Smartphones to Overtake Feature Phones in U.S. by 2011

The iPhone, Blackberry, Droid and smartphones in general dominate the buzz in the mobile market, but only 21% of American wireless subscribers are using a smartphone as of the fourth quarter 2009 compared to 19% in Q3 2009 and 14% at the end of 2008. We are just at the beginning of a new wireless era where smartphones will become the standard device consumers will use to connect to friends, the internet and the world at large. The share of smartphones as a proportion of overall device sales has increased to 29% for phone purchasers in the last six months and 45% of respondents to a Nielsen survey indicated that their next device will be a smartphone. If we combine these intentional data points with falling prices and increasing capabilities of these devices along with a explosion of applications for devices, we are seeing the beginning of a groundswell. This increase will be so rapid, that by the end of 2011, Nielsen expects more smartphones in the U.S. market than feature phones.


http://blog.nielsen.com
Roger Entner, Senior Vice President, Research and Insights, Telecom Practice

The iPhone, Blackberry, Droid and smartphones in general dominate the buzz in the mobile market, but only 21% of American wireless subscribers are using a smartphone as of the fourth quarter 2009 compared to 19% in Q3 2009 and 14% at the end of 2008. We are just at the beginning of a new wireless era where smartphones will become the standard device consumers will use to connect to  friends, the internet and the world at large. The share of smartphones as a proportion of overall device sales has increased to 29% for phone purchasers in the last six months and 45% of respondents to a Nielsen survey indicated that their next device will be a smartphone. If we combine these intentional data points with falling prices and increasing capabilities of these devices along with a explosion of applications for devices, we are seeing the beginning of a groundswell. This increase will be so rapid, that by the end of 2011, Nielsen expects more smartphones in the U.S. market than feature phones.

us-smartphone-growth

The Smartphone User
Slightly more males than females are getting smartphones (53% versus 47%) which is what we would expect for technical early adopter products. In terms of demographics, Hispanic Americans and Asians are slightly more likely to have a smartphone than what their share of population would indicate, which is a trend we see in the adoption of other mobile data services. While smartphones started out in the business segment, two-third of today’s buyers of smartphones are personal users. Continuar leyendo «Smartphones to Overtake Feature Phones in U.S. by 2011»

Can Neuromarketing Research Increase Sales?

By monitoring brainwave activity across the full brain as subjects viewed the covers, and using eye-tracking technology to identify which specific parts of the cover they were looking at, NeuroFocus was able to measure their immediate, subconscious reaction to the designs.

While all three tested cover designs performed well in the research, the specific design that ranked highest in terms of overall neurological effectiveness scored exceptionally well in emotional engagement—one of NeuroFocus’ primary NeuroMetrics, the others being attention and memory retention (cover design 1 below was the winner). From those primary NeuroMetrics, NeuroFocus derives measures of purchase intent, novelty, and awareness.


Dr. A. K. Pradeep, Chief Executive Officer of NeuroFocus

Every new product launch, ad campaign or package design takes significant research, time and resources to ensure success, but not every launch is successful. Suffice it to say that guess work plays a part to determine: Will it grab attention? Will it be memorable? Will it engage emotionally? And most importantly, will it drive purchase intent?

Taking the guess work out of the equation prior to launch is a marketer’s dream, which is now a definable reality with quantifiable results. Just recently the notion was put to the test to see if neuroscience could be used to help a magazine sell more copies. And the results were enlightening. Continuar leyendo «Can Neuromarketing Research Increase Sales?»

Global Health & Beauty Trends

Region Round-Up
In almost all Latin American countries included in this survey, sales for personal care products reported volume increases during the latest rolling year ending June 2010 versus year ago: Chile +7.2%, Argentina +4.7%, Brazil +3.4%, Mexico +3.4% and Colombia +3.3%. Only Venezuela showed a negative trend, declining 2.5%.

In the U.S., dollar growth for the health and beauty department for the year ending July 2010 is flat (0.3%) and units have declined 2% as the economy is driving consumers to make tradeoffs and buy less. However, sales in the June and July 2010 period are improving as retailers are raising prices to enhance margins. In Canada, rising prices have fueled an increase in health and beauty (excluding baby and OTC) dollar sales of 3.2%, which outpaced the total market (+2.6%) while units were flat.

In Asia, consumers started to switch back into purchasing personal care, healthy and more premium products in the second half of 2009. This trend is expected to continue with the improving consumer confidence in the region.

The never-ending quest for beauty and perfection bodes well for the H&B sector. In countries that have emerged from the recession with vigor, the sector is likely to thrive. Meanwhile, in those regions where the recovery is still shaky—or in doubt altogether—health and beauty product manufacturers and retailers need to know exactly what’s important to those consumers: value for money and high quality products that enable them to look good, despite life’s pressures.

Note about online survey methodology
While online survey methodology allows for tremendous scale and global reach, it provides the perspectives on the habits of existing Internet users, not total populations. Where noted, the Nielsen Global Online Survey data is supplemented with consumption data by market.


Beauty on a Budget
With consumers around the world cutting back on discretionary expenses during the recession, Nielsen probed consumers’ attitudes towards health and beauty (H&B) products—where they purchased them and what factors went into their buying decisions—as part of its Global Online Survey of more than 27,000 people across 55 countries in the first quarter of 2010. And while views and habits differ by region, there’s one thing in common: people continue to place importance on looking good and feeling their best.

Universal Appeal
Virtually all online survey respondents in Latin America (96%) and Asia Pacific (92%) said they purchased H&B products, along with 90% of people around the world who made up the global average. But what prompts consumers to stock their cabinets with make-up, fragrances and personal care items?

For 44% of global respondents, it was the lure of the product’s promise. A pragmatic 69% of respondents said they were influenced by price, while 58% said they bought as a result of a personal recommendation. Magazine articles, Internet buzz and traditional ads all factored into the purchase equation as well. Continuar leyendo «Global Health & Beauty Trends»

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