The document discusses how consumer definitions of value have expanded beyond just price. It provides several examples of brands that have found success by offering additional values like convenience, choice, peace of mind, quality, and experience. Specifically, it highlights how Tide Pods, Keurig cups, Wendy's value menu, JetBlue's flight packages, Greek yogurt, and Tasty Burger's dining experiences provide consumers value through these expanded definitions rather than just lower prices. The key challenge for brands is helping consumers feel they are getting value-added products while still watching their budgets.

1. The
Redefinition
of Value
What does value mean to today’s
consumer
A Presentation by: Anya C. Gonzales

2. How Does Your
Brand Provide
Value?

3. Many Brands Do Not Know
Or Think That Value Only
Equals Money

4. This Mindset is Understandable
-Unemployment is still high at
7.6%
-58% of consumers are
budgeting more than they did in
the previous year, up 6% from 2
years ago
-19% of consumers follow a
strict weekly/ monthly budget for
clothing up 15% from July 2010
-28% of consumers follow a
strict monthly/weekly budget for
food as of Feb 2012 up from
23% in July 2010

5. BUT…
Simply offering discounts is
not enough

6. Why?
Consumers are
spoiled.

7. Let’s Look At

8. When They Changed Their Strategy
From
Frequent
Discounts
Everyday Low
Prices
Their Sales
Flopped!

9. Why
?

10. The Take-Away?
JC Penney created
the value of “a good
find”
Change of
strategy

11. What can we learn
from JC Penney?

12. Brands need to find more
ways to offer value.

13. Value Can Stand For
• convenience
• being inexpensive by comparison
• greater choice
• peace of mind
• quality
• an amazing experience

14. CONVENIENCE

15. Which One Is Cheaper?

16. Consumers Pay More For Pods

17. Convenience Proof Points
 Consumers are willing to pay more
for this product because it gives
them the value of convenience.
 For the brand, Tide pods has
generated $31 million in sales from
the time it first appeared in March
2012 to June 2012.
 For P&G, it's been a breakout hit
that rocketed to $500 million in U.S.
sales in only about a year

18. Which Room Looks Better?
Liquid Pods

19. INEXPENSIVE BY
COMPARISION

20. Addiction Central
The biggest legal addiction in the world is: Coffee

21. The Average American Spends $1000. Per
Year On Coffee

22. The Price of Coffee
-The average cup of coffee at a shop costs
$2.45
-Home-brewed coffee costs about .37 cents a
cup
-BUT, there is a middle ground

23. Keurig Cups
Cost = $1.00 a cup

24. Consumers want affordability and
indulgence

25. GREATER CHOICE

27. Which Brand Offers The Best Deal?
-MacDonald’s value menu only offers about
ten items for $1.00 = CHOICE
-Burger King offers a lot of options but the
prices are high compared to other value
menus = SAVINGS
-Wendy’s offers the most choice for the cost of
their value menu items = CHOICE+SAVINGS

28. But Even Wendy’s Needed To Burn To
Learn
Start of year: They advertised
the value menus
Later on: They decreased
advertising but sales slowed
In the end: They returned to
promoting the value menu

29. Wendy’s Value Menu Offers

30. PEACE OF MIND

31. Have You Ever Been Late For Flight?

32. People Want Less Traumatic Air Travel
JetBlue’s Grab and Go Pack
-Base fare for 10 nonstop,
one-way flights
-You can book a flight up to 90
minutes before travel
-You can lock in on low ticket
fares for an extended period
of time.

33. Pay More Upfront but Get More Peace
of Mind

34. QUALITY

35. Let’s talk about Greek Yogurt
Greek yogurt is about
40¢ more than standard
yogurt
BUT
It Is the only growth driver
in the category.

36. Why Do Consumers Enjoy Greek
Yogurt

37. EXPERIENCE

39. Why Talk About Tasty Burger
-Consumers are dining out less
to save money
-Food service brands need to
find ways of offering
“something extra” that
consumers are not likely to find
at home.
-How? Through special event
nights or sponsoring a
celebrity chef etc.

40. Tasty Burger Offers An Experience

41. Food And Fun Creates An Experience

42. What Can We Learn?
Consumers are of two
minds:
They are more budget
conscious
BUT want to purchase
value-added products

43. What Are The Challenges and The
Opportunities
The challenge & opportunity:
Help consumers reconcile the
competing mindsets of wanting
to save in a shaky economy and
still wanting to indulge.

45. THANK YOU
Any Questions or Comments?