Marketing Research - Amazon S3...Bridges Toward Healthier Eating Barriers & Opportunities 62% 55% 52% 57% 30% 50% 70% Healthy OW 1 OW 2 Obesity Majority of consumer groups stated they

Why They Buy

Fighting Obesity Through Consumer

Marketing Research

www.hudson.org

Hank Cardello

Senior Fellow & Director,

Food Policy Center

June 14, 2018

Introduction

Obesity Remains a Widespread Problem

Adult obesity rates now exceed 35% in 5 states, 30% in 25 states

Source: CDC Behavioral Risk Factor Surveillance System, 2016

Traditional Approaches Have Focused Primarily on

Marketing Restrictions, Consumer Education and

Regulations that Address the Population at Large

Yet, these initiatives have known limitations…

• Take a “one-size-fits-all” approach

• Unintended consequences of regulations

• Often do not address the key need: shifting long term behavior

Enter Consumer Segmentation

What is segmentation?

Identifies sub-groups to more effectively understand,

message to and motivate consumers

Consumers are all the same Consumers have unique needs

• Looking for lowest price

• Want maximum fuel efficiency

Example (Automobiles):

• Safety

• Fuel efficiency

• Luxury

• Image conscious

• Performance

• Styling and design

Approach & Methodology

The Approach:Examine differences among consumers based on BMI Category

Barriers to

ChangeBehaviors

Mindsets &

Attitudes

How they think &

attitudes toward

food

Seated beliefs &

demographic

constraints

Lifestyle &

purchase patterns

Policy & Program Insights

The Segmentation Solution

A four-segment solution was selected

▪ Compare Healthy Weight cohort vs. those having Obesity

▪ Examine 2 Overweight segments to assess transition dynamics

• Overweight 1 (OW1) – somewhat overweight

• Overweight 2 (OW2) – mostly overweight

Healthy Weight Overweight 1 Overweight 2 Obesity

BMI Classification 18.5 - 24.9 25.0 - 27.0 27.1 - 29.9 ≥ 30.0

% Sample Total 34.4% 12.2% 14.5% 22.6%

Source: NIH; CDC

Research Parameters

▪ Survey performed by Natural Marketing Institute • Have conducted 50,000+ surveys

• 2000 person sample

• Mutually exclusive segments determined by BMI classification

• Statistical significance at 95% confidence level

▪ Focus on indulgent products• Soft drinks/beverages

• Packaged pastries & sweet baked goods

• Salty snacks & chips

• Chocolate & candy

• Cookies

• Packaged ice cream

Summary of Insights

Obesity Segment Attitudes Are Not Aligned

with Healthier Eating

INDEX vs. General Pop. Healthy Weight Overweight 1 Overweight 2 Obesity

Know I should eat

healthier but don't82.2 82.4 110.8* 123.5*

It’s difficult to follow a

healthier eating plan 78.4 68.6 106.7* 136.1*

It’s not convenient to

follow a Healthy lifestyle 79.0 92.3 94.9 128.0*

Consuming Healthy,

nutritious foods is

important106.4* 105.6* 93.5 89.1

Mindsets &

Attitudes

41% 42%

56%

62%

30%

50%

70%

Healthy OW 1 OW 2 Obesity

Q. I know I should eat healthier but don’t1

*significant finding versus Healthy weight individuals

* significant finding versus Obesity segment 1 Agree completely/somewhat

Taste & Value Trump Health for the Obesity Cohort


I often give up taste for

health benefits102.7** 85.7 87.9 84.2

Healthy food just doesn't

taste good86.6 84.6 92.8 135.1*

I will often give up value-

priced or cheaper

products for products

with health benefits

107.8* 93.0 92.2 87.4

Mindsets &

Attitudes

37%

31% 32%

30%30%

35%

40%


Q. I often give up taste for health benefits1


* significant finding versus overweight and Obesity segments 1 Agree completely/somewhat

Q. When selecting the foods and beverages that your household consumes, which THREE attributes are most important


* significant finding versus Obesity segment

Only 1/3 in Obesity Cohort Rate

Health & Nutrition as a Top 3 AttributeMindsets &

Attitudes


Taste 94.4 100.3 104.6 112.8*

Value for the money 95.6 96.7 107.2 120.2*

Health & nutrition 112.1* 110.4 95.7 80.4

Competitive price 77.9 119.1* 123.0* 120.4*

Convenient preparation 87.9 93.7 93.8 124.3*

44% 43%

38%

32%30%

40%

50%


% Indicating Health/Nutrition as a Top 3 Attribute

Obesity Segment Displays a Different Mindset

to Making ChoicesMindsets &

Attitudes


I have cravings for

unHealthy foods and

usually just give up83.4 96.5 105.1 126.4*

Choose foods based

on whether they make

me feel good emotionally91.4 89.4 89.1 105.3

I tend to choose

somewhat impulsively88.3 82.8 98.2 109.9*

I live for today/don’t

worry about tomorrow84.6 85.0 100.4 113.1*

41%47% 51%

62%

30%

50%

70%


Q. I have cravings for unhealthy foods and give up1

*significant finding versus Healthy weight individuals1 Agree completely/somewhat

Healthy Weight Individuals Are More Likely to

Read and Act on Package LabelsBehaviors &

Decisions

INDEX vs. General Pop Healthy Weight Overweight 1 Overweight 2 Obesity

Read labels on

packages103.7* 104.7* 89.6 94.7

Select foods based on

nutrition facts panel on

back104.7* 101.6 94.5 89.0


nutrition on front 106.2* 100.2 83.3 86.2


ingredient list106.8* 100.4 91.5 87.8

* significant finding versus overweight 2 and Obesity segments

Q. Products you have purchased in the past month


Obesity Cohort Purchases Significantly More Packaged Snacks,

Sweet Baked Goods and Soda, But Not CandyBehaviors &

Decisions

Purchase INDEX Healthy Weight Overweight 1 Overweight 2 Obesity

Diet soda 84.4 92.5 93.7 123.6*

Regular soda 92.3 92.1 102.6 119.3*

Packaged pastries/

Baked goods94.0 109.0 105.7 115.2*

Cookies 95.4 99.6 98.1 110.4*

Potato & other chips/

pretzels95.6 104.2* 104.4* 110.3*

Packaged ice cream 96.8 104.5 105.6 110.2*

Non-chocolate candy 102.3 112.7 79.4 109.2

Chocolate candy 99.3 104.1 104.8 101.0

*significant finding versus Obesity segment

Healthy Weight Segment Driving Sweetener Concerns Behaviors &

Decisions


I avoid ALL sweeteners 103.2* 99.2 80.4 74.7

I search for all natural

non-calorie sweeteners

rather than artificial

sweeteners

105.4* 94.9 93.0 84.6

I avoid products

containing high fructose

corn syrup106.6* 99.2 97.8 89.3

I search for food and

beverages with “no

added sugar”102.2* 102.6 94.7 90.0

Obesity Cohort Does Not Like to Exercise

or Believe in Its ValueBehaviors &

Decisions


I do not exercise or work out 83.9 88.8 118.3* 134.7*

I hate to exercise 76.4 85.6 104.6* 137.1*

Exercise is important

for health108.7* 104.0* 89.7 84.7

15%17%

23%

25%

10%

20%

30%


Q Response: I do not exercise1


* significant finding versus overweight 2 and Obesity segment 1 Agree completely/somewhat

The Expense of Healthy Foods Is a Barrier to

the Most Overweight and Obesity Segments Barriers &

Opportunities

40% 40%

46%

53%

35%

45%

55%


Q: I don’t eat Healthy food more often because it’s too expensive1

1 Agree completely/somewhat

Barriers Are Echoed by Demographics

Indicating Weight Status Is Linked to IncomeBarriers &

Opportunities


Income

<$50k 102.2 90.5 114.3 115.6*

$50k – $99k 86.1 114.3 106.4 92.9

$100k+ 105.0 112.2 77.7 91.8

Use Food

Stamps/ SNAP74.7 96.0 85.5 103.1*

College Grad 107.9* 93.8 102.0 83.2

Age: 18-29 125.2* 77.0 57.1 68.2


* significant finding versus Obesity segment

Portion Sizing and Convenience Offer Potential

Bridges Toward Healthier Eating Barriers &

Opportunities

62%

55%52%

57%

30%

50%

70%


Majority of consumer groups stated they are seeking healthier on-the-go options1

51% 50%53%

60%

30%

50%

70%


Q. I am unlikely to give up soda or snacks, but I would like to consume them in smaller portions1


Restaurants Emerged as a Significant

Opportunity to Reduce Calorie Consumption Barriers &

Opportunities

At restaurants… Healthy Weight Overweight 1 Overweight 2 Obesity

I like to indulge and

eat what I want95.9 94.0 100.3 108.0*

I often splurge and

eat foods that are not

so Healthy93.8 99.9 97.8 106.6*

It is hard to find

healthier foods that

taste good92.8 85.5 88.7 111.6*

63%55%

36%

0%

20%

40%

60%

80%

I look for healthy items I would prefer smallerportions

I check the calorie content

Restaurant Eating Behavior (all respondents)1

*significant finding verse Healthy weight individuals1 Agree completely/somewhat

Segment Recaps

▪ The mindsets, attitudes and purchase habits of the Obesity cohort are

dramatically different than Healthy Weight individuals

▪ Mostly Overweight (OW2) segment leans toward Obesity cohort’s

attitudes and behaviors

▪ Moderately Overweight (OW1) segment illustrates several attitudes

and habits comparable to Healthy Weight individuals, suggesting

more receptiveness to change


H&W StarsGet it;

Need GuidanceTipping Point

Challenge to Change

What are the implications?

▪ Traditional health messaging to the Obesity segment (as well as the mostly

overweight segment) is not an effective strategy given that their expressed

attitudes, behaviors and MINDSETS are inconsistent with healthier eating and

lifestyles.

▪ Calories must be removed from indulgent products (especially soft drinks,

salty snacks & sweet baked goods) and restaurant menus as they contribute to

overconsumption by the Obesity cohort.

▪ A more effective way to help the Obesity/mostly overweight segments is via

Stealth, i.e., offer, display and sell products that are quietly lower in calories/ better-

for-you while tasting great and delivering an affordable price.

▪ Somewhat overweight individuals “get it” about health and nutrition but need

more assistance. Targeted health messaging combined with “stealth” efforts will

help this cohort.

Stealth the Roadmap to Helping the Highest Risk Populations


H&W StarsGet it;

Need GuidanceTipping Point

Challenge to Change

STEALTH

Calls to Action

Calls to Action - Industry

Packaged Snacks/Sweet Baked Goods and Restaurant

Sectors Need to Make Commitments to Lower Calories

Sector Key Commitment Verification

Healthy Weight Commitment

Foundation (16 CPG cos.) Removed 6.4 trillion calories √

Robert Wood Johnson

Foundation; UNC

Confections½ of items sold ≤ 200 calories by

2021

Partnership for a Healthier

America; Hudson Institute

Convenience StoresMultiple chains – increase # of

healthier products sold; Drink Up!

Partnership for a Healthier

America

Soft Drinks Reduce calories by 20% by 2025Alliance for a Healthier

Generation

RestaurantsKids LiveWell – 42,000 locations

with 2 BFY items for kidsNone

Snacks/Sweet Baked Goods

Calls to Action – Public HealthRegulators and the Public Health Community Need to Reassess

Standard Approaches for Effectiveness by BMI Segment

Example

ProgramChallenge Required Learnings

LabelingHigh BMI segments do not read and

select foods based on nutrition labels

as much as Healthy weight group

Determine most compelling messages

and ways to communicate them by BMI

segment

“Junk Food”

Taxes

High BMI segment mostly against

taxes; Taste a big purchase driver

making switching to high calorie/tasty

products likely

Assess trade-off purchases and net

impact on calorie consumption & obesity

rates for each BMI cohort

SNAPDebate surrounding which products

should be part of SNAP offering

Examine SNAP recipient consumption of

debated products by BMI cohort to

determine extent of overall product

usage and when using SNAP benefits

Calls To Action – ResearchNeed Deeper BMI Segmentation Research into Overweight/Obesity

Cohorts to Uncover Notable Opportunities to Shift Outcomes

▪ Deep Dives by BMI segment:

• Product Usage

➢ Full array of CPG products – total impact

➢ For QSR menu items

• Communications/messaging

➢ Attitudes & Mindsets

oLabeling

oPublic Health education messaging

• Policy Input

Why They Buy

Fighting Obesity Through Consumer Marketing

Research

www.hudson.org

Panel Discussion• Bill Dietz

• Tracey Massey

• Hank Cardello

Appendix

Segment Recaps

▪ The mindsets, attitudes and purchase habits of the Obesity cohort

are dramatically different than Healthy Weight individuals

• Know they should but do not following healthier eating lifestyles

• Health & wellness is not a priority; won’t compromise on taste

• More short term; likely to give into impulses and indulgent (over)eating

• Overconsume indulgent products (except chocolate/candy)

• Nominal concerns regarding sugar

• Not reading labels as much or selecting products based on nutritional

information

• Hate to exercise and do not see its value

• Price of healthy items an issue

Segment Recaps

▪ Mostly Overweight (OW2) segment leans toward attitudes and

behaviors of Obesity cohort

• Know they should but do not follow a healthier eating plan

• Health & wellness less of a priority; won’t compromise on taste

• Overconsume salty snacks

• Not reading labels as much or selecting products based on nutritional

information

• Hate to exercise and do not see its value

• Price of healthy items somewhat of an issue

Segment Recaps

▪ Moderately Overweight (OW1) segment demonstrates several

attitudes and habits comparable to Healthy Weight individuals,

suggesting more opportunities for change

• Agree health & wellness is important, but competitive price a factor

• Don’t overconsume indulgent products (except salty snacks)

• Reading labels and, directionally, selecting products based on nutritional

information

• Get importance of exercise

• Mindsets closer to Healthy Weight segment

Q. Products you have purchased in the past month

*significant finding versus Obesity segment

Obesity Cohort Purchases Fewer On-trend

Healthier AlternativesBehaviors &

Decisions

Purchase INDEX Healthy Weight Overweight 1 Overweight 2 Obesity

Protein bars 109.7* 108.0 76.2 84.1

Yogurt 104.6* 100.5 90.7 92.7

Aquafina 111.0 96.6 70.0 83.8

Dasani 117.2 102.4 103.3 98.6

Highest BMI Cohorts Are Less Likely to Rely on the

Internet, Social Media and Expert Sources for InformationBarriers &

Opportunities


Internet/Websites 104.8* 96.2 88.9 93.7

Third Party certification

seals (i.e., USDA

Organic Seal, NON-

GMO Project)

104.1* 96.6 93.7 87.7

Corporate/Brand

websites105.6* 100.0 85.7 79.1

Social media (Twitter,

Facebook, Pinterest..) 103.7* 89.2 84.7 85.7

Blogs 104.5* 86.7 73.5 80.3

* significant finding versus OW2 and Obesity segments

Q. How much influence does each of the following have on your purchase/usage of healthy and natural products

(Top 2 box: a lot/a little)

Overweight and Obesity Cohorts Are Less

Favorable to Taxing SodasBarriers &

Opportunities

37%

46%

50% 49%

30%

40%

50%

60%


Q: Response NO to: Is taxing soda is a good thing to do to cut the health risks caused by excess sugar consumption?1

*significant finding verse “normal” weight individuals1 Agree completely/somewhat

Consumers Are NOT Counting Calories

Regardless of BMIBehaviors &

Decisions

75% 74%80%

76%

60%

70%

80%

90%


Response: I do NOT track calories consumed1


Documents

Marketing Research - Amazon S3...Bridges Toward Healthier Eating Barriers & Opportunities 62% 55% 52% 57% 30% 50% 70% Healthy OW 1 OW 2 Obesity Majority of consumer groups stated they