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Marketing to Affluent Consumers

Marketing to Affluent Consumers. Marketing to Affluent Consumers. Definition of Affluent Consumer Slide 3 Income Segments Slide 4 Total Net Worth Segments Slide 5 Discretionary Spending Segments Slide 6 Affluent Households’ Vehicles Slide 7 Expenditure Plans Slide 8

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Marketing to Affluent Consumers

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  1. Marketing to Affluent Consumers

  2. Marketing to Affluent Consumers • Definition of Affluent Consumer Slide 3 • Income Segments Slide 4 • Total Net Worth Segments Slide 5 • Discretionary Spending Segments Slide 6 • Affluent Households’ Vehicles Slide 7 • Expenditure Plans Slide 8 • Cultural & Leisure Activities Slide 9 • Shopping Attitudes Slide 10 • Psychographic Segments Slide 11

  3. Definition of Affluent Market According to the Mendelsohn Affluent Survey, the definition is: • Households with $100,000 or more in total income: 23,900,000 households, or 20% of total households. • Heads of House with $100,000 or more in total income – 43,100,000, or 19% of total adults. Source: Mendelsohn Affluent Survey, 2009 Annual Report

  4. Income Segments in the Affluent Marketplace Household Percent of Percent of Estimated Total Income Segment Total HHs Affluent HHs HH Income $100,000-$149,000 12% 59% $1.7 trillion $150,000-$249,000 6% 31% $1.4 trillion $250,000 or more 2% 10% $1.5 trillion Source: Mendelsohn Affluent Survey, 2009 Annual Report

  5. Number of Affluent Households byTotal Net Worth* Under $250,000 4.7 million $2,000,000 or more 2.8 million $250,000 - $499,999 5.1 million $500,000 - $999,99 6.9 million $1,000,000 - $1,999,999 4.3 million *Definition of Net Worth = all household assets owned by all household members, less all debts the household may owe. Source: Mendelsohn Affluent Survey, 2009 Annual Report

  6. Discretionary Spending Segments Ipsos Mendelsohn estimates that the affluent market spent $1.2 trillion across all the expenditures measured, which are aggregated into the following 12 summary categories. • Home-related 19% • Personal Insurance 18% • Travel 16% • Apparel 10% • Charitable Donations 8% • Entertainment & Dining 7% • Computers, electronics 5% • Personal Care, Wellness 3% • Watches, Jewelry 3% • Alcoholic Beverages 2% • Weddings 2% • Other 7% Source: Mendelsohn Affluent Survey, 2009 Annual Report

  7. Affluent Households’ Vehicles Total Vehicle Units (in millions) Source: Mendelsohn Affluent Survey, 2009 Annual Report

  8. Plans for the Next 12 Months Ipsos Mendelsohn has been asking respondents about significant life event or expenditures they or someone else in their household plan to experience in the next 12 months. Respondent plans to do in next 12 months (millions) Invest in stocks/ mutual funds 13.9 Take a trip/ vacation outside the U.S. 12.2 Redecorate home 7.3 Remodel or renovate other room(s) 7.0 Buy or lease a new car, SUV, or truck 6.3 Remodel or renovate bathroom 6.2 Take a cruise 6.0 Remodel or renovate kitchen 4.8 Change careers or jobs 3.6 Move or relocate 2.3 Have a baby 1.9 Buy a new home 1.8 Start a new business 1.7 Retire 1.3 Source: Mendelsohn Affluent Survey, 2009 Annual Report

  9. Cultural and Leisure Activities Visited/Attended in the Past Year (in millions) Source: Mendelsohn Affluent Survey, 2009 Annual Report

  10. Shopping Attitudes Ipsos Mendelsohn’s new psychographic section highlighted the following information about shopping. Affluent who agree with statement (millions) When I discover a brand I really like, I keep buying it 37.5 When it comes to quality, you get what you pay for 34.5 Good value for the money is more important than price 32.8 Sometimes I treat myself to something, even though I don’t need it 28.4 Owning good quality things brings me enjoyment 25.1 I look for superior service when I shop 24.5 I prefer to buy American-made products 24.4 I buy the brands I grew up with 16.6 I don’t tend to seek the advice of others when I am making a purchase 16.0 I am willing to spend more money for gourmet food 14.1 I am willing to pay more for luxury toiletries and cosmetics 12.6 I derive enjoyment from any kind of shopping 11.4 Source: Mendelsohn Affluent Survey, 2009 Annual Report

  11. Affluent Psychographic Segments Ipsos Mendelsohn determined that the affluent marketplace divides itself into the following four psychographic segments, based on answers to 100+ statements. • Affluent StyleSetters – 11.8 million (27%)Enjoy keeping up with the latest fashions; get enjoyment from shopping for clothes; have an excellent sense of style; people often ask my advice on fashion and what they should wear; prefer to buy designer or luxury brands. • Affluent Traditionalists – 11.6 million (27%)Buy the brands I grew up with; stock market is too risky for me; tend to buy based on price, not quality; like to take vacations in the U.S. rather than abroad; not very interested in current affairs and politics. • Affluent Individualists – 10.0 million (23%)Tend to take the lead in decision-making; environmental issues are overblown; try to keep up with technological developments; keep up with financial news; am a risk taker. • Affluent Globalists – 7.6 million (18%)Would be willing to pay more for environmentally friendly products; minimizing my impact on the environment is an important part of my life; traveling internationally helps me learn about other cultures; enjoy eating foreign cuisines; believe in protecting the environment. Source: Mendelsohn Affluent Survey, 2009 Annual Report

  12. Thank You!

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