Lead Marketing Conference Location, Location, Location J.P. Beauchamp & Willis Duran 1 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. Colossal Collapse In Chicago 2 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. The Friday Morning Leader Board 3 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. Some Numbers to Consider 1.7% to 1.3% Revised GDP for Q2 2012 70% New Jobs Created 2010 A55+ 63.5 Labor Force Participation 4 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. Commerce Dept, Challenger Gray & Christmas Good News Bad News Economic Snapshot 2008-2012E Economic Measure GDP (% chg) Unemployment (%, SA) Consumer Price Index (% Chg) Retail Sales (% Chg) Residential Permits (000) Source: Moody’s, BLS 5 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. 2008 2009 2010 2011 2012E 1.9% -2.5% 4.2% 3.7% 1.7% 5.8 9.3 9.6 9 8.1 3.8% -0.3% 1.6% 3.0% 1.7% -1.2% -7.0% 6.4% 7.6% 1.0% 895 582 603 624 755 We Adapt and Overcome 6 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. The Most Important Slide Segments Downtrodden Size: 17.8% Median Age: 48 Median Income: $41K Bleak outlook Promotion & Store Influences Product Development Skew to Walmart, Dollar, C-Store &Supercenter Collect coupons from newspapers and online Like loyalty card discounts, store signs, displays Use store Kiosks, Touch Screen Digital Signs Buy most private labels for EDLP Skew to Walmart, Dollar, C-Store & Club Don’t actively collect coupons Don’t pay much attention to In-Store circulars, signs or displays. Price sensitive. Skew to Grocery, Drug and Mass stores Start-Ups Search info and purchase online Size: 10.6% Collect coupons from newspapers and online Median Age: 36 Median Income: $47K Like loyalty card discounts, store signs, displays Hurt but see bright future Use store Kiosks, Touch Screen Digital Signs Cautious& Worried Size: 24.8% Median Age: 55 Median Income: $47K Bleak outlook Optimistics Size: 14.3% Median Age: 40 Median Income: $64K Financially hurt a bit Carefree Size: 18.6% Median Age: 53 Median Income: $67K Financially Stable Savvy Shoppers 7 Size: 13.8% Median Age: 51 Median Income: $76K Financial improved Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. Visit manufacturers’ web for info and deals Try new brands for low price Look for products that last longer Prefer products that serve multi-usages. Prefer package types that allow family share Try new brands for low price Look for products that last longer Visit manufacturers’ web for info and deals Try new brands. Like products that last longer Prefer package types that allow family share Reachable by social network, TV and Ratio ads and iPhone. Skew to Walmart & Supercenter Search info and download coupons online Like loyalty card discounts, store signs, displays Price sensitive. Buy private labels for EDLP. Visit manufacturers’ web for info and deals Prefer package types that allow family share Reachable by TV and Radio ads and iPhone Skew to Club store Not engaged in collecting coupons Least price sensitive Buy on trust of brands Most brand loyal Skew to Grocery, Drug and Mass stores Enjoy shopping and quest for value. Use a lot of coupons and store circulars Like loyalty card discounts, store signs, displays Buy on trust of brands Read product labels Research products on blogs While consumers are a little pessimistic about the economy, they are making adjustments and returning to “little luxuries” Downturn Driven Ritual Changes % of Shoppers- Top 2 Box Source: SymphonyIRI MarketPulse Survey, Q32011. 8 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. Slight changes in consumer optimism are reflected in how they are strategizing their store trips Trip Strategies % of Shoppers- Top 2 Box Source: SymphonyIRI MarketPulse Survey, Q32011, Q2 2012 9 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. Scope & Scale Almost half of US Adults own a Smartphone One-third of Americans view online videos a day Facebook delivers one out of every four ads Source:Pew Research Center's Internet & American Life Project. 3/12 comScore US Digital Future in Focus 2/12 10 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. >100 advertisers = 1 Billion IMPs Q4 ‘11 Key Steps in the Shopper Marketing Activation Process Identify • Key Consumer Groups • High Value Shoppers • Priority Segments Activate – Media Messaging & Consumption • • • • Media Campaigns Direct to Consumer Program Focused Messaging Concentrated Content Activate – Retail Channels, Banners & Stores • Geographies—Local is the new Black • Retailers 11 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. How Can you Better Leverage Digital 12 Content Communication Shopper Experience “Push” messaging “One Size Fits All “Messaging Confusion at the Shelf One-on-One Dialogue Tailored Communications Greater convenience In Store or Online Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. Everything is in Play…Data & Platform Agnostic Lifestyle / Shopper Segmentation 13 Media Consumption Buying Behavior Is she a traditionalist? Is she an expert who likes to share her recipes and skills with others? Will she only buy your product on a deal? …or is she a health conscious consumer? … or does she reach out to cooking experts because she needs as much help as possible? Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. … or does she stick to one brand? DATA 14 + CONTENT + TECHNOLOGY Copyright © SymphonyIRI Group, 2011. Confidential and Proprietary. Data ShopperMarket ShopperScan Other Data Audience Data 3rd Party Data Media Data POS data representing 95% of items sold at the UPC level 15 Page 15 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. All outlet SIG scan panel purchase data and AOL proprietary data Behavioral | Demographic Psychographics | Technographic Daypart | Weather Content Audiences can be targeted and scaled with uniquely crossplatform digital approaches. 16 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. Page 16 Technology 17 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. Insights Digital Audience Insights Offline Sales Impact EXPOSED CONTROL ROI: $2.52 360 Multi-Dimensional Views Advanced Measurement Page 18 18 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. Digital Campaigns - Benchmarks • The Average ROE for all targeted campaigns is $1.74 vs. $1.54 without a Purchase Based Target MAX ROE $3.82 $ Impact /HH % Impact $0.16 68% (Impressions) 545MM Targeted $0.09 Targeted $1.74 Average $1.67 No Target $1.57 Campaign Size Targeted 111MM Average $0.08 Averag e 98MM Targeted 19% No Target $0.07 Average 16% No Target 70MM No Target 12% $0.48 MIN 19 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. $0.02 Updated 9/12 1.2% 17MM Holistic Data Approach Identify your best consumer by their shopping behavior. 20 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. Identify where to find your best consumer Develop laserfocused consumer target. Thank You 21 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary.