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Big Trends of 2011Forget everything you think you

know

Plus, trends in

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TodayI. Big shifts of 2011

i. Demographicsii. Economic perceptionsiii. Outlookiv. Values

(break)

II. Interesting stuffI. WorkII. LifeIII. PlayIV. Consume

III. Teen trends

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is evolving…America

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The classic nuclear family (married couple with children) now

accounts for only 22% of households

White children will in the minority by the year 2019

College-educated Americans are now more likely to get married and stay married than Americans with only a

high school diploma

For the first time, rural Americans are just as

likely to be divorced as city dwellers

Source: Mintel Inspire 2011

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Marriage on the wane

• Extended period of adolescence

• Economic barriers• Glamorized single

lifestyle

Trend 1: Delayed marriage- Co-habitation has become the norm at more than 50%- Median age at first marriage for men rose by six years since prime Baby Boomer yearsTrend 2: Never marry- Especially among more downscale and less educated- Over ¾ of Americans over 18 were married in 1960, but only 52% todayKey Drivers

Source: Nielsen

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The minority reportFrom 2000 to 2010

minorities were responsible for 92% of

the US population growth

1/3 of US is non-white

60% of growth of immigrant population was in areas where immigrants made up less than 5% of the population in 2000Source: Mintel 2011

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What’s all the chatter about Hispanics?

By 2015, 1 in 5 Americans will be Hispanic

1 in 3 of new suburbanites is

Hispanic

U.S. Hispanic buying power is over $1

trillion

Source: Mintel 2011

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Economy and the psyche

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Things are looking grim…

Although the last U.S. recession

officially ended in 2009, 80% of Americans believe the economy is

currently in a recession

42% say the U.S. economy is worse than it was last year

61% expecting economic conditions to be

similar to now, or worse

Source: Gallup Poll | September 2011

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Belief in the “American dream” on the decline

1986 1993 2000 2007 2010

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22

1318

39

5550

45

55

40

32

20

34

24

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How Alive Is the American Dream?

Source: Roper Reports US November 2010 TeleCell

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1986 1993 2000 2004 2010

45

64

4753

65

32

1922 22 20

23

13

2721

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Compared to a Generation Ago, Dream Is…

Source: Roper Reports US Fall Core 2010, Q68 (online); RRUS 04-1, 01-1, and 94-1 in-person surveys; 1986 Roper custom study for The Wall Street Journal

Perception = Reality

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1977 1987 1992 20104

59 13

18 21 2331

60 5751

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12 16 14 102 2 1 1

Lower Lower Middle Middle Upper MiddleUpper

All things considered, in which of these classes would you place yourself?

Down 16 pts since 1977Up 13 pts since 1977

72% say “Rich” = $250K+Perception = Reality

Source: Roper Reports US

13© Copyright GfK Custom Research North America 2011. Proprietary and Confidential

1994: 28 points

2010: 33 points

Source: Roper Reports US Fall Core 2010

Biggest gaps today:Belonging to private club or country club

63% status symbol vs. 11% want = 52pt. gap, +6 from 1994

Living in an exclusive neighborhood 66% status symbol vs. 18% want = 48pt. gap, +13 from 1994

Fastest growing gap since 1994:Owning an expensive car

From a 21-pt. gap between status symbol and aspiration to a 39pt. gap

Growing gap between wants vs. status symbols

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into lemonadeTurning lemons

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Despite economic woes, Americans still happy

• Eight in 10 Americans say they are generally happy with their life

• Two-thirds of US. adults believe that happiness is due to relationships with friends and family Source: The Harris Poll Annual Happiness Index 2011

US Hap-pi-

ness Index

04080

Somewhat Happy

Very Happy

Americans are still hopeful about the future

• Although only 16% of Americans consider themselves well off, 50% think they will be in five to ten years

• More than 60% think their financial situation will get better next year

Source: Reuters; Hart Research Associates16

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Technology remains a pillar of optimism

54% of Americans feel the Internet

and technology have “significantly expanded the meaning of ‘community,’” +8 points from 2007…

61% believe the effect of technology on society provides

optimismHeavy tech users achieve better work-life balance (netbook/tablet owners +9 pts)

Source: Roper Reports US November 2010 TeleCell

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* “Technology Forwards” are those optimistic about the effect of technology on society

Source: Roper Reports US Spring Core 2010

Technology Forwards*are more optimistic about everything

• Higher household income

• Future of country (52% vs. 42%)

• Future of economy (48% vs.

39%)

• Country on “right track” (42% vs. 35%)

• “Good time to buy” (27% vs.

24%)

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Top things that Americans

would like to do or have1998 2010

Travel abroad frequently for pleasure #6 #1

Have a beautifully decorated home 3 2Own a vacation home 1 3

Have latest tech products 12 4

Fly first class 8 5Stay in luxury hotels 2 6

Own your own business 7 7Own an expensive car 4 8

Eat at expensive restaurants 5 9Send your children to private

schools 14 10Live in an exclusive neighborhood 13 11

Own expensive jewelry 9 12

Cell phone has replaced “driving where I want/when I want” as the last thing Americans will let go

Source: Roper Reports US 2010-Fall (online)

Living in a gadget nation

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Shifts in Values

A Recessionary Mindset

Source: Roper Reports US Spring Core 2011 and prior waves (online)

Self-reliance +10

Thrift +6

Working hard +3

Faith -3Tradition -3

Knowledge -3Learning -3

Helpfulness -4Enjoying life -4Having fun -7

Largest individual values changes – 2008-2011 (by rankings)

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In recession, Americans place high value in being “Self-directed”

• 22% Americans (vs. 13% global average) can be classified as “Self-Directeds”, independent-minded consumers who go their own way and prioritize the Values of Freedom, Self-Reliance, and Authenticity, according to Roper.

Source: Roper US Spring Core 2011

Americans’ Values Types % classified in ValueScope™

segment

• 75% of Self-Directeds say “control over my life” is part of their vision of the Good Life, +12 from total online

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Long Term Shifts –Emerging from DIY to DIO

Fully half of Influential Americans now feel connected to an online community, more than double the response of just two years ago,

In Just Two Years, Influentials’ Connection to Online Community Doubles

% of Influential Americans who feel “a strong connection” or “some connection” to group*

Source: Roper Reports US Fall Core 2010

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Sense of community rooted in online connections

Source: Roper Reports US TeleCell 2009

54% of Influential Americans® feel the Internet and technology have “significantly expanded the

meaning of ‘community,’” +8 points from 2007

37% of Influential Americans think that “people are more

connected with other people than they were 10 years ago,”

+5 points from 2007

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2011 Rank change from 2001

Protecting the family 1 0Stable personal relationships 2 +3Freedom 3 -1

Authenticity 4 0

Self-reliance 5 +1

Friendship 6 -3

Enjoying life 7 +3Learning 8 -1

Social tolerance 9 +5

Helpfulness 10 +4

Personal Values Change -Rank Order

Source: Roper Reports US Spring Core 2011 (online)

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Values shift towards human connections

26Source: Roper Reports US Spring Core 2011

(online)

Evian: Live Young

Top personal values of high income ($100K+) and low income (<$30K) consumers that are valued equally between groups

iPad: We’ll Always

Coke: Open Happiness

Values that transcend earnings

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"While Americans recognize that it is going to be harder and they see challenges facing their kids, there is still a feeling of optimism that it

really does matter if you work hard and if you have ambition…”

– Pew Economic Mobility Project