shades of green: a further understanding of the green …$50 0.0% 0.5% 1.0% 1.5% 2.0% green % of...
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CATALINA MARKETING CORPORATION Confidential © 2006 Reproduce By Permission Only
Shades of Green: Shades of Green: A Further Understanding of the Green A Further Understanding of the Green ConsumerConsumer
Presented June 16, 2008FMI Sustainability Summit
Beth JohnsonCatalina Marketing Services
CATALINA MARKETING CORPORATION Confidential © 2006 Reproduce By Permission Only 22Confidential Information Catalina Marketing Corporation © 2006
Catalina Marketing Services Catalina Marketing Services
Relevance• Savings• Rewards• Information
180+ manufacturer sponsors$3.7 billion delivered annually $240 million redeemed
23,500 retail outlets 14+ billion transactions a year158 million shopper IDs; 2 years historical data71% of Supermarket ACV; including Drug and Mass
Uniquely Positioned At The Only Place And Time Where Uniquely Positioned At The Only Place And Time Where Three Important Constituents Interact: Three Important Constituents Interact: The TransactionThe Transaction
CATALINA MARKETING CORPORATION Confidential © 2006 Reproduce By Permission Only 33Confidential Information Catalina Marketing Corporation © 2006
What we had originally discoveredabout Green Consumers
Key demographics– 3+ person HH– Income of $75,000 or higher– 35-64 Age
~ 9% of food expenditures spent on green/organic products
Basket size nearly 3x larger than average order amount
Organic foods a likely pre-cursor to purchase of green products
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Leading Green BrandsLeading Green Brands15 Categories 15 Categories –– 2,670 UPCs2,670 UPCs
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Weekly $ volume per 1000 shoppers has nearly
tripled in past 3 years
Weekly $ volume per 1000 shoppers has nearly
tripled in past 3 years
Green Product Sales Growing at Fast PaceGreen Product Sales Growing at Fast Pace
Based on 25MM consistent Catalina Grocery Network shoppers from May 8, 2005 to March 16, 2008
$2.31
$6.81
CATALINA MARKETING CORPORATION Confidential © 2006 Reproduce By Permission Only 66Confidential Information Catalina Marketing Corporation © 2006
Growth Due to Increase in Distribution Growth Due to Increase in Distribution andandGreen ShoppersGreen Shoppers
% Stores Selling Green Products each Week
62%
93%93%
15.5%15.5%
Based on 25MM consistent Catalina Grocery Network shoppers from May 8, 2005 to March 16, 2008
Cumulative % Shoppers Trying Green Products Over 3 Years
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WA
OR
CA
NV
ID
MT
WY
UTCO
AZNM
TX LA
MS ALGA
FL
SC
NC
ND
SD
NE
KS
MN
IA
WI
IL IN
MI
OH
KY
TN
WVVA
PA
NY
VTNH
ME
MA
NJ
CT
MD
NorthwestIndex = 170.2
9.7%
NorthwestIndex = 170.2
9.7%
PacificIndex = 86.0
4.9%
PacificIndex = 86.0
4.9%
MountainIndex = 131.6
7.5%
MountainIndex = 131.6
7.5%
SouthwestIndex = 87.7
5.0%
SouthwestIndex = 87.7
5.0%
CentralIndex = 63.2
3.6%
CentralIndex = 63.2
3.6%
North CentralIndex = 73.7
4.2%
North CentralIndex = 73.7
4.2%
SoutheastIndex = 42.1
2.4%
SoutheastIndex = 42.1
2.4%
CarolinasIndex = 70.2
4.0%
CarolinasIndex = 70.2
4.0%
NortheastIndex = 117.5
6.7%
NortheastIndex = 117.5
6.7%
Mid-AtlanticIndex = 124.6
7.1%
Mid-AtlanticIndex = 124.6
7.1%
Customer Penetration of Consistent Customer Penetration of Consistent Shoppers (2+ purchases) is Less than 6%Shoppers (2+ purchases) is Less than 6%
Northwest, Mountain, Mid-Atlantic and Northeast are High Green Regions
AR
MO
OK
Source: Catalina CheckOut Direct, 52 Weeks Ending 5/18/08
Growth of Customer Penetration
4.7%
5.2%
5.7%
July January May
Growth of Customer Penetration
4.7%
5.2%
5.7%
July January May
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Green Consumers Also Heavy Buyers of OrganicsGreen Consumers Also Heavy Buyers of Organics
1. Horizon Organic Cheese
2. Cascadian Farm Frozen Vegetables
3. Horizon Organic Butter
4. Applegate Farms Refrigerated Meats
5. Newman's Own Organic Cookies
6. Muir Glen Canned Tomatoes
7. Cascadian Farm Cereal
8. Organic Valley Milk
9. Annie’s Macaroni & Cheese Mix
10.Horizon Organic Milk
11.O-Cello Sponges
12.Amys Soups
13.Horizon Organic Yogurt
14.Vans Frozen Waffles
Source: Catalina CheckOut Direct, 52 Weeks Ending 5/20/07
TOP SELLING ITEMS IN BASKET WITH GREEN PRODUCT PURCHASE
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Not All Organic Consumers Buy Green ProductsNot All Organic Consumers Buy Green Products
Organic Food Only81.2%
Green Products Only6.1%
Buy Both Green & Organic12.7%
Over 38 Million Unique Shopper IDs Had Purchased at Least One Green or Organic Item
Over 38 Million Unique Shopper IDs Had Purchased at Least One Green or Organic Item
Source: Catalina CheckOut Direct, 52 Weeks Ending 5/18/08
Over 80% of Organic Consumers Have Not Purchased a Green Brand During the Past 52 Weeks
Over 80% of Organic Consumers Have Not Purchased a Green Brand During the Past 52 Weeks
CATALINA MARKETING CORPORATION Confidential © 2006 Reproduce By Permission Only 1010Confidential Information Catalina Marketing Corporation © 2006
$0
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0.0% 0.5% 1.0% 1.5% 2.0%Green % of Total Grocery Spending
Gre
en S
pend
ing
Determining Shades of GreenDetermining Shades of Green
GreenGreenon aon a
BudgetBudget
GreenDabblers
Green Green CleanersCleaners
Green % of Total Grocery SpendingGreen % of Total Grocery Spending
Shop
per’s
Gre
en S
pend
ing
Shop
per’s
Gre
en S
pend
ing
HIGH
HIGHLOW
•Green Cleaners•Green Cleaners
Green and
Natural
Based on 53MM Consistent Catalina Grocery Network Shoppers and who bought Green at least twice in the year ending 3/16/08
CATALINA MARKETING CORPORATION Confidential © 2006 Reproduce By Permission Only 1111Confidential Information Catalina Marketing Corporation © 2006
Home and Health Segments Represent 75% of Home and Health Segments Represent 75% of Green $ VolumeGreen $ Volume
Green on a BudgetThese light green buyers tend to purchase a lot of private label items.
Greener DabblersThese are heavy shoppers who occasionally dabble in green categories.
Green and NaturalThese heavy green buyers also tend to buy a lot of natural and organic food products
Green CleanersBased on the products they buy, this group seems the most driven by sustainability concerns.
CategoriesSoapsOrganic cheese Wash/Rise cleaners
BrandsOrganic ValleyNatures PathLate July OrganicBurt's Bees soaps
CategoriesCleaning suppliesStandard grocery
BrandsTypical grocery
CategoriesBeauty aids SoapsLaundry detergentWash/Rinse cleanersBrandsDr. BronnersBi-O-KleenAlba OrganicsSeventh GenerationEcosSun and Earth
CategoriesJuiceBaking needsScouring cleanersFresh vegetablesFresh fruitBrandsPrivate Label
21% Green IDs45% Green $
21% Green IDs45% Green $
22% Green IDs30% Green $
22% Green IDs30% Green $
32% Green IDs16% Green $
32% Green IDs16% Green $
25% Green IDs9% Green $
25% Green IDs9% Green $
Based on 53MM Consistent Catalina Grocery Network Shoppers and who bought Green at least twice in the year ending 3/16/08
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Opportunity to Educate ConsumersOpportunity to Educate Consumers
Target your brand message to the right audience who cares.
Increase brand loyalty by sharing a common cause with your consumer.
Reach high potential of future Green consumers to share your message.
“Smart companies tell the stories of their environmental goals, successes, and lessons learned to nearly anyone who will listen.”
Green to Gold by Daniel C. Esty and Andrew S. Winston
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Retailer CommunicationsRetailer Communications
Print samples for example only
Educating Your Consumers and the Community on How They Can HelpEducating Your Consumers and the Educating Your Consumers and the Community on How They Can HelpCommunity on How They Can Help
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Brand CommunicationsBrand Communications
Link the message to the consumer’s passion point
Link the message to the consumerLink the message to the consumer’’s s passion pointpassion point
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Buy Baby Products
5 Million HH Ids
Buy Natural/Organic Products38 Million HH IDs
3 Million
Over 3 Million have a New Baby in the Over 3 Million have a New Baby in the Household Household ……
Notes:Natural/Organic = any HH IDs that purchased a Natural/Organic food product (from a select group of designated UPCs) in P52 WeeksBaby HHs = any HH IDs that purchased a Stage 1 Baby Formula/Diapers in P52 Weeks
SAMPLE PRINT
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16 Million have a Dog and/or Cat16 Million have a Dog and/or Cat……
Buy Dog/Cat Food
35 Million HH IDs
Buy Natural/Organic Products38 Million HH IDs
16 Million
Notes:Natural/Organic = any HH IDs that purchased a Natural/Organic food product (from a select group of designated UPCs) in P52 WeeksDog HH = any HH IDs that purchased dog food in P52 Weeks
SAMPLE PRINT
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Call to ActionCall to Action
If you had the ability to have a one-to-one conversation with
your shoppers …
What would you want them to What would you want them to know about your sustainability know about your sustainability
efforts or brand?efforts or brand?
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Thank you!