1 copyright © 2012 the nielsen company. confidential and proprietary. u.s. consumer trends april...

1

Copyright © 2012 The Nielsen Company. Confidential and proprietary.Copyright © 2012 The Nielsen Company. Confidential and proprietary.

U.S. Consumer Trends

April 27, 2012

Todd HaleSVP, Consumer & Shopper Insights

Version 31

2

Copyright © 2012 The Nielsen Company. Confidential and proprietary.


Table of Contents

2


• Demographic Trends (3)

• Generational (4)

• The Growth Majority (18)

• Convenient Consumer Solutions (53)

• Health & Wellness (100)

• Sustainability (127)

• Media Trends (134)

• Summary & Closing Thoughts (152)

3



Demographic Trends

4



Urbanization &Industrialization

foster …

Decliningbirth

rates …

UnevenPopulation

Growth

OlderConsumers

withNew Needs

Changes inPer HH

Spending

Immigration& Growthin EthnicFamilies

Declining %of HHs with

Children

And has important implications on the future …

Which leadto an agingpopulation

The face of the American consumer is changing

5



$30

$35

$40

$45

$50

$55

Greatest Gen Boomers Gen X Millennials100

125

150

175

Greatest Gen Boomers Gen X Millennials

$5,500

$6,000

$6,500

$7,000

$7,500

Greatest Gen Boomers Gen X Millennials20%

22%

24%

26%

28%


Shopping Trips Per Household Basket Ring Dollars Per Trip

Basket Ring Dollars Per Household % Dollars on Deal

Total Retail Channels

Greatest Generation: Prior to 1946; Boomers: 1946-1964, Gen X: 1965-1976, Millennials: 1977-1994

Source: Nielsen Homescan;Total U.S. 52 weeks ending 12/31/2011;

excludes gas only or Rx only trips

Older segments more frequent shoppers; younger offset with bigger baskets

6



22

23

24

25

26

27

28


40

50

60

70


11

12

13

14



Shopping Trips Per HouseholdGrocery Stores Supercenters

Mass Merchandisers Drug Stores



Younger less frequent shoppers in grocery, supercenters & drug – on par in mass


7



$45

$50

$55

$60

$65

$70

Greatest Gen Boomers Gen X Millennials$30

$40

$50


$30

$35

$40

$45

$50

$55

$60


$21

$22

$23

$24

$25

$26


Basket Ring Dollars Per TripGrocery Stores Supercenters

Drug StoresMass Merchandisers



But younger generations are bigger per trip spenders in all of these retail channels


8



5

10

15


10

15


5

10

15


Shopping Trips Per HouseholdWarehouse Clubs Dollar Stores

Convenience/Gas



Younger less frequent shoppers in club, dollar & convenience/gas channels


9



$10

$11

$12

$13

$14

$15

$16


$90

$100

$110


$16

$17

$18

$19

$20

$21

$22


Warehouse Clubs Dollar Stores

Convenience/Gas

Basket Ring Dollars Per Trip



But younger generations offset fewer trips with bigger baskets in club & dollar


10



6

7

8

9

10

11



3

4

5


Shopping Trips Per HouseholdWalmart Banner Target

Kmart



Target has greater relative trip appeal among younger generations


But Walmart captures more trips per shopper than Target

11



$35

$40

$45

$50

$55

$60


$50

$60

$70


$30

$35

$40

$45

$50


Basket Ring Dollars Per TripWalmart Banner Target

Kmart



Younger spend more per trip – even in Target where they shop more frequently


12



Big differences in category spend – some driven by diverse households, other by diverse preferences

Annual $ Per Hhld* Greatest Gen Boomers Gen X Millennials

Baby Food 41 54 97 142

Carbonated Beverages 96 133 130 104

Cereal 63 70 88 83

Detergents 46 53 58 47

Hair Care 28 40 48 37

Ice Cream 40 37 34 26

Pet Food 205 223 165 116

Vitamins 121 97 75 65

Wine 122 118 95 68

Where is your category or brand driving sales?

Greatest Generation: Prior to 1946; Boomers: 1946-1964, Gen X: 1965-1976, Millennials: 1977-1994*Among category buyers


UPC-coded products

13



As population grays, AARP redefines their audience; retailers focus on seniors

Source: AARP, Walgreens, Kroger, Fry’s, Harris Teeter

If you're 55+, you can save an additional 10% on your food bill (less V.I.P savings,

taxes, and coupons) the first Wednesday of every month.

Kroger: Seniors receive a 10% discount OFF of your total

purchases on the first Wednesday of every month. All Seniors, 60 years and older are

eligible! (southern Illinois, southern Indiana, select KY &

Nashville, TN area stores Only!)

AARP: Get a Donut with purchase of a L or XL Hot Coffee

http://www.harristeeter.com/default.aspx

http://www.harristeeter.com/default.aspx

14



Grocery call-in service aimed toward elderly & disabled

Source: Roche Bros

15



HBC Senior focus – what about food & beverage & non-food?

Source: MultiAd Kwikee

http://www.stopandshop.com/

http://www.prnewswire.com/mnr/stopandshop/34519/

16



Portion sizes for one or two, but what else?


17



Grandparents: an opportunity when you consider the # of children & grandchildren they have the potential to spend against – what is the multiplier effect for your banner or brands?

U.S. Grandparent population will grow by 11% from 69.6 million in 2010 to 77.1 million by 2015

18



The Growth Majority

19



Ethnic Households will be the Majority by 2050

Distribution of the U.S. Population

70%

4%

13%

13%

35%

65%

5%

14%

16%

35%

60%

6%

14%

19%

60%

7%

14%

23%

51%

8%

15%

27%

54%

46%

9%

15%

30%

54%

205020402030202020102000

Hispanic Black Asian White Non-Hispanic

Source: US Census

20



The White Non-Hispanic Population Skews Much Older Today

5%

13%

15%

68%

5%

16%

22%

56%

5%

17%

18%

60%

6%

14%

19%

60%

5%

12%

13%

68%

4%

9%

7%

79%

Population Age By Ethnicity

55+35-5418-3412-17Under 12Total

Asian Black Hispanic White Non-Hispanic

Source: US Census

21



Nearly 92% of the nation’s population growth came from minorities of all types

Source: USA TODAY / U.S. Census Bureau

Hispanics

Blacks

Whites

Asians

2010 versus 2000

22



Large metros Small metros Non-metro areas

“Non-Whites & Hispanics accounted for 98% of the population growth in large metro areas”

Source: State of Metropolitan America - Brookings

% U.S. White Population

'90 '00 '10 '90 '00 '10 '90 '00 '10

7163

57

8277

73

8682 80

23



Large metros Small metros Non-metro areas

And some other amazing factoids to drive your multicultural engagements

Source: State of Metropolitan America - Brookings

% U.S. White Population

'90 '00 '10 '90 '00 '10 '90 '00 '10

7163

57

8277

73

8682 80

Small metros Non-metro areas

“42 of 100 largest metros lost white

population & 22 are “majority minority”

populations”

“Nearly half of Hispanics live in

just 10 large metros, but those accounted for only 36% of Hispanic

growth”

“Asians even more concentrated with 1/3rd living in just

three metros: Los Angeles, New York, & San Francisco”

“Atlanta, Dallas & Houston led all metros in Black

population gains, while populations dropped in New York, Chicago &

Detroit”

24



“Hispanic shoppers bring increased buying power as numbers rise”

$1.3

$1.0 Trillio

ns

2010 2015

9%

4%

1980 2009

Hispanic Buying Power

Latinos of Mexican heritage represent the single most influential segment of the Hispanic market

w/ $616 billion in buying power

Source: Package Facts (estimates) via Convenience Store News

25



$40

$45

$50

$55

Hispanic - SpanishPrefered

Hispanic EnglishPreferred

White Non-Hispanic140

145

150


Hispanic - EnglishPreferred

White Non-Hispanic

$6,500

$6,750

$7,000

$7,250

$7,500



White Non-Hispanic22%

28%



White Non-Hispanic

Total Retail ChannelsShopping Trips Per Household Basket Ring Dollars Per Trip

Basket Ring Dollars Per Household % Dollars on Deal



Hispanics shop less often, but spend more per trip & annually, and less deal prone

26



African Americans shop often, spend less per trip & overall, and less deal prone

$30

$35

$40

$45

African American Non-African American140

145

150

155

160

165

170

African American Non-African American

$5,500

$6,000

$6,500

$7,000

African American Non-African American15%

20%

25%

30%



% Dollars on Deal



Basket Ring Dollars Per Household

27



Asians shop more often, spend slightly less per trip & are more deal prone

$42

$44

$46

$48

Asian White Non-Hispanic140

145

150

155

Asian White Non-Hispanic

$6,500

$6,750

$7,000

Asian White Non-Hispanic22%

26%

30%

34%



% Dollars on Deal



Basket Ring Dollars Per Household

28



English-preferred exhibit trip preference within supercenters & mass-merchandisers

202122232425262728




51

56



White Non-Hispanic

10

11

12

13

14

15




13

14



White Non-Hispanic





29



Except for drugstores, African Americans make fewer trips to major channels

20

21

22

23

24

25

26


55

60


10

11

12

13


13

14

15

16






30



Asian households more frequent shoppers in all major channels but supercenters

16

18

20

22

24

26

28


57

58

59

60


10

12

14

16


13

14

15

16






31



$55

$60

$65

$70

Hispanic - SpanishPreferred


White Non-Hispanic$42

$43

$44

$45

$46

$47

$48



White Non-Hispanic

$45

$50

$55



White Non-Hispanic$23

$24

$25

$26



White Non-Hispanic



Hispanics offset less frequent shopping by spending more per trip



32



$50

$55

$60

$65

African American Non-African American$30

$35

$40

$45


$40

$45

$50

African American Non-African American$20

$21

$22

$23

$24

$25




African Americans spend less per trip in major retail channels



33



$50

$55

$60

$65

Asian White Non-Hispanic$30

$35

$40

$45


$40

$45

$50

Asian White Non-Hispanic$20

$22

$24

$26

$28




Asians offset their frequent shopping by spending less per trip



34



5

10

15



White Non-Hispanic5

10

15



White Non-Hispanic

5

10

15



White Non-Hispanic


Convenience/Gas



Hispanics measure up well to White Non-Hispanics in these channels

35



5

10

15

20

25


10

15


5

10

15

20



Convenience/Gas



African Americans are more frequent shoppers in dollar stores & c-stores

36



5

10

15


10

15


5

10

15



Convenience/Gas



Asians very frequent club shoppers, but not in dollar or convenience/gas

37



Hispanic households spend more on basic food ingredients, beauty care & categories for babies

Source: Nielsen Homescan, 52 Weeks Ending 12/31/2011; UPC-coded;Purchase index: share of Hispanic $ sales divided by

U.S. household $ share X 100

Hispanic Dollar Index

Edible Non-Edible

Dried Vegetables & Grains 221 Hair Care 154

Shortening & Oil 152 Women’s Fragrances 149

Baby Food 150 Grooming Aids 144

Prepared Food-Dry Mixes 138 Disposable Diapers 144

Canned Milk & Creamers 134 Family Planning 142

Shelf-Stable Juices/Drinks 133 Photographic Supplies 142

Eggs 130 Baby Needs 137

Refrigerated Juices/Drinks 129 Sanitary Protection 129

Gum 127 Cosmetics 127

Beer 124 Laundry Supplies 124

38



Language preference tied to category spending

Dried Vegetables & Grains

Shortening Oil

Men's Toiletries

Baby Food

Prepared Foods – Dry Mix

All Nielsen Categories

Charcoal & Accessories

Pet Food

Fzn Pizza & Snacks

Diet Aids

Wine

Spanish-Preferred HouseholdsEnglish-Preferred Households

Share of Hispanic dollars by preferred language

English-preferred

households spend more on

general population categories important

Source: Nielsen Homescan, 52 Weeks Ending 12/31/2011;

UPC-coded

39



African American households spend more on basic food, beverages, personal & beauty

Source: Nielsen Homescan, 52 Weeks Ending 12/31/2011; UPC-coded;Purchase index: share of African American $ sales divided by


African American Dollar Index

Edible Non-Edible

Frz Meat, Poultry, Seafood 167 Ethnic HBC 946

Dried Vegetables & Grains 164 Feminine Hygiene 181

Coolers 160 Fresheners & Deodorizers 179

Shelf-Stable Juices/Drinks 156 Men’s Toiletries 171

Refrigerated Juices/Drinks 154 Personal Soap & Bath 164

Seasonings & Spices 153 Women’s Fragrances 162

Sugar & Sweeteners 150 Cookware 134

Shortening & Oil 150 Sanitary Protection 132

Non-Carb Soft Drinks 140 Charcoal 129

Flour 134 Photographic Supplies 127

40



Asian households spend more on foods that fit their dietary habits, baby, personal & beauty

Source: Nielsen Homescan, 52 Weeks Ending 12/31/2011; UPC-coded;Purchase index: share of Asian $ sales divided by


Asian Dollar Index

Edible Non-Edible

Dried Vegetables & Grains 274 Photographic Supplies 289

Baby Food 203 Family Planning 284

Refrigerated Juices/Drinks 152 Baby Needs 216

Fresh Produce 139 Skin Care 192

Snacks, Dips – Diary 137 Disposable Diapers 165

Yogurt 128 Oral Hygiene 161

Pasta 127 Sanitary Protection 159

Dried Fruit 127 Kitchen Gadgets 140

Shortening & Oil 126 Hair Care 135

Soup 124 Vitamins & Supplements 133

41



H-E-B meets w/ customers, asks “what would you love to see?” and delivers!

Source: H-E-B & Alberto Martinez /Austin American-Statesman (photo)

“They wanted more things that remind them of home.”

“The $7 million remodeling project — which added 6,000

square feet and about 40 employees to the store —

includes a masa factory that grinds corn daily, a tortilleria that will turn that masa into

tortillas, a carniceria (Latino-focused butcher shop) and a

deli with fresh salsas and cremas.”

North Lamar Boulevard and Rundberg Lane, North Austin, Texas

42



Winn-Dixie’s Miami store transforms—bilingual décor, made-to-order Cuban café & more!

Source: Winn-Dixie

43



Pathmark catering to demographics of the neighborhood

Source: Pathmark, Progressive Grocer & NJ.com

Progressive Grocer reported on Mar. 16, 2012—

“Our remodeled Weehawken store…offers shoppers products that match their needs and cultural preferences,” said Sam Martin, president and CEO of Montvale, N.J.-based A&P. “With more diverse offerings and a friendlier, more modern atmosphere, this renovation is a prime example of our goal to enhance our customers’ shopping experience.”

44



“General Mills pilots Hispanic online sampling… try-before-you-can-buy offer”

Source: General Mills

“Qué Rica Vida will ship to consumers’

doors a sampling of General Mills products before they're available on shelf, a $30

value. Plus they will receive $8 in coupon savings

to purchase them at their local

store.”

45



“Hormel Foods introduces MegaMex Foods, where you can find all the flavors of Mexico”

Source: http://www.hormelfoods.com/brands/MegaMex/default.aspx

46



Website lends understanding of the power of the African-American consumers

Source: The New York Times & ReachingBlackCosumers.com

The New York Times reported on Nov. 6, 2011—

“We know that there is a significant business opportunity in reaching African-American consumers, who comprise 13 percent of the population and have a spending power of over $957 billion,” Rudy Rodriguez, the director for multicultural marketing at General Mills, said in an e-mail.”

47



Macy's partners with Latina Magazine & the Hispanic Scholarship Fund

Source: Macy’s

48



Manufacturer Hispanic websites & apps

Source: Company websites

49



General Mills’ Spanish language app for Apple iPad

Source: Company website

Instant access to more than 900

Latin-inspired recipes, in 12

different categories

50



P&G’s Gain expanding to reach Hispanics

Photo: P&G Gain

51



Campbell invests in innovation

Source: Campbell’s Soup news release (02/22/2012)

Campbell aligning with the “New American Family –

nontraditional, multi-generational, single-parent

and multi-cultural”

“Simply put, our mission is to reinvent our products and

our company for a new era.”

52



Ethnic diversity impacting general population


53



Convenient Consumer Solutions

54



“The technology in the app puts you incontrol of the shopping experience"

Source: Stop & Shop; Brittany Sauser (in-store photo);Quote by John Caron, Modiv Media's senior vice president of marketing

55



“Shoppers who use the Scan It system spend about 10% more than the average customer”

Source: Stop & Shop; iTunes; WSJ/Philip Montgomery (in-store photo)Quote by Erik Keptner, SVP marketing & consumer insights, Ahold

Supermarket News reported on Feb. 6, 2012—

“Fresh & Easy Neighborhood Market, El Segundo, Calif., is testing a “Scan As You Shop” handheld device at a store here that allows shoppers to scan products during their shopping trip and keep track of what they are spending.”

56



Interactive self-serve fountain dispenser

Source: Coca-Cola Company

Touch screen enables

consumers to select from 100+ brands

57



Innovation in vending machines

Buy a Pepsi, "gift" a Pepsi

Oops! Forgot the diapers and formula

Source: We Go Babies & PepsiCo

58



New sampling machine w/ facial recognition dispenses to adults only – sorry kids!

*Ed Kaczmarek, Kraft’s director of innovation & consumer experiencesSource: USA TODAY

USA TODAY reported on Dec. 14, 2011—

"This is intelligent marketing. We're making certain we get the right sample to the right consumer.“*

59



Hershey’s launches travel-retail exclusives

Quote: Hershey World Travel Retail Marketing Manager Onye Ebo Source: Hershey’s

DFNIonline.com reported on Feb. 22, 2012—

“With each piece individually wrapped, Hershey Travel Retail exclusives enjoy unique placement in a retail assortment with a strong brand, strong sharing concept, variety of tastes and flavours, and accessible price points for the travelling consumer.”

60



E-Commerce sales have been steadily gaining share for a decade

Q4

19

99

Q2

20

00

Q4

20

00

Q2

20

01

Q4

20

01

Q2

20

02

Q4

20

02

Q2

20

03

Q4

20

03

Q2

20

04

Q4

20

04

Q2

20

05

Q4

20

05

Q2

20

06

Q4

20

06

Q2

20

07

Q4

20

07

Q2

20

08

Q4

20

08

Q2

20

09

Q4

20

09

Q2

20

10

Q4

20

10

Q2

20

11

Q4

20

11

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

55000

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

5.5

Retail E-Commerce Sales % of Total Retail Sales

U.S

. D

oll

ars

(B

illi

on

s)

Pe

rce

nt

Source: U.S. Census Bureau

61



Battle ensues – Walmart makes advances; will a new line be drawn in online space?

Source: Jack Neff, Ad Age & James Steinberg (photo)

“Walmart's store managers and employees will get credit for

online sales from their territory, just like sales in the store. That will give them more reason to

promote Walmart.com, the new iPad app, My Local Walmart

Facebook app, and … refurbished iPhone app to the

140 million weekly in-store shoppers.”

62



Amazon puts squeeze on publishers & distributors to reduce margins; pulls 5,000 titles

Source: Chicago Tribune, Amazon & Independent Publishers Group (IPG)

Chicago Tribune reported on Feb. 22, 2012—“Amazon began removing the

independent book distributor's e-books from its online bookshelves on Monday

evening after talks to renew their contract to provide e-books to the

world's largest retailer broke down”

http://www.ipgbook.com/

63



Amazon quadruples SKUs; entices customers with 10% discount on regular bulk deliveries

Source: The Grocer

The Grocer (UK) reported on Feb. 11, 2012—

“Amazon has quadrupled the number of grocery products it sells under its Subscribe & Save model since October.“

“More than 8,500 grocery products can now be bought through Subscribe & Save, which allows consumers to sign up for regular bulk deliveries of staple household and larder products in exchange for discounts of at least 10%.”

http://www.thegrocer.co.uk/attachment?storycode=226017&attype=P&atcode=10075

64



Rumor: “Amazon in the process of launching a retail store” in Seattle

Source: goodereader.com

Good E-Reader reported on Feb. 4, 2012—

“Amazon sources close to the situation have told us that the company is planning on rolling out a retail store in Seattle within the next few months. This project is a test to gauge the market and see if a chain of stores would be profitable. They intend on going with the small boutique route with the main emphasis on books from their growing line of Amazon Exclusives and selling their e-readers and tablets… Amazon launching their own store will give customers a way to physically buy books and also sample ebooks via WIFI when they are in a physical location.”

65



“Walmart Labs is trying to evolve with the changing face of commerce…”

Source: CNNMoney, (quote) Walmart, @WalmartLabs & Small Society

66



June 1, 2011, Peapod Delivers reached 20,000

Facebook fans & celebrated by giving

away “$10 off your next order” discounts

Peapod predicts: "In three years, we'll see 50% of orders through mobile & scanning"

Source: Internet Retailer; Peapod; Facebook

Text-message service to alert

customers when their delivery driver is due

to arrive within 10 minutes will be

launching later in the year

67



Walmart offers free shipping to home with $45 minimum purchase

*Steve Nave, SVP & general manager of Walmart.comSource: Walmart

68



Walmart blurring the line between brick & mortar and dot com; tests pop-up stores

Walmart.com stores “designed specifically to promote its website to seasonal shoppers”

Source: Financial Times & NBC San Diego (photo)

69


U.S. Consumer TrendsSource: Walmart

Walmart makes improvements to Facebook app to magically find perfect gift for friends

The site includes improved product recommendations; expanded selection from over 100 sites, including Disney, Nordstrom and Think Geek; and birthday reminders

70



Dollar General debuts e-commerce site on September 8, 2011

“Dollar General is excited to meet the growing demand for online convenience and value,” said Rick Dreiling,

Dollar General’s chairman and CEO. “We have streamlined the online shopping experience, giving

customers what they need, as well as what they want, 24 hours a day, seven days a week, 365 days a year.”

Source: Dollar General

71



Commuter shopping takes new platform, literally!

Source: P&G Corporate Newsroom

October 2011—P&G has set up virtual stores in four of the busiest

subway stations in Prague (available until end of 2011); P&G products have

90% shelf share in first month

June 2011—A visual experiment in mobile supermarket shopping has done very well for Tesco in South

Korea. The number of new registered members rose by 76%, and online

sales increased 130%

72



Peapod & Titan bring the store to busy commuters on Philadelphia train platforms

Source: Peapod

Peapod announces Virtual Rail Campaign on Feb. 8, 2012—

“Brands like Coke, Stroehmann and P&G have partnered with Peapod to reach on-the-go- consumers in this convenient, innovative way.”

"It's taking the grocery store and literally putting it on the train platform," said Jeff Randazzo, executive vice president, Titan general manager.

73



Toys R Us draw shoppers w/ mobile app & 160 pop-up stores for the holidays

Source: Toys R Us on iTunes & Houston Chronicle

Toys R Us Express pop-up stores:

2009 – 902010 – 6002011 – 160

(Toys R Us discoveredless is more!)

Toys R Us expanded mobile offerings & has partnered with:

eBayGoogle

Foursquareshopkick

74



AmazonFresh creates “high-performance mobile experience” app for people on the go

Source: iTunes

“with just two taps shoppers can use their iPhone’s camera to scan an item’s

barcode and automatically add it to their current or future shopping list”

75



Target launches new website; first step towards multi-channel expansion

Source: Target (August 2011)

“new Target.com captures the much-loved Target in-store

experience in a convenient, digital

platform”

76



Walgreens adds level of convenience, but not available at all stores

Source: Walgreens

77



Walgreens entices online shoppers

Source: Walgreens & Harris Teeter

78



“David Lauren turning his father’s empire into digital leader”

Source: Fast Company

While analysts estimate that online revenue

currently accounts for just 6% of the company's

overall sales, they project it could climb as high as 30% in the years ahead. "It's one of the fastest-growing, best-executed businesses for Ralph

Lauren," says Omar Saad of ISI Group.

79



“The investment is a direct reflection of where Nordstrom sees its growth taking place”

Source: Nordstrom’s, MorningNewsBeat & Internet Retailer

On Feb. 20, 2012, Internet Retailer reported that Nordstrom Inc. plans to “spend almost $1 billion over the next five years to continue to support its e-commerce infrastructure”

80



Home Depot expanding online channel aggressively; free shipping on over 100K items

Source: Home Depot

In-store signs point shoppers to look online for more options. "We know we were behind folks like Amazon.com," said Hal Lawton,

Home Depot's president of online. "We've put a stake in the ground; we want to catch up and then get ahead.”

81



Home Depot “connecting customers with contractors”

Source: The Home Depot, WSJ Blog, Red Beacon &, Red Beacon Blog

The Wall Street Journal Blog reported on Jan. 23, 2012—

“In its first acquisition since 2006, Home Depot has acquired home

services specialist Red Beacon, which has a software platform that

lets pre-screened home service professionals–plumbers, painters, house cleaners and so on–bid for

jobs. Home Depot will use Red Beacon to connect its own

customers, which include both consumers and professionals.”

http://blog.redbeacon.com/wp-content/uploads/2012/01/stickguy_homedepot.jpg

82



Apple iPhone & iPad apps: to simplify lives & make smarter shoppers

Source: Apple iTunes (as of March 8, 2012)

There are more than 200,000 apps for iPad and we’ll see that number grow as people clamor to buy the new iPad.

83



“New exclusive mobile coupons” & more!

“Scan, submit & pick-up.

It’s that easy.”

Source: Walgreens & Foursquare

84



Apple offering in-store customer service & comparison shopping app on the iPad

Source: USA TODAY / Jack Gruber (photo)

85



iPad app aggregates shopping catalogs in a searchable, interactive format

Source: www.google.com/catalogs

86



Study: “Why tablet commercewill soon trump mobile eCommerce”

• Already, 9% of the people who shop online have a tablet• Tablets are taking off — Forrester projects that 82 million

Americans will own one by 2015• The average retailer we survey says that 21% of the mobile

commerce on their sites comes from tablets already• According to a survey conducted jointly by Forrester and

Bizrate, 47% of the tablet owners have bought something on their tablets, and another 13% have shopped with the tablet, even if they haven't bought yet

• Half of the tablet owners shop more on their tablets than on their smartphones (and nearly all of them have smartphones)

Source: Forrester Research, Inc.

http://www.forrester.com/

87



Nordstrom joins Home Depot, Lowe’s, Apple in arming associates with mobile POS devices

Source: Forbes & company websites

“Nordstrom has deployed over 6,000 of these devices throughout their 117 full-line stores, and at some Nordstrom locations, there are more mobile POS devices than regular registers…. these devices are part of a larger plan for Nordstrom to help ‘provide a more technology enabled store experience.’”

88



Starbucks registers 42 million mobile payments since app debuted in Jan. 2011

Source: Starbucks & VentureBeat.com (April 9, 2012)

VentureBeat reported on Apr. 9, 2012—

“You’re going to see us as a company that will push the envelope around mobile pay,” chief digital officer Adam Brotman told VentureBeat. “We want to innovate in that area before others catch up.”

89



Kohl’s takes in-store kiosks to the airport

Source: howdyfromnyc.blogspot.com

Kohl’s department stores of the future will be smaller as

shoppers shift to the Internet

90



LivingSocial tests food ordering & delivery

“Instant ordering will allow …

members to order food for pickup or

delivery from a number of local

restaurants. Additionally, … will

offer white glove delivery from top

restaurants.”

Source: LivingSocial.com; *NACSOnline.com

91



Convenient solutions for breakfast


92



Lunchtime convenient solutions


93



Convenient solutions for dinner


94


U.S. Consumer TrendsSource: MultiAd Kwikee

Restaurant meals & snacks at home!

95



Convenience foods steam up!


96



Convenient solutions for cleaning

Source: MultiAd Kwikee & company websites

97



Pre-measured


98



More than one brand or product in a package


99



“On-the-go” & “travel packs”


100



Health & Wellness

101



Evolution of USDA dietary guidance

Source: United States Department of Agriculture (USDA)

1992

2005

2011

102



Healthy label claims: Sales range from $49B for fat claims to $46M for sterol claims

Source: Nielsen Scantrack & Nielsen LabelTrends Total U.S - Food/Drug/Mass Stores (excl. Walmart)

Label Claims Dollar Sales

52 Weeks Ending 03/17/2012$0

$5,000,000,000

$10,000,000,000

$15,000,000,000

$20,000,000,000

$25,000,000,000

$30,000,000,000

$35,000,000,000

$40,000,000,000

$45,000,000,000

$50,000,000,000 Fat Presence Natural Preservative Presence Vitamin Mineral Presence Calorie Presence Salt or Sodium Presence Sweetener Presence Cholesterol Presence Grain Type Calcium Presence Gluten Free Fruit and Veg Presence Organic Caffeine Presence Fiber Presence Protein Presence No MSG Lactose Presence Hormone Antibiotic Free Omega Presence High Fructose Corn Syrup Free Antioxidants Oil Presence Multigrain Probiotic CARB Conscious Iron Presence Soy GMO Free Calorie 100 Fortified Stevia Flax or Hemp Low Glycemic Plant Sterol

103



7/12/2008

9/6/2008

11/1/2008

12/27/2008

2/21/2009

4/18/2009

6/13/2009

8/8/2009

10/3/2009

11/28/2009

1/23/2010

3/20/2010

5/15/2010

7/10/2010

9/4/2010

10/30/2010

12/25/2010

2/19/2011

4/16/2011

6/11/2011

8/6/2011

10/1/2011

11/26/2011

1/21/2012

3/17/2012

-5

0

5

10

15

20

25

Organic LabelsAll Nielsen Measured Categories FDMxWM

Organic labels took a hit in recession, but growth has returnedDollar Sales % Change vs. Year Ago

Source: Nielsen Scantrack & Nielsen Label Trends, Total U.S. Food/Drug/Mass Stores (excl. Walmart),

4-Week Increments vs. Yr Ago

104



Some label claims struggling

-0.6-1.0

-1.4-1.8

-2.8-2.8

-3.2-3.9

-5.0-5.5-5.9-6.3-6.4-6.4

-6.9-10.7 Omega Presence

Probiotic Vitamin Mineral Presence Calcium Presence Calorie Presence Caffeine Presence CARB Conscious Fortified Antioxidants Fat Presence Fiber Presence Salt or Sodium Presence Grain Type Sweetener Presence Protein Presence Soy

Unit Volume % Change vs. Year Ago


13-Wks Ending 03/17/12 vs. Yr Ago

105



0.92.02.12.54.04.64.76.98.48.513.418.221.122.324.425.528.1

54.8112.8 Oil Presence

No MSG

GMO Free

Low Glycemic

Gluten Free

Hormone Antibiotic Free

Fruit and Veg Presence

Stevia

High Fructose Corn Syrup Free

Preservative Presence

Organic

Iron Presence

Lactose Presence

Natural

Multigrain

Flax or Hemp

Calorie 100

Cholesterol Presence

Plant Sterol

Other label claims winningUnit Volume % Change vs. Year Ago


13-Wks Ending 03/17/12 vs. Yr Ago

106



> purchase incidence for whole grain, highfiber; is demand or education an issue for others?

Fermented drinks containing 'good' bacteria

Soy Milk

Cereal with added folate

Milk with added supplements/vitamins

Bread with added calcium or other vitamins

Yogurts with Acidophilus cultures / probiotics

Fruit juices with added supplements

Iodine enhanced cooking salt

Cholesterol reducing oils and margarines

Whole grain, high fibre products

6

12

16

19

20

20

21

25

30

46

20

16

26

28

40

32

34

21

34

33

24

13

26

16

16

15

18

18

15

11

50

59

32

37

25

33

27

36

21

10

Regularly Sometimes Rarely Never

Source: Nielsen Global Online Survey – Q1 2011Base: All respondents n=501

How often do you purchase the following foods that promote specific health benefits?

107



United States Canada

5849

3545

7 6

Mostly In part Not at all

A lot of room to enhance understanding of nutritional information


How well do you understand the nutritional information panels/labels on food packaging?

108



Few consumers find label claims 100% believable

Fresh Claims

All Natural Claims

Non-Artificial Claims

Heart-Healthy Claims

Imported Products Food Claims

Organic Claims

Real Fruit Claims

Fat Claims

Vitamin Content

Calorie Content

8

9

9

11

11

14

17

19

28

32

78

77

75

79

72

74

73

69

67

60

13

14

16

10

17

13

10

12

6

8

Always Sometimes Never


Do you believe/trust that these food labels claims on packages are accurate & truthful?

109



A&P introduces health & wellness website

Source: http://apfreshonline.com/live-better-wellness.asp

110



New look for CVS.com simplifying Rx orders

& promoting online & in-store savings

Source: CVS

111



Nordstrom partners with American Diabetes Association; Walgreens H&W resources

Source: Nordstrom & Walgreens

112



Walgreens broadens reach with beauty website; social networking & rewards program to walkers

Source: Walgreens.com/BeautyWithin

113



Strong online & in-store health & beauty focus from Costco

Source: Costco

114



“H-E-B holds 'flash mob' dance event”

Source: The Mexia (TX) News Online (title quote);

H-E-B’s CEO Craig Boyan:

“in honor of Heart Month and the upcoming Valentine’s Day

holiday, we’ll be hosting a flash mob in an effort to get our Partners and Customers

moving… One of the best ways to fight! heart disease is by adding some exercise to your weekly routine, and

this lively dance break will showcase how fun and simple

fitness can be.”

115



Retailers stressing health & wellness solutions in store layout, assortment, labels & advertising


116



More than 15,000 restaurant locations offering healthier choices on menus for children

Source: HealthyDiningFinder.com & Fox News (photo)

Burger King’sFresh Apple Fries

are fresh apples cut to look like French Fries &

comes with low-fat caramel dipping sauce for a total of 70 calories

117



McDonald’s reinventing itself serving healthier options

Source: McDonald’s

118



McDonald’s launches new ad campaign encouraging children to eat healthy & exercise

Source: Chicago Tribune; Emile Wamsteker, Bloomberg (photo)

Chicago Tribune reported on March 5, 2012—

“McDonald's is among 16 food and beverage companies that have joined the BBB's advertising initiative. Each has promised to limit child-directed advertising of its least-healthy products, focusing instead on healthier options meeting nutritional criteria that each company established independently.”

119



General Mills sells more than 300 gluten-free products through LiveGlutenFreely.com

Source: LiveGlutenFreely.com

120



Kraft brands aiming campaigns at people who want to lose weight

Print Ad

Source: Kraft Foods

121



“Better for you” items


122


U.S. Consumer TrendsSource: MultiAd Kwikee

“Better for you” items

123



Indulgent products can still be winners


124



ConAgra feeds on consumer indulgence trend; invests more in snacks & frozen foods

Source: Dow Jones Newswire

Dow Jones Newswire reported on Feb. 21, 2012—

ConAgra “is trying to grow its snacking and frozen foods businesses as it tries to capitalize on food shoppers' greater willingness to spend on wants rather than basic needs… ConAgra's strategy underscores how food manufacturers are trying to expand into growing categories to overcome little growth in the packaged food space… [CEO] Rodkin said that while shoppers are ‘trying to squeeze every nickel they can’ on pantry staples, they are willing to indulge on products like desserts.”

http://www.conagrafoodscompany.com/

125



Live happy & healthy: scrumptious fruity desserts under 200 calories

Source: Kraft Foods

126



Quaker Oatmeal now part of Burger King breakfast menu

Source: AP Photo/Damian Dovarganes

127



Sustainability

128



Sustainability in corporate messaging


129



Strong sustainability messaging

Source: The Coca-Cola Company

130



Purina ONE beyOnd takes sustainability seriously

Source: Purina ONE beyOnd

131



“Eco-friendly" shelf tags with small LCD displays

Source: http://www.zbdsolutions.com/aboutus/unique.html

132



Kroger cutting store energy consumption & letting shoppers know

Source: Kroger 2011 Sustainability Report

133



Kohl’s, a leading environmentally responsible retailer

Source: Kohl’s

http://www.shopathome.com/






134



Media Trends

135



Online newspapers readership will likely match paper in next few years

48% 47%

41% 42% 40%

34%31%

9%13%

17%

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Read a Daily Newspaper Read an Online Newspaper

Source: Pew Research Center

136



Walmart acquires social media company

Source: Kosmix

“Kosmix team will operate as

part of the newly formed

@WalmartLabs”

137



Target enables shoppers to design their own digital view, create their lists, & share via social

Source: Target

138



Greater shopper engagement with circular as retailers link to “how to” videos

Source: Hy-Vee

139



Greater shopper engagement with circular as retailers strive to be most ‘Liked’

Source: Whole Foods

140


U.S. Consumer TrendsSource: Company websites

Kraft & General Mills online cooking solutions

141



Independent grocers can benefit from being wired to shoppers

Source: IGAMarketFresh.com

142



P&G hosted a “web and mortar” scavenger hunt in Las Vegas; mobile device required

Source: Downy

Downy.com hosted a special online version of the scavenger hunt for seven days

http://www.downy.com/

143



When designing ads, the smart money is on use of humor, narrative & sentimentality

Advertising Performance Index Since 2006

Source: Nielsen Ad Solutions

2006 - 2007 2008 - 2009 2010 - 2011Pre-recession Recession Recovery

144



Product innovation & innovative communication messaging & vehicles

Source: The New York Times, Facebook & YouTube

Photo Caption: “The actor Terry Crews interrupting a commercial for Charmin Freshmates to pitch Old Spice body

spray. While cobranding isn't new, one real commercial commandeering another may be.”

145



Whole Foods launches a new online lifestyle magazine

Source: Whole Foods’ Dark Rye Online Magazine

146



QR codes making their way onto P-O-P materials

Source: In-Store Marketing Institute & Gourmet Retailer

“Consumers with smart phones can connect directly to www.organiccreamerycheese.com for recipes and wine pairings via the

promotional display’s QR code.”

“In-store shelf talkers with tear pads featuring

contest information and a coupon can

be found in participating

retailers throughout the May 1-June 30

contest.”

147



“QR code use jumped 617% from January to December in Top 100 magazines”

Source: Nellymoser

Percentage of ad pages with a QR code QR Market Share vs. MicrosoftTag, Spyderlynk SnapTag, JagTag, Digimarc watermarks & others

“Almost all codes in Q4 led to product demonstrations, branding videos, sweepstakes, e-commerce

and/or social sharing sites”

148



Building brand equity through word-of-mouth marketing & product demo video on Facebook

Source: http://www.facebook.com/purinapetgear

149



Macy’s reinforcing brand reputation & builds its social media following

Source: Facebook.com/Macys & Facebook.com/KitchenAidPhoto by Todor Krecu

Chef Rick Bayless at the Macy's Chefs A-Go-Go Food

Truck Tour in Chicago!

150



Nestlé launches TV ad – only dogs can hear

* Xavier Perez, Brand Manager of Beneful for EuropeSource: Nestlé PURINA Beneful & theinspirationroom.com via flippies.com

“the commercial follows an award-winning campaign in

Germany that featured ‘sniffable’ posters to attract dogs”*

151



Recommendations from people I knowConsumer opinions posted online

Editorial content such as newspaper articlesEmails I signed up for

Branded websitesAds in newspapers

Ads on TVAds in magazines

Ads on radioBrand sponsorships

Ads before moviesBillboards and other outdoor advertising

TV program product placementsAds served in search engine results

Online video adsAds on social networks

Online banner adsDisplay ads on mobile devices

Text ads on mobile phones

271077976768

566446456

6458

544843

41414040

333635

3032

2927

252220

623

3035

3842414141

464546

4947

4947

504646

399

1010111212121414131517192121

2728

Trust Completely Trust somewhat Don't trust much Don't trust at all

Watch Out: Less trust in online & mobile ads

Source: Nielsen Global Online Survey – Q3 2011(Percentage of U.S. respondents)

To what extent do you trust the following forms of advertising?

Base: All respondents n=501

152



Summary & Closing

Thoughts

153



• Health & wellness

• Value

• Convenience

• Comfort & enjoyment

• Green

• Demographics

• Connected

• Global

Consumers share enduring themes

154



•How do you innovate & execute against opportunities that are evident to others & come out ahead?

•How do you identify

opportunities where you can provide unique solutions?

What are you doing to take advantage of these enduring themes?

156



• Bonnie Dykstra-Losoff

• Diane Johannes

• Ken Kirsten

• Sue Mommaerts

Contributing authors

• Shannon Murphy

• Kelly Pirrera

• James Russo

• Mary Ellen Ryan

• Sue Wyard Verrochi

1 copyright © 2012 the nielsen company. confidential and proprietary. u.s. consumer trends april...

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