American consumers are more overweight than ever, yet there is a rush to healthy foods. Consumers in Great Britain consume more fast food than those on the European continent, yet the Brits are leading functional foods. The consumer is a study in contrasts, which leaves some strategists throwing up their hands. We've heard many lament that the consumer says they want one thing but their behavior suggests something else.
Yet when we look at these contrasts we can make some sense out of them if we think of them carefully and logically. First, let's get rid of the myth that there is an average consumer. While I'll probably annoy a few marketers with this comment, there is not even an average or typical consumer for a particular brand. I dislike it when I hear, "our purchaser is a 33.5 year old female who works in an office and has 1.2 children." I certainly don't know anyone with 1.2 children (perhaps my daughter who is nine months pregnant as we go to press could be said to have .9 children, but that is carrying it a bit far!). The typical users of that product may be females 27 – 40; 40% may have no kids; 40% may have two kids and 20% may have one kid. Perhaps 70% work in an office. Yet the lifestyle of the 40 year-old office worker with two kids and no male in the household may be totally different from the 40 year old female with no kids. What about the 7% of males who use the product? Should we ignore them or is it possible that this is an untapped market and 33% of usage could come from males if further explored? I think you get the point.
The day of only targeting the "average consumer" went out with the hula hoop. First, many marketers can target individual consumers through database marketing. This requires that we know enough about each customer to interact. Companies like Gateway or Dell Computer and even firms with frequent flier programs have enough information to deal with people, not averages. Most firms selling to stores do not have that much. Yet, they can often get much information from various means, such as IRI, Nielsen or other databases.
Defining Demographics
If we can't know our individual consumer we may be able to cluster users of certain nutraceutical products into demographic groups. It is clear that baby boomers are driving the trend over all. Yet, the 53 year old boomer is substantially different than the 35 year old boomer. To further make the point, Linda Gilbert of HealthFocus-speaking at a recent industry conference-said, "Three out of four respondents (to a HealthFocus survey) said they believe their own nutritional needs are different from everyone else's." So the majority say they are in the minority with their needs! In other words, those people are saying '"I'm different!" There is a lesson in that. Why wouldn't boomers think they are different? They are substantially different than their parents! There are enough segments of boomers-richer/poorer, older/younger, obese/ fit-to see real differences among them. It's not unusual for consumers to see themselves as the unique human being that they really are. Not the 33.5 year old female with 1.2 kids!
Marketers need first to look at segments of consumers for their particular product. The user of glucosamine is not necessarily the same as the user of oatmeal. And we cannot classify people totally on the basis of demographics and statistics. We need to understand attitudes that go with the facts. Consumers are wealthier than ever in our boom economy. Ms. Gilbert calls this "the age of entitlement."
Let's examine that carefully. They want and have earned food that tastes good. Taste rules when it comes to food. Ease of taking the product rules when it comes to supplements. They want and have earned food that is fast. They feel they are entitled to convenience. I'd rather get my antioxidants in my orange juice, and don't call them antioxidants, use a word I know like vitamins A, C and E. They want and have earned food that keeps them healthy-while tasting good and not requiring a lot of preparation. They want to be practical and indulgent!
Harvey Hartman, head of Seattle-based Hartman Group research firm, says people in a healthy living sector, "are looking for…an experience. They want to participate in something." Now we can add that they are willing to interact. We can conclude there is a fairly large sized group of consumers who are interested in health who want belongingness. They want to be affirmed in their search. Yet we can bet they don't all want that. I'm sure Mr. Hartman would agree that while there is a significant group that feels that way, there are others who are less connected. That's again because we can do a better job of segmenting than trying to come up with some "average" profile.
Times are good. Many consumers have money to spend. For example, in a report I did for HealthFocus on supplement users, we found 22% of users had household incomes of $65,000 or more vs. only 15% of non-users. Consumers want to be healthy and some are doing something about it and are looking to manufacturers to help them. Other consumers want to do something, but are not really doing much (eating chicken nuggets instead of a hamburger does not really count) and still want a food processor or supplement maker to give them products to help. This means tailoring marketing messages to different potential users.
It is not inconsistent for consumers of different ages and different behaviors to expect many different things. They want health. Some are willing to put in extra work to get it. Others are not. If you give them a "good-for-me" food they want it to taste good. They also don't want to be lied to. They find it confusing when a report says soy is good for you and a month later they read that there may be some negatives associated with soy. They don't quite realize that nothing is perfect and that it is possible to have some negatives associated with a substance that, on balance, is quite good. So they want accurate information. If they are willing to be a part of something, marketers may better reach them through a club or association or other group.
Consumers are you and I. We are individuals with somewhat similar needs. They/we need to be treated as such.
NW
