 |
 |
|
|
The "new & improved" version
Just like any SKU sitting on any supermarket shelf in any city in
America, the job of the brand manager is to constantly be listening
and learning from the consumer - and in my case, the reader.
A couple of issues ago we surveyed you - our consumer - to see
how F3 did (or did not) meet your needs. It was gratifying to read
your responses and comments, some came from long time devotees of
The Lempert Report which first launched in June 1985 and some
from brand folks and retailers who have just joined the industry.
So what did you tell us?
WE ARE READ!
Over 78 percent of our readers reported that they rely on F3 each
and every month to deliver quality and unique insights and
information. Our subscriber base is now over 16,000! And for both
these substantial accomplishments, I thank you.
WHAT YOU WANT TO KNOW
Consumer trends, retail trends and shopper behaviors topped the
list of "must haves", followed by category trends, demographics and
channel updates. We will continue to focus on these areas, and based
on your input will reduce the number of reports on holiday trends and
food safety issues.
BETTER FORMAT
As email technology has been refined, F3 will convert to a
shorter format, which will allow you to scan the first paragraph of
each story and then on demand read the rest of the story. This new
format will cut the length of the email from 11-12 pages to 2-3;
while maintaining the same number of monthly stories.
This fall, we will begin F3's 5th year (21st year if you count
back to The Lempert Report origin), and with it I am happy to
report that based on your feedback and ideas we promise to continue
our tradition of being one of the most valuable and insightful
sources of consumer trends, issues and analysis.
As always, I look forward to continuing to build our credibility
and relationship and thank you for your continued support and
feedback. I am just a click away.
Click here to send me
an email.
|
|
|
 |
|
Click here for your
FREE subscription to
Facts, Figures, & the Future.
XR23 will provide you with the latest information and analysis of
technologies designed specifically for the retail environment.
CLICK HERE for
your FREE subscriptin.
This national survey examines shoppers' interest and attitudes, as
well as in-store activities, regarding health and nutrition,
consumers' efforts to manage their health, and the ways in which
health and nutritional concerns play out in purchase decisions at the
grocery store. This report brings a practical understanding of the
relationship between food shopping and health. Shopping for Health
2005 takes a special look at the family, exploring kids' consumption
of the recommended five-a-day, school lunches and family meal time.
Click on the image above.
FMI's Speaks is the annual state of the industry report for food
retailers. The report reviews the important changes and trends and
puts them into an industry perspective. It presents detailed
information on supermarket operations, store-level benchmarks and
outlines strategic and competitive issues. Click on the image above
for more info.
The FMI U.S. Grocery Store Shopper Trends 2006 is available. Click on
the image above for more info.
This annual report provides you with a complete financial picture of
the supermarket industry as well as the external business
environment, including key ratios, balance sheet, income statement
and statement of cash flow. The results are provided for the entire
industry as well as by annual sales for more accurate benchmarking.
Click on the image above for more info.
ACNielsen's new book on category management, published by John Wiley
& Sons, is now available. To order, click on the image above. Or,
for discounted orders of 10 or more, contact Jeff Gould at Wiley at
jgould@wiley.com.
|
|
|
|
July 12, 2006
|
|
Self-fulfilling prophecies
No matter what your politics, you have to smile when you hear
politicians bemoan the state of their own industry.
As someone who works in Washington, DC, I am constantly amused by
all the concern about the "toxic nature of politics today."
After all, it's not as though this "toxic" environment was caused
by some natural disaster, voter will or even by forces from another
planet. The folks bemoaning the problem are the only ones who can
fix it, but somehow that's never part of their speeches.
By the same logic, it's hard to figure out how to deal with a
similar self-fulfilling prophecy within the supermarket industry.
Speaks, FMI's recently released study of industry trends,
found just this kind of thinking.
Asked to rate how shoppers enjoy their supermarket shopping trip,
a wide percentage of industry leaders said they don't think their
shoppers are happy at all. This unhappiness strikes the major stock
up shopping trip of the week as well as the fill-in trips shoppers
make. The unhappiness ends at the front-end, however, as executives
say they believe shoppers genuinely like cooking the food that they
didn't enjoy buying.
The finding might well be dead on the money and might strike at
the underlying cause of the industry's continue slow growth. But it
raises the same question that we could ask of our politicians: if you
don't change it, who will?
Luckily shoppers aren't hiding their feelings all that well and
they tell us very clearly what it is they would like to see improved
in their stores. The question is, will anyone pick up on these
suggestions and change the prophecy of the future.
They crave convenience, especially at the end of a busy day.
They want those fill in trips made easier with special emphasis on
quick grab and go meals or ingredients for meals they can quickly
make.
They want to get through the front end faster - a finding
that shouldn't be news to anyone reading this column. Although there
is a conundrum here that one retailer pointed out to me recently. In
some of the most quirky, and successful, formats that seem so popular
with shoppers these days, the front end lines are longest. Perhaps
there's something about the entire experience that we should be
examining.
Price is important, but consistency seems to be more
important. In a presentation at FMI's recent convention, John Rand
of Management Ventures showed a very interesting statistic on the
performance of companies with different pricing philosophies. Rand's
point is that every day pricing is as important as every day low
pricing. The consistency sends a clear message to shoppers that they
like.
Perishables remain the ultimate point of differentiation for
shoppers and a strong presentation can get you a loyal shopper base
and a strong group of shoppers using your store as a secondary
source. And once you have them there, sell them on convenience and
meal solutions and you can keep them.
Experience matters and much of that comes from your
employees. Study after study shows that clear communication to staff
is essential in building better performance and a better store
experience. Shoppers say they notice that.
None of these areas are new, surprising or especially difficult
to attack. If only, as they say in Washington, we have the will to
create change. It's worth considering.
|
|
Tap into the Power of Your Loyalty Database
Shopper Analysis "Inside" & "Outside" Your Store
Loyalty Marketing data holds the promise of deep, rich insights
about your current customers - who they are, how they shop and what
they buy at your stores. With the proper context, this resource can
help you develop new business strategies and drive executable tactics
to influence future consumer behavior and grow sales.
To differentiate from competitors, retailers often embrace the
introduction of unique departments, private label, or proprietary
brands and store-created items as a way to show customers that they
alone have what the shopper wants most.
Yet, this effort toward differentiation poses a new challenge -
how to create effective marketing and category management plans when
few facts are known about the customer? It can be difficult to
identify your target customer and understand sales of key categories,
product lines, and brands within your store when quantitative
analysis is sparse. Loyalty data can help bridge the knowledge gap.
Panel data provides retailer-specific and market-level insights
about "outside of store" consumer shopping behavior by category,
sub-category and brand.
Your Loyalty Marketing data can add new insights about "inside
the store" customer buying behavior in unique areas of your business,
including perishables, private label and regional brands. We help
clients tie these two data resources together to create a complete
view of consumer activity throughout the store.
Our methodology "consumerizes" your Loyalty Marketing sales data
by putting a face to every name in your customer database. Adding
our industry-standard BehaviorScape segmentation framework to
the cardholders in your Loyalty Marketing database provides a deeper
understanding of household purchasing dynamics by mapping your
customers to a broad-based perspective on shopping behavior. This
brings "inside" and "outside" together.
Retail clients are using this approach to better understand their
customers at-large and create buyer profiles of specific items,
strategic product lines and key departments. Analysis of these buyer
groups leads directly to marketing strategies and tactics. For
example, during a recent client engagement, we profiled buyers of a
proprietary product line. Since these products were not largely
available in panel data, the retailer often used primary research to
understand their consumer.
Using the power of their Loyalty Marketing data, we identified
not just one broad buyer group, but three unique customer segments.
We also identified the most important customer segment of the three
and provided an analysis of shopping activity inside the store and
outside in the marketplace. This collaboration provided the retailer
with new insights for advertising strategies without the added
expense of primary research.
In an increasingly competitive retail environment,
differentiation is critical - in products, services and understanding
of customer shopping activity inside and outside the store. The
information and tools are available. Tap into the power of your
Loyalty Marketing database today.
|
|
|
|
 |
|
Demand Clusters make Stores Consumer-centric
Retailers that can spot identical, or at least similar, demand traits
in customers shopping at far-flung stores are in an enviable
position: these chains can create demand clusters based on customer
data-including how they want to shop, how they would ideally buy, and
how they use products they purchase. Retailers then merchandise to
these common insights to lift category performance in specific
locations.
To execute, retailers tailor category assortments, product
pricing, displays and promotions to the needs of local markets rather
than offer a one-size-fits-all approach. For example, an urban store
selling jeans probably needs a more fashion-forward mix than a rural
store that serves farmers who want rugged, functional design. The
urban store may also be able to charge more and promote less.
Until now, marketers have considered clusters geographic and
primarily to yield greater efficiencies in advertising and logistics.
By contrast, this new concept of demand clusters capitalizes on a
chain's intimate knowledge of its shoppers' demographics, product
attribute preferences, and purchase triggers such as price-regardless
of where they live. By leveraging these insights, retailers gain an
edge in satisfying customers, enhancing sell-through rates, cash flow
and category profitability. Manufacturers that help with the
research and offer to abdicate space in stores where their products
don't move anyway can improve strategic relationships with retailers.
The process has three possible tiers, states William Zeuch, Vice
President-Category Management & Customer Insight, OfficeMax: Simplest
is one program for all stores; most costly and difficult is one
merchandising program per store; ideal is three or four groups of
stores sharing similar consumer preferences, and with unique
merchandising programs for each.
How does a chain assemble, organize and analyze relevant data?
First, secure national panel demographics of purchasers of a brand or
category, and identify which matter most. For instance, does
household size, age, income, or presence of children drive specific
purchases? Second, model the shopper behavior, across all channels,
and weight by volume to organize stores. Score the demographic traits
for predictive power.
Next, blend these insights with the understanding that purchase
behaviors change with lifestages-and that affluence and where people
live affect each behavior stage, urges Marcia Webb, Region Director,
ACNielsen Retail Services. For example, startup families might buy
baby foods/baby care like in the table below.
Click on thumbnail to enlarge, or click here.
The more specific the data, the more powerful the insights.
Average views of a chain's customer makeup fail to show either
shopper diversity or effectively help a retailer pinpoint
opportunities against local competitors. Once identified, however,
Webb suggests using an analytical tool called Local Market Planner to
assess a chain's current performance against nearby operators-and
then target promotions with competitive pricing to develop categories
by demand cluster.
Click on thumbnail to enlarge, or click here.
"Demand clusters lead to a complete top-down neighborhood
marketing strategy that establishes an understanding of the relevant
consumer types for the chain, a consumer-centric culture, that can be
reflected in the organization and set the stage for consumer-centric
category management," describes Steve Kent, Senior Vice
President-Retail Client Service, Spectra.
Moreover, he adds, "Consumer demand-based clustering can increase
the return on investment of category reviews. And local market
tracking can redefine category scorecards and improve execution by
consumer type."
|
|
|
FDA Faces a Full Plate of Labeling Issues
The Food & Drug Administration (FDA) may be the nation's first line
of defense against health risks in foods and dietary supplements, as
well as unfounded claims in their labels, but the federal agency is
budget-strained as it copes with an array of new domestic and global
labeling issues.
Compelling topics currently swirling around FDA include:
America's obesity challenge and liability lawsuits
What the public really comprehends in food labels
Irradiation, food allergens, whole grain and trans fat
labeling
Inconsistencies in regulatory enforcement of dietary
supplement labeling, which broadly includes a brand's websites and
use of third-party information
Differences between how the U.S. and international regulators
approach labeling, and how that affects global food marketers
It's not yet clear how these issues will ultimately wind
up-although seven legal and food industry experts weighed in with
their views during a recent teleconference, "FDA & Food Label
Regulation," put on by Global Knowledge Congress for an audience made
up mostly of food and beverage manufacturers.
Panelists spoke in great technical detail about FDA proposals
this year to define "whole grain," notify consumers of eight allergen
groups, and list the amount of trans fat in food product labels.
These were the news hooks that directly affected and engaged the
audience. But to F3 an even bigger picture is the environment in
which FDA made these proposals, and which is shaping agency-industry
relations as well as assumptions about how much information consumers
can absorb without inadvertently being misled or confused.
For example, in the face of obesity lawsuits against fast-food
chains "the food industry has certainly been proactive ... responding
with low-sodium, whole wheat and other health claims," noted panelist
Christine Humphrey, Esq., of C. Humphrey & Associates, P.A. "In
addition to trying to communicate a healthier message on food product
labels, industry has also been in the forefront of the Common Sense
Consumption Act." About 15 states have attempted to statutorily
prohibit fast-food tort suits using the model law sponsored by the
National Restaurant Association, she said, noting it works "to
prevent fast-food tort actions against food product manufacturers for
any obesity-related claims, weight gain, or any health-related
conditions caused by consumption of certain foods."
Moreover, more food and beverage products are going through
nutritional corrections, having shorter ingredients lists and being
more minimally processed, noted F3's own Phil Lempert, one of the
panelists: "We started to see brands reformulate, lower sugar, switch
to whole grains, eliminate trans fats, have lower fat, higher fiber,
more organics, more GMOs. The food and beverage companies ... all
figured out that if we can make better products, we've got a better
chance of having a healthier population."
Such positive industry actions have prompted FDA to shift its
emphasis from protecting "the gullible, credulous consumer" to
today's approach that "puts that consumer aside," observed Frederick
H. Degnan, partner, King & Spalding LLP. "The agency [now] tries to
direct its fundamental nutrition-related information on food labels
and in food labeling to the reasonable consumer ... how can the
reasonable consumer take the information provided on the label and
use it to improve his or her diet and in turn his or her health. The
goal is to help consumers choose food wisely."
|
|
|
Global Spotlight on Russia
With a land mass as large as the United States and Europe together,
Russia's 143 million residents puts it in the top ten in terms of
population. This population is concentrated more in the west and
south, with a larger portion living in urban areas. This land, rich
in natural resources, is the fourth-fastest growing economy among the
world's top 30.
Even with a currently declining population growth rate, there are
a lot of consumers in Russia, and the economic outlook is positive.
The Russian economy has grown its GDP by at least four percent and as
high as nine percent every year since 2000, and the rate of inflation
has dropped by half in the same time frame. Consumers in Russia are
feeling the effects of this improvement, with credit rising 50% per
year, real retail sales growing at least 15% per year and car
ownership multiplying by eight times since the 20th century. Many
western countries have expansion plans for Russia as well.
Looking at personal wealth, it may seem like Russians are far
behind their western counterparts. But Russians are listed as the 3rd
richest people on the globe, behind the U.S. and Germany. This is due
to the number of billionaires in Russia who have made their money in
energy, natural resources such as metals and banking. These self-made
billionaires tend to be young (average age: between 36-45) and still
in their business "primes."
Increasing wealth is not just limited to the few at the top,
either. The Russian population has seen continual year-over-year
growth in monthly income of 20%-30%, which has afforded them
increases in real disposable income (inflation-adjusted, after basic
needs have been met) of 8-15% in the new millennium.
Click on thumbnail to enlarge, or click here.
The retail makeup in Russia is very diverse. Contrary to other
parts of the world, the top seven retailers in Russia make up only
nine percent of total market share, and only two of these retailers
are international. Local retailers like Pyarterochka, Tander, and 7th
Continent thrive alongside Auchan, Metro and Spar.
Unlike Central Eastern Europe, though, there are an incredible
number of small retail formats that exist throughout Russia. The open
market is still a common occurrence in this part of the world, with
over 120,000 existing in 2005. However, this format is gradually
shrinking - down 40% from 2000. Kiosks, pavilions and minimarkets, on
the other hand, are thriving all over the country.
Some kiosks single-category focused - for dairy or beer, for
example; while others include multiple convenience categories like
sweets, tobacco, snacks and singleserve drinks. These kiosks can be
located on street corners in any major city, and consumers can step
up and purchase the item or items they need.
Slightly larger is the pavilion, a tiny walled and roofed
structure, where consumers can enter and purchase limited grocery or
drug items. Pavilions are also found on main streets in cities
throughout Russia. Moving up in size is the minimarket, a
small-format retail outlet that is typically less than 250 square
meters (about 2,600 square feet) large. These retail outlets can
carry grocery or drug items as well.
Traditional grocery stores do also exist, along with outlets such
as cash & carry, pharmacy, category-specific retailers such as
perfumeries and baby stores, and soft discounters. There are no hard
discounters in Russia at this time.
Click on thumbnail to enlarge, or click here.
Russia has begun to see an influx of "modern trade" outlets such
as supermarkets and hypermarkets in recent years, which signals a
change in the Russian retail landscape. While the open markets are
declining, the modern trade universe is growing quickly. These new
store types are growing at the rate of 25% per year, mainly due to
the growth in supermarkets and hypermarkets. These formats have grown
steadily since 2000, and now number more than 2,700 in Russia.
In the coming years, Russia will continue to be an important
market and consumer base for marketers looking to grow. Marketers
must realize and understand the demographic and cultural diversity of
this region, but with the growing spending power and economy, this
region will be a prime opportunity for the coming years.
|
|
|
Five Things You Need to Know About Marketing to Baby Boomers
While it has been well documented how baby boomers began turning 60
this year, this is just the beginning of an evolution that could,
when all is said and done, end up looking more like a revolution in
terms of how it will affect marketers.
Here are five things that you need to know about baby boomers:
1. Get ready for more aging customers than you've ever imagined.
By 2050, the population of the United States over the age of 85 will
grow at eight times the population of the entire country. At the
same time, the number of people between the age of 45 and 64 is
expected to decline in the next few decades, and the ratio of young
people (under 20 years of age) to older people (65+) will change from
3:1 today to 1:1 by 2050 - meaning that a radical demographic shift
will take place that could have a tectonic impact on the marketplace.
2. Furthermore, a growing percentage of these older customers
will be women. In fact, if you're a woman and live to age 60 today,
you can expect to live so long that you'll spend almost a quarter of
your life in retirement.
3. While it is impossible to predict with any certainty how
these aging baby boomers will conduct themselves in their old age,
history suggests that they are likely to make the same decisions in
old age as they did during the years and decades before. For food
retailers, this means that roughly between four out of ten aging baby
boomers will spend an increasing number of their dollars on food to
be eaten away from home.
4. These same boomers also are likely to spend an increasing
amount of their money on alcoholic beverages (especially beer and
wine), home improvements and furniture, and consumer electronics
ranging from cell phones to televisions. These are expenses that in
the past might have been expected to decline as people got on in
years, but not the baby boomer generation - many of them will have
more money to spend and a greater inclination to improve their
lifestyles by spending it.
5. Baby boomers also have a different attitude toward money than
their parents (who were shaped by the Depression and World War II)
and their children (who have grown up spoiled, in a sense, with
access to easy credit and a propensity for spending money they may
not have). While they are willing to spend money on themselves in
retirement - largely because they see themselves as having earned it
- they remain anxious over their economic well being because of the
national debate about the solvency of Social Security and because of
their own experiences balancing their retirement needs with the cost
of paying tuition for their children. The fact is that less than 20
percent of the Baby Boom generation has consulted a financial
planner, and fewer than 25 percent of the people in this age group
are actively pursuing any sort of retirement strategy.
Click on thumbnail to enlarge, or click here.
The New York Times recently coined a phrase to describe
the physical aspect of this: "generation ouch." The
Times wrote: "Encouraged by doctors to continue to exercise
three to five times a week for their health, a legion of running,
swimming and biking boomers are flouting the conventional limits of
the middle-aged body's abilities, and filling the nation's operating
rooms and orthopedists' offices in the process. They need knee and
hip replacements, surgery for cartilage and ligament damage, and
treatment for tendonitis, arthritis, bursitis and stress fractures.
The phenomenon even has a name in medical circles: boomeritis."
This generation defies easy characterization. It knows it is
aging, but doesn't want to be thought of as elderly. (Baby Boomers
are likely to be the oldest group of people ever to refer to
themselves as "middle aged," which will certainly raise questions
about where the "middle" is.) They are concerned about retirement,
but willing to splurge on items that they perceive as adding meaning
to their lives. They may not even want to retire, preferring to find
a second or even a third career that will offer some kind of
fulfillment - an impulse that will parallel their desire to maintain
a high level of intellectual and physical activity as they age.
What will be critical for marketers is to know precisely what
segment of Baby Boomers are being targeted, and not to assume that it
is a homogenous demographic group. Because nothing could be further
from the truth.
|
|
|
Focus on Consumer Trends to Drive Growth
With the overall United States population growing at 1-2 percent a
year, manufacturers and retailers must look for growing consumer
segments or trends to fuel both short- and long-term growth
opportunities.
The key consumer trends that we have been discussing with our
client base and deserving of special attention are:
Aging Population
Ethnic Consumers
Convenient Consumer Solutions
Health & Wellness
In 2004, 26 percent of all-outlet dollar expenditures (across
categories that we track within our ACNielsen Homescan consumer
panel) came from households with a female-head 55 years of age and
older. Using 2004 spending levels and projecting to the future, we
estimated that 55+ households will drive 31% of all-outlet spending
in 2015 and 34% in 2030. Clearly, the shopping power of these
households can't be ignored. Aging population is having a positive
impact on manufacturers with products targeted against those
consumers as well on retailers like Walgreens and CVS as their
same-store-sales-growth has been driven to a large extent by
pharmaceutical and front-end sales from aging consumers.
Aging population will likely impact:
Store size & formats - older populations may prefer
smaller formats as mobility becomes an issue with aging. However,
our research to date shows that aging consumers are leaving Grocery
retailers at about the same rate as the average household to shop
Supercenters.
Growth of functional foods (e.g., vitamin & fiber
additives)
Package technology (ease of opening) and
smaller sizes
Ad copy & spending, as this segment has historically
been ignored
We also see an opportunity for generation marketing as the
"younger" generations exhibit different channel-specific shopping
behaviors.
Short- & long-term growth can also be accomplished with better
consumer focus on opportunities to serve the growing ethnic consumer
base of African American, Asian and Hispanic households. Mass
marketing to ethnic consumer segments is a thing of the past as
factors like country of origin and differences in regional retailers
and brands drive diverse category development across markets.
As the country becomes more ethnically diverse and consumer
tastes and preferences expand, ethnic marketing efforts can yield
strong sales among the general population too. Retailers could
probably do more to take advantage of this fact with in-store ethnic
sections, more sampling of ethnic foods, and more effort around
making ethnic foods a destination location in their stores.
Nearly everyone seems to be in a hurry to get through the day
faster. Consumers want quicker meals, easy-open packages, and ways
to make personal grooming and home cleaning less of a chore. As a
result, both short- & long-term growth can be accomplished with
better consumer focus on opportunities to deal with speed of life
issues. New product concepts must consider:
Portability
Preparation ease
Preparation time
Retailers can win with convenient solutions too.
Progressive Grocer published an article earlier this year or
late last year about how Publix, Albertsons and Target are offering
recipe ideas and shopping/cooking tips for customers who don't want
to eat from a salad bar, but don't have time to prepare a meal from
start to finish. Prepared meals and snacks that provide busy
households the illusion of serving home-prepared foods should prosper.
Finally, growth can be accomplished with better consumer focus on
health & wellness opportunities. Food and beverage manufacturers
must make health & wellness a key component of their product
formulation and messaging and/or understand how to take advantage of
indulgent consumers. Also, they must put plans and processes in
place to improve their reaction time to new diets and eating habits.
Organics, functional foods, elimination of trans fats, and whole
grain breads and pasta are the hot products in this area. At retail,
in-store health clinics are growing in importance as retailers look
to help their shopper base deal with rising health care costs.
Almost each month we see a new retailer added to the likes of CVS,
Kroger, Longs Drug, Meijer, Publix, Target, Wal-Mart, etc. who have
in-store store health clinic offerings.
For further information or to arrange a comprehensive
presentation on consumer shopping patterns, please contact Todd Hale
at thale@acnielsen.com or
859-905-4615.
|
|
|
Growth Key: Get onto the Hispanic shopping list
To retailers and CPG marketers, Hispanic consumers are sizzling hot
purchaser targets. They comprise the fastest-growing ethnic populace
in the United States-from 41 million currently to an estimated 48
million by 2010 and 60 million by 2020, projects the U.S. Census
Bureau. They add spice to the American palate. And the ways packagers
and stores court them bring an international flair to displays, and
growth to popular categories among Hispanics: energy drinks, sports
drinks, bottled water, granola bars and marinades among them in
foods, and body washes, air care, deodorants and paper towels in
non-foods.
Click on thumbnail to enlarge, or click here.
Because Hispanics have large numbers and potential to lift food
trade sales, companies increasingly take market positions that better
connect their stores and brands to these consumers and earn a place
on their shopping list. What are the list's key components? Which
homeland preferences and cultural influences shape it? Which patterns
and missions emerge? How do they differ among different Hispanic
groups? How can stores and CPG brands influence the shopping list
most dramatically?
The Mystery Behind the Hispanic Consumers' Shopping List
describes how brand manufacturers increasingly embrace Hispanic
values in order to become a regular part of Hispanic life and land in
their household pantries. For example, they support local and
national Latino organizations and events, and contribute to Hispanic
education/family, public advocacy and arts/culture causes. Meanwhile,
stores aim to win over Hispanics with bilingual messaging, signs and
coupons, Hispanic staff and tailored product assortments.
When CPG makers and retailers do this, they're courting large
households: nearly 50 percent of Hispanic households have four or
more people. And since 56 percent of Hispanics are under the age of
30, the value of their potential long-term loyalty is high.
Meanwhile, Latino flavor preferences are already key to growth in
selected perishables, such as: seasoned meats, up 22.5 percent;
peppers, up 14.7 percent; lemons, up 14.4 percent; herbs and spices,
up 14.0 percent; fruit, up 9.6 percent; and pork, up 8.8 percent in
2005, according to dollar sales data from The Perishables Group.
Even in such packaged foods as flavored waters, non-chocolate
candies, salty snacks, ice cream and juices, emerging flavors that
appeal to Latinos are berry, lemon, lime, orange, berry/lime
combinations, hot and spicy, cheddar, honey and cinnamon.
The same database shows that even the scents preferred by Latinos
in common non-food items such as deodorants, detergents, air
fresheners and liquid cleaners, are similar. They include citrus,
berry, fresh, cinnamon and vanilla.
Click on thumbnail to enlarge, or click here.
A by-product of the Hispanic-skewed variety is that all consumers
have new choices at the shelf in mainstream categories. While this
may pose space challenges to retailers, it can also bring an element
of fun to mundane chores and more frequent replenishment.
To see what's next, look south of the border. In Mexico, for
example, some of the hottest food growth is occurring in: flavored
milk, up 73.1 percent; bottled water, up 29.5 percent; fresh milk, up
15.1 percent; and yogurt, up 12.1 percent, show ACNielsen Mexico
Panel Data, 2005.
|
|
|
Fair Trade Bandwagon Gathers Momentum
The Fair Trade movement, which looks to pay a living wage to farmers
for their goods and services rather than the lowest possible price
that can be exacted from them, received a boost recently when Lidl,
the German discounter, announced that it would develop a private
label line that will include only Fair Trade products.
The private label, which uses the name Fairglobe, is being hyped
via a national print advertising campaign as well as through in-store
marketing efforts. The emphasis is on educating consumers about the
meaning and importance of the Fair Trade movement, and a
parallel/supplemental campaign is being sponsored by consumer groups
and the German agricultural ministry.
Lidl's efforts have been endorsed by TransFair, a trade
organization that supports poor growers in Africa, Asia and Latin
America; TransFair has created a kind of "seal of approval" that is
going on all the Lidl private label products sold under the Fairglobe
name.
The Fair Trade movement has been a largely voluntary effort to
this point, with various retail and manufacturing companies selling
Fair Trade products as a way of creating for themselves a
differential advantage. Starbucks, for example, says that its
involvement in the Fair Trade movement includes "cultivating stable
relationships with farmers" as well as "paying substantial premiums
for all coffee purchases, long term contracts and affordable credit
for farmers, direct purchasing, (and) investing in social projects in
coffee communities." Last year, Starbucks purchased more than 11
million pounds of Fair Trade coffee from third world and poor
countries.
However, there are national movements to endorse Fair Trade
initiatives, with countries such as Scotland and Wales considering
legislation that would make them certified Fair Trade countries
committed to a fair wage for poor farmers. One BBC report suggests
that this could be good business, since the sale of fair trade goods
in the UK grew by 40 percent last year alone.
And even Wal-Mart - traditionally a retailer that focuses
exclusively on low prices - reportedly is considering the development
of a line of higher priced Fair Trade coffees that management feels
could dovetail nicely with its efforts to diversify both its stores
and customer base.
While coffee is the product most often associated with the Fair
Trade movement, other products involved in the movement include
bananas, vanilla, rice and sugar.
|
|
 |
ACNielsen estimates that in 2005, over $18.2 billion was spent
across all retail channels in the paper products category which
includes toilet tissue, paper towels, facial tissue, disposable
dishes, paper napkins, pre-moistened towelettes, disposable cups,
disposable coffee & tea filters, baking cups & liners, and soda
straws.
The following slides indicate the percentage of households
who buy each type of paper products, a sampling of higher indexing
household types who buy products in the overall paper products
category, and channel share of category dollar sales.
|
|
Click on thumbnail to enlarge, or click here.
|
|
Click on thumbnail to enlarge, or click here.
|
|
Click on thumbnail to enlarge, or click here.
|
|
|
|
|
Facts, Figures and the Future is copyrighted and may not be
reproduced without prior permission. For more information about the
publication, please contact Phil Lempert at 323-860-3070 or via
e-mail at
PLempert@FactsFiguresFuture.com
|
|
|
