Packaging Sustainability: Does sustainable packaging increase sales?

Transcription

1 All rights reserved MMR Research Worldwide Ltd Packaging Sustainability: Does sustainable packaging increase sales? Stergios Bititsios, Head of Packaging & Design

2 Sustainability: awareness isn t knowledge Understanding what consumers truly mean Aligning CSR with real consumer needs

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4 We are becoming more and more aware

5 But do we really know?

6 sustainability is a notion that spans the entire packaging life-cycle

7 but consumers are only partially aware

8 and they demand convenience, superior functionality, good value for money and emotional reassurance

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10 pride happiness Laddering here: in face to face interviews consumers always refer to recyclability but when attractive they do self-report soft surveys, results reveal recyclability is not a purchase driver..etc. premium elegant convenient sturdy comfort recyclable preserves well Recyclability and eco-friendliness always come up in face to face interviews, but carton plastic glass aluminium

11 Prioritising Attributes: Kano model of customer satisfaction ATTRACTIVE Attributes..added value not expected and therefore are not missed. But these attributes delight when met. INDIFFERENT Attributes..not important they do not affect satisfaction and liking ONE DIMENSIONAL Attributes..the more, the better. Consumer satisfaction levels will increase according to the degree that these attributes are met. MUST HAVE Attributes..a necessary prerequisite that must be fulfilled. Basic attributes that will cause dissatisfaction if not met. Reverse attributes are a subset of must be and are those who must be avoided.

12 Prioritising Attributes: Kano model of customer satisfaction

13 Claims Hierarchy How do consumers rate environmental attributes? 13 selected claims for crisps and yoghurt Great tasting Made with British ingredients Low in fat Fresher for longer Authentic flavours Environmentally friendly packaging Recyclable packaging Fairtrade Natural ingredients Supports the local community Organic Less packaging Bio-degradable packaging Committed to sustainability Low food miles Less waste GM Free

14 Claims Hierarchy 14 We measured: Claim Relevance Claim Appeal Purchase Intent Willingness to pay more

15 Appeal If consumers believe the claim is relevant to them, they find it more appealing Overall Claim Appeal vs. Claim Relevance 9 8 environmentally friendly packaging less packaging 7 6 committed to sustainability recyclable packaging 5 biodegradable packaging 4 Correlation Coefficient = Relevance

16 Purchase Intent Consumers who find the claims more appealing are more likely to purchase the product 16 5 Purchase Intent vs. Overall Claim Appeal 4 environmentally friendly packaging less packaging committed to sustainability 3 biodegradable packaging Appeal recyclable packaging Correlation Coefficient = 0.99

17 Willingness to pay more If consumers believe they are likely to buy the product, they are also willing to pay more 17 4 Willingness to pay more vs. Purchase Intent 3 committed to sustainability biodegradable packaging recyclable packaging 2 less packaging Purchase Intent Correlation Coefficient = 0.97

18 Appeal Appeal If consumers believe the claim is relevant to them, they find it more appealing Overall Claim Appeal vs. Claim Relevance 9 8 environmentally friendly packaging less packaging 7 6 committed to sustainability recyclable packaging 5 biodegradable packaging 4 Correlation Coefficient = Relevance

19 Purchase Intent Consumers who find the claims more appealing are more likely to purchase the product 19 5 Purchase Intent vs. Overall Claim Appeal PI 4 less packaging environmentally friendly packaging 3 biodegradable packaging recyclable packaging Correlation Coefficient = Appeal

20 Willingness to pay more If consumers believe they are likely to buy the product, they are also willing to pay more 20 5 Willingness to pay more vs. Purchase Intent 4 3 recyclable packaging Correlation Coefficient = Purchase Intent

21 mainstream natural premium mainstream healthy natural

22 Each brand has certain claims that are seen as more suitable 22 least suitable most suitable Significantly less suitable least suitable most suitable Significantly less suitable least suitable most suitable

23 Each brand has certain claims that are seen as more suitable 23 least suitable most suitable Significantly less suitable least suitable most suitable More suitable but not significantly least suitable most suitable

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25 As our research demonstrates, consumers are not yet prepared to trade other values and benefits off for greener packaging. But does that mean that companies should put a halt to their responsibility? Of course not. What we recommend is that instead, manufacturers seek smarter ways of utilising the merits of sustainability to cater for both corporate social responsibility and consumer needs in equal measure. To reverse the old good adage, sometimes more is less; if using less packaging for example results in creating negative consumer experiences, mess, product waste, disappointment and brand damage, then it s a case of good cause negating the true purpose of packaging.

26 Why consumer preference shouldn t be overlooked

27 REWARD

28 Duality of Reward Reward is more complex than this! To understand human choice behaviour we need to appreciate that reward is in fact driven in two ways: IMMEDIATE SATISFACTION / PLEASURE Measured via liking (traditional research) REWARD EMOTIONAL SATISFACTION (Immediate or longer-term)

29 MMR MMR Research Research Worldwide. All All rights rights reserved. Appearance Physical Packaging Texture Sound Aroma Flavour

30 Convenience: packaging milk in bags may be good to the environment but it causes a lot of inconvenience, mess and disappointment Premiumness: Lightweigthing the packaging of a premium product may harm the brand as consumers tend to associate heavier substrates with high quality

31 MMR Research MMR Research Worldwide. Worldwide. All rights All rights reserved. reserved. How would you go about opening that door?

32 MMR Research MMR Research Worldwide. Worldwide. All rights All rights reserved. reserved. Think how many times you instinctively pulled instead of pushing

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35 Dissonance between product and pack

36 Sustainability A new additional design requirement for packaging. Why treat it differently to other requirements?

37 Sustainable Modernisation: Modernising packaging whilst retaining key historical equities and at the same time using more sustainable materials Balancing CSR with Consumer Needs & Brand Equities Sustainability Innovation: Sustainability implemented methodically, with patience and in line with the brand s essence and consumers needs

38 Which one truly stands out?

39 structural identity lightweight stands out on shelf looks nice at home easy to carry comfortable to hold makes pouring easy easy to dispose of better value for money Above all it s sustainable not just recyclable

40 MMR Research Worldwide 40 Established 1989 $32m+ turnover 130+ team Europe USA Asia Our unique broad range of skills and expertise. Senior involvement throughout projects. Innovative and creative, grounded in science. Consultative partnership approach with our clients to create business change. Flexible partnership model for global fieldwork, high quality rostered suppliers across over 70 global markets. High level of quality control measures and procedures in place.

41 Visit us at STAND G49 Thank you! For more information please contact Stergios Bititsios