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Slide 1: Yankelovich MONITOR 2007/2008 ® Passion for PRECISION The Consumer Empowerment Revolution Hits Full Stride Yankelovich © 2007/2008 1
Slide 2: If There Was Any Doubt… Yankelovich © 2007/2008 2
Slide 3: Current Outlook But…do consumers still feel in control with the uncertain, even anxious, economic prospects ahead? Yankelovich © 2007/2008 3
Slide 4: Economic Anxiety Levels Are Rising January ‘08 April-May ’08* None Low Moderate High Severe 10% 25 32 19 14 35 33 3% 12 31 24 30 15 54 * April-May ’08 source: Yankelovich When Advertising Works survey of 1,512 consumers 18 and older 4
Slide 5: Things That Are Getting Worse Dollars and Consumer Sense, January 2008 When Advertising Works,* April-May 2008 Very/fairly worried Selected items: Cost of gasoline Having enough money to retire on Keeping up with the cost of living Getting out of debt Having enough money to put food on the table Very/fairly worried 75% 43 39 27 17 83% 64 73 48 42 * April-May ’08 source: Yankelovich When Advertising Works survey of 1,512 consumers 18 and older 5
Slide 6: Pinching a Few Pennies, At Least Dollars & Consumer Sense MONITOR Perspective January 2008 Degree of spending cuts made in last few months Degree of spending cuts planned in 2008 None A little Moderate A lot 42% 13% 23% 21% 22% 27% 31% 19% 6 Yankelovich © 2007/2008
Slide 7: Dollars & Consumer Sense Value Planning Model Where the economy stacks up Concerns/worries moderated by Income/coping skills results in A snapshot of the consumer mindset Economic anxiety moderated by Shopping styles results in What consumers will do/pay for Yankelovich © 2007/2008 Value trade-offs 7
Slide 8: Shopping Styles Are Influenced by Anxiety • As economic anxiety rises, consumers migrate away from styles that expose them to economic risks Level of Economic Anxiety None Low Moderate High Severe % I shop only when I have to I buy generic or store brands whenever possible I stick to a plan or list when making purchases I shop around to get the best price on the things I need % % % % 74 58 67 62 82 73 73 63 85 75 76 75 90 78 79 74 97 90 71 83 8
Slide 9: Dining Value Trade-Offs by Economic Anxiety Level of Economic Anxiety None Low Moderate High Severe Other Food Related Trade-Offs To save money, cook from scratch rather than purchase foods that are already prepared (Less likely to) Go out to eat for lunch (Less likely to) Go out to eat for dinner When dining, choose less expensive items to save money Eat out at less expensive restaurants % % % % % 39 23 18 21 15 54 36 36 27 32 58 49 40 38 37 67 64 55 52 39 71 66 67 66 49 9
Slide 10: Approaching anxious consumers Consuming only when necessary is the style most affected by consumer anxiety • • • With greater anxiety comes a desire to curtail unnecessary (read: frivolous) shopping Avoiding the appearance of frivolity is essential to staying in consumers’ consideration set However, there are still opportunities for brand names, impulse purchases, one-stop convenience, time savings, etc., as long as they can be positioned to fit with an increasing focus on necessities Position dining as an ‘affordable necessity’ during stressful times • 10
Slide 11: Mitigating Anxiety During a Downturn There are some opportunities (albeit limited ones) for marketers to do more than just react to changes in consumer spending patterns 1. Consider targeting consumers who see themselves as more competent and more in control 2. Target at higher income levels given their somewhat greater psychological resiliency in the face of economic uncertainty 3. Remind consumers of what they already believe — that they are smart and in control 4. Offer help and assistance, even partnering with consumers where possible, to put consumers back in control 11
Slide 12: And…Still In Control, Good Times or Bad Describes you… 2008 2007 Dollars & Yankelovich Consumer Sense MONITOR As self-reliant as possible In control of my life 79% % 67 88% % 80 Yankelovich © 2007/2008 12
Slide 13: A marketer-driven world A consumer-driven world Outside‐In Economy Consumers are dependent Control is corporate All business Yankelovich © 2007/2008 Inside‐Out Economy Marketers take direction Control rests with consumers Very personal 13
Slide 14: Consumers Take Control Auto Dealer cost structures made public, cars by RFP $$$$ Day traders, mortgages/ loans by RFP TV Time-shifting, ad avoidance Yankelovich © 2007/2008 14
Slide 15: Information-Savvier Consumers I always know how to get the information I get the information need to make decisions Important in your personal life today: Researching a life today: Researching product before buying it 61% 2002 TODAY 75% 44% 2004 TODAY 61% I know more about the products being sold in stores than the people selling them 48% 2005 Yankelovich © 2007/2008 TODAY 53% 15
Slide 16: Locus of Control, Expertise, Authority • In Charge: Directing, Advising, Guiding Extremely/very important to the way others see you: Someone who gives smart advice % 67 TODAY Yankelovich © 2007/2008 16
Slide 17: Smarter Than the Average Bear % I think my IQ is higher than average 2005 Yankelovich MONITOR Financial Services Study Yankelovich © 2007/2008 17
Slide 18: Expectations of More Control • Self-Reliance Agree more with “following your own instincts” or “listening to experts” Following your own instincts % 61 2002 % 74 TODAY Yankelovich © 2007/2008 18
Slide 19: Expectations of More Control • Passionate Involvement Extremely/very important to the way others see you: Passionate about the things you care about % 61 2003 % 73 TODAY Yankelovich © 2007/2008 19
Slide 20: Expectations of More Control • Marketing Resistance Extremely/very important to the way others see you: Someone who can always see through exaggeration and hype % 38 2002 % 56 TODAY Yankelovich © 2007/2008 20
Slide 21: Expectations of More Control • Authenticity & Honesty Extremely/very important to the way others see you: Someone who tells the truth no matter what % 72 2003 % 82 TODAY Yankelovich © 2007/2008 21
Slide 22: Gasoline price alerts Carbon footprint meters Nutritional guides & data Price comparisons 22 Yankelovich © 2007/2008
Slide 23: Smart Toothbrush Yankelovich © 2007/2008 23
Slide 24: Tapping the Dash Driver Network Yankelovich © 2007/2008 24
Slide 25: Keep Your Health Care Info Under Your Control Yankelovich © 2007/2008 25
Slide 26: New Ways to Manage Money Yankelovich © 2007/2008 26
Slide 27: Thought-Starters • Open up access to information • Share an “insider’s” view • Be an aggregator of relevant information, especially nutritional • Make information engagement “special” – for connossieurs, for VIPs, for loyal customers, for experts, easy to share and show off to others • Give customers control over information • Host communities that invite criticism and sharedhelp solutions (people will brag on you there, too) • Up-to-the-minute status reports on a location • Teach them “relevant” evaluative criteria Yankelovich © 2007/2008 27
Slide 28: Thought-Starters • Open up concepts to customer-generated recombinations • Easy to facilitate in marketing communications • Harder to do in menu choices, but potentially a bigger return in customer engagement and loyalty • Every visit is thus not the same, but instead is a new experience, even adventure • Provides customers with more ways to find relevance and chances to visit • Multi-sensory and design components can personalize • iPod cradles at each table (with appropriate limits) • Personal video screens for ordering and entertainment • Multi-tasking hubs where food is vital but secondary Yankelovich © 2007/2008 28
Slide 29: Thought-Starters • Use database systems to aggregate knowledge of individual customers – Invite opt-in • Personalize the relevance of what customers receive • Can be more than menus • The experience itself • The interaction with staff • Reminders and thank you’s via mail or email • Discounts and promotions • Special events, parties or family gatherings • Special treatment on special occasions • Have favorite items on the table or ready to serve • Personalization in every location across the country Yankelovich © 2007/2008 29
Slide 30: A State of More More lifestyle options More relevant/meaningful rewards More marketplace skills More marketplace options Less compromise Yankelovich © 2007/2008 30
Slide 31: “The Magical Number Seven, Plus or Minus Two” George A. Miller, The Psychological Review, 1956, vol. 63, pp. 81-97 If the human observer is a reasonable kind of communication If the human observer is a reasonable kind of communication system, then when we increase the amount of input information system, then when we increase information the transmitted information will increase at first and will the transmitted information will increase at first and will eventually level off at some asymptotic value. This asymptotic eventually level off at some asymptotic value. This asymptotic value we take to be the channel capacity of the observer: it value we take to be the channel capacity of the observer: it represents the greatest amount of information that he can give us represents the greatest amount of information that he can give us about the stimulus on the basis of an absolute judgment. The about the stimulus on the basis of an absolute judgment. The channel capacity is the upper limit on the extent to which the channel capacity is the upper limit on the extent to which the observer can match his responses to the stimuli we give him. observer can match his responses to the stimuli we give him. Let me summarize the situation in this way. There is a clear and Let me summarize the situation in this way. There is definite limit to the accuracy with which we can identify definite limit to the accuracy with which we can identify absolutely the magnitude of a unidimensional stimulus variable. II absolutely the magnitude of a unidimensional stimulus variable. would propose to call this limit the span of absolute judgment, would propose to call this limit the span of absolute judgment, and II maintain that for unidimensional judgments this span is and maintain that for unidimensional judgments span is usually somewhere in the neighborhood of . usually somewhere in the neighborhood of . seven Yankelovich © 2007/2008 31
Slide 32: Yet, Apparently Consumers Are Coping I’m overwhelmed by all of the sources of information available today % 61 1996 % 47 TODAY Yankelovich © 2007/2008 32
Slide 33: A New Movement is Emerging FROM Control More/Shoot for More TO Control More/Shoot for Precision Yankelovich © 2007/2008 33
Slide 34: Consumer Strategies for Navigating a World of “More” Consumer control evolves! Pinpointing Splicing Limelighting imPerfecting Yankelovich © 2007/2008 34
Slide 35: Yankelovich © 2007/2008 35
Slide 36: Passion for Precision Pinpointing Yankelovich © 2007/2008 36
Slide 37: Pinpointing: Wiki Backlash There are too many people these days giving their opinions who know much less than they think they do % 88 TODAY Yankelovich © 2007/2008 37
Slide 38: Pinpointing: Tighter Circles in Demand Important in your personal life today: Spending time with people who are as passionate and knowledgeable about the things you care about as you are % 55 TODAY Yankelovich © 2007/2008 38
Slide 39: Pinpointing: From Search to Smart Search Yankelovich © 2007/2008 39
Slide 40: Pinpointing: Smart Job Search Yankelovich © 2007/2008 40
Slide 41: Pinpointing: Smart Travel Search Yankelovich © 2007/2008 41
Slide 42: Pinpointing: Wonder What Walt Would Think “The home of Mickey Mouse, Tigger and Tinkerbell has banned kids from its fanciest restaurant. Beginning this week, children under 10 are no longer welcome at Victoria & Albert's in the Grand Floridian Resort & Spa. Victoria & Albert's is Walt Disney World's only restaurant with an AAA five-diamond rating. "We want to be the restaurant that's available for that adult experience," said general manager Israel Perez’.” (“Disney World Restaurant Bans Children,” Akron Beacon Journal, 01.05.08) Yankelovich © 2007/2008 42
Slide 43: Pinpointing: Looking Ahead Make consumers smarter Don’t pile it on Instead, pinpoint it Facilitate ‘narrow’ engagement Start with a profile Management tools for consumers to use Consolidation & aggregation Training & hosting The best place to find more Yankelovich © 2007/2008 43
Slide 44: Yankelovich © 2007/2008 44
Slide 45: Passion for Precision Splicing Yankelovich © 2007/2008 45
Slide 46: Splicing: My Pieces, My Puzzle (Among those online) Have customized a web page or search engine to show the news and information of most interest to you % 24 TODAY Yankelovich © 2007/2008 46
Slide 47: Splicing: My Shows, My Schedule Watch TV programs later than when they originally aired, not including reruns (e.g., streaming video on the Internet, DVR, On-Demand, on an iPod, etc.) % 34 TODAY Yankelovich © 2007/2008 47
Slide 48: Splicing: My News, My Sources In a survey measuring knowledge of current events (conducted by the Pew Research Center), half the people who did the best said they got their news from at least seven outlets a day (“Best-Informed Also View Fake News,” The New York Times, (“Best-Informed Also View Fake News,” The New York Times, 04.16.07) 04.16.07) Yankelovich © 2007/2008 48
Slide 49: Splicing: Looking Ahead Consumers demanding new collaborations Consumers to expect more – innovative products  have already given them a taste of the potential of  splicing Focus on combinations of multiple products – even  of very different sorts or applications  It means expanded roles and non‐traditional  players in many categories Consumers are changing their standards of success Yankelovich © 2007/2008 49
Slide 50: Splicing: TasteBooks “For $34.95, a cooking enthusiast can select up to 100 recipes, which come encased in a ringbinder with a customized cover. The site also accommodates those who want to fill a volume with their own recipes or with recipes from sites other than Epicurious.” (“A Cookbook of One’s Own (“A Cookbook of One’s Own from the Internet,” The New from the Internet,” The New York Times, 11.12.07) York Times, 11.12.07) Yankelovich © 2007/2008 50
Slide 51: Splicing: Mix and Match Meals “Every chef puts his or her own spin on what is often described as ‘global tapas,’ but at smallplate restaurants across the country you'll find a spirited atmosphere that encourages a meal designed to be shared by as many diners as possible. Plenty of table reaching and plate shuffling ensures that everyone can taste everything.” (“Restaurant trend: Small-Plates Dining,” lifestyle.msn.com) Yankelovich © 2007/2008 51
Slide 52: Splicing: Alternative Yoga “…has teamed up with Vosges chocolate…to offer yoga and chocolate seminars that begin and end with a truffle. Much like traditional yoga practices, he uses the sweet to make participants more aware of their senses, asking them to savor each little bite and its distinct taste…” (“Nude Yoga and Other Twists to the Practice,” Newsweek, 08.20.07) Yankelovich © 2007/2008 52
Slide 53: Splicing: Think About It Playlists Wrist Watch With A Pulse Two Tastes In One Glucose Meter/Phone Technology Mash-Ups Yankelovich © 2007/2008 53
Slide 54: Splicing: Mixing Business with Pleasure A day at the office can be a downright assault on your sense of smell. Between Harry’s halitosis, Penny’s pungent perfume, and Stanley’s tuna on onion roll, you can’t get a breath of fresh air. Don’t lose your cool. Save your sniffer (and your sanity) with the USB fragrance oil burner. Plug this puppy into your computer, add a drop of oil, and be instantly bathed in soothing scent. (DailyCandy, 10.03.07) Yankelovich © 2007/2008 54
Slide 55: Splicing: Netvibes Yankelovich © 2007/2008 55
Slide 56: Splicing: SocialThing! Yankelovich © 2007/2008 56
Slide 57: Splicing: Food as Medicine Yankelovich © 2007/2008 57
Slide 58: Splicing: Retail Health Care The medical services available in many grocery and retail stores are just as good as those available in traditional medical facilities % 42 TODAY Yankelovich © 2007/2008 58
Slide 59: Splicing: Retail Health Care Yankelovich © 2007/2008 59
Slide 60: Splicing: The Spa at Whole Foods Yankelovich © 2007/2008 60
Slide 61: Yankelovich © 2007/2008 61
Slide 62: Passion for Precision Limelighting Yankelovich © 2007/2008 62
Slide 63: Limelighting: Required in an iPriority World People who don’t take time for themselves end up taking it out on others % 80 TODAY Yankelovich © 2007/2008 63
Slide 64: Limelighting: Putting a Lid On It (Among those working full/part time) Important in your personal life today: Leaving work problems in the office % 57 2004 % 62 TODAY Yankelovich © 2007/2008 64
Slide 65: Limelighting: Just Say “No!” Rate skills highly: Being able to say “no” when you need to % 70 TODAY Yankelovich © 2007/2008 65
Slide 66: Drawing the Line: On Health, Too Likely to be true ten years from now: certain methods or ingredients used in preparing food will be against the law Millennials Xers Boomers Matures 55% 49 53 63 % 54 TODAY (5-7 on 7-pt. scale, where 7 is rate skills as “extremely likely” and 1 is rate skills as “not at all likely”) Yankelovich © 2007/2008 66
Slide 67: Drawing the Line: They Need Your Help On This… Restaurant portions are too large and cause me to eat more than I normally would Men Women Millennials Xers Boomers Matures Yankelovich © 2007/2008 48% 61 49 58 51 62 % 55 TODAY 67
Slide 68: Limelighting: Finding Family Time (Among parents with children <18 in HH) It is important for families to eat dinner together every night % 60 TODAY Moms Dads 62% 57% Yankelovich © 2007/2008 68
Slide 69: Limelighting: A “24” Weekend “DVDs have upended how we watch television, transforming shows from disposable weekly units into 8-, 12-, 22-hour movies. ‘We get a lot of people who tell us they don’t even watch the show when it airs,’ says Joel Surnow, co-creator of ‘24.’ They wait for the DVD and watch it all at once’.” (“Why TV Is Better than the Movies,” (“Why TV Is Better than the Movies,” Newsweek, 02.26.07) Newsweek, 02.26.07) Yankelovich © 2007/2008 69
Slide 70: Limelighting: Longer Spa Appointments “…spa-goers are requesting longer treatments — allowing for extended, enhanced and more meaningful spa experiences…[spa-goers are] booking time instead of a treatment… [this] gives the consumer the flexibility to choose what they want based on how they feel when they arrive at the spa” (The International Spa Association Key Spa Industry Trends for 2006) Yankelovich © 2007/2008 70
Slide 71: Limelighting: The Comforts of Home staycation – A vacation that is spent at one's home enjoying all that home and one's home environs have to offer. Even though I live and work in New York, I don't always get to enjoy all it has to offer, what with my work commitments, but I sure did have an awesome time here during my spring staycation. (urbandictionary.com) Yankelovich © 2007/2008 71
Slide 72: Limelighting: My Private Get-Away (Among married/living together) I would feel comfortable taking a vacation without my spouse or significant other % 45 TODAY Yankelovich © 2007/2008 72
Slide 73: Limelighting: Sleeping Alone “In a survey in February by the NAHB, builders and architects predicted that more than 60 percent of custom houses would have dual master bedrooms by 2015…some builders say more than a quarter of their new projects already do. [One expert says,] ‘The growing need for separate bedrooms represents the speed-up of family life — women’s roles have changed — and the need for extra space eases the strain on the relationship. If one of them snores, the other one won’t be able to perform the next day. It’s nothing to do with social class, and it’s not necessarily indicative of marital discord’.” (“To Have, Hold and Cherish, Until Bedtime,” The New York Times, 03.11.07) (“To Have, Hold and Cherish, Until Bedtime,” The New York Times, 03.11.07) Yankelovich © 2007/2008 73
Slide 74: Limelighting: Somehow I Still Don’t Get It Right Scheduling down time or “me” time Important in personal life Describes you % 33% Total Men Women Moms % 51% 46 57 54 33 34 27 Yankelovich © 2007/2008 74
Slide 75: Limelighting: Looking Ahead Reflect and facilitate desires to do just one thing Remember: Multi‐tasking may be one means to an  end, but mono‐tasking may be the ideal solution Help remove barriers to a singular focus Give consumers a helping hand through coaching,  tutoring, insider tips, etc. Declutter and refine the consumer’s experience  with your brands and communications Yankelovich © 2007/2008 75
Slide 76: Yankelovich © 2007/2008 76
Slide 77: Passion for Precision imPerfecting Yankelovich © 2007/2008 77
Slide 78: imPerfecting: Wart Remover? Own a digital camera % 49 2005 % 64 TODAY Yankelovich © 2007/2008 78
Slide 79: imPerfecting: The Push Back on Airbrushing “In an age when Americans’ appetite for celebrity snapshots seems insatiable, retouching photographs has become routine. But some magazines are getting too liberal with their edits, and stars are fighting back.” (“‘22-inch Guns’ Stun Andy (“‘22-inch Guns’ Stun Andy Roddick,” ABCnews.go.com, Roddick,” ABCnews.go.com, 05.29.07) 05.29.07) Yankelovich © 2007/2008 79
Slide 80: imPerfecting: Not Every Child Is “Perfect” “honest baby was founded by a mom, frustrated with the myth of perfect parenting…the more we try to mold the most social, well-rested, sweet, funny, gentle, articulate child on the planet, the more it becomes apparent there is not such thing…so we felt there needed to be a place where there would be no judgments…” (honestbaby.com) (honestbaby.com) Yankelovich © 2007/2008 80
Slide 81: imPerfecting: The Sweet Smell of…Nothing “Last year in the United States, spending on upscale women’s “Last year in the United States, spending on upscale women’s fragrances declined, as part of a multiyear trend. The group said $1.97 fragrances declined, as part of a multiyear trend. The group said $1.97 billion was spent, down from $2 billion in 2002. billion was spent, down from $2 billion in 2002. “Like Ms. Ware, more women are forgoing scent altogether. Last year, “Like Ms. Ware, more women are forgoing scent altogether. Last year, about 15 percent of women said they did not wear fragrance, up from about 15 percent of women said they did not wear fragrance, up from 13 percent in 2003, according to a survey of 9,800 women conducted by 13 percent in 2003, according to a survey of 9,800 women conducted by NPD. NPD. “That may sound like a small number, but nationally that translates into “That may sound like a small number, but nationally that translates into two million more women who are saying ‘I don’t wear fragrance,’ ” said two million more women who are saying ‘I don’t wear fragrance,’ ” said Karen Grant, the senior beauty industry analyst at NPD. “Eighty-five Karen Grant, the senior beauty industry analyst at NPD. “Eighty-five percent of women are still buying fragrance, but an increasing number percent of women are still buying fragrance, but an increasing number tell us they are wearing fewer scents, less frequently or not at all.” tell us they are wearing fewer scents, less frequently or not at all.” (“The Sweet Smell of…Nothing,” The New York Times, 02.14.08) (“The Sweet Smell of…Nothing,” The New York Times, 02.14.08) 81 Yankelovich © 2007/2008
Slide 82: imPerfecting: “Ugly Fruit” “Waitrose, the supermarket chain associated with a certain kind of aesthetic perfection, has announced that it is to sell ugly fruit and veg at reduced prices…knobbly strawberries and bendy sticks of rhubarb will have to bear the stigma of a ‘discounted’ price tag, but still organizations such as Friends of the Earth are hailing the decision as a victory…a sign that we are beginning to accept the fact that this, actually, is what Britain's native harvest looks like when it hasn't been genetically engineered, smothered in pesticide or tarted up for a photo shoot in Elle Decoration.” (“An Idyllic Nightmare,” The Guardian, 06.21.06) (“An Idyllic Nightmare,” The Guardian, 06.21.06) Yankelovich © 2007/2008 82
Slide 83: imPerfecting: Striking a Chord? “For my money, I think it’s great when the TV world, which is always so formulaic and so predictable, veers completely out of control. It’s breathtaking TV.” Peter Carlin, TV columnist for The Oregonian, speaking of late-night TV hosts Jay Leno, Conan O’Brien, and Jon Stewart returning to the air without their writers (“Late-Night TV Returns with an Entertaining Edge,” NPR Weekend Edition, 01.05.08) Yankelovich © 2007/2008 83
Slide 84: imPerfecting: Looking Ahead Revisiting Real… imPerfection can be an improvement The fresh and unaffected, even if raw and  imperfect, is often welcome Liberate yourself from “the script” and speak  to consumers with a new spirit of collaborative,  honest engagement Tighten up on the high‐gloss language that all  too often nowadays rings hollow Give consumers leeway to see things their own  way and define things on their own terms Yankelovich © 2007/2008 84
Slide 85: Yankelovich © 2007/2008 85
Slide 86: The Revolution is Over. Consumers Won. Assuming control and then keeping it strong in many ways Consumer empowerment is now a given The only question is how empowerment will evolve  and manifest itself in the marketplace The opportunity lies in connecting with this evolution  in how consumers are engaged with brands Yankelovich © 2007/2008 86
Slide 87: Thank You! Yankelovich © 2007/2008 87