shades of green: a further understanding of the green …$50 0.0% 0.5% 1.0% 1.5% 2.0% green % of...

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


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


Leading Green BrandsLeading Green Brands15 Categories 15 Categories –– 2,670 UPCs2,670 UPCs

http://www.bi-o-kleen.com/index.htm

http://www.kissmyface.com/content/new_content/summer_fun.htm


$0

$1

$2

$3

$4

$5

$6

$7

$8

5/15

/200

56/

15/2

005

7/15

/200

58/

15/2

005

9/15

/200

510

/15/

2005

11/1

5/20

0512

/15/

2005

1/15

/200

62/

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006

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610

/15/

2006

11/1

5/20

0612

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2006

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72/

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007

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74/

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710

/15/

2007

11/1

5/20

0712

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2007

1/15

/200

82/

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008

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8

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


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


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


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


TOP SELLING ITEMS IN BASKET WITH GREEN PRODUCT PURCHASE


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


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


$0

$10

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$50

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


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 $








Based on 53MM Consistent Catalina Grocery Network Shoppers and who bought Green at least twice in the year ending 3/16/08


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


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


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


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


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


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?


Thank you!

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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