Archive for the 'Jonathan Asher' Category

Shoppers Want Their Packaging “Green”– But What Does That Really Mean?

Do you love your mother?

The answer to this simple yet loaded question is generally a resounding “yes!” That’s true whether referring to one’s birth mother or Mother Earth. In both cases, most people say they want what’s best for her; but their actions don’t necessarily match their words. Sometimes that’s because it’s simply too hard, other times it’s because they’re not quite sure what to do; or how to do it.

When it comes to “Mother Earth”, we can be of some help – at least with regard to environmentally friendly packaging.

Perception Research Services has been conducting shopper research for the past four years that tracks what shoppers say and do with regard to packaging and the environment. Our latest findings reveal a growing desire to select environmentally friendly packaging, along with increasing frustrations about how to do so.

Last year witnessed a rise in the proportion of shoppers wanting to choose environmentally friendly packaging, and despite the economy, fully half said they are willing to pay more for such packaging. This is especially true of younger shoppers (those under 40).

Importantly, environmental claims on packaging act as meaningful calls to action. Over half of our sample reported that seeing such claims positively impacts their buying behavior.

Fortunately, these types of claims abound. In fact, for the past two years, a majority of shoppers reported seeing more environmental claims when shopping for grocery products.

But, unfortunately, there is evidence that this abundance of messaging may not be providing as much benefit as it could be. Despite so many claims being made, more shoppers stated that:

  • there isn’t enough environmental information
  • they’re confused by all of the different environmental claims
  • they don’t know which package is best for the environment

Of the various claims seen, those having to do with recycling (recyclable, made from recycled material) are both noticed most and have the most impact on buying behavior.  Conversely, the made with less material claim is less influential.

In order to understand more specifically which environmental claims work well on packaging, we conducted a separate study last year assessing eight different claims that exist on various national and regional brands of bottled water.  We evaluated these claims in terms of how meaningful they are to shoppers, as well as how noticeable they are on pack (using PRS Eye-Tracking).

We learned that while “100% recyclable” was the most meaningful message, it was the least noticeable, by far (seen by only 4% of shoppers). None of the claims were seen by more than 30% of shoppers (meaning 70% or more did not see the claims!).

In addition, many of the claims – such as Plant Based, Eco-Shaped and 1% for the planet – were not at all meaningful to shoppers.

Of course, stating that a package is recyclable will only be truly meaningful if shoppers do, in fact, recycle their packaging. In our tracking survey, two-thirds said they recycle packaging on a regular basis – and last year we saw a rise in the proportion of shoppers checking to see if a package can be recycled prior to buying it.

Notably, those who do not recycle said that the single biggest reason they don’t is because they forget to do so. This suggests that messaging could serve as a useful reminder.  Encouraging more recycling would also help bridge the gap between shoppers’ stated concern for the environment (66% very/somewhat concerned) and their level of activity in helping the environment (46% very/somewhat active).

Helping consumers to remember to recycle at home fits nicely with recent efforts on the part of several food and beverage companies in the United States to assume the costs of recycling their packaging after use – known as “extended producer responsibility”. These efforts include setting up recycling collection bins at retailers such as Whole Foods, or at sporting events such as NASCAR.

The reclaimed packaging is re-made into a similar product container, or transformed for some other purpose – such as toothbrushes and razors from plastic yogurt cups, or napkins from paper coffee cups.

As most CPG companies are developing various kinds of overarching “Sustainability” plans which include some considerations for packaging (reducing the amount of material used, using recycled content and/or recyclable or renewable materials), it will be important to align with shoppers’ desires and behaviors, as well as continuing to educate (or at a minimum, inform) them about the efforts that have been made.

With packaging serving as the brand touch point that shoppers notice most, it makes sense that it is a key part of manufacturers’ sustainability programs. It should be noted though, that as shoppers become more active in this area, they are scrutinizing efforts and claims that are being made. These efforts must therefore be handled carefully.

For example, stating that a bottle is made with 30% less material will start to lose its benefit as shoppers wonder “less than what?”. If it’s less than the bottle that was sold over a year ago, that may no longer seem all that meaningful.  This will seem more egregious if the containment properties of the new bottle are not equal to those of the prior version (e.g., if it is so thin that it collapses when opening, thereby spilling water).

If a bottle is recyclable, then stating that message clearly will be compelling.  And if the communication can also remind shoppers to actually recycle the package, then all the better.

Finally, the more complex activities, such as providing plant-based bottles, will require extensive educational efforts – beyond simple on pack messaging – that both inform shoppers about the environmental benefits, as well as reassuring them about the package’s ability to perform.

Shoppers really do want to help the environment but they need help to do so effectively and consistently. While they will not compromise functionality, they are willing to pay a bit more for more for environmentally friendly packaging as long as they understand which packages are better for the environment and are reminded of steps they can take.

In addition to providing meaningful alternatives in terms of products and packages that truly provide environmental benefits, manufacturers can help shoppers by crafting appropriate messages that reassure (e.g., “still 16 oz.”), inform (e.g., “made from 30% recycled content”) and encourage (“100% recyclable”).

It should be noted that while the content of the message is important, so too is the manner of execution. When applied to packaging, care must be taken to ensure that it will be sufficiently visible. If it goes unseen, then all of the efforts to provide environmental benefits could be for naught.

By creating eco-friendly packaging that delivers benefits that shoppers care about, understand, and will make use of, will ultimately reduce waste and lessen the carbon footprint.

And that’s something that every Mother could be proud of!

About the author

Jonathan Asher - Guest Blogger for Phenomena.com

Jonathan Asher, EVP at Perception Research Services

As Executive Vice President, Director of Account Management, Jonathan oversees the company’s client services function including account management and marketing communications, and also manages client relationships for qualitative and quantitative studies.  He is highly sensitive to the information needs of designers while also having a researcher’s ability to ask questions in an effective and appropriate manner. He is particularly adept at illuminating the risk of making wrong decisions as well as the opportunity cost of missing out on the right ones.

Jonathan has over 30 years of experience in consumer goods marketing beginning as a project director for Newman Stein, Inc. He also held research positions with Thomas J. Lipton (now Unilever) and the Lorillard division of Loews Corporation.  Jonathan entered the design field by joining Gerstman+Meyers (now Interbrand) where he was vice president, director of marketing services.  He went on to lead The Coleman Group where he developed the company’s proprietary strategic services.  From there, he established the New York office of Dragon Rouge, a leading, privately held European design agency.

A frequent speaker and lecturer on topics pertaining to marketing and design, Jonathan, has been quoted in major publications including Fortune, The New York Times, The Wall Street Journal, Brandweek, and Advertising Age.

Jonathan is also a Distinguished Faculty Member at the Path to Purchase Institute (formerly The In-Store Marketing Institute). He can be reached at jasher@prsresearch.com.

Packaging & The Environment

Shoppers Say: “Please Help Me!”

Shoppers Try To Be Environmentally Conscious But They Struggle With Confusing Messaging

At Perception Research Services we recently fielded a study to uncover shopper’s perspectives of packaging as it relates to the environment. We were surprised by the findings. Shoppers demonstrated that they are interested in choosing environmentally-friendly packaging.  Significantly more shoppers state they would like to choose environmentally friendly packaging compared to 2010 (36% vs 28%), with fully half still willing to pay more (despite the economy). This is especially true of younger (under 40) shoppers.  Over half (59%) of our sample state that seeing environmental claims on packaging positively impacts their behavior (to either buy more of the brands they usually do, or switch to others).

Ironically, while shoppers continue to notice environmental claims at a high level (roughly half state seeing more of them in the past 6 months, just as in 2010), they are increasingly frustrated by the information provided. Significantly more report there isn’t enough environmental information (26% vs 20%), that they are confused by all the different environmental claims (20% vs 12%), and that they don’t know which packages are best for the environment (22% vs 17%).

Importantly, fewer shoppers feel that manufacturers’ motives are primarily honorable (57% vs 61%).  Shoppers are becoming more skeptical of manufacturers behaviors and motives in this area, as more state that companies are increasingly self-serving (enhance reputation; realize profit gains) and show less concern for the environment.

Of the various claims seen, those having to do with recycling (recyclable, made from recycled material) are both noticed most and have the most impact on buying behavior.  Conversely, made with less material is less influential.

In 2011, we noticed a significant increase in shoppers checking to see if a package can be recycled prior to buying it. Since seeing environmental claims positively impacts purchase behavior, it is incumbent upon manufactures to clearly convey this feature.

Fully two-thirds of shoppers indicate that they recycle on a regular basis.   Those who do not recycle claim that the single biggest reason they don’t is that they forget to do so (44%) – suggesting that messaging could serve as a useful reminder.  This could also help bridge the gap between shoppers’ stated concern for the environment (66% very/somewhat concerned) and their level of activity regarding the environment (46% very/somewhat active).

This is a great opportunity for manufacturers to provide truly value-added packaging to their target shoppers by making it more environmentally friendly – primarily in the form of recyclability and recycled content – and clearly communicating these aspects. We have seen that it is vital to get both the message right (what is said) as well as the delivery (how it is executed on pack) – because one without the other will create a missed opportunity.”

In addition, it is becoming apparent that the days of disguising cost reductions (e.g., smaller, thinner packages) as being driven by environmental concerns may be coming to an end, and continuing to do so may test shoppers’ good will.

By creating eco-friendly packaging that delivers benefits that shoppers care about, understand, and will make use of, will ultimately reduce waste and lessen their carbon footprint.

And that’s something shoppers and manufacturers could be proud of!

About the author

Jonathan Asher - Guest Blogger for Phenomena.com

Jonathan Asher, EVP at Perception Research Services

As Executive Vice President, Director of Account Management, Jonathan oversees the company’s client services function including account management and marketing communications, and also manages client relationships for qualitative and quantitative studies.  He is highly sensitive to the information needs of designers while also having a researcher’s ability to ask questions in an effective and appropriate manner. He is particularly adept at illuminating the risk of making wrong decisions as well as the opportunity cost of missing out on the right ones.

Jonathan has over 30 years of experience in consumer goods marketing beginning as a project director for Newman Stein, Inc. He also held research positions with Thomas J. Lipton (now Unilever) and the Lorillard division of Loews Corporation.  Jonathan entered the design field by joining Gerstman+Meyers (now Interbrand) where he was vice president, director of marketing services.  He went on to lead The Coleman Group where he developed the company’s proprietary strategic services.  From there, he established the New York office of Dragon Rouge, a leading, privately held European design agency.

A frequent speaker and lecturer on topics pertaining to marketing and design, Jonathan, has been quoted in major publications including Fortune, The New York Times, The Wall Street Journal, Brandweek, and Advertising Age.

Jonathan is also a Distinguished Faculty Member at the Path to Purchase Institute (formerly The In-Store Marketing Institute). He can be reached at jasher@prsresearch.com.

Smart Phones Make Shoppers Smarter

At Perception Research Services International (PRS), we recently conducted research to find out how smart phone users are actually using these hand-held gadgets. First of all, we found out that ownership of smart phones is rapidly approaching levels of traditional mobile phones (36% vs 53%), and most smart phone owners (83%) use them while shopping. Interestingly, they’re not being used solely for big ticket items such as appliances (39%) and electronics (59%), but also for everyday items such as groceries (49%).

Similar to how consumers have shifted from paying in cash for purchases to debit cards another transition is taking place. For instance, Starbucks has seen a significant uptick in the number of people who pay for their purchases (or coffee experience) with a mobile application. As one news outlet put it, “Starbucks is the worldwide leader in mobile payment transactions”.  The manner which we have integrated the use of smart phones into our daily tasks is revolutionizing business transactions.

Our research into smart phone usage further indicates that smart phone owners, who use their phones while shopping, most often utilize them during the decision making process (comparing prices, gathering product information, searching for sales/coupons or reading reviews/opinions), and about one-third make actual purchases with their phones.

Importantly, Hispanics and African-Americans are more apt than Caucasians to use their Smart phones while shopping.  Smart phone owners, who use their phones to shop, tend to be under 35 years old, are employed full-time and are better educated than the average consumer.

Most recently, I read that some retailers are bringing mobile shopping to commuters. First, Tesco was exploring this space in Asia and now commuters in Philadelphia are able to scan the QR code on posters located in transit stations to order groceries and have them delivered to their home the same day!

Marketers would do well to ensure that they understand the role of smart phones and digital content – relative to packaging and POS materials – in the shopping process within their categories. They need to ensure that all their communications are complementing each other and working together. And retailers should now consider how they set their shelves and create merchandising that is “smart phone-friendly.”

About the author

Jonathan Asher - Guest Blogger for Phenomena.com

As Executive Vice President, Director of Account Management, Jonathan oversees the company’s client services function including account management and marketing communications, and also manages client relationships for qualitative and quantitative studies.  He is highly sensitive to the information needs of designers while also having a researcher’s ability to ask questions in an effective and appropriate manner. He is particularly adept at illuminating the risk of making wrong decisions as well as the opportunity cost of missing out on the right ones.

Jonathan has over 30 years of experience in consumer goods marketing beginning as a project director for Newman Stein, Inc. He also held research positions with Thomas J. Lipton (now Unilever) and the Lorillard division of Loews Corporation.  Jonathan entered the design field by joining Gerstman+Meyers (now Interbrand) where he was vice president, director of marketing services.  He went on to lead The Coleman Group where he developed the company’s proprietary strategic services.  From there, he established the New York office of Dragon Rouge, a leading, privately held European design agency.

A frequent speaker and lecturer on topics pertaining to marketing and design, Jonathan, has been quoted in major publications including Fortune, The New York Times, The Wall Street Journal, Brandweek, and Advertising Age.

Jonathan is also a Distinguished Faculty Member at the Path to Purchase Institute (formerly The In-Store Marketing Institute). He can be reached at jasher@prsresearch.com.

Buying Groceries Goes Beyond Grocery Stores

Research Shows New Shopping Patterns Emerging

What do Target, CVS, Dollar Tree and Starbucks have in common?

These days, they all share the desire to sell groceries. A trip to any of these in your neighborhood will reveal how they are encroaching on grocery sales that had once been reserved for traditional supermarkets.

The New York Times reports that Target invested about $500 million in 2010 to push more groceries into their stores. Target shoppers may visit a couple of times a week for various items, and the addition of groceries heightens the likelihood that they will pick up items that are outside the scope of their original shopping intentions.

Drug stores are aware of these tendencies as well and have significantly increased the amount of groceries they sell. While prescription drugs may still be their mainstay, groceries now account for about 30 – 35% of their sales.   According to the St. Louis Post-Dispatch, “CVS has already doubled the food assortment in more than half of its stores within the last year and a half and Dollar General and Family Dollar have been adding more coolers for frozen foods, too.”

Starbucks is the newest entrant in this effort, as it now offers bistro-boxed snacks, lunches and a wide selection of packaged beverages. They also recently announced that they will begin to offer a new line of grocery merchandise.

We wondered if having grocery items available in more places than just supermarkets changes how consumers shop for these staples.  At Perception Research Services International (PRS), we recently unveiled results from our shopper research survey focused on grocery sales and the related shift in shopping trends*.

PRS’ survey results indicate that while most shoppers (92%) say they’ve purchased groceries in supermarkets or grocery stores in the past 3 months, many (76%) also indicate they’ve purchased them at Mass Merchandisers, and nearly half (47%) mention Drug stores as a venue for purchasing grocery items. Importantly, one third of shoppers interviewed (32%) reported buying groceries in Dollar stores in the past 3 months.

Given the considerable efforts on the part of retailers such as Wal-Mart and Target to bolster their grocery offerings, it’s not surprising to see the shift to Mass outlets for grocery purchases. However, rather than stating a benefit or preference for buying groceries at these stores, shoppers cite price as the primary reason for doing so, followed by the fact that they’re already there, buying other merchandise or waiting for a prescription to be filled.

Drug stores are a convenient alternative to larger grocery and megastores, and shoppers say the ability to get in and out quickly or pick up a grocery item while shopping for non-grocery items is the reason for buying groceries in drug stores.

As would be expected, price is the primary motive for purchasing groceries in Dollar stores.

Interestingly, purchase shifts by product category are evident as shoppers indicate buying less cleaning and personal products in supermarkets in the past 3 months. They claim to be buying more of all grocery items in Mass outlets – primarily food; while in Drug stores, they buy more personal products, and more of both personal and cleaning products in Dollar stores.

Many factors are contributing to this ‘channel-crossing’ trend. Principally, shoppers are both streamlining and consolidating several shopping trips into one to save both time and gas. Also, the recent spate of mergers and acquisitions has left fewer competitors within channels, and so the focus of competition has naturally shifted across channels.

Another reason many outlets are selling groceries in their stores may have to do with First Lady Michelle Obama’s quest to eradicate “food deserts”. She’s been working with various retailers to ensure that neighborhoods lacking fresh food choices have more options. This focus aligns well with the desire of retailers to increase register rings by offering more types of non-customary items, bringing more shoppers into their stores; as well as encouraging them to buy more while there.

All of this suggests important implications for retailers in the various classes of trade. Supermarket chains must be concerned about losing traffic to other retailers that provide more of a reason to visit such as price or convenience. While supermarkets are generally credited with offering a large selection at present, they can be out-maneuvered by Club Stores and larger “super store” versions of Mass merchandise outlets.

If Mass Merchants truly want to play in this space, they will need to become a destination for grocery shopping and not simply count on shoppers buying groceries while in the store buying other things; nor will they be able to cling to their low price point-of-difference as Dollar stores continue to surge. And Drug chains will need to balance the benefit of providing a broader array of products so as to enlarge each shopper’s basket, against losing the benefit of a quick and easy shopping experience that they now enjoy as a point-of-difference.

As the non-grocery retailers continue to expand their grocery offerings, they will begin to contend with issues that may be foreign to their normal business activities.  In addition to making major investments in displays, including refrigeration, these retailers will also need to consider which items to carry and of these, which package sizes or configurations would best entice shoppers, as well as how much advertising should be allocated to their grocery offerings compared to their traditional wares.  

As all of these factors continue to play a role, retailers will need to apply their skills and expertise in new ways, learning how to merchandise products they had not previously carried or paying new attention to items that have been collecting dust on their shelves for a long time.

Unlike building a baseball field in a corn field, it may not be safe to assume that, if you stock it, they will come.

*This online study was conducted among over 1,500 shoppers, aged 18+, during May, 2011.

About the author

Jonathan Asher - Guest Blogger for Phenomena.com

Jonathan Asher has over 25 years of consumer goods marketing experience.

Jonathan is Senior Vice President at Perception Research Services International (www.prsresearch.com), a packaging and shopper research firm that conducts over 800 packaging and shopper marketing studies annually.

Jonathan is a recognized industry expert and a frequent speaker at marketing, research and design conferences.

Packing and the Environment : Shoppers Say “It’s Not My Problem”

At Perception Research Services (PRS), we recently completed a wave of research on environmentally friendly packaging and were surprised by the findings.  Fewer shoppers agreed that they should be responsible for recycling packaging than in 2009 (38% vs. 42%).

And while more shoppers expect environmentally friendly packaging to cost more (36% vs. 15% in 2008), fewer report a willingness to pay for it (51% vs. 57% in 2008), and a majority (59%) say that environmentally friendly packaging should be at no additional cost to the consumer.

Ironically, while few indicate they would like to choose more environmentally friendly packaging (28%), nearly half (48%) think manufacturers should produce more of it; and fully one third (35%) think government should mandate stricter environmental standards for packaging.

Shoppers reliance on manufacturers’ efforts may derive from an awareness of the steps that have been taken, as half of the shoppers polled have noticed companies’ claims about environmentally friendly packaging. And of those, half noticed more of these claims in the past six months.

Fortunately for manufacturers, these shoppers feel their motives are primarily virtuous as over half say companies are making these efforts for reasons having to do with helping the environment (e.g., reduce waste, save resources, make the world a better place, etc), while very few attribute these actions to self-serving interests, such as, selling more product or increasing profits. And few think companies overstate the environmental benefits of their packaging.

Shoppers’ reported behavior patterns suggest that they want someone else to do the work in this area, as nearly half say that seeing a “made from recycled materials” claim makes them more interested in buying the product, a significant increase from 2009 (48% vs. 39%). This more passive activity contrasts with the fact that very few (only 17%) say they check to see if a package is recyclable before buying a product. And, fully one-third report that they generally do not recycle packaging, consistent with the 2008 level.

It’s becoming clear that while consumers may voice concern for the environment, most appear unwilling – at the moment – to make any major sacrifices to make a difference. They’d rather rely on manufacturers to provide products and packaging that they can feel good about, without changing their behavior, giving up performance, or paying more.

Manufacturers have had the impression that they needed to be in synch with consumers’ environmental concerns and fit with the emerging lifestyle of ‘going green’.  Our findings suggest that rather than follow consumers’ lead, manufacturers must be at the forefront, making it easier for shoppers to buy the products they prefer while also feeling good about the environmental impact, and making as little sacrifice as possible. It’s a tall order, but if delivered, will be highly rewarded.

About the author

Jonathan Asher - Guest Blogger for Phenomena.com

 

Jonathan Asher is an SV P at Perception Research Services, Inc. (PRS). PRS specializes in research to help clients “win at retail.” and conducts over 800 custom studies annually to help marketers deepen their shopper understanding and develop more effective packaging, category management and in-store marketing efforts. In addition to the U.S. headquarters, PRS has offices in London, Geneva and Singapore. For more information visit www.prsresearch.com.