ssg capturing the right healthy driven shopper 10-02-14-final

2014 © Santiago Solutions Group, Inc. SantiagoSolutionsGroup.com2014 © Santiago Solutions Group, Inc. ©2014 GfK US LLC. All Rights Reserved SantiagoSolutionsGroup.com

Capturing The Right

‘Healthy-Driven’ Shoppers For Your Brand

Dedicated Sessions AvailableDedicated sessions are available over through October 2014. Contact us through the request form in our website or at [email protected]

SSG Webinar Presentation

October 1st , 2014

GfK MRI2014 © Santiago Solutions Group, Inc. ©2014 GfK US LLC. All Rights Reserved SantiagoSolutionsGroup.com

Welcome toCapturing The Right ‘Healthy-Driven’ Shoppers For Your

Brand

Carlos Santiago has been guiding strategic growth rooted on predictive analytics for leading marketers in health & wellness for 13 years at SSG prior to that he headed Multicultural business units in CPG & Telecom

Juan S. Ovalle is an expert in predictive analytics, effectively generating insights from data fusion across syndicated, customer databases, custom qualitative, quantitative and Social research in CPG, Telecom, and Health.

Presenters

We guide clients growth strategies using advanced research, projectable opportunity sizings, innovative modeling and predictive analytics.

Yet, integrating and distilling rigorous insights is just the base to enhance your marketing effectiveness and reduce ‘gut’ risks.

Leveraging client-side experience and consulting, we arm you with intelligence, drivers to purchase, and strategic pathways aligned with the highest ROI options for integrated business-wide successes.

Santiago Solutions Group


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Capturing The Right ‘Healthy-Driven’ Shoppers For Your Brand

Agenda

Healthy Living Movement

Individuals’ Wellness Outlooks & Behaviors Reflected in Scores

Wellness Personas Across Healthy-Living Behaviors & Purchase Incidences

The TM challenge: Segments Disagree on ‘Healthy’ Brands

Brand/Segment Planning through Wellness Lens: Opportunity, Target, Relevant Messaging, Channel, P2P, Trade Area & 1:1 Targeting, Advocacy

Conclusion

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2014 © Santiago Solutions Group, Inc. ©2014 GfK US LLC. All Rights Reserved SantiagoSolutionsGroup.com

The Healthy Living Movement

Shoppers are progressively • Making better food choices• Becoming more informed about

wellness drivers • Demanding more natural,

recognizable ingredients • Avoiding trans fat• Seeking to squeeze more activity

in their lives• Purchasing healthier, greener

products for their families• Taking better care of the well-

being of others and the planet

4

SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc.


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Announced Wellness as a strategic priority and named the U.S. President as the new Chief Wellness Officer …will work proactively to limit product calories, and improve labeling.

Best-In-Class Marketers Are Stepping Up & Reaping Rewards of Wellness Movement

Set to increase sales from “Good for You” portfolio to $30B annual sales by 2020 coming from $10B in 2010

Expanding its healthy-eating commitment by offering fruit and vegetables options as part of its meal deals and marketing healthier alternatives

Asking partners to reformulate thousands of packaged food items by 2015 to lower sodium and added sugars

Gable, Lisa. "Of Waistlines And Bottom Lines." Dairy Foods 115.4 (2014): 90. Vizard, S. (2013). McDonald's vows to ramp up marketing of healthy options. Marketing Week (Online Edition), 5."Walmart Aims To Make Healthy Food More Accessible." Mmr 29.1 (2012): 29; Agnese, J. Industry Surveys: Foods & Nonalcoholic Beverages. S&P Capital IQ, McGraw Hill Financial.Brown, Abram. "All Hail The King: Burger King Quarterly Profit Jumps 60%." Forbes.Com (2012): 5.

6GfK MRI


What Inspired Us? Wellness Is A Fact of Life That Brands

Can Tap Into• SSG modeled hundreds of healthy to unhealthy attitudes and behaviors that shape

lifestyle choices leading to the 4 largest preventable chronic diseases. • The model shows a strong link with individuals’ incidence of categories and selection

of brands according to their wellness attitudes & behaviors.


HBPObesity

Diabetes IIHigh Cholesterol

Life

styl

e Ch

oice

s Atti

tude

s &

Beha

vior

s

EAT HEALTHY SLEEP WELL

EXERCISE DRINK WATER

SMOKING SEDENTARY

HIGH SODIUMBAD

CHO

ICES

GOO

D CH

OIC

ES

HealthierLifestyle

UnhealthierLifestyle

BAD FAT

Brand ChoicesProductsRetailers

RestaurantsServices


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Agenda






Conclusion

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Individuals Range Across A Spectrum According To Their Wellness Mindset &

Behaviors In Relation to the US Average

SSG Wellness Spectrum assigns each individual with a Wellness Score. This ‘FICO-like’ score is individually based on specific wellness attitudes & behaviors.

The individual Wellness Spectrum scores can be aggregated and averaged by brand, class of trade, channel, category, generational level, ethnicity, race, etc.

The Wellness Scores aids marketers to understand their buyers through wellness patterns, barriers, and engagement drivers to focus growth strategies on the appropriate level of wellness receptivity.

0 50 100 150 200

SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc.©2014 GfK US LLC. All Rights Reserved

Least

Wellness Outlook

GreatestWellness OutlookAverage

Wellness Outlook

GfK MRI


Brands, per their Buyers’ wellness scores, also Reflect a Spectrum of Wellness

9Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase Base: Breakfast CPG Buyers 18+

Wel

lnes

s Sc

ore

of B

rand

Buy

ers Breakfast Brands Ranking

Each Circle represents a Breakfast Brand

Index of U.S. Average Adult

Brands with Healthiest Outlook

Buyers

Brands with Least Healthiest Outlook

Buyers



Healthier-Outlook Consumers Choose Different Retailers/QSR Depending On

EthnicityHISPANICWHITE NH

10SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc.Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase Base: Breakfast Buyers 18+

Retailers

QSRTotal Market African American

100 100

100 100


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Brand Growth Rate Rises As Wellness Score Increases For every 10 points increase in Wellness Score, Buyer Growth Accelerates 1% points

annuallyPositive Relationship* Between Total Market (TM) Breakfast Brands Growth & SSG Wellness Score™

70 80 90 100 110 120 130 140

-25%

0%

25%

50%

Hispanics: Wellness vs. GrowthIn Breakfast Category

70 80 90 100 110 120 130 140

-25%

0%

25%

50%

*TM: Wellness vs. GrowthIn Breakfast Category

*Statistically significant at 90% confidence levelSource: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase Base: Breakfast CPG Buyers 18+/ Hispanic 18+

• Brands regarded as ‘healthier’ among Hispanics, tend to grow faster than those among Total Market. • 16% of breakfast CPG breakfast brands with wellness score above 110 have positive

growth, yet among TM only 7% of breakfast CPG breakfast brands with wellness score above 110 have positive growth.

Wellness Score of Brand Buyers Wellness Score of Brand Buyers

Buye

r Ba

se G

row

th R

ate

Buye

r Ba

se G

row

th R

ate


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Agenda






Conclusion

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Will not compromise taste for wellness sakesCost-conscious individuals who do not care to cookWon’t find these individuals at a gym May catch them playing some soccer with friends Hunters in games, actions and mindsets

Savvy-Indulgents

46% of U.S. Adults

SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc. 13

6 SSG Wellness Personas™ displayed as 3 Personas for simplicity and display purposes in this presentation

GfK MRI


Busy Strivers

35% of U.S. Adults Make a great effort to balance their busy lives, yet are more driven by convenience rather than healthTry to sneak in a Pilates work out to shed some excess pounds Like semi-prepared foods that require little additional work SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc. 14


GfK MRI


Fit & Holistic19% of U.S. Adults Understand and

incorporate healthy lifestyle choices steadilyLive by the motto: “You are what you eat and wear” Shop with the planet in mindPurchasers organic food productsListen to the doctor

SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc. 15


GfK MRI


46

108

208Always Check Nutritional

Content Before I Buy

9

125

272Eat a healthy breakfast

every day

73109

149

Happy with My Weight

56

112

183

Look for New Ways to Live a Healthier Lifestyle

Wellness Minded Consumers Over-index in Healthy Lifestyle, Attitudes

& Decisions

16

.

Source: SSG Wellness SpectrumTM Powered by GfK-MRI 2012 Double Base Survey of the American Consumer. Base: Total 18+ Health Attitudes: Agree Strongly; Buying Styles: Agree Mostly.


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GfK MRI


56

102

200Yoga

75113

137

Regular Dr. Visits

82105

133

Walking

84106

128

Cycling

. .

..

Wellness Minded Consumers Over-index in Healthy Behaviors

Source: SSG Wellness SpectrumTM Powered by GfK-MRI 2012 double base Survey of the American Consumer. Base: Total 18+ Sports- How Often Engaged In: Participated in Last 12 months; Health Attitudes : Agree Strongly.


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GfK MRI


58

112

179High Fiber

62

116

162Low Fat

86107 120

Low Calorie Candy

58

113

176Low Sodium

.

.

Wellness Minded Consumers Over-index in Healthier Food Choices

Source: SSG Wellness SpectrumTM Powered by GfK-MRI 2012 double base Survey of the American Consumer. Base: Total 18+ Diet control/eating habits: Buy food labeled as:


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11594

76

Energy Drinks

89104

120

Green Products

80107

135Red Wine

108 10081

Microwavable Dinners

.

..

Categories Are Driven By Different Wellness Segments

Source: SSG Wellness SpectrumTM Powered by GfK-MRI 2012 double base Survey of the American Consumer. Base: Total 18+; Bought in Last 6 months:



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Agenda






Conclusion

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Clients keep asking “Please Help Me Applythe Proper TM Approach for Each Brand!”

A marketing approach which proactively integrates diverse segment considerations ...with rigorous purchase drivers

insights of all segments, through the entire strategic process and execution… with the goal of enhancing Brand

value and growth effectiveness.

This could lead to several approaches:• one fully integrated cross-cultural approach, • individual Hispanic, African American, Asian, or White

Non-Hispanic segment approaches • or in most cases, a combination of segmented and cross-

cultural…depending on growth opportunities, drivers, barriers and fit with a Brand’s experience, but always aligned under one overarching strategy.

Consensus Definition

Total Market Is Not A One Size Fits All Brands Strategy Nor a One Size

Fits All Consumers


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Brands with the Healthiest-Outlook Buyers

Top 30 Wellness BreakfastBrands across Total Market

Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase Base: Breakfast Buyers 18+GfK MRI2014 © Santiago Solutions Group, Inc. www.SantiagoSolutionsGroup.com



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Top Wellness Brands By Segment

Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase Base: Breakfast Buyers 18+GfK MRI2014 © Santiago Solutions Group, Inc. www.SantiagoSolutionsGroup.com

Hispanic

Brands in Common?

No brands in common among the top 2 healthiest brands of Hispanics, Millennials, African Americans, and White Non-Hispanics

breakfast shoppers.

Total Mkt Millennial

African Am

White

1

2



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Agenda






Conclusion

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Understanding How Share Of Stomach Relates To Buyers’ Wellness Scores Since

Wellness Outlook is Directly Correlated With Growth

25Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase Base: Breakfast CPG Buyers 18+. Buyers Growth 2011-2013

Buye

rs G

rowt

h

Wellness Score


GfK MRI


Wellness Segments Most Appropriate For Growth Depends on Multiple Factors i.e.:

Lifecycle, Positioning, Strength of Differentiated Benefits, Innovativeness…

Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase Base: Breakfast Buyers 18+ 26

MILL Fit & Holistic

MILL Busy Strive

MILL S&I

A/O Fit & Holistic

A/O Busy Strive

A/O S&I

BNH Fit & Holistic

BNH Busy Strive

BNH S&I

H Fit & Holistic

H Busy Strive

H S&I

WNH Fit & Holistic

WNH Busy Strive

WNH S&I

TM

1%

18%

-17%

-5%

2%

-2%

-7%

-4%

-10%

0%

16%

8%

-35%

-2%

-62%

-7%

Dannon Activia: Share of Volumized Growth 2012-2013

MILL Fit & Holistic

MILL Busy Strive

MILL S&I

A/O Fit & Holistic

A/O Busy Strive

A/O S&IBNH Fit & Holistic

BNH Busy Strive

BNH S&I

H Fit & Holistic

H Busy Strive

H S&I

WNH Fit & Holistic

WNH Busy StriveWNH S&I

TM

24%

20%

18%

0%

2%

5%10%

16%

-8%

-6%

34%

-6%

39%

-12%25%

9%

Oatmeal Crisp w/raisins: Share of Volumized Growth 2012-2013


TM: Total Market, WNH: White non-Hispanic, H: Hispanic, BNH: Black non-Hispanic, A/O: Asian/Other, MILL: Millennials, S&I: Savvy & Indulgents

27GfK MRI


Savvy Indulgents 23% Busy Strivers 40%Fit & Holistic 37%

22%

20%

13%7%8%

5%7%

7%5%

2%2%2%

19%

30%26%

12%

8%

4% 2%

I.E.: Activia New Growth is coming Mostly from Busy Strivers

26%

23%16%

7%

9%

5%3%

4%2%2%2% 1%

31%

61%

8%

Share of Base

Share of Growth Segments

Source: SSG Wellness SpectrumTM Powered by GfK-MRI 2012 Double Base Survey of the American Consumer. Base: Total 18+; Household Products- Used in Last 6 months

Mill make up 100% of Dannon growth segments and 58% of Oatmeal Crisp w/ Raisins

WNH 65%Hisp 21%

AA 9%A/O 5%

WNH 55%Hisp 20%

AA 19%A/O 6%

Oatmeal Crisp Growth Coming from Busy Strivers & Fit & Holistic



WNH 48%Hisp 26%

AA 20%A/O 6%


Savvy Indulgents 31% Busy Strivers 69%

Hisp 92%A/O 8%

Hispanic Specific TM Approach Recommended

Cross-Cultural Integrated TM Approach Recommended


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‘New Growth’ Personas vs. ‘Base Personas’ Will Often Suggest Messaging

Refinements

Current Base

New Growth• Driven by convenience• Enjoy unwinding activities like yoga & cycling• Busy consumers• Mostly Hispanic consumers: evenly split b/w English & Spanish dominance• Hyper-connected & 100% Millennial

• Health driven consumer• Environmentally considerate• Majority of Hispanic consumers exhibit Spanish dominance• 6 in 10 are Millennial

• Physically Fit and Confident• Loves Organic and Green Products• Loves Adventure

• Not secure in physical appearance• Busy, but seek balance• Semi-prepared foods often preferred



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Activia Growth Segments More Digitally-Inclined Throughout P2P vs Oatmeal Crisp Not

Nearly As Digital Until Store and Advocacy

Awareness & Consideration Trial & Action Loyalty & Advocacy

Brand Funnel

Path

to P

urch

ase

Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase Base: Breakfast Buyers 18+

SM Deals 157 112

Nav/Map 155 63

Shop/Retail App 16148

QR/Tag 147 101Mobile Coupon 161

101

SM VIP 157 112

SM Fave Prods 168130

Activia OCRSearch 152 67Text Ad 157121SM Res Prod143 99

Cell Ad 149101App 167 68Res Prod 152 79

Activia OCR Activia OCR



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Wellness Scores Allow For Geographic To Individual-level Classification For 1-

to-1 Personalization Fit & Holistic

Busy Strivers

Savvy Indulgents

Source: SSG Wellness SpectrumTM Powered by GfK-MRI 2012 Market to Market. Survey of the American Consumer

Wellness Scores can be identified for any group of Adults in the U.S. to enrich internal client databases or targetable email/mobile prospect lists through BigData vendors like Axciom, etc.


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GfK MRI


1-to-1 Marketing Promos Can Be Properly Aligned with Best Fit Retailers Via Mobile &

In-Store Solutions Lo-Mid Tier SuperMkt Health/Natural Stores

HouseholderFit & HolisticBusy StriversSavvy Indulgents

*CAGR = Compound Annual Growth Rate Source: SSG Longitudinal Analysis of Scarborough USA+ 2011 & 2013 R1


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GfK MRI


Healthier-Outlook Segments Have Exponential Influencer Value

Healthier segments are more likely to beEarly Adopters & TrendsettersHighly Influential among peers

Series1

-16

8

22

Savvy Indulgents

Busy Strivers

Fit & Holistic

Series1

-15

5

26

Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase Base: Total 18+

Trendsetters Influentials



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Agenda






Conclusion

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Drivers ‘Healthy’ Is Increasing As A Consumer Trigger

• Consistent with industry facts, since 2011, consumers are migrating out of Savvy Indulgents, into Busy Strivers or Fit & Holistic segments representing many opportunities to make healthy "tweaks" to growth formulas

• Brands are responding to the powerful wellness forces changing how people are increasingly shopping for healthier choices

• At an individual level, higher wellness attitudinal & behavioral scores are associated with the purchase of healthier sub-categories and brands experiencing higher growth

SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc.©2014 GfK US LLC. All Rights Reserved

GfK MRI


Wellness Attitudes & Behaviors Can Be A Valuable Growth Tool

Easing key planning decisions through insights-data-rich tool

Which wellness segments to pursue in TMAdiscover customers whose behavior have changed or needs are not being metstrengthen brand identities and develop messages that speak to different healthy outlook consumers

What kind of products to offerrefine a product’s formulation or fine-tune the positioning or develop a new product

How to go-to market effectively predict what products will consumers of different health outlooks be more persuaded to consider & buyinform channel selection to optimize the path to purchase for selected targetsProperly designing and executing 1-to-1 wellness-prone promos and experiences in a specific trade areas that respond to specific wellness attitudes & interests

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TIME To Respond To YOURQUESTIONS


GfK MRI


Santiago Solutions GroupWe guide clients using advanced research, projectable opportunity sizings, innovative modeling and predictive analytics. Yet, integrating and distilling rigorous data is just the base to reduce your financial risk.

GfK MRI Survey of the American Consumer

GfK MRI data are culled from its Survey of the American Consumer™, the most comprehensive single-source database in the U.S. contains unparalleled insights into attitudes and lifestyles, along with consumption of approximately 6,000 products in 550 categories.

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SantiagoSolutionsGroup.comGfKMRI.com

@Santiago_Group @GfK_en@Carlos_SSG

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[email protected]@gfk.com

SSG: 818.736.5661GfK: 212.884.9217

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Learn More at http://santiagosolutionsgroup.com/total-

market-healthy-movement/Additional insights on:

Tapping The Healthy Movement in a Total Market Insights Approach 2014 Wellness Brand AwardsSSG Wellness Spectrum™Access other SSG Full Reports Subscribe to SSG’s Growth & Insights Newsletter

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