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Upcoming Webinars Cultivating Multicultural Success: From Opportunity to Growth - August 28th Diverse Intelligence Insights Series: Asian American Consumers.

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Presentation on theme: "Upcoming Webinars Cultivating Multicultural Success: From Opportunity to Growth - August 28th Diverse Intelligence Insights Series: Asian American Consumers."— Presentation transcript:

1 Upcoming Webinars Cultivating Multicultural Success: From Opportunity to Growth - August 28th Diverse Intelligence Insights Series: Asian American Consumers – October 30 th

2 2 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Title of Presentation Copyright © 2012 The Nielsen Company. Confidential and proprietary. The French Connection A View Into Québec Carman Allison Director of Consumer Insights August 2012

3 Today’s presenter Carman Allison Director, Consumer Insights, Nielsen, Canada Carman Allison is responsible for creating and delivering thought leadership to manufacturer and retailer clients and at CPG industry events. A frequently sought-after speaker, Carman is often quoted in the Canadian press on consumer trends including a monthly column in Canadian Grocer. Carman has more than 20 years of experience in the consumer research industry with Nielsen, where he held various account management and analysis roles.

4 Québec : A Distinct Society

5

6 L’exception qui confirme la règle One size does not fit all

7 Shopping behaviour and unique consumption Distinct media behaviour Market size and growth Economic impact on the consumer Emerging consumer segments Our objective today Help you connect with Québec consumers and shoppers

8 Québec : A Economic Power #1 Canada’s largest land mass province #2 Canada’s 2 nd most populous province

9 Despite declining in importance, close to 1 in 4 Canadians live in Québec Source: Statistics Canada Census 7.9 million in 2011 will surpass 8 million in 2012

10 5 year population growth rates Canada 5.9 Source:Statistics Canada – The Canadian Population in 2011 Analytical document Québec lags population growth – an eastern trend

11 Western Canada has now surpassed the East as younger Canadians migrate for jobs 30.6 % East WestOntario 30.7 % 38.4 % Migration Fertility Immigration Lower levels of unemployment in Western Canada Source:Statistics Canada – The Canadian Population in 2011 Analytical document

12 Québec Economic Impact

13 Québec lags retail sales growth – faced with higher cost of living increases Source: Statistics Canada – Economic Observer Report – May 2012 Retail Trade Inflation (CPI) Quebec increased PST +1% in Jan ‘12 to 9.5%

14 Source: Statistics Canada – Consumer Price Index June 2012 Québecers wallets are strained with having to pay more for life’s essentials Inflation by sector

15 Food and health make up a greater portion of the average expenditure in Québec Source: Statistics Canada Survey of household spending % of Household Expenditures Lower home values means less consumer debt ($60k vs. $100k National average)

16 The gas tank may be full, but the wallet is empty – especially in Québec Source: gasbuddy.com – average price pre litre regular grade fuel - August 10, 2012 Price Per Litre Canada $1.28 Quebec $1.40  10% higher

17 65.3 % % in workforce 66.8 Canada Source: Statistics Canada – Economic Observer Report – June vs Québec’s smaller workforce is facing higher levels of unemployment

18 Québecers earn 10% less than the average Canadian and the gap is widening Average Weekly Earnings Canada Quebec Source: Statistics Canada – Economic Observer Report – June 2012

19 About Same Better Off Worse Off Compared to a year ago are Quebecers financially… The impact: A greater portion of Québec households are worse off financially than a year ago Source:Nielsen PanelViews Survey – Canada - May 2012

20 Consumer Profile Québec

21 85 % > 25 % 2 nd 3 rd of Quebecers mother tongue is French greatest portion of multilingual Canadians speak 3+ languages on Montreal Island most taught language in the world most spoken language in the U.S. French: Québec’s Official Language

22 French: Official Language Policy Impact Quebec’s Language Policy protects the long-term viability of the French language within it’s borders. Adapting and thriving within the French culture French must ALWAYS have the greatest prominence over any other language Commercial advertising and public signs/posters must be in French Every inscription on a product, container or wrapping must be in French The name of an enterprise must be prominently displayed in French

23 Household Size QUEBEC Index Quebec vs. Canada 1 member members members members Distribution of shoppers Households in Québec are generally smaller than the rest of Canada with over 2/3rds being 1-2 members Source: Nielsen Homescan Account Shopper Profiler, 52 weeks ending December 31 st 2011

24 Female Male Primary Household Shopper Quebec has a higher portion of primary shoppers who are male – consistent both in urban and rural areas Source:Nielsen PanelViews Survey - Canada - May 2011

25 15-64 > Canada Quebec Québec has a proportion of seniors and is aging at a faster rate than the rest of Canada yr growth Source: Statistics Canada Census By 2025, 50% of Quebec’s population will be > 45 years of age

26 % foreign born% immigrant origin Québec has a lower percent of immigrant population – driven primarily by language Source: Statistics Canada Census 30% of Canada’s Jewish population

27 Visible minorities varies from east to west Source: Statistics Canada Census

28 Shopping Behaviour Québec

29 $ % Chg U % Chg Québec accounts for 25% of CPG sales in Canada and is leading dollar growth with West CPG Regional Importance Source: Nielsen MarketTrack, Regional All Channels, 52 weeks ending March 10, Total Tracked Sales Total Tracked Sales excluding Fresh Random Weight Index 106* * 23.6 of the population

30 Québec households spend less per trip but it’s offset by a higher trip frequency – spending more overall Spend Per Household $9,209 2% more than Canada Trips $48.51 Basket 5% more 3% less Source: Nielsen Homescan Channel Watch, Quebec All Outlets, Total Expenditures, 52 weeks ending March 31st 2012.

31 While Mass is largely underdeveloped in Québec, the Drug and Grocery channels hold strong Retail Channel Share Source: Nielsen Homescan Channel Watch, All Outlets, Total Expenditures, 52 weeks ending March 31st Quebecers spend 9% more in Grocery and 27% more in Drug stores

32 Québec shoppers are becoming more cautious – spending less is the goal Spending Less on CPG? 71 % Yes! +6 points in 12 months 74% only buy on sale 62% use coupons 61% stock up on deals 50% seek out stores with low prices 50% buy store brands Source: Nielsen Panel Views Survey – May 2012 Saving Strategies

33 The consumer impact on CPG in Québec 35 % 49 % +9 % +6 % +7 % of dollar sales are sold with a price cut of units sales are sold with a price cut growth in TPR sales - fueling growth increase in the coupon activity growth from Discount Retailers Source: Nielsen MarketTrack & Homescan –Quebec - Q CPG Review

34 Unique Consumption Québec

35 The fact French consume more cheese isn’t just a stereotype – very different Dairy consumption 100 Source: Nielsen MarketTrack, Quebec All Channels vs. ROC, Total Tracked Sales (excl Alcohol Bev), 52 Weeks ending May 5th 2012.

36 100 Source: Nielsen MarketTrack, Quebec All Channels vs. ROC, Total Tracked Sales (excl Alcohol Bev), 52 Weeks ending May 5th Not necessarily French Toast, but Québecers tend to eat more Toasts at breakfast

37 Poutine and Fondue are among regional specialties – Comfort Food 100 Source: Nielsen MarketTrack, Quebec All Channels vs. ROC, Total Tracked Sales (excl Alcohol Bev), 52 Weeks ending May 5th 2012.

38 100 When it comes to what Québecers drink, there are some notable differences Source: Nielsen MarketTrack, Quebec All Channels vs. ROC, Total Tracked Sales (excl Alcohol Bev), 52 Weeks ending May 5th 2012.

39 100 Source: Nielsen MarketTrack, Quebec All Channels vs. ROC, Total Tracked Sales (excl Alcohol Bev), 52 Weeks ending May 5th Different meat consumption habits – Thanksgiving is much less important among French families

40 Connecting Brands & Consumers Québec

41 Ad for Labatt (St-Jean Baptiste – Quebec holiday on June 24) -The 24 for the 24 -Proud to be “Blue” Resonate with Québecers by speaking their language

42 The preference for Québec-based names extends into the grocery aisle Source: Nielsen MarketTrack; National vs. Quebec All Channels; 52 Weeks Ending June 2, 2012; All Channels = Grocery Banners + Drug + MM/GM/WC/TRU

43 Private Label share is weaker in Québec and lags National Brand growth +3% +2% +2% +2% +4% Dev Index National Brand+3%+2%+4%+2%+3% Private Label $ Share Source: Nielsen MarketTrack, National All Channels, 52 weeks to March 10th, 2012 * Excludes Random Weight Fresh

44 Québecers are not getting the same price advantage of buying Private Label as the rest of Canada Gap: 6% 7% 5% Private Label Price Discount Source: Nielsen MarketTrack, National All Channels 52 weeks to March 10th, 2012 – Avg Price Per Tonnage TPR = Temporary Price Reduction

45 Media Behaviour Québec

46 20 % Share of Voice 25% of the population When it comes to media spend, Québec is not getting their fair share of voice By sector: Food 22% Beverages 19% Restaurants 19%

47 Québecers have created their own TV and Star universe “Both the commercial (TV) and the CBC audience prefer local content and local actors. –It’s a cocoon, and it’s 180 degrees different from English Canada.” In English Canada, American hits aired by commercial broadcasters, such as Survivor, Grey’s Anatomy and Criminal Minds, rule the ratings. In francophone Canada, that list is dominated by Quebec game shows, talk shows, reality contests, soap operas and dramas, some of them created by Radio-Canada but the bulk of them produced by the commercial broadcaster TVA. 10 per cent of Quebec box office is spent on Quebec films

48 It is difficult to use North American entertainment properties to reach Québecers Quebec Canada Top TV Shows Source: Nielsen Media Research Borealis, 36 weeks to May 27, NFL Super Bowl 2.Academy Awards 3.NFL Super Bowl Pre 4.Grammy Awards 5.Big Bang 6.Golden Globe Awards 7.Survivor 8.Amazing Race 9.American Idol 10.Grey’s Anatomy 1.Bye Bye Star Academie 3.On connait la chanson 4.Celine: 3 gars et un nouveau show 5.Occupation double au Portugal 6.SP: Enfants de tele 7.Tricheur, Le 8.Gala Artis SP: Infoman 10.Les Chefs

49 Smartphones will continue to grow but the potential is significantly less traction in Québec % Smartphone Ownership Canada 23% Quebec 14% Use their phone to access the internet Source: Nielsen PanelViews Survey, June 2011 – Canada

50 Top online activities relating to promotions and search QuebecCanada Recipe Search59%60% Product Research50%52% Look for Coupons41%49% Promotions on Retailer Sites40%47% Purchase from Online Store34%43% Read Product Reviews29%38% Consumers in Québec are less willing to use online sites to look for promotions or product information Source: Nielsen PanelViews Survey, June 2011 – Canada

51 Social Media lags development in Québec 56 % visit social media sites 4% less than the national average 35 % Source: June 2011 Nielsen PanelViews Media Survey - Individual responses agree it’s becoming more important 6% less than the national average

52 Québec’s social media usage is very similar to Canada – more likely to be engaged with recipes What are consumers doing on social media? Source: June 2011 Nielsen PanelViews Media Survey - Individual responses

53 Summary Québec

54 Continued focused on value and bang for the buck Promotional activity will remain a key driver of sales Expect continued high low pricing strategies due to less Discount retailing expected to explode in the next year (new stores) Québec: Making the Connection Still economically stressed and cautious Smaller store formats and less need for larger sizes Key categories and segments are posed for growth: Health and wellness, portion control, smaller sizes, OTC etc. Look for ways to be more gender neutral – males are 36% of primary shoppers Older and smaller households

55 Different ethnic groups than the rest of Canada – unique needs, flavours, formats etc. need to be taken into consideration Fewer language barriers - French will still reach the majority of immigrants Québec: Making the Connection Less multiculturally diverse and less challenged reaching More opportunities to engage the shopper with in-store activities: displays, sampling etc. Greater portion of trips and dollars spent in Grocery and Drug channels – allocate your sales support and trade dollars appropriately Shop more often

56 Tastes and food preferences are differ from the rest of Canada – more European based Recognize that your category may be consistently underdeveloped Look for ways to anchor to core categories – Frozen Fruit + Yogurt = Smoothies Be prepared to rebrand if you can’t gain equity OR you’re just too English. Example: SDM to ‘Pharmaprix’ -- Staples to ‘Bureau En Gros’ Québec: Making the Connection Unique consumption and brand preference Independent product, results in a different system of stars, events and cultural references – reach Quebecers through local TV and print Sponsorship and endorsement needs to a local a celebrity Media needs to be a genuine French message – not a simple creative translation from English Canada Media: Local, Local, Local

57 Québec: Making the Connection Despite lower levels of smartphone and social media penetration, Quebecers are willing to engage if the French content is there Web communications and apps need to be bi-lingual in order to maximize reach and use. Less connected but willing

58 ‘L’exception qui confirme la règle’ ‘One size does not fit all’ Basically… You need to localize in order to connect with the French consumer

59 Q&A Thank you for attending If you have follow-up questions or want more information, please contact your Nielsen Professional Services Representative. If you are not a current Nielsen client, please contact us: In the U.S. call: In Canada OR if you have any questions regarding the content of this webinar, you can also contact: Carman Allison,


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