BLUE Sustainability Segmentation

1. Please save trees by keeping this document electronic, or recycle. BLUE Sustainability Segmentation Brand Activation June 16, 2009 CONFIDENTIAL, DO NOT DISTRIBUTE

2. 2007 Blue Diamond Pure Blues Only buy green*, regardless of efficacy <1% Core Blues Regularly buy green 12% Light Blues Sometimes buy green 68% Disengaged Never buy green 19-20% 2 2 N=1000 US ADULTS

3. Pure Blues Only buy green,regardless of efficacy <1% 2009 Blue Diamond Core Blues Almost always buy green 8% Dark Blues Regularly buy green 27% Light Blues Sometimes buy green 54% Disengaged Never buy green 10-11% 3 N=2200 US ADULTS WITH INTERNET ACCESS

4. 2007 2009 Pure Blues <1% <1% Pure Blues 8% Core Blues 12% Core Blues Dark Blues 27% 68% Light Blues 54% Light Blues 19% Disengaged 11% Disengaged The “sustainable mainstream” has grown from 68% to 81% since 2007.

5. Pure Blues Core Blues Dark Blues Light Blues Disengaged So who are they?

6. Core Blues Almost always buy green Let’s start with the sustainable mainstream Dark Blues Regularly buy green Light Blues Sometimes buy green

7. My Lifestyle is Blue Views sustainability as part of her identity Dreams of a world where she can ALWAYS buy sustainable products Believes she is leveraging consumerism to participate in a larger cause Incorporates sustainable products into her life at all levels, from asparagus to shampoo to solar panels Core Blues My Actions Are Blue …for Me, My Family, My Community and the Planet Possesses confidence and pride around her depth of knowledge and engagement in the world of sustainability Sees the regular purchase of green products as taking better care of her family Understands the environmental impact of some of her actions and teaches her children about it Considers herself a spokesperson for the mission of sustainability Dark Blues The Health and Wellbeing of My Family Comes First Believes in Climate Change and is intrigued by “going-green” Isn’t often familiar with the term “sustainability” Has purchased the “low hanging fruit” like green cleaners, compact fluorescent light bulbs Needs to encounter green products at her regular retailer at an affordable price Sees sustainability as shrouded in mystery, and doesn’t think she’ll ever understand Light Blues

8. Core Blues My lifestyle is BLUE I am deeply committed to a sustainable lifestyle and almost always purchase green products whenever possible

9. Core Blues Women 61% Age 35 - 54 Liberal or very liberal 54% Highest % with grad school*

10. Influences her community Her Beliefs and Values as a Human Being Identifies with healthy living Sees few barriers to behaving ‘green’ Core Blues Sustainability is part of her identity 10

11. Her Beliefs and Values as a Consumer Driven by her values when she shops When shopping green, a company’s values and environmental commitment are more important than price and long-run savings She is less skeptical about the environmental claims companies make about their products than the Dark Blues or Light Blues She buys exclusively products she trusts, and has no reason do doubt their transparency Core Blues

12. Core Blue Behaviors…

13. Dark Blues My actions are BLUE …for me, my community, and the planet I actively and conscientiously participate in the sustainability movement by regularly purchasing green products 13

14. Dark Blues Women 57% No skew for age Highest % of college grads* Skews Married 54% Politically moderate to liberal 14

15. Concerned about the economy and the environment Her Beliefs and Values as a Human Being Volunteers in her community Dark Blues Healthy living is a core value 15

16. Her Beliefs and Values as a Consumer Making purchase decisions is how she expresses her values. But she must balance ideals with convenience when she shops. When buying green, a company’s values and environmental commitment are more important than price and long-run savings. Segment most skeptical about companies’ “green” claims. She is on the watch for ‘greenwashing’ and seeks answers on the internet. Dark Blues 16

17. Dark Blue attitudes and behaviors….

18. Light Blues The health and wellbeing of my family comes FIRST I have some interest in ‘going green’ and I sometimes purchase green products 18

19. Light Blues No skew for gender 38% Younger: under 34 Highest % with no college Highest % with children living at home 54% Skews unmarried 19

20. Her Beliefs and Values as a Human Being Believes she has a relatively small ‘sphere of influence’ - about the size of her family Strives for a healthy lifestyle through diet and exercise Light Blues Her family comes first 20

21. Her Beliefs and Values as a Consumer May have tried to buy local, but it’s probably not a viable every day solution due to time, money and location Will not go out of her way to purchase green products; she isn’t engaged deeply enough with the cause to compromise on time and energy Looks to Core Blue-focused brands for guidance on trends to follow Light Blues

22. Light Blue attitudes and behaviors….

23. Pure Blues Core Blues Dark Blues Light Blues Disengaged But what about… 23

24. Pure Blues Only buy green,regardless of efficacy …the fringe segments Disengaged Never buy green

25. I am sustainability Pure Blues He is sustainability and his role in life is to save the planet—it’s his life’s mission He is important because Pure Blues are the innovators, the NGOs and the gatekeepers of the perceived truth Has dedicated his career to saving and changing the planet Does not commute—he lives close to where he works so he can ride a bike or walk If he has a car, it runs on bio diesel he makes himself Grows his own food or belongs to a community garden Can be as young as college grads and as old as the “hippie generation” Examples of Pure Blue Characteristics: 25

26. I am intentionally not a part of sustainability and really never buy green products Disengaged Found at all age groups High representation of Caucasian, African American “Not really concerned” with issues such as the environment and social wellbeing No less likely to be familiar with the term “sustainability” than Dark or Light Blues (48% vs. 58%); It’s a matter of opinion, politics or priority, not education or awareness Not skeptical about companies’ green claims Trusts companies and governments to make decisions for him Important because his values will diminish in the marketplace as the population grows into sustainability

27. Methodology • In 2007, Saatchi & Saatchi S created a model we call the “Blue Diamond” to segment values and behaviors across the spectrum of sustainability in the US: • We used the 2006 Mintel Green Living Report to identify the segments and their population sizes based on one simple question: Do you regularly, sometimes or never try to buy green products when available? • In order to understand who our sustainability segments are, we overlaid additional third party segmented research including the Hartman Group Sustainability Report, Roper Green Gauge Study, BBMG Conscious Consumer Study, Saatchi & Saatchi X Sustainability Shopping Study as well as data from Natural Marketing Institute and other various sources. • In addition to the Core Blues, we carved out <1% of the population we defined as “Pure Blues,” a segment deeply steeped in BLUE that should be called out as it’s own segment with different values and behaviors. • All of this data has been refreshed for 2009.

28. A Refresh for 2009 • Using the recently released 2009 reports from Mintel and Hartman, alongside additional 3rd party research from 2008/2009, we refreshed our model to more accurately reflect shifts in the sustainability consumer landscape since 2006/2007. • The data coming out of these two studies, which were conducted at the end of 2008, showed some significant changes that are reflected in the updated Blue Diamond: • The Mintel study added a fourth response, “Almost Always Buy Green,” which allowed us to further segment the Blue Diamond • Hartman further subdivided Light Blues, providing insight into attitudes and behaviors at each end of the Light Blue spectrum • Both Mintel and Hartman showed an marked increase in affinity for green and green purchasing between 2006/2007 and 2008/2009

29. Works Cited • BBMG Conscious Consumer Report, 2007 • The Hartman Group Sustainability Report, 2009 • The Hartman Group Sustainability Report, 2007 • Mintel Green Living Report, 2009 • Mintel Green Living Report, 2006 • Natural Marketing Institute Lifestyles of Health and Sustainability Trends Database 2008 (Environmental Leader) • Roper Green Gauge Study 2009 • Saatchi & Saatchi X Sustainability Shopper Study • Wal-Mart Sustainability, Power Category Study

30. Core Blues Most likely to frequently purchase green products through the internet (23%) 1 Consults a variety of information sources for insight on the ingredients, packaging and manufacturing of a given product, and uses this knowledge as the primary barrier or motivation for purchase 2 Pre-teens are a vocal influencer group, especially in their relationship to their parents’ purchase decisions 2 Light Blues Educates herself passively through TV 4 Not an active searcher and learner when it comes to sustainability Media Consumption • Dark Blues • She is an influencer 1 • Both online and in her social network • More likely to be engaged and active in online communities like Facebook and MySpace 4 • Relies on expert opinions from many sources in her purchasing decisions 2 • When in doubt she looks to Pure Blue media such as Gaiam or Treehugger as a trusted source on sustainability questions