Marketing Forecast from Ad-ology

Amid the dark cloud of high unemployment, home foreclosures and the global credit crisis, a transformation has taken shape: the modern consumer has undergone a makeover of sorts and adapted to the new economy. Cutbacks on travel and dining out have driven a growing number of consumers to reinvest in their homes to make it a more welcoming and inviting space. Sales of private-label personal care products have also surged. In addition, consumers have grown increasingly aware of and concerned about the environmental and sustainability practices of their favorite brands. As consumers evolve, product marketers must keep a finger on the pulse of what’s driving consumer behavior in order to rise above growing competition.

Women control $4.3 trillion, or approximately 73%, of U.S. household spending while juggling work, home and family life. Approximately 40% of women shop online during work hours, saying it’s because they have more downtime at work than they do at home. Clothing is the number one purchase choice for women online, with books and movies in second place. Following these categories, women enjoy spending nearly equal amounts on electronics, shoes and travel. 60% of women respond to email offers, making it the most influential driver of purchase – in fact, 3 out of 4 women subscribe to email alerts.

The nearly $80 billion off-premise alcoholic beverage market has grown 21% since 2004 as more consumers cut back on eating out in light of trying economic times, according to research by Mintel. Among alcohol drinkers, 90% consume alcoholic beverages at home, compared to 77% who drink outside the home. Drinkers are also cutting back in terms of the alcohol they’re purchasing for at-home consumption – 28% of respondents who drink alcoholic beverages at home have traded down to less expensive brands than last year to save money. While beer enjoys the largest share of market sales (48%), wine is the most popular alcoholic beverage consumed off-premise, with 67% of those who drink alcohol at home indulging in a glass.

The credit card industry is recovering from serious challenges encountered in the past few years. Too many consumers loaded up on debt before the recession and many are now either working out payment plans or they filed for bankruptcy and need a fresh financial start. At the same time, the federal government passed sweeping financial reforms designed to prevent credit card companies and consumers from contributing to another economic bubble. These factors mean credit card companies will be marketing to key demographic groups to find new customers.

In a time when many people feel increasingly distant from the means of production for what they eat, artisan foods carry inherent value by granting consumers an opportunity to know where their food comes from, to see the hands that made it and to understand how it is made. Powering this artisan food trend are several important drivers that revolve around local and seasonal eating, a love of handmade and authentic food, a quest for exciting new flavors, a desire to engage with food and producers, and eco-consciousness, according to a new report from the Center for Culinary Development (CCD) and Packaged Facts. “Consumers, manufacturers, and restaurant operators all recognize that artisan is synonymous with quality when it comes to ingredients and preparation,” says Kimberly Egan, CEO of CCD. “The appeal lies in the stories that connect products to consumers which in turn offer deeper meaning and connects to personal values.”

Two in three Baby Boomer women (65%) prefer to purchase apparel online because they dislike the service they receive in department stores and 13% only buy their clothes online in order to avoid the in-person hassle, according to Vibrant Nation. More than eight in 10 (84%) find sales staff are indifferent, inexperienced, invisible, and “outright rude.” An additional 32% claim an “age bias,” pointing out that younger sales associates ignore older consumers.