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Segmentation Materials
Segmentation Materials
Segmentation Approach
Integration
What is Segmentation?
Available Methodologies
Segmentation
October 8, 2010 Page 3 Confidential & Proprietary
Methodology Copyright © 2008 The Nielsen Company
What is
Segmentation?
Group
B
Group
A
Targeting
Tactics
Group
C
Why do
people buy How can I
the category What new best target
and my products my
brands? should I be consumers?
launching?
Behavioural
Share Gain
Attitudinal Preference
w/ Survey
Product
w/ Market
Trip Structure
Behavioural
Share Gain
Attitudinal Preference
w/ Survey
Product
w/ Market
Trip Structure
Attitudinal
Segmentation
Segmentation
Custom
Scoring &
Segmentation
Activation
Client
Syndicated
Proprietary
Segmentation
Segmentation
Behavioural
Share Gain
Attitudinal Preference
w/ Survey
Product
w/ Market
Trip Structure
Behaviorally: A behavioral
segmentation groups consumers
together who purchase similarly. For
example, if Household A and
Household B both purchase kids
yogurt, they would likely be in the
same consumer segment. ShareGain
and Preference Segmentation are two
types of behavioral segmentations.
Overlay
demographics
and/or attitudes
Behaviour
Preference
Segmentation
Overlay attitudes
Households Spectra
55,000 post-static 117 BehaviorStages
25 Lifestyles
Household Demographics
Aggregates Race, Origin, Region
10,000 approximate
Age - 45-49
Race – White
HH54,997 Kids – 12+ Years Old
Origin – Hispanic HH_AGG10000
HH54,998 HH Size – 4+ Members
ACN Region - West
HH54,999 Cosmopolitan Suburbs
HH55,000
Segmentation Methodologies
Behavioural/ Attitudinal
Purchasing
Behavioural
Share Gain
Attitudinal Preference
w/ Survey
Product
w/ Market
Trip Structure
“missions”:
Eggs, Milk, Butter & Margarine, Cream,
Cheese, Yogurt
Avg Items: 6
Mostly Meat Avg Items: 9
Avg Basket: $27 GM/HABA Calling Avg Basket: $26
% Trips: 3% % Trips: 47%
% Dollars: 3% % Dollars: 44%
High Incidence Items: High Incidence Items:
Meat & Seafood Body Care, Gen Merch, OTC, Hair Care, Hhld
Products/Cleaning, Paper Products, Pet
Demographics
Attitudes
Shopping
Behaviour Geography
•The best segmentation on specific markets will therefore come from a mix
of attitudinal and purchasing behaviour.
Step 4.
Interpretation
Step 3.
Who are the core
Post Profiling
consumer segments and
Step 2. how do we target them?
Clustering Analysis
Extensive
demographic, Opportunity to load
Step 1. Reveal the key factors, behavioural and/or segments into Spectra
Collect Input Data in terms of combinations attitudinal profiling of and/or CASE for
of attributes, that the clusters to targeting and ongoing
influence purchasing characterise them. measurement
Using Homescan data
to examine purchases choices and find natural
across trips or product groupings of households
attributes. based on these factors.
OR OR
Use Homescan survey Identify and segment
to ask a variety of shoppers according to
questions on the topic similarities in their
/ category attitudes.
Step 1.
Collect Input Data
What else
Where Found ? in repertoire ?
(Geodemographics)
Price Paid ?
How Often ?
How Much ?
Demographics
Purchasing Behaviour
Need States
Attitudes & Motivations
Value Systems
– Clustering Analysis
– Scores households‟ purchasing against key attributes.
A B C D E F
PANELIST_1 105 87 0 0 21 0
PANELIST_2 113 83 12 0 0 0
PANELIST_3 19 0 72 99 12 16
PANELIST_4 0 0 86 122 4 0
PANELIST_5 17 0 0 0 205 158
– Clustering Analysis
– Scores household aggregates‟ purchasing against key attributes.
A B C D E F
HH_AGG_1 105 87 0 0 21 0
HH_AGG_2 113 83 12 0 0 0
HH_AGG_3 19 0 72 99 12 16
HH_AGG_4 0 0 86 122 4 0
HH_AGG_5 17 0 0 0 205 158
– Clustering Analysis
– Scores households scoring against key attitudes.
Q1 Q2 Q3 Q4 Q5 Q6
PANELIST_1 5 4 0 0 2 0
PANELIST_2 5 4 1 0 0 0
PANELIST_3 1 0 4 5 1 1
PANELIST_4 0 0 4 5 4 0
PANELIST_5 1 0 0 0 5 5
Step 2.
Clustering Analysis
Pace Hot
Herdez Med
La Sala Hot
Herdez Hot
La Victoria Med
Emeril‟s Med
La Salsa Mild
PANELIST7 PANELIST3
PANELIST12PANELIST11
PANELIST1
PANELIST4
PANELIST2
PANELIST8PANELIST13
PANELIST14
PANELIST9
PANELIST5
PANELIST7 PANELIST3
PANELIST12PANELIST11
PANELIST1
PANELIST4
PANELIST2
PANELIST8PANELIST13
PANELIST14
PANELIST9
PANELIST5
Step 3.
Post Profiling
Step 2.
Clustering Analysis
Extensive
demographic,
Step 1. Reveal the key factors, behavioural and/or
Collect Input Data in terms of combinations attitudinal profiling of
of attributes, that the clusters to
Using Homescan data influence purchasing characterise them.
to examine purchases choices and find natural
across trips or product groupings of households
attributes. based on these factors.
OR OR
Use Homescan survey Identify and segment
to ask a variety of shoppers according to
questions on the topic similarities in their
/ category attitudes.
Mainstream-ists PANELIST10
(Pace & Taco Bell &
Tostitos) PANELIST6
PL Loyals
PANELIST15
PANELIST7 PANELIST3
PANELIST12PANELIST11
PANELIST1
Authentics
Herdez & La
PANELIST4
Victoria PANELIST2
PANELIST8PANELIST13
PANELIST14
PANELIST9
Premium Shoppers
PANELIST5 Paul Newman‟s &
Emeril‟s
Shampoo Types:
Buys mostly Normal hair products
Also has a slightly over-index for children‟s
products
Deal/Outlet Purchasing:
Heavy promotional activity w/ coupons
Purchase predominantly in Safeway
Note: Data may not reflect an accurate assessment of the market
Step 4.
Interpretation
Step 3.
Who are the core
Post Profiling
consumer segments and
Step 2. how do we target them?
Clustering Analysis
Extensive
demographic, Opportunity to load
Step 1. Reveal the key factors, behavioural and/or segments into Spectra
Collect Input Data in terms of combinations attitudinal profiling of and/or CASE for
of attributes, that the clusters to targeting and ongoing
influence purchasing characterise them. measurement
Using Homescan data
to examine purchases choices and find natural
across trips or product groupings of households
attributes. based on these factors.
OR OR
Use Homescan survey Identify and segment
to ask a variety of shoppers according to
questions on the topic similarities in their
/ category attitudes.
purchases (Market
Structure) against
Actual
attribute rankings
based on panelists‟
responses
(Homescan
Surveys), we can
gain insights into
what really drives
consumer
Innovation and technology purchasing. Point of Sale is crucial for these
changes are required for these attributes. How do we maximise
attributes to impact shoppers. our use of Price and
Promotions?
RECESSIVE Claimed REPERTOIRE
Purchasing
against us
Purchasing Claimed
(What they actually do) (What they say they do)
Cholesterol
27 Segment 23
Lowering
Olive Oil 25 Light 14
Segment 16 Cholesterol
12
Lowering
Brand 12 Deal 12
Consumer Market
DeltaQual
Survey Structure
In home
On-the-go
Cupboard Stock
• Including both provides a more complete picture of how consumers shop the
category.
Custom Inputs
Biscuit Category
from CR Module 100%
Traditional Healthier
74.5% 25.5%