Marketing Forecast from Ad-ology

Today’s parents have become more lenient when kids ask for extra money beyond an agreed allowance, according to the latest poll from Northwestern Mutual Foundation’s financial literacy site Themint.org. The poll results show that 63% of today’s kids 17 and younger are “always” given extra money when they asked for it, and 26% of children 17 and younger “sometimes” receive extra money when they ask. Overall, the most commonly selected reason why kids today ask for extra money is to buy tickets to a movie/concert/sporting event (40%), followed by food/drink (24%) or to buy a toy/game/phone (19%). These findings were especially evident in the 17 and younger group, where 58% of kids wanted extra money for tickets to a movie/concert/sporting event.

It’s not that consumers have closed the door on home improvement projects this year. But they have changed what they plan to spend money on. In large part, the spending is related to what they see as a depressed real estate market. Based on the latest findings from the American Express Spending & Saving Tracker, marketers of home improvement project materials can prepare campaigns to sell products that will be in demand this year.

Despite a late Easter this year, consumers’ eagerness to spend on décor, food and even new spring apparel is not expected to be adversely affected. According to NRF’s 2011 Consumer Intentions and Actions survey, the average consumer is expected to spend $131.04 on everything from candy to clothes – up from $118.60 in 2010, but not quite to pre-recession levels. Total spending on Easter related merchandise is expected to reach $14.6 billion. “Due to such a late holiday, Easter promotions will last all spring long,” said NRF President and CEO Matthew Shay. Many Americans will take advantage of retailers’ spring sales to buy new clothing for the entire family. Food and candy will account for most of a consumer’s budget, bringing in $2.1 billion in candy sales and $4.5 billion in food sales alone.

New research from Packaged Facts predicts that Hispanics will be responsible for more than half of the growth in the U.S. population between 2010 and 2015. As a result of above-average population growth and improved earning power over the past three decades, Latinos have been responsible for an ever-increasing share of consumer buying power in the U.S. Packaged Facts estimates that in 2009 Latinos accounted for more than 9% of total buying power, compared to less than 4% in 1980. By 2015, Packaged Facts forecasts the buying power of the Latino population as a whole will reach $1.3 trillion. Marketers must be aware of how increasing acculturation will affect the decisions of Latino shopping behaviors.

According to a recent study by Packaged Facts, changes in thinking about what it means to get old have occurred alongside a rising concern by Boomers about doing what it takes to improve their health and wellness. For that reason, marketers of consumer goods and services have made Healthy 50+ Consumers prime targets. The report defines “Healthy 50+ Consumers” as the 26 million Americans 50 years and over who are pursing a wellness regime that includes healthy eating and regular exercise activities such as fitness walking or swimming. Not only are Healthy 50+ Consumers more confident about the overall economy and their own financial futures, but they are also far more willing to pay a premium when purchasing “better-for-you” grocery products compared to their peers.

The federal menu labeling law, which restaurant chains with 20+ units are expected to implement in the latter half of 2012, will require chain restaurants to display calories for standard menu items, as well as calories for each serving of food at a salad bar or buffet line. New research by The NPD Group anticipates how consumers will react to seeing calories on the menus. In the short term, consumers may react to calorie labeling with some shift in foods/beverages ordered, but this behavior is expected to be temporary. “Operators may want to plan for some initial shift in product mix when the new menus are presented to consumers. Lower-calorie sides might be highlighted or promoted when the menu change is made, which could assist in keeping order sizes and check sizes up,” says Bonnie Riggs, NPD’s restaurant industry analyst and author of the report.