Homecare Client Materials: Other Primary Research

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Homecare Client Materials: Other Primary Research

All documents in the 'Other Primary Research' folder were reviewed and a summary of each document's key findings, insights, and statistics have been provided below. The folder contained 15 documents and two zip folders. Both zip folders only contained compressed versions of files that were already in the folder.

1. Understanding the Five Drivers Shaping Megatrends

Overview

  • This report identified 20 megatrends that are likely to be the most influential in shaping the world through 2030. It further provided comprehensive thought leadership on the eight megatrends with the most extensive/furthest-reaching effects/implications on consumers and industries. It also provided in-depth analyses of the five drivers that shape consumer behavior.

Megatrends

  • The following are the 20 megatrends identified by the report. The first eight trends in the list were considered to have the most extensive effects on consumers and industries:
    • Healthy Living
    • Experience More
    • Premiumisation
    • Healthy Living
    • Ethical Living
    • Middle Class Retreat
    • Shifting Market Frontiers
    • Connected Consumers
    • Smart Homes and Smart Cities
    • Generation Gaps
    • Sharing Economy
    • Reinvention of Gender Roles
    • Circular Economy
    • Buying Time
    • Searching for Simplicity
    • Striving for Authenticity
    • Multiculturism
    • New Ways of Working
    • Personalisation
    • Changing Family Dynamics

Drivers

  • The report defines drivers as unstoppable forces that shape the future's macro-environment. The following are the five drivers that shape consumer behavior:
    • Shifting Economic Power
    • Technology
    • Population Change
    • Changing Values
    • Environmental Shifts and Pressures

Analyses of the Drivers

Shifting Economic Power

  • Based on the report, the size of the global economy will reach $256 trillion by 2030, expressed in PPP (purchasing power parity) terms. Developing and emerging economies will account for 76% of the growth, and emerging economies will constitute six of the 10 largest global economies. The growth of the GDP for developing and emerging economies will be thrice as fast as that of developed economies.
  • Also, the global economic power will shift to the eastern economies by 2030. In 2005, the largest economies, in descending order, were the U.S., China, Japan, India, and Germany; however, China, the U.S., India, Indonesia, and Japan will lead world economies in 2030.

Technology

  • In 2030, about 99% and 60% of households worldwide will have mobile phones and tablets, respectively. Consumers will also spend about $213 on communication, per capita. About 75% of households will have broadband internet access by 2030.
  • The report stated that internet users globally reached 3.8 billion in 2019. About 57% of connected users reported that they "would be lost without the internet," and digital communications is preferred over other means by 34%.

Population Change

Changing Values

  • In 2030, 53% of consumers will spend on services, and about $4.317 trillion will be spent on recreation and leisure, representing a growth of 26%. Generation Z will constitute 21% of the global population.
  • The data provided showed that percentage of consumers who were searching for ways to make their lives simpler grew from about 48% to approximately 51% from 2015 to 2019. About 36% were willing to spend money to save their time in 2019, up from about 29% in 2015. In 2019, about 40% of consumers felt that their actions and decisions could affect the world, up from about 31% in 2015.

Environmental Shifts and Pressures

  • In 2030, the global population density will reach 66 persons/km². About 92% of the global economy would have accessed electricity, and there will be about 1.4 billion cars on the roads, which represents a 38% increase. Climate change, waste and pollution, and resource competition were identified as the three main challenges.

How Drivers Shape and Generate Megatrends

  • The report briefly explains how drivers impact three of the eight major megatrends.

Experience More

  • Shifting Economic Power: consumers are reassessing their priorities and values due to weak gains in income.
  • Population Change: the rise of Gen Z and Millennials, as well as mobility and migration, will facilitate the trend.
  • Technology: enables the megatrend by enhancing the whole experience.
  • Environmental Shifts and Pressures: drive consumers to minimize the impact of their consumption on the environment.
  • Changing Values: driven by shifting attitudes regarding conscious consumption.

Connected Consumers

  • Shifting Economic Power: emerging markets will drive connected consumers' future.
  • Population Change: The Asian Century will increase cause an increase in the number of connected consumers.
  • Technology: digital connectivity "underpins the very existence of Connected Consumers."
  • Environmental Shifts and Pressures: Promotes access by contributing towards the migration to newer business models as well as digital content.
  • Changing Values: the megatrend is driven by the greater value placed by consumers on time, comfort, and convenience.

Shopping Reinvented

  • Shifting Economic Power: "this driver is not only about the rise of emerging markets, but also the middle class retreat and the search for value."
  • Population Change: urbanization will facilitate greater engagement, experimentation, and commercial success.
  • Technology: linked to almost all steps of the shopper journey.
  • Environmental Shifts and Pressures: impacts consumers' decision-marking process and their purchase decisions.
  • Changing Values: consumers' willingness to "spend money to save time" fuels innovation in various sectors, including the last mile.


2. Target Deep Cleaning Formula Category Review

Overview

  • This presentation provided a review of the performance of Deep Cleaning Formula (DCF) products at Target. It aimed to provide assortment recommendations, develop target profiles for future marketing efforts, identify opportunities to drive Target's market share, and understand the profiles of consumers of "Deep Cleaning Machine Formula at Target."
  • Additionally, the presentation aimed to understand the value brought by non-machine formula brands, as well as to understand where Target wins within the U.S. Formula category as compared to the rest of the market.

Category Review

Overall Profile of DCF shoppers

  • When compared to total U.S. shoppers, DCF shoppers tend to be mostly married Caucasians aged 46-65 years with over $60,000 in annual income and living in 3+ households in suburban or rural areas. Also, their average annual FMCG spend is about $18,610.30, compared to about $15,252.80 for the average U.S. FMCG shoppers.
  • About 81% of U.S. consumers purchased from Target in the 52 weeks ending in August 2018, 5.1% of whom purchased DCF products somewhere. Only 12.9% of the identified DCF purchasers purchased from Target (referred to as 'Closers'), with 87.1% purchasing DCF products from Target's competitors (referred to as 'Non-Closers'). About 87.4% of the Closers' DCF spend was spent at Target, and 10% of the remaining DCF budget was spent at Walmart.

Shopper Profile - Closers and Non-Closers

  • Target's Closers were younger than Non-Closers with Millennials making up about 25% and 21.4% of the former and latter categories, respectively. Also, Target's Closers are mostly from urban areas and have comparably higher incomes than Non-Closers. However, Non-Closers are more valuable overall shoppers spending about $19,175.98 annually on FMCG products, compared to Closers' $18,383.82.
  • About 68% of Target's Non-Closers purchase DCF products from Walmart. Among the remaining Non-Closers, 8.9%, 5.4%, 5.4%, 4.0%, 1.5%, and 1.1% purchased DCF products from Amazon.com, Home Depot, Lowe's, Meijer, Bed Bath & Beyond, and Dollar General, respectively. Other retailers took about 6.3% of Target's Non-Closers.
  • Notably, The DCF products that Target's Non-Closers were buying from Amazon.com and Walmart were similar to those stocked by Target.

Closure Performance and Shopper Metrics

Trip Types

  • At Target, 15.2%, 48.6%, 21.4%, and 14.7% of "Carpet Deep Cleaning Machine Formula" purchases were made during urgent, express lane, fill up, and pantry stocking trips, respectively. Walmart's trips follow a similar trend to Targets with the former capturing slightly less express lane and urgent need trips.
  • At Target, Resolve and Hoover DCF products were most likely to be in larger and smaller trips, respectively. The largest share (49.2%) of Bissell purchases were made during express lane trips.

People Insight: Target Non-Closers

Advertising Behaviors

  • About 64%, 58.5%, 46.7%, 45.7%, and 35.0% of Target's Non-Closers were driven by television, online, in-store, mobile device, and social media awareness channels, respectively. Also, television, online, in-store, and social media were identified as the most influential channels among 25.2%, 19.0%, 12.8%, 12.0%, and 11.2% of Target's Non-Closers, respectively.
  • Most of Target's Non-Closers regard advertisements positively, with 37% reporting that advertising kept them updated. About 36.3% did not mind relevant adverts. However, about 20.7% and 18.2% of Non-Closers found advertisements to be annoying and manipulative, respectively.

Online Behaviors

  • Based on the presentation, 65%, 62%, 55%, 51.5%, and 50.6% of Target's Non-Closers used mobile devices and computers to make online purchases, to research products, to visit social media sites, to listen to music, and to play games. About 69.5%, 46.4%, 44.5%, 44.0%, and 41.4% used banking, social media, games, weather, and chat/messaging mobile apps, respectively.
  • Media Services and Devices
  • About 59.2%, 58%, 39.3%, 37%, and 25.4% of Target's Non-Closers owned smart televisions, DVD players, DVRs, cable boxes, and Nintendos. Over 57%, 45%, and 21% had Netflix, Prime, and Hulu subscriptions, respectively. Over 25% were using Amazon Music and Pandora.


3. Target Deep Cleaning Formula Category Review: Walmart Slide Additions

Overview

Profile of Walmart's DCF Shoppers

  • About 95% of U.S. consumers purchased from Walmart in the 52 weeks ending in August 2018, 5.1% of whom purchased DCF products somewhere. About 66.7% of the identified DCF purchasers purchased from Walmart (referred to as 'Closers'), with 33.3% purchasing DCF products from Walmart's competitors (referred to as 'Non-Closers'). About 94.8% of the Closers' DCF spend was spent at Walmart.

Shopper Metrics


4. DC Machine and Formula Closure Rates for Top Retailers

  • This presentation builds on the information provided by the presentations titled 'Target Deep Cleaning Formula Category Review' and 'Target Deep Cleaning Formula Category Review: Walmart Slide Additions.' The document compared the wallet share and closure rate of Target’s Closers to those of its competitors. It only contains two slides with high-level information; therefore, only tow brief insights could be provided.

Closure Rates

  • Only 12.9% of Target shoppers who purchased DCF products purchased them from Target (Closers). About 87.4% of the Closers' DCF spend was spent at Target.
  • About 66.7 of Walmart shoppers who purchased DCF products purchased them from Walmart. Up to 94.8% of the Closers' DCF spend was spent at Walmart.
  • Only about 11.5% of Amazon shoppers who purchased DCF products purchased them from Walmart. About 90.7% of the Closers' DCF spend was spent at Amazon.

Draw Rates

  • According to the report, "among 8% of people who bought a DC machine and shopped at Target" for DC machines, about 70% purchased DC machines at Target.
  • Also, among 33% of "people who bought a DC machine and shopped" at Walmart for DC machines, about 84.7% purchased DC machines at Walmart.
  • Of the 18.4% of "people who bought a DC machine and shopped" at Amazon for DC machines, about 65.1% purchased DC machines at Amazon.

5. Steam Mop Purchase Drivers, Usage, and Satisfaction, BISSELL Study #1827

Overview

  • This study was conducted to better understand buyers of steam mops and their purchase drivers, product satisfaction, and product usage. The purpose of the study was to "inform Bissell's "brand advertising and in-store communications."

Steam Mop Ownership

  • About 24% of steam mop buyers have pets. Therefore, the usage of steam mops is largely influenced by pet ownership.
  • Shark and Bissell steam mops were mostly used for similar purposes. For example, 65% and 66% of Shark and Bissell steam mop owners, respectively, used them for cleaning dirt. A larger share of McCulloch steam mop owners used their products to clean messes that only small percentages of Bissell and Shark owners cleaned, such as grime (34%), grease (34%), dust mites (14%), mildew and mold (33%), and bed bugs (7%).
  • About 84% and 89% of owners of Bissell and Shark steam mops used them to clean hard surfaces. The usage of McCulloch steam mops was more balanced across both hard and soft surfaces. The report recommended that Bissell should increase the versatility of its products in order to broaden their appeal.
  • A shopper satisfaction survey found that 90%, 95%, and 86% of Bissell, Shark, and McCulloch steam mop owners were satisfied with the products. Dissatisfied Shark and Bissell steam mop owners had similar complaints, i.e. short cords, inability to clean tile grout, unimpressive accessories.

Key Brand Benefits and Features

  • Functional effectiveness, positive reviews, good value, brand trustworthiness, and recommendations motivated 43%, 35%, 32%, 27%, and 16% of buyers of Bissell steam mops. The presentation recommends that Bissell should ensure that its steam mops deliver on functional effectiveness. The company should leverage influencer marketing and improve customer relationship to increase word of mouth and brand loyalty.
  • About 37% of Shark's steam mop sales were driven by recommendations from family or friends. To compete effectively, Bissell will have to engage shoppers via influencer programs, online reviews, and referral programs.
  • About 84% of Bissell purchasers reported that online reviews were extremely influential. Of those, 72% and 36% researched the websites for online retailers and major retailers, respectively, before making purchases.
  • Regarding product features, 11%, 20%, and 23% of Bissell buyers identified scented disks, removable tanks, and "adjustable steam settings" as features that most influenced their purchase decisions. The report regarded these as key Bissell differentiators since significantly lower percentages of Shark and McCulloch buyers were driven by these features.

Messaging Recommendations

  • When asked about product benefits that drove their purchase decisions, 28%, 27%, 23%, and 22% of Bissell's customers identified superiority over ordinary/traditional mops, ease of use, sanitizing capabilities, and effective bacteria elimination, respectively.
  • Therefore, the report recommended that Bissell should include these aspects in their brand messaging. The report also found that Bissell needed to improve its "perceptions of versatility" among shoppers.
  • Only 36% of buyers of Bissell steam mop products were influenced by natural benefits such as lack of harmful chemicals and allergens, 64% were cared more about product effectiveness. Bissell's messaging should focus more on product effectiveness than 'natural' benefits.

6. Floor Cleaning Home Visits

  • This presentation provided some visual impressions of "home visits done within the context of Floor Cleaning Ideation and Concept Development 2019." The home visits were conducted in Cologne, Germany.
  • Participants were recruited based on specific device ownership, habits (such as detergent use), and the display and demonstration of their floor cleaning devices.
  • A total of eight image sets were added to the presentation. No insights or takeaways could be provided since the presentation only contained visual imagery. Above each set of images (provided in separate slides), were the names of the device owners, as well their age, device type, and the number of children or pets that they have.

7. Pet Knowledge Recap | Executive Summary

Overview

  • This 2019 document compiled three years of research on 'Pet Knowledge' that was conducted at Bissell International. It was meant to align and inform everyone on the subject, which is core to Bissell's DNA. The following are the relevant insights gathered from the researches.

Pet Ownership

  • While ownership of various pets, including cats, rodents, dogs, and birds, could be relevant to the floor cleaning category, the report focused on dogs and cats since they represented a grand majority of pet ownership.
  • Pet ownership for both dogs and cats and varied across countries. Japan had the lowest pet ownership level at 26%, and Russia recorded the highest pet ownership rate at 71%.
  • Pet ownership rates in Asia2, China, Germany, the EU3, France, Italy, and the U.S. were 47%, 49%, 50%, 56%, 59%, 63%, and 65%, respectively.
  • In Russia and France, cat ownership considerably surpassed dog ownership. Dog ownership was considerably higher in the U.S. and China. Based on the statistics, Japan was considered of the least interest to Bissell.

Behaviors and Attitudes Towards Floor Cleaning and Pets

  • In Europe, about 34% of people reported that pet ownership was a purchase trigger for new vacuum cleaners. Overall, "71% of pet owners" considered their pets when making purchasing vacuum cleaners.
  • About 32% more pet owners than non-owners prefer bagless canisters. Fewer pet owners purchase "corded stick vacs (-29%)." Additionally, 23% of pet owners were sensitive to brand sensitivity, compared to 16% of non-owners.
  • Suction power was the most influential device feature to the purchase decisions for both pet owners (48.5%) and non-owners (48.3%). Pet owners and non-owners stated that ease of use (40.8% vs 44.2%), versatility (33.9% vs 32.7%), weight (29.2% vs 28.5%), and floor maneuverability (28% for both) were among the top-five influential purchase drivers.
  • Pet owners possess 1.72 electric floor cleaning devices, on average, compared to 1.50 amongst non-owners. They also own more electric mops and canisters (both bagged and bagless).
  • In Asia and Europe, pet owners spent more money on vacuum cleaners as compared to non-owners.

Receptiveness Towards Pet Specific Functionality

  • Bissell products provided certain pet-cleaning needs of global households, including effective hair cleaning and prompt cleaning of accidents, hair, and kitty litter. However, 8% of consumers said that their current devices cleaned pet messes insufficiently.
  • In H1-2019, both pet owners and non-owners were equally aware of the Bissell brand. In comparison, Rowenta successfully catered to pet owners — "being the only brand up to the level of actual purchases."
  • Furthermore, 60% of consumers expect pet-focused floor care products to perform better than regular cleaning products. Slightly over 50% of pet owners reported that they were interested in floor care products that specialize in pet households. The interest is significantly lower among non-owners.

Receptiveness Towards Communications That Target Pet Owners

  • Both pet owners and non-owners in most countries have "a limited notion" that pet-focused products are more efficient than regular products.
  • According to a PN study, 30% of respondents disagreed on the statement that the products that display pets are "not for them." More pet owners disagreed than non-owners. Another 30% agreed with the statement, and 40% were neutral. It was likely that the rejection of the statement by pet owners was because the pet displayed was of a different breed to theirs.
  • In the CrossWave study (presented with ‘pet elements’), Bissell had a stronger presence among non-owners compared to Kärcher. This suggested that non-owners were more attracted to pet elements than pet owners.
  • Another research found that pet owners preferred Bissell in Germany. It was different in China with Bissell appealing to non-owners. Pet owners in Germany mostly preferred "smart seal allergen control," while "the overall pet household attributes were more preferred by all" in China.
  • Based on the analyses, the international business can benefit from the balance of communications and pet functionality. Several knowledge gaps that needed consideration were also identified.


8. Pet Knowledge Recap | Executive Summary

  • Although in a different format, the second document titled 'Pet Knowledge Recap | Executive Summary' is identical to the one reviewed above. The research team, therefore, saw no need to provide duplicate insights.

9. 1973 Pet Knowledge Recap - One Page Summary

Overview

  • This was a one-page summary of the findings from the Pet Knowledge Recap | Executive Summary documents analyzed above. While some insights are similar to those in the aforementioned full documents, there were several new insights that have been provided below. The document states that it summarizes insights that could be useful to Bissell's global brand positioning efforts.

Attitudes Towards Pets

  • Pets are considered as companions and are often regarded as equal family members. Consumers consider pets be "part of household life," and they reject the statement that pets are "chief mess makers." Also, while consumers admit that pets increase the frequency of cleaning sessions, they consider it a normal way of life, and do not want it to be exaggerated.

Cleaning routines

  • Up to about 77% of pet owners in all countries confirmed that pets caused them to clean more frequently, although most state that the cleaning effort is the same each time. In Europe, pet households require "more frequent cleaning, more thorough cleaning, and have special cleaning needs."

'Torture test'

  • About 35% of pet owners and 38% of non-owners confirmed that there is "only a limited notion" that pet-dedicated products are faster/more efficient than the rest.
  • Pet owners do not find pet messes to be stressful, and cleaning them were considered part of normal household cleaning. This limited the desire for specialized products or brands.

Recommendations

  • The document further recommends that Bissell should consider the information provided when defining its strategic direction for developing its international business.

10. Floor Cleaning Needs | Omnibus research DE, UK, FR, IT, ES, NL

Overview

  • This presentation examines various floor cleaning insights and statistics in Germany, the United Kingdom, France, Spain, Italy, and the Netherlands. It also provides comparative insights on the changes to cleaning needs post COVID-19. Below are the key takeaways.

Cleaning Frequency

  • About two months into the pandemic entered Europe, approximately one-third of people confirmed that they vacuumed their floors more often. A similar proportion also confirmed that they wet-cleaned hard floors more often. One-quarter of the respondents cleaned their carpeted floors more frequently.
  • Also, half of the respondents confirmed that they cleaned touchpoint surfaces such as valves and handles more frequently since the onset of the pandemic.
  • "Within the weighted total of six countries, 36%" confirmed that they wet-cleaned hard floors more often after the pandemic. Overall, cleaning of touchpoint surfaces showed the largest increase.
  • Increases in cleaning frequencies were more pronounced in Spain, the U.K., and Italy. The Netherlands and Germany registered the lowest levels of increased cleaning frequencies.
  • Younger people were three times as likely to have increased their "floor cleaning frequencies" compared to older people. There was similar growth in the cleaning frequencies for recommended touchpoints.

Cleaning Methods

  • Forty four percent of respondents claimed to have changed their cleaning methods. More non-owners confirmed these changes than pet owners.
  • Pet owners were consistently twice as likely to confirm all the proposed cleaning ways than non-owners.

Purchase Intent

  • The level of purchase intent is directly proportional to that of behavioral change. As a result, the Netherlands recorded the lowest purchase intent levels with over 60% of consumers confirming that they had no intention of purchasing any of the listed cleaning devices in the following 12 months.
  • Up to 20% of respondents intended to purchase steam cleaners. Robotic wet or dry cleaners ranked second with almost 10% of respondents expressing purchase intent. From the survey, electric floor cleaners were more desirable than manual mopping options.
  • Pet owners were twice as likely to express purchase intent as non-owners. Steam floor cleaners were top on the wish lists of respondents from the U.K., France, Spain, Germany, and Italy. They are a close second to wet or dry robotic cleaners in the Netherlands.

Cleaning Behavior

  • After COVID-19, pet owners were more likely to have intensified their floor cleaning efforts/frequencies than non-owners. For example, 42.4% of pet owners wet-cleaned their hard floors since the pandemic, against 28.0% of non-owners. Also, a comparably higher percentage of non-owners confirmed that they had not altered their cleaning methods.

Purchase Criteria

  • Brand, Product Features, Reliability, Quality, and Pricing were the most identified purchase criteria among respondents from all age groups.
  • Pricing was most important for age group 25-34, and product quality featured highly among age group 45-54. Persons aged 65 years and above valued reliability the most, and product features was most important to 55-64-year-olds. The brand's reputation was most mentioned among the youngest age group (18-24).
  • Regarding product features, suction power, versatility, and ease of operation were the most popular among respondents from all age groups.

11. Pet Messiness: Channeling Customer Experience Final Project

Overview

  • This report analyzed various relevant data points to provide fundamental insights into the unmet "needs of pet owners," potential innovations for products, and solutions for alleviating cleaning challenges/pain points. It used the findings to determine Bissell's desired market position. The document mostly offers qualitative information based on interviews with shortlisted participants.

Bissell's Target Consumer

  • The study began by understanding Bissell's target consumers, especially pet owners. Although pet owners of different genders, ages, marital status, and economic status were reviewed, the study found that all pet owners that purchased cleaning products exhibited similar traits. This was expected to benefit Bissell's journey towards becoming "The Pet Brand."
  • Firstly, all reviewed pet owners loved their pets and did not mind the mess involved. It was also realized that Bissell's target consumers were loyal to their household pets, and that they were willing to purchase products that improve their ownership experience.
  • All pet owners, regardless of economic status, were also willing to pay more for superior cleaning products. Furthermore, cleaning after pets had become second nature for all pet owners, and most owners tackled expected messes without any reaction.
  • Additionally, it was found that pet owners were open to new solutions, and most lack brand loyalty. Their purchase decisions were influenced more by efficiency and effectiveness than the brand. This was a very promising finding since it indicated that Bissell's products were likely to be embraced if they were better than available products.

Causes of Messes

  • The research found that pet owners deal with two types of messes: unexpected messes and expected messes. As the name implies, expected messes were those that pet owners knew that they will encounter at some point. Common expected messes included fur on surfaces, food and water spillage, soil and mud tracks, and messes in the car.
  • Unexpected messes are those that are not encountered regularly. They include fur build-ups and pet poops or vomits. While pet owners clean expected messes routinely, they sometimes forget to clean unexpected messes.

How Messes Are Addressed

  • Pet owners were frustrated when it came to addressing pet messes because "even though they are performing their normal cleaning routine, there's always something in their house that's not going to be as clean as they want it to be."
  • Most pet owners have regular 15-minute to 30-minute cleaning routines to address expected messes. Although addressing pet messes was not a favorite activity among pet owners, they understood that it was their responsibility and they would be willing to try out new products if they alleviated their burden.
  • Recommendations
  • The study concluded that Bissell was "not tapping into their desired customer segment to the maximum extent." Since all participants used the same cleaning products for cleaning both human and pet messes, they were more likely to invest in the best available products. Therefore, Bissell would need to launch versatile and innovative products that address the pet owners' specific needs.
  • It was also found that most respondents were not aware of Bissell's desire to become a pet brand, or its pet-focused philanthropic work. The report recommended that Bissell should consider including this information in its marketing messaging to better resonate with consumers.


12. Premium Consumer Purchase Behavior Study Summary Report: Prepared for Bissell

Overview

  • Bissell wanted to understand the purchase journey for consumers of premium vacuum cleaners in order to gain an advantage in a shrinking market. The company was also looking for insights that would inform opportunities and price elasticity in the premium category.
  • Therefore, the researchers sought to understand the differences between the productivity performance for 'Stick' and 'Upright' vacuum cleaners in order to provide insights that could inform Bissell's product development efforts and facilitate its market share growth.

Market Trends in Floorcare Category

  • In 2019, the Floorcare appliance category accounted for about 40% of the total "Home Environment Appliance market." Floorcare sales grew from $3.719 billion in 2018 to $3.884 billion in 2019, which represented a 3% year-over-year increase. However, the growth was behind that of non-floorcare devices (6.2%).
  • The Floorcare appliance category is composed of three subcategories: Full Size (FS) vacuums (Upright vacuums, Canister vacuums, Workshop vacuums, and Deep carpet), Hand/Stick (HS) vacuums (Stick vacuums, Hand vacuums, and Electric Carpet Sweepers), and Specialty Cleaning (SC) appliances (Robotic vacuums, Bare-floor cleaners, Hand-held specialty cleaners, and Other specialty).
  • Despite losing about 2.4% in dollar share in 2019, FS vacuums still accounted for 48% of the Floorcare category. HS vacuums and SC appliances made up 27% and 28%, respectively.
  • By subcategory, the Upright vacuum subcategory was the largest at 33% of the Floorcare market. Stick vacuums came in third at 23%. Sales for sticks showed an upward trend growing at an average rate of 11.6% from 2016 to 2019. Uprights' growth remained stagnant at 1% over the same period.
  • The five top brands in the Upright and Stick categories were Bissell, Shark, Dirt Devil, Hoover, and Dyson. Bissell had the highest unit share for Uprights, but its sales share was smaller than Shark's. Dyson's sales share for Sticks was double that for Bissell, but they had almost equal unit shares. These findings suggest that Bissell's Upright and Stick units sold at lower prices.
  • When premium trends were considered for both Sticks and Uprights, it was found that the former category was performing much better in the premium market than the latter. Premium was defined as products that cost over $200.
  • Premium Sticks accounted for about 27% of Stick units sold; however, premium products drove over 90% of the category's growth. Premium accounted for 63% of Sticks' dollar share.
  • Premium represented only about 10% and 26% of Uprights' unit share and dollar share, respectively. Based on its share, premium Upright can still be described as a niche market. Notably, Sticks were responsible for 97% of the premium growth for Upright and Stick.
  • Dyson accounted for about 83.4% of the premium Stick unit sales. Shark and Bissell came in second and third at 14.8% and 1.0%, respectively. Despite selling their premium products at lower price points, Bissell could not compete effectively with both Dyson and Shark.

Purchase Behavior

  • Between 2018 and 2019, about 26% of consumers purchased a Floorcare cleaner. FC vacuums, HS vacuums, and SC devices had penetration levels of 12.9%, 7.3%, and 6.1% in 2019, respectively.
  • Uprights have the highest penetration levels among individual Floorcare subcategories. However, Robotics and Sticks are slowly gaining penetration.
  • Regarding cross-purchasing habits, it was found that 43%, 18%, and 14% of Floorcare consumers purchased FS only, HS only, and SC only, respectively. About 10%, 8%, and 4% purchased FS + HS, FS + SC, and HS + SC products, respectively. Only 3% purchased all three categories.
  • In comparison, the cross-purchase trend was more positive among premium buyers with 68% of premium Floorcare consumers buying multiple units. Multi-unit purchasers were also spending more per unit than one-unit purchasers.
  • Among multi-unit purchasers of premium Floorcare appliances, 24% and 18% purchased FS + SC and FS + HS products, respectively. About 16% purchased all three categories.
  • Twenty percent and 10% of Upright buyers also bought a Stick and a Robotic appliance, respectively. Based on the available statistics, both Robotic and Stick vacuums were contributing to the contraction of the Upright market. Also, premium items purchased other premium products.

Purchase Drivers

  • Dyson was the brand of choice among Stick buyers, while Bissell was considered by most Upright buyers. Most buyers actually purchased the brands that they considered. Therefore, brands needed to change consumer mindset early in the purchase journey since they already had preferred brands.
  • Functionality/utility was the key reason for purchase among Upright vacuum buyers. Stick vacuum buyers were more influenced by weight. About 90% of Upright buyers reported that they used their products on carpets, while over 85% of Stick appliances were used on hard floors.
  • Majority of respondents reported that price only had "some level influence" for both Upright and Stick purchases. This was because other features were also being considered. Additionally, over 53% of purchases for both Stick and Upright vacuums did not involve coupons, sales, or rebates.

13. Performance for Pet Families | Innovation Workshop

  • This presentation highlights the activities during an innovation workshop conducted in 2017. It provided high-level overviews of the opportunity areas, as well as the need areas and the ideas generated to counter consumer pain points. Below are the key takeaways that could be gleaned from the presentation.

Nagging Dry Messes

  • Pet families needed to clean cat litter, pet food messes, pet hair on furniture and floors, and the dirt brought in by both people and pets. The ideas generated included sweeper robots, bagged stick vacuums, devices for cleaning moist messes, small-space robotic vacuums, and stationary plug-in for collecting hair. According to the report, "the opportunity for innovation comes through great dry tools, pet feeding solutions & litter management."

Less Effort

  • Consumers needed to avoid hands and knees or bent-over cleaning. They also needed to avoid hard work and to have their cleaning suppliers within easy reach. The ideas generated included slim sweepers and Stick vacuums. Consumers could also benefit from Hand vacuums that could be used while standing and Stick vacuums that could be emptied without bending.
  • The report stated that this can be "addressed within the GPD process through simple solutions aligned to real-world consumer use cases."

Preventative Measures

  • Pet families needed to keep their pets from relieving themselves in the house of outside the dedicated areas. They also needed to find ways to protect their furniture and to reduce pet destructiveness and accidents. It was suggested that a behavioral tech should be developed to anticipate pet messes. However, the report stated that this "has limited short term viability, but great long term opportunity related to Pet Sensing."

Disposable

  • Consumers needed to clean messes conveniently, easily, and without soiling themselves or their devices. They also wanted to eliminate germs from their homes. The ideas generated included "disposable spinwave disks," URV tools, PDC/UDC tools, "crosswave brush roll covers." The report concluded that this was a "top near-term opportunity areas for development."

Urgency of Wet Messes

  • Consumers needed to clean messes as promptly as possible, and to be immediately aware of pet messes. They also desired tools that did not require extra cleaning. The ideas included "disposable bag with Virox Stomp pad," stomp pads for eliminating pet urine, and a feature that allows powder to be sucked into the DC to clean it. This was also considered a "top near-term opportunity areas for development."

14. Customer Journey Vacuum & Wet Cleaning

Overview

  • This document provided insights into how people in Germany, Italy, France, and the U.K. learned about and bought floor care appliances. It aimed to enable Bissell to understand the customer journey for consumers of floor care appliances, from inspiration to purchase. Bissell also needed to determine ways to influence choice, and whether there was a "latent need for a 'wet cleaning solution' combined with vacuum cleaning."

Background Statistics

  • About 42% of vacuums sold in all four countries, i.e., Germany, Italy, France, and the U.K., were Stick-shaped. At 31% of the overall sales, cordless Stick vacuums were purchased more frequently than any other device types.
  • Consumers of Stick vacuums in Germany, France, and the U.K. preferred hand-held motors, while those in Italy preferred the motor to be below. Also, 71% of corded Stick vacuum consumers preferred the motor below, and 71% of cordless Stick consumers preferred handheld motors.
  • At 30%, Dyson commanded the largest market share (by far) in all four countries. Bissell's position is quite small.

Purchase Drivers/Triggers

  • Replacement was no longer the only reason for buying vacuum cleaners since consumers were buying additional appliances to complement their devices. For example, Robotic vacuums were bought to complement Canisters and Sticks, and cordless Sticks to complement Canisters. Notably, most Wet & Dry vacuums were bought as additional devices.
  • Cordless Sticks and Robots were bought to replace similar categories or Canisters, which meant that Canisters were losing their position as 'main' vacuum cleaners. Although they rarely replaced other categories, Canisters were often purchased to replace old or broken Canisters.
  • Efficiency (better cleaning) and ease of use were among the main purchase drivers for vacuum devices in all four countries. However, purchase triggers varied by device: for cordless devices, it was the cordless feature and ease of use; cleaning performance was important for Canisters; for robots, it was automatic cleaning; and for Wet & Dry, cleaning performance and larger capacity drove sales.
  • 'Convenience' and 'impulse' factors also influenced the need or purchase of new devices. Convenience factors included reduced physical effort (71%) and saving time (74%). Impulse factors included special offers (61%), better design (48%), and new features (59%).
  • It was also found that 75% of vacuum buyers are in active family households (with pets or kids). About 14% of consumers bought their devices after an allergy began to develop in the household.

Information Journey

  • Online presence was crucial for vacuum brands, since about 61% of consumers researched in websites. In the U.K. and Germany, websites were more important sources of information than physical stores.
  • The information gathered online included reviews, vacuum cleaner comparisons, and brand/type information. Consumers searched in manufacturer's websites, online shops such as Amazon, and third-party websites such as Idealo. Dyson's website topped manufacturer website visits, but Bissell's had very few visits (mostly in the U.K.).
  • About 50% sought information from physical stores. Physical shops were still important sources of information in Italy and France. About 45% visited a physical shop to either see or buy the device, and there was an average of three visits before purchase.
  • Also, 24% and 21% of consumers found information on vacuums on YouTube or social media platforms, respectively. Facebook was the most prominent social media resource.
  • The information journey took under two weeks for 36% of respondents, and four weeks for 31% of respondents. Generally, 'Replacers' took a shorter time. The product type to be purchased is usually identified during the information journey.

Consideration Phase

  • Only 14% of buyers from the four countries were aware of the Bissell brand. Bissell was mostly recognized in the U.K.
  • Bissell was not among the top top-10 brands lists in the four countries, neither in 'consideration' nor 'awareness.' Despite the brand being considered by 8% of buyers of Wet & Dry products, it was not enough to set it apart from the competition.
  • Although the reasons for choosing a particular product/brand varied by brand, the main reasons were reliability, pricing, expected quality, and product features.

Purchase Channels/Venues

  • Majority of vacuum consumers (54%) the four countries purchased vacuum cleaners from a physical location (more in the U.K. and Italy). Interestingly, the top-two leading shops (by vacuum sales) sold over 50% of all vacuum cleaners in
  • On average, online sales represented 38% of all vacuums sales (more in the U.K. and Germany). Accounting for 19% of total sales in all four countries, Amazon was the most frequented online channel.
  • "Door-to-door" and television sales featured quite substantially in the market. In Italy, Germany, France, and the U.K., they represented 13%, 9%, 4%, and 3% of the total sales, respectively.

Pet Owner Insights

  • Pets were influential during the information and trigger/need phases. About 63% of all buyers (of all categories) came from pet households, with 34% of all purchasers being new pet owners. At 46%, Italy had the highest number of new pet households.
  • Based on the data, 71% of pet owners considered their pets when purchasing a new vacuum device. They were mostly after a larger capacity and improved cleaning performance.
  • During the information journey, pet owners researched through higher number of sources. They also bought additional devices more often.
  • Bissell's position was weak among pet households. Consideration, awareness, and purchase of the Bissell brand was lower among pet owners than non-owners. Rowenta was the only brand whose consideration, awareness, and purchase was higher among pet owners than non-owners.
  • Interestingly, among pet owners, features such as suction power, versatility, and easy handling were more important than pet-focused features.

Latent Need for "Vacuum Wash Cleaners"

  • In France, Germany, the U.K., and Italy, 28%, 28%, 25%, and 15% of vacuum consumers were unaware of the "vacuum wash cleaners" category, respectively. The study also found that interest was developed after enlightenment/explanation among 9%, 8%, 6%, and 5% of consumers in Italy, France, Germany, and the U.K., respectively. These statistics indicated that there was "some latent need for vacuum wash cleaners" in the four countries, but only if Bissell educated consumers and created need.


15. Global Floor Cleaning Ideation & Concept Development: Idea Generation & Concepting Results | 29 November 2019

  • This PowerPoint presentation provides idea clusters from creative concepting efforts conducted by Brand Doctors. No insights or takeaways could be gathered from this document since the information is randomized. It is likely that the information in the document was further explained in a live presentation.


16. Consumables Category Review.zip

  • This zip folder contains the documents titled 'DC Machine and Formula Closure Rates for Top Retailers,' 'Target Deep Cleaning Formula Category Review: Walmart Slide Additions,' and 'Target Deep Cleaning Formula Category Review.' They have all been reviewed above.


17. Global Innovation 2019.zip

  • This zip folder contains the documents titled "Understanding the Five Drivers Shaping Megatrends," "Floor Cleaning Home Visits," and "Global Floor Cleaning Ideation & Concept Development: Idea Generation & Concepting Results." They have all been reviewed above.
Sources
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