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Pivotal Point Consumer
1.
Deep view and
reach into 76% of American households Discovering The Pivotal Point Consumer™ A Milestone Study on American Shoppers Who Drive CPG Brand Volume © Pointer Media Network. 2008. All Rights Reserved.
2.
About The Study
• Groundbreaking study about today’s surprisingly small consumer concentrations for CPG brands • Unprecedented in its scope and granularity: Tracks purchases of 54 million American shoppers across 12 months and 1,364 brands • Debuts the Pivotal Point Consumer™, the buyers who drive 80% of brand volume • Analyzes established brands, new products, brand extensions and emerging preference categories, e.g. organic, green, heart healthy, etc. © Pointer Media Network. 2008. All Rights Reserved. 2
3.
Study Partners
Pointer Media Network is the world’s largest and most precise addressable media network. • Tracks purchases of an estimated 76% of American households • Reaches 140 million shopper IDs • Delivers compelling ads and offers based on actual purchases • Powered by Catalina Marketing, global leader in behavioral marketing The CMO Council is the world’s leading peer-powered network of corporate marketing executives • Drives thought leadership around issues critical to marketing executives • 3,500 members globally control over $100 billion in annual marketing spend © Pointer Media Network. 2008. All Rights Reserved. 3
4.
Why This Study
Is Important Until now, lack of census level data hid truth about 1 Pivotal Point Consumer Reality of small consumer penetrations surprises 2 even senior CPG executives Requires new strategies from brand managers, 3 advertisers & media planners • Mandate for precision marketing • Need to understand and engage Pivotal Point Consumer © Pointer Media Network. 2008. All Rights Reserved. 4
5.
Findings At A
Glance • Age of fragmentation and targeted brands reducing size of consumer concentrations • Only 2.5% of shoppers account for 80% of average CPG brand’s volume • Only 25 of 1364 brands studied had a Pivotal Point Consumer™ base over 10% of shoppers • New brands and brand extension have even smaller penetrations • Pivotal Point Consumers have high per capita value for CPG brands • But they do not fit neatly into demographic targets © Pointer Media Network. 2008. All Rights Reserved. 5
6.
The Age of
Fragmentation: What Mass Market? • Consumers empowered by unprecedented choice in product and media selection • CPG manufacturers addressing more granular consumer preferences and needs with thousands of new brands and brand extensions • More than 25,000 CPG products debuted in 2007; 10 times the number in 1980 • Average household receives over 100 television channels, while spending more time on the Internet • Identifying and reaching your consumer more challenging then ever before © Pointer Media Network. 2008. All Rights Reserved. 6
7.
New Products Rely
On Smaller Concentrations Among nine of the products IRI identified as 2007 new product Pacesetters, only one had a Pivotal Point Consumer™ base of more than 3%¹ © Pointer Media Network. 2008. All Rights Reserved. ¹ Nine of the ten IRI Pacesetters were studied 7
8.
Line Extensions vs.
Master Brand Concentrations – Coca-Cola Coca-Cola® label brands have a combined Pivotal Point Consumer™ base of 18.8%, but among sub- brands only Coca-Cola® Classic has a base of more than 10% © Pointer Media Network. 2008. All Rights Reserved. 8
9.
Line Extensions vs.
Master Brand Concentrations – Tide Tide® label brands have a combined Pivotal Point Consumer™ base of 12.2%, but sub-brands all have a base under 2.5% © Pointer Media Network. 2008. All Rights Reserved. 9
10.
Emerging Categories –
Green Products As a niche segment, Green product brands depend on a smaller Pivotal Point Consumer™ concentration © Pointer Media Network. 2008. All Rights Reserved. 10
11.
Emerging Categories –
Heart Healthy Heart Healthy orange juice brands underscore the smaller penetrations in emerging preference categories. © Pointer Media Network. 2008. All Rights Reserved. 11
12.
Valuing The Pivotal
Point Consumer™ Pivotal Point Consumers frequently have a high per capita value to brands, highlighting the need to understand and reach them. © Pointer Media Network. 2008. All Rights Reserved. 12
13.
Pivotal Point Consumers Are
Hard To Reach Preliminary research by Pointer Media Network indicates that traditional demographic targeting misses as much as 76% of Pivotal Point Consumers © Pointer Media Network. 2008. All Rights Reserved. 13
14.
Conclusion – Precision
and Personalization Are Key • Today, all CPG brands are targeted • The transition from mass to micro-markets is well underway • Marketers must respond with greater precision and personalization in order to reach the right consumers • Targeted brand messaging and addressable media will be critical reaching the right consumers © Pointer Media Network. 2008. All Rights Reserved. 14
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