dunnhumby GMA Presentation: The Science Behind Multicultural

Transcription

Relevancy through Data
Driven Insight
The Science of Key Consumer Segments
our Brand Consulting Team brings an entirely unique
approach to the most important marketing decisions
Customer
Science
Media
© dunnhumby 2014 | Confidential
Nationally
Innovation
Customer Science
BzzAgent Platform
2
Marketing
Decisions
Sustainable brand growth
WHY THIS MATTERS
THE SCIENCE BEHIND
SEGMENTS
with consumer-based insights
BRINGING IT TO LIFE
3
WHY THIS MATTERS
4
Time Person
of the Year
the year is 1966
JOHN D. LOUTH
The changing face of marketing
McKinsey Quarterly, 1966
5
“
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.
New in
Technology
Top TV
Show
Topping the
Charts
Time Cover
Feature
Time Person of
the Year: The
Generation 25 &
Under --- Baby
Boomers
the year is NOW
New in
Technology
Top TV
Show
Topping the
Charts
6
JOHN D. LOUTH
The 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.
while the concept is not new, the paradigms continue
to shift
our population is changing and the majority is shifting
1965 Actuals
12%
2015 Projections
2060 Projections
17%
29%
13%
5%
8%
7
US Census Projections
15%
THE END OF
MAINSTREAM
Millennials want more involvement in
meal preparation; FastCasual.com
8
MAY 2014
Millennials and Hispanics
will be the driving force
behind America's eating
behaviors in the next five
years
THE SCIENCE BEHIND SEGMENTS
MILLENNIALS
9
MILLENIALS
the 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
10
US Chamber of Commerce Foundation
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
11
Millennials will
comprise more than
one in three of adult
Americans by 2020
12
Brookings Institute
inside the head of a Millennial Mom
ideals 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.
13
true, connected insight emerges at the intersection
of consumer psychology & behavioral science
FEEL
THINK
DO
14
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
Millennials’ perceptions of their choices compared
to their behavior enhance and challenge
established beliefs
DINNER MIXES AND
SIDES
BELIEF
15
Branded processed food manufacturers will be
“losers” in the new food paradigm
Forbes; “How 'Millennials' Are Changing Food as We Know It”
established beliefs
DINNER MIXES AND
SIDES
BELIEF
REALITY
16
+17%
Branded processed food manufacturers will be
“losers” in the new food paradigm
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”
established beliefs
NATURAL FOODS
BELIEF
17
Millennials believe they consume healthier, more
expensive, more natural/organic, less processed and
better tasting foods than their parents
Hartman Research
established beliefs
NATURAL FOODS
+13%
BELIEF
Millennials believe they consume healthier, more
expensive, more natural/organic, less processed and
better tasting foods than their parents
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
18
Hartman Research
this relationship between perception and behavior
also extends into growth trends in store
GROWTH RATES
19
CANNED GOODS
BELIEF
20
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
CANNED GOODS
BELIEF
REALITY
21
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
Canned Goods are experiencing stronger growth rates
than the rest of shoppers; Millennials offset unit per
trip declines with increased visit frequency
Brand Amplitude; Millennials Increasingly Judge Food by its Cover
FROZEN FOODS
BELIEF
22
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
FROZEN FOODS
23
115 INDEX
BELIEF
Millennials are seeking value and convenience in their
food, but they increasingly opt for fresher and
healthier food
IT’S TRUE
Frozen Foods are declining faster with Millennials than
the broader segment, especially among African
American Millennials
Food Processing; Frozen Food Sales' Decline Paves the Way for Fresh Food Innovation
IMPLICATION
those 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?
24
CONNECTED
SHOPPERS
SEEKING
FRESHNESS
Millennials believe they consume
healthier, more expensive, more
natural/organic, less processed
and better tasting foods and
brands than their parents
The Hartman Group
THE SCIENCE BEHIND SEGMENTS
HISPANICS
25
HISPANIC CONSUMERS
celebrate 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
26
Selig Foundation; Multicultural Economy Report
Hispanic Retail 360; Liz Sanderson VP at Univision
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
27
Limited
marketing has
been directed
toward the
evolved Latino
mindset
28
AdAge “US Hispanic Population is Growing, but this isn’t your Abuela’s Latino Community
THE SCIENCE OF MARKETING
data insights allow you to see consumers as individuals
29
29
HISPANIC CONSUMERS
seeking a multisource, multisensorial & multigenerational
experience
SOCIAL ENGAGEMENT
Non Hispanics
Hispanics
59%
30
MediaPost; Hispanics Lead Stats In Social Media Usage
YouTube; Reaching Hispanics on YouTube
HISPANIC CONSUMERS
experience
PRIMARILY GO ONLINE VIA MOBILE PHONE
60%
31
Pew Research; Internet and American Life Project
HISPANIC CONSUMERS
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
30% higher engagement with digital
coupon and 50% more likely to share
digital coupons via social media
32
Leo Burnett; Latino Shop
growth trends across the store also diverge from
the total population
GROWTH RATES
25% 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
33
engagement varies across acculturation levels,
calling for even more tailored strategies
HISPANIC ACCULTRUATION
AMERICANIZADO
HIGH ACCULTURATION
LATINOAMERICANO
LEAST ACCULTURATED
More acculturated Hispanics are engaged in
center store areas is 1.5x compared to the
least acculturated households
34
knowing similarities is as important as knowing
differences
HISPANIC ACCULTRUATION
AMERICANIZADO
HIGH ACCULTRUATION
LATINOAMERICANO
LEAST ACCULTURATED
Despite differences, engagement
for several categories remains
consistent across the acculturation
spectrum
35
IMPLICATION
cultural 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
ADOPTION
Cultural 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
36
MediaPost; Hispanics Lead Stats In Social Media Usage
BRINGING IT TO LIFE
37
ASIAN AMERICANS
fastest growing minority group in the US
Despite growth and buying power,
limited insights into this key
segment
Objective
Infuse the needs and trends within
this key segment into upfront
innovation evaluation
Application
Example
Insight
38
Short Term: Assess
opportunities across Nestlé's
global product portfolio
Within the beverage space,
Asian shoppers gravitate to
more flavor oriented offerings
“The thing that strikes me
over the last several
years is the growth and
resiliency of the Asian
consumer market.”
JEFF HUMPHRIES
2013 Multicultural Buying Report
Selig Center, 2013
“
Business
Need
CENTER STORE CPG
HISPANIC CONSUMERS
committing to Hispanic Marketing
Hispanic shoppers are seeking a
multifaceted experience in-store
Objective
Assess the impact of varying tactics
in a test environment prior to
national launch
Application
Example
Insight
39
Evaluate the content, medium, and
relevancy across their brand
portfolio
Response was most significant with
family oriented brands that had
moderate Hispanic engagement
“Connecting Hispanics
online is not merely a
matter of language
anymore: It’s about
connecting culturally
and becoming a catalyst in
the community.”
“
Business
Need
AYRIE ARANDA-MORI
Digital Marketing for the US Hispanic & Latin American Markets
alcance Media Group
GREETING CARDS
MILLENNIALS
shifting social dynamics
Business
Need
Millennials social interaction
diverges from historic traditions
Objective
Application
Example
Insight
40
Uncover the relevant ways to
engage the Millennial shopper to
improve category health
While Millennials still engage in
traditional holidays – Mothers and
Father’s Day – the 99 cent price point
is required for everyday engagement
“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"
ALEXA DiBENEDETTO
Making Cards Cool Again
The Wall Street Journal, 2011
“
Assess the impact to greeting card
engagement across different
holidays and price points
41
QUESTIONS
41

dunnhumby GMA Presentation: The Science Behind Multicultural

Transcription

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