Four Critical Insights For Connecting with Today's Shopper

1. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyROBERT LEVYPresidentBrandSpark International

2. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyBrandSpark American Shopper StudyMay 10th, 2013Robert LevyPresident, BrandSpark InternationalC R I T I C A L I N S I G H T S F O R E N G AG I N GS H O P P E R S2

3. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyBrandSpark International Shopper Study>270,000 respondents globally in 20135th year in the U.S. with >80K respondents10th year in Canada with >100K respondents2nd year in Mexico with >10K respondents2nd year in Turkey with >15K respondents1st year in China with >60K respondentsGlobal trends studies:UK, France, Germany, Brazil, Columbia, Chile, Argentina3

4. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyN% reflects the demographic breakdown of the final weighted sample.It is the percentage of sample within the specified demographic subset after weighting.American Principal Household Shopper4Representative of Americans by age, region and gender.64% 36%Weighted to MRI Principal Household Shopper.

5. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper Study33%51%16%Other (Blackberry, Windows)Majority of American shoppers have asmartphoneq59a. Do you own a smart phone? (n11627)q59b. Which smart phone do you own as your primary smart phone? (n=5567)Own SmartPhone59%41%Do Not OwnSmart Phone5

6. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyApps provide opportunities for engagementDo you regularly use Apps beyond email, messaging and the web browser on your smartphone? Which types of Apps do you regularly use on your smartphone?Please select all that apply. q59d. Which smart phone do you plan to purchase? (Aided)Base: Smartphone and Apps Users (n= 1,248)TOP APPS AMONG SMARTPHONE OWNERS71% USEAPPSREGULARLYFACEBOOKGAMESWEATHERMAPSYOUTUBEBANKINGTWITTER72%67%64%60%48%44%25%6

7. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyProvide value and drive engagement withshoppers by fulfilling 4 critical needs:94% I feel proud when I get great value for my money87% want health & beauty products that are simple touse and 81% want household products to save themtime85% I am very concerned about the health of myfamily76% I like trying new products7Please indicate how much you agree or disagree with each of the following statements. n= 4585+1 Value2 Convenience3 Health4 New (Innovation)

8. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudySHOPPER NEEDS DRIVINGENGAGEMENTvalue convenience health innovation8

9. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper Studyvalue convenience health innovationSHOPPER NEEDS DRIVINGENGAGEMENT9

10. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyAmericans want value for their moneyand enjoy finding itPlease indicate how much you agree or disagree with each of the following statements. n= 14,648% Completely Agree / Agree94%88%86%83%I feel proud when I get great value for my moneyI will stock up when one of my favorite products is on saleI try to buy products that are on saleIf I get a deal on something I love to tell my friends and family about it10AGREEMENT RANK(191 STATEMENTS)14512

11. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyMost shoppers think they dont haveenough money39% My income is sufficient to live comfortably85% I am always looking for ways to reducespending on everyday itemsPlease indicate how much you agree or disagree with each of the following statements. n= 69121184% I am very careful with my money regardless ofthe overall economic situation

12. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyBUY PRIVATE LABELSTUDY CIRCULARSBUY SALE PRODUCTSCLIP COUPONS (NEWSPAPER)SHOP MULTIPLE STORES95%87%86%63%49%Shoppers work to find the best value12n= 7019+Please indicate how much you agree or disagree with each of the following statements.

13. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyCircular readership is high in the US comparedto other markets1375%60%41%26%% reading circulars regularly51%30% 36%62%56% 50%How often do you look at weekly supermarket / grocery store circulars when shopping atgrocery stores?42%2013 Global Shopper Study

14. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyAmericans have strong value perceptions for privatelabel, while they are weaker in China, Turkey and Brazil1463%66%53%37%% agree Private label / store brands are usually extremely good value for the money45%59%62% 54%74%60% 41%65%Have you purchased private label / store brand products in the past 12 months? 2013 Global Shopper Study

15. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyTalking to Shoppers Private Label15

16. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyPlanning helps shoppers focus onwhat they need91% of shoppers use shopping list68% write shopping list by adding itemsthrough the week59% only specify product types41% name brands for some products92% agree it is a great shopping tripwhen I come back home with bags ofnecessities bought at a great priceApplesBaconChickenBananasCarrotsCeleryChipsIce creamTidesoftenerPaper towelsTylenolKraft dinner16Do you use a written shopping list on your shopping trips? When do you prepare your list?Which one is true for your list? n= 3531+

17. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyApplesBaconChickenBananasCarrotsCeleryChipsIce creamTidesoftenerPaper towelsTylenolKraft dinnerYounger shoppers going digital withtheir list% STORING LIST ON SMARTPHONEBase: Use written shopping list (n= 3532)22%30%18%9%3%18-2425-3435-4950-6465+17Where do you write out your list? n= 3532

18. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyTOP SOURCES FOR SHOPPING TRIP IDEASPurchase ideas come from severalsourcesn=3869But value-driven circulars are king18CIRCULARSRECIPE BOOKSWEBSITESMY SPOUSEMAGAZINE ADSNEWSPAPERSFRIENDSTV ADS73%54%38%34%33%33%26%26%From which of the following sources do you get ideas for your household shopping trips?

19. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyLOW PRICE SPECIALSCOMPARE PRICESPLAN TRIPGET PURCHASE IDEAS90%60%58%50%REASONS FOR READING CIRCULARSCirculars help shoppers find valueand plan their trips19n= 3616Why do you consult circulars?CPG EARLY ADOPTERS:NEW PRODUCTS INFO 42%

20. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyNEWSPAPER INSERTMAILED ENVELOPEEMAILED BYRETAILERSTORE SITEBRAND SITEMAGAZINESCOUPON SITESPROMO BOOKLET63%59%56%53%49%47%46%43%Print and digital coupons both popularPlease indicate the how often you do each of the following activities associated with food shopping before or during your weekly shopping trips.(Ranked by % Monthly or more often, n= 7020)COUPON USE MONTHLY+ BY SOURCE20Digital Channels

21. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyI follow a list andget out ASAP!37%There is opportunity for engagement onthe path to purchaseWhich of the following best describes how you shop in the grocery store or supermarket? n= 3868

22. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyI walk the aisles tobe sure not to missanything I need!63%Which of the following best describes how you shop in the grocery store or supermarket?There is opportunity for engagement onthe path to purchasen= 3868

23. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyInfo accessed on smartphones isinfluencing purchase decisionsCONSUMERS USE SMARTPHONES IN-STORE TO(n= 1,233)Which of the following activities have you done with your smartphone while shopping in-store?Seek Product Info 49% Compare Prices 38%Get Peer Recommendations31%Lookup Online Reviews 30%Seek Coupons 26% Check Recipe 20%MADE A DIFFERENT PURCHASE DECISIONBECAUSE OF MOBILE DATA ACCESSED49%23

24. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyIn-store Shoppers Check Prices24VIDEO

25. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyIn-store There are still barriers to engaging25VIDEO

26. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyNew apps are helping shoppers find morevalue by saving money48% interested in downloading coupons to their phone34% interested in an app that find and organizes coupons41% interested in an app that links all their loyalty cards to their phone26Would you be interested in using your smartphone for any of the following? n= 1236

29. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyNeed for time manifests in desire forconvenienceIt is extremely/very important that a new product helps mesave time81% household care57% food & beverageIt is extremely/very important that a newproduct is simple to use87% personal care87% cosmetics29When considering purchasing a new ________product how important is it that the new product introduced ...? n= 4167+

30. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyMany top rated new products offer ease-of-use or convenience benefits30Consumer VotedWinners for 2013

31. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyConvenience apps: making it easier tointeract with the brandHarvard Business Review, March 2013:4 out of 5 people dislike pop-up mobile ads.Stop focusing on mobile ads and focus on mobile appsStarbucks: Customize, order andpay on your phoneWalmart: view promotions, searchitems, purchase and track ordersOlay UV Monitor(Australia)31

34. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyHealth concerns are strong and universal85% I am veryconcerned about thehealth of my family34Please indicate how much you agree or disagree with each of the following statements. n= 3858

35. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyAmerican shoppers are concerned withspecific health conditions or diseasesPRIMARY HEALTH CONCERNS RANK (% CITING)123456789OBESITYHIGH BLOOD PRESSUREHIGH CHOLESTEROLCANCERHEART DISEASEBACK OR NECK PAINDIABETESARTHRITISHEADACHES/MIGRAINESn = 4,888Which of the following diseases or health conditions are you MOST concerned about in regard to your personal health? Pleasepick the one you are most concerned about.35234167589154368297246157398CAN MEX CHNMOST VARIATIONMOST UNIVERSAL

36. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyMany Americans are trying to livehealthier lifestyles84% I am trying to eat healthier snacks81% I am paying more attention to food labels76% I am trying to control my portion sizes67% I plan to be more active in the next year58% Im often trying to lose weight36Please indicate how much you agree or disagree with each of the following statements. n= 3858

37. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyTalking to Shoppers Labels and Nutrition39VIDEO

38. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper Study1 in 2 shoppers seek out health info onlineTop 10 Websites for Health & Nutrition Information40What is your favorite website for health or nutrition information? (OPEN ENDED) n= 146112345678910

41. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyKeeping up with innovation76% I like trying new products64% I look for products that are innovative48% When shopping, I actively look for products that are newand different.44Please indicate how much you agree or disagree with each of the following statements. n= 85,451

42. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyHEALTHBEAUTY/PERSONAL CAREHOUSEHOLD CAREFOOD71%64%65%50%Consumers believe new is usuallyimprovedRESEARCH & DEVELOPMENT IS CONSTANTLYLEADING TO BETTER PRODUCTS IN45Please indicate how much you agree or disagree with each of the following statements. n= 4894+

43. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudySampling, TV and retail channels seen as goodat conveying information about new products77%67%60%57%56%56%55%SAMPLES IN STORETV ADSCIRCULARSDIRECT MAILRETAIL DISPLAYSRETAIL CATALOGUEIN-STORE SIGNAGEUSEFUL MEDIA TO LEARN ABOUT NEW PRODUCTS(Among Users of Medium, Extremely/Somewhat Useful)46How useful are the following in helping you learn about or becoming interested in new products? n= 2105

44. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyConsumer will engage with brands forsamplesWHY?Word cloud of 3300+ responses (2012 BrandSpark Canadian Shopper Study)4747% LIKED A CONSUMER BRAND ON FACEBOOKn= 1587Are you a fan or part of a Facebook group for any consumer brands on Facebook?

45. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyWhile new drives interest, recommendationsare influential to purchase82% If I find a product that I like, I will encourage friendsand relatives to purchase this product70% I am likely to buy a product that is recommended byothersGet Peer Recommendation31%Check Online Reviews 30%48Which of the following activities have you done with your smartphone whileshopping in-store?Please indicate how much you agree or disagree with each of the following statements.Which of the following activities have you done with your smartphone while shopping in-store? n= 1233

46. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyShoppers feel short of money and time. Convenience is important inproduct innovation and in the apps consumers choose to use.Summary: Address core shopper needs to driveengagement.Consumers believe that R&D driven innovation really does lead to betterproducts. They want the latest and best at fulfilling their needs.Shoppers work to save money. Print circulars and coupons are aspopular as ever while related apps are catching on quickly.Health concerns are strong and universal. Americans are trying to liveand eat healthier and need information to support that. Healthierproducts are resonating.49

47. Mobile Marketing Association 2013 BrandSpark/BHG American Shopper StudyThank you for your time and attention.www.brandspark.comRobert LevyPresident, BrandSpark [email protected]