Experian's Richard Jenkings presented at the IRI Seminar in June and explained a bit more about how they can link products to people and help to maximise sales
Although many FMCG products are mass market, there are strong relationships between types of people, products bought, diet lifestyle and health. Measuring these social and geographical patterns enables you to make better informed decisions about what products to make, where to sell them and to whom because not everybody is the same.
Experian uses a system called Mosaic to classify people and how they behave in certain areas and therefore the sales potential for products. For example, the ‘studentification’ of towns has led to a change in the types of stores available and subsequently, the products therein.
Brands mean different things to different sections of society. For example, fresh and premium branded coffee is bought by the upper echelons of society, while the lower classes are more likely to buy instant varieties. In stark contrast, typically only lower or middle class people buy branded washing powder, while the higher the social demographic, the more likely the purchase will be an own label eco-friendly product.
Healthy foods such as pro-biotic yogurts and cholesterol-reducing dairy spreads are far more popular with the higher end of the social spectrum than at the lower. Meanwhile, and contrary to popular opinion, Pot Noodle is not bought by students that much and is simply more favoured by the lower classes.
When it comes to beer, many brands straddle many sections of society to some extent. However, exceptions to this rule include Staropramen at the top end and Tennents Extra at the bottom.
There are clear attitudinal differences by region, with beer consumption a good example. Many other differences in attitude are apparent such as the importance of whether a company acts ethically or not, the likelihood of being vegetarian and admitting to buying ‘useless’ things. It seems that the poorer you are, the more likely you are to buy useless things, while the more affluent you are, the more likely you are to pay more for environmentally-friendly products.
This sort of information can lead to a better understanding of linking products to people to store catchments. Promotions and trials can be targeted to the best locations for each product, while by media matching it is possible to decide with confidence which media to use where. Likewise, pricing can be adjusted regionally to match the area to the consumers. Most critically perhaps is the ability to match brands to the best possible target audience, maximising sales.