Connecting with the Changing Consumer - New Hope Network · More than ever, climate matters to consumers. Consumers indicate that they would pay more for food grown with regenerative

Connecting with the Changing ConsumerWednesday, March 6, 2019Marriott, Grand Ballroom F

Welcome

ERIC PierceNew Hope Network

3© 2019 Informa LLC. All Rights Reserved

Market Research ManagerNew Hope Network – NEXT Data & Insights

EVP ResearchHowGood

Ethan Soloviev

The Consumer is Changing:

Amanda Hartt

The Brand Opportunity


Our Food System has been Identified as a:

VillainOur Food System has Played the role of:

VictimBut Our Food System can be the:

Solution


…THE NATURAL PRODUCTS INDUSTRY IS DISRUPTING THE

DESTRUCTION


Forces Leading the Industry Toward Change

Consumer and entrepreneurial trends alike are working

together to shape and disrupt the food system for food that

keeps us healthy, makes us feel alive, and empowersus to create change where

change is needed most

Holistic Health & Wellbeing

Plant Wisdom

Ancient Wisdom

Discovering Ailment Triggers

Novel Alternatives

Contaminants Free

Empowered Communities

Waste Reduction

Responsible Packaging

Mission Driven Commerce

Sourcing Responsibly

Regenerative Agriculture

Social Impact Commitments

Earning Consumer

Trust

Transparency

Traceability

Clean Label

Verified Brand


Momentum for Change Reflected in Consumer Values


The market is becoming more responsibleNo longer is consumption a passive acquisition of stuff. Increasingly consumers see buying as an act that impacts others and one that requires ethical decision making.

Millennials Gen X Boomers

63% 58% 40%


65% 55% 28%

Buying Can be a Moral Decision

Pay More for Responsibly Produced Food

Top 2 Box Agreement


Social and environmental issues resonateWhile activists among the Boomer and Xer generations may have created the momentum behind social and environmental issues, today it is the Millennial consumer who is likely to drive this issue into commerce.


62% 47% 30%


59% 48% 28%

Pay More for Environmentally Responsible Practices

Pay More for Socially Responsible Practices

Top 2 Box Agreement


Consumers engage at a deeper levelConsumers care about where their food comes from and how it was processed.


73% 62% 53%


71% 62% 47%

Value How Food is MadeAnd Who Grew it

Pay More for High Quality Ingredients


Regenerative agriculture resonatesMore than ever, climate matters to consumers. Consumers indicate that they would pay more for food grown with regenerative agricultural practices designed to reverse climate change.


58% 45% 29%


59% 48% 29%

Pay More for Brands Fighting Climate Change

Pay More for Food Grown with Regenerative Agricultural Practices


Momentum for Change Reflected in Concept Testing

Scores


Strong probability of success for climate responsible brandsProduct concepts which are positioned, in part, based upon their climate or environmental responsibility have a strong probability of success in market.

Analysis among sample representative of U.S. Adult Consumers

16% 13%

Analysis of Climate Trends: NEXT Concept Lab Database

Waste Reduction


Sourcing Responsibly

Avg. Market Prediction (Probability of Success in Market)

74%

Avg. Purchase Intent (% of US Consumers Who Will Buy)

11%

20%

83% 79% 77%


These Products may Succeed in the Marketplace

Yellow Barn: Pasta SauceVegetables Grown on Biodynamic Farm

Only 6 ingredients in Yellow Barn’s Biodynamic Pasta Sauces. Everything but the salt is grown on Demeter certified Biodynamic farms. You should feel good about that, because they come from a sustainable, organic source dedicated to holistically managed, self-sustaining ecosystems.

Purchase Intent

Market Prediction

89 14

Cotchel: Juice Line Made from Unwanted Fruit

A great-tasting juice line on a mission to reduce food waste. Every year, tons of fruit are wasted because it's too big, too small, or too ugly to sell at a grocery store. By creating a juice line from unwanted fruit, Cotchel takes a small step towards reducing food waste.

Purchase Intent

Market Prediction

87 20

Waste ReductionRegenerative Agriculture


Do consumers actuallyvote with their wallets?

The data behind consumer intent


127 Sustainability Attributes for 1,000,000+ Products

Who is HowGood?PARTNERS PRESS


Who is HowGood?ATTRIBUTE EXAMPLES

MINIMAL PROCESSING

CERTIFIED ORGANIC

GRASS-FED

HIGH LABOR RISK

DIRECT SOURCING

CLIMATE CHANGE RISK

HIGH WATER USAGE

127 Sustainability Attributes for 1,000,000+ Products


The Emerging Meta-Pattern

DEGENERATIVE REGENERATIVE


Trend/Value Testing

WE CAN!

What if we could test shifting values trends with quantitative analysis

of consumer behavior?


SUSTAINABILITYANALYSIS

SALESANALYSIS

5,000MOST REGENERATIVE

UPC’s

1 MILLIONUPC’s

Products from every category in

grocery

Environmental and social impact attribute

assessment

TOP products from every category in

grocery

2014 – 2018 sales and trends

assessment

Trend/Value Testing


Maple Hill Creamery Lotus Foods Alter Eco

Top-Rated Product ExamplesEmpowered Communities

100% Grass-Fed Sustainable Farming Practices Fair Trade

Booth: 5722 Booth: 2116 Booth: 2340


-20

0

20

40

60

80

100

Sales Growth by Department, 2014-2018

Overall Department Growth

Most Regenerative Product Growth

Results: Overview

-3%8% 7%

22%

6%

67% 66%

95%

72%79%

Dairy Frozen Foods Grocery Produce TOTAL


-50

0

50

100

150

200

Sales Growth by Category, 2014-2018

Overall Category Growth

Most Regenerative Product Growth

Results: Category Highlights

23%

82%

2%

69%

101%

-11%

170%

-11%10%

176%

Cream Eggs Milk Sugar Coffee


-20

-10

0

10

20

30

40

50

60

70

80

Yogurt Sales by Sustainability Attribute, 2014-2018

Sustainability Standards Not Met Achieves Sustainability Standards

Category Certified Organic Free fromIndustrial Ingredients

Direct Sourcingfrom Small Farms

MinimalProcessing

Grass-Fed

-8%

20%

-9%

2%

-11%

10%

-8%

33%

-9%

45%

-9%

251%

Results: Yogurt Category Deep-Dive


howgood.com/expo

Convert buyer intent into real sales growth• Download a free one-page report for all

categories• Access data on the specific category and

attributes most relevant to your brand


THANK YOU!WhatsNextInNatural.com

Market Research ManagerNew Hope Network – NEXT Data & Insights

EVP ResearchHowGood

Ethan SolovievAmanda Hartt

[email protected] [email protected]

Film Series: The Consumer Shift

KIM JohnsonBoulder Strategy Group

ASHLEY AlsupBoulder Strategy Group

The Consumer Shift

The era of merely selling products is over.

Consumers expect brands to share values and take actions to express care.

Dimensions of Shared Values and Care

BrandAnimal Welfare

LocalSourcing

Clean/Free-From/Organic

Ingredients

Treatment of Workers

Sustainable Practices

Giving BackStanding Behind Product

Personal Touch

Why this? Why now?

The Momentum of the Awakening Journey

DocumentaryBook

ConversationSocial PostingHealth Scare

Baby

Deeper Engagement on Site

and Social

Sharing the message

Advocating

Broadening Engagement to

Other Issues

Changing yourself.Changing the world.

Trust is now your intentions, values and actions.

Not just whether your product ‘works.’

And trust can be lost in a single social media moment over which you have little control.

Brands today cannot afford cognitive dissonance.

Engaging Consumers & Telling Complex Stories

AMY KELLEROrganic India


Introduction: How to Engage with the New Consumer


Engaging the Connected Consumer: Taking Instagram to the Next Level

SARI LevyNew Hope Network


Engaging the Connected Consumer: Taking Instagram to

the NEXT levelSari Levy

Market Research ManagerNew Hope Network


"Great stories happen to those who can tell them." --Ira Glass



• Influencer marketing has become a normal

part of the marketing mix for an estimated

70% of US companies (source: emarketer)

• In 4 years, the number of sponsored posts is

expected to triple.

• 13% of those posts are in Food & Beverage

(source: Buzzoole)

• 60% of Instagram users discover new products

on the platform (source: Brandwatch)

Influencer marketing is an important way to reach F&B consumers and is growing rapidly

13%

87%

FOOD AND BEVERAGE RELATED POSTSAS A PERCENT OF TOTAL

Food & Beverage

Non Food & Beverage

$1.1B$1.6B

$2.4B

2017 2018 2019

GLOBAL INSTAGRAM INFLUENCER MARKET SIZE FROM 2017-2019 IN BILLIONS USD

Source: Buzzoole cited by mobilemarketer.com

Source: statistica


Influencer post mentioning Maple Hill Maple Hill post mentioning themselves

Influencer marketing reaches a broader audience than going it alone

1735 likes 113 likes


41K Followers 62K Followers46K Followers

Influencers are key to amplifying a brand message

Health | Fitness Enthusiast | Trying to Keep it Simple

@the_bananadiaries

healed my ED + depression to live my life with freedom

❀ now I help others do the same

@sweatspace

I share healthy recipes, workouts, my travel and now starting my journey

into fatherhood.

@servingupsimiplicity


Influencers gain a lot of attention for posts

8,631 likes.

Language can sometimes be interpreted as canned or superficial, or otherwise inauthentic.


Brands have a richer story to tell

Columbia –

agroforestry

systems

Rural coffee

training center

in Guatemala for

living conditions

10 hour steep

Long bean

soaking time so

more caffeine

Myanmar

Organic

Initiative to

support organic

coffee cert

World Coffee

Research

partnership

“Decision-making is much more emotional than it is logical. The ability to tell a good story is essential and can make or break how well a business differentiates itself in the market as well as makes a profit”

-

We think connected consumers care about the

stories behind brands, and that influencers are

the right people to tell these stories.


The Connected Consumer CaresTwo surveys to learn what connected consumers and the general public value71 questions 4 categories of values• Animal• Human• Social• Climate

Photo credit: Stocksy, Sean Locke


Demographics of Connected Consumers

5%

24%

27%

18%

17%

10%

18-24

25-34

35-44

45-54

55-64

65+

AGE

22% 78%

GENDER

REGION

35% 21%

20%

19%

4%

11%

8%

17%

19%

21%

19%

Under $19,999

$20,000 - $39,999

$40,000 - $49,999

$50,000 - $59,999

$60,000 - $74,999

$75,000 - $99,999

$100,000 or more

INCOME


Connected consumers say these values mean more to them than the average person

6568

71 70

51 52 54

62

SOCIAL CLIMATE HEALTH ANIMAL

CONNECTED CONSUMERS’ VALUES VS. GENERAL POPULATION

Connected Consumers General population


Connected Consumers prioritize buying brands that are transparent about their ingredients

78%57%

Connected Consumer Gen Pop

Top 2 Box on Five Point Scale: Perfectly describes me to Doesn’t describe me at all

+21 pts

75%58%


+17 pts

When making food choices I prioritize

natural brands, products, or ingredients

when possible

I try to buy brands which are transparent

about what is in their food, how it is

made and how they source materials


52%40%



+12 pts

64%

44%


+20 pts

Concerns about climate change impact what I buy

I am willing to pay more for products that demonstrate environmentally

responsible practices

Climate change has an impact on what Connected Consumers buy and how much they spend


70%54%



+16 pts76%

52%


+24 pts

I read ingredient labels and avoid buying products

with complicated ingredients or ingredients I

don't recognize or I can't pronounce

I avoid buying foods with artificial colors,

flavors or preservatives

Connected Consumers will avoid buying products with specific ingredients and preservatives


65%44%



+21 pts74%

45%


+29 pts

I recognize the environmental benefits of organic products and buy them for this

reason

I buy organic because it is better for me and the planet

Connected Consumers say they recognize and purchase organic products at a higher rate than Gen Pop


54%

31%



+23 pts

55%40%


+15 pts

I try to eat a largely plant-based diet I am actively looking at and reducing my

meat consumption because of health

concerns

Connected Consumers look to avoid meat and try to eat a plant-based diet


Connected Consumers want the full story


Nutrient dense Climate

(carbon sequestration)

Empowering communities Animal welfare

77% Strongly/AgreeI buy food which was grown in a

way to maximize its nutrition

60% Strongly/ AgreeI am willing to pay more for products that demonstrate socially responsible

practices

67% Strongly/AgreeI am concerned with how livestock

are treated

57% Strongly/AgreeI am willing to spend more to

support businesses which act in a socially or eco responsible manner


• Influencer marketing isn’t going anywhere soon and consumers are ready for it to go to the next level

• Influencers can be instrumental in helping brands build their stories, not just gain awareness

• Connected consumers care about the impact their food choices have on animal welfare, climate, communities, and their own personal health

• Brands should seek to understand which values are most important to their consumers and choose influencers whose followers care most about their messages

Conclusion


Thank YouSari Levy

Market Research [email protected]

Making It Personal: The Role of Influencers

JESSIE ShaferNew Hope Network

MICHELLE TamNom Nom Paleo

CHELSEA WilliamsThat's Chelsea

Connecting with the Changing Consumer

Making it Personal: The Role of Influencers

• Brands can work with influencers to amplify their brand message and engage more deeply with consumers

• Influencers can make messaging more personal

• There are great benefits to building influencer relationships … here’s what to do and what to avoid

• How can we (as the natural products industry) support influence as a force for good?

• Sustainability in influence• Self-evaluation and vulnerability• Partnerships• Knowing your audience• New opportunities to grow your brand• Reinvention• Influence for good

Who are our members

• credentialed health experts (RDs, RNs, certified nutrition specialists, certified fitness instructors, certified yoga instructors, holistic health practitioners, nutritional therapy practitioners, and more)

• passionate health advocates who are culturally relevant because of their fresh take and beautiful content that inspires wellness

• people living and thriving by navigating their way to wellness despite living with a chronic illness

• marketing and media specialists

New Hope Influencer Co-op Code of ConductAs a member of this network of health influencers and in partnership with New Hope Network, I aim to use my influence as a force for good and to spread more health to more people. I will do this by:• Being honest and trustworthy in my health communication.• Seeking out health experts and working within my capacity/scope of

practice when I post about health topics and when my audience asks about health information. When needed, I will use New Hope Network as a resource to connect with health experts and topic leaders.

• Advocating for better-for-me and better-for-the-planet products and organizations.

• Building my audience and engagement metrics in an authentic and responsible way.

• Creating new content on a consistent basis.• When involved in a paid or otherwise sponsored program with New

Hope, I will disclose the partnership in compliance with FTC regulations (ie: using the appropriate hashtags, such as #ad, #sponsored, and provided sponsorship language).

• Being kind and showing compassion in my communication with New Hope Network, brand partners, other influencers, and people within and outside of my network of followers.

As a community of responsible health influencers, our aim is to band together and support each other in our effort to spread more health to more people and to display how influence can be used a force for good in the world. Failure to comply with this Code of Conduct will result in removal from the New Hope Influencer Co-op.

The FAB 5 Influencer Team at Expo West In partnership with

THE ORGANIC ADVOCATE

THE PLANT REVOLUTIONIST

THE MODERN CONSUMER

Sponsored by

Michelle TamChelsea Williams

THAT’S CHELSEA

Chelsea Williams, MPH, CCPH

[email protected]

thatschelsea.com

@thatschelsea

mailto:[email protected]

http://thatschelsea.com/

Chelsea LIVE on TV One’s NewsOne Now with Roland Martin

What is a Certified Communicator in Public Health (CCPH) and how do their skills transfer to work as

an Influencer?

A Certified Communicator in Public Health (CCPH) is a proven expert in shaping, spreading and understanding the impact of a public health message.

Required Transferrable Skills

• Serve as a spokesperson and analyze media issues that have potential to affect public health or your brand/organization

• Have working knowledge of: buttons and badges, image sharing, content syndication, RSS feeds, Podcasts, online video sharing, widgets, eCards, Twitter, blogs, Facebook, and other social networking sites

• Research cultural preferences of intended audiences and develop communication strategies that will reach diverse audiences

• Use health literacy best practices including reading grade level, word choice, graphics, and “messengers” to reach intended audiences

• Develop a community engagement program to reach intended audiences

• Respect a wide range of differences among intended audiences

Breaking Down a Health Topic for the General Public

Teaching Without “Reaching”

Unsuccessful Pitch

Successful Pitch

Chelsea Williams, MPH, CCPH

[email protected]

thatschelsea.com

@thatschelsea

Questions?

mailto:[email protected]

http://thatschelsea.com/

• Food, Family, Fun

•Sharing healthy, fool-proof, family-friendly recipes that taste amazing

• I treat my readers like my best friends

• Generic pitches and form letters

• Micromanaging the authenticity away

• Exposure will not pay my bills

Retail & Data Driven Personalization

SARAH SchmanskyNielsen

Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. | This artwork was created using Nielsen data.

SARAH SCHMANSKY, NIELSEN

2 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US

), LL

C. C

onfid

entia

l and

pro

prie

tary

. Do

not d

istri

bute

. C

opyr

ight

© 2

018

The

Nie

lsen

Com

pany

(U

S),

LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

TODAY’S CONSUMER JOURNEY IS GETTING PERSONAL

Big data Artificial intelligence

Machine learning

Mobile connectivity Virtual & augmented reality

Cashless payments

New channels New missions New products

Sources: Nielsen U.S. Retail Consulting and Analytics analysis, 2017; Advanced Web Ranking Organic Clickthrough Rate Study, March 2018, global Google searches with commercial intent using data from 5,689,897 keywords and 50,719 websites.

I DISCOVER DIFFERENTLY

4 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US

), LL

C. C

onfid

entia

l and

pro

prie

tary

. Do

not d

istri

bute

. C

opyr

ight

© 2

018

The

Nie

lsen

Com

pany

(U

S),

LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

MY BRAIN LIKES PERSONALIZED ADS PERSONALLY & CONTEXTUALLY RELEVANT VS. NON-PERSONALIZED

+40% STRONGER COGNITIVE

PROCESSING

Source: Nielsen Consumer Neuroscience case study; cognitive processing measured by pupil dilation All trademarks, product imagery, service marks, trade names, and logos are the property of their respective owners.

5 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US)

, LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US)

, LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

Integrate 1st party and predictive modeling tactics across channels

Measure how each audience tactic, media, placement drives ROI and sales

Leverage an always-on learning algorithm to optimize automatically based on offline sales

RIGHT OFFER + RIGHT PERSON = 13x ROI

RESULTS 1 2 3

2.3 million INCREMENTAL PRODUCTS SOLD

13X+ ROI AND EFFECTIVENESS

Sources: Nielsen Marketing Cloud and Multitouch Attribution

6 Cop

yrig

ht ©

201

9 Th

e N

iels

en C

ompa

ny (

US

), LL

C. C

onfid

entia

l and

pro

prie

tary

. Do

not d

istri

bute

. 181

308

C

opyr

ight

© 2

019

The

Nie

lsen

Com

pany

(U

S),

LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

GROWTH OF SOCIALLY-CHARGED ADVERTISING

Source: Flash Report, Governance and Accountability Institute, 2017, CSR Report, Cone Communications, 2017

$2.0B

$120M

17x 20%

82%

4x

1,567% growth of the cause-related marketing industry between

1990-2016

4x growth in S&P Index companies that disclose Environmental, Social & Governance (ESG) information

7 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US

), LL

C. C

onfid

entia

l and

pro

prie

tary

. Do

not d

istri

bute

. C

opyr

ight

© 2

018

The

Nie

lsen

Com

pany

(U

S),

LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

MY DEVICE CAN SHOP FOR ME VOICE-ENABLED SHOPPERS’ PURCHASES (U.S.)

Source: 2017 U.S. Nielsen Voice Activated Device Survey (n=2,120). Amazon Echo includes Dot usage. Read as: Among Google Home owners who use their device to purchase goods and services, 48% said they buy household goods. All trademarks, product imagery, service marks, trade names, and logos are the property of their respective owners.

48%

38% 36%

28%

42%

34% 29%

25%

HOUSEHOLDGOODS

FOOD FROMRESTAURANT

PERSONAL CARE SERVICES

GOOGLE HOME AMAZON ECHO

8 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US

), LL

C. C

onfid

entia

l and

pro

prie

tary

. Do

not d

istri

bute

. C

opyr

ight

© 2

018

The

Nie

lsen

Com

pany

(U

S),

LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

ANTICIPATE MY NEEDS WITH DATA

Source: Rich Relevance All trademarks, product imagery, service marks, trade names, and logos are the property of their respective owners.

USER PROFILE

GENDER: Female

AGE: 25 years

BEHAVIOR: Purchases bananas weekly, purchases milk bi-weekly, purchases jam monthly

PRICE POINT: Cost Conscious

LAST PURCHASE: 5/2/18

• Identify how often the shopper buys a specific product.

• Remind to restock when the shopper could be running low.

• Recommend additional products and services using algorithms.

REPLENISHMENT

Sources: What’s Next for China’s Connected Consumers 2018; Nielsen Global Survey Global Growth Strategies 2016

MY SHOPPING EXPERIENCE IS EVOLVING

10 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US)

, LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US)

, LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

I WANT SHOPPING TO BE FUN Price & convenience are table stakes; sophisticated Digital Advocates value novelty & experience

U.S. SHOPPERS’ TOP REASONS FOR SHOPPING ONLINE

Source: Nielsen U.S. Digital Shopping Fundamentals, 2017

n= 385 774 436 945 548 229 1151

35%

45%

55%

65%

75%

85%

TECHNOLOGYAVERSE

DIGITALRELUCTANTS

NON-PLANNER TECH SAVVYVALUE SEEKERS

GRAB AND GO RESEARCHERS DIGITALADVOCATES

PRICE / VALUE CONVENIENCE VARIETY/NOVELTY EXPERIENCE

11 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US

), LL

C. C

onfid

entia

l and

pro

prie

tary

. Do

not d

istri

bute

. C

opyr

ight

© 2

018

The

Nie

lsen

Com

pany

(U

S),

LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

I WANT TO INTERACT WITH YOUR BRAND

Sources: sephoravirtualartist.com and ulta.com/app. All trademarks, product imagery, service marks, trade names, and logos are the property of their respective owners.

12 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US

), LL

C. C

onfid

entia

l and

pro

prie

tary

. Do

not d

istri

bute

. C

opyr

ight

© 2

018

The

Nie

lsen

Com

pany

(U

S),

LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

I WANT A PERSONAL STORE

Source: PR Newswire, Lowe's Vision In-Store Navigation screen shot. All trademarks, product imagery, service marks, trade names, and logos are the property of their respective owners.

13 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US

), LL

C. C

onfid

entia

l and

pro

prie

tary

. Do

not d

istri

bute

. C

opyr

ight

© 2

018

The

Nie

lsen

Com

pany

(U

S),

LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

I WANT SEAMLESS A CHECKOUT

Source: Yonhap - A visitor visits the newly opened 7-Eleven Signature store at the Lotte World Tower; GIF by Tech in Asia All trademarks, product imagery, service marks, trade names, and logos are the property of their respective owners.

Source: Nielsen Retail Measurement, Nielsen Shopper Trends (62 Markets excluding the U.S.), Nielsen global e-commerce forecast 2016-2022

I BUY DIFFERENTLY

15 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US

), LL

C. C

onfid

entia

l and

pro

prie

tary

. Do

not d

istri

bute

. C

opyr

ight

© 2

018

The

Nie

lsen

Com

pany

(U

S),

LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

6.3% UK

1.4% Germany

1.6% Italy

1% Spain

1.8% Switzerland

2.5% Sweden

1% Belgium

2% Denmark

2% Turkey

5.6% USA

2% Canada

<1% Argentina

1% Brazil

2% Mexico

18% China

5.6% Taiwan

3.1% Australia

1% Russia

2% Malaysia

2.9% New Zealand

<1% India

3% Singapore

1% Indonesia

3.4% Japan

I’M EMBRACING E-COMMERCE 6-7% of global FMCG sales

<1% Colombia

<1% Portugal

1% Norway

0.7% UAE

<1% South Africa

6.1% France 20%

South Korea

Sources: 2017 estimates based on Nielsen Retail Measurement Services, Nielsen Consumer Panel Services, Nielsen E-Commerce Measurement, Leading Industry Sources

16 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US

), LL

C. C

onfid

entia

l and

pro

prie

tary

. Do

not d

istri

bute

. C

opyr

ight

© 2

018

The

Nie

lsen

Com

pany

(U

S),

LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

NEARBY PICKUP PERSONALIZES MY OMNICHANNEL EXPERIENCE

• 4,000 points of collection • 5% market share • 8% value sales growth • 22% contribution to

FMCG growth in 2017

Sources: Nielsen France Trade Dimensions

17 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US

), LL

C. C

onfid

entia

l and

pro

prie

tary

. Do

not d

istri

bute

. C

opyr

ight

© 2

018

The

Nie

lsen

Com

pany

(U

S),

LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

E-COMMERCE GROWTH BY DEPARTMENT

I’M READY TO BUY PACKAGED GOODS ONLINE

Sources: Nielsen U.S. Total Store Report, 52 weeks ending Sept 29, 2018

E-COMMERCE IN-STORE

18 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US

), LL

C. C

onfid

entia

l and

pro

prie

tary

. Do

not d

istri

bute

. C

opyr

ight

© 2

018

The

Nie

lsen

Com

pany

(U

S),

LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

YET IN-STORE, I WANT FRESH, PREPARED AND CUSTOMIZABLE

U.S. IN-STORE $ SALES GROWTH VS. YEAR AGO:

Value-Added Vegetables: +7%

Prepared Deli: +3%

Value-Added Seafood: +3%

Prepared Bakery: +9%

Prepared Dairy: +10%

Fresh Meat Kabobs: +26%

Prepared Produce: +56% Source: Nielsen U.S. retail measurement Total Food View, 52 weeks ended April 21, 2018; image via Whole Foods & nypost.com All trademarks, product imagery, service marks, trade names, and logos are the property of their respective owners.

18 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US

), LL

C. C

onfid

entia

l and

pro

prie

tary

. Do

not d

istri

bute

. C

opyr

ight

© 2

018

The

Nie

lsen

Com

pany

(U

S),

LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

YET IN-STORE, I WANT FRESH, PREPARED AND CUSTOMIZABLE

U.S. IN-STORE $ SALES GROWTH VS. YEAR AGO:

Value-Added Vegetables: +7%

Prepared Deli: +3%

Value-Added Seafood: +3%

Prepared Bakery: +9%

Prepared Dairy: +10%

Fresh Meat Kabobs: +26%

Prepared Produce: +56% Source: Nielsen U.S. retail measurement Total Food View, 52 weeks ended April 21, 2018; image via Whole Foods & nypost.com All trademarks, product imagery, service marks, trade names, and logos are the property of their respective owners.

This artwork was created using Nielsen data.

Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

20 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US

), LL

C. C

onfid

entia

l and

pro

prie

tary

. Do

not d

istri

bute

. C

opyr

ight

© 2

018

The

Nie

lsen

Com

pany

(U

S),

LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

PERSONALIZE THE SHOPPER JOURNEY

Take advantage of new technologies to deliver the right message and offer,

through the right medium, to the right person

Focus on mobile to change the way you personalize the brand/store experience.

Embrace frictionless payments to improve the shopping journey

Embrace consumers’ disloyalty & prioritize value-added,

customizable services and products across your

omnichannel presence

21 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US

), LL

C. C

onfid

entia

l and

pro

prie

tary

. Do

not d

istri

bute

. C

opyr

ight

© 2

018

The

Nie

lsen

Com

pany

(U

S),

LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

LOYALTY REQUIRES AN OUTSIDE-IN VIEW Demographics

Retailer engagement (app, email, web)

Spend at your stores

Trips to your stores

Discount sensitivity at your stores

Demographics

Brand engagement (app, email, web)

Brand performance across stores

Category trends across stores

RETAILER VIEW

MANUFACTURER VIEW Demographics

Retailer engagement (app, email, web)

Spend at your stores

Trips to your stores

Discount sensitivity at your stores

Demographics

Brand engagement (app, email, web)

Brand performance across stores

Category trends across stores

CONSUMER-CENTRIC VIEW

Channel preferences

Spending across the rest of the market

Trip purposes

Lifestyle & Personality

Media behavior

22 Cop

yrig

ht ©

201

8 Th

e N

iels

en C

ompa

ny (

US

), LL

C. C

onfid

entia

l and

pro

prie

tary

. Do

not d

istri

bute

. C

opyr

ight

© 2

018

The

Nie

lsen

Com

pany

(U

S),

LLC

. Con

fiden

tial a

nd p

ropr

ieta

ry. D

o no

t dis

tribu

te.

Real-time optimization of personalized programs FUTURE OF CUSTOMER INTELLIGENCE

MEASUREMENT

ENRICHMENT

ACQUISITION

OFFER OPTIMIZATION & COLLABORATION

Department Missions Share of Wallet

ROI Sales Lift

Personalize Analyze Collaborate

Targeting Audience

• Less personal service

• ~100,000 products/store

• A 10-minute drive

• Self-service personalization

• Millions of products

• Wherever you’re connected

• Personal service & expertise

• Limited assortment

• Around the corner

• Highly personal experience • Infinite assortment • Everywhere you are

This artwork was created using Nielsen data.

Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

THE SCIENCE BEHIND WHAT’S NEXT TM

Film Series: The Expert View

KIM JohnsonBoulder Strategy Group

ASHLEY AlsupBoulder Strategy Group

Brand Strategies for Meeting Consumers Where They Are


DAN KurzrockReGrained

Closing Thoughts


Documents

Connecting with the Changing Consumer - New Hope Network · More than ever, climate matters to consumers. Consumers indicate that they would pay more for food grown with regenerative