Transcript Nielsen PowerPoint Template—White Background

U.S. Retailing
& Consumer Trends
Jeff Gregori
The Nielsen Company
October 23rd, 2008
Confidential & Proprietary • Copyright © 2008 The Nielsen Company
Agenda
• Economic Outlook
• U.S. Retail Trends
• Key Consumer Trends
 Health & Wellness
• Key Insights &
Recommendations
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 2
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Copyright © 2008 The Nielsen Company
Overall Cost of Living Rising Sharply
Consumers Can Not Keep Up With Necessities
12 Month Percentage Increase, Selected Items (March 2007 vs. March 2008)
48%
35%
27%
16%
13%
Fuel Oil Gasoline
Eggs
Bread
Milk
Gallon
dozen
pound
half
gallon
Gallon
10%
7%
Chicken Ground
pound
Beef
pound
3%
Wages
- 8%
Housing
Source: U.S. Department of Labor Statistics (Consumer Price Index; U.S. City Average); USDA, NAR, BLS
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 3
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Consumers Combining Trips, Eating Out Less, Staying
Home, Cutting Spending @ Alarming Levels!
78% combining shopping trips & errands (+ 10 pts from YAGO),
52% eating out less (+ 14 pts),
51% staying home more often (+ 12 pts) &
63% of U.S. consumers are reducing spending (+ 18 pts)!
Saving Money in What & How they Buy & Where They Shop
Impact higher gas prices had on
driving & spending habits? Check all
Jun/Jul
‘05
Jun/Jul
‘06
Jun
‘07
Jun
‘08
Buy less expensive grocery brands
17%
22%
19%
35%
Use more coupons
20%
24%
21%
32%
Shop more @ Supercenters
22%
26%
23%
28%
Buy Larger, Economy Size
10%
11%
10%
16%
Nielsen Homescan Gas Impact Study
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 4
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So, Tough Times for Growth & How Important
Are Value, Variety & Convenience to You?
• How are you
equipped to compete
against Value, Variety or
Convenience?
• Are you providing Value,
Variety & Convenient
solutions to category
consumers & retail
shoppers?
• An integral part of these
themes is innovation
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 5
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U.S. Retailing Trends
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 6
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Value & Convenience Winning As
Evidenced By Increased Store Count
U.S. Store counts
Warehouse Clubs
907
1,167
Supercenters
1,583
3,178
Dollar Stores
Mass Merch
Supermarkets
2001
Mid-2008
13,151
19,805
6,421
6,584
30,682
32,027
Drug
39,660
37,399
Supermarkets have not grown at
the rate of other retail channels –
no wonder the channel has lost
shopping trips!
124,516
145,624
Convenience
Source: Trade Dimensions® & TDLinx®, services of The Nielsen Company
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 7
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Copyright © 2008 The Nielsen Company
Shopping Behavior Trends
• Retailers can grow their sales by:
– Increasing their shopper base
– Driving shopping frequency
– Building baskets
• Leveraging categories & brands
that impact one or more of these
components
• Driving “need state” trip
opportunities
– Health & wellness
– Meal occasions
– Large versus small trips
– Time-starved consumers
Source: Homescan®, a service of The Nielsen Company
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 8
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Value Winning As Evidenced By Consumer
Acceptance
% US household penetration
Military
2001
Mid-2008
3.6
3.8
Conv/Gas
45
41
Warehouse
50
51
Supercenters*
51
68
59
Dollar
Drug
Benefits from
new store
openings
64
81
Mass Merch
86
81
100
99
Grocery
Source: Homescan®, a service of The Nielsen Company
** Note: Conv/Gas channel behaviors understated because of the high
level of gasoline only buys & purchases of immediate consumables
U.S. Retailing & Consumer
Trends
95
July 18, 2015
*Includes Kmart, Target & Wal-Mart Supercenters
Page 9
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Copyright © 2008 The Nielsen Company
Value Channels Grabbing Trips
Trips per household
Military
Warehouse
Dollar
20
2001
Mid-2008
-17%
10
11
11
13
Conv/Gas
15
14
Drug
15
14
Mass Merch
15
Supercenters*
24
Grocery & Mass trips
continue to drop
24
20
26
Grocery
59
Source: Homescan®, a service of The Nielsen Company
** Note: Conv/Gas channel behaviors understated because of the high
level of gasoline only buys & purchases of immediate consumables
U.S. Retailing & Consumer
Trends
July 18, 2015
72
-18%
*Includes Kmart, Target & Wal-Mart Supercenters
Page 10
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Copyright © 2008 The Nielsen Company
Value Retailing Driving Price Compression
Average $ basket ring—total expenditures
$59
$63
Military
Dollar
Conv/Gas
Drug
Grocery
One Stop
Shopping
A Key Strength
For Military
$11
$14**
$10
$19
$19
$23
$32
$40
Mass Merch
Supercenters*
$39
2001
Mid-2008
$49
$51
$64
$82
Warehouse
Source: Homescan®, a service of The Nielsen Company
** Note: Conv/Gas channel behaviors understated because of the high
level of gasoline only buys & purchases of immediate consumables
U.S. Retailing & Consumer
Trends
July 18, 2015
$98
*Includes Kmart, Target & Wal-Mart Supercenters
**Source: Progressive Grocer
Page 11
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Copyright © 2008 The Nielsen Company
Military Channel mostly competing for Larger
Stock Up Trips (>$64) very similar to Club
% of channel dollars by trip type
Military
12
18
29
$ Stores
73
C-Stores
23
51
Grocery
30
22
14
7
16
Immediate
28
Fill In
11
12
23
32
30
11
13
26
28
24
6 3
10
24
32
Mass Merch
Warehouse Clubs
18
55
Drug
Supercenters
41
30
47
Routine
Stock-up
Total US—Nielsen Homescan—52 weeks ending 7/1/2006
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 12
Immediate = <$31
Fill In = >$31 <= $64
Routine = $64 - $125
Stock Up = >$125
Confidential & Proprietary
Copyright © 2008 The Nielsen Company
Next to Club, no channel appeals more to higher
income households than the Military Channel
% sales from all shoppers
100
$100k +
$70 - $99.9k
$50 - $69.9k
$40 - $49.9k
$30 - $39.9k
$20 - $29.9k
< $20k
80
60
40
20
y
ilit
ar
M
la
r
D
ol
ce
nt
er
g
pe
r
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as
s
M
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ro
b
C
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ce
ry
Su
%
U
.S
.H
hl
ds
0
What can the
Military Channel
learn from Club
retailers?
Source: Homescan®, a service of The Nielsen Company―Total US—52 weeks ending 6/28/2008
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 13
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Copyright © 2008 The Nielsen Company
Value channel (Dollar, Mass & Club) growth
coming from ALL income segments!
$ % Chg V. Year Ago - By Income Group
Dollar Stores
Total Mass
Grocery
Club
Drug
20
10
Flat
0
-10
Low Income
Mid-Income
High Income
Source: MY 2008 Vs. MY 2007 Account Shopper Profiler
Low Income = < $20K, Mid Income $20K-$99.9K, High Income >$100K
U.S. Retailing & Consumer
Trends
July 18, 2015
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Copyright © 2008 The Nielsen Company
Low income households unlikely to trade up,
but high income households will trade down
Penetration By Income Group
78
11 Million
HH’s
84 87
78
79 81 83
75
65
68
63
50
47
46 41
40
30
Dollar
Stores
Wal-Mart
Target
Low Income
Club
Mid-Income
Drug
33
C-Stores
High Income
Source: Mid-Year 2008 Homescan
Low Income = < $20K, Mid Income $20K-$99.9K, High Income >$100K
U.S. Retailing & Consumer
Trends
July 18, 2015
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Dollar Stores Expanding Assortment
U.S. Retailing & Consumer
Trends
July 18, 2015
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Retailers – How Are the Winners Winning?
Convenient Shopping Solutions
BAG & CHECKOUT AS
YOU SHOP!
U.S. Retailing & Consumer
Trends
ANTICIPATE SHOPPER
NEEDS
July 18, 2015
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Marketside – Wal-Mart’s Newest Banner
• First 4 Locations Near Phoenix, AZ
– 7561 E. Baseline Road, Mesa
– 910 E. Elliott Road, Gilbert
– 950 N. McQueen Road, Chandler
– 838 W. Elliott Road, Tempe
• 15,000-20,000 Square Feet of Selling Space
– Half the Size of a Neighborhood Market
This new banner allows Wal-Mart to attract
upscale shoppers without the Wal-Mart
name or the “Big Box” image.
http://www.marketside.com
U.S. Retailing & Consumer
Trends
July 18, 2015
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Retailers Performing Well In Tough Economy
• Costco July sales rose 14%, same-store up 10%
• BJ’s July same-store sales up 16.7%, excluding gasoline,
same-store up 7%
• Dollar Tree posted 12.5% increase in sales during fiscal
2nd qtr, comp-store up 6.5%
• Kroger 1st qtr sales up 11.5%, identical supermarket
sales up 9.2% with fuel & 5.8% without
• Family Dollar July sales rose 7.2%, same-store up 4.6%
• Walgreen Co. July sales up 10.7%, same-store up 4.1%
• Wal-Mart 2nd qtr sales up 10.1%, same-store up 4.5%
Consumer Motivation
= Stock-up & Save
Source: Industry e-newsletters & company web sites
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 19
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Copyright © 2008 The Nielsen Company
Retailers Performing Well In Tough Economy
• Costco July sales rose 14%, same-store up 10%
• BJ’s July same-store sales up 16.7%, excluding gasoline,
same-store up 7%
• Dollar Tree posted 12.5% increase in sales during fiscal
2nd qtr, comp-store up 6.5%
• Kroger 1st qtr sales up 11.5%, identical supermarket
sales up 9.2% with fuel & 5.8% without
• Family Dollar July sales rose 7.2%, same-store up 4.6%
• Walgreen Co. July sales up 10.7%, same-store up 4.1%
• Wal-Mart 2nd qtr sales up 10.1%, same-store up 4.5%
Consumer Motivation
= Value Seeking
Source: Industry e-newsletters & company web sites
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 20
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Copyright © 2008 The Nielsen Company
Retailers Performing Well In Tough Economy
• Costco July sales rose 14%, same-store up 10%
• BJ’s July same-store sales up 16.7%, excluding gasoline,
same-store up 7%
• Dollar Tree posted 12.5% increase in sales during fiscal
2nd qtr, comp-store up 6.5%
• Kroger 1st qtr sales up 11.5%, identical supermarket
sales up 9.2% with fuel & 5.8% without
• Family Dollar July sales rose 7.2%, same-store up 4.6%
• Walgreen Co. July sales up 10.7%, same-store up 4.1%
• Wal-Mart 2nd qtr sales up 10.1%, same-store up 4.5%
Consumer Motivation
= Value & Convenience
Source: Industry e-newsletters & company web sites
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 21
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Copyright © 2008 The Nielsen Company
Retailers Performing Well In Tough Economy
• Costco July sales rose 14%, same-store up 10%
• BJ’s July same-store sales up 16.7%, excluding gasoline,
same-store up 7%
• Dollar Tree posted 12.5% increase in sales during fiscal
2nd qtr, comp-store up 6.5%
• Kroger 1st qtr sales up 11.5%, identical supermarket
sales up 9.2% with fuel & 5.8% without
• Family Dollar July sales rose 7.2%, same-store up 4.6%
• Walgreen Co. July sales up 10.7%, same-store up 4.1%
• Wal-Mart 2nd qtr sales up 10.1%, same-store up 4.5%
Consumer Motivation
= Value & 1-Stop Shop
Source: Industry e-newsletters & company web sites
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 22
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Key Consumer Trends
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 23
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Short & Long-term Growth Can Be
Accomplished With Consumer Focus
Health & Wellness opportunities are here to stay
• Make them key component of
messaging and/or understand
how to take advantage of
indulgent consumers
• Improve reaction time to new
diets & eating trends
Grains
Veggies
Fruits
Oils
Dairy
Meat/Beans
• In-store health clinics growing
– Wal-Mart to add 400 by 2010
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 24
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Copyright © 2008 The Nielsen Company
Many Health & Wellness Claims Show
Strong Growth vs. Year Ago
Health &
Wellness Claim
Natural
Low Fat
Absence of Specific Fat
52-Week
Dollar Sales
$21.8 Billion
$14.9 Billion
$13.3 Billion
Chg Vs
Year Ago
+11.4%
+3.9%
+30.5%
$11.3 Billion
$10.6 Billion
$10.0 Billion
$8.5 Billion
$5.8 Billion
$5.5 Billion
$4.7 Billion
$2.1 Billion
$1.9 Billion
$1.6 Billion
+9.7%
+8.6%
+5.2%
+9.6%
-0.6%
-2.2%
+22.5%
+16.6%
+15.8%
+1.8%
(Trans Fat or Saturated Fat)
Reduced Calories
Cholesterol Free
Fat Free
Reduced Fat
No Calories
Caffeine Free
Organic
Multi-Grain
Antioxidants
Good Source of Fiber
Source: Nielsen LabelTrends, Total U.S. FDMxWM, 52 Weeks Ending 9/6/08
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 25
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Copyright © 2008 The Nielsen Company
Organics Have Grown Considerably Over 4 Years, but
Sales Volume Small Compared to Other H&W Trends
73% $3.5 Billion
Fiber Presence
15%
143%
Organic
Preservative
Presence
Calorie Presence
Natural
$4.7 Billion
23%
6%
19% $13.6 Billion
% Chg. 4 Yrs. Ago
% Chg. YA
24% $17.3 Billion
6%
37% $21.9 Billion
12%
52 Week Sales
Fat Presence
32% $46.8 Billion
12%
Source: Nielsen Strategic Planner, 52 Weeks Ending 8/9/08
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 26
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Copyright © 2008 The Nielsen Company
W
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En
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Recent Weeks Show Less Aggressive Organic Growth
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
% Chg. $ Sales
% Chg. Units
5.0%
0.0%
U.S. Retailing & Consumer
Trends
Source: Nielsen Strategic Planner
July 18, 2015
Page 27
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Copyright © 2008 The Nielsen Company
In which aisles are Organic products most
prevalent? UPC Fresh Produce & Dairy
Department
Fresh Produce (UPC-coded)
Dairy
Fresh Meat (UPC-coded)
Dry Grocery
Frozen Foods
Deli (UPC-coded)
Packaged Meat
Alcoholic Beverages
HBA
Total Organics
Organic
Dollar Sales
$869 Million
$1,475 Million
$30 Million
$1,836 Million
$339 Million
$28 Million
$37 Million
$24 Million
$41 Million
$4,680 Million
% Chg. Organic Shr.
YA
of Dept.
+26%
6.3%
+20%
3.5%
+23%
1.9%
+24%
1.3%
+23%
1.1%
+27%
0.5%
+25%
0.4%
+32%
0.1%
+27%
0.1%
+23%
1.3%
Source: Nielsen Strategic Planner, 52 Weeks Ending 8/9/08
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 28
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Copyright © 2008 The Nielsen Company
Organics Comprise Less Than 1% Share for Most
Categories
Category
Milk
Fresh Produce (UPC-coded)
Soft Drinks – Non Carb
Yogurt
Baby Food
Eggs
Dessert/Fruit/Toppings Froz
Soup
Dried Fruit
Jams/Jellies/Spreads
Tea
Cereal
Breakfast Foods
Flour
Canned Vegetables
Total Organics
Organic
Dollar Sales
Sales %
Chg.YA
Organic Share
of Category
$1,018 Million
$869 Million
$67 Million
$180 Million
$167 Million
$142 Million
$40 Million
$139 Million
$34 Million
$52 Million
$70 Million
$185 Million
$56 Million
$12 Million
$72 Million
+18%
+26%
+4%
+21%
+23%
+29%
+36%
+17%
+46%
+45%
+28%
+12%
+60%
+37%
+36%
7.5%
6.3%
6.1%
5.0%
4.4%
4.1%
3.6%
3.3%
3.0%
2.9%
2.8%
2.5%
2.4%
2.4%
2.2%
$4,680 Million
+23%
1.3%
Nielsen tracks 76 categories with organic claim.
U.S. Retailing & Consumer
Trends
Source: Nielsen Strategic Planner, 52 Weeks Ending 8/9/08
July 18, 2015
Page 29
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Copyright © 2008 The Nielsen Company
“Big Names” in Organics
Some Manufacturers have created Organic Line Extensions
Source: Nielsen Strategic Planner: FDM 52 Weeks Ending 1/27/2007
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 30
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“Big Names” in Organics
Several Large Manufacturers Produce Organic Products
Under a Different Brand Names
U.S. Retailing & Consumer
Trends
July 18, 2015
News & Proprietary
Confidential
Page 31 Source: Organic
Copyright © 2008 The Nielsen Company
Meet the Health &Wellness Segments:
(% of U.S. general population adults…)
Least concerned
& knowledgeable
about health &
healthy eating
Driven to
health by
all means
17% EAT,
DRINK & BE
MERRYS
Low belief
in the value
of healthy
categories
25%
WELL
BEINGS
19%
FENCE
SITTERS
16%
FOOD
ACTIVES
19%
MAGIC
BULLETS
Dedicated to
health
through
smart
nutrition and
weight
management
High belief in the
value of supplements
– less concern with
food
U.S. RetailingHealth
& Consumer
& Wellness – Nielsen &
July 18, 2015
Trends
NMI Service Introduction
Page 32
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Copyright © 2008 The Nielsen Company
23% of Military Shoppers are Food Actives
Shopper
Index
117
93
98
95
95
% Shoppers
18 19
23 20
23 24
22 23
14 15
Well Beings Food Actives Magic Bullets Fence Sitters Eat Drink &
Be Merry
Total Military Shoppers
Total Mkt Shoppers
Source: Homescan®, a service of The Nielsen Company
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 33
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Copyright © 2008 The Nielsen Company
Military Shoppers most likely to be FOOD ACTIVES and
EAT DRINK & BE MERRY type shoppers
Dollar Spend Index v. Avg HH
WELL
BEINGS
FOOD
ACTIVES
MAGIC
BULLETS
FENCE
SITTERS
EAT DRINK &
BE MERRYS
MILITARY
97
108
98
89
105
Whole Foods
241
35
162
45
23
Wegmans
134
127
71
88
88
Costco
111
111
117
81
82
Sam’s Club
88
117
118
85
91
Safeway Grocery Corp
106
93
105
106
94
Target Banner
105
101
92
100
103
Wal-Mart Banner
84
93
94
110
115
Read as: Costco $ sales are 11% greater than industry among WELL BEINGS
Source: Homescan®, a service of The Nielsen Company―Total US—52 week ending 09/06/2008
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 34
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Copyright © 2008 The Nielsen Company
FOOD ACTIVES
Health-Related
FOOD ACTIVE 16%
 Eating healthy is vital, over three-fourths eat
heart smart
(% of population…)
 Believe maintaining proper weight is key to
healthful living
 Low use of natural and organic food
 Most apt to count calories and use artificial
sweeteners instead of sugar
 Highest use of prescription drugs; lowest
use of alternative healthcare
Branding Influences
 Most likely to choose products for which they
have a coupon
 Lower than average levels of LOHAS
environmental values
Dedicated to health through
healthy eating, avoiding
negatives and adding those
with nutritional benefits.
FOOD ACTIVES are driven
by a desire for balance of
exercise, nutrition, and
weight management.
Health & Wellness – Nielsen &
NMI Service Introduction
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 35
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Copyright © 2008 The Nielsen Company
Health & Wellness Segments Show Different
Category Preferences
Dollar Spend Index v. Avg HH
WELL
BEINGS
FOOD
ACTIVES
MAGIC
BULLETS
FENCE
SITTERS
EAT DRINK &
BE MERRYS
Yeast
159
129
69
155
27
Flour
130
100
108
91
78
Fresh Produce
120
111
108
91
77
Yogurt
119
112
111
84
80
Wine
129
125
113
78
66
Beer
91
95
90
107
114
Read as: Flour $ sales are 30% greater than average HH among WELL BEINGS
Source: Homescan®, a service of The Nielsen Company―Total US—52 week ending 09/06/2008 – upc-coded products
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 36
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Summary & Closing Thoughts
U.S. Retailing & Consumer
Trends
July 18, 2015
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Key Insights & Recommendations
1. More than ever, shoppers of all economic means are seeking
“value”
– Combining shopping trips
– Eating more meals at home & doing more “at-home” entertaining
– Seeking the right mix of value, variety, & convenience
– BUT AT ACCELERATED LEVELS
The Military Channel is more important than ever to its
customers
– More shoppers are taking advantage of the Military Channel as
UPC product penetration has increased to 3.8% (4.4 MM) but
shopping frequency is has eroded
– How aggressive are we advertising “The Military Channel Value
proposition” to shoppers versus Mass, Dollar & Club stores?
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 38
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Copyright © 2008 The Nielsen Company
Key Insights & Recommendations
2. The Military Channel Health & Wellness strategy should consider the
following elements:
–
Key Assortment Drivers of Health & Wellness
o
Natural, Preservatives, Fat and Calorie Presence Claims offer the
Military Channel opportunity to build Health & Wellness equity with its
customers more than Organics
o
Potential Organic category entry points for the Military Channel
includes:
 Primarily Center Store - Non-Carb Soft Drinks, Baby Food,
Soup, Dried Fruit, Jams/Jellies, Tea, Cereal, Breakfast Foods
& Canned Vegetables
 Perimeter Areas – Milk, Yogurt, Eggs
 Organic Frozen can be a differentiation point for Military versus
competitive channels. This sector is undeveloped for
Organics, but the Total Frzoen Dept is real strength at Military.
U.S. Retailing & Consumer
Trends
July 18, 2015
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Copyright © 2008 The Nielsen Company
Key Insights & Recommendations
3. The “Food Actives” Shopper Segment is a significant opportunity for
the Military channel to drive growth with Health & Wellness
o A big target for Military as 23% are considered Food Actives
(1MM+ Shoppers)
 75% eat Heart Smart and Count Calories
 Most likely to use Artificial Sweeteners instead of Sugar
 Most likely to choose products for which they have a Coupon
o While these shoppers already spend 8% more than the
average shopper in Military, we need to define ourselves
somewhere between Sams (117) & Wegmans (127)
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 40
Confidential & Proprietary
Copyright © 2008 The Nielsen Company
Thank You!
Mid-Year Update
Confidential & Proprietary • Copyright © 2008 The Nielsen Company
Appendix
U.S. Retailing & Consumer
Trends
July 18, 2015
Page 42
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Copyright © 2008 The Nielsen Company
Health & Wellness Segmentation Methodology
U.S. RetailingHealth
& Consumer
& Wellness – Nielsen &
July 18, 2015
Trends
NMI Service Introduction
Page 43
Confidential & Proprietary
Copyright © 2008 The Nielsen Company
NMI Health & Wellness Segmentation Methodology
• NMI’s analysis of the U.S. population’s attitudes and behaviors
regarding health and wellness has long indicated that there are
clearly identifiable psychographic health and wellness segments.
• In 2001, NMI developed a proprietary health and wellness
segmentation of U.S. consumers. Based on more than 40 measures,
the Health and Wellness segmentation has become a cornerstone of
the Health & Wellness Trends Report (HWTR). The five segments
identified have been quite robust over time, displaying strong
consistency from year to year.
U.S. RetailingHealth
& Consumer
& Wellness – Nielsen &
July 18, 2015
Trends
NMI Service Introduction
Page 44
Confidential & Proprietary
Copyright © 2008 The Nielsen Company
NMI Health & Wellness Segmentation Methodology
• The formal analytical model measures commonalities and differences
between five distinct consumer groups using k-means cluster analysis. The
comprehensive statistical modeling process used to derive NMI’s health and
wellness consumer segmentation is based on the following techniques and
methodologies:
• Exploratory and confirmatory factor analysis of nearly 200 measures of consumer
attitudes and behaviors regarding health and wellness, organic products,
supplements, exercise, and many other topics. The analysis identified more than
25 potential factors
• The identification of 31 measures from the factor analysis that best represented
each of the potential factors identified and maintained consistency with the
previous years’ segmentation solution
• K-means cluster analysis which examined numerous potential solutions to
determine which segmentation model provided the optimal solution, based on the
following criteria:
•Maximum differentiation between consumer groups
•Maximum homogeneity within each consumer group
U.S. RetailingHealth
& Consumer
& Wellness – Nielsen &
July 18, 2015
Trends
NMI Service Introduction
Page 45
Confidential & Proprietary
Copyright © 2008 The Nielsen Company
NMI: Unparalleled Expertise in Health,
Wellness & Sustainability
NMI is an international strategic consulting, market
research, and business development company
specializing in the health, wellness, and sustainability
marketplace.
Since 1990, NMI has focused on the
well-being of people and products, and
the environmental and social
responsibility of the planet. NMI owns
the only H&W consumer database.
U.S. RetailingHealth
& Consumer
& Wellness – Nielsen &
July 18, 2015
Trends
NMI Service Introduction
Page 46
Confidential & Proprietary
Copyright © 2008 The Nielsen Company
EAT, DRINK & BE MERRYS
EAT, DRINK & BE
MERRYS 23%
(% of population…)
Health-Related
 Least likely to agree that consumption of healthy,
nutritious food is important to a healthy lifestyle
 Lowest monthly expenditure on healthy and
natural products
 Driven more by taste and to select emotional,
“feel-good” products
 Least likely to read labels
Branding Influences
 Most likely to choose store brand and buy on price
 Least likely to associate personal values with
brand choice
U.S. RetailingHealth
& Consumer
& Wellness – Nielsen &
July 18, 2015
Trends
NMI Service Introduction
Least concerned about health
and healthy eating; least
knowledgeable about healthrelated benefits. Know they
should eat healthier, but don’t.
Most focused on taste.
Page 47
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Copyright © 2008 The Nielsen Company
WELL BEINGS
Health-Related
 High use of healthy food such as soy
food/beverages, fiber, organic food/beverages
WELL BEING 25%
(% of population…)
 Spend significantly more on healthy and natural
products
 As challenged to eat right as other segments, yet
are the most successful at healthy eating
 Choose natural/organic over conventional
 Above average use of alternative healthcare
Branding Influences
 Least likely to base purchase decisions on price; choose
quality regardless of cost; concerned about brand image
 Most likely to shop natural channel, including Trader Joe's
and Whole Foods Market
Driven to health by all
means, including food,
supplements, and other
products. Strong preference
for concepts that are natural
and organic, with strong
environmental linkage.
 Early adopters and influencers
 Purchase from companies that share their values
U.S. RetailingHealth
& Consumer
& Wellness – Nielsen &
July 18, 2015
Trends
NMI Service Introduction
Page 48
Confidential & Proprietary
Copyright © 2008 The Nielsen Company
MAGIC BULLETS
Health-Related
MAGIC BULLETS 19%
 Above average interest in, understanding, and use
of organic and natural food/ beverages
(% of population…)
 Highest use of functional/fortified food/beverages
 Highest usage of weight loss food and artificial
sweeteners
 Highest use of OTC, alternative healthcare,
homeopathic remedies, condition specific
supplements, VMHS; high use of Rx
Branding Influences
 Average brand loyalty, less concerned with brand
image
 After WELL BEINGS, most likely to shop Trader
Joe’s and Whole Foods Market
 More likely to choose products for which they have
a coupon
U.S. RetailingHealth
& Consumer
& Wellness – Nielsen &
July 18, 2015
Trends
NMI Service Introduction
High belief in and usage of
supplements for health, and
less concern with food. Among
the groups most actively
managing weight, sensitive to
environmental concerns, and
some leanings toward natural
and organic. Healthy
convenience resonates with this
group.
Page 49
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Copyright © 2008 The Nielsen Company
FENCE SITTERS
FENCE SITTERS 17%
(% of population…)
Health-Related
 Lower belief in the connection between diet and
health
 Less than average use of most healthy food
categories
 Less concerned about sugar, high fructose corn
syrup, and artificial sweeteners
Branding Influences
 Average brand loyalty
 Concerned about brand image
 More likely to buy on price
Primarily younger households
with kids, who buy on price and
are driven by the “family” diet.
They are neutral on most health
issues, with a low belief in the
value of healthy categories
 Less environmentally sensitive
U.S. RetailingHealth
& Consumer
& Wellness – Nielsen &
July 18, 2015
Trends
NMI Service Introduction
Page 50
Confidential & Proprietary
Copyright © 2008 The Nielsen Company
Good Alignment Between NMI & Homescan –
Consistent Segment Sizes
23
24
17
16
EAT, DRINK, & BE
MERRYS™
FENCE SITTERS™
19
22
MAGIC BULLETS™
FOOD ACTIVES™
16
19
WELL BEINGS™
25
19
NMI H&WS
% Population
Homescan H&W
% Households
Source: NMI 2007 H&W Consumer Trends Database™; Homescan®, a service of The Nielsen Company
U.S. RetailingHealth
& Consumer
& Wellness – Nielsen &
July 18, 2015
Trends
NMI Service Introduction
Page 51
Confidential & Proprietary
Copyright © 2008 The Nielsen Company
Who is the Military Shopper?
Demographics of HEAVY
Military Shopper
Demographics of the
average Military Shopper
•
•
•
•
•
•
•
•
•
•
HHLD Income $40K+
Female Head Age 55+
Affluent Suburban Spreads
Younger Bustling Families
Empty Nest Couples
Senior Couples
Not In Work Force
African American
Asian
Non-Caucasian
Your Most Important shoppers
•
•
•
•
•
•
•
•
•
•
•
•
•
•
HHLD Income $40K+
Female Head Age Under 35
Female Head Age 65+
2 Member Household
3 – 4 Member Household
5+ member Household
Affluent Suburban Spreads
Younger Bustling Families
Empty Nest Couples
Senior Couples
Not In Work Force
African American
Asian
Non-Caucasian
Heavy Shoppers represent approximately
82% of total military volume
U.S. Retailing & Consumer
Trends
July 18, 2015
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Copyright © 2008 The Nielsen Company
Who is the Military Shopper?
Demographics of the
average Military Shopper
•
•
•
•
•
•
•
•
•
•
Demographics of LIGHT
Military Shopper
•
•
•
•
•
•
•
•
HHLD Income $40K+
Female Head Age 55+
Affluent Suburban Spreads
Younger Bustling Families
Empty Nest Couples
Senior Couples
Not In Work Force
African American
Asian
Non-Caucasian
HHLD Income $50K - $99k
Female Head Age 65+
Modest Working Towns
Senior Couples
Not In Work Force
African American
Asian
Non-Caucasian
Light “occasional” shoppers
Light Shoppers represent approximately
18% of total military volume
U.S. Retailing & Consumer
Trends
July 18, 2015
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Copyright © 2008 The Nielsen Company