Marketing to Kids - US - November 2010

SCOPE AND THEMES
What you need to know
Definition
Data sources
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Snapshot of kids 6-11 years in America
Spending money and household responsibilities
Influencing factors
Daily media use averages more than seven and a half hours a day
Childhood obesity weighs on the nation
Parents spend on kids to ease the pain of the recession
Trends and observations to draw on
Kids’ activities and free time hobbies
Kids’ computer and internet use
Game on for everyone
Personal electronics
MP3 players and iPods
Cell phones
Eating healthy in school … indulging after
Older girls feeling fashionable, but don’t like their style
Jeans and sneakers worn by (almost) all
Older kids don’t want “kiddy” personal care products
Free toys and gifts desired in cereal and restaurant promotions
Other important attitudes
Parents are primary information source for kids 6-8; older kids look further
“Green” beliefs more likely to be held by girls
Hard work and education for all; older boys desire fame and fortune
INSIGHTS AND OPPORTUNITIES
Trends to shape marketing strategies
A taste for healthier fare
Interest in e-books
A computer for the kids
Connecting with kids beyond the tube
Nine is more than a number
Go “green” with girls
Go “greenbacks” with boys 9-11
Leveraging kids shows with parents
INSPIRE INSIGHTS
Trend: Learning Through Play
DEMOGRAPHICS AND DRIVERS OF THE KID MARKET
Key points
Growth in number of 6-11-year-olds
Figure 1: Population, by age, 2005-15
Hispanics to account for one quarter of kids 6-11 by 2015
Figure 2: Population of 6-11 year-olds, by race/Hispanic origin, 2005-15
Figure 3: Population of 6-11 year-olds compared to total, by race/Hispanic origin, 2005-15
Television is the center of the universe
Figure 4: Kids 8-14 years old average daily use of media, by age group, October 2008-May 2009
Obesity concerns and a possible shift in eating habits
Figure 5: Prevalence of high BMI in U.S. 6 to 11-year-olds, by race and gender, 2007-08
Poor diet
Lack of exercise
Environment
Recession doesn’t stall parents’ spending on entertainment for kids
Kids: the 800-pound gorilla in the house
MARKETING STRATEGIES FOR REACHING KIDS
Key points
Brand and merchandising strategies
In-store merchandising and strategies
Character merchandising
Kmart’s layaway success
Partnerships and co-branding
Online initiatives
TV commercials
Be a hero with Toy Story 3
Figure 6: Lego Toy Story, Television Commercial, 2010
McDonald’s offers an Elysian escape for young girls
Figure 7: McDonald’s and Strawberry Shortcake, Television Commercial, 2010
Fame and glory with Guitar Hero
Figure 8: Guitar Hero: Warriors of Rock, Television Commercial, 2010
Honey Nut Cheerios and the pulse of the moment
Figure 9: Honey Nut Cheerios, Activision Television Commercial, 2010
LEADING COMPANY—DISNEY IN-DEPTH
Key points
Toy Story 3 a smashing success
Disney.com is at the center
Social marketing with Disney
Other technology, online and social media initiatives
iPad apps
iBooks and ebooks
Online games
Facebook as a sales platform
Reinventing the Disney Store
Phineas and Ferb is a crossover hit
Noteworthy initiatives
Getting Kids to Make Healthier Choices
Charitable donations
INNOVATIONS AND INNOVATORS
Technology and toys
American Doll goes philanthropic
Pajama parties at Souplantation and Sweet Tomatoes
Healthy snacks and character merchandising
Personal care
Exotic and all-natural ingredients in healthcare
SPENDING MONEY AND HOUSEHOLD RESPONSIBILITIES
Key points
Household chores and allowance are top ways kids get spending money
Figure 10: Spending money sources, by gender and age, August 2010
Gender and age factors in how money is earned and household chores
Figure 11: Way of receiving money, and average earnings, by gender and age, April 2009-June 2010
Figure 12: Household chores, by gender and age, April 2009-June 2010
Kids buy toys, candy/gum, and video games with their allowance
Figure 13: How allowance is spent, by gender and age, April 2009-June 2010
KIDS’ ACTIVITIES AND FREE TIME HOBBIES
Key points
Boys more likely to play outside with friends; older kids more self-sufficient
Figure 14: Typical types of play, by gender and age, August 2010
Kids like spending time with family, playing sports, and computer time
Figure 15: attitudes to free time and activities enjoyed, by gender and age, April 2009-June 2010
Bicycling and swimming are top sporting activities
Figure 16: Sports played in the last year, by gender and age, April 2009-June 2010
Kids read books for fun; girls drawn to arts, older girls learn their lessons
Figure 17: Other activities and hobbies, by gender and age, April 2009-June 2010
KIDS’ COMPUTER AND INTERNET USE
Key points
Work and play on the home computer
Figure 18: Computer access and home computer usage, by gender and age, April 2009-June 2010
Playing games, watching videos, and more
Figure 19: Online activities in past month, by gender and age, April 2009-June 2010
Older girls more likely to visit a variety of websites
Figure 20: Websites visited/search engines used in past month, by gender and age, April 2009-June 2010
KIDS’ OWNERSHIP AND USE OF VIDEO GAME SYSTEMS
Key points
Nintendo Wii replaces DS and PS2 as top system
Figure 21: Video game system owned or played, May 2006-June 2010
Older boys drive the video gaming market
Figure 22: Video game system owned or played, by gender and age, April 2009-June 2010
KIDS’ OWNERSHIP AND USE OF PERSONAL ELECTRONICS
Key points
Older kids own more electronics
Figure 23: Electronic equipment owned, by gender and age, April 2009-June 2010
Almost half of kids 6-11 own an MP3 player
Figure 24: MP3 or digital media player owned, by gender and age, May 2006-June 2010
Cell phone ownership and nature of usage
Figure 25: Cellular/wireless phone ownership, by gender and age, April 2007-June 2010
Talking, texting, picture messaging three most popular uses
Figure 26: Cellular/wireless phone features used, by gender, by age, by gender and ages 9-11, April 2009-June 2010
WHAT, WHERE AND HOW KIDS EAT
Key points
Girls eating healthier fare at school
Figure 27: School lunch food and drink, by gender and age, August 2010
Schools cut back on soft drinks in vending machines
Figure 28: Items sold in school vending machines, May 2004– June 2010
Fast-food beats family-style when going out to eat
Figure 29: Restaurant usage, by gender and age, April 2009-June 2010
Older girls more likely to visit a variety of restaurants
Figure 30: Fast food or drive-in restaurants visited in the last month, by gender and age, April 2009-June 2010
Older kids—particularly girls—watching their weight
Figure 31: Diet/light products usage, by gender and age, April 2009-June 2010
KIDS AND SHOPPING
Key points
Grocery shopping is common, but girls go more often
Figure 32: Frequency of going to the grocery store, by gender and age, April 2009-June 2010
Past-month store visits reflect gender and age interests
Figure 33: Stores visited in the last month, by gender and age, April 2009-June 2010
Music purchases trending away from discount, going more online
Figure 34: Where music (CDs/DVDs) purchased in the last year, May 2004-June 2010
Online music purchase trend driven by boys
Figure 35: Where music (CDs/DVDs) purchased in the last year, by gender and age, April 2009-June 2010
KIDS’ STYLE/CLOTHING CHOICES
Key points
Older girls feeling fashionable…but are less happy with what they see
Figure 36: Fashion perceptions, by gender and age, April 2009-June 2010
Nearly half of kids 6-11 own Old Navy and Levi’s jeans
Figure 37: Brands of jeans owned, by gender and age, April 2009-June 2010
Nike dominates sneaker field among boys
Figure 38: Brands of sneakers owned, by gender and age, April 2009-June 2010
Boys own licensed sports clothing, NFL is most popular
Figure 39: Licensed sports clothing owned, by gender and age, April 2009-June 2010
KIDS AND PERSONAL CARE ITEMS
Key points
More than half of kids 9-11 want regular products instead of kids’ versions
Figure 40: Overall interest in regular personal care products vs. those for kids, by gender and age, August 2010
Kids’ versions of personal care products used most by girls 6-8
Figure 41: Use of kids’ versions of personal care products, by gender and age, August 2010
Kids pick their own toothbrushes and toothpaste
Figure 42: Who chooses what to buy, kid or adult, kids personal care items, August 2010
WHAT KIDS WANT IN PROMOTIONAL GIVEAWAYS
Key points
Kids want free toys and gifts with their breakfast cereal
Figure 43: Interest in promotional items with breakfast cereal, by gender and age, August 2010
Kids want free toys and gifts from restaurants, too
Figure 44: Interest in restaurant promotional items, by gender and age, August 2010
LEADERS AND FOLLOWERS – WHO GETS WHAT FIRST?
Key points
More kids say they get toys and games around the same time as friends
Figure 45: Who sets the trends? Getting toys or other items before or after friends, August 2010
Girls ahead of boys when it comes to fashion and new trends
Figure 46: Who sets the trends? Getting toys or other items before or after friends, boys, August 2010
Figure 47: Who sets the trends? Getting toys or other items before or after friends, girls, August 2010
KIDS’ INFORMATION SOURCES TO LEARN ABOUT NEW THINGS
Key points
Kids 6-8 turn to parents, kids 9-11 go to multiple sources
Girls scout for information in a bigger world
Figure 48: Sources of information for new things, by gender and age, August 2010
“GREEN” BELIEFS AND ASPIRATIONS
Key points
Kids think everyone should recycle, but girls are “greener” than boys
Figure 49: Kids’ environmental attitudes, by gender and age, April 2009-June 2010
Kids think it’s important to work hard at school and want to go to college
Figure 50: Kids’ values and perceptions of self, by gender and age, April 2009-June 2010
IMPACT OF RACE/HISPANIC ORIGIN
Key points
Kids who are white are most likely to play a variety of sports
Figure 51: Sports played in the last year, by race/Hispanic origin, April 2009-June 2010
Asian kids spend the most time on computers
Figure 52: Amount of time spent on internet per week (non-email), by race/Hispanic origin, April 2009-June 2010
Wearing cool clothes/looking cool is more important to kids who are black
Figure 53: Fashions perceptions by race/Hispanic origin, April 2009-June 2010
Kids who are black are more likely to shop around at multiple retailers
Figure 54: Stores visited in the last month, by race/Hispanic origin, April 2009-June 2010
Asian kids are more likely to have “green” opinions
Figure 55: Kids’ environmental attitudes, by race/Hispanic origin, April 2009-June 2010
CLUSTER ANALYSIS
Testing Wings
Demographics
Characteristics
Opportunity
In-the-Nesters
Demographics
Characteristics
Opportunity
Ready-to-Flyers
Demographics
Characteristics
Opportunity
Cluster characteristics
Figure 56: Marketing to kids clusters, August 2010
Figure 57: Sources of information for new things, by marketing to kids clusters, August 2010
Figure 58: Typical types of play, by marketing to kids clusters, August 2010
Figure 59: Spending money sources, by marketing to kids clusters, August 2010
Cluster demographics
Figure 60: Marketing to Kids clusters, by gender and age, August 2010
Cluster methodology
APPENDIX: OTHER USEFUL TABLES
The population of white kids 6-11 set to grow 9% from 2005-15
Figure 61: U.S. white population, by age, 2005-15
Hispanic population of kids 6-11 set to grow 40% from 2005-15
Figure 62: U.S. Hispanic population, by age, 2005-15
The population of black kids 6-11 set to grow 0.7% from 2005-15
Figure 63: U.S, black population, by age, 2005-15
The total population of Asian kids 6-11 set to grow 32% from 2005-15
Figure 64: U.S. Asian population by age, 2005-15
OTHER CONSUMER TABLES
Boys play sports, girls more likely to go to scouts, dance, and cheer
Figure 65: Afterschool activities engaged in, by gender and age, August 2010
Boys 9-11 eat meals with family outside the home more often than others
Figure 66: How often meals are eaten outside of home, by gender and age, August 2010