Growing Sales Through Segmentation and Local Market Strategies

1. Growing Sales Through Segmentation and Local Market Strategies Peter Greene SVP, Durables Strategies March 11, 2012

2. AGENDA • Overview of Nielsen • Overview of Segmentation • Segmentation in Action • Summary • Q & A

3. WHO WE ARE Nielsen is the world’s leading provider of marketing information, audience measurement, and business media products and services.

4. More than 34,000 employees in over 100 countries…

5. WHAT WE DO Nielsen measures markets, media and consumer behavior across industries and around the world. We integrate information from across our business. We transform raw data into strategic insights and tailor-made recommendations. We analyze and advise about complex sales and marketing issues for winning business decisions.

6. AGENDA • Overview of Nielsen • Overview of Segmentation • Segmentation in Action • Summary • Q & A

7. UNDERSTAND YOUR CUSTOMERS seg·men·ta·tion  [seg-muh n-tey-shuh n] A marketing technique which allows you to define and divide the marketplace into clearly identifiable groups sharing similar characteristics, needs, wants or demands.

8. FIND YOUR BEST CUSTOMERS ZIP CODE 23219 BY COMMUNITY BY CHANNEL

9. CONNECT YOUR PRODUCTS TO PEOPLE & PLACES Your Products Evaluating Opportunity; Creative Messaging, Channel Planning Assortment; Promotion & Merchandise mix People Places Market & Distribution Planning; Local Media

10. MAXIMIZE THE VALUE TO YOUR ORGANIZATION Strategic Planning & Research Local Market Promotion Channel Management Consumer Segmentation MEDIA STRATEGY Local Market Solutions Customer Relationship Management National Media Strategy Product Distribution

11. TRANSFORM YOUR BUSINESS VIEW MEASURE ASSESS PLAN

12. BEFORE CONSUMER GROUPS CONSUMER GROUPS CONSUMER GROUPS CONSUMER GROUPS PRODUCT PROMOTION PLACE PRICE AFTER We help companies understand & find consumer who want to buy. How will you take Action? How will you Measure Success? CONSUMER GROUPS PRODUCT PRICE PROMOTION PLACE

13. CAPTURING OPPORTUNITY WITH ACTIONABLE RETAIL SOLUTIONS We help companies understand & find consumer who want to buy. PRICE PRODUCT CONSUMER GROUPS • New Product Design • Expected Buyer Analysis (New Products) • Share of Market/Wallet • Consumer Experience • Store Clustering • Category Analysis PLACE PROMOTION • Site Selection • Site Typing • Network Optimization • Market Holding Capacity • Channel Optimization • M & A Assessment • Messaging/Communication • Agency Collaboration • Media Mix • Ad Effectiveness

14. AGENDA • Overview of Nielsen • Overview of Segmentation • Segmentation in Action • Summary • Q & A

15. Who is Today’s Housewares Consumer?Distribution By PRIZM Segment Housewares Consumer

16. About PRIZM 4 – Young Digerati 21 – Gray Power 1- Upper Crust 57 - Old Milltowns 27 – Middleburg Managers 7 – Money & Brains

17. About Life Stage Groups

18. About Life Stage Groups Title of Presentation

19. Who is Today’s Housewares Consumer?Distribution By PRIZM Life Stage Group Housewares Consumer

20. Housewares Purchasers Vary by CategoryDistribution By PRIZM Life stage Group

21. CAPTURING OPPORTUNITY WITH ACTIONABLE RETAIL SOLUTIONS We help companies understand & find consumer who want to buy. PRODUCT CONSUMER GROUPS • New Product Design • Expected Buyer Analysis (New Products) • Share of Market/Wallet • Consumer Experience • Store Clustering PRICE PROMOTION PLACE

22. Hair Styling Appliance And Accessory ConsumersDistribution By PRIZM Life Stage Group Hair Styling & Accessory Consumers

23. Hair Styling Appliance And Accessory Consumers vs. ConairDistribution By PRIZM Life Stage Group Hair Styling Appliance & Accessory Consumers Conair Consumers

24. Hair Styling Appliance And Accessory Consumers vs. Private LabelDistribution By PRIZM Life Stage Group Hair Styling Appliance & Accessory Consumers Private Label Consumers

25. CAPTURING OPPORTUNITY WITH ACTIONABLE RETAIL SOLUTIONS We help companies understand & find consumer who want to buy. CONSUMER GROUPS PRICE PRODUCT PROMOTION • Messaging/Communication • Agency Collaboration • Media Mix • Ad Effectiveness PLACE

26. Total Coffee And Tea Maker ConsumersDistribution By PRIZM Life Stage Group Coffee & Tea Maker Consumers

27. Coffee & Tea Maker Consumers vs. Keurig ConsumersDistribution By PRIZM Life Stage Group Coffee & Tea Maker Consumers Keurig Consumers

28. Keurig ConsumersDistribution By PRIZM Segment Keurig Consumers

29. Second City Society 1.45M Households DEMOGRAPHIC SNAPSHOT • Age 45-64 • Second (small) city urbanicity, homeowners without kids • Mostly white collar employment • Upscale incomes with median of $82,500 • White, Black and Asian Mix • Graduate + education levels DESCRIPTION PSYCHOGRAPHICS The residents of these satellite cities tend to be prosperous professionals who decorate their homes with multiple computers, big screen TVs, and an impressive collection of wines. They tend to enjoy cultural activities, from reading books to attending theater and dance productions. • Will buy on credit rather than wait • Willing to pay more for top quality electronics • Many products don’t perform as well as ads claim • Buy based on quality, not price • Will pay more for a brand I trust MEDIA CONSUMPTION • Watch CNN, MSNBC, Bloomberg, HSN, golf & tennis events • Read Sunset, Coastal Living, Kiplinger’s, daily/weekend newspaper, Architectural Digest, Travel & Leisure, More & AARP • Listen to classical , jazz & news radio, THEIR LIVES • Love to vacation overseas in Spain, Portugal, Australia, Italy & go on cruises • Shop at Neiman Marcus, Saks Fifth Ave, Thomasville, Talbots, Ethan Allen, Crate & Barrel, Eddie Bauer & Bloomingdales • Order from Gevalia, Land’s End, LL Bean, Zappos & Orbitz • Belong to country clubs and enjoy golfing, sailing, bicycling and playing tennis

30. CAPTURING OPPORTUNITY WITH ACTIONABLE RETAIL SOLUTIONS We help companies understand & find consumer who want to buy. CONSUMER GROUPS PRICE PRODUCT PLACE • Site Selection • Site Typing • Network Optimization • Market Holding Capacity • Channel Optimization • M & A Assessment PROMOTION

31. Razor Trimmer Appliance & Accessory ConsumersDistribution By PRIZM Life Stage Group Razor Trimmer Appliance & Accessory Consumers

32. Razor Trimmer Appliance & Accessory Consumers vs. BraunDistribution By PRIZM Life Stage Group Razor Trimmer Appliance & Accessory Consumers Braun Consumers

33. Braun ConsumersNortheastern NJ by ZIP by Target Location (2.5 mile radius)

34. CAPTURING OPPORTUNITY WITH ACTIONABLE RETAIL SOLUTIONS We help companies understand & find consumer who want to buy. PRICE CONSUMER GROUPS • Category Analysis PRODUCT PROMOTION PLACE

35. AGENDA • Overview of Nielsen • Overview of Segmentation • Segmentation in Action • Summary • Q & A

36. _________ _______ _ ______ _______ ___ ___________ __ _________ ___________ ___ ____________ __ _____ _ ___________ ____________ _____ ____ ____ ____ ____ ___ ____ ____ ____ ____ ____ _____ ____ ____ ___ __________ ___ ____ ____ __ ________ __ ______ ___ ____ ___ ________ ___ ______ ___ ______ ___ ____ __ ___________ _____ ________ _________ __________ ___ ___ ________ ___ _________ ____ __ _____ _____ __ ___ __ __ _____ SUMMARY • Housewares attracts a diverse consumer base • Segmentation is innovation • Demographics are insufficient in today’s marketplace • Understanding geo-demographics, psychographics and lifestyles is critical to a company’s success • The better you know the consumer, the better the chance you have of influencing their purchase decisions • Identifying your best consumers and connecting with them on their terms is the key to growth

37. ROBUST INFORMATION, DEEPER INSIGHTS AND INNOVATIVE SOLUTIONS

38. Growing Sales Through Segmentation and Local Market Strategies Peter Greene SVP, Durables Strategies March 11, 2012 For More Information about PRIZM and please visit www.mybestsegments.com