Timber Comittee Market Discussions 24-25 September 2002, Geneva

Timber Comittee Market Discussions 2002

Market Effects of Wood Promotion

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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



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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



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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.

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3. Verarbeitungsstufe


Holzhandel


Waldwirtschaft

Papier / Karton

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1‘933 2‘728 348 407 70 60 1‘602

Total

7‘148



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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



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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



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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



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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



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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



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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“



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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


H a l t b a r k e i t

012345


U n t e r h a l t s a u f w a n d

0

1

2

3

4


K o m f o r t , B e q u e m l i c h k e i t

012345


Ä s t h e t i k

012345


Ö k o l o g i e

012345


G e s a m t b e u r t e i l u n g

012345




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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



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p r e i s g ü n s t i g

012345


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


H a l t b a r k e i t

012345


U n t e r h a l t s a u f w a n d

0

1

2

3

4


K o m f o r t , B e q u e m l i c h k e i t

012345


Ä s t h e t i k

012345


Ö k o l o g i e

012345


G e s a m t b e u r t e i l u n g

012345


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.



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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.



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Important elements of the positive development

• Respect for compe-tence and neutrality

• Sufficent financial resources to be heard

• Leveraging

• Well-developed networks



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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



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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.

Documents

Timber Comittee Market Discussions 24-25 September 2002, Geneva