In 2008 Americans saw many historical moments. The price of oil skyrocketed and nearly $5/gallon gasoline prices pushed many consumers to change their daily routines. October brought the worst financial crisis since the Great Depression, and November followed quickly with an historic election but more economic trouble. Consumers’ emotions have shifted wildly from fear and anxiety to hope for a brighter future.
Through it all, concerns about environmental, social, and health issues were out of the brightest of spotlights, but not far out of consumers’ minds. While tightening the financial belt put a damper on some consumers’ ability to pay for some LOHAS products and services, many consumers realized that being green does not necessarily come with a price premium.
The results of this survey show that consumers remain very enthusiastic about sustainable lifestyles and products, and are finding their “green stride.” Many behaviors are up significantly, and usage of most LOHAS products has also jumped to the highest levels NMI has ever recorded.
With respect to CSR, there is growing trust of companies, though a very sizable gap remains between where consumers would like to see companies' performance and where they are today. There remains a significant opportunity (and, in fact, in consumers’ eyes a responsibility) for companies to improve the relevance and inspiration of their CSR campaigns. While some companies are shining examples of what to do, most campaigns seem far-removed from consumers’ day-to-day lives.
2008 also brought a range of new LOHAS products and communications strategies to the marketplace:
Clorox’s Green Works made a huge splash in the first quarter.
SC Johnson battled Clorox with a corporate social responsibility campaign centered on its use of landfill gas and highlighting its “Green List” of approved chemicals with reduced toxicity.
Sun Chips repositioned its brand based on installing a solar array on one of its manufacturing plants, claiming that Sun Chips are “made with the help of the sun.”
Proctor & Gamble’s corporate social responsibility campaign launched in Quarter 2, tying purchase of its brands to donations of those same products to needy communities based primarily in Africa.
Also in the second quarter, Avis increased its lineup of hybrids; now 1,500 hybrids are part of its fleet.
Arm & Hammer’s Essentials came in Quarter 3, blending “more natural” ingredients and a refillable container.
In Quarter 4, Nike released its latest Considered Design products, which are designed with a life cycle impact in mind, providing an example of how the apparel industry is engaging sustainability.
IKEA also announced plans in Quarter 4 to source 30% of its wood from FSC-certified sources in the next few years.
Chrysler, however, pulled its hybrids in Quarter 4, claiming that SUVs are not as popular as they once were. And, growth in usage of organics was stagnant as consumers began to pinch pennies. So, what is the magical marketing mix that makes for a successful LOHAS product?
The answer is the perfect blend of understanding your target consumers’ concerns - both LOHAS-related and mainstream - and developing a product or service that delivers that to them seamlessly. Since each consumer approaches sustainability somewhat uniquely, not all sustainable products will resonate with all consumers. Consumers’ nuances and defining characteristics are explored throughout this report.
Report Methodology
This 150+-page report is based on research that was fielded in July 2008 via a primary consumer survey of 4,033 U.S. general population (GP) adults. The results of this survey are nationally projectable to the U.S. adult population and statistically valid at the 95% confidence level +/- 2%. The data have been post-weighted to match multiple U.S. Census demographic measures.
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