pivotal point consumer

Deep view and reach into 76% of American households

© Pointer Media Network. 2008. All Rights Reserved.

Discovering The Pivotal Point Consumer™A Milestone Study on American Shoppers

Who Drive CPG Brand Volume

© Pointer Media Network. 2008. All Rights Reserved. 2

About The Study

• Groundbreaking study about today’s surprisingly small consumer concentrations for CPG brands

• Unprecedented in its scope and granularity: Tracks purchases of 54 million American shoppers across 12 months and 1,364 brands

• Debuts the Pivotal Point Consumer™, the buyers who drive 80% of brand volume

• Analyzes established brands, new products, brand extensions and emerging preference categories, e.g. organic, green, heart healthy, etc.


Study Partners

Pointer Media Network is the world’s largest and most precise addressable media network.

• Tracks purchases of an estimated 76% of American households• Reaches 140 million shopper IDs• Delivers compelling ads and offers based on actual purchases• Powered by Catalina Marketing, global leader in behavioral

marketing

The CMO Council is the world’s leading peer-powered network of corporate marketing executives

• Drives thought leadership around issues critical to marketing executives

• 3,500 members globally control over $100 billion in annual marketing spend


Until now, lack of census level data hid truth about Pivotal Point Consumer

Reality of small consumer penetrations surprises even senior CPG executives

Requires new strategies from brand managers, advertisers & media planners

• Mandate for precision marketing

• Need to understand and engage Pivotal Point Consumer

Why This Study Is Important

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Findings At A Glance

• Age of fragmentation and targeted brands reducing size of consumer concentrations

• Only 2.5% of shoppers account for 80% of average CPG brand’s volume

• Only 25 of 1364 brands studied had a Pivotal Point Consumer™ base over 10% of shoppers

• New brands and brand extension have even smaller penetrations

• Pivotal Point Consumers have high per capita value for CPG brands

• But they do not fit neatly into demographic targets


The Age of Fragmentation: What Mass Market?

• Consumers empowered by unprecedented choice in product and media selection

• CPG manufacturers addressing more granular consumer preferences and needs with thousands of new brands and brand extensions

• More than 25,000 CPG products debuted in 2007; 10 times the number in 1980

• Average household receives over 100 television channels, while spending more time on the Internet

• Identifying and reaching your consumer more challenging then ever before


New Products Rely On Smaller Concentrations

Among nine of the products IRI identified as 2007 new product Pacesetters, only one had a Pivotal Point Consumer™ base of more than 3%¹

¹ Nine of the ten IRI Pacesetters were studied


Line Extensions vs. Master Brand Concentrations – Coca-Cola

Coca-Cola® label brands have a combined Pivotal Point Consumer™ base of 18.8%, but among sub-brands only Coca-Cola® Classic has a base of more than 10%


Tide® label brands have a combined Pivotal Point Consumer™ base of 12.2%, but sub-brands all have a base under 2.5%

Line Extensions vs. Master Brand Concentrations – Tide


Emerging Categories – Green Products

As a niche segment, Green product brands depend on a smaller Pivotal Point Consumer™ concentration


Emerging Categories – Heart Healthy

Heart Healthy orange juice brands underscore the smaller penetrations in emerging preference categories.


Valuing The Pivotal Point Consumer™

Pivotal Point Consumers frequently have a high per capita value to brands, highlighting the need to understand and reach them.


Pivotal Point Consumers Are Hard To Reach

Preliminary research by Pointer Media Network indicates that traditional demographic targeting misses as much as 76% of Pivotal Point Consumers


Conclusion – Precision and Personalization Are Key

• Today, all CPG brands are targeted

• The transition from mass to micro-markets is well underway

• Marketers must respond with greater precision and personalization in order to reach the right consumers

• Targeted brand messaging and addressable media will be critical reaching the right consumers

pivotal point consumer

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