Green Marketing 1

Definition of Green Consumer LOHAS: (Lifestyle of Heath and Sustainability) very progressive on environment and society, looking for ways to do more; not too concerned about price (16%). Naturalites: primarily concerned about personal health and wellness, and use many natural products; would like to do more to protect the environment (25%). Conventionals: practical, like to see the results of what they do; interested in green products that make sense (e.g., save money) in the long run (23%). Drifters: not too concerned about the environment, figure there’s time to fix environmental problems; don’t necessarily buy a lot of green products, though may like to “be seen” in Whole Foods to enhance their image (23%). Unconcerned: have other priorities, not really sure what green products are available, and probably wouldn’t be interested anyway; they buy products strictly on price, value, quality, and convenience (14%). 2 Source: Natural Marketing Institute 2/02/10 Population Breakdown

Psychographic Segmentation for Affluent Individuals Affluent Globalists (18% of population/$207 Billion in spending power) Would be willing to pay more for products that are environmentally friendly Minimizing impact on the environment is an important part of life Believe in protecting the environment 3 Source: Ipsos/Medelsohn Affluent Study November 2009

Profile of Green Attitude & Behavior Segments Age Education Graduated College Plus Household Income $60, $75, $100, $200, Source: 2009 Doublebase Mediamark Research & Intelligence; Weighted to Population (000) – Base: All Index (to Total U.S.) Green at TheirGreen Ungreen BestAdvocates

Profile of Green Attitude & Behavior Segments 5 Source: 2009 Doublebase Mediamark Research & Intelligence; Weighted to Population (000) – Base: All Geographic Marketing Regions New England Mid-Atlantic East Central West Central Southeast Southwest Pacific Index (to Total U.S.) Green at TheirGreen Ungreen BestAdvocates

Profile of Regional Differences in Green Attitude Segments 6 Source: 2009 Doublebase Mediamark Research & Intelligence; Weighted to Population (000) – Base: All Ungreen Green at the Supermarket Green in Theory Green But Only If Green at Their Best Green Advocates Green Attitudes & Behaviors

Degree to Which U.S. Adult Internet Users Incorporate Green Behavior in Daily Lifestyle Adult Internet UsersCompletelySomewhatNone %77.1%13.2% %81.4%12.2% %80.6%15.0% %85.3%11.5% %88.0%8.3% %74.9%20.4% 7  Most consumers are incorporating “Green” standards into their lifestyle. This trend is lowest at the extremes in ages. However the amount of people that completely accept “Green” is amongst the youngest demographic:  The least eco-conscious consumers are the oldest of the grouping at 65+.  The most eco-conscious consumers are the year olds who display tendencies that lean somewhat toward eco-friendly behaviors. Source: Environmental Leader and MediaBuyerPlanner Study as seen in Center for Media Research 1/4/10

Consumer Preference for Green 67% Americans agree that “even in tough economic times, it is important to purchase products with social and environmental benefits” 51% say they are “willing to pay more” for them 66% say price is very important in purchase decision 64% look for quality 55% want “good for your health” 49% look for “made in the USA” 8 Source: Consumer Report 2009

Green Benefits Increased in Importance Since Last Year 9 Source: BBMG Conscious Consumer Report: Redefining Value in a New Economy 2009 % of Respondents indicating this attribute is “very important” for products purchased.

Green Company Marketing According to the green marketing study, 82% indicated they expect to spend more on green marketing in the future. At least half of respondents plan to engage in online marketing efforts in the future. 28% of marketers think green marketing is more effective than other marketing messages, compared to 6% of marketers who think it is less effective. Management is more optimistic, with 46% of them indicating that green marketing is more efficacious. 23% of those in operations think green marketing is more effective. Companies with smaller marketing budgets tend to spend more on green marketing. Those with budgets under $250,000 spend just over 26%, while those with budgets of more than $50 million spend 6% on green marketing. 10 Source: Environmental Leader and MediaBuyerPlanner Study as seen in Center for Media Research 1/4/10

Environmental Advertising by Media Online: 74.2% of respondents have spent marketing budgets online. Print: Print is the second strongest media for Green marketing at 49.8%. Direct: Direct completes the top trio, at the third highest ad spend, with 40% of total spend. Other Media: Outdoor, Radio & TV, and Mobile account for the remaining ad spending. 11 Source: Environmental Leader and MediaBuyerPlanner Study as seen in Center for Media Research 1/4/10 Respondents Reporting Green Marketing Budgets in Media Categories

Consumer Attitudes Towards Green Companies 41% of Americans could not name a single company that they consider the most socially and environmentally responsible. Within these respondents: 71% of consumers agree that they “avoid purchasing from companies whose practices they disagree with” 55% tell others to shop for products based on a company's social and environmental practices 48% tell others to drop products based on a company's social and environmental practices 12 Source: Environmental Leader and MediaBuyerPlanner Study as seen in Center for Media Research 1/4/10