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4 Finding the green in todays shoppers Sustainability trends and new shopper insights
What did we learn from this study?
Green Shoppers may not t the granola stereotype. Demographically, they are diversely spread along all income
ranges, age brackets, education levels and various household sizes. On average green shoppers are a little older, tend
to have higher income, and more education, but you will nd substantial numbers o green shoppers can be ound
distributed across the consumer population.
Green shoppers are a great customer target, representing a high value segment who buy more products on each trip,
visit the store more regularly, and demonstrate more brand and retailer loyalty in their purchasing behavior. They are
active consumers who buy more and shop more oten as opposed to the image o an austere minimalist. They are less
price sensitive than the average shopper and they are generally not bargain hunters.
Sustainability considerations either drive or infuence the buying decisions o more than hal the shoppers interviewed
in our study. However, or most green shoppers, sustainability considerations are an important purchase driver, but
secondary to other dominant purchase drivers. For most shopperssustainable considerations become a tie-breaker
when other actors are in relative parity. Because o this eect, sustainability characteristics drive a relatively large
amount o product switching. Once a more sustainable product has captured the shoppers commitment it tends to
create brand stickiness by retaining the shoppers loyalty through repurchase.
We ound thatgreen shoppers are still on a learning curve. They do not always understand the social and environmental
benets and they need help at the point o purchase. They are continuing to be educated by the media and the product
inormation that is available to them. We ound the rate ogreen purchase was very sensitive to the use o in-store
communication and inormation.
A signicant minority o committed and proactive green shoppers are willing to pay more or green products, however,
the larger potential population o shoppers that lean towards green want price and perormance parityor sustainable
products because it is not their dominant purchase driver.
We learned that there is an unullled, latent demand or green products that could be realized through increased
product development, in-store communication, and product availability. We ound that almost all shoppers are open to
buying green products and many know what a green product is or ound themselves looking or a green product during
their shopping trip. Despite the openness and willingness o shoppers to buy these products, only 22 percent o people
surveyed purchased a green product in their surveyed shopping experience.
Executive summary
Source: 2009 GMA/Deloitte Green Shopper Study
Sample Size is 6,498 Shoppers Interviewed; Percent gures indicate portion o respondents who indicated that
they a) would purchase a green product (q14) b) answered Yes to knowing what a green product is (unaided
q9) c) were looking or a green product (yes or no to seeing green products q10) d) saw green products (q10)
and e) purchased a green product (aided) (q11). A sample questionnaire provided to shoppers is in Appendix A
Figure 1
There is a large opportunity or companies to ulll
the latent demand or green products
Overview
The Grocery Manuacturers Association (GMA) enlisted Deloitte* to conduct a study to examine the behavior o consumers related to the purchase
o sustainable products. We conducted a direct study o more than 6,000 shopper experiences in 11 major retailers o varying ormats to understand
the characteristics o the green shopper and to examine their shopping responses to sustainability issues. We will examine the characteristics and the
behaviors o this shopper in greater detail to understand the emerging green shopper and the market opportunity to serve them.
100% Surveyed
75% Know what agreen product is
63% Looking
for green
47% Sawgreen products
22%Bought green
95% Would buy green
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5Finding the green in todays shoppers Sustainability trends and new shopper insights
Overview of study and methodology
Awareness o sustainability issues continues to grow, and the infuence o sustainability on consumer behavior and
product choices continues to evolve. Sustainability considerations are emerging as a key product attribute infuencing
shopper decisions. The GMA Sales Committee commissioned this study, conducted with the assistance o Deloitte, to
better understand the infuences o sustainable or green considerations on shopping behavior. Specically, the study
ocused on addressing the ollowing key questions:
Whoisthesustainableconsumer?
Howdoessustainabilityinuencethepurchasingdecision?
Howwouldtheconsumerliketobecommunicatedtoaboutsustainability?
Howdoestheretailenvironmentinuencesustainabilitypurchasingdecisions?
Whatarethekeylessonsintheareaofsustainabilityconsumertrends?
This report ollows the widely cited GMA-Deloitte reports onSustainability, Sustainability: Balancing Opportunity andRisk in the Consumer Products Industry (2007), andSustainability: From the Boardroom to the Breakroom (2008). The
2007 report established and dened the sustainability movement across retail and consumer goods sectors, and it
provided senior leadership with a perspective about best practices and strategies or sustainability initiatives. The 2008
report covered best practices or sustainability in manuacturing and distribution operations. While the initial ocus o
sustainability eorts centered around cost savings and risk management, the possibility or greater gains are emerging as
a result o consumer demand or green products.
This study conrms that a signicant portion o consumers are now considering social and environmental benets as part
o their calculation o product value and purchasing decisions. This 2009 report highlights the shopper insights needed
to bring new sales and marketing best practices to consumer product companies and their retail partners.
More than 6,000 shopper intercepts at 11 leading retailers
Sustainability as it relates to consumer purchasing decisions is a challenging topic to study. It is particularly dicult to getto the truth concerning consumer behavior when studying a social responsibility issue like sustainability. Many consumer
studies are based on ocus groups, online surveys or phone interviews conducted retrospectivelyoutside the store,
oten days or even weeks ater the shopping trip. At that point, most shoppers will talk about their aspirations rather
than their actual practices. Ater a short period o time the recollections o a shopping experience can be selectively
remembered or blended with other experiences. Given these tendencies, it is understandable that critics have viewed
past consumer studies o sustainability with skepticism. To overcome these challenges, we decided to use a more direct
and immediate method to study the eect o sustainability on the shoppers shopping experience.
To get closer to the truth, we chose to use Deloittes Customer Experience Methodologyto collect high-quality primary
data that reduced the bias and distortions o retrospective methods. We randomly intercepted and interviewed shoppers
at the stores immediately as they nished their shopping experience. At that point, the shoppers purchasing decisions
were resh in their minds and their actual purchases provide insight into their true shopping behaviors.
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7Finding the green in todays shoppers Sustainability trends and new shopper insights
Who is the Green Shopper?
Green shoppers are a large, high-value segment o importance to retailers and many manuacturers. Green shoppers visit
stores more requently, buy more products on each trip, and demonstrate more brand and retailer loyalty. This suggests
that shopper marketing insights dealing with green shoppers will prove particularly attractive to many retailers.
Source: 2009 GMA/Deloitte Green Shopper Study
Note: Sample Size is 6,498 Shoppers Interviewed; green shoppers is 1,410 (respondents that indicated they purchased a green product today). When asked i they would shop more oten, less oten or about
the same (q16) 23.7% o all shoppers (6,498) indicated they would sho p more oten. 29.9% o green shoppers (1,410) ind icated they would shop more oten than thei r current rate o visits. When asked i they
bought more, less or about the same as expected on this shopping trip (q15), 33.8% o all shopper s (6,498) indicated they bought more tha n expected. 43.7% o green shoppers (1,410) indi cated they bought
more than expected.
Figure 2
Shopping behaviors o green shoppers versus all shoppers interviewed
Based on our liestyle segmentation o the surveyed population, we estimate that green perceptions drive or infuence
some purchase decisions or more than hal o all the shoppers surveyed. One in ve shoppers surveyed considers
sustainability to be a dominant or primary decision-making actor in many merchandise categories. An additional one in
three shoppers was infuenced by sustainability as a consideration. In total, 54 percent consider sustainability to be one
o their decision-making actors in product and store selection.
Source: 2008 Deloitte GMA Sustainability Consumer Study
Note: Sample size is 6,498 shoppers interviewed, based on answers to a series o liestyle questions (q8 - reerence Appendix B)
Figure 3
Fity-our percent o shoppers interviewed consider sustainability to be one o their decision making actors and are
Leaning Green
33.8%
23.7% 29.9%
43.7%
Total
sample
Greenshoppers
Shop more often
Boughtmore
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8 Finding the green in todays shoppers Sustainability trends and new shopper insights
Green shoppers are not who you think they are
Contrary to the popular myth that the green shopper is an austere idealist, they actually buy more and shop more oten
than the typical shopper. Green shoppers said that they bought more than their planned purchases (29 percent more oten
than the total surveyed population) and that they would shop more requently 26 percent o the time (see Figure 2). This
lit in market basket and loyalty held up in every retail ormat we studied. Green shoppers identied themselves as being
among the most active shoppers and consumers. Our hypothesis is that these shoppers buy green to help reduce the social
impact o their consumption. We also ound that the most typical green shopper tended to be a routine, weekly shopper.
They were also less price sensitive and more likely to repurchase products. They tend to stick with a green product once
they have adopted it. All the data suggests that this is a very desirable target shopper that dees traditional segmentation
approaches because o their diversity on other liestyle and demographic attributes.
Some ndings o our research were surprising. The highest demographic concentrations o green shoppers are in the older
baby boomer generation. The other generations have slightly smaller proportions o green shoppers. We intuitively expected
younger shoppers to be the greenest demographic, but instead ound that younger green shoppers place a higher importance
on green issues, but have not ully integrated it into their actual shopping practices. We believe that these younger shoppers
will become more green in their purchasing behaviors than their parents over time because they reported eeling strongly
about the importance o sustainability. The oldest generation o shoppers is somewhat less green than the average, probablybecause o a dierent generational set o core values and because o the price sensitivity rom xed income constraints.
Source: 2009 GMA/Deloitte Green Shopper Study
Note: Sample Size is 6,498 shoppers Interviewed; green shoppers is 1,410
Figure 4
Demographics o the green shoppers
The most typical green shopper is somewhat older, has more income than average, has ewer people in their household,
and is better educated than the averages o the total sample population. However, it would be a mistake to use the
average as the basis o a marketing strategy because o the inherent diversity and wide distribution o this shopper
among traditional shopper segments.
Consumers are on a learning curve
The green consumer can be better understood by looking at stages o development rather than static segments. Consumers
are on an adoption curve based on their awareness and understanding o sustainability issues. We classied our shoppers
into ve segments or stages o development: unaware, unsure, infuenced, proactive or committed.
To better understand these consumers attitudes and behaviors, we tested and scored them based on demonstrable,
sustainable liestyle attributes. On the surace, almost everyone recognized the long-term importance o preserving the
environment and developing corporate responsibility, so we designed a more rigorous liestyle test or assessing green
shoppers commitment to sustainability.
Household
60
303+Children
Nochildren
+$100K
+$30KGraduatedegree
Highschool
Age
Income
Education
Sample average
Green shoppers
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9Finding the green in todays shoppers Sustainability trends and new shopper insights
The test placed our sample o 6,500 shoppers along a continuum o greenness that matched their purchasing behavior.
Sustainable liestyle choices are a strong predictor o purchase behaviors. Furthermore, green liestyle choices that require
eort and commitment are the best predictors o the propensity to buy green products.
Source: 2009 GMA/Deloitte Green Shopper Study
Note: Sample Size is 6,498 Shoppers Interviewed; Stage o Development based on answers to a series o liestyle questions (reerence Appendix B)
Figure 5
Breakdown o shoppers by green purchasing development level
There are several levels o green shoppers across all demographic categories. At the highest level is a small 2 percent minority
o committed shoppers surveyed that make most o their purchasing decisions based on sustainability considerations
whenever possible. At the next level is a larger minority o 18 percent o shoppers surveyed whoproactivelyintegrate
sustainability considerations with other purchasing values into most o their buying decisions. An even larger group that
represents more than one third o the sampled population is infuenced by sustainability as a secondary purchasing value.
For these shoppers, recognized sustainability benets are a tie-breaker. In total, approximately 54 percent o shoppers
surveyed use sustainability as part o their personal ormula or recognizing product value. A third o our sample was unsure
or neutral to sustainability considerations. The remaining 13 percent o shoppers surveyed were either unaware or rejected
sustainability considerations, but still buy green products at a lower rate when the products meet other purchasing criteria.
However, it would be a mistake to put these shoppers permanently into a box. As we will go on to explain in great
detail! The distribution o green shoppers is in a state o fux. We believe that there is substantial movement in the
middle stages o development rom unsure to infuenced, and toward the proactive group. We believe that the extreme
segments are more static and less likely to change dramatically. By their very nature, sustainability issues will create a
larger market opportunity over time. By looking at the maturation o consumer behavior by product category, we noticed
that shoppers gradually grow their share o wallet towards green products as the value that they place on sustainability
increases.
0%
5%
10%
15%
20%
25%
30%
35%
UnawareUnsureInfluencedProactiveCommited
54% Leaning green
Green purchasing stages of development
13%
33%34%
18%
2%%o
fallshoppersinterviewed
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11Finding the green in todays shoppers Sustainability trends and new shopper insights
Insights into Green Shoppers behavior
We defned green to represent a broad set o product attributes that are more environmentally and socially sustainable.
These characteristics included: low water usage, reduced packaging, organic, locally grown, air trade, energy efcient,
biodegradable, non-toxic and low volatility organic compounds, and recyclable materials or content. We asked the
surveyed shopper i they agreed with this defnition o green and understood these product characteristics. Then
we provided them with a list o examples o these products to urther clariy the defnition and achieve a consistent
understanding with our surveyed shoppers. A sample o this product guide is ound in Appendix C.
These sustainable product characteristics d irectly aect many shopper decisions at the store shel. While green is
not the dominant purchasing driver or the majority o green shoppers, green is emerging as an important brand
dierentiator. It adds recognized social benets to the value proposition or many shoppers. It also acts as a requent tie
breaker that tips the balance when other purchase drivers are in parity.
Based on the results o this study, we have developed a behavioral model (Figure 7) that explains the interaction and eect o
sustainability with other purchasing drivers. Green shoppers develop through each stage or segment based on the positioning
o sustainability in their value hierarchy. The model helps explain the behaviors observed at each stage o development.
Every Shopper has their own value equation and weighs purchasing actors, including price, brand, quality and sustainability.Their purchasing behavior depends on where sustainability is positioned relative to the other purchase drivers in the
shoppers hierarchy o values. For example when sustainability is the dominant value, shoppers all into the committed to
green segment that accounts or 2 percent o the population surveyed. When sustainability is a primary value with relative
equal weight to other important purchasing values, the shopper becomes theproactive purchaser that represents 18
percent o our surveyed shoppers. When sustainability considerations are a secondary purchasing value, the shopper is
infuenced towards green products when other primary considerations are in balance. This group constitutes the 34 percent
o shoppers surveyed who are infuenced by sustainability concerns. When sustainability considerations all out o the value
hierarchy o the behavioral model, shoppers all into the unsure and unaware segments. Other values drive the purchasing
decision and green products are purchased coincidently.
Source: 2009 GMA/Deloitte Green Shopper Study
Note: Sample Size is 1,410 green shoppers Interviewed (Q11). Possible responses or green purchase drivers were Competitive Price, Quality, Environmental Reasons, Reputation/Brand, Sale/ Promotion,
Value or Other. Green as a Dominant, Primary, Secondary value were based on % responses or environmental reasons.
Figure 7
The behavioral model illustrates green as a purchase driver relative to its position in the shoppers value hierarchy
Committed Proactive Influenced Unsure Unaware
Sustainability is thedominant
purchasing value
Sustainability is anequally important
primary purchasingvalue
Sustainability is a tiebreaker when other
purchase requirementsare met
Sustainability is notconsidered as a major
purchasing value
Sustainability is not aconscious
purchasing value
Dominant
Primary
Secondary
Tertiary
Using this behavioral model you can see why green is oten a tie-breaker when there is signicant cost and quality parity
in the category. The reality is that competition tends to create relative parity in products over time, so a dierentiated
secondary purchasing value like sustainability can play a strong infuencing role in shopper decisions. Another obvious
example is at times when price is most oten a dominant or primary actor and this condition denes the bargain hunter
or price sensitive shopper.
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12 Finding the green in todays shoppers Sustainability trends and new shopper insights
This simple behavioral model does a good job o explaining the results in our shopper research. Products present the
strongest value proposition when they eectively integrate several major purchase values into the primary position rather
than a single dominant characteristic. Green products are most eective when they represent a broader value
proposition that encompasses multiple purchase drivers.
Even though the top tier o green shoppers will requently pay more, most shoppers would like green products to be
price competitive. They oten dont understand or buy into the rationale that a green product should be more expensive.
Shoppers dont understand why a green product should cost more i it was manuactured with less packaging
or it was transported less distance.
In general, green characteristics are more important in consumable products such as those produced by the CPG industry.
Consumers are more conscious o their impact on the environment and resources when they buy and use a product regularly.
Sustainable characteristics are less important to the consumer or categories o merchandise that are more durable.
Source: 2009 GMA/Deloitte Green Shopper Study
Note: Sample Size is 6,498 Shoppers Interviewed. Percentage represents respondents purchasing a green product in that category on this shopping trip. Percentages dont equal 100% as respondents could
select more than one category. Samples o green products oered in each category can be ound in Appendix C.
Figure 8
Green purchases are ar larger in more consumable categories
We ound that the green shoppers exhibited some unique and interesting behaviors that should be taken into consideration
in developing and executing a sustainable product strategy.
Fity-seven percent o green purchasers surveyed intentionally bought more sustainable products and 78 percent o these
intentional purchasers switched to the green product because o its characteristics. It appears that once someone has
made the switch to a green product, they are very likely to stick with it and buy it regularly. We theorize that when
a shopper makes a conscious selection o a green product that they are making a personal contract that implies social
responsibility and they are less likely to change products in the uture.
A little more than hal o our intentional green purchasers surveyed indicated that they would pay more or green products.
We also believe that in general our top two green segments (committed and proactive) which represent 20 percent o
the shopping population will pay more or many green products. The majority o shoppers are looking or parity in pricing
related to more sustainable products. In the shoppers mind, using ewer resources is not usually more expensive.
Our green shoppers tested as slightly more responsive to advertising and slightly less sensitive to promotions. Our
interpretation o the statistics is that shoppers need more inormation related to green products and in general respond
more avorably to an Every Day Low Price strategy than cyclical promotional strategies. This closely aligns with the strong
evidence o a loyalty eect connected with sustainable characteristics.
0%
5%
10%
15%
20%
25%
30%
35%
40%
Everydaygrocery
33%31%
28%
19%
12%11% 11%
8%
3%
Produce Cleaning/household
Paperproducts
Meat/fish/poultry
Health &beauty
Petproducts
Electronics Apparel
Product category
%o
fshopperspurchasinggreenproducts
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13Finding the green in todays shoppers Sustainability trends and new shopper insights
Consumer businesses are missing a substantial opportunity to market and provide greener products. Ninety-ve percent
o shoppers surveyed indicated they are ready and willing to consider more sustainable products, but green products
were only purchased in 22 percent o the shopping trips. There are substantial gaps between the markets readiness or
sustainable products and the delivery o those products to the shoppers market basket.
Many shoppers want green products, but retailers and brand marketers are losing green sales at several key points along
the path to a purchase. The largest opportunities to capture shoppers interested in green products involve building
awareness, educating shoppers, making green products easier to fnd and recognize, enhancing in-store communications
and inspiring shoppers at the store shel.
Where marketers lose green
The2009 GMA/Deloitte Green Shopper study identied where retailers and manuacturers are losing a portion o
potential green sales.
Opportunities to engage the Green Shopper
Source: 2009 GMA/Deloitte Green Shopper Study
Note: Sample Size is 6,498 Shoppers Interviewed; Percent gures indicate portion o respondents who indicated that they a) would purchase a green product (q14) b) answered Yes to knowing what a
green product is (unaided q8) c) were looking or a green product (yes or no to seeing green products q10) d) saw green products (q10) and e) purchased a green product (aided) (q11)
Figure 9
The lost opportunity on the path to purchase
Shoppers are becoming turned o about purchasing green at the last step. Although 47 percent o shoppers
surveyed looked or and ound green products, only 22 percent o the shoppers surveyed actually purchased one.
Retailers and manuacturers are losing potential green sales rom a quarter o shoppers at the store shel. Inspiration and
inormation will yield better conversion at the shel level decision. For some shoppers, credibility and concerns about
product perormance enter into the equation.
22% Boughtgreen
Key leakagereason
Key leakagesolutions
Unaware Uneducated UnmotivatedUnavailable
Retailers and CPG companies need to collaborate toeducate on benefits such as water reduction, lesspackaging, etc
Align communication and messaging to consumersthrough advertising, in store, on line and othertouchpoints
Increase messaging on packaging/labeling and
coordinate efforts with signage and displays
Increase displays and signage
Trial offers for new products
Highlight benefit of green product
Increase selection of products
Improve in-stock position
95% Wouldbuy
75% Know agreen product
63% Lookingfor green
47% Sawgreen
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14 Finding the green in todays shoppers Sustainability trends and new shopper insights
Green products are getting lost in the store. Although 63 percent o shoppers surveyed looked or green products,
only 47 percent actually ound them. Surveyed shoppers oten couldnt nd the green products they wanted in the store.
It is very possible or green products to become lost in the assortment. A good sustainable product strategy provides
clear visibility and selling cues to the shopper to highlight green products in the assortment. Retailers and manuacturers
need to work together to determine the appropriate assortment o green products, minimize out-o-stocks, and clearly
identiy green products in the store. Utilizing shopper marketing programs and leveraging vehicles to draw attention to
green products will help increase the green conversion rates.
One-third o shoppers surveyed who would buy green products indicated that they are not yet inspired to look or them.
Awareness and education move people along their green learning curve. Shoppers do not always understand
the social and environmental benets o products and are oten conused by the messages in the media. Many are
unaware o what makes a product sustainable versus merely good or you. A large number o shoppers remain unsure
o what is green, and some are still unsure o the whole green movement.
In-store communication strongly infuences green purchasing. Some shoppers remain unsure o product
perormance or product quality; they assume sustainable products would not perorm as well. Shoppers at this stage are
questioning the product, so communicating brand and product attributes via in store signage and product packagingdrives shoppers to purchase. The top three means o identiying a product as green or shoppers surveyed were through
packaging/labeling, in-store signage and brand advertising. Retailers and manuacturers can leverage these vehicles to
address quality and perormance questions and motivate shoppers to become purchasers.
To address these issues, retailers and manuacturers need to provide more coordinated communication and education
about sustainability. They need to make the business case or buying green to the shopper. Education on product
benets, social and environmental benets, and actions that shoppers and consumers can take are needed rom
both retailers and manuacturers. Consistent, aligned messaging in stores, online, in advertising and involving other
touchpoints is a critical step to driving shoppers rom interested to purchasers.
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15Finding the green in todays shoppers Sustainability trends and new shopper insights
Sustainability benets associated with operational eciency improvement and risk management are well established and
accepted by most retail and consumer products companies. However, the results o this study indicate a signicant near
term opportunity to leverage sustainability as a driver o incremental revenue. With sustainability being a actor in the
purchasing decisions o 54 percent o shoppers surveyed, its an opportunity that can not be ignored.
Moreover, since green products generate a relatively high level o product switchingand green shoppers tend to
stick with green products once they like themcompanies that develop and market successul green products ahead
o competitors are much better positioned to gain advantage. Companies that delay will likely ace an uphill battle as
increasing numbers o shoppers remain loyal to the competitors products that reached them rst. Thats why the time to
investigate green shopper initiatives or your company is now.
With that in mind, we recommend translating latent demand into revenue by leveraging a new Go-To Market Framework
highlighting consumer, brand, product and value chain components by:
1. Dening the size o the prize or green products at your company and understand your high value consumers;
2. Developing overall strategy & value proposition mapped to product oerings and positioning;
3. Collaboratively developing integrated marketing and communication plans to deliver against brand promise; and4. Integrating sustainability across the value chain
Summary of recommendations
Figure 10
The collaborative Go-To Market Framework
TSE
Consumer segmentation
Strategy & valueproposition
Offer development
Communication& marketing
Launch & execution
Value chain integration
1
2
6
3
45
Define overall strategy and valueproposition to sustainable shoppers
Assess and modify current productassortment (incl. private labels) andstore layout to deliver on the strategy
and value proposition
Launch a new sustainable shopperstrategy; subsequently roll-out andexecute seamlessly
Develop a 360 integrated marketingplan to reach the sustainable shopperat every touch point and deliver againstthe brand promise
Source: Deloitte, 2009
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16 Finding the green in todays shoppers Sustainability trends and new shopper insights
1. Defne the size o the prize or green products at your company and understand your high value consumers
With more than hal o shoppers surveyed considering sustainability at the store shel, the size o the market may seem
vast. However, sustainability has substantially dierent degrees o importance to dierent target segments, dierent
product categories, and dierent retailers target shoppers. Determining the value o sustainability on your product lines
and target consumersas well as the target shoppers o your key retail accountsis imperative.
Since, based on our survey results, green shoppers shop more requently, buy more per trip, and are to some degree less
price sensitive than the average shopper, they should be perceived as gold in the eyes o executives. Since, again based
on our survey results, green shoppers tend to become loyal to green products once theyve tried them, they should be
perceived as platinum in the eyes o consumer products executives.
To determine your market share opportunity, you will need to understand the positioning o your current sustainable
product oering relative to the competition in each category. Understanding the experiences o other manuacturers and
retailers will prove valuable to successul brand development.
Source: Deloitte, 2009
Figure 11
Key questions to consider when dening consumer segments
However, numerous potential pitalls await marketers. While our research clearly identied a large green opportunity, we
believe conusion remains widespread because o the breadth and complexity o the sustainability movement.
For example, retailers and manuacturers need to develop a very detailed understanding o how sustainability maps
to their existing shopper bases and target shoppers. The analysis needs to cover more than just purchases or buying
patterns. Consumer preerences in sustainability vary by sub-category, so it is critical to evaluate your sustainability
perormance and oer against consumer perceptions and expectations along this dimension. The ever-present danger
o assuming there is an average consumer across categories is magnied with green shoppers. There are numerous
nuances in the green shopper adoption curve that require a deeper understanding o purchasing behaviors and liestyles.
There are dierent expectations on product perormance, price, and quality across categories and consumer segments.
There is no black or white, just shades o green.
2. Develop overall strategy & value proposition mapped to product oerings and positioning
Companies need to determine how central sustainability is to their current positioning and proactively determine how
central it should be in the uture. Perorming an internal assessment to determine the overall strategy and corresponding
value propositions requires a look at the depth and breadth o sustainability within your portolio.
There is a considerable dierence between a company that chooses to oer a ew sustainable products in their portolio
and a company that positions sustainability as key to all products and categories. Each individual company needs to
assess the role o sustainability across the portolio, and then speciy its priorities.
Consumer assessment
Do we understand Green Shopper needs and behaviors?
How can we enrich current consumer segmentation with sustainability component?
How much will increased focus on sustainability aid in retaining / acquiring consumersin each segment?
No consumer interest(Category/products inconsistentwith sustainability)
Sustainability is priceof entry
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17Finding the green in todays shoppers Sustainability trends and new shopper insights
Source: Deloitte, 2009
Figure 12
Assessment to dene breadth and depth o oering
Like it or not, every company and brand carries a set o perceptions and expectations in the minds o shoppers some
positive and some negative. It is not realistic to expect that a company with a long history will instantly change this
perception in the minds o consumers. Any strategy to address the opportunity associated with the sustainable shopperwill need to consider this at its core.
Source: Deloitte, 2009
Figure 13
Key questions to address strategy and value propositions
Strategy & value
propositions
Do we have the brand permission to serve the green shopper?
How central should sustainability be to our positioning (should the whole brand or asub-brand communicate sustainability promise)? What should it be in the future?
Do we have or can we acquire the capabilities?
Brand is antithesis ofsustainability
Brand issynonymous withsustainability
Acquiring capabilities requiresexpensive overhaul
No additionalinvestment needed
Broad sustainability portfolio wheresustainability features are focused
on cost savings
Broad sustainability portfolio andsustainability embedded through the
companys value chain
Sustainability represents small partof the business but, embedded
through the value chain
Sustainability is small part ofportfolio and features are focused
on cost savings
Example: Limited changes made through theentire product portfolio
Example: All categories, brands, and productsare sustainability focused and significant effortsto green the entire value chain
Example: Limited portfolio is sustainabilityfocused but significant set of sustainableattributes are targeted
Example: Concentrate products in fewcategories with focus on limited set ofsustainability attributesNo
products
All categories
and productsare sustainable
Minimal changesthat save costs
Primary valueproposition
Depth of proposition: How integral is sustainability to our brand promise?
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18 Finding the green in todays shoppers Sustainability trends and new shopper insights
Sourcing
Manufacturing
Packaging
Distribution
Product Use
Disposal
Input includes evaluation of productsustainability within the six majorsteps of the product life cycle
0
50
-50
100
-100
150
-150
200
-200
250
-250
0% 50% 100%
Product sustainability and value matrix
Brand product/value index
Niche brands/products
Address short term consumertrends related to sustainableproducts
Some niche products and/orattributes can move to strategicdepending on value
Phase out brands/products
These brands/products should bereformulated, divested ordiscontinued
Core brands/products
Important brand/products to theenterprises strategy
Investment into improving thebrand/products sustainability effectsshould have large impact on overallenterprise
Strategic brands/products
Key brands/products to theenterprises sustainability offering
Further investment into thesebrands/products are essential tothe long term sustainabilitystrategy
Source: Deloitte, 2009
Figure 14
Sustainability product portolio analysis will help develop the oering and positioning
Based on our survey, many shoppers have not made up their minds about which retailers or brands or products oer the
best balance o perormance, quality, price and sustainability, so demonstrating your brand commitment to sustainabilitywill be worthwhile. Since green shoppers are more loyal, the ongoing rewards o green success should be greater.
A companys existing organization, supply chain, products, and brands can enhance or undermine the success o a
sustainability initiative. Ater dening the strategy and value propositions, a company needs to assess how sustainable
their current product portolio is. Figure 14 provides a ramework or evaluating the relative sustainability perormance
o existing product portolios. This assessment may identiy opportunities to reposition certain products or it may identiy
issues and the need to modiy certain products. Regardless o the results, this insight will position companies to more
accurately and honestly articulate their value proposition to the green shopper in the context o the entire value chain.
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19Finding the green in todays shoppers Sustainability trends and new shopper insights
Source: Deloitte, 2009
Figure 15
Key questions to address when developing product oering and position
O course, a green brand positioning must be tested and rened to learn what resonates best with green shoppers and
what delivers the highest environmental benet at the right price.
3. Collaboratively develop integrated marketing and communication plans to deliver against brand promise
Since our research indicates that in-store communications are a particularly eective element o the marketing mix or
green shoppers, collaboratively developing shopper marketing insights with retailers or reaching green shoppers oers
substantial potential or many companies.
Creating marketing/communications plans collaboratively that control in-store communication will be critical. This would
include new communication methods, new promotion methods and a new way to collectively measure results.
Manuacturers and retailers need to coordinate communications to and education o shoppers on green products
and their benets. They need to align their messaging and develop collaborative eorts along 360-degree, integrated,
shopper-centric shopper marketing initiatives. This would shore up the key areas o leakage o green sales as indicated
by our research (see Figure 9). It would also help shoppers identiy green products, nd them in the stores and believe in
the eatures and benets o the products.
Develop offer andpositioning
What are the implications of the mod ified value proposition for our existing offer(e.g. product assortment, store layout, price points)?
What products (both private labels and sourced) and in which categories need to beadded / phased out / modified to deliver on the promise?
Lower performance Better performance
Same packaging Most sustainable packaging
Lower price Higher price
Existing supply chain sufficient Significant enhancements required
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21Finding the green in todays shoppers Sustainability trends and new shopper insights
4. Integrate sustainability across the value chain
Ater completing the internal assessment o the consumer, company and brand positioning, it is critical to back up thesustainability eorts across all components o the value chain, rom sourcing through disposal. The law o unintended
consequences has already yielded negative consequences at major consumer products and retail companies, ranging
rom production losses using new sustainable packaging to discovering hidden costs to denunciation in the press or
greenwashing a not-so-green oering.
Given this experience, it is critically important to take a ull lie cycle view o potential impacts associated with oerings
to respond to the green shopper including product perormance, pricing, packaging and supply chain. For companies
with green brands, embedding sustainability in entire value chain rom sourcing, production and distribution through
to consumption and disposalbecomes part o the brand promise. It also helps reduce risk o consumer backlash.
There are signicant business and brand implications i the value chain doesnt change. Consider the potential o
developing a green product and marketing the product to consumers as a green alternative. Focusing only on the
consumer leaves you exposed as shoppers expand their education. Consumers will nd the product may not havegreener manuacturing practices or in act, have unsustainable practices in their supply chain. The impact to the
brand and the idea that the brand does not actually have permission to back up the claim o a greener product would
ultimately do more harm than good. The brand impact could span across products or throughout a manuacturer.
In addition to the brand impact, there becomes a business implication i sustainability is treated as an individual
responsibility within an organization or through the value chain. Oten creating green products requires a dierent
approach to procurement o not only the raw materials, but packaging and production and d istribution as well.
Developing a green product without the entire supply chain support makes the economic value or return on investment
o green products very dicult to justiy.
In addition to embedding sustainability throughout the value chain, sustainability should be embedded in the
organization. It should be more than a department, it should be embedded cross-unctionally throughout an
organization. Sustainability leaders will need to drive accountability into each unctional area o an organization, or
example, through operations, supply chain and procurement. Focusing on green as an embedded, not separate,
issue should include your entire value chain rom sourcing, production and d istribution through to consumption
and disposal. We recommend you plan, coordinate and measure your sustainability eorts beyond just your product
assortment through a cross-unctional eort in the company.
Source: Deloitte, 2009
Figure 17 Key questions to consider when integrating sustainability into the value chain
Integrate into
value chain
What are the implications of the mod ified value proposition to the overall value chain?
How can we effectively collaborate with suppliers/partners to drive shopper targeting,communication, execution?
How do we align the internal organization to deliver the sustainable value proposition?
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22 Finding the green in todays shoppers Sustainability trends and new shopper insights
In conclusion
Sustainabilitys appeal to shoppers is already large. Nearly all shoppers surveyed would buy green; nearly two thirds
actively seek it on each shopping trip. However, since only 22 percent o the shoppers surveyed actually nd and buy the
green products that interest them, the latent, unullled demand or sustainability-enhanced products must be immense.
There is a tint o gold in green.
Based on our survey, the number o shoppers interested in green products is larger than most realize and the value o
these shoppers interested in green products is larger than most realize. Those two acts alone suggest that developing a
business case or green is likely a winner at many manuacturers and retailers.
Moreover, we expect the importance o sustainability will continue growing with shoppers. There is a clear adoption
curve that consumers traverse, starting with unaware/unsure and moving on to green-infuenced, proactively green
seeking, and committed to green. As consumers learn more about green products over time, they will likely move along
the adoption curve. As they move along the adoption curve, their purchases o sustainability-enhanced products does
not just growit accelerates.
In addition, shoppers will reward the companies that rst successully oer truly Green products. green shoppers try new
green products, yielding higher levels o brand switching. Furthermore, green shoppers remain loyal to products oncethey know they like them. Thats why successul green marketers can gain a rst-mover advantage that helps end o
competition in the uture. It seems the bountiul benets o sustainability can be sustained.
The key issuccessul green oerings. Achieving success in this relatively little-known green marketplace will take some
work. While green is very large in some product subcategories, some consumer segments, and some retailers, the
variations rom one to another are dramatic. Companies have to careully assess their consumer targets to determine the
size o their own green prize.
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23Finding the green in todays shoppers Sustainability trends and new shopper insights
Note: The ollowing was provided to shoppers to ollow along as the interviewer conducted the interview. As noted, depending on the response, some questions are skipped
Appendix A: Sample questionnaire
1. Which advertising, i any, inuenced
your decision to vist the store?
(Choose all that apply)
2. How oten do you shop at this
retailer?
3. Why are you shopping here
today?
4. Did you meet your shopping
objective?
Advertising did not play a role Weekly Routine store visit Yes
Newspaper advertising Monthly Returning an item No (Go to question 4B)
Radio advertising Every 3-6 months Shopping or a specic need
Television advertising Once a year Sale/promotion
Email advertising Not routinely Word o mouth
Internet websites This is my rst visit Comparison shopping/research
Internet advertising Just looking around/browsing
Catalog Driving by or by chance
Circular
Direct mail advertising
4A. What helped you meet your
objective?
4B. Why did you not meet your
objective? (Choose all that apply)
5. When deciding what store to go to,
how IMPORTANT are the ollowing
actors to you? Please SCORE each o
the actors rom a scale o 1-5. 1 = theleast important and 5 = the most.
1 - Least important 5 - Most important
6. COMPARE this store to its
competitors. Is this store BETTER,
WORSE, or IN LINE with its
compitetors or each o theollowing actors
Worse In Line Better
Good store layout Store did not carry it Social and environmental reputation Social and environmental reputation
Available service Couldnt nd items Convenience and location Convenience and location
Easy to nd items Too many product choices Wide selection o products Wide selection o products
Competitive prices Not enough inormation Quality/reshness o merchandise Quality/reshness o merchandise
Good signage Prices were too high Food/product saety Food/product saety
Lack o service Service and riendliness Service and riendliness
Wait time was too long Prices, promotions and values Prices, promotions and values
7. The defnition o going green is
Making conscious decisions to help
protect the environment. Is this in
line with yours?
8A. I separate my trash at home or
recycling...
8B. I turn o lights when I leave a
room...
8C. I use energy efcient light bulbs...
Yes Oten Oten Oten
No Occasionally Occasionally Occasionally
Pretty close Rarely Rarely Rarely
8D. I know the environmental
reputation o the companies that
produce my products...
8E. I drive this kind o car... 8F. Given a choice, I preer this type o
transportation...
8G. I preer to drink this type o water
most oten...
Oten Hybrid car Walk Tap water/ltered water
Occasionally Economical car Bike Bottled water
Rarely Typical car Carpool
SUV/truck Public transportation
Dont own a car Drive
8H. I buy this type o produce
most oten...
8I. I use this type o bag most
oten...
8J. I belong to and actively
participate in a group that
supports environmental issues
8K. I shop at retailers that
make a conscious eort to
improve the environmental
impact o their stores
(i.e. Solar panels):
9. Do you know what a
green product is?
Organic Paper bags Yes Oten Yes
Conventional Reusable bags No, but would consider joining one Occcasionally No
Locally grown/produced Plastic bags No Rarely Sometimes
All o the above I dont know
Please reer to Appendix C to see examples o green products
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24 Finding the green in todays shoppers Sustainability trends and new shopper insights
Note: The ollowing was provided to shoppers to ollow along as the interviewer conducted the interview. As noted, depending on the response, some questions are skipped
10. Did you see any o these types o
green products clearly displayed or
identifed in the store?
11. Did you buy any o these green
products? Check all the categories
that apply.
11A. Why did you not buy a green
product today?
12. Why did you decide to purchase
these green products?
(Choose all that apply)
Yes Everyday Grocery Items Unsure what is considered green Competitive price
No Health and Beauty Unsure o the quality o the producst Reputation/brand
Did not notice Apparel Unsure o product perormance Value
Produce Product is not convenient to use Quality
Cleaning and household Green products are too expensive Sale/promotion
Pet products Question the green movement Environmental
Meat/sh/poultry I did not need one Other
Paper products Store did not carry it
Electronics/appliances Go to question 14
Did not buy green product, go to 11A
12A. Did you buy the products
specifcally because o its green
characteristics?
12B. For a green product, would you
pay
12C. Did you switch to this product
because it was green?
12D. Will the green products be
primarily used by:
Yes More Yes You
No (Go to question 13) Less No Your amily
About the same Someone else (i.e. git)
12E. How did you identiy the products
as green? (Choose all that apply)
13. What green product attributes are
most important to you?
(Choose all that apply)
14. Would any o the ollowing changes
encourage you to purchase green
products? (Choose all that apply)
15. For your shopping trip today, did
you buy more products in general
than you expected?
Research Waste reduction Competitive price More
Company websites Recyclable Increased availability Less
Brand advertising Energy ecient Clearly identiable as green About the same
Special section or green products Conserves water Incentive programs (points, etc.)
Signage in store Locally grown/produced Donations to charities
Packaging/label Biodegradable Trial oers
Sustainable agriculture Would not purchase green products
16. Will you shop here more or less
oten?
17. Based on your shopping experience
today, did your perception o the
retailer change?
18. Do you eel this retailer is more or
less dedicated to going green than
its competitors?
18A. Why do you eel this retailer is
more dedicated to going green
than its competitors?
More Enhanced your perception More (Go to question 18A) More products/better selection
Less No change in your perception Less Careully selected items
About the same Decreased in your perception About the same Better advertising
I dont know Incentive programs
19. What age range do you all under? 20. What is the highest level o
education you have completed?
21. What household income range do
you all under?
22. What best describes your current
household status?
18-24 High school/GED Less than $30,000 Single with no kids
25-36 Some college $30,000 - $50,000 Household, no kids
37-45 4 year college $50,001 - $70,000 Household, 1-2 kids
46-55 Graduate degree $70,001 - $100,000 Household, 3 or more kids
55 and over Decline to answer Over $100,000 Household, empty nest
Decline to answer Decline to answer Decline to answer
Please reer to Appendix C to see examples o green products
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25Finding the green in todays shoppers Sustainability trends and new shopper insights
Appendix B: Green lifestyle behavioral test
How well do these following statements describe you?
A) I separate my trash at home or recycling
a) Oten (2)
b) Occasionally (1)
c) Rarely (0)
B) I turn o lights when I leave a room
a) Oten (2)
b) Occasionally (1)
c) Rarely (0)
C) I use energy efcient light bulbs
a) Oten (4)
b) Occasionally (2)
c) Rarely (0)
D) I know the environmental reputation o the
companies that produce my products
a) Oten (8)
b) Occasionally (4)
c) Rarely (0)
E) What kind o car do you drive?
a) Hybrid car (8)
b) Economical car (4)
c) Typical car (2)
d) SUV/ truck (1)
e) Dont own a car (4)
F) Given a choice, my preerence or transportation is
a) Walk (6)
b) Bike (6)
c) Carpool (3)
d) Public transportation (3)
e) I do not use other types o transportation (0)
G) What kind o water do you drink?
a) Tap water/ Filtered (2)
b) Bottled water (1)
H) I buy produce that is
a) Organic (4)
b) Conventional (1)
c) Locally grown/ produced (6)
d) All o the above (4)
I) I use
a) Paper bags (3)
b) Reusable bags (6)
c) Plastic bags (1)
J) I belong to and actively participate in a group that
supports environmental issues
a) Yes (6)
b) No but would consider joining one (2)
c) No (0)
K) I shop at retailers that make a conscious eort to
improve the environmental impact o their stores (i.e.,
solar panels):
a) Oten (4)
b) Occasionally (2)
c) Rarely (1)d) I dont know (0)
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26 Finding the green in todays shoppers Sustainability trends and new shopper insights
Appendix C: Sample green products
Low waterusage
Reducedpackaging
Organic/locally grown
Fair trade Energyefficient
BiodegradableNon toxic and low
volatile organiccompounds
Recyclable(materials and
content)
Everyday grocery items
Organic foods
Fair trade coffee
Reduced packaging soups
Ecofriendly plastic bottles
Produce
Organic carrots
Locally grown tomatoes
Biodiversity of vegetables
Meat/fish/poultry
Cage-free eggs
Free range chicken
Wild caught seafood
Characteristics of Green products
Examples of Green products for each category
Health and beauty
Non toxic hair spray
No animal testing lipstick
Recyclable Razors
Cleaning and household
Concentrated laundry detergent
Non toxic all purpose cleaner
Biodegradable cleaning spray bottle
Natural cleaning product/solution
Paper products
Recyclable paper plates
Paper towels made fromrecyclable materials
Biodegradable toilet paper
Apparel
Organic cotton skirt
Fair trade produced shirt
Natural fibers shirt
Pet products
Biodegradable cat litter
Recyclable regrind for pet toys
Corrugated cardboard packaging
Electronics/appliances
High efficiency washer/dryer
Energy efficient light bulbs
Energy efficient battery chargers
Low water usage appliances
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For more information
AuthorsScott Bearse
Director
Sustainability Service Line Leader, Retail
Deloitte Consulting LLP
617.437.2453
Peter Capozucca
Principal
Sustainability Service Line Leader, Consumer Products
Deloitte Consulting LLP
203.708.4382
Laura Favret
Manager
Deloitte Consulting LLP
617.437.3372
Brian LynchDirector, Sales & Sales Promotion/Industry Aairs
Grocery Manuacturers Association
202.295.3976
Contributors
Matt Dacey
Deloitte Consulting LLP
Shirin Ghadessey
Deloitte Consulting LLP
Jenny Wang
Deloitte Consulting LLP
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About GMAThe Grocery Manuacturers Association (GMA) represents the worlds leading ood, beverage and consumer products companies. Theassociation promotes sound public policy, champions initiatives that increase productivity and growth and helps to protect the saety and securityo the ood supply through scientic excellence. The GMA board o directors is comprised o chie executive ocers rom the associationsmember companies. The $2.1 trillion ood, beverage and consumer packaged goods industry employs 14 million workers, and contributes over$1 trillion in added value to the nations economy.
Copyright 2009 Grocery Manuacturers Association. All rights reserved.
About DeloitteDeloitte reers to one or more o Deloitte Touche Tohmatsu, a Swiss Verein, and its network o member rms, each o which is a legally separateand independent entity. Please see www.deloitte.com/about or a detailed description o the legal structure o Deloitte Touche Tohmatsu and itsmember rms. Please see www.deloitte.com/us/about or a detailed description o the legal structure o Deloitte LLP and its subsidiaries.