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Consumer Shopping Habits for Wellness and Environmentally Conscious Lifestyles Study Insights for Health, Beauty and Wellness September 12, 2009
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Page 1: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits for Wellness and Environmentally Conscious Lifestyles Study

Insights for Health, Beauty and Wellness

September 12, 2009

Page 2: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Agenda for Today’s Presentation

• Study Dimensions/Methodologies• Consumers: Relationship with Health and Wellness• Shopping: Best Practices• Gateway Category Highlights: Personal Care Products

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Page 3: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Study Dimensions/Methodologies• In broad strokes, this study was intended to

– Summarize consumer shopping habits/patterns in GM and HBW

• Types of products/services purchased• Retail locations visited

– Identify typical product and category cycles• The order in which categories are usually adopted• How categories may serve as gateways for

additional Health and Wellness interest and involvement

– Highlight top wellness opportunities to include consumer wants and needs, product categories, services, and retail practices

• Dual approach leveraging complimentary methods– Qualitative research in 3 locations: Charlotte, Seattle

and Edison, NJ (in-home and in-store interviews, group interviews)

– Quantitative research (online survey), sample of 2,176

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Page 4: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

PART ONE – CONSUMERS:Relationship to Health and Wellness

Page 5: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

The World of Health and Wellness – Sizing the World

• Health and Wellness consumers are segmented into three distinct groups– Periphery (25%) – 77 million U.S.

consumers– Mid-level (62%) – 190 million U.S.

consumers– Core (13%) – 40 million U.S.

consumers

• These groups represent varying levels of intensity and involvement in Health and Wellness lifestyles

Base: Primary household shoppers (n=2176)Source: GMDC 2009 Survey, Mar. 2009.

Mid-Level62%

Core13%Periphery

25%

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Page 6: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

The World of Health and Wellness - Segments

Periphery Mid-level Core “Entry level” Health and Wellness consumers Aspire to be more involved in Health and Wellness, but behaviors do not yet follow their aspirations Are mostly “reactive” rather than “proactive” when it comes to matters of Health and WellnessHighly driven by Price and Convenience

Moderately involved in a Health and Wellness lifestyleTend to follow some of the trends set by the CorePurchase large amounts of both conventional and Health and Wellness-specific productsStill somewhat concerned with Price and Convenience, but also driven by Knowledgeand Experience

Most lifestyle-involved in Health and WellnessServe as trendsetters/gurus for other consumers Health and Wellness is a major life focus for themDriven by Sustainability, Authenticity, and Local

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Page 7: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

PERIPHERYPERIPHERY MIDMID--LEVELLEVEL CORECORE

Consumers Evolve Toward a Holistic Notion of Wellness

SEPARATION HOLISMSELF-FOCUSED BROADER FOCUS

Avoiding “toxic” personal care products in the home for health reasons

Avoiding personal care products if they believe they are harmful to the

environmentAvoiding personal care products only

if they cause sensitivities/allergies

Exercise for health benefits Exercise for health and mental/spiritual balance

Exercise for weight management

Focus on avoiding some “bad” foods but also seeking whole, real foods

Focus on “local” foods and social/environmental issues relating to food production (farming, labor, etc.)

Focus on avoiding “bad”foods/ingredients

Somewhat preventative approach to health conditions

Highly preventative approach, often quite broad e.g. meditation, yoga and diet to

reduce stress

Focus on more acute medical conditions – reactive approach to

health

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Page 8: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

…and Toward a More Positive Take On Health and Wellness• As consumers evolve in the World of

Wellness, they shift…• From a negative, more physically-

oriented set of values and practices relating to Health (by itself), to

• A more positive, holistic focus on Health and Wellness

• They go, in other words, from reactive to proactive

• From viewing Health as “things you have to do” that are obligatory and not particularly interesting…

• To viewing Health and Wellness in a very positive light, and being actively engaged with and interested in related ideas, knowledge, and activities

sicknessillness

crisis

quick fix

reactive

treatment

mechanical

necessary

have to

boring

proactive

taking care

nutrition

prevention

indulgence

for the long term

fun

CORECOREPERIPHERYPERIPHERY

NEGATIVENEGATIVE POSITIVEPOSITIVE

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Page 9: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Demographics - Some Regional Variation Appears Across Segments• Some regions have a higher density (or “critical mass”) of more involved Health

and Wellness consumers than others

• The Core consumer is more likely to be living in the Pacific states (California, Oregon, Washington and Alaska) and the Periphery consumer is more likely to be living in the New England region

• In all regions there are quite substantial proportions of Mid-level consumers

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Page 10: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Other Demographics Do Not Show Strong Differences• Other than region, there are few notable

differences other than at extreme edges of the income and education scales

• Differences are not nearly as striking as the overall similarity across groups -comparing the mean (total, at top) to the rest of the “cuts” in the data, there are no big differences

• The only demographic difference that “jumps out” here is the difference in ethnicity

– Qualitatively, we have not seen significant differences between these groups, and suspect that there may be minor cultural differences that impact the way certain groups answer the screening questions

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Page 11: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Health and Wellness is Defined in Many Ways – it is not just avoiding or managing physical health conditions

• Periphery consumers do over-index a bit on simply “not being ill,”indicating a focus on the physical when it comes to Health and Wellness

• All consumers segments make strong mention of lifestyle factors outside of physical health concerns, especially Core consumers

Q06: “To me, health and wellness means...” | Base: Primary household shoppers (n=2176; 166 Core, 1408 Mid-level, 602 Periphery). | Source: GMDC 2009 Survey, Mar. 2009.

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Page 12: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

HBW Can Market to Many Consumer Lifestyle Concerns

53%49%

46%45%

21%16%

15%

Concern about getting olderMy health condition changed

Having too little energyHaving too much stress

The health condition of a family member worsenedSomeone I know died of poor health

Something I read

Q9: “What caused you to change your views on health and wellness?” | Base: Shoppers that have changed their views on what Health and Wellness means to them (n=932). | Source: GMDC 2009 Survey, Mar. 2009.

• Consumers express a variety of health triggers and issues that are lifestyle related rather than health condition focused

– Among the top 7 health “issues” cited by consumers are stress, anxiety and sleep disorders

– Among the top 4 health triggers are concern about getting older, having too little energy and having too much stress

• This provides an opportunity for HBW to market products that help relieve or solve these concerns – e.g., skin care to maintain youthfulness, supplements to relieve stress, body lotions that reinvigorate, etc.

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Page 13: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

The Internet Has Become the Key Consumer Information Source

•New media sources are critically important sources of Health and Wellness information

•Social networks (family member, friend or colleague) and long-time doctors are the most trusted sources of Health and Wellness information

•Doctors in the media are frequent sources of information – this may account for the high % reporting “doctor”

Q13: “In the PAST 3 MONTHS, which of the following information sources have you used to learn more about health and wellness?” | Base: Primary household shoppers (n=2176). | Source: GMDC 2009 Survey, Mar. 2009.

60%

53%

44%

38%

29%

21%

20%

16%

15%

14%

13%

11%

Internet

Doctor

Online health sites

Books/Magazines

Family member

Friend or colleague

TV/Radio shows

Pharmacist

Newspapers

Email newsletters

Product label

A product company's web site

Media

Medical Professionals Personal Acquaintances Manufacturer

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Page 14: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

The Affects of the Recession May Provide Some Opportunities for HBW in Certain Product Categories

• Although the recession has affected some specific Health and Wellness categories more than others, consumers are NOT leaving the broad category itself. Most consumers have not changed their daily activities and purchases in particularly profound ways, but there are some clear patterns including:– Putting off larger purchases and some scaling back of discretionary

purchases– Cutting coupons or looking for deals– Dining out less often and/or at less expensive restaurants– Finding ways to stay entertained at home or at the homes of others

• Some of these patterns provide possible increased sales opportunities for HBW including:– Body care (e.g., spa at home)– Hair care (e.g., salon at home)

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Page 15: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

A Notable Percentage of Categories are Not Shopped Differently Under the Recession

• In aggregate, this data shows a good level of resilience on the part of the US consumer

Bar soapDeodorant or antiperspirant

Lip balm/glossShaving lotions/gels/foam

Oral careHair care

Pet suppliesPlants and garden care

Specialty supplementsLaundry detergents

Children's personal care productsFeminine hygiene/contraceptives

Moisturizers (e.g., body, hands, feet)Body wash or bath gel

Kitchen cleanersBaby diapers, wipes, or personal care products

Over the counter medicationsFunctional or enhanced beverages

Window or general purpose cleanersVitamins or minerals

Bathroom cleanersHome fragrance

53%

53%

50%

49%

49%

48%

47%

47%

45%

43%

42%

41%

41%

40%

40%

40%

40%

39%

39%

39%

38%

38%

Q31: “How has your approach to shopping for the product changed, if at all, compared to last year? I haven't made any changes in the way I shop for [Product category]” | Base: Product shoppers (n varies from 160 for Energy drinks to 545 for Oral care). | Source: GMDC 2009 Survey, Mar. 2009.

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Page 16: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Quantitative Indicators of Recession Show Money-Saving Behaviors • For most HBW categories, consumers are using coupons or waiting for sales

CosmeticsDeodorant or antiper-

spirant

Lip balm/ gloss Oral care Facial

careHaircare

Body wash/

bath gelOTC

I buy it less often 26% 5% 16% 4% 15% 9% 13% 16%I shop around more to find the best deal 20% 10% 13% 16% 19% 18% 21% 23%

I'm more likely to collect and use coupons

18% 18% 13% 27% 28% 24% 21% 21%

I'm more likely to wait for sales or deals and stock up

18% 23% 15% 19% 23% 19% 25% 17%

I am more focused on buying higher quality than before

12% 5% 9% 8% 10% 9% 8% 6%

I have switched to less expensive brands 10% 9% 7% 9% 16% 16% 15% 17%

I buy the store brand more often 8% 5% 11% 7% 12% 9% 9% 24%

I buy smaller amounts when I do buy it 7% 4% 8% 4% 11% 5% 6% 10%

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Page 17: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Among Those Consumers Who Are Shopping Differently, Private Label is Gaining Ground

• Across many categories, consumers are “stocking up” on deals, using coupons, and shopping around more extensively for better pricing.

• Everyday necessities have been impacted least, nevertheless many consumers are still shopping harder for bargains in these categories.

• Private label purchases have increased, most strikingly in over-the-counter medications (24% of consumers are shopping for private label more often than last year).

• Increases in purchases of private label products in HBW categories range from 5% (bar soap and deodorant) to 17% (vitamins).

Consumer Collages

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Page 18: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDCConsumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Consumer Section Summary• Health and Wellness is not a niche market dominated by a small group of

consumers….it is a long-term change in how consumers view their lives and the products they purchase

• However, consumers do engage with Health and Wellness at different intensity levels and it is important to understand what level your customer is at (Core, Mid-level or Periphery)

• Demographics offer only limited insights into a consumer’s level of engagement with wellness

• Consumers don’t consider Wellness to be simply about physical conditions – social, emotional, mental and even spiritual considerations are often included

• New media channels are key sources of knowledge gathering for consumers

• The consumer reaction to the recession could offer opportunities for certain HBW products

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Page 19: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

PART TWO –SHOPPING: Best Practices

Page 20: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Consumers Take a Multi-Channel Approach to Shopping for Health and Wellness Products

• Consumers tend to shop across many channels for Health and Wellness products, having specific channel preferences for different categories– Grocery is a preferred option for several home cleaning and personal

care categories (of course, it is also strongly preferred for most food purchases)

– Mass has emerged as a preferred choice for several categories including home cleaning, personal care, vitamins and supplements, OTC and general merchandise

– Drug is a preferred channel for OTC and some personal care categories (e.g., cosmetics)

– Club is a preferred channel for some consumers for products such as laundry detergent and diapers, where consumers want to “go big” to save money

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Page 21: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Although Consumers Spread Their Purchases Across Channels, Mass is the Most Frequented for almost all HBW Categories

Mass Grocery Dollar Store Club Drug Natural/

Specialty

Bar soap 55% 40% 13% 16% 18% 2%

Moisturizers 63% 21% 14% 4% 35% 2%

Deodorant or antiperspirant 56% 44% 14% 14% 24% 3%

Hair care 57% 30% 14% 11% 30% 2%

Oral care 58% 43% 12% 10% 29% 2%

Vitamins or minerals 43% 26% 5% 11% 34% 11%

Over the counter medications 54% 32% 8% 7% 54% 1%

Source: Aggregation of Q30. | What kinds of stores do you go to MOST OFTEN when shopping for [Product category]? Please check up to TWO choices | Base: Primary household shoppers (n=2176; 166 Core, 1408 Mid-level, 602 Periphery). | Source: GMDC 2009 Survey, Mar. 2009.

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Page 22: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Channel Usage by Consumer Segment

PERIPHERY MID-LEVEL CORE

Mainstream Grocery

Specialty Grocery

Mainstream Drug

Specialty DrugClubMass

• The retail channels have differing appeal to the consumer segments• The top of each triangle indicates which consumer segment should be

primarily targeted by each channel. The length of the bottom of the triangle shows how far each channel can reach into other segments.

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Page 23: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Health and Wellness Product Mapping for the Mainstream Grocery Channel

• The priority categories for mainstream grocery stores are in red• Dotted lines indicate that, strategically, mainstream grocery retailers

should emphasize Health and Wellness appeal that is primarily Mid-level but also engages some Periphery consumers

PERIPHERYPERIPHERY MIDMID--LEVELLEVEL CORECORE

Mainstream Grocery

food/beverage vitamins

specialty supplements

natural home cleaners

natural hair care

herbal supplements + remedies

natural fem hygiene

natural make-upnatural skincare

natural lawn/ garden

natural pet care

natural children’s hygiene/toiletries

OTCsporting equipment

alternative toys and games

natural eye care

health + wellness books, magazines, + education

home lighting

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Page 24: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Lack of In-Store Visibility is a Key Barrier

• Most retail spaces contain far more in the way of health and wellness products than consumers realize

• Products need to be in places that consumers will find them, not segregated off in remote corners of the store/section

• Segregation separates “apples from apples” and inhibits direct product comparisons in categories which tends to frustrate Periphery and Mid-level consumers

A shelf with a full suite of Seventh Generation products, that often goes unnoticed since it is segregated from other cleaning products

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Page 25: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Quantitative Data Shows “Too Many Choices” is an Issue For Many Categories

• In many categories, we find that consumers are simply overwhelmed with the level of choice they are presented with

• The tight numerical intervals between categories show that this issue has quite a significant effect across a wide range of categories

Q33: “Other than price, what is the worst aspect of shopping for Product? Please check your top TWO choices” | Base: Product shoppers (n varies from 265 for Cosmetics to 544 for Kitchen cleaners).Source: GMDC 2009 Survey, Mar. 2009.

52%50%

49%48%47%47%46%45%45%44%43%42%

41%40%40%40%40%

38%38%37%36%

30%

Home fragranceKitchen cleaners

Over the counter medicationsMoisturizers

Deodorant or antiperspirantBathroom cleaners

CosmeticsBody wash or bath gel

Hair careVitamins or minerals

Oral careFace care

Children's personal care productsShaving lotions/gels/foam

Functional or enhanced beveragesHerbal supplements

Laundry detergentsBar soap

Feminine hygiene/contraceptivesSpecialty supplements

Window or general purpose cleanersPet supplies

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Page 26: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Sharing Key Product/Category Information Directly at Shelf is Helpful to Consumers

• An example from Pharmaca provides important product information at shelf

• Purchase decision criteria (per category) should be used to prioritize information in developing similar in-store merchandising features

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Page 27: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Retail Atmosphere Matters• The overall retail atmosphere makes a huge difference in consumer

openness to trying new Health and Wellness products - quality perceptions and Health and Wellness perceptions are inexorably linked

• Consumers hesitate less to try new products in a more elegant retail space, assuming “the quality is there,” that the retailer has been diligent in seeking out and presenting appropriate products

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Page 28: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Shopping Section Summary• Consumers are relying on a multitude of channels for their Health and

Wellness shopping• However, different consumer segments have preferred channels for

purchases• Consumers prefer to make direct comparisons between conventional

and “natural” products in the store. Therefore, retailers should strongly consider integrated product sets whenever possible

• Consumers are looking to retailers to help “edit” the number of product choices in many categories

• Complex Health and Wellness categories could benefit from simplified shelf management and product-specific signage

• The overall store layout and design can help or harm consumer Health and Wellness perceptions of the retailer

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

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Page 29: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

PART THREE – Gateway CategoryHighlights: Personal Care Products

Page 30: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

There is a Clear Pattern to Health and Wellness Category Adoption

• Consumers tend to adopt categories in a certain order as they evolve as Health and Wellness consumers from Periphery toward the Core

• Diagram below shows this pattern, which is helpful as a guide for targeting products and retail offerings that are most relevant to consumers at certain stages of Health and Wellness

PERIPHERYPERIPHERY MIDMID--LEVELLEVEL CORECORE

food/beverage vitamins

specialty supplements

natural home cleaners

natural hair care

herbal supplements + remedies

natural fem hygiene

natural make-upnatural skincare

natural lawn/ garden

natural pet care

natural children’s hygiene/toiletries

OTC

sporting equipmentalternative toys and games

natural eye care

health + wellness books, magazines, + education

home lighting (CFL bulbs)

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Page 31: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Gateway Categories Non-Gateway Categories with Clear Ties to Health and Wellness

Non-Gateway Categories Lacking Clear Ties to Health and Wellness

SupplementsChildren’s Hygiene & ToiletriesHair and Skin CareHome CleaningBooks, Magazines, and EducationFunctional Beverages

OTCOral CareEye CareFeminine HygieneMakeup & CosmeticsPlant and Garden Care

Pet SuppliesHome LightingOffice SuppliesSporting EquipmentToys and Games

Personal Care Products are an Important Gateway into Health and Wellness

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Page 32: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Consumers Orientations Evolve from H+W to Sustainability -- In, On, Around the BodySustainability consciousness begins closest to home where personal benefits are most at stake and sense of control is greatest

PERIPHERYFear of or experience with

superficial reactions spurs much interest in

more natural personal care products

MID-LEVELConcern about

immediate toxicity forms the basis for additional interest

typically at the Mid-level and beyond

COREConcern about

environmental effects is a more distant motivator,

usually appearing in more advanced Mid-level

and Core consumers

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Page 33: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Consumers Seek More Natural/Organic Options in Household Cleaning & Personal Care Products

Q41: “For which of the following product categories would you like to see more choices using natural or organic ingredients or materials?” | Base: Primary household shoppers (n=2176; 166 Core, 1408 Mid-level, 602 Periphery). | Source: GMDC 2009 Survey, Mar. 2009.

• The level of desire for natural and organic products is related to increasing levels of toxicity and environmental concerns among most consumers

• Personal care categories rank just behind household products because of concerns of skin irritations

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Page 34: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Most Consumers Believe Organic and Natural Personal Care Products are Safer and Healthier• However, they are less convinced of their efficacy, find them to

be too expensive and absent from the shelves where they typically shop

Q40: “In general, based on what you know, how do you think NATURAL OR ORGANIC personal care products compare to mainstream traditional brands?” | Base: Primary household shoppers (n=2176; 166 Core, 1408 Mid-level, 602 Periphery). | Source: GMDC 2009 Survey, Mar. 2009.

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Page 35: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Category Purchase Decision Criteria vary Across Consumer Orientations -- Gateway vs. Non-gateway

PERIPHERYPERIPHERYcriteria

MIDMID--LEVELLEVELcriteria

CORECOREcriteria

Skin Care Effectiveness/function

Scent

Price

Brand

Effectiveness

Scent

Price

Lack of negative ingredients

Some concern about animal testing and concern about environment impact

Lack of negative ingredients (“chemicals,”often fragrance)

Lack of animal testing

Environmental impact

Oral Care Effectiveness/function (fit/type/preference)

Price

Taste

Brand

Effectiveness

Price

Taste

Minimal, high quality ingredients

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Page 36: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Transitional Products are Critical for Helping the Consumer Evolve in the World of H + W• Many categories of personal care have examples of transitional

products which make it easier for Periphery consumers to experiment in new areas of product experience

• Skin care• Cosmetics• Hair care

RED FLOWER

AVEENO

DOVE

ST. IVES

BURT’S BEES

WELEDA

DR. HAUSCHKA

NEUTROGENA

CORECOREPERIPHERYPERIPHERY MIDMID--LEVELLEVEL

Transitional Brand

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Page 37: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Some Categories are Missing Transitional Products Offering Opportunities

• Some key categories lack a critical mass of transitional products, such as– Toothpaste - It's Crest or it's Tom's with little in between– Underarm deodorant – one is generally faced with

regular/conventional products or alternatives that seem “too natural”e.g. crystal type products

• There is no Burt’s Bees equivalent in these categories!

Periphery

Core

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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

There are Some Barriers that Must be Overcome to Grow the Personal Care Category• Consumers are challenged by so many choices• Products need to be in places that consumers will find them, not

segregated off in remote corners of the store/section

Q33: “Other than price, what is the worst aspect of shopping for Hair and Skin Care? Please check your top TWO choices” | Base: Product shoppers (n varies from 370 for Lip balm/gloss to 515 for Deodorant or antiperspirant). | Source: GMDC 2009 Survey, Mar. 2009.

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Page 39: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Price is also a Barrier for Category Entry, but not as Much as one Might Expect

• Price always indexes high as a barrier to entry in quantitative studies

• However, our qualitative study showed that many Periphery consumers are willing to spend 10% more for H+W-oriented products over conventional versions

• Mid-level and Core consumers are often more concerned with specific product attributes than they are with price– Mid-level consumers typically won’t fret at

all about paying “a dollar more” for a personal care product

– Core consumers are typically willing to pay extra for their H+W items because they are so committed to the lifestyle

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Page 40: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Packaging Is Important in Conveying Basic Quality Messages and Product Information

• There is a lack of contemporary aesthetics in many products– Some look outdated – e.g., "old hippie

co-op"– Some look childish– Some look overly “medicalized”

• In some cases, consumers may have a hard time answering the basic question “what is this stuff?”

• Products of this nature often quickly vanish from the consideration set at shelf

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Page 41: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Packaging should Symbolically Cue a Connection to the Earth

• The following are basic tenets of packaging that help to cue sustainability:

– Packaging should not visually compete with the product

– A restrained color scheme that uses two or three colors

– Matte finishes appear clean and elegant and seem more recyclable than shiny coatings on package materials

• Twist Loofah Sponge– Use/purpose of product is obvious – Elegant, contemporary aesthetics – Minimal, paper packaging taps environmental

themes, as does biodegradable messaging – Overall “naturalness” of the product is obvious

and appeals strongly to advanced Mid-Level and Core consumers.

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Page 42: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

The OTC Category Provides an Interesting Contrast to Personal Care

• OTC is not a gateway category, but is important in that Periphery consumers associate it with H + W– OTC products are generally associated with conditions of illness and/or

crisis and lack the positive, proactive H+W associations that we find with certain other categories

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Page 43: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Consumers Generally Choose Products in OTC Based on Effectiveness Perception And Price

• The importance of effectiveness ranges from 77% for the Mid-level to 89% for the Periphery consumer

• Core consumers are more likely than other H+W segments to consider purity or healthiness (41%)

• The Periphery is more likely to consider convenience factors such as ease of use (30%) and availability (31%) as more important

PERIPHERY MID-LEVEL CORE

PRICE

EFFECTIVENESS PERCEPTION

MINIMAL INGREDIENTS

BRAND

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Q32: “When you buy over the counter medications, what are the most important factors OTHER than price/value? Please check your top TWO choices” | Base: Over the counter medications shoppers (n=498; 32 Core, 327 Mid-level, 139 Periphery). |Source: GMDC 2009 Survey, Mar. 2009.

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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Product Offerings in this Category Essentially “Fall Off” in the Mid-level

• This is because consumer interest in OTC also tends to fall off in the Mid-level– Lack of intermediate forms between traditional OTC and

homeopathic /herbal remedies, and a general lack of retail availability and consumer awareness of the latter.

– In a positive sense, there may be serious opportunities in developing such intermediate forms and making them accessible and recognizable to evolving Mid-level consumers.

PERIPHERY MID-LEVEL CORE

PRIVATE LABELS

ADVIL

SUDAFED

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Page 45: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

Product Section Summary• The personal care product category provides an ideal example of how

Health and Wellness attributes can expand and rejuvenate a category• The introduction of transitional Health and Wellness products (targeted to

Mid-level consumers) has helped propel the personal category into the spotlight

• Early identification by manufacturers of the consumer “hook” for this category (toxicity) has also helped with category growth

• Once the hook and its corresponding consumer benefit (e.g. effective product without the “bad” chemicals) are appropriately messaged to consumers, price becomes much less of a barrier to purchase

• Retailer merchandising tactics for transitional personal care products primarily utilized integrated shelf placement which made the products noticeable to mainstream consumers

• Product packaging is a marker of quality and the first Health and Wellness cue that consumers notice

Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC

The Future of Health and Wellness for HBW• The health and wellness trend is not a fad and it is not going away, even in a

tough economy• The personal care products and OTC categories provide an example of how

HBW can leverage the growing consumer interest in health and wellness • Introducing transitional products is absolutely necessary to gain mainstream

consumer acceptance of any category• The time is now to determine how your products can elevate their health and

wellness cues in order to resonate with consumers• Several categories are showing the future potential to win with health and

wellness offerings:– Skin care – Hair care– Oral care– OTC

• Health and wellness opens up opportunities for HBW in terms of sales growth and consumer loyalty!

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Page 47: Consumer Shopping Habits for Wellness - Presentation · Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC The Internet Has Become the Key Consumer Information

THANK YOU!


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