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Pivotal Point Consumer
- 1. Deep view and reach into
76% of American households
Discovering The Pivotal
Point Consumer™
A Milestone Study on American Shoppers
Who Drive CPG Brand Volume
© Pointer Media Network. 2008. All Rights Reserved.
- 2. About The Study
• Groundbreaking study about today’s surprisingly
small consumer concentrations for CPG brands
• Unprecedented in its scope and granularity:
Tracks purchases of 54 million American
shoppers across 12 months and 1,364 brands
• Debuts the Pivotal Point Consumer™, the buyers
who drive 80% of brand volume
• Analyzes established brands, new products,
brand extensions and emerging preference
categories, e.g. organic, green, heart healthy, etc.
© Pointer Media Network. 2008. All Rights Reserved. 2
- 3. Study Partners
Pointer Media Network is the world’s largest and most
precise addressable media network.
• Tracks purchases of an estimated 76% of American households
• Reaches 140 million shopper IDs
• Delivers compelling ads and offers based on actual purchases
• Powered by Catalina Marketing, global leader in behavioral
marketing
The CMO Council is the world’s leading peer-powered
network of corporate marketing executives
• Drives thought leadership around issues critical to marketing
executives
• 3,500 members globally control over $100 billion in annual
marketing spend
© Pointer Media Network. 2008. All Rights Reserved. 3
- 4. Why This Study Is Important
Until now, lack of census level data hid truth about
1 Pivotal Point Consumer
Reality of small consumer penetrations surprises
2 even senior CPG executives
Requires new strategies from brand managers,
3 advertisers & media planners
• Mandate for precision marketing
• Need to understand and engage Pivotal
Point Consumer
© Pointer Media Network. 2008. All Rights Reserved. 4
- 5. Findings At A Glance
• Age of fragmentation and targeted brands reducing size
of consumer concentrations
• Only 2.5% of shoppers account for 80% of average CPG
brand’s volume
• Only 25 of 1364 brands studied had a Pivotal Point
Consumer™ base over 10% of shoppers
• New brands and brand extension have even smaller
penetrations
• Pivotal Point Consumers have high per
capita value for CPG brands
• But they do not fit neatly into demographic
targets
© Pointer Media Network. 2008. All Rights Reserved. 5
- 6. The Age of Fragmentation:
What Mass Market?
• Consumers empowered by unprecedented
choice in product and media selection
• CPG manufacturers addressing more granular
consumer preferences and needs with
thousands of new brands and brand
extensions
• More than 25,000 CPG products debuted in
2007; 10 times the number in 1980
• Average household receives over 100
television channels, while spending more time
on the Internet
• Identifying and reaching your consumer more
challenging then ever before
© Pointer Media Network. 2008. All Rights Reserved. 6
- 7. New Products Rely On
Smaller Concentrations
Among nine of the products
IRI identified as 2007 new
product Pacesetters, only
one had a Pivotal Point
Consumer™ base of more
than 3%¹
© Pointer Media Network. 2008. All Rights Reserved. ¹ Nine of the ten IRI Pacesetters were studied 7
- 8. Line Extensions vs. Master Brand
Concentrations – Coca-Cola
Coca-Cola® label brands
have a combined Pivotal
Point Consumer™ base of
18.8%, but among sub-
brands only Coca-Cola®
Classic has a base of
more than 10%
© Pointer Media Network. 2008. All Rights Reserved. 8
- 9. Line Extensions vs. Master Brand
Concentrations – Tide
Tide® label brands have a
combined Pivotal Point
Consumer™ base of
12.2%, but sub-brands all
have a base under 2.5%
© Pointer Media Network. 2008. All Rights Reserved. 9
- 10. Emerging Categories – Green Products
As a niche segment, Green
product brands depend on
a smaller Pivotal Point
Consumer™ concentration
© Pointer Media Network. 2008. All Rights Reserved. 10
- 11. Emerging Categories – Heart Healthy
Heart Healthy orange juice
brands underscore the
smaller penetrations
in emerging preference
categories.
© Pointer Media Network. 2008. All Rights Reserved. 11
- 12. Valuing The Pivotal Point Consumer™
Pivotal Point Consumers
frequently have a high per
capita value to brands,
highlighting the need to
understand and reach them.
© Pointer Media Network. 2008. All Rights Reserved. 12
- 13. Pivotal Point Consumers
Are Hard To Reach
Preliminary research by
Pointer Media Network
indicates that traditional
demographic targeting
misses as much as 76% of
Pivotal Point Consumers
© Pointer Media Network. 2008. All Rights Reserved. 13
- 14. Conclusion – Precision and Personalization
Are Key
• Today, all CPG brands are targeted
• The transition from mass to micro-markets
is well underway
• Marketers must respond with greater
precision and personalization in order to
reach the right consumers
• Targeted brand messaging and
addressable media will be critical reaching
the right consumers
© Pointer Media Network. 2008. All Rights Reserved. 14