TUNING INTO MOM Understanding America’s Most Powerful Consumer Michal Clements Teri Lucie Thompson @MichalClements @TeriLucie website: www.tuningintom.com IT'S EVIDENT THAT MOM IS SOMETIMES NOT BEING HEARD 2 AUTHORS Customer segmentation experts who have written a book. This book is designed to help brands and individuals who recognize mom as a key decision maker and purchase influencer become more effective. Michal Clements Teri Lucie Thompson 3 THE BIRTHING OF THE BOOK (STARTED IN 2004) 2009 2004 Purdue Press Contract Customer Segment Marketing 2009 Third State of the American Mom Report (Quantitative) 2006 Marketing to Moms Coalition formed 2007 First State of the American Mom Report (Quantitative) 2009 - early 2010 Phase II Interviews 2010 Fourth State of the American Mom Report (Quantitative) 2008 Case Study Development, e.g., Sara Lee Soft & Smooth 2010 Academic Review of Book 2008 Phase I Interviews October 15th 2011 PUBLICATION!! 2008 Second State of the American Mom Report (Quantitative) 4 SEGMENTATION CREATES A BROADER VIEW OF THE MARKET OPPORTUNITY OVERALL MARKET AND STRATEGIC FRAME OF REFERENCE UNDERSTAND MARKET SEGMENTS Segment A Segment B Segment C Segment D Segment E SELECT TARGET TARGET DISCIPLINED BUSINESS AND MARKETING STRATEGIES 5 DEFINING THE FRAME OF REFERENCE IS A CRITICAL STEP TO GAIN THE BROADER, “OUTSIDE IN” PERSPECTIVE ILLUSTRATIVE ALTERNATIVE FRAMES OF REFERENCE FOR DISABILITY INSURANCE Financial Management Income & Asset Protection Current Spending Long-term Annuities Disability Insurance Long term care insurance Personal liability & homeowners insurance Liquid Investment /Savings for Long term Real Estate Investments 6 FOR EXAMPLE, SEGMENTATION FRAMEWORK INCLUDES SEGMENTS AND AGE OF OLDEST KID BASED NEED STATES Customer Segments B C D E F Opportunity Area Teen (13-17) Middle Child Age Older Child Age Young Adult (18-29) Middle School (10-12) Youngest Child Age Age of Oldest Child (MOKA) A Preschool (3-6) Elementary (7-9) Opportunity Area • Needs/unmet needs • Benefits sought • Current competitive set • Size, Value Infant/Toddler (<2) 7 HAVE THE DISCIPLINE TO SELECT THE MOST ATTRACTIVE TARGET(S) FOR YOUR ORGANIZATION WITHIN A DEFINED MARKET OVERALL STRATEGIC VISION – DEFINES MARKET FRAME OF REFERENCE CUSTOMER SEGMENTS IN THE MARKET Segment A Segment B Segment C Segment D Segment E AGE OF OLDEST CHILD (MOKA) Y Infant/ Preschool Elementary Middle School Teen Young Adult Toddler (<2) (3-6) (7-9) (10-12) (13-17) (18-29) TARGET TARGET OPPORTUNITY SELECTED DISCIPLINED BUSINESS AND MARKETING STRATEGIES 8 ABOUT OUR RESEARCH State of the American Mom 2007-2010 Total Sample 5014* Oldest Child Age 2 and Under Age 3 to 6 Age 7 to 12 Age 13 to 17 Multi-cultural Group African American Caucasian English Speaking Hispanic Spanish Speaking Hispanic All Other Household Income Under $35,000 $35,000-$74,999 $75,000 or more Marital Status Single, Never Married Married Living with Partner Divorced/Widowed In-depth qualitative interviews with moms 548 929 1,469 2,031 663 2,894 586 617 146 1,736 1,991 1,282 662 3,270 435 642 Employment Status Full Time Part Time Self Employed Not Working 1,958 674 249 2,117 Education High School or Less Some College/College Grad Graduate/Professional Degree 1,233 3,281 477 Number of Children Under 18 Only Child Two Child Three or More 2,103 1,830 1,076 Any Child Age 2 and Under Age 3 to 6 Age 7 to 12 Age 13 to 17 1,508 1,921 2,335 1,878 * Note: Individual totals may vary Success Stories 9 POWER OF MOM: LARGE 77 MILLION MARKET U.S. Mom Population By Age of Children Child Age 0-2 3-5 9.1 million 9.5 million 6-13 14-17 20.3 million 11.9 million 18-29 = 1 million moms Source: U.S. Census Bureau (November 2009 and November 1999). Current population survey; ITA estimates 26.5 million Total = 77.4 Million 10 A SIZEABLE PURSE AMONG YOUNG ADULTS, TEENS AND MIDDLE SCHOOLERS Married Moms with Oldest Child <6 Married Moms with Oldest Child 6-17 Single Moms with Children <17 Married Moms with Oldest Child 18+ $345B $1,137B $270B $697B = $100 Billion Source: Maria T. Bailey, Power Moms: The New Rules for Engaging Mom Influencers Who Drive Brand Choice. Bureau of Labor Statistics, Consumer Spending Survey 11 HOW CAN YOU BECOME MORE EFFECTIVE WITH MOM? 1. Pick a Focus By Age of Oldest Child (MOKA) 2. Tune In and Align with Mom’s Hot Buttons 3. Leverage Best Practice “Success Stories” 12 PICK A FOCUS BY AGE OF OLDEST CHILD (MOKA) Moms of Young Adults 18-29 Moms of Teenagers 13-17 Moms of Middle schoolers 10-12 Moms of Elementary schoolers 7-9 Moms of Preschoolers 3-6 Moms of Infants & Toddlers Up to age 2 13 LET’S COMPARE THREE OF THE SIX MOKA AGE GROUPS Bonita Gillian Karly (Mom of Preschooler 3 to 6) (Mom of Elementary School Child 7 to 9) (Mom of Teenager 14 to 17) EXERCISE/SPORTS HOT BUTTON THEME FOCUS Being Active- Dance Classes Near Home Sports Family Lifestyle, Everyone Plays Leadership, Emotional Stability, Discipline EXERCISE/SPORTS BRAND Chicago Park District AYSO Soccer NikeiD 14 MIDDLE SCHOOL MOM – MELISSANO MORE SWEATER VESTS! 15 INFANT/TODDLER MOMS SEE THE MOST MARKETING Estimate of How Often You Believe Ads/Marketing Targeted to You as a Mom % Who Say 25% of The Time or More By Age of Child Moms with Oldest Child Age 2 and Under Note: Total Moms at 64% Moms with Oldest Child Age 3-6 Moms with Oldest Child Age 7-12 Moms with Oldest Child Age 13-17 16 TUNE IN AND ALIGN WITH MOM “HOT” BUTTONS Food Safety & Health Exercise & Sports Technology Education Fashion & Beauty 17 WE CONSISTENTLY SEE THE HOT BUTTONS ARE MOM'S PRIORITIES Moms’ Top Priorities 6. Safety of my child(ren) in cyber world, e.g., cyber bullying, stalking, “sexting” 3.7 3.9 7. Healthy food/diet for my child(ren 3.7 Quality of my child(ren)’s education 3.9 8. Peer influence on my child(ren) 3.6 4. Safety of my child(ren) in physical world 3.8 9. Physical exercise/fitness for my child(ren) 3.6 5. Drug/alcohol use by my child(ren) 3.7 10. Safe/responsible driving for my teen 3.5 1. Relationship between my child(ren) and I 3.9 2. Quality of communication between my child(ren) and me 3. 18 EXERCISE AND SPORTS: MOVING TOGETHER 19 SPORTS IS THE LEADING EXTRACURRICULAR; MOM IS INVOLVED Type, And Time Dedicated to Child(ren)’s Extracurriculars Total Moms Moms with Moms with Kids Under 6 Kids 7-12 Moms with Kids 13 -18 Type of Extracurriculars Sports 49% 46% 60% 53% General Recreation 37% 42% 32% 27% Music 21% 17% 24% 29% Dance 15% 18% 14% 12% Art/Drawing/Painting/Sculpture 15% 14% 13% 15% Theater/Drama 7% 5% 8% 11% 40% 38% 48% 43% 38% 37% 39% 40% 23% 25% 13% 19% Time Dedicated to Child(ren)'s Extracurriculars I spend more than 3 hours a week personally attending my child(ren)'s extracurriculars (e.g., sports games, etc) I spend less than 3 hours a week personally attending my child(ren)'s extracurricular activities I do not attend my child(ren)'s extracurriculars on a regular basis 20 SUCCESS STORY: NikeId Recognized need for teen athletes and their moms for Background Target improved performance through customization Personalization is accomplished through a choice of independent sizing for right and left shoes, a choice of shoe width, colors, and a Personalized iD (PiD) Teens and young adults Moms of teens and young adults Key Marketing Tactics and Results NikeiD wanted to raise awareness of their products. They ran a one month promotional campaign with an interactive billboard that allowed consumers to design Nike iD sneakers through their mobile phones, and display them live on the billboard in New York’s Times Square-1200 designs were displayed. Also consumers could download their design as wallpaper to a mobile phone NikeiD reached $100 million in sales within a few years of launch 21 SUCCESS STORY: NikeId Nike has put out a site (NikeiD) where you can customize a football shoe now, wide, extra wide, both physical appearance and internal structure. Tanner pointed it out. And we used the site together to order a shoe …. When I saw the Nike website, I thought ‘It’s about time.’ It’s a great marketing tool. It’s a no brainer 22 SUCCESS STORY: NikeId 23 FOR MOM HOUSEHOLD ACTIVITIES, FITNESS WALKING AND CARDIO ARE THE WAYS SHE STAYS ACTIVE Most Popular Physical Activities Participated in at Least Once a Week – Summary Total Moms Top 10 Activities Participated in by Kids 1. Help with household activities that require physical exertion (e.g. washing the car, walking the dog) 49% 1. Help with household activities that require physical exertion (e.g. washing the car, walking the dog) 63% 2. Biking for leisure or exercise 38% 2. Fitness walking 43% 3. Run/Jog 35% 3. Cardio exercise (e.g., aerobics, spinning, etc.) 30% 4. Calisthenics (e.g. jumping jacks, sit-ups, push-ups, squats, etc.) 30% 4. Calisthenics (e.g. jumping jacks, sit-ups, push-ups, squats, etc.) 24% 5. Plays in a sports team 30% 5. Weight/strength training 22% 6. Wii exercise/activity games 29% 6. Run/jog 20% 7. Fitness walking 29% 7. Wii exercise/activity games 18% 8. Swimming (not as part of a team) 28% 8. Biking for leisure or exercise 16% 9. Dance 25% 9. Swimming 16% 10.Cardio exercise (e.g., aerobics, spinning, etc) 23% 10.Dance 15% Average # of activities per week Source: Top 10 Activities Participated in by Moms Marketing to Moms Annual Media Survey, 2010, Q46-47 4.1 Average # of activities per week 3.4 = Unique to group 24 SUCCESS STORY: LUNA BAR Background Recognized need for moms to get exercise and connect with other moms Partnered with Stroller Strides to create the "Luna Moms Club" Target Moms of infants and toddlers Skews to first-time moms Key Marketing Tactics and Results Require Stroller Strides franchisees to create a local Luna Moms Club in their market Make Luna Moms Clubs available in communities at local level Support with website to help mom find groups Luna Moms club offers: play groups, mom's night out, philanthropic events 25 SUCCESS STORY: LUNA BAR Photo Source: “Strollers: Mother of all workouts” Star Tribune: Oct. 12, 2011 Fitness classes that incorporate the baby and carriage are getting the attention of new moms across the Twin Cities 26 Infant/ Toddler Moms Preschool Moms Mom's Concern For Her Child • Sports not a focus • Exercise by moving around • Keeping kid active • Sports starting Mom's Concern For Herself THEME RESOURCE GUIDE – EXERCISE & SPORTS • Exercise • Get back in shape • Exercise and fitness = Higher Mom’s priority Elementary School Moms Middle School Moms • Sports • Sports focus participation family lifestyle • Exercise and • Exercise and fitness fitness • Weight management = Moderate Mom’s priority Moms of Young Adults Moms of Teens • Depends on whether child plays sports • More concerns with adult child’s exercise but little ability to impact • Exercise for health • Exercise for health = Lower Mom’s priority 27 MOMS FOCUS SHIFTS AS HER CHILD AGES - MORE TIME FOR SELF STARTING IN THE MIDDLE SCHOOL YEARS' Activities to be a Better Mother (Among Moms Who are Married/Living with a Partner) 28 FOOD: STEALTH VEGGIES & PANINI MAKING 29 MOMS ARE TRYING TO HELP IMPROVE FAMILY HEALTH New rules about sugar snacks/desserts More family active fitness time together New rules about snacks Sitting down for dinner more often More kids’ sports or fitness extracurricular activities New rules around eating and fitness in your household Compared to last year Total Moms 30 30 MOMS ARE TRYING FOR HEALTHIER FAMILY EATING % of Moms Changing The Way Their Family Eats To Be More Healthy By Age of Oldest Child Moms with Oldest Child Age 2 and Under Moms with Oldest Child Age 3-6 Note: Total Moms 73% Source: Marketing to Moms Annual Media Survey, 2010, Q44 Moms with Oldest Child Age 7-12 Moms with Oldest Child Age 13-17 31 MOMS TRY TO EAT DINNER TOGETHER, BUT THAT BECOMES DIFFICULT AS THE CHILD BECOMES A TEENAGER Number of Times Per Week Family Eats Dinner Together By Age of Oldest Child Daily 41% 33% 47% 48% 46% 32% 5-6 times a week 30% 24% 23% 33% 22% 3-4 times a week 19% 19% 21% 14% 1-2 times a week Never 7% 3% 5% 5% Total Moms Moms with Oldest Child Age 2 and Under 10% 7% 1% 5% 2% 4% Moms with Oldest Child 3-6 Moms with Oldest Child 7-12 Moms with Oldest Child 13-17 32 Source: Marketing to Moms Annual Media Survey, 2010, Q33 STEALTH VEGETABLES HELP MOMS HELP KIDS EAT HEALTHY (everything from muffins to meatballs) 33 MOMS PUT HEALTHY FOOD ON TOP FOR THEIR KIDS, BUT CALORIES RANK HIGHER FOR HERSELF Top 10 Most Important Food Ingredients/Characteristics Top 2 Box Agreement Very/Somewhat Important (Total Moms) Important When Shopping for Mom Important When Shopping for Child(ren) 83% 1. Whole grains 2. Vitamins & minerals 3. Fiber 82% 78% 80% 1. Whole grains 2. Calories 78% 3. 78% Vitamins and minerals 4. Sugar 75% 4. Fiber 78% 5. Fat 73% 5. Fat 77% 6. Sodium 72% 6. Sugar 71% 7. Calories 70% 7. Sodium 68% 8. No artificial ingredients or additives 68% 9. No high fructose corn syrup 66% 9. No high fructose corn syrup 10. All natural 65% 10. No artificial ingredients or additives 8. Carbohydrates 67% 61% 61% 34 Source: Marketing to Moms Survey, 2010, Q38, 39 SUCCESS STORY: SARA LEE SOFT & SMOOTH Background Moms wanted their children to eat whole wheat or multigrain bread for nutrition but many children do not like the ‘grainy’ texture and the brown color Sara Lee Soft & Smooth bread is ‘whole grain’ white bread that looks and tastes like traditional white bread, but delivers a health benefit of whole grains Target Elementary School Moms - These moms want a little more nutrition without sacrificing the taste/texture that their kids are used to (e.g., white bread) Key Marketing Tactics and Results Sara Lee capitalized on technology and focused on marketing to build the Soft & Smooth brand (edit to that one) Focus limited resources Leverage social media, e.g., Social Networking on Cafe Mom, Soft & Smooth Switcheroo, etc. Create strategic partnership with Disney 35 SOFT AND SMOOTH – FOCUSED MARKETING WITH A STRONG PARTNERSHIP Strategic Approach to Marketing Spend Prioritize Brands Leverage partnerships vehicles and “borrow” equity as much as possible for marketing efficiency Same basic year to year marketing calendar to ensure company alignment In store, regional spend basic for bread category Priority 1 Strategic Partnerships Disney Campaign Joy of the Lunchbox Targets – Kid & Parent Leverages Disney Media vehicles (Disney Channel, Radio, and .com) for nationwide reach & efficiency In-store Marketing Calendar – Consistent Year by Year promotions Back To School (August/September) Return To School (January/February) 36 EDUCATION: FROM LEAPFROG TO COLLEGE 37 EDUCATION IS THE #1 MAJOR SPENDING ITEM FOR MOMS Approach to Major Spending Items This Year – Planned to Purchase and WILL ACTUALLY OR HAVE ALREADY PURCHASED Education 35% Vacation 31% 22% Computer Equipment Home Appliance (e.g., washer/dryer, stove, grill) New House 16% 8% House Renovation/repairs 19% Home Electronics (e.g., TV, Stereo) 16% New Car Source: State of the American Mom 2009 12% 38 SUCCESS STORY: PURDUE UNIVERSITY Background Purdue University recognized the increasing role of parents, particularly moms in college research and decision process as well as the ongoing close relationship between mom and her young adult child while in college Target Moms of juniors and seniors in high school, moms of current Purdue students Key Marketing Tactics and Results Shifted marketing resources for both acquisition and retention Increased distribution of parent e-newsletter by 94% Create university website specifically for parents and families, Family calendar for parents Facebook page for parents and families Acceptance up among female students 39 SUCCESS STORY: PURDUE UNIVERSITY Parent e-newsletter increased distribution by 94% with a 50% open rate. Topics include: winter weather, ordering a "Boiler Treat Pack", etc University website specifically for parents and families Parents and families Facebook page. Threads include: travel without a vehicle, advisor issues, shuttle services, summer internships, etc Family calendar 40 TECHNOLOGY: TEXTING, TALKING, TEACHING 41 MOMS DRIVE TECHNOLOGY PURCHASE DECISIONS Higher income moms have less say in the purchasing decision Me Mutual Decision Significant Other Child When it comes to buying technology, who is most important to the buying decision? 42 42 MOST MOMS USE HOME COMPUTERS MOST REGULARLY FOR INTERNET ACCESS, WITH 25% USING SMART PHONES Devices used regularly to access the internet (Check all that apply) 1. Home desktop computer (at home) 2. Home family laptop computer (shared at home) 3. Work desktop or laptop computer (at work) 4. Have personal laptop computer* (at home) 5. Smart Phone 6. Gaming Device like Xbox 360, PS3, WII 7. Tablet PC or eReader for books 8. Smart Television/Web TV *Note: (Not shared) Source: State of the American Mom 2011, Q25 43 SMART PHONES ARE GETTING A GOOD WORKOUT FROM MOMS FOR STORE LOCATIONS, HOURS, SCHEDULING AND KEEP IN TOUCH Situations where Moms use the smart phone (Among the 44% of Moms who own smart phones) 1. To look up store locations and hours on my phone 2. I keep my family’s schedule on a smart phone 3. I text my friends/ family while shopping to get their input on clothing choices 4. I keep my work schedule on a smart phone 5. I pull recipes and menus from my phone Source: State of the American Mom 2011, Q45 6. I Google or search online for nutrition information while I am at store 7. I keep a grocery list in my phone 8. I use online coupons from my phone 9. I keep track of the total spent on my phone as I am shopping 10. To use QR codes 44 TEENS ARE THE MOST LIKELY TO INITITATE CONTACT WITH MOM VIA CELL Cell Phone Interaction % Who Call Each Other Equally or Child Calls More Often By Age of Child Moms with Oldest Child Age 3-6 Moms with Oldest Child Age 7-12 Moms with Oldest Child Age 13-17 Note: Total Moms at 52% Kids < 2 not included 29% 57% 62% 45 SUCCESS STORY: IPHONE Background Moms rely on cell phones as their ‘lifeline’ and carry them at all times. Apple recognized that mom could use the same device for cell phone, camera, camcorder (to take videos of her child), Internet access, and text messaging and that her child could use this as a toy (coloring, sticker apps) Target Moms of kids ages 1-12 Encourage specific applications for kids as young as 18 months and games for older kids. (Unlike Blackberry which is focused on email) Key Marketing Tactics and Results 50% of moms have up to 6 apps on their phone for the kids to play with – keep kid happy while mom is driving Moms are using to: 61% find store locations and hours, family schedule 49%, texting while shopping for input on clothing choices 49%, pulling recipes and menus 33% 46 VIDEO OF BABY USING MAGAZINE THINKING IT IS A BROKEN IPAD 47 HOW CAN YOU BECOME MORE EFFECTIVE WITH MOM? 1. Pick a Focus by Age of Oldest Child Young Adults 18-29 2. Tune In & Align with Mom’s Hot Buttons 3. Leverage Best Practice “Success Stories” Exercise & Sports Elementary schoolers 7-9 Fashion & Beauty Safety & Health 48 HOW MIGHT YOU APPLY THIS? AN INTEGRATED APPROACH A. Mom’s Oldest Kid Age (MOKA) and Hot Button Opportunity Assessment 1. Diagnostic Review and Hypothesis Development 2-3 weeks 2. Demand Discovery Opportunity Identification 6 weeks (concurrent with Step 3) 3. Nielsen 360 Assessment 6 weeks (concurrent with Step 2) 4. Interim Strategic Review 1 week B. MOKA Mom Optimized Go to Market Actions 5. Nielsen Audience Assessment and Measurement 3-4 weeks 6. Safari Go to Market and Messaging Optimization 4-5 weeks 7. Executive Summary and Integrated Recos 1-2 weeks 49 LEARN MORE: WWW.TUNINGINTOMOM.COM AMAZON, BARNES & NOBLE, WAL-MART FOLLOW US ON TWITTER: @MICHALCLEMENTS @TERILUCIE 50