1. Premium Product Fundamentals
Global Consumers & Opportunities
Michael Walton,
Executive Director, Nielsen Pacific
August 2012
1
Title of Presentation
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

2. Today
1 Introducing the consumer story ….
2 4 key stories that frame our opportunity
3 Retailer Adaptations
4 Observations and implications
2
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

3. 4 Key Stories
3
Title of Presentation
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

4. By 2020, the global middle
class will be a staggering 52%
of the world’s population
4
Source: Brookings Institution
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

5. Women control almost $12
trillion of the $18 trillion in
global consumer spending
5
Source: Deloitte Touche Tohmatsu
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

6. The world adds the equivalent
of seven New York Cities
to the planet every year
6
Source: Intuit
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

7. Mobile phones will overtake
PCs as the most common
Web access devices by
2015
7
Source: Gartner
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

8. Retail Adaptations
8
Title of Presentation
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

9. Accessible
Connected
9
Available
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

10. Customized
Mobile
10
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

11. Observations & Implications
11
Title of Presentation
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

12. How do consumers feel about spending?
Not great. But it does not impact all spending behaviour …
Source Nielsen Global Confidence 2Q 21012
12
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

13. Can premium play with low confidence levels?
#1 Yes.
Nielsen analysis of Australian shoppers show :
• Those that buy macadamias are far more likely to have
higher socio-economic households
• Those that buy macadamias interact with mixed nuts,
cashews and almonds
Nielsen analysis of US shoppers show :
• $100k+ households only group to be growing grocery
spend. This is our target demographic
Source Nielsen : US Retail Sales 2012
13
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

14. Can premium play with low confidence levels?
#2 Yes, Consumers understand value is more than price …
Unit Unit Price Premium to
Change Change Mainstream
Eggs 0% Speciality + 12% 44%
Coffee -4% Premium + 5% 18%
Pod Coffee +115% 99%
Chocolate 6% Premium + 10% 83%
Source Nielsen : US Retail Sales 2012
14
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

15. Where does Private Label thrive ?
Where Does Private Label Succeed
1. Brands or categories with low differentiation
2. Categories or brands with typically low consumer
engagement
3. Where retailers are fairly consolidated
4. When consumers feel it offers adequate quality for a price
5. When consumers feel that buying it has low or nil social
stigma
15
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

16. Connecting with consumers
Humour, A Story and an Emotive Link are Proven.
16
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

17. To Wrap
Some of your Nut Rush metrics …
•Middle class growth superb
•Female spending power growth superb
•Developed countries need to be all about affordable
indulgence and reward, but consumers you tend to over index
with are already boosting spending
•Developing countries offers very large prizes, particularly
through new urban cities – through flexible packaging and
retailing channels. Online will be a superb and inexpensive
pathway here
•Macadamia’s are comparatively “new” and that is highly
attractive for companies planning new products.
17
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

18. michael.walton@nielsen.com
18
Title of Presentation
Copyright © 2012 The Nielsen Company. Confidential and proprietary.