creating consumer demand for american hardwoods
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Creating Consumer Demand for American Hardwoods
Creating Consumer Demand: Two Parallel Industry Efforts
1. American Hardwoods Promotion– Coalition of 20+ trade associations and industry leaders– Voluntary funding of Logo/Theme/Promotion Effort
2. Hardwoods Checkoff– Industry proposal to USDA for a Hardwood Industry
Checkoff Program
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American Hardwoods Promotion
1. Research: – Harris Poll – 650+ Consumers/Prosumers
2. Findings – Attitudes toward Hardwoods
3. Develop Logo/Tagline/Messaging that resonates with Consumers
4. Promote the Promotion!!– Engage the hardwood industry & product
manufacturers to spread the word
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7%
24%
69%
Consumers
Consumers
90% of consumers like hardwood as a material, 70% like it a lot.
n=424 (A)
Like it a lot
Like it somewhat
Neither like it nordislike it
Overall Impression of Hardwood
93%
B
BASE: ALL RESPONDENTSQ905. What is your overall impression of hardwood as a material for furniture, flooring, cabinets or building materials?
7%
24%
69%
Prosumers
Prosumers93%
LIKE IT (NET)
n=228 (B)
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Only 10% of Consumers feel Very Informed about Hardwoods
BASE: ALL RESPONDENTSQ900. How well informed would you say you are about hardwood?
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Consumer attitudes about Hardwoods
BASE: ALL RESPONDENTSQ1006. Below are pairs of words that are opposites of each other. For each pair, please indicate which word better describes your perception of hardwood.
Consumers Prosumers Word Pair Consumers Prosumers
n=424 n=228 n=424 n=228
A B A B
100% 99% Reliable Unreliable * 1%
59% 48% Old-fashioned Trendy 41% 52%
86% 87% Fun Boring 14% 13%
100% 99% Genuine Artificial * 1%
93% 99% Warm Cold 7% 1%
97% B 90% Expensive Cheap 3% 10% A
99% 99% Durable Flimsy 1% 1%
88% 79% Traditional Modern 12% 21%
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90% of Consumers say Hardwood inspires pride in the home
1%1%
6%
9%
31%
22%
63%
68%
Consumers
Prosumers
The Attraction of Hardwood - Pride in the Home
Somewhat disagree Strongly disagree Neither agree nordisagree
Somewhat agree Strongly agree
1%
89%
94%
BASE: ALL RESPONDENTSQ1011. How strongly do you agree or disagree with each of the following statements about hardwood?
Hardwood products are attractive and would make me feel proud of my home./Hardwood products are attractive and would make my customers feel proud of their home.
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1%1% 1%9%
4%
40% 35%
50%59%
Consumers Prosumers
The durability of hardwood makes me confident in the choices I make for my
home./The durability of hardwood makes me confident in the
recommendations I make for my customers’ homes.
1%1% 1%8% 6%
32%29%
58% 63%
Consumers Prosumers
Using hardwood in my home makes me feel like I made a good
investment./Using hardwood in their homes makes my customers feel like
they made a good investment.
And agree that hardwood is a good investment
(A) (B)
TOTAL AGREE 94%90%
The Value of Hardwood
91% 92%
2%
TOTAL DISAGREE
2%
(A) (B)
BASE: ALL RESPONDENTSQ1011. How strongly do you agree or disagree with each of the following statements about hardwood?
1% 1%
Strongly Agree
Somewhat Agree
Neither Agree nor Disagree
Somewhat DisagreeStrongly Disagree
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A great message, no one telling it– Hardwood is BEAUTIFUL, NATURAL, SUSTAINABLE– Consumers are confused by competing materials
(laminates, bamboo/the Ikea mind-set)
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Only 10% consider themselves very informed.
Research shows that 90% of consumers agree that hardwood products are attractive and inspire pride in the home.
Manufacturers can help tell our story!•OEMs understand the benefits and are eager to talk to
the advantages of American Hardwoods – Capture % of manufacturers’ existing marketing spend– We have the platform and a message that can help them sell
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On average, flooring industry spent
$425 million in retail brand and consumer
advertising in 2009
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Public Relations Plan– Encourage adoption and use of messaging
across industry platforms
– HardwoodsInfo.com,
– Trade media outreach
– Speakers bureau
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Pantone Solid Color•Pantone 390•Pantone 350•Pantone 209
Strategic PositioningUmbrella
CoreMessaging Platforms
Natural Beauty Enduring ValueThere is no substitute
for American Hardwoods
• For warmth, value, longevity and durability in the home, American Hardwoods are the only natural, non-manufactured choice
• Made in America
• It’s the premium choice available at multiple price points to fit any budget
• American Hardwoods are renewable and sustainable
American Hardwoods are abundant, renewable and self-regenerating
American Hardwoods are naturally prolific – nearly twice as much hardwood grows each year as is harvested
American Hardwoods are responsibly managed – the predominant harvesting method is single-tree
Harvested in America – less energy and cost to transport, unlike imported product
Virtually every part of the log is used for lumber or by-product
• You can have it all with American Hardwoods
Lasting value Flexibility Durability Longevity Rich, quality look Natural resource
• American Hardwoods are the foundation of the home; have been used for centuries in flooring, cabinetry and furniture for their lasting value. Products made with American Hardwoods
span generations, making them more cost-effective over their lifecycle than other materials
• The looks are timelessAmerican Hardwoods can be refinished and
re-stained, even after being passed from generation to generation, to meet changing design styles and to repair any nicks or scratches
• In a study conducted by the NWFA, 99% of U.S. real estate agents asserted that homes with hardwood flooring are easier to sell; 90% said homes sell for more money—up to 10% more, in fact
• A safe recommendation for prosumers that results in happy customers 90% of consumers and prosumers agree that
hardwood is a good investment and that its durability makes it a good, confident choice for the home*
80% of prosumers agree customers who use hardwood tend to be happy with their decision and feel they got the most out of their investment*
• 85% of consumers and prosumers feel that hardwood is synonymous with quality and durability*
Treasured for Generations
*Based on quantitative research conducted in January 2011 by Harris Interactive
SampleSupportPoints
• American Hardwoods are the only natural product that offers both quality and durability
• Brings the beauty of nature into the homeNot inspired by nature, it is nature
• Beauty cannot be replicated in substitutesWood grains make each product uniqueAmerican Hardwoods are available in a
variety of species and lumber grades, providing different colors, patterns and character
• Unmatched design flexibilityDifferent species offer different looks to
meet any customer décorOffers the ability to create a traditional OR
modern/trendy look Available at various price points to meet
any customer budget
• 95% of consumers and prosumers enjoy the natural look of hardwood, and agree that the natural beauty of hardwood makes a home feel warm and comfortable*
• 90% of consumers and prosumers agree that hardwood products are attractive and would inspire pride in the home*
• 93% of consumers and prosumers like hardwood as a material for furniture, flooring, cabinets or building materials, nearly 70% like it a lot*
For internal Use Only
Promotion
Education
Research
Hardwood CheckoffWould Generate Funding For:
Industry approved fee on it’s own product
USDA Program / USDA Oversight
Board of Managers directs Spending on Promotion and Research.
Board is Industry nominated, USDA selected
What is a Check-Off?
Hardwood Checkoff
Checkoff ProvidesFairness – captures fee on lumber & panel sales – clear fee structureFlexibility – allows adaptation to changing circumstancesExperience – learn from other agricultural sectorsDurability – longevity to make a difference
Hardwood Checkoff
Jim Howard (Co-Chair), Atlanta Hardwood Corp. Ted Rossi (Co-Chair), Rossi Lumber Nancy Arend, Northwest Hardwoods Victor Barringer, Coastal Lumber Chris Bingaman, Bingaman & Son Lumber, Inc. Bill Buchanan, Buchanan Hardwoods John Crites, Allegheny Wood Products Don Finkell, Anderson Hardwood Floors, Inc Jamey French, Northland Forest Products, Inc. Pem Jenkins, Turn Bull Lumber Jeff Meyer, Baillie Lumber Co., Inc. Jack Shannon, The Shannon Group Brad Thompson, Columbia Forest Products Chris Zinkhan, The Forestland Group LLC
Hardwood CheckoffIndustry Organizing Committee
ProcessCommittee works with USDA,drafts order60-Day Public Comment period (published in Federal Register)
Companies who pay into program VOTE Majority vote by sales value approvesIndustry nominates board – USDA selectsBoard directs projects and work beginsOther industry segments consideredCheckoff revisited at least every 7 years
Hardwood CheckoffGrowing Future Markets
Timing: Now: Order is drafted, submitted to USDA
Next: USDA reviews – may change?? Comment period – this year?? Vote – likely late 2011 or 2012 Q1-2
Who will it include:Hardwood lumber and Plywood producers
Hardwood CheckoffGrowing Future Demand
Funding PlanSawmillsFacilities with over $2 million in sales
$1 for every $1,000 in lumber sales
Hardwood CheckoffGrowing Future Demand
Sawmill exampleCompany Sales Fee
Joe’s Sawmill $1.75m $0Carl’s Sawmill $8M $8,000Bob’s Sawmill $15m $15,000
Hardwood CheckoffGrowing Future Demand
Funding PlanHardwood PlywoodProducers over 10 million square feet
$3 per $1,000 sales
Hardwood CheckoffGrowing Future Demand
Projected Revenue
Hardwood CheckoffGrowing Future Demand
Sawmills-Green $3.5 mil.
Sawmills-KD $2.5 mil.
Yards & value added $1.5 mil.
Hardwood plywood $3.0 mil.
TOTAL $10.5 mil.
Commodity Checkoffs Established Yearly revenue
Cotton 1966 $66 millionPotatoes 1972 $20 millionEggs 1976 $21 millionPork 1986 $65 millionBeef 1986 $80 millionHoney 1987 $3.8 millionWatermelons 1990 $1.6 millionSoybeans 1991 $90 millionMilk 1993 $281 millionMushrooms 1993 $2.6 millionPopcorn 1997 $1.5 millionPeanuts 1999 $6 millionAvocados 2002 $24 millionLamb 2002 $2.3 million
Checkoff’s PotentialFor the Hardwood Industry?
Hardwood CheckoffGrowing Future Markets
Hardwood CheckoffGrowing Future Demand
Cotton Inc. has estimated a return of $8 for every $1 of investment
Hardwood CheckoffGrowing Future Demand
Dairy Inc. reports the per capita consumption of all dairy products increased 16% from 1983 to 2008
Hardwood CheckoffGrowing Future Markets
Potato Board estimates $4.74 return for every $1 invested
Hardwood CheckoffGrowing Future Markets
Hardwood CheckoffGrowing Future Markets
Questions?
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