Marketing Forecast from Ad-ology

The U.S. pet market continues to grow, even in these challenging times. According to the American Pet Products Association (APPA), U.S. spending on pets is projected to reach nearly $48 billion in 2010. The breakdown for projected spending in 2010 is as follows: food, $18.28 billion; supplies/OTC medicine, $11.01 billion; vet care $12.79 billion; live animal purchases $2.21 billion; pet services. It’s a fact, consumers love their pets and never want them to be without the best. The pet aisle reflects this trend with new, innovative products hitting the shelves everyday.

Last month I mentioned the growing trend of marketers who are extending the spring cleaning season into the late summer when consumers may be closing up their summer homes or dropping kids at college with a full bag of dorm-cleaning supplies. But who knew that over 50% of men regularly undertake spring cleaning? That’s just one of the findings of the 2010 National Spring Cleaning Survey conducted by the Soap and Detergent Association and it bodes well for marketers.

According to a new report by The NPD Group, Apple owners, (82%), consumers with $100,000 or greater income (80%), and 18-34 year olds (78%) are the demographic groups with the most interest in buying an iPad. One of the main reasons Apple owners are interested in the iPad is because it’s an Apple product. Thirty-seven percent cited “liking the Apple brand” as a top reason for their interest in the iPad. That tied with “multi-touch screen”, which was also the number one reason driving interest among 18-34 year olds. The 18-34 year old consumer is also the most likely to play music and access the internet on the iPad.

According to a new survey, consumers are willing to pay for good customer service. A new survey, The Value of Great Customer Service, commissioned by StellaService suggests that customers are willing to pay a premium of approximately 10.7% for excellent online customer service, or as much as $17.3 billion in 2010. Furthermore, consumers in the online retail category are willing to pay an even higher premium for great service (10.7%) than they would in most other categories. Due to the seemingly distant and remote nature of online shopping, it makes sense that consumers would pay a higher premium to have the comfort and peace of mind that they will be taken care of in the case of a serious question, concern or problem.

While the economy is improving, the unemployment rate continues to exceed 9.5% and some experts predict that a healthy employment market may be 4 to 5 year away. News reports like this encourage consumers to continue looking for ways to save money. It’s all about the new thriftiness that many shoppers have embraced. And this thriftiness has led to higher rates of coupon use according to the 2020 NCH Coupon Fact Report, published by Valassis.

Consumers have long used multiple channels to research and purchase products. In many ways, the Internet has improved consumers’ ability to find what they are looking for but they continue to turn to traditional resources such as catalogs. And while catalogs still matter, they are becoming more of a research than purchase tool these days.