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As the Steelers and Packers prepare to go head to head in Super Bowl XLV, the always anticipated showdown off the field will once again take place as advertisers battle to keep viewers glued to the TV during the commercial breaks.

According to Nielsen, nearly 48 minutes of paid television advertising (including the pre-game kick-off) ran during the 2010 Super Bowl. Last year’s game drew an estimated $219 million in advertising, trumping total regular season ad spend for most other major sports last year, excluding football. With sold out ad inventory for this year’s Super Bowl and such a diverse and massive pack of consumers expected to tune in, which advertisers stand the best chance of capturing the audience and getting the greatest return on their investment?

In a recent online survey of 500 U.S. consumers, Nielsen revealed that one in three respondents said they bought a product in the past 12 months based on seeing an ad for the product. Those who said they bought a product based on an ad were more likely to do so for certain product categories more than others. 68 percent of those surveyed said they bought food (CPG) products within the past year after seeing the product advertised, while 36 percent said they were compelled to buy beverages (hot/cold/soft drinks) after seeing an ad.

Ads for health/beauty products (cosmetics, hair products, personal hygiene, etc.) also resonated with more than half (51%) of consumers. In each of these categories, TV ads were cited as the most effective form of advertisement by far. 85 percent, 83 percent and 70 percent of respondents said TV commercials influenced them the most when purchasing beverages, food and health/beauty products, respectively.

This bodes well for three of the top five product categories that advertised in the 2010 Super Bowl and, after an estimated 48.5 million women watched last year’s game, presents a big opportunity for health and beauty companies to expand their reach. However, for longer-term purchases, such as personal finance services and cars, only 10 percent of consumers surveyed said they had bought either of those products based on exposure to an ad. Still, TV was cited as the most influential medium when deciding to purchase a car (32%), financial service (43%), pharmaceuticals (64%) or home electronics (57%).

Top 5 Product Categories (2010 Super Bowl Advertising)

RANK
Product Category
Ad Expenditure (000’s)

1 Automotives
$32,715.10

2  Beer
$32,715.10

3 Motion Picture
$16,357.55

4  Regular Soft Drinks
$14,870.50

5  Tortilla Chips
$11,896.40

Source: The Nielsen Company

Cuddly, Funny, Sexy Ads Most Effective in the Big Game
An analysis of Super Bowl ads airing over the past six years (2005-2010) reveals that commercials featuring animals, humor and scantily clad women often show higher resonance among males and females. “Resonance,” one of Nielsen’s “4 Rs” of advertising effectiveness (Reach, Receptivity, Resonance, Reaction), shows how well a campaign generated the desired viewer response to the brand. Nielsen data shows that men, in particular, can recall the brand advertised in beer commercials, while non-fatal violence (ie. people crashing into things or being slapped by each other) and collisions/explosions resonates better with women. Teens and young adults (13-34) are more receptive to funny ads, including those with non-fatal violence, while older viewers (35+) show higher recall for ads that feature animals and beer. Across the board, commercials focusing on automotives, charitable organizations, and football-related content do not resonate as strongly.

Most Recalled 2010 Super Bowl Ads (age 13-34)

RANK       Brand        Ad Description           Game Quarter               Recall Index

1   Snickers   Betty White and Abe Vigoda are tackled (:30)    Q1   166

2   Doritos   Man lays in casket full of snack chips (:30)   Q1  156

3   Budweiser   Survivors of plane crash party on deserted island (:45)   Q2   154

4   Budweiser  Man lives in house made of Bud Light (:30)   Q1   151

5   Denny’s   Chicken screams as woman blows out birthday candles (:15)   Q4   145

Source: The Nielsen Company.
The Recall score is the percentage of viewers who can recall the brand of an ad they were exposed to during the normal course of viewing the Super Bowl. These scores are then indexed against the average score for all Super Bowl ads (Recall Index).

Most Recalled 2010 Super Bowl Ads (age 35+)

RANK    Brand           Ad Description           Game Quarter    Recall Index

1   Doritos   Man lays in casket full of snack chips (:30)  Q1   153

2   Doritos   Dog takes off shock collar and puts it on man (:30)   Q1   150

3   Doritos   Young boy slaps mother’s date (:30)   Q4   143

4   Budweiser   Clydesdale and calf race each other along fence (:60)   Q2   142

5   GoDaddy.com   Newscaster shows Danica Patrick “how hot is too hot” (:30)   Q4   142

Source: The Nielsen Company.
The Recall score is the percentage of viewers who can recall the brand of an ad they were exposed to during the normal course of viewing the Super Bowl. These scores are then indexed against the average score for all Super Bowl ads (Recall Index).

Most Recalled 2010 Super Bowl Ads (Females)

RANK     Brand   Ad Description   Game Quarter   Recall Index

1   Snickers   Betty White and Abe Vigoda are tackled (:30)  Q1   162

2   Doritos    Dog takes off shock collar and puts it on man (:30)  Q1  155

3   Doritos   Man lays in casket full of snack chips (:30)   Q1   154

4   Budweiser   Clydesdale and calf race each other along fence (:60)   Q4   154

5   Budweiser   Town forms human bridge for delivery truck to drive over (:60)   Q2   150

Source: The Nielsen Company.
The Recall score is the percentage of viewers who can recall the brand of an ad they were exposed to during the normal course of viewing the Super Bowl. These scores are then indexed against the average score for all Super Bowl ads (Recall Index).

Most Recalled 2010 Super Bowl Ads (Males)

RANK
Brand
Ad Description
Game Quarter
Recall Index

1
Doritos
Man lays in casket full of snack chips (:30)
Q1
153

2
Doritos
Young boy slaps mother’s date (:30)
Q1
150

3
Denny’s
Chicken screams as woman blows out birthday candles (:15)
Q4
143

4
Budweiser
Survivors of plane crash party on deserted island (:45)
Q2
142

5
GoDaddy.com
Newscaster shows Danica Patrick “how hot is too hot” (:30)
Q4
142

Source: The Nielsen Company.
The Recall score is the percentage of viewers who can recall the brand of an ad they were exposed to during the normal course of viewing the Super Bowl. These scores are then indexed against the average score for all Super Bowl ads (Recall Index).

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Profitability ratio (Return on Capital Employed) help please?

I need to work out the return of captial employed for this business. I know the equation is as follows (sorry it is hard to read…. this is because I cannot do a fraction on yahoo):

Operating profit (or profit before tax) ÷ Total equity + non current liabilities

The operating profit is 16,762
Total equity is 33,780
And I am not given the non current liabilities.

How can I find out the non current liabilities? I am given:

Non-current (Fixed) Assets
Inventories (Stock)
Receivables (Debtors)
Cash
Current Liabilities
Net Current Assets (working capital)
Net assets
Share capital
Reserves

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When it comes to watching the Super Bowl, there’s no place like home. The great majority of U.S. households – 9 out of 10 – tell Nielsen they will be watching Super Bowl XLV at home or at a friend or relative’s house instead of watching it from a restaurant or bar. And while watching the game at home, only five percent of households expect to spend more than last year on food and beverages for the event, consistent with Nielsen’s findings in 2010.

“Consumers adjusted their behavior during the recession, and we see that trend playing out with the Super Bowl,” said James Russo, vice president, Global Consumer Insights at Nielsen. “Still very concerned about jobs and rising gas prices, consumers remain pragmatic with their spending. They are reducing their spending on entertainment and take-out, spending less on clothes and cutting back on expenses where they can, especially in mid to lower income households. That said consumers overall are cautiously optimistic so we don’t expect to see consumers cutting back as dramatically as they did last year.”

Nielsen’s survey of more than 60,000 U.S. households shows that 85 percent of Super Bowl viewers plan to spend the same amount or less on food and beverages for the Super Bowl this year, while only five percent plan to spend more.

The Most Popular Holiday for Beer Sales?  Not the Super Bowl.
While beer and football may seem like a perfect combination, the Super Bowl is not the most popular beer holiday in the U.S. Nielsen’s research shows that the Super Bowl ranks relatively low among holiday beer sales, after Labor Day, Memorial Day and the Fourth of July.

Snacks, Get Your Snacks
Super Bowl viewers stock their at-home parties with snacks, nearly 177 million pounds of snacks. The potato chip is the Super Bowl king of snacks, with nearly 46 million pounds sold.

“At-home Super Bowl viewing is an opportunity for grocery stores, mass merchandisers and other retailers selling food and beverage items,” said Russo. “The consumer is in control, now more than ever, and how food and beverage retailers demonstrate value and innovation to capture consumer spending, for big at-home viewing events like the Super Bowl or the Oscars is critical.”

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Don Kellogg, Senior Manager, Telecom Practice Research and Insights, The Nielsen Company

As of December 2010, nearly a third (31%) of all mobile consumers in the United States owned smartphones, cellphones with app-based, web-enabled operating systems. But smartphone penetration is even higher among mobile users who are part of ethnic and racial minorities in the U.S. – namely Asian/Pacific Islanders (45%), Hispanics (45%) and African-Americans (33%), populations that also tend to skew younger. Meanwhile, only 27 percent of White mobile users reported owning a smartphone.

Although only 42 percent of Whites who purchased a mobile phone in the past six months chose a smartphone over a feature phone, 60 percent of Asians/Pacific Islanders, 56 percent of Hispanics, and 44 of African Americans who recently bought cellphones chose smartphones.

The competition between smartphone operating systems is a heated one. When it comes to the installed base, that is, U.S. mobile consumers who already own smartphones, it is a three-way tie between Blackberry RIM, the smartphone pioneer, Apple’s IOS, which revolutionized the smartphone and popularized mobile apps, and Android OS, the operating system created by Google which has been taking the market by storm.

Analyzing the preferences of those who purchased a smartphone in the past six months paints a different picture, however, one in which Android is clearly in the lead with 43 percent of recent acquirers purchasing an Android device, compared to 26 percent for Apple iOS and 20 percent for Blackberry RIM.

Apple’s iOs is the favorite among U.S. smartphone owners who are Asians/Pacific Islanders. Thirty-six percent of Asian/Pacific Islander who own smartphones have iPhones. On the other hand, RIM Blackberry is preferred by 31 percent of African-American smartphone owners.

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John Lewis, President, Consumer North America, The Nielsen Company

Over the past few years, grocers have innovated in a number of ways to attract more customers: varying store formats fit different needs and spaces; loyalty programs coupled with gas savings drive traffic; and in-store kiosks, smartphone apps and other new media applications appeal to consumers’ passion for technology.

Store perimeters too have undergone significant change as part of this effort. The traditional bakery and produce sections, which have been expanded with organic and whole-grain products, are now joined by banks, health clinics, restaurants and other departments designed to bring more shoppers through the door and entice them to spend more time and money. Self-service checkout stations symbolize convenience. These and other moves focused on the perimeter have been successful in generating growth – more than 8 percent in perimeter sales growth in grocery stores.

But lost in all of this is one fundamental fact: the center store, which generates 73 percent of total store sales and 77 percent of profit, is actually showing declines on a same-store basis. Management practices that are based on a product view of the market cause competition between similar products and categories. In fact, one can argue that disproportionate investment in the perimeter can actually create a drag on total store sales and profits.

The net result is the traditional center store has become vulnerable to value retail players. Shoppers are fulfilling some of their needs in retail formats based on a product’s price. So cleaning supplies once bought as part of the weekly grocery trip might now be purchased at mass merchandisers, club or dollar stores with lower prices. For the grocery channel alone, over a five-year period ending June 2010, this channel blurring and consumer switching trend equated to $23 billion in lost opportunity due to lost trips.

Winning Consumers Back is Mission Critical
So what can grocers do to win back some of those trips? It begins with a strong focus on true shopper demand and leveraging the total store, moving away from product-centric category management and toward consumer-centric shopper management. While price, convenience, variety and shopping experience all play important roles in determining where consumers shop, only through a better understanding and leveraging of shopper needs and missions can the industry align around demand, deliver against current and future shopper needs, and win trips.

A new model for winning trips and to drive shopper loyalty is by focusing on what Nielsen calls the demand landscape. This requires a focus on true shopper demand. Simply put, shoppers plan their shopping missions based on need. Once retailers understand customers’ mission in and around their stores, they can create solutions targeted to those shoppers.

Fulfilling mission-based shopper demand requires a shift from a category management approach to one that revolves around shopper management. Consumers typically buy combinations of products across the store.

Innovate and Renovate
Consumers have responded positively to some innovations. Think about the way stores are organized for the holidays. Many retailers stock all of the food common to that time of year/event together in one place. Around Thanksgiving, for instance, stuffing, cranberry sauce, pumpkin pies, festive decorations, tableware and other items related to that holiday are grouped in one section, making it more convenient for the shopper to stock up on the merchandise necessary to fully celebrate the occasion.

Why not extend that concept beyond the holidays? Think of these typical needs – taco night or birthday parties. No single department or category can deliver against those needs alone. So what about developing fully integrated meal or event-driven sections, or simply in-aisle displays that include assortment from across the store along with a written and video-driven recipe center. One major food manufacturer has done just that by grouping their products along with complementary items into focused end cap displays, leading to a 30-70 percent incremental lift.

Another way retailers can rejuvenate center store is by establishing other mission-driven store sections, such as pet, entertainment, home cleaning, alcoholic beverages, health & beauty and housewares. “Stores within a store” provide consumers with a destination where they can complete their missions.

One leading grocer created an open-air store within a store focused on pets to attract the large number of shoppers who indicated that their shopping trips always began with a stop to restock their pet supplies. While the concept is still in its early stages, it has already yielded some impressive results: total pet department sales were up almost 15 percent, with sales of supplies and accessories up a tremendous 73 percent. What’s more, the establishment of this store within the store has increased shoppers’ likelihood of purchasing from the store as well as the perception that the retailer cares about pets and pet owners.

The Opportunity is Clear
While some of these ideas may not be new, there still is tremendous oppor
2000
tunity for all. The store within a store concept has been attempted in many cases, to mixed effect. But many of those efforts have been category focused (e.g., office supply, toy and dollar store sections) rather than shopper-centric solutions.

The magic lies in tailoring solutions to your local shopper needs. Shoppers want solutions that span the entire store, and winning retailers will be those who are flexible and adjust formats to cater to their needs at a mission level, not simply category-by-category. That means striking the right balance between perimeter and center store.  At the same time, winning manufacturers will be ones who help retailers provide these solutions with an eye on the total store, not one product. This shift from category management to shopper management is one way to drive shopper loyalty and total store growth.

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