ACNielsen Homescan: Demographic Analysis Prepared for: Idaho Fresh Pak October, 2001 1 Copyright 2001 ACNielsen Contents Objective Executive Summary Panel Description Research Methodology Detailed Analysis Conclusion/Recommendations 2 Copyright 2001 ACNielsen Objective Objective - To understand who the Idahoan consumers are demographically. - To determine what differences exist between the consumer groups who purchase the different types of mashed potatoes and the different sizes. 3 Copyright 2001 ACNielsen Executive Summary Slightly more than one-third of all households purchase Instant Mashed Potatoes (36%), about 37 million households. - Consumers purchase an average of 4 units of Instant Mashed Potatoes on just under 3 occasions. - The category in general is not very deal sensitive as less than 30% of the volume is purchased on deal. Within the Idahoan Mashed Potato products, the Original 13oz Carton (penetration 1.4%) and the Real 13oz (1.3%) attract the greatest number of households. - These buyers are purchasing these items on an average of one and a half occasions, satisfying about one-third of their category needs with the items. 4 Copyright 2001 ACNielsen Executive Summary In general, the Instant Mashed Potato category skews above average among middle-to-younger aged households, less affluent, and households with kids. - Although, there are products within the franchise that skew away from this general picture. The Original and Complete Mashed Potatoes both tend to skew more heavily among households with kids than do the Real items. The Original products tend to vary in the income levels that they attract. However, they tend to attract a more affluent household than the Real and Complete products. - The Complete products are more likely to draw a less affluent household. Copyright 2001 ACNielsen 5 Executive Summary The larger sizes have a greater share of their volume purchased by households with kids than the 13oz size, although still index relatively high. The 2oz size, both Original and Real, skew heavily among the older, retired households without kids. The Complete products are more likely to skew among the African American population whereas the Original has strong skews among the Hispanic households. The Complete products also have stronger skews in the metro counties while the Real items are more likely purchased in the B & C counties, and the Original in the more rural areas. 6 Copyright 2001 ACNielsen Executive Summary Unlike the regular mashed potato items, the flavored items are less likely to attract households with kids. - They attract a slightly more affluent household than the average mashed potato buyer. - Similar to the Complete items, the flavors skew high within the metro counties. - They also have strong skews among the Hispanic population. Specialty Potatoes are purchased by fewer households than Instant Mashed Potatoes, however, they still attract about one-fourth of all households. - They are also more likely to attract households with kids. - The Specialty Potato buyer tends to be middle-aged and middle-income households with kids, particularly teenagers - similar to the Flavored Mashed Potato buyers. 7 Copyright 2001 ACNielsen Homescan Household Panel Description 8 Copyright 2001 ACNielsen What is a household panel? A panel of households that continually provide information about their purchases. Who buys What they buy When they buy Where they buy Homescan members use in-home scanners to record all their purchases (from any outlet) intended for personal, in-home use. 9 Copyright 2001 ACNielsen Panel Description 55,000 Households Over 5 years of back data Geographically dispersed in all 48 contiguous states & demographically balanced Projectable at the national, regional, & market level Continuous reporting at UPC level across all outlets 10 Copyright 2001 ACNielsen Known about ACNielsen Homescan households? Each year, ACN updates panelists’ demographics which includes: Female/Male Head of Household Age Employment Occupation Education • Type of Residence • Own/Rent Residence • Length of Residence Other Household Members - Age - Relationship to Panel Member - Employed for Pay Household Income Race Spanish Descent • Cable TV • Pet Ownership (dog/cat and number owned) • Vehicle Ownership (car/truck and number owned) • Appliance Ownership 11 Copyright 2001 ACNielsen Data Collection Purchase Information Collected on each Shopping Trip Store Age/Sex of Primary and Secondary Shopper Date of Purchase Complete Item Description Through UPC Dictionary For Each UPC... - Number of Units Purchased - Price Paid (non ScanTrack stores only) - Deals Used Dealing is Specified by the Panelist as Follows: - Manufacturer Coupon Store Coupon Store Sale Other Copyright 2001 ACNielsen 12 Data Collection Easy to follow prompts from Scanner Easy Transmission of data via phone lines “Star Market is where you shopped?” Yes No STORE CPN MFG CPN STORE SALE NO YES OTHER SALE ENTER 7 8 9 4 5 6 1 2 3 "FOR" 0 ---- A B C D E F G H I J K L M N O P Q R S T U V W Y Z SPACE CORRECT “You are Mary?” Yes No X ON/OFF EXIT “Did you use a Coupon” Yes No 13 Copyright 2001 ACNielsen Methodology - Research Design Data Source: - ACNielsen’s National Electronic Homescan Household Panel. A geographically and demographically balanced sample of 55,000 households who continuously scan their purchases of consumer packaged goods from all outlets using an in-home electronic scanning wand. Report - Demographic Analysis Market - Total U.S. Channel - All Outlets Categories: - Instant Mashed Potatoes - Instant Specialty Potatoes Time Period - 52 weeks ending 14 Copyright 2001 ACNielsen Methodology - Items Evaluated Instant Mashed Potatoes - Original 2oz, 13oz Polybag, 13oz Carton, 26oz Carton, 28oz Can - Complete Flake .99 cents, Pre-priced $1.42 - Real Flake 2.1oz, 8oz, 13oz - Flavored 4oz w/4 cheese, Butter & Herb, Roasted Garlic Instant Specialty Potatoes - Au Gratin 5.5oz - Scalloped 5.5oz 15 Copyright 2001 ACNielsen Detailed Analysis 16 Copyright 2001 ACNielsen Original Regular Flakes Mashed Potatoes 17 Copyright 2001 ACNielsen Key Findings Within the Original segment, the 13oz Carton and 26oz Can attract the greatest number of consumers. - Households purchase these items on an average of 1.5 occasions throughout the year. They are also likely to shop the category as they only satisfy about one-third of their total category needs with these items. The 13oz size skews towards families, 45% of the volume is from households with kids. - The Polybag attracts a slightly more affluent household than does the Carton. The larger sizes particularly skew high among households with Kids, more than 50% of their volume, and middle-aged households 35-44. 18 Copyright 2001 ACNielsen Key Findings - The 26oz Carton attracts a higher income level household than does the 28oz Can. - The larger sizes also attracts the middle-aged and older households without kids. The smaller 2oz size attracts an older, retired, 1-2 member household in the lower income range. - The 2oz consumers are purchasing an average of 4 units on 2 occasions and satisfy about half of their category needs with the Original 2oz size. - The Original size, particularly the Carton, also skews towards Hispanics, 21% of the volume. 19 Copyright 2001 ACNielsen Idahoan Original Mashed Potatoes Purchase Behavior The Original 13oz Carton attracts the largest group of consumers, followed by the 28oz Can size. The Original 2oz buyers are purchasing the greatest number of units, however, given its package size, they may be the lightest brand buyers. Penetration Buying Rate Purchase Freq Purchase Size % Volume Deal Loyalty Category B/R Ttl Mashed Original Potatoes 2oz 36.1 0.3 3.8 Units 4.3 Units 2.7 1.7 1.4 2.5 29 21 100 51 3.8 8.4 Original Original Original Original 13oz 13oz 26oz 28oz Polybag Carton Carton Can 0.3 1.4 0.3 1.0 2.1 Units 1.7 Units 1.2 Units 1.5 Units 1.7 1.4 1.2 1.4 1.2 1.2 1.0 1.1 7 34 24 10 38 34 22 37 5.6 5.1 5.7 4.0 20 Copyright 2001 ACNielsen Summary: Original Regular Flakes As expected, there is a wide discrepancy as to the households who are purchasing the different Original sizes. The smaller size skews towards the older retired households, whereas, the larger sizes are more likely to be purchased by households with kids. 2oz Orig 13oz Carton 13oz Polybag 26oz Carton 28oz Can upc 00112 upc 00114 upc 00118 upc 00122 upc 00121 Income Under $20K $40-69K $30-39K; $70+ $40-69K $20-29K Size 1 3+ 3-4 3-4 3+ Age 55+ Under 35; 45-54 35-44; 65+ 35-44 35-44; 55-64 Kids No Kids Under 12 Kids under 6 6-17 Under 6 None None Full Full None Race/Origin -- Hispanic -- -- Hispanic County Size C D -- -- D South East South -- East; South Employment Region 21 Copyright 2001 ACNielsen Household Income The 26oz Carton container is more likely to attract a slightly higher income household than the 28oz Can. The 13oz items tend to skew among the middle-to-lower income levels while the 2oz draws the retired low income households. Volume Index: Original Regular Flake Buyers Dist of Panel 13oz Polybag 2oz Orig 26oz Carton 201 189 200 157 152 106 101 81 50 100 13oz Carton 28oz Can 20.8 123 92 77 18.1 111 106 94 73 134 108110 72 37 13 11 122 101 84 73 67 17.3 131 72 58 9281 19.8 0 Under $20 $20-29.9 $30-39.9 $40-49.9 $50-69.9 $70+ 22 Copyright 2001 ACNielsen Household Size Except for the 2oz, the Original products tend to skew towards the larger member households 3+. Volume Index: Original Regular Flake Buyers Dist of Panel 13oz Polybag 200 100 2oz Orig 26oz Carton 154 10510694 93 81 44 25.4 37 10 28 33.7 13oz Carton 28oz Can 211 195 157 145 126121 126 66 30.3 261 53 10.6 0 1 Mem 2 Mem 3 /4 mem Copyright 2001 ACNielsen 5+ Mem 23 Household Female Head Age The Original products attracts a wide range of households, particularly those 35-44 year olds and 55-64 year olds. Volume Index: Original Regular Flake Buyers Dist of Panel 13oz Polybag 2oz Orig 26oz Carton 13oz Carton 28oz Can 200 172 125 128 111 100 146 140 126 103 103 100 169 139 130 111 109 104 89 143 124 9494 51 17.8 89 82 45 17.1 19.7 11.5 15.9 0 Under 35 35-44 45-54 Copyright 2001 ACNielsen 55-64 65+ 24 Age / Presence of Kids Purchasing is strongest among households with kids under age 18, particularly those 6-12 and teenagers. - The 2oz obviously skews among households without kids. Volume Index: Original Regular Flake Buyers Dist of Panel 13oz Polybag 2oz Orig 26oz Carton 200 13oz Carton 28oz Can 182 177 129 160 151 134 131 153 151 137 194 181 178 155 141 110 100 87 8483 7469 66.3 43 33.7 52 38 19.7 12.4 33 14.9 0 No Kids Kids <6 Copyright 2001 ACNielsen 6 - 12 13 - 17 25 Employment Status While not strongly biased, the 2oz, 13oz Carton, and 28oz Can all skew more towards the non-working while the 13oz Polybag and 26oz Carton have skews to the full-time employed. Volume Index: Original Regular Flake Buyers Dist of Panel 13oz Polybag 2oz Orig 26oz Carton 13oz Carton 28oz Can 200 145146 121127 100 82 77 100 130 108111 112 113 102 98 74 35 73 32.8 18 14.2 58 34 28 37 0 Full Time Part Time Not Copyright 2001 ACNielsen No Female 26 Race / Origin White households index at close to 100 and due to their size account for most of the volume. The 13oz Carton and the 28oz Can do have skews among the Hispanic households. Volume Index: Original Regular Flake Buyers Dist of Panel 13oz Polybag 2oz Orig 26oz Carton 13oz Carton 28oz Can 300 237 227 200 100 110 110 106 103 100 84.8 85 100 11.7 8.8 2.6 0.9 0 White Black Hispanic Copyright 2001 ACNielsen Asian Other Black = Low Sample Size 27 County Size The 13oz Carton and 28oz Can size have strong skews in the smaller D counties. The 2oz has strength in the C counties. Volume Index: Original Regular Flake Buyers Dist of Panel 13oz Polybag 2oz Orig 26oz Carton 200 13oz Carton 28oz Can 181 149 100 110118 90 87 87 84 10211093 91 30.4 100 73 67 39.5 113 98 152 15.4 14.7 0 A B C Copyright 2001 ACNielsen D 28 Census Region The 13oz Polybag, 2oz, and 28oz Can all have strength in the South, whereas the Cartons are stronger in the East. Volume Index: Original Regular Flake Buyers Dist of Panel 13oz Polybag 2oz Orig 26oz Carton 300 268 185 200 144 100 13oz Carton 28oz Can 141 129123 113 96 79 65 18.9 2 23.5 34 40 112 109 76 93 36.1 21.5 0 9 4 0 East Central South Copyright 2001 ACNielsen West 29 Original Mashed Potatoes - Comparison of Different Sizes/Packaging 30 Copyright 2001 ACNielsen Summary: Original Mashed Potatoes Orig 26oz Box Orig 28oz Can upc 00122 upc 00121 Income Size Age Kids Employment Race/Origin County Size Region $40-69K 3-4 35-44 6-17 Full ---- $20-29K 3+ 35-44, 55-64 All Kids None Hispanic D East, South 31 Copyright 2001 ACNielsen Household Income The 26oz Carton had stronger skews among the middle-to-upper income households, whereas the 28oz Can was stronger among the lower income. Volume Index: Original Mashed Potato Buyers Dist of Panel 28oz Can 26oz Carton 189 200 152 106101 122 106 94 100 72 20.8 18.1 37 73 13.0 11.0 17.3 $30-39.9 $40-49.9 $50-69.9 81 92 19.8 0 Under $20 $20-29.9 $70+ 32 Copyright 2001 ACNielsen Demographics: Household Size Both large sizes skewed towards larger households, the 28oz Can had slightly stronger skews among 5+ member households. Volume Index: Original Mashed Potato Buyers Dist of Panel 28oz Can 26oz Carton 300 261 211 200 126 145 81 93 100 25.4 28 10 33.7 30.3 10.6 0 1 Mem 2 Mem 3 /4 mem Copyright 2001 ACNielsen 5+ Mem 33 Demographics: Household Female Head Age Both products have above average skews among middle-aged households 35-44 and older households 55-64. Volume Index: Original Mashed Potato Buyers Dist of Panel 28oz Can 26oz Carton 200 169 128 146140 139 104109 100 89 100 45 17.8 17.1 19.7 11.5 15.9 0 Under 35 35-44 45-54 Copyright 2001 ACNielsen 55-64 65+ 34 Demographics: Age / Presence of Kids Purchasing is strongest among households with kids under age 18. - The 28oz Can skews higher among the younger kids, where the 26oz Carton skews among the older children. Volume Index: Original Mashed Potato Buyers Dist of Panel 28oz Can 26oz Carton 194 200 177 160151 100 141 178 155 87 66.3 69 74 33.7 12.4 19.7 14.9 0 No Kids Kids <6 Copyright 2001 ACNielsen 6 - 12 13 - 17 35 Demographics: Employment Status While not strongly biased, the 26oz Carton is more likely to be purchased by a full time working household where as the 28oz Can skews among the non-working household - retired or nonworking mother. Volume Index: Original Mashed Potato Buyers Dist of Panel 28oz Can 26oz Carton 200.0 130 127 113 100 111 98 100.0 35.0 37 32.8 18.0 14.2 28 0.0 Full Time Part Time Not Copyright 2001 ACNielsen No Female 36 Demographics: Race / Origin White households index at close to 100 and due to their size account for most of the volume: 94% of the 26oz Carton and 84% of the 28oz Can. - The 28oz Can has skews among the Hispanic households. Volume Index: Original Mashed Potato Buyers Dist of Panel 28oz Can 26oz Carton 227 200 100 100110 84.8 100 11.7 8.8 0.9 2.6 0 White Black Hispanic Copyright 2001 ACNielsen Asian Other 37 Demographics: County Size The 28oz Can has 50% more volume being purchased in the smaller ‘D’ counties than expected. Volume Index: Original Mashed Potato Buyers Dist of Panel 28oz Can 26oz Carton 200 152 110 93 87 87 100 39.5 98 30.4 15.4 113 100 14.7 0 A B C Copyright 2001 ACNielsen D 38 Demographics: Census Region The 28oz Can has above average purchasing in the South and East. Volume Index: Original Mashed Potato Buyers Dist of Panel 28oz Can 26oz Carton 141 123 129 109 93 100 79 40 18.9 23.5 76 36.1 21.5 0 East Central South Copyright 2001 ACNielsen West 39 Complete Mashed Potatoes 40 Copyright 2001 ACNielsen Key Findings About one percent of all households purchase each of the Complete products. They are buying about 2 boxes per household. - The .99 cents consumers are heavier category buyers by 1 unit which may be why they are more price conscience. The Complete products attract a less affluent household than do the Original products, under $30K. - They are heavy buyers though, both of the brand and category. They purchase 2.5 to 3 units of the item and nearly 9 units of the category. The pre-priced item has a greater share of its volume consumed by households with kids than the .99 cent item (56% vs. 43%). Copyright 2001 ACNielsen 41 Key Findings - The .99 cents attracts households with older kids 6-17 while the pre-priced skews among all households with kids (price-value perception?). - The .99 cent item also has skews among older 55-64 year old households. Both products skew high among the African American population. The .99 cents also has a disproportionate share of volume from Hispanic households. Location is also a distinguishing factor which may be driving the demographic differences, the .99 cents has strengths in the South where as the Pre-priced item has skews in the East, both in the more metro areas. 42 Copyright 2001 ACNielsen Complete Mashed Potatoes Purchase Behavior The purchase dynamics are fairly similar between the two priced Complete products. The .99 cent buyers are heavier category buyers, by one box, which may be why they are more price conscience. Penetration Buying Rate Purchase Freq Purchase Size % Volume Deal Loyalty Category B/R Ttl Mashed Potatoes 36.1 3.8 2.7 1.4 29 100 3.8 Complete Complete Flake .99 Flake Precents Priced 0.9 1.0 2.1 2.4 1.4 1.8 1.5 1.3 17 20 32 42 6.5 5.7 43 Copyright 2001 ACNielsen Summary: Complete Mashed Potatoes Income Size Age Kids Employment Race/Origin County Size Region .99cents upc 00128 PP $1.42 upc 00117 Under $30K 2; 5+ 35-64 6-17 Part AA, Hisp A South Under $30K 3+ 35-54 Kids under 6 Full African Amer A East 44 Copyright 2001 ACNielsen Household Income Both Complete products are stronger among the lower income level households. - The Complete segment is more likely to attract the lower income households as compared to the Original and Real products. Volume Index: Complete Mashed Potato Buyers Dist of Panel .99 cents Reg Priced - $1.42 205 200 160168 153 84 100 57 54 51 20.8 49 60 18.1 13.0 11.0 17.3 $20-29.9 $30-39.9 $40-49.9 $50-69.9 73 19.8 24 0 Under $20 $70+ 45 Copyright 2001 ACNielsen Household Size The Pre-Priced item had above average skews among larger household sizes, most likely those with kids. The .99 cents item was strong among 2 member and 5+ member households. Volume Index: Complete Mashed Potato Buyers Dist of Panel .99 cents Reg Priced - $1.42 161 134 130 125 105 100 71 56 40 25.4 33.7 30.3 10.6 0 1 Mem 2 Mem 3 /4 mem Copyright 2001 ACNielsen 5+ Mem 46 Household Female Head Age Both Complete products are strong among middle-aged households 45-54. Volume Index: Complete Mashed Potato Buyers Dist of Panel .99 cents Reg Priced - $1.42 200 164166 135 122 134 102 96 100 79 53 17.8 17.1 19.7 33 11.5 15.9 0 Under 35 35-44 45-54 Copyright 2001 ACNielsen 55-64 65+ 47 Demographics: Age / Presence of Kids Both products have high skews among households with kids, however, the regular priced item is stronger among the younger kids under 12 while the .99 cents item skews among the teenagers. Volume Index: Complete Mashed Potato Buyers Dist of Panel .99 cents Reg Priced - $1.42 197 200 193 166 157 140 129 100 85 66.3 134 70 66 33.7 12.4 19.7 14.9 0 No Kids Kids <6 Copyright 2001 ACNielsen 6 - 12 13 - 17 48 Employment Status The .99 cents items has strong skews among part-time working households. The regular priced skews above average among fulltime workers. Volume Index: Complete Mashed Potato Buyers Dist of Panel .99 cents Reg Priced - $1.42 190 200.0 124 99 98 98 91 100.0 70 35.0 38 32.8 18.0 14.2 0.0 Full Time Part Time Not Copyright 2001 ACNielsen No Female 49 Race / Origin Both Complete products have strong skews among AfricanAmercian households. One-fourth to one-third of the volume comes from these households. Volume Index: Complete Mashed Potato Buyers Dist of Panel .99 cents Reg Priced - $1.42 298 300 206 200 121 100 84.8 85 75 11.7 8.8 0.9 2.6 0 White Black Hispanic Copyright 2001 ACNielsen Asian Other 50 County Size The Complete products has above average volume coming from ‘A’ size counties. Volume Index: Complete Mashed Potato Buyers Dist of Panel .99 cents Reg Priced - $1.42 134 131 114 113 100 83 71 39.5 61 56 30.4 15.4 14.7 0 A B C Copyright 2001 ACNielsen D 51 Census Region The Regular Priced product has strong skews in the East whereas the .99 cents product has an above average share of volume from the South. Volume Index: Complete Mashed Potato Buyers Dist of Panel .99 cents Reg Priced - $1.42 237 200 158 113 100 50 62 53 18.9 23.5 36.1 99 21.5 0 0 East Central South Copyright 2001 ACNielsen West 52 Real Premium Mashed Potatoes 53 Copyright 2001 ACNielsen Key Findings The Real 13oz size attracts nearly 1.5 million households, just shy of the number of households that the 13oz Original attracts. - Consumers purchase this segment on a little over one occasion, the 2oz size slightly more. - This is a highly dealt segment, particularly the 8oz and 13oz sizes. The 8oz and 13oz both attract households with kids, however, the 8oz more than the 13oz. - The 8oz skews towards a less affluent household than the 13oz. - The 8oz’s strength among households with kids is an older child in its teenage years. - The 13oz also has an above average share of volume from older households 55-64. Copyright 2001 ACNielsen 54 Key Findings Similar to the Original 2oz size, the Real 2oz consumers tend to be older, childless households within the lower income level - ‘Getting By’. - The 2oz is more likely to be purchased in the non-metro areas and in the South. 55 Copyright 2001 ACNielsen Real Mashed Potatoes Purchase Behavior The Real 13oz size product clearly attracts the greatest number of buyers over the 2.1oz and 8oz sizes. The 2.1oz size buyers purchase this size more frequently than the 8oz and 13oz buyers, and they are heavier category buyers. However, this may be indicative of the size they are purchasing. Penetration Buying Rate Purchase Freq Purchase Size % Volume Deal Loyalty Category B/R Ttl Mashed Potatoes 36.1 3.8 2.7 1.4 29 100 3.8 Real 2.1oz 0.8 3.7 1.6 2.3 8 47 7.8 Real 8oz 0.3 1.7 1.4 1.2 52 22 7.7 Real 13oz 1.3 1.6 1.3 1.2 43 33 4.9 56 Copyright 2001 ACNielsen Summary: Real Premium Mashed 2.1oz Real upc 00140 8oz Real 13oz Real upc 00143 upc 00142 Income Under $30K Under $20K $30-39K Size 2 3-4 -Age 55+ 35-44 55-64 Kids No Kids 6-17 Under 6 Employment -None -Race/Origin ---County Size B,C,D B -Region South South South 57 Copyright 2001 ACNielsen Household Income The 2oz Real item is more likely to be purchased by a lower income level household, whereas, the 13oz product has stronger skews among middle income level households. Volume Index: Real Premium Buyers Dist of Panel 2.1oz Real 8oz Real 13oz Real 202 * 200 132 82 100 20.8 123 9499 118 123 95 63 18.1 78 91 105 13 11 5053 17.3 $30-39.9 $40-49.9 $50-69.9 105 8076 19.8 0 * Sample Size = 16 Under $20 $20-29.9 $70+ 58 Copyright 2001 ACNielsen Household Size The 2oz size has stronger skews among the 2 member households. The 8oz and 13oz have above average purchasing from slightly larger 3-4 member households. Volume Index: Real Premium Buyers Dist of Panel 200 2.1oz Real 8oz Real 143 100 126116 116 107 60 53 25.4 115 71 65 33.7 13oz Real 30.3 10.6 0 1 Mem 2 Mem 3 /4 mem Copyright 2001 ACNielsen 5+ Mem 59 Household Female Head Age The 2.1oz Real product tends to skew towards the older households 55+. The 13oz also skews among the older households 55-64 while the 8oz has above average purchasing from the younger households 35-44 years old. Volume Index: Real Premium Buyers Dist of Panel 2.1oz Real 8oz Real 13oz Real 200 158 150 109 100 82 93 88 91 143 131 113 106 85 54 17.8 17.1 51 19.7 11.5 15.9 0 Under 35 35-44 45-54 Copyright 2001 ACNielsen 55-64 65+ 60 Age / Presence of Kids As expected, the 2.1oz size is more likely to be purchased by households without kids and the 8oz by households with kids. - The 13oz does not have strong skews either way but does have an above average share of volume from households with a kids under 6. Volume Index: Real Premium Buyers Dist of Panel 2.1oz Real 8oz Real 13oz Real 300 266 200 168 128 129 102 99 100 66.3 65 33.744 91 42 12.4 41 19.7 82 37 14.9 0 No Kids Kids <6 Copyright 2001 ACNielsen 6 - 12 13 - 17 61 Employment Status While none of the sizes are strongly biased, the 8oz item does have an above average skew towards non-working households. Volume Index: Real Premium Buyers Dist of Panel 2.1oz Real 8oz Real 13oz Real 200.0 85 100.0 96 110 109 94 94 127 109 103 106 79 63 35.0 32.8 18.0 14.2 0.0 Full Time Part Time Not Copyright 2001 ACNielsen No Female 62 Race / Origin White households index at close to 100 and account for 85-90% of the volume. Volume Index: Real Premium Buyers Dist of Panel 2.1oz Real 8oz Real 13oz Real 200 163 * Sample Size = 19 100 107107101 84.8 92 85 66 11.7 8.8 0.9 2.6 0 White Black Hispanic Copyright 2001 ACNielsen Asian Other 63 County Size The 8oz and 13oz items have above average skews within ‘B’ size counties while the 2.1oz size is strong among all of the smaller counties - B, C, and D. None are particularly strong in Metro counties. Volume Index: Real Premium Buyers Dist of Panel 2.1oz Real 8oz Real 13oz Real 200 151 123 155 121 115 104 92 100 53 48 39.5 86 30.4 15.4 14.7 0 A B C Copyright 2001 ACNielsen D 64 Census Region All three Real sizes have a large share of their volume being purchased within the South, more than two times the expected share. Volume Index: Real Premium Buyers Dist of Panel 2.1oz Real 8oz Real 13oz Real 300 242 223 185 200 82 100 18.9 7 0 12 23.5 12 42 57 36.1 21.5 40 46 0 East Central South Copyright 2001 ACNielsen West 65 13oz Mashed Potatoes - Comparison of Different Products 66 Copyright 2001 ACNielsen Key Findings The Original 13oz Carton skews to a wider income range and on a higher end than the Complete and Real size. The Complete 13oz skews to a lower income household than does the Real 13oz product. - However, based on household size, the Real product attracts households that are slightly more affluent ‘Living Comfortably’ while the Complete and Original households are ‘Getting By’. The 13oz sizes all attract households with kids. The Real and Original skew among the younger children while the Complete among the older kids. The Real and Complete 13oz are more likely to attract a slightly older consumer than the Original product. 67 Copyright 2001 ACNielsen Key Findings The Complete and Original both skew among Hispanic households and the Complete among African Americans. The Real & Complete are both strong in the South while the Original’s strength is in the East. 68 Copyright 2001 ACNielsen Summary: 13oz Mashed Potatoes 13oz Real 7.75oz Complete 13oz Carton upc 00142 upc 00117 upc 00114 Income $30-39K Size -Age 55-64 Kids Kids under 6 Employment -Race/Origin -County Size -Region South Under $30K 2 and 5+ 35-54, 55-64 Kids 6-17 Part AA, Hispanic A South $20-29,40-49K 3+ Under 35, 45-54 Kids under 13 None Hispanic D East 69 Copyright 2001 ACNielsen Household Income The Complete 13oz had stronger skews among the lower income households while the Original tends to attract a more middle income household. The Real product has much more consistent indices across all income levels with an above average among $30-39K. Volume Index: 13oz Mashed Potato Buyers Dist of Panel 160 Real 123 99 82 Carton 153 123 100 Complete 134 111 9184 81 105 101 7372 54 20.8 18.1 105 49 13 11 17.3 $30-39.9 $40-49.9 $50-69.9 19.8 0 Under $20 $20-29.9 $70+ 70 Copyright 2001 ACNielsen Household Size The 13oz size across all product types skews towards larger sized families. The Original Carton has slightly stronger skews among the 5+ member households. Volume Index: 13oz Mashed Potato Buyers Dist of Panel Real 130 116 106 Complete 126 116 105 Carton 157 134 115 100 53 25.4 40 37 33.7 30.3 10.6 0 1 Mem 2 Mem 3 /4 mem Copyright 2001 ACNielsen 5+ Mem 71 Household Female Head Age While all 13oz items skews towards the middle-aged households, the Complete 13oz has particular strength among 45-54 year olds, while the Original Carton is stronger among older 55-64 year olds. Volume Index: 13oz Mashed Potato Buyers Dist of Panel Real Complete Carton 200 164 135 125 100 91 130 109 103 143134 106 94 79 85 82 53 17.8 17.1 19.7 11.5 15.9 0 Under 35 35-44 45-54 Copyright 2001 ACNielsen 55-64 65+ 72 Age / Presence of Kids The Complete and Original Carton both are more likely to attract households with kids while the Real product does not have strong skews towards kids. - The Complete product skews stronger among the older children while the Original has skews among the younger kids. Volume Index: 13oz Mashed Potato Buyers Dist of Panel Real Complete Carton 193 200 153 134 151 99 100 129131 102 129 110 91 85 84 70 66.3 33.7 19.7 12.4 82 14.9 0 No Kids Kids <6 Copyright 2001 ACNielsen 6 - 12 13 - 17 73 Employment Status The Complete product tends to attract part-time workers while the Original Carton attracts non-workers. The Real does not have strong skews among any employment groups. Volume Index: 13oz Mashed Potato Buyers Dist of Panel Real Complete Carton 190 200.0 146 110 100.0 98 94 102 103 98 79 77 58 35.0 38 32.8 18.0 14.2 0.0 Full Time Part Time Not Copyright 2001 ACNielsen No Female 74 Race / Origin While White households accounts for the majority of the 13oz volume, the Complete product is the only 13oz size that has strong skews among African American households. Volume Index: 13oz Mashed Potato Buyers Dist of Panel Real Complete Carton 206 200 100 101 103 84.8 85 92 98 85 37 11.7 52 8.8 0.9 2.6 0 White Black Hispanic Copyright 2001 ACNielsen Asian Other 75 County Size The Complete product tends to skew more among the metro households while the Original Carton has strong skews among the ‘D’ county households. Volume Index: 13oz Mashed Potato Buyers Dist of Panel Real Complete Carton 200 134 110 149 115 113 104 92 100 91 86 71 67 39.5 30.4 56 15.4 14.7 0 A B C Copyright 2001 ACNielsen D 76 Census Region Real and Complete both have above average skews within the South Census Regions. The Original Carton attracts more than their fair share of volume from the East. Volume Index: 13oz Mashed Potato Buyers Dist of Panel Real Complete Carton 185 158 200 144 113 99 112 82 100 57 50 53 18.9 12 23.5 34 36.1 21.5 0 East Central South Copyright 2001 ACNielsen West 77 2oz Mashed Potatoes Comparison of Different Products 78 Copyright 2001 ACNielsen Key Findings The 2oz Original and Real products both attract an older household, without kids, and most likely retired. The Original attracts a slightly lower income level consumer than the Real, however, it may be due to their average household size. - The Original has higher skews among 1 member households while the Real skews among 2 member households. Both products are more likely to be purchased in the more rural counties in the South. 79 Copyright 2001 ACNielsen Summary: 2oz Mashed Potatoes Income Size Age Kids Employment Race/Origin County Size Region Original upc 00112 Real upc 00140 Under $20K 1 Member 55+ No Kids None -C South Under $30K 2 Members 55+ No Kids --B,C,D South 80 Copyright 2001 ACNielsen Household Income The 2oz size was strong among the lower income households, particularly the Original. The Real was fairly evenly spread among the households with incomes under $50K. Volume Index: 2oz Mashed Potato Buyers Dist of Panel Regular Real 201 200 132 100 123 77 20.8 118 108 95 73 67 80 50 18.1 13.0 11.0 17.3 $20-29.9 $30-39.9 $40-49.9 $50-69.9 58 19.8 0 Under $20 $70+ 81 Copyright 2001 ACNielsen Household Size The 2oz size had above average skews among the smaller households. - The Original was stronger among the 1 member households and the Real among the 2 member households. Volume Index: 2oz Mashed Potato Buyers Dist of Panel 154 Regular Real 143 107 105 100 66 71 25.4 33.7 53 30.3 10.6 26 0 1 Mem 2 Mem 3 /4 mem Copyright 2001 ACNielsen 5+ Mem 82 Household Female Head Age The 2oz size had strong skews among older households 55+ Volume Index: 2oz Mashed Potato Buyers Dist of Panel Regular 200 Real 172 158 103 100 89 93 82 54 51 17.8 143 131 17.1 19.7 11.5 15.9 0 Under 35 35-44 45-54 Copyright 2001 ACNielsen 55-64 65+ 83 Age / Presence of Kids Not surprising given the other demographic skews, the 2oz size skews among households without kids. 85% of their volume comes from these households. Volume Index: 2oz Mashed Potato Buyers Dist of Panel Regular Real 200 129128 100 66.3 33.7 52 43 44 42 12.4 38 41 19.7 33 37 14.9 0 No Kids Kids <6 Copyright 2001 ACNielsen 6 - 12 13 - 17 84 Employment Status The Original 2oz size has stronger skews among the nonemployed retired households. The Real 2oz size is fairly consistent among part-time and non-employed. Volume Index: 2oz Mashed Potato Buyers Dist of Panel Regular Real 200.0 145 109 82 85 100.0 109 106 74 35.0 73 32.8 18.0 14.2 0.0 Full Time Part Time Not Copyright 2001 ACNielsen No Female 85 Race / Origin There are no strong biases towards any ethnic groups. White households represent about 90% of the 2oz volume. Volume Index: 2oz Mashed Potato Buyers Dist of Panel Regular Real 200 100 106107 84.8 66 11.7 8.8 0.9 2.6 0 White Black Hispanic Copyright 2001 ACNielsen Asian Other 86 County Size The 2oz size has strong skews among households who live in ‘C’ counties. The Real 2oz is more likely to also attract households that live in ‘B’ and ‘D’ counties than the Original. Volume Index: 2oz Mashed Potato Buyers Dist of Panel Regular 200 Real 181 155 123 90 100 121 84 73 53 39.5 30.4 15.4 14.7 0 A B C Copyright 2001 ACNielsen D 87 Census Region Similarly, both 2oz products receive a disproportionate share of their volume from the South. Volume Index: 2oz Mashed Potato Buyers Dist of Panel Regular Real 242 185 200 96 100 65 18.9 7 23.5 36.1 12 40 21.5 0 0 East Central South Copyright 2001 ACNielsen West 88 Flavored Mashed Potatoes 89 Copyright 2001 ACNielsen Key Findings The flavored items attract about a million households each, 4 Cheese and Roasted Garlic slightly more, Butter & Herb slightly less. - Even though consumers only purchase an average of 2 boxes of the flavored items they are fairly heavy category buyers. They satisfy less than one-third of their category needs with the flavored item. These products attract a middle-aged consumer 35-44. The Butter & Herb and Roasted Garlic flavors also skew high among older households 55-64 years old. The 4 Cheese and Roasted Garlic have a fair share of volume from households with kids, about one-third of their volume, while Butter & Herb have a smaller share from this consumer group. Copyright 2001 ACNielsen 90 Key Findings Butter & Herb attracts a more affluent households than the other flavors, followed by the the 4 Cheese flavor and then the Roasted Garlic, attracting the least affluent household. All flavors skew high among the Hispanic population Each flavor has a strength in a different part of the country (may be distribution driven): 4 Cheese in the South; Butter & Herb in the East; and Roasted Garlic in the West. 91 Copyright 2001 ACNielsen Flavored Mashed Potatoes Purchase Behavior The 4 Cheese and Roasted Garlic flavors attract slightly more households than does the Butter & Herb flavor. However, the Butter & Herb buyers are slightly heavier buyers which indicates that the other flavors have more one-time triers. The Herb & Butter buyers are also heavier category buyers, followed the 4 Cheese buyers. Penetration Buying Rate Purchase Freq Purchase Size % Volume Deal Loyalty Category B/R Ttl Mashed Potatoes 36.1 3.8 2.7 1.4 29 100 3.8 4oz w/ 4 4oz Butter 4oz Roasted Cheese & Herb Garlic 1.2 0.8 1.2 2.1 2.3 1.9 1.4 1.5 1.4 1.5 1.5 1.4 36 38 35 30 30 28 7.1 7.8 6.8 92 Copyright 2001 ACNielsen Summary: Flavored Mashed Potatoes 4 Cheese upc 00145 Income Size Age Kids Employment Race/Origin County Size Region $30-39K 3-4 35-44 -Full Hispanic B South Btr & Herb Rst Grlc upc 00146 upc 00147 $40-69K Under $20K -2 35-44; 55-64 55-64 -13-17 --Hispanic Hispanic A -East West 93 Copyright 2001 ACNielsen Household Income The 4 Cheese tends to have strong skews among mid-income level households, with Butter & Herb households slightly higher. Volume Index: Flavored Mashed Potato Buyers Dist of Panel 4 Cheese Btr & Hrb Rst Grlc 200 100 122 105 81 97 8579 77 58 20.8 138 118 90 135 18.1 121 107 87 13 11 17.3 $30-39.9 $40-49.9 $50-69.9 111 117 90 19.8 0 Under $20 $20-29.9 $70+ 94 Copyright 2001 ACNielsen Household Size Although there are no strong biases among household size, the Flavored buyers tend to be middle sized households, 2-4 members. Volume Index: Flavored Mashed Potato Buyers Dist of Panel 4 Cheese 122 114112 114 Btr & Hrb 123 Rst Grlc 112 99 92 100 54 84 64 25.4 52 33.7 30.3 10.6 0 1 Mem 2 Mem 3 /4 mem Copyright 2001 ACNielsen 5+ Mem 95 Household Female Head Age The 4 Cheese flavor attracts a younger female head, 35-44, while the Butter & Herb and Roasted Garlic flavors attracts an older household, 55-64. Volume Index: Flavored Mashed Potato Buyers Dist of Panel 200 4 Cheese Btr & Hrb Rst Grlc 171 167 145 100 121 106 93102 82 113 115 99 70 77 71 46 17.8 17.1 19.7 11.5 15.9 0 Under 35 35-44 45-54 Copyright 2001 ACNielsen 55-64 65+ 96 Age / Presence of Kids There are no strong skews among presence of kids. The Butter & Herb flavor is more likely to be purchased by households without kids while the other 2 flavors have average skews. - The Roasted Garlic does have skews among households with teenagers versus younger children. Volume Index: Flavored Mashed Potato Buyers Dist of Panel 4 Cheese Btr & Hrb Rst Grlc 135 100 95 115 102 109 108 106 96 85 82 79 70 66.3 103 55 51 33.7 19.7 12.4 14.9 0 No Kids Kids <6 Copyright 2001 ACNielsen 6 - 12 13 - 17 97 Employment Status All three flavors have above average skews among full time working households. Volume Index: Flavored Mashed Potato Buyers Dist of Panel 4 Cheese Btr & Hrb Rst Grlc 200.0 136 111115 116 100.0 96 73 82 35.0 108 107 78 67 32.8 71 18.0 14.2 0.0 Full Time Part Time Not Copyright 2001 ACNielsen No Female 98 Race / Origin Even though White households represents a majority of the volume, Butter & Herb and Roasted Garlic have strong skews among the Hispanic population. They account for about 15% of the flavor’s volume. Volume Index: Flavored Mashed Potato Buyers Dist of Panel 4 Cheese Rst Grlc 178177 200 100 Btr & Hrb 114 10798104 84.8 93 65 59 11.7 8.8 0.9 2.6 0 White Black Hispanic Copyright 2001 ACNielsen Asian Other 99 County Size The flavored potatoes are more likely to be purchased in the more metro counties versus the rural areas. Volume Index: Flavored Mashed Potato Buyers Dist of Panel 4 Cheese Btr & Hrb Rst Grlc 200 133 103 102 121 103107 103 86 100 78 70 39.5 30.4 15.4 14.7 78 19 0 A B C Copyright 2001 ACNielsen D 100 Census Region Each flavor has skews in a different region of the country distribution related? - 4 Cheese is strong in the South, Butter & Herb in the East, and Roasted Garlic in the West. Volume Index: Flavored Mashed Potato Buyers Dist of Panel 4 Cheese Btr & Hrb 101 65 112 103 87 78 81 72 54 36.1 23.5 18.9 149 138 129 100 Rst Grlc 21.5 0 East Central South Copyright 2001 ACNielsen West 101 Specialty Potatoes 102 Copyright 2001 ACNielsen Key Findings Just over one-fourth of all households purchase Specialty potatoes, slightly less than purchase Instant Mashed potatoes. - They purchase only slightly less frequently than the Mashed Potato buyers. - The Specialty category is slightly more heavily dealt with one-third of the volume purchased on deal. Similar to Mashed potatoes, Specialty potatoes are also more likely to be purchased by households with kids. Au Gratin & Scalloped potatoes attract a very similar consumer. - They tend to be middle-income level, households with kids, particularly teenagers. Copyright 2001 ACNielsen 103 Key Findings - They skew above average within the more rural counties C & D and in the South, Au Gratin is also strong in the Central region. - They also skew among older households. 104 Copyright 2001 ACNielsen Specialty Potatoes Purchase Behavior Just over one-fourth of all households purchase Specialty Potatoes, slightly less than Mashed Potatoes. - Au Gratin and Scalloped potatoes both have very similar purchase behavior. Penetration Buying Rate Purchase Freq Purchase Size % Volume Deal Loyalty Category B/R Ttl Mashed Ttl Specialty Potatoes Potatoes 36.1 26.6 3.8 4.2 2.7 2.4 1.4 1.8 29 34 100 100 3.8 4.2 Au Gratin 0.7 1.7 1.3 1.3 33 28 6.1 Scalloped 0.6 1.8 1.3 1.4 30 29 6.2 105 Copyright 2001 ACNielsen Summary: Specialty Potatoes Ttl Mashed Ttl Specialty Au Gratin Scalloped upc 00772 upc 00774 Income Size Age Kids Employment Race/Origin County Size Region -3+ Under 35 All Kids Part ---- -3+ Under 44 All Kids ---Central $30-39K $30-39K 3-4 3+ 55+ 35-44, 65+ 13-17 13-17 Part ---C,D C Central,South South 106 Copyright 2001 ACNielsen Household Income The Specialty buyers are fairly evenly spread over all income levels, particularly the middle income range. - The Specialty products are more likely to attract a slightly more affluent buyer than are Mashed Potatoes. Volume Index: Specialty Potato Buyers Dist of Panel Au Gratin Ttl Mashed Scalloped 129 121 101 100 107 106 95 81 78 75 69 20.8 18.1 110 93 119 114 105 97 13 11 $30-39.9 $40-49.9 Ttl Specialty 119 118 112 100 17.3 117 102 88 87 19.8 0 Under $20 $20-29.9 $50-69.9 $70+ 107 Copyright 2001 ACNielsen Household Size The Specialty products have strong skews among 3+ member households. - Scalloped potatoes have higher skews among 5+ member households while Au Gratin potatoes are stronger among 3-4 members. Volume Index: Specialty Potato Buyers Dist of Panel Au Gratin Ttl Mashed Scalloped Ttl Specialty 200 162170 114120 144 129135 126 130 108 91 95 100 51 25.4 35 26 30 33.7 30.3 10.6 0 1 Mem 2 Mem 3 /4 mem Copyright 2001 ACNielsen 5+ Mem 108 Household Female Head Age Scalloped potatoes are more likely to be purchased by younger households (35-44) and older households (65+). Whereas Au Gratin potatoes skew stronger among 55-64 year olds. Volume Index: Specialty Potato Buyers Dist of Panel Au Gratin Ttl Mashed Scalloped Ttl Specialty 200 148 128 122 122 100 127 119 104 77 17.8 17.1 113106 92 19.7 142 117 105 92 77 11.5 133 123 8285 15.9 0 Under 35 35-44 45-54 Copyright 2001 ACNielsen 55-64 65+ 109 Age / Presence of Kids Both Scalloped and Au Gratin potatoes skew above average among households with teenagers. Otherwise, they are fairly inline with the population in terms of households with kids versus not purchasing the flavored products. Volume Index: Specialty Potato Buyers Dist of Panel Au Gratin Ttl Mashed Scalloped Ttl Specialty 204 200 100 838090 66.3 96 140 134 120 108 166 148 146 141 140 129132 85 70 66 48 33.7 19.7 12.4 14.9 0 No Kids Kids <6 Copyright 2001 ACNielsen 6 - 12 13 - 17 110 Employment Status Employment is not a strong biased segment. The Specialty items are much more likely to be purchased by a household with a female head. Volume Index: Specialty Potato Buyers Dist of Panel Au Gratin Ttl Mashed Scalloped Ttl Specialty 200.0 10410510397 137 122118 111 118 109109115 100.0 63 58 59 35.0 36 32.8 18.0 14.2 0.0 Full Time Part Time Not Copyright 2001 ACNielsen No Female 111 Race / Origin White households account for more than 90% of the Specialty potatoes volume. Volume Index: Specialty Potato Buyers Dist of Panel Au Gratin 100 111 109 107 104 84.8 Ttl Mashed Scalloped Ttl Specialty 110 94 80 78 58 11.7 86 52 50 8.8 2.6 0.9 0 White Black Hispanic Copyright 2001 ACNielsen Asian Other 112 County Size Au Gratin potatoes have above average skews within the more rural counties - C and D, while Scalloped potatoes are fairly evenly spread. Volume Index: Specialty Potato Buyers Dist of Panel Au Gratin Ttl Mashed Scalloped Ttl Specialty 200 170 162 100 93 105 104102 84 39.5 71 83 120 110 123 119 101 112 73 30.4 15.4 14.7 0 A B C Copyright 2001 ACNielsen D 113 Census Region Overall, Specialty potatoes are strong in the Central. Au Gratin potatoes have above average skews in the Central while Scalloped potatoes are stronger in the South. Volume Index: Specialty Potato Buyers Dist of Panel Au Gratin Ttl Mashed Scalloped Ttl Specialty 156 146142 114 113 100 95 82 90 99 76 82 77 36.1 23.5 18.9 124 111 21.5 3 2 0 East Central South Copyright 2001 ACNielsen West 114 Conclusion 115 Copyright 2001 ACNielsen Conclusion/Recommendation Is there a market for all of the types and sizes of Mashed Potatoes that Idahoan offers? Are there enough differences in demographics to justify? Each of the Idahoan types do appeal to a slightly different consumer, however, there is a great deal of overlap. There may be an opportunity to consolidate. - Since the Complete product is currently dwindling in sales, this may be an opportunity to replace the Complete type with the Original. - Both attract a large share of households with kids in the same lifestage, as well as without kids. - However, the Complete does skew among a less affluent household and is strong among African American households. 116 Copyright 2001 ACNielsen Conclusion/Recommendation Is there a market for all of the types and sizes of Mashed Potatoes that Idahoan offers? Are there enough differences in demographics to justify? - If making the switch to Original, maintain distribution levels of the Complete products. - Focus on advertising flavor vs. convenience of the Original products to African American households. - Place coupons on/in the Complete box for their next purchase of Original to promote trial. - Determine if households are currently purchasing both the Original and Complete items - easier switch. - Consider the competitive availability, are there competitive items that these households will switch to or does Idahoan have a good chance of keeping these households in the franchise? Copyright 2001 ACNielsen 117 Conclusion/Recommendation It also does not appear that there is a need for both the Original 26oz Carton and the 28oz Can. - Both items have a greater than expected share of volume from households with kids as well as an appeal among households without kids and in the same age groups. - Income levels may be driven more by areas of distribution versus a preference of Carton vs. Can. - Currently the Can attracts more households than the Carton, however, this may also be driven by distribution. - If penetration differences are driven by distribution, replace the Can with the Carton since it is a more profitable item for the company. Copyright 2001 ACNielsen 118 Conclusion/Recommendation It also does not appear that there is a need for both the Original 26oz Carton and the 28oz Can. - Keep the same level of distribution of both the Carton and the Can. - Maintain the heritage of the Can, have a nostalgic promotion at least once a year in the fall or around the holidays. Promote storage usages Smaller size buyers may purchase up just to buy the ‘original’ Idahoan can. 119 Copyright 2001 ACNielsen Conclusion/Recommendation Is there an opportunity to convert the 2oz size to a 4oz pouch? The 2oz size has its niche among older, retired, 1 & 2 member households. The 2oz consumers also tend to be less affluent than the larger size buyers. When compared to the Real 8oz item (2 premeasured 4oz pouches), this product has a much stronger skew among households with kids and larger families. Because of the niche consumer group, there is a need to maintain the 2oz size. There may be an opportunity to add additional 2oz pouches to a box as the 2oz consumer purchases an average of 2.5 units per shopping occasion. Copyright 2001 ACNielsen 120 Conclusion/Recommendation Is there an opportunity to introduce a new flavor that appeals to the Hispanic market? The Original style mashed potatoes, particularly the 13oz Carton, has a strong skew among Hispanic households (20% of volume - more than 2 times the expected share). The flavored varieties also appeal to this ethnic group, especially the butter & Herb and Roasted Garlic flavors. Do capitalize on this growing ethnic population by introducing a flavor that would appeal to Hispanic households - Green Chili Mashed Potatoes???? 121 Copyright 2001 ACNielsen Conclusion/Recommendation Should the Specialty potatoes be downsized from a 5 serving size to a 3 1/2 serving? Nearly half of the Specialty potato volume is purchased by households with kids, particularly 6-17 year olds. 59% of the volume is from households with 5+ members - a 3 1/2 serving box would not feed this household. The 2 member households are already purchasing this product and a downsize may or may not effect them. However, a downsize may risk losing the larger families who do not want to purchase 2 boxes for a single meal. Copyright 2001 ACNielsen 122 123 Copyright 2001 ACNielsen