CONSUMER

Insights today for tomorrows decisions

Fall/Winter 2006

Baby Boomer Segmentation:

Eight Is Enough
Tune Into Teens: Test Your Teen Aptitude

FEATURES:
Global Household Product Sales Employee Empowerment Cracking the Retail C.O.D.E.

Consumer Insight:
In every issue
Volume 8, No. 3

Seeing TomorrowToday
Contributing Writers
Doug Anderson Research & Development ACNielsen Homescan & Spectra Joe Bucherer Segmentation Analytics ACNielsen Homescan & Spectra Jon Busman Marketing ACNielsen Homescan & Spectra Mark Chesney Communications ACNielsen Global Services Russell Evans Business Technology Solutions ACNielsen Todd Hale Thought Leadership ACNielsen Homescan & Spectra Laurel Kennedy Marketing Strategy Age Lessons Jane Perrin Communications ACNielsen Global Services Tom Pirovano Retailing Insights ACNielsen Bill Rouse Wal-Mart Analytics ACNielsen Homescan & Spectra

Trendwatch
Walk-In Retail Clinics: A Healthy Savings Idea

Publisher
ACNielsen

Editors
Laurel Kennedy Kathy Mancini

Design & Layout

Blue Lemon Design

Editorial Board
Joe Bucherer Carolyn Calzavara Mark Chesney Tiffany Graves Todd Hale Laurel Kennedy Dan Lyman Kathy Mancini Troy Noble Danell ONeill Tom Pirovano Lori Tanking

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contents

On the Cover: Baby Boomer Segmentation

Baby Boomer Segmentation: Eight is Enough

Given its relative size and influence on U.S. consumer markets, surprisingly little formal, quantitative segmentation work has been conducted on Baby Boomers. The question remains: how to right-size the huge Boomer cohort? How many segments would capture the important often subtle nuances that can spell the difference between a successful new product launch or marketing campaign and a complete misfire? Turns out, eight segments is enough.

12 Global Household Product Sales: Innovative Items Clean Up

Analyzing household products on a global scale involves a pretty big bucket of categories and countries. Whats Hot Around the Globe Insights on Growth in Household Products, one in a series of ACNielsen reports on the fastest-growing products and category drivers, encompasses 66 markets and 29 household product areas.

20 Tune Into Teens: Test Your Teen Aptitude

Teens are a moving target. They were born and raised during a digitized age where change happens rapidly. Born into the MTV generation where the rally cry was I want my MTV, they have learned that what they want, they get. In their world, everything is immediate. From instant messaging to microwave meals, instant gratification is their mantra.

Global Household Product Sales: Innovative Items Clean Up

28 Employee Empowerment: The Key to Capturing Productivity

Ask any successful salesperson, and theyll tell you that timely, accurate information represents the best armor theyve got in the profit wars. The bulletproof concept resonates with every salesperson who has ever had to sell-in a new product, argue a price increase or stave off a competitive threat. To be effective in todays hyper-charged, customized, store-levelfocused retail environment, salespeople need a virtual arsenal of presentations capable of being refreshed with current data at the touch of a button.

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20

34 Gas Price Hikes Put Brakes on Spending

Crude oil prices ignited again this summer, surpassing the $70 a barrel threshold and pushing prices at the pump to an inflammatory $3+ per gallon. Factors like market speculation, refinery capacity shortages and a pronounced decline in spare global oil production converged, leaving cash-strapped consumers scrambling to adjust budgets and spending accordingly.

42 Cracking the Retail C.O.D.E.

Tune Into Teens: Test Your Teen Aptitude

28 34
Employee Empowerment: The Key to Capturing Productivity Gas Price Hikes Put Brakes on Spending

Winning at retail is enabled by applying a simple, systematic four-step process that we call Cracking the Retail C.O.D.E. The methodology employs a series of critical steps to optimize brand or product success in the marketplace. This consumer-centric approach links actions in the storewhere they matter the mostback to the consumers most likely to purchase your brand.

50 TrendwatchWalk-In Retail Clinics: A Healthy Savings Idea

Would you like some chicken soup with that prescription? While grocery stores have always stocked this form of liquid penicillin, today theyre home to the real dealwalk-in clinics staffed by nurse practitioners licensed to diagnose and treat common conditions such as allergies, bladder infections, bronchitis, ear infections, the flu, heartburn, muscle pain, pink eye, minor burns and rashes.

Overview
ACNielsen recently completed the 15th edition of its annual Trade Promotion Practices Study which has traced industry promotion budget and allocation trends on the manufacturer side for 15 years, and corresponding retailer practices for nine years. The longitudinal view of spending habits and preferences affords unique insights into the ebb and flow of promotional methods through time, and an enlightened look at the similarities and differences between these trade partners. Conducted via the Internet, the online survey polled senior sales and marketing executives from 61 manufacturers and 38 retailer organizations. The electronic field work was supplemented with in-depth telephone interviews to more fully develop areas of special interest. The Trade Promotion Practices Study has been distributed to ACNielsen clients and is available for purchase on our website at http://www.acnielsen.com/store. included private label activities and customer loyalty/retention programs. In the case of manufacturers, those subjects included trade partners, vendor relationships and category management.

Tailoring content
With study input available to guide editorial selections, the Fall/Winter issue of Consumer Insight magazine serves up a number of articles that directly address the top-ranked concerns of retailers and manufacturers. When it comes to understanding consumers (factor 1), the publication places the two largest age cohorts in the U.S. squarely in the crosshairsBaby Boomers and Millennials. The article titled Baby Boomer Segmentation: Eight is Enough introduces a robust segmentation model from ACNielsen Homescan & Spectra, based on the single most influential determinant of consumer purchase behavior household composition, and in particular, presence of children in the home. The mantra its all good describes the teen scene in the article titled Tune into Teens for marketers who take the time to understand the zeitgeist of Millennials and their propensity for electronic multi-tasking. While teens may not have the bank accounts to purchase big ticket items, their influence over household spending decisions is undeniable.

Benchmarking performance
Perennial favorite topics up for debate include the efficacy of frequent shopper programs and an assessment of which elements in the category management tool kit (assortment planning, promotional planning, shelf management, category business planning, everyday low pricing, frequent shopper/loyalty programs, micro-merchandising and micro-marketing) have gained or lost favor in the calendar year.

A matter of opinion
While retailers and manufacturers disagreed on any number of issues ranging from the sufficiency of trade promotion dollars to the effectiveness of shelf management, there were five areas of accord. The following topics were identified by both groups as critical success factors important to their business: 1. understanding consumers 2. new product introductions/implementation 3. category management 4. promotion efficiency/effectiveness 5. variety and assortment Additionally, each faction identified important subjects specific to their operations. In the case of retailers, those subjects

New product intros

Opening a window onto the global new product scene (factor 2), the article titled Global Household Product Sales: Innovative Items Clean Up analyzes the packaging, ingredient and social trends that contribute to successful new product uptake. Cleaning products with oxidizing properties swept the worldwide sales ratings, along with so-called system approaches to cleaning like the innovative Swiffer line.

C.O.D.E. breakers
For a comprehensive view of consumer-driven micromarketing, readers will want to spend time with the article titled Cracking the Retail C.O.D.E., which touches on each of the critical success factors from the Trade Promotion Practices Study. Expanded, the acronym C.O.D.E. stands for

Fall/Winter 2006

1. 2.

Consumer Profilingaccurately captures the demographic profile of the brands consumer. Opportunity Gappingquantifies store-level opportunities based on consumer demand potential and diagnoses the prospect. Dynamic Clusteringgroups similar stores using multiple store attributes, including shopper demographics, the competitive set, and upside opportunity. Executing for the Consumertakes findings from steps 13 and develops store-level tactical plans, giving the field force the right information to optimize in-store presence.

3.

4.

Forward-looking insights
With winter and the annual Consumer and Market Trends Report release approaching, more than the ambient temperature is dropping. The VNU Retailer Sentiment Index (RSI) saw a continuation of the downtrend which started in January 2005. Comprising monthly polls of roughly 500 retailers about current and future economic conditions, the VNU Retailer Sentiment Index also takes into account indicators such as store openings, hiring, earnings and general economic trends, synthesizing the input into a comprehensive view of current and future conditions. Traditionally, retailers cited the competitive environment as their top concern since the inception of the RSI. By midyear 2006, for the first time, the overall economy knocked competition out of the top spot.

Classic updates
Now in its tenth year, the Consumer and Market Trends Report will include updates on classic measures of industry performance including channel blurring and category summaries. The channel blurring article investigates the impact of consolidation on channel dominance and the behavior of valuable multi-channel shoppers, while the category review article examines results from the convenience channel.

Pricing it right
Price compression and assortment expansion are two opposing forces that define the fast-moving consumer goods climate of today. From our custom analytical group comes a detailed discussion of a repertoire modeling approach for simulating the impact of a price change on volume, share, revenue and profit.

Social responsibility
This years Consumer and Market Trends Report exhibits a decidedly altruistic bent, delivered by two articles. One article outlines the rise in organic products and the downstream influence of Wal-Marts green commitment on the environment. The second article discusses how corporate sustainability and consumer pressure for environmental responsibility is sweeping through board rooms.

Its all about you

By lifting the curtain on this and future Consumer Insight articles, we hope to have piqued your interest in the publication, while demonstrating that we practice what we preach. You are our readers. You are our customers. And our goal is to provide customer-centric editorial content that addresses the fundamental needs of your business. To make sure that we stay on point, you can e-mail our editor at ConsumerInsight@acnielsen.com or contact your client service representative any time to make a suggestion that will improve our core product set or thought leadership publications. Were listening. C i

True blue
Segueing from the green theme, the Consumer and Market Trends Report will also cover the subject of true blue customers in a detailed article on the subject of loyalty marketing. The article walks through a framework for integrating a broad range of data from loyalty programs and POS numbers, to demographic profiles, attitudinal studies, share of wallet and promotional responsiveness to convert regular shoppers into loyal, high value customers.

Baby Boomer Segmentation:

Eight Is Enough
The most important thing to remember about Boomers is that they are rule breakers. Individuality over conformity is a consistent Boomer pattern. They always have done it differently than the way it was done before, and as they get older, they will continue to demand products that fit their individuality. From Rocking The Ages: The Yankelovich Report on Generational Marketing by J. Walker Smith & Ann Clurman Given its relative size and influence on U.S. consumer markets, surprisingly little formal, quantitative segmentation work has been conducted on Baby Boomers. The question remains: how to right-size the huge Boomer cohort? How many segments would capture the important, often subtle, nuances that can spell the difference between a successful new product launch or marketing campaign and a complete misfire? Turns out, eight segments is enough.

by: Doug Anderson Research & Development ACNielsen Homescan & Spectra Laurel Kennedy Marketing Strategy Age Lessons

Often, when shaping products or programs for Boomers, marketers have viewed this generation as a single, monolithic entity with lockstep needs and purchasing patterns. Akin to a big gulp theory, this framework poured every Boomer into one purchasing pool of interchangeable consumers. That theory just doesnt hold water. At best, marketers acknowledged the sweeping 19-year age span of 19461964, and using a little rough justice, split the segment in half or thirds, addressing campaigns to older or younger Boomers. In this generational approach, age serves as an overly simplistic proxy for the correct measure household composition. Under the generations method, rather than directly measuring the elements of household composition, observed differences in purchasing behavior are wrongly attributed to some underlying, shared social/political/cultural touchpoints. That theory is out of touch with marketplace realities. See chart 1.

Chart 1: Finding the years of the Baby Boom is pretty easy

35 Annual Birth Rate of the United States

30

Small cohort of young post war adults + Higher incomes and a prosperous economy

Higher consumption especially housing, autos, homes and appliances & Lots of children

25

20

15

10
19 00 19 14 19 20 19 26 19 32 19 38 44 19 19 50 56 19 19 62 68 19 19 74 19 80 19 86 92 19 98 19

Fall/Winter 2006

Simply put, there is no shared cultural milieu that resonates with all Baby Boomers. Many age cohort members were neither born in the United States, nor grew up here, leaving the shared culture concept significantly diluted.

Chart 2: Percent of Baby Boomer households by the behavioral consumer segments

Leading Edge Couples New Family Frontiers

Size matters
When people hear the term Baby Boom generation, the first thing that comes to mind is its massive size. The second thing is its unabated appetite for conspicuous consumption. Boomers have been tagged with superlatives since birth, re-shaping American culture and institutions to reflect their unique zeitgeist. Today, this age cohort is defined as follows: The biggest age band in history, numbering some 77 million persons The highest earners, with a median household income of $54,170; 55% greater than post-Boomers and 61% more than pre-Boomers The best educated of any group before it, with 28.5% holding a bachelors degree or higher and 45 million boasting some college The most influential investing group, with 40% of the U.S. population age 50+ controlling 75% of financial assets The deepest pockets, responsible for more than half of all consumer spending The preferred safe harbor for returning college grads (2/3 support an adult child) and their aging parents (25% live with a parent) The largest homeowner group; 80% of Boomers vs. 69% of the general population own a home; 25% own at least one property in addition to their primary residence according to the National Association of Realtors.

11.5
Trailing Edge Couples

11.3 5.1

Late Blooming Boomers Trailing Edge Families

15.5

15.5 9.8 9.3

Ready to Launch

Single Boomers

22.1

Leading Edge Families

No Kids
Source: ACNielsen Homescan & Spectra

Kids <18

Any segmentation structure assumes that there are behavioral or other key differences within the group to be segmented. As behaviorists, we believe that segments generated should show differences in real, measurable consumer behavior. In the case of Boomers, much of the intra-generational variation observed has more to do with household composition, and less to do with membership in simplistic, age-based cohorts.

Slicing the pie

The overriding factor dictating Boomer consumer segments proved to be the presence of children in the home. In 2000, 65% of elementary and high school students had Baby Boomer parents, and high school enrollments reached their highest level since 1979. Nearly one in five school-age children had at least one foreign-born parent, and their ethnicity reflects the diversity of the Boomer band: 63% non-Hispanic White, 16% African-American, 15% Hispanic and 4% Asian. A detailed ACNielsen Homescan & Spectra analysis of Baby Boomer households revealed eight discrete segments that clustered into two broad groups: the four Boomer segments with children under 18 represented 39.7% of the cohort, while the four without children accounted for 60.3% of Boomer households. See chart 2.

More alike than different

While neither the one- nor the two-tier segmentation approach is accurate, its easy to understand how this convention emerged. As a group, Baby Boomer households exhibit the least behaviorally differentiated purchasing patterns of any generation. This apparent behavioral flatness is due to the fact that there is often more behavioral variation between different groups of Boomers than between Boomers overall and the pre- and post-Boom populations which bracket them.

Fall/Winter 2006

Chart 3: Segmenting Baby Boomer households with children less than 18

Total Baby Boomer HHs with Children

Smaller Families Size 23

Larger Families Size 4+

Younger Children < 12 Only Late Blooming Boomers

Older Children 12 + Ready to Launch

Trailing Edge HOH Age 4248 Trailing Edge Families

Leading Edge HOH Age 4960 Leading Edge Families

Source: ACNielsen Homescan & Spectra

Kid stuff
Marketing to the Boomer segments with children is anything but childs play. It requires an understanding of the nuances between the four groups. For example, highly educated Late Blooming Boomers may have made the choice to start families later in life or are the by-product of divorce. As a result, Late Blooming Boomers have smaller, younger families comprising one to two children under the age of 12. A single parent heads fully one-third of Late Blooming households, which also index above average for African-American and Asian ethnicities, but below average for Hispanics. Late Blooming heads of household span the entire Baby Boomer age group. Since education correlates strongly with income, any attempt to divide Boomers on the basis of age alone would clearly miss the mark here, and leave out a significant number of affluent Late Blooming households. See chart 3. Trailing Edge Families comprise larger, stable households of 4+ persons who have lived at the same address for more than five years. Unlike Late Blooming Boomers, Trailing Edge heads of household fall into a narrow age parameter, sharing a birth date between the years 1958 and 1964. Averaging 2.5 children per household, they have far fewer (less than half as many) adult children than Leading Edge families, which appears to be a direct function of parental age.

The least educated of any Boomer group, Trailing Edgers are even less educated than the post-Baby Boom cohort. Another note of internal segment consistency demarcating Trailing Edgers is the above average concentration of Hispanics populating the group, the most of any Boomer sub-segment.

Older, not necessarily wiser, kids

Leading Edge Families feature older parents born between 1946 and 1957, large households averaging 2.4 children, with approximately one adult child for every four children under age 18. As one might expect from the doting parents who pioneered those ubiquitous baby-on-board signs, the apron strings are proving hard to cutor perhaps just more elasticas young adult children bounce back to the security of home. The purse strings to Junior are even harder to untie. As a consequence, Boomer offspring are returning to the nest after college in record numbers, or remaining at home while getting their start in the working world. According to 2000 U.S. Census figures, 56% of men and 43% of women in the 1824 age bracket reside with a parent, and 65% of recent college grads enjoy the largesse of Mom & Dads hospitality. While better educated than pre-and post-Boomers, Leading Edge Families fall into the lower tier of academic accomplishment compared with other Boomer segments. After Trailing Edge Families, Leading Edge Families are the most Hispanic-dominant of any Boomer group and far and away the most married. Seven in ten Leading Edge Family households are headed by married couples.

Chart 4: Segmenting Baby Boomer households without children

Total Baby Boomer HHs without Children

Single Person HHs

Two Person HHs

Three + Person HHs

By contrast, the Ready-to-Launch segment weighs in with the lowest incidence of Hispanics and the highest incidence of African-Americans among Boomers. All Ready-to-Launch households have at least one child over 12, and for the most part, only children over twelve, skewing toward the late teens. The Ready-to-Launch segment splits roughly in half between couples with one child and single parents with one or two children. Heads of household can be any age within the Boomer bandwidth, and there are few adult children in view.

Trailing Edge HOH Age 4254 Single Boomers Trailing Edge Couples

Leading Edge HOH Age 5560 Leading Edge Couples New Family Frontiers

Adults only
Apparently Single Boomers hit the books in college, tying Late Bloomers for the title of most educated. Some 41% of Single Boomers never opted for marriage, and established single households. Half of the Single segment unpacked their bags five or more years ago and still call the same residence home today. See chart 4.

Source: ACNielsen Homescan & Spectra

Working Retirements
Work long and prosper. Thats the new mantra of the Boomer generation as it edges toward Social Security eligibility and retirement age. So hold on to those gold watches, because the Boomers plan on retiring the traditional concept of retirement with a characteristically bold move that will surprise detractors and benefitrather than hijackthe economic future of the generations that follow. The idea is simplicity itself: keep on working, earning and contributing to the economy for as long as one is able and enabled. Driven by a host of motivations ranging from selfactualization to financial need, many Boomers reject the idea of a leisurely retirement and plan to work well into their 70s and beyond. In a 2006 Merrill Lynch study, 71% of adults envision working in retirement, and half of those said they intended to work as long as they were physically and intellectually able.

Companies need the workers

While the statistics vary dramatically (estimates of a labor shortage as early as 2010 range from 800,000 workers to almost 10 million), the inescapable fact remains that the baby bust generation numbers 11 million fewer bodies than the Boomers. Even with productivity gains, process changes, outsourcing options and immigration inflows, there simply may not be enough workers to fill available jobs. The obvious solution: retain the ones youve got. Progressive employers are experimenting with any number of riffs on the traditional consulting contracts or part-time positions available to retired employees. Among the more innovative working retirement ideas: capability-specific personnel banks of skilled temporary workers; roadblocking schedules, where retirees rotate between time on/off the job for a pre-determined time increment (e.g., three months on/off); job sharing, reviving what Boomer women elevated to an art form; two individuals sharing a job, salary and performance expectations;

Fall/Winter 2006

Trailing Edge Couples carved their own path on the matrimonial front, and report the highest rate of unmarried partners living together. Trailing Edge Couples typically are headed by a person born in the 19521964 period, who have occupied the same house for the past five years, find themselves situated in the bottom Boomer tier on the education dimension, and have fewer than expected Hispanic and African-American members.

Boomer strata, Leading Edge Couples report a low incidence of Hispanics and the lowest African-American incidence of all Boomer groups. One of the most interesting segments to emerge from the Boomer study was the New Family Frontiers faction, characterized by three or more adults sharing a household. The typical New Family Frontiers household encompasses 1.1 children between the ages of 18 and 24, with 40% claiming another resident relative such as a parent (1/3 of such family units) or adult siblings. From an economic perspective, it is worthwhile to note that 54% of New Family Frontiers households have three or more employed workers in the home. Among the highest earning households, New Family Frontiers do a pretty good job of hanging on to what they make, second only to Leading Edge Couples on the savings front. See chart 5 on page 10.

The social vanguard

Leading Edge Couples, with a head of household born between 1946 and 1951, represent the first group of the Boomer generation to serve as social change agents. One of the top three best-educated Boomer segments, Leading Edge Couples exhibit just half the unmarried rate of Trailing Edge Couples and two-thirds have shared a residence for five or more years. Less ethnically diverse than other

seasonal positions that follow employees who split time between two geographical locations (e.g., New York and Florida); sampling arrangements that enable a worker to move across departments for a new challenge.

Everybody wins
Working Boomer retirees will have more discretionary income to continue fueling the economic engine, less need to draw down savings and liquidate investments, and can readily fill the emerging labor gap by staying employed. Meaningful employment enables critical knowledge transfer from highly skilled Boomers to other workers, and keeps older employees mentally and physically engaged. At the same time, employers access a labor pool of proven workers with the flexibility to calibrate hours to match demand. In a Center for Retirement Research survey, older workers earned consistently higher marks than younger counterparts from employers for their knowledge of procedures and other job aspects and ability to interact with customers . Overall, older workers were seen as more productive based on their accumulated institutional knowledge and efficient work habits. Retailers like CVS Pharmacy, Home Depot and Borders have already tapped the retiree talent vein with outstanding results. When it comes to the workplace, some things apparently do get better with age.

Boomers need the money

Its a good thing that Boomers say they want to work, because its clear that many will have to work for financial reasons. One factor that impacted even diligent savers was the stock market decline of 20012003 that eradicated roughly $78 trillion in shareholder wealth, much of it held by Boomers. In the process, the dot-com crash ate away some $279 billion in 401(k) assets and huge chunks of other retirement savings. Boomers dialed-in to the nuances of finance recognize that 401(k) and IRA/retirement money statements can create a false sense of wealth, since these amounts will be federally taxed on withdrawal (with the exception of Roth IRAs).

Chart 5: New family configurations have new numbers of workers

100 80 Percent of HHs 60 40 20 0
a B by oo m o Bo l me rs a eF mi lies dg ing a eF mi lies dy t a oL s m rs les ple oo tie up n o o yB r C b F e e a g B ily gle dg Ed Pre am Sin gE F n ng i i l i w ad Tra Ne Le un ch o Bo me rs u Co

s Po

tB

La

te

m loo

i Tra

E ing

dg Le

ad

E ing

a Re

No Workers
Source: ACNielsen Homescan & Spectra

One Worker

Two Workers

Three or More Workers

Gray matters
The shift towards adult-only households will continue as Boomers age. By 2007, fewer than 30% of Boomer households will have children under 18 at home. By 2010, that number will have declined again to just 20%. By 2014, fewer than 10% of all Boomer households will include children under 18. Americans are getting older, living longer and having fewer children. An 85+ population growing eight times faster than the country as a whole will throw a new wrinkle into longstanding assumptions which form the underpinnings of social services programs. In 1995, Federal spending per child under 18 years of age was $1,693 per child. For the same period, per capita spending on each 65+ adult was $15,636. The combined effect of population trends and federal spending patterns results in a double whammy fewer wage earners paying into a system serving an exploding population base.

increase fourteen-fold, exceeding 834,000. To get a relative sense of size, it would take a city as large as Detroit to house all the people older than 100 at the mid-century point. Concerns about aging are not confined within the borders of the United States. Worldwide, the current ratio between the young (under 20) and the old (over 65) is roughly 3:1. By 2050, that ratio will recalibrate to equilibrium at 1:1. At that point, older people will outnumber younger ones for the first time in recorded history.

Spending shifts
Consumption and spending patterns mirror changes in the Boomer demographic. Food away from home eats up a larger share of Boomer budgets when the need to stage a nightly family dinner with the kids goes away. Beer and wine top off the shopping list for those Boomers furthest from child-rearing responsibilities. Alcoholic beverage marketers can expect to tap into this bottled-up demand in the future as consumption levels are expected to maintain even as Boomers age. When it comes to home improvements, Boomers gravitate toward household textiles and furniture, outspending other segments. Staying connected to friends and families is a

Golden, global concerns

Not only is the U.S. population aging, the very old component is growing at an even faster rate. In 2000, there were approximately 72,000 centenarians in the U.S. By 2050, using mid-range Census Bureau estimates, that number will

10

Fall/Winter 2006

It is not uncommon to find a Boomer parent liquidating retirement savings or mortgaging their home to subsidize their childs college tuition. Despite years of denying themselves luxuries, they will indulge an offsprings demands for a car, expensive vacation or the latest and greatest in consumer electronics.

A perfect storm
The graying of America presents a number of questions such as the prospective impact of impending retirements on: 1. financial markets, as Boomers prepare to liquidate equity holdings and supplement retirement savings; 2. real estate markets, as Boomers prepare to trade down from large homes a flurry of sales may add momentum to the imploding housing market; 3. employment issues, as Boomers exit the workplace and the baby bust generation comes up 11 million people short of available openings; 4. consumer spending, as Boomers retire or are forced into second careers, part-time or lower paying positions; 5. healthcare system, as Boomers begin to experience the inevitable decline of physical vigor and the onset of chronic illnesses like high blood pressure and diabetes.

Boomer imperative, accounting for their 50% higher spending rate on cellular phones and pagers. Plugged in to electronic entertainment media, Boomer spending rates outpace the average for audio equipment, televisions and radios. The Boomer obsession with health and wellness extends to their extended familyincluding the four-footed, finned and winged members. Boomers willingly open their wallets for veterinary care and other pet services such as grooming and doggie day care.

An uncertain outcome
Some pundits ponder these issues and see the makings of a perfect storm capable of capsizing the U.S. economy. Others see the opportunity to extend the consumer use-life by extending the Boomer work-life from an arbitrary retirement at age 65, to an open-ended employment contract that keeps people working, and earning, for as long as they are physically able. See sidebar on Working Retirements on pages 8 and 9. Society has never been asked to solve a socioeconomic equation with so many unknown variables before. There simply have never been so many old people, living so long and staying so healthy. From a marketing perspective, one thing is certain. Older Boomers represent both a viable market and one too large to ignore. C i

Family finances
The Boomer relationship with money is complicated and convoluted. Shaped by parental stories of the Depression and WWII deprivation, Boomers learned to respect money, save money, value work over leisure and savings over debt. They look askance at credit issuers who mail out unsolicited cards to college students, in the hopes theyll be used. All in all, one could say Boomers are a fiscally conservative bunchexcept when it comes to their kids.

11

Global Household Product Sales:

Innovative Items Clean Up
Analyzing household products on a global scale involves a pretty big bucket of categories and countries. Whats Hot Around the Globe: Insights on Growth in Household Products, one in a series of ACNielsen reports on the fastest-growing products and category drivers, encompasses 66 markets and 29 household product areas. Findings surfaced by the study identified four major trends responsible for growth: new product innovation, health and wellness concerns, convenient delivery systems and developing country contributions. Aggregated 2005 sales growth remained consistent with other reports in the series covering food and beverages and personal care products, showing 4% growth.

by: Jane Perrin Communications ACNielsen Global Services Mark Chesney Communications ACNielsen Global Services

Regional results
On an upbeat note, there were several regional pockets of double-digit growth. Emerging markets posted a 13% increase and Latin America an 11% jump in household product sales, leading Asia Pacific, North America and Europe results. Romania and Russia, both classified as emerging markets, reported impressive category expansion rates of 25%. See chart 1. The complexity of dissecting regional and country contributions is illustrated by Asia Pacific, a sector comprising both emerging and developed markets, where the modest 4% gain in Japan blended with the momentum of a 14% jump in China. Turning from percentages to the absolute dollar metric, Asia Pacific achieved the largest dollar value growth overall at just under $U.S. 1 billion in 2005.

Chart 1: Global findings

Value Sales (U.S.$M) in Household Products* Global (66) Europe (19) North America (2) Asia Pacific (15) Latin America (12) Emerging Markets (18) 0 $50,000 $100,000 Global Growth in Household Products* (20042005) Global (66) Europe (19) 0% North America (2) Asia Pacific (15) Latin America (12) Emerging Markets (18) 0% 5% 10% 3% 6% 11% 13% 15% 4%

*Based on number of countries measured (Number of countries in parentheses)

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Fall/Winter 2006

Leading categories
Among the 29 categories studied, only nine grew faster than the global average, five paced the 4% rate; and the rest lagged behind. In prior studies, the fastest-growing categories were also among the smallest in dollar sales. That was not the case in 2005. Five categories in the fastest-growing top ninegarbage bags, household cleaners, air fresheners, insect control and fabric softeneralso registered among the top 10 categories in value sales. See chart 2.

Performance enhancers
On closer examination, specific sub-segments accounted for the strong overall showing in some categories. For example, battery-operated freshening systems powered up a 191% sales increase, and air sanitizing sprays vaporized the category with their supercharged growth in sales of 36%. Similarly, the power cleaning sub-segment of household cleaners (75%) and those products with oxidizing ingredients for stain removal (11%) wiped up the rest of the category. The cleaning system concept debuted by Swiffer, comprising a re-useable element such as a handle with disposable cloths, sponges or brushes, has been syndicated to other categories including bathroom cleaners, toilet bowl cleaners, dusters, air care and insect control. The jury is still out on whether or not the consumer uptake on systems and onestep, multi-use products will successfully cross category boundaries.

Chart 2: Only nine categories grew faster than 4%

Top Growing Categories 1. Abrasive Cleaning Pads 2. Disinfectants 3. Garbage Bags* 5. Household Cleaners* 6. Air Fresheners* 7. Insect Control* 8. Plastic Storage Bags 9. Fabric Softener* No. of Markets Category Growing/ Growth Rate Measured 0405 13 of 23 18 of 26 15 of 19 55 of 65 50 of 61 28 of 47 28 of 34 44 of 58 13% 13% 8% 6% 6% 5% 5% 5% 5% Category Growth Value $000 129,215 81,148 209,806 82,876 338,553 244,081 168,489 78,040 255,008

4. Laundry Stain Remover/Booster 30 of 37

Worthy of consideration
Consumer health concerns gave a shot in the arm to household cleaner and disinfectant category results. Both recorded higher than average growth rates, which may indicate a shift in the type of products used to clean around the world. While the discussion to date has surrounded growth rates, it is worthwhile to note that even though laundry detergent only expanded at the average pace, it represents the largest category overall and contributed more than any other category to global growth. continued on page 16

*Also among the largest 10 categories in value sales

The remaining top performers included abrasive cleaning pads, which shared top billing with disinfectants at 13%, laundry stain removers/boosters at 6% and plastic storage bags at 5%.

Chart 3: Top 10 categories and growth rate by region

Europe Total Household Care (0%) Brooms, Brushes, Mops (10%) Disinfectants (3%) Household Cleaners (3%) Laundry Stain Remover (3%) Garbage Bags (3%) Auto Dish Detergent (2%) Auto Dish Additives (2%) Plastic Storage Bags (2%) Batteries (2%) Waste Pipe Openers (2%) North America Total Household Care (3%) Disinfectants (23%) Laundry Stain Remover (12%) Garbage Bags (12%) Abrasive Cleaning Pads (7%) Toilet Care (7%) Kitchen Paper/Towel (7%) Air Fresheners (5%) Plastic Storage Bags (5%) Household Cleaners (5%) Aluminum Foil (4%) Asia Pacific Total Household Care (6%) Auto Dish Detergent (17%) Auto Dish Additives (16%) Abrasive Cleaning Pads (14%) Fabric Fresheners (10%) Air Fresheners (10%) Plastic Storage Bags (9%) Fabric Softener (9%) Batteries (8%) Garbage Bags (8%) Brooms, Brushes, Mops (8%) Latin America Total Household Care (11%) Abrasive Cleaning Pads (74%) Laundry Stain Remover (36%) Air Fresheners (16%) Bleach/Ammonia (15%) Plastic Storage Bags (14%) Fabric Softener (14%) Insect Control (13%) Aluminum Foil (13%) Toilet Care (12%) Household Cleaners (11%) Emerging Markets Total Household Care (13%) Fabric Fresheners (277%) Carpet/Rug Cleaner (37%) Waste Pipe Openers (37%) Air Fresheners (23%) Laundry Water Softeners (21%) Auto Dish Detergent (20%) Cleaning Cloths/Sponges (19%) Household Cleaners (17%) Fabric Softener (16%) Laundry Stain Remover (16%)

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Fall/Winter 2006

Stepping Outside Your Own Borders?

Use the right marketing information to make your expansion decisions.

Contact ACNielsen Global Services at 847-605-5904.

Global Services

Global Household Product Trends continued from page 14

Different strokes
The top ten categories within each region differ significantly, and none of the overall fastest-growing products shows up in every regional ranking. In Europe, only the leading category brooms, brushes and mopscharted 2005 results that bettered the global average. See chart 3, page 14. In North America, disinfectants killed off any competition in the top ten with a 23% annual growth rate. Only the laundry stain remover and garbage bag categories also posted double digit regional growth at 12%. Automatic dish detergents and automatic dish additives floated to the top of the Asia Pacific top ten list. In Latin America, every top ten contender boasted double-digit growth, but abrasive cleaning pad results scoured all comers with a whopping 74%. Laundry stain removers were a distant second in the line-up at 36%. The Emerging Markets winning entry, fabric fresheners, was in a class by itself with a 277% annual growth rate. Carpet/rug cleaners and waste pipe openers trailed with strong 37% increases.

Coming clean
Abrasive cleaning pads, the runaway category growth winner in Latin America, owes its phenomenal success to a single country: Brazil. This one country accounted for more than 95% of category sales, divided among three brands. Aggressive media support generated a 45% increase for the leading brand, with the number two and three brands each expanding by more than 200%. Global brand dominance was more diffused than in Latin America, with the top three brands comprising 65% of category sales and private label brands absorbing an additional 16%.

Hygienic habits
Germ-aphobic Americans kicked their cleaning standards up a notch, striving for a sanitizedversus merely clean household. This microbe-free goal resulted in a 23% regional category sales increase. As always, convenience played into consumer decision-making, explaining why 80% of the absolute dollar growth in U.S. sales (excluding Wal-Mart) derived from a 60% increase in wipes. Disinfectant wipes, measured in only five markets, mopped up consumer dollars on a global basis for a 35% growth in sales. Their counterpart, disinfectant sprays, expanded at an average 10% rate in 12 of 19 markets measured. Brand sales are so heavily concentrated in this category that three brands accounted for 71% of dollar sales on a global basis. Its worthy of note that although only 8% of sales can be ascribed to private label brands, their sales expanded by 26% in 2005.

Tying up sales
Garbage bag sales expanded at an 8% annual rate, twice the global tempo, with North America the sole region to wrap the year with double digit growth (12%). For such a seemingly mundane category, garbage bags represent an endless source of innovative benefits from anti-odor attributes to a host of tying options to stretch-and-flex fabrics that wont rip. New features, coupled with raw material cost increases for the oil-based resins used in manufacturing, combined to justify the higher retail prices that raised dollar value sales. Private label products captured a significant share of

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Fall/Winter 2006

garbage bag sales (40%), almost enveloping the 49% sales component contributed by the top three brands. Both private label and branded offerings increased by 8%.

Abuzz with potential

Insect control, the eighth fastest-growing category, owed its 5% expansion to Latin America, a region where bugs are more than a nuisance; they carry potentially harmful diseases such as dengue fever and malaria. Product refinements, such as electrically-powered items, command a price premium reflected in sales results. The North American no-growth scenario masks a 7% spike from Canada, possibly reflecting that countrys concern with the mosquito-borne West Nile virus. Private Label products barely show up on the radar screen in the insect control

Spotless outcomes
Both the pre-wash and in-wash products that compose the laundry stain remover category captured double-digit sales in three of five regions, with four of five regions ranking the category among the top ten. Tepid Asia Pacific results of 1% growth dampened the overall category average. Oxi products cleaned up in the category, spreading in seven of the 10 markets measured at an 11% overall rate. No-wash stain removers, including pen delivery systems, achieved explosive sales of 200% over the prior year. Key manufacturers virtually own the category, with the top three brands accounting for 72% of sales.

Chart 4: Private Label growth by category

Product Area 1 Aluminum Foil 2 Plastic Storage Bags* 3 Garbage Bags* 4 Kitchen Paper/Towel 5 Cleaning Cloths/Sponges 6 Auto Dish Additives 7 Plastic Wrap 8 Auto Dish Detergent 9 Bleach/Ammonia 10 Abrasive Cleaning Pads* 11 Laundry Water Softeners 12 Toilet Care 13 Brooms, Brushes, Mops 14 Fabric Softener* 15 Batteries 16 Hand Dish Detergent 17 Household Cleaners* 18 Disinfectant* 19 Oven Cleaners 20 Laundry Starch 21 Carpet/Rug Cleaner 22 Laundry Detergent 23 Air Fresheners* 24 Laundry Stain Remover* 25 Fabric Fresheners 26 Furniture Polish 27 Waste Pipe Openers 28 Floor Polish/Wax 29 Insect Control*
*Fastest Growing Categories Manufacturer brands growing faster than Private Label

Private Label Share 43% 41% 40% 28% 26% 22% 19% 18% 17% 16% 16% 12% 11% 11% 10% 10% 9% 8% 7% 7% 6% 6% 6% 5% 5% 5% 4% 2% 2%

Private Label Growth 0% 8% 8% 5% 7% 1% 4% 4% 4% 4% -18% 4% 18% 4% 3% 5% 5% 26% 5% -16% 6% 1% 1% 16% -5% 6% 13% -12% -4%

Manufacturer Growth 3% 3% 8% 3% 1% 4% -3% 4% 5% 15% 6% 2% 1% 5% 2% 4% 6% 12% -1% 0% -4% 4% 6% 6% -8% -4% 2% -2% 5%

Shipshape results
Convenient, effective household cleaners were swept off shelves by tidy consumers, with Emerging Market and Latin America households setting the pace. The two attributes dominating product selection were convenience and effectiveness. Major multinationals entered the power cleaning competitive fray, where sales velocity reached 75% last year. Sprayons earned high marks on the convenience criteria, and at 11% represented one of the fastest-growing segments. Product proliferation served to modulate the trend toward brand dominance observed in other categories, with the top three branded household cleaners garnering 43%, private label 9% and other products 48% of sales.

Something in the air

Air freshener sales caught a favorable updraft in Emerging Markets, Latin America and Asia Pacific, where 2005 consumption increased by 23%, 16% and 10%, respectively. Recent new product entries have kept sales aloft and in the top-ten tiers for four of five regions studied. Battery air fresheners, unveiled just last year, saw 2005 sales rocket into the stratosphere at a 150% rate. Air sanitizers eliminated odors and obstacles to consumer trial, hitting a respectable 36% growth number. Air freshener candle sales, reinvigorated by the introduction of scented oils, achieved an 8% growth rate, double that of the global average.

17

category with a miniscule 2% of sales; the top three brands and all others split the rest of the category sales evenly at 49% apiece.

Commodity concerns
While private label offerings earned a 12% share of global household product sales, that penetration level underperformed the norm reported in the ACNielsen 2005 study, The Power of Private Label. However, the private label expansion velocity equaled that of manufacturer branded household products (4%), so private label neither gain nor lost ground in relative terms. Private label share and growth figures varied widely by category, from a 43% share in aluminum foil with zero growth, to an 8% share in disinfectants with a 26% growth rate. Regional considerations such as economic development and lifestyles influenced product uptake and utilization figures. See chart 4, page 17.

In the bag
Plastic storage bag sales did slightly better at 5% than the global all-product average, with pockets of strength in Latin America (14%) and Asia Pacific (9%). Interestingly, private label sales for this category (8%) bested manufacturer brand performance of 3%. The private label preference was clearly strongest in Europe, North America and Emerging Markets, but picking up in Asia Pacific.

A soft touch
New product formulations, improved distribution, increased advertising penetration and price reductions contributed to the fabric softener category sales increases in Emerging Markets (16%) and Latin America (14%). Of note, in Mexico, products such as Downy Libre Enjuague (RinseFree) reduced the hassle factor for consumers who hand wash by eliminating the rinse step. The top three brands occupy the number 1, 2 and 3 positions across the majority of markets studied and together claim 68% of category sales.

Home basics
Household products weighed in with overall global growth rates consistent with other fast moving consumer product areas. There is no denying the influence of Emerging Markets as a factor in household product category growth, alongside a continuous stream of product innovations that keep consumers engaged and prices on the rise. Uniformly, consumers across the world gravitate to products that deliver against two key benefits: value and convenience. C i

About the Study

This survey of Household Products included 66 markets around the world and 29 categories. These 66 markets account for more than 90% of the worlds GDP and over 75% of the worlds population. The markets have been grouped regionally into five areas: Asia Pacific, Emerging Markets, Europe, Latin America and North America. For the purposes of this study, Mexico has been included in Latin America. ACNielsen analyzed data across 29 Household Products categories, comparing year-ending data from December 2005 with December 2004. Within these 29 categories, ACNielsen reviewed subcategories of products, which for the purposes of this study are called segments. This study looks at some of these key segments to understand the changes impacting the categories. New to the study this year is the inclusion and analysis of private label products within each category. ACNielsen Global Services intends to include private label information in future reports on product areas, to show the impact of both manufacturer and retailer products as drivers of consumer purchasing behavior. As with Global Services other studies, this report is based on purchasing information from retailers in grocery, drug and mass merchandise outlets and generally excludes kiosks or vending machines. In a few markets, sales from convenience stores may be included. Within the United States, data from the ACNielsen Homescan consumer panel service has been included to provide a total market read that includes Wal-Mart information.

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Fall/Winter 2006

Identify and Target High Opportunity Beauty Care Consumer Segments

Look at the world of beauty care through the eyes of a consumer and what do you see? A world filled with choice. As new products and efficacy claims proliferate and the retail landscape becomes increasingly fragmented, marketers are challenged to find a complete measure of their brands performance and identify high opportunity consumer segments and new product opportunities. ACNielsens Beauty Care Panel provides the most complete, accurate and actionable view of beauty care consumers across all categories and channels. From massmarket to high-end/prestige brands and from supermarkets to specialty beauty stores, the Homescan Beauty Care Panel provides data at the most granular level to help you effectively target consumers and maximize sales opportunities in these channels.

The Beauty Care Panel will help you:

Identify high opportunity distribution channels and quantify the sales opportunity of gaining distribution there. Identify white space in the marketplace and quantify new product development opportunities. Evaluate new product performance and quantify cannibalization. Target high opportunity consumers and monitor your performance across all channels.

The Beauty Care Panel gives you:

The most comprehensive measurement of Beauty Care purchase behavior across all channels in 32 beauty care categories, including: Make-up/Color Cosmetics Facial Skin Care Hand & Body Skin Care Self-Tanning Bath & Shower Mens & Womens Fragrance The Spectra BehaviorScape Framework, which helps you increase the effectiveness of your marketing dollars.

To learn more about the Beauty Care Panel, please contact your ACNielsen Client Service or Retail Services representative or visit our web site at www.acnielsen.com.

Tune Into Teens:

Test Your Teen Aptitude
If youve never visited YouTube.com, listened to Gnarls Barkley or used the acronym ROTFL while instant messaging, then find yourself a teenager and get educated. Todays younger generation, typically called Millennials (born between 1980 and 2000), represent a group of wellconnected, over-stimulated, media-savvy consumers who are open-minded, optimistic and well-educated. They represent the future. Tune in to what drives this very diverse group of consumers and you will not only score points on the uber-cool chart, but will also deliver messaging that resonates with the world they live in.

by: Tom Pirovano Retailing Insights ACNielsen

So how did you do? If you were able to answer 8 out of the 10 questions, then you are either: a) the parent of a teenager, b) an actual teenager, c) a teenager wannabe, or d) a superbly in-sync teen marketer. However, if you are like most of us and had some trouble, then it is time to brush up your knowledge of this influential and lucrative market segment.

A moving target
Teens are a moving target. They were born and raised during a digitized age where change happens rapidly. Born into the MTV generation where the rally cry was I want my MTV , they have learned that what they want, they get. In their world, everything is immediate. From instant messaging to microwave meals, instant gratification is their mantra. Millennials are the first generation of true multi-taskers, easily balancing e-mail, text messaging, music downloads, homework and a strict schedule of sporting and other activities, simultaneously. This generation is more adept at communications than any of its predecessors. The wireless Internet is their central nervous system, and simply put, they just dont need much else. If theyre that connected, then connecting with teens should be simple, right? Not necessarily. While it may seem easy to develop a systematic marketing plan (if teens = computers, then website advertising = success), connecting in the right places at the right time to the right audience is a challenge at best.

Test your teen aptitude

If you are thinking that teens do as teens did, then think again. While it is true that all teens go through the same growing pains, history tells us that each generation leaves behind its own distinctive mark (see U.S. Teens Through the Decades on page 24). To test your knowledge of todays teen market, see if you can answer the following questions: 1. Who is one of the lead singers for the Black Eyed Peas? 2. Who said, Dont be jealous that Ive been chatting online with babes all day? 3. Who hosted MTVs 2006 Video Music Awards? 4. What is an emoticon? 5. Who is known for the phrase, Thats Hot? 6. What is the starting price for a Tracfone? 7. Billie Joe Armstrong is the lead singer of which band? 8. What is Naruto? 9. Who is Shiloh?

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Fall/Winter 2006

Answers: 1. Will.I.Am or Fergie; 2. Kip Dynamite; 3. Jack Black; 4. Emotion Icon =) made using punctuation or type; 5. Paris Hilton; 6. $29.99; 7. Green Day; 8. Japanese anime series; 9. Daughter of Brad Pitt and Angelina Jolie; 10. Emma Nelson, Jimmy Brooks.

10.Who are two main characters on Degrassi the Next Generation?

Equally different
All teens are not alike, and grouping them together could be a roadmap for disaster. Take, for example, a typical eighth grader compared with a college student. While Disneys High School Musical is all the rage for one, the other is much more engaged by the latest drama on MTVs The Real World. And dont discount the hugely important gender differences. Anybody with kids knows how different boys are from girls. Therefore, when analyzing teens, boys and girls need to be viewed separately. For example, girls believe that they are more grown-up than boys, and spend their money on very different things, such as jewelry and clothing, while boys interests trend toward games and electronics. However, both spend money on music and movies, which increases as kids shift from the 1214 age bracket to the 1517 one. It is also important to realize that whats hot can be polarizing, because for each teen fad with adoring fans, there is a subset of teens who simply hate it. Finding a teen idol as a spokesperson for a brand could divide an audience. For each loyal fan of Justin Timberlake, there is another teen who simply abhors him. Interestingly, this love/hate relationship seems to be more common with the beautiful people than with stars like John Heder or Jack Black, who garner more universal appeal.

Stay ahead of the curve

For the most part, young people take their cues from those a few years older than themselves for trends. This may be why the Harry Potter books and movies which feature teens have their strongest appeal to younger children. Or why movies with a PG-13 rating are more enticing to teens. Or why Paris Hilton, who is in her mid-twenties, is a fashion icon for many teenage girls. Whether the new fashion is Crocs or Lacoste, whether the latest video craze is Nintendo DS Lite or GameTap, you can be sure of one thing: whats hot today is not tomorrow. Rather than focusing on whats hot right now, it is more important to develop tools and approaches to monitor and anticipate changes. For example, tap into the fickle world of teen trends by checking out websites such as Billboard.com for the most popular ringtones, which btw, as of this writing, is the Nintendo Super Mario Brothers Theme by Koji Kondo, or the hottest digital songs (Fergies London Bridge), or number one album (the self-named Danity Kane), or top single (Justin Timberlakes SexyBack). Another popular teen website is MySpace.com, where teens connect with others, blog, rank music, and much more.

Cash or credit
The fact of the matter is, teenagers represent a powerful buying force in the U.S. market. According to the 2005 Roper Youth Report, kids are earning $29.20 per week, two dollars more than in 2004, with 29% of their money coming straight from parents. Chores (37%) and gifts (23%) account for other popular sources of teen income. Nearly one-third (30%) of 817-year-olds say they are involved in making family purchase decisions, up four percentage points from last year, as parents increasingly turn to their kids for advice on what to buy. Teens also indicate that they influence purchase decisions on everything from cell phone service to the right cable provider. For better or worse (probably the latter), teens are also enamored by the magic of credit. According to the Jump$tart Coalition for Personal Financial Literacy, an educational organization, nearly a third of high school seniors reported having a credit card of their own or one co-signed by a parent.

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Fall/Winter 2006

Products with appeal

If you live in a household with a teen, get ready to stock up on deodorants, grooming aids, acne remedies and other personal care products, instant meals and school suppliesin that order. According to information from ACNielsen Homescan, categories such as these are greatly overdeveloped for the teen market. While that may not come as a complete shocker, consider the fact that many of the brands that have risen to the top of this typical list are those that cater to this trend-conscious segment by offering something new, different or cutting edge. Take for example Unilevers AXE deodorant for men. Appealing to the raging hormones of boys (and young men), the product comes complete with its own risqu website where the AXE effect promises to attract the opposite sex when used responsibly. AXE now generates $269 million per year in the food, drug and mass merchandiser channels (including Wal-Mart).

Another product high on the dollar volume index scale purchased by households with teens offering a unique edge is Hersheys Ice Breakers gum that explodes with a burst of mouth-freshening extra mint taste. Cutesy advertising featuring Hilary and Haylie Duff appeals like a gem to their target audience. While these products get high marks for originality, there is a tremendous untapped opportunity to cross-merchandise. For example, most cereals are marketed to either young children or adults, but not teens. Offering a free iTune download on the package would certainly have more appeal to this audience than would an action figure from the latest kid movie.

Chart 1: Boys spend more on video games than girls

LifeStyle Cosmopolitan BehaviorStage Centers Male 1214 Male 1517 Female 1214 Female 1517 Total 253 89 103 2 114 Affluent Suburban Spreads 234 144 45 4 107 Comfortable Country 202 113 42 30 97 Struggling Urban Cores 205 178 129 26 138 Modest Working Towns 215 97 38 8 92 Plain Rural Living 129 101 51 5 72

Total 202 120 62 13 100

Source: ACNielsen Homescan & Spectra, Penetration (Population)/% Penetration Index, All Channels/United States, BehaviorScape Framework.

High Consumer, 120 149

Very High Consumer, 150+

Chart 2: Girls spend more on clothes than boys

LifeStyle Cosmopolitan BehaviorStage Centers Male 1214 Male 1517 Female 1214 Female 1517 Total 56 50 186 97 97 Affluent Suburban Spreads 47 52 132 173 101 Comfortable Country 36 67 127 132 90 Struggling Urban Cores 86 82 122 123 103 Modest Working Towns 56 32 187 135 101 Plain Rural Living 36 63 114 223 108

Total 50 58 141 156 100

Source: ACNielsen Homescan & Spectra, Penetration (Population)/% Penetration Index, All Channels/United States, BehaviorScape Framework.

23

Aligning the cross hairs

For marketers, targeting households with teens is just a start. For some products in which consumption is driven by individuals, however, a more granular approach is necessary. Using Simmons Teen National Consumer Survey (NCS) data, Spectra has developed a Teen Targeting Solution that helps to understand the teen consumer and identify the best way to reach and locate teens in their neighborhoods. The NCS Simmons Teens Survey is a comprehensive survey of American teens aged 1217. It provides single-source measurement of major media, products, services and indepth consumer demographics and lifestyle/psychographic characteristics. Fueled by this survey, the Teen Targeting Solution allows marketers to more precisely market their brand to the teenager who buys the product. The importance of analyzing teens by both age and gender is illustrated in the following example. Young males ages 1214 are twice as likely as the average teen to spend their allowance on video games. Interestingly, teens in Struggling Urban Core neighborhoods are also 38% more likely to buy.

U.S. Teens Through the Decades

1920s 1910s
Youth Crisis Kids spending too much on gambling and watching movies U.S. Boy Scouts and Campfire Girls founded World War One Newsieskids selling newspapers Many teens worked vs. attending school The Charleston, fox-trot and shimmy (dances) Flappers Flagpole sitting Marathon dancing Jazz Emily Posts manners book First peanut butter & jelly sandwiches First Miss America The Depression Fair Labor Standards Act limited the age of child laborers to 16 Roosevelts Civilian Conservation Corps Long-playing phonograph records The golden age of radio 250,000 teens living on the railroad Swing music Board games Hats were mandatory for men First drive-in theaters

1930s 1940s 1950s

Birth of rock & roll First hula hoops The word teenager Brylcreem was coined (hair tonic) World War 2, rationing, Jack Kerouac, beatniks victory gardens Marilyn Monroe, Elvis Many jobs available to Presley, James Dean teens during WW2 Telephone booth stuffing Seventeen magazine founded in 1944 3D movies The jitterbug (dance) Poodle skirts, saddle shoes, letter sweaters Term juvenile delinquent coined Car hops (before drive-throughs) Zoot suits for young men, slacks for women Sideburns Largest number of teen marriages after WW2 Swallowing goldfish Kilroy was here.

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By contrast, female teens are much more interested in the fashion scene, spending far more than average on clothing. Thus, marketing programs designed only for the household or for the adult consumer will not offer the most effective way to reach heavy teen consumers. See charts 1 and 2, page 23.

Zooming in
Once the teen consumer has been identified, direct marketing can begin. Using the Spectra system, a targeted profile of the Brand A teen consumer is devised to reveal what magazines they read, what TV shows they watch, what websites they surf, how they spend their free time and where they shop. In addition, subtle neighborhood differences are also exposed. For example, in the upscale urban areas characterized by Cosmopolitan Centers, teens are more likely to be achievers. They have good access to home computers, are savvy with money, and are less likely to watch TV. Teens in more downscale areas, Struggling Urban Cores, are more likely to access the Internet at school, and are very music oriented. They know what songs are in the Top 10, wear clothes that reflects their musical tastes and are likely to characterize themselves as rebels.

Understanding the unique demographic nuances of teen consumers allows the execution of a precise marketing strategy among all the consumer segments that purchase the brand. In addition, not only do teens represent a large share of some products volume, they also are the next generation of consumers who will fuel growth for all brands in the CPG industry. A successful marketing campaign to teens will provide the foundation for brand loyalty and growth among this generation well into the future.

The next big thing

Keeping abreast of the next big thing on the horizon is critical. Think back to when the iPod Nano was introduced in September 2005 and the Video iPod in October 2005. At that time, Apple discontinued their older models, but several mainstream retailers continued to advertise these models while selling the incompatible accessories. Only a very few nimble retailers were quick to align themselves with the new iPod models by including photos and information on the front page of their websites.

1980s 1960s 40% of the U.S.

population was under 20 years old in 1965 Woodstock Protests, civil rights, Vietnam British invasion, Beatles Bell bottoms, mini skirts, turtlenecks The twist (dance) Love beads Surfing Tie-dyed shirts Bouffant hairdos, hair ironing, Afros Go-go boots Hippies, counter-culture or alternative culture Recreational drugs

1970s
Voting aged dropped to 18 The draft ended 8-track tapes Streaking Feminism Punk rock Mopeds Platform shoes, earth shoes Disco First video games Rocky Horror Picture Show Ecology

MTV goes on the air Latchkey kids Jelly shoes Video arcades Rubiks Cube Boom boxes Rap, hip-hop, break-dancing Hacky sack Trivial Pursuit Madonna, Miami Vice, Michael Jackson The Breakfast Club, and other John Hughes movies Big hair Live Aid Music on CDs Mullet haircuts

1990s
The Worldwide Web, online chat rooms Beanie babies Piercings, tattoos Boy bandsBackstreet Boys, N Sync, O-town, 98 Degrees Grunge The Macarena Extreme sports Christian music Seinfeld, Friends, Simpsons DVDs

iPod, MP3 players Mobile phones for teens, text messaging, camera phones Xbox, Playstation 2, Gameboy Rubber wristbands Reality TV shows Tivo, DVRs MySpace.com Low-rise jeans Napoleon Dynamite Sports gambling, fantasy leagues Body sprays September 11th

2000s

whats next? 25

While we can only speculate about what will happen in the future, simple observations can be made to help keep in tune with what teens are buying and what they are interested in. A few recommendations include: track what kinds of gift cards teens give and receive and find out what they redeem; visit popular teen web sites such as MySpace.com and see who advertises there; view videos posted on YouTube.com; check out iTunes and discover the top podcasts. Look for ways to connect with the iPod and podcasting craze, which shows no sign of slowing;

learn about Zune, Microsofts answer to iPod. This may be the next hot device; be careful to speak their language and dont use terminology that is old news (da bomb or bling-blingnow just bling); use bright colors and splashy graphics to complement their fast-moving lifestyles and personalities. The bottom line is this: understand your audience. In order to make a difference, you have to think differentlyeven if that means stepping back (or perhaps forward) in time to relive those dreaded, wonderful teen years. :) C i

Wouldnt it be nice to know why a customer purchased your

Instant Consumer Feedback on Your New Products

productjust after they made the purchase? ACNielsen Homescans New Product Alert provides unique insights to understand the motivation behind purchases of new products. For the first time, you can reliably quantify the factors influencing the purchase of your new products almost instantly after trial. Knowing who uses the product, how satisfied they were and whether they would buy it again give you the insight necessary to ensure new product success.

Instant Surveys
Homescan panelists with online access transmit their purchases via the Internet. Purchase data is instantly interrogated for defined UPCs of interest. If any of these products are purchased, a brief online survey pops up asking the panelist to respond immediately. No other research method allows you to survey early adopters of specific UPCs. Since households transmit purchases the same week they shop, recall effect is virtually eliminated. The standard reasons for trial question provides normative benchmarks to evaluate the effectiveness of your marketing plan. Custom questions can be used to address specific marketing issues. To learn more about New Product Alert, please contact your ACNielsen Client Service or Retail Services representative or visit our web site at www.acnielsen.com.

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Fall/Winter 2006

Individual Targeting Solutions for Teens

All teens are not alike. Individual purchasing behavior, media exposure, attitudes and opinions can vary greatly by age, gender and lifestylesespecially when it comes to categories such as snacks, beverages, consumer electronics, apparel and personal grooming products. Understanding the unique nuances of your teen consumer allows you to execute a marketing strategy among all the consumer segments that purchase your brand. In addition, not only do teens represent a key driver for many brands, they also represent the next generation of consumers who will fuel growth for all brands in the CPG industry. A successful teen marketing program will provide the foundation for brand loyalty and growth among this generation well into the future.

The Simmons Market Research Teen Survey is a comprehensive survey of American teens aged 1217. It provides single-source measurement of major media, products, services, and in-depth consumer demographic and lifestyle/psychographic characteristics. Fueled by this survey, the Teen Targeting Solution allows marketers to more precisely market their brand to the teenager who buys their product.

The Teen Targeting Solution helps you:

Evaluate brand opportunities among different teen consumer segments for household products. Compare teen profiles to the adults consumption for products purchased for individual consumption. Create a teen profile for your brand. Identify media outlets to reach your teen consumer. Locate teens in the neighborhoods they live and go to school. For more information, please contact Sean Jafar at sean_jafar@spectramarketing.com.

Solution
Using Simmons Market Research Teen Survey, ACNielsen Homescan & Spectra has developed a Teen Targeting Solution, which helps you understand the teen consumer, identify the best way to reach teens and locate teens in their neighborhoods.

Employee Empowerment:
The Key to Capturing Productivity
No discussion of productivity would be complete without a reference to employee empowerment and the policies and tools that make it possible. Any number of factors play into empowermentfor example: whether it has been embraced as a corporate value and validated from the CEO office on down; whether policies and procedures exist to define and shape empowered behaviors; whether review systems capture, measure and mete out rewards for taking action; whether support mechanisms are in place to initialize or enable field decisions; whether information technology facilitates ready access to needed data, be it about product, pricing, distribution or other issues. For each employee to serve as a self-actualized unit, there must be organic, seamless connectivity to all parts of the organization.

by: Russell Evans Business Technology Solutions ACNielsen

Few jobs require as much independent thinking and employee empowerment as sales. Empowered salespeople represent the forward line, the guardians of differentiation, the customer touchpoint in every marketing equation. They are the ultimate players in the so-called knowledge economy. Unlike employees in silo or niche areas, salespeople need to reach out and connect disparate information from diverse sources in quick time to effectively address customer needs. Their knowledge base reaches across the enterprise from an understanding of customers to products and services, processes and systems, the competitive set, and the arcane combination of psychological and social skills necessary to close a deal.

Technology to the rescue

Ask any successful salesperson, and theyll tell you that timely, accurate information represents the best armor theyve got in the profit wars. The bulletproof concept resonates with every salesperson who has ever had to sell-in a new product, argue a price increase or stave off a competitive threat. To be effective in todays hyper-charged, customized, store-levelfocused retail environment, salespeople need a virtual arsenal of presentations capable of being refreshed with current data at the touch of a button. That need spawned the fast-track development of ACNielsen Answers Presentation Builder, a best practices solution that automates and standardizes the development of data-driven presentation decks. Custom-designed to your unique specifications by ACNielsen consultants, the application automatically populates templates using the data calculations and benchmark metrics you choose. The look, feel, reporting style and approach are exclusive to your company

Get connected
In the knowledge economy, everything revolves around the concept of connectivity, and Metcalfs Law serves as the behavioral guideline.

Metcalfs Law: The value of a computer is proportional to the square of the number of connections it makes. 28
Fall/Winter 2006

29

and readily accessible via any Internet connection when and where you want. Last minute changes and updates become a mere matter of logging on instead of experiencing logistical logjams.

Presentation power
In the fast-moving consumer goods industry, presentations are a fact of life. A truly great deck can facilitate a contract, substantiate a strategy and move a group toward consensus. Secondary benefits that accrue from presentations include the opportunity to enhance the corporate brand image and values with key audiences like customers, prospects and business partners. Maintaining and nurturing the corporate brand has become a top priority of global companies because it represents one of the few points of differentiation that cannot be duplicated. Establishing a consistent presentation format and methodology ensures that the corporate brand is communicated correctly, and in alignment with brand standards, throughout the organization.

Take the case of Dan, a typical manufacturer sales representative serving the Midwest region. Dan needs to prepare a 20 slide presentation deck summarizing the most recent performance in the Chicago market. Without Presentation Builder, Dan is looking at more than 7 hours of grinding work; with Presentation Builder, he can finish the job in under 7 minutes. See chart 1. Best of all: Dans employer just saved over $1,000 in underutilized personnel time that can now be deployed against revenue-generating tasks.

Chart 1: Time saved using Presentation Builder

Without Presentation Builder 1. Determine which slides need to be built 2. Create calculations 3. Determine data requirements by slide 4. Design slide and manipulate data into presentation format 5. Perform final edit/run/testing of deck 6. Save final deck on hard drive/off to client meeting Time x Task (minutes) 50 8 200 130 40 1 (hours): 7:09 With Presentation Builder 1. Log into ACNielsen Answers portal 2. Select appropriate deck template within Presentation Builder 3. Submit a request new deck with Chicago market 4. Request email notification when complete 5. Save final deck on hard drive/off to client meeting Time x Task (minutes) <1 1 2 <1 2 Total Time (minutes): 7 Time Saved: 7+ hours Total Time (minutes): 429

Productivity booster
Businesses run on a 24/7 basis in a global economy, so every minute off-line translates into a minute behind the times. Productivity aids help compensate by enabling people to log on, tune in and reach out from virtually any location. Recognizing the need to stay connected, designers scoped ACNielsen Answers Presentation Builder as a web-based tool that delivers presentation decks directly to a laptop or desktop. By automating repetitive and time-consuming tasks, Presentation Builder frees up valuable personnel for invaluable face-to-face time with clients and other high value-add activities. Great-looking reports rich with timely information and telling benchmarks can be generated by salespeople who have no prior knowledge of PowerPoint or the ACNielsen access and analysis tool.

Multiply that number by the number of Dans in the organization, and the number of presentations each Dan creates in a year, and the results will show up on the top and bottom lines as you reap the benefits of improved customer relationships, better store-level execution and more direct sales time.

The cure for sales ailments

Empowerment tools like Presentation Builder represent an effective antidote to three of the top impediments to sales success: inappropriate use of technical resources, inability to articulate value, and lack of an organized sales process.

Productivity calculator
How much time does your sales organization spend rebuilding standardized reports for individual clients? You might be surprised at the hidden savings that can be recovered by automating this time-consuming task with Presentation Builder.

continued on page 32

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The Answer for Busy Professionals

Standardized client-ready presentations are a fundamental necessity in todays business environment. Countless hours are spent building presentations. ACNielsen announces a way to reduce your presentation building time significantly. Now you can focus your time on adding value to your organization with bottom-line results instead of countless hours creating presentation decks each month. , Presentation Builder, delivered through ACNielsen Answers eliminates the time-consuming task of pulling syndicated data content into the right format for client-ready presentations. ACNielsen Business Technology Solutions consultants can automate the creation of your standard business presentations seamlessly. This intelligent solution uses advanced proprietary processes to effortlessly create your presentation decks. You design the presentation format and standard data calculations, and our expert consulting teams do the rest. Accessible from any Internet connection via ACNielsen Answers, your presentation data is delivered directly to your desktop. This time-saving solution is available when you need it, where you need it.

ACNielsen Answers Presentation Builder allows you to:

Automate the process of creating standard business presentations. Gain web-enabled access anywhere, anytime. Standardize the format in which content is presented to your customers. Free up resources from the routine task of building presentation slides. Increase your productivity by having online access to key information to manage your business.

One Click. One Place. All the Answers.

Contact your ACNielsen representative for more information, call 800.988.4ACN or visit our web site at www.acnielsen.com.

Employee Empowerment continued from page 30 Even first-time users can immediately understand the Presentation Builder program and realize efficiencies from the initial log-on without constantly referencing the built-in help advisory. Value can be expressed any number of ways, from a rapid ROI calculation on the spend, to anticipated increases in product movement, market share, promotion penetration or distribution reach. Once the most important value levers for the customer have been identified, they become part of a template that ensures consistent data presentation and review within and across accounts. Once the sales group has agreed on client metrics and presentation flow and defined the desired templates, all a sales rep needs to do is update a deck with fresh data before a customer meeting. All the time-wasting decisionswhich data to show, how best to express them, the most highimpact way to illustrate them, what comparisons will be most powerful, what competitive information to feature have been thought through and programmed in. That way, each meeting, each rep, each contact, each account, shares a consistent, detailed view of their business. This self-organizing feature proves especially helpful in global situations, automatically synchronizing data for easy aggregation.

Getting organized
Finally, we come to the issue of organization, the bane of every salesperson who has ever juggled a cell phone, laptop, PDA, customer file and call sheet while sitting in the airport lounge or reception area. There are no issues with misplacing data or crashing a computer. Presentation Builder reserves critical information on the server, accessible via the Internet, so nothing goes missing or gets lost in translation.

Power to the people

Youve heard it a million times: people are our most important asset. Smart companies are those that act like it, empowering employees by putting the right technology, tools and training in place to guarantee success. C i

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Open your window to collaborative business intelligence

One Click, One Place, All the Answers. Spend less time searching for and organizing information and make fact-based decisions on category business planning, forecasting, item assortment, pricing, promotional programs, space management and replenishment. ACNielsen Answers revolutionizes the way you make business decisions by addressing your most pressing business issues in a user-friendly, intuitive web-based environment. Access business-critical information in a web-based environment Review personalized market information reports, headlines, alerts and presentations over the Internet. Gain access to ACNielsen Answers business-oriented solutions, such as CBP Category Business Planner, Sales Management Planner, and Homescan & Spectra content. ACNielsen Answers enables you to access and analyze mission-critical information to make educated, timely decisions offering you the right information, in the right format, at the right time, so that the right decision can be made in a repeatable manner. to make educated, timely decisions. Direct marketing and merchandising activities with on-the-fly, fact-based solutions. Grow revenue, reduce costs of business and improve your competitive position by converting all types of consumer information into valued intelligence. Drive consumer-focused actions anytime and anywhere.

ACNielsen Answers gives you:

Personalized news headlines answering key questions on your categorys performance. Hyperlinks giving you drill-down, detailed information on your category. Access to categories defined by a specific retailerboth in terms of the category itself and the retailers trading areas. Access to personalized, proprietary internal content and links to other third-party content. Streamlined delivery of information and insights in a timely manner. To learn more about ACNielsen Answers, please contact your ACNielsen Client Service or Retail Services representative or visit our web site at www.acnielsen.com.

ACNielsen Answers helps you:

Address critical business issues relating to brand/sales management, category management, consumer management and retail management. Make better decisions, faster, by collaborating with your service team and using best demonstrated practices.

Gas Price Hikes Put Brakes on Spending

Crude oil prices ignited again this summer, surpassing the $70 a barrel threshold and pushing prices at the pump to an inflammatory $3+ per gallon. Factors like market speculation, refinery capacity shortages and a pronounced decline in spare global oil production converged, leaving cashstrapped consumers scrambling to adjust budgets and spending accordingly. To gauge the nature and depth of the consumer response to fuel-flation, we repeated a survey of ACNielsen Homescan Panel members that was fielded twice in 2005 (June/July and October/November periods). The objective was to provide manufacturers and retailers with a window on consumer shopping and spending habits when they felt the pinch at the pump.

by: Todd Hale Thought Leadership ACNielsen Homescan & Spectra

(68%) of respondents adopted this tactic, a seven percentage point increase from June/July 2005, maintaining the upward trend from October 2005 results. See chart 1. Gas gouging really took a bite out of restaurant food sales (39% of respondents said they were eating out less) and general entertainment spending (39% said they were doing more things at home). These findings proved consistent with published reports about softness in some casual dining restaurants.

Encourage cocooning
Setting politics aside, it is clear that unrest in the Middle East will continue to put a crimp in the oil pipeline, and high fuel prices that convert into higher transportation and home heating/cooling costs are here to stay. Manufacturers and retailers will greet this with mixed reviews. On one hand, manufacturing, packaging and shipping costs will rise apace, given their reliance on petroleum-based products. On the other hand, when consumers cocoon, dollars once spent dining or playing out will be diverted back to the grocery, club, drug and mass merchandiser channels.

Think ahead
As with last years surveys, consumers geared up for the long haul by doing some advance planning, combining errands and trips to conserve gas. More than two-thirds

Chart 1: Households combining trips, eating out less & staying home
Impact higher gas prices had on driving & spending habits Combine errands/trips Eat out less Do more things at home Buy larger, economy size Shop more at warehouse clubs Shop more on Internet Use public transportation more June/July 05 61% 31% 30% 10% 9% 5% 3% Oct. 05 68% 35% 33% 9% 7% 5% 3% June/July 06 68% 39% 39% 11% 10% 9% 4% Chg vs yr ago +7 +8 +9 +1 +1 +4 +1

Price pressures
The key will be to hold the line and avoid the temptation of passing along cost increases directly to the consumer in the form of higher prices. Consider the fact that in the span of a single year, 12% more consumers (almost half of all respondents) stated they were reducing spending to either a small or great degree. Clearly, price sensitivity enters the equation when consumers evaluate spending trade-offs. continued on page 36

Source: ACNielsen Homescan & Spectra Panel Views Surveys

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Gas Price Hikes continued from page 34

Chart 2: Dollar stores decline, Club & Supercenters increase

% household shopper penetration Warehouse 50 50 52 51 Supercenters* 58 61 59 Dollar 67 65 86 83 83 95 Mass Merch 87 85 100 99 99 2001 2005 mid-2006

Drug

Grocery
Source: ACNielsen Homescan & Spectra *Includes Kmart, Target & Wal-Mart Supercenters

Value pricing assumes even more importance in this volatile climate, and promotions touting at-home family fun nights, home-cooked family meals and at-home entertaining concepts accelerate to the front of the strategy options.

Changing habits
Consumers also cited other budget-stretching adjustments to their shopping and purchasing patterns. Among them are patronizing supercenters to buy in bulk at lower unit prices, clipping coupons to capture available savings, and switching to less expensive grocery brands. Premium and mid-grade gas patrons downgraded to regular. Warehouse club stores and Internet shopping options both benefited from the desire to keep the lid on the gas tank and spending.

When queried about how changes in their financial picture affected their job, results were alarming. Respondents cited negative outcomes across the board, related to more stress at home. They were less enthusiastic about work and their employer, less agreeable and helpful to others, less productive, more sensitive to daily irritants at work and more depressed overall.

Penetrating insights
Dollar stores, once on a seemingly unstoppable expansion trajectory, actually experienced a two percent decline in household penetration, the sole exception among the value channels to lose ground. In a surprising turn of events, this represents the first decline in dollar store shopper penetration since we first began tracking the channel. See chart 2. This is surprising on the one hand, because gas price increases that affect those on fixed incomes and with modest means (the prototypical dollar store shoppers), might be expected to drive more consumers toward dollar outlets. It is less surprising in the context of trip consolidation, where shoppers try to meet all their needs in the fewest trips possible. The limited food and beverage assortment and lack of fresh foods at most dollar stores may be the force behind the decline.

Homefront, workfront
A Florida State University professor explored different aspects of the fallout from gas prices, discovering that 44% of the 300 employed consumers surveyed worried about making ends meet; 41% were paying off debt more slowly and 25% had gone without basic necessities like food and heat to conserve funds.

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Fall/Winter 2006

Consumer & Shopping InsightsOnline!

Homescan Consumer & Shopping Insights provides web access to the latest shopping insights available across all major categories and channels of trade, presented in an issue-oriented menu for simple navigation to your most pressing business issue.

Get right to the subject. With Homescan Consumer & Shopping Insights, you wont waste time wading through unnecessary data. Interested in a regional comparison report of your brands? Want to know which retailers drive category spending? Need to target the best demographic match? Simply choose the business application to fit your needs and view the results immediately.

Homescan Consumer & Shopping Insights gives you: Fastest access to the most recent data available. Issue-oriented navigation capabilities for easy drill down to the information you need most. Interactive graphs to expedite analysis for presentationready text and charts. Access to the full Consumer & Shopping Insights Syndicated Suite: Consumer Facts, Channel Facts, Account Shopper Profiler, Cross Outlet Facts and Category Management Templates. To learn more about Consumer & Shopping Insights, please contact your ACNielsen Client Service or Retail Services representative or visit our web site at www.acnielsen.com.

Available in the U.S.

Concurrently, the competing warehouse club and supercenter value channels enjoyed two and three percentage point increases, respectively, in the penetration measure. Underlying reasons for the upticks include continuing store count expansion, which enhances accessibility, and a relentless commitment to delivering consumer value.

Trip decay
Trip count results proved that consumers not only talked the talk, they walked the walk and reduced the number of shopping trips in every channel except warehouse clubs, which held steady at 11 trips per household per year. A review of trip count results by channel suggests that grocery stores might need to re-examine their value proposition. Trip counts sagged by one trip per household at dollar and drug stores, mass merchandisers and supercenters, but the grocery trip frequency declined at twice that rate.

Basket bonanza
Consumer behavior aligned with attitudes again, as bigger basket rings across channels validated the shop less, buy more reaction to gas prices. Warehouse clubs were the primary beneficiary of the new consumer spending directive; witness the $6 increase in the average trip receipt, for a total of $93 per trip. See chart 3.

Chart 3: Larger baskets in all channelsconsumers making fewer small trips

Average $ basket ringTotal expenditures 11 12 13 19 22 23 32 35 38 39 Mass Merch 44 47 Supercenters* 51 60 63 82 Warehouse
Source: ACNielsen Homescan & Spectra *Includes Kmart, Target & Wal-Mart Supercenters

Dollar

2001 2005 mid-2006

Drug

Grocery

87 93

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Chart 4: Those who can afford higher gas prices drive more
% household by weekly mileage driven

Poor

10

14

20

21

12

Getting By

11

21

20

13

19

Living Comfortably 2 1

16

20

16

12

25

Affluent 11 5

10

17

15 0 Miles 101150 Miles

14 125 Miles 151200 Miles

38 2650 Miles 200+ Miles

No Vehicle 51100 Miles

Source: June/July 2005 ACNielsen Homescan Survey

Grocery, mass merchandisers and supercenters each experienced a $3 per basket expenditure increase, raising the average consumer spend per format trip to $38, $47 and $63, respectively. Drug and dollar stores sat at the bottom of the rankings with an extra $1 added to the average shopping tab.

Poor pay more

Unfortunately, rising gas prices will impact the most those who can afford it the least. While gasoline costs represent just 6% of the pre-tax household income for families earning $75,000 per year, they consume double that proportion (12%) for households earning $20,000 annually. See chart 5 on page 40. Turning a moment to the rising cost of natural gas and other home heating alternatives, consumers can expect those costs to increase as well. Last year, a mild winter mitigated price hikes, minimizing the wallet wallop. In the aggregate, the implications are obvious for the manufacturers and retailers who target lower income householdsget ready to feel the heat.

Resilient response
In June 2006, former Federal Reserve Chairman Alan Greenspan remarked that American business to date has largely succeeded in finding productivity improvements that have contained energy costs. However, he raised the specter of continued upward oil price pressure leading to an observable impact on the U.S. economy. One reason Americans have been able to absorb price increases to date ascribes to the fact that those who drive the most can afford it. A larger percentage of affluent consumers drive 200+ miles per week than those living comfortably, getting by or the poor. See chart 4.

Strategic fallout
The thirst for oil will prompt manufacturers and retailers to sharpen their pencils and continuously monitor the consumer pulse to combat the margin squeeze. How will the fuel

39

Chart 5: Rising gas prices will impact low income households and the retailers/manufacturers that serve them
At $3 a gallon $20,000 Annual Income Dollar Amount 12 $2,382

$25,000

11

$2,820

$50,000

$4,179

$75,000

$4,647

Gasoline costs as % of pre-tax household income

Source: Department of Energy, USA Today

crunch impact brand and format loyalty? How will promotional strategies need to be adjusted in response? What services could be added to make a store the winning contender under the single-outlet, consolidation scenario? Oil price pressures may precipitate any number of market responses in the fast-moving consumer packaged goods world, including: accelerated private label product growth; enhanced interest in large pack sales; broader assortments; value-based pricing; at-home entertainment focus in advertising and promotions; added convenience store features, positionings; increased emphasis on trip capture.

Change in attitude
As a country, the United States will need to wean itself from oil dependency by developing viable alternative fuel options such as ethanol, moving to gas-saving hybrid vehicles like the popular Toyota Prius, and re-evaluating our fundamental relationship with non-renewable energy sources. As an industry, CPG manufacturers and retailers will need to re-think the retail calculus and factor-in the impact of higher transportation and heating costs on the brand buyer and retail shopper mindsets. Even if the recently discovered Gulf of Mexico oil field turns into a gusher, industry experts predict it will be at least four years before that fuel supply impacts consumers, and it will not be large enough to offset the chronic and increasing U.S. demand. There is a real opportunity for CPG industry leaders to convert a deep understanding of the consumer response to persistent gas shortages into a strategic lever that will drive sales and profits. C i

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Fall/Winter 2006

Cracking the Retail C.O.D.E.

Youre pretty good at Sudoku. You know how the DaVinci code was solved. But do you know how to crack the retail C.O.D.E.? Turns out, you held the key to unlock sales potential at the store level all along: the consumer. As the only common denominator across brand, product, account and store activities, it is imperative that store-level strategies and tactics begin and end with the consumer. Two common factors often hinder the ability to take advantage of store-by-store growth. First, consumer insights alone, without resulting actions, simply turn into overhead. Second, treating an entire retail chain as if it served a single shopper type often results in missed opportunities. Whats needed, is to find an approach that enables scalable action based on store-level insights to position a company for success with consumers. Store-level growth opportunities exist, but they are often difficult to identify and procure with a reasonable return. It takes the right tools to integrate action and insight into a cohesive, repeatable framework for success.

by: Bill Rouse Wal-Mart Analytics ACNielsen Homescan & Spectra Jon Busman Marketing ACNielsen Homescan & Spectra

zero, the store level. It is a different way of looking at business, one with an upside that pays off in sales and profits. Winning at retail is enabled by applying a simple, systematic four-step process that we call Cracking the Retail C.O.D.E. The methodology employs a series of critical steps to optimize brand or product success in the marketplace. This consumer-centric approach links actions in the storewhere they matter the mostback to the consumers most likely to purchase your brand.

Four steps to success

The acronym C.O.D.E. summarizes a methodology that begins with Consumer profiling, then moves to Opportunity gapping, Dynamic clustering and Executing for the consumer, the four steps to success in store-level marketing. 1. Consumer profilingaccurately captures the demographic profile of the brands consumer. 2. Opportunity gappingquantifies store-level opportunities based on consumer demand potential and diagnoses the prospect. 3. Dynamic clusteringgroups similar stores using multiple store attributes, including shopper demographics, the competitive set, and upside opportunity. 4. Executing for the consumertakes findings from steps 13 and develops store-level tactical plans, giving the field force the right information to optimize in-store presence. This strategic approach provides a deeper understanding of the consumers around a given store, measures the gap between actual and potential demand, and offers an execution plan at the store and cluster level that fully addresses

Getting started
The first step into the new world of store-level marketing begins by abandoning any preconceived notions about a consumer-centric approach. There is no silver bullet report with all the answers, no bedrock rule about how a category acts in response to consumers. Realize that things are not always what they appear to be. Narrowly focusing solely on category-specific action is no better than looking down from a tall building and incorrectly noting that all people are the same. Consumer-centric planning is about analyzing specific groups of people and identifying how to impact them where they shopat ground

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the potential demand. The result is improved operational execution, reduced out-of-stocks, fewer overstocks, enhanced promotion performance and better inventory management.

Opportunity gapping provides an indication of how much the category could grow tomorrow if I could fully execute, instead of only trying to capture my fair share of yesterdays volume.
Michael Himmelfarb, VP of Marketing ACNielsen Homescan & Spectra

Step 1: Consumer profiling

The consumer should be the first and last consideration of any consumer-centric initiative and the C.O.D.E. approach is no different. Products do not buy themselves, just as shelves do not mysteriously empty by themselves. While price reductions, competition, brand equity, slotting and the like all influence purchasing, the common denominator is the consumer. It is only appropriate then, that the C.O.D.E. approach starts with consumer profiling. There are various types of consumer profiling information available, from panel purchase behavior to attitude and usage studies to focus groups. Traditionally, point-of-sale (POS) data has been utilized to tell us what happened but not who drove it. Through consumer regression profiling, it becomes possible to create a sales-weighted store profile by estimating future consumer demand for products based on historical sales data. ACNielsen Homescan & Spectra recommends utilizing panel data to determine category and brand breaks, and Opportunity Finder solutions to consumerize product movement data, enabling retail-specific and item-specific store profiles. This approach yields granular analyses down to the SKU level. The analyses become retail-specific, based on the retailers own data, which adds power to the recommendations. Regardless of source, consumer profiles can be used individually or in combination to formulate step one of Cracking the Retail C.O.D.E.

ister rings? Opportunity gapping quantifies the opportunity cost to each store for missing the mark two wayseither with consumers or on the execution level. While fair share gapping is a common practice to determine if a brand or product is getting its expected share of the account or market pie, what if you could estimate how big the slice would be? Consumer profiling is the first step in executing the C.O.D.E. approach, but without action it just becomes nice to know. In order to quantify opportunity, matching the consumer profile to the known shoppers of an account is critical. The degree of sophistication can vary from profiling your consumer and identifying a common trait within a retailer (i.e., matching high income consumers to a high income account like Whole Foods), to scoring an account at the store level based on the most volume-predictive consumers, also known as the Spectra Demand Index. In essence, while Step One determines your consumers fingerprint, Step Two matches it to an accounts fingerprintor even better, an accounts store-level fingerprints. Now you have a basic roadmap for tomorrows volume.

Step 2: Opportunity gapping

Are you leaving sales on the table? If so, how much? What needs to change to convert potential and lost sales into reg-

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Windshield vs. rear-view mirror

The C.O.D.E. methodology puts marketers in the drivers seat, steering brands and products by looking through the windshield instead of the rear-view mirror. This approach focuses action on stores that show growth opportunity, and suggests maintenance level support for those with lower growth potential. Execution opportunity gaps materialize based on the yinyang interaction of two opposing forces: demand drivers and demand inhibitors. Demand drivers include activities such as promotions, cross merchandising and correct shelving. Demand inhibitors include competition, out-of-stocks (OOS), distribution voids, and incorrect shelving or space allocation.

Case in point
In a typical promotion scenario, 16% of stores wont have available space, 22% wont display the promotion signage, 33% will put up the displays too late and 42% wont have the skilled labor to execute the promotion. Opportunity gapping identifies problem storesthose that should have sold more based on the consumer fit and performance of similar stores. Promotions can then be adjusted to focus resources on areas with the highest potential upside. In essence, opportunity gapping acts like a forward-looking diagnosis that determines if the financial upside return from a promotion is worth the effort of store checks, additional labor, or the promotion itself.

Step 3: Dynamic clustering

Clustering, or localization, as the Harvard Business Review calls it, is the cornerstone of scalability. More than a capability, clustering has become an operating necessity in todays fragmented marketplace. Retailers and manufacturers are increasingly moving to micro views of their business to identify opportunities associated with the demand drivers and demand inhibitors unique to each store. This is most clearly seen in the growing number of retailers adopting local or neighborhood marketing initiatives. Most recently, Wal-Mart announced they were dropping their one-size-fits-all approach to stores. Similarly, manufacturers are becoming more precise in targeting of consumer segments, and wish to optimize store conditions at the local level.

Retailers and manufacturers are becoming more precise in their targeting of consumer segments and wish to optimize store conditions at the local level.
Paris Gogos, Director ACNielsen Retail Execution Services

Clustering attributes
While there is a virtually limitless set of criteria upon which clusters can be based, most fall into four major groupings: 1. Consumer Attributes. These may be as simple as grouping stores based on a common trait like ethnicity, affluence of the shopper, or a volume-predictive measure of consumer fit. 2. Organizational Attributes. These may include DSD sales routes, warehouse locations, regions or districts, or specific shelving sets.

45

3. Store Attributes. These may range from physical store attributes like size and presence of specific departments to proximities to high traffic intersections or landmarks like beaches or universities. 4. Performance Attributes. These can range from basic sales rates to promotion response to consumer-driven category opportunity gaps. Dynamic clustering brings criteria together into a cohesive framework that leverages critical differences within the store segments. Some companies may be able to execute effectively using just two clusters; others may require 200; but clustering is a necessary prerequisite for integrating action to crack the retail C.O.D.E.

defined dynamic clusterscan now be managed by following the four-step C.O.D.E. The C.O.D.E. approach makes high definition marketing possible, allowing marketers and retailers to zero in at the most granular level possiblethe store. Working from a shared viewpoint, with shared definitions for target clusters or stores, manufacturers and retailers can collaborate on promotional and assortment strategies with optimal appeal to the right set of consumers, and operational strategies that take cost out of the system by reducing inefficiencies such as out-of-stocks and distribution voids. The C.O.D.E. holds the secret to finding opportunity gaps, making the most of consumer profile information, and improving logistical execution to squeeze more bottom-line profit out of even more top-line sales. See pages 48 and 49 for a case study that illustrates the C.O.D.E. process in action. C i

Step 4: Executing for the consumer

The final step in the C.O.D.E. approach takes us full circle, back to the consumer and how best to shape and direct activities to each store or clusters shoppers. Merchandising strategies based on item roles, promotional and sampling programs, space and facing allocationsall tailored to

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Fall/Winter 2006

Mark Your Calendars

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Cracking the C.O.D.E.

A Case Study
Step 1: Consumer profiling
Joes Cookies utilized a hybrid of ACNielsen Homescan Panel data and POS-based profiles to identify its preferred consumer. Since Joes Cookies had low penetration in the marketplace, the company used panel data to profile the total category, and then used Spectra Opportunity Finder Solutions to profile individual SKUs. The result of this analysis: Joes Cookies gained an understanding of how its brand consumers differed from the overall cookie category and competitors. The typical Joes Cookies buyer skewed to African-American and Hispanic ethnic makeup, earned $50,000$100,000 per year and lived in a household with children. See chart 1.

Step 2: Opportunity gapping

Joes Cookies then ranked retailer stores based on the fit between the store consumer profile and the Joes Cookies consumer profile, quantifying the consumer opportunity gap. The analysis determined that store opportunity varied greatly once the consumer was inserted into the equation. For example, Joes Cookies found Store A and Store B identical in every transactional way. Joes Cookies had two facings in each store, and the store shelf set and total sizes were virtually identical. However, sales results for Joes Cookies were anything but identical. Store A sold approximately $90 per week of cookies, while Store B sold closer to $230 per week. A consumer trade area analysis for each store uncovered very different shopper bases. Store A was located in an urban setting with many households without kids in its consumer trade area. Store B, on the other hand, was in a rural setting with many households with kids in its consumer trade area. As a result, Store A was not the underperforming store it initially appeared to be, but in fact, had captured most, if not all, of its opportunity. Store B, initially thought to be over-performing in its trade area, was actually under-performing and should have sold an incremental $130 more per week. See chart 2. Instead of allotting resources against a store that appeared to be an under-performer, Joes Cookies targeted the real underperforming store. Joes Cookies followed the C.O.D.E. method and assessed the different demand drivers and demand inhibitors affecting the store in order to chart a path for Store B growth. This exercise was repeated for other chains to diagnose the amount of unconverted opportunity by account and develop tactical plan for realizing untapped potential.

Chart 1: Cookie consumer profiles

Cookie Category White African Am. Hispanic < $50K $50K+ $100K+ No Kids in HH Kids in HH Med. High Low Low Low High High Low High Joes Cookies 16 oz. Low High High Low Very High Low Very Low Very High Janes Cookies 16 oz. High Very Low Very Low Low Medium Very High Very High Very Low

Chart 2: Opportunity gapping

Store A: $90 in Sales Store B: $230 in Sales

Source: ACNielsen Homescan & Spectra

Consumer Trade Area Few KidsUrban

Consumer Trade Area Many KidsRural

Consumer Opportunity Gapping Gap Upside: $8

Source: ACNielsen Homescan & Spectra

Gap Upside: +$130!

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Step 3: Dynamic clustering

The next step for Joes Cookies was to make similar recommendations to its retailer that could be executed in a scalable manner. Joes Cookies clustered similar stores based on consumer, store, and performance attributes including consumer fit, opportunity gaps, competitive interaction and existing store sales. In doing so, Joes Cookies focused its efforts against several types of consumers and enabled action that was scaled yet appeared customized on the shelf. Dynamic Clustering also identified which clusters were not only a strong fit, but quantified the upside opportunity. This approach allowed Joes Cookies to take action where it was needed and to minimize where it was meeting demand. Demonstrating the power of Dynamic Clustering in action, when applied from the category down to the SKU level, Joes Cookies executed against the opportunity for its brand and the category. See chart 3.

Step 4: Executing for the consumer

Turning to tactical considerations, Joes first cluster (Blue Collar Suburban) represented $2.7 million in sales, spread across 20 stores. It appears to be under-performing with respect to many product types and within certain cookie sub-segments. Joes Cookies implemented a dynamic clustering framework and pursued tactics that included: identifying cluster potential to assist with assortment decisions; determining the competitive forces affecting each dynamic cluster to assist with tactics; assigning key merchandising roles to SKU-level items by dynamic clusters to determine the turf and image enhancers; allocating shelf size based on dynamic clusters; performing SKU-level rationalization based on consumer demand and potential sales by cluster to put the right product in the right store. The Retail C.O.D.E framework has helped many manufacturers and retailers unlock hidden sales opportunity previously masked by results aggregated at the account, region or trade area level. C.O.D.E. proponents integrate a variety of consumer and retail information to de-code available opportunities and implement comprehensive action plans designed to improve product and category performance. Are you ready to crack the Retail C.O.D.E.? Your sales depend on it. Your consumers demand it.

Chart 3: Dynamic consumer profilingallows you to take action where there is potential
Clusters Category/Brand Consumer Fit 20 Stores $2.7 Million Gap 35 Stores $0.8 Million Gap Gapping Opportunity 68 Stores $0.0 Million Gap 46 Stores $0.0 Million Gap 22 Stores $2.7 Million Gap Sales Influencers 10 Stores $1.1 Million Gap

Competitive Interactions

Source: ACNielsen Homescan & Spectra

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Trendwatch

Walk-In Retail Clinics:

A Healthy Savings Idea
Would you like some chicken soup with that prescription? While grocery stores have always stocked this form of liquid penicillin, today theyre home to the real dealwalk-in clinics staffed by nurse practitioners licensed to diagnose and treat common conditions such as allergies, bladder infections, bronchitis, ear infections, the flu, heartburn, muscle pain, pink eye, minor burns and rashes. See chart 1. The ultimate in one-stop shopping, patients can see a health care professional, hang a left to get the prescription filled, and be on their way in 20 minutes. Anyone who has cooled their heels in the typical general practitioners waiting room knows that that kind of turnaround time represents a true medical miracle.

by: Joe Bucherer Segmentation Analytics ACNielsen Homescan & Spectra

Chart 1: Types of ailments suffered in U.S.

Percent of households with at least one household member suffering from the following ailment during the past 6 months Total U.S. Allergies (seasonal and/or year-round) Acid Reflex/Gerd/Heartburn/Acid Indigestion High Blood Pressure Cholesterol Problems Joint Neck/Back Pains (Not Arthritis) Obesity/Weight Control Insomnia/Problem Sleeping Muscle Pain/Spasms Anxiety/Depression ArthritisOsteo Constipation Diarrhea Asthma Diabetes-Type II (Oral Medication Needed) Menopause Lactose Intolerant ArthritisRheumatoid Irritable Bowel Syndrome Heart Disease/Heart Attack/Angina Osteoporosis/Calcium Deficiency Attention Deficit Disorder Incontinence Diabetes Type I (Insulin Needed) 51% 41% 36% 31% 34% 32% 24% 23% 23% 20% 18% 19% 15% 12% 10% 9% 9% 9% 7% 6% 6% 7% 3%

The consumer pulse

Clearly, consumers are warming-up to the walk-in clinic concept. In a Spring 2006 survey, ACNielsen Homescan & Spectra took the publics temperature on the walk-in clinic subject and discovered that one-third of respondents were either very or somewhat likely to visit a walk-in clinic located in a grocery, drug store or mass merchandiser. See chart 2 on page 52. While half of participating households had visited a doctors office in the last year, 8% had visited an independent or freestanding walk-in clinic, and another 1% had visited a walk-in clinic embedded in a retail format. Presently, walk-in clinics appear to be a perimeter phenomenon, with the South Atlantic (21%) and East North Central (16%) regions leading on a household patronage basis, followed by the Pacific and West South Central areas at 13% each. The eastern geographic skew may reflect a travel pattern of older New Yorkers commuting between their winter home in Florida and the Empire state.

Source: ACNielsen Homescan Panel Views SurveyFeb/Mar 2006Total U.S. Households

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Fall/Winter 2006

Everybody wins
Many walk-in retail clinics, like the 100-square-foot MinuteClinics, are designed and sited to feel like an extension of the store pharmacy counter, virtually ensuring captive Rx sales. While the retailer incentives are obvious and include driving traffic to the store, raising trip counts and creating the opportunity for incremental sales, the walk-in clinics benefit insurers as well. One Minnesota-based health plan determined that the walk-in clinic fees are so low (a minimum of 30% below a regular doctor visit), that the insurer waived any co-pay to encourage members to utilize the new service.

Chart 2: One in three households is likely to visit a retail walk-in clinic, if available in their area
How likely would you be to use a walk-in medical clinic if it were available in a grocery, drug or mass merchandise/discount store near your home?

Very Likely Somewhat Likely Neither Likely Nor Unlikely Somewhat Unlikely Very Unlikely

10% 22% 18% 15% 36%

A rash of growth
Popularity has led to proliferation. Among the more appealing aspects of the walk-in clinics are the easy physical access, proximity to home and work, available parking, intimate formats (smaller ones have chairs vs. exam tables), posted prices, evening and weekend hours, and electronic patient files that can be quickly transmitted to doctors along with a referral. Wal-Mart expects to open 50 stores by 2007, then roll out the service nationally. TakeCare has slated 20 Chicago area clinics for third-quarter 2006. MedXpress launched this summer and debuted an aggressive expansion plan calling for 500 U.S. locations by 2010. Solantic, a Florida-based company differentiating on the basis of physician staffing, intends to have 1,000 sites up and running over the next five years.

Source: ACNielsen Homescan Panel Views SurveyApr/May 2006Total U.S. Households

Rx for the ER?

One of the newest developments in consumer-driven healthcare, walk-in clinics represent the latest response to a system that encourages patients to control health costs. As a serendipitous by-product, walk-in clinics may prove to be a much-needed panacea for overtaxed emergency rooms, and an antidote for the 40 million uninsured Americans who represent the target audience. The cost savings are undeniable. One uninsured New York City paralegal priced out a doctors visit to deal with a minor problem. Quote: $150 for the visit. Opting to try the walk-in clinic solution, she walked out with two prescriptions and a bill for $49, including medications.

Profit prognosis
If retailers needed any additional motivation to take a serious run at the walk-in solution, the most telling diagnostic is the profitability test. According to a California HealthCare Foundation study, prescription drug margins run around 16% compared with general merchandise profits of less than 5%. That translates into a profit injection for the bottom line, even as center store results weaken. C i

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Track the New Health & Wellness Trends with a Few Clicks
So whats the new trend replacing Low Carb? There is much activity around Superfoods, as consumers are looking for food and beverage products that enhance their active lifestyle. While these trends are small, they are certainly something to closely watch. The mainstream trends like Whole Grain and Low/No Fat are still popular as consumers are responding to a nationwide concern with obesity. Consumer food marketers are flooding the market with a plethora of food products with health & wellness claims, but which ones are most successful in capturing consumer sales? LabelTrends is a new service that monitors sales trends in 27 of the hottest consumer packaged goods (CPG) product segments, such as low-carb, low-fat, organic and sugar-free. With over two-thirds of Americans dealing with obesity and many individuals on some sort of diet regimen, LabelTrends is well suited to help you evaluate new product opportunities to meet consumer demand and work with your retailer partners in optimizing assortment at the shelf for fast turnover.

LabelTrends help you to:

Understand the latest trends in the health & wellness arena and develop marketing strategies to provide consumer solutions. Identify potential candidates for mergers and acquisitions. Understand which health & wellness claims are most successful in building brand loyalty. Assess competitor brand/item performance and develop counteractive strategies. To learn more about LabelTrends, please contact your ACNielsen Client Service or Retail Services representative or visit our web site at www.acnielsen.com.

Its All About Whats Happening at the Store Level

Success goes to the smart, the swift, and those who can manage through the complexity of todays retail environment. Retailers and Manufacturers strive to recognize the diverse and changing faces of consumers, focusing on what increases demand while reducing what inhibits it. The store is where the best-laid plans shine or go awry. ACNielsen Scantrack StoreView provides the clearest, most flexible and precise store level picture of what's selling where, why and to whom. It provides a view that allows you to zero in on the store to understand demand drivers and demand inhibitors from different points of view. It allows for a new perspective, a more precise way to pinpoint consumer demand, focus on sales performance, analyze merchandising activities and center in on micro-trade areas. Only ACNielsen Scantrack StoreView couples a high definition view of what just happened with the tactical planning ability to increase future consumer sales.

ACNielsen Scantrack StoreView

Making High Definition Marketing Possible