SSG R360 Tapping Into TM Healthy Wellness Brands_Brief 08-19-14

2014 © Santiago Solutions Group, Inc. SantiagoSolutionsGroup.com2014 © Santiago Solutions Group, Inc. SantiagoSolutionsGroup.com

Tapping Into the Total Market’s Healthy Living

Movement: Leveraging Similarities and

NuancesHISPANIC RETAIL 360 SummitThursday, August 14, 2014

2014 Wellness Brand Awards

GfK MRI

SSG Wellness Spectrum is the joint property of GfK US, LLC and Santiago Solutions Group, Inc.©2014 GfK US LLC. All Rights Reserved

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2014 © Santiago Solutions Group, Inc. SantiagoSolutionsGroup.com

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SSG’s take on TMConsensus Definition

A marketing approach which proactively integrates diverse segment considerations. This is done from

inception with rigorous purchase drivers insights of all segments, through the entire strategic process and execution, with the goal of enhancing Brand value and

growth effectiveness. This could lead to several approaches:• one fully integrated cross-cultural approach, • individual Hispanic, African American, Asian, or

White Non-Hispanic segment approaches • or in many cases, any combination…• depending on growth opportunities, drivers,

barriers and fit with a Brand’s experience, but always aligned under one overarching strategy.

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Factors Driving “Health” Consciousness & Higher

Discernment for Products & Retailers

The Total Market demands Healthier productsOrganic food Gluten-Free Clean label fresh, fast and healthy food

trans fats, sodium, high fructose, unnecessary high calories and fat contentArtificial flavors, dyes and additives Anything perceived as unhealthy

1. April 30, 2014 warning labels were put on hold until California has a new state budget2. Organic Trade Association3. Euromonitor International4. "U.S. Market for Flavors," July 2014 Packaged Facts report MarketResearch.com

Consumers Want…

Consumers Are Avoiding…

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A New Powerful Approach Guiding ‘Healthier’ Brand

Strategies

Over 50% of all health related deaths are caused by diseases/conditions correlated with

personal lifestyle choices.


SSG modeled hundreds of attitudes & behaviors shaping individuals lifestyle choices leading to 5

major preventable chronic diseases.

Healthy-UnhealthyLifestyle ChoicesAttitudes &Behaviors

‘Bad Behavior’ DiseasesDiabetes II

High CholesterolHypertension

ObesitySome Cancers

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SSG Wellness ScoreTM powered by GfK MRI

An Overlay Segmentation with Turnkey Applications

SSG Wellness Spectrum assigns each individual with a Wellness Score. This ‘FICO-like’ score is individually based on specific wellness attitudes & behaviors.

The individual Wellness Spectrum scores can be aggregated by brand, class of trade, channel, category, generational level, ethnicity, race, etc.

The Wellness Scores aids marketers to understand their buyers through wellness patterns, barriers, and engagement drivers to focus growth strategies on the appropriate level of wellness receptivity.

300 400 500 600 700 800 850


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Wellness PersonasConsumers Migrating from Savvy Indulgents to Busy

Strivers and Fit & Holistic

Fit & Holistic live by the motto: “You are what you eat and wear.” They understand and

incorporate healthy lifestyle choices. They

shop with the environment in mind, purchasing organic food products and listen to the

doctor.

Busy Strivers make a great effort to balance their busy lives, yet are more driven by convenience rather than health. They might try to sneak in a Pilates work out to shed some excess pounds. They like to have semi-prepared foods, that require little

additional work.

Savvy-Indulgents are cost-conscious individuals who do not care to cook. You probably won’t find these individuals at a gym but may catch them

playing some soccer with friends. They are hunters in games, actions and mindsets and will not compromise taste for wellness sakes.


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46

108

208

Always Check Nutritional Content Before I Buy

9

125

272

Eat a healthy breakfast every day

73

109

149Happy with My Weight

56

112

183Look for New Ways to Live a

Healthier Lifestyle

Wellness Minded Consumers Over-index in Healthy Lifestyle, Attitudes

& Decisions

7

.

Source: SSG Wellness SpectrumTM Powered by GfK MRI 2012 Doublebase Survey of the American Consumer. Base: Total 18+ Health Attitudes: Agree Strongly; Buying Styles: Agree Mostly.

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58

112

179High Fiber

58

113

176Low Sodium

62

116

162Low Fat

63

113

166Sugar Free

.

.

Wellness Minded Consumers Over-index in Healthy Food Choices

Source: SSG Wellness SpectrumTM Powered by GfK MRI 2012 Doublebase Survey of the American Consumer. Base: Total 18+ Diet control/eating habits: Buy food labeled as:

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108 10081

Microwavable Dinners

89104

120

Green Products

79108

134Vitamin & Dietary

Supplements

11594

76

Energy Drinks

.

.

Healthier Segments Over-Index In Healthier Categories

Source: SSG Wellness SpectrumTM Powered by GfK MRI 2012 Doublebase Survey of the American Consumer. Base: Total 18+; Bought in Last 6 months:

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Sample Planning Exercise

Wellness Propensity in Breakfast Brands’ Choices

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Among Breakfast Sub-CategoriesWellness is Directly Correlated With

Growth

11Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase Base: Breakfast CPG Buyers 18+

YOY G

row

th

Wellness Score

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Breakfast Brands Cover the Spectrum of Wellness

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Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase Base: Breakfast CPG Buyers 18+

Welln

ess S

core

of

Bra

nd

Bu

yers

Breakfast Brands Ranking Lo to Hi

Each Circle represents a Breakfast Brand

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22%

20%

13%7%8%

5%

7%

7%5%

2%2%2%

19%

30%26%

12%

8%

4% 2%

Activia’s New Growth is coming from Busy Strivers and OCR’s Growth Is Coming Equally

from Busy Strivers & Fit & Holistic

26%

23%16%

7%

9%

5%3%

4%2%

2%2% 1%

31%

61%

8%

Share of Base

Share of Growth Segments

Source: SSG Wellness SpectrumTM Powered by GfK MRI 2012 Doublebase Survey of the American Consumer. Base: Total 18+; Household Products- Used in Last 6 months

Millennials make up 30% of Dannon buyer base and 27% of Oatmeal Crisp

Millennials make up 100% of Dannon growth segments and 58% of Oatmeal Crisp w/ Raisins

A Total Market approach for Activia should ideally be both Hispanic-segment-specific and Cross-Cultural, while Oatmeal Crisp benefit most from a Cross-Cultural approach

2014 © Santiago Solutions Group, Inc. SantiagoSolutionsGroup.comGfK MRI

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Activia Growth Segments Consistently More Digitally-Inclined

vs Oatmeal Crisp

Awareness & Consideration

Trial & Action Loyalty & Advocacy

Objectives

Path

to P

urch

ase

Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase Base: Breakfast Buyers 18+

SM Deals 157 112

Nav/Map 155 63

Shop/Retail App 161

48

QR/Tag 147 101

Mobile Coupon 161

101

SM VIP 157 112

SM Fave Prods 168

130

Activia OCR

Search 152 67

Text Ad 157121SM Res Prod143 99

Cell Ad 149101

App 167 68

Res Prod 152 79

Activia OCR Activia OCR


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Wellness Scores Allow For Geographic To Individual-level Classification For 1-

to-1 Personalization Fit & Holistic

Busy Strivers

Savvy Indulgents

Source: SSG Wellness SpectrumTM Powered by GfK MRI 2012 Market to Market. Survey of the American Consumer

Wellness Scores can be identified for any group of Adults in the U.S. to enrich internal client databases or targetable email/mobile prospect lists through BigData vendors like Axciom, etc.


Healthier Consumers Choose Different Retailers Depending On

Ethnicity

AFRICAN AMERICAN MILLENNIAL

HISPANICWHITE NH

Source: SSG Wellness Spectrum™ Powered by GfK MRI 2012 Doublebase Base: Breakfast Buyers 18+16

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Drivers • Consumers are becoming more discerning about wellness, demanding more natural, recognizable ingredients

• Best-in-class proactively leading and gaining share and growth momentum from healthy innovation

A data-rich wellness propensity tool can help food manufacturers & retailers to:

• Identify growth opportunities and inform high-value wellness shopper segments in a Total Market approach

• Enhance ROI by better creating promo solutions that work best at right wellness target consumers

• Leverage digital platforms in path to purchase

Conclusions


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Santiago Solutions GroupWe guide clients using advanced research, projectable opportunity sizings, innovative modeling and predictive analytics. Yet, integrating and distilling rigorous data is just the base to reduce your financial risk.

GfK MRI Survey of the American Consumer

GfK MRI data are culled from its Survey of the American Consumer™, the most comprehensive single-source database in the U.S. contains unparalleled insights into attitudes and lifestyles, along with consumption of approximately 6,000 products in 550 categories.

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SantiagoSolutionsGroup.comGfKMRI.com

@Santiago_Group @GfK_en@Carlos_SSG

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[email protected]@gfk.com

SSG: 818.736.5661GfK: 212.884.9217

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SSG R360 Tapping Into TM Healthy Wellness Brands_Brief 08-19-14

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