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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Title of PresentationCopyright © 2012 The Nielsen Company. Confidential and proprietary.
The French Connection
A View Into Québec
Carman Allison
Director of Consumer Insights
August 2012
A View Into Québec
Carman Allison
Director of Consumer Insights
August 2012
Today’s presenter
Carman AllisonDirector, Consumer Insights, Nielsen, Canada
Carman Allison is responsible for creating and delivering thought leadership to manufacturer and retailer clients and at CPG industry events. A frequently sought-after speaker, Carman is often quoted in the Canadian press on consumer trends including a monthly column in Canadian Grocer.
Carman has more than 20 years of experience in the consumer research industry with Nielsen, where he held various account management and analysis roles.
Québec : A Distinct Society
L’exception qui confirme la règle
One size does not fit all
Shopping behaviour and unique consumption
Distinct media behaviour
Market size and growth
Economic impact on the consumer
Emerging consumer segments
Our objective todayHelp you connect with Québec consumers and shoppers
1
2
3
4
5
Québec : A Economic Power
#1Canada’s largest land mass province
Canada’s largest land mass province
#2Canada’s 2nd most populous province
Canada’s 2nd most populous province
28.8 27.9 26.4 25.3 24.1 23.6
1961 1971 1981 1991 2001 2011
Despite declining in importance, close to 1 in 4 Canadians live in Québec
Source: Statistics Canada. 2011 Census
7.9 million in 2011
7.9 million in 2011
• will surpass 8 million in 2012
1.8
3.2
0.9
2.9
4.75.7
5.2
6.7
10.8
7.0
11.6
0.0
8.3
NL PEI NS NB Que Ont Man Sask Alta BC YT NWT Nvt
5 year population growth rates
Canada 5.9
Source: Statistics Canada – The Canadian Population in 2011 Analytical document
Québec lags population growth – an eastern trend
Western Canada has now surpassed the East as younger Canadians migrate for jobs
30.6%
East WestOntario
30.7%38.4%
• Migration• Fertility• Immigration
• Immigration
Lower levels of unemployment in Western Canada
Source: Statistics Canada – The Canadian Population in 2011 Analytical document
QuébecEconomic Impact
Québec lags retail sales growth – faced with higher cost of living increases
Source: Statistics Canada – Economic Observer Report – May 2012
1.21.5
2.0
3.1
Canada Quebec Canada Quebec
Retail TradeRetail Trade Inflation (CPI)Inflation (CPI)
Quebec increased PST +1% in Jan ‘12 to 9.5%
1.52.2 2.0 1.7
-0.8
2.02.8 2.5 2.7
0.4
Total Housing Food Health &Personal
Care
Energy
Canada Quebec
Source: Statistics Canada – Consumer Price Index June 2012
Québecers wallets are strained with having to pay more for life’s essentials
Inflation by sectorInflation by sector
Food and health make up a greater portion of the average expenditure in Québec
10.5
21.3
8.1
4.9
15.6
3.1
16.9
11.6
19.5
7.85.2
16.1
4.2
16.3
Food Shelter Householdoperation /
Furnishing andequipment
Clothing Transpor tation Health care Personal incometaxes
Canada Quebec
Source: Statistics Canada 2010 - Survey of household spending
% of Household Expenditures
Lower home values means less consumer debt ($60k vs. $100k National average)
The gas tank may be full, but the wallet is empty – especially in Québec
Source: gasbuddy.com – average price pre litre regular grade fuel - August 10, 2012
Price Per Litre
Canada $1.28
Quebec $1.40
10% higher
65.3%65.3%
% in workforce% in workforce
66.8 Canada
Source: Statistics Canada – Economic Observer Report – June 2012
7.27.7
Unemployment
Canada Quebec
-0.8 -0.3 vs. 2010
Québec’s smaller workforce is facing higher levels of unemployment
Québecers earn 10% less than the average Canadian and the gap is widening
$888
$803 $802$875
2011 2012 2011 2012
AverageWeekly Earnings
AverageWeekly Earnings
CanadaCanada QuebecQuebec
+2.4 +0.0
Source: Statistics Canada – Economic Observer Report – June 2012
18.6 18.3 18.8
29.3 30.6 28.2
52.1 51.1 53.0
Quebec Montreal Rem Quebec
About Same
Better Off
Worse Off
Compared to a year ago are Quebecers financially…
The impact: A greater portion of Québec households are worse off financially than a year ago
Source: Nielsen PanelViews Survey – Canada - May 2012
Consumer Profile
Québec
85%
>
25%
2nd
3rd
of Quebecers mother tongue is Frenchof Quebecers mother tongue is French
greatest portion of multilingual Canadiansgreatest portion of multilingual Canadians
speak 3+ languages on Montreal Islandspeak 3+ languages on Montreal Island
most taught language in the worldmost taught language in the world
most spoken language in the U.S.most spoken language in the U.S.
French: Québec’s Official Language
French: Official Language Policy Impact
Quebec’s Language Policy protects the long-term viability of the French language within it’s borders.
Adapting and thriving within the French culture
• French must ALWAYS have the greatest prominence over any other language
• Commercial advertising and public signs/posters must be in French
• Every inscription on a product, container or wrapping must be in French
• The name of an enterprise must be prominently displayed in French
Household Size QUEBECIndex Quebec
vs. Canada
1 member 27.9 31.9 114
2 members 34.4 35.9 104
3-4 members 29.7 26.7 90
5+ members 8.1 5.5 69
Distribution of shoppers
Households in Québec are generally smaller than the rest of Canada with over 2/3rds being 1-2 members
Source: Nielsen Homescan Account Shopper Profiler, 52 weeks ending December 31st 2011
29.8 36.4 36.0 36.7
63.370.2 63.7 64.0
Canada Quebec Montreal Rem Quebec
Female
Male
Primary Household Shopper
Quebec has a higher portion of primary shoppers who are male – consistent both in urban and rural areas
Source: Nielsen PanelViews Survey - Canada - May 2011
20.5 16.8 19.2 15.9
68.7 68.2
12.2 14.8 12.1 15.9
67.3 68.5
1996 2011 1996 2011
15-64
>14
65+
CanadaCanada QuebecQuebec
Québec has a proportion of seniors and is aging at a faster rate than the rest of Canada
+16
+3
+1
5 yr growth
Source: Statistics Canada. 2011 Census
By 2025, 50% of Quebec’s population will be > 45 years of age
% foreign born% foreign born
19.8
11.5
Canada
Quebec
% immigrant origin% immigrant origin
4
2.1
5.1
4.1
36.8
6.1
40.8
3.1
3.4
9.5
5.7
36.0
14.6
27.4
United States of America
Central America
Caribbean and Bermuda
South America
Europe
Africa
Asia / Middle East
Québec has a lower percent of immigrant population – driven primarily by language
Source: Statistics Canada. 2006 Census
30% of Canada’s Jewish population
Visible minorities varies from east to west
Source: Statistics Canada. 2006 Census
Shopping Behaviour
Québec
6.1
24.9
37.931.1
Maritimes Quebec Ontario West
$ % Chg +2 +3 +2 +3
U % Chg -1 +2 -1 +1
Québec accounts for 25% of CPG sales in Canada and is leading dollar growth with West
CPG Regional ImportanceCPG Regional Importance
Source: Nielsen MarketTrack, Regional All Channels, 52 weeks ending March 10, 2012 - Total Tracked Sales Total Tracked Sales excluding Fresh Random Weight
Index106*
* 23.6 of the population
Québec households spend less per trip but it’s offset by a higher trip frequency – spending more overall
Spend Per HouseholdSpend Per Household
$9,209
2% more than Canada2% more than Canada
189.8Trips
$48.51Basket
5% more5%
more
3% less3% less
Source: Nielsen Homescan Channel Watch, Quebec All Outlets, Total Expenditures, 52 weeks ending March 31st 2012.
43.2
7.212.6
8.6
28.3
46.0
9.4 9.0 8.7
27.1
GROCERYSUPERMARKETS
DRUG STORES MASS MERCHw/SUPERS
WAREHOUSECLUBS
OTHERCHANNELS
Canada Quebec
While Mass is largely underdeveloped in Québec , the Drug and Grocery channels hold strong
Retail Channel ShareRetail Channel Share
Source: Nielsen Homescan Channel Watch, All Outlets, Total Expenditures, 52 weeks ending March 31st 2012.
• Quebecers spend 9% more in Grocery and 27% more in Drug stores
Québec shoppers are becoming more cautious – spending less is the goal
Spending Less on CPG?Spending Less on CPG?
71%Yes!
+6 points in 12 months+6 points in 12 months
• 74% only buy on sale
• 62% use coupons
• 61% stock up on deals
• 50% seek out stores with low prices
• 50% buy store brands
• 74% only buy on sale
• 62% use coupons
• 61% stock up on deals
• 50% seek out stores with low prices
• 50% buy store brands
Source: Nielsen Panel Views Survey – May 2012
Saving StrategiesSaving Strategies
The consumer impact on CPG in Québec
35%
49%
+9%
+6%
+7%
of dollar sales are sold with a price cutof dollar sales are sold with a price cut
of units sales are sold with a price cutof units sales are sold with a price cut
growth in TPR sales - fueling growthgrowth in TPR sales - fueling growth
increase in the coupon activityincrease in the coupon activity
growth from Discount Retailers growth from Discount Retailers
Source: Nielsen MarketTrack & Homescan –Quebec - Q1 2012 CPG Review
Unique Consumption
Québec
158
139
125
122
10994
74
56
43
Cheese - Random Weight
Cheese - Exact Weight
Butter
Yogurt
Milk
Ice Cream
Frozen Yogurt
Cottage Cheese
Sour Cream
The fact French consume more cheese isn’t just a stereotype – very different Dairy consumption
100
Source: Nielsen MarketTrack, Quebec All Channels vs. ROC, Total Tracked Sales (excl Alcohol Bev), 52 Weeks ending May 5th 2012.
100
Source: Nielsen MarketTrack, Quebec All Channels vs. ROC, Total Tracked Sales (excl Alcohol Bev), 52 Weeks ending May 5th 2012.
Not necessarily French Toast, but Québecers tend to eat more Toasts at breakfast
271160
126120
9266
22
15035
Sweet Spreads
Bread - Commercial
Peanut Butter
Jams & Jellies
RTE Cereal
Hot Cereal
Pancake & Waffle Mix
Pure Maple Syrup
Table Syrup
Poutine and Fondue are among regional specialties – Comfort Food
100
Source: Nielsen MarketTrack, Quebec All Channels vs. ROC, Total Tracked Sales (excl Alcohol Bev), 52 Weeks ending May 5th 2012.
643
459
350
238
166
158
Gravy - C&B
Fondue
Stew & Meatballs
Bouillon Products
Sauce & Gravy Mix
Dry Soup Mixes
100
When it comes to what Québecers drink, there are some notable differences
Source: Nielsen MarketTrack, Quebec All Channels vs. ROC, Total Tracked Sales (excl Alcohol Bev), 52 Weeks ending May 5th 2012.
386
242
193
134
111
63
62
Tomato Juice
Vegetable Juice
Carbonated Water
Instant Coffee
R&G Coffee
Tea
RTE Iced Tea
100
Source: Nielsen MarketTrack, Quebec All Channels vs. ROC, Total Tracked Sales (excl Alcohol Bev), 52 Weeks ending May 5th 2012.
562
199
134
121
101101
82
46
14
Veal
Fresh Seafood
Beef
Pork
Chicken
Ham
Lamb
Turkey
Stuffing Mixes
Different meat consumption habits – Thanksgiving is much less important among French families
Connecting Brands & Consumers
Québec
Ad for Labatt (St-Jean Baptiste – Quebec holiday on June 24)
-The 24 for the 24
-Proud to be “Blue”
Resonate with Québecers by speaking their language
The preference for Québec-based names extends into the grocery aisle
Source: Nielsen MarketTrack; National vs. Quebec All Channels; 52 Weeks Ending June 2, 2012;
All Channels = Grocery Banners + Drug + MM/GM/WC/TRU
National Quebec
Quebon 11 1 Yoplait 7 2 Pepsi Cola 5 3 Kelloggs 1 4 Lactantia 51 5 Natrel 23 6 Pom 82 7 Oasis 36 8 Tropicana 12 9 Ptit Quebec 105 10 Lays 13 11 Gadoua 136 12 Beatrice 10 13 Cashmere 25 14 Saputo 58 15 Coca Cola 4 16 General Mills 9 17 Driscoll 21 18 Vachon 69 19 Van Houtte 60 21 Campbells 6 22 Black Diamons 16 23 Kraft 3 24 Liberte 43 25
Private Label share is weaker in Québec and lags National Brand growth
+3% +2% +2% +2% +4%
Dev Index 100 105 77 100 117
National Brand +3% +2% +4% +2% +3%
Private Label $ SharePrivate Label $ Share
Source: Nielsen MarketTrack, National All Channels, 52 weeks to March 10th, 2012 * Excludes Random Weight Fresh
Québecers are not getting the same price advantage of buying Private Label as the rest of Canada
Gap: 6% 7% 5%
Private Label Price DiscountPrivate Label Price Discount
Source: Nielsen MarketTrack, National All Channels 52 weeks to March 10th, 2012 – Avg Price Per Tonnage TPR = Temporary Price Reduction
Media Behaviour
Québec
20%20%
Share of VoiceShare of Voice
25% of the population
When it comes to media spend, Québec is not getting their fair share of voice
By sector:
Food 22%
Beverages 19%
Restaurants 19%
Québecers have created their own TV and Star universe
• “Both the commercial (TV) and the CBC audience prefer local content and local actors.
– It’s a cocoon, and it’s 180 degrees different from English Canada.”
• In English Canada, American hits aired by commercial broadcasters, such as Survivor, Grey’s Anatomy and Criminal Minds, rule the ratings.
• In francophone Canada, that list is dominated by Quebec game shows, talk shows, reality contests, soap operas and dramas, some of them created by Radio-Canada but the bulk of them produced by the commercial broadcaster TVA.
• 10 per cent of Quebec box office is spent on Quebec films
It is difficult to use North American entertainment properties to reach Québecers
QuebecQuebec CanadaCanadaTop TV Shows
Top TV Shows
Source: Nielsen Media Research Borealis, 36 weeks to May 27, 2012
1. NFL Super Bowl2. Academy Awards3. NFL Super Bowl Pre4. Grammy Awards5. Big Bang6. Golden Globe Awards7. Survivor8. Amazing Race9. American Idol10. Grey’s Anatomy
1. Bye Bye 20112. Star Academie3. On connait la chanson4. Celine: 3 gars et un nouveau show5. Occupation double au Portugal6. SP: Enfants de tele7. Tricheur, Le8. Gala Artis 20129. SP: Infoman10. Les Chefs
Smartphones will continue to grow but the potential is significantly less traction in Québec
24% 24%
48%
17%22%
39%
Currently Own Plan to Buy Potential
Canada Quebec% Smartphone Ownership
Canada 23%Quebec 14%
Use their phone to access the internet
Source: Nielsen PanelViews Survey, June 2011 – Canada
Top online activities relating to promotions and search
Quebec Canada
Recipe Search 59% 60%
Product Research 50% 52%
Look for Coupons 41% 49%
Promotions on Retailer Sites 40% 47%
Purchase from Online Store 34% 43%
Read Product Reviews 29% 38%
Consumers in Québec are less willing to use online sites to look for promotions or product information
Source: Nielsen PanelViews Survey, June 2011 – Canada
Social Media lags development in Québec
56%• visit social media sites• 4% less than the national average
35%
Source: June 2011 Nielsen PanelViews Media Survey - Individual responses
• agree it’s becoming more important• 6% less than the national average
39%
40%
35%
22%
24%
22%
21%
38%
34%
25%
23%
22%
18%
41%Surveys
Forward articles
Receive coupons
Receive/Share Recipes
Purchases
Join Loyaty group
Join retailer group
Canada
Quebec
Québec’s social media usage is very similar to Canada – more likely to be engaged with recipes
What are consumers doing on social media?
Source: June 2011 Nielsen PanelViews Media Survey - Individual responses
Summary
Québec
• Continued focused on value and bang for the buck
• Promotional activity will remain a key driver of sales
• Expect continued high low pricing strategies due to less
• Discount retailing expected to explode in the next year (new stores)
Québec: Making the Connection
Still economically stressed and cautious
• Smaller store formats and less need for larger sizes
• Key categories and segments are posed for growth: Health and wellness, portion control, smaller sizes, OTC etc.
• Look for ways to be more gender neutral – males are 36% of primary shoppers
Older and smaller households
• Different ethnic groups than the rest of Canada – unique needs, flavours, formats etc. need to be taken into consideration
• Fewer language barriers - French will still reach the majority of immigrants
Québec: Making the Connection
Less multiculturally diverse and less challenged reaching
• More opportunities to engage the shopper with in-store activities: displays, sampling etc.
• Greater portion of trips and dollars spent in Grocery and Drug channels – allocate your sales support and trade dollars appropriately
Shop more often
• Tastes and food preferences are differ from the rest of Canada – more European based
• Recognize that your category may be consistently underdeveloped
• Look for ways to anchor to core categories – Frozen Fruit + Yogurt = Smoothies
• Be prepared to rebrand if you can’t gain equity OR you’re just too English. Example: SDM to ‘Pharmaprix’ -- Staples to ‘Bureau En Gros’
Québec: Making the Connection
Unique consumption and brand preference
• Independent product, results in a different system of stars, events and cultural references – reach Quebecers through local TV and print
• Sponsorship and endorsement needs to a local a celebrity
• Media needs to be a genuine French message – not a simple creative translation from English Canada
Media: Local, Local, Local
Québec: Making the Connection
• Despite lower levels of smartphone and social media penetration, Quebecers are willing to engage if the French content is there
• Web communications and apps need to be bi-lingual in order to maximize reach and use.
Less connected but willing
‘L’exception qui confirme la règle’
‘One size does not fit all’
Basically…
You need to localize in order to connect with the French consumer
Q&A
Thank you for attending
•If you have follow-up questions or want more information, please contact your Nielsen Professional Services Representative.
•If you are not a current Nielsen client, please contact us:
In the U.S. call: 800.553.3727 In Canada email: [email protected]
OR if you have any questions regarding the content of this webinar, you can also contact:
Carman Allison, email: [email protected]