Earthsense LOHAS June 2010

30
(Bringing sustainability to the masses by thinking like a consumer!) How Hedonics & Economics are the natural complement to LOHAS

description

LOHAS and LOHOE; How Health & Sustainability is Complemented by Hedonics or EconomicsWhen 93% of the population is not included in a definition – you’ve essentially said “no” to the adoption of your product to the mass market. Additionally, you’ve made the fringe so elitist that the only ones responding to the greater purpose are those who can identify with the movement.Earthsense takes a common sense approach to sustainability. We believe there is a little green in everyone, and we are certain that the key is in identifying those attributes that make a product or service desirable without muddying the waters with political or lifestyle philosophies that can alienate people who do not feel compelled to join the cause.In this enlightening session, Earthsense will share research from the most comprehensive database of consumer behavior on green: Eco-Insights. We’ll share the why behind the buy – comparing and contrasting product categories to give you the background you need to create compelling product messaging that appeals to the masses, not just those who already drank the “green kool-aid.”Presented by: Wendy Cobrda, President & Co-Founder of Earthsense

Transcript of Earthsense LOHAS June 2010

Page 1: Earthsense LOHAS June 2010

(Bringing sustainability to the masses by thinking like a consumer!)

HowHedonics & Economics

are the natural

complement to LOHAS

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Sustainable consumption?

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PSYCHOLOGY studies focusing on desire for pleasure and the avoidance of pain; happiness

PHILOSOPHY theories surrounding ethics of seeking individual pleasure at the expense of the well-being of others

Hedonics

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Eudaimonics:contentedness,purpose & meaning,‘raison d’etre’

Hedonics: temporal feelings, more positive feelings than negative

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...think I’ll buy the chocolate mocha

madness ice cream because …Ben & Jerry’s

is such an environmentally

sensitive company.

...think I’ll buy the chocolate mocha

madness ice cream because …it is cold and creamy and chocolate –

it tastes so good!

OR

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The Dimensions Framework

Atti

tude

Behavior

LOHAS

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Dimensions

LOW MEDIUM HIGH

LOW

MED

IUM

HIGH

BEHAVIOR

ATTITU

DE

Detached18%

Detached18%

Strivers16%

Strivers16%

Believers15%

Believers15%

Ambivalent1%

Ambivalent1%

Habitual4%

Habitual4%

Practical4%

Practical4%

Skeptic24%

Skeptic24%

Selective11%

Selective11%

Enthusiasts7%

Enthusiasts7%

Source: Eco-Insights 2008, 2009

CORE

RIM

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Market Shifts 2008 to 2009

LOW MEDIUM HIGH

LOW

MED

IUM

HIGH

BEHAVIOR

ATTITU

DE

Detached12%

Detached12%

Strivers17%

Strivers17%

Believers16%

Believers16%

Ambivalent<1%

Ambivalent<1%

Habitual3%

Habitual3%

Practical2%

Practical2%

Skeptic30%

Skeptic30%

Selective12%

Selective12%

Enthusiasts7%

Enthusiasts7%

LOW MEDIUM HIGH

LOW

MED

IUM

HIGH

BEHAVIORAT

TITU

DE

Detached18%

Detached18%

Strivers16%

Strivers16%

Believers15%

Believers15%

Ambivalent1%

Ambivalent1%

Habitual4%

Habitual4%

Practical4%

Practical4%

Skeptic24%

Skeptic24%

Selective11%

Selective11%

Enthusiasts7%

Enthusiasts7%

2008 2009

Biggest change is the shift from “Skeptics” to “Detached.”

Source: Eco-Insights 2008, 2009

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Love the taste

Fave Brand

Live long & prosper

What’s in &

not in it

It’s easyPsst! Try this!

MONEY

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LOHAS

ManufacturingSource

Packaging

LOHOE

TastePrice

BrandFuture HealthCurrent Health

AvailabilityLifestyle

IngredientsRecommended

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Green Core

Green Rim

Taste TasteIngredients Ingredients

Lifestyle Price

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Green Core

Green Rim

Taste LifestyleManufacturing Availability

Source Packaging

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Green Core Green RimIngredients /

MaterialsIngredients /

MaterialsHealth / Safety Quality

Quality Brand

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Green Core Green RimIngredients /

MaterialsIngredients /

MaterialsHealth / Safety Quality

Quality Brand

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Green Core

Green Rim

Cost savings Cost savingsImpact ImpactQuality Quality

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Green Core

Green Rim

Cost savings Cost savingsImpact BrandQuality Price

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We don’t need no stinkin’ green premiums

Source: Eco-Insights 2008, 2009

Soup

Refrig

erat

or

Wal

l pai

nt

Yogur

tCar

Coffe

e

Poultr

y

Larg

e TV

Electr

icity

Skinca

re lo

tion

Laun

dry d

eter

gent

Juice

Paper

towel

s

Strawbe

rries

Froz

en ve

geta

bles M

ilk

Pet fo

od

Noteb

ook c

ompu

ter

Crack

ers

MP3

Playe

r0

5

10

15

20

25

30

35

40

45

50

2008

2009

% W

illi

ng t

o P

ay G

reen P

rem

ium

% Willing to Pay a Premium for Different Green Products

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Economics trumps desire…Rate of Green Buying in Next 12 Months for Big Ticket Items

Big Ticket Purchases (May 2010 GCI) Total

House buyers

Apt buyers

Remodelers

Car buyers

HH appliance

buyers

I probably will buy them  in what I consider “green” versions, even if it costs a little more 30 8 19 20 20 37I probably will buy them in what I consider “green” versions, if the price is about the same 42 46 41 37 36 45I probably will buy them in what I consider conventional/non-“green” versions 14 21 5 11 20 6I don’t know if I will buy them in “green” or conventional/non-“green” versions 14 25 35 32 24 13

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Green Premium Payer Profiles Differ by Product

Source: Eco-Insights 2009

Product category

Men more likely to pay

premiumNo gender difference

Women more likely to pay premium

Crackers X

Granola bars X

Pet food X

Poultry X

Detergent X

Paper towels X

Skincare lotion X

Car X

Computer X

MP3 player X

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22Earthsense ©2010 All rights reserved.

5%

10%

30%

34%

20%

How often do you read labels?

NeverRarelyOccasionallyOftenAlmost always / Always

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23Earthsense ©2010 All rights reserved.

Price

Nutritional content

Quantity of product

Brand

Additives

Non toxic

Seals or certifications

Country of origin

Natural

Bio-degradable

No artificial hormones or antibiotics

Packaging that is recyclable

Packaging made from recycled materials

Not tested on animals

Organic

Phosphate free

Safe for septic and gray water systems

Kosher certification

0% 10% 20% 30% 40% 50% 60% 70% 80%

What information do you usually look for?

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RETHINK

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REDUCEREUSERECYCLE

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REFUSERETOOLRESTYLE

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RESEARCHREINVENTREPOSITION

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29Earthsense ©2010 All rights reserved.

LOHAS and LOHOE are not mutually exclusive concepts

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30Earthsense ©2010 All rights reserved.

Thank you!Earthsense.comGreenConfidenceIndex.comAsTheEarthSpins.com