Post on 05-Jan-2016
The Military Shopper
Thomas Milks
Director of Sales
April 24, 2007
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Demographics
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Who is the Military Shopper?
•HHLD Income $50K+•Female Head Age 55-64•Maturing Families Living Comfortably•Empty Nesters Living Comfortably•Affluent•Female Head Not Employed•Race Non-Caucasian•HHLD Head Not in Work Force•County Size B &C•South Region
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Top Military shoppers
Total U.S.—52 w/e 12/31/05 Consumption index based on total dollar ring
BehaviorStageStart-Up FamiliesHHs with Young Children Only <6Small Scale FamiliesSmall HHs with Older Children 6+Younger Bustling FamiliesLarge HHs with Children (6+), HOH <40Older Bustling FamiliesLarge HHs with Children (6+), HOH 40+Young TransitionalsAny size HHs, No Children, <35Independent Singles1 person HHs, No Children, 35-64Senior Singles1 person HHs, No Children, 65+ Established Couples2+ person HHs, No Children, 35-54Empty Nest Couples2+ person HHs, No Children, 55-64Senior Couples2+ person HHs, No Children, 65+
Total
Source: Spectra BehaviorScape™ 60-Microsegment Framework/EnLighten/Mediamark Research Inc. Doublebase 2005.©2006 Spectra Marketing Systems, Inc. All Rights Reserved
130
ModestWorkingTowns
64 126
130 74 115114
CosmopolitanCenters
AffluentSuburbanSpreads
ComfortableCountry
StrugglingUrbanCores
Very High: 130+
Strs- Fd-(Mltry Cmmssry In lst 6 mnths: Any *
PlainRuralLiving
Total
Buyer Incidence FrameworkLifeStyle
114 105 179
100
High: 110-129
133 111
65
106 79
133 56
74 5192 73
123 140 155 50
111 139
60 117
63 54
89 173 110 41
80 44
92 76 80 49
84 52
94 49
74 104
106 132 104 57
86 70
140 179 168 37 72
116
103
107
115
68
77
85
77
106
*Framework of Respondents to a MRI Survery that the Repsondent himself had Shopped at a Military Commissary in the Last 6 Months*
93
130
99 127 127 69 108 62
164
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Military shoppers are spending less of their wallet in the channel
MILITARY SHOPPERS % ALL OUTLET LOYALTY
MID YEAR 2006
15.9%
2.4%
7.8%
12.9%
1.2%
33.6%
1.4%7.2%
17.7% MILITARY
GROCERY
DRUG
MASS MERCH
SUPERCENTERS
CLUB
CONV/GAS
DOLLAR
ALL OTHER
Source: ACNielsen Homescan
Pt Chg vs MY
05
-0.7
-0.6
-0.1
-1.4
+0.3
+0.1
+0.3
-0.3
+2.3Driven by the
On-line Channel
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Military shoppers are increasing their share of Food & Bev wallet outside of Military and Food/Drug/Mass
MILITARY SHOPPERS % ALL OUTLET FOOD & BEV LOYALTY
MID YEAR 2006
41.1%1.4%
3.0%
12.6%
1.0%
6.4%
0.8%
8.5%
25.2%MILITARY
GROCERY
DRUG
MASS MERCH
SUPERCENTERS
CLUB
CONV/GAS
DOLLAR
ALL OTHER
Source: ACNielsen Homescan
Pt Chg vs MY
05
-1.2
-1.4
-0.1
-0.1
+0.7
+0.3
+0.2
-0.1
+1.7
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Roughly 40% of Military shoppers shop Military on a monthly basis for their Food, HBC or Gen Merch; thus driving lower share of wallet
Source: ACNielsen Homescan
Confidential & Proprietary Copyright © 2007 The Nielsen Company
MILITARY SHOPPERS PENETRATION (% of Military HHs Purchasing in...)
100.0 98.0
81.990.7
62.3 60.3
49.5
72.1
58.049.7
69.569.6
86.380.4
97.9100.0
MILITARY GROCERY DRUG MASSMERCH
SUPERS CLUB CONV/GAS DOLLAR
Mid Year 2005 Mid Year 2006
Source: ACNielsen Homescan Total US
More Military households are shopping in Supers this year
Confidential & Proprietary Copyright © 2007 The Nielsen Company
All Channels were able to grow or maintain Buying Rate, with the exception of Grocery & traditional Mass Merch Discount
BUYING RATE(UPC Dollars Per Household)
$1,768
$262
$737$832
$153 $141
$903
$182 $143
$1,398$1,275
$1,429
$693
$265
$1,753
$1,306
MILITARY GROCERY DRUG MASSMERCH
SUPERS CLUB CONV/GAS DOLLAR
Mid Year 2005 Mid Year 2006
Source: ACNielsen Homescan Total US
Both Supers & Club were able to bring in more households
and increase the average $ per buyer at the same time
Confidential & Proprietary Copyright © 2007 The Nielsen Company
MILITARY SHOPPERSBUYING RATE
$1,165
$209
$710$811
$159 $139
$912
$208$125
$1,409
$1,275$1,375
$672
$218
$1,197
$1,306
MILITARY GROCERY DRUG MASS MERCH SUPERS CLUB CONV/GAS DOLLAR
Mid Year 2005 Mid Year 2006
Source: ACNielsen Homescan Total US
Outside of the Military channel, Military shoppers have increased their per household spending in Grocery, Drug,
Club, and Convenience
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Frequency is declining in all channels
FREQUENCY(Average Trips Per Household)
68.3
15.219.4
10.914.5 13.5
10.914.5 12.4
27.023.6
25.6
16.714.0
61.5
21.4
MILITARY GROCERY DRUG MASSMERCH
SUPERS CLUB CONV/GAS DOLLAR
Mid Year 2005 Mid Year 2006
Source: ACNielsen Homescan
Confidential & Proprietary Copyright © 2007 The Nielsen Company
MILITARY SHOPPERSFREQUENCY
55.8
13.418.2
11.415.0
12.411.015.2
10.6
30.3
23.626.9
15.812.1
51.2
21.4
MILITARY GROCERY DRUG MASSMERCH
SUPERS CLUB CONV/GAS DOLLAR
Mid Year 2005 Mid Year 2006
Source: ACNielsen Homescan
Military shoppers have also decreased frequency everywhere, only Conv/Gas was able
to maintain trips per shopper
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Military households are stocking up more and making less trips
MILITARY SHOPPERSBASKET SIZE
$70.90
$10.60 $11.20$11.80
$20.90
$38.90
$15.70
$46.50
$54.00
$13.70
$83.20
$51.10
$42.50
$18.00$23.40
$61.00
MILITARY GROCERY DRUG MASSMERCH
SUPERS CLUB CONV/GAS DOLLAR
Mid Year 2005 Mid Year 2006
Source: ACNielsen Homescan
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Grocery loyalty driven by convenience trips
Military Shoppers % of channel dollars by trip type
9
13
19
29
41
62
68
70
21
21
26
27
28
17
19
34
32
30
26
21
10
11
37
34
24
18
10
3
5
1
26 9
Warehouse Clubs
Military
Supercenters
Mass Merch
Grocery
Drug
C-Stores
$ Stores
Immediate Fill In Routine Stock-up
Total US—ACNielsen Homescan Shopper Missions, 52wk end 7/2/05
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Military Shoppers have decreased Buying Rate in most major Grocery chains
Dollars Per Military Shpr$1,275
$1,450
$288
$129
$750
$146
$583
$392
$1,035
$400
$441
$932
$1,306
$1,388
$309
$129
$652
$161
$648
$364
$433
$1,161
$516
$436
$682
$907
MILITARY
TARGET-TOTAL
WAL-MART-DIV 1
SAM'S
HANNAFORD-
KROGER
BJ'S
Mid Year2005
Mid Year2006
Source: ACNielsen Homescan
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Bigger basket sizes driving overall annual spending per household
Trips Per Military Shpr23.6
36.7
30.7
21.1
16.1
19.6
16.8
11.7
8.8
8.5
7.3
5.0
21.4
35.4
26.9
19.3
18.1
17.8
17.7
13.8
11.7
9.5
8.6
7.3
7.3
4.9
MILITARY
H-E-B
WAL-MART-SUPER
KROGER
HANNAFORD-CORP
SAFEWAY-CORP
FOOD LION
WAL-MART-DIV 1
COSTCO
BJ'S
SAM'S
WALGREENS
TARGET-TOTAL
KMART-TOTAL
Mid Year 2005
Mid Year 2006
Military Shprs Dollars Per Trip$54
$25
$47
$19
$24
$23
$45
$88
$66
$15
$39
$29
$61
$26
$52
$27
$24
$21
$25
$47
$100
$72
$75
$18
$43
$33
MILITARY
H-E-B
WAL-MART-SUPER
KROGER
HANNAFORD-CORP
SAFEWAY-CORP
FOOD LION
WAL-MART-DIV 1
COSTCO
BJ'S
SAM'S
WALGREENS
TARGET-TOTAL
KMART-TOTAL
Source: ACNielsen Homescan
Confidential & Proprietary Copyright © 2007 The Nielsen Company
MILITARY CHANNELBUYER CONVERSION
46.5
66.9
43.3
63.6
71.7
42.4
65.8 67.2
54.6
47.3
57.350.6
79.9
69.3
48.253.6
45.8
60.156.0
79.8
DRYGROCERY
FROZEN DAIRY DELI MEAT FRESHPRODUCE
NON-FOOD ALCOHOLICBEV
GENERALMERCH
HEALTH &BEAUTY
Mid Year 2005 Mid Year 2006
Source: ACNielsen Homescan
Dry Grocery and Non-Food are the most highly converted departments in Military
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Where do Military Shoppers go for Dry Grocery?
% of Military Shopper's Dry Grocery All-Outlet Spending
3.4 3.12.1
2.9 2.81.2 0.7
12.9
3.8 3.3 3.0 2.9 2.6 2.5 2.4 1.7 1.3 0.7 0.5
12.1
26.6
2.41.6
0.6
25.4
0.7
MIL
ITARY
WAL-M
ART-SUPER
SAM
'S
COSTCO
KROGER
HANNAFO
RD-CORP
SAFEW
AY-CORP
WAL-M
ART-DIV
1
FOOD L
ION
H-E
-B
TARGET-
TOTAL
BJ'S
WALGREENS
KM
ART-TOTA
L
Mid Year 2005Mid Year 2006
Source: ACNielsen Homescan
+0.8
Military Shoppers spend 25.4% of their Dry Grocery wallet
In Military; down 1.2 pts
+0.9
Confidential & Proprietary Copyright © 2007 The Nielsen Company
What categories are Military Shoppers purchasing in other channels?
GROCERY DRUG MASSPASTA CANDY BABY FOODCARBONATED BEVERAGES GUM CANDYFLOUR NUTS GUMPICKLES, OLIVES, AND RELISH CARBONATED BEVERAGES PET FOODFRUIT - CANNED TEA SNACKSVEGETABLES AND GRAINS - DRIED SEAFOOD - CANNED COOKIESCONDIMENTS, GRAVIES, AND SAUCES COFFEE CARBONATED BEVERAGESBREAD AND BAKED GOODS SNACKS BREAKFAST FOODSOUP COOKIES CRACKERSVEGETABLES - CANNED FRUIT - CANNED SOFT DRINKS-NON-CARBONATED
SUPERS CLUB DOLLARPET FOOD GUM CANDYPACKAGED MILK AND MODIFIERS FRUIT - DRIED GUMGUM NUTS SEAFOOD - CANNEDSOFT DRINKS-NON-CARBONATED SUGAR, SWEETENERS COOKIESBREAD AND BAKED GOODS SHORTENING, OIL SNACKSCANDY COFFEE BAKING MIXESBREAKFAST FOOD BREAKFAST FOOD FRUIT - CANNEDSUGAR, SWEETENERS SEAFOOD - CANNED NUTSSNACKS PACKAGED MILK AND MODIFIERS PREPARED FOOD-READY-TO-SERVEFLOUR SPICES, SEASONING, EXTRACTS PET FOOD
Top 10 Dry Grocery categories purchased by Military Shoppers at…
*Top 10 based on Share of WalletSource: ACNielsen Homescan, Mid Year 2006
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Where do Military Shoppers go for Frozen?
% of Military Shopper's Frozen All-Outlet Spending
0.2 0.6 0.1 0.1
4.25.1
1.0
11.5
0.3 0.6 0.1
5.1
0.0
3.9 4.1
7.4 8.1
0.9 1.7
12.1
4.6
25.1
4.1 4.46.0
1.9
22.5
7.8
MIL
ITARY
WAL-M
ART SUPERS
TARGET TOTA
L
WAL-M
ART
WALGREENS
SAMS
KMART
SAFEWAY C
ORP
COSTCO
KROGER CORP
HANNAFORD C
ORP
FOOD LIO
NBJS
HEB CORP
Mid Year 2005Mid Year 2006
Source: ACNielsen Homescan
-2.6
Military Shoppers spend 22.5% of their Frozen wallet
In Military; down 2.6 pts
+3.0
Confidential & Proprietary Copyright © 2007 The Nielsen Company
What categories are Military Shoppers purchasing in other channels?
*Top 10 based on Share of WalletSource: ACNielsen Homescan, Mid Year 2006
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Where do Military Shoppers go for Dairy?
% of Military Shopper's Dairy All-Outlet Spending
0.3 0.8 0.5 0.1
3.8 3.3
0.7
12.2
0.4 1.0 0.3
2.9
0.1
4.0 3.6
7.8
4.3
0.62.6
12.9
2.5
24.0
2.6 3.2
6.7
2.3
24.4
3.9
MIL
ITARY
WAL-M
ART SUPERS
TARGET TOTA
L
WAL-M
ART
WALGREENS
SAMS
KMART
SAFEWAY C
ORP
COSTCO
KROGER CORP
HANNAFORD C
ORP
FOOD LIO
NBJS
HEB CORP
Mid Year 2005Mid Year 2006
Source: ACNielsen Homescan
+0.4
Military Shoppers spend 24.4% of their Dairy wallet
In Military; up 0.4 pts
+1.3
Confidential & Proprietary Copyright © 2007 The Nielsen Company
What categories are Military Shoppers purchasing in other channels?
*Top 10 based on Share of WalletSource: ACNielsen Homescan, Mid Year 2006
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Where do Military Shoppers go for Non-Food?
% of Military Shopper's Non-Food All-Outlet Spending
2.2
5.4
1.0 1.3 1.4 1.4 1.1
12.8
2.1
6.6
1.0
5.1
1.1 1.0
3.8 3.32.2
0.8 1.1
11.8
0.9
31.2
4.3 4.2
1.90.8
30.3
2.1
MIL
ITARY
WAL-M
ART SUPERS
TARGET TOTA
L
WAL-M
ART
WALGREENS
SAMS
KMART
SAFEWAY C
ORP
COSTCO
KROGER CORP
HANNAFORD C
ORP
FOOD LIO
NBJS
HEB CORP
Mid Year 2005Mid Year 2006
Source: ACNielsen Homescan
-0.9
Military Shoppers spend 30.3% of their Non-Food wallet
In Military; down -0.9 pts
+1.2
Confidential & Proprietary Copyright © 2007 The Nielsen Company
What categories are Military Shoppers purchasing in other channels?
*Top 10 based on Share of WalletSource: ACNielsen Homescan, Mid Year 2006
Confidential & Proprietary Copyright © 2007 The Nielsen Company
Where do Military Shoppers go for HBA?
% of Military Shopper's HBA All-Outlet Spending
3.6
8.8
5.2
1.7 1.1 0.7 0.9
19.8
4.2
8.3
5.9
3.31.9
1.0
3.62.5
1.3 0.7 1.2
17.0
0.5
20.5
2.84.4
2.01.0
20.1
1.2
MIL
ITARY
WAL-M
ART SUPERS
TARGET TOTA
L
WAL-M
ART
WALGREENS
SAMS
KMART
SAFEWAY C
ORP
COSTCO
KROGER CORP
HANNAFORD C
ORP
FOOD LIO
NBJS
HEB CORP
Mid Year 2005Mid Year 2006
Source: ACNielsen Homescan
-0.4
Military Shoppers spend 20.1% of their HBA
wallet In Military; down -0.4 pts
+0.5
+2.8
-0.5
Confidential & Proprietary Copyright © 2007 The Nielsen Company
What categories are Military Shoppers purchasing in other channels?
*Top 10 based on Share of WalletSource: ACNielsen Homescan, Mid Year 2006
Confidential & Proprietary Copyright © 2007 The Nielsen Company
In order to grow your business, you need to understand the Composition of Sales Volume
Household PenetrationH ow M any Peop le Buy
Purchase FrequencyH ow O ften They Buy
Purchase SizeH ow M uch They Spend Per Trip
Buying RateH ow M uch They Spend Per Year
Total Sales Volume
All sales volume can be broken down into these basic components
We need to increase at least one of these factors to grow sales