Nestle Waters @50+ Define concrete strategies to develop Nestle Waters on the 50plus market 31 mai - Paris

Nestle Waters @50+ Define concrete strategies to develop Nestle Waters on the 50plus market

31 mai - Paris

Nestle Waters @50+ Important InsightsBy Frederic Serriere

31 mai - Paris

Many Seniors

Jamie Lee Curtis

Age

Revenues

Health

Family

Consumption behaviours

Relation to ageing

Consumption values for a specific product

Generational values

Individual values

« In-house » segmentations...

...

Different segmentation

Young Seniors ElderlySeniorsBaby

boomers

65

70 80 9040 50

1960 1950 19401940 1930 1930

First : the Generations

Sécurité, camaraderie,

fellowship

Religion, respect, authority, history,

traditions

Order, social statut, bénévolat, innovation, global

vision, Volunteering

Pleaseur, freedom, individualism,

youth, nostalgy

Values

Before 19231924 - 19351936 - 19451946 - 1956Birth

ElderlySeniorsYoung SeniorsBaby Boomers

Different values

Age

CSP

Santé

Situation familiale

Comportement d'achat

Rapport au vieillissement

Rapport à la consommation

Valeurs explicatives d'achat

Valeurs individuelles

...

Autres facteurs de segmentation

706040 50 80 90{

Last child leaves home1st important legacy

Home is paid

Retirement DepedencyCare needed

menopause

Baby-boom

1st world war

Men life expectancy

{

Cognitive (subjective) age

403020 50 70 8060+2

-20

1920194019601980

Age

Boomers feel 13 years less

43% of revenues (up by 15% by 2020)3200 billions euros of purchasing power (Europe)72% of financial investments

43% of the new kitchen market60% of housing75% of high-end vehicles 6% of the revenues for children and grandchildren

51% of mineral waters in Europe35% of purchases of low-fat meals3/5th of home food market50% of for beauty products50% of new cars45% of nights in 3 and 4 stars hotels56% of total insurance.

Source : Eurostaf, Euromonitor, Senior Strategic

Some figures

Market shares (2005/2015) for 50 plus (Europe)

Source : Oxford Aging - Eurostaff

Health

Food

Other sevice

Equipement

Recreation

Over all consumption

Alcohol Tobacco

Housing

Transport

Communication

Clothing

Hotel Restaurant

Education

é

.

Revenues by person (Europe)

0 20 30 40 50 60 70 80

Generation and aging effets on consumption

By generation / By revenus By cohorts

ABD

CE

Food consumption / age

Food consumption is decreasing when aging

Needs downMeals with friends down

BUT

These results are influenced by generation factor with Boomers

.

ComGI strategies

Generational

Intergenerational

Ge

ne

rati

on

al

Inte

rge

ner

atio

nal

Product

Co

mm

un

ica

tio

n

COM/GI - Strategies

GSM Mobile phones / Generations

ElderlyBaby boomers

Bazile

Easy 5

Motofone f3

DocomoRaku Raku

Elderly

Columba

Jitterbug

Kddi

Sens Phone

Elderly

Intergenerational design

Generational design

DocomoRaku Raku

What they do to succeed on the 50 plus

Products Communication Price Distribution / Sales

Strong needKnownInnovationEasy to useWell designedProuved

AdaptedWith informationsDifferent mediasInternet for BB onlyPublic relations strategy

Quality/pricePaid by familyReal valueClear price

Strong sales strategies (very important)Aging population = concentration in townAdapt to Boomers' changes

Fortis (Ageas) with AgeConcern (AgeUK)

Partnership with AgeUK

AgeUK is the 1st association for 50 plus

1 million of customers in insurance

How they succeed

Real competitived prices

Former AgeUK's association hired

Full marketing proposed

Full «AgeUK » branded – All done by Fortis

OXO : More than Universal Design

OXO is dedicated to providing

innovative consumer products

that make everyday living easier.

How they succeed

High quality

Well distributed

VERY INTELLIGENT DESIGN

Docomo

Docomo : 1st japanese telecommunication

company

18 millions of Raku Raku Phones in 10

years

How they succeed

Modern design

Many specific services

Retailing

AARP : generation shift

AARP : 37 millions members

Need to capture Boomers and keep

Seniors and elderly

How they succeed

Boomer's Management

Boomers' topics

Magazine : 3 in 1

Life Turner

Saga

SAGA

Insurance and Travel Company

How they succeed

Global Marketing

History

Metlife

Insurance Company

How they succeed

Good products

Good knowledge of the 50plus

Mature Market Institute

Consumption : up or down ?

Adapt packaging

Universal communication based on Boomers' values

Knowledge of consumption by brands by generations

Strategies by countries, zones...

Health strategy (diabetis, osteoporosis)

Focus on sales and retailing

Study the possibility « AARP Pure Life by Nestle »

Nestle as a major actor of Aging (conferences, medias, institute...)

Environment and mineral waters

System to keep consumption when aging

Experts : Stroud, Matura, Medina, Green, Perez, Mokka, Waker, Nyren, Lavery, Desfosse,

Serriere.

Ideas by SeniorStrategic Worldwide Network

Methodology :

32 Seniors in France, Germany and UK

All .

By SeniorStrategic's Internet Panel

Mai 2011

Note: this is not a full qualitative study. This is insight to prepare the brainstorming.

Insights for the Brainstorming

Consumption (/capita /year) : France : 135 l, Germany : 95 l, UK : 90 l

3 different types

Trends in Boomers generations : less loyalty to brands, more mature choices for

objective, low cost waters ? (need to be studied), more different types, request

evidence...

Trends in Seniors and Elderly generations : keep loyalty to brands, lower

consumption ? (need to be studied)

Why ? Reasons ? : purity, health, pleasure, keep fit, habit...


Requests

Better understanding of « real benefits » (Boomers request)

Smaller bottles (Elderly, in town)

Easier opening (not declare but needed)

More varieties (Boomers request)

More authenticity (Boomers request)

Tap water : what they think ?

Boomers : « this is ok », « now tap water is safe ».

Seniors and Elderly : « I prefer mineral water for safety and healthy raisons ».

(Important differences with a same generation – generation is not relevant

segmentation on this question)


Nestle Waters @50+ Franck Leyze

31 mai - Paris

29

Our target

A global segmentation (50-75) based on quantitatives

Six consumer Demand segments have been identified by Nestlé, based on consumers’ attitudes and motivations

ApatheticAge Acceptors

18%

CarefreeAgers

14%

Ageing ProblemCaretakers

18%

Ageing Problem Managers

15%

Proactive Life Embracers

16%

Struggling Solution Seekers

19%

I’m having to deal with specific issues for someone else

I am positively motivated in making my life the most it can be

I am emotionally drawn to do what will make me better than I feel I am today

I am apathetically resigned to what life will bring and skeptical of anyone’s ability to change it

versus

I am currently happyto pursue whatever willmake me happy for today

versus

I’m having to deal with specific issues for myself

versus

Two segments have few unmet needs and targetable motivations Apathetic Age Acceptors Relatively unconcerned about health Resigned to what life brings them; feel ageing should be accepted as unavoidable Have basic, functional involvement with food and are unwilling to change their diet to improve their health Carefree Agers Generally healthy and unconcerned about future health risks Do not seek nutritional benefits from foods or supplements to manage their health

Health and Ageing Demand Segments(% of Adults Age 50-75)

ApatheticAge Acceptors

18%

CarefreeAgers

14%

Ageing ProblemCaretakers

18%

Ageing Problem Managers

15%


16%


19%

Potential Target for Strategy Development

Two Thirds of the Population Age 50-75 Represents Potential Marketing targets for Health and Ageing Propositions

32


Implied population within regions Europe: 22 million AMS: 27 million AOA: 65 million

Population within 8 countries surveyed Europe: 10 million AMS: 18 million AOA: 37 million

Proactive Life Embracers (16% of population) are vibrant, positive individuals with many interests and activities. They do all they can to feel youthful, and believe that looking good is part of feeling good.

Overall, they are the healthiest segment, with few major health problems. In order to maintain their health and looks, they are more likely than others to invest heavily in a disciplined, comprehensive lifestyle which includes diet, exercise, and supplements. Diet is an important part of their regimen, and they attribute many positive benefits to food, including cleansing, revitalization, etc.

Because of their dedication to healthy living goals, they are brand loyal, and willing to pay a premium for the right products. They are open to new solutions, and are interested in the latest advances that will make food even healthier. They show particular interest in new products to protect and enhance their health, vitality and appearance.

Demographically, Life Embracers skew higher income and employed.




Struggling Solution Seekers (19% of population) are generally concerned about their health but feel they lack the discipline and time to lead a healthier lifestyle.

Solution Seekers’ relationship with food centers on emotions. They use it to celebrate positive life moments and to provide comfort during difficult times. Their emotional attachment to food contributes to their lack of willpower and feelings of guilt when they over-indulge. As a result, many Solution Seekers are overweight.

They are frequent users of diet foods and beverages. They recognize that their current habits are not as healthy as they could be and value convenient ways to eat a better diet to look/feel better and avoid problems down the road. Weight loss/management is the main health benefit of interest to Solution Seekers.

Demographically, they skew younger, employed and female.

33

Ageing Problem Caretakers



Ageing Problem Caretakers (18% of population) are very focused on the health condition of other household members as many have spouses/ partners with serious health problems or risks. They also have health concerns of their own.

They see themselves as nurturers, and preparing healthy meals for their household is a way they take care of those they love. Caretakers are fairly confident in their nutritional knowledge and skills as cooks, but are interested in learning more about nutrition and healthy eating. They are open to new foods to help manage their issues/risks.

The Ageing Problem Caretakers have average concerns about their own ageing per se. Their main priority is staying healthy so they can enjoy life and care for their loved ones.

Demographically, they skew female, older and married.

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35 November 20, 2003

Ageing Problem Managers (not a primary focus)



Ageing Problem Managers (15% of population) have the poorest health profile of all the segments. Many suffer from, or feel they are at risk for a major health condition such as diabetes or heart disease. As a result, they are very concerned about their own health, and put a lot of effort into managing it.

Watching their diet is one of the ways that they manage their health; in particular, they try to minimize the intake of harmful food components, like sodium and cholesterol. While they have some confidence that their food routine will help them, they are relatively uninformed about nutrition and tend to rely on medical professionals to help manage their conditions and risks. Ageing Problem Managers show interest in new food products that credibly and conveniently address their health issues/risks. However, they are price sensitive in their food choices and less compelled to pay more for healthier foods.

Demographically, they skew male, older, lower income and single.

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Ageing Problem Caretakers

• Healthy & active• Focus on Protecting & enhanceing health, vitality, and appearance50 mios in AMS + EUR

• Lack discipline & time to be healthy• Focus on weight management60 mios in AMS + EUR

• Focus on staying healthy to enjoy life and take care for their loved ones (husband)60 mios in AMS + EUR

PRIMARY TARGETBaby Boomers110 mios 50 – 65 : from menaupose to retirement

SECONDARY TARGETGrand Boomers60 mios 65 - 75 : retirement to serious health issues

Documents

Nestle Waters @50+ Define concrete strategies to develop Nestle Waters on the 50plus market 31 mai - Paris