Ads get noticed, even as they whiz by, DVR users say

Those predicting the digital video recorder will bring about the demise of television advertising may be surprised to learn that DVRs actually have the opposite effect. According to a new report, Demystifying Digital Video Recorders, from Stamford, Conn., online market research firm InsightExpress and advertising publisher MediaPost, the opportunities for reaching their target audiences are actually enhanced as DVR users watch more hours of television each week and recall commercials - even when fast-forwarding.

The report, based on multiple online consumer surveys, reveals that consumers use DVRs to enhance their television viewing experience and adjust television viewing to accommodate their busy schedules. A surprise to many advertisers, DVRs result in additional television viewing, higher satisfaction with television, and virtually eliminates the 49 percent of all consumers who leave the room or channel surf when commercials air.

Further benefiting advertisers, 54 percent all DVR users have rewound or paused television commercials to understand the advertised product. Revealing opportunities to expand the current advertising model, more than a third (37 percent) of DVR users would welcome the opportunity to request information via their DVR when viewing commercials of interest.

Respondents for these studies were randomly recruited online using InsightExpress’ e-RDD methodology. Each survey was created, distributed and tabulated during the first quarter of 2004. For more information visit www.insightexpress.com  or call 203-359-4174.

Teens talk about food

Some snapshots from New York-based BuzzBack Market Research’s recently published Teen Health & Nutrition study:

  • Teen eating behavior (full meals): Teen boys eat more full meals (2.3) per day vs. teen girls (2.0).
  • Teen snacking behavior: Teen boys snack more times per day (3.3) vs. teen girls (3.1).
  • Top five snacks: 1) potato/tortilla chips (63 percent), 2) cookies (55 percent), 3) chewing gum (47 percent), 4) fresh fruit (47 percent), 5) ice cream (47 percent).
  • Top five snack brands (write-ins): 1) Oreo (22 percent), 2) Ritz (21 percent), 3) Doritos (20 percent), 4) Coca-Cola (19 percent), 5) Snickers (18 percent).
  • Favorite fast-food restaurant: 64 percent of teens say Subway is their favorite fast-food restaurant; McDonald’s takes second place (48 percent).
  • Criteria for what to eat: fresh (74 percent), easy/fast to prepare (71 percent), “on the go” food (61 percent), extra energy food (58 percent), vitamin-source food (56 percent).
  • Eating is sixth-most popular weekly activity. Top three: 1) sleeping (37.6 hours), 2) surfing the Internet/writing e-mails (14.3 hours), 3) hanging out with family (11.6 hours) . . .and 6) eating (9.0 hours).
  • Teen girls try more new food products: females (60 percent), males (51 percent).
  • Motivators for trying new food products: curious about it (71 percent); offered a new flavor (67 percent), looked appetizing (63 percent), convenient to prepare/eat (54 percent).

Over 500 U.S. teens were surveyed. For more information visit www.buzzback.com.

Toyota and Chevrolet lead among Hispanic-Americans

In the race to capture the increasingly influential Hispanic-American consumer, Ford, Toyota and Chevrolet have distanced themselves from other automotive brands, according to R. L. Polk & Co., Southfield, Mich.

In calendar year 2003, Ford captured 15.9 percent of all new vehicle registrations made by Hispanic-Americans in the United States. Toyota and Chevrolet follow in a virtual dead heat, each with slightly more than 14 percent of the market among American consumers of Hispanic heritage.

In 2004, Toyota has made a strong push to solidify itself in the second position overall. In the first quarter of 2004, Toyota captured 37,353 Hispanic registrations, or 15.5 percent of Hispanic market share. This eclipsed Ford’s share of 15.4 percent, or 36,989 registrations, during the first three months of 2004.

“While they technically remain a minority group, Hispanic-Americans can no longer be considered a niche market,” says Lonnie Miller, director of analytical solutions for R. L. Polk & Co. “Hispanics are growing, both in numbers and consumer influence. Automotive manufacturers are taking notice and delivering products that appeal in all the traditional ways - design, price, performance and utility.”

Overall, Hispanic-Americans account for 6 percent of the U.S. automotive market, compared to 4.8 percent in 1999. This represents a 25.7 percent increase in volume of new vehicle registrations in just five years.

According to the U. S. Census Bureau, the percentage of U.S. population identifying itself as “Hispanic” grew much faster than the population as a whole - increasing from 35.3 million people in 2000 to 38.8 million in 2002. Hispanics are now the nation’s largest minority group, and are becoming increasingly more influential in their collective purchasing power.

During calendar year 2003, Los Angeles and New York retained their number one and two positions as the home markets of the most Hispanic auto buyers, with 185,165 and 74,883 registrations, respectively. Miami/Ft. Lauderdale was third with 70,613 registrations, followed by Houston with 40,033 registrations. “Over the past five years, the growing influence of Hispanic-American consumers has become clear in many major markets,” Miller says. “Over a five-year period, the Hispanic-American automotive market has significantly outperformed the general market in several major metropolitan areas, including Los Angeles, New York, Miami and Dallas-Fort Worth.” For more information visit www.polk.com.

Vertis looks at grocery shopping

The Customer Focus 2004: Grocery study from Baltimore-based marketing services firm Vertis reveals that 71 percent of female chief grocery shoppers (those responsible for 60 percent or more of household grocery shopping) who read advertising inserts make lists and plan their grocery shopping trips based on items they see advertised in advertising inserts or circulars. “Our study shows that women in this category find great value in advertising inserts and circulars,” says Therese Mulvey, vice president marketing research at Vertis. “Grocery marketers who want to have an impact with female chief grocery shoppers should consider the significant role this medium has in determining which items are purchased and where they purchase them.”

The study shows the following additional findings, which provide insight into the differences in consumers’ grocery purchase plans and trends.

Twenty-eight percent of total adults surveyed in the 2004 study indicated that advertising inserts and circulars most influence their buying decisions, 6 percent more than total adults who said that they are most influenced by television.

Of the Sunday newspaper readers surveyed, 84 percent of women indicated that they read Sunday advertising inserts in the past seven days, compared to 79 percent of total adults. Of the weekday newspaper readers surveyed, 69 percent of women indicated that they had read an advertising insert in the last seven days, compared to 66 percent of total adults.

Twenty-one percent of female chief grocery shoppers surveyed said they read all available advertising inserts or circulars, compared to 17 percent of total adults.

Forty-eight percent of Generation X (1965-1976) women who are grocery advertising insert readers said they regularly use coupons received from grocery advertising inserts or circulars, compared to 44 percent of total adults.

Who really are the chief grocery shoppers? Eighty-five percent of women indicated that they personally conduct 60 percent or more of the grocery shopping for their household in 2004. By comparison, 50 percent of the men surveyed indicated that they conduct 60 percent or more of the grocery shopping for their household in 2004.

Super discount stores and super-sized grocery stores offer alternatives: 21 percent of total adult grocery shoppers surveyed indicated that they purchased perishable products such as meat, produce, dairy or bakery items at a super discount store (i.e., Wal-Mart Super Center, Meijer, Super Target) in the last two weeks, compared to 13 percent who purchase the same items at wholesale and warehouse club stores (i.e., Sam’s, BJ’s or Costco).

Nineteen percent of total adult grocery shoppers surveyed indicated that they purchased non-perishable products such as rice, pasta, canned goods, cereals, etc., at a super-sized grocery store in the last two weeks, compared to 10 percent who purchase the same items at wholesale and warehouse club stores.

Nineteen percent of total adults surveyed indicated that they purchased paper products such as napkins, paper plates, and paper towels at a super discount store, compared to 12 percent who purchase the same items at wholesale and warehouse club stores.

Of the total non-perishable product shoppers that purchased items at an outlet other than a grocery store, 25 percent indicated that they spent $101 or more.

Asked about what they viewed as the most trusted packaging, of the chief grocery shoppers surveyed, 39 percent of total adults said they view frozen boxes and bags (i.e., raw or cooked meat or chicken in the freezer) as the safest type of food packaging. Thirty-two percent of total chief grocery shopping adults indicated that they view fresh tray wrapped (i.e., a Styrofoam tray wrapped with cellophane) food packaging as the safest. Conversely, 13 percent of total chief grocery shopping adults view dried shelf items (i.e., chicken snacks, Slim Jim, beef jerky) as the safest type of food packaging. Eleven percent of total chief grocery shopping adults consider fully cooked and refrigerated (i.e., roasted chicken or whole birds) packages as safest. For more information visit www.vertisinc.com.

Americans expressing their epicuriosity

Research by Chicago-based Mintel for the National Association for the Specialty FoodTrade, Inc. (NASFT) shows that American consumers are becoming more sophisticated with their culinary selections. No longer do we settle for the basic ingredients - it is increasingly more common to use gourmet specialty foods to spice up our everyday meals. Younger generations lack the culinary skills that older age groups have, and therefore use specialty foods to dress up meals that are easy to cook such as a plain sandwich, piece of meat or fish for dinner, or simple salad. In addition, the accessibility of higher quality and more unique ready meals is making it easier to sample specialty foods and to be introduced to more unique cuisines. Retail outlets such as Trader Joe’s offer many gourmet ready meal selections that only require a microwave to prepare a restaurant-quality meal. In addition, media influences such as gourmet food TV shows, specialty cooking magazines, and daily newspapers with sections on more involved food choices are encouraging Americans to become more adventurous with their palates.

Eating habits have become more expansive as consumers become better traveled, better educated, and more likely to want to experiment with a wide array of cuisines. Specialty foods, products that have limited distribution and a reputation for high quality, have been steadily gaining popularity as the American consumer has developed more sophisticated and discerning tastes. A number of factors have contributed to the growth in sales of specialty foods: globalization in the food industry, a greater interest in high-quality ingredients, and more disposable income devoted to non-discretionary food purchases. As well, a better-traveled consumer base has begun to seek out international foods in the United States, spurred by a general change in eating patterns that includes more away-from-home eating. Paralleling the trend for international foods is a greater interest in regional American cuisines, a result of more sophisticated domestic travelers. At the same time, a more robust distribution network makes it possible to buy specialty foods in a myriad of venues.

Specialty foods are noted for the fact that they are almost universally higher in price than their non-specialty counterparts. In all but three segments, percentage-point increases in sales of specialty SKUs top those of all SKUs, suggesting that specialty food products are selling at a quicker pace than products in general. Overall, sales of specialty foods increased over 20 percent between 2001 and 2003 and the market is now valued at nearly $23 billion. Condiments comprise more than an 11 percent share of the overall specialty foods market, making it the largest segment by a considerable degree - the next biggest segments, teas and cheese/cheese alternatives, each account for only about 5 percent of the market. Some segments have grown significantly between 2001 and 2003. For example, sales of specialty milk, half and half, and cream increased by 48 percent during that time period as more products from small dairies came to market. Similarly, sales of specialty eggs, including free range and exotic eggs, increased 43.3 percent between 2001 and 2003. The introduction of more specialty foods into the market, and the growing channels in which consumers can find these products, have both contributed to the increases in sales.

The NASFT State of the Specialty Food Industry is a joint research project prepared by Mintel International Group and SPINS, a San Francisco provider of information on natural products sales. The research encompasses three years of sales data (2001-2003) for 36 specialty food segments, pulled from the SPINS database of mainstream and natural food stores. In addition, Mintel surveyed 448 specialty food manufacturers, importers, distributors and brokers, plus 349 specialty food retailers to develop the statistics presented in the report. For more information visit www.specialtyfood.com or www.mintel.com.