Jim Taylor Keynote

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  • Jim Taylor Keynote

    1. 1. CONFIDENTIAL, PROPRIETARY & TRADE SECRET INFORMATION This document contains confidential, proprietary and trade secret information of American Express Travel Related Services Company, Inc. (“American Express”) and its subsidiaries and affiliates, and must not be disclosed whole or in part to any third parties without prior written consent of American Express. The Emergence of the Resourceful Consumer Dr. Jim Taylor, Vice Chairman
    2. 3. Today’s Results 1 st Quarter 2009 Field <ul><li>1,539 total households </li></ul><ul><ul><li>1,387: January-February (Main Field) </li></ul></ul><ul><ul><li>152: March </li></ul></ul><ul><li>Averaged across 4 levels of discretionary income: </li></ul><ul><ul><li>Emergent Affluent: $100K to $124K (n=358) </li></ul></ul><ul><ul><li>Affluent: $125K to $249K (n=390) </li></ul></ul><ul><ul><li>Super Affluent: $250K to $499K (n=357) </li></ul></ul><ul><ul><li>Wealthy: $500K+ (n=314) </li></ul></ul>
    3. 4. <ul><li>Life Has Changed </li></ul>
    4. 5. O P T I M I S M My Future My child’s Future Extremely/Very Optimistic About…
    5. 6. R E C E S S I O N Recession will last longer than a year…
    6. 7. Depression How likely do you feel that the U.S. is heading for a depression? 35 % Extremely/Very Likely Somewhat Very Extremely Not at All Not Very
    7. 8. Nearly All Affected Q4-08 Q1-09 The recent real estate and banking crisis has affected my sense of financial security
    8. 9. Over Half Worried of Running Out Q1-08 Q1-09 I worry that at some point I could run out of money
    9. 10. <ul><li>The Spend Pattern </li></ul>
    10. 11. Projected Future Spend Among those “active” in the category -4 -7 -4 -6 Weekend getaways -4 -11 -7 -7 Vacations -3 -7 -7 -2 Business Travel 1 -10 -8 NA Home electronics 0 -8 -8 -3 Home décor & furnishings -4 2 2 15 Sep 2008 % -4 1 6 7 Jan/Feb 2009 % -5 -1 2 7 Mar 2009 % -5 4 5 14 Apr 2009 % Hybrid automobile Footwear Family car Children’s clothing Spending next 12 months, versus last 12…
    11. 12. Projected Future Spend Among those “active” in the category -13 -15 -12 -13 Handbags -8 -17 -12 -11 Resorts and fine hotels -10 -12 -11 -11 Accessories -10 -8 -9 -8 Apparel/fashion -9 -9 -10 -11 Personal leather goods -15 -10 -15 Sep 2008 % -18 -10 -10 Jan/Feb 2009 % -17 -16 -14 Mar 2009 % -17 -9 -5 Apr 2009 % Jewelry Eating in restaurants SUV Spending next 12 months, versus last 12…
    12. 13. Anticipated Spend Summary Among those “active” in the category… Does not take into account total spend per category Planned spending next 12 months, versus last 12… -6 -9 Sep 2008 -7 -9 Jan/Feb 2009 -4 -9 NA NA $ Spend Average (%) -21 Jun 2008 -5 -13 -18 Gap Average (pts) All Categories Average: Apr 2008 Mar 2008 Apr 2009
    13. 14. <ul><li>I Like My Content Control! </li></ul>
    14. 15. A Part of Life Consider self technologically intelligent 76 % Affluent+
    15. 16. Center of the Universe 79 Desktop computer 82 Laptop computer 76 High Definition or Flat Screen TV 75 Standard cell/mobile phone 75 87 Affluent+ % Wireless Internet router High speed Internet service Own…
    16. 17. A Part of Success Knowledge of technology has been important to my success 72 % Affluent+
    17. 18. Content Sharing Participate in some sort of content sharing activity on the Internet 58 % Affluent+
    18. 19. Content Sharing Activities 6 8 13 13 21 30 32 Affluent+ % Upload my own photos to a photo sharing site Add comments or postings to news or special interest stories I read on the Internet Maintain a profile on a social networking site Add comments or postings to a newsgroup, message board, online forum, Usenet group, or any other type of online discussion Contribute to a blog (not my own) by adding comments or postings Maintain my own website Maintain my own blog (web log) for others to read about myself and my opinions Internet activities currently do…
    19. 20. Knowledge Today It's more important to know how to search for a fact than it is to know a fact 79 % Affluent+
    20. 21. Website Drivers 10 Seeing ad in newspapers 15 Seeing ad in magazines 33 Someone’s recommendation 14 Email offers 10 Seeing ad on TV 5 9 13 53 Affluent+ % Advertising on other websites Search engine results Mail offers Hearing ad on radio Regularly visit websites as a result of…
    21. 22. More Efficient Life I can get information faster on the Internet than dealing directly with a company's customer service representative 90 % Affluent+
    22. 23. Online Purchasing $2,675 Amount spent online (excluding travel) 96 Made a purchase online 34 Affluent+ % Purchased luxury goods online Past 6 months…
    23. 24. Risk Managemant I research the items on the web I am going to buy to make sure that I am not taken advantage of 86 % Affluent+
    24. 25. Clicks to Bricks The quality of the store's website impacts whether I choose to shop at their retail store 42 % Affluent+
    25. 26. Content Manufacturing: Internet Activities 13 Add comments or postings to news or special interest stories I read on the Internet 13 Maintain my own website 21 Add comments or postings to a newsgroup, message board, online forum, Usenet group, or any other type of online discussion 30 Upload my own photos to a photo sharing site 32 Maintain a profile on a social networking site 6 Maintain my own blog (web log) for others to read about myself and my opinions 8 Contribute to a blog (not my own) by adding comments or postings 4 Upload my own videos to an Internet site other than YouTube.com 4 Upload my own videos on YouTube.com Q1 2009 %
    26. 27. Not Insignificant… Have friends online considered to be very close, yet have never actually met in person 15 % Affluent+
    27. 28. As is My Power to Control Content Frequently download television shows and movies from the Internet 25 % Affluent+
    28. 29. Paper Subscription to Digital 42% 48% 50% 46% 37% 47% 43% 46% Extremely Very 44% Source: 2009 study among 1,131 Zinio customers (current subscriptions/single magazine purchasers), as well as 1,100 non-customers who currently subscribe to 3+ paper magazines Likelihood of Changing Magazine Content Preferences Do It Yourself Music & Entertainment IT & Computing Hobby and Special Interest Sports Professional and Trade Money & Business Men's Interest Travel
    29. 30. Attention Paid to Digital Versus Print Ads 41% 11% 2009 2007 35% 14% Source: 2009 study among 1,131 Zinio customers (current subscriptions/single magazine purchasers), as well as 1,100 non-customers who currently subscribe to 3+ paper magazines Much more attention to ads in digital magazines Somewhat more attention to ads in digital magazines The same amount of attention to ads in digital magazines and paper magazines Somewhat less attention to ads in digital magazines Much less attention to ads in digital magazines 10% 25% 51% 8% 6%
    30. 31. I Want to Save My Magazines Source: 2009 study among 1,131 Zinio customers (current subscriptions/single magazine purchasers), as well as 1,100 non-customers who currently subscribe to 3+ paper magazines Paper Magazines Save Most Save a Few Digital Magazines Do It Yourself Magazines Music & Entertainment Magazines Home & Garden Magazines Money & Business Magazines Sports Magazines Celebrity Magazines Save Most Save a Few 99% 98% 97% 97% 96% 96% 91% 66% 77% 69% 60% 39%
    31. 32. Top Reasons to go Digital Source: 2009 study among 1,131 Zinio customers (current subscriptions/single magazine purchasers), as well as 1,100 non-customers who currently subscribe to 3+ paper magazines 58 A little bit “greener” and more environmentally friendly by going paperless 58 58 65 70 Total Acceptors % Allows me to search/retrieve previous articles in magazines that I’ve saved Allows me to easily save and archive issues of magazines that I read Provides immediate and free delivery Provides back issues to many magazines I enjoy
    32. 33. But not from TV… But the Role is Changing… 4 Appreciation for fine arts 11 Staying on top of current trends 16 A source of guilty pleasure 19 20 22 33 45 63 68 Affluent+ % Pure entertainment Background noise News/current events Watching sports Education An escape Quality programming The Role of Television…
    33. 34. A Little Segmentation
    34. 35. <ul><li>Fabulists </li></ul><ul><li>Victors </li></ul><ul><li>Givers </li></ul><ul><li>Strivers </li></ul><ul><li>Skeptics </li></ul>Segmentation
    35. 36. A Huge Shift FABULISTS Q1 2007 VICTORS GIVERS STRIVERS SKEPTICS Q1 2009 4.1MM 1.9MM
    36. 37. “…I Am Learning to Plan…” 61 My household has a monthly household budget to which we try our best to stick to 88 I have done a good job of making my household more fiscally responsible Q1-09 %
    37. 38. “…I Watch the Appeals to My Ego…” 45 60 Help me feel I own something rare 39 53 Help me feel like a leader 34 48 Help me feel privileged 34 51 Communicate that I'm successful 32 45 Communicate I'm loved 66 66 70 Q4 2007 % 50 Help me feel successful 55 Help me feel part of tradition 55 Help me feel different and unique Q1 2009 % I Like Brands That…
    38. 39. “…I Am Disconnecting From Celebrities…” Q1-08 Q1-09 Noticed a product being worn or endorsed by a celebrity/athlete that increased interest in the product:
    39. 40. <ul><li>Today’s New Resourcefulness </li></ul>
    40. 41. “Above All, You Need to Know That I Have Become Resourceful” Q1-08 Q1-09 I am looking closely at every spending category to see where we can save
    41. 42. “I Am Still Participating in Good Things” 17 21 Fashion apparel item $500+ 15 18 Designer footwear $300+ 14 15 Women's handbag $500+ 27 30 Cruise ship vacation (past 3 years) 32 36 Fragrance/cologne $50 (per oz.) 49 51 Beauty or cosmetic item $30+ 53 53 Bottle of spirits $30+ 56 Q1 2008 % 54 Vacation in a resort destination Q1 2009 % Purchased Past Year:
    42. 43. “Only Now, I Trade Off Experience…” 50 36 I would buy a really expensive item, like jewelry, at a store like Costco or Sam's Club 49 67 I depend on the salesperson to know the specific details of a product that makes it worth more 37 52 I prefer stores that are really elegant inside Q1 2007 % Q1 2009 %
    43. 44. “…But Not Quality…” Among those who spent $5,000 or more in department stores I am willing to spend more for designer brands because they are: 67 68 High quality Q1 2008 % Q1 2009 %
    44. 45. “As Long as You ‘Pay Me’ for My Demand!” 80 66 I usually wait for something to go on sale before I buy it 65 47 I shop with coupons fairly regularly Q1 2007 % Q4 2009 %
    45. 46. “I Won’t Give Up My Brand Standards…” 97 I've used and liked before 96 Reflect high craftsmanship 96 Have a reputation for good service 96 Have a reputation for the best quality 86 Reflect my values Q1 2009 % I Like Brands That…
    46. 47. “But I Will Give Up My Impulses…” I am buying fewer big ticket items now than I did a year ago
    47. 48. Importance of Internet... Summary of Very Important Top 3 Box (8, 9,10 on a 10 pt. Scale) 46 Figuring out which brands best fit my needs 63 Finding the best deals possible 26 Encountering ads that make me interested in new products and services 39 Discovering the latest trends, advances or products Affluent+ %
    48. 49. And the Irony is: People Are…
    49. 50. Feeling Pretty Good About Themselves… 81 Loyal 73 Family-focused 69 Smart shopper 68 Self-sufficient 67 Good neighbor 67 Healthy 65 Optimistic 84 Intelligent Q1 2009 % Self-Descriptors
    50. 51. …And Are Even MORE Happy Today Q1-2008 Q1-2009 Happiness Rating: Very Happy Top 3 Box (10-pt scale)
    51. 52. Driven By Women Q1-2008 Q1-2009 Happiness Rating: Very Happy Top 3 Box (10-pt scale) Q1-2008 Q1-2009
    52. 53. It’s Not About Affluence, Per Se… Q1-09 Q1-07 As I have accumulated more money in my life, I have become happier
    53. 54. It’s About “Needs-Driven Resourcefulness” 76 I take pride in my shopping skills 65 I have become a much smarter shopper thanks to today's economic situation Q1 2009 %
    54. 55. “Joint” Decision Making? Household Financial Planning Responsibilities Reality Lies Somewhere in the Middle 23 2 Spouse has sole/most responsibility 56 39 We share responsibility equally 21 59 I have sole/most responsibility She Says % He Says %
    55. 56. “Joint” Car Buying? Household Car Buying Responsibilities 11 2 Spouse has sole/most responsibility 82 63 We share responsibility equally 7 35 I have sole/most responsibility She Says % He Says %
    56. 57. Kids Weigh In More Too Q1-2008 Q1-2009 Like brands that: Are preferred by my children Among those with kids <18 in the household
    57. 58. Kids Weigh In More Too 19 % Q1-2009 (49 % Top 3 Box) Childs Role is Extremely/Very Important: Buying Cars Among those with kids <18 in the household
    58. 59. <ul><li>A Few Thoughts </li></ul>
    59. 60. Shopping is Selective Outreach: The Trillion Dollar Question--How Do We Get Them To Choose Us? 14 Sales and product offers I receive in emails 53 Results from using Internet search engines 13 Advertising I see at other websites Q1 2009 % Summary of Regularly Visit
    60. 61. A World of New Resourcefulness… We Need
    61. 62. <ul><li>Position Against Need </li></ul><ul><li>Sell to Happiness </li></ul><ul><li>Understand the Family Decision Process </li></ul><ul><li>Respect the Role of Women As Arbiters of Need </li></ul><ul><li>Make Sure Your Brand Insures Risk </li></ul>Suggestions
    62. 63. <ul><li>Communication Failure Is a Brand Killer. </li></ul><ul><ul><li>Invest in trusted channels </li></ul></ul><ul><ul><li>Simplify </li></ul></ul><ul><ul><li>Reduce hyperbole </li></ul></ul><ul><ul><li>Be clear </li></ul></ul><ul><ul><li>Be open </li></ul></ul><ul><ul><li>Be Happy! </li></ul></ul>…And
    63. 64. Purchasing Forecast: Back to Normal (e.g. 1998) -5 %* Purchasing in next 12 months (16 category average) Q1 2009 * NOTE: Estimate unadjusted for variable impact of savings rate, employment adjustment or tax adjustments.
    64. 65. Winners: Single Points of Light <ul><li>Performance is necessary. </li></ul><ul><li>Craftsmanship is quality. </li></ul><ul><li>Saving is virtue. </li></ul><ul><li>Communication is value. </li></ul><ul><li>Detail is angelic. </li></ul>
    65. 67. THINKMANSHIP…
    66. 68. IMAGINATION…
    67. 69. ENGAGEMENT…
    68. 70. AND CONFIDENCE
    69. 71. CONFIDENTIAL, PROPRIETARY & TRADE SECRET INFORMATION This document contains confidential, proprietary and trade secret information of American Express Travel Related Services Company, Inc. (“American Express”) and its subsidiaries and affiliates, and must not be disclosed whole or in part to any third parties without prior written consent of American Express. Thank You. www.HarrisonGroupInc.com

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