Showing posts with label Consumer Insights. Show all posts
Showing posts with label Consumer Insights. Show all posts

4.5.09

Arabia woman:::consumer demographic

“Muslim women and their money are protected by the dogmas of Islam, wherein they have the right to spend their finances in whatever way they wanted to.”

Recent studies and work by scholars has uncovered surprising similarities between American women and Arabia women when one looks at their influence over household spending and consumption,"shopping"

“Contrary to stereotyped beliefs, Arabia women have control of their own money,” opens the article by two professors from Zayed University in Abu Dhabi titled “Financial empowerment of Women in the United Arab Emirates,” published in 2008 in the Journal of Middle East Women’s Studies.

The article continues: “[Women] have the right to spend their money in any way they see fit, even to contribute to the running of the household if they desire to do so. They may own property in their own name and invest or spend their own money as they choose.”


The article also summarizes the results of a series of focus groups with women in the UAE, a study that showed 79% of women managed their own money. The study also showed that 95%agree that religion influences how they spend their money, 66 percent think money brings them happiness and just over half, 53%, believe husbands and wives should share their money.
Additionally, it notes that men are the ones who pay household bills, but that they do not have control over what’s considered “conjugal” money.


It’s easy to see how not understanding this reality could lead many brands astray in messaging. Consider a hypothetical: A campaign aimed directly at men that subtly implies a woman must get permission from her husband to buy product X or Y? Disastrous. This is the one indisputable area of autonomy for many Middle Eastern women. A brand that fails to talk directly to women would not win any points or make any gains in building brand equity for failing to recognize and affirm this authoring.
Granted, this autonomy as consumers still doesn’t equate to parity with Western women in other economic endeavors. For instance, according to a recent study by the Arab Council of Businesswomen, a gender gap in business ownership persists in the region, with only 14 percent of business establishments in the region owned by women, compared to the US and Europe, where women own 30 percent of businesses.
Even so, Middle Eastern women wield enormous influence over spending, and marketers who don’t recognize this and integrate that truth into messaging, branding initiatives and campaigns do so at their own peril.
Female consumers in the region can also play powerful roles in boycotts of Western brands, according to Aseel Sawalha, a professor of anthropology at Pace University and an expert on the Middle East.
Sawalha shared her observation of street protests and women’s groups that organized boycotts against Danish products and brands in Jordan after the 2005 publication in a Danish newspaper of images of the Prophet Muhammad.
“It’s the women who were organizing, the women who were protesting against Danish products,” she recalled.
She noticed that in many retail stores, proprietors took great pains to make sure to address women shoppers, noting they were meeting consumer demands for the boycott. “Signs would say, lady, or madam, we boycott the Danish,” she said. “It was pretty clear women were in charge from a consumption standpoint.”
So what does that mean for Western brands eager to tap into this market?
“It’s the women who make the decisions about how to spend household money,” she said. “It’s the woman who decides what they are going to cook tomorrow. Even if they are not working, they are the ones who make the shopping lists and do the shopping.”
For marketers, it naturally follows that all brand communications must recognize this power.

After all, considering women in the region lack empowerment in other economic endeavors, undermining women’s power as consumers is misguided, to say the least.
Granted, women in the Middle East are far from monolithic. Data from the World Economic Forum on the global gender gap puts Egypt at the bottom of the list among Middle Eastern countries. Even so, women in the Middle East are making gains, albeit incremental ones, and many economic development studies have cited the continued suppression of women in the workforce and education as a deterrent to economic growth for the entire region.
In a different world, women in the region would already enjoy parity with their male counterparts in employment, education, pay and social freedoms. And empowering women as consumers surely isn’t the path to full-fledged independence. But failing to recognize and affirm this power is a surefire recipe for backlash. This is a consumer demographic that demands respect and the recognition of its autonomy and power.

7.4.09

Target women: Douchebaggery 101, embracing your inner douche.

Pull up to the drive-thru window, order your Famous Star with a side of machismo and check out “Target Women: Carl’s Jr.”.
Try not too laugh your ribs off. For every mention of "douche" slam a tequila. You'll never recover.

28.3.09

Generations in China

Individuals born from about 1928 to 1945 (Traditionalists)

In the 1940's and 1950's, those in the U.S. were experiencing the birth of the consumer economy, teens in China were also living through a major transition. The second Sino-Japanese War, the largest Asian war in the twentieth century, ended, ending the 14-year long Japanese invasion. In its wake, civil war raged between the Nationalist and Communist parties. In 1949, Chiang Kai-shek and the Nationalist Party fled to Taiwan and, on October 1, the Communists established the People's Republic of China (PRC) on the mainland.
Communist leader Mao Zedong initiated major economic reforms - a socialist "Big Push" to industrialize China, replacing landlord ownership and peasant workers with the development of heavy industry and the construction of new factories. Throughout the 1950's, Mao's campaigns to suppress former landlords and capitalists intensified; foreign investment in the country essentially ended. In 1958, Mao launched a new initiative, the "Great Leap Forward" - an unprecedented process of collectivization in rural areas: the formation of communes, the abolition of private plots, and the creation of a massive auxiliary network of small-scale industries, such as backyard iron smelters to produce steel - all designed to shift the nation from an agrarian to industrial economy. Agricultural output plunged, resulting in widespread malnutrition. By 1960, the country was in the throes of an economic and humanitarian disaster; 30 million people perished.
For teens coming of age during these years, it was a time of conflict and confusion as traditional ways of life were uprooted in pursuit of modernization. Hard physical work and poverty was a fact of life for most. This generation learned that affiliating with the "right" people was essential for survival, advice they undoubtedly offered to their children.

Individuals born from about 1946 to 1960/1964 (Boomers)
The 1960's and 1970's were the years of the Great Proletariat Cultural Revolution. Under Mao's socialist orthodoxy, both traditional Chinese and Western culture were repressed, social institutions collapsed, schools were abolished, public transportation came to a nearly complete halt, temples and churches were vandalized, and "liberal bourgeoisie" and intellectuals purged. Sino-Soviet relations deteriorated, ending Soviet technical assistance and further isolating the country. Living conditions remained extremely difficult.
Unlike teens in the United States who formed cynical views of authority based on the corruption they saw in their leaders, teens in China were a major force within the Cult of Mao. With no schools to attend, they joined the Red Guards and gained whatever knowledge they had from the Chairman's Little Red Book. Many demonstrated in support of Mao and joined in terrorizing ordinary citizens. Members of this generation in China grew up with the belief that loyalty to the state and institutions would be rewarded, questioning authority was unacceptable, education was unnecessary, and anything "foreign" or "old fashioned" was unwanted. They were dedicated to a single way - "the" way of doing things.
After Mao's death in 1976, the Cult of Mao rapidly devolved, leaving many in this generation - now young adults - disillusioned, uneducated, and angry at their sudden oust from power. Today this generation is known in China as the "Lost Generation," since, without any formal education, many of its members are ill prepared to participate in the modern world.

Generation X - Individuals born from about 1961/1965 to 1979
Growing up in the post-Mao 70's and 80's, years, teen X'ers in China grew up during the period of Economic Reforms and Openness: de-collectivization of the countryside, decentralization of government, and legalization of private ownership.

Special Economic Zones were created to encourage capitalist investment. Reforms included the development of a diversified banking system and stock markets. The consumer and export sectors developed rapidly. By the mid-1980s, living standards, life expectancies, literacy rates, and total grain output were up and an urban middle class was growing. X'ers became the first generation in China to come of age in a consumer society.
This generation of teens in China also grew up with more personal rights and freedoms than the previous two generations. By 1980, Deng Xiaoping had maneuvered to the top of China's leadership. There was a renaissance of traditional Chinese culture; local religions including Buddhism, Taoism and Confucianism flourished.

Beginning in the late 1980s, mainland China was exposed to many Western elements: pop culture, American cinema, nightlife, American brands, and Western teen slang. China developed a strong cell phone culture, and soon had the most mobile users in the world.
Despite the economic and cultural progress, the country remained a totalitarian state. Liberals protested Deng's unrelenting stance on the political front. In 1989, the Tiananmen Square protests resulted in China's government being condemned internationally.
For this generation, the flood of new information, academic opportunities, and world knowledge was highly appealing and shaped a life-long inclination toward learning from multiple sources. Economic opportunity, including a growing consumer market, was available for those who studied and worked hard. Members balanced between the reinvigoration of China's cultural heritage and exploration of opportunities in the West. Not naturally Western-savvy, X'ers developed with a mental model that was highly pragmatic and facts-based.
Generation Y - Individuals born from 1980 to 1995

Around the world, Generation Y teens shared many common experiences. As in India and the U.S., teens in China were swept up in a booming economy. Although foreign trade embargoes from Tiananmen were in place, economic growth in China continued at a fast pace during the 1990's and early 2000's.
Reforms continued, including the sale of equity in China's largest state banks to foreign investors and refinements in foreign exchange and bond markets. In 2004, the National People's Congress provided protection for private property rights and placed new emphasis on reducing some of the disadvantage of industrial growth, including regional unemployment, unequal income distribution between urban and rural regions, and environmental pollution.
The country made significant investments made in science, technology and space exploration. Thousands moved from rural villages to cities, farms to factories, leaving behind family, class and history. By 2007, most of China's growth was coming from the private sector. Throughout this period, China has gradually become more open and less repressive - not a democracy, but also no longer a totalitarian state.
Nicknamed the "Litter Emperors," Gen Y's in China occupy a special role in the burgeoning society. China's one child policy, introduced in 1979, means that most members of this generation are only children, in many instances reared as the sole focus of two parents and four doting grandparents. They tend to have high self esteem and a level of confidence that positions them for leadership roles in China and globally.
Like many Y's around the world, this generation has strong advanced technological skills and an urge to be connected globally. Even as teens, they confidently communicate directly with outside world leadership and influence the future of their country. During the 2008 Tibetan unrest which marked the 49th anniversary of the failed 1959 Tibetan uprising against Beijing's rule, young patriotic Chinese waged Internet campaigns against Western media coverage of the protests. Also in 2008, when a massive earthquake killed 70,000, many young people participated in the rescue as volunteers.

Teen Y's in China have experienced a wave of national pride. Two foreign colonies were returned to China during their teen years: Hong Kong from Britain in 1997 and Macau from Portugal in 1999. In 2001, China was admitted into the World Trade Organization. Most significantly, in 2008, China successfully hosted the 2008 Summer Olympics.
Y's in China share this generation's global sense of immediacy, coupled with the excitement of being part of the country's first wave of broad economic opportunity and growing national pride. Y's in China are confident and competitive. For many, a desire for economic success is closely coupled with a desire for status. They are looking forward, toward increasing China's role and influence in the world.
As we look ahead to future generations, the one child policy was re-evaluated in 2008 and extended for at least another decade, insuring that the next generation will also be comprised largely of single children.

China, like other countries, illustrates the dramatically different experiences and formative events that influenced those growing up in the 1940's - 1970's (the generations called Traditionalists and Boomers in the United States), and the growing similarity of experiences in the 1980's onward. Generations X and Y are the beginnings of global generations

19.3.09

USA | Pizza consumer foodservice

Company Watch: Pizza Hut rebranding to Pasta Hut – a healthy move?
25 Nov 2008


Global pizza restaurant chain Pizza Hut announced the temporary renaming of 30 of its outlets to Pasta Hut in the UK, effective from 6 October 2008. This move has generated a buzz, but opinions are divided as to whether such a gimmick can boost sales.With an estimated 33% value share in 2008, Pizza Hut remains the undisputed leader of chained pizza restaurants in the UK. However, aggressive expansion by smaller players such as Prezzo, Strada and Deep Pan Pizza has contributed to the erosion of Pizza Hut's share (down from 38% in 2001).

In order to bolster sales, Pizza Hut is in the process of revamping its image and this daring rebranding is part of that initiative. The renaming to Pasta Hut has been confined to the UK, and carried out on a much larger scale than the temporary name change in the US in April 2008. The move was accompanied by a television and newspaper advertising campaign. A separate website has been created for Pasta Hut on which there is a poll for consumers to vote for or against a long-term name change, thus making them feel part of the decision-making process. This marketing strategy has generated both a buzz and strong debate about the effectiveness of such tactics.

Ongoing efforts to shed unhealthy image and move upmarketWhen the company announced the temporary renaming of 30 of its outlets to Pasta Hut, the move was positioned as part of its ongoing commitment to healthier food. Some 12 new pasta dishes will be added to the menu. While Pizza Hut has not made explicit claims about pasta being healthier than pizza, it has simultaneously improved its salad bar and added more vegetables to children's meals.
This ties in with steps that Pizza Hut had already taken towards a healthier menu such as reducing the salt in its meals to bring it into line with recommended government levels. It had already removed trans-fats from its menu at the end of 2007 and is still in the process of making more dishes low-fat or virtually fat-free.The campaign is also seen as an attempt to move upmarket and attract a wider consumer base. One of its new television advertisements features young mothers lunching together on bowls of pasta. Expanding its range beyond pizza will enable Pizza Hut to attract an older and more sophisticated consumer, but without losing those consumers its pizzas are aimed at.
This will enable it to compete more effectively with its more upmarket competitors which already have a wide range of pasta dishes on their menus. It means that Pizza/Pasta Hut can offer something for the whole family – more indulgent fare for younger family members and healthier offerings for older ones. This is in line with the US move, which firmly placed Pizza Hut as a family option.

Early indicatorsIt is not possible at this stage to speak with any certainty about growth in till receipts as a result of the move. However, results are through for the smaller Pasta Hut US renaming earlier in the year. There, both sales of pasta and overall traffic grew as a result of the move, and, according to a company spokesperson in the UK, before the re-naming, pasta dishes accounted for 3-4% of Pizza Hut's revenue, but are on course to reach a 10% share by the end of the year. Tougher times call for bolder measuresPizza Hut needed to do something dramatic to break free from being pigeonholed as a pizza restaurant.
Changing the name, albeit temporarily, is a bold move. Difficult times are ahead for CFS outlets as eating out becomes one of the first casualties of the financial crisis. So, a move that attracts a wider consumer base by aiming more upmarket whilst retaining its “family friendly/budget” feel can only be seen as a strategic move, however gimmicky the press may find it. An economy outlet that offers a more upmarket product range is well positioned to mop up higher-income families feeling the pinch that would normally dine out in more upmarket outlets. With all CFS restaurants looking for ways to weather the storm of economic recession, expect more high-profile marketing campaigns. It is unlikely that other restaurant chains will choose temporary or even long-term rebranding, but marketing and new product development will play an even more important role in difficult times.

Restaurants will need to be canny in order to safeguard profit margins in the coming months. In this case the margins on pasta and pizza do not differ widely, although cheese price hikes can impact pizza mark ups. However, as food prices increase at different rates, restaurants may need to push products that will bring in higher margins. In addition, no one can afford to ignore the trend towards healthier eating. An introduction or shift to smaller menu portions may also be on the cards as a way to both safeguard revenues and promote healthier eating.Ratna Sita Handayani, Research Analsyt,
Ratna.Sita@euromonitor.com

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