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BRANDING and MARKETING Volume II. Topic Module Summaries BRANDING AND MARKETING TRIBAL FOREST PRODUCTS “Your Story Is Your Brand”…” Volume II. Topic Module Summaries January 2011 Intertribal Timber Council 1112 NE 21st Avenue, Suite 4 Portland, Oregon (503)282-4296 i The Circle of Life Connects Everything Cover: Yakama Reservation (Washington State). Photo courtesy of Larry Workman, Quinault Indian Nation ii BRANDING AND MARKETING STUDY TRIBAL FOREST PRODUCTS (TFP) Volume II TOPIC MODULE SUMMARIES Components of the Branding and Marketing Study are presented as independent topic summary modules. Each module includes: 1) A Topic Summary Briefing Document: Description of the Study Component Team Members Leading the Investigation Statement of Tasks and Objectives Key Terminology Methodology Description Results Discussion and Conclusions Tribal Decisions Needed Appendices 2) Full Module Report and Supporting Materials 3) References Page MODULE 1. Tribal Interest in Participating in Branding and Marketing Programs. Ivan Eastin, 1 Indroneil Ganguly 2. Market Receptiveness to Tribal Forest Products (TFPs) Jim Petersen & Export 38 Opportunities. Wade Zammit, Dennis Gray Jr. 65 3. Brands, Trademarks and Product Support. Larry Mason, Nicole Tillotson 72 4. Alternatives for Marketing TFPs. Jim Haas 77 5. Certification. Vincent Corrao, Larry Mason 6. Timber Sale Preparation and Administration. Vincent Corrao, Larry Mason, Gary 94 Morishima 99 7. Non-Timber Forest Products. Jim Freed, Larry Mason 143 8. Ecosystem Services. Larry Mason, Gary Morishima 149 9. Ecotourism. Larry Mason, Jim Freed 157 10. Energy and Emerging Technologies. Larry Mason, Gary Morishima iii FORWARD Branding and marketing of Tribal Forest Products (TFPs) should be viewed as part of a larger strategy to not only increase Indian presence in the marketplace, but also to educate the uninformed and increase tribal influence. TFP branding and marketing could prove valuable in advancing a variety of Tribal objectives such as restoration of ancestral forests, implementation of landscape-scale approaches to natural resource management, and the development of administrative and legislative policies. At its core, the primary objective for TFP branding and marketing is to heighten public awareness and appreciation of Indian management, stewardship, values, and knowledge. The Study Team recommendation that a low risk, proactive yet cautious, incremental approach be taken with TFP branding and marketing is reflected throughout Volume II of the Study. TFP initiatives should be prioritized with respect to cost and the magnitude of potential benefits. A low risk approach would minimize the potential for harm to existing and long-term market prospects and help contend with shifting federal and state policies on complex matters such as climate change, sustainability, international trade, renewable energy development, and green building. A proactive approach would anticipate evolving opportunities in forest-based industries, such as certification, Non-Timber Forest Products, ecotourism services, etc. Finally, an incremental approach would help ensure that TFP enterprises undertake initiatives for which they are adequately prepared, in terms of experience, expertise, and capability. Because public perceptions will be influenced by experiences with “Indians”, it will be important for the actions of individual members to be coordinated and operate under a cohesive strategy. TFP branding and marketing strategies need to be well-informed and executed with consistency and caution. iv Module 1 Tribal Interest in Participating in Marketing Programs 1 Topic: MODULE 1 Tribal Interest in Participating in Marketing Programs Investigators: Dr. Ivan Eastin and Dr. Indroneil Ganguly Task: The primary objectives were to: 1) assess perceptions of potential costs and benefits associated with development of various branding and marketing initiatives to differentiate forest products from Indian lands by virtue of unique cultural, environmental services, public benefits, sustainability, and product quality values, 2) identify interest in participating in a TFP branding program and identify the branding attributes favored by tribal respondents, 3) improve understanding of how various forest certification and eco-labeling programs are perceived and have been used by the tribes in marketing their wood products, 4) determine interest in the pursuit of a Native forest certification and chain of custody program and 5) gauge interest among American Indian and Native Alaskan forest managers and wood processors in participating in cooperative marketing and sales programs. Key Terms & Concepts: PRODUCT BRANDING: An identifying symbol, words, or mark that distinguishes a product or company from its competitors. Brands are often based on a specific mix of product and product attributes that differentiate a product and provide it with a competitive advantage over similar product offerings. Usually brands are registered (trademarked) with a regulatory authority and so cannot be used freely by other parties. FOREST CERTIFICATION: Certification is a market-based, non-regulatory forest conservation tool designed to recognize and promote environmentally-responsible forestry and sustainability of forest resources. The certification process involves an evaluation of management planning and forestry practices by a third-party according to an agreed-upon set of standards. Certification standards address social and economic welfare as well as environmental protection. Most forest certification programs include chain-of-custody verifications that allow tracking of forest products through the supply chain. Certification labels are thought to reward responsible environmental performance with market benefit and may be required for participation in some product markets. COOPERATIVE MARKETING: An arrangement whereby various producers cooperate in the marketing of their products or services. This often involves sharing resources to establish an independent marketing entity that works to market the cooperative product mix by linking potential customers with cooperative members who have products that match the customer’s requirements. Methodology: Two surveys were conducted: (1) A survey of American Indian and Alaskan Native organizations that manage forestlands; and (2) A survey of managers of Native American wood processing facilities. Manager survey: 54 of 217 tribal resource managers contacted, using two different data collection techniques (web-based surveys and mail-in-questionnaires), participated in the survey (24.9% response rate, representing 66.9% of total tribal commercial forestlands held in trust). Processor Survey: Surveys were sent by mail to managers of 14 Native wood processing 2 facilities following individual phone contacts to explain the purpose of the survey. 9 of the 14 managers completed the survey (64.3% response rate) Results: Manager Survey: Almost three-quarters of survey respondents (72%) indicated that they were interested in participating in a TFP branding program. A majority of respondents also expressed interest in certification and cooperative marketing, Figure 1. Survey respondents were asked to assess the importance of a set of six attributes in forming the foundation for a TFP brand to communicate core values and effectively differentiate tribal products from other competitive offerings (where a score of 1 indicated that the attribute was perceived as being “not important at all’ and rating of 5 indicated that the attribute was perceived as being “very important”). All six of the attributes were perceived as being important with average importance ratings ranging from 3.9 to 4.3, Figure 2. The highest rated attributes were: 1) the traditional forest stewardship ethics of tribes, 2) the spiritual and cultural respect tribes have for the land, resources, and people, 3) tribal interest in supporting economic development within their community and providing employment opportunities for tribal members, and 4) the high quality wood that exists in sustainably managed tribal forests. Certification is becoming more important as federal, state and municipal procurement policies reflect preference for timber products sourced from sustainably managed forests. The two major green building programs in the US award points for projects that source timber products from certified forests. Chain of custody certification is increasingly requested by overseas customers as international concerns about illegal logging influence trade standards. In order for tribes to compete in contemporary shifting markets, it may be important to certify forests and products, either through one of the existing programs or through a yet-to-be- developed tribal certification program. Survey results indicated that many tribes are either unaware of forest certification programs or they do not have a good understanding of these programs. However, despite the general lack of knowledge regarding certification programs, fully 60% of responding tribes indicated that they would be interested in participating in a tribal certification program while another 32% expressed neutrality on the issue, suggesting that they would be open to the concept. The third marketing program that was considered by survey respondents was a cooperative sales program which could involve a central organization facilitating sales relationships and customer services for a consortium of enterprises. This strategy could be effective in overcoming the lack of marketing capacity that was reported by most respondents. Of
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