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Shopping Behaviors May Transcend Demographics

SCOTTSDALE, Ariz. - (BUSINESS WIRE) - New research from Henkel Consumer Goods Inc. suggests that the demographic traits in common usage by retailers and brand marketers are not valid predictors of shopping behavior.

The study found three surprisingly distinct and enduring behavioral styles that defy characterization by the more traditional evaluative criteria of income level, age of household or size of household. The shopping insights uncovered by Scottsdale-based Henkel Consumer Goods Inc., makers of Dial soaps, Purex laundry detergents, Renuzit air fresheners and Right Guard antiperspirants/deodorants, is leading this breakthrough work for over 300 categories and 200 plus customers.

"Our findings suggest an alternative basis for retailer marketing and merchandising that may offer significant advantages," said Mack Hoopes, Manager, Consumer Insights. "They challenge our assumptions about the relative value of certain shopper segments."

The study, "The Shoppers' Perspective," examined three years of data from multiple retail channels, covering 300 food and non-food categories commonly carried in supermarkets. This data was collected from the Information Resources Inc. Consumer Network Panel and other sources.

Shoptimizers are most likely to be influenced in their choices by pre-shopping stimuli such as circulars and coupons. In fact, this group accounts for virtually 100% of coupon usage.

Mainstreeters do far less pre-planning and rarely save coupons, so their store choices are more likely to be influenced by location, convenience and price reputation. This group is highly sensitive to in store messaging and promotions.

Carefrees bypass pre-planning, and once inside the store, tend to ignore prices and promotions and simply buy what they like.

"Members of each group select stores based on their trust that they will deliver what they value in a shopping trip," Hoopes said. "We believe we have identified some foundational elements of pre-planning and reinforced a fundamental truth for all shoppers - if they trust you they shop you."

For example, the findings suggest some retailers may unwisely label highly motivated "Shoptimizers" as less desirable because they take greater advantage of deals and coupons. In fact, these shoppers shop more frequently, and index higher on total spending.

The study concludes there are several critical implications of this data. For retailers, know which segment you want to market to and make your position clear. Communicate that position-and understand that each group responds and behaves differently. Tracy VanBibber, Sr. Vice President, Customer Solution Team, The Dial Corporation, A Henkel Company, is very proud of her team's efforts. "This is proprietary, breakthrough work that changes the conversation on how we collectively can market and reach shopper segments based on shopping behaviors versus demographics." VanBibber added, "These findings are very compelling and actionable."

The Shoppers' Perspective study is one core component of an overall innovative strategic approach to Dial's WIS (Winning In Store) strategy, which combines previous disparate disciplines of Category Management, In-Store Merchandising, Shopper Marketing and Research into one seamless WIS team. The WIS team provides sales and customers with research-based insights and programming designed to deliver a wide range of category based solutions.

The Shoppers' Perspective study is ongoing, and additional research, providing further insights, will be released in the coming months. If you are interested in detailed information, visit www.henkelna.com/shopperinsights.

Henkel in North America:

Henkel markets a wide range of well-known consumer and industrial brands in North America, including Dial soaps, Purex laundry detergents, Right Guard antiperspirants, got2b hair gels, and Loctite adhesives.

Henkel has been committed to making people's lives easier, better and more beautiful for more than 130 years. A Fortune Global 500 and Germany's most admired company according to a recent Fortune survey, Henkel offers strong brands and technologies in three areas of competence: Home Care, Personal Care and Adhesive Technologies. Each day, more than 52,000 employees in 125 countries are dedicated to fulfilling Henkel's claim "A Brand like a Friend." In fiscal 2008, Henkel generated sales of $20.8 billion and adjusted operating profit of $2.1 billion. Visit www.henkelna.com for more information.

David X. Manners Company
Jane Harris, 203-227-7060
or
Henkel Consumer Goods Inc.
Natalie Violi, 480-754-5442
Henkel Corporate Communications
natalie.violi@us.henkel.com