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  • 1. The Consumer Of Today What Are They Possibly Thinking? Billiard Congress of America Lynn Switanowski July 14, 2011The Trauma Of Change “The Future Has A Way Of Arriving Unannounced” ~George Will “We PLAN for your PROFITS” www.cbc-group.net 1
  • 2. The Pace Of Change Is Accelerating Every Year “Sometimes In Our Confusion, We See Not The World As It Is, But Through Eyes Blurred By The Mind.” -unknown “We PLAN for your PROFITS” www.cbc-group.netWhy Listen To Me? •25+ Years Retail Industry Experience •Fortune 100 Senior Sales and Marketing Executive •Small Business Strategist •Helping Independent Retailers Create Profitable Strategy, Inventory and Marketing Programs Since 2004 2
  • 3. Seminar Objectives •What Motivates Each Generation to Spend Money •Understand Consumer Shopping Habits- Today and in the Future •Learn How to Anticipate Consumer’s Needs “We PLAN for your PROFITS” www.cbc-group.net Consumers Are Buying Premium Or Value With The Mid-Tier Being Squeezed • The US Is Becoming Premium An “Hourglass • Highly Targeted Economy” • High Experience • Higher Prices • Manufacturers And Retailers Are Trying Mainstream Products To Capture This Marginalized Fickle Consumer With A Wider Range Of Products • Low Price • Mass, Dollar • Private Label ValueSource: Market Research “We PLAN for your PROFITS” www.cbc-group.net 3
  • 4. To Survive – And Thrive - Businesses Must MeetEmerging Consumer TrendsDesire To Belong To A Community Consumers Want To Interact With Products, And Partner In The Retail Experience Brands Need To Evoke A Sense Of Purpose And Inspiration Consumers Need To Emotionally Feel Switching Costs When Leaving Community Seek An Immersive Retail Shopping Experience Stores Need To Be Destinations, Not Just Product Showcases Stores Should Motivate Consumers Through Education, Experience And Trust “We PLAN for your PROFITS” www.cbc-group.netLet’s Explore Consumer Change Drivers • Changing Demographics of • Changing Behavioral Trends Large Market Segments – Interconnected And – Boomers Rule Involved – Y - Now – Personally Speaking – X – Tra Special • Additional Demographic Trends • Other Factors – Household Size – Supplying The Answers – Shifting Income – Resources Rock – Service Sector Explosion – Culture Clamor – Boomers Rule – Y - Now – X – Tra Special “We PLAN for your PROFITS” www.cbc-group.net 4
  • 5. Let’s Explore Consumer Change Drivers• Changing Demographics of • Changing Behavioral Trends Large Market Segments – Interconnected And – Boomers Rule Involved – Y - Now – Personally Speaking – X – Tra Special• Additional Demographic Trends • Other Factors – Household Size – Supplying The Answers – Shifting Income – Resources Rock – Service Sector Explosion – Culture Clamor – Boomers Rule – Y - Now – X – Tra Special “We PLAN for your PROFITS” www.cbc-group.netWho Are We Talking About?Baby Boomers Generation X Generation YBorn Between Born Between Born Between 1946-1965 1965-1977 1977-1994 79 Million 48 Million 70 MillionBoelter + Lincoln - May 2008 “We PLAN for your PROFITS” www.cbc-group.net 5
  • 6. Boomers Rule; More Money, Time And Choices• Highly Educated, More Economically Empowered And More Self-focused• First Wave Of Successful Female Boomers With The Money And Resources• View Themselves As Younger Than They Really Are (By 20 Years); 50 is the new 30• Healthier And Active; Expected To Outlive Prior Generations• New Desires: Experiential Engagements, Quality Of Life Improvements From Products And Services “We PLAN for your PROFITS” www.cbc-group.netGen X - er’s; Connected And Practically Minded • First Latchkey Children • Maintain A Cautious Economic Outlook • Prefer Products Based On Practicality • Heavy Users Of Communication Tools To Stay In Touch Better • Will Be Primary Buyers Of Most Goods By 2012 • Maintain Balance Between Work And Leisure • May Choose To Remain Living At Home With Parents Longer “We PLAN for your PROFITS” www.cbc-group.net 6
  • 7. Gen Y; Let’s Talk About Me, Right Now• Spending Habits Emulate Boomer Parents• Everything Is Interconnected, Anything Goes, Everything Is Available And Nothing Is Private• Lack Of Loyalty To Products/Services• Interested In Peer To Peer Experiences• Socially Conscious• Savvy Shoppers; Place A High Degree Of Importance On Individualism, Self-fulfillment And Personal Involvement In The Creation Process “We PLAN for your PROFITS” www.cbc-group.netMillenials; Text Me To Connect With Me “We PLAN for your PROFITS” www.cbc-group.net 7
  • 8. Let’s Explore Consumer Change Drivers • Changing Demographics of Large • Changing Behavioral Trends Market Segments – Interconnected And – Boomers Rule Involved – Y - Now – Personally Speaking – X – Tra Special • Beyond Market Segment Trends • Other Factors – Household Size – Supplying The Answers – Shifting Income – Resources Rock – Service Sector Explosion – Culture Clamor “We PLAN for your PROFITS” www.cbc-group.netHousehold Size Reductions Smaller Households With Reductions;Fewer Married Heads Leads The TrendSmaller Households Create Opportunities For More Personalized Products And For Experiences That Are Fun For One “We PLAN for your PROFITS” www.cbc-group.net 8
  • 9. Shifting Income Lifestyle Spending Shifts And Declines Income;As Consumers Age “We PLAN for your PROFITS” www.cbc-group.netService Sector Explodes; More Help, IntegratedOfferings• Spending On Goods Will Continue To Lose Ground To Spending On Services• Older Generations Becoming More Service Oriented – Do It Yourself Is Gone – Do It For Me Is Next• Younger Generations Seek To Integrate Good, Services And Experiences To Satisfy Consumer Needs; Best In Class Retailers Will Incorporate Services And Experiences Into Their Concepts “We PLAN for your PROFITS” www.cbc-group.net 9
  • 10. Culture Clamor An Increasingly Diverse Population; Clamor:Hispanic Demographic Shows Highest Growth Percentage Of US Population By Race/Ethnicity 2012 Asian American 6% African American 13% White 65% Hispanic 16% Source: US Census Bureau “We PLAN for your PROFITS” www.cbc-group.netLet’s Explore Consumer Change Drivers• Changing Demographics of Large • Changing Behavioral Trends Market Segments – Interconnected And – Boomers Rule Involved – Y - Now – Personally Speaking – X – Tra Special• Additional Demographic Trends • Other Factors – Household Size – Supplying The Answers – Shifting Income – Resources Rock – Service Sector Explosion – Culture Clamor “We PLAN for your PROFITS” www.cbc-group.net 10
  • 11. Interconnected and Involved Social Status Is About Involved;Who You’re Connected To It’s Not Who You Know, It’s Who Knows You “We PLAN for your PROFITS” www.cbc-group.netPersonally Speaking Customized Solutions Speaking; • Value Proposition Guiding Purchases Changes – Heightened Emphasis On Personalization – Product And Service Solutions Designed For One Person At A Time • Consumers Demand Niche Products, Experiences And Services Uniquely Suited To Their Tastes, Interests And Aspirations. Power Shifts From Retailer/Manufacturer To Consumer “We PLAN for your PROFITS” www.cbc-group.net 11
  • 12. Let’s Explore Consumer Change Drivers• Changing Demographics of Large • Changing Behavioral Trends Market Segments – Interconnected And – Boomers Rule Involved – Y - Now – Personally Speaking – X – Tra Special• Additional Demographic Trends • Other Factors – Household Size – Supplying The Answers – Shifting Income – Resources Rock – Service Sector Explosion – Culture Clamor “We PLAN for your PROFITS” www.cbc-group.netSupplying The Answers Consumers Have Hand In Answers;Creating End User Products• Individual Interactions Between Retailers And Suppliers• Retail Evolving Toward True Demand; Not Shelf Space• Value Chain Becomes More Intimate; Consumers Share Information; Expect Value In Return• Extreme Consumers Seek Out Opportunities For Involvement That Brings Product To MarketConsumer Shift To Products And Services That Fill Exact Need – Better & Quicker “We PLAN for your PROFITS” www.cbc-group.net 12
  • 13. Resources Rock Sustainability Rules The Day Rock;• Consumer Of 2012 Won’t Be Taking Resources For Granted• Corporate Social Responsibility And Product Sustainability Will Become More Important Factors In Purchase Decisions• Consumers Will Employ Triple Bottom Line Scorecard; Performance Will Be Measured On – Environmental – Social – Financial Scales Companies Will Be Measured Based on How They Deliver To The Planet, The People And A Profit “We PLAN for your PROFITS” www.cbc-group.netTraditionally, Consumers Found Value In ProductionAnd Accessibility Aspects Of Value CurveBusiness Value Curve Today Innovation Production Accessibility Experience • Features • Speed • Effort • Shopping • Functions • Quality • Selection • Buying • Fashion • Consistency • Price • Using • Customization • Emotional • Personalization connections • Self-expression Value added at the right by the right place at the product to the right price right customer at the right time “We PLAN for your PROFITS” www.cbc-group.net 13
  • 14. Going Forward Consumers Will Seek Value inInnovation and Experience Aspects Of Value CurveBusiness Value Curve in 2012 Innovation Production Accessibility Experience • Features • Speed • Effort • Shopping • Functions • Quality • Selection • Buying • Fashion • Consistency • Price • Using • Customization • Emotional • Personalization connections • Self-expression ..Improving Shopping And Value Added End Use By Innovating Experience To Increase And Relevancy Connections “We PLAN for your PROFITS” www.cbc-group.netSuccessful Businesses Must Focus on Innovation andDeliver an “Experience” Deliver Breakthrough Products/Services • Work With Consumers To Create New Innovative Products • Develop Open Source Like Communities To Create Breakthrough Ideas Marketers Must Evolve From A Transactional Mindset To A Relationship Approach • Establish A Customized Relationship With Every Customer To Increase Customer Retention; • Create “Stickiness” Through Electronic Marketing Retailers Can Garner A Larger “Share Of Wallet” From Each And Every Customer To Drive Sales Growth •Shift From What Moves Product To What Moves People •Drive Short Term Incremental Profitability With Existing Customers Rather Than By Attempting To Attract New Customers “We PLAN for your PROFITS” www.cbc-group.net 14
  • 15. Is Your Business Ready For the Future? “We PLAN for your PROFITS” www.cbc-group.netIs Your Business Ready For the Future? “We PLAN for your PROFITS” www.cbc-group.net 15
  • 16. We Talk Retail In These Places – Join Us @RetailHelper http://cbcgretailreport.blogspot.com www.linkedin.com/in/lynnswitanowski http://www.facebook.com/CBCGroup 16