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DRIVING GROWTH IN A CHANGING WORLD

EDUARDO RAGASOL – NIELSEN BRAZIL PRESIDENT


1. The world will continue to get

SMALLER

2. Consumers will have more

TOUCHPOINTS

3. Global will become

LOCAL

4. Local will become

GLOBAL

5. The world will be very different

TOMORROW


Copyright Š2013 The Nielsen Company. Confidential and proprietary.

THE WORLD HAS CHANGED...PERMANENTLY

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Copyright ©2013 The Nielsen Company. Confidential and proprietary.

OUR CONCERNS ARE GLOBAL TOP GLOBAL CONCERNS

ECONOMY

16%

JOBS

15%

WORK/LIFE BALANCE

10%

Source: Nielsen Global Omnibus Consumer Confidence Survey 2Q2013

HEALTH

9%

PRICES

7%

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Copyright ©2013 The Nielsen Company. Confidential and proprietary.

AND LOCAL TOP COUNTRY CONCERNS

NORWAY Economy Health

U.K

Jobs Economy

CANADA U.S.

GERMANY ITALY

Jobs

Economy

MEXICO

EQYPT

Jobs

JAPAN

Jobs

Utility Prices

INDIA

Jobs Economy

Jobs

CHINA

Jobs

SPAIN

Economy

RUSSIA

Utility Prices

FRANCE

Jobs Debt

Jobs

THAILAND

Economy

COLOMBIA

PHILIPPINES Jobs

Jobs

BRAZIL

Health Work/life balance Jobs

Source: Nielsen Global Omnibus Consumer Confidence Survey 2Q2013

S. AFRICA Jobs Debt

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“

Learn to know your consumers because they have specific needs


CHANGING FACE OF THE CONSUMER Urbanization & Industrialization foster …

Declining birth rates …

Which lead to an aging population

Copyright ©2013 The Nielsen Company. Confidential and proprietary.

With important implications on the future …

UNEVEN POPULATION GROWTH

OLDER CONSUMERS WITH NEW NEEDS

CHANGES IN PER HH SPENDING

DECLINING % OF HHS WITH CHILDREN

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Copyright ©2013 The Nielsen Company. Confidential and proprietary.

CONSUMERS 60+ WILL BE DRAMATICALLY INCREASING IN THEIR RELATIVE IMPORTANCE • CHINA grows only slightly to be as old as Florida by 2040 • Russia, BRAZIL, Mexico also aging rapidly • INDIA continues to grow rapidly but will be as old as the U.S. is today by 2050 • The less developed world population aging by middle of the 21st century, but with far less time to prepare SATISFYING THEIR UNIQUE NEEDS FUELS GROWTH

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OLDER CONSUMERS WILL DRIVE NEW CONSUMPTION PATTERNS Purchase size decrease ●Smaller household sizes ●Smaller Homes

Relative affordability ●Fixed Income ●CPG as a % of basket vs. Healthcare ●Increasing life expectancy means savings

have to last longer

Quality of life creates new needs ●Increasing life expectancy ●Overall more active & healthy than previous

generations, but will still need to manage effects of aging 9


Copyright Š2013 The Nielsen Company. Confidential and proprietary.

WOMEN CONTROL $12 OF $18 TRILLION IN GLOBAL CONSUMER SPENDING - CLOSE TO 70%

60% of global WOMEN are

STRESSED, feel pressured for time and rarely have time to relax

IMPLICATION

Marketers need to highlight products and services offering CONVENIENCE, EASE of use and TIME SAVINGS 10


Copyright Š2013 The Nielsen Company. Confidential and proprietary.

AS EMPOWERMENT INCREASES, SO DOES STRESS DEVELOPED COUNTRIES

I often feel pressured for time

EUROPE

EMERGING COUNTRIES

54%

58%

62%

I rarely have time to relax

37%

46%

55%

I feel stressed/overworked most of the time

38%

45%

49%

Source : Nielsen Women of Tomorrow, June 2011

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Copyright Š2013 The Nielsen Company. Confidential and proprietary.

ONCE SHE IS IN THE STORE, INFLUENCES ARE VISIBLY PRICE DRIVEN

price/promotions value for the money trusted brand name in-store availability varieties available

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PRICE IS A KEY VARIABLE FOR BRAZILIANS FOOD AND HOME CARE PRODUCTS STAND OUT AS THE MOST ELASTIC

AVERAGE ELASTICITY Venezuela Colombia Mexico

opyright ©2012 The Nielsen Company. Confidential and proprietary.

Average Argentina Chile

0

-1 Little Elastic

-1.7 Moderately

-2.7 Elastic

Very Elastic

Brazil Source: PnP Elasticity Bases – 2008 to May/2012 | Nielsen AAC

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PROMOTION IS A DOOR TO TRIAL % LEADING BRANDS GAINING SHARE, PER SEL

Aspirational Appeal

57% DE

51% opyright ©2012 The Nielsen Company. Confidential and proprietary.

C

34% AB

Perceived Promotion Percent and Share of Leading Brands that Gained Share, per Social-economic Level – Source: Nielsen | Homescan

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“

Capture consumers where they are because you are going to be seeing them less often


GLOBAL CONSUMERS ARE GOING TO THE STORE LESS OFTEN

DESPITE INCREASED SPENDING INTENTIONS, TRIPS PER HOUSEHOLD ARE FLAT OR DECLINING IN MANY COUNTRIES CAGR

Annual Trips per Household 3 Yr CAGR *

< -1% -1% to 1% ≥ 1%

UK

Canada Spain US

France

S. Korea

PR

Mexico Copyright ©2013 The Nielsen Company. Confidential and proprietary.

Italy

Thailand

Colombia

Indonesia

Brazil Chile

3 Year CAGR for US, CA, BR, CL, FR, IT, UK, ES, KR, TH 2 Year % Change for MX, CO, PR Source: Nielsen Consumer Panel Data

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HOWEVER THEY ARE ALSO SPENDING MORE PER TRIP THIS TREND IS MOST SIGNIFICANT IN ASIA PACIFIC

CAGR 0% to 2%

Household Spend per Shopping Trip 3 Yr CAGR *

≥ 5%

UK

Canada Spain US

Italy France

S. Korea

PR

Mexico Copyright ©2013 The Nielsen Company. Confidential and proprietary.

2% to 5%

Thailand

Colombia

Indonesia

Brazil Chile

3 Year CAGR for US, CA, BR, CL, FR, IT, UK, ES, KR, TH 2 Year % Change for MX, CO, PR Source: Nielsen Consumer Panel Data

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TWO MAIN FACTORS DRIVING TRIP CHANGE

Copyright Š2013 The Nielsen Company. Confidential and proprietary.

LIFESTYLE Global consumers cite a desire for WORK/LIFE BALANCE as one of their highest concern (after economy and jobs)

Source: Nielsen 2Q13 global survey , Nielsen How digital influences how we shop: Aug 2012 VS Q1 2010 ,

TECHNOLOGY

49% of global consumers

make a PURCHASE ONLINE, with over a billion smartphones globally in 2012, that number will only increase

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SUCCESS WILL BE DRIVEN BY INCREASINGLY CONNECTED TOUCH POINTS ACROSS THE PURCHASE CYCLE

Copyright ©2013 The Nielsen Company. Confidential and proprietary.

PRE • • • • •

Advertising Blogs Social Media Retail Flyers (print & E) Word of mouth

• • • • •

DURING In Store Displays Shelf Talkers Sampling Merchandising

• • • •

POST Social Media CRM programs Websites Text messages

Source: Nielsen Wire: Consumer Confidence: Concerns and Spending Intentions Around the World: http://www.nielsen.com/us/en/reports/2013/consumer-confidence--concerns-and-spendingintentions-around-the1.html; Q2 2012 – Q2 2013

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Copyright ©2013 The Nielsen Company. Confidential and proprietary.

LEVERAGING THE MOST WIDELY ADOPTED TECHNOLOGY IN HISTORY… SMARTPHONES

Nielsen The Mobile Consumer : A Global Snapshot Feb 2013

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BRAZILIAN CONSUMERS ARE MORE OPEN TO ADVERTISING

opyright ©2012 The Nielsen Company. Confidential and proprietary.

BRAZIL Latin America WHEN I WATCH ADS, I OFTEN HAVE SHOPPING IDEAS

67% 41%

ADS INFLUENCE MY BRAND PREFERENCE

61% 57%

THE PRODUCT IMAGES CREATED BY ADS AFFECT MY PURCHASE DECISION

54% 50%

I MAY BUY A PRODUCT BECAUSE I LIKED THE AD

44% 29%

Source: Nielsen Global Survey – Q3 2012 | % Somewhat agree and Strongly agree Online survey with 3,514 respondents in Latin America (503 in Brazil)

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CHANGE REQUIRES THINKING DIFFERENTLY CHALLENGE YOURSELVES: 1

How you engage your customer

2

Where you innovate

3

The way you assess marketplace trends

4

Where your growth will be achieved

5

How you sell to your customer


SUMMARY HEALTHY

DEMOGRAPHIC FORCES MODIFY THE BUYING HABITS GLOBAL AND LOCALLY

Copyright ©2013 The Nielsen Company. Confidential and proprietary.

CONVENIENCE

PACKAGE SIZES

CUSTOMIZATION

URBANIZATION POPULATION AGING WOMEN IN LABOR MARKET SMALLER FAMILIES

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SUMMARY

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ECONOMIC UNCERTAINTY AND CHALLENGE TO MAINTAIN THE CONSUMPTION UNDER THESE CONDITIONS

PRICE IS DECISIVE AND PROMOTIONS EFFECTIVE MANAGEMENT GENERATE MOVEMENT IN STORES 31


THANK YOU EDUARDO RAGASOL NIELSEN BRAZIL PRESIDENT

Retail & presidents meeting txai 2