Todd HaleSVP, Consumer & Shopper InsightsMay 3, 2013
U.S. CONSUMER TRENDS
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TABLE OF CONTENTS
• Demographic Trends (3)
• Generational (6)
• The Growth Majority (21)
• Convenient Consumer Solutions (51)
• Health & Wellness (85)
• Sustainability (109)
• Media Trends (114)
• Summary & Closing Thoughts (132)
DEMOGRAPHIC TRENDS
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CHANGING FACE OF THE AMERICAN CONSUMER
Urbanization &Industrialization
foster …
Decliningbirth
rates …
UnevenPopulation
Growth
OlderConsumers
withNew Needs
Changes inPer HH
Spending
Immigration& Growthin EthnicFamilies
Declining %of HHs with
Children
With important implications on the future …
Which leadto an agingpopulation
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“RECESSION BIG FACTOR AS BIRTHRATE FALLS”
Source: The Wall Street Journal & Pew Research Center
The annual number of births per 1,000 women ages 15 to 44 dropped 8% in the U.S. from 2007 to 2010… Yet the rate for foreign-born women dropped 14%... compared with a 6% decline for U.S.-born women
The Wall Street Journal, Nov. 29, 2012
GENERATIONAL TRENDS
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7Source: USA TODAY (Feb. 4, 2013)
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170 157
135 113
Shopping Trips Per Household
OLDER MORE TRIPS; YOUNGER BIGGER BASKETSTotal Retail Channels
$6,156 $7,223 $7,194
$6,060
Basket Ring $ Per Household
Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, excludes gas only or Rx only trips; *UPC-coded products
$36 $46
$53 $54
Basket Ring $ Per Trip
26%25%
27%31%
% Dollars on Deal*
MillennialsGen XBoomersGreatest Gen
Millennials more deal prone
MillennialsGen XBoomersGreatest Gen
MillennialsGen XBoomersGreatest Gen
MillennialsGen XBoomersGreatest Gen
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Except in mass, younger make fewer trips
Warehouse Clubs
Mass Merchandisers
Convenience/Gas
Dollar Stores
Drug Stores
Supercenters
Grocery Stores
12
12
15
15
16
26
67
13
12
15
15
14
25
59
11
12
12
12
13
23
51
9
12
7
9
13
20
43
Greatest GenBoomersGen XMillennials
TRIP CAPTURE AMONG YOUNGER IS PARAMOUNTShopping Trips Per Household
Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips
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What categories & brands are best at filling the baskets of younger generations
Dollar Stores
Convenience/Gas
Drug Stores
Grocery Stores
Mass Merchandisers
Supercenters
Warehouse Clubs
$13
$18
$24
$34
$38
$51
$86
$15
$23
$26
$43
$47
$61
$99
$17
$21
$28
$51
$54
$71
$107
$17
$22
$27
$52
$54
$68
$106
Greatest GenBoomersGen XMillennials
YOUNG OFFSET LESS TRIPS WITH > TRIP SPENDBasket Ring $ Per Trip
Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips
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But Walmart still captures more trips
Kmart
Target
Walmart Banner
5
7
25
5
8
25
4
10
22
3
11
19
TARGET HAS > RELATIVE APPEAL AMONG YOUNGERShopping Trips Per Household
Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips
Kmart
Target
Walmart Banner
$37
$40
$50
$46
$51
$60
$47
$59
$70
$51
$57
$67
Greatest Gen Boomers Gen X Millennials
Total Basket Ring $ Per Trip
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More Target trips from affluent
Kmart
Target
Walmart Banner
5
7
25
4
7
27
4
9
25
5
8
25
4
10
23
4
10
21
4
10
18
> WALMART TRIPS AMONG LOWER INCOMEShopping Trips Per Household
Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips
Kmart
Target
Walmart Banner
$40
$43
$53
$42
$42
$58
$45
$47
$61
$44
$48
$62
$46
$53
$63
$47
$57
$66
$54
$64
$68
< $20k $20-29.9k $30-39.9k $40-49.9k $50-69.9k $70-99.9k $100k +
Total Basket Ring $ Per Trip
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Greatest Gen Boomers Gen X Millennials
Baby Food 38 48 89 119
Carbonated Beverages
93 131 127 104
Cereal 63 70 86 88
Detergents 46 52 57 47
Hair Care 28 39 49 40
Ice Cream 42 39 35 28
Pet Food 215 233 173 120
Vitamins 132 104 82 69
Wine 129 125 100 63
GENERATIONAL STORE MIX IS PARAMOUNTWhere is your category or brand driving sales?
Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, UPC-coded products
How can manufacturers & retailers collaborate on generational store sets?
Annual $ Per Household Among Category Buyers
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Boomer CPG $ Spend Ad Dollars Aimed at 50+ Years
50% 10-15%
THE DIVIDE
Source: TV Board & Nielsen
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16 out of 25
BOOMERS DRIVE THE TOP TV SHOWS
Source: Nielsen
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REDEFINING SENIOR AUDIENCE & FOCUS
Source: AARP, Walgreens, Kroger, Fry’s, Harris Teeter
If you're 55+, you can save an additional 10% on your food bill (less V.I.P savings, taxes, and coupons) the first Wednesday of every month.
Kroger: Seniors receive a 10% discount OFF of your total
purchases on the first Wednesday of every month. All Seniors, 60
years and older are eligible! (southern Illinois, southern Indiana, select KY & Nashville, TN area stores
Only!)
AARP: Get a Donut with purchase of a
L or XL Hot Coffee
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GROCERY CALL-IN SERVICE FOR ELDERLY & DISABLED
Source: Roche Bros.
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HEALTH & BEAUTY CARE SENIOR FOCUS
Sources: MultiAd Kwikee & company websites
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SMALLER PORTION SIZES, BUT WHAT ELSE?
Source: MultiAd Kwikee
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GRANDPARENTS MULTIPLIER EFFECTU.S. Grandparent population will grow by 11% from 69.6 million in 2010 to 77.1 million by 2015
Source: http://www.grandparents.com/grandparent-economy
THE GROWTH MAJORITY
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22Source: Associated Press
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2000 2010 2020 2030 2040 2050
13% 16% 19% 23% 27% 30%13% 14% 14% 14%
15% 15%4%
5%6% 7%
8%9%
70% 65% 60% 60% 51% 46%
Hispanic BlackAsian White Non-Hispanic
ETHNIC WILL BE MAJORITY BY 2050 Distribution of the U.S. Population
Source: U.S. Census
35%
54%
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Total Under 12 12-17 18-34 35-54 55+
15% 22% 18% 19% 13% 7%
13%16% 17% 14%
12%9%
5%
5% 5% 6%5%
4%
68%56% 60% 60%
68%79%
Hispanic BlackAsian White Non-Hispanic
WHITE NON-HISPANIC SKEWS MUCH OLDERU.S. Population Age by Ethnicity
Source: U.S. Census
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'90 '00 '10 '90 '00 '10 '90 '00 '10
71%63%
57%
82%77%
73%
86%82% 80%
MULTICULTURAL BEHIND GROWTH IN LARGE METROS% U.S. White Population
Source: State of Metropolitan America - Brookings
Large metros Small metros Non-metro areas
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'90 '00 '10 '90 '00 '10 '90 '00 '10
71%63%
57%
82%77%
73%
86%82% 80%
FACTOIDS TO DRIVE MULTICULTURAL ENGAGEMENTS% U.S. White Population
Source: State of Metropolitan America - Brookings
Large metros Small metros Non-metro areas
“42 of 100 largest metros lost white
population & 22 are “majority minority”
populations”
“Nearly half of Hispanics live in just 10 large metros, but those accounted for only 36% of Hispanic
growth”
“Asians even more concentrated with 1/3rd
living in just three metros: Los Angeles,
New York, & San Francisco”
“Atlanta, Dallas & Houston led all metros
in Black population gains, while populations
dropped in New York, Chicago & Detroit”
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FASTEST GROWTH IN DIVERSE SUBURBS“Residents of suburbs in the 50 largest U.S. metropolitan areas who live in diverse areas – where the population is 20% to 60% non-white – outnumber those who don’t.”
Diverse suburbs
Predominantly non-white suburbs
Predominantly white suburbs
52.7
20.1
30.2
2010 Population (in millions)
Source: Myron Orfield and Thomas Luce, Institute on Metropolitan Opportunity at the Univ. of Minnesota Law School
% change 2000–2010
+31%
+72%
-23%
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HISPANIC BUYING POWER
Source: Selig Center for Economic Growth, University of Georgia, Athens
Hispanic consumer market in the U.S. is larger than the entire economies of all but 13 countries in the world
UGA Selig Center Multicultural Economy study, May 1, 2012
1990 2000 2010 2012 2015 2017
$1.7 trillion
$1.5 trillion
$1.2 trillion
$1.0 trillion
$488 billion
$210 billion
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145
140
143
Shopping Trips Per Household
FEWER HISPANIC TRIPS, BUT BIGGER SPENDTotal Retail Channels
$6,824
$7,032
$7,388
Basket Ring $ Per Household
$47
$50
$52
Basket Ring $ Per Trip
27%
28%
26%
% Dollars on Deal*
Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, excludes gas only or Rx only trips; *UPC-coded products
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148
154
Shopping Trips Per Household
BLACKS SHOP OFTEN; SPEND LESS & LESS DEALSTotal Retail Channels
$6,839
$5,954
Basket Ring $ Per Household
$46
$39
Basket Ring $ Per Trip
28%
22%
% Dollars on Deal*
Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, excludes gas only or Rx only trips; *UPC-coded products
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145
149
Shopping Trips Per Household
ASIANS SHOP OFTEN, SPEND LESS & INTO DEALSTotal Retail Channels
$6,824
$6,759
Basket Ring $ Per Household
$47
$45
Basket Ring $ Per Trip
27%
34%
% Dollars on Deal*
Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, excludes gas only or Rx only trips; *UPC-coded products
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Warehouse Clubs
Mass Merchandisers
Convenience/Gas
Dollar Stores
Drug Stores
Supercenters
Grocery Stores
14
13
10
14
14
20
55
12
13
13
12
14
24
50
12
12
13
12
13
25
56
Hispanic-Spanish PreferredHispanic-English PreferredWhite Non-Hispanic
ENGLISH-PREFERRED W/LIKE TRIPS AS WHITE POPShopping Trips Per Household
Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, excludes gas only or Rx only trips
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Dollar Stores
Convenience/Gas
Drug Stores
Grocery Stores
Mass Merchandisers
Supercenters
Warehouse Clubs
$16
$31
$26
$47
$51
$62
$107
$15
$24
$29
$47
$52
$67
$101
$16
$22
$26
$45
$49
$64
$100
Hispanic-Spanish Preferred
Hispanic-English Preferred
White Non-Hispanic
HISPANICS OFFSET LESS TRIPS WITH BIG BASKETS Basket Ring $ Per Trip
Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips
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Are > small formats trips a preference or a function of format availability?
Warehouse Clubs
Mass Merchandisers
Convenience/Gas
Dollar Stores
Drug Stores
Supercenters
Grocery Stores
9
10
15
20
15
23
53
12
12
12
12
14
24
58
African American
Non-African American
AFRICAN AMERICAN SMALL FORMAT PREFERENCEShopping Trips Per Household
Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, excludes gas only or Rx only trips
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Dollar Stores
Convenience/Gas
Drug Stores
Grocery Stores
Mass Merchandisers
Supercenters
Warehouse Clubs
$15
$22
$23
$37
$44
$54
$84
$15
$22
$26
$44
$48
$63
$98
African American
Non-African American
AFRICAN AMERICANS SPEND LESS PER TRIPBasket Ring $ Per Trip
Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips
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Asians more frequent shoppers in drug, mass & club
Warehouse Clubs
Mass Merchandisers
Convenience/Gas
Dollar Stores
Drug Stores
Supercenters
Grocery Stores
16
15
8
9
16
18
57
12
12
13
12
13
25
56
AsianWhite Non-Hispanic
ASIAN CHANNEL-SPECIFIC PREFERENCESShopping Trips Per Household
Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, excludes gas only or Rx only trips
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Dollar Stores
Convenience/Gas
Drug Stores
Grocery Stores
Mass Merchandisers
Supercenters
Warehouse Clubs
$14
$25
$23
$35
$44
$54
$95
$16
$22
$26
$45
$49
$64
$100
Asian
White Non-Hispanic
ASIANS SPEND LESS PER TRIP IN MOST CHANNELSBasket Ring $ Per Trip
Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips
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Target has greater relative appeal among Asians
Kmart
Target
Walmart Banner
4
9
24
4
10
21
4
7
22
3
13
15
WALMART DRIVES MORE TRIPS & BIGGER BASKETSShopping Trips Per Household
Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips
Kmart
Target
Walmart Banner
$43
$54
$63
$50
$55
$63
$47
$47
$53
$41
$49
$49
White Non-Hispanic (any race) Hispanic African American Asian
Total Basket Ring $ Per Trip
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Edibles Non-Edibles
Vegetables & Grains – Dry 230 Men’s Toiletries 175
Baby Food 171 Fragrances – Women 160
Shortening/Oil 145 Children’s Cologne 153
Juices/Drinks – Shelf Stable 131 Hair Care 149
Prepared Foods-Dry Mixes 129 Disposable Diapers 142
Eggs-Fresh 129 Baby Needs 134
Juices & Drinks-Refrig 129 Sanitary Protection 129
Pkg’d Milks & Modifiers 128 Cosmetics 129
Bottled Water 125 Grooming Aids 128
Gum 122 Personal Soap & Bath Needs 127
> SPEND ON FOODSTUFFS, BEAUTY CARE & BABIESHispanic Dollar Index
Source: Nielsen Homescan, 52 Weeks Ending 12/29/2012, UPC-coded; Purchase index: share of Hispanic $ sales divided by U.S. household $ share X 100
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English-preferred households spend more on general population categories
Pizza/Snacks-FrozenWine
Pet FoodCharcoal/Logs/Accessories
Diet AidsAll Nielsen Categories
Prepared Foods - Dry MixesMen's Toiletries
Baby FoodShortening/Oil
Vegetables & Grains-Dry
42474750535355
616567
73
58535350474745
393533
27
Spanish-Preferred Households English-Preferred Households
LANGUAGE PREFERENCE TIED TO CATEGORY SPENDShare of Hispanic dollars by preferred language
Source: Nielsen Homescan, 52 Weeks Ending 12/29/2012, UPC-coded products
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Edibles Non-Edibles
Unprep Meat/Seafood-Frz 170 Ethnic HABA 934
Vegetables & Grains-Dry 158 Feminine Hygiene 185
Juices & Drinks-Refrig 157 Fresheners/Deodorizers 174
Spices/Seasonings/Extract 154 Personal Soap/Bath Needs 164
Shortening/Oil 154 Fragrances – Women 153
Juices/Drinks – Shelf Stable 153 Family Planning 142
Sugar/Sugar Substitutes 145 Children’s Cologne 140
Gum 136 Sanitary Protection 133
Fresh Meat (UPC) 136 Insecticides Repellents 131
Soft Drinks-Non Carb 136 Detergents 129
> SPEND ON BASIC FOODS, PERSONAL & BEAUTYAfrican American Dollar Index
Source: Nielsen Homescan, 52 Weeks Ending 12/29/2012, UPC-coded; Purchase index: share of African American $ sales divided by U.S. household $ share X 100
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Edibles Non-Edibles
Vegetables & Grains –Dry 278 Baby Needs 268
Baby Food 176 Film & Cameras 213
Juices & Drinks-Refrig 150 Skin Care Preparations 212
Meal Starters-Shelf Stable 136 Family Planning 211
Nuts 134 Disposable Diapers 178
Yogurt 131 Sanitary Protection 161
Fresh Produce (UPC) 131 Oral Hygiene 150
Pasta 131 Hair Care 137
Bottled Water 128 Vitamins 137
Fruit-Dried 126 Kitchen Gadgets 136
> SPEND ON FOOD, BABY, PERSONAL & BEAUTYAsian Dollar Index
Source: Nielsen Homescan, 52 Weeks Ending 12/29/2012, UPC-coded; Purchase index: share of Asian $ sales divided by U.S. household $ share X 100
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APPEALING TO DIVERSE TASTES
Source: Dominick’s
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BILINGUAL DÉCOR, MADE-TO-ORDER CUBAN CAFÉ
Source: Winn-Dixie
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CATERING TO NEIGHBORHOOD DEMOGRAPHICS
Source: Pathmark, Progressive Grocer & NJ.com
Our remodeled Weehawken store…offers shoppers products that match their needs and cultural preferences…With more diverse offerings and a friendlier, more modern atmosphere, this renovation is a prime example of our goal to enhance our customers’ shopping experience.
Progressive Grocer, Mar. 16, 2012
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CONNECTING THRU HISPANIC HERITAGE MONTH
Source: Macy’s
In honor of Hispanic Heritage Month, Macy’s partners with Vanidades magazine to honor Rock and Roll Hall of Famer Carlos Santana as Macy’s 2012 Icon of Style
Macy’s
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MANUFACTURER HISPANIC WEBSITES & APPS
Source: Company websites
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P&G’S GAIN EXPANDING TO REACH HISPANICS
Source: P&G Gain
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ETHNIC DIVERSITY IMPACTS GENERAL POPULATION
Source: MultiAd Kwikee
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BILINGUAL PACKAGING – WHAT ABOUT ADS?
Source: MultiAd Kwikee
CONVENIENT CONSUMER SOLUTIONS
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CONVENIENT MEAL OPTIONS
Source: MultiAd Kwikee
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RESTAURANT MEALS & SNACKS AT HOME!
Source: MultiAd Kwikee
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CONVENIENCE FOODS STEAM UP!
Source: MultiAd Kwikee
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CONVENIENT SOLUTIONS FOR CLEANING
Source: MultiAd Kwikee & company websites
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PRE-MEASURED
Source: MultiAd Kwikee
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MORE THAN ONE BRAND/PRODUCT IN PACKAGE
Source: MultiAd Kwikee
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“ON-THE-GO” & “TRAVEL PACKS”
Source: MultiAd Kwikee
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59
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
0
1
2
3
4
5
6
Retail E-Commerce Sales % of Total Retail Sales
Percent
E-COMMERCE STEADILY GAINING SHARE
Source: U.S. Census Bureau
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J.C. Penney Co. Inc.
L.L. Bean Inc.
Sony Electronics Inc.
Macy's Inc.
OfficeMax Inc.
CDW Corp.
Sears Holdings Corp.
Office Depot Inc.
Walmart.com
Staples Inc.
$1,630,000,000.0$1,630,000,000.0$1,716,502,219.0$1,900,000,000.0$1,980,000,000.0$2,187,000,000.0$2,246,375,040.0$2,700,000,000.0$2,901,497,618.0$2,950,000,000.0$3,000,100,000.0$3,204,577,000.0$3,604,288,201.0$3,760,000,000.0$4,100,000,000.0$4,609,728,000.0$4,900,000,000.0$6,660,000,000.0
$10,600,000,000.0
$48,080,000,000.0
Online Sales
AMAZON BIGGER THAN NEXT TEN COMBINED
4%4%
25%12%
1%22%
40%8%
2%18%
10%48%
16%24%
0%-4%
20%27%
4%41%
2011 Growth
Source: Internet Retailer Top 500 List
Amazon revenue jumped to $61.1 billion in 2012
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GOING AFTER REGULARLY SCHEDULED BUYS
Source: Amazon.com
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SAVINGS THRU SUBSCRIPTION SERVICES
Source: USA TODAY & company websites
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AMAZON OFFERS FOUNTAIN OF YOUTH
Source: http://www.amazon.com/gp/browse.html/?node=5856180011
AmazonApr. 15, 2013
Amazon Launches 50+ Active and Healthy Living Store Featuring Hundreds of Thousands of Items In One Single Destination... Our goal is to offer great prices on a vast selection of items and a robust Resource Center filled with tips on everything from boosting brain power to care-giving.
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AMAZONSUPPLY.COM FOR BUSINESSES
Source: The Wall Street Journal & AmazonSupply.com
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WALMART TRIES TO CATCH UP WITH AMAZON
Source: Amazon, Reuters, Drug Store News
Amazon and Walmart's e-commerce division are expanding and starting programs to allow customers to order items online and then pick them up from lockers stationed at brick-and-mortar retailers.
Drug Store NewsApr. 3, 2013
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ADDS 30,000 CLOTHING & SHOE ITEMS
Source: diapers.com
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.COM MEETS BRICK & MORTAR
Source: Walmart
Mattel and Walmart Canada have launched the first pop-up virtual toy store in Canada, providing a QR code-based shopping experience for commuters and gift-givers.
RetailCustomerExperience.com, Nov. 6, 2012
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SAME-DAY DELIVERY PILOTS
Source: Company websites
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APP TO MAGICALLY FIND PERFECT GIFT FOR FRIENDSThe site includes improved product recommendations; expanded selection from over 100 sites, including Disney, Nordstrom and Think Geek; and birthday reminders
Source: Walmart
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ONLINE BULK PURCHASE CENTER
Source: Dollar General (July 18, 2012)
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VIRTUAL SHOPPING & PICK-UP SPOTSPeapod offering virtual supermarkets at 100+ commute train stations; also testing grocery pickup
Source: Peapod, Stop & Shop, Supermarket News
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FRESHDIRECT EXPANDS TO PHILLY SUBURBS
• Philadelphia
• Delaware
• Chester
• Montgomery
• Bucks
• Mercer
• Burlington
• Camden
Source: FreshDirect, Select Greater Philadelphia & Delaware Valley Regional Planning Commission
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WALGREENS ADDS CONVENIENT OPTIONS
Source: Walgreens
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NORDSTROM INVESTS IN E-COMMERCE GROWTH
Source: Nordstrom’s, MorningNewsBeat & Internet Retailer
Nordstrom Inc. plans to ‘spend almost $1 billion over the next five years to continue to support its e-commerce infrastructure’
Internet Retailer, Feb. 20, 2012
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“SHOPPERS … SPEND ABOUT 10% MORE”
Source: Stop & Shop; iTunes; WSJ/Philip Montgomery (in-store photo); Quote by Erik Keptner, SVP marketing & consumer insights, Ahold
Fresh & Easy Neighborhood Market, El Segundo, Calif., is testing a ‘Scan As You Shop’ handheld device at a store here that allows shoppers to scan products during their shopping trip and keep track of what they are spending.
Supermarket News, Feb. 6, 2012
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“STORES MAPPED IN A MOBILE APPLICATION”“aisle411 connects shoppers, retailers and brands where ‘X marks the spot’, the location where over 70% of purchase decisions are made, in-store and in-aisle.”
Source: Retailing Today & aisle411.com; *National survey commissioned by Aisle411
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ARMING ASSOCIATES W/MOBILE POS DEVICES
Source: Forbes & company websitesSource: Forbes & company websites
Forbes, Apr. 6, 2012
Nordstrom has deployed over 6,000 of these devices throughout their 117 full-line stores, and at some Nordstrom locations, there are more mobile POS devices than regular registers…. these devices are part of a larger plan for Nordstrom to help ‘provide a more technology enabled store experience.’
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100 MILLION+ TRANSACTIONS SINCE 01/2011
Source: Starbucks
quick, seamless payment experience at approximately 7,000 Starbucks stores. Square Wallet is in addition to Starbucks own mobile payment applications…which are used by Starbucks customers more than 2 million times each week Starbucks News Release, Nov. 7, 2012
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“REMEMBERS PAST PURCHASES”
Source: Wegmans
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RECIPES BASED ON CONTENTS OF BASKET
Source: Ogilvy Brazil via coloribus.com
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“APPS EMERGE AS KEY WALMART STRATEGY”
Source: Supermarket News & Walmart (http://wm5.walmart.com/scanandgo/)
Walmart plans to launch Print Plus, a mobile app that brings its print ads to life… The app, to be launched this year, allows shoppers to view content — such as recipes and product information — when they scan a Walmart ad with their smart phones.
Additionally, the company is testing Scan & Go, an iPhone app that lets shoppers use their phones to scan the bar codes on items in-store, and complete the purchase at a self checkout.
The retailer is also exploring mobile payment.
Supermarket NewsApr. 9, 2013
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CAMPBELL’S MEAL-PLANNING APP CONTEST
Source: Campbell’s
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INNOVATION IN VENDING MACHINES
Source: We Go Babies & PepsiCo
Buy a Pepsi, "gift" a Pepsi
Oops! Forgot the diapers and formula
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INTERACTIVE SELF-SERVE FOUNTAIN DISPENSERTouch screen enables consumers to select from 100+ brands
Source: Coca-Cola Company
HEALTH & WELLNESS
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EVOLUTION OF USDA DIETARY GUIDANCE
Source: United States Department of Agriculture (USDA)
1992
2005
2011
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OPPORTUNITIES & CHALLENGES W/ PERSONAL H&WNMI’s Health & Wellness Consumer Segmentation
Source: Natural Marketing Institute (NMI), U.S. General Population
WELL BEINGS®17%
FOOD ACTIVES®18%
MAGIC BULLETS®24%
FENCE SITTERS®19%
EAT, DRINK & BE MERRYS®
22%• Most health pro-
active
• Market leaders & Influencers
• Highest organic usage
• Use some supplements
• Use many health modalities
• Most Green
• Mainstream healthy
• Basics, balance and control
• Desire inherently healthy foods
• Most influenced by physicians
• Least eco-friendly
• Price sensitive
• Conveniently healthy
• Heavy pill usage – supplements OTC, Rx
• Health managers vs. preventers
• Weight managers
• Least likely to cook at home
• Least likely to exercise
• ‘Wannabe’ healthy
• Most likely to have kids
• Stressed out, want help and control
• More health kicks but no clear goals
• Receptive to eco-friendly
• Active weight loss
• High social media usage
• Least health active
• Unconcerned about prevention
• Focused on taste
• Most price driven
• Younger
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145 153
156 163
161
Shopping Trips Per Household
THOSE MOST ENGAGED IN H&W SHOP AND SPENDTotal Retail Channels
$6,533 $7,078 $7,190 $7,169
$7,828
Basket Ring $ Per Household
Source: Natural Marketing Institute (NMI), Health & Wellness Segmentation, Total U.S. – 52 weeks ending 12/29/2012
$45 $46 $46
$44 $49
Basket Ring $ Per Trip
WELL BEINGS are active shoppers & spend the most annually
Well BeingsFood ActivesMagic BulletFence SittersEat, Drink & Be Merrys
Well BeingsFood ActivesMagic BulletFence SittersEat, Drink & Be Merrys
Well BeingsFood ActivesMagic BulletFence SittersEat, Drink & Be Merrys
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Well Beings make more grocery & club trips
Mass Merchandisers
Warehouse Clubs
Convenience/Gas
Dollar Stores
Drug Stores
Supercenters
Grocery Stores
12
14
10
12
14
23
62
13
13
13
13
16
26
60
12
12
13
14
14
26
57
14
12
12
14
14
24
56
12
10
15
15
13
25
55
Well BeingsFood ActivesMagic BulletsFence SittersEat, Drink & Be Merrys
MULTIPLE RETAIL CHANNEL CONNECTION POINTSShopping Trips Per Household
Source: Natural Marketing Institute (NMI), Health & Wellness Segmentation, Total U.S. – 52 weeks ending 12/29/2012
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Only in Whole Foods do we see extreme trips from Well Beings
Whole Foods Markets
7-Eleven
Walgreens
Target
Dollar General
Costco
Aldi/Save A Lot
Safeway Grocery Corp
Wegman's
Walmart Banner
Kroger Grocery Corp
9
5
8
10
9
14
13
18
21
22
27
3
8
9
9
9
12
16
20
16
25
28
4
7
8
9
10
12
14
18
18
25
27
4
8
8
11
10
12
12
20
20
23
25
3
7
8
9
11
11
12
20
25
24
26
Well BeingsFood ActivesMagic BulletsFence SittersEat, Drink & Be Merrys
BROAD ACCESS TO DIVERSE GROUPS Shopping Trips Per Household
Source: Natural Marketing Institute (NMI), Health & Wellness Segmentation, Total U.S. – 52 weeks ending 12/29/2012
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DIVERSE CATEGORY DEMAND ACROSS SEGMENTS
Source: Natural Marketing Institute (NMI), Health & Wellness Segmentation, Total U.S. – 52 weeks ending 12/29/2012, UPC-coded
Well Beings
Food Actives
Magic Bullets
Fence Sitters
Eat, Drink & Be
MerrysBeer 86 89 102 105 118Wine 136 103 84 93 84Candy 91 102 106 97 98Carbonated Beverages 75 97 105 103 112Bottled Water 117 95 97 105 92Fresh Produce 143 103 90 95 80Vitamins 119 114 108 94 48Tobacco & Accessories 66 82 113 90 119
$ Buying Rate Index
Where is your category or brand connecting?
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Plant Sterol
Low Glycemic
Fortified
Soy
Iron Presence
Probiotic
Oil Presence
High Fructose Corn Syrup Free
No MSG
Hormone Antibiotic Free
Fiber Presence
Organic
Calcium Presence
Cholesterol Presence
Gluten Free
Calorie Presence
Vitamin/Mineral Presence
Fat Presence
$65,599,806 $205,227,214 $304,999,509 $878,085,597 $1,201,535,451 $1,564,320,586 $1,840,691,031 $2,202,352,936 $2,269,537,542 $2,703,131,465 $2,767,809,607 $3,260,353,445 $3,793,580,913 $4,072,847,249 $4,621,102,641 $4,770,819,739 $5,202,643,555 $5,376,790,275 $5,389,387,821
$6,646,556,369 $7,738,137,646 $8,040,942,421 $8,124,912,479
$12,067,007,263 $13,858,159,020 $14,458,008,850
$16,228,679,845 $17,592,964,595
$18,939,839,556 $22,875,092,534
$24,169,500,894 $26,693,601,014 $27,014,243,906
$41,822,998,925 $69,584,109,531
HEALTHY CLAIMS RANGE FROM $66M TO $70BDollar Sales (billions)
Source: Nielsen Scantrack & Nielsen Label Trends, Total U.S. - All Outlets Combined, 52-weeks ending 03/16/13 (vs. year ago), UPC-coded
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05/19/0707/14/0709/08/0711/03/0712/29/0702/23/0804/19/0806/14/0808/09/0810/04/0811/29/0801/24/0903/21/0905/16/0907/11/0909/05/0910/31/0912/26/0902/20/1004/17/1006/12/1008/07/1010/02/1011/27/1001/22/1103/19/1105/14/1107/09/1109/03/1110/29/1112/24/1102/18/1204/14/1206/09/1208/04/1209/29/1211/24/1201/19/1303/16/13
-5
0
5
10
15
20
25
30
Organic Labels All Nielsen Measured Categories
ORGANIC GROWTH IS BACKDollar Trend
Source: Nielsen Scantrack & Nielsen Label Trends, Total U.S. - All Outlets Combined, 4-week increments (vs. year ago), UPC-coded
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Stevia Soy Fortified Sweetener Presence Calcium Presence Fat Presence Caffeine Presence Vitamin/Mineral Presence Salt or Sodium Presence Calorie Presence Flax or Hemp SeedOmega Presence Calorie 100 Probiotic
-1-1
-1-1
-1-2
-2-3-3
-3-4
-5-5
-6
SOME LABEL CLAIMS STRUGGLING Unit Trend
Source: Nielsen Scantrack & Nielsen Label Trends, Total U.S. - All Outlets Combined, 52-weeks ending 03/16/13 (vs. year ago), UPC-coded
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95
Cholesterol Presence
Antioxidants
Multigrain
Grain Type
Natural
No MSG
Fruit & Veg Presence
Organic
Gluten Free
Plant Sterol
Low Glycemic
11
2223
4455
67
9101010
1516
1928
31
WINNING LABEL CLAIMS Unit Trend
Source: Nielsen Scantrack & Nielsen Label Trends, Total U.S. - All Outlets Combined, 52-weeks ending 03/16/13 (vs. year ago), UPC-coded
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United States Canada
5849
35 45
7 6
Not at allIn partMostly
ROOM TO ENHANCE LABEL UNDERSTANDINGHow well do you understand the nutritional information panels/labels on food packaging?
Source: Nielsen Global Online Survey – Q1 2011; Base: All respondents n=998
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Fresh Claims
All Natural Claims
Non-Artificial Claims
Heart-Healthy Claims
Imported Products Food Claims
Organic Claims
Real Fruit Claims
Fat Claims
Vitamin Content
Calorie Content
8
9
9
11
11
14
17
19
28
32
78
77
75
79
72
74
73
69
67
60
13
14
16
10
17
13
10
12
6
8
Always Sometimes Never
FEW LABEL CLAIMS 100% BELIEVABLEDo you believe/trust that these food labels claims on packages are accurate & truthful?
Source: Nielsen Global Online Survey – Q1 2011, U.S. results; Base: All respondents n=50
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RETAILER HEALTH & WELLNESS SOLUTIONS
Source: Company websites
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SAFEWAY FOCUSED ON HIGH-GROWTH SEGMENTS
Source: Safeway; SeekingAlpha (SWY); Store Brands Decisions
“Health and wellness, organics, open nature, eating right fits into that”
Store Brands DecisionsMar. 19, 2013
Safeway is repositioning its grocery stores as lifestyle destinations with store brands as a foundation.‘Today, we're a supermarket company. We're a grocer selling wellness services and wellness products…in 10 years' time, we (will be) more of a wellness company selling food. This should be the highest growth piece of our business for the next 10 years, and…Safeway can own the wellness space.’
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MARTIN’S ADDS HEALTHIER CHECK-OUT LANE
Source: Ahold
The Healthy Ideas check-out lanes contain both national and Martin’s brand perishable and nonperishable healthy food items
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HELP DIABETES PATIENTS SAVE
Source: Walmart (U.S.)
Walmart introduced… the low-cost ReliOn Prime meter and blood sugar test strips…Walmart will provide increased savings on a variety of items to help patients ease the cost of diabetes management.
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GETTING ASSOCIATES & SHOPPERS MOVING
Source: Walgreens, Hy-Vee, H-E-B, The Mexia (TX) News Online
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INSURANCE PROVIDER ENCOURAGES CONSUMERSConsolidates coupons for healthier products
Source: Cigna, Coupons.com, Supermarket News
Coupons available on the Cigna Everyday Healthy Values site are for products that meet the minimum health guidelines based on the U.S. Department of Agriculture’s and the Food and Drug Administration’s recommendations.
Supermarket News, Dec. 10, 2012
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MORE THAN 500 GLUTEN-FREE PRODUCTS
Source: LiveGlutenFreely.com
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“BETTER FOR YOU” ITEMS
Source: MultiAd Kwikee
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“BETTER FOR YOU” ITEMS
Source: MultiAd Kwikee
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INDULGENT PRODUCTS CAN STILL BE WINNERS
Source: MultiAd Kwikee
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INVESTS MORE IN SNACKS & FROZEN FOODS
Source: Dow Jones Newswire
[ConAgra] is trying to grow its snacking and frozen foods businesses as it tries to capitalize on food shoppers' greater willingness to spend on wants rather than basic needs… [CEO] Rodkin said that while shoppers are ‘trying to squeeze every nickel they can’ on pantry staples, they are willing to indulge on products like desserts
Dow Jones Newswire, Feb. 21, 2012
SUSTAINABILITY
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SUSTAINABILITY IN CORPORATE MESSAGING
Source: Company websites
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ONLINE GREEN PRODUCTS
Source: S.C. Johnson
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STRONG SUSTAINABILITY MESSAGING
Source: Company websites
Starbucks introduces the EarthSleeve; correlates to
a savings of nearly 100,000 trees
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CUTTING STORE ENERGY & INFORMING SHOPPERS
Source: Kroger 2012 Sustainability Report
MEDIA TRENDS
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NEWS SOURCES CONTINUE SHIFT TO ONLINE
Source: Pew Research Center
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Female Head Age 45-54
HH Income $40-$49.9k
White
HH Income $50-69.9k
Boomers
HH Income $70-$99k
Female Head Age 55-64
HH Income $100k+
Greatest Generation
Female Head Age 65+
39%
39%
43%
43%
44%
48%
48%
51%
61%
62%
NEWSPAPERS REACHING OLDER & AFFLUENTPercent subscribing to local newspaper delivered to home
HH Income <$20k
Gen Y (Millennials)
African American
Female Head Age <35
Gen X
Female Head Age 35-44
HH Income $20-$29.9k
HH Income $30-$39.9k
Hispanic (any race)
No Female Head of HH
24%
25%
27%
28%
33%
33%
33%
34%
35%
35%
Source: Nielsen Online Views Survey (Aug/Sep 2012)
Top 10 Bottom 10
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HH Income $40-$49.9k
Female Head Age 45-54
HH Income $50-69.9k
Boomers
White
Female Head Age 55-64
HH Income $70-$99k
HH Income $100k+
Greatest Generation
Female Head Age 65+
43%
44%
46%
47%
47%
52%
52%
56%
64%
65%
57%
56%
54%
53%
53%
48%
48%
44%
36%
35%
Subscribes Doesn't Subscribe
SALES FROM NON-SUBSCRIBERS SIGNIFICANTAll-Outlet Dollar Market Share of the Top 10 demographic groups who do or don’t subscribe to local newspaper home delivery
Source: Nielsen Online Views Survey (Aug/Sep 2012)
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HH Income <$20k
African American
Gen Y (Millennials)
Female Head Age <35
Gen X
Female Head Age 35-44
HH Income $20-$29.9k
HH Income $30-$39.9k
No Female Head of HH
Hispanic (any race)
29%
30%
34%
34%
36%
37%
37%
37%
41%
43%
71%
70%
66%
66%
64%
63%
63%
63%
59%
57%
Subscribes Doesn't Subscribe
MORE SO IN SEGMENTS W/LOW SUBSCRIPTIONSAll-Outlet Dollar Market Share of the Bottom 10 demographic groups who do or don’t subscribe to local newspaper home delivery
Source: Nielsen Online Views Survey (Aug/Sep 2012)
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Greatest Generation
Female Head Age 65+
Female Head Age 55-64
Boomers
HH Income $40-$49.9k
Female Head Age 45-54
White
HH Income $100k+
HH Income $70-$99k
HH Income $50-69.9k
28%
29%
30%
30%
31%
32%
32%
32%
33%
34%
Subscribes
NEWSPAPER DELIVERY ATTRACTS DEAL BUYERS% Dollar Volume on Deal of the Top 10 demographic groups* who do or don’t subscribe to local newspaper home delivery
Greatest Generation
Female Head Age 65+
Female Head Age 45-54
Boomers
Female Head Age 55-64
White
HH Income $100k+
HH Income $50-69.9k
HH Income $40-$49.9k
HH Income $70-$99k
19%
20%
20%
21%
22%
23%
24%
24%
24%
25%
Doesn't Subscribe*Sorted by % Dollar Volume on DealSource: Nielsen Online Views Survey (Aug/Sep 2012)
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HH Income $20-$29.9k
African American
No Female Head of HH
HH Income $30-$39.9k
HH Income <$20k
Hispanic (any race)
Gen X
Female Head Age 35-44
Female Head Age <35
Gen Y (Millennials)
27%
27%
28%
29%
30%
30%
34%
35%
39%
40%
Subscribes
ESPECIALLY AMONG YOUNGER% Dollar Volume on Deal of the Bottom 10 demographic groups* who do or don’t subscribe to local newspaper home delivery
HH Income $20-$29.9k
HH Income <$20k
African American
No Female Head of HH
Hispanic (any race)
HH Income $30-$39.9k
Gen X
Female Head Age 35-44
Gen Y (Millennials)
Female Head Age <35
19%
20%
20%
21%
22%
22%
23%
24%
28%
28%
Doesn't Subscribe*Sorted by % Dollar Volume on DealSource: Nielsen Online Views Survey (Aug/Sep 2012)
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TARGET SIMPLIFIES ONLINE ADHow it works: Scroll over item in the ad, click on “add to quicklist”… When done shopping, send list to your mobile
Source: Target
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RETAILERS LINK TO “HOW TO” VIDEOS W/FEATURES
Source: HyVee
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ALDI TURNS THE PAGE; IMPROVES TECHNOLOGY
Source: Aldi
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ENHANCING ONLINE & NEWSPAPER CIRCULARS
Source: Family Dollar
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GENERAL MILLS ONLINE COOKING SOLUTIONS
Source: General Mills
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147133 133
94
120107
88107 107
88107
878293
8071 73
60
Humor Narrative Sentimental Value Product Promotion
HUMOR, NARRATIVE & SENTIMENTAL ADS RESONATEAdvertising Performance Index Since 2006
Source: Nielsen Ad Solutions
2006 – 2007Pre-recession
2008 – 2009Recession
2010 – 2011Recovery
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INNOVATIVE PRODUCTS & COMMUNICATIONSPhoto Caption: “The actor Terry Crews interrupting a commercial for Charmin Freshmates to pitch Old Spice body spray. While cobranding isn't new, one real commercial commandeering another may be.”
Source: The New York Times, Facebook & YouTube
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“TARGET … PUTS GROCERIES IN THE SPOTLIGHT”
Source: Target & Associated Press
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WHOLE FOODS ONLINE LIFESTYLE MAGAZINE
Source: Whole Foods’ Dark Rye Online Magazine
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WALMART CANADA UNVEILS MULTIPLATFORM MAGAZINE
Source: http://www.walmartlivebetter.ca/
Free publication available in print at Walmart Supercentres & online
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Text ads on mobile phonesOnline banner ads
Ads on social networksOnline video ads
Ads served in search engine resultsTV program product placements
Brand sponsorshipsAds before movies
Billboards and other outdoor advertisingAds on TV
Ads on radioAds in magazines
Ads in newspapersBranded websites
Emails I signed up forEditorial content such as newspaper articles
Consumer opinions posted onlineRecommendations from people I know
6464468
56667797710
27
2025
27293230
333635
41404041
4348
5458
64
46504749
4749
464546
41414142
3835
3023
6
28212119171514141312121211101099
3
Trust Completely Trust somewhat Don't trust much Don't trust at all
LESS TRUST IN ONLINE & MOBILE ADSTo what extent do you trust the following forms of advertising?
Source: Nielsen Global Online Survey – Q3 2011 (Percentage of U.S. respondents)
CLOSING SUMMARY & THOUGHTS
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CONSUMERS SHARE ENDURING THEMES
• Health & wellness• Value• Convenience• Comfort & enjoyment• Green• Demographics• Connected
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ARE YOU ACTING ON ENDURING THEMES?
• How do you innovate & execute against opportunities that are evident to others & come out ahead?
• How do you identify opportunities where you can provide unique solutions?
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COME SEE WHAT’S NEXT AT CONSUMER 360
http://www.consumer360.com/locations/us/
Join us on June 3 – 5, 2013 in Phoenix, AZ
Agenda CollaborateSpeakers Sessions
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CONTRIBUTING AUTHORS
Bonnie Dykstra-Losoff
Dave Howland
Diane Johannes
Gail Ehrenberg
James Russo
Kathy Mancini
Katie Sheehan
Kelly Pirrera
Mary Ellen Ryan
Sandy Smith
Shannon Murphy
Sue Mommaerts
Todd [email protected]
@ToddHaleNielsen
Victoria Stevens
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Source: https://ishare.nielsen.com/teams/consumer/NA/events/default.aspx
COME VISIT US ON ISHAREFor internal use only
https://ishare.nielsen.com/teams/consumer/NA/thoughtleadership/default.aspx
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