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# millennialtalk. Marketing to the me generation. Carman Allison VP Consumer Insights - Canada. The Challenge for growth. Cpg STILL SPUTTERING FOR growth IN north America. Canada. United States. + 1.1. +1.4. + 0.2. - 0.1. Dollars. Units. Dollars. Units.

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Millennialtalk

#millennialtalk

Marketing to the me generation

Carman Allison VP Consumer Insights - Canada



Cpg still sputtering for growth in north america
Cpg STILL SPUTTERING FOR growth IN north America

Canada

United States

+1.1

+1.4

+0.2

-0.1

Dollars

Units

Dollars

Units

Nielsen: MarketTrack - Total Tracked Sale

52 wks ending March 8, 2014

Nielsen: ScanTrack - Total Tracked Sale

52 wks ending March 25, 2014


2014 is starting off slow
2014 is starting off slow

Slow growth, driven only by inflation

Source: Nielsen MarketTrack, National All Channels – 52weeks to March 8, 2014 - Total Tracked Sales excluding Fresh Random Weight


Trends impacting growth
Trends impacting growth

Cyclical Changes

  • Economy still fragile

  • Cautious Consumer

Structural Changes

  • Value Motivators

  • Retail, Redefined

  • Connected Consumer

  • Evolving Consumer



Millennials are
Millennials are…

First generation to

grow up with the

internet

Most familiar with

technology

than previous

generations

Consumers of the

future

Entering the

work force

Redefininghow wecommunicate


Common generational definitions
Common Generational Definitions

While there are many generalizations, there is no “official” definition

<20

‘Gen Z’

23%

19-37

‘Gen Y’

26%

38-47

‘Gen X’

7%

48-67

‘Boomers’

28%

68+

‘GI’

16%

Millions

7.9 9.1 2.4 9.6 5.5

Source: Statistics Canada – Census 2011


Currently millennials are under represented in purchasing power
Currently millennials are under represented in purchasing power

Millennials’ Importance

26%

14%

12%

% of Population

9.1 M

% Household Heads

2.0 M

% of CPG $’s

11.7 B

Source: Source Nielsen Homescan – 52 weeks to March 29, 2014


power

  • 42% of Millennials between 20-29 years old still live at home

Source: Statistics Canada – Census 2011


Millennials spend 18% less power

Spend Per Household

$7,214

$5,899

Total

Millennials

Source: Nielsen Homescan 52 weeks to March 29, 2014 – HH <35 years


Eating occasions power

Only 68% of Millennial meal occasions occur in the home

Millennials

Boomers

68%

IN HOME

IN HOME

79%

38%of Millennials vs. 32%of Boomers are more likely to prefer immediateprep time

In Home meals

Source: Nielsen Consumption Diary, Time Period: Q2 2013 -Q1 2014



How about 24 Billion reasons? power

Today

$11.7 Billion

12% of CPG

Growth Opportunity in 10 years:

$10.0 Billion

New Households

$14.3 Billion

Increased Consumption

2024

$24.3 Billion

23% of CPG

Source: Nielsen Homescan 52 weeks to March 29, 2014 – HH <35 years – Based on older generation spend


Millennials will surpass boomers by 2020 power

2010

2020

2030

8.9 M

10.0 M

11.0 M

9.7 M

9.4 M

8.3 M

Total

Canada

34.2 M

38.4 M

42.1 M

Boomers

Millennials

Source: Statistics Canada M: Millions


The cpg growth engine will switch gears
The CPG growth engine will switch gears power

By 2020…

MILLENNIALS BOOMERS

-$4.3 B

-9%

+$12.6 B

+207%

Source: Nielsen Homescan 52 weeks to March 29, 2014 – HH <35 years – Based on older generation spend


Aging in and aging out
Aging in and aging out power

As consumers age, they change their consumption of key CPG departments

+

+

-

-

-

-

-

-

-

-

Nielsen Homescan – Dollar Consumption Index – 52 wks to December 28, 2013 – Consumer Facts CPG Departments


Which cpg departments are most commonly found in a millennials shopping basket
Which CPG departments are most commonly found in a millennials’ shopping basket?

Nielsen Homescan – Dollar Consumption Index – 52 wks to December 28, 2013 – Consumer Facts CPG Departments Relative Index (82 for total)


High millennials’ shopping basket?

unemployment

rates

Expensive house

market

Staying in

school longer

Delaying Marriage

Urban

Cultural


Post Secondary Educated millennials’ shopping basket?

Single

43%

54%

61%

Rent their residence

Source: Nielsen Spectra, March 2014 - < 35 years old


Millennials find us in cities
Millennials: Find us in cities millennials’ shopping basket?

Top Cities:Population Index (100=26%)

79%

Vancouver 136

St. Johns NF 123

Calgary 120

Montreal 118

Regina 115

Toronto 112

Saint John NB 110

Halifax 109

Ottawa 109

Winnipeg 109

% who live in a CMA

(Census Metropolitan Area)

Source: Stats Canada 2011 Census , Nielsen Spectra, March 2014 <35 years old


Millennials are more diverse millennials’ shopping basket?

For visible minorities…

7out of 10 Visible Minorities are first generationCanadian…

33.4Average age

vs

Canada: 40.1

Source: Statistics Canada


millennials’ shopping basket?

I do not intend to buy a car in the near future (34%)

I wish I could get where I am going conveniently without a car (72%)

A car is simply a tool to get me where I am going (81%)

12% don’t own a car (vs 8% population)

7% own a hybrid/electric (vs 8% population)

Another10% planning to buy

Source: Nielsen Global Online Consumer Confidence Surveys, Q3 2013 - Canada – Nielsen 2013 Gas Impact Survey


Younger generations are plagued with higher levels of unemployment
Younger generations are plagued with higher levels of unemployment

Unemployment Rates

64%feel positive about their personal finances (vs 52% CA)

14%unemployed(under 25)

60% Report excellent or good job prospects (vs 68% CA)

However

Canada: 7%

10% have no spare cash (vs 20% CA)

Source: Statistics Canada, December 2013

Source: Nielsen Global Online Consumer Confidence Surveys, Q1 2014 - Canada


Not as cash strapped as you would think unemployment

> $100K

12%

18%

< $30K

$30K - $70K

> $70K

Millennials

Canada

Source: Statistics Canada


Millennials are more confident than older generations

99 unemployment

35-54

89

55+

106

<35

Millennials are more confident than older generations

Source: Nielsen Global Online Consumer Confidence Surveys, Q1 2014 - Canada

Consumer Confidence Index by age group


unemployment

  • Despite being optimistic, I still demand value and authenticity.


The loyalty challenge

Easily persuaded to buy a different brand unemployment

(index: 122)

The loyalty challenge

Price, first thing to look at

when purchasing

(index: 120)

Shop at stores with lower prices

(index: 114)

Buy more private label

(index: 125)

Source: Nielsen Global Online Consumer Confidence Surveys, Q4 2013 - Canada

Nielsen, PanelViews, Economic Impact, survey 2013

Nielsen, PanelViews, Consumer Opinions survey, 2013


Millennials spend almost 4 out of every 10 cpg dollars in discount retailers
MILLENNIALS SPEND Almost 4 out of every 10 unemploymentcpg Dollars in Discount retailers

Discount Dollar Loyalty

CHANNEL $ LOYALTY

M

T

30%

Grocery 46% 43%

Drug 4% 6%

Mass 16% 12%

W-Club 9% 11%

Millennials

Total CA

Source: Nielsen Homescan 52 weeks to March 29, 2014 – Total Tracked upc’s


The millennial grocerytrip
The millennial # unemploymentgrocerytrip

Over 50% check

reviews & coupons

online

57% know the stores

that offer the

best price

73% prefer a “one stop shop” experience

51% say trips are “quick trips”

60% would prefer loyalty card on their phone, not plastic

73% say price is the first

thing to look at

when purchasing

49% will buy more for loyalty points

41% would use their phone to pay

Nielsen, PanelViews, Social Media, survey 2013


Millennials support social causes

Authentic, creative unemploymentand diverse

Millennials support social causes

44%

shop at retailers that support social causes

70%

Find it important to have programs to improve the environment

48%

Will spend more on products from socially responsible

companies

44%

Has purchased from a company that gives back to society

Source: Nielsen Global Online Consumer Confidence Surveys, Q1 2013 - Canada


unemployment

  • I want to watch what I want, when I want… and for free.


Media habits differ between generations
Media habits differ between generations unemployment

Media Usage

Boomers

Millennial

LIGHT

HEAVY

MEDIUM

TV

Internet

Magazines

Newspaper

Radio

Source: Nielsen Spectra, PMB , January 2014


Over the past 3 years, MILLENNIALS ARE WATCHING LESS unemploymenttraditional television

2012

2013

2014

3.0 hrs/day

Millennials

22hr 48min

22hr 29min

20hr 52min

Boomers

33hr 36min

33hr 47min

33hr 59min

4.9 hrs/day

Source: Nielsen Borealis; TV Data Source: BBM Canada


Top 10 tv series among millennials in 2013
Top 10 TV series among millennials in 2013 unemployment

Boomers

Amazing Race Canada 1

Big Bang Theory 3

Masterchef 58

Stanley Cup Finals 5

Sochi 2014 6

La Voix 2

Agents of S.H.I.E.L.D 53

Under the Dome 4

Amazing Race 9

Grey’s Anatomy 22

FEMALES:7 of 10 are reality shows

MALES:

2 of 10 are reality shows

Source: Nielsen Borealis; TV Data Source: BBM Canada – TV Series Excluding specials


Millennials are cutting the cord unemployment

% with no cable or TV subscription

26%

12%

Millennials

Boomers

Source: Nielsen Spectra, 2014 Mar


Less cable but more online media
Less cable but more online media unemployment

Millennials

Boomers

46% News Websites

23%

34% Watch TV online

5%

26% Newspapers Online

14%

22% Radio Online

7%

Source: December 2013 Nielsen PanelViewsSocial Media Survey


unemployment

  • We can post, tweet and text all about it, right now, 24/7, globally, anytime, anywhere.


Power at their fingertips unemployment

% Total Ownership

% Millennials Ownership

79%

51%

12%expected to buy in next year

7%expected to buy in next year

63%potential ownership

86%potential ownership!

Source: Nielsen PanelViews, Social Media Survey, 2013


Leading to online sales unemployment

E-commerce

M-commerce

70%have purchased from an online store

65%have purchased or are willing to purchase

via virtual store

Nielsen, PanelViews, Social Media, survey 2013


What are millennials buying online and willing to buy online
What are Millennials buying online? unemploymentand willing to buy online?

Currently Buying Online

27% Toys

22% Health & Beauty

21% Cosmetics

15% Paper Products

12% Baby Products

11% Household Products

11% Confectionery

9% Pet Products

8% Non Perishable Food

7% OTC Drugs

7% Beverages

6% Perishable Food

5% Fresh Produce

Source: Canadian PanelViews Social Media Survey Oct 2013


What are millennials buying online and willing to buy online1
What are Millennials buying online and willing to buy online?

Currently Buying Online

Willing to Buy Online

27% Toys

22% Health & Beauty

21% Cosmetics

15% Paper Products

12% Baby Products

11% Household Products

11% Confectionery

9% Pet Products

8% Non Perishable Food

7% OTC Drugs

7% Beverages

6% Perishable Food

5% Fresh Produce

69% Paper Products

67% Household Products

60% Toys

58% Heath & Beauty

51% Pet Products

51% Confectionery

50%Cosmetics

50% OTC Drugs

49% Non Perishable Food

47% Beverages

43% Baby Products

27% Perishable Food

25% Fresh Produce

Source: Canadian PanelViews Social Media Survey Oct 2013


Making the most of the 24b opportunity

Source: Forbes online?

MAKING THE MOST OF THE $24B OPPORTUNITY

Engagethem through effective and efficient marketing

Activateplans through superior sales execution

Identify

your best customers

Develop

products and content to meet their needs


And act
AND ACT online?!

Find us in cities (or still living with Mom & Dad)

Respect our authenticity, creativity and diversity

Support our causes; brands that are a good “friend”

Give us a deal, but don’t scrimp on quality

Reach us via social media and mobile; e-commerce

Relate to us—make it relevant, personal, useful


Consumer Shopping Behaviour Q4 2011 online?

Stay Connected to Consumer

and Media Trends

Visit us online at nielsen.com

Download Nielsen’s TopTen App


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