Vol. 1, No. 3
October 2001

Contents

A Word from the Editors

Mid-Lifers' Business is Booming

Reaching the Aging Boomers

The Boomers Have It and Aren't Afraid to Spend It

Energy Food Takes Off

Research Reveals What Consumers Crave in Food Items

About M. Davis and Company

A Word from the Editors

Companies in the consumer product and service industries are closest to markets and know first-hand how confusing and complex today's business environment has become. For example, how will a Chief Executive explain continued growth with slower earnings? Or dueling reports of consumer confidence: one positive, one negative?

Today's environment requires executives to make significant decisions in a timely manner, using the best market information available. Decision makers must have high returns on the market information provided. M. Davis and Company, Inc., provides consumer product and service executives a product - high return on information (ROInfo™) - that most effectively identifies challenges facing their organizations and best solutions to those challenges.

ROInfo™, through the use of a range of research methods and techniques, program designs and monitoring tools, provides clients with critical information in real time. This timely presentation of critical performance information, improves executive decision making and organizational performance.

We hope to use this newsletter to highlight for consumer product and service industry executives some of the current research, key findings, initiatives and best practices in the industry. We welcome your comments.

Mid-Lifers' Business is Booming:
Savvy Retailers Target Baby Boomers' Needs

The demographic shift of baby boomers settling into mid-life is impacting nearly every industry's bottom line. Aging baby boomers are the most populous and influential generation of potential customers. Still, some retailers who aren't aboard are missing the boat.

"The opportunities abound. It's important to identify the niche within this heterogeneous generation that a retailer wants to target with good research," said Dr. John Burnett, marketing chairman at the University of Denver's Daniels College of Business. "Life events during these middle years offer a key that opens up new needs and wants to be fulfilled - some that are not being met."

Link to article: www.denver.bcentral.com/denver/stories/1998/04/27/smallb2.html

"Baby boomers hovering around age 50 defy precise definition, except to say that they are healthy people who see themselves as being in the prime of life," says Myra Stark, director of knowledge management at Saachi&Saachi. "One thing is sure: Boomers will go kicking and screaming into old age. They are not ready to accept growing old."

The task for companies planning to mine this target market is to appeal to boomers with items suited to their age-defying lifestyle, and to find a way to market these products and services without the negative connotation of "mature" or "graying" customers. Figuring how to reach these customers with a relevant message that will lure them to a particular store or brand remains the challenge.

Link to article: www.stores.org/archives/mar98cover.html

The Boomers Have It and Aren't Afraid to Spend It

According to PlanetFeedback data, baby boomers (consumers aged 35-65 years) have higher disposable income and spend more money while dining out than other age groups, but they are also most at-risk to change "brands" or try another fare. They also tend to provide a larger percentage of restaurant feedback than customers in other age groups.

Baby boomers turn to family/casual dining restaurants primarily for convenience. They are time-starved customers; in fact, according to Nation's Restaurant News, 40 percent say they are preparing fewer meals at home than they did a few years ago.

This phenomenon makes it critical for restaurants to offer a wide range of menu options.

In fact, menu choices, along with management and cleanliness/hygiene, are among the most issues consumers mention when discussing their dining experiences.

Link to article: http://portland.bcentral.com/portland/stories/2001/07/02/focus5.html

Energy Food Takes Off

As Baby Boomers grow older, they've become enthralled with products promising to boost their energy levels and slow down the aging process, says Barbara Caplan, a partner at Yankelovich Partners. The 76 million Baby Boomers comprise 29 percent of the U.S. population. "It's part of youthfulness to be energetic," says Caplan. "Probably many of them think it is ridiculous, but maybe [these foods and drinks] will help.

For food and beverage manufactures, a few nickles' worth of supplements can often translate into several extra dollars worth of profits, says Varro Tyler, a food-supplements expert at Purdue University.

Over the past five years, sales of "functional foods" (those with supplements added) have been growing at twice the rate of both supplement sales and sales of traditional foods, says Patrick Rea, research director at Nutrition Business International. With 36 percent market share, functional foods now make up the biggest segment of the $48 Billion U.S. nutrition food market. They attract more consumer dollars than supplements, and more than natural organic foods and personal-care products (e.g., moisturizing creams and antioxidant lotions) combined.

Link to article: www.businessweek.com/bwdaily/dnflash/jul2001/nf20010720_904.htm

Research Reveals What Consumers Crave in Food Items

Trimming fat may be a weighty issue for consumers, but gratifying the tastebuds takes even higher priority, according to new research conducted for the Grocery Manufactures of America. More than nine in ten shoppers say that taste is a very important factor in deciding which products to buy - nutrition ranks a close second.

The study revealed other key marketplace trends in grocery shopping, with healthy and zappable microwave products topping the list of favorites among consumers. Half of all shoppers identified reduces fat and no fat products as one of the two most important developments in packaged food products over the past several years, followed closely by vitamin/mineral fortified foods and microwaveable products.

Technology is also beginning to trickle into shopping trends - one third of shoppers said the notion of shopping for basic food items at home using a computer or television is enticing. Younger shoppers who are time pressed and have annual incomes above $50,000 were the most likely to cite this trend as appealing.

Link to article: www.opta-food.com/trends/2trends.html

ABOUT M. DAVIS AND COMPANY

M. Davis and Company, Inc., is a market research and consulting firm that provides complete services from project conception through implementation. We aim to ensure that our clients receive a high return on information (ROInfo™) by employing our unique perspective and market insights. We help clients make the most of their opportunities and implement solutions based on the information we provide. Summary of recent projects include:

We believe our clients are buying solutions, not volumes of data. To achieve success, our clients need "added value" and we supply it. We forge a close relationship with our clients, becoming their trusted partner, instead of a supplier. With better understanding of our clients, we narrow the gap between their objectives and operations by providing information tailored to their needs and designed to help them achieve: "high margin" information. Our clients can then employ strategies and tactics that produce success.

To learn more above the services and capabilities of M. Davis and Company, Inc., visit our web site at www.mdavisco.com or call 215-790-8900 to speak with one of our market research professionals.

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