Why They Buy. Fighting Obesity Through Consumer Marketing Research.
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1 Why They Buy Fighting Obesity Through Consumer Marketing Research Hank Cardello Senior Fellow & Director, Food Policy Center June 14, 2018
2 Introduction
3 Obesity Remains a Widespread Problem Adult obesity rates now exceed 35% in 5 states, 30% in 25 states Source: CDC Behavioral Risk Factor Surveillance System, 2016
4 Traditional Approaches Have Focused Primarily on Marketing Restrictions, Consumer Education and Regulations that Address the Population at Large Yet, these initiatives have known limitations Take a one-size-fits-all approach Unintended consequences of regulations Often do not address the key need: shifting long term behavior
5 Enter Consumer Segmentation What is segmentation? Identifies sub-groups to more effectively understand, message to and motivate consumers Consumers are all the same Consumers have unique needs Example (Automobiles): Looking for lowest price Safety Luxury Performance Want maximum fuel efficiency Fuel efficiency Image conscious Styling and design
6 Approach & Methodology
7 The Approach: Examine differences among consumers based on BMI Category Mindsets & Attitudes How they think & attitudes toward food Lifestyle & purchase patterns Behaviors Barriers to Change Seated beliefs & demographic constraints Policy & Program Insights
8 The Segmentation Solution A four-segment solution was selected Compare Healthy Weight cohort vs. those having Obesity Examine 2 Overweight segments to assess transition dynamics Overweight 1 (OW1) somewhat overweight Overweight 2 (OW2) mostly overweight Healthy Weight Overweight 1 Overweight 2 Obesity BMI Classification % Sample Total 34.4% 12.2% 14.5% 22.6% Source: NIH; CDC
9 Research Parameters Survey performed by Natural Marketing Institute Have conducted 50,000 + surveys 2000 person sample Mutually exclusive segments determined by BMI classification Statistical significance at 95% confidence level Focus on indulgent products Soft drinks/beverages Packaged pastries & sweet baked goods Salty snacks & chips Chocolate & candy Cookies Packaged ice cream
10 Summary of Insights
11 Obesity Segment Attitudes Are Not Aligned with Healthier Eating Mindsets & Attitudes 70% 50% 30% Q. I know I should eat healthier but don t 1 62% 56% 41% 42% Healthy OW 1 OW 2 Obesity INDEX vs. General Pop. Healthy Weight Overweight 1 Overweight 2 Obesity Know I should eat healthier but don't * 123.5* It s difficult to follow a healthier eating plan * 136.1* It s not convenient to follow a Healthy lifestyle * Consuming Healthy, nutritious foods is important 106.4* 105.6* Agree completely/somewhat *significant finding versus Healthy weight individuals * significant finding versus Obesity segment
12 Taste & Value Trump Health for the Obesity Cohort Mindsets & Attitudes 40% 35% 30% Q. I often give up taste for health benefits 1 37% 31% 32% 30% Healthy OW 1 OW 2 Obesity INDEX vs. General Pop. Healthy Weight Overweight 1 Overweight 2 Obesity I often give up taste for health benefits Healthy food just doesn't taste good I will often give up valuepriced or cheaper products for products with health benefits 102.7** * 107.8* Agree completely/somewhat *significant finding versus Healthy weight individuals * significant finding versus overweight and Obesity segments
13 Only 1/3 in Obesity Cohort Rate Health & Nutrition as a Top 3 Attribute Mindsets & Attitudes 50% 40% 30% % Indicating Health/Nutrition as a Top 3 Attribute 44% 43% 38% 32% Healthy OW 1 OW 2 Obesity INDEX vs. General Pop. Healthy Weight Overweight 1 Overweight 2 Obesity Taste * Value for the money * Health & nutrition 112.1* Competitive price * 123.0* 120.4* Convenient preparation * Q. When selecting the foods and beverages that your household consumes, which THREE attributes are most important *significant finding versus Healthy weight individuals * significant finding versus Obesity segment
14 Obesity Segment Displays a Different Mindset to Making Choices Mindsets & Attitudes 70% 50% 30% Q. I have cravings for unhealthy foods and give up 1 62% 47% 51% 41% Healthy OW 1 OW 2 Obesity INDEX vs. General Pop. Healthy Weight Overweight 1 Overweight 2 Obesity I have cravings for unhealthy foods and usually just give up Choose foods based on whether they make me feel good emotionally * I tend to choose somewhat impulsively * I live for today/don t worry about tomorrow * 1 Agree completely/somewhat *significant finding versus Healthy weight individuals
15 Healthy Weight Individuals Are More Likely to Read and Act on Package Labels Behaviors & Decisions INDEX vs. General Pop Healthy Weight Overweight 1 Overweight 2 Obesity Read labels on packages Select foods based on nutrition facts panel on back Select foods based on nutrition on front 103.7* 104.7* * * Select foods based on ingredient list 106.8* * significant finding versus overweight 2 and Obesity segments
16 Obesity Cohort Purchases Significantly More Packaged Snacks, Sweet Baked Goods and Soda, But Not Candy Behaviors & Decisions Purchase INDEX Healthy Weight Overweight 1 Overweight 2 Obesity Diet soda * Regular soda * Packaged pastries/ Baked goods * Cookies * Potato & other chips/ pretzels * 104.4* 110.3* Packaged ice cream * Non-chocolate candy Chocolate candy Q. Products you have purchased in the past month *significant finding versus Healthy weight individuals
17 Healthy Weight Segment Driving Sweetener Concerns Behaviors & Decisions INDEX vs. General Pop. Healthy Weight Overweight 1 Overweight 2 Obesity I avoid ALL sweeteners 103.2* I search for all natural non-calorie sweeteners rather than artificial sweeteners I avoid products containing high fructose corn syrup I search for food and beverages with no added sugar 105.4* * * *significant finding versus Obesity segment
18 Obesity Cohort Does Not Like to Exercise or Believe in Its Value Behaviors & Decisions 30% 20% 10% Q Response: I do not exercise 1 25% 23% 15% 17% Healthy OW 1 OW 2 Obesity INDEX vs. General Pop. Healthy Weight Overweight 1 Overweight 2 Obesity I do not exercise or work out * 134.7* I hate to exercise * 137.1* Exercise is important for health 108.7* 104.0* Agree completely/somewhat *significant finding versus Healthy weight individuals * significant finding versus overweight 2 and Obesity segment
19 The Expense of Healthy Foods Is a Barrier to the Most Overweight and Obesity Segments Barriers & Opportunities 55% Q: I don t eat Healthy food more often because it s too expensive 1 53% 45% 46% 40% 40% 35% Healthy OW 1 OW 2 Obesity 1 Agree completely/somewhat
20 Barriers Are Echoed by Demographics Indicating Weight Status Is Linked to Income Barriers & Opportunities Healthy Weight Overweight 1 Overweight 2 Obesity Income <$50k * $50k $99k $100k Use Food Stamps/ SNAP * College Grad 107.9* Age: * *significant finding versus Healthy weight individuals * significant finding versus Obesity segment
21 Portion Sizing and Convenience Offer Potential Bridges Toward Healthier Eating Barriers & Opportunities 70% 50% 30% Majority of consumer groups stated they are seeking healthier on-the-go options 1 62% 55% 52% 57% Healthy OW 1 OW 2 Obesity 70% 50% 30% Q. I am unlikely to give up soda or snacks, but I would like to consume them in smaller portions 1 51% 50% 53% 60% Healthy OW 1 OW 2 Obesity 1 Agree completely/somewhat
22 Restaurants Emerged as a Significant Opportunity to Reduce Calorie Consumption Barriers & Opportunities 80% 60% 40% 20% 0% 63% I look for healthy items Restaurant Eating Behavior (all respondents) 1 55% I would prefer smaller portions 36% I check the calorie content At restaurants Healthy Weight Overweight 1 Overweight 2 Obesity I like to indulge and eat what I want I often splurge and eat foods that are not so Healthy It is hard to find healthier foods that taste good * * * 1 Agree completely/somewhat *significant finding verse Healthy weight individuals
23 Segment Recaps The mindsets, attitudes and purchase habits of the Obesity cohort are dramatically different than Healthy Weight individuals Mostly Overweight (OW2) segment leans toward Obesity cohort s attitudes and behaviors Moderately Overweight (OW1) segment illustrates several attitudes and habits comparable to Healthy Weight individuals, suggesting more receptiveness to change Healthy Weight Overweight 1 Overweight 2 Obesity H&W Stars Get it; Need Guidance Tipping Point Challenge to Change
24 What are the implications? Traditional health messaging to the Obesity segment (as well as the mostly overweight segment) is not an effective strategy given that their expressed attitudes, behaviors and MINDSETS are inconsistent with healthier eating and lifestyles. Calories must be removed from indulgent products (especially soft drinks, salty snacks & sweet baked goods) and restaurant menus as they contribute to overconsumption by the Obesity cohort. A more effective way to help the Obesity/mostly overweight segments is via Stealth, i.e., offer, display and sell products that are quietly lower in calories/ betterfor-you while tasting great and delivering an affordable price. Somewhat overweight individuals get it about health and nutrition but need more assistance. Targeted health messaging combined with stealth efforts will help this cohort.
25 Stealth the Roadmap to Helping the Highest Risk Populations Healthy Weight Overweight 1 Overweight 2 Obesity H&W Stars Get it; Need Guidance Tipping Point Challenge to Change STEALTH
26 Calls to Action
27 Calls to Action - Industry Packaged Snacks/Sweet Baked Goods and Restaurant Sectors Need to Make Commitments to Lower Calories Sector Key Commitment Verification Healthy Weight Commitment Foundation (16 CPG cos.) Removed 6.4 trillion calories Robert Wood Johnson Foundation; UNC Confections Convenience Stores ½ of items sold 200 calories by 2021 Multiple chains increase # of healthier products sold; Drink Up! Soft Drinks Reduce calories by 20% by 2025 Partnership for a Healthier America; Hudson Institute Partnership for a Healthier America Alliance for a Healthier Generation Restaurants Snacks/Sweet Baked Goods Kids LiveWell 42,000 locations with 2 BFY items for kids None
28 Calls to Action Public Health Regulators and the Public Health Community Need to Reassess Standard Approaches for Effectiveness by BMI Segment Example Program Labeling Challenge High BMI segments do not read and select foods based on nutrition labels as much as Healthy weight group Required Learnings Determine most compelling messages and ways to communicate them by BMI segment Junk Food Taxes High BMI segment mostly against taxes; Taste a big purchase driver making switching to high calorie/tasty products likely Assess trade-off purchases and net impact on calorie consumption & obesity rates for each BMI cohort SNAP Debate surrounding which products should be part of SNAP offering Examine SNAP recipient consumption of debated products by BMI cohort to determine extent of overall product usage and when using SNAP benefits
29 Calls To Action Research Need Deeper BMI Segmentation Research into Overweight/Obesity Cohorts to Uncover Notable Opportunities to Shift Outcomes Deep Dives by BMI segment: Product Usage Full array of CPG products total impact For QSR menu items Communications/messaging Attitudes & Mindsets o Labeling o Public Health education messaging Policy Input
30 Why They Buy Fighting Obesity Through Consumer Marketing Research Panel Discussion Bill Dietz Tracey Massey Hank Cardello
31 Appendix
32 Segment Recaps The mindsets, attitudes and purchase habits of the Obesity cohort are dramatically different than Healthy Weight individuals Know they should but do not following healthier eating lifestyles Health & wellness is not a priority; won t compromise on taste More short term; likely to give into impulses and indulgent (over)eating Overconsume indulgent products (except chocolate/candy) Nominal concerns regarding sugar Not reading labels as much or selecting products based on nutritional information Hate to exercise and do not see its value Price of healthy items an issue
33 Segment Recaps Mostly Overweight (OW2) segment leans toward attitudes and behaviors of Obesity cohort Know they should but do not follow a healthier eating plan Health & wellness less of a priority; won t compromise on taste Overconsume salty snacks Not reading labels as much or selecting products based on nutritional information Hate to exercise and do not see its value Price of healthy items somewhat of an issue
34 Segment Recaps Moderately Overweight (OW1) segment demonstrates several attitudes and habits comparable to Healthy Weight individuals, suggesting more opportunities for change Agree health & wellness is important, but competitive price a factor Don t overconsume indulgent products (except salty snacks) Reading labels and, directionally, selecting products based on nutritional information Get importance of exercise Mindsets closer to Healthy Weight segment
35 Obesity Cohort Purchases Fewer On-trend Healthier Alternatives Behaviors & Decisions Purchase INDEX Healthy Weight Overweight 1 Overweight 2 Obesity Protein bars 109.7* Yogurt 104.6* Aquafina Dasani Q. Products you have purchased in the past month *significant finding versus Obesity segment
36 Highest BMI Cohorts Are Less Likely to Rely on the Internet, Social Media and Expert Sources for Information Barriers & Opportunities INDEX vs. General Pop. Healthy Weight Overweight 1 Overweight 2 Obesity Internet/Websites 104.8* Third Party certification seals (i.e., USDA Organic Seal, NON- GMO Project) Corporate/Brand websites Social media (Twitter, Facebook, Pinterest..) 104.1* * * Blogs 104.5* Q. How much influence does each of the following have on your purchase/usage of healthy and natural products (Top 2 box: a lot/a little) * significant finding versus OW2 and Obesity segments
37 Overweight and Obesity Cohorts Are Less Favorable to Taxing Sodas Barriers & Opportunities 60% Q: Response NO to: Is taxing soda is a good thing to do to cut the health risks caused by excess sugar consumption? 1 50% 40% 46% 50% 49% 37% 30% Healthy OW 1 OW 2 Obesity 1 Agree completely/somewhat *significant finding verse normal weight individuals
38 Consumers Are NOT Counting Calories Regardless of BMI Behaviors & Decisions 90% Response: I do NOT track calories consumed 1 80% 70% 75% 74% 80% 76% 60% Healthy OW 1 OW 2 Obesity 1 Agree completely/somewhat
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