Sustainability: It’s a complex and multifaceted issue that has a widespread impact on businesses. It’s also becoming increasingly important in today’s competitive landscape. This is not just a trend; it is a movement that is here to stay. In today’s world, consumers are more aware of the impact their purchasing decisions have on the environment. They are looking for products that are sustainable, eco-friendly, and socially responsible. However, sustainability is not just about using recycled materials or reducing carbon footprint; it goes much deeper than that.
One of the challenges of sustainability is that it is not limited to just one aspect of a product. It’s tied to raw resources, agricultural practices, geography, transportation, storage, packaging, and more. Brands need to understand where they can make the most impact on sustainability at a consumer level. It’s not just about the raw materials; it’s also about the manufacturing process, designing sustainable packaging, and disposal considerations. There are a lot of stakeholders involved in sustainability, and it can be challenging to navigate all the different directions.
Moreover, sustainability is not the only factor that consumers consider when making a purchasing decision. The most sustainable products on the shelf are rarely the cheapest or the most prominent. When faced with a purchase decision, many consumers are more likely to choose the cheaper option over the more sustainable option. This makes it difficult for brands to develop sustainable practices. Consumers may be willing to pay a little extra for sustainable products, but it falls on the brand to ensure that these investments are viable and present a maximum return on investment. This often means finding a balance between sustainability, cost-effectiveness, and profitability.
The Explorer Research Shopper Activation Framework provides an irreplaceable roadmap for understanding sustainability at the product level. By mapping out the six major shopper segments across any given category, it provides an understanding of where the growth potential is within those segments. For example, the Health-Conscious Pioneers segment is highly motivated by sustainability, and over-indexes on health-conscious, sustainable, and socially-conscious products. By using the framework, brands can identify which products are currently playing well with this segment and which are not, giving them a better competitive landscape to work with. It can also help identify white space in the marketplace for innovation to tap into this growing behavior.
Furthermore, sustainability messaging and practices can be conveyed down to the packaging level, providing detailed insights to aid packaging design. While 99% of people care about sustainability and the healthiness of their products, the push and pull factors for sustainability can vary depending on accessibility and price. The Shopper Activation Framework recognizes that sustainability doesn’t speak to only one product, and there is a balance to be struck between value-oriented and premium items. Thus, the messaging that resonates with each shopper segment will differ depending on their needs and preferences.
Regarding shopper insights, it’s worth mentioning once more that there is often a gap between what consumers say and what they do. We can all acknowledge that recyclable packaging is a win for sustainability-conscious shoppers, but it sometimes comes at an unexpected cost. In 2010, for instance, Sun Chips introduced a new 100% compostable packaging. This innovation was met with great public dismay due solely to the noise produced by the packaging when handled, which prompted the company to return to its original packaging.
It’s also important to acknowledge that the landscape is never going to be static. The public at large has been experiencing the effects of inflation for several years, and consumers are being forced to make difficult choices. Many noteworthy advancements in sustainability (like reusable packaging developments, or drone delivery, for example) have effectively been paused because of drastic shifts in spending habits that are the result of inflation. These developments are important, but timing them correctly will be critical to their success.
These examples highlight the importance of conducting custom research to identify potential usability issues and other practical concerns that consumers may have. By understanding the full range of factors that influence consumers’ purchasing decisions, companies can develop products that not only meet sustainability goals but also meet practical needs and expectations. Ultimately, custom research can help companies avoid costly mistakes and ensure that their products are successful in the marketplace.
Sustainability is not just a trend; it’s a necessity for the future. Brands need to invest in sustainable practices that are viable and profitable in the long run. The Shopper Activation Framework uncovers true consumer understanding for brands to find a balance between sustainability and profitability.
