Lecture at FIT by George E. Brown II

1. You Need More Than Just Data

2. INSIGHTS FOR INNOVATION: MEYERS
RESEARCH CENTER DRIVES SHOPPER AND
CONSUMER UNDERSTANDING

3. “A thought, fact, combination of facts, data and/or analysis of data
that induces meaning and furthers understanding of a situation or
issue that has the potential of benefiting the business or re-directing
the thinking about that situation or issue which then in turn has the
potential of benefiting the business.”

4. INSIGHTS IN RESEARCH
Insights are to an idea what Blitz firelighters are to a fire. They represent the best way of
generating great ideas that inspire success. We like to say “Insight Drives Our Ideas”. Ultimately,
we believe that the most effective ideas are based on a contextually relevant foundation.
But, there’s a problem. The word “insight” is very often misused. An insight is not an observation
of behavior pulled from research. It isn’t a collection of stats and data from your Web analytics. If
observations are the tip of the iceberg, the remaining two-thirds below the water, the part that is
not immediately obvious, would be the insights.

5. Here is an insight:
"Product satisfaction arises less
from inherent construction and
performance than from
consumers' internalized
perceptions of personal
utility."

6. A HIGH potency insight would like this:
"People don't want quarter-inch
drills. They want quarter-inch
holes."

7. Why is a good insight like a refrigerator?
Quote by Jeremy Bullmore

8. HYBRID RESEARCH TECHNIQUES
“The best business insight comes from a holistic understanding of the market”.

9. HYBRID APPROACH #1
Qualitative methods contribute to the development of quantitative survey instruments.
Focus Groups or
Ethnography Shop-Along’s
IDI’s

10. HYBRID APPROACH #2
Quantitative study that uses qualitative results to help interpret or explain the quantitative findings.
Online Survey Focus Groups

11. HYBRID APPROACH #3
Quantitative results help interpret qualitative findings, as when focus group participants are
asked to fill out survey questionnaires at the session.
Survey on
Smartphone
Focus Text to Vote
Groups Polling
Online
Survey

12. HYBRID APPROACH #4
Two methodologies are used to cross-validate and build upon results.
In-Store Intercepts Observations Only
Shop-Alongs Eye Tracking

13. Meyers Research Center offers a
variety of analytic approaches to
deliver the necessary data to drive
decisions based on a wide array of
criteria necessary to support key
strategic decisions.

14. MEYERS’ CONSUMER DECISION TREES
1. In-Aisle Interviews on Consumer Attitudes
• Collect information about:
 What consumers DO
 What consumers WANT / NEED
 What consumers VALUE
• Actual fresh purchase decisions of consumers
(not simulated purchase occasions, and
not purchases made months or years ago)
2. Product Classification
• Cross-tabulate collected attitudes and observed behavior with purchase decision

15. MEYERS’ CONSUMER DECISION TREES
3. Hierarchical Cluster Analysis: 4. MRC’s Consumer Decision Tree:
Products that share similar profiles group together into The decision tree is a directed graph that does not
branches of a purchase decision hierarchy or “tree”. The show the conscious thinking of consumers, but
most defining distinctions between products in a category shows instead a derived proximity.
are at the top of the tree.
Total
Category
Branch 1 Branch 2
Branch A of 1 Branch B of 1

16. SHOPPER MARKETING
• According to Advertising Age (October 2007)
Shopper Marketing is growing faster than internet
advertising.
• Predicted compound annual growth rate of
21% through 2010.
• P&G announced in September 07 that they will
treat in-store marketing as an advertising
expenditure.
• $500MM per year.

17. SHOPPER MARKETING
Old School
• Broad-Based Category Shopper Insight Programs typically
focused on a number of different channels and chains.
Undifferentiated data and strategy.
New School
• Account-specific initiatives to better align brand strategy
with retail strategy, and ensure win-win for both.
• Involves the testing of mutually-beneficial initiatives to
reinforce brand value, grow the category, generate
incremental sales and prove or disprove ROI.

18. SEGMENTATION IN SHOPPER MARKETING
• Segmentation is a method for grouping shoppers based upon
similarities they share and using any dimensions that are
business relevant – whether it be need states, channel
preferences, interest in product features, or profitability.
• Recommended sample
• What are your business objectives?
size: n=400+
• Developing new products
• Plan for this early in the
project
• Creating differentiated marketing communications, offers or ads
• Statistical techniques:
• Developing a retention strategy, a win-back strategy, an
• Cluster analysis expansion strategy, a frequency strategy
• Chaid
• Loglinear • Targeting high value prospects
• and more
• Align shopper insights with consumer (brand) insights or retailer
insights

19. SEGMENTATION TO ALIGN WITH A RETAILER
• Wal-Mart understands that not all shopper segments are alike
- Brand Aspirationals* - One Stop Shoppers
- Price Value Shoppers* - Conscientious Objectors
- Trendy Quality Seekers - Social Shoppers
- Price Sensitive Affluents*
* Highest potential for more profitable incremental sales
• Safeway shopper segments…
- Value - Seeking - Simplicity Seeking
- Variety Seeking - Discovery Seeking
- Brand Seeking - Quality Seeking
• Sam’s shopper segments…
- Office Administrator - Traditional Club Shopper
• Speak to the retailers in
a language they already - Business Reseller - Demanding/Experiential Shopper
know - Institutional Buyer - Mom/Family CEO
- Food Service Entrepreneur - Active Boomer

20. SEGMENTATION TO ALIGN WITH BRAND
Brand
Segment 1 Consumer
Insights
Brand
Segment 2
Brand
Shopper Segment 3
Segment 1 Brand
Shopper Segment 4
Segment 2
Shopper
Segment 3
Shopper • Replicate a classification and
Shopper extend a segment profile to in-
Insights Segment 4 store behavior, rather than re-
invent

21. SEGMENTATION IN THE NEW AGE OF VALUE SHOPPING
F iv e s h o pp e r s eg m en ts e m e rge d fro m a b a tte ry o f a ttitu d e q u e s tio n s . Th e s e g m en ts a re re fle c tiv e o f s h op p ing s ty le s in a
n e w a g e o f v a lu e s ee k in g . Th e s h o pp in g s tyle s ra n ge fro m o u tw a r d ly e x p re s s e d in d iffe re n ce (A b ov e th e F ra y), c o n tro lle d
p rov is io n in g fo r th e h o m e (N u rtu ring P rov id e r), la z ie r p rov is io n in g (C o nv e n ien c e & G ra tific a tio n ), s tra te g ic s h o p p ing (Th e
S k e p tic a l F o x ) a n d tro u b le d pe rs ev e ran c e (E m ba ttle d S u rv iv o r). Th e s e s h o p p ing s ty le s in filtra te a ll c la s s e s o f tra d e a n d
e x te n d to m a n y c a te g o rie s .
In tro d u c in g th e S h o p p e r S e g m e n ts
Shoppers were segmented entirely on
the basis of their response to a
Above N u rtu rin g C o n v e n ie n c e & T h e S k e p tic a l E m b a ttle d
th e F ra y P ro v id e r G ra tific atio n Fox S u rv iv o r attitudinal statements.
The statements covered attitudes
about the economy, retail outlet
performance, convenience, product
safety concerns, shopping behavior,
“O h , re a lly? I d id n ’t
“M a k e p ric e s a ffo rd a b le
in th is a w fu l e c o no m y.”
and environment issues.
G e n e ra lly e v e ryo n e ag ree s to s o m e e x te n t th a t b u dgD o it a remne c ehe ca ryut n d g en e raa ving vin ryo ne d is the ree s th a t th e y a re p re p a re d
e ts fo r e : “C s s k o a the We
lly e e a nd o ut o f a g
n o tic e .” “I w a nt b e tte r p ric e s p ric e s a t o the r re ta ile rs to re ta il la nd sc a p e lo o k ing
to ta k e a n a tio n a l re c e s s io nain p e o d q ua lity e . N e v e rth e le ss ure e re r a re s ig n ific a n t fo r d e a ls. a l s p rea d s b e tw e e n th e s e g m e n ts o n
nd g o
rfe c t s trid m ake
s th yo u sa le is n’t a ttitu d in
th e s e v a ria b le s . Th e E m b ap ro dd S ufo r iv o rfa m le a st w e m o re e xpred ive rfo r m re re c e s s ion a nd m o s t p res s e d to k e e p w ith in a b u d ge t.
ttle uc ts rv m y is ily ” ll p re p a e n s fo m o e .”
Th e C o n v e n ien c e & G ra tific a tio n s h o p pe r a nd th e S k e p tic a l F o x s h o p p e r fe e l th a t s a le s a n d de a ls a re c o m m o np la c e ev e n ts .
© M e ye rs R e s e a rc h b ig d r, a ros h-Cppn ne lw h op p ing 2 0 a9 s 35
Th e F o x is a C e nte e C l s s o ha e r S ho u s e s 0 d and /o r c o u po n s to p la n s ho pp in g . N u rtu rin g P rov id e rs a nd E m b a ttle d S u rv iv o r a ls o
p a y k e e n a tte n tio n to a d s , c o u po n s an d de a ls .
F a c to r C o m p o n e n t 4
E c o n o m izin g a n d S h o p p in g S tra te g y
Ab o v e th e fray (G 3)
A g re e 5
c o m p le te ly N u rtu rin g p ro v id e r (G 4)
C o n v e n ie n ce & g ratificatio n (G 2)
4.4 S ke p tical fo x (G 5)
4.3
4.2
4 E mb attle d su rv iv o r (G 1)
3.9
3.8
3.7 3.7
3.6
3.4 3.4
3.3
3.2 3.2
3.1 3.1
N e utra l 3 3 3
2.8
2.6 2.6
2.5
2.2
2
1.8
D is a g re e
c o m p le te ly
1
I b u d g e t b e ca u se I I u se a d ve rtise m e n ts In th is e co n o m y, I’d I’m g e ttin g le ss I h a ve sa ve d e n o u g h
h a ve to a n d /o r co u p o n s to fe e l g u ilty sh o p p in g re sp o n sive to sa le s e x tra m o n e y to ta ke a
p la n m y sh o p p in g fo r a n yth in g o th e r a n d d e a ls b e ca u se n a tio n a l re ce ssio n in
th a n th e b a sics th e re ’s a lw a ys strid e
a n o th e r o n e n e a rly
e ve ry w e e k
© M e ye rs R e s e a rc h C e nte r, C ro s s -C ha n ne l S ho p p ing 2 0 0 9 40

22. KEY DRIVERS ANALYSIS
• What the product landscape looks like?
• How are products in the category similar/different in terms of Sensory Properties and Instrumental
Characteristics?
• How uniform is my product? Plant-to-Plant? Within-Plant?
• How does my product age? Do different storage conditions follow the same path over time?
• Study the competitive set of products
• Understand the current distribution of products on the sensory domain map
• Compare/contrast company’s products and prototypes vs. the competition
• ID areas on the map where no product currently exists (business opportunity)
• Study key drivers of liking and image
• ID the sensory attributes and physical properties that drive acceptance
• Understand how sensory and physical properties affect the image a product conveys to
consumers
• ID ideal points and the proximity of test products to the ideal (s)
• Focus future product improvement efforts on the areas that will have the greatest impact

23. KEY DRIVERS ANALYSIS
Products
Sensory & Instrumental Readings Consumer Ratings
Profiles, Descriptive Acceptance/Image Ratings
Formulation Variables CLT
Perceptual Map Consumer Segments
(PCA) (Cluster Analysis)
Preference Map Linking
Acceptance to Sensory
by Regression

24. Principal Component Analysis (PCA)
Descriptive Analysis
Average Profiles => PCA  Map represents perceptual sensory domain
 PCA factor loadings (axis of plane) describe the
relationships among the sensory attributes. The
factor loadings define the underlying sensory
dimensions and separate the original sensory
attributes into mutually exclusive, highly correlated
groups.
 Dots represent the sample position on the sensory
domain. Point coordinates are factor scores for
each sample from PCA
 PCA factor scores describe the relationships
among the test products.
 Similarities and differences among the products
can be deduced through examination of these
maps.
Key Drivers Analysis

25. Principal Component Analysis (PCA) cont.,
Key Drivers Analysis
– Product acceptability ratings are overlaid on the
sensory map
– PCA factor scores are the predictor variables in
the regression analysis of overall liking
– Predicted liking ratings are obtained for any point
on the map. Ideal points are identified
– This also generates a predicted “ideal”
profile, which can be used to prioritize future
product improvement efforts
– The consumers’ liking ratings can be examined
to determine if different segments of consumers
have different optimum products
– Sensory segments are common. Isolating the
segments, determining their size and identifying
the segment optima provide more relevant
summaries of the consumers’ opinions than
would otherwise be obtained

26. CLUSTER ANALYSIS IDENTIFIES HOW MANY
SEGMENTS EXIST
S imila rity
-253.01
-135.34
-17.67
100.00
O bs e rv a tio ns
Segment 2 (n=27) Segment 1 (n=88)

27. CASE STUDIES

28. CASE STUDY #1
Lip Care Simulated Channel Research
Meyers Research Center was hired by a major manufacturer of lip care products to
generate key shopper insights for new POS solutions. The objective of this research is to
learn how best to influence the consumer segment identified as (blank) to trial of (BRAND)
Lip Care through point of sale and/or other marketing interceptions in the path to purchase.
To address the research objectives, a simulated shopping and shop-along data collection
methodology were used.
MRC set up a simulated “shelf” to replicate the entire planogram as it may appear in a
Target/Walmart outlet at a focus facility. Besides the simulated shopping, a small number of
shop-alongs in actual nearby stores were used to support the findings. The shop-along
interviews revealed behavioral insights and unconscious attitudes through observation and
open-ended discussion with consumers at the point of sale.

29. CASE STUDY #1 (CONT.)
Key path-to-purchase insights were generated and Meyers answered the following
questions:
• Where does she expect to find lip care in the store + How does she find it finally?
• What gives orientation within the category? (brands, colors, formats, price, key
indicators for innovations)
• How does she see (BRAND) within the category?
• What makes it challenging across the competitive set (for BRAND)?
• What is the hierarchy of decision making at the shelf? / What attracts shoppers on
product level?
• Planned vs. impulse purchase
• What influences loyalty? What are reasons for brand/product switching?
• What makes shopping in lip care a pleasurable / engaging experience?
• What promotions act as purchase triggers?
• Where are shoppers likely to be most responsive (outside the primary set)?

30. CASE STUDY #2
Integrated Promotion Evaluation: Snack Food Product
Objective: To determine the best promotional alternative to reach the targeted upscale
audience. The promotion alternatives included extended and limited sampling programs
and two coupon alternatives.
Research Design: Matched panels for each promotional variation (10 stores each for the
four options). Sales analyzed through the purchase of scanner sales data. Consumer
attitudes and behavior collected through in-store intercept interviews (MRC's Purchase
Observation Study (tm) service). Chain buyers and store managers interviewed by MRC's
TradeSmart Survey (tm) division.
Results: The extended sampling program with one coupon alternative was the most
productive promotional option. This was verified by scanner data and consumer feedback.
However, the extended sampling was unanimously rejected by the retailers due to
excessive clutter and confusion, in the participating stores.
Action Taken: The limited sampling program and preferred coupon alternative were chosen
because they involved a smaller but still substantial sales increase---- and did not alienate
the trade.

31. Maybe an insight isn't a new piece
of information, but a new way of
interpreting existing information.
The effect is not so much "I never
knew that" as "I never thought of it
that way before". Which implies
that the insight, as the thing that
changes minds, needs to be
communicated to the audience, not
simply used as a way to get to
them or prove that the brand
somehow "knows" them.

32. ABOUT US
Meyers Research Center (MRC) is a full service, state of the art market research and strategic consulting firm.
We offer clients a wide variety of integrated services providing inventive solutions to complex marketing,
advertising, product, strategic and sales issues.
For over 35 years, MRC has provided clients with quality research, actionable insights, service and support.
MRC specializes in a variety of quantitative and qualitative custom and syndicated market research including:
Shopper Insights: Purchase Decision Research, Consumer Decision Trees, Syndicated Channel Insights
Studies (C-Store, Dollar Store, Membership Warehouse Club, Drug, Cross-Channel), Hispanic Multi-Channel
Insights, Shopper and Product Segmentation, Shopper Marketing
Observational Insights: Shop-Alongs, Ethnographic Research, Mystery Shopping, Traffic Studies, Shadow
Shopping Research
Retail Insights: Controlled Store Tests, Test Marketing, Matched Market Tests, Store Audits, Mystery
Shopping, Trade Interviewing
Consumer Insights: Tracking Studies, Brand Awareness Studies, CSL Studies, A & U Studies, Brand
Extension Testing, Advertising and Communication Studies, Sensory Testing, Product/Concept/Copy/Package
Testing, Market Segmentation, Brand Equity Research, Market-Structure Research

33. THANK YOU
www.meyersresearch.com