2. 2
Research Integration
This presentation draws from multiple pieces of research including:
- Market Structure Study
- Preference Segmentation
- Brand Equity Tracking
- Quarterly Segment-Based Panel Tracking
- Excedrin - Source of Volume
6. 6
What is Market Structure?
• Market Structure
- is a description of the levels at which products in a given market
compete with one another
– is a behaviorally-based analysis that evaluates and orders product
attributes.
– examines product purchases among households over an extended
period of time.
– reflects how much purchasing behavior each attribute explains.
• Attribute hierarchies are based on actual purchase patterns not stated
importance to consumers.
• Behavioral Market Structure is automatic and unconscious.
– Need to understand where attitudes and behavior align and where
they don’t
7. 7
Market Structure Provides Important Insights
• …Market Structure as a way to manage my business
• What are the largest influencers in the market that drive behavior?
• What is the competitive landscape?
• What other key influences exist in the market?
• Where are the biggest opportunities for new products?
• Which is the most efficient way to spend (e.g. brand or sub-brand)?
• How can our current products best compete?
8. 8
Market Structure – Executive Summary
• Brand is the key driver in the analgesics category.
–Advertise based on brand
–Build merchandising based on Brand blocking
• Ingredient may be the key driver for switching within the
franchise, while at the same time may be a barrier of trial for
non-users.
- While consumers recognize there are ingredient
differences, they are not focused on actual
ingredients and it is not surprising to see ingredients
linked to brand as key drivers.
10. 10
Excedrin / Analgesics Category Structure Details
• Sample Size:
– 34,951 Households (Structure component excludes One Time Buyers)
• Purchases:
– 295,687 units across 240,849 trips
• Data:
– ACNielsen Homescan Panel – 61,500 Panelists
• Geography:
– Total U.S. – All Outlets (food, drug, mass including Wal-Mart, Club, etc.).
• Time Period:
02/24/2002 thru 02/21/2004
- Typically, Market Structures are stable for a period of several years,
changing only when a dramatic series of new product offerings are
introduced to a category. Consumer segmentation can change as a
function of manufacturer target activity.
• The Model evaluates household purchases across occasions to develop
purchase patterns. Product characteristics are tracked to understand
important drivers of purchase, leading to identification of purchase patterns
for each household.
12. 12
Attribute Weights
Total US – All Outlets Combined
4.5
9.8
12.8
15.9
18.4
38.6
Brand
Ingredient
Strength
Size
Special / Bonus
Pack
Form
• Brand and Ingredient
comprise 57% of purchase
activity.
• Importance of ingredient and
strength point to the
importance of sub-brands
(Deal)
Definition of Attribute Weight:
Attributes are unique characteristics by product, within the data, that identify each item purchased.
Weights are based on their relative contribution to purchase probability.
13. 13
Brand is the highest level at which items in this category
compete, driven by their unique sub-brands
Internal Analgesics Attribute Hierarchy Level 1
LEVEL 1
BRAND
38.6% Importance to Category
Brand A Brand B Brand C Brand D Brand E
LEVEL 1A SUB-BRAND
Sub-brand A Sub-brand B Sub-brand C Sub-brand D Sub-brand E
Implications:
Brand, as the primary driver in the structure, indicates that consumers are closely tied
to their preferred brand (s).
- It is difficult to get a consumer to try a new brand unless a brand offers a unique
benefit (e.g. Migraine) that the portfolio does not offer,
• Provide continuous support for Excedrin as the master brand vs sub-brand focus.
14. 14
Brand is the highest level at which items in this category
compete, driven by their unique sub-brands
Internal Analgesics Attribute Hierarchy Level 1
LEVEL 1
BRAND
38.6% Importance to Category
Brand A Brand B Brand C Brand D Brand E
LEVEL 1A SUB-BRAND
Sub-brand A Sub-brand B Sub-brand C Sub-brand D Sub-brand E
• New products will be driven by the positioning of the parent brand
– For Excedrin stay within Headache pain
– Body Aches and pains should be driven by another brand in the Consumer
Medicines portfolio (e.g. Bufferin).
– Sub-brands carry all of the positives and negatives of the franchise.
15. 15
LEVEL 1
BRAND
38.6% Attribute Importance
Brand A Brand B Brand C Brand D Brand E
LEVEL 1A SUB-BRAND
Sub-brand A Sub-brand B Sub-brand C Sub-brandD Sub-brand E
LEVEL 2 INGREDIENT
18.4% Attribute Importance
Acetaminophen Ibuprofen Aspirin Naproxen Other
Implications
Ingredient is the 2nd key driver and is closely tied to brand and sub-brand as each
stands for a specific ingredient or combination of ingredients
- This unique position has moved brands, driven by their ingredient option, to specific
portions of pain relief and need state.
For Excedrin, ingredient is linked to treating Strong Headache pain.
In order to move into other pain states, other ingredients ties to another brand
is what is required. (e.g. Bufferin or a new product).
Ingredient is the second key driver of the market.
16. 16
LEVEL 1
BRAND
38.6% Attribute Importance
Brand A Brand B Brand C Brand D Brand E
LEVEL 1A SUB-BRAND
Sub-brand A Sub-brand B Sub-brand C Sub-brand D Sub-brand E
LEVEL 2 INGREDIENT
18.4% Attribute Importance
Acetaminophen Ibuprofen Aspirin Naproxen Other
LEVEL 3 STRENGTH
15.9 % Attribute Importance
Regular Strength Extra Strength Low Dose Maximum Strength Other.
Implications:
- For Excedrin, is there an opportunity to broaden beyond Extra Strength/Strong into
lower or moderate strengths?
- Is this the opportunity to leverage Bufferin for:
Minor Headache
Body Pain
Low Dose maintenance aspirin product to compete w/St. Josephs, etc.
At the 3rd level, strength is a mid-tier driver of purchase.
17. 17
LEVEL 1
BRAND
38.6% Attribute Importance
Brand A Brand B Brand C Brand D Brand E
LEVEL 1A SUB-BRAND
Sub-brand P Sub-brand M Sub-brand T Sub-brand Q Sub-brand PM
LEVEL 2 INGREDIENT
18.4% Attribute Importance
Acetaminophen Ibuprofen Aspirin Naproxen Other
LEVEL 3 STRENGTH
15.9 % Attribute Importance
Regular Strength Extra Strength Low Dose Max Strength Other
LEVEL 4 SIZE
12.8% Attribute Importance
24CT 50CT 150CT100Ct Other
At the 4th level, size is a factor in purchase criteria.
Implications:
- To generate trial, while at the same time meeting the repeat purchasing needs of
consumers, a range of sizes is required.
- Assortment work indicates that each size (small vs medium vs large) fulfills specific
needs at retail
18. 18
1.9
1.6
1.8
1.5
2.0
1.9
1.5
2.0
Total Category Total Excedrin
24CT 50CT 100CT 250CT
• For the category, purchase frequency decreases for larger pack size (except for
100ct).
• For Excedrin, purchase frequency increases with larger pack size, possibly due to
more loyal and aggressive users purchasing the larger sizes.
Excedrin Franchise
Purchase Frequency – 52 Week Ending 4/3/04
19. 19
LEVEL 1
BRAND
38.6% Attribute Importance
Brand A Brand B Brand C Brand D Brand E
LEVEL 1A SUB-BRAND
Sub-brand P Sub-brand M Sub-brand T Sub-brand Q Sub-brand PM
LEVEL 2 INGREDIENT
18.4% Attribute Importance
Acetaminophen Ibuprofen Aspirin Naproxen Other
LEVEL 3 STRENGTH
15.9 % Attribute Importance
Regular Strength Extra Strength Low Dose Maximum Strength. Other
LEVEL 4 SIZE
12.8% Attribute Imoportance
24CT 50CT 150CT100Ct Other
LEVEL 5 DEAL
9.8% Attribute Importance
Deal
(Free Goods)
Non-Deal
(No Free Goods)
At the 5th level, Deal is not a strong category attribute
compared to other drivers.
Implications:
- A significant portion of Dealing is likely subsidizing existing brand buyers rather than resulting in
significant amounts of trial generation/positive brand shifting.
- However, some dealing is important in context to other brands for those consumers looking for
“value” comparisons.
20. 20
LEVEL 1
BRAND
38.6% Attribute Importance
Brand A Brand B Brand C Brand D Brand E
LEVEL 1A SUB-BRAND
Sub-brand P Sub-brand M Sub-brand T Sub-brand Q Sub-brand PM
LEVEL 2 INGREDIENT
18.4% Attribute Importance
Acetaminophen Ibuprofen Aspirin Naproxen Other
LEVEL 3 STRENGTH
15.9 % Attribute Importance
Regular Strength Extra Strength Low Dose Maximum Strength. Other
LEVEL 4 SIZE
12.8% Attribute Imoportance
24CT 50CT 150CT100Ct Other
LEVEL 5 DEAL
9.8% Attribute Importance
Deal
(Free Goods)
Non-Deal
(No Free Goods)
Level 6 Form
4.5% Attribute Importance
Tablet OtherLiqudLiquiGelGelTab/CapCaplet
Implication:
- Form is not as critical a driver as originally thought
- While form variety is somewhat important, the basic forms look to be highly interchangeable.
Additional forms of the same sub-brands will do little to drive incremental volume.
Tie a form to a clear benefit. e.g.
Faster Acting
More Convenient
As a category driver, form is secondary across All Outlets at
Level 6
21. 21
Within each specific outlet, Brand & Ingredient have the
highest Attribute Importance.
Brand is most important in
Food, Drug & Mass.
Within specific outlet,
recommendations for
refinement based on
consumer traffic should
include:
Brand blocking
Ingredient Type Variety
Strength Variety
Form variety in Drug
% Attribute Importance
Total US
Brand 39
Ingredient 19
Strength 16
Size 12
Spcl / Bonus 10
4
Food
40
19
17
9
11
4
Drug
36
18
16
9
16
5
Mass
42
19
17
11
6
5
Total US attribute weights provide opportunity to understand
general strategic alignment. However, Class of Trade dynamics
vary.
Form
22. 22
Attribute Drivers Across Key Brands
After brand/ingredient/strength are selected, most brands are Deal of Form-driven.
* Parent = Primary Sub-brand within each Brand
Excedrin Tylenol Advil Aleve Bayer Motrin
Adult Sub-Brand
Parent Form Form Form Deal/Non-Deal Deal Count
Tension Non-Deal - - - - -
Migraine Deal - Deal - - -
PM Deal Count - - Form -
Arthritis - Count - - Form -
X-Strength/Max - Form - - Non-Deal -
8 Hour - Deal - - - -
Back&Body/Calcium - - - - Deal -
Low Dose - - - - Form -
24. 24
Executive Summary – Equity Tracker / Mapping:
• Without top-of-mind or Total Unaided Awareness driving purchase intent, it can be concluded
that marketing efforts aren’t generating significant ‘product trial’. This idea is also present
within the market structure study.
• For Excedrin, neither the total population or the AMB exhibited any significant changes in
awareness. This is a continuation of a theme that MRD identified last quarter. Satisfaction is
also declining among AMB. Advertising aimed toward the AMB needs to be more
crisply targeted or, the AMB could be the wrong key target segment for Excedrin.
Brand Mapping Summary:
• Excedrin clearly linked to headache
- Non-users do not associate Excedrin to “works faster”
- Non-Users classify Advil as “appropriate for only severe headaches”
- Non-users do not associate Excedrin with minor headache relief----Bayer owns this
attribute
• “Makes you feel refreshed” is not clearly associated with one brand
- Non-users assign it to Aleve
- Users assign to Advil
25. 25
Executive Summary – Equity Tracker / Mapping – (Continued):
• Excedrin Parent is differentiated from other sub-brand offerings.
- Migraine, PM and Tension are less differentiated as they more closely interact with each other
and competition.
26. 26
No significant change in Top-of-Mind Awareness for Excedrin versus
last quarter (10%) or year-over-year (increased from 9% to 10%).
- Tylenol and Advil are down directionally from last quarter
Top-of-Mind Awareness
Total Population
36%
40%
37%38%
23% 21%
19%
21%
9%
10% 11%
8%
4% 4% 4%5%
9%
10% 10%
10%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
7/29/02 -
8/25/02
8/26 -
9/22
9/23 -
10/20
10/21-11/17 11/4 -12/9 4/21-4/30 9/15/03-
9/30/03
1/02-1/15 4/13-4/26 7/22/04-
8/4/04
Tylenol
Advil
Aleve
Motrin
Excedrin
27. 27
Excedrin’s unaided awareness is flat versus last quarter.
- Advil has declined significantly on this metric since last quarter.
- Aleve is up significantly in total unaided awareness year-over-year.
Total Unaided Awareness
Total Population
87% 88%
80%
90%
63%
66%
55%
61%
43%
48%
31%
49%
29%
33%
25%
33%
40%
43%35%
43%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
7/29/02-
8/25/02
8/26 -
9/22
9/23 -
10/20
10/21-11/17 11/4-12/9 4/21-4/30 9/15/03-
9/30/03
1/2-1/15 4/13-4/26 7/22/04-
8/04/04
Tylenol
Advil
Aleve
Motrin
Excedrin
28. 28
Total Awareness for Excedrin Tension Headache is down significantly versus
prior period (44% to 39%). This was due to lower ad spend for Excedrin Tension
Headache in early Q3 when compared to Q2. Excedrin Migraine is up (from 56%
to 60%). This is probably due to increased Migraine Rx advertising currently in
the marketplace
Total Awareness for Excedrin Sub-Brands
Total Population
82% 81%82%
85%
56% 60%
55%
74%
35% 33%
30%
0%
71% 70%72%
84%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
7/29/02
- 8/2502
9/23 -
10/20
11/4/02-
12/9/02
9/15/03-
9/30/03
4/13-
4/26
Excedrin Tension Headache
Excedrin Extra Strength
Excedrin Migraine
Excedrin QuickTabs
Excedrin PM
44% 39%
30%
29. 29
There are no changes in Excedrin purchase intent from prior period.
- Advil is down significantly and Tylenol is down directionally from prior period
purchase intent
Purchase Intent
Total Population
18%
23%
21%
24%
17%
18%
16%
14%
17%17%
15%
15%
9%
12%
10%
13%
27%
31%
28%
32%
0%
5%
10%
15%
20%
25%
30%
35%
9/15/03-9/30/03 1/02/04-1/15/04 4/13/04-4/26/04 7/22/04-8/04/04
Total Advil
Aleve
Total Excedrin
Total Motrin
Total Tylenol
% Top Box
Purchase
Intent
30. 30
Excedrin has a significantly higher percentage of satisfied users than that of
any of its key competitors
- Excedrin Satisfaction is significantly higher than prior period (45%-52%). Its
flat versus last year.
- Aleve is up directionally (41%-43%) year-over-year
Brand Satisfaction
Total Population
39%
36%
39%
41% 43%42%43%42%
52%
45%
48%
53%
31%
26%
28% 29%
35%37%
34%
36%
0%
10%
20%
30%
40%
50%
60%
9/15/03-9/30/03 1/02/04-1/15/04 4/13/04-4/26/04 7/22/04-8/04/04
Advil
Aleve
Excedrin
Bayer
Tylenol
% Very
Satisfied
31. 31
Excedrin satisfaction within AMB is significantly higher than that for all other
competing brands in this study and comparable to total population
- Excedrin is up directionally from 47% to 52% versus prior period
- Excedrin is down significantly in this metric versus year ago (61% to 52%); all other competing
brands are down directionally year-over-year
Brand Satisfaction
AMB
36%
42%41% 38%
43%
37%
42%
41%
61%
49% 47% 52%
27%28%
23% 23%
38%37%38%
34%
0%
10%
20%
30%
40%
50%
60%
70%
9/15/03-
9/30/03
1/02/04-
1/15/04
4/13/04-
4/26/04
7/22/04-
8/04/04
Advil
Aleve
Excedrin
Bayer
Tylenol
% Very
Satisfied
32. 32
Category Mapping
• Helps to answer the question - What is the definition of the category we
compete in?
– Product interaction is dependent on substitutability of attributes
• Structure is dependent upon repeat purchase activity
• Mapping provides way of evaluating the relationships between segments &
brands
– Items in close proximity are of similar positioning or are of a higher
likelihood to be cross-purchased / purchased in a complementary
fashion.
• Purchase behavior exhibited by households buying items in the category as
defined.
• Items that polarize do so because there is relatively little complementary
purchasing with other products, or it represents a highly concentrated group
of consumers that account for a large proportion of product class sales.
• Typical drivers are:
– Household Demographics
– Purchase Patterns
– Specialized usage / targets
– Etc.
34. 34
Is especially effective for headache pain
Is the brand my doctor recommends
Relieves all types of headaches
Works faster than other
pain relievers
Is appropriate for only sever headaches
Has an unique formula
Is safe
Contains an effective combination of ingredients
Is innovative
Is the best medicine for headaches
Relieves minor headache pain
Fits w ith my lifestyle
Is a good value for the money
Is a reliable brand
Is gentle to the stomach
Makes me feel refreshed after taking
Is especially effective for
feverAdvil
Aleve
Bayer
Excedrin
Tylenol
Brand Aware Non-Users
Total Population
35. 35
Works faster than other pain
relievers
Contains an effective
combination of ingredients
Is especially effective for headache pain
I s the brand my doctor
recommends
Relieves all types of headaches
Is appropriate for only sever
headaches
Has an unique formula
Is safe
Is innovative
Is the best medicine for
headaches
Relieves minor headache pain
Fits w ith my lifestyle
Is a good value for the money
Is a reliable brand
Is gentle to the stomach
Makes me feel refreshed after taking
Is especially effective for fever
Advil
Aleve
Bayer
Excedrin
Tylenol
Brand Loyalty
Total Population
37. 37
• For Excedrin, targeting opportunities exist in Segments 14 and 16:
- These segments share some demographic similarity with Excedrin’s segment 13.
- In segment 14 (Aleve), we can pursue body pain business via alternative paths, as
well as taking a part of the ‘all things for all people’ business that Aleve currently
owns. Recent sourcing data also shows high losses to/interaction with Aleve.
- In segment 16, BMS can get back some of our headache business from Advil.
- Highest potential for incremental volume and buyers is to consider a launch outside of Excedrin
brand name for pains states outside of headache.
• Segment 7 presents a switching opportunity for Excedrin:
- Multiple brands with low pill count and deal preference indicates that, while not loyal,
consumers in this segment are receptive to deal shifting.
• Segment 13 is a core Excedrin segment in terms of volume:
- Critical to defend this segment against competition.
• Segment 10 contains primarily households driven by children’s products:
- Indicating little to no opportunity for Excedrin
• Segments 1, 2, 4, 5 and 8 are Private Label/Economy Buyers with low opportunity.
Executive Summary - Segmentation
38. 38
0
5
10
15
20
% HH's 7.5 8.2 3.5 5.8 5.7 5.7 9.4 2.3 5.5 7.5 4.1 3.9 2.7 4.4 2.3 3.6 2.7 1.3 0.6 13.3
% $ Volume 9.7 9.4 8.0 7.7 7.2 6.7 6.7 6.6 6.2 4.2 3.9 3.6 3.5 3.4 3.4 3.3 2.5 1.4 0.2 2.3
$ / HH Index 130 115 228 132 126 118 72 286 113 55 94 91 130 78 148 92 94 106 27 18
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
The Analgesics Category consumer franchise is comprised
of 20 distinct segments. Some account for more buyers and
volume than others.
More ……………..Buyers & Volume………………Less
• Identify key consumer segments that drive category or brand volume
- The consumer segments circled above contribute higher than average sales
• Profile the consumer segments against demographic characteristics, purchase
habits and buying behavior across key product attributes to determine how to reach
them
39. 39
TOTA L TY LEN OL 2 3 % 2 2 % 5% 3 1% 13 % 8 % 6 9 % 3 4 % 4 % 16 % 2 0 % 16 % 2 0 % 8 % 9 % 10 % 7% 2 8 % 13 % 2 9 % 2 0 %
ST. JOSEPH'S 2 % 2 % 1% 1% 1% 1% 1% 1% 1% 9 % 1% 1% 13 % 1% 1% 1% 1% 4 % 2 % 0 % 1%
R EM A IN IN G 6 % 6 % 6 % 1% 8 % 19 % 2 % 3 % 2 % 2 % 5% 17% 8 % 4 % 2 % 13 % 2 % 1% 1% 2 0 % 4 %
PR IV A TE LA B EL ( A D U LT) 3 1% 4 1% 6 5% 3 3 % 6 3 % 55% 6 % 14 % 8 6 % 2 9 % 3 8 % 4 1% 3 2 % 8 % 2 6 % 18 % 5% 8 % 9 % 4 % 3 7%
M OTR IN ( A D U LT) 3 % 2 % 4 % 4 % 1% 1% 3 % 8 % 0 % 1% 7% 2 % 1% 1% 1% 2 % 2 % 6 % 1% 1% 4 %
M ID OL 1% 1% 1% 1% 1% 0 % 1% 3 % 1% 0 % 2 % 1% 1% 1% 0 % 0 % 1% 1% 0 % 1% 1%
TOTA L B A Y ER 3 % 6 % 2 % 5% 2 % 6 % 5% 7% 1% 2 7% 2 % 6 % 7% 3 % 3 % 9 % 2 % 16 % 5% 5% 5%
GOOD Y S 1% 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 %
TOTA L EX C ED R IN 8 % 6 % 4 % 9 % 7% 2 % 3 % 9 % 1% 3 % 8 % 5% 3 % 6 7% 3 % 3 % 2 % 8 % 1% 1% 4 %
EC OTR IN 2 % 1% 0 % 2 % 0 % 2 % 2 % 1% 0 % 1% 0 % 1% 1% 1% 1% 1% 0 % 1% 59 % 2 % 2 %
B U FFER IN 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 1% 0 % 0 % 5% 0 % 0 % 0 % 10 % 0 %
A LEV E 8 % 8 % 3 % 11% 3 % 5% 5% 7% 2 % 7% 7% 5% 7% 3 % 51% 4 % 3 % 8 % 3 % 2 3 % 9 %
TOTA L A D V IL 11% 6 % 11% 4 % 2 % 2 % 3 % 12 % 1% 4 % 10 % 6 % 6 % 4 % 3 % 3 6 % 76 % 19 % 5% 5% 12 %
A ll
A vg
HH's
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2 0
Brand $ volume Share-Within Segment. Column sums to 100%
Excedrin has presence across most segments, however its largest share within
a consumer market is in Segment 13, representing 67% of dollar volume in the
segment.
Key Brd Segment : Tyl All Byr Exc. Alve Advl
40. 40
While all Top Brands play in Segment 7, each also has a
primary segment.
Excedrin Tylenol Advil Aleve Bayer
All (incl.
Motrin)
Top 2 Segment #: 13/7 6/7 16/7 14/7 9/7 7
% of Brd $'s: 41/13 32/18 37/12 34/10 26/13 31*
Top Segment Characteristics:
#: 13 6 16 14 9 7
Demographics
Affluency Affluent - Affluent - - Affluent
Female Head Age 45-54 65+ 35-44 45-54 65+ 45-54
Income $70k+ $20-$30k $50k-$70k Less than $20k Less than $20k $50k-$70k
Occupation Prof_Mgr Not Working Blue Collar Not Working Not Working Blue Collar
Female Head Empl. Full Time Not Empl Full Time - Not Empl Full Time
Female Head Educ. - HS Grad College Grad - HS Grad HS Grad
Region West_Central Central East Central_South East East South
County Size A - A - - A
Purchase Attribute
Strength - Rem Str_Xtra - - Low Rem Str
Size (count) 150_250 150_225_250 80_165_180_225 - 300_200 24_50
Symptom Head Arthritis - - Heart Health Migraine
Form - Geltbcp Liqgl - - Rem_Geltbcp
Deal Mfr Cpn Mfr Cpn Mfr Cpn
Outlet - Mass - - - Food_Drug
Equity Study
Brand Loyalty Best for Headache
Brand My Dr.
Recommends Fits My Lifestyle Unique Formula
Good Value For
Money
Attributes
Esp. Effective For
Headache Pain Is Safe
Makes Me
Refreshed After
Taking Innovative
Relieves Minor
Headache
Relieves all types
Headaches
Gentle On
Stomach Reliable Brand
Approp. For Only
Severe Headaches
Especially
Effective For
Fever
* - Segment 7 only strong segment for Motrin
41. 41
Total US -
52 w/e 07/24/04
Excedrin Parent Switching
Source of Volume Changes
* Interaction index =
% of switching/market share
Losses Gains Net
Interaction
Index*Pills (000’s)
•Parent interacted highly with both Excedrin Migraine and Tension, resulting in strong net gains from Migraine and
some net loss to Tension.
•The largest branded volume loss went to Tylenol XS inc Cool Caps
•Parent also lost volume to Aleve, Motrin and Tylenol 8 Hr at a high rate of interaction.
34,319
14,614
10,086
11,364
11,632
9,275
12,163
12,762
14,440
5,816
1,934
4,398
1,760
2,582
1,723
2,968
2,678
430
42
1,988
56
(24,852)
(18,892)
(18,462)
(17,683)
(13,490)
(7,053)
(6,301)
(3,361)
(3,168)
(675)
(238)
(35,436)
(2,258)
(3,082)
(1,974)
(786)
(11,658)
(8,315)
(13,297)
(5,573)
(4,956)
T T L P L/ GEN A SP
T T L P L/ GEN A P A P
T T L T YLEN OL XS W/ C OOL C P T / R R
A ll o ther
T T L P L/ GEN IB
T T L A LEVE
T T L B A YER A D ULT
T T L A D VIL A D ULT
T T L EXC ED R IN M IGR A IN E
T T L EXC ED R IN A F / T EN
T T L P L/ GEN N A P R OXN
T T L M OT R IN A D ULT
T T L ST JOSEP H A D ULT
T T L T YLEN OL SR
T T L T YLEN OL EXT -R
T T L T YLEN OL P M
T T L EXC ED R IN P M
T T L T YLEN OL 8H R
T T L T YLEN OL R S
T T L EXC ED R IN QT
T T L B UF F ER IN - A LL
(1,116)
(10,238)
(8,806)
(7,098)
(6,051)
(4,216)
(1,134)
1,104
6,124
(1,237)
(4,366)
(1,175)
(3,196)
(778)
(1,445)
(114)
420
(1,544)
(744)
1,314
(163)
87
68
118
103
46
154
137
109
537
784
102
191
112
306
53
94
295
146
202
631
45
Source: ACNielsen HomeScan Panel
42. 42
EXC_AFTEN 14% 3% 1% 12% 2% 7% 24% 0% 2% 3% 1% 1% 17% 3% 0% 1% 8% 0% 0% 1%
EXC_MIG 12% 5% 7% 7% 2% 5% 18% 1% 3% 5% 3% 1% 20% 2% 1% 3% 5% 0% 0% 2%
EXC_PM 7% 6% 6% 21% 1% 8% 21% 0% 3% 2% 2% 1% 12% 1% 4% 2% 4% 1% 0% 1%
EXC_PRNT 2% 2% 4% 1% 1% 1% 4% 0% 1% 2% 1% 1% 74% 1% 1% 1% 2% 0% 0% 1%
EXC_QT 5% 9% 2% 7% 5% 4% 14% 3% 4% 6% 2% 3% 12% 1% 1% 3% 14% 0% 2% 2%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Brand $ Source of Volume-Across Segment (Rows sum to 100%).
Excedrin Parent garners 74% of its business from Segment 13. Structure
detail indicates that additional sub-brands were somewhat incremental to
Parent. This is confirmed by the extended volume contributions of other
segments to the respective sub-lines.
43. 43
Conclusions and Implications
Advertising:
• Advertising should be done primarily at the brand level with strong support for sub-brand
• Consider doing split 30’s or partner 15’s with the first 15 on ‘brand’ and the second 15 on ‘sub-
brand’.
• Another tactic for consideration would be full-line advertising.
• A strong and continuous advertising presence for the franchised parent brand is recommended to
sustain a strong share-of-voice in the category.
• Must maintain top-of-mind or total unaided awareness driving purchase intent, as well as
satisfaction. Purchase intent is being driven by repeat purchasers.
• All data point to the need for new advertising /need for new news.
Positioning:
• Excedrin has a distinct position in the category that needs to be reinforced.
• ‘Excedrin contains an effective combination of ingredients’ is a positive driver of
satisfaction.
• Headache attributes are closely associated with Excedrin but Advil is encroaching.
• Excedrin isn’t being perceived as particularly appropriate for minor headache pain which may
present a new product opportunity
• No one currently owns “Makes you feel refreshed”. Develop copy and test this proposition in
terms of Excedrin.
• Excedrin is not perceived to have ingredients that are perceived to be gentle or gentle on the
stomach. However, Bufferin could own the effective yet gentle ‘appropriate for all body pain’
positioning.
44. 44
Conclusions and Implications
Targeting:
• The AMB has been an appropriate target segment, but evidence continues to indicate that
redefinition is warranted.
• The segmentation work that was done in 2000 needs to be updated.
Retail:
• Migraine is exhibiting signs of becoming deal-sensitive. Implication: Migraine has become less
differentiated due to lack of support.
• As seen in the BehaviorScan test, this is a result of sub-brand cannibalization and TV
advertising aimed at Excedrin Tension Headache and no support behind Migraine.
• Migraine and Tension Headache have a significant presence in the same key
segments. Consumers do not view them as being distinct. When advertising just one
sub-brand, sales for the non-supported brand will then be deal-driven and purchased
by deal-sensitive consumers.
45. 45
Future Excedrin:
• It appears that Excedrin has saturated its current headache segment niche of the internal analgesic
market.
• Forty percent of Excedrin’s volume is located in a single segment and, Excedrin makes up
2/3 of the volume generated by this segment. Thus, this stronghold needs to be tightly
defended or reinforced.
• Excedrin also has a strong presence in a segment where individuals are predominantly blue-
collar and deal-sensitive.
• There may be opportunities such as minor headaches
• Since actual ingredients are not particularly important, pursuing any ingredient based
positioning is not recommended (e.g. aspirin-free, caffeine-free)
• Sub-lines have not grown the category. Moving into another analgesic/pain state under a new brand
may drive growth (a la Aleve/Bayer).
• This supports the idea that repositioning Bufferin may strengthen our category
opportunity/presence.
Conclusions and Implications
47. 47
Excedrin Franchise Structure
Excedrin Sub-Brands exhibit different key drivers. Once the consumer is
within the brand, such as Deal and Pack Size are important. Form does
not look to be a strong factor for Excedrin overall.
EXCEDRIN
$ Share = 7.8%
EXCEDRIN QT
$ Share = 0.5%
TENSION
$ Share = 0.9%
PM
$ Share = 1.0%
PARENT
$ Share = 3.2%
Migraine
$ Share = 2.2%
Deal
Non-Deal
16 Ct.
320 Ct.
Non-Deal
Deal
50 Ct.
250 Ct.
24 Ct.
Rem. Sizes
100 Ct.
Caplet
Gel Tab / Gel Cap
Deal
Non-Deal
50 Ct
Rem. Sizes
24 Ct.
100 Ct.
Caplet
Tablet
Gel Tab / Cap
50 Ct.
Rem Sizes
24 Ct.
100 Ct.
Caplet
Tablet
Gel Tab / Cap
Caplet
Tablet
Gel Tab / Cap
30 Ct.
50 Ct.
250 Ct.
Rem. Sizes
24 Ct.
100 Ct.
Deal
Non-Deal
300 Ct.
50 Ct.
250 Ct.
Rem. Sizes
24 Ct.
150 Ct.
100 Ct.
Deal
Non-Deal
Deal
Non-Deal
Deal
Non-Deal
300 Ct.
50 Ct.
250 Ct.
Rem. Sizes
24 Ct.
150 Ct.
100 Ct.
300 Ct.
50 Ct.
250 Ct.
Rem. Sizes
24 Ct.
150 Ct.
100 Ct.
Caplet
Tablet
Gel Tab / Cap
48. 48
Bufferin Attribute Tree and Key Segmentation Detail
Regular Strength
$ Share = 0.2%
Extra Strength
$ Share = 0.1%
Bufferin
$ Share = 0.3%
Bufferin is a strength driven franchise.
49. 49
Segments
Bufferin 4.9% 5.6% 0.9% 0.9% 2.9% 2.9% 7.2% 0.2% 2.9% 0.4% 0.9% 3.3% 2.7% 2.7% 46.6% 2.6% 1.7% 1.8% 6.8% 1.9%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Across Segment – Where does Bufferin source business?
47% of Bufferin franchise business is concentrated in Segment 15.
Brand $ Source of Volume-Across Segment. Row sums to 100%
50. 50
Segment 15: Key Index Demographic Profile
Core Bufferin Segment
Demo Value %Segment Index
CEN_REG_ West 38.8% 1.87
LIFESTAGE Empty Nest:Living Comf_Affluen 27.2% 1.61
INCOME $70K or more 23.6% 1.47
AFFLUENCY Affluent 38.6% 1.36
COUNTYSZ A 50.2% 1.32
OCCUPATION Prof_Managerial 35.1% 1.27
SIZE 2 Members 39.5% 1.18
FEM_AGE 45 to 54 25.2% 1.18
INCOME $50K to $70K 23.3% 1.14
CHILDREN No Kids less than 18 73.9% 1.11
64. 64
ADV_ADLT 5% 8% 2% 1% 1% 3% 12% 0% 2% 3% 2% 1% 2% 2% 10% 38% 7% 1% 0% 2%
EXC_PRNT 2% 2% 4% 1% 1% 1% 4% 0% 1% 2% 1% 1% 74% 1% 1% 1% 2% 0% 0% 1%
MAX_BYR 17% 1% 1% 2% 3% 12% 23% 1% 11% 1% 3% 2% 3% 1% 2% 2% 13% 1% 0% 2%
PVTLBLADLT 12% 17% 5% 16% 8% 2% 5% 7% 6% 4% 4% 2% 1% 4% 2% 1% 1% 1% 0% 2%
TYL_XS 7% 2% 7% 2% 2% 34% 20% 0% 5% 4% 2% 2% 2% 2% 2% 1% 5% 1% 0% 2%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Brand $ Source of Volume-Across Segment (Rows sum to 100%).
Competitively, among Headache / General Pain positioned products, each
franchise exhibits similar sourcing detail as Excedrin. Brand is high in the
structure as consumer preferences appear to be fairly clear.
A key implication is that advertising and promotion likely does more to
impact existing brand buyers rather then competitive users.
65. 65
-30
-20
-10
0
10
20
30
40
50
60
70
VolumeIndextoAverage
Deal Propensity -13 8 -17 -6 11 5 4 -10 8 5 -13 4 7 4 -15 5 61 9 16 -4
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Deal Propensity: When adjusted for what they purchase, this
measures the likelihood of deal purchase probability. Segments 17,
which purchases principally Tylenol , Bayer, and Advil is most deal
sensitive. Key Excedrin segments are not deal sensitive.
Positive Deal Propensity Index: More of purchase volume on deal relative to category group average
66. 66
Segments
Total Excedrin 7.7% 6.9% 3.8% 4.9% 7.0% 1.4% 3.8% 12.8 0.5% 2.0% 3.1% 1.9% 1.0% 40.6 1.7% 1.1% 1.7% 4.6% 0.2% 0.2% 1.0%
All
HH
Avg
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Across Segment – Where does Total Excedrin source business?
58% of Excedrin franchise business is derived from two segments (7 & 13).
Of this, Segment 13 represents the greatest level of sales.
Brand $ Source of Volume-Across Segment. Row sums to 100%
67. 67
Among the 20 segments, two of the most important to Excedrin are:
- ‘Excedrin Core Consumers’ which skew demographically toward affluent
professionals in the West and Central regions.
- ‘Branded Deal Switchers’, which skew toward comfortable blue collar in the
East/South regions.
Excedrin Key Segments
Excedrin Core Consumers Branded Deal Switchers
Value % Segment Index Value % Segment Index
Demo
Affluency Affluent 36.3% 1.28 N/S* - -
Female Age 45 - 54 27.2% 1.27 45 - 54 23.7% 1.11
Income $70k + 20.4% 1.27 $50k - $70k 23.3% 1.14
Occupation Prof_Managerial 33.3% 1.2 Blue Collar 26.9% 1.15
Female Empl. Full Time 39.6% 1.17 Full Time 39.6% 1.17
Female Educ. N/S* - - HS Grad 32.6% 1.08
Region West/Central 25.9%/28.8% 1.25/1.22 East/South 22.6%/38.9% 1.21/1.05
County Size A 45.4% 1.19 A 44.0% 1.16
* N/S - No Skew
Segment 13 Segment 7
70. 70
Low Income Households Getting By Households
are defined by: are defined by:
1 member income 0 - $9,999 1 member income 10 - $19,999
2 member income 0 - $11,999 2 member income 12 - $24,999
3 member income 0 - $14,999 3 member income 15 - $29,999
4 member income 0 - $19,999 4 member income 20 - $39,999
5 member income 0 - $24,999 5 member income 25 - $49,999
Living Comfortably Households Affluent households
are defined by: are defined by:
1 member income 20 - $39,999 1 member income $40,000+
2 member income 25 - $49,999 2 member income $50,000+
3 member income 30 - $59,999 3 member income $60,000+
4 member income 40 - $69,999 4 member income $70,000+
5 member income 50 - $99,999 5 member income $100,000+
Per Capita Income Definitions
71. 71
Private Label Preference Segmentation Detail
• Private Label is a large component of the Analgesics Category. It is
differentiated from Brands based on price and its cross ingredient and form
profile
– Among key groups of consumers, Private Label makes up 60%+ of
purchasing.
• One third of category buyers are interested in Private Label / Value offerings.
• These consumers will be difficult to convert given likely high price sensitivity
levels.
• For Excedrin the opportunity is better against switching of consumers of
competitive brands such as Advil.
– Deal pre-disposition (free goods)
– Coupon and direct mail / consumer efforts
– Key market strategies
72. 72
Household Lifestage Definitions
• Young Singles - households with one member under 35 years old.
• Childless Younger Couples - 1+ member households, under 35 years
old with no children under 18.
• New Families - households with children under 6 years old.
• Maturing Families - households with children aged 6 - 17 years old.
• Established Families - households with children aged 13 - 17 years old.
• Middle-Aged Singles - households with one member aged between 35 -
54 years old.
• Middle-Aged Childless Couples - 1+ member households, aged between
35 - 54 years old, with no children under 18.
• Empty Nesters - 1+ member households, aged between 55 - 64, with no
children under 18.
• Older Singles - households with one member over 55 years old.
73. 73
County Size
• County Size A
– All counties belonging to the 25 largest standard consolidated
statistical areas or Standard Metropolitan Statistical Areas
(SMSA’s) according to the 1990 census
• County Size B
– All counties not included under “County A” that are either over
150,000 population or in SCSA’s or SMSA’s over 150,000
population according to the 1990 census
• County Size C
– All counties not included under “A” or “B” that are either over
40,000 population or in SMSA’s over 40,000 population
according to the 1990 census
• County Size D
– All remaining counties
74. 74
9.7 9.9 10.1 9.5
9.1 8.8 8.8
Total HH's
Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04
80.0 79.4 79.7 79.9 79.2 78.7 79.0
Total HH's
Excedrin’s decline versus Q3 ’03 (-13%) was deeper than category (–0.1%) for TTL
HH’s.
HH Penetration Trends
% Households Buying - Rolling 52-week periods
Excedrin Internal Analgesics Category
75. 75
226 219 218 218
198 198 199
Total HH's
Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04
Excedrin’s Pill Per Buyer decline versus Q3 ’03 (-19) was fairly comparable to
category (–16) for TTL HH’s. While category Buying Rate decline has continued
since Q3 ’03, Excedrin has been stable in ’04.
HH Buying Rate Trends
Pills Per Buyer - Rolling 52-week periods
Excedrin Internal Analgesics Category
516
525
531 528
521
516 515
Total HH's
76. 76
9.7 9.9 10.1 9.5 9.1 8.8 8.8
TTL HH's
Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04
HH Buying Rate (pills per HH) was stable in Q3 versus prior two ’04 quarters
among Total Households.
Total Excedrin – Rolling 52-week periods
PENETRATION
BUYING RATE
226 219 218 218
198 198 199
TTL HH's
77. 77
Preference Segment Detail
• The 20 segments identified were created based on purchase behavior/volume
share attributes overlaid with demographics
For each Preference Segment the following are identified:
• Purchase Behavior/Volume Share Attributes
– Volume by Attribute
– Deal Usage
– Purchase Frequency
– Purchase Size
• Spectra Lifestyle and Lifestage
• Demographics
– Female Head Age - Female Head Employment
– Female Head Education - Age & Presence of Children
– Household Affluence - Household Size
– Household Head Occupation - Household Income
– Household Size - Market Size
– County Size - Census Region
– Race
