Professional Documents
Culture Documents
Spring 2005
Winning Retail
Strategies Start
with High Value
Consumers
ACNielsen U.S.
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ACNielsen Canada
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Understanding
Consumers,
Completely.
In every issue…
Volume 7, No. 1
Business Tools
Featuring:
ACNielsen Retail ACView
CBP—Category Business Planner
Spectra Distribution Builder
Homescan Shopper Trends
ACNielsen Target Track 2.0
TDLinx Location Information Management
Homescan New Product Alert
Homescan Shopper Optimizer
Spectra Advantage Canada
LiquorTrack
Spectra Category ShareCast
Spectra Targeted New Customer List
Publisher
ACNielsen
Editor
Mark Chesney
Contributing Writers
Todd Hale, Senior Vice President
Consumer Insights, ACNielsen
Chris Hammer
Senior Product Manager
U.S. Marketing
John Skolnicki
Associate Client Director
Client Service
Sangeeta Gupta
Subhransu Rout
Seemeen Khan
ACNielsen ORG-MARG
6
Winning Retail Strategies Start with High Value Consumers
High value consumers no longer declare allegiance to a single channel for life. The
battle for these sought-after shoppers is difficult. Like any good battle plan, success
relies on the quality of field intelligence and the ability to deploy assets for maximum
impact. The Food Marketing Institute (FMI), along with ACNielsen, conducted a
10 landmark research study of U.S. households and how they shop for food.
10
Ethnic Marketing by the Numbers:
Integrating Diverse Data Can Reveal New Opportunities
The ethnic makeup of the U.S. grows by about 2.5 million people each year. Today,
Hispanics and African-Americans comprise more than a quarter of the total U.S.
population. With this demographic shift comes greater economic clout for minori-
ties. Manufacturers of consumer packaged goods must increasingly appeal to
minority groups and reflect their cultural preferences to succeed.
14
14 3
Jack-in-the-Tiffin-Box: Unconventional Paths to
18
18
Winning the Case for Better Distribution:
Optimizing Distribution for Mid- to Small-Sized Manufacturers
Everyone knows the best packaging, best quality of food, and best advertising
campaign gets you nowhere without distribution. With competition fierce on retail
shelves, small manufacturers need insights that can help prove why they should be
there. By gaining distribution in key retailers, the payoff can be huge.
22 22
Canada’s Aging Boomers: A Golden Opportunity
They aren’t babies anymore. The brash, postwar generation that once lived by the
anthem “I hope I die before I get old” is getting old, and is still the most influential
consumer group in Canada. These baby boomers will continue to set purchasing
c o n t e n t s
trends for at least the next 20 years, which represents a golden opportunity.
Tim Callahan
President
ACNielsen North America
At ACNielsen, we are also continuing our cultural change to meet the needs
of you, our clients. Our recently completed Consumer 360 conference repre-
sented a key milestone in our journey, as we shared the ACNielsen and VNU
At ACNielsen, vision for the future of our industry-leading services. Just one year ago, we
unveiled our Homescan MegaPanel, the industry’s largest consumer panel.
4
we are also Today, it has expanded to over 90,000 households and is ahead of schedule
Spring 2005|
The conference also served as a reminder to me just how much the industry
needs of you, has changed and how we all have to continually work to stay ahead. We will
continue to be consumer-centric, comprehensive, technologically open and
our clients. flexible. Our strategy will be sharply focused on the industry’s most challeng-
ing marketing and sales issues, including:
media consumption;
At the conference, Steve Schmidt, ACNielsen’s president and CEO, put it best:
“Our job, pure and simple, is to help the industry grow.” This is easily said,
but in today’s complex marketplace—driven by diverse, ever-changing con-
sumers—it takes focus and commitment. Our strategy is far reaching, but the
associates at ACNielsen are confident and energized.
Our goal is to match your drive for innovation in marketing with an equally
intense drive for innovation in information services. We will continue to
help you identify your best opportunities, focus your spending and reach the
right consumers, at the right time, in the right place, with the right messages
and incentives.
To do that, we will:
e x e c u t i v e
Listen—to your needs, to your issues, to the things that are keeping
you up at night;
Learn—your business, your challenges, and how we can help solve them;
Leverage—the global power of One VNU to provide you the insights and
expertise unmatched in the industry, and;
Lead—the industry, by taking on the issues and initiatives that will continue
to supporting your business.
i n s i g h t
Listen, Learn, Leverage, Lead. This is our focus and commitment to you
and the industry.
Winning Retail
Strategies Start
with High Value
Consumers
Todd Hale, Senior Vice President
Consumer Insights, ACNielsen
6
Spring 2005|
Consumer Insight |
s t o r y
c o v e r
A
lthough cinematic in scope and intensity, there is Key Learnings
nothing entertaining about the battle between gro- Seven areas of learning emerged from the research. Some
cery and other formats for high value consumers findings were surprising. Others reinforced historical
who no longer declare allegiance to a single channel for trends. Still others were encouraging signposts for predict-
life. Like any good battle plan, success relies on the quality ing consumer behavior. All provide a fact-based foundation
of field intelligence and the ability to deploy assets for that retailers, wholesalers and manufacturers can use to
maximum impact. develop consumer-centric strategies to woo and win high
value shoppers.
Setting the Benchmark
One of the most powerful allies supporting the 46,000 U.S. 1. Grocery Trip Erosion Continues. Everybody wants a piece
retail food stores in their crusade for food basket domi- of the top-spend consumer. Grocery’s longstanding trip
nance is the Food Marketing Institute (FMI). In keeping frequency advantage was based on three factors: proximity,
with its charter to conduct programs in research, education, proliferation and product set. Now that competitive
industry relations and public affairs, the FMI selected formats have mounted aggressive expansion campaigns and
ACNielsen to “conduct a landmark research study of U.S. awakened to the pulling power of fast-moving consumer
households and how they shop for food. This study is packaged goods, those traditional Grocery advantages
expected to create a basic benchmarking tool regarding con- have diminished.
sumer shopping behavior and attitudes.”
Look for an increasing number of trip diversions to non- 7
The result of that initiative is the FMI/ACNielsen study Grocery channels as consumers combine multiple trips into a
Hardware/Home
Improvement
8.1 8.4 8.8 8.9 Hi/Lo Grocery retailers will find their top-spend shoppers
Liquor 5.6 7.3 6.5 6.6 highly responsive to ads and frequent shopper programs—
Pet 4.1 5.4 4.7 6.2
Bookstores 3.9 5.0 4.0 4.4 more so than other channels.
Stationery 3.5 4.5 3.7 3.7
Electronics 3.0 3.5 3.4 3.5
Office Supply 2.9 3.4 3.0 3.5
It will come as no surprise to EDLP formats that their bud-
Toy Stores 2.5 3.0 2.6 2.8 get-minded customer base uses price as the dominant selec-
Source: ACNielsen Homescan, Total U.S.—52 weeks ending 6/26/04
tion factor. Specialty Grocery top-spend shoppers weighed
in with high scores on questions about healthy foods,
Retailers might borrow a page from the manufacturer home cooking and scratch meals. Supercenter top-spend
playbook (think P&G and Gillette) and consider mergers shoppers opt for one-stop shopping at large properties.
and acquisitions as an alternative strategy for fending off
6. Food First—Perform on the Perimeter. Talk about a
increasingly ravenous competitors. Operating advantages
s t o r y
ing is here to stay, with a vengeance. The trick is finding Behavioral (purchase) information was garnered from the 9
the balance between spending on differentiating programs
John Skolnicki
Associate Client Director
Client Service
10
Spring 2005|
Consumer Insight |
T
he ethnic makeup of the U.S. has begun changing For manufacturers of consumer packaged goods (CPG),
markedly. The total population grows by about these demographic trends add up to a timely marketing
2.5 million people each year, led recently by a opportunity. Companies must increasingly appeal to
consistent, steady rise in the number of ethnic minorities. minority groups and reflect their cultural preferences to
Today, Hispanics and African-Americans comprise more succeed. And the time to build such brand loyalty is now,
than a quarter of the total U.S. population, and their as this growing force of young consumers begins maturing
numbers continue to grow. If current trends continue, by and expanding its buying power.
2050, close to half of the population in the U.S. will be
But how? The discipline of ethnic marketing, while estab-
non-white, and nearly a quarter of it will be Hispanic.
lished in the U.S., is still relatively new. As such, pursuing it
f e a t u r e
With this demographic shift comes greater economic clout presents a number of challenges for CPG manufacturers.
for minorities. In the U.S., the combined buying power of For example:
Hispanics, African-Americans and Asians now exceeds one
• Data sources on ethnic buying habits tend to be frag-
trillion dollars—an all-time high—and is expected to keep
mented and segregated, making it harder to compose a
climbing. Furthermore, many of these minority consumers
well-rounded picture of the minority consumer and a
are young. About one-third of all Hispanics and African-
strategic plan to reach him/her.
Americans in the U.S. are currently age 18 or under.
• The information infrastructure for tracking ethnic buy- • Picking the right category segments, or drilling down
ing habits is not as robust as the tools are for studying to the appropriate category/brand level to identify
general market patterns. To manufacturers, that means opportunities among items that are important to
not always being able to track the success of a market- Hispanic consumers.
ing plan focused on minorities and not knowing if • Picking the right marketing mix, or putting together the
they’re implementing the right type of ethnic marketing. right product with the right promotion to create a win-
• We lack an abundance of business divisions dedicated ning ethnic brand.
to multicultural business, which can make it too difficult • Picking the right execution strategy for the right place, or
to gain support and funding for addressing ethnic knowing how to reach the consumer you seek in the
marketing needs. store where he or she shops.
Integrated Data: A Source of New Insight Doing Laundry in L.A.
A case in point comes from a VNU client case study. Nearly half (48%) of the Hispanic population in the U.S.
Seeking to expand incremental sales of laundry care prod- today resides in just six cities—Los Angeles, New York,
ucts to Hispanic consumers, the client wanted help in Miami, Houston, Chicago and San Antonio. In each of
understanding where and how best to do it. For advice, it these metropolitan areas, Hispanics comprise a significant
turned to VNU, parent company of ACNielsen. As an percentage of the total population base.
industry leader in market research, VNU supports about
9,000 clients in the CPG sector as they address complex In analyzing Hispanic consumption of laundry care prod- 11
the relationship of the market to the retailer creates lets ACNielsen compare Hispanic buying patterns against
opportunity. total market performance.
The data showed that Hispanic consumers prefer heavily Measuring the Marketing Mix
scented laundry care products in powder form. To answer that, VNU needed data in one more area:
Superimposed on its data for retailers, VNU saw these Hispanic marketing execution. Knowing which UPCs
preferences held true by store as well as by total market. offered the greatest opportunity for Hispanic sales,
which stores to target, the demographics and psychographics
The second area of analysis was consumer targeting. To
of the customers frequenting those stores and the best pro-
understand the Hispanic consumer in L.A., VNU used data
motional vehicles for reaching those customers could help
to map out a continuum of buying behavior across the
the client decide where to focus their efforts.
total market that it calls “acculturation segmentation.” At
one end of the continuum are Hispanic shoppers who Further analysis of the databases revealed that Brand A was
behave most like the market overall. This group is consid- overdeveloped in heavily scented UPCs. It had more than its
ered “acculturated.” At the other end are those whose fair share on Retailer A’s store shelves, but was capturing
preferences show a strong cultural influence. They are the fewer sales than could be expected from the segment. It
least acculturated. In the middle is the bicultural Hispanic made sense to focus on just the SKUs with a successful track
segment. Accounting for 53% of all Hispanic adults in the record to close the gap. For the retailer, that share gap repre-
U.S., this group demonstrates a blend of buying patterns. sented $2.2 million in incremental sales that were possible
The segmentation acts as an integration platform for link- [See chart 2].
ing databases on product consumption from Simmons,
12 Scarborough, TDLinx and Spectra Store Trade Area.
Chart 2: Brand A Share Gap Represents $2.2MM
Spring 2005|
14
Spring 2005|
Consumer Insight |
T
o grow, many companies today focus on new approach to gather credible, useful data. Although our
product development. It’s not an easy route; even study focused on schoolchildren in Delhi, India, we believe
under the best of circumstances, product innova- the methods used and insights obtained cross cultural and
tion is a challenging activity that calls for creativity coupled geographic borders.
with a sound understanding of the consumer’s socio-
Background and Objective
cultural needs.
Mothers in India—like mothers everywhere—try each day
The challenge grows when the targeted consumer is a to feed their children the nutritious foods their growing
child. While often amazingly perceptive and articulate, chil- bodies need.
dren can be limited in their ability to provide the kind of
One way Indian mothers do this is by packing traditional
socio-cultural data that market researchers seek. They are,
Indian fare that they consider healthy and nourishing into
for instance, disinclined to articulate their “need gaps” in
the “tiffin boxes,” or lunch tins, that children carry to
focus groups.
f e a t u r e
The Approach
Our challenge in studying this opportunity was multi-
faceted. We had multiple audiences to understand; that is,
children and their adults. We had multiple agendas to
define—a child’s interest in food that’s fun and tasty as
well as a mother’s desire for that food to be wholesome
and nourishing. Finally, to study children effectively, we
deemed it valuable to observe them “in the moment,”
in their own time and place.
• Collaborative “insider-outsider” effort. We sought and One world in which the child operates—and the context for
Consumer Insight |
enjoyed a high degree of collaboration from both this study in consumer behavior—is school. Indian schools
children and teachers. are relatively demanding. An eight-year-old’s day usually
starts before 6 a.m., when he arises to catch the bus. Most
• Collecting data in multiple modes. We gathered
children attend classes for several hours in the morning
information in many ways, including artifacts,
before enjoying a short recess of 25–30 minutes. A couple
photographs, spontaneous groups, etc.
more hours of classes follow. Then children ride the bus
• Systematic data transformation. To ensure the data home to eat lunch. It is during the brief recess and on the
were examined from many perspectives, we used bus ride home that children engage with the contents of
indexing, coding, decontextualizing, memoing, their tiffin boxes. These moments of recess are times of
recontextualizing and more. great release for the 8–12-year-old child—time that he
Many of our research disciplines were based on research would rather spend in energetic play. In this context, the
by Gouldner, Barker and Kondo. tiffin is something to be done with as soon as possible.
The Insights The other key player in this study is the mother. She has
Children between ages eight and 12 are busy establishing her own motivations and context as she packs the tiffin
a sense of self-worth while learning about their world. box, the result of her upbringing and culture. Many moth-
They shift constantly between feeling competent and ers have firm beliefs about and practices in tiffin packing—
f e a t u r e
feeling inferior, often based on responses from teachers among these, the belief that tiffin fare should mimic the
and peers. Deeply curious, children this age love fantasy, typical Indian meal, with its dal, roti, parantha, yogurt and
surprises, mysteries and freedom from restrictions. sabji. So she packs such foods, even as she knows that her
They possess a keen sense of humor. child probably wants something different and that the
items she’s packing may come home untouched.
b u s i n e s s
view, analyze and graph information precisely to your standards. CBP accesses ACNielsen’s patented RDH™, retailer-endorsed defi-
nition of the category hierarchy, to give you rich, relevant and
• View the relationships among multiple fields with robust information. Add to that integrated charting and graph-
simultaneous filters applied. ing; flexible, personalized report views; an advanced search,
• Interact with key performance measures to analyze, slice delivered in a focused analytical framework, and you have all
and dice data in either tabular or graphical form with ease. the tools to score a category management bulls-eye.
• Save precious time with more productive analyses by creat- See why CBP hits the target for more efficient category
ing charts and graphs on the fly. management. Talk to your ACNielsen representative or call
• Add value to your analyses through creating new metrics 800-988-4ACN and find out how CBP will help you hit
within the data cube. your mark.
t o o l s
18
Spring 2005|
E
veryone knows that you could have the best packag- But up against tight budgets and mounting competition,
ing, best quality of food and best advertising cam- what can small- to mid-sized manufacturers do to optimize
paign, but without distribution you are nowhere. No their distribution at their key retailer? The answer lies in
one knows this better than Ben & Jerry’s, one of the best consumer information.
known consumer brands in the U.S. First opening in a
Knowing Your Retailer’s Shopper
vacant gas station in 1978, Ben & Jerry’s soon began
Understanding whom you are working for is important.
expanding distribution throughout the U.S. and now sells
For example, when you interview a candidate for a job at
hundreds of millions of dollars worth of ice cream that
your company, don’t you expect them to have thoroughly
sport names like Chunky Monkey and Cherry Garcia.
researched what your company does, what you stand for
With competition fierce among manufacturers looking to and who you are? It is no different when trying to enter
f e a t u r e
secure their place on the shelves of Wal-Mart, Albertson’s into a relationship with your key retailer. Thousands of
and the like, small manufacturers are looking for con- manufacturers are vying for distribution at the top retail-
sumer insights that can help them prove to their key retail- ers. A keen understanding of your retailer’s shopper is
ers why they, and not their competitors, should grace their what will help you win the battle.
shelves. And if they can gain distribution in key retailers,
While many retailers have a definite profile for many of
the payoff can be huge, with sales often doubling or
their stores, each store is a unique composition of house-
tripling in one year.
holds who vary in terms of affluence, household size,
Business Tools for
household composition, etc. Understanding the unique
Retail Tracking
nuances of each store’s shoppers is important. Therefore,
while panel data can provide an excellent overview of the Spectra’s OnDemand Small Business Solutions
national or even regional shopper, drilling down to retail-
Gain, Expand and Protect Your Distribution at
er-specific consumer insights on products selling within
retail stores can only be done by integrating retailer
Key Retail Stores
POS information with Spectra’s proprietary consumer With thousands of manufacturers vying for distribution at
insights techniques. key retailers, competition is fierce for coveted shelf space.
Successfully demonstrating the benefit of your product to the
Matching your consumer information to your retail buyer is the key to gaining, expanding and protecting your
buyer’s objectives distribution in key retail stores.
When you walk through the halls of your retailer’s head- Spectra’s Distribution Builder solutions are a set of retailer-
quarters to meet with your buyer, bringing consumer accepted consumer insights and analyses designed to prove the
insights that match the buyer’s objective of optimizing the value of your products to your retailer’s business. Specifically,
Spectra integrates retailer POS information, such as Wal-Mart's
shelf and maximizing revenue opportunities is crucial.
Retail Link POS information, with our proprietary consumer
Successfully demonstrating the benefit of your product to insight techniques, to bring the retailer’s unique shopper
the buyer is the key to gaining, expanding and protecting profiles to life. This reveals store-specific shopper insights
your distribution in key retail stores. and opportunities.
tomer’s needs by having the right products in the right • Maximize your product’s sales in an account by focusing
distribution and merchandising on the “right” stores.
stores and it meets your objective of maximizing your
product’s sales in the retailer by focusing distribution and • Improve the effectiveness of your sales call by leveraging
consumer-centric insights against your retailer’s objectives.
merchandising on the “right” stores.
• Deliver extraordinary ROI by promoting distribution in
the right retail stores.
Brown indicates: High Consumer, 115+ • Improve your retailer’s sales by optimizing your mer-
Blue indicates: 3 Largest ACV Segments
Source: Spectra and ACNielsen Homescan chandising and product placement strategies.
which have a 120 or higher demand index sell $12 of By swapping out the 123 Save-a-Ton stores with a low con-
product per million dollars ACV (e.g., store sales) com- sumer fit for 123 stores with a strong consumer fit, total
pared to only $6 per million ACV for stores indexing Jeff’s Coffee sales in Save-a-Ton would be expected to
80 or below [See chart 2]. increase by 18% [See chart 3]. The new stores are projected
to do three times the sales of the stores they are replacing.
Step Two: Unveiling Their
f e a t u r e
22
Spring 2005|
Consumer Insight |
T
he baby boomers aren’t babies anymore. The This report focuses on identifying emerging trends as
brash, postwar generation that once lived by the they relate to two age segments: preboomers and older
anthem “I hope I die before I get old” is getting boomers.
old indeed—at least by its standards.
Preboomers are not technically boomers at all; they were
But it’s still the most influential consumer group in born just before the baby boom. Preboomers represent
Canada today, representing about one-third of the coun- the 55- to 64-year-old age group. There are about three
try’s 31.6 million people. And as the nation’s largest million of them in Canada today.
group of consumers, baby boomers will continue to set
Older boomers are the first members of the boomer
purchasing trends for at least the next 20 years.
generation, born between 1949 and 1959. There are
f e a t u r e
For marketers in the consumer packaged goods industry, about 4.6 million Canadians in this group today.
this represents a golden opportunity. Determining the
Preboomers are included here because their purchasing
evolving needs of this generation, especially the older
behavior is a strong indicator of what following genera-
segment, will help shape a go-to-market strategy that
tions will buy as they age. Over the next five to 10 years,
accurately anticipates what senior boomers want.
older boomers will reach this age, followed by the gener-
ation’s younger segment (born between 1959 and 1966).
By examining the purchasing behavior of Canadian The emphasis on nutrition will lead to consumer demand
households through ACNielsen’s Homescan Panel, we for minimally processed foods and for servings that are
can see product purchases that are overdeveloped and nutritionally complete. Aging, and the physiological
underdeveloped within the preboomer segment, com- experiences of metabolic illnesses such as diabetes and
pared with older boomers. This provides a signal as to heart disease, provide an opportunity for companies to
which categories can benefit from a boost in new or develop foods geared to the population at risk.
enhanced products [See chart 1].
The health benefits of seafood derived from the antioxi-
Chart 1: Boomer Profiles dant properties of fish oil, particularly omega-3 fatty
Pre Boomer Older Boomer acids, are now widely known. Value brands and new fla-
vors (lemon, curry) added to fish and seafood are also
3.2 Million Pre Boomers in 2003 4.6 Millions Older Boomers in 2003
10% of Total Population 15% of Total Population propelling the trend. As a result, according to ACNielsen
49% are Male 50% are Male Canada’s MarketTrack, total canned and bottled mack-
51% are Female 50% are Female erel sales are up 9%, and total herring sales are up 4%.
57% High School or Less 48% High School or Less
Both types of fish are excellent for the prevention of
25% Some Post Secondary 30% Some Post Secondary
18% University 22% University heart attacks and defense against memory loss.
64% Internet Penetration 76% Internet Penetration
Peanuts and other nuts have also been associated with a
Source: Statistics Canada, ACNielsen Internet Planner 2004 lower risk of heart disease. Soy nuts are increasingly
23
making their way into the mainstream. Nuts and seeds
Semi-Moist Fruit
Nutritional supplement sales were up 12% in 2004. Age-
Currants 181 101
Dates 157 109 related ailments such as deterioration of vision, weight
Apricots 146 100 gain, diabetes, and joint and foot problems will result in
Prunes 127 100
preboomers consuming larger quantities of multivitamins
Source: ACNielsen Homescan 2003
and antioxidant supplements.
Consumer Insight |
trend from Japan, introduced at this year’s SIAL d’Or condition as possible.
Awards in Paris, is a soft drink containing green tea. Continued on page 26.
Based on ACNielsen MarketTrack information, sales of
green and black tea are up 28% and 6%, respectively.
Business Tools for
Retail Tracking
Measure Ethnic Marketing Return On Get Out on a LIM
Investment—ACNielsen’s Target Track 2.0 TDLinx LIM Location Information Management
Available in the U.S.
Did you know?
The explosive growth of the ethnic population, specifically
• 230 retail stores open or close every day.
Hispanics and African-Americans, has initiated one of the
biggest opportunities for expansion within the consumer pack- • 205 stores change their owner, supplier, or marketing
aged goods industry. With increased purchasing power and group reporting relationship every day.
evolving product needs and preferences, ethnic consumer groups TDLinx Does!
are an essential target market for manufacturers. According to
Good, clean, accurate location infor-
the U.S. Census Bureau:
mation management (LIM) data
• Ethnic consumers will make up an estimated 49% of the total provides you with long-term com-
U.S. population by 2050. petitive advantage. Build a com-
• Hispanics alone represent 13% of the current U.S. population prehensive data management
and are expected to double in the next 50 years. strategy that enables effective uti-
With the ethnic population continuing to grow in size and lization, delivery, and measure-
importance, marketers can no longer go without a way to mea- ment of location information to
sure ethnic consumer performance in the marketplace. Current improve business performance now. 25
Target Track 2.0 allows you to: • Integrate disparate data sources.
• Communicate with outside promotion, marketing and mer-
• Evaluate ethnic promotion/advertisement effectiveness.
chandising suppliers in the TDLinx Network.
b u s i n e s s
• Understand which of your brand’s flavors, sizes, price
points appeal most to the ethnic consumer. For more information on how TDLinx LIM can return
tremendous value to your organization, contact Scott Taylor at
• Quantify ethnic marketing ROI and answer questions such
203-563-3050 or visit www.TDLinx.com.
as: Did my investment in ethnic marketing pay off? Would
allocated funds have been better spent against a general
market campaign?
• Easily integrate information into your existing
data environment.
For additional information on the benefits of Target Track 2.0,
please contact your ACNielsen Client Service or Retail Services
representative or visit our web site at http://acnielsen.com
t o o l s
Get right to the subject. With Homescan Consumer & Shopping Insights, you won’t waste time wading
through unnecessary data. Interested in a regional comparison report of your brands? Want to know which
retailers drive category spending? Need to target the best demographic match? Simply choose the busi-
ness application to fit your needs and view the results immediately.
To learn more about Consumer & Shopping Insights, please contact your ACNielsen Client Service or
Retail Services representative or visit our web site at http://acnielsen.com.
Vegging Out The findings of this report suggest that preboomers and
Traditional vegetarianism is beginning to spill over into older boomers should be a target for advertisers and
the mainstream as boomers try to find healthier foods marketers. Additionally, preboomers can signal trends
and healthier ways of eating. They are not necessarily and lead to new product ideas for following generations.
Consumer Insight |
18%
19%
14% 13% 7%
6% 6%
t o o l s
At the same time, retailers should consider: • Create a common language between manufacturers and retail-
ers, as well as sales and marketing teams
• Evaluating space allocation. What percentage of the 31
• Enhance strategy development by executing consumer-
f u l ly i n t e g r a t e d c o n s u m e r - c e n t r i c m a r k e t i n g s o l u t i o n s .
www.spectramarketing.com
Jack-in-the-Tiffin-Box continued from page 16.
Conclusion
Although the context for
Then there is the box itself. Interestingly, we found that the
our study was Delhi, India,
tiffin box, unlike the child’s pencil box, was not an object
we believe the developmen-
toward which he feels much ownership or affinity. From
tal and consumer issues dis-
the child’s perspective, the tiffin box is the mother’s
cussed are universal.
arena—something she stuffs with her choices. These items
are things the child usually finds boring, and he tends to The inherent conflict
regard eating from the box as an activity governed by adult between mother and child
rules. For the child, the tiffin box fulfills a functional—but around tiffin food presents
not emotional—need. a valuable opportunity
everywhere. Ironically, we
It is where the child’s desires vary from the mother’s atti-
found that mothers in our study tended to trivialize the
tudes that we found gaps. By talking with children, we
tiffin meal as a way of rationalizing their frustration with
learned what they actually want in their tiffin boxes—
fixing food that goes to waste. In fact, the tiffin occasion
smaller portions, foods that are crisp and crunchy, that are
is a time when the child can consume a healthy and nour-
spicy and tactile; foods that are mobile and can move with
ishing meal because of group dynamics. At recess with
them as they play. Chart 1 summarizes some of the differ-
friends who are also eating, the child can consume a
ences between the child’s and the mother’s perspectives.
significant amount of food—but only if the available 33
mentality provided by each item. It also measures buying Number of ACV Number of ACV
rate, purchase frequency, loyalty and repeat purchasing Demand Index Stores ($) Stores ($)
associated with those items. In addition, Shopper Optimizer 120 or higher 162 $7,117,500,000 172 $7,606,300,000
Between 81 and 119 305 $13,841,100,000 654 $29,354,000,000
can help manufacturers manage distribution by determining
80 or lower 123 $4,096,300,000 309 $10,553,400,000
the incremental penetration from additional
Total 590 $25,054,900,000 1135 $47,513,700,000
34 retailers and/or channels.
Source: ?
Spring 2005|
fying the volume incrementality and cannibalization effects Coffee sales in Save-a-Ton stores by 41%.
on both.
Case Closed: Gaining, Expanding and
Key Questions Addressed:
Protecting Distribution
• With which assortment can a retailer/manufacturer reach As the case study highlights, gaining, expanding and
the highest number of buying households? protecting distribution can be achieved by putting the
• Which brand/varieties have a high number of exclusive best consumer information together to help prove a fit
buying households?
between your brand’s consumers and your retailer’s
• Which brands/varieties attract new buyers to the retailer? shoppers. At the end of the day, those manufacturers, no
• How do buying rates, purchase frequency, loyalty and matter how large or small, that have a keen awareness of
repeat purchasing vary across brands/varieties?
the fit between their brand’s consumers and their retailer’s
• What incremental impact does each distribution shopper will build a much stronger case for optimizing
channel offer?
distribution in key retail stores.
To learn more about Shopper Optimizer, please contact your
c o n t i n u e d
ACNielsen Client Service or Retail Services representative or For information on Spectra’s OnDemand Small Business
visit our web site at http://acnielsen.com. Solutions and to receive a free sample report for our
product, Distribution Builder, visit www.spectramarket-
ing.com/ondemand or call Steve Kapinus at
866.524.2568.
*The sales figure for the 172 new stores is estimated by multiplying the average sales
per million ACV (for stores indexing 120+) by the ACV for the new stores:
$12.16 × $7,606,300,000 / 1,000,000 = $92,492.
http://acnielsen.com/ci or call 1.800.988.4ACN
Business Tools for
Ethnic Marketing By the Numbers continued from page 13.
Retail Tracking
Conclusion Measure the Entire Liquor Store
Integrating available data from multiple sources enabled Universe within Each Market
VNU to tackle the four steps to ethnic marketing success
Seven new and improved Liquor Markets
and provide a more complete picture of the Hispanic
LiquorTrack® is the only service in the industry providing critical
consumer for our client—that is:
market-level information for the large and growing Liquor
• Picking the right geography: VNU was able to identify channel. Enhanced markets now include: Atlanta, Boston,
Denver, New Jersey, Minneapolis, New York City and Miami.
significant Hispanic markets and the retailers in them
valued by Hispanic consumers. The new and improved LiquorTrack:
• Picking the right category segments: Its data revealed • Measures the entire Liquor store universe within each
market as defined by TDLinx.
the key SKUs and brand dollar opportunities.
• Increases sample sizes by 50% overall, with representation
• Picking the right marketing mix: VNU determined of critical independents as well as key chains.
which products to promote and how to best attract • Utilizes a superior projection design using U.S. Census
Hispanic consumers in that market. data Liquor store ACVs.
• Picking the right execution strategy for the right place: Look for upcoming Liquor channel market relaunches: Chicago,
Based on the data, VNU’s advice was to target the Connecticut, Maryland, Central Florida (Tampa/Orlando), 35
with Spanish-language ads. To learn more about LiquorTrack, please contact your
ACNielsen Client Service or Retail Services representative or visit
our web site at http://acnielsen.com.
▼
stores change their owner, supplier, or marketing Database Marketing
group reporting relationship every day? then Direct Mail
ERP
FSI
TDLinx Does! Good clean, get integration In-Store Media
Manage Party Data
accurate location information management Merchandising
(LIM) data provides you with a long-term
ready with the Pay-For-Performance
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competitive advantage. Build a comprehensive TDLinx Network Sales & Marketing Agencies
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data management strategy that enables Sampling/Demos
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effective utilization, delivery, and Syndicated Research
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measurement of location information VNU Advisory Services
Integrate
to improve business performance now.
Communicate With TDLinx LIM you can:
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Why LIM? The increasing demand Evaluate
hierarchies and commerce codes
for accurate, complete location information • Improve data integrity/reduce business
delivered by a systematic and repeatable process. exceptions
• Use industry-endorsed standardized
▼
Certified Members of the TDLinx Network channel definitions to define your markets
Accenture Gelco Trade Management Off The Shelf • Aggregate sales and activity
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in collaborative business relationships
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CAS Americas Leverage Point Media RQA
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CROSSMARK Mosaic Info Force Synectics Group
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US Concepts
Get Linked!
Experian News America Marketing Valassis Communications Call Scott Taylor 203 563-3050
FLOORgraphics FSI Vendor Managed Technologies www.TDLinx.com
FrontLine Marketing In-Store VNU Centers of Excellence
b u s i n e s s
For more information, please call John Chesak at 312-583-5139
or email him at john_chesak@spectramarketing.com or visit
www.spectramarketing.com/products/r_loyaltyAnalytics.jsp.
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