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RESEARCH ROUNDTABLE: 	

LATEST CONSUMER INSIGHTS FROM SLM’S TOP RESEARCH PICKS	

Karen Barnes, Shelton Group	

Hernan Sanchaz, Havas Media Intelligence	

Jonathan Yohannan, Cone Communications	

Kevin Williams, Pure Branding	

Annie Longsworth, Saatchi & Saatchi S	

Henk Campher, Edelman
RESEARCH ROUNDTABLE: 	

LATEST CONSUMER INSIGHTS FROM SLM’S TOP RESEARCH PICKS	




Karen Barnes, Shelton Group
Finding the bright spots
when the research isn’t very positive

            Sustainable Brands
                June 2012
We help clients define and leverage their
sustainability stories for market advantage.
Sustainability is in a slump
•  Purchases and behaviors are down,
   almost across the board
•  Purchases and behaviors are down,
   almost across the board
•  The average number of green
   activities isn’t increasing
•  Purchases and behaviors are down,
   almost across the board
•  The average number of green
   activities isn’t increasing
•  Searching for greener products is
   down
What’s not working
•  Eco-labels and certifications
•  Eco-labels and certifications
•  Price premiums
•  Eco-labels and certifications
•  Price premiums
•  Global warming messages
•  Eco-labels and certifications
•  Price premiums
•  Global warming messages
•  Reliance on natural enthusiasm to
   create long-term market growth
What’s working
•  Appeals to personal health
•  Appeals to personal health
•  Corporate sustainability stories
•  Appeals to personal health
•  Corporate sustainability stories
•  Social influence
Americans say they
   are most strongly
impacted by monetary
    influences, but
 rewards or penalties
 were essentially tied.
Americans are more
influenced by
learning about the
dangers and risks
instead of possible
benefits.
HALF
SUCCESSFU
L
YES
•  Shoplifting
•  DUI
•  Throwing trash out
   window
•  Cheat on taxes
•  Smoke cigarettes
•  No seat belt
•  Low mpg car
•  Don’t recycle
•  Use paper plates
•  Keep thermostat at 73
•  Let water run while
   brushing
So what does all this mean?
Sustainability is in a slump.

People need to see, experience and
realize the benefits of being green.

It’s time for an injection of motivation to
keep from losing more momentum.
It’s time to re-examine what’s
working and what’s not, and
make adjustments.
Social influence is a powerful
tool that’s producing results.
Don’t give up.

Keep pushing.

Find the bright spots.

Inspire others.
Thanks!

         Karen Barnes
Email: kbarnes@sheltongrp.com
    Twitter: @barneshead
Shelton Segments
RESEARCH ROUNDTABLE: 	

LATEST CONSUMER INSIGHTS FROM SLM’S TOP RESEARCH PICKS	




Hernan Sanchaz, Havas Media Intelligence
Meaningful Brands 2012

June, 2012
Meaningful Brands: a new cartography




                                                                           10        Global:
                                                                                     •  More than 50.000 consumers
                                                                                     •  14 countries
                                                                                     •  More than 300 brands in 10
                                                                                        industries
                                                                                     •  Explores new territories:
                                                                                        Personal Well-being + Sustainability
                                                                                     •  Launched: November’11




                                                        •  More than 30,000
                                                           consumers
                           •  Explores the opinion of   •  10 countries: Brazil,
                              more than 20.000             China, France, Germany,
                              consumers                    India, Mexico, Spain,
                           •  10 countries                 Colombia, UK, and USA
                           •  20 brands per market      •  More than 150 brands
2007-08, “Consumer                                         from 10 industries
Perception on Climate                                   •  BSF Branding &
Change and its potential
                                                           Communication Services
impact on business”




                                                        Meaningful Brands 2012   3
Meaningful Brands main results




                         Meaningful Brands 2012   4
Brands need to redefine relationships with people




Contribution to
people’s quality of life

% of brands improving
notably people’s quality
of life
                            20%         8%                     5%    30%   70%


Brands Attachment
% of brands people
would really care if they
disappeared ...
                            29%       12%                      18%   53%   53%



                                  Meaningful Brands 2012   5
…to meet their new standards…

                                                     Consumers	
  care	
  only	
  
                                                     about	
  brands	
  that	
  bring	
  
                                                     meaningful	
  value	
  to	
  
                                                     social	
  cons6tuencies	
  
                                                     (consumers	
  themselves,	
  
                                                     communi6es,	
  socie6es):	
  	
  
                                                     Authen'c,	
  Shared,	
  
                                                     Sustainable	
  
                                                     	
  
                                                     	
  
                                                     Concrete,	
  personal	
  
                                                     benefits	
  not	
  just	
  
                                                     “stories”,	
  “myths”,	
  
                                                     “iden66es”,	
  or	
  even	
  
                                                     “DNA”	
  
                                                     	
  

                        Meaningful Brands 2012   6
Consumers are expecting more from Corporations

                                                         %	
  Agree,	
  2011	
  
       %	
  Agree	
  
                        Global	
         Europe          USA                Latam                                Asia



                                         87             77      10%        80                   4%          92            2%




                                         20   -‐‑‒38%   12     -‐‑‒37%     12              -‐‑‒68%          20          -‐‑‒33%




                                         22             27     -‐‑‒16%     32                 -‐‑‒5%        54           10%




                                         69             54     -‐‑‒12%     63              -‐‑‒10%          62           -‐‑‒6%




                                         14             17                 19                               57


                                     7

                                                                                   *Growth	
  2011	
  vs.	
  2010	
  
Consumers have a deeper connection with
those brands that improve their lives




                                         Source:	
  Havas	
  Media	
  Meaningful	
  Brands	
  2012	
  


                         Meaningful Brands 2012 8
Meaningful Brands create new experiences




                         Meaningful Brands 2012   9
And communicate differently



       I talk              WE talk                     THEY talk



       Talk                 Think                        Trust


                           What the
                           consumer
      What the                                        What others say
                          experiences
      Brand says                                      about the Brand
                        (Interactions &
                         conversations)




                        Meaningful Brands 2012   10
Meaningful Brands: a Cartography


                            Brand Value
                         Sales/Brand Equity



                         Meaningful Brands




                    Meaningful Communications



             OUTCOMES                                         COMMUNICATIONS
    Output    Personal   Collective                    Talk        Think       Trust




                              Meaningful Brands 2012   11
Meaningful Brands create superior value by offering
better experiences and interactions with people




                                                        HM Intelligence BI 7/5/12

                          Meaningful Brands 2012   12
RESEARCH ROUNDTABLE: 	

LATEST CONSUMER INSIGHTS FROM SLM’S TOP RESEARCH PICKS	




Jonathan Yohannan, Cone Communications
2012 Cone Green Gap Trend Tracker
Consumers Still Shop with Environment in Mind




                     69% of
                   Americans
                  consider the
                  environment
                  when making
                   purchasing
                    decisions
Environment is Personal
Companies Should Help Educate




                            71%	
  
                       wish companies
                       would do a better
                       job helping them
                       understand the
                       terms they use
Messages Should Be Readily Available




   73%	
  
want companies
to provide more
  environmental
 information on-
           pack
Using Technology to Inform
What Do Consumers Really Expect of Companies?
Honest Communication is Key

                        75%
say it’s okay if a company is not environmentally
  perfect, as long as it’s honest about its efforts
From Cradle to Grave, Consumers Expect it All

            Americans believe companies are
 responsible for addressing the environmental impact of:
Disposal is Top-of-Mind

Yet, their purchases are most influenced by
environmental messages about responsible:
Addressing Issues Along Supply Chain


How a product   How a product   How a product
  is made          is used       is disposed of
Motivations for Buying Environmental Products



                      90% believe it will save them time or
                            money in the long run

                          88% believe it’s healthier for
                        themselves, their families or their
                                communities

                            27% want to preserve the
                       environment for future generations
Prepared to Punish

                77%
would stop buying if they discover an
 environmental claim is misleading
Learning from Others.
      Getting it Right.
Learning From Others
Getting it Right
The Opportunity for Companies

                Americans continue to be confused
                about environmental messages in the
                market

                Consumers want companies to help them
                understand environmental terms and
                messages


                Precise messages, such as
                certifications or specific data, are most
                influential

                Consumers seek relevant claims that
                demonstrate how environmental benefits
                can save them time and money


                Consumers will stop buying if they feel
                misled by environmental claims
Jonathan Yohannan
Executive Vice President   Questions?
JYohannan@coneinc.com
617-939-8350
RESEARCH ROUNDTABLE: 	

LATEST CONSUMER INSIGHTS FROM SLM’S TOP RESEARCH PICKS	




Kevin Williams, Pure Branding
KEY TRENDS




Sunday, June 3, 2012
100% NATURAL




Sunday, June 3, 2012
American farmers markets 1994—2011




         4x
Sunday, June 3, 2012
GROWING




Sunday, June 3, 2012
American CSAs 1990—2010



      400 » 12,500+
Sunday, June 3, 2012
CSA GROWTH




Sunday, June 3, 2012
WHY?


Sunday, June 3, 2012
METHODOLOGY

      »    We launched a survey with questions selected to understand
           participant behavior, preferences, and need as
           it relates to food.

      »    5,584 participants with an active interest in food were recruited
           from three consumer panels. These panels provided a range in
           their levels of engagement.

      »    In depth Qualitative interviews with over 60 participants
           representing various segments




Sunday, June 3, 2012
METHODOLOGY

      »    We launched an online survey with questions selected to
           understand producer needs, attitudes and understandings of
           their customers.

      »    Over 1,100 farmers and ranchers who are engaged in the
           sustainable and local food economy.

      »    In depth Qualitative interviews with over 30 producers
           representing various segments




Sunday, June 3, 2012
METHODOLOGY

       »    Interviewed Industry Experts

            •          Local Harvest                •   Gastronomica Magazine
            •          Slow Food US                 •   Farm Folk City Folk -
            •          Slow Food Canada             •   PVGrows
            •          Farm Aid                     •   USDA
            •          Regional Food Hubs           •   Agriculture and Agri-Food Canada
            •          National Association         •   Bon Appétit Food Management
                       of Produce Market Managers       Company




Sunday, June 3, 2012
OMNIBUS

      Two Omnibus studies, consisting of 2000 North American general
      populace participants balanced demographically
      All participants were asked three questions:
      passion for food, importance of community, and where they shop




Sunday, June 3, 2012
PASSION

      “I am the kind of person who is passionate about food (whether
      eating it, understanding where it comes from and/or preparing it
      for myself and others?)”
         » Strongly agree: 69%     Passionate
           »    Agree: 31%
           »    Neither agree nor disagree: 0% screened
           »    Disagree: 0% screened
           »    Strongly disagree: 0% screened




Sunday, June 3, 2012
PRIORITY

      Based on your first impression, what is most important to you
      about where you shop for food?
           »    Fresh produce: 59%                       »   Gourmet/artisanal options: 6%
           »    Low prices: 55%                          »   Connection to your community: 5%
           »    Better meat, poultry or fish: 38%        »   Ethically produced foods: 4%
           »    Near my house/work: 33%                  »   Attention to presentation: 3%
           »    Locally grown/produced food: 26%         »   Staff expertise: 3%
           »    Health/diet concerns: 16%                »   Offers information/education: 2%
           »    Organic foods: 15%                       »   Delivery to home: 1%
           »    International foods: 7%                  »   Religious/spiritual options: 1%
           »    Availability of ready-to-eat foods: 6%




Sunday, June 3, 2012
FACTORS

      Generally speaking, what are the most important factors to you in
      selecting food products?
      »    Freshness: 63%                             »   Eco-friendly packaging: 5%
                                      Fresh + Taste
      »    Taste and flavor: 59%                      »   Manufacturer grows its own
      »    Price: 47%                                     ingredients: 4%
      »    All-natural: 23%                           »   I buy what I always buy: 4%
      »    On sale: 19%                               »   Fair trade certified: 3%
      »    Local (grown within approximately 100      »   Sourced direct from producer: 3%
           miles/160 km): 17%                         »   I like the name: 2%
      »    Certified organic: 13%                     »   I like the packaging: 2%
      »    Availability of product: 11%               »   I buy what my friends & family buy: 1%
      »    Environmental practices of                 »   Biodynamic: 1%
           manufacturer: 8%                           »   Other: 1%
      »    Good manufacturing practices: 8%



Sunday, June 3, 2012
SHOP

      Where do you do MOST of your food shopping?
                                         Omnibus US   Omnibus CAN
           »    Supermarket chain:          69%          87%
           »    Mass Merchandiser:          45%          14%
           »    Club Store:                 22%          18%
           »    Farmer’s market:            10%          17%
           »    Other:                       8%           7%
           »    Trader Joe’s:                7%           1%
           »    Small/ natural foods store:  5%           5%
           »    Whole Foods:                 4%           2%
           »    CSA:                         1%           1%
           »    Gourmet store:               1%           3%
           »    I don’t shop for food:       1%           1%
           »    Not sure:                    1%          <1%



Sunday, June 3, 2012
CHANNEL

      Where would you go to purchase food if each of the following
      reasons were your MAIN concern?




Sunday, June 3, 2012
CHANNEL

      Where would you go to purchase food if each of the following
      reasons were your MAIN concern?




Sunday, June 3, 2012
FARMER’S MARKETS

            •          NUTRITION           17/18
            •          FLAVOR/TASTE        15/26
            •          ORGANIC             24/25
            •          ECO-FRIENDLY        14/33
            •          SHOPPING EXP.       17/18
            •          LOCAL FOODS/FARMERS 14/59




Sunday, June 3, 2012
FARMER’S MARKETS

            •          NUTRITION          17/18
            •          FLAVOR/TASTE       15/26 173%
            •          ORGANIC             24/25
            •          ECO-FRIENDLY       14/33    235%
            •          SHOPPING EXP.       17/18
            •          LOCAL FOODS/FARMERS 14/59 421%




Sunday, June 3, 2012
LOCAL / FOODIE / ETHICS

      Which of the following 3 scenarios would be most appealing to you
      when shopping for food?
           »    Scenario A connects you to your local community, enables your local food
                system, and supports a network of farmers in your community by offering them
                programs, financing and operational support: EMI: 50% LH: 58%

           »    Scenario B celebrates exquisite, high-quality and flavorful foods from around
                the world by sharing knowledge, insights and traditions amongst its global
                network of hand-selected, artisanal farms

           »    Scenario C promotes ethics and sustainability by ensuring humane treatment
                of animals, preservation of food diversity and organic agricultural practices
                throughout its network of tightly-monitored farms




Sunday, June 3, 2012
LOCAL / FOODIE / ETHICS

      Which of the following 3 scenarios would be most appealing to
      you when shopping for food?




                         ETHICS


                                                  LOCAL    !"#$%&

                                                           '"()*+,&

                                                           -#./01,&
                       GOURMET




Sunday, June 3, 2012
COMMUNITY SUPPORT

      I would be more likely to purchase from a food retailer, brand or
      producer that actively supports the farmers and growers in my local
      community, versus one that does not.
                                        EMI     SB    LH
           »    Much more likely:       42%   51%    73%   Community: 79%
           »    More likely:            37%   31%    22%
           »    Somewhat more likely:   17%    15%    4%
           »    No different:            4%     3%    1%
           »    Somewhat less likely    <1%     0%   <1%
           »    Less likely             <1%     0%   <1%




Sunday, June 3, 2012
COMMUNITY SUPPORT

          Community involvement, whether for me or for others, is
          extremely important to me

                        (!"

                        '!"

                        &!"
                                                                                      :,;1/"
                        %!"
                                                                                      <,=+>2*"
                        $!"                                                           3;?@58*"

                        #!"

                         !"
                              )*+,-./0"   3.+22"   425*62+"   7581.+22"   )*+,-./0"
                               1.+22"                                     9581.+22"




Sunday, June 3, 2012
COMMUNITY SUPPORT

          How involved are you in your community



                        '!"

                        &#"

                        &!"

                        %#"
                                                                              8-<16"
                        %!"
                                                                              =->*.)2"
                        $#"                                                   ?<@59A2"
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                         #"

                         !"
                              ()*+"   ,-.)/012"   345-65)7"   89:6)"   ;-2"




Sunday, June 3, 2012
CONCERNS




Sunday, June 3, 2012
FOOD SYSTEM

      "The prevailing food system in America is perfect
      just the way it is..."
                                     EMI    SB     LH
           »    Strongly agree:       6%   <1%    <1%
           »    Agree:               15%     4%     1%
           »    Somewhat agree:      32%   22%      8%
           »    Disagree:            31%    43%    27%
           »    Strongly disagree:   15%   30%     63%   Recognize need
                                                         for change




Sunday, June 3, 2012
BELIEF

                       '#"
                       '!"
                       &#"
                       &!"
                       %#"                                                          :+;3."
                       %!"                                                          <+=*64)"
                       $#"                                                          9;>?12)"
                       $!"
                        #"
                        !"
                             ()*+,-./"   5123-*44" (+64783)"   9-*44"   ()*+,-./"
                             0123-*44"               9-*44"              3-*44"




Sunday, June 3, 2012
CONCERNS

      What areas of the prevailing North American food system currently
      make you the most concerned?
       »    Use of chemicals/pesticides: 41%    »   GMOs: 9%
       »    Use of antibiotics/hormones: 34%    »   Government food policies: 9%
       »    High cost of food: 33%              »   Labor practices: 7%
       »    North American’s diet: 21%          »   Availability of good farmland: 7%
       »    Food handling: 18%                  »   Distribution of food: 6%
       »    Lack of inspection/oversight: 17%   »   Labeling: 6%
       »    Availability of healthy food: 16%   »   Food scarcity: 4%
       »    Corporate control of food: 13%      »   Lack of local infrastructure: 4%
       »    Industrial farming: 12%             »   Nothing, no major concerns: 4%
       »    Increase in food imports: 10%




Sunday, June 3, 2012
TRUST OF LOCAL




Sunday, June 3, 2012
TRUST

      In terms of integrity, honesty and trustworthiness, what kinds of
      foods do you trust most?
                                                    EMI     SB    LH
           »    Locally grown:                      58%    61%   68%   Local + Direct
           »    Direct from the farmer:             39%    42%   68%
           »    Nationally recognized natural foods
                (Kashi, Amy’s, Silk, Organic Valley,
                Cascadian Farm, Newman’s Own, etc.): 31%   36%   34%
           »    Nationally recognized foods
                (Kraft, General Mills, Nabisco,
                Stouffers, Green Giant etc.):        31%   25%   5%
           »    Specialty foods from your region:    16%   13%   8%
           »    International gourmet:                7%    3%   1%
           »    Kosher:                               7%    6%   5%



Sunday, June 3, 2012
ORGANIC & LOCAL

     Although organic has a very high familiarity, local
     food is much more preferred by 75% of the market.


                       *!"
                       )!"
                       (!"
                       '!"
                       &!"                                  ;2<.=9-"

                       %!"                                  +,-./">"?;"
                       $!"
                       #!"
                        !"
                             +,-./"   0,12345"   6-789:3"




Sunday, June 3, 2012
TASTE

         Taste verse Organic                                Taste verse Local

            '!!"                                             '!!"
              &!"                                             &!"
              %!"                                             %!"
                                                 8+721"                                        8+721"
              $!"                                             $!"
                                                 9/:+;6*"                                      ()*+,"
              #!"                                             #!"
                !"                                             !"
                       ()*+," -)./012"3*45670"                      ()*+," -)./012" 3*45670"




Sunday, June 3, 2012
PRICE

         Price verse Organic                                Price verse Local

           &!"                                               &!"

           %!"                                               %!"

           $!"                                   7.5)0"      $!"                                7.5)0"

                                                 8.9*:5)"                                       '()*+"
           #!"                                               #!"

             !"                                               !"
                       '()*+" ,(-./01"2)3456/"                     '()*+"   ,(-./01" 2)3456/"




Sunday, June 3, 2012
UNCERTIFIED

          Is your farm organically certified?
              » Yes: 14%
              » No: 86%
              » Not sure: <1%




Sunday, June 3, 2012
UNCERTIFIED

      What main methods of agriculture do you use on your farm?
           »    Organic: 58%
           »    Transitional (from conventional to organic): 18%             88% state
           »    Permaculture: 15%
                                                                             some form
           »    Conventional (synthetic fertilizers, pesticides etc.): 14%
           »    Bio-dynamic: 12%                                             of Organic
           »    Sustainable: 2%
           »    Certified naturally grown: 1%
           »    Natural: 1%
           »    Hydroponic: 1%




Sunday, June 3, 2012
ORGANIC IS IDEAL

      In a perfect world, which of these methods of agriculture would you
      most like to use on your land?
           »    Organic: 75%
           »    Permaculture: 31%
           »    Biodynamic: 29%
           »    Conventional: 8%
           »    Sustainable: 1%




Sunday, June 3, 2012
TRUST

      What reasons do you have for not being certified?
           »    Don’t need certification. My customers know and trust that I grow organic: 52%
           »    Too expensive. I would be certified except it is not worth the cost: 50%
           »    Other: 31%
           »    I am transitioning parts of my farm to organic: 5%
           »    Not sure that my organic farm would be certified: 5%




Sunday, June 3, 2012
PSYCHOGRAPHICS




Sunday, June 3, 2012
SELF IDENTIFY

      Which of the following word or phrases would you most associate
      with yourself?
      » Family-focused: 39%   Affiliation   » Patriotic: 9%
       »    Open to new ideas: 32%         »   Athletic: 8%
       »    Loyal: 29%                     »   Extroverted: 8%
       »    Creative: 28%                  »   Trendy: 7%
       »    Intellectual: 20%              »   Involved in community: 7%
       »    Adventurous: 15%               »   Politically moderate: 6%
       »    Neighborly: 15%                »   Politically conservative: 5%
       »    Spiritual/religious: 13%       »   Alternative mindset: 5%
       »    Artistic: 10%                  »   Business-focused: 4%
       »    Politically liberal: 10%       »   Activist: 3%
       »    Introverted: 9%                »   Anti-establishment: 2%




Sunday, June 3, 2012
COMMUNITY INVOLVEMENT

      “Community involvement, whether from me or others, is extremely
      important to me.”
                                    EMI    SB    LH
           »    Strongly agree:     24%   23%   32%
           »    Agree:              49%   51%   49%
           »    Neither agree
                nor disagree:       22%   23%   17%
           »    Disagree:            4%    2%    2%
           »    Strongly disagree    0%    1%   <1%
           »    Other:               1%    0%    0%




Sunday, June 3, 2012
COMMUNITY INVOLVEMENT

      How involved are you in your community?
                                     EMI    SB    LH
           »    Very involved:       13%    7%   12%
           »    Involved:            30%   27%   32%
           »    Somewhat involved:   32%   35%   35%
           »    A little involved:   14%   19%   14%
           »    Not involved:        10%   13%    7%




Sunday, June 3, 2012
COMMUNITY

      Using the scale below, indicate how much your community is a
      reflection of who you are.
           »    My community reflects me very well: 19%
           »    My community somewhat reflects me: 50%
           »    My community does not really reflect me: 9%
           »    My community does not reflect me at all: 2%
           »    I don’t know how my community reflects me: 19%




Sunday, June 3, 2012
MEAL

      How often do you eat with your family/household?
           »    Daily: 73%
           »    A couple times a week: 18%
           »    Only on weekends: 2%
           »    Once a week: 1%
           »    A few times a month: 2%
           »    Special occasions only: 3%
           »    I am the only member of my household: <1%
           »    Never: <1%




Sunday, June 3, 2012
WHY LOCAL




Sunday, June 3, 2012
WHY LOCAL?
    FRESH
    TASTE
    TRUST
    AFFILIATION




Sunday, June 3, 2012
WHY LOCAL?
    FRESH
    TASTE - Faith
    TRUST - Relationship
    AFFILIATION - Connection with community




Sunday, June 3, 2012
WHY LOCAL?
    Opportunity to experience food in a new “Old” way!




Sunday, June 3, 2012
WHY LOCAL?
    Opportunity to experience food in a new “Old” way!

    To PARTICIPATE in community

    To define who we are in the process




Sunday, June 3, 2012
THANK YOU



Sunday, June 3, 2012
RESEARCH ROUNDTABLE: 	

LATEST CONSUMER INSIGHTS FROM SLM’S TOP RESEARCH PICKS	

	

	

	

	

Henk Campher, Edelman
GOODPURPOSE




Edelman goodpurpose® 2012
GLOBAL CONSUMER SURVEY
Purpose, now serving 7 Billion.




                                  3
An Evolving “Consumer”




 hungry   concerned   vocal   empowered


                                      4
Punishment Goes Public




                         5
Fifth Global Consumer Study 2012
What consumers have to say…
       CANADA                                                              INDIA
           500                                                             500

        BRAZIL                                                             CHINA
           500                                                             500

            US                                                             JAPAN
           500                                                             500

           UK                                                              UAE
           500                                                             500

       FRANCE                                                              GERMANY
           500                                                             500

  NETHERLANDS                                                              ITALY
           500                                                             500

      BELGIUM                                                              INDONESIA
           500                                                             500

    SINGAPORE                                                              MALAYSIA
           500                                                             500

      StrategyOne surveyed 8,000 consumers across 16 countries, aged 18+
Consistent Commitment; Diverse Opportunity
                 Improving the quality of healthcare                  89%
                         Protecting the environment                   89%
             Ensuring access to safe drinking water                  86%
                     Equal opportunity to education                  86%
           Stopping relationship violence and abuse              84%
                                  Reducing poverty               84%
                             Aiding in disaster relief           83%
               Alleviating hunger and homelessness               83%
                   Supporting human and civil rights             83%
  Encouraging tolerance for people who are different             82%
Fighting the spread of global disease and pandemics            80%
               Helping to raise people's self-esteem           78%
                           Supporting animal rights        74%
                        Supporting the creative arts     67%




                                                                            7
But, Differences Exist in Local Markets (US)
               Alleviating hunger and homelessness                91%
                 Improving the quality of healthcare              91%
                   Supporting human and civil rights              90%
           Stopping relationship violence and abuse               89%
                                  Reducing poverty                89%
             Ensuring access to safe drinking water               89%
                     Equal opportunity to education              88%
                         Protecting the environment             87%
Fighting the spread of global disease and pandemics            86%
                             Aiding in disaster relief         86%
  Encouraging tolerance for people who are different          85%
                           Supporting animal rights        78%
               Helping to raise people's self-esteem      77%
                        Supporting the creative arts     76%
The License to                 The Reengineering
Lead                           of Brand Marketing


                  5 Years of
                 goodpurpose

The New
Purpose Bull Markets       The Me in We

                                               9
5 Years of Purpose
The Reengineering of Brand Marketing
The Power of
Purpose
From product innovation and R&D, to
supply chain optimization and 360
marketing, our study reveals it is the
power of Purpose that is helping to
drive consumer preference in a
world where trust in corporations is
low and differentiation between brands
is negligible
Profit + Purpose: The New Normal
It is OK for brands to support good causes and make money at the same
time
   90%	
  
                                     +33%
   80%	
                                               76%	
  
                                            70%	
  
   70%	
                   68%	
  

   60%	
     57%	
  

   50%	
  

   40%	
  

   30%	
  

   20%	
  
             2008	
       2009	
            2010	
     2012	
  




                                                                   12
Social Purpose as Purchase Trigger
When quality and price are the same, Social Purpose most important factor

     60%	
  

                                    + 26%              53%	
  

     50%	
  

               42%	
      43%	
  
                                            41%	
  
                                                                  Growth from 2010
     40%	
  
                                                                  •    Japan (100%)
                                                                  •    China (79%)
                                                                  •    Netherlands (43%)
     30%	
  
                                                                  •    Germany (36%)
                                                                  •    India (43%)
     20%	
  
               2008	
     2009	
            2010	
     2012	
  



                                                                                           13
Purchase
Frequency
‘At Least Monthly’ purchases of
cause-supporting brands increased by
47% from 2010 - 2012
        2010            2012

         34%             19%
       EVERY 6 TO 12   EVERY 6 TO 12
         MONTHS          MONTHS




        32%               47%
       AT LEAST          AT LEAST
       MONTHLY           MONTHLY




                                       14
License to Lead
Building Future Performance on Societal Actions
The New
Imperative
Rather than merely exercising their
“license to operate,” leading brands
and corporations of the future must
move beyond operational
imperatives and social add-on’s to
establish their “license to lead.”
Business is Struggling to Meet Expectations
Performance Gap in Addressing Societal Issues
 Business should place at least equal weight on society's interests and business' interests
 Business is performing well in addressing societal issues

                     94%
        90%                 89%                     91%                                         90%
87%           87%                   87%                     87%   86%                                   87%       85%
                                              84%                          84%   84%                                      83%
                                                                                          79%



                                                                                                                            58%
                                                                                                                    49%
                                                                                                      42%   42%

  28%                                                                               30%
                        25%                           26%                                     27%
                                  21%                         23%    23%     22%
                                        20%     18%
          13%    15%
Consumers will praise…and punish
          Company that does NOT
           actively support a good
                                      _ +             Company that
                                                      actively supports a
Increase from 2010           cause                    good cause                              Increase from 2010
    +7
                    44%                                                             76%	
           +9
              REFUSE TO BUY PRODUCTS/SERVICES BUY ITS PRODUCTS/SERVICES

    +7              44%                                                             76%	
           +9
                       CRITICIZE IT TO OTHERS   RECOMMEND ITS PRODUCTS/SERVICES

    +5              44%                                                            73%	
            +8
                  SHARE NEGATIVE OPINIONS       SHARE POSITIVE OPINIONS AND EXPERIENCES
                         AND EXPERIENCES
    + 11          48%                                                    57%	
                      +4
                  NOT WANT TO WORK FOR IT       WANT TO WORK FOR IT

    +7         53%                                             45%	
  
                            NOT INVEST IN IT    INVEST IN IT

                                                               44%	
  
                                                PAY A PREMIUM FOR ITS PRODUCTS/
                                                SERVICES



                                                                                                                   18
The More You Know
It is critical for companies to make consumers aware of their efforts

        92%   90%   88%   87%   87%   86%   84%   84%
  80%                                                   80%
                                                              76%
                                                                    73%   73%   73%   72%   70%   68%




                                                                                                        19
The New “Purpose Bull Markets”
Who are the Purpose Bull Markets?


        INDIA         BELGIU
   CHINA BRAZI        M ITAL FRANC
     MALAYSIA
           L               NETHERLAN
                              E
   INDONESI        VS    YJAPANGERMAN
                                   DS
      A       UA         U    Y
               E                  UK
                         S

                                        21
Empowered to Make a Difference
                      Purpose Bull Markets   Purpose Bear Markets

           COMPARED TO FIVE YEARS AGO,                                    63%
 ‘PEOPLE LIKE ME’ NOW HAVE MORE POWER
                                                      29%
    AND INFLUENCE TO MAKE A DIFFERENCE



                 THE RESPONSIBILITY OF                              56%
        ‘PEOPLE LIKE ME’ HAS INCREASED
                                                            37%




                                                                                22
Passion in Action
Bull Market consumers contrast those in Bear Markets
                            Purpose Bull Markets      Purpose Bear Markets

 I HAVE MORE TRUST IN A BRAND THAT IS ETHICALLY AND                                                83%
               SOCIALLY RESPONSIBLE                                                 66%

     I AM MORE LIKELY TO RECOMMEND A BRAND THAT                                                   82%
    SUPPORTS A GOOD CAUSE THAN ONE THAT DOESN'T                                    64%

       I WOULD HELP A BRAND PROMOTE ITS PRODUCT/                                                  81%
             SERVICES IF IT HAD A GOOD CAUSE                                       63%

       I WOULD SWITCH BRANDS IF A DIFFERENT BRAND                                                80%
                SUPPORTED A GOOD CAUSE                                               67%

 I WANT BRANDS TO MAKE IT EASIER FOR ME TO MAKE A                                                79%
             DIFFERENCE IN THE WORLD                                           62%

      BRANDS CAN SUPPORT GOOD CAUSES AND MAKE                                                   78%
               MONEY AT THE SAME TIME                                                     72%

  I WANT BRANDS TO DO MORE FOR ME THAN PROVIDE A                                           73%
                     PRODUCT                                                 57%




                                                                                                         23
Paying for Purpose
Bull Market consumers more willing to pay a premium for Purpose
           80%	
  
                     71%	
  

                               55%	
   55%	
   54%	
  
 43%	
                                                   44%	
   42%	
  
                                                                         39%	
   38%	
  
                                                                                         35%	
   34%	
  
                                                                                                           30%	
   30%	
   29%	
   29%	
   28%	
  




                                                                                                                                                     24
Discovering the “Me in We”




                             25
Defining the Me in We
 As the disparity between the
 haves and have not’s continues,
 more and more consumers are
 discovering the me (personal
 need) in the we (the common
 good)…Purpose Gets
 Personal.




                                   26
The Globalization of Need
      Because of the global recession, societal issues are hitting close to home
     Unable to                                         Unable to
    pay medical   Reduced     My salary               donate as
                  spending                Reduced
                              decreased              much money
    expenses or
       afford      on food                 leisure
                                          shopping    to societal   85%
     healthcare                                         issues      of those
                                                                    surveyed around
                                                                    the world say
.
                                                                    they have been
                                                                    affected by the
                                                                    economic
                                                                    downturn in
                                                                    some way.




                                                                                27
Me: Empowered
‘People like me’ now have more power and influence to make a
difference
        77%
              73%
                    66%
                          58% 57% 57%

  44%                                   47%
                                              41% 39%
                                                      37% 36%
                                                                29% 26%
                                                                          21% 20% 20%




                                                                                    28
Me: in Action

                    of global consumers take part in
    89%             activities to address societal issues.


     72% in US                               77% of Chinese
recycle regularly                            donated money

 63% of Brazilians
       voiced their                          75% of Germans
         concerns                            take actions to
                                             conserve energy
Turning Insights into Action
5 Years of Learning

   1   Purpose key driver in reengineering brand marketing

   2   Purpose definitive purchase trigger

   3   Largest growth markets bullish on Purpose

   4   Operational excellence + societal performance rewarded

   5   Corporations earn License to Lead via Purpose




                                                                31
Not IF, but HOW…
      LEAD      Powerful programs are leader led

    CONSTRUCT   Start with depth, not scale

    CUSTOMIZE   Customize for local execution
   COLLABORAT   Work with NGOs, colleagues, competitors
        E
     MEASURE    Build performance measures up front

     NARRATE    Story, story, story

     ENGAGE     Employees, partners, consumers

     EVOLVE     Evolve programs to stay relevant

                                                          32
What’s Your Purpose?




                       33
34
SB'12 - Karen Barnes - Shelton, Hernan Sanchaz - Havas Media Intelligence, Jonathan Yohannan, - Cone Communications, Kevin Williams - Pure Branding, Annie Longsworth - Saatchi & Saatchi S, Henk Campher - Edelman

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SB'12 - Karen Barnes - Shelton, Hernan Sanchaz - Havas Media Intelligence, Jonathan Yohannan, - Cone Communications, Kevin Williams - Pure Branding, Annie Longsworth - Saatchi & Saatchi S, Henk Campher - Edelman

  • 1. RESEARCH ROUNDTABLE: LATEST CONSUMER INSIGHTS FROM SLM’S TOP RESEARCH PICKS Karen Barnes, Shelton Group Hernan Sanchaz, Havas Media Intelligence Jonathan Yohannan, Cone Communications Kevin Williams, Pure Branding Annie Longsworth, Saatchi & Saatchi S Henk Campher, Edelman
  • 2. RESEARCH ROUNDTABLE: LATEST CONSUMER INSIGHTS FROM SLM’S TOP RESEARCH PICKS Karen Barnes, Shelton Group
  • 3. Finding the bright spots when the research isn’t very positive Sustainable Brands June 2012
  • 4. We help clients define and leverage their sustainability stories for market advantage.
  • 5.
  • 6.
  • 8. •  Purchases and behaviors are down, almost across the board
  • 9. •  Purchases and behaviors are down, almost across the board •  The average number of green activities isn’t increasing
  • 10. •  Purchases and behaviors are down, almost across the board •  The average number of green activities isn’t increasing •  Searching for greener products is down
  • 12. •  Eco-labels and certifications
  • 13. •  Eco-labels and certifications •  Price premiums
  • 14. •  Eco-labels and certifications •  Price premiums •  Global warming messages
  • 15. •  Eco-labels and certifications •  Price premiums •  Global warming messages •  Reliance on natural enthusiasm to create long-term market growth
  • 17. •  Appeals to personal health
  • 18. •  Appeals to personal health •  Corporate sustainability stories
  • 19. •  Appeals to personal health •  Corporate sustainability stories •  Social influence
  • 20.
  • 21.
  • 22. Americans say they are most strongly impacted by monetary influences, but rewards or penalties were essentially tied.
  • 23. Americans are more influenced by learning about the dangers and risks instead of possible benefits.
  • 24.
  • 25.
  • 26.
  • 27. HALF
  • 29. YES
  • 30.
  • 31. •  Shoplifting •  DUI •  Throwing trash out window •  Cheat on taxes •  Smoke cigarettes •  No seat belt •  Low mpg car •  Don’t recycle •  Use paper plates •  Keep thermostat at 73 •  Let water run while brushing
  • 32.
  • 33. So what does all this mean?
  • 34. Sustainability is in a slump. People need to see, experience and realize the benefits of being green. It’s time for an injection of motivation to keep from losing more momentum.
  • 35. It’s time to re-examine what’s working and what’s not, and make adjustments.
  • 36. Social influence is a powerful tool that’s producing results.
  • 37. Don’t give up. Keep pushing. Find the bright spots. Inspire others.
  • 38. Thanks! Karen Barnes Email: kbarnes@sheltongrp.com Twitter: @barneshead
  • 40.
  • 41. RESEARCH ROUNDTABLE: LATEST CONSUMER INSIGHTS FROM SLM’S TOP RESEARCH PICKS Hernan Sanchaz, Havas Media Intelligence
  • 43. Meaningful Brands: a new cartography 10 Global: •  More than 50.000 consumers •  14 countries •  More than 300 brands in 10 industries •  Explores new territories: Personal Well-being + Sustainability •  Launched: November’11 •  More than 30,000 consumers •  Explores the opinion of •  10 countries: Brazil, more than 20.000 China, France, Germany, consumers India, Mexico, Spain, •  10 countries Colombia, UK, and USA •  20 brands per market •  More than 150 brands 2007-08, “Consumer from 10 industries Perception on Climate •  BSF Branding & Change and its potential Communication Services impact on business” Meaningful Brands 2012 3
  • 44. Meaningful Brands main results Meaningful Brands 2012 4
  • 45. Brands need to redefine relationships with people Contribution to people’s quality of life % of brands improving notably people’s quality of life 20% 8% 5% 30% 70% Brands Attachment % of brands people would really care if they disappeared ... 29% 12% 18% 53% 53% Meaningful Brands 2012 5
  • 46. …to meet their new standards… Consumers  care  only   about  brands  that  bring   meaningful  value  to   social  cons6tuencies   (consumers  themselves,   communi6es,  socie6es):     Authen'c,  Shared,   Sustainable       Concrete,  personal   benefits  not  just   “stories”,  “myths”,   “iden66es”,  or  even   “DNA”     Meaningful Brands 2012 6
  • 47. Consumers are expecting more from Corporations %  Agree,  2011   %  Agree   Global   Europe USA Latam Asia 87 77 10% 80 4% 92 2% 20 -‐‑‒38% 12 -‐‑‒37% 12 -‐‑‒68% 20 -‐‑‒33% 22 27 -‐‑‒16% 32 -‐‑‒5% 54 10% 69 54 -‐‑‒12% 63 -‐‑‒10% 62 -‐‑‒6% 14 17 19 57 7 *Growth  2011  vs.  2010  
  • 48. Consumers have a deeper connection with those brands that improve their lives Source:  Havas  Media  Meaningful  Brands  2012   Meaningful Brands 2012 8
  • 49. Meaningful Brands create new experiences Meaningful Brands 2012 9
  • 50. And communicate differently I talk WE talk THEY talk Talk Think Trust What the consumer What the What others say experiences Brand says about the Brand (Interactions & conversations) Meaningful Brands 2012 10
  • 51. Meaningful Brands: a Cartography Brand Value Sales/Brand Equity Meaningful Brands Meaningful Communications OUTCOMES COMMUNICATIONS Output Personal Collective Talk Think Trust Meaningful Brands 2012 11
  • 52. Meaningful Brands create superior value by offering better experiences and interactions with people HM Intelligence BI 7/5/12 Meaningful Brands 2012 12
  • 53.
  • 54. RESEARCH ROUNDTABLE: LATEST CONSUMER INSIGHTS FROM SLM’S TOP RESEARCH PICKS Jonathan Yohannan, Cone Communications
  • 55. 2012 Cone Green Gap Trend Tracker
  • 56. Consumers Still Shop with Environment in Mind 69% of Americans consider the environment when making purchasing decisions
  • 58. Companies Should Help Educate 71%   wish companies would do a better job helping them understand the terms they use
  • 59. Messages Should Be Readily Available 73%   want companies to provide more environmental information on- pack
  • 61. What Do Consumers Really Expect of Companies?
  • 62. Honest Communication is Key 75% say it’s okay if a company is not environmentally perfect, as long as it’s honest about its efforts
  • 63. From Cradle to Grave, Consumers Expect it All Americans believe companies are responsible for addressing the environmental impact of:
  • 64. Disposal is Top-of-Mind Yet, their purchases are most influenced by environmental messages about responsible:
  • 65. Addressing Issues Along Supply Chain How a product How a product How a product is made is used is disposed of
  • 66. Motivations for Buying Environmental Products 90% believe it will save them time or money in the long run 88% believe it’s healthier for themselves, their families or their communities 27% want to preserve the environment for future generations
  • 67. Prepared to Punish 77% would stop buying if they discover an environmental claim is misleading
  • 68. Learning from Others. Getting it Right.
  • 71. The Opportunity for Companies Americans continue to be confused about environmental messages in the market Consumers want companies to help them understand environmental terms and messages Precise messages, such as certifications or specific data, are most influential Consumers seek relevant claims that demonstrate how environmental benefits can save them time and money Consumers will stop buying if they feel misled by environmental claims
  • 72. Jonathan Yohannan Executive Vice President Questions? JYohannan@coneinc.com 617-939-8350
  • 73. RESEARCH ROUNDTABLE: LATEST CONSUMER INSIGHTS FROM SLM’S TOP RESEARCH PICKS Kevin Williams, Pure Branding
  • 76. American farmers markets 1994—2011 4x Sunday, June 3, 2012
  • 78. American CSAs 1990—2010 400 » 12,500+ Sunday, June 3, 2012
  • 81. METHODOLOGY » We launched a survey with questions selected to understand participant behavior, preferences, and need as it relates to food. » 5,584 participants with an active interest in food were recruited from three consumer panels. These panels provided a range in their levels of engagement. » In depth Qualitative interviews with over 60 participants representing various segments Sunday, June 3, 2012
  • 82. METHODOLOGY » We launched an online survey with questions selected to understand producer needs, attitudes and understandings of their customers. » Over 1,100 farmers and ranchers who are engaged in the sustainable and local food economy. » In depth Qualitative interviews with over 30 producers representing various segments Sunday, June 3, 2012
  • 83. METHODOLOGY » Interviewed Industry Experts • Local Harvest • Gastronomica Magazine • Slow Food US • Farm Folk City Folk - • Slow Food Canada • PVGrows • Farm Aid • USDA • Regional Food Hubs • Agriculture and Agri-Food Canada • National Association • Bon Appétit Food Management of Produce Market Managers Company Sunday, June 3, 2012
  • 84. OMNIBUS Two Omnibus studies, consisting of 2000 North American general populace participants balanced demographically All participants were asked three questions: passion for food, importance of community, and where they shop Sunday, June 3, 2012
  • 85. PASSION “I am the kind of person who is passionate about food (whether eating it, understanding where it comes from and/or preparing it for myself and others?)” » Strongly agree: 69% Passionate » Agree: 31% » Neither agree nor disagree: 0% screened » Disagree: 0% screened » Strongly disagree: 0% screened Sunday, June 3, 2012
  • 86. PRIORITY Based on your first impression, what is most important to you about where you shop for food? » Fresh produce: 59% » Gourmet/artisanal options: 6% » Low prices: 55% » Connection to your community: 5% » Better meat, poultry or fish: 38% » Ethically produced foods: 4% » Near my house/work: 33% » Attention to presentation: 3% » Locally grown/produced food: 26% » Staff expertise: 3% » Health/diet concerns: 16% » Offers information/education: 2% » Organic foods: 15% » Delivery to home: 1% » International foods: 7% » Religious/spiritual options: 1% » Availability of ready-to-eat foods: 6% Sunday, June 3, 2012
  • 87. FACTORS Generally speaking, what are the most important factors to you in selecting food products? » Freshness: 63% » Eco-friendly packaging: 5% Fresh + Taste » Taste and flavor: 59% » Manufacturer grows its own » Price: 47% ingredients: 4% » All-natural: 23% » I buy what I always buy: 4% » On sale: 19% » Fair trade certified: 3% » Local (grown within approximately 100 » Sourced direct from producer: 3% miles/160 km): 17% » I like the name: 2% » Certified organic: 13% » I like the packaging: 2% » Availability of product: 11% » I buy what my friends & family buy: 1% » Environmental practices of » Biodynamic: 1% manufacturer: 8% » Other: 1% » Good manufacturing practices: 8% Sunday, June 3, 2012
  • 88. SHOP Where do you do MOST of your food shopping? Omnibus US Omnibus CAN » Supermarket chain: 69% 87% » Mass Merchandiser: 45% 14% » Club Store: 22% 18% » Farmer’s market: 10% 17% » Other: 8% 7% » Trader Joe’s: 7% 1% » Small/ natural foods store: 5% 5% » Whole Foods: 4% 2% » CSA: 1% 1% » Gourmet store: 1% 3% » I don’t shop for food: 1% 1% » Not sure: 1% <1% Sunday, June 3, 2012
  • 89. CHANNEL Where would you go to purchase food if each of the following reasons were your MAIN concern? Sunday, June 3, 2012
  • 90. CHANNEL Where would you go to purchase food if each of the following reasons were your MAIN concern? Sunday, June 3, 2012
  • 91. FARMER’S MARKETS • NUTRITION 17/18 • FLAVOR/TASTE 15/26 • ORGANIC 24/25 • ECO-FRIENDLY 14/33 • SHOPPING EXP. 17/18 • LOCAL FOODS/FARMERS 14/59 Sunday, June 3, 2012
  • 92. FARMER’S MARKETS • NUTRITION 17/18 • FLAVOR/TASTE 15/26 173% • ORGANIC 24/25 • ECO-FRIENDLY 14/33 235% • SHOPPING EXP. 17/18 • LOCAL FOODS/FARMERS 14/59 421% Sunday, June 3, 2012
  • 93. LOCAL / FOODIE / ETHICS Which of the following 3 scenarios would be most appealing to you when shopping for food? » Scenario A connects you to your local community, enables your local food system, and supports a network of farmers in your community by offering them programs, financing and operational support: EMI: 50% LH: 58% » Scenario B celebrates exquisite, high-quality and flavorful foods from around the world by sharing knowledge, insights and traditions amongst its global network of hand-selected, artisanal farms » Scenario C promotes ethics and sustainability by ensuring humane treatment of animals, preservation of food diversity and organic agricultural practices throughout its network of tightly-monitored farms Sunday, June 3, 2012
  • 94. LOCAL / FOODIE / ETHICS Which of the following 3 scenarios would be most appealing to you when shopping for food? ETHICS LOCAL !"#$%& '"()*+,& -#./01,& GOURMET Sunday, June 3, 2012
  • 95. COMMUNITY SUPPORT I would be more likely to purchase from a food retailer, brand or producer that actively supports the farmers and growers in my local community, versus one that does not. EMI SB LH » Much more likely: 42% 51% 73% Community: 79% » More likely: 37% 31% 22% » Somewhat more likely: 17% 15% 4% » No different: 4% 3% 1% » Somewhat less likely <1% 0% <1% » Less likely <1% 0% <1% Sunday, June 3, 2012
  • 96. COMMUNITY SUPPORT Community involvement, whether for me or for others, is extremely important to me (!" '!" &!" :,;1/" %!" <,=+>2*" $!" 3;?@58*" #!" !" )*+,-./0" 3.+22" 425*62+" 7581.+22" )*+,-./0" 1.+22" 9581.+22" Sunday, June 3, 2012
  • 97. COMMUNITY SUPPORT How involved are you in your community '!" &#" &!" %#" 8-<16" %!" =->*.)2" $#" ?<@59A2" $!" #" !" ()*+" ,-.)/012" 345-65)7" 89:6)" ;-2" Sunday, June 3, 2012
  • 99. FOOD SYSTEM "The prevailing food system in America is perfect just the way it is..." EMI SB LH » Strongly agree: 6% <1% <1% » Agree: 15% 4% 1% » Somewhat agree: 32% 22% 8% » Disagree: 31% 43% 27% » Strongly disagree: 15% 30% 63% Recognize need for change Sunday, June 3, 2012
  • 100. BELIEF '#" '!" &#" &!" %#" :+;3." %!" <+=*64)" $#" 9;>?12)" $!" #" !" ()*+,-./" 5123-*44" (+64783)" 9-*44" ()*+,-./" 0123-*44" 9-*44" 3-*44" Sunday, June 3, 2012
  • 101. CONCERNS What areas of the prevailing North American food system currently make you the most concerned? » Use of chemicals/pesticides: 41% » GMOs: 9% » Use of antibiotics/hormones: 34% » Government food policies: 9% » High cost of food: 33% » Labor practices: 7% » North American’s diet: 21% » Availability of good farmland: 7% » Food handling: 18% » Distribution of food: 6% » Lack of inspection/oversight: 17% » Labeling: 6% » Availability of healthy food: 16% » Food scarcity: 4% » Corporate control of food: 13% » Lack of local infrastructure: 4% » Industrial farming: 12% » Nothing, no major concerns: 4% » Increase in food imports: 10% Sunday, June 3, 2012
  • 102. TRUST OF LOCAL Sunday, June 3, 2012
  • 103. TRUST In terms of integrity, honesty and trustworthiness, what kinds of foods do you trust most? EMI SB LH » Locally grown: 58% 61% 68% Local + Direct » Direct from the farmer: 39% 42% 68% » Nationally recognized natural foods (Kashi, Amy’s, Silk, Organic Valley, Cascadian Farm, Newman’s Own, etc.): 31% 36% 34% » Nationally recognized foods (Kraft, General Mills, Nabisco, Stouffers, Green Giant etc.): 31% 25% 5% » Specialty foods from your region: 16% 13% 8% » International gourmet: 7% 3% 1% » Kosher: 7% 6% 5% Sunday, June 3, 2012
  • 104. ORGANIC & LOCAL Although organic has a very high familiarity, local food is much more preferred by 75% of the market. *!" )!" (!" '!" &!" ;2<.=9-" %!" +,-./">"?;" $!" #!" !" +,-./" 0,12345" 6-789:3" Sunday, June 3, 2012
  • 105. TASTE Taste verse Organic Taste verse Local '!!" '!!" &!" &!" %!" %!" 8+721" 8+721" $!" $!" 9/:+;6*" ()*+," #!" #!" !" !" ()*+," -)./012"3*45670" ()*+," -)./012" 3*45670" Sunday, June 3, 2012
  • 106. PRICE Price verse Organic Price verse Local &!" &!" %!" %!" $!" 7.5)0" $!" 7.5)0" 8.9*:5)" '()*+" #!" #!" !" !" '()*+" ,(-./01"2)3456/" '()*+" ,(-./01" 2)3456/" Sunday, June 3, 2012
  • 107. UNCERTIFIED Is your farm organically certified? » Yes: 14% » No: 86% » Not sure: <1% Sunday, June 3, 2012
  • 108. UNCERTIFIED What main methods of agriculture do you use on your farm? » Organic: 58% » Transitional (from conventional to organic): 18% 88% state » Permaculture: 15% some form » Conventional (synthetic fertilizers, pesticides etc.): 14% » Bio-dynamic: 12% of Organic » Sustainable: 2% » Certified naturally grown: 1% » Natural: 1% » Hydroponic: 1% Sunday, June 3, 2012
  • 109. ORGANIC IS IDEAL In a perfect world, which of these methods of agriculture would you most like to use on your land? » Organic: 75% » Permaculture: 31% » Biodynamic: 29% » Conventional: 8% » Sustainable: 1% Sunday, June 3, 2012
  • 110. TRUST What reasons do you have for not being certified? » Don’t need certification. My customers know and trust that I grow organic: 52% » Too expensive. I would be certified except it is not worth the cost: 50% » Other: 31% » I am transitioning parts of my farm to organic: 5% » Not sure that my organic farm would be certified: 5% Sunday, June 3, 2012
  • 112. SELF IDENTIFY Which of the following word or phrases would you most associate with yourself? » Family-focused: 39% Affiliation » Patriotic: 9% » Open to new ideas: 32% » Athletic: 8% » Loyal: 29% » Extroverted: 8% » Creative: 28% » Trendy: 7% » Intellectual: 20% » Involved in community: 7% » Adventurous: 15% » Politically moderate: 6% » Neighborly: 15% » Politically conservative: 5% » Spiritual/religious: 13% » Alternative mindset: 5% » Artistic: 10% » Business-focused: 4% » Politically liberal: 10% » Activist: 3% » Introverted: 9% » Anti-establishment: 2% Sunday, June 3, 2012
  • 113. COMMUNITY INVOLVEMENT “Community involvement, whether from me or others, is extremely important to me.” EMI SB LH » Strongly agree: 24% 23% 32% » Agree: 49% 51% 49% » Neither agree nor disagree: 22% 23% 17% » Disagree: 4% 2% 2% » Strongly disagree 0% 1% <1% » Other: 1% 0% 0% Sunday, June 3, 2012
  • 114. COMMUNITY INVOLVEMENT How involved are you in your community? EMI SB LH » Very involved: 13% 7% 12% » Involved: 30% 27% 32% » Somewhat involved: 32% 35% 35% » A little involved: 14% 19% 14% » Not involved: 10% 13% 7% Sunday, June 3, 2012
  • 115. COMMUNITY Using the scale below, indicate how much your community is a reflection of who you are. » My community reflects me very well: 19% » My community somewhat reflects me: 50% » My community does not really reflect me: 9% » My community does not reflect me at all: 2% » I don’t know how my community reflects me: 19% Sunday, June 3, 2012
  • 116. MEAL How often do you eat with your family/household? » Daily: 73% » A couple times a week: 18% » Only on weekends: 2% » Once a week: 1% » A few times a month: 2% » Special occasions only: 3% » I am the only member of my household: <1% » Never: <1% Sunday, June 3, 2012
  • 118. WHY LOCAL? FRESH TASTE TRUST AFFILIATION Sunday, June 3, 2012
  • 119. WHY LOCAL? FRESH TASTE - Faith TRUST - Relationship AFFILIATION - Connection with community Sunday, June 3, 2012
  • 120. WHY LOCAL? Opportunity to experience food in a new “Old” way! Sunday, June 3, 2012
  • 121. WHY LOCAL? Opportunity to experience food in a new “Old” way! To PARTICIPATE in community To define who we are in the process Sunday, June 3, 2012
  • 123. RESEARCH ROUNDTABLE: LATEST CONSUMER INSIGHTS FROM SLM’S TOP RESEARCH PICKS Henk Campher, Edelman
  • 125. Purpose, now serving 7 Billion. 3
  • 126. An Evolving “Consumer” hungry concerned vocal empowered 4
  • 128. Fifth Global Consumer Study 2012 What consumers have to say… CANADA INDIA 500 500 BRAZIL CHINA 500 500 US JAPAN 500 500 UK UAE 500 500 FRANCE GERMANY 500 500 NETHERLANDS ITALY 500 500 BELGIUM INDONESIA 500 500 SINGAPORE MALAYSIA 500 500 StrategyOne surveyed 8,000 consumers across 16 countries, aged 18+
  • 129. Consistent Commitment; Diverse Opportunity Improving the quality of healthcare 89% Protecting the environment 89% Ensuring access to safe drinking water 86% Equal opportunity to education 86% Stopping relationship violence and abuse 84% Reducing poverty 84% Aiding in disaster relief 83% Alleviating hunger and homelessness 83% Supporting human and civil rights 83% Encouraging tolerance for people who are different 82% Fighting the spread of global disease and pandemics 80% Helping to raise people's self-esteem 78% Supporting animal rights 74% Supporting the creative arts 67% 7
  • 130. But, Differences Exist in Local Markets (US) Alleviating hunger and homelessness 91% Improving the quality of healthcare 91% Supporting human and civil rights 90% Stopping relationship violence and abuse 89% Reducing poverty 89% Ensuring access to safe drinking water 89% Equal opportunity to education 88% Protecting the environment 87% Fighting the spread of global disease and pandemics 86% Aiding in disaster relief 86% Encouraging tolerance for people who are different 85% Supporting animal rights 78% Helping to raise people's self-esteem 77% Supporting the creative arts 76%
  • 131. The License to The Reengineering Lead of Brand Marketing 5 Years of goodpurpose The New Purpose Bull Markets The Me in We 9
  • 132. 5 Years of Purpose The Reengineering of Brand Marketing
  • 133. The Power of Purpose From product innovation and R&D, to supply chain optimization and 360 marketing, our study reveals it is the power of Purpose that is helping to drive consumer preference in a world where trust in corporations is low and differentiation between brands is negligible
  • 134. Profit + Purpose: The New Normal It is OK for brands to support good causes and make money at the same time 90%   +33% 80%   76%   70%   70%   68%   60%   57%   50%   40%   30%   20%   2008   2009   2010   2012   12
  • 135. Social Purpose as Purchase Trigger When quality and price are the same, Social Purpose most important factor 60%   + 26% 53%   50%   42%   43%   41%   Growth from 2010 40%   •  Japan (100%) •  China (79%) •  Netherlands (43%) 30%   •  Germany (36%) •  India (43%) 20%   2008   2009   2010   2012   13
  • 136. Purchase Frequency ‘At Least Monthly’ purchases of cause-supporting brands increased by 47% from 2010 - 2012 2010 2012 34% 19% EVERY 6 TO 12 EVERY 6 TO 12 MONTHS MONTHS 32% 47% AT LEAST AT LEAST MONTHLY MONTHLY 14
  • 137. License to Lead Building Future Performance on Societal Actions
  • 138. The New Imperative Rather than merely exercising their “license to operate,” leading brands and corporations of the future must move beyond operational imperatives and social add-on’s to establish their “license to lead.”
  • 139. Business is Struggling to Meet Expectations Performance Gap in Addressing Societal Issues Business should place at least equal weight on society's interests and business' interests Business is performing well in addressing societal issues 94% 90% 89% 91% 90% 87% 87% 87% 87% 86% 87% 85% 84% 84% 84% 83% 79% 58% 49% 42% 42% 28% 30% 25% 26% 27% 21% 23% 23% 22% 20% 18% 13% 15%
  • 140. Consumers will praise…and punish Company that does NOT actively support a good _ + Company that actively supports a Increase from 2010 cause good cause Increase from 2010 +7 44% 76%   +9 REFUSE TO BUY PRODUCTS/SERVICES BUY ITS PRODUCTS/SERVICES +7 44% 76%   +9 CRITICIZE IT TO OTHERS RECOMMEND ITS PRODUCTS/SERVICES +5 44% 73%   +8 SHARE NEGATIVE OPINIONS SHARE POSITIVE OPINIONS AND EXPERIENCES AND EXPERIENCES + 11 48% 57%   +4 NOT WANT TO WORK FOR IT WANT TO WORK FOR IT +7 53% 45%   NOT INVEST IN IT INVEST IN IT 44%   PAY A PREMIUM FOR ITS PRODUCTS/ SERVICES 18
  • 141. The More You Know It is critical for companies to make consumers aware of their efforts 92% 90% 88% 87% 87% 86% 84% 84% 80% 80% 76% 73% 73% 73% 72% 70% 68% 19
  • 142. The New “Purpose Bull Markets”
  • 143. Who are the Purpose Bull Markets? INDIA BELGIU CHINA BRAZI M ITAL FRANC MALAYSIA L NETHERLAN E INDONESI VS YJAPANGERMAN DS A UA U Y E UK S 21
  • 144. Empowered to Make a Difference Purpose Bull Markets Purpose Bear Markets COMPARED TO FIVE YEARS AGO, 63% ‘PEOPLE LIKE ME’ NOW HAVE MORE POWER 29% AND INFLUENCE TO MAKE A DIFFERENCE THE RESPONSIBILITY OF 56% ‘PEOPLE LIKE ME’ HAS INCREASED 37% 22
  • 145. Passion in Action Bull Market consumers contrast those in Bear Markets Purpose Bull Markets Purpose Bear Markets I HAVE MORE TRUST IN A BRAND THAT IS ETHICALLY AND 83% SOCIALLY RESPONSIBLE 66% I AM MORE LIKELY TO RECOMMEND A BRAND THAT 82% SUPPORTS A GOOD CAUSE THAN ONE THAT DOESN'T 64% I WOULD HELP A BRAND PROMOTE ITS PRODUCT/ 81% SERVICES IF IT HAD A GOOD CAUSE 63% I WOULD SWITCH BRANDS IF A DIFFERENT BRAND 80% SUPPORTED A GOOD CAUSE 67% I WANT BRANDS TO MAKE IT EASIER FOR ME TO MAKE A 79% DIFFERENCE IN THE WORLD 62% BRANDS CAN SUPPORT GOOD CAUSES AND MAKE 78% MONEY AT THE SAME TIME 72% I WANT BRANDS TO DO MORE FOR ME THAN PROVIDE A 73% PRODUCT 57% 23
  • 146. Paying for Purpose Bull Market consumers more willing to pay a premium for Purpose 80%   71%   55%   55%   54%   43%   44%   42%   39%   38%   35%   34%   30%   30%   29%   29%   28%   24
  • 147. Discovering the “Me in We” 25
  • 148. Defining the Me in We As the disparity between the haves and have not’s continues, more and more consumers are discovering the me (personal need) in the we (the common good)…Purpose Gets Personal. 26
  • 149. The Globalization of Need Because of the global recession, societal issues are hitting close to home Unable to Unable to pay medical Reduced My salary donate as spending Reduced decreased much money expenses or afford on food leisure shopping to societal 85% healthcare issues of those surveyed around the world say . they have been affected by the economic downturn in some way. 27
  • 150. Me: Empowered ‘People like me’ now have more power and influence to make a difference 77% 73% 66% 58% 57% 57% 44% 47% 41% 39% 37% 36% 29% 26% 21% 20% 20% 28
  • 151. Me: in Action of global consumers take part in 89% activities to address societal issues. 72% in US 77% of Chinese recycle regularly donated money 63% of Brazilians voiced their 75% of Germans concerns take actions to conserve energy
  • 153. 5 Years of Learning 1 Purpose key driver in reengineering brand marketing 2 Purpose definitive purchase trigger 3 Largest growth markets bullish on Purpose 4 Operational excellence + societal performance rewarded 5 Corporations earn License to Lead via Purpose 31
  • 154. Not IF, but HOW… LEAD Powerful programs are leader led CONSTRUCT Start with depth, not scale CUSTOMIZE Customize for local execution COLLABORAT Work with NGOs, colleagues, competitors E MEASURE Build performance measures up front NARRATE Story, story, story ENGAGE Employees, partners, consumers EVOLVE Evolve programs to stay relevant 32
  • 156. 34