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  • Relevancy through Data Driven Insight

    The Science of Key Consumer Segments

  • 22 dunnhumby 2014 | Confidential

    Customer Science

    NationallyMarketing Decisions

    Media Innovation

    Customer ScienceBzzAgent Platform

    Sustainable brand growth

    our Brand Consulting Team brings an entirely unique approach to the most important marketing decisions

  • 33 dunnhumby 2014 | Confidential

    with consumer-based insights

    WHY THIS MATTERS

    THE SCIENCE BEHIND SEGMENTS

    BRINGING IT TO LIFE

  • 44 dunnhumby 2014 | Confidential

    WHY THIS MATTERS

  • 55 dunnhumby 2014 | Confidential

    New in Technology

    Topping the Charts

    JOHN D. LOUTHThe changing face of marketing

    McKinsey Quarterly, 1966

    It is a gross error to develop a marketing program aimed at the average customer. Today, such a consumer hardly exists. In short, the company that is not alert to the customers needs and the changing complexities of marketplaces is inviting disaster.

    Top TV Show

    the year is 1966 Time Person of the Year

  • 66 dunnhumby 2014 | Confidential

    JOHN D. LOUTHThe changing face of marketing

    McKinsey Quarterly, 1966

    It is a gross error to develop a marketing program aimed at the average customer. Today, such a consumer hardly exists. In short, the company that is not alert to the customers needs and the changing complexities of marketplaces is inviting disaster.

    Time Person of the Year: The

    Generation 25 & Under --- Baby

    Boomers

    the year is NOW

    New in Technology

    Topping the Charts

    Top TV Show

    Time Cover Feature

  • 77 dunnhumby 2014 | Confidential

    17%

    13%

    5%

    while the concept is not new, the paradigms continue to shift

    29%

    15%8%

    2015 Projections 2060 Projections

    US Census Projections

    our population is changing and the majority is shifting

    12%

    1965 Actuals

  • 88 dunnhumby 2014 | Confidential

    Millennials want more involvement in meal preparation; FastCasual.com

    MAY 2014

    Millennials and Hispanics will be the driving force behind America's eating behaviors in the next five years

    THE END OF MAINSTREAM

  • 99 dunnhumby 2014 | Confidential

    THE SCIENCE BEHIND SEGMENTS

    MILLENNIALS

  • 1010 dunnhumby 2014 | Confidential

    MILLENIALSthe world is click away, so is the competition

    While estimates vary, Millennials are believed to have $200 billion of direct purchasing power and $500 billion of indirect spending

    IN-STORE TRENDS

    Visit the store more frequently but have smaller baskets

    Strongest dollar growth per household year over year

    US Chamber of Commerce Foundation

  • 1111 dunnhumby 2014 | Confidential

    Millennial shoppers still have strong center store engagement

    Traditional, center store categories still have strong engagement with Millennial shoppers:

    Breakfast

    Dinner Mixes and Sides

    Condiments and Sauces

  • 1212 dunnhumby 2014 | Confidential

    Millennials will comprise more than one in three of adult Americans by 2020

    Brookings Institute

  • 1313 dunnhumby 2014 | Confidential

    inside the head of a Millennial Momideals and aspirations meet the reality of budget constraints and varied household needs

    THE IDEAL THE REALITY

    I value organic offerings for myself and my kids.

  • 1414 dunnhumby 2014 | Confidential

    true, connected insight emerges at the intersection of consumer psychology & behavioral science

    A FEEL THINK DO framework enables going beyond attitudes and perceptions to

    understand how that translates into behavior

    This focus on gaining a 360 view of the consumer enables development of tailored

    strategies and relevant activation

    FEEL

    THINK

    DO

  • 1515 dunnhumby 2014 | Confidential

    Millennials perceptions of their choices compared to their behavior enhance and challenge established beliefs

    BELIEF

    DINNER MIXES AND SIDES

    Branded processed food manufacturers will be losers in the new food paradigm

    Forbes; How 'Millennials' Are Changing Food as We Know It

  • 1616 dunnhumby 2014 | Confidential

    Millennials perceptions of their choices compared to their behavior enhance and challenge established beliefs

    BELIEF

    DINNER MIXES AND SIDES +17%

    Branded processed food manufacturers will be losers in the new food paradigm

    REALITY Millennials spend 17% more per household than all shoppers with 14% of baskets containing a dinner mixes and sides item

    Forbes; How 'Millennials' Are Changing Food as We Know It

  • 1717 dunnhumby 2014 | Confidential

    Millennials perceptions of their choices compared to their behavior enhance and challenge established beliefs

    Hartman Research

    BELIEF

    NATURAL FOODS

    Millennials believe they consume healthier, more expensive, more natural/organic, less processed and better tasting foods than their parents

  • 1818 dunnhumby 2014 | Confidential

    Millennials perceptions of their choices compared to their behavior enhance and challenge established beliefs

    BELIEF

    NATURAL FOODS +13%

    ITS TRUEBUT

    Millennial shoppers have higher spend within Natural Foods than all shoppers

    However, 65% of Millennials have zero to limited engagement with Natural Foods

    Millennials believe they consume healthier, more expensive, more natural/organic, less processed and better tasting foods than their parents

    Hartman Research

  • 1919 dunnhumby 2014 | Confidential

    this relationship between perception and behavior also extends into growth trends in store

    GROWTH RATES

  • 2020 dunnhumby 2014 | Confidential

    this relationship between perception and behavior also extends into growth trends in store

    BELIEF

    CANNED GOODS

    Time-tested package designs like cans, jars and bottles do not jive with the Millennial lifestyle and this generations unique attitudes towards food, health, and the environment

    Brand Amplitude; Millennials Increasingly Judge Food by its Cover

  • 2121 dunnhumby 2014 | Confidential

    this relationship between perception and behavior also extends into growth trends in store

    BELIEF

    CANNED GOODS

    REALITY Canned Goods are experiencing stronger growth rates than the rest of shoppers; Millennials offset unit per trip declines with increased visit frequency

    163 INDEX

    Time-tested package designs like cans, jars and bottles do not jive with the Millennial lifestyle and this generations unique attitudes towards food, health, and the environment

    Brand Amplitude; Millennials Increasingly Judge Food by its Cover

  • 2222 dunnhumby 2014 | Confidential

    this relationship between perception and behavior also extends into growth trends in store

    BELIEF

    FROZEN FOODS

    Millennials are seeking value and convenience in their food, but they increasingly opt for fresher and healthier food

    Food Processing; Frozen Food Sales' Decline Paves the Way for Fresh Food Innovation

  • 2323 dunnhumby 2014 | Confidential

    this relationship between perception and behavior also extends into growth trends in store

    BELIEF

    FROZEN FOODS

    Millennials are seeking value and convenience in their food, but they increasingly opt for fresher and healthier food

    Food Processing; Frozen Food Sales' Decline Paves the Way for Fresh Food Innovation

    ITS TRUE Frozen Foods are declining faster with Millennials than the broader segment, especially among African American Millennials

    115 INDEX

  • 2424 dunnhumby 2014 | Confidential

    IMPLICATIONthose that balance aspiration and reality will win

    There is not a center store exodus.

    Are you positioning your brands to meet Millennial needs?

    Packaging alone is not causing migration.

    How are you appealing to the experience seeking, health aware Millennial?

    There is a constant struggle between fresh and convenient.

    Where does your brand fall?

    CONNECTED SHOPPERS SEEKING FRESHNESSMillennials believe they consume healthier, more expensive, more natural/organic, less processed and better tasting foods and brands than their parents

    The Hartman Group

  • 2525 dunnhumby 2014 | Confidential

    THE SCIENCE BEHIND SEGMENTS

    HISPANICS

  • 2626 dunnhumby 2014 | Confidential

    HISPANIC CONSUMERScelebrate nuances - with true authenticity

    Hispanic consumers in the US were estimated at a $1.2 trillion market in 2013 a figure higher than the entire economy of Turkey

    IN-STORE TRENDS

    While dollars per visit is lower than total population, Hispanics do have stronger per trip growth

    As acculturation increases, so does the size of Hispanics baskets

    Selig Foundation; Multicultural Economy ReportHispanic Retail 360; Liz Sanderson VP at Univision

  • 2727 dunnhumby 2014 | Confidential

    Hispanic shoppers lack strong engagement in traditional, center store categories

    With the exception of produce, fresh, perimeter items have a stronger engagement across Hispanic shoppers:

    Dairy

    Meat and Seafood

    Bakery

  • 2828 dunnhumby 2014 | ConfidentialAdAge US Hispanic Population is Growing, but this isnt your Abuelas Latino Community

    Limited marketing has been directed

    toward the evolved Latino

    mindset

  • 2929 dunnhumby 2014 | Confidential29

    THE SCIENCE OF MAR