Transcript Market Effects of Wood Promotion Timber Comittee Market Discussions 24-25 September 2002, Geneva Peter Hofer, Senior Advisor, GEO Partner AG, Zürich Timber Comittee Market Discussions 2002 G.

Market Effects of
Wood Promotion
Timber Comittee Market Discussions
24-25 September 2002, Geneva
Peter Hofer, Senior Advisor, GEO Partner AG, Zürich
Timber Comittee Market
Discussions 2002
G E O
PARTNER AG
U M W E L T
M A N A G E M E N T
Bases of the presentation
Market Effects of
Wood Promotion
20 years experiences as Director of Lignum
Comparative study of joint promotional work
of steel- and forest-industry in Switzerland
Responses to questionnaires and communication with promotional organizations:
• Dr. Holger Conrad, Arbeitsgemeinschaft Holz,
Germany
• Jan Hagstedt, Nordic Timber Council, Sweden
• Kelly McClosky, Wood Promotion Network, BC
Canada
• David Venables, American Hardwood Export
Council, United Kingdom
Timber Comittee Market
Discussions 2002
Based on the authors
experiences the analyses is focused on the
building market sector
in Europe, with it’s
importance for revenue
and added value.
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PARTNER AG
U M W E L T
M A N A G E M E N T
Market Effects of
Wood Promotion
Wood promotion of
forest industry sector
Cooperation in wood
promotion has a long
tradition. This is due to
a highly fragmented
structure of the forest
and forest industry
sector.
Waldwirtschaft
1‘020
916
2‘181
0
448
8
844
Holzhandel
371
525
679
1. Verarbeitungsstufe
964
350
495
125
31
248
Wood promotion denotes
joint communicational
activities to achieve positive
market effects in favour of
the forest industry sector.
234
76
Promotional organizations
are in general funded by the
forest owners, forest
industry and Governments.
44
2. Verarbeitungsstufe
92
It started long before
other industrial sectors
began joint promotional
activities.
Papier /
Karton
824
2‘030
354
768
729
174
130
106
3. Verarbeitungsstufe
286
1‘629
1‘933
2‘728
348
407
66
70
27
60
152
Bauwesen
248
Holzwaren
102
Möbel
1‘816
1‘450
33
4
159
245
Verpackungen
Energie
40
Papier und Karton
912
1‘893
65
Hobby-Markt/ Do it
1‘556
Endverbrauchermärkte
Total
1‘602
Timber Comittee Market
Discussions 2002
7‘148
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PARTNER AG
U M W E L T
M A N A G E M E N T
Intended effects on target markets
Consumption
Market share
Price
Competing
products
Wood promotion
99
00
01
02
Change of legal
constraints
98
Cultural
developments
97
Technical
improvements
General
economic trend
95 96
Timber Comittee Market
Discussions 2002
Market Effects of
Wood Promotion
Wood promoters have to
define the target
markets relating to
products and geographical regions.
It is difficult to attribute
an observed market
effect solely to the
efforts of the promotional organization, there
are numerous direct an
indirect influences.
G E O
PARTNER AG
U M W E L T
M A N A G E M E N T
Dimensions of
decision makers‘ attitudes
Cultural dimension
(persuasion, mentality,
knowledge, opinion)
Fashion
Current trends
Technical dimension Current know how
(technical know-how, Technical problemknowledge)
solutions
Short term
Culture
Tradition
Status of technique
Standards
Basic know-how
Long term
Timber Comittee Market
Discussions 2002
Market Effects of
Wood Promotion
Promotional work has
to attempt to influence
the decision-makers
attitudes to achieve
decisions in favour of
wood and wood
products.
Attitudes have cultural
and technical dimensions with long term
and short term
elements
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PARTNER AG
U M W E L T
M A N A G E M E N T
Decision makers in the marketplace
– who decides?
Directly
involved groups
Building owners, Buyers
Architects, Engineers
Real estate firms
Contractors, Carpenters
Wood working industry
Influencing groups
Regulatory authorities
Standards organizations
Financing Institutions
Insurance companies
Important groups
in the background
„General public“
Mass medias
Politicians
Political parties
Timber Comittee Market
Discussions 2002
Market Effects of
Wood Promotion
Every promotional
concept has to be based
on a closed analyses of
the building market in
question.
Some promotional
organizations act in a
„research-driven
approach“ to define
exactly what is the work
that has to be done.
G E O
PARTNER AG
U M W E L T
M A N A G E M E N T
How to reach decision makers ?
The Lignum instruments as exemple
Technical Information
for professionals
Market Effects of
Wood Promotion
Cultural information
for laymen/-women
Technical Contacts
- Consultations
- Conferences
Standardization
Periodicals
Technical books
Informative books
Periodicals
Informative books
Exhibitions, Fairs
Archit. competitions
Web sites
Advertising material
Exhibitions, Fairs
Media
Architectural competitions
Events
Web sites
Multipliers
Internal information
Timber Comittee Market
Discussions 2002
G E O
PARTNER AG
U M W E L T
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Optimization of costs and benefits
Market Effects of
Wood Promotion
It is an economic requirement to concentrate the activities on
selected target markets, few instruments
and the most important arguments.
In the highly fragmented production structure of the forest
industry sector
leveraging effects can
be achieved
Timber Comittee Market
Discussions 2002
G E O
PARTNER AG
U M W E L T
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Leveraging can be a
strength in wood promotion
„(Choose) Swiss
wood in future, it is
a regenerating raw
material“
Timber Comittee Market
Discussions 2002
Market Effects of
Wood Promotion
„Amplifiers“ have to
know what they are
expected to do and why
they are expec-ted to
do it.
In one Swiss campaign
representatives of
woodworking industry
did not identify with the
message.
The target audience
reacted in a positive
manner.
G E O
PARTNER AG
U M W E L T
M A N A G E M E N T
Adequate measuring of market effects
Entwicklung der Holzverwendung
in 1'000 m3f
400
preisgünstig
350
Verarbeitung durch Hersteller
5
4
3
2
1
0
300
250
5
4
3
2
1
0
Architekten
Ingenieure
Bauherren
Architekten
Ingenieure
Bauherren
200
Haltbarkeit
150
Unterhaltsaufwand
5
4
3
2
1
0
100
50
4
3
2
1
0
Architekten
1996
Bauherren
Architekten
Komfort, Bequemlichkeit
Ausstattung
Dächer
1991
Ausbau
Fassaden
Dämmungen
Konstruktion
0
Ingenieure
5
4
3
2
1
0
Ingenieure
Bauherren
Ästhetik
5
4
3
2
1
0
Architekten
Ingenieure
Bauherren
Architekten
Ökologie
Ingenieure
Bauherren
Gesamtbeurteilung
5
4
3
2
1
0
5
4
3
2
1
0
Architekten
Ingenieure
Bauherren
Architekten
Ingenieure
Timber Comittee Market
Discussions 2002
Market Effects of
Wood Promotion
Direct indicators
• Consumption
• Market shares
• Price developments
Indirect indicators
• Changes in attitudes
(behaviour) of
decision makers
Efficency indicators
• Published articles
• Established contacts
• Sold books /
informations
Bauherren
G E O
PARTNER AG
U M W E L T
M A N A G E M E N T
Market effects: Direct Indicators
Market Effects of
Wood Promotion
Entwicklung der Holzverwendung
in 1'000 m3f
The diagram shows the
development of wood
utilization in different
building components in
Switzerland in a period
of recession (1991/96)
400
350
300
250
200
150
100
50
1996
Ausstattung
Dächer
1991
Ausbau
Fassaden
Dämmungen
Konstruktion
0
Timber Comittee Market
Discussions 2002
G E O
PARTNER AG
U M W E L T
M A N A G E M E N T
preisgünstig
Verarbeitung durch Hersteller
5
4
3
2
1
0
5
4
3
2
1
0
Architekten
Ingenieure
Bauherren
Market Effects of
Wood Promotion
Architekten
Haltbarkeit
Ingenieure
Bauherren
Unterhaltsaufwand
5
4
3
2
1
0
4
3
2
1
0
Architekten
Ingenieure
Bauherren
Architekten
Komfort, Bequemlichkeit
5
4
3
2
1
0
Ingenieure
Bauherren
Ästhetik
5
4
3
2
1
0
Architekten
Ingenieure
Bauherren
Architekten
Ökologie
Ingenieure
Bauherren
Gesamtbeurteilung
5
4
3
2
1
0
5
4
3
2
1
0
Architekten
Ingenieure
Bauherren
Architekten
Ingenieure
This indirect indicator
gives a impression of the
attitudes towards wood
(brown) and steel (red) of
archtitects, engineers
and clients in
Switzerland.
The expressed opinion
about price, durability,
comfort, ecologie, etc. is
a good bases for promotional work in future.
Bauherren
Timber Comittee Market
Discussions 2002
G E O
PARTNER AG
U M W E L T
M A N A G E M E N T
Wood promotion of recent years is a
success-story
Market Effects of
Wood Promotion
Observed market effects in the last 20 years
• Despite the stone and concrete building
tradition in western Europe, growing interest
in wood products is evident.
• Market share of wooden buildings and
building components has increased.
Organizations of competing materials respect:
• the positive development of wooden
buildings market share
• The grwowing wood know-how of architects
and engineers
• The positive attitude and sympathies of the
public as well as of important authorities.
Timber Comittee Market
Discussions 2002
G E O
PARTNER AG
U M W E L T
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Important elements of the positive
development
Market Effects of
Wood Promotion
• Respect for competence and neutrality
• Sufficent financial
resources to be
heard
• Leveraging
• Well-developed
networks
Timber Comittee Market
Discussions 2002
G E O
PARTNER AG
U M W E L T
M A N A G E M E N T
Main threats of future
wood promotion
Market Effects of
Wood Promotion
• Discussions about fair
financing
• Acting on beliefs rather
than on carefully
studied initial situations
• Project organization
with unsufficient
duration
• Not existing or inadequat collaboration
accross borders
Timber Comittee Market
Discussions 2002
G E O
PARTNER AG
U M W E L T
M A N A G E M E N T
Is wood promotion in danger?
Market Effects of
Wood Promotion
Different wood materials
and professional groups
must find means to join
and finance together.
Joint campaigns among
several countries have to
be aware of the different
cultures and languages
between countries.
If the promotional organizations for wood improve
their collaboration, wood
will have a better future.
Timber Comittee Market
Discussions 2002
G E O
PARTNER AG
U M W E L T
M A N A G E M E N T