Transcript Retail Strategy Group Finding Opportunity

Growing Sales Through Segmentation
and Local Market Strategies
Peter Greene
SVP, Durables Strategies
March 11, 2012
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2011 The Nielsen Company. Confidential and proprietary.
AGENDA
• Overview of Nielsen
• Overview of Segmentation
• Segmentation in Action
• Summary
•Q&A
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WHO WE ARE
Nielsen is the world’s leading provider of
marketing information, audience measurement,
and business media products and services.
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More than 34,000 employees in over 100 countries…
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WHAT WE DO
Nielsen measures markets, media and consumer behavior
across industries and around the world.
We integrate information from across our business.
We transform raw data into strategic insights and
tailor-made recommendations.
We analyze and advise about complex sales and
marketing issues for winning business decisions.
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AGENDA
• Overview of Nielsen
• Overview of Segmentation
• Segmentation in Action
• Summary
•Q&A
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UNDERSTAND YOUR CUSTOMERS
seg·men·ta·tion [seg-muh n-tey-shuh n]
A marketing technique which allows you to define and
divide the marketplace into clearly identifiable groups sharing
similar characteristics, needs, wants or demands.
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FIND YOUR BEST CUSTOMERS
ZIP
CODE
23219
BY
COMMUNITY
BY
CHANNEL
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CONNECT YOUR PRODUCTS TO
PEOPLE & PLACES
Your Products
Evaluating Opportunity;
Creative Messaging,
Channel Planning
Assortment;
Promotion &
Merchandise mix
People
Places
Market & Distribution
Planning; Local Media
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MAXIMIZE THE VALUE TO YOUR
ORGANIZATION
Strategic Planning & Research
Local Market Promotion
Channel Management
CONSUMER
SEGMENTATION
MEDIA
STRATEGY
LOCAL MARKET
SOLUTIONS
Customer Relationship Management
National Media Strategy
Product Distribution
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TRANSFORM YOUR BUSINESS
VIEW
MEASURE
ASSESS
PLAN
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BEFORE
CONSUMER
GROUPS
CONSUMER
GROUPS
CONSUMER
GROUPS
CONSUMER
GROUPS
PRODUCT
PROMOTION
PLACE
PRICE
AFTER
We help companies
understand & find consumer
who want to buy.
PRODUCT
CONSUMER
GROUPS
PRICE
How will you take Action?
How will you Measure
Success?
PROMOTION
PLACE
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CAPTURING OPPORTUNITY
WITH ACTIONABLE RETAIL SOLUTIONS
We help companies
understand & find consumer
who want to buy.
PRODUCT
• New Product Design
• Expected Buyer Analysis
(New Products)
• Share of Market/Wallet
• Consumer Experience
• Store Clustering
CONSUMER
GROUPS
PROMOTION
• Messaging/
Communication
• Agency Collaboration
• Media Mix
• Ad Effectiveness
PRICE
• Category Analysis
PLACE
•
•
•
•
•
•
Site Selection
Site Typing
Network Optimization
Market Holding Capacity
Channel Optimization
M & A Assessment
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AGENDA
• Overview of Nielsen
• Overview of Segmentation
• Segmentation in Action
• Summary
•Q&A
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Who is Today’s Housewares Consumer?
Distribution By PRIZM Segment
Housewares Consumer
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About PRIZM
4 – Young Digerati
21 – Gray Power
1- Upper Crust
57 - Old Milltowns
7 – Money & Brains
27 – Middleburg
Managers
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About Life Stage Groups
Social Group
HH Count
Percent
Midlife Success
14,596,499
12.57
Mainstream Families
13,660,001
11.76
Striving Singles
12,465,431
10.73
Cautious Couples
12,179,381
10.49
Sustaining Seniors
11,971,225
10.31
Young Achievers
11,606,145
9.99
Conservative Classics
10,722,985
9.23
Young Accumulators
9,277,918
7.99
Affluent Empty Nests
8,003,415
6.89
Sustaining Families
7,255,126
6.25
Accumulated Wealth
4,398,491
3.79
Total 116,136,617
100.00
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About Life Stage Groups
Title of Presentation
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Who is Today’s Housewares Consumer?
Distribution By PRIZM Life Stage Group
Housewares Consumer
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Housewares Purchasers Vary by Category
Distribution By PRIZM Life stage Group
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CAPTURING OPPORTUNITY
WITH ACTIONABLE RETAIL SOLUTIONS
We help companies
understand & find consumer
who want to buy.
PRODUCT
• New Product Design
• Expected Buyer Analysis
(New Products)
• Share of Market/Wallet
• Consumer Experience
• Store Clustering
CONSUMER
GROUPS
PROMOTION
PRICE
PLACE
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Hair Styling Appliance And Accessory Consumers
Distribution By PRIZM Life Stage Group
Hair Styling & Accessory Consumers
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Hair Styling Appliance And Accessory Consumers vs. Conair
Distribution By PRIZM Life Stage Group
Hair Styling Appliance & Accessory Consumers
Conair Consumers
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Hair Styling Appliance And Accessory Consumers vs. Private Label
Distribution By PRIZM Life Stage Group
Hair Styling Appliance & Accessory Consumers
Private Label Consumers
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CAPTURING OPPORTUNITY
WITH ACTIONABLE RETAIL SOLUTIONS
We help companies
understand & find consumer
who want to buy.
PRODUCT
CONSUMER
GROUPS
PRICE
PROMOTION
• Messaging/
Communication
• Agency Collaboration
• Media Mix
• Ad Effectiveness
PLACE
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Total Coffee And Tea Maker Consumers
Distribution By PRIZM Life Stage Group
Coffee & Tea Maker Consumers
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Coffee & Tea Maker Consumers vs. Keurig Consumers
Distribution By PRIZM Life Stage Group
Coffee & Tea Maker Consumers
Keurig Consumers
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Keurig Consumers
Distribution By PRIZM Segment
Keurig Consumers
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Second City Society
1.45M Households
DESCRIPTION
The residents of these satellite cities tend to be prosperous professionals who decorate their
homes with multiple computers, big screen TVs, and an impressive collection of wines. They
tend to enjoy cultural activities, from reading books to attending theater and dance productions.
DEMOGRAPHIC SNAPSHOT
•
•
•
•
•
•
Age 45-64
Second (small) city urbanicity, homeowners without kids
Mostly white collar employment
Upscale incomes with median of $82,500
White, Black and Asian Mix
Graduate + education levels
PSYCHOGRAPHICS
•
•
•
•
•
Will buy on credit rather than wait
Willing to pay more for top quality electronics
Many products don’t perform as well as ads claim
Buy based on quality, not price
Will pay more for a brand I trust
MEDIA CONSUMPTION
• Watch CNN, MSNBC, Bloomberg, HSN, golf &
tennis events
• Read Sunset, Coastal Living, Kiplinger’s,
daily/weekend newspaper, Architectural
Digest, Travel & Leisure, More & AARP
• Listen to classical , jazz & news radio,
THEIR LIVES
• Love to vacation overseas in Spain, Portugal, Australia, Italy & go on cruises
• Shop at Neiman Marcus, Saks Fifth Ave, Thomasville, Talbots, Ethan Allen,
Crate & Barrel, Eddie Bauer & Bloomingdales
• Order from Gevalia, Land’s End, LL Bean, Zappos & Orbitz
• Belong to country clubs and enjoy golfing, sailing, bicycling
and playing tennis
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CAPTURING OPPORTUNITY
WITH ACTIONABLE RETAIL SOLUTIONS
We help companies
understand & find consumer
who want to buy.
PRODUCT
CONSUMER
GROUPS
PRICE
PLACE
PROMOTION
•
•
•
•
Site Selection
Site Typing
Network Optimization
Market Holding Capacity
• Channel Optimization
• M & A Assessment
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Razor Trimmer Appliance & Accessory Consumers
Distribution By PRIZM Life Stage Group
Razor Trimmer Appliance & Accessory Consumers
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Razor Trimmer Appliance & Accessory Consumers vs. Braun
Distribution By PRIZM Life Stage Group
Razor Trimmer Appliance & Accessory Consumers
Braun Consumers
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Braun Consumers
Northeastern NJ by ZIP by Target Location (2.5 mile radius)
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CAPTURING OPPORTUNITY
WITH ACTIONABLE RETAIL SOLUTIONS
We help companies
understand & find consumer
who want to buy.
PRODUCT
CONSUMER
GROUPS
PROMOTION
PRICE
• Category Analysis
PLACE
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AGENDA
• Overview of Nielsen
• Overview of Segmentation
• Segmentation in Action
• Summary
•Q&A
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SUMMARY
• Housewares attracts a diverse consumer base
• Segmentation is innovation
– Demographics are insufficient in today’s marketplace
– Understanding geo-demographics, psychographics
and lifestyles is critical to a company’s success
– The better you know the consumer, the better the
chance you have of influencing their purchase
decisions
• Identifying your best consumers and
connecting with them on their terms is the key
to growth
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ROBUST INFORMATION,
DEEPER INSIGHTS AND
INNOVATIVE SOLUTIONS
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Growing Sales Through Segmentation
and Local Market Strategies
Peter Greene
SVP, Durables Strategies
March 11, 2012
For More Information about PRIZM and please visit
www.mybestsegments.com
Copyright © 2012
2011 The Nielsen Company. Confidential and proprietary.