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Insights today for tomorrow’s decisions
Baby Boomer Segmentation:
Eight Is Enough
Tune Into Teens: Test Your Teen Aptitude
Global Household Product Sales Employee Empowerment Cracking the Retail C.O.D.E.
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Volume 8, No. 3
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
Walk-In Retail Clinics: A Healthy Savings Idea
Laurel Kennedy Kathy Mancini
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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. What’s 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 they’ll tell you that timely, accurate information represents the best armor they’ve 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 today’s hyper-charged, customized, store-level–focused retail environment, salespeople need a virtual arsenal of presentations capable of being refreshed with current data at the touch of a button.
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
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 store—where they matter the most—back to the consumers most likely to purchase your brand.
50 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 they’re home to the real deal—walk-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.
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.
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 crosshairs—Baby 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 “it’s 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.
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.
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
Consumer Profiling—accurately captures the demographic profile of the brand’s consumer. Opportunity Gapping—quantifies store-level opportunities based on consumer demand potential and diagnoses the prospect. Dynamic Clustering—groups similar stores using multiple store attributes, including shopper demographics, the competitive set, and upside opportunity. Executing for the Consumer—takes findings from steps 1–3 and develops store-level tactical plans, giving the field force the right information to optimize in-store presence.
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.
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.
This year’s 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-Mart’s green commitment on the environment. The second article discusses how corporate sustainability and consumer pressure for environmental responsibility is sweeping through board rooms.
It’s 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. We’re listening. C i
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. they will continue to demand products that fit their individuality. marketers acknowledged the sweeping 19-year age span of 1946–1964. They always have done it differently than the way it was done before. That theory is out of touch with marketplace realities. Walker Smith & Ann Clurman Given its relative size and influence on U. often subtle. monolithic entity with lockstep needs and purchasing patterns. when shaping products or programs for Boomers. observed differences in purchasing behavior are wrongly attributed to some underlying. split the segment in half or thirds. quantitative segmentation work has been conducted on Baby Boomers. nuances that can spell the difference between a successful new product launch or marketing campaign and a complete misfire? Turns out. marketers have viewed this generation as a single. and using a little rough justice. age serves as an overly simplistic proxy for the correct measure— household composition. shared social/political/cultural touchpoints. autos. surprisingly little formal.” –From Rocking The Ages: The Yankelovich Report on Generational Marketing by J. by: Doug Anderson Research & Development ACNielsen Homescan & Spectra Laurel Kennedy Marketing Strategy Age Lessons Often. eight segments is enough. At best. 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. addressing campaigns to older or younger Boomers. In this generational approach. this framework poured every Boomer into one purchasing pool of interchangeable consumers. rather than directly measuring the elements of household composition. Under the generations method.S. Individuality over conformity is a consistent Boomer pattern. 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 4 Fall/Winter 2006 . Akin to a “big gulp” theory. consumer markets. ■ See chart 1. The question remains: how to right-size the huge Boomer cohort? How many segments would capture the important. That theory just doesn’t hold water. and as they get older.
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.3 Ready to Launch Single Boomers 22. Many age cohort members were neither born in the United States. 25% own at least one property in addition to their primary residence according to the National Association of Realtors. 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. with a median household income of $54. and less to do with membership in simplistic.3 5.5% holding a bachelor’s degree or higher and 45 million boasting some college • The most influential investing group.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. numbering some 77 million persons • The highest earners.3% of Boomer households. this age cohort is defined as follows: • The biggest age band in history. Today. re-shaping American culture and institutions to reflect their unique zeitgeist. 65% of elementary and high school students had Baby Boomer parents. Slicing the pie The overriding factor dictating Boomer consumer segments proved to be the presence of children in the home.5 15. 11. 15% Hispanic and 4% Asian. As behaviorists. and their ethnicity reflects the diversity of the Boomer band: 63% non-Hispanic White. it’s easy to understand how this convention emerged. there is no shared cultural milieu that resonates with all Baby Boomers. age-based cohorts.7% of the cohort. leaving the shared culture concept significantly diluted. 80% of Boomers vs.S.5 9. In 2000. with 28. ■ See chart 2. 55% greater than post-Boomers and 61% more than pre-Boomers • The best educated of any group before it. Baby Boomer households exhibit the least behaviorally differentiated purchasing patterns of any generation. while the four without children accounted for 60. population age 50+ controlling 75% of financial assets • The deepest pockets. with 40% of the U. we believe that segments generated should show differences in real.1 Late Blooming Boomers Trailing Edge Families 15. measurable consumer behavior. Boomers have been tagged with superlatives since birth.nor the two-tier segmentation approach is accurate. 69% of the general population own a home.and post-Boom populations which bracket them. The second thing is its unabated appetite for conspicuous consumption. 16% African-American.5 Trailing Edge Couples 11. As a group.8 9. Nearly one in five school-age children had at least one foreign-born parent.Simply put. the first thing that comes to mind is its massive size. much of the intra-generational variation observed has more to do with household composition. 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. In the case of Boomers. 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 high school enrollments reached their highest level since 1979.170. 6 Fall/Winter 2006 . More alike than different While neither the one. nor grew up here.
highly educated Late Blooming Boomers may have made the choice to start families later in life or are the by-product of divorce. Since education correlates strongly with income. The least educated of any Boomer group. they have far fewer (less than half as many) adult children than Leading Edge families. The purse strings to Junior are even harder to untie. with approximately one “adult child” for every four children under age 18. While better educated than pre-and post-Boomers. stable households of 4+ persons who have lived at the same address for more than five years. After Trailing Edge Families. younger families comprising one to two children under the age of 12. Census figures. which also index above average for African-American and Asian ethnicities. or remaining at home while getting their start in the working world. the apron strings are proving hard to cut—or perhaps just more elastic—as young adult children bounce back to the security of home. and 65% of recent college grads enjoy the largesse of Mom & Dad’s hospitality.5 children per household.S. According to 2000 U. kids Leading Edge Families feature older parents born between 1946 and 1957. For example. which appears to be a direct function of parental age. Boomer offspring are returning to the nest after college in record numbers. Late Blooming Boomers have smaller. large households averaging 2. ” Seven in ten Leading Edge Family households are headed by married couples. A single parent heads fully one-third of Late Blooming households. ■ See chart 3. Trailing Edge Families comprise larger.Chart 3: Segmenting Baby Boomer households with children less than 18 Total Baby Boomer HHs with Children Smaller Families Size 2–3 Larger Families Size 4+ Younger Children < 12 Only Late Blooming Boomers Older Children 12 + Ready to Launch Trailing Edge HOH Age 42–48 Trailing Edge Families Leading Edge HOH Age 49–60 Leading Edge Families Source: ACNielsen Homescan & Spectra Kid stuff Marketing to the Boomer segments with children is anything but child’s play. Leading Edge Families fall into the lower tier of academic accomplishment compared with other Boomer segments. Older.4 children. Leading Edge Families are the most Hispanic-dominant of any Boomer group and far and away the “most married. As one might expect from the doting parents who pioneered those ubiquitous baby-on-board signs. Unlike Late Blooming Boomers. Averaging 2. 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. 7 . As a consequence. and leave out a significant number of affluent Late Blooming households. It requires an understanding of the nuances between the four groups. 56% of men and 43% of women in the 18–24 age bracket reside with a parent. the most of any Boomer sub-segment. sharing a birth date between the years 1958 and 1964. As a result. Late Blooming heads of household span the entire Baby Boomer age group. any attempt to divide Boomers on the basis of age alone would clearly miss the mark here. but below average for Hispanics. Trailing Edge heads of household fall into a narrow age parameter. not necessarily wiser.
” Some 41% of Single Boomers never opted for marriage. Among the more innovative working retirement ideas: • capability-specific personnel banks of skilled temporary workers. Heads of household can be any age within the Boomer bandwidth. only children over twelve. tying Late Bloomers for the title of “most educated. That’s the new mantra of the Boomer generation as it edges toward Social Security eligibility and retirement age. and for the most part. and there are few adult children in view. reviving what Boomer women elevated to an art form. Progressive employers are experimenting with any number of riffs on the traditional consulting contracts or part-time positions available to retired employees. Trailing Edge HOH Age 42–54 Single Boomers Trailing Edge Couples Leading Edge HOH Age 55–60 Leading Edge Couples New Family Frontiers Adults only Apparently Single Boomers hit the books in college. and half of those said they intended to work as long as they were physically and intellectually able.g. because the Boomers plan on retiring the traditional concept of retirement with a characteristically bold move that will surprise detractors and benefit—rather than hijack—the economic future of the generations that follow. process changes. salary and performance expectations. the inescapable fact remains that the “baby bust” generation numbers 11 million fewer bodies than the Boomers. many Boomers reject the idea of a leisurely retirement and plan to work well into their 70s and beyond. earning and contributing to the economy for as long as one is able and enabled. The obvious solution: retain the ones you’ve got. skewing toward the late teens. 8 Fall/Winter 2006 . two individuals sharing a job. there simply may not be enough workers to fill available jobs. • roadblocking schedules. Driven by a host of motivations ranging from selfactualization to financial need. So hold on to those gold watches. The idea is simplicity itself: keep on working. In a 2006 Merrill Lynch study. Even with productivity gains. and established single households. Source: ACNielsen Homescan & Spectra Working Retirements Work long and prosper. • job sharing. outsourcing options and immigration inflows..000 workers to almost 10 million). 71% of adults envision working in retirement. where retirees rotate between time on/off the job for a pre-determined time increment (e.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. Companies need the workers While the statistics vary dramatically (estimates of a labor shortage as early as 2010 range from 800. 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. The Ready-to-Launch segment splits roughly in half between couples with one child and single parents with one or two children. ■ See chart 4. Half of the Single segment unpacked their bags five or more years ago and still call the same residence home today. three months on/off).
older workers were seen as more productive based on their accumulated institutional knowledge and efficient work habits.g. because it’s clear that many will have to work for financial reasons. some things apparently do get better with age. Retailers like CVS Pharmacy. since these amounts will be federally taxed on withdrawal (with the exception of Roth IRAs). In the process. 9 . New York and Florida). Overall. Boomer strata. In a Center for Retirement Research survey. Leading Edge Couples report a low incidence of Hispanics and the lowest African-American incidence of all Boomer groups. and have fewer than expected Hispanic and African-American members. 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” . much of it held by Boomers. second only to Leading Edge Couples on the savings front. with a head of household born between 1946 and 1951. find themselves situated in the bottom Boomer tier on the education dimension. New Family Frontiers do a pretty good job of hanging on to what they make. and keeps older employees mentally and physically engaged. • sampling arrangements that enable a worker to move across departments for a new challenge.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. At the same time. One factor that impacted even diligent savers was the stock market decline of 2001–2003 that eradicated roughly $7–8 trillion in shareholder wealth. 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. When it comes to the workplace. Less ethnically diverse than other • seasonal positions that follow employees who split time between two geographical locations (e. it is worthwhile to note that 54% of New Family Frontiers households have three or more employed workers in the home. Everybody wins Working Boomer retirees will have more discretionary income to continue fueling the economic engine. who have occupied the same house for the past five years. The social vanguard Leading Edge Couples.. Boomers need the money It’s a good thing that Boomers say they want to work. the dot-com crash ate away some $279 billion in 401(k) assets and huge chunks of other retirement savings. characterized by three or more adults sharing a household. less need to draw down savings and liquidate investments. Trailing Edge Couples typically are headed by a person born in the 1952–1964 period. and report the highest rate of unmarried partners living together. One of the most interesting segments to emerge from the Boomer study was the New Family Frontiers faction. represent the first group of the Boomer generation to serve as social change agents.Trailing Edge Couples carved their own path on the matrimonial front. Among the highest earning households. Meaningful employment enables critical knowledge transfer from highly skilled Boomers to other workers. and can readily fill the emerging labor gap by staying employed. One of the top three best-educated Boomer segments. ■ See chart 5 on page 10. employers access a labor pool of proven workers with the flexibility to calibrate hours to match demand. The typical New Family Frontiers household encompasses 1. Home Depot and Borders have already tapped the retiree talent vein with outstanding results. From an economic perspective. Boomers dialed-in to the nuances of finance recognize that 401(k) and IRA/retirement money statements can create a false sense of wealth.
S. In 1995. Staying connected to friends and families is a Golden. 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. that number will 10 Fall/Winter 2006 . there were approximately 72. outspending other segments. By 2050. Americans are getting older. fewer than 30% of Boomer households will have children under 18 at home.693 per child. Concerns about aging are not confined within the borders of the United States. Federal spending per child under 18 years of age was $1. At that point. Worldwide.S. living longer and having fewer children. per capita spending on each 65+ adult was $15. By 2014. By 2050. that number will have declined again to just 20%. global concerns Not only is the U. increase fourteen-fold. exceeding 834. Boomers gravitate toward household textiles and furniture. By 2007. it would take a city as large as Detroit to house all the people older than 100 at the mid-century point.636. Spending shifts Consumption and spending patterns mirror changes in the Boomer demographic. population aging. using mid-range Census Bureau estimates. To get a relative sense of size. 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.000 centenarians in the U. fewer than 10% of all Boomer households will include children under 18. 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.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 B 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. the very old component is growing at an even faster rate. 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. the current ratio between the young (under 20) and the old (over 65) is roughly 3:1. By 2010. When it comes to home improvements.000. that ratio will recalibrate to equilibrium at 1:1. older people will outnumber younger ones for the first time in recorded history. In 2000. Beer and wine top off the shopping list for those Boomers furthest from child-rearing responsibilities. For the same period.
living so long and staying so healthy. Despite years of denying themselves luxuries. finned and winged members. they will indulge an offspring’s demands for a car. expensive vacation or the latest and greatest in consumer electronics. one could say Boomers are a fiscally conservative bunch—except when it comes to their kids. Older Boomers represent both a viable market and one too large to ignore. 2. 5. They look askance at credit issuers who mail out unsolicited cards to college students. financial markets. employment issues. C i Family finances The Boomer relationship with money is complicated and convoluted. ■ See sidebar on “Working Retirements” on pages 8 and 9. Others see the opportunity to extend the consumer use-life by extending the Boomer work-life from an arbitrary retirement at age 65. Boomer spending rates outpace the average for audio equipment. part-time or lower paying positions. Society has never been asked to solve a socioeconomic equation with so many unknown variables before. economy. save money. Boomers learned to respect money. An uncertain outcome Some pundits ponder these issues and see the makings of a perfect storm capable of capsizing the U. 3. for as long as they are physically able. one thing is certain. accounting for their 50% higher spending rate on cellular phones and pagers. The Boomer obsession with health and wellness extends to their extended family—including the four-footed. There simply have never been so many old people. televisions and radios. consumer spending. as Boomers prepare to trade down from large homes— a flurry of sales may add momentum to the imploding housing market. A perfect storm The graying of America presents a number of questions such as the prospective impact of impending retirements on: 1. All in all. as Boomers exit the workplace and the baby bust generation comes up 11 million people short of available openings. value work over leisure and savings over debt. to an open-ended employment contract that keeps people working.S. as Boomers prepare to liquidate equity holdings and supplement retirement savings. Shaped by parental stories of the Depression and WWII deprivation. Boomer imperative. as Boomers begin to experience the inevitable decline of physical vigor and the onset of chronic illnesses like high blood pressure and diabetes. 11 . as Boomers retire or are forced into second careers. 4. From a marketing perspective. and earning. real estate markets. Boomers willingly open their wallets for veterinary care and other pet services such as grooming and doggie day care.It is not uncommon to find a Boomer parent liquidating retirement savings or mortgaging their home to subsidize their child’s college tuition. in the hopes they’ll be used. healthcare system. Plugged in to electronic entertainment media.
Turning from percentages to the absolute dollar metric. one in a series of ACNielsen reports on the fastest-growing products and category drivers. Aggregated 2005 sales growth remained consistent with other reports in the series covering food and beverages and personal care products. leading Asia Pacific. Emerging markets posted a 13% increase and Latin America an 11% jump in household product sales. 1 billion in 2005. a sector comprising both emerging and developed markets. What’s Hot Around the Globe: Insights on Growth in Household Products. Chart 1: Global findings Value Sales (U. health and wellness concerns. where the modest 4% gain in Japan blended with the momentum of a 14% jump in China. Asia Pacific achieved the largest dollar value growth overall at just under $U.$M) in Household Products* Global (66) Europe (19) North America (2) Asia Pacific (15) Latin America (12) Emerging Markets (18) 0 $50.Global Household Product Sales: Innovative Items Clean Up Analyzing household products on a global scale involves a pretty big bucket of categories and countries. both classified as emerging markets.000 $100. convenient delivery systems and developing country contributions. The complexity of dissecting regional and country contributions is illustrated by Asia Pacific. Findings surfaced by the study identified four major trends responsible for growth: new product innovation. by: Jane Perrin Communications ACNielsen Global Services Mark Chesney Communications ACNielsen Global Services Regional results On an upbeat note. Romania and Russia. ■ See chart 1. showing 4% growth.000 Global Growth in Household Products* (2004–2005) 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) 12 Fall/Winter 2006 .S. North America and Europe results. reported impressive category expansion rates of 25%. there were several regional pockets of double-digit growth.S. encompasses 66 markets and 29 household product areas.
laundry stain removers/boosters at 6% and plastic storage bags at 5%.040 255. five paced the 4% rate. While the discussion to date has surrounded growth rates. Garbage Bags* 5. Brushes. only nine grew faster than the global average. Chart 3: Top 10 categories and growth rate by region Europe Total Household Care (0%) Brooms.008 4.806 82. which shared top billing with disinfectants at 13%. 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. it represents the largest category overall and contributed more than any other category to global growth. Brushes.215 81. continued on page 16 *Also among the largest 10 categories in value sales The remaining top performers included abrasive cleaning pads. The cleaning system concept debuted by Swiffer. comprising a re-useable element such as a handle with disposable cloths. of Markets Category Growing/ Growth Rate Measured 04–05 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. Fabric Softener* No. Five categories in the fastest-growing top nine—garbage bags. toilet bowl cleaners. The jury is still out on whether or not the consumer uptake on systems and onestep. Both recorded higher than average growth rates. sponges or brushes. 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.489 78. specific sub-segments accounted for the strong overall showing in some categories. household cleaners. Abrasive Cleaning Pads 2. 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.553 244.081 168. has been syndicated to other categories including bathroom cleaners.876 338. For example. insect control and fabric softener—also registered among the top 10 categories in value sales. dusters. Household Cleaners* 6. and the rest lagged behind. Performance enhancers On closer examination. In prior studies. Chart 2: Only nine categories grew faster than 4% Top Growing Categories 1. which may indicate a shift in the type of products used to clean around the world. Disinfectants 3. Insect Control* 8.Leading categories Among the 29 categories studied. 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%) 14 Fall/Winter 2006 . battery-operated freshening systems powered up a 191% sales increase. Plastic Storage Bags 9. the fastest-growing categories were also among the smallest in dollar sales. it is worthwhile to note that even though laundry detergent only expanded at the average pace. air care and insect control. multi-use products will successfully cross category boundaries. Similarly. air fresheners. That was not the case in 2005.148 209. ■ See chart 2. and air sanitizing sprays vaporized the category with their supercharged growth in sales of 36%. Air Fresheners* 7.
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and none of the overall fastest-growing products shows up in every regional ranking. In Latin America. In Europe. 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 won’t rip. Their counterpart. The Emerging Markets’ winning entry. with the top three brands comprising 65% of category sales and private label brands absorbing an additional 16%. the runaway category growth winner in Latin America. Aggressive media support generated a 45% increase for the leading brand. measured in only five markets. every top ten contender boasted double-digit growth. disinfectants killed off any competition in the top ten with a 23% annual growth rate. Laundry stain removers were a distant second in the line-up at 36%. with the number two and three brands each expanding by more than 200%. expanded at an average 10% rate in 12 of 19 markets measured. Disinfectant wipes. only the leading category— brooms. disinfectant sprays. Brand sales are so heavily concentrated in this category that three brands accounted for 71% of dollar sales on a global basis. their sales expanded by 26% in 2005. sales (excluding Wal-Mart) derived from a 60% increase in wipes. page 14. striving for a sanitized—versus merely clean— household. Coming clean Abrasive cleaning pads. This one country accounted for more than 95% of category sales. It’s worthy of note that although only 8% of sales can be ascribed to private label brands. brushes and mops—charted 2005 results that bettered the global average.Global Household Product Trends continued from page 14 Different strokes The top ten categories within each region differ significantly. divided among three brands. fabric fresheners. convenience played into consumer decision-making. As always. but abrasive cleaning pad results scoured all comers with a whopping 74%. twice the global tempo. with North America the sole region to wrap the year with double digit growth (12%). coupled with raw material cost increases for the oil-based resins used in manufacturing. Tying up sales Garbage bag sales expanded at an 8% annual rate.S. Carpet/rug cleaners and waste pipe openers trailed with strong 37% increases. Private label products captured a significant share of 16 Fall/Winter 2006 . For such a seemingly mundane category. Global brand dominance was more diffused than in Latin America. was in a class by itself with a 277% annual growth rate. Hygienic habits Germ-aphobic Americans kicked their cleaning standards up a notch. explaining why 80% of the absolute dollar growth in U. Only the laundry stain remover and garbage bag categories also posted double digit regional growth at 12%. mopped up consumer dollars on a global basis for a 35% growth in sales. This microbe-free goal resulted in a 23% regional category sales increase. Automatic dish detergents and automatic dish additives floated to the top of the Asia Pacific top ten list. ■ See chart 3. In North America. owes its phenomenal success to a single country: Brazil. New features. combined to justify the higher retail prices that raised dollar value sales.
possibly reflecting that country’s concern with the mosquito-borne West Nile virus. and at 11% represented one of the fastest-growing segments. Brushes. such as electrically-powered items. Product refinements. 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. owed its 5% expansion to Latin America. the eighth fastest-growing category. Sprayons earned high marks on the convenience criteria. a region where bugs are more than a nuisance. Battery air fresheners. they carry potentially harmful diseases such as dengue fever and malaria. command a price premium reflected in sales results. with the top three branded household cleaners garnering 43%. Major multinationals entered the power cleaning competitive fray.garbage bag sales (40%). respectively. achieved explosive sales of 200% over the prior year. effective household cleaners were swept off shelves by tidy consumers. Air freshener candle sales. 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. Product proliferation served to modulate the trend toward brand dominance observed in other categories. Abuzz with potential Insect control. private label 9% and other products 48% of sales. double that of the global average. with four of five regions ranking the category among the top ten. where 2005 consumption increased by 23%. including pen delivery systems. Air sanitizers eliminated odors and obstacles to consumer trial. hitting a respectable 36% growth number. Recent new product entries have kept sales aloft and in the top-ten tiers for four of five regions studied. 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. No-wash stain removers. almost enveloping the 49% sales component contributed by the top three brands. where sales velocity reached 75% last year. Key manufacturers virtually own the category. The North American no-growth scenario masks a 7% spike from Canada. Something in the air Air freshener sales caught a favorable updraft in Emerging Markets. reinvigorated by the introduction of scented oils. Both private label and branded offerings increased by 8%. The two attributes dominating product selection were convenience and effectiveness. with Emerging Market and Latin America households setting the pace. “Oxi” products cleaned up in the category. saw 2005 sales rocket into the stratosphere at a 150% rate. with the top three brands accounting for 72% of sales. unveiled just last year. spreading in seven of the 10 markets measured at an 11% overall rate. Latin America and Asia Pacific. Tepid Asia Pacific results of 1% growth dampened the overall category average. 17 . 16% and 10%. achieved an 8% growth rate.
There is no denying the influence of Emerging Markets as a factor in household product category growth. ■ See chart 4. which for the purposes of this study are called “segments. the private label expansion velocity equaled that of manufacturer branded household products (4%). but picking up in Asia Pacific. Europe. 2 and 3 positions across the majority of markets studied and together claim 68% of category sales. Uniformly. page 17. this report is based on purchasing information from retailers in grocery. Commodity concerns While private label offerings earned a 12% share of global household product sales. Emerging Markets. products such as Downy Libre Enjuague (RinseFree) reduced the hassle factor for consumers who hand wash by eliminating the rinse step. ACNielsen analyzed data across 29 Household Products categories. A soft touch New product formulations. from a 43% share in aluminum foil with zero growth. Mexico has been included in Latin America. to an 8% share in disinfectants with a 26% growth rate. with pockets of strength in Latin America (14%) and Asia Pacific (9%). comparing year-ending data from December 2005 with December 2004. to show the impact of both manufacturer and retailer products as drivers of consumer purchasing behavior. The Power of Private Label. that penetration level underperformed the norm reported in the ACNielsen 2005 study. In the bag Plastic storage bag sales did slightly better at 5% than the global all-product average. C i About the Study This survey of Household Products included 66 markets around the world and 29 categories. alongside a continuous stream of product innovations that keep consumers engaged and prices on the rise. Within these 29 categories. The markets have been grouped regionally into five areas: Asia Pacific. sales from convenience stores may be included. ACNielsen reviewed subcategories of products.” This study looks at some of these key segments to understand the changes impacting the categories. Private label share and growth figures varied widely by category. data from the ACNielsen Homescan consumer panel service has been included to provide a total market read that includes Wal-Mart information. consumers across the world gravitate to products that deliver against two key benefits: value and convenience. drug and mass merchandise outlets and generally excludes kiosks or vending machines. Of note. As with Global Services’ other studies. the top three brands and all others split the rest of the category sales evenly at 49% apiece. private label sales for this category (8%) bested manufacturer brand performance of 3%. The private label preference was clearly strongest in Europe. New to the study this year is the inclusion and analysis of private label products within each category. 18 Fall/Winter 2006 . increased advertising penetration and price reductions contributed to the fabric softener category sales increases in Emerging Markets (16%) and Latin America (14%). For the purposes of this study. North America and Emerging Markets. Within the United States. Interestingly. Regional considerations such as economic development and lifestyles influenced product uptake and utilization figures. In a few markets. in Mexico.category with a miniscule 2% of sales. improved distribution. These 66 markets account for more than 90% of the world’s GDP and over 75% of the world’s population. Home basics Household products weighed in with overall global growth rates consistent with other fast moving consumer product areas. The top three brands occupy the number 1. so private label neither gain nor lost ground in relative terms. ACNielsen Global Services intends to include private label information in future reports on product areas. Latin America and North America. However.
• Identify “white space” in the marketplace and quantify new product development opportunities. As new products and efficacy claims proliferate and the retail landscape becomes increasingly fragmented. • Target high opportunity consumers and monitor your performance across all channels. including: –Make-up/Color Cosmetics –Facial Skin Care –Hand & Body Skin Care –Self-Tanning –Bath & Shower –Men’s & Women’s Fragrance • The Spectra BehaviorScape™ Framework. The Beauty Care Panel gives you: • The most comprehensive measurement of Beauty Care purchase behavior across all channels in 32 beauty care categories. 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. marketers are challenged to find a complete measure of their brands’ performance and identify high opportunity consumer segments and new product opportunities. To learn more about the Beauty Care Panel. ACNielsen’s Beauty Care Panel provides the most complete. From massmarket to high-end/prestige brands and from supermarkets to specialty beauty stores. accurate and actionable view of beauty care consumers across all categories and channels. which helps you increase the effectiveness of your marketing dollars. • Evaluate new product performance and quantify cannibalization.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. please contact your ACNielsen Client Service or Retail Services representative or visit our web site at www.acnielsen.com. The Beauty Care Panel will help you: • Identify high opportunity distribution channels and quantify the sales opportunity of gaining distribution there. .
Will. then think again. What is an emoticon? 5. by: Tom Pirovano Retailing Insights ACNielsen So how did you do? If you were able to answer 8 out of the 10 questions. What is Naruto? 9. While it is true that all teens go through the same growing pains. 9. 7. They were born and raised during a digitized age where change happens rapidly. listened to Gnarls Barkley or used the acronym ROTFL while instant messaging. then find yourself a teenager and get educated. homework and a strict schedule of sporting and other activities. simultaneously. Paris Hilton. What is the starting price for a Tracfone? 7. The wireless Internet is their central nervous system. music downloads. over-stimulated. they have learned that what they want. c) a teenager wannabe. Green Day.I. Teens Through the Decades on page 24). right? Not necessarily. represent a group of wellconnected. everything is immediate. see if you can answer the following questions: 1. they get. 6. then it is time to brush up your knowledge of this influential and lucrative market segment. Jimmy Brooks. Who said. then you are either: a) the parent of a teenager. Jack Black. Today’s younger generation. While it may seem easy to develop a systematic marketing plan (if teens = computers. text messaging. connecting in the right places at the right time to the right audience is a challenge at best. 2. but will also deliver messaging that resonates with the world they live in. Test your teen aptitude If you are thinking that teens do as teens did. In their world. Born into the MTV generation where the rally cry was “I want my MTV” . Who hosted MTV’s 2006 Video Music Awards? 4. Kip Dynamite. history tells us that each generation leaves behind its own distinctive mark (see U.com. They represent the future. media-savvy consumers who are open-minded.99. Tune in to what drives this very diverse group of consumers and you will not only score points on the “uber-cool” chart. typically called Millennials (born between 1980 and 2000). Japanese anime series. If they’re that connected. A moving target Teens are a moving target. if you are like most of us and had some trouble. 10. Who is Shiloh? 20 Fall/Winter 2006 Answers: 1. b) an actual teenager.Am or Fergie. Who is one of the lead singers for the Black Eyed Peas? 2.S. they just don’t need much else. then connecting with teens should be simple. optimistic and well-educated. easily balancing e-mail. Millennials are the first generation of true multi-taskers. This generation is more adept at communications than any of its predecessors. However.Who are two main characters on “Degrassi the Next Generation”? . 5. To test your knowledge of today’s teen market. 10. Daughter of Brad Pitt and Angelina Jolie. “That’s Hot”? 6. Emma Nelson. Billie Joe Armstrong is the lead singer of which band? 8. 3. and simply put. “Don’t be jealous that I’ve been chatting online with babes all day”? 3. 8. instant gratification is their mantra. Emotion Icon =) made using punctuation or type. 4. From instant messaging to microwave meals.Tune Into Teens: Test Your Teen Aptitude If you’ve never visited YouTube. Who is known for the phrase. then website advertising = success). or d) a superbly in-sync teen marketer. $29.
Nearly one-third (30%) of 8–17-year-olds say they are involved in making family purchase decisions. For example. girls believe that they are more grown-up than boys. blog.” And don’t discount the hugely important gender differences. while boys’ interests trend toward games and electronics. It is also important to realize that “what’s hot” can be polarizing. or top single (Justin Timberlake’s “SexyBack”). For each loyal fan of Justin Timberlake. kids are earning $29. it is more important to develop tools and approaches to monitor and anticipate changes. two dollars more than in 2004. whether the latest video craze is Nintendo DS Lite or GameTap. teenagers represent a powerful buying force in the U. 22 Fall/Winter 2006 . there is another teen who simply abhors him. According to the 2005 Roper Youth Report. Rather than focusing on what’s hot right now. Therefore. Or why Paris Hilton. Take. nearly a third of high school seniors reported having a credit card of their own or one co-signed by a parent. you can be sure of one thing: what’s hot today is not tomorrow. Interestingly.com for the most popular ringtones. tap into the fickle world of teen trends by checking out websites such as Billboard. a typical eighth grader compared with a college student. and spend their money on very different things. market. For better or worse (probably the latter). who is in her mid-twenties. where teens connect with others. young people take their cues from those a few years older than themselves for trends. or the hottest digital songs (Fergie’s London Bridge). or number one album (the self-named Danity Kane). teens are also enamored by the magic of credit. Whether the new fashion is Crocs or Lacoste. which increases as kids shift from the 12–14 age bracket to the 15–17 one. and grouping them together could be a roadmap for disaster. According to the Jump$tart Coalition for Personal Financial Literacy.S. when analyzing teens. is the Nintendo Super Mario Brothers Theme by Koji Kondo. Anybody with kids knows how different boys are from girls. because for each teen fad with adoring fans. This may be why the Harry Potter books and movies which feature teens have their strongest appeal to younger children. there is a subset of teens who simply hate it.Equally different All teens are not alike. Stay ahead of the curve For the most part. Or why movies with a PG-13 rating are more enticing to teens. who garner more universal appeal. which btw. such as jewelry and clothing. For example. for example. as of this writing.20 per week. both spend money on music and movies. this love/hate relationship seems to be more common with the “beautiful people” than with stars like John Heder or Jack Black. and much more. Cash or credit The fact of the matter is. Chores (37%) and gifts (23%) account for other popular sources of teen income. boys and girls need to be viewed separately. While Disney’s “High School Musical” is all the rage for one. with 29% of their money coming straight from parents.com. the other is much more engaged by the latest drama on MTV’s “The Real World. However. rank music. 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. is a fashion icon for many teenage girls. Finding a teen idol as a spokesperson for a brand could divide an audience. up four percentage points from last year. Another popular teen website is MySpace. an educational organization.
” AXE now generates $269 million per year in the food. 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. 150+ Chart 2: Girls spend more on clothes than boys LifeStyle Cosmopolitan BehaviorStage Centers Male 12–14 Male 15–17 Female 12–14 Female 15–17 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. BehaviorScape Framework. High Consumer. Another product high on the dollar volume index scale purchased by households with teens offering a unique edge is Hershey’s Ice Breakers gum that explodes with a burst of mouth-freshening extra mint taste. Penetration (Population)/% Penetration Index. All Channels/United States. get ready to stock up on deodorants. All Channels/United States. categories such as these are greatly overdeveloped for the teen market. Appealing to the raging hormones of boys (and young men). Penetration (Population)/% Penetration Index. BehaviorScape Framework. 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. 120 –149 Very High Consumer. 23 . acne remedies and other personal care products. drug and mass merchandiser channels (including Wal-Mart). but not teens. Take for example Unilever’s AXE deodorant for men. different or cutting edge. the product comes complete with its own risqué website where the “AXE effect” promises to attract the opposite sex “when used responsibly. Cutesy advertising featuring Hilary and Haylie Duff appeals like a gem to their target audience.Products with appeal If you live in a household with a teen. Chart 1: Boys spend more on video games than girls LifeStyle Cosmopolitan BehaviorStage Centers Male 12–14 Male 15–17 Female 12–14 Female 15–17 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. most cereals are marketed to either young children or adults. For example. According to information from ACNielsen Homescan. there is a tremendous untapped opportunity to cross-merchandise. grooming aids. While that may not come as a complete shocker. While these products get high marks for originality. instant meals and school supplies—in that order.
S. Elvis Many jobs available to Presley. The importance of analyzing teens by both age and gender is illustrated in the following example. letter sweaters Term “juvenile delinquent” coined • Car hops (before drive-throughs) Zoot suits for young men. Interestingly. Fueled by this survey. a more granular approach is necessary. saddle shoes. fox-trot and shimmy (dances) • Flappers • Flagpole sitting • Marathon dancing • Jazz • Emily Post’s manners book • First peanut butter & jelly sandwiches • First Miss America • The Depression • Fair Labor Standards Act limited the age of child laborers to 16 • Roosevelt’s Civilian Conservation Corps • Long-playing phonograph records • The “golden age” of radio • 250. products. It provides single-source measurement of major media. however. beatniks victory gardens • Marilyn Monroe. Using Simmons Teen National Consumer Survey (NCS) data. Young males ages 12–14 are twice as likely as the average teen to spend their allowance on video games. The NCS Simmons Teens Survey is a comprehensive survey of American teens aged 12–17. James Dean teens during WW2 • Telephone booth stuffing Seventeen magazine founded in 1944 • 3D movies The jitterbug (dance) • Poodle skirts. targeting households with teens is just a start. teens in Struggling Urban Core neighborhoods are also 38% more likely to buy. services and indepth consumer demographics and lifestyle/psychographic characteristics. Boy Scouts and Campfire Girls founded • World War One • “Newsies”—kids selling newspapers • Many teens worked vs. rationing. For some products in which consumption is driven by individuals.S.” 24 Fall/Winter 2006 . attending school • The Charleston. the Teen Targeting Solution allows marketers to more precisely market their brand to the teenager who buys the product. U.Aligning the cross hairs For marketers. 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. “slacks” for women • Sideburns Largest number of teen marriages after WW2 Swallowing goldfish “Kilroy was here.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. Teens Through the Decades 1920s 1910s • Youth Crisis— Kids spending too much on gambling and watching movies • U. • Jack Kerouac.
A successful marketing campaign to teens will provide the foundation for brand loyalty and growth among this generation well into the future. 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. subtle neighborhood differences are also exposed. 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. online chat rooms • Beanie babies • Piercings. Zooming in Once the teen consumer has been identified. they also are the next generation of consumers who will fuel growth for all brands in the CPG industry. Beatles Bell bottoms. tattoos • Boy bands—Backstreet Boys. In addition. N Sync. a targeted profile of the Brand A teen consumer is devised to reveal what magazines they read. Think back to when the iPod Nano was introduced in September 2005 and the Video iPod in October 2005. earth shoes • Disco • First video games • Rocky Horror Picture Show • Ecology • • • • • • • • • • • • • • • MTV goes on the air Latchkey kids Jelly shoes Video arcades Rubik’s Cube Boom boxes Rap. Gameboy • Rubber wristbands • Reality TV shows • Tivo. MP3 players • Mobile phones for teens. and are very music oriented. Thus. Vietnam British invasion. ■ See charts 1 and 2. but several mainstream retailers continued to advertise these models while selling the incompatible accessories. turtlenecks The twist (dance) Love beads Surfing Tie-dyed shirts Bouffant hairdos. Afros Go-go boots Hippies.By contrast. In addition. what TV shows they watch. 98 Degrees • Grunge • The Macarena • Extreme sports • Christian music • “Seinfeld. direct marketing can begin. are savvy with money.” “Friends. Apple discontinued their older models. break-dancing Hacky sack Trivial Pursuit Madonna. female teens are much more interested in the fashion scene. not only do teens represent a large share of some product’s volume. and other John Hughes movies Big hair Live Aid Music on CDs Mullet haircuts 1990s • The Worldwide Web. hair ironing.” “Simpsons” • DVDs • iPod. what websites they surf. At that time. camera phones • Xbox. Teens in more downscale areas. Michael Jackson The Breakfast Club. fantasy leagues • Body sprays • September 11th 2000s what’s next? 25 . DVRs • MySpace.com • Low-rise jeans • Napoleon Dynamite • Sports gambling. They have good access to home computers. in the upscale urban areas characterized by Cosmopolitan Centers. The next big thing Keeping abreast of the next big thing on the horizon is critical. 1980s 1960s • 40% of the U. • • • • • • • • • • • • population was under 20 years old in 1965 Woodstock Protests. and are less likely to watch TV. civil rights. text messaging. wear clothes that reflects their musical tastes and are likely to characterize themselves as rebels. For example. 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. They know what songs are in the Top 10. teens are more likely to be achievers. hip-hop. Miami Vice. mini skirts. how they spend their free time and where they shop. Playstation 2. page 23. O-town. are more likely to access the Internet at school. spending far more than average on clothing. Struggling Urban Cores. marketing programs designed only for the household or for the adult consumer will not offer the most effective way to reach heavy teen consumers.S. Using the Spectra system.
To learn more about New Product Alert. For the first time. The standard “reasons for trial” question provides normative benchmarks to evaluate the effectiveness of your marketing plan. recall effect is virtually eliminated. Since households transmit purchases the same week they shop. • use bright colors and splashy graphics to complement their fast-moving lifestyles and personalities.acnielsen. Knowing who uses the product. • view videos posted on YouTube. 26 Fall/Winter 2006 .com and see who advertises there. A few recommendations include: • track what kinds of gift cards teens give and receive and find out what they redeem. a brief online survey pops up asking the panelist to respond immediately. Look for ways to connect with the iPod and podcasting craze. Instant Surveys Homescan® panelists with online access transmit their purchases via the Internet. • learn about Zune. wonderful teen years. • visit popular teen web sites such as MySpace. you have to think differently—even if that means stepping back (or perhaps forward) in time to relive those dreaded. :) C i Wouldn’t it be nice to know why a customer purchased your Instant Consumer Feedback on Your New Products product—just after they made the purchase? ACNielsen Homescan’s New Product Alert provides unique insights to understand the motivation behind purchases of new products. please contact your ACNielsen Client Service or Retail Services representative or visit our web site at www. No other research method allows you to survey early adopters of specific UPCs. Custom questions can be used to address specific marketing issues. • check out iTunes and discover the top podcasts. • be careful to speak their language and don’t use terminology that is old news (“da bomb” or “bling-bling”—now just “bling”). simple observations can be made to help keep in tune with what teens are buying and what they are interested in. If any of these products are purchased. This may be the next hot device. which shows no sign of slowing. Purchase data is instantly interrogated for defined UPCs of interest.com. In order to make a difference.While we can only speculate about what will happen in the future. Microsoft’s answer to iPod. The bottom line is this: understand your audience. you can reliably quantify the factors influencing the purchase of your new products almost instantly after trial.com. how satisfied they were and whether they would buy it again give you the insight necessary to ensure new product success.
products. Individual purchasing behavior. • Identify media outlets to reach your teen consumer. Understanding the unique nuances of your teen consumer allows you to execute a marketing strategy among all the consumer segments that purchase your brand. not only do teens represent a key driver for many brands. which helps you understand the teen consumer. Solution Using Simmons Market Research Teen Survey. • Compare teen profiles to the adult’s consumption for products purchased for individual consumption. apparel and personal grooming products. ACNielsen Homescan & Spectra has developed a Teen Targeting Solution. consumer electronics. attitudes and opinions can vary greatly by age. beverages. For more information. • Locate teens in the neighborhoods they live and go to school. they also represent the next generation of consumers who will fuel growth for all brands in the CPG industry. It provides single-source measurement of major media. media exposure. please contact Sean Jafar at sean_jafar@spectramarketing. • Create a teen profile for your brand. and in-depth consumer demographic and lifestyle/psychographic characteristics. The Simmons Market Research Teen Survey is a comprehensive survey of American teens aged 12–17. Fueled by this survey. identify the best way to reach teens and locate teens in their neighborhoods. the Teen Targeting Solution allows marketers to more precisely market their brand to the teenager who buys their product. A successful teen marketing program will provide the foundation for brand loyalty and growth among this generation well into the future. In addition.Individual Targeting Solutions for Teens All teens are not alike. The Teen Targeting Solution helps you: • Evaluate brand opportunities among different teen consumer segments for household products. . gender and lifestyles—especially when it comes to categories such as snacks.com. services.
the customer touchpoint in every marketing equation. For each employee to serve as a self-actualized unit. reporting style and approach are exclusive to your company Get connected In the knowledge economy. Custom-designed to your unique specifications by ACNielsen consultants. The look. Empowered salespeople represent the forward line. and the arcane combination of psychological and social skills necessary to close a deal. That need spawned the fast-track development of ACNielsen Answers® Presentation Builder. by: Russell Evans Business Technology Solutions ACNielsen Few jobs require as much independent thinking and employee empowerment as sales. 28 Fall/Winter 2006 . accurate information represents the best armor they’ve got in the profit wars. there must be organic. distribution or other issues. argue a price increase or stave off a competitive threat.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. Their knowledge base reaches across the enterprise from an understanding of customers to products and services. Metcalf’s Law: The value of a computer is proportional to the square of the number of connections it makes. pricing. • whether policies and procedures exist to define and shape empowered behaviors. seamless connectivity to all parts of the organization. Unlike employees in silo or niche areas. • whether information technology facilitates ready access to needed data. be it about product. salespeople need to reach out and connect disparate information from diverse sources in quick time to effectively address customer needs. salespeople need a virtual arsenal of presentations capable of being refreshed with current data at the touch of a button. To be effective in today’s hyper-charged. customized. and they’ll tell you that timely. everything revolves around the concept of connectivity. feel. the competitive set. the application automatically populates templates using the data calculations and benchmark metrics you choose. • whether review systems capture. Any number of factors play into empowerment—for example: • whether it has been embraced as a corporate value and validated from the CEO office on down. a best practices solution that automates and standardizes the development of data-driven presentation decks. the guardians of differentiation. The bulletproof concept resonates with every salesperson who has ever had to sell-in a new product. and Metcalf’s Law serves as the behavioral guideline. Technology to the rescue Ask any successful salesperson. • whether support mechanisms are in place to initialize or enable field decisions. measure and mete out rewards for taking action. processes and systems. store-level–focused retail environment. They are the ultimate players in the so-called knowledge economy.
and the number of presentations each Dan creates in a year. better store-level execution and more direct sales time. Best of all: Dan’s employer just saved over $1. 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. A truly great deck can facilitate a contract. Dan is looking at more than 7 hours of grinding work. and in alignment with brand standards. Perform final edit/run/testing of deck 6. Dan needs to prepare a 20 slide presentation deck summarizing the most recent performance in the Chicago market. a typical manufacturer sales representative serving the Midwest region. Log into ACNielsen Answers portal 2. Last minute changes and updates become a mere matter of logging on instead of experiencing logistical logjams. Design slide and manipulate data into presentation format 5. so every minute off-line translates into a minute behind the times.and readily accessible via any Internet connection when and where you want. designers scoped ACNielsen Answers Presentation Builder as a web-based tool that delivers presentation decks directly to a laptop or desktop. Determine data requirements by slide 4. ■ See chart 1. presentations are a fact of life. Recognizing the need to stay connected. Take the case of Dan. he can finish the job in under 7 minutes. prospects and business partners. Presentation Builder frees up valuable personnel for invaluable face-to-face time with clients and other high value-add activities. continued on page 32 30 Fall/Winter 2006 . 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. Multiply that number by the number of Dans in the organization. with Presentation Builder. Establishing a consistent presentation format and methodology ensures that the corporate brand is communicated correctly. Presentation power In the fast-moving consumer goods industry. Productivity aids help compensate by enabling people to log on. Select appropriate deck template within Presentation Builder 3. 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. 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.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. throughout the organization. Secondary benefits that accrue from presentations include the opportunity to enhance the corporate brand image and values with key audiences like customers. Without Presentation Builder. tune in and reach out from virtually any location. and the results will show up on the top and bottom lines as you reap the benefits of improved customer relationships. Request email notification when complete 5. 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. Create calculations 3. substantiate a strategy and move a group toward consensus. inability to articulate value. Determine which slides need to be built 2. By automating repetitive and time-consuming tasks. Submit a request new deck with Chicago market 4. 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. and lack of an organized sales process.
delivered through ACNielsen Answers® eliminates the time-consuming task of pulling syndicated data content into the right format for client-ready presentations. Presentation Builder. Increase your productivity by having online access to key information to manage your business. where you need it. ACNielsen Answers Presentation Builder allows you to: • Automate the process of creating standard business presentations. ACNielsen Business Technology Solutions consultants can automate the creation of your standard business presentations seamlessly. You design the presentation format and standard data calculations. Countless hours are spent building presentations. One Place. call 800. This intelligent solution uses advanced proprietary processes to effortlessly create your presentation decks.988.acnielsen. your presentation data is delivered directly to your desktop. and our expert consulting teams do the rest. .com. This time-saving solution is available when you need it. • Free up resources from the routine task of building presentation slides. .4ACN or visit our web site at www. ACNielsen announces a way to reduce your presentation building time significantly. • Gain web-enabled access anywhere. Contact your ACNielsen representative for more information. All the Answers. • Standardize the format in which content is presented to your customers. anytime. Accessible from any Internet connection via ACNielsen Answers. 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. One Click.The Answer for Busy Professionals Standardized client-ready presentations are a fundamental necessity in today’s business environment.
empowering employees by putting the right technology. what competitive information to feature— have been thought through and programmed in. There are no issues with misplacing data or crashing a computer. they become part of a template that ensures consistent data presentation and review within and across accounts. automatically synchronizing data for easy aggregation. the bane of every salesperson who has ever juggled a cell phone. Once the sales group has agreed on client metrics and presentation flow and defined the desired templates.” Smart companies are those that act like it. all a sales rep needs to do is update a deck with fresh data before a customer meeting. so nothing goes missing or gets lost in translation.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. each rep. Power to the people You’ve heard it a million times: “people are our most important asset. each account. promotion penetration or distribution reach. from a rapid ROI calculation on the spend. That way. All the time-wasting decisions—which data to show. detailed view of their business. the most highimpact way to illustrate them. what comparisons will be most powerful. laptop. shares a consistent. each meeting. we come to the issue of organization. This self-organizing feature proves especially helpful in global situations. market share. each contact. Once the most important value levers for the customer have been identified. tools and training in place to guarantee success. C i 32 Fall/Winter 2006 . Presentation Builder reserves critical information on the server. how best to express them. Value can be expressed any number of ways. customer file and call sheet while sitting in the airport lounge or reception area. PDA. Getting organized Finally. to anticipated increases in product movement. accessible via the Internet.
. reduce costs of business and improve your competitive position by converting all types of consumer information into valued intelligence. • Streamlined delivery of information and insights in a timely manner. to make educated. forecasting. All the Answers. space management and replenishment. detailed information on your category. item assortment. alerts and presentations over the Internet. ACNielsen Answers helps you: • Address critical business issues relating to brand/sales management. faster. • Access to categories defined by a specific retailer—both in terms of the category itself and the retailer’s trading areas. so that the right decision can be made in a repeatable manner. • Direct marketing and merchandising activities with on-the-fly. timely decisions.acnielsen. One Place. consumer management and retail management. • Access business-critical information in a web-based environment Review personalized market information reports. fact-based solutions. intuitive web-based environment. please contact your ACNielsen Client Service or Retail Services representative or visit our web site at www. pricing. ACNielsen Answers ® revolutionizes the way you make business decisions by addressing your most pressing business issues in a user-friendly. • Make better decisions. by collaborating with your service team and using best demonstrated practices. To learn more about ACNielsen Answers. such as CBP ®–Category Business Planner. headlines. category management. proprietary internal content and links to other third-party content. timely decisions offering you the right information. at the right time. • Access to personalized. • Hyperlinks giving you drill-down.Open your window to collaborative business intelligence One Click. promotional programs. Spend less time searching for and organizing information and make fact-based decisions on category business planning. ACNielsen Answers enables you to access and analyze mission-critical information to make educated. and Homescan® & Spectra® content. in the right format. Sales Management Planner. Gain access to ACNielsen Answers business-oriented solutions.com. • Drive consumer-focused actions anytime and anywhere. • Grow revenue. ACNielsen Answers gives you: • Personalized “news” headlines answering key questions on your category’s performance.
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.Gas Price Hikes Put Brakes on Spending Crude oil prices ignited again this summer. Manufacturers and retailers will greet this with mixed reviews. by: Todd Hale Thought Leadership ACNielsen Homescan & Spectra (68%) of respondents adopted this tactic. and high fuel prices that convert into higher transportation and home heating/cooling costs are here to stay. drug and mass merchandiser channels. 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. price sensitivity enters the equation when consumers evaluate spending trade-offs. Encourage cocooning Setting politics aside. To gauge the nature and depth of the consumer response to fuel-flation. a seven percentage point increase from June/July 2005. ’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. consumers geared up for the long haul by doing some advance planning. surpassing the $70 a barrel threshold and pushing prices at the pump to an inflammatory $3+ per gallon. ■ See chart 1. club. These findings proved consistent with published reports about softness in some casual dining restaurants. maintaining the upward trend from October 2005 results. Factors like market speculation. 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”). On the other hand. given their reliance on petroleum-based products. 12% more consumers (almost half of all respondents) stated they were reducing spending to either a “small” or “great degree. when consumers cocoon. On one hand. manufacturing. dollars once spent dining or playing out will be diverted back to the grocery. we repeated a survey of ACNielsen Homescan Panel members that was fielded twice in 2005 (June/July and October/November periods). ” Clearly. it is clear that unrest in the Middle East will continue to put a crimp in the oil pipeline. leaving cashstrapped consumers scrambling to adjust budgets and spending accordingly. packaging and shipping costs will rise apace. continued on page 36 Source: ACNielsen Homescan & Spectra Panel Views Surveys 34 Fall/Winter 2006 . refinery capacity shortages and a pronounced decline in spare global oil production converged. 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. combining errands and trips to conserve gas. Think ahead As with last year’s surveys. Consider the fact that in the span of a single year.
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. this represents the first decline in dollar store shopper penetration since we first began tracking the channel. Changing habits Consumers also cited other budget-stretching adjustments to their shopping and purchasing patterns. clipping coupons to capture available savings. the sole exception among the “value” channels to lose ground. This is surprising on the one hand. home-cooked family meals and at-home entertaining concepts accelerate to the front of the strategy options. because gas price increases that affect those on fixed incomes and with modest means (the prototypical dollar store shoppers). ■ See chart 2. once on a seemingly unstoppable expansion trajectory. When queried about how changes in their financial picture affected their job. discovering that 44% of the 300 employed consumers surveyed worried about making ends meet. Respondents cited negative outcomes across the board. Premium and mid-grade gas patrons downgraded to regular. might be expected to drive more consumers toward dollar outlets. actually experienced a two percent decline in household penetration. The limited food and beverage assortment and lack of fresh foods at most dollar stores may be the force behind the decline. Warehouse club stores and Internet shopping options both benefited from the desire to keep the lid on the gas tank and spending. 36 Fall/Winter 2006 . where shoppers try to meet all their needs in the fewest trips possible. Among them are patronizing supercenters to buy in bulk at lower unit prices. and promotions touting at-home family fun nights. workfront A Florida State University professor explored different aspects of the fallout from gas prices. Target & Wal-Mart Supercenters Value pricing assumes even more importance in this volatile climate. related to more stress at home. results were alarming. In a surprising turn of events. more sensitive to daily irritants at work and more depressed overall. less agreeable and helpful to others. 41% were paying off debt more slowly and 25% had gone without basic necessities like food and heat to conserve funds. They were less enthusiastic about work and their employer. less productive.Gas Price Hikes continued from page 34 Chart 2: Dollar stores decline. It is less surprising in the context of trip consolidation. and switching to less expensive grocery brands. Homefront. Penetrating insights Dollar stores.
• Issue-oriented navigation capabilities for easy drill down to the information you need most. please contact your ACNielsen Client Service or Retail Services representative or visit our web site at www. Channel Facts. • Access to the full Consumer & Shopping Insights Syndicated Suite: Consumer Facts. Available in the U. With Homescan Consumer & Shopping Insights. Account Shopper Profiler.com. 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. presented in an issue-oriented menu for simple navigation to your most pressing business issue.Consumer & Shopping Insights—Online! Homescan® Consumer & Shopping Insights provides web access to the latest shopping insights available across all major categories and channels of trade. Get right to the subject. Homescan Consumer & Shopping Insights gives you: • Fastest access to the most recent data available.acnielsen. • Interactive graphs to expedite analysis for presentationready text and charts. Cross Outlet Facts and Category Management Templates. To learn more about Consumer & Shopping Insights. you won’t waste time wading through unnecessary data.S. .
Underlying reasons for the upticks include continuing store count expansion. Target & Wal-Mart Supercenters Dollar 2001 2005 mid-2006 Drug Grocery 87 93 38 Fall/Winter 2006 . in the penetration measure. respectively. A review of trip count results by channel suggests that grocery stores might need to re-examine their value proposition. Chart 3: Larger baskets in all channels—consumers making fewer small trips Average $ basket ring—Total 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.Concurrently. for a total of $93 per trip. ■ See chart 3. they walked the walk and reduced the number of shopping trips in every channel except warehouse clubs. mass merchandisers and supercenters. buy more” reaction to gas prices. Trip decay Trip count results proved that consumers not only talked the talk. and a relentless commitment to delivering consumer value. the competing warehouse club and supercenter “value” channels enjoyed two and three percentage point increases. but the grocery trip frequency declined at twice that rate. as bigger basket rings across channels validated the “shop less. which held steady at 11 trips per household per year. which enhances accessibility. Warehouse clubs were the primary beneficiary of the new consumer spending directive. Basket bonanza Consumer behavior aligned with attitudes again. witness the $6 increase in the average trip receipt. Trip counts sagged by one trip per household at dollar and drug stores.
■ See chart 4. respectively. 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. they consume double that proportion (12%) for households earning $20. $47 and $63.S. getting by or the poor. While gasoline costs represent just 6% of the pre-tax household income for families earning $75. Drug and dollar stores sat at the bottom of the rankings with an extra $1 added to the average shopping tab. rising gas prices will impact the most those who can afford it the least.000 annually. economy. the implications are obvious for the manufacturers and retailers who target lower income households—get ready to feel the heat. Turning a moment to the rising cost of natural gas and other home heating alternatives.000 per year. consumers can expect those costs to increase as well. he raised the specter of continued upward oil price pressure leading to an observable impact on the U. Poor pay more Unfortunately.” However. minimizing the wallet wallop. How will the fuel 39 . Last year. a mild winter mitigated price hikes. raising the average consumer spend per format trip to $38. 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. former Federal Reserve Chairman Alan Greenspan remarked that American business “to date has largely succeeded in finding productivity improvements that have contained energy costs. In the aggregate. mass merchandisers and supercenters each experienced a $3 per basket expenditure increase. Resilient response In June 2006. A larger percentage of affluent consumers drive 200+ miles per week than those living comfortably.Chart 4: Those who can afford higher gas prices drive more % household by weekly mileage driven Poor 10 8 14 20 21 9 7 12 Getting By 4 3 11 21 20 13 9 19 Living Comfortably 2 1 8 16 20 16 12 25 Affluent 11 5 10 17 15 0 Miles 101–150 Miles 14 1–25 Miles 151–200 Miles 38 26–50 Miles 200+ Miles No Vehicle 51–100 Miles Source: June/July 2005 ACNielsen Homescan Survey Grocery. ■ See chart 5 on page 40.
consolidation scenario? Oil price pressures may precipitate any number of market responses in the fast-moving consumer packaged goods world. • added convenience store features.000 11 $2. • enhanced interest in large pack sales. 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.Chart 5: Rising gas prices will impact low income households and the retailers/manufacturers that serve them At $3 a gallon $20. including: • accelerated private label product growth.000 6 $4.000 Annual Income Dollar Amount 12 $2. • increased emphasis on trip capture.000 8 $4.820 $50. and it will not be large enough to offset the chronic and increasing U.S. demand. As an industry. the United States will need to wean itself from oil dependency by developing viable alternative fuel options such as ethanol.179 $75. Change in attitude As a country. and re-evaluating our fundamental relationship with non-renewable energy sources. industry experts predict it will be at least four years before that fuel supply impacts consumers. 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. • broader assortments. moving to gas-saving hybrid vehicles like the popular Toyota Prius. C i 40 Fall/Winter 2006 . • value-based pricing. 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.647 Gasoline costs as % of pre-tax household income Source: Department of Energy. positionings. • at-home entertainment focus in advertising and promotions. Even if the recently discovered Gulf of Mexico oil field turns into a gusher.382 $25.
treating an entire retail chain as if it served a single shopper type often results in missed opportunities.O. This consumer-centric approach links actions in the store—where they matter the most—back to the consumers most likely to purchase your brand. Four steps to success The acronym C. is to find an approach that enables scalable action based on store-level insights to position a company for success with consumers. systematic four-step process that we call “Cracking the Retail C. 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.O.E.E.D. Store-level growth opportunities exist. 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. You know how the DaVinci code was solved. 4.O. As the only common denominator across brand. you held the key to unlock sales potential at the store level all along: the consumer. the competitive set. First. without resulting actions. It is a different way of looking at business. You’re pretty good at Sudoku.E. Realize that things are not always what they appear to be. Winning at retail is enabled by applying a simple. This strategic approach provides a deeper understanding of the consumers around a given store. no bedrock rule about how a category acts in response to consumers.O. repeatable framework for success.D.Cracking the Retail C. one with an upside that pays off in sales and profits. Consumer profiling—accurately captures the demographic profile of the brand’s consumer. It takes the right tools to integrate action and insight into a cohesive. Dynamic clustering—groups similar stores using multiple store attributes. Two common factors often hinder the ability to take advantage of store-by-store growth. by: Bill Rouse Wal-Mart Analytics ACNielsen Homescan & Spectra Jon Busman Marketing ACNielsen Homescan & Spectra zero.D.? Turns out. What’s needed.E. 2. 3. but they are often difficult to identify and procure with a reasonable return. it is imperative that store-level strategies and tactics begin and end with the consumer. summarizes a methodology that begins with Consumer profiling. the four steps to success in store-level marketing. and upside opportunity. consumer insights alone. account and store activities. 1. Second. Opportunity gapping—quantifies store-level opportunities based on consumer demand potential and diagnoses the prospect. There is no silver bullet report with all the answers. giving the field force the right information to optimize in-store presence. But do you know how to crack the retail C.” The methodology employs a series of critical steps to optimize brand or product success in the marketplace. measures the gap between actual and potential demand. Consumer-centric planning is about analyzing specific groups of people and identifying how to impact them where they shop—at ground 42 Fall/Winter 2006 . the store level. simply turn into overhead. Dynamic clustering and Executing for the consumer. then moves to Opportunity gapping.D. product. including shopper demographics. Executing for the consumer—takes findings from steps 1–3 and develops store-level tactical plans.
Step 2: Opportunity gapping Are you leaving sales on the table? If so. just as shelves do not mysteriously empty by themselves. to scoring an account at the store level based on the most volume-predictive consumers.E. consumer profiles can be used individually or in combination to formulate step one of Cracking the Retail C. There are various types of consumer profiling information available. from panel purchase behavior to attitude and usage studies to focus groups. but without action it just becomes “nice to know. and Opportunity Finder solutions to “consumerize” product movement data. The degree of sophistication can vary from profiling your consumer and identifying a common trait within a retailer (i.” In order to quantify opportunity. This approach yields granular analyses down to the SKU level.E. Through consumer regression profiling.O. The result is improved operational execution.E. an account’s store-level fingerprints.D. matching high income consumers to a high income account like Whole Foods). The analyses become retail-specific.O. also known as the Spectra Demand Index.O. approach is no different. instead of only trying to capture my fair share of yesterday’s volume. reduced out-of-stocks. 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. which adds power to the recommendations. slotting and the like all influence purchasing. matching the consumer profile to the known shoppers of an account is critical. 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. it becomes possible to create a sales-weighted store profile by estimating future consumer demand for products based on historical sales data. what if you could estimate how big the slice would be? Consumer profiling is the first step in executing the C. Products do not buy themselves. Regardless of source.D. that the C.D.D. In essence. while Step One determines your consumer’s fingerprint.e. brand equity. fewer overstocks. It is only appropriate then. enabling retail-specific and item-specific store profiles.O. “Opportunity gapping provides an indication of how much the category could grow tomorrow if I could fully execute. competition. based on the retailer’s own data. approach.. While price reductions. approach starts with consumer profiling. Now you have a basic roadmap for tomorrow’s volume. the common denominator is the consumer. Traditionally. enhanced promotion performance and better inventory management.” –Michael Himmelfarb. ister rings? Opportunity gapping quantifies the opportunity cost to each store for missing the mark two ways—either with consumers or on the execution level.the potential demand. Step Two matches it to an account’s fingerprint—or even better. point-of-sale (POS) data has been utilized to tell us “what happened” but not who drove it. ACNielsen Homescan & Spectra recommends utilizing panel data to determine category and brand breaks. how much? What needs to change to convert potential and lost sales into reg- 44 Fall/Winter 2006 .E.
Similarly. most fall into four major groupings: 1.Windshield vs. Director ACNielsen Retail Execution Services Clustering attributes While there is a virtually limitless set of criteria upon which clusters can be based. steering brands and products by looking through the windshield instead of the rear-view mirror.D. or a volume-predictive measure of consumer fit. is the cornerstone of scalability. distribution voids. 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. 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. Promotions can then be adjusted to focus resources on areas with the highest potential upside. or the promotion itself. Consumer Attributes. cross merchandising and correct shelving. 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. as the Harvard Business Review calls it. 16% of stores won’t have available space.E. This approach focuses action on stores that show growth opportunity.O. In essence. 33% will put up the displays too late and 42% won’t have the skilled labor to execute the promotion. This is most clearly seen in the growing number of retailers adopting local or neighborhood marketing initiatives. affluence of the shopper. These may include DSD sales routes. additional labor. Demand inhibitors include competition. More than a capability. regions or districts. methodology puts marketers in the driver’s seat. Step 3: Dynamic clustering Clustering. and wish to optimize store conditions at the local level. clustering has become an operating necessity in today’s fragmented marketplace. 2. Case in point In a typical promotion scenario. out-of-stocks (OOS). These may be as simple as grouping stores based on a common trait like ethnicity. 22% won’t display the promotion signage. Organizational Attributes. or localization. 45 . rear-view mirror The C.” –Paris Gogos. “Retailers and manufacturers are becoming more precise in their targeting of consumer segments and wish to optimize store conditions at the local level. warehouse locations. Wal-Mart announced they were dropping their one-size-fits-all approach to stores. or specific shelving sets. Demand drivers include activities such as promotions. Most recently. manufacturers are becoming more precise in targeting of consumer segments. and incorrect shelving or space allocation. Opportunity gapping identifies problem stores—those that should have sold more based on the consumer fit and performance of similar stores.
but clustering is a necessary prerequisite for integrating action to “crack the retail C. and improving logistical execution to squeeze more bottom-line profit out of even more top-line sales. holds the secret to finding opportunity gaps.D.” defined dynamic clusters—can now be managed by following the four-step C. See pages 48 and 49 for a case study that illustrates the C. These can range from basic sales rates to promotion response to consumer-driven category opportunity gaps.O.O.O.E. approach makes high definition marketing possible. process in action. Some companies may be able to execute effectively using just two clusters.O. promotional and sampling programs. manufacturers and retailers can collaborate on promotional and assortment strategies with optimal appeal to the right set of consumers. The C. Dynamic clustering brings criteria together into a cohesive framework that leverages critical differences within the store segments.D.E.D.D. Store Attributes. Performance Attributes. The C.O. others may require 200. 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.3. approach takes us full circle. with shared definitions for target clusters or stores.D.D. and operational strategies that take cost out of the system by reducing inefficiencies such as out-of-stocks and distribution voids. Working from a shared viewpoint. back to the consumer and how best to shape and direct activities to each store or cluster’s shoppers. 4.E.E. making the most of consumer profile information.E. Merchandising strategies based on item roles. C i Step 4: Executing for the consumer The final step in the C. space and facing allocations—all tailored to 46 Fall/Winter 2006 . allowing marketers and retailers to zero in at the most granular level possible—the store.E.O.
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Joe’s Cookies followed the C. and the store shelf set and total sizes were virtually identical. The analysis determined that store opportunity varied greatly once the consumer was inserted into the equation.E. Joe’s Cookies targeted the real underperforming store. A consumer trade area analysis for each store uncovered very different shopper bases.O. Chart 1: Cookie consumer profiles Cookie Category White African Am. This exercise was repeated for other chains to diagnose the amount of unconverted opportunity by account and develop tactical plan for realizing untapped potential. The result of this analysis: Joe’s Cookies gained an understanding of how its brand consumers differed from the overall cookie category and competitors. was in a rural setting with many households with kids in its consumer trade area. Joe’s Cookies found Store A and Store B identical in every transactional way.000 per year and lived in a household with children. Hispanic < $50K $50K+ $100K+ No Kids in HH Kids in HH Med. Instead of allotting resources against a store that appeared to be an under-performer.000–$100. ■ See chart 1.E. Store A was not the underperforming store it initially appeared to be. initially thought to be over-performing in its trade area. Store B. and then used Spectra Opportunity Finder Solutions to profile individual SKUs. on the other hand. if not all. the company used panel data to profile the total category. The typical Joe’s Cookies buyer skewed to African-American and Hispanic ethnic makeup. Store A was located in an urban setting with many households without kids in its consumer trade area. but in fact. As a result. Joe’s Cookies had two facings in each store.D. of its opportunity. sales results for Joe’s Cookies were anything but identical. ■ See chart 2. method and assessed the different demand drivers and demand inhibitors affecting the store in order to chart a path for Store B growth. had captured most. earned $50. quantifying the consumer opportunity gap.O. Store B. However. Low High High Low Very High Low Very Low Very High Jane’s Cookies 16 oz. High Low Low Low High High Low High Joe’s Cookies 16 oz.Cracking the C. Since Joe’s Cookies had low penetration in the marketplace. while Store B sold closer to $230 per week. For example. A Case Study Step 1: Consumer profiling Joe’s Cookies utilized a hybrid of ACNielsen Homescan Panel data and POS-based profiles to identify its preferred consumer. 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 Kids—Urban Consumer Trade Area Many Kids—Rural Consumer Opportunity Gapping Gap Upside: $8 Source: ACNielsen Homescan & Spectra Gap Upside: +$130! 48 Fall/Winter 2006 . was actually under-performing and should have sold an incremental $130 more per week. Step 2: Opportunity gapping Joe’s Cookies then ranked retailer stores based on the “fit” between the store consumer profile and the Joe’s Cookies consumer profile. Store A sold approximately $90 per week of cookies.D.
Step 3: Dynamic clustering The next step for Joe’s Cookies was to make similar recommendations to its retailer that could be executed in a scalable manner.7 million in sales.? Your sales depend on it. Demonstrating the power of Dynamic Clustering in action. region or trade area level. • assigning key merchandising roles to SKU-level items by dynamic clusters to determine the turf and image enhancers.O.O. but quantified the upside opportunity. Joe’s first cluster (Blue Collar Suburban) represented $2.O. opportunity gaps. Are you ready to crack the Retail C.7 Million Gap Sales Influencers 10 Stores $1.8 Million Gap Gapping Opportunity 68 Stores $0. C.E.D.E. It appears to be under-performing with respect to many product types and within certain cookie sub-segments. Chart 3: Dynamic consumer profiling—allows you to take action where there is potential Clusters Category/Brand Consumer Fit 20 Stores $2. In doing so. spread across 20 stores. store. Joe’s Cookies focused its efforts against several types of consumers and enabled action that was scaled yet appeared customized on the shelf. Joe’s Cookies clustered similar stores based on consumer. • determining the competitive forces affecting each dynamic cluster to assist with tactics. Joe’s Cookies implemented a dynamic clustering framework and pursued tactics that included: • identifying cluster potential to assist with assortment decisions.0 Million Gap 46 Stores $0. This approach allowed Joe’s Cookies to take action where it was needed and to minimize where it was meeting demand.0 Million Gap 22 Stores $2. Joe’s Cookies executed against the opportunity for its brand and the category. when applied from the category down to the SKU level. competitive interaction and existing store sales. Step 4: Executing for the consumer Turning to tactical considerations.1 Million Gap Competitive Interactions Source: ACNielsen Homescan & Spectra 49 . • performing SKU-level rationalization based on consumer demand and potential sales by cluster to put the right product in the right store. 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. ■ See chart 3. Dynamic Clustering also identified which clusters were not only a strong fit. Your consumers demand it. The Retail C.D. • allocating shelf size based on dynamic clusters.7 Million Gap 35 Stores $0.E framework has helped many manufacturers and retailers unlock hidden sales opportunity previously masked by results aggregated at the account. and performance attributes including consumer fit.D.
■ See chart 2 on page 52. with the South Atlantic (21%) and East North Central (16%) regions leading on a household patronage basis. ACNielsen Homescan & Spectra took the public’s 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. 8% had visited an independent or freestanding walk-in clinic. consumers are warming-up to the walk-in clinic concept.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 Arthritis—Osteo Constipation Diarrhea Asthma Diabetes-Type II (Oral Medication Needed) Menopause Lactose Intolerant Arthritis—Rheumatoid 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. The ultimate in one-stop shopping. ■ See chart 1. ear infections. heartburn.S. patients can see a health care professional. hang a left to get the prescription filled. muscle pain. and another 1% had visited a walk-in clinic embedded in a retail format. walk-in clinics appear to be a perimeter phenomenon. drug store or mass merchandiser. Presently. the flu. 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. bladder infections. Source: ACNielsen Homescan Panel Views Survey—Feb/Mar 2006—Total U. In a Spring 2006 survey.” today they’re home to the real deal—walk-in clinics staffed by nurse practitioners licensed to diagnose and treat common conditions such as allergies. followed by the Pacific and West South Central areas at 13% each. minor burns and rashes. While half of participating households had visited a doctor’s office in the last year. bronchitis.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. Anyone who has cooled their heels in the typical general practitioner’s waiting room knows that that kind of turnaround time represents a true medical miracle. Households 50 Fall/Winter 2006 . The eastern geographic skew may reflect a travel pattern of older New Yorkers commuting between their winter home in Florida and the Empire state. pink eye. and be on their way in 20 minutes.
Source: ACNielsen Homescan Panel Views Survey—Apr/May 2006—Total U. Households Rx for the ER? One of the newest developments in consumer-driven healthcare. Among the more appealing aspects of the walk-in clinics are the easy physical access. intends to have 1. available parking. the most telling diagnostic is the profitability test. 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. One Minnesota-based health plan determined that the walk-in clinic fees are so low (a minimum of 30% below a regular doctor visit). the walk-in clinics benefit insurers as well. posted prices. evening and weekend hours. she walked out with two prescriptions and a bill for $49. Quote: $150 for the visit. walk-in clinics represent the latest response to a system that encourages patients to control health costs. if available in their area How likely would you be to use a walk-in medical clinic if it were available in a grocery. and an antidote for the 40 million uninsured Americans who represent the target audience. are designed and sited to feel like an extension of the store pharmacy counter. According to a California HealthCare Foundation study. Chart 2: One in three households is likely to visit a retail walk-in clinic. prescription drug margins run around 16% compared with general merchandise profits of less than 5%. As a serendipitous by-product. then roll out the service nationally. Solantic. One uninsured New York City paralegal priced out a doctor’s visit to deal with a minor problem. like the 100-square-foot MinuteClinics. a Florida-based company differentiating on the basis of physician staffing. intimate formats (smaller ones have chairs vs. virtually ensuring captive Rx sales. that the insurer waived any co-pay to encourage members to utilize the new service. walk-in clinics may prove to be a much-needed panacea for overtaxed emergency rooms.Everybody wins Many walk-in retail clinics. 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. and electronic patient files that can be quickly transmitted to doctors along with a referral. locations by 2010. including medications. While the retailer incentives are obvious and include driving traffic to the store.000 sites up and running over the next five years. proximity to home and work. even as center store results weaken. raising trip counts and creating the opportunity for incremental sales.S. C i 52 Fall/Winter 2006 .S. Profit prognosis If retailers needed any additional motivation to take a serious run at the walk-in solution. Opting to try the walk-in clinic solution. exam tables). The cost savings are undeniable. That translates into a profit injection for the bottom line. Wal-Mart expects to open 50 stores by 2007.
please contact your ACNielsen Client Service or Retail Services representative or visit our web site at www. • Identify potential candidates for mergers and acquisitions.com. 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. Consumer food marketers are flooding the market with a plethora of food products with health & wellness claims. low-fat. The mainstream trends like Whole Grain and Low/No Fat are still popular as consumers are responding to a nationwide concern with obesity. organic and sugar-free. While these trends are small. With over two-thirds of Americans dealing with obesity and many individuals on some sort of diet regimen.Track the New Health & Wellness Trends with a Few Clicks So what’s the new trend replacing “Low Carb”? There is much activity around Superfoods. To learn more about LabelTrends. they are certainly something to closely watch. • Assess competitor brand/item performance and develop counteractive strategies. such as low-carb.acnielsen. • Understand which health & wellness claims are most successful in building brand loyalty. LabelTrends help you to: • Understand the latest trends in the health & wellness arena and develop marketing strategies to provide consumer solutions. . as consumers are looking for food and beverage products that enhance their active lifestyle. 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.
Only ACNielsen Scantrack StoreView couples a high definition view of what just happened with the tactical planning ability to increase future consumer sales. a more precise way to pinpoint consumer demand. ACNielsen Scantrack StoreView Making High Definition Marketing Possible . most flexible and precise store level picture of what's selling where. the swift. and those who can manage through the complexity of today’s retail environment. 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. analyze merchandising activities and center in on micro-trade areas. ACNielsen Scantrack StoreView provides the clearest.It’s All About What’s Happening at the Store Level Success goes to the smart. Retailers and Manufacturers strive to recognize the diverse and changing faces of consumers. why and to whom. focus on sales performance. It allows for a new perspective. The store is where the best-laid plans shine or go awry. focusing on what increases demand while reducing what inhibits it.
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