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Posts Tagged ‘Marketing’

Q3 MarketPulse™ Survey Results: Don’t Ignore the “Ignored Generation”

Thursday, October 25th, 2012

Often referred to as the “ignored generation,” Generation X is far from forgettable. Sandwiched between two larger generations, the post World War II baby boomers and their millennial children, Generation X borrows traits from both groups but more closely mirrors the millennials.

This quarter’s MarketPulse™ survey narrows in on Gen-Xers (aged 35 to 44) to reveal frugality despite a sunnier economic outlook. Twenty-four percent of the group believes their financial situation has improved during the past 12 months. Because of this positive view, it may seem that Generation X has much in common with the baby boomers. In fact, though, they actually share traits around price sensitivity and tech savviness with millennial shoppers.

Just as millennials are entering adulthood amidst a weak economic environment, Gen-Xers began their adult lives, job-searching and starting a household, during the recession following the 1987 stock market crash. They’ve adopted more frugal purchase habits compared to older generations and use technology to plan shopping trips ahead of time. The Q3 MarketPulse report demonstrates these Gen-Xer traits, such as:

Similar to millennial shoppers, 72 percent of Gen-Xers state price is more important than convenience in brand decisions
37 percent buy brands that are on sale rather than their preferred brands versus 45 percent of millennials, 27 percent of boomers and 22 percent of seniors
33 percent choose products based on loyalty card discounts versus 35 percent of millennials, 25 percent of boomers and 16 percent of seniors
20 percent steer clear of certain aisles to avoid unplanned purchases versus 22 percent of millennials, 15 percent of boomers and 11 percent of seniors
On par with other generations, 69 percent pre-plan by making shopping lists, with Internet and retailer website usage comparable to millennials and higher than older generations

With established families and more advanced careers, Generation X is an influential group. Retailers and manufacturers should not overlook their spending power. Marketers wishing to reach Generation X should approach the group with a comprehensive arsenal of tactics, showing appreciation for their tech savvy ways, and the important role that new media are playing in helping them to get off to a solid start in their adult world.

For more details about Generation X’s shopping behaviors and this quarter’s Shopper Sentiment Index™, please read the press release: http://www.symphonyiri.com/NewsEvents/PressReleases/tabid/97/ItemID/1605/View/Details/Default.aspx.

Tags: cpg, demographics, Gen-X, Generation X, manufacturer, Marketing, retailer, Segmentation, shopper behavior
Posted in Generation X | 1 Comment »

Capitalizing on Shoppers’ Cautious Optimism

Tuesday, October 23rd, 2012

Recent unemployment numbers brought the jobless rate to its lowest point since January 2009 and consumer confidence is on the rise, but what do these economic improvements mean for the CPG industry? Will they be enough to buoy shopper enthusiasm?

Last week, we released the second-annual SymphonyIRI EconoLink™ report, revealing cautious optimism among shoppers: 27 percent of shoppers anticipate they will be financially better off a year from now (up from 22 percent with this view last year), while 21 percent believe their financial positions will be worse a year from now (down from the alarming 30 percent with that opinion last year).

SymphonyIRI’s EconoLink report, “Economic Shopper Segmentation: A Look into How Shoppers Are Changing Their Behaviors in Today’s Economic Environment,” examines the attitudes and shopping patterns of six consumer segments, grouped according to financial outlook and behaviors. The new data provides CPG marketers clear insight into how categories, brands and stores are performing with specific shopper groups—information they can use to better address consumer wants and needs. The EconoLink segments are:

Downtrodden: Median annual income of $41,000; very pessimistic about their financial situations; tend to shop at mass merchandisers, dollar and convenience stores
Cautious and Worried: Median income of $42,000; bleak financial outlook; often shop at mass merchandisers
Start-Ups: Median income of $44,000; impacted by the recession but maintain positive outlook; shop at grocery, drug and convenience stores
Optimistics: Median income of $48,000; positive outlook; favor supercenters, drug and convenience stores
Carefree: Median income of $59,000 and financially stable; skew toward shopping at club stores and tend to be brand loyal
Savvy Shoppers: Median income of $81,000 and financially stable; enjoy shopping and the quest for value; favor grocery, drug and mass merchandisers

All six EconoLink segments demonstrated a generally positive outlook for the future, but optimism is highest among Start-ups and Carefrees. Start-Ups are twice as positive as last year; 18 percent believe their financial situation will be better next year, versus the mere 9 percent who felt that way last year. Optimism also climbed for the Carefree group (18 percent this year versus 11 percent last year). However, not all segments are improving: only 17 percent of Savvy Shoppers feel their financial situations are stronger now than a year ago, versus 23 percent last year.

In another demonstration of increased optimism, 64 percent of Downtroddens believe their financial situations will be worse a year from now than today, down from an astounding 79 percent in the 2011 report. Cautious and Worried shoppers are moving in the same direction; 38 percent today believe their financial situations will be worse in a year than today, while 46 percent held this belief last year.

Financial attitudes have seen modest improvement over the past year, but shoppers remain extremely cautious. Now more than ever, manufacturers and retailers must appeal to shoppers’ beliefs, behaviors and values. With EconoLink data, marketers can target specific segments and devise new products, promotions, merchandising, pricing and store layouts to improve each segment’s shopping experience

To learn more, read the press release, or register here for our free webinar, “It’s Still the Economy: How People’s Shopping Decisions are Driven By Their Economic Outlook,” which I will host Thursday, October 25 at 11 a.m. CT.

Tags: Consumers, cpg, EconoLink, economy, financial attitudes, manufacturers, Marketing, Retail Solutions, Retailers, Segmentation, shopper attitudes, shopper behavior
Posted in Shoppers | No Comments »

Localization Maximizes Social Media Results

Tuesday, August 7th, 2012

Social media has become a mainstay in the marketing world. In fact, SymphonyIRI research shows that it’s also a very significant purchase influencer, with 78 percent of consumers turning to online research before purchasing. With this in mind, numerous CPG retailers are using social media, but their campaigns─and results─have largely been underwhelming. Where are CPG marketers going wrong?

Unique Visitors to Social Networking Sites

Source: comScore: State of the Internet, 1st Quarter 2012

Today’s consumers are constantly bombarded with information they don’t want, don’t need and are not interested in. The key to effective social media is to form meaningful connections, and this can only be done by generating content that is directly applicable and useful to consumers. Social media campaigns should make consumers feel as if they are at the center of the conversation, and should encourage engagement and brand loyalty.

For CPG retailers considering social media, or seeking to increase ROI from existing social media efforts, it is crucial that campaigns be localized and customized. CPG retailers need to research their social media audiences and provide content accordingly, taking into account factors like age, gender and income level. Targeting consumers based on location is also key. Whole Foods addressed the localization issue perfectly: in addition to its primary, company-wide Facebook page, the specialty retailer also has pages for its individual stores. That way, consumers only hear about sales and events in their own neighborhoods.

Another retailer that’s getting social media right is Target, which has had particular success driving loyalty through its Facebook page by encouraging consumer involvement and providing a deep level of customization in terms of offers and couponing. Target gives consumers content that is specifically targeted to them, making them feel as if the retailer is saving them time, rather than wasting their time.

However, there is a balance to knowing too much about customers. While it’s important for consumers to feel like the social media messaging they’re receiving is meant for them specifically, CPG retailers should never invade customers’ privacy. Consumers do not want to feel like they are being stalked or taken advantage of, and overstepping privacy boundaries is an easy way to alienate consumers. Tactics like purchase-based targeting can be a great way to present consumers with products and information they will truly be interested in, but there’s a fine line as to how these technologies should be used. Retailers should err on the side of caution to make sure they are not getting too personal or targeting consumers in a way that could make them uncomfortable.

Most CPG retailers are still learning and experimenting with strategies for promoting their brands or products through social media, but there are countless additional applications, including product development and promoting brand events. Have a new product? Use social media to hold a naming contest. Only one person will win, but every person who enters, or even just reads about the contest, will feel an immediate connection to the product before it’s even launched.

Tags: Consumers, coupons, cpg, Digital Media, Facebook, manufacturers, Marketing, Retailers, Social Media
Posted in Localization | 1 Comment »

Mother Knows Best: Moms Stay Optimistic, Shop Smart

Wednesday, May 2nd, 2012

After a tumultuous 2011, consumers are starting to regain confidence in their personal finances. This week, we released the SymphonyIRI Group Q1 2012 MarketPulse™ survey and found that 19 percent of consumers feel their financial position has improved over the past year. Forty percent feel it has remained unchanged, and 41 percent feel it has deteriorated. Though, less than inspiring, this is the most optimistic outlook since Q1 2011.

Despite the overriding doom and gloom, one group has managed to remain optimistic: the nation’s 85 million moms have a brighter outlook on the future than the general population—and trillions of dollars in spending power. The MarketPulse results offer valuable insights about this smart and influential group, including:

23 percent of moms feeling their financial position today is better than a year ago
28 percent are struggling to afford needed groceries
More than half will shop multiple stores to find the lowest price, versus 43 percent of the general population

Delving more into this trend, we also released a Point of View on this very important consumer demographic, “Valuable Assets: Today’s Moms Represent Savvy, Smart Shoppers.” In this Point of View, we discuss how often the primary shoppers for their households, moms are tasked with saving money on groceries and household needs. They adopted new shopping behaviors after the downturn and will likely continue those saving strategies even as the economy improves. Among their penny-pinching measures, moms have embraced new media as they are 2.5 times more likely than the general population to take recommendations from social networking sites or blogs.

Social media is integral for CPG marketers and retailers looking to target tech-savvy moms, but traditional marketing still goes a long way. Given their hectic schedules and mile-long, to-do lists, moms are very strategic shoppers. Nearly three-quarters make shopping lists, and moms are 24 percent more likely to use coupons to help make their lists than the general population. Once at the store, moms’ brand decisions are influenced by in-store circulars, advertisements and promotions. But, bottom line, price remains the primary deciding factor: 61 percent of moms say the price of an item heavily sways their brand decisions, versus 49 percent of the total population.

Tags: coupons, cpg, economy, grocery, manufacturers, Marketing, MarketPulse, moms, new media, Retailers, shopper attitudes, shopper behavior, Social Media, SymphonyIRI, Women Shoppers
Posted in Moms | No Comments »

Adding Convenience to Convenience Stores

Friday, March 9th, 2012

Where can you grab a quick cup of coffee, pick up a fresh sandwich for lunch, and gather ingredients for tonight’s dinner? More and more convenience stores (c-stores) are expanding product offerings and rearranging store layouts to serve as truly convenient one stop shops.

C-stores have long served as destinations for the road trip pit stop or last minute birthday card pick-up, but more recent trends are defying past perceptions. Increasing percentages of square footage dedicated to grocery item shelf space, coffee bars, and even beer taps seem to be an attempt to attract new customers by giving them additional reasons to visit.

For example, Sunoco’s Craft Beer Exchange adds an extra incentive to venture inside APlus c-stores while pumping gas. The program features a rotating selection of craft beers available in refillable to-go growlers. After 12 pilot locations in western New York saw great success, Sunoco announced an expansion of the Craft Beer Exchange to select South Carolina stores.

In addition, the introduction of produce and pre-packaged fresh to-go items, including sandwiches, cut fruit and yogurt, has also drawn new customers. The typical c-store customer base now includes more health-conscious families, busy professionals and younger shoppers, who may not have considered shopping there previously because of product lines which did not meet their needs.

C-stores following the trend of offering healthier options are creating new distribution and marketing opportunities for health food and sports nutrition manufacturers, while potentially putting unhealthy CPG brands in jeopardy. As many retailers do not have the funds to physically expand stores, struggling product lines may be eliminated to make room for front-of-store takeout counters and refrigerated cases full of fresh foods and produce.

Consumers seem to be welcoming product line shifts, as c-stores have cited success in urban pilot markets. However, as c-stores continue to establish themselves as providers of healthy to-go options, innovation will be essential for differentiation. For example, 7-Eleven employs a dietitian to improve the nutritional value of ready-made food items, and even marketed her recommendations to assist with nutrition-related New Year’s resolutions.

It will be interesting to chart both c-store changes and shifts in consumer perception as this trend evolves. How is your company taking action to adapt to the new convenience of c-stores?

Tags: Sam Norris, convenience stores, fresh foods, produce, healthy options, to-go, nutrition, CPG, marketing, trends, consumers, retailers, manufacturers

Tags: Consumers, Convenience Stores, cpg, fresh foods, healthy options, manufacturers, Marketing, nutrition, produce, Retailers, Sam Norris, to-go, trends
Posted in Convenience Stores | No Comments »

A Deeper Dive on EconoLink – Q&A with Larry Levin

Thursday, January 19th, 2012

At the end of 2011, we shared findings from our new segmentation solution for CPG and retailer marketers, EconoLink™. EconoLink categorizes shoppers into six unique segments based on their outlook, behavior and personal financial attitudes.

In the December 2011 webinar, we presented detailed insights on how different shopper segments are thinking about and planning their purchase decisions, and how marketers, in turn, must understand which shopper segments are buying their products, and how their core segments behave during challenging economic times.

There was a lot of interest in this topic, and we want to address some of these questions. The video above features Larry Levin, executive vice president and general manager of Consumer Insights, who addresses the following topics, related to EconoLink:

The dynamic that seems to exist where “Savvy Shoppers” make the most money, but also buy most on deal
Why the “Downtrodden” and “Cautious and Worried” segments are spending more on deal
Aisles the “Downtrodden” are avoiding
Recommendations for retailers and manufacturers
2012 trends

Tags: cpg, CPG trends, deal, EconoLink, Larry Levin, manufacturers, Marketing, Retail Solutions, Shoppers
Posted in EconoLink | No Comments »

How to Keep Kids (and Your Brand) Healthy

Tuesday, January 3rd, 2012

Pending legislation may restrict the types of food that can be marketed to children. Supporters of the proposed guidelines seek to alleviate an all-time high level of childhood obesity, but others fear the policy will eliminate too many jobs.

It may be awhile before a decision is reached due to the requirement of a cost-benefit analysis. The cause-effect relationship between advertising and childhood obesity is also being debated.

Nevertheless, children’s health is a prime concern. In the meantime, how can the CPG industry show support for minimizing the obesity crisis while upholding their brands?

Over the past few years, some manufacturers have voluntarily altered their product’s ingredient composition. For example, General Mills vowed to lower sugar levels in all cereals marketed to children, which now contain 10 grams of sugar or less per serving. The company also increased the use of whole grain in kid-friendly Big G cereals.

Other retailers and manufacturers are supporting healthier options in schools, as the nutrition of cafeteria food has long been scrutinized. Produce providers Dole, Chiquita, and Sun World have recently donated salad bars to schools to offer children fresher alternatives to standard cafeteria menus.

Whole Foods Markets (a sponsor of the Let’s Move Salad Bars 2 Schools initiative) and Publix have also made donations, in hopes that children’s act of choosing from an assortment will turn fruit and vegetable consumption into a habit.

Dole’s Nutrition Institute even created a school curriculum, including lesson plans, music, games and activity books focused on forming healthy eating habits.

Other possible strategies manufacturers can employ to support children’s healthy eating may include:

Introducing healthier, kid-friendly brand extensions (Sara Lee disguised whole grains in whole wheat white bread)
Reducing size and calorie count of lunchbox-friendly packs (Nabisco introduced 100 calorie packs for portion control)
Increasing marketing efforts to promote existing healthy product lines to children (Last year, farmers borrowed the traditional junk food marketing approach to brand baby carrots as “the original orange doodle”)

What are some strategies your brand is using to combat childhood obesity?

Tags: advertising, Childhood Obesity, cpg, Donna Sutton, healthy eating, Let’s Move Salad Bars 2 Schools, Marketing
Posted in Kids | 4 Comments »

Let’s Talk More About Innovation

Monday, December 5th, 2011

Thanks for the comments and viewpoints generated by my first post on innovation.

While change comes in many forms, we’ve identified five types of change that we believe spark innovation more often than others. These include:

Societal change – as cultural norms shift, shoppers’ needs also evolve, creating an outstanding innovation opportunity. The ongoing innovation in better-tasting and higher-quality prepared foods reflects the growing number of two-income households in America, for example.

Mass movements – the widespread growth in consumer interest for a particular cause often drives new innovation. The explosion of sustainable products to combat global warming, burgeoning landfills and depleted oil stocks has sparked significant new innovation

Economic conditions – As the recent recession brutally illustrates, economic conditions are a powerful driver of innovation. The continued and growing popularity of private label products is perhaps the strongest example of economics-driven innovation.

Demographics – The ongoing shift in the age, ethnic composition, geographic location and work patterns of shoppers drives innovation. Consider cans with easy-to-open lids, catering to an older population more likely to suffer from arthritis.

Scientific advances – Advances in technology enable new forms of innovation. Breakthroughs in packaging materials have given us microwavable trays and single material packaging.

Often two or more of these conditions occur simultaneously to push innovation even faster. For example, mass interest in environmentally-benign packaging and scientific advances has resulted in the much wider availability of recycled boxes, cans, pouches and bottles.

As you are thinking about innovation, I’ve observed several ingredients that are part of every innovative company:

Ensure the R&D team is focusing efforts on fulfilling your organization’s long-term vision and mission, as well as its short-term tactical plans
Confirm that your organizational structure supports and nourishes innovation by removing hierarchies wherever possible and encouraging direct communication among internal and external resources for everything from product ideation to packaging
Develop cross-functional teams that include every discipline that will “touch” a new product
Think big. Innovative companies are not built on line extensions

I know many of you will have thoughts and I look forward to reading and sharing these.

Tags: brand, cpg, halo effect, innovation, John McIndoe, manufacturer, Marketing, product management, Retail Solutions
Posted in Innovation | 1 Comment »

Igniting Innovation

Wednesday, November 16th, 2011

Everyday, we have conversations with our clients about innovation. Everyone wants to be innovative, but what exactly is an innovative product or solution? How does innovation translate to the less-sexy, but critical question of sales and market share uplift? How do product managers include innovation into the value proposition? These are just a few of the dozens of innovation-related questions we hear.

I would like to start an ongoing dialogue about innovation and invite you to participate.

We discuss the definition of innovation quite a bit, and it seems that every person we ask has a unique view. However, three attributes that seem to consistently be part of innovation include:

Innovation creates a new value proposition that addresses a specific need
Innovation differentiates a product from its competitive set
Innovation includes solutions not previously introduced to a market

One analogy that I’ve liked is thinking of innovation as essential to a brand the way oxygen is essential to fire. Successful innovation ignites a brand, while unsuccessful innovation can extinguish it. Also, successful innovation can create a halo effect that can generate new interest in other brands within a portfolio.

While every company handles innovation differently, I’ve seen a few common steps that act as useful starting points.

Ask and answer a series of basic but critical questions: What are we trying to accomplish? Are we trying to develop new products or services? Create a value product from a premium one? Grow into new geographies?
And then ask some more questions: Will our new idea attract new customers? Will it take cost out of our product? Will it change dynamics of the category?
Once you have answered these and other questions, identify an approach to quickly test/validate the idea, such as creating a fast prototype to quickly determine if an idea is viable, accomplishes our goals and successfully answers the questions posed.

How do you handle innovation? Thank you for your interest and I look forward to hearing from you.

Tags: brand, cpg, halo effect, innovation, manufacturer, Marketing, product management, Retail Solutions
Posted in Innovation | 3 Comments »

Crowdsourcing – Latest addition to Marketing C’s?

Monday, September 26th, 2011

We are experiencing the “Apple” generation, as some call it! To me, it is realizing the power of innovation. Consumer needs are evolving with technological advances and rising economic instability. Companies must be innovative to stay ahead of the race. More and more companies are facing the brunt of not being “continuously innovative.” It is appalling to see heritage companies that were once at the forefront of innovation, heading towards bankruptcy. Porsche borrowed about a billion dollars from Volkswagen to stay afloat, while Renault has been selling off its businesses to survive, according to Business Insider.

As consultants we have the responsibility to provide companies with solutions that are forward looking. Our focus should be on truly filling the “gaps.” The core of marketing is “consumer” and everything revolves around it. So, why not let the consumers innovate? Well, the concept of consumer-led innovation is not new. Focus groups, surveys, shopper insights, ethnography are some of the tools that have been traditionally used by market researchers to delve into the consumer’s mind. The needs/problems are then taken to the drawing board and companies sketch out the details of their innovative product. So, where are we falling short?

1. What comes to the drawing board is limited to the consumer’s imagination. We need out-of-the-box thinkers.
2. What gets out of a company and into the market is limited by the skill sets hired by that company. We need more breadth and depth in innovation.

The good news is we have an abundance of innovative thinkers as well as a plethora of resourceful companies. Our job is to make the two meet. Picture the scenario where “idea” meets “advanced manufacturing capabilities,” and voila! We have crowdsourcing!

A Japanese food company crowdsourced its latest innovative product – Collagen Noodles. Coca-Cola explored the ideas for a vending machine in the form of a virtual world with no boundaries to encourage unconventional thinking. Crowdsourcing can be used to create new products, new packaging, and even new marketing slogans! I believe opening the doors to consumers is the best way to create a product that is by the people and for the people. Google releases about 100 new products weekly which range from innovative platform products like Google+ to convenient features like Priority Inbox. Some of these ideas are from Googlers, while others come from the consumers. I do recognize the cons of crowdsourcing related to a bad product idea and its effect on the brand image, but we can act as gatekeepers and establish guidelines to prevent that. The benefits are far more and futuristic to ignore the open innovation platform.

Traditionally the three c’s of marketing have been consumer, company, and competition for obvious reasons. It has been extended by some to include cost (to be mindful of its efficiency for the company) and communication (to be attentive towards the messaging that reaches the consumer).

Are we ready to make crowdsourcing the latest entrant into the marketing c’s? It reinforces the importance of “consumer,” strengthens the resources of a “company,” keeps you ahead of the “competition,” decreases “costs” and builds awareness through “communication!”

The questions we need to ask ourselves include: Are we truly innovative? Are we entrepreneurial? Can we be the leaders to initiate the change?

If we’re up to the challenge, then let’s start by creating a chain of innovative ideas or raise problems for which we don’t have answers. You never know; someone may very well have a solution that can be the next big business idea. Let me start by asking you to respond with your ideas in the comments below. Let’s try crowdsourcing SymphonyIRI style!

Tags: Crowdsourcing, Marketing, SymphonyIRI
Posted in Crowdsourcing | 3 Comments »

Posts Tagged ‘Marketing’

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