Baby Boomer Segmentation:

Cracking the
C.O.D.E.
A Case Study
Step 1: Consumer profiling
Joe’s Cookies utilized a hybrid of ACNielsen Homescan
Panel data and POS-based profiles to identify its preferred
consumer. Since Joe’s Cookies had low penetration in the
marketplace, the company used panel data to profile the total
category, and then used Spectra Opportunity Finder Solutions
to profile individual SKUs.
The result of this analysis: Joe’s Cookies gained an understanding
of how its brand consumers differed from the overall
cookie category and competitors. The typical Joe’s Cookies
buyer skewed to African-American and Hispanic ethnic makeup,
earned $50,000–$100,000 per year and lived in a household
with children. ■ See chart 1.
Chart 1: Cookie consumer profiles
Joe’s Jane’s
Cookie Cookies Cookies
Category 16 oz. 16 oz.
White Med. High Low High
African Am. Low High Very Low
Hispanic Low High Very Low
< $50K Low Low Low
$50K+ High Very High Medium
$100K+ High Low Very High
No Kids in HH Low Very Low Very High
Kids in HH High Very High Very Low
Source: ACNielsen Homescan & Spectra
Step 2: Opportunity gapping
Joe’s Cookies then ranked retailer stores based on the “fit”
between the store consumer profile and the Joe’s Cookies
consumer profile, quantifying the consumer opportunity gap.
The analysis determined that store opportunity varied greatly
once the consumer was inserted into the equation.
For example, Joe’s Cookies found Store A and Store B identical
in every transactional way. Joe’s Cookies had two facings in
each store, and the store shelf set and total sizes were virtually
identical. However, sales results for Joe’s Cookies were anything
but identical. Store A sold approximately $90 per week of
cookies, while Store B sold closer to $230 per week.
A consumer trade area analysis for each store uncovered very
different shopper bases. Store A was located in an urban setting
with many households without kids in its consumer trade
area. Store B, on the other hand, was in a rural setting with
many households with kids in its consumer trade area. As a
result, Store A was not the underperforming store it initially
appeared to be, but in fact, had captured most, if not all, of its
opportunity. Store B, initially thought to be over-performing in
its trade area, was actually under-performing and should have
sold an incremental $130 more per week. ■ See chart 2.
Instead of allotting resources against a store that appeared to
be an under-performer, Joe’s Cookies targeted the real underperforming
store. Joe’s Cookies followed the C.O.D.E. method
and assessed the different demand drivers and demand
inhibitors affecting the store in order to chart a path for Store B
growth. This exercise was repeated for other chains to diagnose
the amount of unconverted opportunity by account and
develop tactical plan for realizing untapped potential.
Chart 2: Opportunity gapping
Store A: $90 in Sales Store B: $230 in Sales
Consumer Trade Area Consumer Trade Area
Few Kids—Urban
Many Kids—Rural
Consumer Opportunity Gapping
Gap Upside: $8 Gap Upside: +$130!
Source: ACNielsen Homescan & Spectra
48 Fall/Winter 2006