Leveraging what buyers care about to move the market forwardAugust 7, 2012

Changing the game for biobased:

We help companies define and leverage their sustainability commitment to gain a market advantage.

Our Clients – We Know Sustainability

Level settingThe market opportunity

2009

2010

2011

In which product categories are you searching for greener products?

70.8% 60.7% 59.2% 58.0% 46.5% 46.0%Light

bulbs/fixtures

Home cleaning

Laundry/dishwashin

g

Paper Food/beverages

Personal care

How do you know that a product is green?

48.8% 39.7% 31.0% 25.0% 22.8%Ingredients,

content, energy

savings details

Label says so

Company has green reputation

Certified by 3rd party

Advertising says so

27.0%Researched on the internet

Activities that enhance your corporate environmental reputation:

21.8% 21.5% 18.2% 17.1% 16.9% 15.8%Manufactur

e in the U.S.

Recycle Make recyclable products

Remove chemicals of concern

Make all-natural

products

Create no chemical

waste

The best thing to read about a product’s packaging

27.7% 17.4% 14.7% 6.9% 5.9%Recyclable Biodegradabl

eMade ofrecycled content

Don’t know 30% less packaging

8.4%Made from renewable resources

So why aren’t products labeled biobased flying off the shelves?

Compared to other claims, the market doesn’t “get” the value

proposition

Laundry Detergent Product Attributes

Brand Tide®

Arm & Hammer®

Seventh Generation®

Water conservation Low-water (HE) formulaTraditional (non-HE) formula

Price 150 oz./96 loads for $7.97150 oz./96 loads for $12.99150 oz./96 loads for $17.97

Formula Stain-fighting formulaCold water formulaBiodegradable formulaPlant-based formula

Sensitivity Free of perfumesFresh, clean scentFree of dyes and brighteners

Packaging Traditional, plastic bottleBiobased, non-petroleum bottleBottle-made with 50% post-consumer recycled content2x concentrated formula in a smaller bottle

Green Pea Product Attributes

Brand Green Giant®

Birds Eye®

Cascadian Farm®

Production Traditionally grownGrown from non-genetically modified seeds/plants (no GMOs)USDA Certified OrganicProduced with no pesticides or chemical fertilizers

Source Produced in the USAProduced in ChinaProduced in Chile

Price $1.00$1.30$1.60

Packaging Plastic microwave steamer bagTraditional coated paperboard packagePaperboard package made with 30-percent post-consumer recycled fiberBiobased, non-petroleum plastic packaging

So how can you help the market see the value

proposition and leverage the affinity for biobased?

A Case Study

Initial Request:We must get Americans to understand the vital

importance of water conservation.

To create real behavior change we must:• Move people from automatic behaviors to

conscious choices• Make the problem visual• Make the problem uncomfortable• Give them a specific, simple action step

Aha!Wake people up to the moment when using water becomes wasting water.

121 markets290 stations

432 million impressions

29% who saw it said it moved them to change

their water usage habits.

Lessons Learned

You don’t have to go it alone.

You can make a bigger impact together.

You can take greater creative

risks.

Takeaways

Don’t try to scare the market into buying

Don’t try to educate the market into buying

Connect them to the real, underlying benefits of biobased they actually care

about

To create real behavior change you must:• Move people from automatic behaviors to

conscious choices• Make the problem visual• Make the problem uncomfortable (in a light way)• Give them a specific, simple action step

Together, you can drive demand for biobased products

Discussion

Thank you!Suzanne Shelton

865.524.8385sshelton@sheltongrp.com