News tagged CPG
“Yes, Here Are My Coupons” Proudly Said by 80% of Americans
February 2nd, 2012In these times, the latest findings from the NCH study of coupon use are not surprising to us. 80.6% of consumers reported using coupons sometimes (33.2%), very often (34%), or always (13.4%) in 2011, with a further 14% saying they used them, The proportion reporting using coupons at least sometimes in 2011 represents 3% growth from 78.3% in 2010, and has risen every year since 2007, when it was 63.6%. By contrast, the 5.4% of consumers in 2011 who said they never use coupons is the lowest since 2007, when it stood at 10.6%.
40% of us use coupons
37.2% of 2011 respondents who compared their current-year use of CPS coupons to their prior-year use said they used more coupons than in the previous year, marking an 11% rise from 33.4% in 2010 and a 62% jump from 2007’s pre-recession level (22.9%). Of note, though, 1 in 10 reported using less coupons in 2011, the highest proportion since 2008 (11.2%).
90% of us do a little pre-shopping homework
Data from the study indicates that 90.9% of consumers in 2011 planned a shopping list with coupons before a store visit, up 2.5% from 2010 and a more substantial 16% rise from 2007 levels. According to a survey released in January 2012 by SymphonyIRI, half of shoppers in Q4 2011 reported using a store circular to make a list prior to going to the grocery store, while 42% used coupons to make a list.
Internet Use Up
Meanwhile, according to the NCH study, 64.1% of coupon users in 2011 searched the internet for coupon savings either sometimes (26.4%), very often (22.1%), or always (15.6%), representing a 27% increase from 2010 respondents using the internet with that frequency. In fact, the proportion reporting always using the internet to search for coupon savings more than doubled, from 7.4% to 15.6%. By comparison, those saying they never use the internet fell from 22.2% to 15.4%.
Data from the SymphonyIRI survey indicates that 39% of shoppers reported downloading coupons from manufacturer websites in Q4 2011, with other popular digital media usages including downloading coupons from retailer websites (37%) and downloading coupons from couponing sites (35%).
So, what is the “so what” factor here: For many CPG brands, couponing is should be a critical part of any brand and DR effort….your customers are looking for it.
More Green Means More Green
June 11th, 2011Consumers in the US are willing to pay more for a variety of products that are environmentally friendly, or “green,” and 90% say they have incorporated some level of “greenness” into their daily lives.
Though a relatively small percentage (8.8%) consider themselves to be 100% green, most are aspirational green, having incorporated at least a few environmentally friendly behaviors into their daily life, the study found.
Green Commands Premium Prices
Consumers are willing to pay a premium for products they know are made out of green organic materials. Not surprisingly, aspirational green and 100% green consumers are the most willing to pay a premium:
- Aspirational green consumers are most willing to pay a premium for food and household products they know to be green, including produce (66.6%), juices and other bottled drinks (61.1%), household cleaners (59.2%), laundry detergents (58.7%), and packaged food (58.2%).
- Among the 100% green respondents, more than 80% are willing to pay a premium for all product categories, including food, garden/landscaping supplies (84.4%), home improvement supplies (84.0%), bedding (83.3%), and health and beauty products (82.0%).
Internet Best for Info
Nearly four in 10 (39.4%) respondents say the internet is the best source of information on green products and practices, followed by TV (18.4%), friends and family (9.2%), newspapers (7.1%), magazines (6.5%), and books (4.6%). Additionally, while men search for information on alternative energy and green technologies, women look for healthy recipes, recycling, simple living, and natural remedies.
Ad Claims Meet Skepticism
More than half (56.6%) of all respondents believe – at least to some extent – advertising claims that promote a product as green or environmentally friendly. However, one-fourth (25.1%) do not believe the claims or find them confusing or misleading, and only one in 10 (10.0%) say they never believe green claims made in an ad.
In terms of results based on respondent “greenness,” two-thirds (67.5%) of aspirational green consumers believe green claims in advertising, compared with 58.2% of 100% green respondents, and 32.3% of consumers who are not green at all. Interestingly, women in all key age segments are more likely than men to purchase a product that is advertised as being green or environmentally friendly. However, men still lead women for being completely green, 12.1% vs. 5.3%, respectively.
Motivations Differ
There are interesting and distinct difference in the motivation to go green between aspirational greens and those self-identified as 100% green. While aspirational greens point to working for a better environment (61.3%) as the reason for incorporating environmentally friendly behaviors into their daily lives, only 38.1% of 100% greens point to this cause. The reasons for being green, among respondents who are 100% green:
- To live a better quality of life (36.6%)
- It’s good for the community (35.4%)
- The desire to make a difference (32.9%)
- To set an example for others to follow (31.5%)
Among this all-green segment, being green identifies a lifestyle rather than personal activity.
Additional Research
A recent report from Environmental Leader and Watershed Publishing found that consumers are rewarding companies that use so-called “green marketing” tactics and are willing to pay more for the same product when it is presented with an environmentally friendly message.
The in-depth report, “Green Marketing: What Works & What Doesn’t – A Marketing Study of Practitioners,” also revealed that increased spending on green advertising and marketing is, in many cases, the result of firms finding distinct additional marketing and advertising advantages with green messages.
What does it all mean?
We see that the green minded consumer is consistently turning to online and digital sources to find information about brands and companies. To this end, smart well planned communication planning which supports how the green consumer researches and connects with brand information is critical.
Optimizing the “U” in SKU
June 11th, 2011Successful CPG manufacturers are much more likely than other CPG companies to engage in annual SKU optimization, according to Nielsen.
8 in 10 Winners Conduct Annual SKU Optimization
Data from the 2010 Customer & Channel Management Survey indicates 78% percent of the most successful CPG companies, or “CPG winners,” conduct SKU-optimization analyses once a year, while 42% of other players do. In winning companies, marketing and sales lead this analysis; in other organizations, finance and supply more often assume this role.
While all surveyed CPG companies use profit as a SKU optimization criteria and virtually all use volume, results show winners are more likely to take a strategic approach. For example, 100% of winners and 84% of other companies use strategic fit as a criteria. Similarly, 78% of winners but only 58% of other companies use future growth prospects, and 56% of winners and 42% of other companies use consumer decision trees.
Survey results show winners are more likely than others to initiate this process with a retailer. Only 22% of winners use a retailer request as criteria in their SKU optimization process, compared to 63% of other companies.
Winners are also more likely to apply a targeted approach to SKU optimization, focusing on one category at a time. Furthermore, winners create a relatively smaller number of customized SKUs for retailers. Seventy-seven percent of winning companies tailor less than 10% of their SKUs for individual retailers; 36% of other companies do so.
Complexity Management Seen More Relevant
A combined 96% of respondents see complexity management as more relevant (60%) or much more relevant (36%) than in the past. Despite broad efforts, only 30% of respondents are able to manage this complexity in an effective manner. Winners are reducing their SKUs below the category average while increasing revenue and achieving category growth by adhering to the following imperatives.
Most CPG Companies Pursue Standardization
The survey reveals that most CPG companies pursue standardization. While standardization initiatives have been implemented in many areas, more than 70% of respondents focus their efforts on supply chain, manufacturing, and marketing and packaging.
These players involve a broad range of cross-functional groups in the process of identifying standardization opportunities, including supply, research and development, finance, and marketing. Data indicates companies pursuing standardization initiatives usually realize the greatest savings in inventory, raw material, and packaging costs.
Other Findings
- More than 40% of retailers reduced SKUs in 2009
- 25% of SKUs generate 80% of respondent CPG sales
- 77% of winning companies tailor less than 10% of their SKUs for individual retailers; 36% of other companies do
I Will Take Another, If You Please
June 10th, 2011Three in ten Americans 21 and older (29%) say they drink alcohol at least once a week, including 5% who drink daily and 10% who drink several times a week. In addition, 20% of Americans 21 or older say they drink alcohol at least once a month and 15% drink it several times a year.
1 in 5 Don’t Drink, Men Drink More
Another one in five Americans (22%) say they never drink alcohol, and men are more frequent drinkers than women are, as almost two in five men (38%) say they drink at least once a week compared to 21% of women.
Older Drinkers Most Likely to Drink Daily
The poll presents interesting findings regarding drinking habits by generation. Overall, younger adults are more likely to say they drink at least once a week, with 33% of Echo Boomers (age 21-34) but only 26% of Matures (66 and older) doing so. However, Matures have the highest rate of drinking daily (11%), roughly double the 5% rate of Baby Boomers (age 47-65) and almost quadruple the 4% rate of both Echo Boomers and Gen X (age 35-46).
Looking at rates of abstaining from drinking alcohol by age, members of Gen X are least likely to abstain completely (18%), compared to the 27% highest rate held by Matures. Echo Boomers are actually slightly more likely to be teetotalers (23%) than Baby Boomers (22%).
Beer Loses Popularity Since ‘09, Other Beverages Gain
Beer is the most frequently consumed alcoholic beverage in 2011, with 63% of drinking adults saying they consume beer. However, this rate is about 6% lower than the 67% of drinking adults who consumed beer in 2009, when it was also America’s leading alcoholic beverage. Beer also has a sizable gender gap, as it is consumed by 75% of male adult drinkers but only 50% of female adult drinkers.
Meanwhile, domestic wine significantly grew in its consumption rate, rising 10% from 49% in 2009 to 54% in 2011. Domestic wine has an inverse gender gap to beer, being consumed by 63% of female adult drinkers but only 45% of male adult drinkers.
Tequila and cordials/liqueurs also gained popularity since 2009, while Scotch lost a small amount.
Whiskies, Champagne Have Gender Gaps
Other beverages with significant gender gaps include bourbon (consumed by 23% of male drinkers and 6% of female drinkers), Scotch (consumed by 17% of male drinkers and 4% of female drinkers), and champagne (consumed by 23% of female drinkers and 13% of male drinkers).
Americans Drink More Wine
Overall US wine consumption rose 0.8% to 297 million nine-liter cases in 2009, according to August 2010 data from the Beverage Information Group. 2009 marked the 16th straight year of increased wine case consumption in the US. According to the Beverage Information Group’s 2010 Wine Handbook, domestics continue to outpace imports. Domestic wines rose 1.8% to 222.7 million cases, while imports dropped 2.2%, landing at 74.3 million cases. However, growth is still being seen among smaller countries such as Chile, New Zealand and Portugal.
US wine consumption is expected to increase 4.6% to 310.7 million cases by 2014.
Excuse me Bartender, I will have 1.1% more please
August 29th, 2010As in other recessionary times, booze buying has risen over the last year. In fact according to Technomic, the predicted decline of 2.5% of on-premise sales (bars, clubs, restaurants, you know places other than in your home) for FY2010 has been updated with actual results showing a 1.1% increase.
Perhaps not too surprising is where we are enjoying a cocktail or two…or 3. Nightclub and casino sales have increased 2.1%, with hotel sales showing a 1.3% increase. With such fantastic results marketers cannot neglect on-premise marketing to engage and increase purchase intent. You know..those fun coasters, posters in the restrooms, neon signs, not to mention events and brand ambassadors…(think the Captain Morgan ladies).
Consider using these stats of a way of impressing your friends and favorite Bartender the next time you are enjoying a libation or two on-premise. Cheers!