When Investing Marketing Dollars, CPG Brands Must Target to Selective Preferences of Today's Empowered Consumer
Pointer Media Network, in association with the CMO Council, today announced the findings of a major consumer brand purchasing study that uncovers the importance of targeted marketing to address marketers concern with increased fragmentation within today's consumer products marketplace. The study, which tracked the purchasing behavior of nearly 54 million American shoppers over a 12-month period, finds that the consumer base is surprisingly small for most CPG product brands due, in part, to increased brand proliferation and specialization.
The report, entitled Discovering the Pivotal Point Consumer(TM), shows that the traditional 80-20 rule, the idea that 80 percent of sales come from 20 percent of shoppers, dramatically overstates the size of today's volume buyer base for consumer product brands. Among more than 1,300 individual product brands analyzed, just 2.5 percent of shoppers accounted for 80 percent of sales for the average brand. Of brands surveyed - all top selling products in their categories - only 25 relied on more than 10 percent of shoppers to drive 80 percent of sales.
"These findings surprise even the most seasoned CPG executives," said Todd Morris, senior vice president of Catalina Marketing. "This is a new consumer truth that has been hidden until now by marketers' lack of access to census level consumer data."
"The study has important implications for the way CPG manufacturers and retailers market their products and interact with their most valuable buyers," Morris continued. "As consumer concentrations decline, marketers will need to become more targeted and precise in how they engage with consumers."
The study, which is unprecedented due to the large number of consumers analyzed, utilized the world's largest database of in-store consumer shopping behavior for its analysis. The Pointer Media database, powered by Catalina Marketing, amasses a multi-year shopping history of an estimated 76 percent of American households.
Increased brand fragmentation is helping to reduce consumer concentrations for individual brands, according to the report. CPG manufacturers and retailers have responded to consumer demand for greater choice and personalization with an unprecedented array of targeted products and brands. The number of new CPG products reaching the market each year now surpasses 25,000, more than 10 times the rate of 1980.
"The good news is that CPG manufacturers do not necessarily need to win over a huge consumer base to launch successful new products, but they do need to engage the right shoppers," said Dave Murray, an executive vice president and program director with the CMO Council. "These findings should lead many marketers to question the efficiency of large-scale mass media campaigns to support new or established brands that rely on very select groups of consumers for their success."
For more information about Pointer Media or to access a complete database of all CPG brands analyzed in the study, visit www.pointermedianetwork.com or call (800) 290-8450.
About Pointer Media Network
Pointer Media Network powered by Catalina Marketing ( www.pointermedianetwork.com), a new service of Catalina Marketing, powers one of the largest and most advanced addressable media networks in the world. Pointer Media enables media buyers, advertisers, brand managers and marketers to leverage the network's sophisticated database of 250 million weekly shopping transactions representing buying behavior of nearly 80 percent of American households. This new medium provides an extensive infrastructure of 23,000 retail outlets, 25-years of analytical expertise and an average 80 percent readership rate among target audiences.
About the CMO Council
The Chief Marketing Officer (CMO) Council is dedicated to high-level knowledge exchange, thought leadership and personal relationship building among senior marketing and brand decision-makers across a wide-range of global industries. The CMO Council's 3,000 members control more than $70 billion in aggregated annual marketing expenditures. Companies represented on the CMO Council have combined annual revenue of over $600 billion. Visit the CMO Council web site to find out about the initiatives geared to address executive marketers' challenges at www.cmocouncil.org.
SOURCE: Catalina Marketing
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