trend id DECONSTRUCTING CATEGORY GROWTH POTENTIAL THE HARTMAN GROUP
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1 THE HARTMAN GROUP
2 Trends some scoff, some worship, but everybody watches them to some extent with curiosity, concern and even fear. No one wants to be left behind and, certainly, not behind the competition. The Hartman Group is offering measurable and informed assurance. Trend id is The Hartman Group s proprietary method of deconstructing category growth down to implicit and explicit product attributes driving upward movement. It is a forward leaning (3-5 years) investigation that will ensure your pipeline is full of the right products and positioning, and that product line adjustments move the needle. Like other trend identifiers we rely on sales data and UPC-level information to tag trending attributes. However, our approach is unique in several ways: We capture critical upmarket, not mass-market trends. SPINS natural channel data is the foundation of Trend id. The natural channel is the testing ground for unique niche products that tend to be years ahead of the curve so we truly capture emergent trends, and not what s already mainstreaming. This channel is typically free of heavy promotions so the sales data truly reflects the power of trending product attributes, not the result of aggressive promotional/marketing initiatives. We eliminate the noise. Decades of studying food culture allows us to filter the irrelevant from the essential. We know which explicit product attributes to tag (e.g., grams of protein) and which to ignore (e.g., carrageenan) and the result is meaningful clusters of trending attributes to guide innovation. We bring the consumer into the equation. Trend id analyzes the implicit attributes that consumers impute on products. The Hartman Group s unparalleled ethnographic expertise and deep well of consumer insights is layered into the analysis. Regardless of objective explicit attributes, consumers view products with their own subjective realities. Trend id reveals these hidden perceptions and motivations in its trend clusters. We provide clear and actionable direction. The Trend id scorecard deliverable provides a quantitative ranking of attribute clusters. We take the guess work out of how to prioritize and move toward innovation. Sit back, relax, select your categories, and we ll do the rest. Leave the worry and the guess work to the competition. Contact Shelley Balanko, SVP, Business Development for more information. Shelley@hartman-group.com, x. 103.
3 Overview Single Category Deep Dive 1. Random Sampling of UPCs in target category (select your category from the list of categories see Appendix A) 2. Tagging UPCs across all culturally relevant attributes adding cultural metadata to POS data, using proprietary Hartman category attribute libraries 3. Surfacing of Growth Attributes Statistical regression tools applied to filter out the white noise of market performance by looking at attributes correlated to sustained growth at the UPC level 4. Creation of Relevant Attribute Clusters Validated growth attributes clustered according to key consumer benefit areas (mainstream and emerging), using The Hartman Group s ethnographic research archives and intellectual property 5. Prioritizing Attribute Clusters Clusters ranked according to proprietary Hartman scorecard that utilizes POS conventional channel data and ethnographic analysis to assess the relative mainstreamability of attributes in the cluster Trend id Deliverable Trend id is designed to surface new, mainstreamable product attributes and laddered consumer benefits that are driving successful market disruption at the market extremes. The deliverable will help CPG innovators use these attributes to distinguish the behaviorally scalable from the merely new in food culture. A custom report with succinct description of growth attributes for the category (including product examples) Description of validated growth attributes surfaced in the category Examples of products exhibiting growth attributes Custom attribute growth clusters described and supported with ethnographic consumer insights Each cluster supported with Hartman insights according to key consumer benefit areas (both mainstream and emerging) Example products within clusters Attribute clusters scorecard (see example scorecard next page) Clusters ranked according to proprietary scorecard, using: Point Of Sale (POS) conventional channel data and ethnographic analysis to assess the relative mainstreamability of attributes in cluster Attribute libraries, statistical methods, supporting consumer insights and scorecard metrics are proprietary to The Hartman Group.
4 Example Scorecard Contact For more information and to schedule a Trend id deep dive for your categories, please contact: Shelley Balanko, Ph.D. Senior Vice President , ext. 103 shelley@hartman-group.com The Hartman Group 3150 Richards Road, ste. 200 Bellevue, Washington
5 Appendix I: Category Listing Baby Food (Frozen/Non- Frozen) Baby Formula/ Electrolytes Bakery Snacks Baking Mixes Barbeque Sauce Bottled/Canned Juices Bread & Rolls, Muffins Breakfast Food (dried, instant, RTD) Breakfast Meats Carbonated Beverages Chocolate Candy Coffee Cold Cereal Cookies Cooking Sauces Crackers Dinner Sausage/ Frankfurters Dried Meat Snacks Drink Mixes Dry Fruit Snacks Dry Packaged Dinner Mixes Energy Drinks Frozen Appetizers/ Snack Rolls Frozen Breakfast Food Frozen Dinner/Entrees/ Pot Pies Frozen Fruit Frozen Pies Frozen Pizza Frozen Side Dishes Hot Cereal Ice Cream/Sherbet/ Frozen Novelties Miscellaneous Snacks Pastry/Doughnuts Pies & Cakes Pizza Sauce Refrigerated Dips Refrigerated Dough Refrigerated Entrees Refrigerated Juices & Drinks Refrigerated Lunch Kits Refrigerated Meat Alternatives Refrigerated Pasta Refrigerated Pizza Refrigerated Side Dishes Salad Dressing Salty Snacks Shelf Stable Dinners Shelf Stable Dips/Dip Mixes Snack Bars/Granola Bars Snack Nuts/Seeds/Corn Nuts Soup Spaghetti/Italian Sauce Spices/Seasonings Sports Drinks Tea - Bags/Loose Tea/Coffee RTD Wine Yogurt
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