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Home>insights>Consumer Insight>July 2009: Target>Role Reversal - Mr. Mom Goes Shopping Related Articles
Role Reversal - Mr. Mom Goes Shopping In Store Media Must Change with the
Times
The way consumers respond to in-
By: Peter Leimbach, V.P., Multimedia Sales Research, ESPN store promotional messages and media
is changing, with traditional appeals
CI SUMMARY: Over the past 20 years, the American household has changed and traditional losing some potency, according to the
roles have shifted with men now taking on a greater percentage of the household shopping results of a new poll that surveyed 999
than in the past. Today, almost one-third of men are now the principal shoppers in the home. shoppers shortly after completing a
With more men in the aisles, marketers need to better understand how they impact brand shopping trip.
sales and how to reach this growing segment of principal shoppers. A Shift in Shared Responsibility
Setting up dad as the punch line is
easy in a world where taboos have
The past two decades has seen a role reversal of sorts taking place: the traditional roles of vanished and entertainment sells
men and women are being redefined to better reflect today’s social norms. Today’s American everything. But in that same world -
households are looking less like Donna Reed—the paradigm for the ideal 1950’s family—and one in which traditional gender roles
more like Mr. Mom. are mutating and men are doing more
domestic duties than ever - some say
Shifting norms that advertisers who flip the bird at dad
Since 1985 there has been a dramatic shift in the Traditional roles of men are, in effect, doing it at tomorrow’s
composition of male principal shoppers in the U.S. and women are being core customer.
Several factors are contributing to this trend. First, the redefined...
traditional family unit has multiple variations today. From
two working parents to single parent homes, a younger
generation is being exposed to new norms. Second,
Americans are waiting longer to get married. According to the U.S. Census Bureau, in 2008,
the median age at first marriage was 27.4 for men and 25.6 for women vs. 25.9 for men and
23.6 for women in 1988. Lastly, Americans are living longer and as Baby Boomers retire, the
men of that generation are shopping more than their fathers or grandfathers ever did.
Today, almost one-third of men are now the principal shoppers in the household. With more
men in store aisles, marketers need to better understand how to reach this growing segment of
shoppers.
Increasing presence
Business Week reported in a September 2006 article, Men’s share of retail
“Secrets of The Male Shoppers”, that “men buy, women shopping trips increased
shop: the sexes have different priorities when walking in all outlets...
down the aisles”. This is an important distinction for
marketers to consider when targeting male shoppers.
Nielsen data shows that while females dominate shopping trips in all channels except
convenience/gas stores, their share of trips has declined in all outlets from 2004 to 2008/2009.
On the other hand, men’s share of retail shopping trips has done just the opposite—increased
in all outlets. The channels with the greatest relative importance to men include convenience/
gas outlets, warehouse clubs and grocery stores.
And while females out spend male shoppers per trip across all retail channels, the average
basket size spend differential is not as large as might be expected. The fact that women
conduct more “planned” shopping trips than men is one explanation for the higher dollar
amount..
Overall, men are substantially increasing their average dollar basket size across all channels—
especially in grocery where they have increased spending by 56% over a five year span.
Additionally, while their share of spending is growing across all retail outlets, women’s share of
spending has declined. In the grocery channel, men’s share of dollars increased from 30% to
38%—a 27% increase versus women’s decline of 11%.
From 2006 to 2008, there has been an upward trend in both the amount of dollars spent by
men and their shopping frequency. The occasions when males were the primary or primary/
secondary shopper have increased by 4% and 3% during this two-year time period and the
total dollars spent has increased by 8% and 7% respectively.
And while a high percentage of dollars spent by men are in fairly predictable categories such
as grooming care products and alcoholic beverages: men’s hair coloring (86%); men’s
depilatories (84%); gin (83%); scotch (81%); and pre-shave cosmetics (80%), a peek inside
their shopping basket reveals they are likely shopping for the family too.
More than half of the principal male’s shopping basket consists of items that indicate they are
not just shopping for themselves. Examples include:
1. Programming that skew primarily female (network soap operas and female-targeted
cable networks like Lifetime and Oxygen)
2. Programming with evenly skews male/female (network prime time, broad-based cable
networks like USA Network)
3. Programming that skews male (primarily sports networks)
Nielsen conducted an analysis to determine how well a given media schedule was delivering
both male and female brand users for a leading brand in the cold remedy category. The
findings revealed that men accounted for 48% of brand users and 48% of brand sales came
from shopping trips where the male head of house was the primary/secondary shopper.
And while the advertiser’s schedule included a wide mix of broadcast and cable networks, it
focused primarily on targeting women and adults. Sports networks accounted for only 2% of
the schedule’s GRPs. This mix resulted in a schedule where only 38% of the brand target
impressions fell against men—far less than their share of brand spend.
Continued quest
The male as a principal shopper is not an emerging trend, as marketers have been struggling
to understand this segment for over 20 years. But as marketers learn more about where and
what this consumer segment buys, they are better able to guide brand positioning and media
targeting to capitalize on this target when they are in the aisles.
Home>insights>Consumer Insight>July 2009: Target>Auto Industry's Wild Ride is Getting Smoother Related Articles
Auto Industry’s Wild Ride is Getting Smoother Passing Lane - Hyundai’s best
chance to become a bigger player
may have arrived
By: Julie Enzweiler, Automotive Research Director, The Nielsen Company When 90 million Americans tuned into
the Super Bowl in February, they were
CI SUMMARY: In economic terms, the auto industry was hit by the perfect storm: high gas looking for an escape in more ways
prices, tight consumer financing, plant closings, brand reductions, dealership pruning, than just watching the game and
employee layoffs, longer vehicle retention, surplus inventory, manufacturer bankruptcies and downing a few beers.
waning consumer confidence. Despite a 37% decrease in total auto sales over 2008, bright Behind Mercedes’ $75 Million E-
spots persisted: the redesigned Forester revved up Subaru sales while price leaders Hyundai Class Push
and Kia gained traction from new models. Online media has changed the rules of the road for With the launch of a $75 million
auto marketing by placing consumer generated media squarely in the driver’s seat. campaign for Mercedes-Benz’ 2010 E-
Class, U.S. VP, Marketing Steve
Cannon discussed the psyche of
Unprecedented. Unbelievable. Unfathomable. The state of the auto nation is shaky at the Mercedes owners, the role of 'rational
moment, but all is not lost. Offsetting the unrelentingly negative news are 2009 highlights like a red meat' in the ads and why the
69% spike in Sorento model sales, a 48% increase in Sedona sales, and the successful launch automaker is creating mobile apps for
of the economically-priced Hyundai Genesis and Kia Soul, both targeting younger drivers. the first time. The following are
excerpts of an interview with senior
reporter Andrew McMains.
Conversely, luxury vehicles that attract middle-aged consumers managed to outpace the
market, although the category experienced a long tail effect, a two to three month delay from Mercedes Gives Rational Reasons to
shopping to closing the sale. Only one domestic car manufacturer—Lincoln—outperformed the Buy
market, even though sales remained in negative territory on a year-to-year basis.
Auto Ads Are Primed to Kick Into
Gear
Fueling sales Wall Street is trying to assess the
The Nielsen online panel, comprising 250,000 Offsetting the
impact of the General Motors
individuals representing the U.S. online population, unrelentingly negative bankruptcy on media companies, and
detected another hopeful sign for new vehicle sales news are 2009 highlights... at least one analyst’s conclusions
based on Internet new vehicle shopping patterns. While might surprise you.
online new car shopping downshifted by 9%, this
represented a mere fraction of the precipitous 37% sales
decline, suggesting the existence of pent-up demand. Consumers sought out roadworthy
vehicles like the new Ford Fusion, proven gas sippers like the Toyota Prius and Honda Civic,
or buttoned up their wallets and opted to maintain their current car or buy used.
Foreign automakers benefited disproportionately from escalating gas prices because of the
consumer perception that their vehicles—especially hybrid and diesel models—are more fuel-
efficient. German and Korean automakers realized the largest gains in online vehicle shopping
activity, posting 1.7 and 2.2 percentage point share increases respectively, while their U.S.
counterpart slid 5.5 percentage points. The Volkswagen Jetta and CC models, BMW 1- and 3-
series and Mercedes-Benz E class were among the variants driving shopping inquiries.
Model behavior
Sport utility vehicles, with some 61 models available, The biggest
continue to hold the “most shopped” position and rank disappointment proved to
number one in the U.S. for share of new vehicle be the basic economy
shopping. Although activity waned with rising gas prices, vehicle...
consumers appeared to be hedging their bets, shopping
longer in the hopes that gas costs would plummet and
justify the purchase. And while the government is putting
pressure on automakers to reduce these larger vehicles from their fleet, demand at the
moment is not supporting this mandate.
The biggest disappointment among model types proved to be the basic economy vehicle,
which peaked with a nearly 30% online shopping share in May 2008 when gas prices were at
the highest (around $4.00/gallon), and dropped to half that a year later when gas prices
declined to about $2.00/gallon.
Upper middle car models like the Fusion, Camry, Accord and Altima maneuvered into the
second most shopped segment by April 2009, with hybrid variants moving the sales needle.
Hybrids remain an exciting, but emerging segment, as consumers wrap their heads around the
concept and take their time investigating the genre. Luxury entrants cruised along with steady
sales, experiencing a boost from the Hyundai Genesis introduction. Luxury models attract
aspirational buyers who savor the shopping experience and take their time to consider price
before taking the plunge, elongating the buying cycle.
Trading places
Rankings of the Top 25 automakers based on online shopping activity wheeled in some
interesting changes, with Kia jumping 11 slots from number 24 last April to number 13 in
Saturn fell out of orbit, dropping 13 spots to number 23, followed by Buick’s 12 point decline,
GMC’s six point downslide and Pontiac’s five point plunge. A heads-up to Volkswagen, the
beneficiary of online buzz over the curvy CC: while initial online interest spikes rapidly, it can
quickly taper off. The trick is to sustain interest over time and keep the vehicle top of mind with
prospective buyers.
Value of video
Kia Soul, one of the year’s most successful launches, earned kudos for an exciting web site
that features techno pop music, robot animation, a personalized video from the chief designer
about his “rhino with a backpack” vision, a floating picture gallery, build-a-soul feature and
“Escape from Hamsterdam” game, which leverages the primary advertising visual—hamsters.
Of course, the under $14,000 price tag and 31 MPG green angle helped jump start things.
Ad impressions
Nielsen data show local magazines, national newspapers and local radio taking the biggest hit
with shrinking ad budgets, accounting in large part for the precipitous 31% downtrend in total
first quarter auto ad spending from 2008 to 2009. Online ad impressions ramped up during Q1
of 2009, stabilizing at approximately five billion impressions per month during the March to May
period, with a correspondingly constant spend rate of $35 million per month.
Search engines represent the first point of contact for many shoppers, and carmakers would do
well to influence the tone of the conversation and their placement on the page one rotation.
Deploy the power of Web 2.0 on OEM sites, incorporating quotes, surveys, reviews,
testimonials, buyer videos, interactive games, audio and video feedback loops, special offers
and incentives that hook the consumer and give them a reason to keep coming back.
Home>insights>Consumer Insight>July 2009: Target>Now You're Speaking My Language Find Out More
The fastest growing segment reflects the rising digitization of the Hispanic population: satellite
communication services increased their spend on Spanish-language TV stations by 124%,
dwarfing the gains by runners-up auto insurance at 39% and pharmaceuticals at 32%.
And this dollar shift accompanies a rise in audience sizes for the Spanish-language networks in
the 2008/09 television season. The two major Hispanic networks, Univision and Telemundo,
garnered 11% more viewers overall last season, and reported a 6% increase in the coveted
But audience size is only part of the story. As an advertiser trying to reach the burgeoning
Latino market, it’s also critical to target Hispanics with a high-quality ad in an environment
where they are most engaged and receptive to the commercial message. And to do that
successfully, from both a media and creative perspective, all signs point to language.
Bilingual preferences
Nielsen IAG measures the impact of advertising among Hispanics of all acculturation segments
across English- and Spanish-speaking primetime television every day. Much recent attention
has been placed on the emerging segment of bilingual Hispanics, who can seamlessly switch
from English to Spanish and surf from Criminal Minds on CBS to Cuidado con el Angel on
Univision without losing much in translation. But as an advertiser, where can you more
effectively communicate with this consumer?
Language advantage
Part of the advertising performance advantage can likely be attributed to the unique
characteristics of the Spanish-language networks that offer reduced ad clutter and increased
ad exposure frequency, as well as Hispanic media consumption factors like lower DVR
penetration.
On the recall measure, Spanish-language TV ads achieved a 35% brand recall score versus
27% for English-language ads. In many cases, these substantial gaps were seen even for
“translated” spots, where the ad executions mirrored the version airing on general market TV,
suggesting that the difference lies in something other than the creative treatment or content.
Emotional connection
The performance differential points to a strong emotional link forged between the consumer
and their native language. Spanish-language networks uniquely provide a “language outlet” for
bicultural Hispanics—many of whom may be speaking English in their daily professional lives,
but prefer Spanish in their private or family lives. The television viewing experience, when
delivered in Spanish, allows viewers to connect with their culture, history and identity in a way
that may not be readily available elsewhere. The translation for marketers: it appears that the
bilingual consumer’s appreciation for in-language experiences results in a more favorable
impression of those commercials which deliver them.
Character counts
But more than any other element, the inclusion of a Spanish-speaking character(s) in the ad
appears to be the driving critical success factor. Consistently, these types of ads resonate
more with viewers, receiving higher brand recall and message communication scores than
those without such characters. The finding holds for both Hispanic original spots (+29% higher
brand recall) and translation spots (+37% higher brand recall), underscoring the benefit of
incorporating more relatable talent who speaks the language in the ad.
Creating a specific spot from scratch for the Hispanic market, which incorporates culturally
relevant themes and Spanish-speaking characters, generally results in stronger impact, but
may not always be practical given production costs and timing considerations. As an
alternative, utilizing bilingual actors in ads that are merely “re-purposed” from the general
market appear to have some benefit. In this scenario, the creative content and narrative plays
out identically to the English-language version (with cultural adaptations where necessary), but
the script is verbalized in Spanish. In other words, in the absence of any other cultural cues, an
ad where the characters are at least speaking in one’s native language is more likely to grab
the viewer’s attention and drive brand impact—regardless of whether it was designed
exclusively for the Hispanic market.
Screen scene
Hispanic consumers have become a force to be reckoned with across screens large and small,
fixed and mobile. According to Nielsen May 2009 universe estimates, 82% of Hispanics have
cable plus (expanded cable package that does not require a cable box)—a usage level which
has risen by 12 percentage points from just four years ago and significantly narrowed the gap
with non-Hispanics (89%). One-third of Hispanics have wired digital cable, another 33% have
direct broadcast satellite subscriptions, 21% are DVR owners and 88% have DVD players.
Two-thirds of Hispanic households have personal computers, with six in ten also signed up for
Internet access at home. Nearly seven in ten of those Hispanic Internet households have high
speed broadband access—almost identical to the general population percentage. While all
Internet users average 28.5 minutes online per day, Hispanic households log slightly less time
at 21 online minutes per day.
Wired Hispanics trail the general Internet population when it comes to online shopping. While
70% of Internet users shop online, spending approximately $861 per year, just 62% of
Hispanics purchase products on the web and spend $762 annually.
Dialing in
Mobile phones have made tremendous inroads in the Latinos receive or make
Hispanic community, which trails only the African- more phone calls per day
American segment in number of minutes per month (783 than any other ethnic
minutes versus 811 minutes respectively). Although group...
Latinos don’t spend as much time on the phone, they
receive or make more phone calls per day (14) than any
other ethnic group, and have the phone bills to prove it—
$94 per month compared to African Americans $89, Asians $82 and Whites $80. Roughly two-
thirds of Hispanics used text messaging services in the last 30 days, about one-fourth utilized
mobile Internet, and the same percentage sent an email in the past month.
What’s clear is that Hispanics represent a viable and growing segment in the electronic
marketplace. Their increasing “three screen” media consumption as well as their favorable
predisposition to advertising make them an audience that can be harnessed on new platforms
to boost brand impact.
Guiding principles
Based on Nielsen’s examination of over 100 client Four important principles
engagements related to cost innovation conducted over help manufacturers make
the past five years, four important principles illuminate wise cost-reduction
the way to help manufacturers make wise cost-reduction decisions...
decisions that will drive successful consumer
acceptance in the marketplace.
● Downsizing the Package Size: a somewhat risky change, especially evident to a brand’s
heavy users, which can best be mitigated if additional auxiliary benefits are conveyed with
the change.
● Upsizing the Package Size: a preferable consumer option, which still has pitfalls if
pricing crosses a consumer threshold, or if the consumer has a difficult time perceiving the
relevance of the larger package beyond solely “more for the money.”
● Changing the Packaging Materials: a margin-enhancing move that may also be
leveraged for positive consumer good-will; yet must not erode functionality, structural
integrity, or brand equity.
● Changing the Ingredient Formulation: a high-risk move that must not compromise the
consumer experience, perceived quality, or product efficacy.
adding a smaller size to an existing product line, the resulting increase in purchase frequency
of the new smaller size is not enough to offset the negative transaction size impact to the
business.
A few exceptions to this trend include when the smaller package added: a) unique, incremental
channel distribution, b) new consumers to the franchise, or c) a unique usage occasion that
was independent of the prior large package.
The most important success factor to downsizing is to combine it with innovations that yield
additional positive consumer benefits or experience with the product. What’s more, these
benefits do not necessarily add cost. Examples of successful strategies include adding a
resealable benefit to the smaller pack along with new graphics and a different package shape,
moving from glass to plastic containers, or combining “new news” with a sleek new convenient
and easy-to-transport package. Presumably, these changes add perceived value to the product
experience, offsetting a straight package downsizing which likely could have been viewed as
negative on its own.
Another consideration is retail shelving. How will the package fit on retail category shelves, and
will it be easy to achieve at least a full case pack out on the shelves? Additionally, choosing the
right retail channel for distribution is an important factor as warehouse club shoppers, for
example, may react less favorably to upsizing ideas since the packaging isn’t much different
than the big boxes they already buy. Despite somewhat positive consumer reactions to the
broad idea of upsizing, it is not always an easy decision to simply say “go”. Consulting retailers
regarding these initiatives in advance may be especially helpful.
Another avenue of package innovation is reducing the quantity of a particular material in the
packaging. For example, Pepsi’s Aquafina brand received considerable favorable press
regarding their removal of 20% of the plastic weight from their half-liter bottles. Not only did the
consumer-centric focus not impair functionality, but this cost-savings initiative was viewed
positively as a clear environmental benefit.
consumers now, with little chance to win them back in the future without increased investment.
As such, this strategy has one of the highest risk profiles of the various cost-saving strategies
explored.
This does not mean that product formulation changes should be completely rejected as a
potential cost saving strategy. There are manufacturers who have been successful, and there
are a number of considerations which can help determine if a given situation merits
consideration of a formulation change, such as:
First and foremost, know your product. Specifically, know whether consumers find your product
taste profile to be simple or complex. Chocolate provides a good example of a simple taste
profile, where there is one primary flavor and modifying the formulation would likely change that
flavor. A more complex product example is frozen pizza, where lots of flavors work together
and changing one element might not have as great an impact on the end consumer experience.
Cost-saving product innovations, when done in isolation, tend to lead to declines in perceived
value and consumer appeal. Manufacturers need to know their consumers and ensure that
cost-saving changes are still providing additional positive auxiliary benefits. In doing so,
potential declines in perceived value or appeal will be mitigated, and opportunities for sustained
sales or growth will be increased.
Contributing writers to this article include: Mark Leiter, Emma Kronick, Matt Cahill and Jeff Day.
In this audio podcast, two of Nielsen’s foremost authorities on price strategy will answer the
most popular questions they been receiving from CPG manufacturers about pricing in today’s
economic climate.
● What has this recession changed for marketers thinking about price?
● Are size changes better than price changes?
● Given the economy and the growth of Walmart, Dollar stores and other value retailers,
isn’t cross-store price elasticity something we should focus on?
● What are some rules of thumb on how to change price?
● What is more important – my own price or my price vs. competition?
● What factors cause some items to be more sensitive to price than others?
Featuring:
Mike Noonan, Managing VP, Global Price & Promotion Practice, Nielsen
Mark Laceky, VP Price & Promotion Practice - North America, Nielsen
Hosted by Jennifer Frighetto, Director Media Relations, Nielsen
Home>insights>Consumer Insight>July 2009: Target>From Hayworth to Cansino: Turning the Tides in Latino Movie-Going Find Out More
Sensibilities
CI SUMMARY: Hispanics comprise a growing 15% of today’s American moviegoers and Cinema Advertising Demystified:
amounted to over 128 million of U.S. box office admissions in 2008. Latinos not only Nielsen PreView 2008
represent an opportunity to positively impact overall box office success, but they are an A Guide to Telenovelas: Nielsen
influential segment with the power to build brand awareness. PreView 2008
Moviegoer Quick Facts, June 2009:
Nielsen PreView
Denied her golden ticket to stardom, then obscure Margarita Cansino’s dreams were crushed
when she found herself replaced by blond bombshell Loretta Young as the lead in Fox’s
remake of the 1928 blockbuster Ramona. Cansino’s ethnic name and Latin features had
evidently designated her impractical. It wasn’t until two years later, when Columbia Pictures
changed Rita’s last name to Hayworth and dyed her dark hair to auburn, that she ever stood a Hispanic Facts
chance of being noticed in Hollywood.
- The majority of Hispanics are now online.
Today, the movie industry’s attitudes toward Latinidad
Latinos represent an Internet access among Hispanics has
are quite the contrary: Though Latinos comprise an
been increasing at a faster rate (13%)
exponential 15% of the U.S. population, they represent overwhelming 28% of than it has among total adults (8%) in the
an overwhelming 28% of today’s heavy moviegoers—a today’s heavy U.S. (Scarborough Research)
substantial contribution to any feature film’s box office moviegoers...
success. - Hispanics moviegoers are 63% more
likely to have an account on an online
A growing audience social network that they log onto or update
About 26 million of today’s American moviegoers are Hispanic, most commonly between the at least once a day. (NRG Benchmark
ages of 12 and 34. Almost half of these young Latinos watch 11 or more movies in theaters 2008)
every year, making them 100% more likely than the national average to be considered
“frequent moviegoers”. Half of all Hispanics prefer to see a movie within the first ten days of a - Outdoor advertising is favorably
film’s opening. Understanding Latino consumption and entertainment habits can help studios perceived by 43% of Hispanic moviegoers,
and agencies maximize the success of a feature with this valuable segment of the movie-going making it 18% more likely to be well-
population. received. However, outdoor advertising
should be approached with caution at
sporting events: Hispanic moviegoers’
Language lessons
A family unit supersedes attendance to live sporting events is the
For Hispanics, in-home language preference—
least popular choice of out-of-home leisure
categorized as either English-dominant, Spanish- individual language
activities. (NRG Benchmark 2007)
dominant or bilingual—plays a smaller role in the movie- preference...
going experience than might be expected. While
language differences often exist among Hispanic
families, the ability to participate in an activity as a family
unit supersedes individual language preference.
Hispanics are 77% more likely to take turns picking films within their movie-going party. For
example, although one-third of Hispanic moviegoers in Spanish-dominant homes see movies
with Spanish dubbing or subtitles in theaters, less than half prefer this format to a standard
English-language experience.
Overall, Hispanics command the highest share of audience in the Horror/Thriller and Romantic
Comedy genres. Their highest headcount contributions—in Action Adventure and Family—
correspond to the highest-grossing genres in the U.S. market.
With regard to the 800 million DVD units sold in the U.S. last year, Hispanic households are
24% more likely to purchase them compared to the average American household. In fact,
almost 79% of Hispanic moviegoers bought at least one DVD in 2008.
An analysis of Universal’s Fast and Furious television campaign demonstrates the added reach
Spanish programming can provide. With an opening weekend audience worth $72.5 million—
46% of which was reported Hispanic—the brand tapped Hispanic moviegoers for part of its
success. Fully 11.3% of moviegoers saw spots on Spanish broadcast and cable—almost half
of which would never have been reached with the rest of Universal’s campaign.
But Hispanic moviegoers don’t just watch Spanish television. While Univision elicits 20% of
Hispanic moviegoer’s broadcast and cable viewing minutes, English-broadcast networks ABC,
CBS, the CW, FOX and NBC together command over 15%. Networks ESPN, NICK, TBS, TNT
and USA rule cable for Hispanic moviegoers, comprising 10% combined. English-language
programming often occupies the majority of Hispanic moviegoers’ time spent on broadcast and
ad-supported cable.
Synchronized sensibilities
Considering that Hispanics comprise one-quarter of the most frequent moviegoers,
Hollywood’s reversion from Hayworth back to Cansino is reflective of an era where Hispanic
moviegoers are valued for precisely that which Rita Hayworth felt obliged to alter—cultural
sensibility. Understanding the unique consumption habits of Hispanics will help the movie
industry tailor a portion of its advertising to a box office constituency that can build brand
awareness and success for movie features to come.
Hispanic Facts
● The majority of Hispanics are now online. Internet access among Hispanics has been
increasing at a faster rate (13%) than it has among total adults (8%) in the U.S.
(Scarborough Research)
● Hispanics moviegoers are 63% more likely to have an account on an online social network
that they log onto or update at least once a day. (NRG Benchmark 2008)
● Outdoor advertising is favorably perceived by 43% of Hispanic moviegoers, making it 18%
more likely to be well-received. However, outdoor advertising should be approached with
caution at sporting events: Hispanic moviegoers’ attendance to live sporting events is the
least popular choice of out-of-home leisure activities. (NRG Benchmark 2007)
Home>insights>Consumer Insight>July 2009: Target>Organized Chaos: Global Data Harmonization Related Articles
Some brands have different owners in different countries, and manufacturer names can differ
across borders. Manufacturers may use terms such as “multi-use” to mean 1- or 2-liter bottles
in one market, but 750mL in another, based on the necessities of manufacturing.
Product usage also varies by market, and some markets describe a product as it physically
appears—not how it is used. Chocolate sprinkles, for example, are used as a topping for cakes
or ice cream in the United States and Belgium, but as a sandwich spread in the Netherlands.
Likewise, compote is a dessert in southern European countries and a meal accompaniment in
northern Europe. Local coders may miss these distinctions since they do not realize that a
product is used differently elsewhere.
The key to overcoming these challenges is establishing a clear set of rules for input coding in
order to collect quality information. These rules must be generic and based on what the product
actually is allowing for de-culturalization, but also must provide sufficient information to allow
flexibility.
When new and unique products enter the market, the governance board determines where
they belong. For example, are under-arm absorbency pads deodorants or clothing protectors?
What’s the best way to manage products and categories that are unique to one market, such
as squash and cordials in the United Kingdom or Cuberdons in Belgium? How should unique
packages be handled, such as mayonnaise in plastic bags, offered in Denmark, or pickled eggs
in a jar, from the United Kingdom?
With extensive, worldwide experience, Nielsen’s global project teams are well versed in the
harmonization process and are uniquely qualified to discern the global needs of both
manufacturers and retailers, providing consistent views that support individualized client needs.
“One size fits all” strategies just don’t work globally. Global harmonization provides the clarity
needed to move beyond data differences toward integrated information that drives better
decisions on a global scale.
Home>insights>Consumer Insight>July 2009: Target>Below The Topline: The United States in 2020 - A Very Different Place
The second impact of an aging population is perhaps larger—the costs incurred by society to
care for a large number of retirees. Social Security will begin to run at a deficit in about eight
years and will deplete its trust fund by 2041 unless changes are made now. At that point,
money coming into the program would only cover about 70% of the money paid out each year.
Medicare and Medicaid will deplete their trust funds in only about ten years and will be the
largest component of all U.S. government spending by 2030.
Additionally, many private pension plans are currently under-funded, and given the current
economic difficulties, may not have time to recover adding more people to the public dole. The
Baby Boom generation has suffered a disproportionate share of the $11 trillion in lost market
equity and $3 trillion in lost real estate value from the current recession and they will find it near
impossible to retire and sustain their current standard of living—particularly the 38% who will
be eligible to retire in the next ten years.
Future impacts
Nielsen created a set of long-term demographic and economic projections that model the
potential impacts of the aging U.S. population. The projections make use of five groups of
households (Struggling, Lower Mid, Upper Mid, Affluent and Wealthy), each accounting for
20% of total, using an income-to-poverty ratio.
Households in the Struggling group have incomes that are no more than 1.5 times the poverty
threshold. For a single-person household under the age of 65, this equates to having a yearly
income less than $15,732. For a six-person family with four children, this means having a
yearly income less than $40,407. All together, the Struggling group has a median income of
$12,201.
From now until 2020, the projections show that the Struggling and Lower Mid groups will be the
only ones to gain share, with the Struggling group growing by over 10%. The lower affluence
groups will grow at the expense of all other groups. By 2050, the projections show that the
Struggling group will have grown in size by nearly 70%, pulling households from all other
affluence groups—particularly those in the middle.
For families with children, the growth in Struggling households will be even stronger. By 2050,
nearly one-third of all families are expected to fall within the Struggling group. In the same
timeframe, nearly 40% of all households whose household head is over the age of 65 are
A shrinking pie
As the Baby Boom ages, and birth rates remain low, The U.S. will experience
household sizes will decrease. Many aging Boomers will very minor growth in per
live alone or with one other person. The number of household spending...
children per family will get smaller. Add in growth in the
most economically-disadvantaged market segments,
and pressures on per capita spending will be like nothing
the U.S. has experienced in modern times. Between now and 2020, the U.S. will experience
very minor growth in per household spending. But after that, spending on consumer products is
expected to fall—and will continue to fall throughout the projection period in constant dollars.
Marketers in the U.S. and throughout the World are not accustomed to a shrinking pie, but
rather are used to thriving marketplaces with robust spending growth. Broad marketplace
growth enabled brands and categories to grow organically without increasing penetration or
buying rate. In the near future— and for decades to come—this growth gravy train will be off
the tracks. Growth will only come from increasing share against competition. The new
consumer marketplace of the U.S. will bring new relevance to the phrase “share wars”.
Opportunity knocks
Over the next four decades, the old U.S. consumer mass marketplace will continue to split into
distinct groups with very different product needs. By 2037, nearly one in three households will
be headed by a person over the age of 65. Of these households, nearly three-quarters will be
non-Hispanic white, nearly half will be single persons, and the majority of persons in the 65+
age range will be women. Despite their economic woes, the Baby Boom will still be a strong
consumer market and will provide substantial opportunity for marketers willing to design and
market products to an older consumer franchise.
The future of the U.S. is a challenging one for marketers and retailers of consumer products.
Gaining share among population groups that most marketers do not reach today will require
shifts in focus, tactics, and products. Successfully reaching new markets like multi-cultural
families offers a new set of opportunities. The breakdown of the mass market and the mass
media that once served it, combined with certain economic difficulties, will make for challenging
new times ahead.