Copyright © 2004 Information Resources, Inc. Confidential and proprietary. Changes in Attitude: The Why Behind the Buy

Copyright © 2004 Information Resources, Inc. Confidential and proprietary.

Changes in Attitude:

The Why Behind the Buy

2Copyright © 2005 Information Resources, Inc. Confidential and proprietary.

Survey Responses + Purchasing Data

for the same household

AttitudeLink

AttitudeLink Brings Everything Together!

Product and Marketing Activity

Individual Attitudes & Preferences

Household Purchasing


Limitations of Traditional Consumer Surveys Consumers' ability to recall past purchases is notoriously

inaccurate No way to track respondents' behavior over time No accurate way to capture product quantity used, price

paid, and related information for profitability assessments

Individual Attitudes and PreferencesThe Why Behind the Buy

Individual Attitudes & Preferences


AttitudeLink acts as a magic phonebook

Survey IRI panelists via:

Combine survey responses with same-household purchasing data and other facts about each household

Bar-coded survey by mail - via IRI's monthly panelist newsletter

Phone

Paper-and-pen survey by mail

Internet

The panelist newsletter includes ScanKey usage tips, reminders about the points rewards system, and other information of interest to panelists.




Attitude Link provides insights across the organization…

Price

PriceCONSUMER

MANAGEMENTPRODUCT

DEVELOPMENTSUPPLY CHAIN MANAGEMENT

CORPORATE PLANNING

Company mission

Gain competitive advantage

Forecasting

BUSINESSSTRATEGY

Category Understanding

Brand building/ differentiation

Pricing strategy/Compete with

PL

MARKETINGConsumer

Insights

Product evaluation/

reformulation

Channel management

decisions


Price

PriceCONSUMER

MANAGEMENTPRODUCT


CORPORATE PLANNING

Company mission


Forecasting

BUSINESSSTRATEGY




PL

MARKETINGConsumer

Insights

Product evaluation/

reformulation

Channel management

decisions



Case Study 1: Gain competitive advantage“The food’s gone but the container lives on…”

Situation analysis: Second Life’s competitor introduced new packaging solution for an existing product Research and evaluate competitive performance

Business issues: What drives the product success? How can Second Life leverage the learning and develop a better product?

IRI solution: AttitudeLink survey targeted triers and repeat buyers of the competitive brand


Triers “only buy it when on sale”

Repeat buyers liked the new packaging : “it helps to preserve great taste”, “retains freshness”, “I can re-use the container”

Product taste and quality received high ratings Price did not meet consumer expectations

More of an issue for triers


Findings

80

70

30

50

70

60

20

70

0

20

40

60

80

100

Great taste Premium quality Good value for themoney

Easy to store inrefrigerator

% r

es

po

nd

en

ts

Brand Performance by Repeaters (Top-2 box)

Brand Performance by Triers (Top-2 box)

Category Importance Ratings (Top-2 box)


Results & Recommendations

Container re-sealabilty and its uses after the food is gone contribute

most to customer satisfaction

Second Life should invest in new re-sealable package

Co-promote with recognized packaging company


Second Life introduced new packaging in 2004

Annual sales up 34%

Category sales up 4%

Package is the new standard in the category


Price

Price


CONSUMER MANAGEMENT

PRODUCT DEVELOPMENT

SUPPLY CHAIN MANAGEMENT

CORPORATE PLANNING

Company mission


Forecasting

BUSINESSSTRATEGY




PL

MARKETINGConsumer

Insights

Product evaluation/

reformulation

Channel management

decisions


Case Study 2: Brand Differentiation “Ammunition in the “Healthy Heart” Competition…”

Situation analysis: Category with two identical products HeartBeat owns 1/3 of market share while its leading competitor, Good

Faux You, owns close to 2/3

Business issues: Why are consumers choosing Good Faux You over Heartbeat? What can Heartbeat do to increase market share? Are there any opportunities missed by both companies?

IRI solution: AttitudeLink survey compared category usage and attitudes among both HeartBeat and Good Faux You buyers


Category usage reasons Eat healthier/dieting Recommendation by doctor or family Coupon/promotion to try

Product usage On its own (both brands) As an Ingredient in recipes Food additive

Brand differentiation – Good Faux You (2/3 market share) Health benefits are listed on competitive product’s packaging Competitor’s website points out additional options for use

Brand Differentiation

Findings

>Good Faux You


Recommendations

Brand Differentiation

Educate consumers on new ideas for Heartbeat usage through

advertising, website and other marketing activities. Focus on driving

multiple uses of the product.

Deliver the message that Heartbeat is a healthy product overall, not

just that it is low in fat and cholesterol.

Continue focus of convenience of the product as this is also a hot

button for time-crunched consumers, especially females 35+.


Price

PriceCONSUMER

MANAGEMENTPRODUCT


CORPORATE PLANNING

Company mission


Forecasting

BUSINESSSTRATEGY



Pricing strategy/

Compete with PL

MARKETINGConsumer

Insights

Product evaluation/

reformulation

Channel management

decisions



Case Study #3: Compete with Private Label “What’s in a name if the results are the same…”

Situation analysis: Asprifree sales decline while private label pain relievers continue to grow

Business issues: How to attract new buyers to Asprifree? What are the Asprifree strengths and weaknesses compared to PL? Is price the only PL pain reliever advantage?

IRI solution: AttitudeLink surveyed brand loyal pain reliever users and brand

switchers

PLBrand


Value of doctor recommendation as a purchase decision influencer Perception of pain reliever effectiveness was similar Ailment and severity of symptoms are not big factors in pain reliever

selection Previous experience with product Importance of packaging

Compete with private label…

Findings

62 65

15

49

85

65 61

7570

15

4050

60

8085

0

20

40

60

80

100

Provides fastrelief

Provides long-lasting relief

Is a good valuefor the money

Label clearlylists activeingredient

Is a well-knownbrand

% r

es

po

nd

en

ts

Aspifree performancePL performancePain reliever importance


Keep a focus on professional detailing

Leverage manufacturer’s umbrella brand equity: reliable, safe, effective

Narrow the price gap between name brand and private label

Recommendations

Compete with private label…

In the most recent quarter:

Price gap narrowed by 32 cents (16%)

Sales trends reversed


Price

Price


CONSUMER MANAGEMENT

PRODUCT DEVELOPMENT

SUPPLY CHAIN MANAGEMENT

CORPORATE PLANNING

Company mission


Forecasting

BUSINESSSTRATEGY




PL

MARKETINGConsumer

Insights

Product evaluation/

reformulation

Channel management

decisions


Case Study #4: Consumer insights “Keeping the sparkle in their eye…”

Situation analysis: One of the Super Kleen Co. best selling cleaning products declined over

past year Increased number of consumers left the category

Business issues: Why is SparKleen losing sales? Did the product usage change? Did consumer expectations for cleaning products change? What are SparKleen strengths and weaknesses?

IRI solution: AttitudeLink survey results compared usage and attitudes among buyers

of three major brands in the cleaning product category. Also looked at Lost and Retained buyers.


Reduced TV advertising and other marketing efforts affected sales Purchase cycle extended Multi-functional cleaner functionality not utilized

Findings

Consumer understanding

Is a brand Itrust

Can be used allover the house

Is a good valuefor the price

Doesn't workas well asexpected

Works asshown in

advertising

SparKleen Bleach Scrubly-bubbly

SparKleen strengths:

Can be used all over the house

SparKleen weaknesses:

Is not as trusted as competitive brands

Is not a good value for the money

Does not work as expected/as shown in advertising


Re-launch a marketing campaign that reinforces the multiple uses for the product

Be certain to state in new marketing that SparKleen can be used in addition to bleach and other cleaners rather than as a substitute

Make sure consumers have realistic expectations of the product!

Results & Recommendations

Consumer understanding

2004 volume sales up 9%

2004 annual sales increased by $3MM


PriceCONSUMER

MANAGEMENTPRODUCT


CORPORATE PLANNING

Company mission


Forecasting

BUSINESSSTRATEGY




PL

MARKETINGConsumer

Insights

Product evaluation/

reformulation

Channel management

decisions



Case Study 5: Channel management decisions

Situation analysis: GotALot retailer wants to know how to encourage shoppers to fill their

prescriptions there, rather than at traditional pharmacies or at competitors

Business issues: How does GotALot perform against what is important to the consumer? How to prevent shoppers from buying Rx and OTC from competitive

retailers?

IRI solution: AttitudeLink survey to GotALot shoppers who filled their prescriptions

there and/or traditional pharmacies or other retailers


What’s important to Rx Buyers: GotALot Performance:

Convenient locations Knowledgeable pharmacist Fast checkout Quick prescription filling

What’s important OTC Buyers: GotALot Performance:

Low prices Easy-to-find items Convenient location Fast checkout

Overall satisfaction with GotALot:

Channel management decisions

Findings


Recommendations Leverage GotALot’s strong Rx satisfaction ratings to increase sales in

the rest of the store and minimize lost sales to competitors.

Promote “one stop shopping” message.

Consider longer hours and alternative means of delivering meds to

consumers.

Channel management decisions


Price

PriceCONSUMER

MANAGEMENTPRODUCT


CORPORATE PLANNING

Company mission


Forecasting

BUSINESSSTRATEGY




PL

MARKETINGConsumer

Insights

Product evaluation/

reformulation

Channel management

decisions



Case Study 6: Product evaluation

Situation Analysis Lovin’ Oven Inc. introduced a new product, Tub O’Grub Do consumers like it enough that it could be a long term contender in

the shelf stable dinner category?

Business issues: How do we turn triers into repeaters? Does the product meet consumer expectations on taste, price and

other product features?

IRI solution: AttitudeLink surveyed Tub O’Grub triers and repeat buyers


Product Evaluation

Findings

Do consumers like the product?

Only 65% of respondents indicated intent to repurchase, which is significantly lower than other benchmarks (generally 80%).

More than half of consumers felt that there was not enough meat included in the product.

Taste ratings were significantly lower than the client’s benchmarks.

Children seem to like the product slightly more than adults. But they could not prepare it themselves.


Recommendations

Increase the amount of meat in the product

Improve product taste and quality of the ingredients

Focus on product attributes that appeal to children. Make it easier

for kids to prepare the product themselves

Product Evaluation

Client implemented IRI’s recommendations

2004 annual sales increased by $6MM



Price

PriceCONSUMER

MANAGEMENTPRODUCT


CORPORATE PLANNING

Company mission


Forecasting

BUSINESSSTRATEGY



Pricing strategy/Compe

te with PL

MARKETINGConsumer

Insights

Product evaluation/

reformulation

Channel management

decisions

Documents

Copyright © 2004 Information Resources, Inc. Confidential and proprietary. Changes in Attitude: The Why Behind the Buy