SUPER CONSUMERS WHY 10% OF YOUR CONSUMERS ARE WORTH 5X MORE THAN THE REST #Consumer360 Copyright ©2013 The Nielsen Company. Confidential and proprietary. Copyright ©2013 The Nielsen Company. Confidential and proprietary. Copyright ©2013 The Nielsen Company. Confidential and proprietary. PRESENTATION SPEAKERS Eddie Yoon Cannon Koo Greg Gallagher Principal The Cambridge Group and Category Creation Expert Director, Analytics Kraft Foods Category Director Kraft Foods #Consumer360 2 WHAT WE’LL COVER TODAY Copyright ©2013 The Nielsen Company. Confidential and proprietary. SUPER CONSUMERS ? Who are they? The value Kraft sees with them #Consumer360 3 WHO ARE THEY? #Consumer360 Copyright ©2013 The Nielsen Company. Confidential and proprietary. THEY MAY SEEM FAMILIAR… HEAVY USER HIGHLY INVOLVED #Consumer360 5 BUT THEY ARE MORE POWERFUL Copyright ©2013 The Nielsen Company. Confidential and proprietary. 10% of HH typically drive 30% of sales and as much as 50% of profit ECONOMICALLY HEAVY USER SUPER CONSUMERS HIGHLY INVOLVED EMOTIONALLY #Consumer360 6 LET’S DEBUNK THE MYTHS Copyright ©2013 The Nielsen Company. Confidential and proprietary. Weird people with an unnatural obsession Already saturated in the category Rich consumers with money to throw around Not relevant to my category or business I can’t win with them I don’t know where to find them #Consumer360 7 Copyright ©2013 The Nielsen Company. Confidential and proprietary. THEY ARE THE SUPER HEROES OF YOUR CATEGORY STRONGER FASTER #Consumer360 8 SUPER CONSUMERS VALUE FOR KRAFT Copyright ©2013 The Nielsen Company. Confidential and proprietary. Copyright ©2013 The Nielsen Company. Confidential and proprietary. SUPER CONSUMERS ELEVATED VELVEETA Impact of SUPER CONSUMERS Copyright ©2013 The Nielsen Company. Confidential and proprietary. HIGHER PROFIT POTENTIAL LOWER LOWER HIGHER GROWTH POTENTIAL #Consumer360 10 Copyright ©2013 The Nielsen Company. Confidential and proprietary. THEY MADE US RETHINK… The frame of reference New product development Go-to market strategy #Consumer360 11 Copyright ©2013 The Nielsen Company. Confidential and proprietary. BUSTING MYTHS I can’t win with them Already saturated in the category Rich consumers with money to throw around Weird people with an unnatural obsession #Consumer360 12 SUPER CONSUMERS IMPACT KRAFT ANALYTICS 0% focus on SUPER CONSUMERS 90% Focus on SUPER CONSUMERS Copyright ©2013 The Nielsen Company. Confidential and proprietary. 4 MONTHS BEFORE AFTER TODAY KRAFT IS AN INDUSTRY LEADER, IDENTIFYING TRENDS AS THEY HAPPEN #Consumer360 13 Copyright ©2013 The Nielsen Company. Confidential and proprietary. SUPER CONSUMER: EXPAND ACROSS RESEARCH TYPES IDENTIFYING TESTING TRACKING #Consumer360 14 Copyright ©2013 The Nielsen Company. Confidential and proprietary. IDENTIFY CONSUMER GROUPS AND EXPAND CONSUMPTION POTENTIAL Eating Occasions Super Consumer Index Carried Lunch 154 Snack 143 Breakfast 114 In-Home Lunch Dinner 98 82 #Consumer360 15 WHAT’S NEXT? Copyright ©2013 The Nielsen Company. Confidential and proprietary. Copyright ©2013 The Nielsen Company. Confidential and proprietary. IMAGINE SHARING THIS WITH YOUR CEO… 1 FACT-BASE SUPER CONSUMERS 2 => 50% => 10% They view the category as not just food, but as entertainment and education PERFORMANCE 30% 20% 10% 20% 15% 15% Copyright ©2013 The Nielsen Company. Confidential and proprietary. 40% 30% 20% 10% 0% RESOURCE ALLOCATION 20% COMPETITOR Z 4 15% 10% KEY DECISIONS SUPER CONSUMERS 35% 30% SHARE OF CATEGORY SHARE OF SUPER CONSUMERS 0% BRAND A 3 20% 20% 2012 2013 YTD MARKETING $ HIT SUPER CONSUMERS TRADE $ HIT SUPER CONSUMERS TOTAL POINTS OF DISTRIBUTION GAP WITH KEY SUPER CONSUMER MARKETS • Focus marketing dollars • Pull back on trade promotion • Focus on closing distribution gaps CATEGORY A #Consumer360 17 Copyright ©2013 The Nielsen Company. Confidential and proprietary. SUPER CONSUMERS EFFECTIVELY DRIVE GROWTH SIMPLICITY SPEED CROSS-FUNCTIONAL This serves as a north star and tie breaker for all strategy development, resource allocation and execution #Consumer360 18 HOW CAN YOU MAKE THIS WORK FOR YOU TOMORROW? #Consumer360 Q&A #Consumer360