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UPCOMING WEBINARS
REVENUE MANAGEMENT OPTIMIZATION – OCT. BEYOND THE MIDDLE CLASS – NOV. 7TH
WHY 10% OF YOUR CONSUMERS ARE WORTH 5X MORE THAN THE REST
September 17, 2013
SUPER CONSUMERS
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PRESENTATION SPEAKERS
CANNON KOODirector, Analytics
Kraft Foods
GREG GALLAGHERCategory Director
Kraft Foods
EDDIE YOONPrincipal
The Cambridge Group
WHY 10% OF YOUR CONSUMERS ARE WORTH 5X MORE THAN THE REST
September 17, 2013
SUPER CONSUMERS
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POLL #1
Which best describes your consumer target?
They drive >50% of category profit
They give powerful, predictive insightsThey are focused, findable & easy to reach
They can be easily linked with big data
All of the above
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WHAT WE’LL COVER TODAY
THE VALUE OUR CLIENTS HAVE SEEN WITH THEM
WHO ARE THEY?
SUPER CONSUMERS
WHY YOU SHOULD STOP AND TAKE NOTE
WHO ARE THEY?
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THEY MAY SEEM FAMILIAR…
HEAVY USERHIGHLY
INVOLVED
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HEAVY USER
HIGHLY INVOLVED
BUT THEY ARE MORE POWERFUL10% of HH typically drive 30% of sales and as much as 50% of profit
SUPER CONSUMERSECONOMICALLY EMOTIONALLY
Above average category affinity & knowledge Shop the category more frequently & more
open to marketing messages Can articulate and anticipate what is ‘around
the corner’
Over index in volume, sales & profit Constantly looking for new products Will pay a price premium
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POLL #2What concerns you about Super Consumers (check all that apply)?
They seem like weird people
They must be rich people
They are saturatedNot relevant for my category
I can’t win with them
I can’t find them
WHY YOU SHOULD STOP! AND TAKE NOTE
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#1—THEY EXIST EVERYWHERE
Super Consumers – The Top 10%(Across 40 CPG Categories of $50B in Sales)
Other Non CPG :
Air Travel
Restaurants
9% 44%=
5% 24%=Consumers Revenue
Consumers Revenue
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#2—THEY CAN FIX MARKETING MYOPIA
They Address the Pitfalls of ‘Marketing Myopia’
Harvard Business Review
All Melted CheesesVelveeta
They Help Define the Best Frame of ReferenceFor example, for Velveeta …
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#3—THEY ARE SUPER HEROES IN PLAIN SIGHT
SUPER SENSESSTRONGER FASTER
…AND WE CAN FIND THEM MUCH EASIER THAN EVER VIA BIG DATA
SUPER CONSUMERS VALUE FOR KRAFT
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THE SUPER CONSUMER FACT-BASE
The Economics of Super Consumers
Top 10% of Category HH’s
~30% of category
sales
~50-60% of category
profit
~10% ~50-60%
~40% of category growth
~40%~30%
Illustrative
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BUSTING MYTHS
I can’t win with them
Already saturated
in the category
Weird people with an unnatural
obsession
Rich consumers with money to throw around
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SUPER CONSUMERS ELEVATED VELVEETA
PROFIT POTENTIAL
HIGHER
HIGHER
LOWER
LOWER
GROWTH POTENTIAL
Impact ofSUPER
CONSUMERS
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THEY MADE US RETHINK…
THE FRAME OF REFERENCE
NEW PRODUCT DEVELOPMENT
GO-TO MARKET STRATEGY
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SUPER CONSUMERS IMPACT KRAFT ANALYTICS
0% FOCUS ON
SUPER CONSUMERS
90% FOCUS ON
SUPER CONSUMERS
AFTERBEFORE
TODAY KRAFT IS AN INDUSTRY LEADER, IDENTIFYING TRENDS AS THEY HAPPEN
4 MONTHS
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SUPER CONSUMER: EXPAND ACROSS RESEARCH TYPES
IDENTIFYING TESTING TRACKING
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THEY CHANGED HOW WE EVALUATE INNOVATION
A
(Total Consumers) (100)
Overall Purchase Intent (%)
Definitely Would Buy 70
Probably Would Buy 25
Might or Might Not Buy 2
Probably Would Not Buy 2
Definitely Would Not Buy 1
(Favorable Consumers) (82)
Claimed Trial Units 2.5
25Claimed Trial Frequency (pre use)
Concept A$5.99*
Super Consumers
SIMPLE AUGMENTS TO EXISTING PROCESSES CAN TURBO CHARGE IMPACT
FOR EXAMPLE:…SUPER CONSUMERS MAY CHANGE YOUR VIEW ON INNOVATION OPTIONS/ACTIONS
WHAT’S NEXT?
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SUPER CONSUMERS – TODAY AND TOMORROW
Preliminary
Preliminary
TODAY TOMORROWINTERIM
Dictated by Demand
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25Kraft\KHC0004 Phase 1 Findings v3.pptx
5 KEY QUESTIONS THAT CAN BE ADDRESSED TODAY
1. How valuable is an incremental 1% HH of Super Consumers?
2. Why do Super Consumers buy disproportionately more?
3. What do Super Consumers buy? Products? Brands? Price tiers?
4. What is your current share with Super Consumers?
5. What is the ROI of winning 1% point of Super Consumers?
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R&D & PRODUCT INNOVATION IS IN THE WORKS
SUPER CONSUMERS
=> 50%They view the category as not just food, but as entertainment and education
=> 10%
• Focus marketing dollars• Pull back on trade promotion• Focus on closing distribution gaps
MARKETING $ HIT SUPER CONSUMERS
TRADE $ HIT SUPER CONSUMERS
TOTAL POINTS OF DISTRIBUTION GAP WITH KEY SUPER CONSUMER MARKETS
SUPER CONSUMERS
CATEGORY A
RESOURCE ALLOCATION KEY DECISIONS
FACT-BASE PERFORMANCEPreliminaryPreliminary
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POLL #3
What would be most helpful (check all that apply)?
More client case studies
More Super Consumer articlesA Super Consumer book
Super Consumer data/analytics products
Super Consumer strategy workshops
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STAY PART OF THE CONVERSATION!We’ll register you as part of our Super Consumer Circle by emailing us at [email protected]
• Be among the first to see the latest in research, trends and RESULTS that we are realizing with Super Consumers
• Gain easy access to the next 2-3 Harvard Business Review blogs, articles and potential books
• Engage with our Super Consumer thought leaders to ask questions, and make suggestions for improvements
• Join Us! For a Nielsen Twitter Chat on Friday, September 20th at 12:30pm EST. • Submit questions to @EddieYoonTCG. • Search for #NielsenChat to follow the discussion
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THANK YOU!
Q&A• If you have follow-up questions or want more information,
please contact your Nielsen Professional Services rep
• If you are not a current Nielsen client, please contact us
Phone: 800-553-3727
Email: [email protected]
OR, if you have any questions regarding the content of this webinar, you can also contact:
Eddie Yoon, email: [email protected]
Other Nielsen Contacts: [email protected]
