Marketing to the me generation

MARKETING TO THE ME GENERATION
Carman Allison VP Consumer Insights - Canada
#MILLENNIALTALK

Copyright©2012TheNielsenCompany.Confidentialandproprietary.
2
THE CHALLENGE FOR GROWTH

3
CPG STILL SPUTTERING FOR GROWTH IN NORTH AMERICA
United States
Nielsen: MarketTrack - Total Tracked Sale
52 wks ending March 8, 2014
Canada
+1.4 +0.2
Dollars
Nielsen: ScanTrack - Total Tracked Sale
52 wks ending March 25, 2014
UnitsDollars Units
+1.1 -0.1

4
5
2
2 2
2 2
0
2
0 0 0
1
2009 2010 2011 2012 2013 Q1 2014
$ % Chg Unit % Chg
Inflation +5 +0 +2 +2 +2 +1
2014 IS STARTING OFF SLOW
Source: Nielsen MarketTrack, National All Channels – 52weeks to March 8, 2014 - Total Tracked Sales excluding Fresh Random Weight
Slow growth, driven only by inflation

5
TRENDS IMPACTING GROWTH
• Economy still fragile
• Cautious Consumer
Cyclical Changes
• Value Motivators
• Retail, Redefined
• Connected Consumer
• Evolving Consumer
Structural Changes

6
Video

7
MILLENNIALS ARE…
Redefining
how we
communicate
First generation to
grow up with the
internet
Most familiar with
technology
than previous
generations
Entering the
work force
Consumers of the
future

8
COMMON GENERATIONAL DEFINITIONS
While there are many generalizations, there is no “official” definition
<20
‘Gen Z’
23%
19-37
‘Gen Y’
26%
38-47
‘Gen X’
7%
48-67
‘Boomers’
28%
68+
‘GI’
16%
Source: Statistics Canada – Census 2011
7.9 9.1 2.4 9.6 5.5Millions

9
CURRENTLY MILLENNIALS ARE UNDER REPRESENTED
IN PURCHASING POWER
Millennials’ Importance
26%
Source: Source Nielsen Homescan – 52 weeks to March 29, 2014
14% 12%
% of Population
9.1 M
% Household Heads
2.0 M
% of CPG $’s
11.7 B

10
42% of Millennials
between 20-29 years
old still live at home
“
”
Source: Statistics Canada – Census 2011

11
MILLENNIALS SPEND 18% LESS
Spend Per Household
Total Millennials
$7,214
$5,899
Source: Nielsen Homescan 52 weeks to March 29, 2014 – HH <35 years

12
EATING OCCASIONS
Millennials Boomers
79%
In Home meals
68%
Only 68% of Millennial meal occasions occur in the home
38% of Millennials vs. 32% of Boomers are more likely to prefer immediate prep time
Source: Nielsen Consumption Diary, Time Period: Q2 2013 -Q1 2014
IN HOME IN HOME

13
GENERATION WHY?

14
HOW ABOUT 24 BILLION REASONS?
2024 $24.3 Billion 23% of CPG
Growth Opportunity in 10 years:
New Households $10.0 Billion
Increased Consumption $14.3 Billion
Today $11.7 Billion 12% of CPG
Source: Nielsen Homescan 52 weeks to March 29, 2014 – HH <35 years – Based on older generation spend

15
Source: Statistics Canada M: Millions
2010 2020 2030
Millennials Boomers
MILLENNIALS WILL SURPASS BOOMERS BY 2020
26%
28%
8.9 M
9.7 M
26%
24%
10.0 M
9.4 M
26%
20%
11.0 M
8.3 M
34.2 M 38.4 M 42.1 M
Total
Canada

16
THE CPG GROWTH ENGINE WILL SWITCH GEARS
By 2020…
Source: Nielsen Homescan 52 weeks to March 29, 2014 – HH <35 years – Based on older generation spend
MILLENNIALS BOOMERS
+$12.6 B
+207%
-$4.3 B
-9%

17
AGING IN AND AGING OUT
Nielsen Homescan – Dollar Consumption Index – 52 wks to December 28, 2013 – Consumer Facts CPG Departments
HH Dollar Index 55-64 yrs 65+ yrs Trend
OTC 118 146
Baking Needs 103 106
Pet Needs 136 89
Paper Products 109 95
Oral Hygiene 107 100
Confectionery 106 87
Bakery 104 90
Beverages 103 81
Household Products 101 90
Condiments & Sauces 101 89
As consumers age, they change their consumption of key CPG departments
+
+
-
-
-
-
-
-
-
-

18
WHICH CPG DEPARTMENTS ARE MOST COMMONLY
FOUND IN A MILLENNIALS’ SHOPPING BASKET?
Nielsen Homescan – Dollar Consumption Index – 52 wks to December 28, 2013 – Consumer Facts CPG Departments Relative Index (82 for total)
Relative Dollar Index <35 years
Baby Care 384
Desserts 150
Body Care 122
Hair Care 120
Prepared Foods 120
Refrigeration & Dairy 118
Frozen Food 114
Snack Foods 112
Produce 111
Condiments & Sauces 111

Expensive house
market
High
unemployment
rates
Staying in
school longer
Urban
Cultural
Delaying
Marriage

20Source: Nielsen Spectra, March 2014 - < 35 years old
Post Secondary Educated
54%
Single
61%
43%
Rent their residence

21
MILLENNIALS: FIND US IN CITIES
79%
Source: Stats Canada 2011 Census , Nielsen Spectra, March 2014 <35 years old
% who live in a CMA
(Census Metropolitan Area)
Top Cities: Population Index (100=26%)
Vancouver 136
St. Johns NF 123
Calgary 120
Montreal 118
Regina 115
Toronto 112
Saint John NB 110
Halifax 109
Ottawa 109
Winnipeg 109

22
MILLENNIALS ARE MORE DIVERSE
Source: Statistics Canada
For visible minorities…
Canada:
40.1
33.4
Average age
vs
7 out of 10Visible Minorities are
first generation Canadian…

23Source: Nielsen Global Online Consumer Confidence Surveys, Q3 2013 - Canada – Nielsen 2013 Gas Impact Survey
I do not intend to buy a car in the near future (34%)
I wish I could get where I am going conveniently without
a car (72%)
A car is simply a tool to get me where I am going (81%)
“
12% don’t own a car
(vs 8% population)
7% own a hybrid/electric
(vs 8% population)
Another 10% planning to buy

24
YOUNGER GENERATIONS ARE PLAGUED WITH
HIGHER LEVELS OF UNEMPLOYMENT
Source: Statistics Canada, December 2013
Source: Nielsen Global Online Consumer Confidence Surveys, Q1 2014 - Canada
Unemployment Rates
Canada:
7%
However
64%feel positive about their
personal finances (vs 52% CA)
60% Report excellent or good
job prospects (vs 68% CA)
10% have no spare cash
(vs 20% CA)
14%
unemployed
(under 25)

25
Source: Statistics Canada
39%
36%
< $30K $30K - $70K > $70K
> $100K
26%
21%
36%
43%
Millennials Canada
NOT AS CASH STRAPPED AS YOU WOULD THINK
12%
18%

26Source: Nielsen Global Online Consumer Confidence Surveys, Q1 2014 - Canada
106
<35 89
55+
99
35-54
MILLENNIALS ARE MORE CONFIDENT THAN
OLDER GENERATIONS
Consumer Confidence Index by age group

27
Despite being optimistic,
I still demand value and
authenticity.
“
”

28
Nielsen, PanelViews, Economic Impact, survey 2013
Nielsen, PanelViews, Consumer Opinions survey, 2013
THE LOYALTY CHALLENGE
Buy more private label
(index: 125)
Shop at stores with
lower prices
(index: 114)
73%
Price, first thing to look at
when purchasing
(index: 120)
81%
76%
70%
Easily persuaded to buy a
different brand
(index: 122)

29
39%
30%
MILLENNIALS SPEND ALMOST 4 OUT OF EVERY 10
CPG DOLLARS IN DISCOUNT RETAILERS
Source: Nielsen Homescan 52 weeks to March 29, 2014 – Total Tracked upc’s
Discount Dollar Loyalty
Millennials Total CA
30%
CHANNEL $ LOYALTY
Grocery 46% 43%
Drug 4% 6%
Mass 16% 12%
W-Club 9% 11%
M T

30
THE MILLENNIAL #GROCERYTRIP
Nielsen, PanelViews, Social Media, survey 2013
Over 50% check
reviews & coupons
online
57% know the stores
that offer the
best price
49% will buy
more for loyalty
points
73% prefer a “one
stop shop”
experience
51% say trips are
“quick trips”
41% would use
their phone to pay
73% say price is the first
thing to look at
when purchasing
60% would prefer
loyalty card on their
phone, not plastic

31
MILLENNIALS SUPPORT SOCIAL CAUSES
70%
Find it important
to have programs
to improve the
environment
48%
Will spend more on
products from socially
responsible
companies
44%
Has purchased from
a company that
gives back to
society
44%
shop at
retailers that
support social
causes
Authentic, creative and diverse

32
I want to watch what I
want, when I want…
and for free.
“
”

33
Media Usage
MEDIA HABITS DIFFER BETWEEN GENERATIONS
Source: Nielsen Spectra, PMB , January 2014
Boomers
Millennial
TV
Internet
Magazines
Newspaper
Radio
LIGHT HEAVYMEDIUM

34
Source: Nielsen Borealis; TV Data Source: BBM Canada
Millennials
Boomers
OVER THE PAST 3 YEARS, MILLENNIALS ARE
WATCHING LESS TRADITIONAL TELEVISION
2012 2013 2014
22hr 48min
33hr 36min
22hr 29min
33hr 47min
20hr 52min
33hr 59min
4.9 hrs/day
3.0 hrs/day

35
TOP 10 TV SERIES AMONG MILLENNIALS IN 2013
Source: Nielsen Borealis; TV Data Source: BBM Canada – TV Series Excluding specials
1. Amazing Race Canada 1
2. Big Bang Theory 3
3. Masterchef 58
4. Stanley Cup Finals 5
5. Sochi 2014 6
6. La Voix 2
7. Agents of S.H.I.E.L.D 53
8. Under the Dome 4
9. Amazing Race 9
10.Grey’s Anatomy 22
Boomers
FEMALES:
7 of 10 are
reality shows
MALES:
2 of 10 are
reality shows

36
MILLENNIALS ARE CUTTING THE CORD
% with no cable or TV subscription
Millennials Boomers
26%
12%
Source: Nielsen Spectra, 2014 Mar

37
LESS CABLE BUT MORE ONLINE MEDIA
46% News Websites
34% Watch TV online
26% Newspapers Online
22% Radio Online
Boomers
23%
5%
14%
7%
Source: December 2013 Nielsen PanelViews Social Media Survey
Millennials

38
We can post, tweet and
text all about it, right now,
24/7, globally, anytime,
anywhere.
“
”

39
POWER AT THEIR FINGERTIPS
% Total Ownership
12%expected to buy in next year
63%potential ownership
Source: Nielsen PanelViews, Social Media Survey, 2013
51%
7%expected to buy in next year
86%potential ownership!
% Millennials Ownership
79%

40
65% have
purchased or are
willing to purchase
via virtual store
70% have
purchased from an
online store
E-commerce M-commerce
Nielsen, PanelViews, Social Media, survey 2013
LEADING TO ONLINE SALES

41
WHAT ARE MILLENNIALS BUYING ONLINE? AND
WILLING TO BUY ONLINE?
Source: Canadian PanelViews Social Media Survey Oct 2013
Currently Buying Online
27% Toys
22% Health & Beauty
21% Cosmetics
15% Paper Products
12% Baby Products
11% Household Products
11% Confectionery
9% Pet Products
8% Non Perishable Food
7% OTC Drugs
7% Beverages
6% Perishable Food
5% Fresh Produce

42
WHAT ARE MILLENNIALS BUYING ONLINE AND
WILLING TO BUY ONLINE?
Source: Canadian PanelViews Social Media Survey Oct 2013
Currently Buying Online Willing to Buy Online
27% Toys
22% Health & Beauty
21% Cosmetics
15% Paper Products
12% Baby Products
11% Confectionery
9% Pet Products
7% OTC Drugs
7% Beverages
6% Perishable Food
5% Fresh Produce
69% Paper Products
60% Toys
58% Heath & Beauty
51% Pet Products
51% Confectionery
50% Cosmetics
50% OTC Drugs
47% Beverages
43% Baby Products
27% Perishable Food
25% Fresh Produce

43
MAKING THE MOST OF THE $24B OPPORTUNITY
Activate
plans through
superior sales
execution
Engage
them through
effective and
efficient
marketing
Identify
your best
customers
Develop
products and
content to
meet their
needs
Source: Forbes

44
AND ACT!
Find us in cities (or still living with Mom & Dad)
Respect our authenticity, creativity and diversity
Support our causes; brands that are a good “friend”
Give us a deal, but don’t scrimp on quality
Reach us via social media and mobile; e-commerce
Relate to us—make it relevant, personal, useful

Consumer Shopping Behaviour
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