunity: physical and social environment that enables the behaviour = choice at checkout Sustainable 6 25
  • 27. Sustainable 6 – Savvy: Brands seeking sustainability will have to work with consumers – convincing them that sustainable is smart and not „stupid‟… Sustainable 6 27
  • 31. Not Just Price Most Important Factors in Deciding where to Shop for Goods/Services Sustainable 6 31
  • 34. Sustainable 6 Sustainable 6 – Sales: Those brands that are aligned with the long-term dynamics in 3. The Smart Future next wave capitalism Irish consumer markets will „double‟ their investment in sustainability…
  • 35. Demography Is Destiny Not So Young 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% 0-9 10-19 20-29 30-39 40-49 50-64 65-74 75+ total years years years years years years years years -10.0% -15.0% % Change 2000-2007 % Change 2007-2010 Sustainable 6 35
  • 37. Sustainable 6 Towards a Sustainable Recovery
  • 39. This Time Is Different Unsustainable Sustainable New Is Better Better Is Better What Customers Want What Customers Value Features & Benefits Feelings & Experiences Be Cool Be Human Bells & Whistles Keep It Simple Personal Autonomy Family Integrity Part of the Problem Part of the Solution Sustainable 6 39
  • 40. Sustainable 6 Resilience Resilience is generally defined as the ability to bounce back from disturbance and to cope with adversity. Resilience builds upon foundations of sustainability, embracing the core idea of not letting the demands of the present starve the needs of the future. Faced with the inability to sustain our past, we reinvent ourselves for a new context. Resilience is intimately connected to the practice of creating futures. It is not enough simply to bounce back: one has to bounce forward into hope and purpose. Miriam Lueck Avery
  • 41. Sustainable 6 Call us on 01 410 5200 if you want your business to bounce forward to success: Mark Nolan Managing Director or Michael McLoughlin Chief Executive or Gerard O’Neill Chairman for a confidential discussion about your needs and to explore how we can help you succeed through world class market research. e. gerard.oneill@amarach.com w. www.amarach.com b. www.amarach.com/blog t. twitter.com/AmarachResearch