SUMMARY OF FINDINGS 2nd QUARTER 2014 Riedel Marketing Group Riedel Marketing Group COOKWARE MARKET TRACKER Table of Contents PURCHASE INCIDENCE Percent of primary grocer shoppers in U.S. who purchased cookware for their use or to give as a gift WHAT THEY BOUGHT Average number of cookware items purchased by a single household Other food prep categories purchased in addition to cookware Type of cookware purchased Material/fabrication of cookware purchased Coating of cookware purchased Type of nonstick cookware purchased Price paid Brand recall Brand of cookware purchased WHY THEY BOUGHT Reason for purchase Reason for cookware purchase for self Reason for selecting the item they selected HOW AND WHEN THEY MADE THE PURCHASE DECISION Whether the purchase was planned or impulse When the decision on the specific brand and item was made WHERE THEY BOUGHT Where cookware purchased (retail or online) Retail channels where cookware was purchased Retail stores where cookware was purchased Online etailers/web sites where cookware was purchased 2 © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER About the Author A.J. Riedel Senior Partner of Riedel Marketing Group A 25 year industry veteran, A.J. is a highly regarded marketing authority in the housewares industry. A.J. helps housewares executives avoid making costly product and marketing mistakes so they can accomplish their business objectives, make their numbers, and maybe even get promoted. When clients are having trouble making product, packaging, or marketing decisions because they don’t have enough information, she provides the market intelligence and consumer insight they need to make an informed decision. She’s been helping executives make better decisions at Cuisinart, Jarden, DKB, Bradshaw, Progressive, Chef’N, and many other housewares companies for over 22 years. 3 © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER About Riedel Marketing Group For over 22 years, Riedel Marketing Group (RMG) has been providing housewares companies with market and consumer data and insight that helps them make informed product and marketing decisions with confidence. Housewares manufacturers, ranging from large Fortune 500 corporations to smaller privately owned companies, seek our expertise. Past and current clients include Cuisinart, Jarden, Newell Rubbermaid, Progressive International, Chef’N, Jokari, Dexas, Bradshaw International, and the International Housewares Manufacturers Association (IHA). 4 Specializes Exclusively In Housewares: RMG is the only market research company that specializes exclusively in the housewares industry. Knowledgeable about Housewares Industry: I understand market dynamics, channels of distribution, consumers, history and trends, and marketing issues. Expertise in Research and Analysis: I have extensive experience with online surveys, product concept tests, market and competitive assessments, and home-use tests. Actionable Insight: I answer not just the “what” questions but also the “so what” (what are the ramifications of the data) and “now what” (what do we do as a result of this study) questions. Proprietary Consumer Panel: RMG is the only market research company with a proprietary housewares-focused Market Research Online Community (MROC). © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER Methodology Online surveys were conducted with primary grocery shoppers in the U.S. in April (April 9 -12); July (July 29 - 31); and October (Oct. 3 - 6). The primary grocer shopper is the person in the household who is responsible for purchasing more than 50% of the household's groceries. The research is conducted with primary grocery shoppers because they are typically the primary shopper for housewares products in addition to grocery products and are also likely to be the person responsible for food preparation for the household. This does NOT mean that the survey respondents who purchased cookware in the third quarter bought them from a grocery store. Respondents were screened based on past quarter purchase behavior. They had to have purchased cookware, bakeware, and/or kitchen tools or gadgets either for themselves/their household or to give as a gift in the previous quarter. The base for most of the bar charts is the number of respondents who answered the battery of questions about the first and second cookware items they purchased in Q3. In the cases where the base (N) is different, the definition of the base is shown in the title of the bar or pie chart. Q1 Q2 Q3 1,467 1,072 1,141 # of respondents who purchased cookware 351 374 378 # of respondents who purchased 1 or 2 cookware items 421 386 340 Total Sample Size 5 © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER Definitions of Types of Cookware The question about cookware type included images to visually depict the different kinds of cookware within each product type. Cookware Sets Fry & saute pans, skillets, Chef's pans, braziers, grill pans, woks Sauce pans, sauciers, stockpots, Dutch ovens, double broilers, multi-pots, pasta cookers All other cookware 6 © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER 35% of primary grocery shoppers in the U.S. purchased cookware in the 2nd quarter of 2014, up from 24% in the 1st quarter. Did you purchase any cookware either for yourself/your household or to give as a gift in the previous quarter of this year? N = 1072 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 No 76% 65% 0% 0% Yes 24% 35% 0% 0% 7 © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER Three quarters of cookware purchasers also bought bakeware and/or kitchen gadgets in 2nd quarter. The same was true with cookware purchasers who bought in the 1st quarter. What did you purchase? N = 374 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 32% 26% 0% 0% Cookware and bakeware 7% 13% 0% 0% Cookware and kitchen tools/gadgets 36% 35% 0% 0% Cookware 25% 26% 0% 0% Cookware, bakeware, and kitchen tools / gadgets 8 © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER Two thirds of cookware purchasers purchased more than one cookware item in 2nd quarter. The same was true in 1st quarter. In total, how many cookware items did you purchase during the previous quarter of this year? N = 374 100% Average # of items: Q1: 2.5 Q2: 2.6 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 5 or more 12% 17% 0% 0% 4 13% 11% 0% 0% 3 20% 19% 0% 0% 2 22% 23% 0% 0% 1 32% 31% 0% 0% 9 © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER In total, fry & sauté pans, skillets, Chef's pans, braziers, grill pans, and woks accounted for more than one third of the cookware purchased in Q1 and Q2. What type of cookware did you purchase? N = 386 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 Fry & saute pans, skillets, Chef's pans, braziers, grill pans, woks 38% 35% 0 0 All other cookware 31% 34% 0 0 Sauce pans, sauciers, stockpots, Dutch ovens, double broilers, multi-pots, pasta cookers 17% 16% 0 0 Cookware sets 14% 15% 0 0 10 Total Year © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER The most popular set size was 6 to 9 pieces, same as in Q1. What type of cookware did you purchase? N = 386 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 Pots, Pans, and All Other 86% 85% 0% 0% Cookware sets 14% 15% 0% 0% What type of cookware did you purchase? N = 56 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 11 2014 Q1 2014 Q2 2014 Q3 2014 Q4 12+ 20% 20% 0% 0% 10-11 16% 18% 0% 0% 6-9 34% 38% 0% 0% 3-5 19% 13% 0% 0% 1-2 11% 13% 0% 0% © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER Stainless steel cookware accounted for 35% of all cookware purchases in both the 1st and 2nd quarters. What material was the cookware made of? Excludes "don't know" answers N = 293 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 12 2014 Q1 2014 Q2 2014 Q3 2014 Q4 Stainless steel 34% 34% 0% 0% Clad, Multi-ply, or Tri-ply (2 or more layers of metal) 14% 21% 0% 0% Aluminum 16% 12% 0% 0% Hard anodized aluminum 12% 10% 0% 0% Cast iron 10% 10% 0% 0% Enameled cast iron 8% 9% 0% 0% Other 6% 4% 0% 0% © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER More than 70% of the aluminum, clad, and other metal cookware purchased in Q1 and Q2 was coated; the majority of the coated cookware had traditional non-stick coating. Was the cookware coated or uncoated? N= 184 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 Uncoated 29% 23% 0% 0% Coated/non-stick 71% 77% 0% 0% What type of non-stick coating does the cookware have? Coated cookware only Excludes "don't know" answers N = 114 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 Traditional non-stick such as Teflon 67% 73% 0% 0% Ceramic non-stick 33% 27% 0% 0% 13 © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER 41% of the cookware purchased in Q2 was priced at $50 or more, up from 31% in Q1. How much did you pay? (Among respondents who remembered what they paid) N= 210 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 $100 or more 16% 19% 0% 0% $50 - $99 15% 22% 0% 0% $30 - $49 23% 16% 0% 0% $20 - $29 21% 20% 0% 0% Less than $19 25% 24% 0% 0% 14 © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER In Q2, the average price paid for a cookware set was $147.81, up from $131.11 in Q1. The average price for open-stock was about the same in Q1 and Q2. Average Price Paid By Product Type 2014 Q1 2014 Q2 2014 Q3 2014 Q4 Cookware sets $ 131.11 $ 147.81 #DIV/0! #DIV/0! N= 46 32 Sauce pans, sauciers, stockpots, Dutch ovens, $ 49.58 $ 54.17 $ double broilers, multipots, pasta cookers N= 50 77 Average of All-Non Sets $ 15 130 62 47.67 $ 47.09 $ 0 $ - 0 - 35 Fry & saute pans, skillets, Chef's pans, $ 50.68 $ 50.92 $ braziers, grill pans, woks N= - 23 All other cookware $ 41.34 $ 35.66 $ N= 0 0 $ - 0 - 0 $ - 0 - 0 $ - © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER In Q2, almost 60% of cookware purchasers didn’t remember what brand of bakeware they purchased, up from half in Q1. Do you remember the brand of cookware? N = 374 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 16 2014 Q1 2014 Q2 2014 Q3 2014 Q4 No 49% 56% 0% 0% Yes 51% 44% 0% 0% © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER Similar to 1st quarter, the vast majority of the cookware purchased in 2nd quarter was cookware that respondents purchased for themselves. Did you buy for yourself or to give as a gift? N= 374 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 For myself 86% 84% 0% 0% To give as a gift 12% 14% 0% 0% Other 2% 2% 0% 0% 17 © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER 30% of the cookware items purchased in Q1 and Q2 were replacements for old cookware that was stained, dirty, warped, or broken. Why did you purchase a new cookware item for yourself? (Among respondents who purchased cookware for themselves) N = 313 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 Old cookware was stained, dirty or warped 31% 30% 0% 0% First one, did not have one previously 23% 17% 0% 0% Needed a bigger or smaller size 15% 15% 0% 0% Needed an additional one 14% 13% 0% 0% Other 6% 7% 0% 0% Needed a specific type of cookware for a new recipe or cooking technique 0% 6% 0% 0% Wanted to replace my non-stick cookware with uncoated cookware 0% 6% 0% 0% Old cookware didn’t have the features the new ones have 10% 4% 0% 0% Needed cookware that was safe to use on an induction cooktop 0% 2% 0% 0% 18 © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER More than two thirds of the cookware items purchased in Q1 and Q2 were planned purchases. Did you go to the store planning to purchase cookware or did you buy it on impulse when you saw cookware in the store? N=275 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 19 2014 Q1 2014 Q2 2014 Q3 2014 Q4 I went to the store planning to purchase cookware. 65% 69% 0% 0% I bought it on impulse when I saw cookware in the store. 22% 29% 0% 0% Other 13% 1% 0% 0% © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER When the cookware purchase was a planned purchase, the purchaser made the final decision on the specific brand and item after looking at the items in the store 70% of the time. Did you make the decision on the specific brand and item before going to the store, or while in the store after looking at the items that were available? (Among respondents who went to the store planning to purchase cookware) N= 190 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 While in the store after looking at the items which were available. 69% 68% 0% 0% Before going to the store. 31% 32% 0% 0% 20 © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER More than half of cookware items purchased when the final decision was made in the store were selected because the purchaser thought that specific item was the best value for the money. If you made the decision while in the store after looking at the items that were available, why did you decide to buy the specific cookware item that you did? (Among respondent who went to the store planning to purchase a cookware) 130 N= 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 It was the best value for the money. 42% 56% 0% 0% Other 14% 6% 0% 0% I saw it demonstrated in the store. 0% 0% 0% 0% I saw it on display in the store. 11% 15% 0% 0% It was on sale. 16% 8% 0% 0% I liked how it looked. 15% 12% 0% 0% I liked the color. 2% 0% 0% 0% A sales associate recommended it. 1% 2% 0% 0% Note: The question wording changed from 1st to 2nd quarter. Therefore, caution should be exercised when comparing 1st and 2nd quarter data. 21 © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER More than three quarters of the cookware items purchased in Q1 and Q2 were bought at retail stores. Did you buy at a retail store or online? N = 371 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 22 2014 Q1 2014 Q2 2014 Q3 2014 Q4 Retail store 77% 75% 0% 0% Online 14% 16% 0% 0% Other 8% 9% 0% 0% © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER 34% of the cookware purchased in 2nd quarter was bought at a mass merchandiser. From which retail store did you buy the cookware item? Among respondents who purchased cookware from a retail store) Categorized by channel N = 273 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 Mass/general merchandiser (i.e. WalMart, Target, KMart, Meijer, ShopKo) 33% 34% 0% 0% Specialty (i.e. Bed Bath & Beyond, Sur la Table, Crate & Barrel) 17% 24% 0% 0% Department store (i.e. Macy's, Kohls, JC Penney) 16% 18% 0% 0% Value discounter/off price store (i.e. Big Lots, Ross, Marshalls, TJ Maxx) 10% 13% 0% 0% Warehouse club 6% 4% 0% 0% Grocery/drug 5% 3% 0% 0% Hardware/home center 8% 2% 0% 0% Dollar store (Family Dollar, Dollar General, Dollar Tree) 5% 1% 0% 0% Note: This was a new question that was added for 2nd quarter. In 1st quarter, the data was manually computed. Therefore, caution should be exercised when comparing 1st and 2nd quarter data. 23 © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER In 2nd quarter, 31% of cookware purchases were made at Wal-Mart. From which retail store did you buy the cookware item? (Among respondents who purchased cookware from a retail store) N = 140 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014 Q1 2014 Q2 2014 Q3 2014 Q4 WalMart 20% 31% 0% 0% Target 13% 27% 0% 0% Macy's 9% 14% 0% 0% Kohl's 4% 12% 0% 0% Other 21% 9% 0% 0% Sears 2% 3% 0% 0% JC Penney 1% 3% 0% 0% Bon-Ton 0% 1% 0% 0% Other 0% 0% 0% 0% Bed Bath & Beyond 12% 0% 0% 0% Grocery store 3% 0% 0% 0% TJ Maxx 5% 0% 0% 0% Costco 4% 0% 0% 0% Discount dept. store 0% 0% 0% 0% Williams Sonoma 4% 0% 0% 0% Sur La Table 2% 0% 0% 0% Note: The question wording changed from 1st to 2nd quarter. Therefore, caution should be exercised when comparing 1st and 2nd quarter data. 24 © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER DEMOGRAPHICS © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER Gender 76% Female 73% 24% Male 27% 0% 10% 20% 30% 40% Total 50% 60% 70% 80% 90% Cookware Age 32% 60 or older 29% 26% 26% 50-59 15% 16% 40-49 14% 15% 30-39 13% 18-29 15% 0% 5% 10% 15% Total 26 20% 25% 30% 35% Cookware © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER Education 27% Graduate degree 24% 36% 36% Bachelor degree 11% 11% Associate degree 19% 20% Some college but no degree 6% 7% High school degree or equivalent (e.g., GED) 1% 1% Less than high school degree 0% 5% Total 10% 15% 20% 25% 30% 35% 40% Cookware Household Income 18% 18% $125,000 and up 14% 12% $100,000 to $124,999 20% $75,000 to $99,999 25% 25% $50,000 to $74,999 15% 16% $25,000 to $49,999 9% 8% Less than $24,999 0% 5% 10% Total 27 21% 15% 20% 25% 30% Cookware © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER Employment 15% Other 15% 17% Not Employed 17% 15% Employed, working 1-39 hours per week 15% 53% Employed, working 40 or more hours per week 53% 0% Total 10% 20% 30% 40% 50% 60% Cookware Marital Status 10% Other 12% 31% Single, never married 28% 59% Married 60% 0% 10% 20% Total 28 30% 40% 50% 60% 70% Cookware © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER Household Size 7% 7% 5 or more 13% 14% 4 16% 15% 3 44% 44% 2 20% 20% 1 0% 5% 10% 15% 20% 25% Total 30% 35% 40% 45% 50% Cookware Presence of Children Under 18 76% 73% None 4% 4% 3 or more 8% 9% 2 12% 14% 1 0% 10% 20% 30% 40% Total 29 50% 60% 70% 80% 90% Cookware © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER Ethnicity 6% 9% Other 1% 2% Asian 4% 5% Spanish, Hispanic, or Latino 4% 4% Black or African-American 85% 81% White 0% 10% 20% 30% Total 40% 50% 60% 70% 80% 90% Cookware Region 17% Pacific 18% 9% 8% Mountain 10% West South Central 11% 3% 4% East South Central 21% 21% South Atlantic West North Central 5% 6% East North Central 12% 12% Middle Atlantic 13% 7% 7% New England 0% 5% 10% Total 30 15% 15% 20% 25% Cookware © Riedel Marketing Group 2014 COOKWARE MARKET TRACKER Riedel Marketing Group Contact Information 31 602-840-4948 5327 E. Pinchot Ave., Phoenix AZ 85018 ajr@4rmg.com www.4rmg.com www.twitter.com/AJRat4RMG http://www.linkedin.com/company/riedel-marketing-group © Riedel Marketing Group 2014