copyright © 2004 information resources, inc. confidential and proprietary. changes in attitude: the...
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Copyright © 2004 Information Resources, Inc. Confidential and proprietary.
Changes in Attitude:
The Why Behind the Buy
2Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Survey Responses + Purchasing Data
for the same household
AttitudeLink
AttitudeLink Brings Everything Together!
Product and Marketing Activity
Individual Attitudes & Preferences
Household Purchasing
3Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Limitations of Traditional Consumer Surveys Consumers' ability to recall past purchases is notoriously
inaccurate No way to track respondents' behavior over time No accurate way to capture product quantity used, price
paid, and related information for profitability assessments
Individual Attitudes and PreferencesThe Why Behind the Buy
Individual Attitudes & Preferences
4Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
AttitudeLink acts as a magic phonebook
Survey IRI panelists via:
Combine survey responses with same-household purchasing data and other facts about each household
Bar-coded survey by mail - via IRI's monthly panelist newsletter
Phone
Paper-and-pen survey by mail
Internet
The panelist newsletter includes ScanKey usage tips, reminders about the points rewards system, and other information of interest to panelists.
The panelist newsletter includes ScanKey usage tips, reminders about the points rewards system, and other information of interest to panelists.
The panelist newsletter includes ScanKey usage tips, reminders about the points rewards system, and other information of interest to panelists.
5Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Attitude Link provides insights across the organization…
Price
PriceCONSUMER
MANAGEMENTPRODUCT
DEVELOPMENTSUPPLY CHAIN MANAGEMENT
CORPORATE PLANNING
Company mission
Gain competitive advantage
Forecasting
BUSINESSSTRATEGY
Category Understanding
Brand building/ differentiation
Pricing strategy/Compete with
PL
MARKETINGConsumer
Insights
Product evaluation/
reformulation
Channel management
decisions
6Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Price
PriceCONSUMER
MANAGEMENTPRODUCT
DEVELOPMENTSUPPLY CHAIN MANAGEMENT
CORPORATE PLANNING
Company mission
Gain competitive advantage
Forecasting
BUSINESSSTRATEGY
Category Understanding
Brand building/ differentiation
Pricing strategy/Compete with
PL
MARKETINGConsumer
Insights
Product evaluation/
reformulation
Channel management
decisions
Attitude Link provides insights across the organization…
7Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Case Study 1: Gain competitive advantage“The food’s gone but the container lives on…”
Situation analysis: Second Life’s competitor introduced new packaging solution for an existing product Research and evaluate competitive performance
Business issues: What drives the product success? How can Second Life leverage the learning and develop a better product?
IRI solution: AttitudeLink survey targeted triers and repeat buyers of the competitive brand
8Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Triers “only buy it when on sale”
Repeat buyers liked the new packaging : “it helps to preserve great taste”, “retains freshness”, “I can re-use the container”
Product taste and quality received high ratings Price did not meet consumer expectations
More of an issue for triers
Gain competitive advantage
Findings
80
70
30
50
70
60
20
70
0
20
40
60
80
100
Great taste Premium quality Good value for themoney
Easy to store inrefrigerator
% r
es
po
nd
en
ts
Brand Performance by Repeaters (Top-2 box)
Brand Performance by Triers (Top-2 box)
Category Importance Ratings (Top-2 box)
9Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Results & Recommendations
Container re-sealabilty and its uses after the food is gone contribute
most to customer satisfaction
Second Life should invest in new re-sealable package
Co-promote with recognized packaging company
Gain competitive advantage
Second Life introduced new packaging in 2004
Annual sales up 34%
Category sales up 4%
Package is the new standard in the category
10Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Price
Price
Attitude Link provides insights across the organization…
CONSUMER MANAGEMENT
PRODUCT DEVELOPMENT
SUPPLY CHAIN MANAGEMENT
CORPORATE PLANNING
Company mission
Gain competitive advantage
Forecasting
BUSINESSSTRATEGY
Category Understanding
Brand building/ differentiation
Pricing strategy/Compete with
PL
MARKETINGConsumer
Insights
Product evaluation/
reformulation
Channel management
decisions
11Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Case Study 2: Brand Differentiation “Ammunition in the “Healthy Heart” Competition…”
Situation analysis: Category with two identical products HeartBeat owns 1/3 of market share while its leading competitor, Good
Faux You, owns close to 2/3
Business issues: Why are consumers choosing Good Faux You over Heartbeat? What can Heartbeat do to increase market share? Are there any opportunities missed by both companies?
IRI solution: AttitudeLink survey compared category usage and attitudes among both HeartBeat and Good Faux You buyers
12Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Category usage reasons Eat healthier/dieting Recommendation by doctor or family Coupon/promotion to try
Product usage On its own (both brands) As an Ingredient in recipes Food additive
Brand differentiation – Good Faux You (2/3 market share) Health benefits are listed on competitive product’s packaging Competitor’s website points out additional options for use
Brand Differentiation
Findings
>Good Faux You
13Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Recommendations
Brand Differentiation
Educate consumers on new ideas for Heartbeat usage through
advertising, website and other marketing activities. Focus on driving
multiple uses of the product.
Deliver the message that Heartbeat is a healthy product overall, not
just that it is low in fat and cholesterol.
Continue focus of convenience of the product as this is also a hot
button for time-crunched consumers, especially females 35+.
14Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Price
PriceCONSUMER
MANAGEMENTPRODUCT
DEVELOPMENTSUPPLY CHAIN MANAGEMENT
CORPORATE PLANNING
Company mission
Gain competitive advantage
Forecasting
BUSINESSSTRATEGY
Category Understanding
Brand building/ differentiation
Pricing strategy/
Compete with PL
MARKETINGConsumer
Insights
Product evaluation/
reformulation
Channel management
decisions
Attitude Link provides insights across the organization…
15Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Case Study #3: Compete with Private Label “What’s in a name if the results are the same…”
Situation analysis: Asprifree sales decline while private label pain relievers continue to grow
Business issues: How to attract new buyers to Asprifree? What are the Asprifree strengths and weaknesses compared to PL? Is price the only PL pain reliever advantage?
IRI solution: AttitudeLink surveyed brand loyal pain reliever users and brand
switchers
PLBrand
16Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Value of doctor recommendation as a purchase decision influencer Perception of pain reliever effectiveness was similar Ailment and severity of symptoms are not big factors in pain reliever
selection Previous experience with product Importance of packaging
Compete with private label…
Findings
62 65
15
49
85
65 61
7570
15
4050
60
8085
0
20
40
60
80
100
Provides fastrelief
Provides long-lasting relief
Is a good valuefor the money
Label clearlylists activeingredient
Is a well-knownbrand
% r
es
po
nd
en
ts
Aspifree performancePL performancePain reliever importance
17Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Keep a focus on professional detailing
Leverage manufacturer’s umbrella brand equity: reliable, safe, effective
Narrow the price gap between name brand and private label
Recommendations
Compete with private label…
In the most recent quarter:
Price gap narrowed by 32 cents (16%)
Sales trends reversed
18Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Price
Price
Attitude Link provides insights across the organization…
CONSUMER MANAGEMENT
PRODUCT DEVELOPMENT
SUPPLY CHAIN MANAGEMENT
CORPORATE PLANNING
Company mission
Gain competitive advantage
Forecasting
BUSINESSSTRATEGY
Category Understanding
Brand building/ differentiation
Pricing strategy/Compete with
PL
MARKETINGConsumer
Insights
Product evaluation/
reformulation
Channel management
decisions
19Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Case Study #4: Consumer insights “Keeping the sparkle in their eye…”
Situation analysis: One of the Super Kleen Co. best selling cleaning products declined over
past year Increased number of consumers left the category
Business issues: Why is SparKleen losing sales? Did the product usage change? Did consumer expectations for cleaning products change? What are SparKleen strengths and weaknesses?
IRI solution: AttitudeLink survey results compared usage and attitudes among buyers
of three major brands in the cleaning product category. Also looked at Lost and Retained buyers.
20Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Reduced TV advertising and other marketing efforts affected sales Purchase cycle extended Multi-functional cleaner functionality not utilized
Findings
Consumer understanding
Is a brand Itrust
Can be used allover the house
Is a good valuefor the price
Doesn't workas well asexpected
Works asshown in
advertising
SparKleen Bleach Scrubly-bubbly
SparKleen strengths:
Can be used all over the house
SparKleen weaknesses:
Is not as trusted as competitive brands
Is not a good value for the money
Does not work as expected/as shown in advertising
21Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Re-launch a marketing campaign that reinforces the multiple uses for the product
Be certain to state in new marketing that SparKleen can be used in addition to bleach and other cleaners rather than as a substitute
Make sure consumers have realistic expectations of the product!
Results & Recommendations
Consumer understanding
2004 volume sales up 9%
2004 annual sales increased by $3MM
22Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
PriceCONSUMER
MANAGEMENTPRODUCT
DEVELOPMENTSUPPLY CHAIN MANAGEMENT
CORPORATE PLANNING
Company mission
Gain competitive advantage
Forecasting
BUSINESSSTRATEGY
Category Understanding
Brand building/ differentiation
Pricing strategy/Compete with
PL
MARKETINGConsumer
Insights
Product evaluation/
reformulation
Channel management
decisions
Attitude Link provides insights across the organization…
23Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Case Study 5: Channel management decisions
Situation analysis: GotALot retailer wants to know how to encourage shoppers to fill their
prescriptions there, rather than at traditional pharmacies or at competitors
Business issues: How does GotALot perform against what is important to the consumer? How to prevent shoppers from buying Rx and OTC from competitive
retailers?
IRI solution: AttitudeLink survey to GotALot shoppers who filled their prescriptions
there and/or traditional pharmacies or other retailers
24Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
What’s important to Rx Buyers: GotALot Performance:
Convenient locations Knowledgeable pharmacist Fast checkout Quick prescription filling
What’s important OTC Buyers: GotALot Performance:
Low prices Easy-to-find items Convenient location Fast checkout
Overall satisfaction with GotALot:
Channel management decisions
Findings
25Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Recommendations Leverage GotALot’s strong Rx satisfaction ratings to increase sales in
the rest of the store and minimize lost sales to competitors.
Promote “one stop shopping” message.
Consider longer hours and alternative means of delivering meds to
consumers.
Channel management decisions
26Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Price
PriceCONSUMER
MANAGEMENTPRODUCT
DEVELOPMENTSUPPLY CHAIN MANAGEMENT
CORPORATE PLANNING
Company mission
Gain competitive advantage
Forecasting
BUSINESSSTRATEGY
Category Understanding
Brand building/ differentiation
Pricing strategy/Compete with
PL
MARKETINGConsumer
Insights
Product evaluation/
reformulation
Channel management
decisions
Attitude Link provides insights across the organization…
27Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Case Study 6: Product evaluation
Situation Analysis Lovin’ Oven Inc. introduced a new product, Tub O’Grub Do consumers like it enough that it could be a long term contender in
the shelf stable dinner category?
Business issues: How do we turn triers into repeaters? Does the product meet consumer expectations on taste, price and
other product features?
IRI solution: AttitudeLink surveyed Tub O’Grub triers and repeat buyers
28Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Product Evaluation
Findings
Do consumers like the product?
Only 65% of respondents indicated intent to repurchase, which is significantly lower than other benchmarks (generally 80%).
More than half of consumers felt that there was not enough meat included in the product.
Taste ratings were significantly lower than the client’s benchmarks.
Children seem to like the product slightly more than adults. But they could not prepare it themselves.
29Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Recommendations
Increase the amount of meat in the product
Improve product taste and quality of the ingredients
Focus on product attributes that appeal to children. Make it easier
for kids to prepare the product themselves
Product Evaluation
Client implemented IRI’s recommendations
2004 annual sales increased by $6MM
30Copyright © 2005 Information Resources, Inc. Confidential and proprietary.
Attitude Link provides insights across the organization…
Price
PriceCONSUMER
MANAGEMENTPRODUCT
DEVELOPMENTSUPPLY CHAIN MANAGEMENT
CORPORATE PLANNING
Company mission
Gain competitive advantage
Forecasting
BUSINESSSTRATEGY
Category Understanding
Brand building/ differentiation
Pricing strategy/Compe
te with PL
MARKETINGConsumer
Insights
Product evaluation/
reformulation
Channel management
decisions