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You Get What You Pay For

How Does This Work?

BACK-END

FRONT-END

PRODUCTS

ACTIVIES

  • Scan
  • Snap

SCORES

What do people think of Kellogg's Special K chocolate bars?

  • Scan
  • Snap

VOTES

FEEDS

Balance sheet

USER RECORD

Profiling, friends

BASIC

Costs

Revenues

  • Avg 7/10

App dev

Designer

Social media

Sales

Hw&Sw

Will it work?

An iPhone app

&

PRO

What market for

Gathering data

A market research tool

Concerning a refined idea

Firms' willingness to pay

Pricing

Life Cycle Analysis

Measuring the problem

Footprint

Assessment

Short answer: Yes!

  • 1000 votes
  • 20-35
  • Female
  • “Weightwatcher" on
  • Environmentally aware
  • Northern Italy

The Point of Purchase Advertising Institute

found that 74% of all purchase decisions are made in the store.

Making it worthwhile

i.e. Is it possible to create added value through labeling?

(Bold) Claim

"A little bit of history repeating”

Retail chains spend on sustainability but find it hard to capitalize.

Probing the Claim

Sources:

Fair Trade

as a case study

A success story

Organic Food

How much does

COOP spend?

A variety of bodies

What do they “buy”?

http://fairtrade.org.uk

Certifications

Initiatives

A study in experimental economy

Consorzi di tutela

  • Certify selected ingredients and traditional processing

  • Facilitate scale up/internationalization

Is it worth it?

Why People Will Use

VS

Measuring further how worthy it's been

How many firms?

PAS 2050

www.lcafood.dk

www.environdec.com

www.improntawwf.it/carrello

Corporate sustainability &

firms' value

Does corporate sustainability have an impact on firm value?

(Lo and Sheu, 2007)

«It is found that firms are rewarded in the market for taking economic as well as environmental and social concerns into their developing strategies»

Does it pay to be green?

EMV + LBV

Tobin's q =

Industry clockspeed

EBV + LBV

(Wiengarten et al. 2012)

Dynamic VS Static Industries

Static industries

Dynamic industries

*

Italian food firms

  • Low rate of new product introduction;
  • Stable processes;
  • Stable organizational structure;
  • Branding and marketing have little influence;
  • Long product life cycle.

  • Frequent new product introduction;
  • Frequent changes in processes;
  • Frequent changes in organizational structure;
  • Marketing plays an important role;
  • Branding is part of the differentiation strategy;
  • Short product life cycle.

VS

Other firms

Sustainable firms

«The operational benefits of reducing a supply chain's impact on the environment will not be equal for all organizations. Producers in dynamic industries will not reap any operational benefit from such investments»

Low consumers' awareness

(Wiengarten et al. 2012, p.548)

Why is it that sustainable firms are worth more, but don't sell more?

Eurobarometer, 2009

Did you ever refuse to purchase a product or brand because unsustainable (last 1 yr)?

Collaborazione

WWF/Mutti/Università della Tuscia

Market research

Gfk Eurisko, 2011

Did you buy any product/brand due to its sustainablity (last 1 yr)?

Have you heard about sustainability?

How familiar are you with the concept of sustainability?

Approximately 2000

*

Average to big

Approximately 50

Regulations

What customers for

  • Consumers and firms share a widespread awareness about sustainability.
  • Consumers attach to firms a relevant role in the progress towards sustainability.
  • They furthermore demand a higher degree of transparency and more commitment to the value of sustainability.

(GfK-Eurisko, 2011)

Providing the people with the source of data they want/trust

On which products is info about sustainability more needed?

How good is info about product chain sustainability?

What

Health and Lifestyle apps

250 million iPhones sold

Which sources of info are more trustworthy?

looks like

“Health and Fitness”

“Lifestyle”

71%

79%

# of paid apps / # of apps

VS

The Mobile Internet Report, Morgan Stanley 2009

http://www.ubergizmo.com/2012/07/apple-sold-250-million-iphones-to-date/ http://blog.nielsen.com/nielsenwire/online_mobile/state-of-the-appnation-%E2%80%93-a-year-of-change-and-growth-in-u-s-smartphones/

Smartphone users in the world. GoGlobe.com

http://www.localytics.com/blog/2012/app-user-loyalty-increasing-ios-beats-android/

FoodPrint

Be Better. Right Now

*

Copycatting

“Il Cibo del Futuro”

A viral campaign for a new line of infographically labeled fruit&veg.

Redesigning labels

Legal constraints for entomocolture and labeling

– 7.68 million food ratings

– Half-a-million foods

– Users from over 50 countries

Previous carbon footprint and infographic labeling initiatives

Compiling the Database

Define target cluster for campaign

How (not) to

Leveraging shock

*

a.k.a. Luttazzi docet

a.k.a. thank God we were born in Italy

Life-Cycle Analysis

Capturing value

But

– Time consuming

– Requires expertise

– Very costly

– Nobody's happy

mTurk is totally fine for the construction of a basic list of commercial food products

Mechanical Turk

Have it the Chinese way.

Mock website for bugs sale

Slightly inaccurate

Has a cost

Requires precise criteria for evaluation

How about the evaluation then?

Screw that!

Infographic communication effectiveness

The first High Resolution Real Time brands positioning chart.

Questionnaires for suppliers and customers

Viral video

Empty boxes of insects on the shelves

Brochure bugs&sustainability

One of the most accurate ways to guess the number of jellybeans in a jar is to average the guesses of everyone in the room.

Post VS Spot

Reforming the Supply Chain

Incentivising local production and lowering ecological impact

Likely partners

Prioritising items according to their impact

The thing: Where ‘our’ world is at

Sustainable

Very Low Efficiency

Shorter

Better price for value

Expiring disposable goods rank high

Less waste

Cost/Waste

PROPOSAL #1

PROPOSAL #2

Infographics

Improving Information for a Sustainable Distribution

The means: Where to start from

Group 5

Cecilia Nardini

Davide Baccarin

Francesca Mancini

Giuseppe Schiavone

PROPOSAL #3

Eating the bug that's eating the system

Marcel Dicke

Prof. of Entomology

Wagenigen University

Thanks for your attention.

If it looks good, it must taste the same

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