russell davies: The Eco-friendly Opportunity is Huge Youve clearly benefited from having access to Mintel.

So well done for getting hold of it. And youve done a smart and effective summary of the Mintel. (Those little footnotes/sources do really lend some authority.) But once youve finished at least 80% of US adults are purchasing Green products* summarising the situation you seem to run out of steam. Theres only one page some of the time with your thoughts, ideas, recommendations. And those thoughts arent that surprising / interesting given what the Mintel says. So I guess this feels like half a job done very well, but theres not as much original thought as Id hoped for.

Whats the attraction?

Pollution and other toxins raise concerns Increased awareness of environmental issues Good for me, good for the planet Green is hip

*Defined as goods that minimize the impact to the environment in one or more ways Source: Mintel, Green Living, 9/2006 Mintel, American Living, 1/2007
PAGE 1

Trial High; Commitment Low

Only 12% of US adults say they buy Green products regularly, while 68% are buying them sometimes

Whats the problem?

Lack of labeling rules leads to confusion High Price Limited Availability

Source: Mintel, Green Living, 9/2006

PAGE 2

The Green Cleaning Category Lags Behind

Household cleaning products account for about 15% of mainstream supermarket sales, but only 1% in the natural channel.
Why?
Lack of awareness as to how Green cleaners can help the environment Belief that using Green to clean means sacrificing efficacy Narrow range of brand/product choices

Source: Mintel, Green Living, 9/2006

PAGE 3

Who is Buying Green?

Trial Consumers: Willing to try, but tend to stick to natural foods. Open to the idea
of doing more but its not a priority. usually consumables.

Occasional Consumers: Have integrated a few Green products into their lives,

Regular Consumers: Take action to make Green a part of their lives, yet remain
primarily in the food/beverage categories.

Committed Consumers: Dedicated to a Green lifestyle, for the good of themselves

as well as the world around them. Using Green products from all categories, including household cleaners and laundry.

PAGE 4

Source: Mintel, Natural Products Marketplace Review, 11/2004

Fewer Households = Greater Volume

As eco-friendly household cleaners & laundry products continue to emerge, Regular and Committed users will offer the biggest opportunity for growth.
60

56
50 40 30 20

37

% of US Population % of Natural Products Volume

20 15 14

28

10 0
al er sum n Co

7
r r er me me sum su su n n on Co Co dC al ar l itte ion gu Re cas mm Oc Co

Tri

PAGE 5

Source:

Mintel, Natural Products Marketplace Review, 11/2004

Brands Begin to Respond

A Green corporate image is a profitable one

Whats in it for them?

Perceived moral equity Consumers paying more attention to corporate values

Examples:
GE, Ecomagination Walmart, Eco-friendly commitment Toyota, Prius

PAGE 6

The Competition

Dedicated Brands
Green brands that have always existed to offer eco-friendly alternatives Primary focus is eco-friendly; efficacy perceived as secondary Limited selection of readily available Dedicated brands and products

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The Competition

Dabbler Brands
Mega-brands that are seizing on the Green trend and adding eco-friendly variants

Primary focus remains efficacy, with nod to specific eco-friendly benefits

Skepticism exists as to true dedication to Green values

PAGE 8

The Opportunity
A new Dedicated brand has the biggest opportunity for growth in the Green segment

Target Regular and Committed Green consumers

Penetration still low; even among Committed, only 8% regularly using green cleaning/laundry products Room exists to add to selection of brands that share their Green values

Differentiate by directly addressing perception of lack of efficacy in eco-friendly products

PAGE 9