Market Effects of Wood Promotion

Jan Hagstedt

Senior Advisor

1 Raw material 2 Product

Know how

Interest/Good examples - Arguments - Tools

What is wood promotion?

From a supplier – generic?

Hardwood – softwood?

Spec products – general wood?

Commercial – PR – Information?

Possibilities:

Interesting market Sustainability & Environment

Positive attitudes

Raw material abundant

Marginal promotional efforts so far

Practical problems can be solved

In Short: Favourable!

Limitations: Wood is “not present”

Know how & education

Fragmented branch

“Cut the cake” – attitude

Confidence/ reliability from end users

Does the wood sector believe in itself?

The wood resource

Products

Checking:

The market

The wood resource, Europe

Net increment in 10 years 2 billion m3 (under bark) or1,1 billion m3 sawlogs or550 million m3 sawn products

Source: European Forestry institute

Present growth:Corresponds to around + 65 million m3 sawn timber

Can this happen? To what effect? Where is the market?

Europe: 50 % TF +15-20 million m3

total 105 millions

Theoretically45-50 m m3remains

Market?

Wood culture?

Wood: leading mtrlBy 2 010 ?

The market

Our working environment

Clients

General public

SpecifiersMedia

Opinion formers

Wood product Manuf.

Forest

PR - agent

Building contractorsdevelopers

Politicians

Local actors

Products, systems

Success stories:

1 Germany: Profilbretter

2 Japan: Nordic softwood

3 Southern USA – SYP

+ 2,2 million m3 interiors

+ 1,5 - ” - housing

+ 4,5 - ” - decking

Assess the market possibilities- the strategy, the planand act!

Firm resolution to go ahead!

“Bake a bigger cake”

Involve the best possible “brain power”

Network!

The Nordic Timber Council case:1993 – 2001

1993 2001 %Consumption Europe 93 106 +14

Production - ” - 89 107 +20

Sweden+Finland, prod 21 28 +33

Export 16 22 +60

Prices (index) +10 - 18 %

Advertisement

Promotion & ‘Fulfilment’

Opinion Behaviour Consumption

Main Campaign Activity

Key Impact Parameters

-Time -

Timber 2 000 – Wood.For good UK

- A promotion approach

Timber 2000/ Wfg UK

June 2000 – June 2002 Wood windows (BWF) + 18 % (projection till 2004 + 56 %

Deckings (TDA) + 20-30 % 1995: £ 5 m Now: £ 100 m

Target: 0,25 m3/capita by 2003- 2005 Results : +600 000 m3 or 1/3 of target

Evaluation by Jaakko Pöyry Consulting, London