1998 Spring Issue

Throughout the 1990s, more people are increasing their participation in exercise, physical activities and sports. During the 1980s, exercise was about appearance and lifestyle. Now there is more focus on well-being. This trend is driven by aging Baby Boomers who are more interested in exercise for the long-term health benefits rather than the shorter-term physical attractiveness and muscle tone.

The number of U.S. millionaires is increasing at roughly 20 times the rate of the population as a whole. By year end 1996, there were more than 4.8 million households who net worth exceeded $1 million. This is an increase of 118% from 1992.

The affluent market, those with household income of at least $100,000 or minimum of $500,000 net worth, have more differences than traits in common. However, according to Conde Nast, they do share these core characteristics: 1) Have a middle-class sensibility 2) Are savvy, value-driven consumers 3) Are redefining the meaning of success 4) See financial stability 5) Activity maintain and preserve their youth 6) Use new technology to realize goals.

According to the Wall Street Journal, entertainment for most people has become a necessity of life. Therefore, it is no surprise that most media showed increases in 1997. The motion picture industry's box office revenues surpassed the $6 billion mark, a 9% increase over 1996's record year. Music industry unit sales increased by more than 6% during 1997 from 1996 figures. Televisions, VCRs and camcorders all had record sales in 1997. Retail sales of videogames (consoles and software) jumped to $5.5 billion in 1997 from $3.7 billion in 1996.

The fastest-growing websites visited during 1997 according to Media Metrix PC Meter are:

Almost a third of consumers (32%) with Internet access have purchased products or services online. However, only 4% make more than 10 purchases a year this way. Almost 64% with Internet access research products online and later buy them through traditional channels — this is double the percentage of consumers who research and buy the same products online. Ninety percent say their online research is valuable to future purchasing decisions.

Internet security is still the largest concern of prospective web purchasers. Almost 70% say they are uncomfortable using their credit card online. However satisfaction appears to increase with experience: 52% of current online shoppers say they are comfortable with the current payment security.

No longer are marketers targeting just cereal and toys to kids. Research shows that children are influencing more than 50% of personal computer purchases for the home, 75% of software and 80% of fruit snacks. Understanding kids' influence, Chevrolet is now advertising its Venture van in children's magazines.

Kids are also getting smarter at an earlier age. This revelation prompted Sega to change how it markets video games by offering more sampling. New values and interests are reflected in Mattel's decision to begin offering Barbie as a doctor in addition to the nurse version.

A truck dealership that sells mid-size to large trucks wanted to expand its market share within an eight-county region. The company's advertising agency contracted with Saurage-Thibodeaux Research (STR) to explore ways to reach this goal.

STR designed a research plan to gain valuable data from current and potential customers as well as the dealership's employees. Using focus groups, in-depth interviews and telephone surveys, STR revealed just how the dealership could capture a larger share of the market.

The research data gave the advertising agency guidance in creating a memorable, dramatic logo for use throughout the company's promotional materials. The agency also used this data to redirect the dealership's marketing budget toward producing well-attended promotional events and a highly successful direct mail campaign. Research findings prompted several sweeping internal changes. These included adding a new line of trucks, expanding the leasing and outside sales programs, revamping the parts department, extending service hours and redesigning the dealership property for greater recognition and curb-side appeal.

These changes yielded dramatic results. Revenues increased from $1.5 million in 1993 to over $20 million in 1997 so that this company now stands head to head with the largest nationally-based competitor in the region.

The strategy of using solid research to guide decisions about internal operations and promotional campaigns has transformed this dealership into a highly proactive competitor and extremely profitable business.

• The population of the U.S. as of January 1, 1998 was 268,921,733. This is a 0.9% increase over the prior year.
• Television viewers voted these stations as having the highest caliber programming: Discovery Channel (85%), A&E (78%), CNN (74%), The Weather Channel (72%), The Learning Channel (71%).
• Thirty-four percent of all Americans bought their pet a gift this past holiday season.
• About 50% of American elementary school students say they feel safe going to and being at school; 28% feel safe sometimes and 19% say they hardly ever feel completely safe.
• Believability in the claims of advertising has dropped from 61% to 38% over the past 10 years.
• Individuals dining out at a restaurant eat faster when faster background music is played. People chew an average of 4.4 bites a minute to fast music, but only 3.8 bites a minute when the music is slower.
• For adults, the top leisure activity in 1997 was reading. This pastime was listed as number one by 28% of all adults (15% of men and 41% of women). Watching television (19% of adults) is second in line (19% of women and 20% of men).
• Look for McDonald's to reprise the Teenie Beanie Babies toy promotion that was so successful last spring — a five-week promotion plan had to be stopped because they had already distributed supplies (all 100 million) of the toys after only two weeks.
• Sales of domestic water in small bottles (single-serving and 1.5 liter bottles) jumped from 4.4 million gallons in 1984 to 750 million in 1997. This growth has come mainly at the expense of diet soda.
• Research suggests that appetite increases when humans are deprived of sleep. Some think this may help explain why so many Americans are obese. Thirty-five years ago, we slept eight to nine hours a night; today we sleep only seven or eight hours.
• Americans' preferred cuisines have changed over the last 20 years from American and Italian to include Chinese (up 12 points to 54%) and Mexican/Tex-Mex (up 16 percentage points to 50%). One-half or more say they enjoy each of these four types of foods. However, American food still tops the list.
• Households headed by those age 45-54 years spend the most eating out. In 1995 these households spent an average $2,245.
• Over a third of all American adults (37%) approve banning beer ads on television; among parents this number rises to 43%. Fifty-two percent of parents would like all liquor ads banned from all media.
• According to Purdue University, children raised in highly noisy or chaotic homes experience less cognitive growth, have delayed language skills and have increased anxiety.
• In the past four years, the number of female reporters on the 10 most visible news beats on the top three networks' nightly newscasts dropped from three to zero. There has been, however, a significant increase in women at the mid-tier levels in nightly news broadcasting.
• Only 25% of supermarket shoppers notice point-of-sale promotions on product packaging. Of those who do notice, only two in five will purchase the product.
• Saturday is the most popular day of the week for shoplifting — this is when 18% of all store thefts occur. In 1996, employees stole $16.8 million; shoplifters stole $15.7 million.