Relevancy through Data Driven Insight
Transcript of Relevancy through Data Driven Insight
Relevancy through Data Driven Insight
The Science of Key Consumer Segments
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Customer Science
NationallyMarketing Decisions
Media Innovation
Customer ScienceBzzAgent Platform
Sustainable brand growth
our Brand Consulting Team brings an entirely unique approach to the most important marketing decisions
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with consumer-based insights
WHY THIS MATTERS
THE SCIENCE BEHIND SEGMENTS
BRINGING IT TO LIFE
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WHY THIS MATTERS
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New in Technology
Topping the Charts
“
JOHN D. LOUTHThe changing face of marketing
McKinsey Quarterly, 1966
It is a gross error to develop a marketing program aimed at the “average customer.” Today, such a consumer hardly exists. In short, the company that is not alert to the customers’ needs and the changing complexities of marketplaces is inviting disaster.
Top TV Show
the year is 1966 Time Person of the Year
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“
JOHN D. LOUTHThe changing face of marketing
McKinsey Quarterly, 1966
It is a gross error to develop a marketing program aimed at the “average customer.” Today, such a consumer hardly exists. In short, the company that is not alert to the customers’ needs and the changing complexities of marketplaces is inviting disaster.
Time Person of the Year: The
Generation 25 & Under --- Baby
Boomers
the year is NOW
New in Technology
Topping the Charts
Top TV Show
Time Cover Feature
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17%
13%
5%
while the concept is not new, the paradigms continue to shift
29%
15%8%
2015 Projections 2060 Projections
US Census Projections
our population is changing and the majority is shifting
12%
1965 Actuals
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Millennials want more involvement in meal preparation; FastCasual.com
MAY 2014
Millennials and Hispanics will be the driving force behind America's eating behaviors in the next five years
THE END OF MAINSTREAM
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THE SCIENCE BEHIND SEGMENTS
MILLENNIALS
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MILLENIALSthe world is click away, so is the competition
While estimates vary, Millennials are believed to have $200 billion of direct purchasing power and $500 billion of indirect spending
IN-STORE TRENDS
• Visit the store more frequently but have smaller baskets
• Strongest dollar growth per household year over year
US Chamber of Commerce Foundation
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Millennial shoppers still have strong center store engagement
Traditional, center store categories still have strong engagement with Millennial shoppers:
● Breakfast
● Dinner Mixes and Sides
● Condiments and Sauces
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Millennials will comprise more than one in three of adult Americans by 2020
Brookings Institute
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inside the head of a Millennial Momideals and aspirations meet the reality of budget constraints and varied household needs
THE IDEAL THE REALITY
I value organic offerings for myself and my kids.
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true, connected insight emerges at the intersection of consumer psychology & behavioral science
A FEEL THINK DO framework enables going beyond attitudes and perceptions to
understand how that translates into behavior
This focus on gaining a 360 view of the consumer enables development of tailored
strategies and relevant activation
FEEL
THINK
DO
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Millennials’ perceptions of their choices compared to their behavior enhance and challenge established beliefs
BELIEF
DINNER MIXES AND SIDES
Branded processed food manufacturers will be “losers” in the new food paradigm
Forbes; “How 'Millennials' Are Changing Food as We Know It”
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Millennials’ perceptions of their choices compared to their behavior enhance and challenge established beliefs
BELIEF
DINNER MIXES AND SIDES +17%
Branded processed food manufacturers will be “losers” in the new food paradigm
REALITY Millennials spend 17% more per household than all shoppers with 14% of baskets containing a dinner mixes and sides item
Forbes; “How 'Millennials' Are Changing Food as We Know It”
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Millennials’ perceptions of their choices compared to their behavior enhance and challenge established beliefs
Hartman Research
BELIEF
NATURAL FOODS
Millennials believe they consume healthier, more expensive, more natural/organic, less processed and better tasting foods than their parents
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Millennials’ perceptions of their choices compared to their behavior enhance and challenge established beliefs
BELIEF
NATURAL FOODS +13%
IT’S TRUE…BUT
Millennial shoppers have higher spend within Natural Foods than all shoppers
However, 65% of Millennials have zero to limited engagement with Natural Foods
Millennials believe they consume healthier, more expensive, more natural/organic, less processed and better tasting foods than their parents
Hartman Research
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this relationship between perception and behavior also extends into growth trends in store
GROWTH RATES
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this relationship between perception and behavior also extends into growth trends in store
BELIEF
CANNED GOODS
Time-tested package designs like cans, jars and bottles do not jive with the Millennial lifestyle and this generation’s unique attitudes towards food, health, and the environment
Brand Amplitude; Millennials Increasingly Judge Food by its Cover
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this relationship between perception and behavior also extends into growth trends in store
BELIEF
CANNED GOODS
REALITY Canned Goods are experiencing stronger growth rates than the rest of shoppers; Millennials offset unit per trip declines with increased visit frequency
163 INDEX
Time-tested package designs like cans, jars and bottles do not jive with the Millennial lifestyle and this generation’s unique attitudes towards food, health, and the environment
Brand Amplitude; Millennials Increasingly Judge Food by its Cover
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this relationship between perception and behavior also extends into growth trends in store
BELIEF
FROZEN FOODS
Millennials are seeking value and convenience in their food, but they increasingly opt for fresher and healthier food
Food Processing; Frozen Food Sales' Decline Paves the Way for Fresh Food Innovation
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this relationship between perception and behavior also extends into growth trends in store
BELIEF
FROZEN FOODS
Millennials are seeking value and convenience in their food, but they increasingly opt for fresher and healthier food
Food Processing; Frozen Food Sales' Decline Paves the Way for Fresh Food Innovation
IT’S TRUE Frozen Foods are declining faster with Millennials than the broader segment, especially among African American Millennials
115 INDEX
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IMPLICATIONthose that balance aspiration and reality will win
There is not a center store exodus.
Are you positioning your brands to meet Millennial needs?
Packaging alone is not causing migration.
How are you appealing to the experience seeking, health aware Millennial?
There is a constant struggle between fresh and convenient.
Where does your brand fall?
CONNECTED SHOPPERS SEEKING FRESHNESSMillennials believe they consume healthier, more expensive, more natural/organic, less processed and better tasting foods and brands than their parents
The Hartman Group
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THE SCIENCE BEHIND SEGMENTS
HISPANICS
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HISPANIC CONSUMERScelebrate nuances - with true authenticity
Hispanic consumers in the US were estimated at a $1.2 trillion market in 2013 — a figure higher than the entire economy of Turkey
IN-STORE TRENDS
• While dollars per visit is lower than total population, Hispanics do have stronger per trip growth
• As acculturation increases, so does the size of Hispanics’ baskets
Selig Foundation; Multicultural Economy ReportHispanic Retail 360; Liz Sanderson VP at Univision
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Hispanic shoppers lack strong engagement in traditional, center store categories
With the exception of produce, fresh, perimeter items have a stronger engagement across Hispanic shoppers:
● Dairy
● Meat and Seafood
● Bakery
2828 © dunnhumby 2014 | ConfidentialAdAge “US Hispanic Population is Growing, but this isn’t your Abuela’s Latino Community
Limited marketing has been directed
toward the evolved Latino
mindset
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THE SCIENCE OF MARKETINGdata insights allow you to see consumers as individuals
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HISPANIC CONSUMERSseeking a multisource, multisensorial & multigenerational experience
MediaPost; Hispanics Lead Stats In Social Media UsageYouTube; Reaching Hispanics on YouTube
SOCIAL ENGAGEMENT
Non Hispanics Hispanics
59%
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HISPANIC CONSUMERSseeking a multisource, multisensorial & multigenerational experience
Pew Research; Internet and American Life Project
PRIMARILY GO ONLINE VIA MOBILE PHONE
60%
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HISPANIC CONSUMERSseeking a multisource, multisensorial & multigenerational experience
Twice as likely to share opinions and write reviews
1.7 times more likely to shop via their mobile or tablet
Nearly 3 times more likely to immerse themselves in the store atmosphere
Leo Burnett; Latino Shop
30% higher engagement with digital coupon and 50% more likely to share digital coupons via social media
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growth trends across the store also diverge from the total population
GROWTH RATES25% GREATER THAN TOTAL POPULATION
SALES DECLINES
Similar to Millennials, Hispanic shoppers are showing more marked decline in Frozen
engagement than the total population at a 150 index
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engagement varies across acculturation levels, calling for even more tailored strategies
HISPANIC ACCULTRUATION
AMERICANIZADOHIGH ACCULTURATION
LATINOAMERICANOLEAST ACCULTURATED
More acculturated Hispanics are engaged in center store areas is 1.5x compared to the least acculturated households
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knowing similarities is as important as knowing differences
HISPANIC ACCULTRUATION
AMERICANIZADOHIGH ACCULTRUATION
LATINOAMERICANOLEAST ACCULTURATED
Despite differences, engagement for several categories remains consistent across the acculturation spectrum
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IMPLICATIONcultural intelligence: relevancy beyond language
Language is just one component behind Hispanic relevancy.
How are your brand messages targeted?
Hispanics consume and engage with media differently .
How do your plans account for that?
Engagement in store varies widely within this segment.
Do you have an Hispanic plan?
Do you differentiate your strategies within that plan?
LEADING SOCIAL MEDIA, MOBILE, & E-COMMERCE ADOPTIONCultural intelligence must replace the misguided notion that simply translating English copy into someone’s native language is all you need to do to reach them.
Glenn Llopis; Forbes
MediaPost; Hispanics Lead Stats In Social Media Usage
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BRINGING IT TO LIFE
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ASIAN AMERICANSfastest growing minority group in the US
Business Need“
JEFF HUMPHRIES2013 Multicultural Buying Report
Selig Center, 2013
“The thing that strikes me over the last several years is the growth and resiliency of the Asian consumer market.”
Despite growth and buying power, limited insights into this key segment
Infuse the needs and trends within this key segment into upfront innovation evaluation
Objective
Example Insight
ApplicationShort Term: Assess opportunities across Nestlé's global product portfolio
Within the beverage space, Asian shoppers gravitate to more flavor oriented offerings
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HISPANIC CONSUMERScommitting to Hispanic Marketing
Business Need“
AYRIE ARANDA-MORIDigital Marketing for the US Hispanic & Latin American Markets
alcance Media Group
“Connecting Hispanics online is not merely a matter of language anymore: It’s about connecting culturallyand becoming a catalyst in the community.”
Hispanic shoppers are seeking a multifaceted experience in-store
Assess the impact of varying tactics in a test environment prior to national launch
Objective
Example Insight
Application
Response was most significant with family oriented brands that had moderate Hispanic engagement
Evaluate the content, medium, and relevancy across their brand portfolio
CENTER STORE CPG
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MILLENNIALSshifting social dynamics
Business Need
Objective
Example Insight
Application “
ALEXA DiBENEDETTOMaking Cards Cool Again
The Wall Street Journal, 2011
“My friends don't expect me to get them a paper card, but they'd be offended if I didn't wish them 'Happy Birthday' on Facebook"
GREETING CARDS
Millennials social interaction diverges from historic traditions
Assess the impact to greeting card engagement across different holidays and price points
While Millennials still engage in traditional holidays – Mothers and Father’s Day – the 99 cent price point is required for everyday engagement
Uncover the relevant ways to engage the Millennial shopper to improve category health
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QUESTIONS