SymphonyIRI breaks down the digital consumer with new analysis
CHICAGO — SymphonyIRI Group on Tuesday unveiled its latest segmentation solution called DigitaLink, which leverages SymphonyIRI’s Consumer Network Panel, MarketPulse research and analytic capabilities to segment shoppers into unique profiles, enabling suppliers and retailers to better manage marketing efforts with online consumers.
“With DigitaLink, we identified five distinct groups of Internet users, all of whom are active online in one way or another, but access the Web in different ways, have different comfort levels with technology and various attitudes about how much they want to engage with it and the role they want the technology to play in their lives,” SymphonyIRI EVP and GM consumer insights Larry Levin said. “Digging a level deeper, DigitaLink helps assess purchase patterns for each segment while also providing a tool that can be used to classify these shoppers.”
The five segments defined by SymphonyIRI include:
Show Me the Money — These shoppers focus on using digital technology to save money by frequently searching for and downloading coupons online. They may occasionally write product reviews or post comments on blogs;
Digitize Me! — These shoppers have incorporated digital media across the board in their lives and participate in various online activities. They have a higher tendency of interacting with companies and brands on social networks and also are more willing to post their opinions online;
Technophobes — This group rarely searches online for product information or coupons, or interacts on blogs, leaving most online activity to email;
Socializers — Socializers use the Internet primarily as a means of communication versus a shopping resource; and
Wired for Work — Most consumers who fall in this segment own a smartphone and are driven by digital media, but use the technology primarily for work-related tasks.
Two of these five shopper segments, “Show Me the Money” and “Digitize Me!” are most likely to search online for information about a variety of categories in addition to spending a higher percentage of their money online overall, providing the best short-term opportunities for manufacturers and retailers seeking to expand their online activities.
The remaining three segments make up 65% of the online population and don’t appear to provide as much near-term potential for marketing activity based on their attitudes and digital consumption behaviors.
The DigitaLink segmentation survey was completed in October 2011 through SymphonyIRI’s Consumer Network Panel of 100,000 households. A more specific survey of 47,000 households was also completed to provide more detailed segmentation analysis.
Schick adds eco-friendly razor to Xtreme3 line
SHELTON, Conn. — Schick is touting a disposable razor that features a handle made of 100% recycled plastic, in addition to 100% post-consumer paper in its packaging.
Available for both men and women, Schick Xtreme3 Eco, the company said, will save more than 103,000 lb.s of virgin plastic material and 15,500 lbs. of virgin paper from going into landfills each year through the use of the recyclable materials.
“We know consumers are doing their part to live more sustainably, and we wanted to provide a simple way for them to do so with their shave,” said Suma Nagaraj, brand manager for Schick Xtreme3. “At Schick, we’re taking proactive steps to minimize the impact of our products and manufacturing processes on the environment, and we’re continually looking for ways to improve—creating this product was the next step in our journey.”
Schick Xtreme3 Eco is available at Walmart and will be distributed nationwide in April.
Procter & Gamble announces second-quarter results
CINCINNATI — Procter & Gamble announced on Friday that second-quarter net sales and organic sales rose 4% as net earnings dropped 49%.
“We continue to make progress against our key business priorities in the difficult macroeconomic environment,” stated chairman, president and CEO Bob McDonald. “We delivered solid top-line growth and continued to accelerate productivity improvements to drive down costs. With the easing of commodity cost comparisons over the next two quarters, continued solid top-line growth and cost savings progress, we expect operating profit growth to accelerate in the second half of the fiscal year.”
Net sales for the October to December quarter rose 4% to $22.1 billion.
Net earnings totaled $1.71 billion, or 57 cents per diluted share, compared with $3.36 billion, or $1.11 diluted earnings per share, in the year-ago period.
In beauty, net sales rose 1% to $5.4 billion, as organic sales grew 2%. In grooming, net sales rose 1% to $2.2 billion, as organic sales were up 2%.
As part of its effort to improve productivity, the company stated during the conference call with analysts that it is cutting about 1,600 positions by the end of the fiscal year.
“We’ll achieve this objective through the combination of selective hiring, normal attrition and our restructuring efforts. The reductions this year should yield annual savings of around $240 million before tax. Our efforts to reduce costs in nonmanufacturing portions of the organization will go beyond this fiscal year,” Jon Moeller, P&G CFO, told analysts.
In addition, the company is consolidating its supply-planning activities into central hubs, including one recently opened in Cincinnati. It also has inked an outsourcing arrangement for U.S. in-store detailing work and believes the efforts will improve speed and agility and improve supply chain efficiency while reducing costs.
It also is reducing the number of technical centers it operates globally and opening new technical centers in developing markets, such as the new facility being built in Singapore and the expansion of its research and development center in Beijing.