RESEARCH OVERVIEW

In the wake of the great recession, Sachs Insights embarked on an ethnographic look at life in the new economy. From August 2009 though March 2010, research has been conducted in 23 markets across the United States.

• 31 in-depth ethnographies in: Boston, Chicago, Dallas, Los Angeles, New York City, Orlando, Philadelphia, Seattle and Washington DC.

• Day in the Life Ethnographies• Affinity Groups with Close Friends & Family

• 30 Self-reported “Video Confessional” Diaries from: Atlanta, Denver, Detroit, Indianapolis, New Orleans, Orange County, and more.

• 150 respondents representing a range of backgrounds: • Range of income, occupations, family composition, and

ethnicity• Some hit hard (job loss, foreclosure)• Some more fortunate

THREE GENERATIONS: THREE PERSPECTIVES

BOOMERS:Many do not have the financial security they worked for, hoped for, and expected at this life stage

The future holds fewer opportunities – for them and their children

Many feel hopeless and helpless

However, some are cautiously optimistic

GEN X:Many have had to put off saving for now, and hope to catch up after houses, kids, and college are paid for

Their focus is on taking care of family and just getting by

Most are trying to keep a positive outlook in the face of problems they see as outside their control

Keeping a hopeful attitude about the future is perceived as a personal responsibility

MILLENNIADULTS:

They see themselves as adaptable and resilient –their lives are digital, portable, and flexible.

The family safety net is frayed – taking control of their finances is a newly found point of pride

Many turn to their legions of social networking friends as a safety net

COMMON THEMES ACROSS GENERATIONS

Across generations, they are redefining NEEDS vs. WANTS.

Luxury imagery and messaging do not resonate now – they are seen as excess and are no longer acceptable

Excess is trumped by Essential

Looking for the “affordable alternative”

Many are focused on VALUE – thrifty behaviors that once seemed “downscale” are now points of pride (e.g., coupons, sharing savings tips)

Many now see value in investing time to plan, research, and locate the right price… it feels good to spend wisely.

Loyalty programs, “free” offers, double coupons and even cereal box tops are creatively leveraged and maximized.

They are leveraging online resources to find and create deals.

Blogs, auctions, and social networks are channels for savings.

They will “invest” in products that

facilitate this transformation:

• TVs & Home Entertainment Systems

• Video Games• Computers• Popcorn Makers• Crock-pots• Sushi Sets• Snacks for Sharing• Alcohol… “for Guests”

“IN” IS THE NEW “OUT”

When it comes to dining, drinking and entertainment – home is the new “hotspot.”

GOTTA HAVE IT / SIMPLE PLEASURES

Many see healthy foods as an investment in their family’s long term health and well-being – hopefullyfending off future ills and medical expenses.

Some purchases fall into the GOTTA HAVE IT category. Often these are justified as necessary for: PRODUCTIVITY ADDITIONAL SAVINGS HAPPINESS HEALTH SANITY

SIMPLE PLEASURES are essential. They are the key to having a good day without guilt. ACCESSIBLE rather than extravagant experiences are prized.

Going for coffee or drinks, being CAREFREE and SOCIAL, are simple experiences that evoke better days.

However, many look forward to the a time when they can once again spend money more spontaneously, but on a SMALLER SCALE.

Although store brands are getting greater consideration, almost all have certain BRANDS they simply will not give up.

BRANDS

There are numerous drivers and justifications…

The kids won’t eat the cheaper store brand…

I’ve eaten this since I was a kid…

I need this to start the day off right…

If I gave this up, I’d feel like I really hit rock-bottom…

It’s simply better than anything else…

The price difference is insignificant…

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SURVIVING & THRIVINGIN THE NEW ECONOMY

EXCESS IS OUT – ESSENTIAL IS IN

How can you be perceived as serving an essential need?

HealthHappiness

ProductivitySavingsSanity

PROVIDE OPPORTUNITIES FOR GUILT-FREE SPONTANEITY

What is your special kind of “simple pleasure”?

BE SEEN AS AFFORDABLE AND ACCESSIBLE

Reframe the competitive set.Is that an expensive TV…

Or a bargain as a home entertainment resource?

In what ways are you the “affordable alternative”?

REDEFINE LUXURY

Can your brand represent quality that will last – a long-

term or high-impact investment?

Are there ways you to make them feel pampered without

the guilt?

“IN” IS THE NEW “OUT”

Can you get invited “IN”?

How can you enhance the experience of Home as the

new Hot Spot?

What can you offer to ease cabin fever?

BE SOCIALGIVE A LITTLE TO GET A

LITTLE

Get them in the door with special offers posted on Facebook, Twitter and

Blogs.

Mobile apps can help to find deals in the moment -

bringing back some spontaneity.

LEVERAGE YOUR BRAND’S LEGACY

In trying times, nostalgia brands evoke comforting memories of a

carefree past where things seemed to taste better, last longer and offered simple

“authentic” pleasures.

HONOR THEIR NEW BEHAVIORS

Their new spending and shopping rituals are a point of pride – and

these behaviors will most likely lag behind recovery.

Show that you understand that they have learned a new skill and

that you are a partner in this experience.

(Be a Hero – Not a Hurdle)

Robert Miner, President212.924.1600 x 105rminer@sachsinsights.com