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UPCOMING WEBINARS. REVENUE MANAGEMENT OPTIMIZATION – OCT. BEYOND THE MIDDLE CLASS – NOV. 7TH. Super Consumers. Why 10% of Your Consumers Are Worth 5X More Than The Rest. September 17, 2013. Presentation Speakers. EDDIE YOON Principal The Cambridge Group . CANNON KOO Director, Analytics
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UPCOMING WEBINARS REVENUE MANAGEMENT OPTIMIZATION – OCT. BEYOND THE MIDDLE CLASS – NOV. 7TH
Super Consumers Why 10% of Your Consumers Are Worth 5X More Than The Rest September 17, 2013
Presentation Speakers EDDIE YOONPrincipal The Cambridge Group CANNON KOODirector, Analytics Kraft Foods GREG GALLAGHERCategory Director Kraft Foods
Super Consumers Why 10% of Your Consumers Are Worth 5X More Than The Rest September 17, 2013
Poll #1 Which best describes your consumer target? They drive >50% of category profitThey give powerful, predictive insights They are focused, findable & easy to reachThey can be easily linked with big data All of the above
What we’ll cover today SUPER CONSUMERS WHO ARE THEY? WHY YOU SHOULD STOP AND TAKE NOTE THE VALUE OUR CLIENTS HAVE SEEN WITH THEM
They may seem familiar… • HIGHLY INVOLVED HEAVY USER
But they are more POWERFUL 10% of HH typically drive 30% of sales and as much as 50% of profit SUPER CONSUMERS HIGHLY INVOLVED HEAVY USER ECONOMICALLY 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
Poll #2 What concerns you about Super Consumers (check all that apply)? They seem like weird peopleThey must be rich people They are saturated Not relevant for my category I can’t win with them I can’t find them
WHY you SHOULD STOP! AND TAKE NOTE
#1—THEY EXIST EVERYwhere Super Consumers – The Top 10% (Across 40 CPG Categories of $50B in Sales) • Other Non CPG : • Air Travel • Restaurants = 24% 44% 5% 9% Consumers Revenue = Consumers Revenue
#2—they can fix marketing myopia They Address the Pitfalls of ‘Marketing Myopia’ Harvard Business Review They Help Define the Best Frame of Reference For example, for Velveeta … All Melted Cheeses Velveeta
#3—They are super heroes in plain sight SUPER SENSES • STRONGER • FASTER …AND WE CAN FIND THEM MUCH EASIER THAN EVER VIA BIG DATA
The super consumer fact-base The Economics of Super Consumers Illustrative ~30% of category sales ~40% of category growth Top 10% of Category HH’s ~50-60% of category profit ~30% ~40% ~50-60% ~10%
Busting myths I can’twinwith them Rich consumers with money to throwaround Already saturated in the category Weirdpeoplewith an unnaturalobsession
Super Consumers elevated Velveeta Impact ofSUPER CONSUMERS HIGHER PROFIT POTENTIAL LOWER LOWER HIGHER GROWTH POTENTIAL
They made us rethink… • THE FRAME OF REFERENCE • NEW PRODUCT DEVELOPMENT • GO-TO MARKET STRATEGY
Super Consumers IMPACT KRAFT ANALYTICS 0% FOCUS ON SUPER CONSUMERS 90% FOCUS ON SUPER CONSUMERS 4 MONTHS BEFORE AFTER TODAY KRAFT IS AN INDUSTRY LEADER, IDENTIFYING TRENDS AS THEY HAPPEN
Super consumer: expand across research types IDENTIFYING TESTING TRACKING
They changed how we evaluate innovation Super Consumers Concept A $5.99* A (Total Consumers) (100) FOR EXAMPLE: …SUPER CONSUMERS MAY CHANGE YOUR VIEW ON INNOVATION OPTIONS/ACTIONS 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 Claimed Trial Frequency (pre use) 25 SIMPLE AUGMENTS TO EXISTING PROCESSES CAN TURBO CHARGE IMPACT
Super CONSUMERS – ToDAY AND TOMORROW Preliminary Dictated by Demand TODAY INTERIM TOMORROW
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? Kraft\KHC0004 Phase 1 Findings v3.pptx
R&D & product innovation is in the works • => 50% => 10% Preliminary • FACT-BASE • PERFORMANCE SUPER CONSUMERS SUPER CONSUMERS • They view the category as not just food,but as entertainment and education • RESOURCE ALLOCATION • KEY DECISIONS • 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 CATEGORY A
Poll #3 What would be most helpful (check all that apply)? More client case studiesMore Super Consumer articles A Super Consumer bookSuper Consumer data/analytics products Super Consumer strategy workshops
Stay part of the Conversation! • We’ll register you as part of our Super Consumer Circleby emailing us at superconsumers@thecambridgegroup.com • 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
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: superconsumers@thecambridgegroup.com OR, if you have any questions regarding the content of this webinar, you can also contact: Eddie Yoon, email: eyoon@thecambridgegroup.com • Other Nielsen Contacts: dennis.moore@nielsen.com