Spots N Dots
The Daily News Of TV Sales
August 24, 2017
NEW APPROACH TO MILLENNIALS NEEDED
BEHAVIOR, NOT AGE, IS WHAT COUNTS
While in many respects Millennials—consumers born in the 1980s and 1990s—behave like young consumers always have, but in other ways they differ sharply from past young-consumer populations. So, new research by L.E.K. Consulting says retailers who’ve successfully adapted to new generations of consumers now need to adapt again. And the research also looks ahead to the so-called “Gen Z” that is just entering adulthood, and how they might be different again.
Savvy retailers who want to court Millennials should think more about sub-segments than the whole population, and remember that at the end of the day it’s individual consumer behavior that counts. “Millennials are sometimes treated as a monolithic group, although they’re not, and it’s often assumed that they behave the way young consumers have always behaved, which is a half-truth at best,” says Rob Haslehurst, co-author of the L.E.K. report.
Millennials number 75 million—approximately 30% of the U.S. population. They account for approximately 90% of first-time mothers today. And they spend about $1.2 trillion a year—one-fifth of the nation’s total consumer expenditure.
“By far the most important distinction among Millennials is whether they have children, and their level of education,” says L.E.K.’s Shang Saavedra. “Millennials with children and at least a college education spent sharply more than the next-highest spending group in several categories”— most notably home (68% more) but also footwear (56%), electronics (52%), and apparel and personal care (49 percent each).
Millennials are far more likely to pay a premium for convenience than older generations. Millennials are pressed for time and will spend aggressively for convenience options such as fast, free shipping, prepared meals, and ride sharing. They grew up with online research. In categories such as apparel, footwear, and personal care, they spend 30 minutes more on research per purchase than Gen Xers do, and nearly an hour more than Baby Boomers.
To win over Millennial consumers, L.E.K. says retailers should: (1) Target sub-segments. Find the ones relevant to the brand and figure out how to meet their specific needs. Some Millennial subgroups prefer to buy beauty and personal care products online. Online-only sellers can take advantage – and beat out grocery and pharmacy stores... (2)Target the behavior, not the age. Some behaviors transcend generations. Electronics consumers are tech-savvy and shop in the same channels no matter what generation they’re in. (3) Personalize. Personalization pairs well with technologies that Millennials like. Retailers can use artificial intelligence to drive personalization down to the individual level.
“Retailers have always had to adapt to new generations of consumers,” says Haslehurst. Adapting to Millennials is crucial, because they’re a large, high-spending group.
ADVERTISER NEWS
Lowe’s did not match the 6.6% same-store sales increase Home Depot had recorded last week (it usually does not as Home Depot has a heavier mix of professionals and contractors), but it still produced a 4.5% gain for the May-July period, which brought the six-month year-to-date up to plus 3.3%. The CEO commented on “strong momentum building through the quarter” with July comps up 7.9%...... Kohl’s is now concentrating on opening smaller-format stores, announcing plans for four more to open in time for the holiday season. It’s also reducing the size of some existing stores and says it has made 300 other locations “operationally smaller” through inventory reductions and layout changes…… As part of its plan to monetize the value of its famous brands, Sears Holdings made deals with Cleva North America for the manufacture of floor cleaning accessories and vacuum cleaners under the Kenmore brand name and with Dorcy International for an expanded assortment of DieHard batteries and flashlights…..No date attached yet, but Hyundai dealers will finally get the pickup truck they have been asking for according to Automotive News, which says the company’s top management has given the green light for developing a truck for sale in the U.S. Hyundai sales are down about 11% so far this year (the market is down 2.9%) due to too heavy a reliance on cars compared to crossovers and other trucks……Nation’s Restaurant News reports IHOP is testing delivery in a few markets and is in discussions with some third-party companies to conduct a full test later this year. “Clearly, off-premise dining has become a much bigger trend for all guests, particularly millennials,” the chain’s president said……Speaking of home delivery, Progressive Grocer says Kroger is testing it from a couple of its stores in headquarters city Cincinnati, officially using The Grocery Runners which has been independently providing deliveries from Kroger stores since last year. Kroger has been testing delivery systems with Uber and Shipt at some of its other banners……La-Z-Boy written same-store sales were up 0.7% in its latest fiscal quarter with two new stores opened and integration continuing on recently-acquired stores. For the full fiscal year (through April, 2018) it will add a net of eight new stores to reach 148 company-owned and 207 “dealer-owned”……It hasn’t been a particularly hot summer in some part of the country, but This Week In Consumer Electronics reports sales of air conditioners and dehumidifiers have been very strong. Data from the Association of Home Appliance Manufacturers says the home comfort category produced a 23.7% increase in factory-to-retailer sales last month. Over 361,000 air conditioners were shipped, up about 15.1% from last year while about 222,600 dehumidifiers were shipped, a huge 41% gain.
NETWORK NEWS
NBC has given a sizable put-pilot commitment to a new drama from Jeff Rake (Beauty and the Beast, The Mysteries of Laura), Jack Rapke (Back to the Future) and Robert Zemeckis. The project is named Manifest and is described as a high-concept mystery thriller in which a plane disappears from radar and returns five years later after being untraceable and presumed lost at sea. No time has passed for the passengers and crew of the plane but, for their loved ones at home, five years have gone by. Rake will write the script and will executive produce along with Zemeckis and Jackie Levine. Manifest is the second sale for this development season for Rapke and Zemeckis. The pair picked up another put-pilot commitment for a live-action reboot of The Jetsons at ABC……Fox has given a put pilot commitment to a new single-camera romantic comedy from Fresh Off the Boat creator and executive producer Nahnatchka Khan. The untitled project will be written by Billy Finnigan (Grace and Frankie, The Real O’Neals) and will come from 20th Century Fox TV and Khan’s studio-based Fierce Baby production company. This is the second commitment for Khan and Fierce Baby. The other sale is a comedy called Revival, created by former Son of Zorn showrunner Sally Bradford McKenna and Michael Showalter, who will direct the project……Murdertown, a comedy from Jillian Bell (Idiotsitter, Workaholics, Eastbound and Down) has been given a script commitment from Fox. The project centers on a New York radio journalist who returns to her hometown in Cape Cod after a career-ending gaffe. She takes a job at the local newspaper, hoping to uncover a headline-grabbing true crime story that will get her back in the spotlight. Hayes Davenport (HBO’s Divorce) will write the script and serve as executive producer along with Pam Kohl, Oly Obst, and Bell. It is unclear if Bell will act in the project……Marcia Clark will be developing a new drama project for ABC. Clark will be working with writer-producers Elizabeth Craft and Sara Fain (The 100) on the untitled project at Mandeville TV based at ABC Studios. Described as “part legal thriller, part confessional, part revenge fantasy” the yet to be titled project centers on a female prosecutor who loses the trail of the century and is shredded by the media in the process. The drama then chronicles what happens when the murderer strikes again eight years later. Clark served as the lead prosecutor in the O.J. Simpson trial in 1995.
ACCOUNT ACTIONS
ESPN has appointed Droga5, New York, as the agency to handle integrated strategic and creative duties for the overarching ESPN brand as well as the flagship property, SportsCenter. Collaboration between ESPN and Droga5 will begin immediately with a new campaign anticipated to debut in the coming months……The Cordish Companies has appointed Cramer-Krasselt, New York, as agency of record for its Live! Casino & Hotel near Baltimore. MediaPost says new work will include marketing efforts for the new flagship Live! Hotel, a 310-room, $200 million project currently under construction.
WALMART, GOOGLE TEAM UP
Walmart and Google are joining forces in a direct confrontation with Amazon’s growing power in a deal that includes the ability for Walmart customers to make purchases by voice using various devices. Walmart announced it is becoming part of Google Express, Google’s online shopping destination, adding hundreds of thousands of products to that site. Customers will be able to place orders by speaking to Google’s virtual assistant and other devices in the near future and Walmart plans to share consumers’ purchase history with Google to facilitate reorder for items frequently bought by the customer.
The Wall Street Journal reports Google had launched Google Express in 2013 and reached full national availability last year. It uses third-party firms to fulfill orders from a variety of retailers including Target, Costco, Walgreens and Whole Foods (which of course is being bought by Amazon, but it expanding its relationship with Google anyway). Google earns its money as commissions from the retailers, and charges a $95 annual fee for free shipping. Under the new deal, Walmart will assume the responsibility for fulfillment of the customer’s order.
BUSINESS BYTES
A survey from IRI Consumer Connect finds there’s still a “frugality hangover” from the last recession, and that gives food store private labels “staying power,” according to Supermarket News. The study found that when it comes to selecting which retailer to patronize, 95% made low prices a priority and 82% referred to a store’s selection of private labels products, with 75% of respondents saying store brands were “just as good” as nationally-known brand names. Millennials are even more strongly attached to private labels, with almost 85% seeing store brands just as good as national brands. A VP of IRI commented, “If you think about when seniors entered their adult lives and formed their lifelong shopping behavior, private label was a lot different than it was today…Millennials entered adulthood when private label had taken off.”
Here’s something different: BJ’s Restaurant (not related to the chain of warehouse clubs) has started a program in some California markets that would allow customers at least 21 years old to have six-packs of craft beers (and/or 25 varieties of wine by the bottle) delivered after ordering either from BJ’s directly or through the DoorDash app. Nation’s Restaurant News reports beverage sales, typically more profitable to restaurants than food sales, could help improve the profitability of restaurant meal delivery, a trend that’s clearly been growing but hasn’t proved to be a huge profit-maker for the restaurants that have adopted delivery. Casual-dining chains like BJ’s have been struggling along with the majority of the restaurant business, and BJ’s same-store sales were down 1.4% in the latest fiscal quarter that ended on July 4.
MLS AND NHL TOPS FOR FAN EXPERIENCE
Major League Soccer (MLS) or National Hockey League (NHL) teams perform highest in 10 of the 11 markets included in the J.D. Power 2017 Fan Experience Study. Meanwhile, a National Football League (NFL) team scores lowest in every market.
The study measures fan satisfaction with their overall experience at major pro sporting events. In last year’s inaugural study, only teams in the nation’s four largest markets— New York, Los Angeles, Chicago and Houston—were evaluated. This year, Boston, Dallas/ Fort Worth, Denver, South Florida, Philadelphia, Bay Area and Washington, D.C. have been added, while Los Angeles has been expanded to include all of Southern California.
Fan satisfaction is evaluated across seven factors (in order of importance): seating area and game experience; security and ushers; leaving the game; arriving at the game; food and beverage; ticket purchase; and souvenirs and merchandise. Satisfaction is measured on a 1,000-point scale. Additional factors that are measured but not included in the official ranking are loyalty and future intentions; team performance (on-field); and team image.
The Houston Dynamo, Los Angeles Galaxy, New England Revolution, New York Red Bulls and Philadelphia Union score highest in their respective markets, while the Chicago Fire, FC Dallas and San Jose Earthquakes score second highest. The only MLS teams that buck the trend of rabid fan satisfaction are the Colorado Rapids and New York City Football Club (third) and DC United (fourth).
Study findings show that an NFL team performs at the bottom in every market. Chicago Bears, Dallas Cowboys, Denver Broncos, Houston Texans, Los Angeles Rams, Miami Dolphins, New England Patriots, New York Jets, Oakland Raiders, Philadelphia Eagles and Washington Redskins score lowest in fan satisfaction in each market.
AVAILS
Are you a leader with a hallmark of success in building high performance teams, inspiring and energizing others to perform at their highest level, all while achieving outstanding revenue and ratings development and increased bottom line profitability? Nexstar Broadcasting seeks an experienced General Manager with a long history of success to lead its television and digital operations in Tampa, FL (DMA #11), legacy NBC affiliate, WFLA-TV and a full power MyNet, WTTA-TV as well as one of the highest trafficked sites in Florida WLFA.com. If qualified, send your info to: . No calls please. EOE.
KMSB, Fox 11 in Tucson, AZ is searching for a Major Account Sales Manager. Reporting to the DOS, this person sells advertising solutions to national and regional agencies, as well as grow our national and regional market share. This person will manage rep firm providing them with the tools needed to properly represent KMSB and KTTU (MyNetworkTV). College degree with minimum 2 years of prior media sales experience in a professional, fast paced sales environment preferred. Get more details or apply now HERE. EOE.
WTAT, the FOX Affiliate in Charleston, SC, has an immediate opening for an experienced Account Executive well versed in both broadcast and digital sales. If you have a successful background of developing new business, as well as solid negotiating skills, we have a great opportunity for you in one of the most sought-after markets in the country! Must have at least 3 years Broadcast, Cable and/ or Radio sales experience. Send resume to and include “WTAT-Account Executive” in the subject line. No calls please. EOE.