1. Deep view and reach into
76% of American households
Discovering The Pivotal
Point Consumer™
A Milestone Study on American Shoppers
Who Drive CPG Brand Volume
© Pointer Media Network. 2008. All Rights Reserved.

2. About The Study
• Groundbreaking study about today’s surprisingly
small consumer concentrations for CPG brands
• Unprecedented in its scope and granularity:
Tracks purchases of 54 million American
shoppers across 12 months and 1,364 brands
• Debuts the Pivotal Point Consumer™, the buyers
who drive 80% of brand volume
• Analyzes established brands, new products,
brand extensions and emerging preference
categories, e.g. organic, green, heart healthy, etc.
© Pointer Media Network. 2008. All Rights Reserved. 2

3. Study Partners
Pointer Media Network is the world’s largest and most
precise addressable media network.
• Tracks purchases of an estimated 76% of American households
• Reaches 140 million shopper IDs
• Delivers compelling ads and offers based on actual purchases
• Powered by Catalina Marketing, global leader in behavioral
marketing
The CMO Council is the world’s leading peer-powered
network of corporate marketing executives
• Drives thought leadership around issues critical to marketing
executives
• 3,500 members globally control over $100 billion in annual
marketing spend
© Pointer Media Network. 2008. All Rights Reserved. 3

4. Why This Study Is Important
Until now, lack of census level data hid truth about
1 Pivotal Point Consumer
Reality of small consumer penetrations surprises
2 even senior CPG executives
Requires new strategies from brand managers,
3 advertisers & media planners
• Mandate for precision marketing
• Need to understand and engage Pivotal
Point Consumer
© Pointer Media Network. 2008. All Rights Reserved. 4

5. Findings At A Glance
• Age of fragmentation and targeted brands reducing size
of consumer concentrations
• Only 2.5% of shoppers account for 80% of average CPG
brand’s volume
• Only 25 of 1364 brands studied had a Pivotal Point
Consumer™ base over 10% of shoppers
• New brands and brand extension have even smaller
penetrations
• Pivotal Point Consumers have high per
capita value for CPG brands
• But they do not fit neatly into demographic
targets
© Pointer Media Network. 2008. All Rights Reserved. 5

6. The Age of Fragmentation:
What Mass Market?
• Consumers empowered by unprecedented
choice in product and media selection
• CPG manufacturers addressing more granular
consumer preferences and needs with
thousands of new brands and brand
extensions
• More than 25,000 CPG products debuted in
2007; 10 times the number in 1980
• Average household receives over 100
television channels, while spending more time
on the Internet
• Identifying and reaching your consumer more
challenging then ever before
© Pointer Media Network. 2008. All Rights Reserved. 6

7. New Products Rely On
Smaller Concentrations
Among nine of the products
IRI identified as 2007 new
product Pacesetters, only
one had a Pivotal Point
Consumer™ base of more
than 3%¹
© Pointer Media Network. 2008. All Rights Reserved. ¹ Nine of the ten IRI Pacesetters were studied 7

8. Line Extensions vs. Master Brand
Concentrations – Coca-Cola
Coca-Cola® label brands
have a combined Pivotal
Point Consumer™ base of
18.8%, but among sub-
brands only Coca-Cola®
Classic has a base of
more than 10%
© Pointer Media Network. 2008. All Rights Reserved. 8

9. Line Extensions vs. Master Brand
Concentrations – Tide
Tide® label brands have a
combined Pivotal Point
Consumer™ base of
12.2%, but sub-brands all
have a base under 2.5%
© Pointer Media Network. 2008. All Rights Reserved. 9

10. Emerging Categories – Green Products
As a niche segment, Green
product brands depend on
a smaller Pivotal Point
Consumer™ concentration
© Pointer Media Network. 2008. All Rights Reserved. 10

11. Emerging Categories – Heart Healthy
Heart Healthy orange juice
brands underscore the
smaller penetrations
in emerging preference
categories.
© Pointer Media Network. 2008. All Rights Reserved. 11

12. Valuing The Pivotal Point Consumer™
Pivotal Point Consumers
frequently have a high per
capita value to brands,
highlighting the need to
understand and reach them.
© Pointer Media Network. 2008. All Rights Reserved. 12

13. Pivotal Point Consumers
Are Hard To Reach
Preliminary research by
Pointer Media Network
indicates that traditional
demographic targeting
misses as much as 76% of
Pivotal Point Consumers
© Pointer Media Network. 2008. All Rights Reserved. 13

14. Conclusion – Precision and Personalization
Are Key
• Today, all CPG brands are targeted
• The transition from mass to micro-markets
is well underway
• Marketers must respond with greater
precision and personalization in order to
reach the right consumers
• Targeted brand messaging and
addressable media will be critical reaching
the right consumers
© Pointer Media Network. 2008. All Rights Reserved. 14