BLUE Sustainability Segmentation

Brand Activation

June 16, 2009

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2007 Blue Diamond

Core BluesRegularly buy green

Light BluesSometimes buy green

DisengagedNever buy green

12%

68%

Pure BluesOnly buy green*, regardless of efficacy

<1%

19-20%

N=1000 US ADULTS

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N=2200 US ADULTS WITH INTERNET ACCESS

Dark BluesRegularly buy green

Light BluesSometimes buy green

DisengagedNever buy green

27%

54%

Core BluesAlmost always buy green

8%

10-11%

Pure BluesOnly buy green,regardless of efficacy

<1%2009 Blue Diamond

2007 2009

12%

27%

54%

8%

11%

<1%

68%

19%

Light Blues

Dark Blues

Core Blues

Disengaged

Pure Blues <1%Pure Blues

Core Blues

Light Blues

Disengaged

The “sustainable mainstream” has grown from 68% to 81% since 2007.

So who are they?

Disengaged

Light Blues

Dark Blues

Core Blues

Pure Blues

Let’s start with the sustainable mainstreamDark Blues

Regularly buy green

Light BluesSometimes buy green

Core BluesAlmost always buy green

My Lifestyle is Blue

Views sustainability as part of her identity

Dreams of a world where she can ALWAYS buy sustainable products

Believes she is leveraging consumerism to participate in a larger cause

Incorporates sustainable products into her life at all levels, from asparagus to shampoo to solar panels

My Actions Are Blue …for Me, My Family, My Community and the Planet

Possesses confidence and pride around her depth of knowledge and engagement in the world of sustainability

Sees the regular purchase of green products as taking better care of her family

Understands the environmental impact of some of her actions and teaches her children about it

Considers herself a spokesperson for the mission of sustainability

The Health and Wellbeing of My Family Comes First

Believes in Climate Change and is intrigued by “going-green”

Isn’t often familiar with the term “sustainability”

Has purchased the “low hanging fruit” like green cleaners, compact fluorescent light bulbs

Needs to encounter green products at her regular retailer at an affordable price

Sees sustainability as shrouded in mystery, and doesn’t think she’ll ever understand

Dark Blues

Light Blues

Core Blues

I am deeply committed to a

sustainable lifestyle and almost always purchase

green products whenever possible

My lifestyle is BLUE

Core Blues

Core Blues

Women

Age 35 - 54

Liberal or very liberal

Highest % with grad school*

61%

54%

10

Identifies with healthy

living

Influences her communityHer Beliefs and Values

as a Human Being

Sustainability is part of her identity

Sees few barriers to behaving ‘green’

Core Blues

Core Blues

Driven by her values when she shops

When shopping green, a company’s values and environmental commitment are more important than price and long-run savings

She is less skeptical about the environmental claims companies make about their products than the Dark Blues or Light Blues

She buys exclusively products she trusts, and has no reason do doubt their transparency

Her Beliefs and Values as a Consumer

Core Blue Behaviors…

13

Dark Blues

I actively and conscientiously

participate in the sustainability movement by regularly purchasing

green products

My actions are BLUE

…for me, my community, and

the planet

14

Dark Blues

Women

No skew for age

Highest % of college grads*

Skews Married 54%

57%

Politically moderate to liberal

15

Healthy living is a core value

Volunteers in her

community

Concerned about the

economy and the

environment

Her Beliefs and Values as a Human Being

Dark Blues

16

Making purchase decisions is how she expresses her values. But she must balance ideals with convenience when she shops.

When buying green, a company’s values and environmental commitment are more important than price and long-run savings.

Segment most skeptical about companies’ “green” claims. She is on the watch for ‘greenwashing’ and seeks answers on the internet.

Dark Blues

Her Beliefs and Values as a Consumer

Dark Blue attitudes and behaviors….

18

Light Blues

I have some interest in ‘going green’ and I

sometimes purchase green products

The health and wellbeing of my

family comes FIRST

19

Light Blues

No skew for gender

Younger: under 34

Highest % with no college

Highest % with children living at home

Skews unmarried

38%

54%

20

Strives for a healthy lifestyle

through diet and exercise

Believes she has a

relatively small ‘sphere of influence’ - about the size of her family

Her Beliefs and Values as a Human Being

Light Blues

Her family comes first

Her Beliefs and Values as a Consumer

Light Blues

May have tried to buy local, but it’s probably not a viable every day solution due to time, money and location

Will not go out of her way to purchase green products; she isn’t engaged deeply enough with the cause to compromise on time and energy

Looks to Core Blue-focused brands for guidance on trends to follow

Light Blue attitudes and behaviors….

23

But what about…

Light Blues

Dark Blues

Pure Blues

Disengaged

Core Blues

…the fringe segments

Pure BluesOnly buy green,regardless of efficacy

DisengagedNever buy green

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I am sustainability

Pure Blues

He is sustainability and his role in life is to save the planet—it’s his life’s mission

He is important because Pure Blues are the innovators, the NGOs and the gatekeepers of the perceived truth

Has dedicated his career to saving and changing the planet

Does not commute—he lives close to where he works so he can ride a bike or walk

If he has a car, it runs on bio diesel he makes himself

Grows his own food or belongs to a community garden

Can be as young as college grads and as old as the “hippie generation”

Examples of Pure Blue Characteristics:

DisengagedI am intentionally not a part of sustainability and really never buy

green products

Found at all age groups

High representation of Caucasian, African American

“Not really concerned” with issues such as the environment and social wellbeing

No less likely to be familiar with the term “sustainability” than Dark or Light Blues (48% vs. 58%); It’s a matter of opinion, politics or priority, not education or awareness

Not skeptical about companies’ green claims

Trusts companies and governments to make decisions for him

Important because his values will diminish in the marketplace as the population grows into sustainability

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Methodology

In 2007, Saatchi & Saatchi S created a model we call the “Blue Diamond” to segment values and behaviors across the spectrum of sustainability in the US:

• We used the 2006 Mintel Green Living Report to identify the segments and their population sizes based on one simple question: Do you regularly, sometimes or never try to buy green products when available?

• In order to understand who our sustainability segments are, we overlaid additional third party segmented research including the Hartman Group Sustainability Report, Roper Green Gauge Study, BBMG Conscious Consumer Study, Saatchi & Saatchi X Sustainability Shopping Study as well as data from Natural Marketing Institute and other various sources.

• In addition to the Core Blues, we carved out <1% of the population we defined as “Pure Blues,” a segment deeply steeped in BLUE that should be called out as it’s own segment with different values and behaviors.

All of this data has been refreshed for 2009.

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A Refresh for 2009

Using the recently released 2009 reports from Mintel and Hartman, alongside additional 3rd party research from 2008/2009, we refreshed our model to more accurately reflect shifts in the sustainability consumer landscape since 2006/2007.

The data coming out of these two studies, which were conducted at the end of 2008, showed some significant changes that are reflected in the updated Blue Diamond:

• The Mintel study added a fourth response, “Almost Always Buy Green,” which allowed us to further segment the Blue Diamond

• Hartman further subdivided Light Blues, providing insight into attitudes and behaviors at each end of the Light Blue spectrum

• Both Mintel and Hartman showed an marked increase in affinity for green and green purchasing between 2006/2007 and 2008/2009

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Works Cited• BBMG Conscious Consumer Report, 2007

• The Hartman Group Sustainability Report, 2009

• The Hartman Group Sustainability Report, 2007

• Mintel Green Living Report, 2009

• Mintel Green Living Report, 2006

• Natural Marketing Institute Lifestyles of Health and Sustainability Trends Database 2008 (Environmental Leader)

• Roper Green Gauge Study 2009

• Saatchi & Saatchi X Sustainability Shopper Study

• Wal-Mart Sustainability, Power Category Study

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Media ConsumptionCore Blues

Most likely to frequently purchase green products through the internet (23%)

1

Consults a variety of information sources for insight on the ingredients, packaging and manufacturing of a given product, and uses this knowledge as the primary barrier or motivation for purchase 2

Pre-teens are a vocal influencer group, especially in their relationship to their parents’ purchase decisions 2

Light Blues

Educates herself passively through TV 4

– Not an active searcher and learner when it comes to sustainability

Dark Blues

She is an influencer 1

– Both online and in her social network

More likely to be engaged and active in online communities like Facebook and MySpace 4

Relies on expert opinions from many sources in her purchasing decisions 2

– When in doubt she looks to Pure Blue media such as Gaiam or Treehugger as a trusted source on sustainability questions