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

2. Market Effects of Wood Promotion Timber Comittee Market Discussions 2002 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

3. Market Effects of Wood Promotion Timber Comittee Market Discussions 2002 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.

4. Market Effects of Wood Promotion Timber Comittee Market Discussions 2002 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 9800 02 95 979901 Consumption Market share Price Wood promotion General economic trend Technical improvements Cultural developments Change of legal constraints Competing products

5. Market Effects of Wood Promotion Timber Comittee Market Discussions 2002 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 Fashion Current trends Culture Tradition Status of technique Standards Basic know-how Current know how Technical problem- solutions Cultural dimension (persuasion, mentality, knowledge, opinion) Technical dimension (technical know-how, knowledge) Short term Long term

6. Market Effects of Wood Promotion Timber Comittee Market Discussions 2002 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, 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

7. Market Effects of Wood Promotion Timber Comittee Market Discussions 2002 How to reach decision makers ? The Lignum instruments as exemple Technical Contacts - Consultations - Conferences Standardization Periodicals Technical books Informative books Exhibitions, Fairs Architectural competitions Web sites Internal information Periodicals Informative books Exhibitions, Fairs Archit. competitions Web sites Advertising material Media Events Multipliers Cultural information for laymen/-women Technical Information for professionals

8. Market Effects of Wood Promotion Timber Comittee Market Discussions 2002 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

9. Market Effects of Wood Promotion Timber Comittee Market Discussions 2002 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 “

10. Market Effects of Wood Promotion Timber Comittee Market Discussions 2002 Adequate measuring of market effects 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

11. Market Effects of Wood Promotion Timber Comittee Market Discussions 2002 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)

12. Market Effects of Wood Promotion Timber Comittee Market Discussions 2002 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.

13. Market Effects of Wood Promotion Timber Comittee Market Discussions 2002 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.

14. Market Effects of Wood Promotion Timber Comittee Market Discussions 2002 Important elements of the positive development Respect for compe- tence and neutrality Sufficent financial resources to be heard Leveraging Well-developed networks

15. Market Effects of Wood Promotion Timber Comittee Market Discussions 2002 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

16. Market Effects of Wood Promotion Timber Comittee Market Discussions 2002 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.