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Tackling Systemic Problems and Shifting Entire Product Categories through Multi-Layer Business Model Innovation

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Tackling Systemic Problems and Shifting Entire Product Categories through Multi-Layer Business Model Innovation

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Tackling Systemic Problems and Shifting Entire Product Categories through Multi-Layer Business Model Innovation

  1. 1. Daniel Vennard | @venoir Global Sustainability Director Mars Tackling  Systemic  Problems  and  Shi6ing  En8re  Product   Categories  through  Mul8-­‐Layer  Business  Model  Innova8on
  2. 2. Daniel  Vennard   Senior  Research  Fellow,  World  Resources  Ins5tute   Twi8er:  @venoir
  3. 3. Confiden5al  Informa5on  –  Mars,  Inc.    For  Internal  Distribu5on  Only.  2   @venoir  
  4. 4. Confiden5al  Informa5on  –  Mars,  Inc.    For  Internal  Distribu5on  Only.  3   Confiden5al  Informa5on  –  Mars,  Inc.    For  Internal  Distribu5on  Only.  3   @venoir  
  5. 5. Confiden5al  Informa5on  –  Mars,  Inc.    For  Internal  Distribu5on  Only.  4   @venoir  
  6. 6. Confiden5al  Informa5on  –  Mars,  Inc.    For  Internal  Distribu5on  Only.  5   @venoir  
  7. 7. Confiden5al  Informa5on  –  Mars,  Inc.    For  Internal  Distribu5on  Only.  6   @venoir  
  8. 8. Confiden5al  Informa5on  –  Mars,  Inc.    For  Internal  Distribu5on  Only.  7   @venoir  
  9. 9. 8   @venoir  
  10. 10. 9   Educa.on     Informa.on   Abs.nence   @venoir  
  11. 11. •  Free  Range  Eggs   •  Laundry  Compac5on   •  Bu8er  Alterna5ve   •  Fish  Fingers   •  Low  Alcohol  Beer   •  CFL  &  LED  Light  bulbs   •  Milk  Alterna5ves     10   •  Coffee  Eco-­‐Refills   •  Meat  Alterna5ves   •  Shark  Fin  Soup  in  China   •  Organ  meat  in  WWII  U.S.   •  Trans  fats  in  the  US   @venoir  
  12. 12. 11   @venoir  
  13. 13. Change   Barrier   Ac.ons   Move  consumers   from  drinking  high  to   low  alcohol  beverages     •  Limited  interest  in  low  alcohol  benefit   •  Taste  of  low  alcohol  beer  poor   •  Located  in  low  traffic  “low-­‐alcohol”  sec5on   •  Limited  secondary  display  due  to  lack  of  promo’s   •  Masked  taste  with  inclusions  (lime  etc.)     •  Posi5oned  around  benefit  of  refreshment  –  no  men5on  of  ABV   •  Government  reduced  duty  on  low  alcohol  beer.   •  Invested  in  promo5ons  and  display.   •  Worked  with  retailer  to  move  to  the  main  shelf   Fish  Fingers  Low  alcohol  beer  in  the  UK   @venoir  
  14. 14. Confiden5al  Informa5on  –  Mars,  Inc.    For  Internal  Distribu5on  Only.  13   @venoir  
  15. 15. Change   Barrier   Ac.ons   Move  consumers   from  drinking  high  to   low  alcohol  beverages     •  Limited  interest  in  low  alcohol  benefit   •  Taste  of  low  alcohol  beer  poor   •  Located  in  low  traffic  “low-­‐alcohol”  sec5on   •  Limited  secondary  display  due  to  lack  of  promo’s   •  Masked  taste  with  inclusions  (lime  etc.)     •  Posi5oned  around  benefit  of  refreshment  –  no  men5on  of  ABV   •  Government  reduced  duty  on  low  alcohol  beer.   •  Invested  in  promo5ons  and  display.   •  Worked  with  retailer  to  move  to  the  main  shelf   Fish  Fingers  Low  alcohol  beer  in  the  UK   @venoir  
  16. 16. Be  more   memorable  
  17. 17. Change   Barrier   Ac.ons   Move  from  eggs  laid  by  caged   hens  to  eggs  laid  by  free  range   hens             •  No  no5ceable  consumer  benefit   •  50%  price  premium  for  free  range  eggs  (£1.49  vs.  99p).     •  Built  on  perceived  quality  benefit  of  free  range  hens  to  create  a     perceived  quality  and  taste  benefits  for  free  range  eggs.     •  Recently  launched  brands  into  the  category  with  marke5ng   support  to  drive  salience  further  of  perceived  benefit.     •  Enhanced  margin  to  retailers  on  free  range  eggs  which  has  led  to   over  facing  for  free  range  eggs.     •  Number  of  retailers  (UK)  edi5ng  out  caged  eggs  from  store.     •  Campaigns  that  re-­‐enforce  nega5ve  points  of  caged  hens.   Free  Range  Eggs  Free  Range  Eggs  UK     @venoir  
  18. 18. Confiden5al  Informa5on  –  Mars,  Inc.    For  Internal  Distribu5on  Only.  17  
  19. 19. Change   Barrier   Ac.ons   Move  from  eggs  laid  by  caged   hens  to  eggs  laid  by  free  range   hens             •  No  no5ceable  consumer  benefit   •  50%  price  premium  for  free  range  eggs  (£1.49  vs.  99p).     •  Built  on  perceived  quality  benefit  of  free  range  hens  to  create  a     perceived  quality  and  taste  benefits  for  free  range  eggs.     •  Recently  launched  brands  into  the  category  with  marke5ng   support  to  drive  salience  further  of  perceived  benefit.     •  Enhanced  margin  to  retailers  on  free  range  eggs  which  has  led  to   over  facing  for  free  range  eggs.     •  Number  of  retailers  (UK)  edi5ng  out  caged  eggs  from  store.     •  Campaigns  that  re-­‐enforce  nega5ve  points  of  caged  hens.   Free  Range  Eggs  Free  Range  Eggs  UK     @venoir  
  20. 20. Be  more   memorable  
  21. 21. Change  Makers  Check  List   Understood  Barriers   Mul.-­‐stakeholder   Data  and  Insight   Share  and  Re-­‐apply   Innova.ng  new  ideas   @venoir  
  22. 22. 21   @venoir  
  23. 23. TwiIer:  @venoir   daniel.vennard@effem.com  

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