MediAvataar's News Desk
When it comes to taking a risk on a new product purchase, why do consumers choose one product over another? What needs and desires drive new product purchasing, and which attributes are most influential in the path to purchase?
Nielsen’s Global New Product Innovation Survey polled 30,000 online respondents across 60 countries to gauge consumer sentiment about these questions. While new product selection depends on many things, such as life stage, family dynamics and personal choice, macro trends emerged with regards to products that appeal to our heart and our health suggesting there is a gap between what consumers say they are buying and what they wish they could buy if it were available.
While you’d be hard-pressed to find a consumer who said he or she didn’t care about the environment, when it comes to purchasing new eco-friendly products, words and deeds often part ways. Only 10% of global respondents say they purchased a new product because it was from a brand that cares about the environment. Even fewer (7%) cite corporate social responsibility as a reason for making a new product purchase.
But insincerity may not be driving this gap. In fact, product availability, or rather, unavailability may be partly to blame. Twenty-six percent of global respondents say they wish more ecologically friendly products were available, and 16% wish more products were committed to positive social impact—a 16- and nine-percentage-point gap, respectively, from those who say they purchased a product because of its environmental or social benefits.
“There are a number of barriers to more widespread usage and acceptance of environmentally and socially conscious products, including a perception of higher prices and poor performance along with distrust in sustainability claims,” said Rob Wengel, senior vice president and managing director of Nielsen Innovation in the U.S. “But perhaps even more telling is that consumers are just not finding the ecological products they desire. In many categories, green or socially responsible options don’t exist, are difficult to find or consumers simply don’t know about them. Better product labeling, shelf placement and promotion tactics that encourage trial can go a long way in closing the gap between desire and availability. To ensure consumers are not turned off at the shelf, brands must strike the right balance between ecological and effectiveness claims, testing and optimizing claims and packaging before going to market.”
A HEALTHY OPPORTUNITY
The world is facing a global health crisis—nearly 30% of the global population was considered overweight or obese according to the 2013 Global Burden of Disease Study—and consumers are attempting to take charge of their health. Nearly half (49%) of global respondents in Nielsen’s recent Global Health & Wellness Survey consider themselves overweight, and a similar percentage (50%) is actively trying to lose weight. And they’re looking for help from food and beverage manufacturers to make healthier choices.
On the list of new products consumers can’t find in stores but wish they could, healthy options are second behind affordability in all regions but one. North America was the only outlier; in this region, products made from natural ingredients and those fitting a healthy lifestyle are listed after affordability, novelty and convenience-based products.
“The healthy eating space holds great potential, but manufacturers looking to establish or expand their presence in this area should start by looking at what they can remove from foods rather than what they can add,” said Johan Sjöstrand, senior vice president and managing director of Nielsen Innovation in Europe. “Consumers want to go ‘back-to-basics’ with fresh, natural and minimally-processed options.”
“Stated simply, manufacturers need to make it easy for consumers to eat healthier,” continued Sjöstrand. “Consumption habits are changing for time-crunched consumers who increasingly forgo the traditional three meals a day and eat when it best fits their schedule, which is often on the go. But for many consumers, it’s not enough to be convenient; products must also be healthy and nutritious.”
ABOUT THE NIELSEN GLOBAL SURVEY
The Nielsen Global New Product Innovation Survey was conducted between Feb. 23 - March 13, 2015, and polled more than 30,000 consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa and North America. For the purposes of this study, we defined a new product as any item a consumer has never purchased before. The sample has quotas based on age and sex for each country based on its Internet users and is weighted to be representative of Internet consumers. It has a margin of error of ±0.6%. This Nielsen survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60% Internet penetration or an online population of 10 million for survey inclusion. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005.
Grocery stores are evolving, both in-store and online, giving consumers more shopping choices than ever before. As a result, protecting and building store loyalty is no easy task. To keep customers coming back for more, you need to know what drives them to switch from one store to another.
A recent Nielsen global survey of 30,000 online respondents in 60 countries shows that price is the top driver of store switching behavior—and by a wide margin. Globally, 68% say price, followed by product quality (55%) are store-switching motivators. Convenience (46%) and special promotions (45%) are drivers for nearly half of respondents, while cleanliness (39%) and selection/assortment (36%) are reasons for four-in-10. Store staff is a factor for just over one-quarter (27%) of respondents.
In North America, Europe and Latin America, price is a particularly important motivator in relation to the other drivers. More than seven-in-10 North American respondents (72%) say prices drive them to switch stores, 27 percentage points (pp) above the second most cited attribute, convenience (45%). There is also a double-digit gap between price and the next most important driver, quality, in both Europe (70% for price vs. 49% for quality) and Latin America (77% for price vs. 61% for quality).
In Asia-Pacific, price is the top driver of store switching, but it’s below the global average (63% vs. 68% globally) and is only narrowly more important than the second most cited driver—product quality (59%). Convenience (54%) and special promotions (49%) both exceed the global average (46% and 45%, respectively) in the region.
In Europe, selection/assortment exceeds the global average in both absolute (the percentage who said it drives switching) and relative (in relation to the other drivers) importance. It is the third most important driver in Europe, cited by 43% of respondents, while it is sixth globally (cited by 36%).
In Africa/Middle East, cleanliness is higher in both absolute and relative importance; half of respondents in the region say cleanliness drives them to switch stores, compared with 39% around the world. Convenience, on the other hand, is less important in the region than globally. Just over one-third of respondents in Africa/Middle East (34%) say convenience drives them to switch stores, while 46% global respondents cite this attribute.
Latin America exceeds the global average for nearly all store-switching attributes. The exception: convenience, which is the third most cited driver globally, falls to the bottom of the list in this region. Just over one-quarter of Latin American respondents (28%) say convenience drives them to switch stores, compared with 46% of global respondents. Staff, on the other hand, is notably more important in this region than globally. Forty-four percent of Latin American respondents said staff would drive them to switch stores. In a culture that highly values relationships and connections with those around them, friendly faces at their place of shopping is of great importance.
The report also discusses:
The product categories best positioned for e-commerce success.
The generational age groups driving online grocery sales intentions.
The technology-based convenience options most used, both in-store and out.
MEC Singapore Ramps up Digital Offering with a String of New Hires
MEC, a leading media agency www.mecglobal.com, has announced a series of new digital hires in Singapore to fuel the agency’s digital and data acceleration.
Amy Dabbs joins MEC Singapore as its new Head of Digital, adding to a string of senior and specialist hires that started earlier this year with Kunal Robert joining as Digital Director and Joshua Campanella joining as Associate Digital Director.
Sharon Soh, Managing Director of MEC Singapore said “The current Singapore team and our clients are already very digitally savvy so it’s natural that we want to accelerate our growth in this area. With Amy, Kunal and Joshua on board, we have made a huge investment in our future and our clients’ futures, with genuine, proven talent leading our digital development charge. I’m excited to have them on board and look forward to creating a thriving, digital culture at MEC.”
Sunfeast Dark Fantasy, the premium biscuit brand launched by ITC in 2005, has been very successful in carving out a niche for itself at the top end of the market.
The brand has over the years become the gold standard that competition is forever trying to match and has expanded its offering to include variants like Dark Fantasy Choco Fills, Dark Fantasy Choco Meltz, and Dark Fantasy Luxuria.
Over the years, the brand has pegged itself as the ultimate in indulgence - just one bite is all it takes to get transported into the world of Dark Fantasy – making every biscuit a doorway to a truly memorable experience.
The latest communication from the brand tailors this promise to suit Crème Biscuits, a format that is intrinsically associated with one’s childhood. Conceptualized by FCB Ulka Bangalore, the film revolves around a young man who encounters the brand in the lobby of a luxury hotel. Just one bite of Sunfeast Dark Fantasy Crème Biscuit is all it takes to bring out the child in him, inspiring him to hop on to a bellhop trolley and ride it around the lobby, much to the amusement of the people around him.
Dennis Koshy, Vice President–Bangalore, FCB Ulka, has this to say: “Crème Biscuits are part and parcel of one’s growing up years. Even as adults we have fond memories of splitting them open, licking the cream etc. This coupled with the fact that every adult has an inner child waiting to burst out, gave us a unique platform to anchor the brand to”.
Dharmesh Shah, Creative Director–Bangalore, FCB Ulka, adds: “Crème biscuits are primarily targeted at kids. However, Dark Fantasy is an adult brand. The new film straddles the sweet spot, appealing to the child in every adult, thereby keeping the brand codes intact.”
Sunfeast Dark Fantasy Crème Biscuits are available in two variants – Choco Crème and Vanilla Crème, and comes in an all new premium packaging.
Client: ITC Foods
Brand: Sunfeast Dark Fantasy Crème Biscuits
Agency: FCB Ulka, Bangalore
Creative Team - Dharmesh Shah, Rama Krishnan, Supreeth Nagaraja
Servicing Team - Vignesh Babu, Priyank Vaghela & Shreyas Upadhya
Account Planning – Menaka Menon
Agency Producers – Alpa Jobalia, Mazhar khan
Director: Zap (Gingerwater Films)
TV18 and CNN will be successfully concluding their 10-year licensing arrangement in January 2016 for CNN IBN.
The conclusion of the arrangement will enable each company thereafter to chart its own growth trajectory independently in one of the most dynamic, complex and fast growing markets in the world.
A.P. Parigi, Group CEO, Network18 said “The last decade has seen a lot of momentum in the Indian media industry and has been particularly exciting for us. During this time we witnessed two media houses coming together to redefine the way news is presented to a demanding audience; we at TV18 have benefited from this relationship with CNN. At the launch of the channel, TV18 was a relatively small organization; that has changed now. Network18 has grown from 2 news channels in 2005 to 17 news channels in 2015. Today, we have the largest footprint in the current affairs, regional and business news space in India. The TV18 line-up of channels today are well established and highly regarded in this dynamic, complex and challenging environment.”
Rani Raad, Chief Commercial Officer, CNN International said, “We are very proud to have created CNN IBN in our decade long partnership with TV18. The channel was a pioneering initiative that combined the best of CNN’s global expertise with TV18’s journalistic and newsgathering capabilities. We have truly valued this long standing partnership.” He further adds, “As the number one international news brand in Asia Pacific and the rest of the world, and the winner of multiple prestigious awards, CNN International, continues to lead and serve consumers in India with the best of global news content across multi-platforms.