timber comittee market discussions 24-25 september 2002, geneva
DESCRIPTION
Timber Comittee Market Discussions 24-25 September 2002, Geneva. Peter Hofer, Senior Advisor, GEO Partner AG, Zürich. Bases of the presentation. 20 years experiences as Director of Lignum Comparative study of joint promotional work of steel- and forest-industry in Switzerland - PowerPoint PPT PresentationTRANSCRIPT
Timber Comittee Market Discussions 2002
Market Effects of Wood Promotion
G E OPARTNER AG
U M W E L TM A N A G E M E N T
Timber Comittee Market Discussions24-25 September 2002, Geneva
Peter Hofer, Senior Advisor, GEO Partner AG, Zürich
Timber Comittee Market Discussions 2002
Market Effects of Wood Promotion
G E OPARTNER AG
U M W E L TM A N A G E M E N T
Bases of the presentation
Based on the authors experiences the ana-lyses is focused on the building market sector in Europe, with it’s importance for revenue and added value.
20 years experiences as Director of Lignum
Comparative study of joint promotional work of steel- and forest-industry in Switzerland
Responses to questionnaires and communi-cation 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
Market Effects of Wood Promotion
G E OPARTNER AG
U M W E L TM A N A G E M E N T
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.
It started long before other industrial sectors began joint promotional activities.
Wood promotion denotes joint communicational activities to achieve positive market effects in favour of the forest industry sector.
Promotional organizations are in general funded by the forest owners, forest industry and Governments.
G E OPARTNER AG
U M W E L TM A N A G E M E N T
271‘816
Ene
rgie
Pap
ier
und
Ka
rto
n
Ver
pack
ung
en
Ho
lzw
are
n
Möb
el
Hob
by-
Ma
rkt/
Do
it
Bau
wes
en End-verbraucher-märkte
3. Verarbeitungsstufe
2. Verarbeitungsstufe
Holzhandel
1. Verarbeitungsstufe
Waldwirtschaft
Papier / Karton
1‘893 912 245 159 4 33 1‘450
1‘020 8 4480
248 31 125
130 174 729 768
651‘6291‘556
234
92
495
679
844
76
354824
40 102 248 66 152
916
371
44
2‘030 106
964350
2‘181
525
286
1‘933 2‘728 348 407 70 60 1‘602
Total
7‘148
Timber Comittee Market Discussions 2002
Market Effects of Wood Promotion
G E OPARTNER AG
U M W E L TM A N A G E M E N T
Intended effects on target markets
Wood promoters have to define the target markets relating to products and geogra-phical regions.
It is difficult to attribute an observed market effect solely to the efforts of the promotio-nal organization, there are numerous direct an indirect influences.
96 98 00 0295 97 99 01
ConsumptionMarket sharePrice
Wood promotion
Gen
eral
ec
onom
ic tre
nd
Tech
nica
l im
prov
emen
ts
Cultu
ral
deve
lopm
ents
Chan
ge o
f leg
al
cons
train
ts
Competing products
Timber Comittee Market Discussions 2002
Market Effects of Wood Promotion
G E OPARTNER AG
U M W E L TM A N A G E M E N T
Dimensions of decision makers‘ attitudes
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 dimen-sions with long term and short term elements
FashionCurrent trends
Culture Tradition
Status of techniqueStandards
Basic know-how
Current know howTechnical problem-
solutions
Cultural dimension(persuasion, mentality,
knowledge, opinion)
Technical dimension(technical know-how,
knowledge)
Short term Long term
Timber Comittee Market Discussions 2002
Market Effects of Wood Promotion
G E OPARTNER AG
U M W E L TM A N A G E M E N T
Decision makers in the marketplace – who decides?
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.
Directly involved groups
Building owners, BuyersArchitects, Engineers
Real estate firmsContractors, CarpentersWood working industry
Influencing groupsRegulatory authorities
Standards organizationsFinancing InstitutionsInsurance companies
Important groupsin the background
„General public“Mass medias
PoliticiansPolitical parties
Timber Comittee Market Discussions 2002
Market Effects of Wood Promotion
G E OPARTNER AG
U M W E L TM A N A G E M E N T
How to reach decision makers ?The Lignum instruments as exemple
Technical Contacts- Consultations- Conferences
Standardization
PeriodicalsTechnical booksInformative books
Exhibitions, Fairs
Architectural competitions
Web sites
Internal information
PeriodicalsInformative books
Exhibitions, Fairs
Archit. competitions
Web sites
Advertising material
Media
Events
Multipliers
Cultural informationfor laymen/-women
Technical Informationfor professionals
Timber Comittee Market Discussions 2002
Market Effects of Wood Promotion
G E OPARTNER AG
U M W E L TM A N A G E M E N T
Optimization of costs and benefits
It is an economic re-quirement to concen-trate the activities on selected target mar-kets, few instruments and the most impor-tant arguments.
In the highly fragmen-ted production struc-ture of the forest industry sector leveraging effects can be achieved
Timber Comittee Market Discussions 2002
Market Effects of Wood Promotion
G E OPARTNER AG
U M W E L TM A N A G E M E N T
Leveraging can be a strength in 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.
„(Choose) Swiss wood in future, it is a regenerating raw material“
Timber Comittee Market Discussions 2002
Market Effects of Wood Promotion
G E OPARTNER AG
U M W E L TM A N A G E M E N T
Adequate measuring of market effects
Direct indicators• Consumption• Market shares• Price developmentsIndirect indicators• Changes in attitudes
(behaviour) of decision makers
Efficency indicators• Published articles• Established contacts• Sold books /
informations
Entwicklung der Holzverwendung
in 1'000 m3f
0
50
100
150
200
250
300
350
400
Kon
stru
ktio
n
Däm
mun
gen
Fas
sade
n
Däc
her
Aus
b au
Aus
stat
tung
1991 1996
p r e i s g ü n s t i g
012345
A r c h i t e k t e n I n g e n i e u r e B a u h e r r e n
V e r a r b e i t u n g d u r c h H e r s t e l l e r
012345
A r c h i t e k t e n I n g e n i e u r e B a u h e r r e n
H a l t b a r k e i t
012345
A r c h i t e k t e n I n g e n i e u r e B a u h e r r e n
U n t e r h a l t s a u f w a n d
0
1
2
3
4
A r c h i t e k t e n I n g e n i e u r e B a u h e r r e n
K o m f o r t , B e q u e m l i c h k e i t
012345
A r c h i t e k t e n I n g e n i e u r e B a u h e r r e n
Ä s t h e t i k
012345
A r c h i t e k t e n I n g e n i e u r e B a u h e r r e n
Ö k o l o g i e
012345
A r c h i t e k t e n I n g e n i e u r e B a u h e r r e n
G e s a m t b e u r t e i l u n g
012345
A r c h i t e k t e n I n g e n i e u r e B a u h e r r e n
Timber Comittee Market Discussions 2002
Market Effects of Wood Promotion
G E OPARTNER AG
U M W E L TM A N A G E M E N T
Market effects: Direct Indicators
The diagram shows the development of wood utilization in different building components in Switzerland in a period of recession (1991/96)
Entwicklung der Holzverwendung
in 1'000 m3f
0
50
100
150
200
250
300
350
400
Kon
stru
ktio
n
Dä
mm
unge
n
Fas
sade
n
Dä
che
r
Aus
bau
Aus
stat
tung
1991 1996
Timber Comittee Market Discussions 2002
Market Effects of Wood Promotion
G E OPARTNER AG
U M W E L TM A N A G E M E N T
p r e i s g ü n s t i g
012345
A r c h i t e k t e n I n g e n i e u r e B a u h e r r e n
V e r a r b e i t u n g d u r c h H e r s t e l l e r
012345
A r c h i t e k t e n I n g e n i e u r e B a u h e r r e n
H a l t b a r k e i t
012345
A r c h i t e k t e n I n g e n i e u r e B a u h e r r e n
U n t e r h a l t s a u f w a n d
0
1
2
3
4
A r c h i t e k t e n I n g e n i e u r e B a u h e r r e n
K o m f o r t , B e q u e m l i c h k e i t
012345
A r c h i t e k t e n I n g e n i e u r e B a u h e r r e n
Ä s t h e t i k
012345
A r c h i t e k t e n I n g e n i e u r e B a u h e r r e n
Ö k o l o g i e
012345
A r c h i t e k t e n I n g e n i e u r e B a u h e r r e n
G e s a m t b e u r t e i l u n g
012345
A r c h i t e k t e n I n g e n i e u r e B a u h e r r e n
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 promo-tional work in future.
Timber Comittee Market Discussions 2002
Market Effects of Wood Promotion
G E OPARTNER AG
U M W E L TM A N A G E M E N T
Wood promotion of recent years is a success-story
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
Market Effects of Wood Promotion
G E OPARTNER AG
U M W E L TM A N A G E M E N T
Important elements of the positive development
• Respect for compe-tence and neutrality
• Sufficent financial resources to be heard
• Leveraging
• Well-developed networks
Timber Comittee Market Discussions 2002
Market Effects of Wood Promotion
G E OPARTNER AG
U M W E L TM A N A G E M E N T
Main threats of future wood promotion
• Discussions about fair financing
• Acting on beliefs rather than on carefully studied initial situations
• Project organization with unsufficient duration
• Not existing or inade-quat collaboration accross borders
Timber Comittee Market Discussions 2002
Market Effects of Wood Promotion
G E OPARTNER AG
U M W E L TM A N A G E M E N T
Is wood promotion in danger?
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 organi-zations for wood improve their collaboration, wood will have a better future.