Thursday, April 14, 2011

PC market takes beating from iPads

By Scott Martin, USA TODAY

Apple’s iPad and the tablet revolution are beating at the gates of the traditional PC sector, biting into the category and bringing uncertainty about the future of the industry.

The worldwide PC market suffered a 1.1% decline, with 84.3 million units sold in the first quarter of this year, according to technology research firm Gartner. Forecasts had called for 3% growth in PC shipments worldwide for the quarter.

Gartner analyst Mikako Kitagawa blamed the slowdown in PC shipments on “the hype around tablets.”

Gartner’s report underscores the change in consumer buying trends that’s underway as people around the world turn to tablets for mobile Internet consumption. The data also mark the first year-over-year worldwide PC decline in six quarters. The story for PCs in the United States was even more grim: a 6.1% decline from a year ago.

The quarter following the Christmas buying season is traditionally slow for PC sales. But the holiday hangover this year was especially hard for the likes of Hewlett-Packard, Acer and Dell, whose shipments declined 3.4%, 12.2% and 2.2%, respectively.

Acer was hardest hit because its netbook segment was affected the most by the tablet market’s rise.

Across the U.S., PC makers logged huge declines, with the exception of Toshiba and Apple. The Mac maker was the biggest winner, bagging 18.9% gains and 9.3% of the market. Toshiba tacked on 10.9% growth, to bump up to 10.4% of the U.S. market.

Gartner’s report found that the launch of the iPad 2 had more consumers either buying an alternative device to a personal computer or simply holding back from buying a PC altogether. “The tablet and consumer electronics devices’ effect on PCs will depend on how the tablet market and smartphone continues to evolve going forward,” Kitagawa said. “There are a lot of uncertainties in the market.”

Gartner forecasts Apple will ship nearly 48 million iPads worldwide this year.

Fortunes of Home Improvement Chains Improve as Americans Tackle Repair Projects

After several years of perusing real estate listings and spending Sunday afternoons at open houses, Denise Majeski decided to stay put and fix up her 25-year-old Gurnee, Ill., home.

As the housing market languished even as the economy improved, Majeski determined the financially prudent course would be to fix up the house a little at a time, starting with replacing the windows and renovating the bathrooms.

"Initially we were thinking about moving," said Majeski, 55. "But that would require a mortgage and additional amounts of money. We can do a home improvement at a pace that we can afford."

It is a choice more homeowners are making these days and one that is lifting the fortunes of the long-suffering home improvement industry.

Seasonal hiring at Lowe's Cos., the nation's No. 2 home improvement retailer, is up 15% this spring as homeowners, feeling more secure in their jobs, tackle maintenance projects delayed during the recession.

And Home Depot Inc., the largest home improvement retailer, in February reported its first annual sales increase since 2006, before the housing market crashed. The home improvement business is stabilizing despite the continued weakness of the housing market, Home Depot Chief Executive Frank Blake said at the time.

"People are doing what it takes to be happy where they are," said Jack Horst, retail strategist at Kurt Salmon, a consulting firm. "They are more likely doing maintenance and replacement than big fundamental changes."

A few buckets of paint, brighter lighting and some new door handles are enough to make Rebecca and Bill Klies happy in their new home. The couple, in their 30s, bought their first condo last October in a short sale, in which a lender allows a homeowner to sell a property for less than the amount owed on the mortgage.

Now the Klieses spend weekends at Home Depot and Lowe's getting ideas on how to fix up their West Loop loft in Chicago without spending a fortune. They've swapped out light fixtures, recaulked the shower, put up new towel racks, installed a ceiling fan in the bedroom, bought new light switch plates, painted several rooms and touched up the molding.

"These are simple little fixes that make a big difference overall," Rebecca Klies said.

At the same time, home improvement stores are getting an extra sales boost as homeowners dig out from a winter of lengthy cold spells. The severe weather has left shingles, gutters and downspouts in need of repair and lawns littered with broken shrubs and damaged trees.

"These are the have-to-do projects," said Jim Kane, president of Home Depot's northern division. "We've just come through a tough winter, and the winter has just taken its toll on all those things."

Maintenance and repairs account for about 40% of Home Depot sales, up sharply from recent years when home sales slowed, said Daniel Binder, an analyst at Jefferies & Co., in a report last month.

Spending on home remodeling is expected to rise 9.1% in the first quarter to $125.1 billion from the same period a year ago, according to a widely followed index from Harvard University's Joint Center for Housing Studies. The last time remodeling activity for a three-month period topped $125 billion was the second quarter of 2008.

The center predicts the industry to gain momentum this spring with sales jumping 12.7%, to $132.9 billion, in the second quarter from a year ago, before tapering off to a 6.5% gain, to $123.5 billion, in the third quarter.

More homeowners are tackling basic house projects on their own instead of using general contractors, bringing in electricians or plumbers only for the toughest jobs, said Rich Cowgill, Chicago-area chapter president of the National Assn. of the Remodeling Industry.

Cowgill said he had noticed an increase in the size of the do-it-yourself classes he teaches as a volunteer at ReStore for Habitat for Humanity as more homeowners try to lay tile, replace windows or put up drywall.

"People are dressing up their homes because they've come to the realization with housing devalues that they're not going to move," said Cowgill, who also owns a home remodeling business.

Kris and Dennis Cortes of Flossmoor, Ill., are typical of the post-recession home remodelers, industry experts said. The parents of five children said they chose to stay in the home they bought 20 years ago and to give the house a face-lift. They are adding a couple of gables to the roof, installing a new garage door and updating the landscaping.

"We could buy the megamansion, but we choose not to," said Kris Cortes, 46. "We're choosing to allocate our resources more toward education, charity and savings. I do think the country at large is headed in that direction."

(Source: Chicago Tribune, 04/13/11)

Wednesday, April 13, 2011

Study Examines Gender Differences in Vehicle Purchases

TrueCar.com, a provider of new-car pricing and industry trend information, recently released a demographic study based on gender differences in car-buying behavior during 2010.

"The study shows that women car buyers are more cost-conscious and purchased fuel-efficient vehicles while male buyers were completely the opposite, purchasing vehicles that were either big and brawny, like a large truck, or choosing a high-priced, high-performance vehicle," said Jesse Toprak, Vice President of Industry Trends and Insights at TrueCar.com.

Some of the key findings of the TrueCar.com study, which was based on over eight million retail purchases in 2010, include:

• The brand with the highest percentage of retail sales to females in 2010 was MINI (47.9 percent), followed by Kia (46.8 percent), and Honda (46.0 percent) compared to 2009 when Saturn and Kia tied at 45.2 percent and MINI came in third at 45.0 percent. Rounding out the top 15 brands in 2010 were Nissan, Subaru, Suzuki, Hyundai, Mercury, Mazda, Mitsubushi, Lexus, Volkswagen, Volvo, Saturn and Toyota.

• The highest percentage of male buyers primarily purchased exotic brands. There were five brands in 2010 at 10 percent or less for retail sales to women, including Ferrari (6.4 percent), Lotus (7.2 percent), Lamborghini (7.4 percent), Maybach (8.0 percent), and Rolls Royce (9.3 percent) compared to 2009 when there were six brands; including Bugatti (0 percent), Maybach (3.7 percent), Ferrari (5.1 percent), Lamborghini (5.5 percent), Rolls Royce (8.0 percent), and Aston Martin (9.0 percent). Also in the top 15 brands with the highest percentage of male buyers in 2010 were Tesla, Aston Martin, Maserati, Porsche, Bentley, GMC, Jaguar, Dodge, Land Rover and Ford.

• The top ten models that had greater than 50 percent retail sales to females and at least 1,000 annual retail sales in 2010 were: Volkswagen New Beetle, Nissan Rogue, Volkswagen Eos, Volvo S40, Jeep Compass, Honda CR-V, Nissan Sentra, Hyundai Tucson, Toyota RAV4 and Toyota Yaris.

• The top ten models that had greater than 50 percent retail sales to males and at least 1,000 annual retail sales in 2010 were: Porsche 911, GMC Sierra, Chevrolet Corvette, Chevrolet Silverado, Ford F-Series, BMW M3, Ford Ranger, Toyota Tundra, Dodge Ram and Audi S5.

(Source: TrueCar.com, 04/07/11)

Tuesday, April 12, 2011

Cheers: Alcoholic Beverage Spending Increases

2010 was a positive year for alcoholic beverages, with the exception of non-craft domestic beers, according to the just-released "Handbook Advance 2011" report from the Beverage Information Group (BIG).

Meanwhile, a new Harris Interactive poll on Americans' alcohol consumption habits provides some additional insight. Notably, 29% of those 21 or older -- or three in 10 -- report drinking alcohol at least once per week, including 5% who drink daily and 10% who drink several times per week.

The Beverage Information Group reports that distilled spirits and wine both saw gains last year, continuing to grab share from the overall beer category. The analysts attribute the trends largely to the improving economy and a return to a "trading up" trend that had dominated the industry prior to the recession.

Distilled spirits -- which have seen steady growth over the past two years and 13 consecutive years of at least some growth -- saw sales increase 2.1%, to 192.7 cases, last year. On-premise or restaurant/bar consumption of distilled spirits also showed a slight uptick, especially in casual dining chains.

The wine category saw consumption grow by 1.7% (up from 0.8% in 2009), to 301.9 million 9-liter cases. Domestic table wines showed a particularly strong performance, outpacing imports.

Wine sales continue to increase in large part because of the wide range of products and growing number of available varietals, notes BIG manager of information services Eric Schmidt. "The Millennial generation continues to be a target for wine marketers as they position their brands as affordable and fun," he points out.

Total beer consumption declined 1.9% to 2.83 billion cases, although imports returned to showing some sales growth, in part because consumers are returning to on-premise consumption, according to the report.

Domestic beer consumption decreased 2.8%, with all categories showing declines except the super-premium, craft and flavored malt beverages category, which continued to see growth due to the craft beer segment.

Craft beers' growing popularity has been well documented, and spotlighted by developments such as Anheuser-Busch InBev's recent announcement that it is acquiring Chicago craft brewer Goose Island for $38.8 million as part of a broader strategy to increase its premium/craft offerings.

The Brewers Association reported that sales volume among small, independent craft brewers rose 11% last year, in contrast to a decline of 1% among total U.S. brewers (although crafts still represent just 4.9% of the overall beer market). MillerCoors' overall sales declined 3%, but its craft and import brands, led by Blue Moon (now the country's largest-selling craft -- at least as defined by MillerCoors), saw double-digit growth, The Wall Street Journal reported.

Who's drinking what?
On the consumption front, in addition to the stats cited above, the Harris Poll -- conducted online in March -- also found that 20% of adult Americans report drinking alcohol at least once per month, and 15% drink it several times per year. Nearly one-quarter (22%) say they never drink alcohol.

Nearly two in five men (38%), versus 21% of women, report drinking alcohol at least once per week.

And while overall beer sales have slowed, among those who imbibe at least several times per year, beer is the top choice. Nearly two-thirds (63%) report that beer is their choice when they drink, while 54% report drinking domestic wine. In addition, 41% drink vodka. These top three preferences have remained consistent over the past two years, according to Harris.

As for other choices, about one-third (34%) drink rum, 28% tequila, 28% imported wine, and 20% various types of whiskies, such as Irish or Canadian. Further down the list are champagne (17%), cordials and liqueurs (17%), bourbon (15%), gin (14%), scotch (11%), cognac (8%) and brandy/Armagnac (7%).

More men than women drink beer (75% versus 50%), bourbon (23% versus 6%) and scotch (17% versus 4%). More women than men drink domestic wine (63% versus 45%), champagne (23% versus 13%) and foreign wine (31% versus 26%).

Beer comes out on top when people are asked which type of alcoholic beverage they drink most often. One-third of those who drink at least several times a year (34%) say they drink beer most often, versus 22% saying they drink domestic wine most often. One in ten (12%) drink vodka most often, versus 6% for rum and 5% for imported wine. All other alcohol types are below 5%.

Alcoholic beverage consumption declines somewhat with age: 33% of Echo Boomers (21-34), 30% of Gen X/Millennials (35-46) and 29% of Baby Boomers (47-65) report drinking at least once per week, versus 26% of those 66 and older.

Beverage choices clearly vary by age. Beer is the dominant choice among the youngest groups, with 37% of Echo Boomers preferring beer (versus 20% preferring domestic wine), and 41% of Millennials preferring beer (versus 14% preferring wine). The beer preference is somewhat less marked among Boomers, with 33% saying they drink beer most often versus 22% who report drinking domestic wine most often.

However, among those 66 and older, wine is the preference of 36%, versus 22% who prefer beer.

(Source: Marketing Daily, 04/06/11)

Independent Pharmacies Earn Top Scores from Consumers

An overwhelming majority of Consumer Reports readers are highly satisfied with their independent pharmacy experiences, as compared with experiences at some of the national chains, a report to be published in the magazine's May issue found.

While customers said they generally were satisfied with their pharmacies, some were irked by long waits and lagging service at some big-box stores. "Chalk one up for the little guy," stated Tod Marks, senior editor of Consumer Reports. "We found that the independents made fewer errors, offered swifter service at the pharmacy counter and were more likely to have medications ready for pickup when promised."

More than 90% of Consumer Reports readers gave independent drug stores top scores across the board for pharmacists' knowledge about drugs and other products, helpfulness and courtesy, speed, accuracy and personal service. Included in this group were McKesson's HealthMart franchise group and Cardinal Health's The Medicine Shoppe. Readers who shopped at independents were twice as likely as chain drug store shoppers to characterize their pharmacist as easy to talk to and able to give them a one-on-one consultation.

Almost 1-in-4 Consumer Reports readers fill their prescriptions at big-box stores, up from 14% in 2002, with price cited as an important reason for shopping there. One-in-4 mass merchant shoppers complained of a long wait at the service counter. And when a store was out of a drug, 33% waited for two or more days to get their prescriptions. Almost as many readers reported their pharmacy was out of stock on the medicine they needed at least once in the past year.

More than 1-in-5 cited slow service at the big-box counter as a complaint; and 15% of those surveyed complained that their medicine wasn't ready for pickup when promised.

Convenience was a key factor in customer satisfaction -- almost half of readers surveyed reported that the ability to get in and out quickly with medicine in hand was an important consideration when choosing a drug store.

(Source: Drug Store News, 04/05/11)

Monday, April 11, 2011

50 Million And Growing: Why It’s Time For Businesses To Pay Attention to Hispanics

By GLENN LLOPIS

The following is an editorial I wrote that was featured on AOL Latino last week (in Spanish) in response to the most recent US Census results and the growing Hispanic population.

Hispanics’ presence, impact and influence in the workplace in growing faster than corporations know what to do with it. Because most corporations don’t support a dedicated infrastructure to recruit, retain and create leadership development programs for Hispanics, the majority of Hispanics simply assimilate in the workplace to be accepted and thus are not given the opportunity to showcase their authentic identity and unique skill-sets that make them potentially great leaders.

It’s time we all we begin to actively engage in how to best maximize the opportunities that 50 million American Hispanics can bring to the revival of our economy.

I would appreciate your candid feedback.

It’s official: the Census counts more than 50 million Hispanics in the US. This acknowledgment of the new prominence of Hispanics in the US brings with it a “to-do” for both the country and the Hispanics themselves:

To-Do #1: It’s time for the US to embrace diversity and get real about becoming a 21st century country.

To-Do #2: It’s time for Hispanics to stop believing themselves to be victims and embrace their leadership identity.

As the Hispanic population continues to grow, America’s corporations, schools, colleges and universities must provide culturally tailored training and educational programs to allow Hispanics to flourish in the post-2008 economy. These programs need to focus on helping Hispanics discover their authentic identity as leaders.

It’s time for America as a whole to understand the real value, the unique characteristics and the new types of opportunities that Hispanics can create for the country. The identity crisis that Hispanics are faced with each day has made it difficult for them to advance, thus damaging their identity and limiting their contributions to the economy.

The fiercely competitive global market requires everyone to begin contributing in newly meaningful and purposeful ways to the global economy. Hispanics must embrace this to-do like everyone else. They cannot afford to continue thinking of themselves as victims, and the US economy cannot afford that victim thinking either.

As I discuss this issue with executives in the boardroom and professors in the classroom, they often refer to Hispanics as second-class citizens. And because of this, Hispanic professionals, adults and children would rather assimilate and reject their essential identities. If this assimilation continues, we will lose the brilliance and innovative flair of the Hispanic population, and the US economy will suffer as a result, in the competition with the rest of the world.

To be sure, Hispanics have created their own barriers to advancement. Because Hispanics in the US are not a homogeneous community, they waste time debating which of their mother countries has more clout in the US, rather than getting on with it and investing in themselves.

The time has come for Hispanics to embrace their unique cultural differences and realize the power that this diversity gives them. Hispanics must recapture their authentic identities and train non-Hispanics to understand them. Hispanics must embrace their immigrant perspective, circular vision, Latin passion, entrepreneurial spirit, generous purpose and cultural promise – the natural characteristics that are inborn in their culture and that allow them to be highly effective contributors to the economy. It’s time for Hispanics to take it upon themselves to break out of their identity crisis and claim influence amongst their non-Hispanic peers.

Hispanics need to stop being viewed as victims of lost opportunities in their mother country and start being held accountable as new sources for innovation, economic prosperity, global influence and the economic revival of our country.

It’s time for Hispanics to earn the right to be more influential in America. Population growth alone does not entitle Hispanics or any other group in society to own the resources of our great country.

Until Hispanics discover their authentic leadership role, they will continue to be misrepresented and misunderstood. Today, many non-Hispanic whites believe they are financing the Hispanic population growth. Hispanics must seize the moment, take on their responsibilities, and change the role of the Hispanic immigrant in the United States. At 50 million strong, and growing faster than any other group, Hispanics must grow up now.

Facebook China? What Would The U.S. Say About It?

By GADY EPSTEIN

Facebook as the rest of the world knows it is still blocked in China, but with Baidu’s help, Mark Zuckerberg may be bringing Chinese users a government-approved version. Before Facebook China records its first status update, though, we will hear first from the authorities — not only in China, but also in the U.S.

The Web portal Sohu.com reported today, citing Baidu sources, that Facebook and the Chinese search giant have agreed to launch a Chinese social networking service that would stand alone from the worldwide service (the companies aren’t confirming this yet, and Sohu.com’s original report was taken down). The report follows up on respected China tech expert Hu Yanping’s tweet on Sina Weibo on Friday that Facebook has signed such a deal with a Chinese Internet company, and Baidu makes sense because it has so far, like Google in most other places, failed to gain traction in social media.

What happens now? For a while yet, nothing, beyond some brow-furrowing in China and perhaps some grandstanding in the U.S. If there is a deal, it must still make it over some imposing regulatory hurdles in China, and it will attract some attention from Capitol Hill. A lot has happened since Zuckerberg’s diplomatic mission to China in December, when he visited with most of the heads of China’s biggest Internet and mobile companies, including billionaire Robin Li’s Baidu, billionaire Jack Ma’s Alibaba Group, Sina Corp. and China Mobile.

I said back then that this “vacation” of his was laying the groundwork for an eventual deal to get Facebook into China somehow, and I believed Zuckerberg would inevitably succeed. I still think that, because he is fully committed to make the kinds of concessions to do business in China that did not come so easily for Google.

Still, Zuckerberg has his work cut out for him on both sides of the Pacific. This year the environment for the world’s most influential social networking service, already difficult in China, has become even more so. With protestors in the Middle East openly thanking Facebook and Zuckerberg for their help, and with calls for a Jasmine Revolution in China spurring an extremely harsh crackdown on lawyers and activists, Chinese authorities will be wary about welcoming a Facebook China. The imprimatur of Baidu, the trusted anti-Google, would help, but would not guarantee success. Beijing’s distrust of the foreign Internet should not be underestimated, as China tech blogger Bill Bishop notes:

Writing in the Party journal Seeking Truth in December 2009, Meng Jianzhu, the Minister of Public Security, wrote: “The internet has become a primary method for the anti-China forces to infiltrate us and amplify destructive energy. This provides new challenges in maintaining state security and social stability.” Censorship of foreign content has shifted from news sites to Web 2.0 services with superior communication and organizing functions, such as Twitter and Facebook, which the government accuses of becoming a rallying point for dissidents and separatists. A report on new media published by the Chinese Academy of Social Sciences in July bluntly states: “Foreign social networking sites have become a tool for political subversion used by Western nations.”

In the U.S., too, there will be questions for Zuckerberg, from some members of Congress and the Obama administration, about all the concessions he would have to make to a country that is in the midst of blackening its already lamentable record on human rights. The recent detention of artist-dissident Ai Weiwei on suspicion of “economic crimes” has intensified scrutiny of China, at least for the moment.

Ultimately, though, I still believe Facebook China will happen because Zuckerberg wants it that badly. So must Li: Baidu has failed to find the right formula for social networking in China, while Facebook clone Renren (soon to IPO) and Twitter-Facebook hybrid Sina Weibo have been hugely popular; Facebook.cn can be Baidu’s social solution.

Facebook and the anti-Google, teaming up, a year after Google pulled out of China. Some people in China and the U.S. wouldn’t like a Zuckerberg-Li deal, but I suspect the two men reportedly making it think it makes perfect sense.

Gas sales drop as prices rise and more drivers shift to 'Park'

By Chris Kahn, Associated Press

NEW YORK — With the price of gas averaging $3.77 a gallon Monday, there are signs that Americans are cutting back on driving, reversing a steady increase in demand for fuel.


Gasoline sales have fallen for five weeks, first time that has happened since November, according to MasterCard SpendingPulse, which tracks spending at 140,000 service stations nationwide.

Before the decline, demand had increased for two months. And some analysts expected that trend to continue because the economic recovery is picking up, adding 216,000 jobs in March.

“More people are going to work,” said John Gamel, director of gasoline research for MasterCard. “That means more people are driving and they should be buying more gas.”

Instead, about 70% of the nation’s major gas-station chains say sales have fallen, according to a March survey by the Oil Price Information Service. More than half reported a drop of 3% or more — sharpest since the summer of 2008, when gas soared past $4 a gallon.

This year, gas prices shot up as unrest in North Africa and the Middle East rattled energy markets and increased global demand for crude oil squeezed supplies.

Now, only Wyoming has an average gasoline price lower than $3.50 a gallon. Gas is already 41 cents more expensive than at this point in 2008, when it peaked at $4.11 in July.

Most analysts are sticking to forecasts of a high of $4 a gallon, though some have predicted $5 gas.

Across the country, some drivers are hunting for cheaper gas with the help of a mobile phone app. Others are reconsidering mass transportation, or trading in their SUVs for a more fuel-efficient vehicles.

Kim Cramer, who works for Radio Flyer in Chicago, has started walking and carpooling. She’s also learned to be choosy, buying gas in suburbs, where she’s learned she can save as much as 20 cents a gallon.

“I try to fill up anywhere besides the city,” she said.

About two-and-a-half days’ worth of Whitney Shaw’s pay each month goes to fill up her 2001 Hyundai Accent. The administrative assistant is thinking about taking the bus for her daily commute, 50 miles each way between Branford, Conn., and Hartford.

“It’s three hours of pay from work just to fill up my tank even once, so I’m definitely feeling it,” Shaw said while filling up for $3.61 a gallon at a Valero station on the Berlin Turnpike.

Some Americans also are turning to smaller, more fuel-efficient cars. Sales of Hyundai Sonata and Elantra soared 55% in March, while sales of Chevy’s Suburban SUV dropped nearly 24%.

MasterCard’s report shows drivers bought 2.7 billion gallons of gas last week, down 3.6% from the same period in 2010, when it was 80 cents a gallon cheaper.

The decline is somewhat puzzling because Americans typically curb their driving only as a last resort, after sacrificing other forms of discretionary spending, like shopping for clothes, or going to movies, concerts and restaurants.

But demand for gas is falling while other types of spending are on the rise. Retail sales rose 2% in March compared with a year earlier, surprising economists who were expecting no increase or even a decline.

Gamel said it’s too early to tell whether this is the kind of long-term decline in gasoline demand that the economy endured during the recession. Prices already are in the range where Americans started to leave their cars parked several years ago. Drivers began to cut back on gas in October 2007, when the national average approached $3 per gallon.

Even if demand for gas keeps falling in the U.S., it probably won’t be enough to force the price down. That’s because worldwide demand for crude oil keeps rising.

Global demand for oil is about 87 million barrels a day, matching its peak, in 2007. It is expected to grow to more than 88 million barrels a day by year end, with most of the increase coming from China. At the same time, supply is shrinking because of uprisings in Libya and elsewhere in the Middle East.

In the United States, people are watching their local gas stations a little more carefully. Some are even getting rid of their old gas-guzzler.

Andrea Meyer of Manteno, Ill., has done both. She buys gas in the middle of the week because prices seem to jump over the weekend. And she recently sold her 2005 Chevy Envoy SUV and bought a 2011 Chevy Cruze, which gets 30 miles per gallon. She still spent about $200 on gas for the new car from mid-February to mid-March.

“I won’t go hungry tomorrow,” she says. “It’s just taking away from me getting ahead faster. It throws off everything. It immediately makes you reprioritize.”

———

Associated Press Writers Barbara Rodriguez in Chicago, Ben Dobbin in Rochester, NY, and Stephanie Reitz in Hartford, Conn. contributed to this story.

Super-Charge Product Sampling, Event Marketing

There's been a lot of research conducted to figure out what consumers want from brands on social media networks such as Facebook. What can the brand provide? What type of value can it add? One of the most frequently cited is the coupon -- which is a bit underwhelming, leaves the brand out of the conversation and may be leaving dollars behind, too.

Consumers don't go to the web to talk about brands (unless they're complaining); they go to share their experiences. A better way to get consumers talking about brands online is to give them something to talk about in the first place.

Product sampling and event marketing have long proven to be the most effective way to generate trial and drive purchase conversion. Nine out of ten consumers say they would purchase a product if they experienced it and were satisfied with it, says the Promotion Marketing Association. And today, social media tools can extend the story on a scale never before imagined. Once the products are distributed, consumers can and should be encouraged to share their experiences online. We all know the power of word of mouth to generate trial and use. Nielsen reports that eight out of ten consumers say they'd try products recommended to them.

Sounds simple, but don't think you can merely hand your product or share your experience with savvy, time-crunched consumers and expect that they'll automatically try it and then talk about it on Facebook. The most effective sampling efforts reach consumers at the point of use, when and where they are most receptive to the brand's message. For example, 40% of travelers forget to pack toiletries. Giving away a razor or toothbrush in hotels can go a long way; hotel gift shops are so expensive. Provide an energy drink or other healthy snack at the top of a ski slope. You get the idea.

Then what? Once you've identified where your consumers are open to trying new things and what their needs are, give them a reason to share their experience. Research tells us that consumers are happy when they're heard and respected. But you've got to make it easy for that sharing to happen and for them to be heard.

Drive consumers to a powerful online engagement platform that enables them to share their opinions across their social media profiles. Once there, give your new brand advocates space to write what they think, through free-form comments and with relevant surveys.

Programs designed with this model consistently demonstrate a swift increase in conversations and reviews across social media channels and significant increase in intent to purchase, to recommend the product, and an increase in share of voice over the competition. A nutritional supplement brand using this method saw Facebook fans increase 94%, and 85% said they intended to purchase the product. A razor brand increased share of voice to competitors by 18%.

Bottom line? The most authentic way to get someone to provide a recommendation is to get him or her to experience the product, first-hand. Then, their review is real. It's authentic. Offering a coupon on Facebook is like dropping in on a cocktail party conversation without being invited. Give them something meaningful when they want to receive it, ask them what they really think, and have the tools at the ready that enable them to share their opinions with their friends with ease. That's authentic engagement that delivers a real return on your marketing investment.

(Source: Marketing Daily, 04/06/11)

Friday, April 8, 2011

US to use Facebook, Twitter to issue terror alerts

WASHINGTON — The U.S. government's new system to replace the five color-coded terror alerts will have two levels of warnings — elevated and imminent — that will be relayed to the public only under certain circumstances for limited periods of time, sometimes using Facebook and Twitter, according to a draft Homeland Security Department plan obtained by The Associated Press.

The government's color-coded warning system is being replaced with a more specific and informative plan that would offer two levels of alerts.The public could see the warnings on Facebook and Twitter.

Some terror warnings could be withheld from the public entirely if announcing a threat would risk exposing an intelligence operation or a current investigation, according to the government's confidential plan.

Like a carton of milk, the new terror warnings will each come with a stamped expiration date.

The 19-page document, marked "for official use only" and dated April 1, describes the step-by-step process that would occur behind the scenes when the government believes terrorists might be threatening Americans. It describes the sequence of notifying members of Congress, then counterterrorism officials in states and cities and then governors and mayors and, ultimately, the public. It specifies even details about how many minutes U.S. officials can wait before organizing urgent conference calls among themselves to discuss pending threats. It places the Homeland Security secretary, currently Janet Napolitano, in charge of the so-called National Terrorism Advisory System.

The new terror alerts would also be published online using Facebook and Twitter "when appropriate," the plan said, but only after federal, state and local government leaders have already been notified. The new system is expected to be in place by April 27.

The government has always struggled with how much information it can share with the public about specific threats, sometimes over fears it would reveal classified intelligence or law enforcement efforts to disrupt an unfolding plot. But the color warnings that became one of the government's most visible anti-terrorism programs since the September 2001 attacks were criticized as too vague to be useful and became fodder for television comedians.

The new advisory system is designed to be easier to understand and more specific, but it is impossible to know how often the public will receive these warnings. The message will always depend on the threat and the intelligence behind it.

For example, if there is a specific threat that terrorists were looking to hide explosives in backpacks around U.S. airports, the government might issue a public warning that would be announced in airports telling travelers to remain vigilant and report any unattended backpacks or other suspicious activity to authorities.

If the intelligence community believes a terror threat is so serious that an alert should be issued, the warning would offer specific information for specific audiences. The Homeland Security secretary would make the final decision on whether to issue an alert and to whom — sometimes just to law enforcement and other times to the public.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Are Digital Marketers Ignoring Baby Boomers?

Boomers' lives are going in many different directions, as empty-nesters, step-parents, grandparents and caregivers. For all of these roles, the Internet and digital media are absolutely essential.

eMarketer estimates 78.2% of this cohort is online, nearly 60 million adults. Even as their numbers decline, that penetration rate will remain high through 2015. And they control more than $2 trillion in annual spending.

"The baby boomers grew up being chased by marketers and advertisers that tailored products and brands to appeal to them," said Lisa E. Phillips, eMarketer senior analyst and author of the new report, "Digital Lives of Boomers: Reaching Them Online." "Now the median age of this cohort is 55, and many boomers feel as if they have dropped off many marketers' radar."

Boomers spend more time and money online than any other demographic. Younger boomers (ages 47 to 55) spent an average of 39.3 hours online per month in 2010, according to the Pew Internet & American Life Project. Older boomers (ages 56 to 65) averaged only slightly less, at 36.5 hours. A lot of that time was spent shopping -- and buying. Forrester Research reported that boomers spent an average of about $650 online over a three-month period in 2010, compared with $581 by Generation X internet users (ages 35 to 46) and $429 by Millennials (ages 18 to 34).

Boomers also stay connected on the go. eMarketer estimates 86.9% will have a mobile phone this year, and 16.9 million boomers will access the internet from a mobile browser or installed app. In 2015, that number will reach 25.4 million, or nearly 40% of boomer mobile users. This is a market that content providers, game publishers and brand marketers should not pass by.

Marketers who widen their messages to include boomers would be wise to make their efforts ageless, rather than targeted at an older set.

"Boomers are immediately turned off by association with old age, infirmity and decline," said Phillips. "Most brands do not want to 'age' their products with blatant appeals to older consumers. The win-win is to create an overarching brand message that gives a nod to boomers, but also includes younger adults and even grandchildren."

This often means turning a negative -- fears about failing health, for example -- into a positive, such as showing the benefits of products that contribute to a healthy lifestyle.

(Source: eMarketer, 04/04/11)

Rising Food Prices Spiking Coupon Use

According to a new survey conducted by Harris Interactive, and commissioned by Coupons.com, rising costs of food are giving Americans sticker shock at the grocery store, and 95% of U.S. adults plan to employ at least one savings strategy at the grocery as a result. And, says the report, consumers, particularly those in higher income brackets, are responding with additional saving strategies.

The survey found that incorporating coupons was the most popular planned activity to off-set rising food prices, followed by other budget-stretching actions:

* Using coupons (72%)
* Comparing unit prices of package sizes (71%)
* Shopping at discount grocery stores (66%)
* Stocking up when items reach rock-bottom prices (64%)
* Buying in bulk (57%)

Steven Boal, CEO of Coupons.com Incorporated, opines that "...(since) food prices are expected to continue to rise this year to potentially all-time highs...consumers are...stretching budgets, and...will take matters into their own hands when it comes to mitigating the effects of higher food costs."

Adults with higher incomes are actually much more likely to pinch pennies than their lesser earning counterparts, notes the study. Households with incomes in the $75 to $100K range were more likely than households that make less than $35K per year to plan to employ saving strategies, including:

* Using coupons (81% compared with 63%)
* Comparing unit prices of package sizes (88% versus 61%)

Additional impacts of budget stretching needs and solutions include:

* Adults with college degrees are not only significantly more likely to plan to use coupons than those without high school degrees (78% vs. 51%), but they also plan to use other savings tactics more frequently, including comparing unit prices (83% vs. 66%) and buying in bulk (62% vs. 42%)
* Women are more likely to use coupons to gain more savings compared to men (78% vs. 66%)
* Women are also more likely to compare unit prices of package sizes over men (75% vs. 67%), and stock up on goods when they reach rock-bottom prices (68% vs. 60%)
* 71% of U.S. adults plan to compare unit prices to get the most out of their grocery budget.
* Adults in larger households (3 or more people) were more likely than those living alone to comparison shop (72% vs. 61%)

(Source: The Center For Media Research, 04/04/11)

Friday, March 18, 2011

Nine Social Networks Your Business Should Be Using

Part of putting together your social media strategy is choosing which social networking platform works best for you. You may assume that Facebook is the end-all of social networks, but there may be better opportunities for your business with different platforms. Here are nine different social networks and how your company can benefit from each:

1. Facebook. You will be hard pressed to find any company or business that wouldn't benefit from Facebook. Easily the largest social network, your organization will be able to reach the largest amount of fans. Facebook ads targeting feature is interest specified which means you can connect with the exact people who would be interested in your product. Facebook Insights also allows you to measure your page activity so you can track your progression.

2. Twitter. Twitter is the second most popular social networking site. Use Twitter to humanize your brand, provide excellent customer service, and engage with your fans. It is also great for seeking out new fans by searching people who are talking about your brand, product, or field of interest. The one thing businesses need to remember is not to tweet as a brand. Remind your followers that there is a real live person on the other end of cyberspace.

3. Foursquare. Businesses can benefit from Foursquare in a number of ways. Offering deals for check-ins or mayorships are a fun, competitive way to get your customers coming back for more. For bigger brands and promotions, you can even have your own badge. Although they are a huge investment, the badge will live on forever, even if it is only accessible for one day!

4. LinkedIn. To be the best, you have to have the best employees. Instead of waiting until the perfect fit comes and finds you, you can go out and seek them. LinkedIn has not only become the number one professional social network, but also one of the top places for recruitment. You can create a company profile and allow others to follow your organization. Also, LinkedIn ads now has the same targeting features as Facebook. Use this to advertise your company or find great employees.

5. YouTube. Using YouTube is another great way to give a human face to your brand. Posting videos of behind the scenes interactions will give your fans an inside look into your organization. Also, having videos of the CEO, or other top executive, will bring your fans even closer to your company. A video only takes about a minute to make, so grab a FlipCam and start engaging your followers!

6. Quora. If you are a company with a special expertise, then Quora can be very beneficial for you. Not only can you follow similar thought leaders, and ask questions about your industry, but you can also reach out to those in need and answer questions. Spread the work about your company by answering questions and becoming an expert in that field. This is a direct way to connect with fans that have similar interests to your business.

7. Flickr. Flickr can be especially beneficial for companies that are visual. Whether you are showcasing products or homes, you can use Flickr to have easily searchable photos. The tagging features on Flickr make it effortless for your fans to find exactly what they are looking for. They are also a great place for you to hold photos when having contests and giveaways. When using Flickr, it is important that you integrate it well into your other social media platforms.

8. Tumblr. Corporate blogging is the new frontier. Having a company blog will create a real conversation about your brand. Many organizations have corporate blogs, and not just social media companies. These blogs will help you showcase your expertise, attract customers and future employees.

9. Meetup. Meetup is all about bringing your social relationships into a real-life setting. Whether it is once a month or once a year, schedule a meetup where your fans and followers can get together and interact in real life. Make a special event out of it! Have a fan-appreciation meetup or maybe just a meetup for other thought leaders to gather and network. Social media may be enhancing communication from companies to fans, but nothing beats face-to-face communication.

No matter what your business, there is a social network for you. Do you need them all? Probably not. Specify what your social media strategy is, what your goals are, and from there decide which social network will help you best accomplish that.

Which of these social networks does your business use? Which ones would you have added? Share your thoughts in the comments below!

(Source: Online Marketing Connect, 03/03/11)

Online News Surpasses Newspapers

The inevitable shift finally came in 2010, as more Americans got their daily news from online sources other than print, according to the Biannual News Consumption Survey from the Pew Research Center for the People & the Press. The findings were released this week as part of Pew's annual overview of the news media.

Specifically, Pew found that the proportion of U.S. adults who said they got their news online the day before increased from 29% in 2008 to 34% in 2010. The proportion that cited print newspapers as the source of their recent news fell from 34% in 2008 to 31% in 2010.

The Internet came out ahead of print in terms of time spent with news sources, with an average 13 minutes per day, according to Pew. That stat beats print newspapers at 10 minutes, but trails TV at 19 minutes and radio at 15 minutes.

This good news for broadcast and cable TV was tempered somewhat by a more pronounced shift in news consumption habits among younger adults. Pew found that the Internet is now the No. 1 news source for the 18-29 cohort, with 65% saying they get most of their news online, compared to 52% for TV and just 21% for newspapers.

By contrast, TV still dominated in the 30-49 cohort, with 63% citing TV news as their top news source compared to 48% for the Internet.

It's worth noting that online news consumption is still dominated by traditional news sources -- including Web sites maintained by newspapers, which many publishers see as the key to future success.

Conversely, Pew noted that online advertising has not proved nearly as lucrative as print for newspaper publishers, raising questions about their ability to maintain both profitability and large news-gathering organizations.

Pew also noted the rise of online-only news operations, such as The Huffington Post, which now hold seven of the top 25 spots for online news consumption. However, five of these seven generate most of their traffic by aggregating traditional media.

(Source: Media Daily News, 03/15/11)

Monday, February 28, 2011

Learn from Groupon and Pepsi's Mistakes

When you build a business from zero to several billion dollars in sales in a couple of years, quality control is bound to suffer somewhere.

For Groupon, that weak link proved to be Super Bowl advertising development. (I assume you've all seen the ill-conceived ads. Groupon yanked them after a public outcry, but as of Sunday you could see the Tibet creative on this TV station website .)

Instead of adding another critique of the flawed campaign to the chorus, I have some advice for Groupon and anyone else creating cause-related programs:

Build a feedback loop into your work.

It's depressing how rarely solid market research analysis is conducted on cause-related campaigns. Investing in understanding how your campaign will be perceived and later determining what went right and what went wrong can pay huge dividends.

Serious research (described in this MediaPost article) has helped Pepsi make some very smart alterations to this year's version of its crowdsourced Refresh campaign. For example, it's creating more opportunities for smaller groups and cutting down on abuse by substituting a lottery for its first-come, first-served entry system and eliminating $250,000 awards to fund a greater number of smaller awards.

Internal Pepsi research revealed that bottlers and other stakeholders didn't feel the program supported sales. In 2011, cans and bottles will carry promotional messaging and offers such as bottle cap offers for extra votes.

Another example: Since eBay Giving Works launched in 2003, ongoing analysis has transformed it from a nice program to a serious business-building enterprise that keeps growing in terms of sales impact and charitable contributions.

Improvements such as making it easier for consumers to donate to their favorite nonprofits pushed donations from eBay sellers and buyers to a record $54.8-million in 2010, a 7-percent bump.

Lets hope that armed with solid research and planning, Groupon will use its marketing muscle to create future cause campaigns that generate as many accolades as this year's effort yielded brickbats.

(Source: David Hessekial, Cause Marketing Today, 02/22/11)

Friday, February 18, 2011

Most Popular Marketing Tool For Local Biz: Facebook

Engaging local marketers like never before, a striking 70% of small businesses now use Facebook to reach consumers, according to new research from small-business social network MerchantCircle.

Up from 50% a year ago -- and topping the 66% of small businesses that currently use Google search advertising -- Facebook now ranks as the most popular marketing tool among local businesses.

True, adoption doesn't equal effectiveness, but 37% of local merchants now rate Facebook as one of their most effective tools -- just behind the 40% that cite the prime effectiveness of Google search.

Supplementing search and email marketing, time- and cash-strapped business owners are gravitating toward simple, low-cost online marketing methods like Facebook. "Many merchants are working with very small budgets and almost no marketing resources," said Darren Waddell, VP of marketing at MerchantCircle. As result, "the marketing methods we see gaining the most traction are therefore the ones that offer merchants simplicity, low costs and immediate results."

On the other hand, buzzworthy marketing methods like mobile and group buying have yet to win over most local merchants, according to MerchantCircle's quarterly Merchant Confidence Index survey of over 8,500 small and local businesses nationwide.

According to the report, more than half of local merchants are spending less than $2,500 a year on marketing, and the majority -- 60% -- have no plans to raise their budgets this year.

These merchants are also price-sensitive, as one quarter of merchants cite high costs as their chief complaint about online marketing. Merchants are also struggling to manage their existing programs, the research finds, and don't have the time or money to take advantage of new, unproven services. Indeed, 37% cite lack of time and resources as their top online marketing challenge.

Also of note, Facebook Places has soared past Foursquare to reach a 32% current usage rate -- with an additional 12% of small businesses expressing their intention to use Facebook Places in the coming months. By contrast, Foursquare's usage has remained unchanged from the fourth quarter of last year at about 9%.

Twitter has also grown in popularity over the past year, with nearly 40% of local merchants using the microblogging platform to build awareness and community around their products and services -- up from 32% since the fourth quarter of 2009.

Overall, less than 15% of merchants report doing any sort of mobile marketing or advertising, and more than half have no plans to do so in the coming months. Lack of understanding remains a huge barrier to adoption, as 74% of merchants report not having a good idea of how to reach consumers via mobile marketing.

Group buying will also take time to penetrate the local market, according to MerchantCircle, as only 11% of local merchants have offered a "daily deal" using a service like Groupon or LivingSocial, with an additional 20% planning to do so in the coming months. Results of group buying have also been mixed and may be hindering growth, as 50% of businesses that have run a daily deal campaign say they would not do so again

(Source: Online Media Daily, 02/15/11)

Thursday, February 17, 2011

Home Improvement Retailers Trying to Woo Women

To appeal better to women, Home Depot has started offering Martha Stewart curtains in hues of "tilled soil," paint in "cornbread," and rugs in colors like "Wilderstein brook trout."

To make shopping simpler for women, nearly all Martha Stewart Living products carry an icon, such as a moon or a star, to help coordinate and match items to room makeovers. Of course, a more obvious part of the women's push is the Martha Stewart line, which debuted in late 2009 with patio furniture and has since expanded into cabinets, draperies, carpets and paint. Lighting, vanity tables and bathroom décor will be added this spring.

With major renovations and big-ticket items stalled by a slow housing recovery, smaller projects are the big focus for home improvement stores and women are more of the target customer.

"For years, we've always had a bad -- I don't want to say a bad reputation, it's more that people look at our business and think it is male-oriented, dominated," Gordon Erickson, the senior vice president for merchandising and décor at Home Depot, told The New York Times.

"Fifty percent of our customers are female. We need to offer her products that she wants."

Among other chains, Lowe's, which claims to have had a more women's-oriented focus as part of its founding, designs its stores with less steel and more wood tones, and "comfort zones" where customers can review paint samples or remodeling plans.

In another effort, True Value recently opened a corporate-owned store near Chicago touting wider aisles, better lighting and clear signs.

The Times article points to the challenges the DIY channel has creating a comfortable shopping environment for women. Lauren Butler, who grew up helping her parents with home improvement projects, told the Times she was pleased to see that Home Depot had added Martha Stewart items at reasonable prices. But she still often feels unwelcome in the DIY channel.

"Sometimes they seem to feel like you're just a girl, you don't know what you're doing, you need to get your husband in here," said Ms. Butler. "It's intimidating for any female to walk into a home improvement store."

(Source: Retail Wire, 02/07/11)

Friday, February 11, 2011

Mobile Becomes Marketing Discipline for Ad Strategies

Mobile handsets are fast becoming a shopping tool. Near field communication (NFC) technology catapults that movement with the inclusion in devices and service by Google, Nokia, Apple, AT&T, T-Mobile USA and Verizon Wireless.

This year, mobile becomes a marketing discipline or practice in overall ad strategies, rather than an application in a campaign or on a handset or tablet, according to the white paper "Upward Mobility: Developing an Effective Mobile Shopper Marketing Strategy" that Augme released last week.

Sitting on the front line in campaign planning sessions with consumer product goods companies like Johnson & Johnson in 2010 reveals that many strategies were based on applications or QR codes for specific products, according to David Apple, CMO of Augme. That changes this year, he says, as more consumers use mobile devices to advance consumption, knowledge and capabilities about products and services with or without assistance from the brand.

CPG companies have begun making the transition to integrate technologies, such as NFC, into point-of-sale platforms in stores, Apple says. "Many things still must happen, and it will become easier for chips to be integrated into mobile devices, than retailers to rip out lasers and put in imagers," he says, referring to NFC technology. "The big catalyst in the U.S. becomes what companies and carriers get paid in the process."

The U.S. remains far behind other countries around the world when it comes to integrating mobile tools for data transfer and m-commerce. Marketers, however, will be forced to look at mobile devices as an agnostic tool -- a connection to a campaign rather than an application, as slightly more than half -- 51% -- of the U.S. population will have a smartphone by the end of 2011, estimates Augme, citing Nielsen statistics.

Market research firm IHS iSuppli estimates global smartphone unit shipments will rise from 288 million in 2010 to 651 million in 2014.

The white paper draws a conclusion between the reality of the marketplace and the device capabilities in the market, and highlights strategies to reach consumers. "The reality of the market is the U.S. remains a 35% smartphone marketplace, which leaves the remainder of the country in feature phones and messaging phones," Apple says. "The real question becomes, as a marketer, how do I effectively communicate with that population without segmenting anybody based on their technology or device capabilities."

Apple says it's done through the use of consumer-response type technologies and strategies, reaching out to the 65% of consumers who don't carry a Web-enabled phone. They can still respond and receive a coupon through SMS, search or QR campaigns. An SMS campaign initiated on a piece of physical media such as billboard or magazine instantly allows the brand to reach 248 million consumers, he says. "It's not sexy, but that's how you create sales," he adds. "Universal codes like QR are open source, allowing the consumer to engage from the digital to the physical world."

Augme provides services and mobile technology Ad Life to consumer and healthcare brands. The company says it's working with HBO, Johnson & Johnson, Colgate Palmolive, Lionsgate, among others, allowing them to plan, create, test, deploy and track mobile marketing programs.

(Source: Online Media Daily, 02/02/11)

Number of Smartphone Users Up 60 Percent Versus Year Ago

This week, comScore reported key trends in the U.S. mobile phone industry during the three-month average period ending December 2010. The report ranked the leading mobile original equipment manufacturers (OEMs) and smartphone operating system (OS) platforms in the U.S. according to their share of current mobile subscribers ages 13 and older, and reviewed the most popular activities and content accessed via the subscriber's primary mobile phone. The December report found Samsung to be the top handset manufacturer overall with 24.8 percent market share, while RIM led among smartphone platforms with 31.6 percent market share.

OEM Market Share
For the three-month average period ending in December, 234 million Americans ages 13 and older used mobile devices. Device manufacturer Samsung ranked as the top OEM with 24.8 percent of U.S. mobile subscribers, up 1.3 percentage points from the three-month period ending in September. LG ranked second with 20.9 percent share, followed by Motorola (16.7 percent), RIM (8.5 percent) and Nokia (7.0 percent).

Smartphone Platform Market Share
63.2 million people in the U.S. owned smartphones during the three months ending in December 2010, up 60 percent versus year ago. RIM led the ranking with 31.6 percent market share of smartphones, while Google Android maintained the #2 position with 28.7 percent, up 7.3 percentage points versus September. Apple accounted for 25.0 percent of smartphone subscribers (up 0.7 percentage points), followed by Microsoft with 8.4 percent and Palm with 3.7 percent.

Mobile Content Usage
In December, 68.0 percent of U.S. mobile subscribers used text messaging on their mobile device, up 1.0 percentage points versus the prior three month period, while browsers were used by 36.4 percent of subscribers (up 1.3 percentage points). Subscribers who used downloaded applications comprised 34.4 percent of the mobile audience, representing an increase of 1.3 percentage points. Accessing of social networking sites or blogs increased 1.5 percentage points, representing 24.7 percent of mobile subscribers. Playing games attracted 23.2 percent of the mobile audience, while listening to music attracted 15.7 percent.

(Source: RAB, from comScore release, 02/07/11)

Tuesday, February 8, 2011

Study: Women Show Strong Personal Renewal Bent

Women may not be able to control the larger economic scenario, but they can improve how they feel about themselves and their lives.

That's the basic thinking behind a pronounced personal renewal or "me-covery" post-recessionary trend among American women, according to a new national survey conducted by specialist marketing firm Saatchi & Saatchi Wellness and Time Inc.'s Health brand.

The new emphasis on taking control and responsibility for personal well-being and happiness and reevaluating old choices represents a major shift in women's attitudinal and behavioral patterns within a markedly short time frame.

In 2009, a similar national survey of adult (18+) American women by Saatchi & Saatchi Wellness focusing on the economy's influence on wellness issues found that their primary wellness goals were "holding it together" and "surviving the day."

The attitude/behavior shifts have important implications for numerous product/service categories and brands, including food and beverages, restaurants and personal care and beauty, according to the research sponsors.

For one: Women are "re-investing in their health and wellness," points out Health publisher Dave Watt.

While 92% of the 800 women surveyed (representative of U.S. adult females as a whole) still feel negatively affected by the economy and 10% feel more affected than in 2009, 64% say that they are committed to making a positive change and taking better care of themselves by eating right, staying physically fit, "looking good to feel good" and having fun.

Given female consumers' more positive overall attitude and focus on self-empowerment, physical and emotional health and making "real changes" in their lives, "marketers should reexamine the ways that they are talking to and engaging with women," stresses Saatchi & Saatchi Wellness chief strategy officer Johanna Skilling.

The indicators point to longevity for this lifestyle shift among American women, adds Ned Russell, managing director for the marketing firm.

The major take-aways for marketers:

* "Taking responsibility" has made health and wellness women's #1 priority. This includes taking steps to prevent health problems and making a commitment to manageable health/fitness goals.
* "Reevaluating choices" reflects renewed confidence and includes increased emphasis on value-driven purchases. Value is defined as offering benefits worth the money, meaning that price alone is not the dominant purchasing factor.
* "Welcoming the right kind of support" means that women are seeking sources of inspiration and motivation, as well as meaningful rewards that mesh with their new lifestyle priorities.

Specific survey findings confirm upswings in purchases of health-related and beauty products, as well as shifts in the retail formats in which women are purchasing these products:

* 54% of adult female respondents report buying more healthy food overall, and 47% say that they're buying organic foods more often, despite these foods' higher prices.
* 74% of those most affected by the economy report that they are buying less fast food than in 2009 (up from 41% indicating fast-food cutbacks in the 2009 survey).
* 48% report being committed to working out more on their own and gaining inspiration and motivation through online music downloads, workout videos and interactive gaming systems. More than one-third (37%) report working out at the gym more often.
* 86% report engaging in more online health research (up 47 points from 2009) and 79% say that they're now seeing their doctors regularly (up 21 points).
* 64% are buying prescription medication (up 16 points from 2009) and 48% are buying more vitamins (up 27 points). Also, 16% are buying more over-the-counter remedies and 14% are using alternative/homeopathic remedies.
* About half are buying more hair care (47%), skin care (45%) and oral care products (51%), and nearly half say that "value for money" and "product quality" are the key brand characteristics influencing their purchases in these categories.
* 52% say they are "committed to having more fun," 35% report that they are currently considering a vacation, and 24% report using products to enhance their sex lives (up 17 points since 2009).
* 70% now say that they buy skin care/beauty products primarily in drug stores, grocery stores and mass retailers -- up 25 points from 2009. Just 6% report they are buying more luxury/high-end cosmetics than in past years.

(Source: Marketing Daily, 02/02/11)