consumer attitudes to organic 2008 fdin 14th may 2008
TRANSCRIPT
Consumer attitudes to Organic 2008
FDIN
14th May 2008
• What we told you in 2006
• Lessons from other movements
• The Trinity
• Organic in a recession
• What could brands do?
• What could certification bodies do?
contents
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Methodology
• Previous research and experience working on ethical and responsible branding challenges for a range of clients.
• 12 groups in 2007/2008 looking at Sustainability, Fairtrade and Organic
Research and application experience
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What we said in 2006
• Taste comes a consistent but important runner up to the health messages
• Understanding of definition was broad and sound
“no chemicals” as opposed to “the product has to be x% organic ingredients”
• Moving from niche to mainstream
• Moving from keeping bad things out to putting good things in
Strong and growing
How have things changed?
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Better for me,for my family
ORGANIC
Makes melook good
Produced theright way
Better taste
Better for theenvironment
Expensive
New varietiesQuality
standard
Doing my bit
Organic, what else does it mean?
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• The organic offering has expanded across multiple categories and brands
• The shopping experience is not a separate activity for loyalists but something that every consumer is exposed to at each shelf.
• Shopping experience is much more integrated and there is far more choice
“its now more integrated, you can find next to the normal stuff”
Become more mainstream
Increasingly mainstream
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Organic and quality
• Consistent link between ethical, sustainable, organic and notions of quality
• Expectations of organic brands are consequently higher
• Trust and reassurance is a good foundation to build from
A trusted standard
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Shift in positioning
• Organic on its own is no longer enough
• As more products appear greater differentiation is required
• Brand propositions need to evolve to deliver greater more meaningful benefits to consumers
• Taste, health and lifestyle all offer opportunities for brands to “up their game” and move beyond a technical certification
Higher order benefits
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Seeds of change
Proposition evolved to include more benefit for the
consumer
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Level of understanding has remained the same
• Understand the core of the organic proposition and use the short hand “no chemicals or pesticides”
“There is so much cancer, so surely the less chemicals in food the better, especially when we give it to kids”
• Consumers understand that organic is also better for the environment but are generally vague as to why
Similar level of understanding
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The benefits aren’t always clear
“Carrots I buy because they tend to taste better”
“I’m not sure that it all taste much different. I like the feeling that it is better for me but I’m not sure in truth that it tastes better”
“My sister she has 3 children under the age of 3 and she buys organic for them and anything for herself”
“I think the cost makes it a class thing”
“I think I would pay more for ethical than organic because I’m not always convinced that it is organic in its true sense”
Value equation is weakening
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More mainstream brands
• Consumers want brands to make it easier for them to do the right thing
• Consumers are asking for more and more products to be ethical/ organic/ Fairtrade.
Mass adoption
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Big brands have unique challenges
• Consumers are sceptical of large organisations with ‘new’ ethical propositions
“I’m a bit sceptical about how organic is organic”
“There is so much hype at the moment I don’t know how much I believe”
“I have this huge question when I buy organic from a supermarket: every apple is exactly the same size, shape and colour. There must be an awful lot thrown away”
Large brands have to work harder to be accepted
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The Soil Association adds reassurance
“I immediately feel reassured”
“They go on a regular basis to check the soil”
“If anyone breaks the rules they will be struck off!”
“If its labeled organic then the Soil Association logo would be a reassurance”
“They do do what they say”
They authenticate that the soil hasn’t had any pesticides sprayed on it”
Highly trusted mark
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But is not always as visible as it could be
“Its always in health food shops”
“I’m not sure I always see it with a prodict that is deemed to be or labelled organic”
“I’m not sure you do see it on Sainsbury’s organic spinach”
“I’ve always thought the two were hand in hand, my only comment is that it could be bolder”
“You see it more on vegetables, I don’t think you see it on cereals”
• Other organic certification schemes such as Organic Food Federation where not recognised at all
“I’ve never head of it before”
Needs to be more visible on and off pack
Other issues are engaging consumers
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The Trinity
A trio of trusted guides
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Organic and Fairtrade
• Both very useful short hands for navigating the ethical shopping maze
• Fairtrade is much more engaging at a human level and the price premium is more justified
• Organic comes across as technical and cold in comparison
• Not conflicting issues and can be complementary. Organic Fairtrade coffee is seen as more ethical and better quality than just Fairtrade.
Lessons to be learnt, synergies to be formed
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Organic and Local
• Consumers use ‘local’ food as a short hand for taste and quality.
“As much as possible I buy at the local farm shop because I think it makes a big difference to taste”
“Organic does seem to taste different sometimes, where as fresh product from the farm always taste much better”
“The guys at the market are very good, they are the ones who have salted the meat and can practically tell you the name of the pig”
Taste and provenance are very strong
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Lessons to be learnt from local
• Consumers are able to ‘judge’ local on their own terms, they aren’t resorting to trusting a label.
– Use a mutlilevel communication to engage consumers with more of the issues and benefits
• Buying local is a rich and experience
– Tell stories, bring the provenance to life, communicate related benefits
• Local is human
– Inject substance into the brand personality, be real, be human, be engaging, put a face or a name to the brand
Local and organic should be a match made in heaven
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Organic and Red tractor
• Much weaker trust and understanding than the Soil Association Logo.
“The farming standard doesn’t mean anything but organic does”
“All that it tells you is that it is British and comes from a farm, it could be a farm full of chemicals”
“It implies low food miles”
“Its not clear what it appraises”
Organic is more meaningful
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Organic in a recession
• Vulnerable to food inflation
“I think Sainsbury’s organic spinach is only an extra 30p”
“I think as demand increases the supermarkets have got to get it in at the right price”
“Depends on how much it goes up, a lot of people would be affected by the price”
“It’s a big difference when…you have a family with children to feed, you are struggling to pay the mortgage and the bills are going up”
Value equation needs strengthening
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Organic Air?
• Fits with Organics principles but has the risk of adding confusion
“For me airfreight compromises the organic”
“The fact that it is organic is negated by the fact that it is flown 6000 miles”
“I can’t always buy organic products that are grown in this country”
“I don’t know how the soil Association can have control over Kenyan green beans”
Needs to be communicated clearly
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Inspiration from the cutting edge
• Exciting areas in organic recently have been fashion and cosmetics
• Very effective at driving desire and appeal of organic.
• Not a premium offering as both H&M and Gap have organic ranges
• What can we learn from their approach to driving appeal and engagement with a mainstream audience?
Driving appeal
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What could brands do?
• Organic comes with higher expectations. Get the basics right, such as sustainable packaging and clear information
• Evolve positionings on from ‘just’ organic. What is the end benefit to the consumer, how is it relevant to their lives and how does organic support that
• Learn from local. Engage and involve consumers in your story. Leverage provenance and be as engaging and human as possible
More meaningful propositions
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What could certification bodies do?
• Need to do more to raise awareness of the issues
• If expanding the scope of certification, invest in making it crystal clear to consumers.
• Need strong simple clear messaging around the benefits to consumers eg.
– Nutritional value
– Environmental impact
– Taste
Bolder, louder, clearer
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More of this…
• Cornwall Food Program
– Pleasing patients: 92% of patients describe the food as 'very good' or 'excellent'.
– Boosting the local economy: 83% of the Royal Cornwall Hospitals Trust's 2006 food budget was spent with companies based in Cornwall, vs 30% previously.
– Cutting Food Miles: annual food miles were cut by 67%.
– Keeping to budget: all done withing the Royal Cornwall Hospital's budget of £2.50 per day
Great story, multiple benefits. More of these
please
