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December 4 , 2007
Markham, Ontario, Canada
Markham, Ontario, December 4, 2007 – Retailers are responding to the constantly evolving marketplace by recognizing current trends such as the aging consumer, the focus on environmental responsiveness and the emergence of discount grocery. As a result, they are actively shaping consumer choice and developing relationships with their customers.
The Nielsen Company’s Senior Vice President of Marketing & Sales, Dave Mann, was the keynote speaker at the 2007 Canadian Council of Grocer Distributors Ontario conference held on November 21, 2007 in Toronto. Also present via videotape, was Patrick Dodd, former President ACNielsen Canada, currently president of Nielsen in Europe.
“The Nielsen Company has been part of the Canadian consumer packaged goods industry for over 60 years, so we are always very pleased to be invited to the podium to speak to the CCGD conferences as a way to bring thought leadership and stimulate discussion of relevant trends in the marketplace,” said Mr. Mann.
The presentation offered a variety of insights on how retailers are influencing change in the retail environment in response to trends that we are seeing globally, in Europe and locally.
- Consumers are Aging - the over-65 demographic will account for one-quarter of Canadian consumers by 2026. They shop differently – spend less per trip, but make more trips – so the retailing status quo won’t work with them. Adapting to their needs will translate into growth for retailers.
- Environmental Responsiveness – Concerns about global warming and environmental responsibility are showing up at the retailer level as increased efforts around sustainability, such as reducing the carbon footprint, offering re-usable bags as an option to plastic, and reduced product packaging. In a 2007 Nielsen survey, 75% of Canadians said they try to purchase environmentally-friendly products, things “not tested on animals” “easy to recycle” and “free of chemicals or pesticides.”
- Emergence of “Discount Grocery” – the decision by traditional grocery retailers to continue expanding their discount grocery option is capturing the attention, and the dollars, of consumers. Nielsen has measured an increase in household penetration from 67% in 2000 to 85% in 2007 in discount grocery.
- Conventional Grocery is still in the running – there are areas where conventional grocery is continuing to compete very effectively, converting “shoppers” to “buyers.” Conventional is winning on categories characterized by variety, quality and freshness where expanded consumer selection is important. The top five category conversion winners for conventional are: Chip/vegetable dips, chocolate confections, headache remedies, frozen baked desserts, and fresh baked goods.
- Understand consumer motivations – the motivators of consumer loyalty differ in conventional grocery versus discount. Nielsen’s PanelTrack service identified the top motivators for loyalty in both areas. The top three motivators of consumer loyalty in conventional grocery: 1) Convenient location, 2) Wide variety of merchandise, 3) Quality of fresh items. In discount grocery however, the top three loyalty motivators are: 1) Everyday low prices, 2) Convenient location, 3) Store deals.
"These are just a few of the trends we are seeing and tracking in the grocery industry," Mr. Mann said. "The Canadian marketplace has always been very competitive and marked by change, but the demographic shifts and the continuously expanding options available to consumers today have stepped up in their pace. The right information about the market, and a targetted business strategy, is absolutely essential in driving growth for retailers and manufacturers.”
“We were excited to have Pat Dodd join us for the conference,” Mr. Mann said. “Having previously been the Canadian Nielsen President and now in charge of our European business, Pat brings a unique perspective to any discussion of the grocery industry. I believe that we learn at least as much as we teach when we participate at, and contribute to industry events like the CCGD conference. We hope to be invited back next year.”
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (NetRatings and BuzzMetrics), mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA. For more information, please visit, www.nielsen.com
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