quantifying premium positioning global trends and insights – consumer and retail - michael...

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Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Title of PresentationCopyright © 2012 The Nielsen Company. Confidential and proprietary.

Michael Walton,Executive Director, Nielsen PacificAugust 2012

Premium Product FundamentalsGlobal Consumers & Opportunities

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Today

Introducing the consumer story ….

4 key stories that frame our opportunity

Retailer Adaptations

Observations and implications

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4 Key Stories

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By 2020, the global middle class will be a staggering 52%

of the world’s population

Source: Brookings Institution

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Women control almost $12trillion of the $18 trillion in global consumer spending

Source: Deloitte Touche Tohmatsu

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The world adds the equivalent of seven New York Cities to the planet every year

Source: Intuit

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Mobile phones will overtake PCs as the most common Web access devices by

2015

Source: Gartner

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Retail Adaptations

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Available

Accessible

Connected

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Mobile

Customized

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Observations & Implications

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How do consumers feel about spending?

Not great. But it does not impact all spending behaviour …

Source Nielsen Global Confidence 2Q 21012

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Can premium play with low confidence levels?

#1 Yes.

Source Nielsen : US Retail Sales 2012

Nielsen analysis of Australian shoppers show : • Those that buy macadamias are far more likely to have

higher socio-economic households• Those that buy macadamias interact with mixed nuts,

cashews and almonds

Nielsen analysis of US shoppers show :• $100k+ households only group to be growing grocery

spend. This is our target demographic

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Can premium play with low confidence levels?

#2 Yes, Consumers understand value is more than price …

83%+ 10%Premium6%Chocolate

99%+115%Pod Coffee

18%+ 5 %Premium-4%Coffee

44%+ 12%Speciality0 %Eggs

Price Premium to Mainstream

Unit Change

Unit Change

Source Nielsen : US Retail Sales 2012

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Where does Private Label thrive ?

Where Does Private Label Succeed

1. Brands or categories with low differentiation2. Categories or brands with typically low consumer engagement3. Where retailers are fairly consolidated

4. When consumers feel it offers adequate quality for a price5. When consumers feel that buying it has low or nil social stigma

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Connecting with consumers

Humour, A Story and an Emotive Link are Proven.

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To Wrap

Some of your Nut Rush metrics …

•Middle class growth superb•Female spending power growth superb•Developed countries need to be all about affordable indulgence and reward, but consumers you tend to over index with are already boosting spending•Developing countries offers very large prizes, particularly through new urban cities – through flexible packaging and retailing channels. Online will be a superb and inexpensive pathway here•Macadamia’s are comparatively “new” and that is highly attractive for companies planning new products.

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quantifying premium positioning global trends and insights – consumer and retail - michael...

Business

nielsen company

nielsen pacificaugust

gartner copyright

premium play

year6 source

low confidence levels

low differentiation

low consumer engagement