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Consumer Types White Paper
Consumer Types White Paper
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Reaching the Undaunted Striver...................................................................................................... 12 A Highly-Accessible Consumer .................................................................................................... 12 Chart Chart Influential Marketing Sources for Undaunted Strivers Innovation Adoption Lifecycle 13 12 Striving to Be Early Adopters ....................................................................................................... 12 Seeking to Set Trends, but Highly Influenced by Outside Factors ............................................. 13 Demographics 14 Chart Geographic, Age, and Employment Distribution of Undaunted Strivers 14
Using Consumer Types to Succeed .................................................................................................. 15 About the Authors ............................................................................................................................ 16 About Euromonitor and Passport Survey.........................................................................................17
Euromonitor International
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INTRODUCTION
Marketing teams, brands, and retailers are continually searching for new and innovative ways to effectively find and appeal to their target market. This often means profiling consumers based on specific demographics, such as young women or retirees, and using characteristics common to the group to determine which products and marketing techniques may be a good fit. Rather than taking a top-down approach and grouping consumers based on their demographics, this white paper introduces a bottom-up method of targeting consumers through in-depth profiles of four distinct consumer types. These types were created by analysing a number of personality traits, characteristics, and preferences from Euromonitor Internationals Annual Survey of 16,000 global online consumers. The aim of this white paper is to demonstrate the use of consumer types to profile shoppers and gain insights into their preferences and behaviours, ultimately helping companies, brands, and retailers better reach their target market. This white paper has five main parts: 1. Introduction to consumer profiling 2. Overview of Euromonitor Internationals four consumer types 3. Personality traits, preferences, and attitudes of one consumer type, the Undaunted Striver 4. Buying behaviours and motivations of the Undaunted Striver 5. Implications and strategies for growing business with the Undaunted Striver
USING CONSUMER TYPES TO GO BEYOND DEMOGRAPHICS Choosing between a bottom-up or top-down approach
Many companies target consumers based on key demographics, such as age or gender, operating under the assumption that those within the same demographic group have similar preferences and buying behaviours. While this may often be the case, there is almost always a large degree of variation within these groups. For example, not all men under the age of 30 may be looking for the same thing when shopping for a new phone. Some may want the latest, trendiest smartphone, while others, regardless of income, are looking for the cheapest available option that can simply make and receive calls. In this case, a marketing strategy that assumes all men under 30 are trend-seekers would fall flat with those hoping to save money. Of course, most marketers already understand the risks of targeting consumers based solely on broad demographic groups and use other strategies to pinpoint and attract their key market. An alternative, bottom-up approach allows natural groupings of consumers to form around common traits and preferences. This ensures that consumers in each segment have similar buying behaviours and are looking for the same product features, giving retailers and brands essential information to tailor their marketing accordingly. However, this approach can often make it more difficult to actually find the targeted consumers, particularly if easily-identifiable demographic traits, such as age or gender, are not tied to these segments.
Euromonitor International
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Euromonitor International
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Euromonitor International
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sophisticated, forward-thinking, and in the know. Not only are Undaunted Strivers willing to pay more to keep up with the current trends, they believe their financial ability to do so is another signal to others of their success in life. These individuals are also frequent visitors to the gym, doing their best to maintain healthy living habits and ensure their bodies are in top shape. Beyond conspicuously purchasing brand-name products, Undaunted Strivers also seek to stay at the forefront of new behaviours or activities before they become popular with the average consumer. Over the past decade this has meant embracing rapid advancements in technology and communications, particularly the explosion of social media. Undaunted Strivers enjoy posting content and connecting with others on the hottest social media sites, giving them a new platform for garnering attention and spotting trends. Chart Status and Consumerism Traits of the Undaunted Striver
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BUYING BEHAVIOURS OF THE UNDAUNTED STRIVER What are Undaunted Strivers doing with their dollars?
Before creating a strategy to attract and market to Undaunted Strivers, it is critical to have an understanding of how these consumers spend their money and what motivates them to do so. This information will help companies, retailers, and brands identify opportunities to expand existing sales and even grow business in a new market or category. This section profiles the buying behaviours of Undaunted Strivers in two areas of consumer life: healthy living and technology. Exploring consumer behaviours in these areas informs not only c0mpanies in directly-related industries, such as consumer health and consumer electronics, but also provides insights into this groups spending and preferences that reach far beyond healthy living and technology.
Euromonitor International
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Chart
Important Health Factors to Undaunted Strivers Eating fruit and vegetables Regular exercise Drinking plenty of water Access to medical care Limited fat consumption Not smoking Limited daily stress levels Limited salt consumption Limited alcohol consumption
Taking dietary/nutritional supplements Limited processed food consumption 0% 20% 40% Important 60% 80% 100%
Very important
Source: Note:
Euromonitor International Consumer Survey - Annual Survey 2011 Showing percent of Undaunted Strivers who agree that the indicated factor is important or very important to their health.
Passion for exercise Undaunted Strivers tend to be very active individuals; almost all exercise at least weekly, and often daily. While activities such as yoga, walking, and dancing are their preferred forms of exercise, these consumers can also be found at gyms, running in races, and on local sports teams. Their willingness to spend on potentially expensive gym memberships or fitness classes indicates that Undaunted Strivers would also be willing to spend on other fitness or healthrelated services, such as spa treatments, nutritional counselling, or personal training sessions. In particular, these consumers are prime candidates for celebrity-endorsed workout programs, perhaps sold on DVD or streamed online. Undaunted Strivers have high aspirations to attain the perfect body and connecting a specific fitness product or service with a celebrity they admire (or whose body they admire) would be a powerful marketing tool.
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Individual sports
Team sports
Euromonitor International Consumer Survey - Annual Survey 2011 Showing percent of Undaunted Strivers who do the indicated activity at least once a week or more frequently. Other physical activities include yoga, walking, dancing, etc. Individual sports include running, cycling, etc.
Increasing diet and weight loss product sales to Undaunted Strivers In addition to regular exercise, Undaunted Strivers turn to healthy eating in order to maintain or improve their personal health and external appearance. However, many in this group are not completely satisfied with their current balance of exercise and eating; almost half are on a diet and actively trying to lose weight. Given their concern with personal image, it is unlikely that this interest in dieting will diminish anytime soon. Indeed, Undaunted Strivers are prime targets for companies hoping to launch new diet or weight loss products. Just as they seek to follow the latest trends in technology, apparel, and green living, Undaunted Strivers hoping to lose weight will first look for dieting plans that are getting the most attention in the media. These consumers are willing to spend money on a diet that offers guaranteed results, particularly if this guarantee comes with a celebrity endorsement. Indicators of healthy food Their interest in healthy living, particularly in eating well, means that Undaunted Strivers are often willing to spend more on foods that they consider to be healthy. It is, therefore, important for food producers and retailers to understand the indicators Undaunted Strivers use to determine whether a food is healthy when seeking to market to this consumer group. At the top of the list is presence of vitamins; Undaunted Strivers almost universally agree that vitamins are an important indicator of healthy food. Beyond vitamins, this group looks for food products with no added fat and those that are supported by a health organization. Perhaps most importantly, at least for producers and retailers, is the fact that more than half of Undaunted Strivers can be persuaded of a products healthy attributes simply by looking at its packaging. This means that, with trustworthy packagingperhaps highlighting one or more of the previously-discussed healthy food indicatorsfood producers and retailers should have great success appealing to the healthconscious nature of Undaunted Strivers.
Euromonitor International
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Undaunted Strivers Perceptions of Healthy Food Product Indicators Contains vitamins Has no added fat Is supported by a health organization Its packaging makes me trust it Has no added sugar
20%
40%
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100%
Euromonitor International Consumer Survey - Annual Survey 2011 Showing percent of Undaunted Strivers who agree that the listed factor is an indicator of a healthy food product.
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Chart 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Read reviews Research big Buy Order Buy a Buy groceries of products or ticket items something takeaway physical item online services and/ or visit a online that is food & drink (other than online price downloadable groceries) comparison online website
Source: Note: Euromonitor International Consumer Survey - Annual Survey 2011 Showing percent of Undaunted Strivers who do the indicated online shopping activity at least monthly, if not more frequently.
Social media provides an ideal outlet (and information source) for outgoing Undaunted Strivers Already incredibly outgoing by nature, social media has given Undaunted Strivers another outlet to connect with others and broaden their network. It should come as no surprise, therefore, that these consumers are among the most active on social networks such as Facebook; more than 80% visit these sites at least weekly. Undaunted Strivers are also regular bloggers and microbloggers, using platforms such as Twitter to share thoughts and opinions with the world. Chart 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Visit a social networking website
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Euromonitor International Consumer Survey - Annual Survey 2011 Showing percent of Undaunted Strivers who participate in indicated social media activity at least weekly, if not more frequently.
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Influence of social media high among Undaunted Strivers Not only are Undaunted Strivers frequent social media users, they also put much faith and trust in the information they find on social media sites. Nearly half of Undaunted Strivers turn to social media as a first source to find out if something is wrong or untrue about a product or brand. Even further, the same number trust social media reviews as much as recommendations from friends or family. A large group of Undaunted Strivers even trust social media more than TV or print. The upshot of this for retailers and companies hoping to attract this consumer group is the need to innovate marketing and customer interactions to include social media. Brands that expand their social media presence and monitor (and actively respond to) criticisms and complaints shared by customers on social media platforms should be able to attract, or at least stay top of mind with, Undaunted Strivers. Chart Attitudes toward Social Media among Undaunted Strivers I can find comments and tips from people like me easily online If something is wrong about a product or company I will find out immediately through social media I trust social media reviews as much as recommendations from friends or family Social media help me decide what to buy
I trust social media more than TV or print Blogs tend to cover topics of specific interest to me 0%
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10%
20%
30%
40%
50%
60%
Euromonitor International Consumer Survey - Annual Survey 2011 Showing percent of Undaunted Strivers who agree with the indicated statement regarding social media.
Striving to keep up with the latest consumer electronics Smartphones, tablets, and computers used to shop online and access social media sites are not the only consumer electronics of interest to Undaunted Strivers. Indeed, these consumers look for the most-advanced technology in all areas of life. The homes of Undaunted Strivers are likely to contain large, flat-screen HD televisions and expensive cappuccino makers. Their cars may have elaborate stereo systems and built-in, touch-screen GPS navigation. Undaunted Strivers might carry a WIFI-enabled DSLR camera, enabling them to take premium-quality photos they can instantly share on social networks. Even with their existing set of products, there are myriad opportunities to entice Undaunted Strivers with an even wider variety of consumer electronics and appliances. Because these consumers are continually looking for ways to make their lives easier, electronic devices that share information between one another and are easily integrated would be an ideal fit. Similarly,
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smart appliances, such as refrigerators or ovens that can communicate with a smartphone and be controlled remotely, would also appeal to this group.
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are the very first to adopt a new product (e.g., the people who were using Apple iPods in 2002) to the laggards who are the last to catch on to a new trend that has already been widely adopted by the vast majority of consumers (e.g., the people who began using Apple iPods in 2012). As much as they hope to be among the first to adopt a new product, Undaunted Strivers tend to fall in between the early adopters and the early majority on the curve, with the majority of them in the latter category. These consumers look to follow emerging trends they see identified in magazines, on television, and online. Indeed, whether they are conscious of it or not, Undaunted Strivers are heavily influenced by marketing campaigns, celebrities, and even other consumers. Their heavy reliance on these information sources means that Undaunted Strivers are often only exposed to a product once it is on its way to becoming a popular trend and has gained wide exposure in the media. Chart Innovation Adoption Lifecycle
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Adapted from Diffusion of Innovations, Everett M. Rogers, Free Press of Glencoe, 1962
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Effectively advertise to promote the notion of standing out Undaunted Strivers seek to be the first among their friends to have the latest smartphone or try the hottest new fitness class. They want to stand out and be regarded within their social group as a trend-setter or early adopter. An effective advertisement that draws on these desires would be one in which a user of a particular product or service is seen standing out from the crowd or going against a trend that everyone else is following. This approach will also appeal to the Undaunted Strivers fear of missing out. They may even be more likely to purchase a product or service posed to them (by a trusted brand or marketing source) as new or cutting-edge if they are also afraid that they need to act now or others may beat them to it.
Demographics
Beyond their characteristics and priorities, Undaunted Strivers share several demographic traits. At a high level, this group tends to be married, young, working full-time, and living in emerging markets such as India, China, or Brazil. Chart Geographic, Age, and Employment Distribution of Undaunted Strivers
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The concentration of Undaunted Strivers in emerging markets, and their widespread absence in developed countries, is likely linked to recent economic development and opportunities in these markets. Economic growth in developed countries has stagnated over the past several years, often accompanied by high levels of youth unemployment. However, recent growth in emerging markets, particularly the three highlighted above, has been strong. An expanding middle class of consumers with new levels of disposable income, chief among them the Undaunted Strivers, has attracted companies and brands that were previously focused solely on shoppers in developed countries. Many of these emerging markets are newly-opened to foreign businesses, whether due to changes in government policy or simply an improvement in infrastructure, and companies moving in have had considerable success selling to consumers there, particularly Undaunted Strivers. The relative youth of this consumer group means opportunities for retailer growth and expansion will remain robust in the coming years. Brands able to build loyalty with Undaunted Strivers now will enjoy their business in both the short- and long-term. Indeed, as these emerging market economies continue to strengthen and income levels rise, even more consumers may become Undaunted Strivers, newly able and eager to spend their earnings on brand-name products and services. Bottom line an attractive group of consumers (and not just physically) Undaunted Strivers, employed, young, and optimistic, now make up the largest segment of online consumers in emerging markets. With an average household income of US$52,489, Undaunted Strivers tend to have a purchasing power that is slightly higher than their counterparts within other consumer types. When combined, these factors make this group one of the most attractive for companies hoping to grow their sales and expand into new, previously untapped, markets.
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