Simplicity

SUMMARY

Introduction

Information overload and product proliferation is making purchasing moreconfusing and time consuming. As such there is greater demand for moreease-of-use and clarity from manufacturers and retailers. This report willexamine how Consumer Packaged Goods (CPG) players can strip away the clutterpeople are faced with in their purchasing decisions and in turn drive profits.

Scope

• Predictive model of changes in consumer spending based on the demand for'simplicity brand positionings'
• Detailed analysis of the causes of 'overload' in peoples' lives ?Professional and domestic working life, physical goods, knowledge goods andhype.
• Examination of the key areas of clutter and complexity in consumer packagedgoods channels and products
• Key data and detailed analysis of 7 leading country markets: France,Germany, Italy, The Netherlands, Spain, Sweden and the UK

Report Highlights

The number of 'downshifters', those that have volunteered to reduce theamount of work they do to simplify their lives, has grown at a CAGR of 5.3% overthe past five years in Europe.

44% of respondents will 'often' or 'always' substitute their regularbrand choice for another when shopping in a rush, demonstrating that brandloyalty is under strong threat.

By 2007 the total possible market available from marketing simplicity inpersonal care products to consumers will be Euro4.0 billion. For prepared mealsthe total addressable market will reach a value of Euro2.2 billion. Meanwhile,for wine, the market for simplicity will be worth Euro7.9 billion.

Reasons to Purchase

• 52% of full-time workers are willing to switch brands for simplicitypositioned brands ? Find out how to make your products worth the extra money.
• A third of full-time workers are willing to pay an additional premium of8.3% above average prices for simpler positioned brands.
• Recognize how to use simplicity to cut through the proliferation ofmarketing clutter.

TABLE OF CONTENTS

FUTURE DECODED

This chapter sizes and profiles the number of Europeans thatare voluntarily simplifying their lifestyle as well as outlining the overridingtrends in their food, drinks and personal care spending. There is an examinationof the key areas of clutter and complexity in CPG retailing and product purchasedecisions

This chapter also develops a model to assess the opportunityfor marketing simplicity to those that are interested in the benefits ofsimplicity but have not made any lifestyle changes to enable it, for thefollowing categories:

• Haircare
• Skincare
• Personal wash
• Prepared meals (ready meals and pizzas)
• Wine
• Vitamins, minerals & supplements
• Home hygiene

Key trends that are examined include:

• Overloaded with work – the increasing pace and intensity of workinglife is forcing many to seek fewer hours for less pay, particularly among olderworkers and female workers.
• Overloaded with physical goods – consumers goods are increasinglylosing relevance compared to services and are less likely to be tolerated ifthey fail to deliver on brand messages.
• Overloaded with knowledge goods – the increasingly overwhelming levelof knowledge delivery from channels such as the Internet means that people areincreasing applying their own filters and limiting their repertoire of websitesvisited.
• Overloaded with hype - In the UK it is estimated that people are exposed to1,600 commercial messages a day. In the US this figure rises to at least 3,000.

ACTION POINTS

• Emphasize simplicity lifestyle themes in your advertising to appeal tosimplifiers.
• Experiment with new shelving systems that enable easier price and benefitcomparisons between brands in specific categories.
• Use simplicity as the driving potential to extend brands across categories.
• Identify brands that are 'ripe' for repositioning aligned withsimplicity.
• Use graphics, signs and colors to differentiate brands and provide'instant' information to shoppers.
• Simplify packaging design that build in defensible brand advantages.
• Provide informational clarity and simplicity in your websites.

APPENDIX

• This chapter contains research methodology and sources used in the report.

DATASETS

• Table 1: Those fully embracing a voluntary simplicity lifestyle a.k.a."holistic simplifiers", Europe (m) 1997-2002-2007
• Table 2: Those partially embracing a voluntary simplicity lifestyle a.k.a."downshifters", Europe (m) 1997-2002-2007
• Table 3: UK full-time workers who want to work fewer hours for less pay (%),2002
• Table 4: What do you think about supermarkets changing the location ofproducts in store?
• Table 5: When shopping in a rush, how likely are you to substitute yourregular brand choice for another if you can't find it quickly enough?
• Table 6: When purchasing a brand other than your regular one how complicatedto find making your decision for the following:
• Table 7: For each category would you find a shelving system that allowsquicker comparison between brands beneficial?
• Table 8: Holistic simplifiers (millions), Europe 1997-2002-2007
• Table 9: Food and drink spend of holistic simplifiers, Europe (€m),2002-2007
• Table 10: Personal care spend of holistic simplifiers, Europe (€m),2002-2007
• Table 11: Downshifters (millions), Europe 1997-2002-2007
• Table 12: Food and drink spend of holistic simplifiers, Europe (€m),2002-2007
• Table 13: Personal care spend of holistic simplifiers, Europe (€m),2002-2007
• Table 14: Full-time 'white-collar' workers between 18-60 years(thousands) – the core group for potential switchers, Europe 2002-2007
• Table 15: Respondents interest in simplicity criteria by category
• Table 16: % Respondents that would be willing to: (A) switch brands forsimplicity at same price or (B) pay a premium for simplicity on their currentbrand purchases or by switching to new brands
• Table 17: Haircare: total market sales available from simplicity brandpositionings (€m), Europe 2002-2007
• Table 18: Haircare: low and high future scenarios (€m), Europe 2007
• Table 19: Skincare: total market sales available from simplicity brandpositionings (€m), Europe 2002-2007
• Table 20: Skincare: low and high future scenarios (€m), Europe 2007
• Table 21: Personal wash: total market sales available from simplicity brandpositionings (€m), Europe 2002-2007
• Table 22: Personal wash: low and high future scenarios (€m), Europe2007
• Table 23: Home hygiene: total market sales available from simplicity brandpositionings (€m), Europe 2002-2007
• Table 24: Home hygiene: low and high future scenarios (€m), Europe2007
• Table 25: Wine: total market sales available from simplicity brandpositionings (€m), Europe 2002-2007
• Table 26: Wine: low and high future scenarios (€m), Europe 2007
• Table 27: Prepared meals: total market sales available from simplicity brandpositionings (€m), Europe 2002-2007
• Table 28: Prepared meals: low and high future scenarios (€m), Europe2007
• Table 29: VMS: total market sales available from simplicity brandpositionings (€m), Europe 2002-2007
• Table 30: VMS: low and high future scenarios (€m), Europe 2007

LIST OF FIGURES

• Figure 1: Proportion of European workers that experience a high pace andintensity of work 1990-1995-2000
• Figure 2: Proprotion of US consumers that try to stick to well known brandnames (1975-2000)
• Figure 3: Brand classification