Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Recession dampens sales from 2008-10
- Green products and Hispanic population offer prospects for future growth
- Private-label offerings build share at the expense of national brands
- Segment sales trends
- Toilet tissue is leading segment
- Paper towels posts solid growth from 2008-10
- Facial tissues and napkins show weak sales and lose share
- Moist towelettes is fast-growing, but small, segment
- Mass merchandisers move into the lead
- Three largest suppliers command three quarters of market
- Brand shares by segment show rise of private-label brands
- Innovations seen in packaging, new products and retail approaches
- Brand qualities vary with product type
- Advertising strategies and major campaigns of 2009-10
- Consumer trends: buying and usage
- Paper towels
- Napkins
- Toilet paper
- Facial tissue
- Consumer attitudes and purchase behavior
- Brand allegiance varies with product type, gender, age and income
- Strength, softness and absorbency required
- Attitudes towards reusable and eco-friendly products
- Race/Hispanic origin significant in shaping usage and attitudes
Insights and Opportunities
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- Green products offer growth prospects
Inspire Insights
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- Trading Up, Trading Down, Trading Over
- What it’s about: The recession is shifting our perceptions of value and purchasing habits
- Just clean it up—with anything
- Reusable consumers
- Eco and Ego
- What it’s about: Are we authentically concerned with being green, or does it just make us feel better about our consumption choices?
- Greenvenience
- Home as Self
- What it’s about: We invest so much in our homes that they become a reflection of us
- Be a décor partner…
- …but maintain core brand equities
Market Size and Forecast
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- Key points
- Recession hits market driving down sales since 2008
- Paper napkins and facial tissues weakest segments in 2009-10
- Private-label offerings likely to maintain share
- Growth prospects in recycled products, wipes and with young, non-white
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- Figure 1: Total U.S. sales of household paper products, at current prices, 2005-15
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- Figure 2: Total U.S. sales of household paper products, at inflation-adjusted 2010 prices, 2005-15
- Walmart sales
Market Drivers
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- Key points
- Growth of U.S. households slows in 2008-09
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- Figure 3: Total number of U.S. households, 2001-09
- Consumers cut expenditures in climate of economic uncertainty
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- Figure 4: University of Michigan’s Index of Consumer Sentiment (ICS), 2001-10
- Over two thirds reduce household spending in 2009 to save money
- Majority of consumers make changes to reduce spending on paper products
- Recycled and eco-friendly paper products offer opportunity for further growth
- Colds and flu can drive demand for tissue and for products used in household cleaning
Competitive Context
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- Key points
- Reusable products compete with paper products
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- Figure 5: FDMx sales and forecast of sponges, cleaning pads and cloths, 2004-14
- Innovations in renewable products include versatility and eco-friendliness
- Disposable cleaning wipes compete with paper towels
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- Figure 6: FDMx sales and forecast of cleaning cloths/wipes, 2004-14
- Clorox introduces heavy-duty wipes
- Private-label products compete with national brands
- National brands introduce basic, high-value products
- Private-label offerings embrace more specialized products
Segment Performance
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- Key points
- Toilet tissue slows, paper towels grows, facial tissues and napkins fall
- Younger buyers and parents propel strong growth for towelettes
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- Figure 7: FDMx sales and forecast of household paper products, by segment, 2005-15
- Figure 8: FDMx sales and forecast of household paper products, by segment, 2008 and 2010
Segment Performance—Toilet Tissues
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- Key points
- Price increases and brand allegiance shape five-year growth
- Economizing leads sales to fall in 2010
- Sales and forecast of toilet tissues
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- Figure 9: Total U.S. sales and forecast of toilet tissues, 2005-15
Segment Performance—Paper Towels
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- Key points
- Paper towels outperforms market, drawing sales from other segments
- Promoting recycled materials and focus on healthy living may drive sales
- Sales and forecast of paper towels
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- Figure 10: Total U.S. sales and forecast of paper towels, 2005-15
Segment Performance—Facial Tissue
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- Key points
- Competition from other segments and private labels drive down sales
- Sales and forecast of facial tissue
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- Figure 11: Total U.S. sales and forecast of facial tissues, 2005-15
Segment Performance—Paper Napkins
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- Key points
- Limited brand allegiance and economizing efforts drive down sales
- Sales and forecast of paper napkins
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- Figure 12: Total U.S. sales and forecast of paper napkins, 2005-15
Segment Performance—Moist Towelettes for Hands and Face
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- Key point
- Moist towelettes offer exceptional growth
- Innovations drive interest in the segment
- Sales and forecast of moist towelettes
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- Figure 13: Total U.S. sales and forecast of moist towelettes, 2005-15
Retail Channels
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- Key points
- Mass merchandisers emerge as dominant channel
- Supermarkets lose ground despite strong use by older, affluent consumers
- “Other” retailers comprise fastest-growing retail channel
- Sales of household paper products by retail channel
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- Figure 14: Total sales of household paper products, by retail channel, 2005-10
- Figure 15: U.S. retail sales of household paper products, by retail channel, 2008 and 2010
Retail Channels—Supermarkets
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- Key points
- Once dominant channel loses ground to mass merchandisers
- Supermarkets offer range of private-label products
- Supermarket sales of household paper products
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- Figure 16: U.S. supermarket sales of household paper products, at current prices, 2005-10
Retail Channels—Mass Merchandisers
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- Key points
- Target offers standout graphics and playful packaging
- Walmart offers varied private-label brands and promotes sustainability
- Sam’s Club and Costco offer private label and bulk packaging
- Mass sales of household paper products
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- Figure 17: U.S. mass sales of household paper products, at current prices, 2005-10
Retail Channels—Other Retailers
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- Key points
- Drug stores offer wide range of private-label offerings
- Convenience stores and dollar stores also develop store brands
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- Figure 18: U.S. other retailer sales of household paper products, at current prices, 2005-10
Leading Companies
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- Key points
- Procter & Gamble leading supplier, followed by Kimberly-Clark
- Growth in private-label brands at the expense of the major suppliers
- Manufacturer sales of toilet tissues, paper towels, facial tissue, paper napkins, and moist towelettes
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- Figure 19: Manufacturer FDMx sales of toilet tissues, paper towels, facial tissue, paper napkins, and moist towelettes, 2009 and 2010
Brand Share—Toilet Tissues
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- Key points
- Scott Naturals offers best performance for K-C
- P&G shows small gain in share
- Georgia-Pacific’s Angel Soft gains market share
- Moist tissues show poor sales for all three major suppliers
- Private-label offerings gain market share
- Manufacturer and brand sales of toilet tissues
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- Figure 20: Selected brand FDMx sales and market share of toilet tissues, 2009 and 2010
Brand Share—Paper Towels
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- Key points
- National suppliers lose share to private labels
- P&G has leading share with Bounty
- Kimberly-Clark loses market share
- Georgia-Pacific posts declines in sales
- Private label shows strongest growth in the segment
- Manufacturer and brand sales of paper towels
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- Figure 21: Selected brand FDMx sales and market share of paper towels, 2009 and 2010
Brand Share—Facial Tissue
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- Key points
- Kleenex leads segment, but loses share
- P&G’s Puffs sees sales fall and share stagnate
- Irving-Scott sees share in decline
- Private-label offerings expand reach
- Manufacturer and brand sales of facial tissue
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- Figure 22: Selected brand FDMx sales and market share of facial tissue, 2009 and 2010
Brand Share—Paper Napkins
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- Key points
- Georgia-Pacific continues loss of market share
- Building on strong brand presence in paper towels, Bounty performs well
- Hoffmaster offers specialty products
- Private-label offerings expand lead in segment
- Manufacturer and brand sales of paper napkins
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- Figure 23: Selected brand FDMx sales and market share of paper napkins, 2009 and 2010
Brand Share—Moist Towelettes for Hands and Face
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- Key points
- Private label drives growth in the segment
- Playtex’s Wet Ones remains dominant national brand
- Kimberly-Clark sees sales fall
- Manufacturer and brand sales of moist towelettes
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- Figure 24: Selected brand FDMx sales and market share of moist towelettes, 2009 and 2010
Innovation and Innovators
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- Key points
- Innovations in sizing and packaging
- Innovations in design
- Licensing agreements in kid-oriented products
- New wipe products with kid-friendly packaging and lotions
- Eco-friendly products
- Kleenex hand towels carve out new area for product usage
- Launch of soap.com may change retail landscape
Marketing Strategies
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- Overview and key points
- Marketing themes
- Babies and cute animals to suggest softness, vulnerability of toilet paper brands
- Paper towel brands tend to emphasize toughness, strength and performance
- Tissue brands focus on design, femininity and health of kids
- Company and brand activity
- Cottonelle and Charmin Ultra use puppies and cartoons in toilet paper ads
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- Figure 25: Brand analysis of Cottonelle, 2010
- Figure 26: Cottonelle toilet tissue, TV ad, 2009
- Charmin offers long history and touts high value
- Angel Soft showcases softness and strength in toilet paper
- Cottonelle’s humorous, irreverent multi-platform Great Debate Ad Campaign
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- Figure 27: Cottonelle “great debate” tissue, TV ad, 2010
- Cottonelle social media
- Bounty
- Benefits from brand history and showcases value
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- Figure 28: Brand analysis of Bounty, 2010
- Quality promoted on TV
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- Figure 29: Bounty paper towels, TV ad, 2010
- Bounty and P&G’s innovative use of website with dinnertool.com
- Kleenex offers varied activity
- Showcases how its products help protect kids
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- Figure 30: Brand analysis of Kleenex, 2010
- Figure 31: Kleenex facial tissue, TV ad, 2010
- Promotes hand towels for the bathroom as cleaner alternative to cloth
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- Figure 32: Kleenex hand towels, TV ad, 2010
- Outreach to Hispanics with design competition and other programs
- Kleenex social media
- Scott Naturals presents “Green Done Right”
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- Figure 33: Scott Naturals, TV ad, 2010
- Promoting charities and causes
Consumer—Usage Trends, Consumption Patterns, Purchase Locations
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- Key points
- Trended data show drop in napkin usage from 2004-09
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- Figure 34: Household paper consumption, by product type, 2004-09
Consumer—Types, Brands and Volume Usage
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- Paper towels
- Key points
- Household paper consumption
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- Figure 35: Types and brands of paper towels used, by household income, February 2009-March 2010
- Usage averages about a roll of paper towel per week
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- Figure 36: Volume of paper towels used, by household income, February 2009-March 2010
- Household size and children in household drives use of paper towels
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- Figure 37: Volume of paper towels used, by household size and presence of children, February 2009-March 2010
- Paper napkins
- Key points
- Almost half report using store brand napkins
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- Figure 38: Brands of paper napkins used, by household income, February 2009-March 2010
- Lower-income households use the most paper napkins
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- Figure 39: Volume of paper napkins used, by household income, February 2009-March 2010
- Household size and kids drive use of paper napkins
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- Figure 40: Volume of paper napkins used, by household size and presence of children, February 2009-March 2010
- Toilet paper
- Key points
- Charmin brand leads in toilet paper
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- Figure 41: Brands of toilet paper used, by age, February 2009-March 2010
- Upper-income households show higher use of Charmin
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- Figure 42: Brands of toilet paper used, by household income, February 2009-March 2010
- Household size drives demand for toilet tissue
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- Figure 43: Volume of toilet paper used, by household size and presence of children, February 2009-March 2010
- Facial tissues
- Key points
- Household paper consumption
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- Figure 44: Types and brands of facial tissues used, by age, February 2009-March 2010
- Larger households and those with children use the most tissue
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- Figure 45: Volume of facial tissue used, by number of people in household and presence of children, February 2009-March 2010
Where Household Paper Products Are Bought
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- Key points
- Location where purchased
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- Figure 46: Source of household paper products, by age, June 2010
- Income shapes retailer choice
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- Figure 47: Source of household paper products, by household income, June 2010
- Larger households turn to Walmart and warehouse stores
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- Figure 48: Source of household paper products, by household size and presence of children, June 2010
Brand vs. Private-label Purchasing
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- Key points
- Brand choice
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- Figure 49: National vs. store brand household paper brand purchase habits, by gender and age, June 2010
- Income shapes likelihood of purchasing national brands
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- Figure 50: National vs. store brand household paper brand purchase habits, by household income, June 2010
- One-person households buy fewer products and fewer national brands
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- Figure 51: National vs. store brand household paper brand purchase habits, by household size and presence of children, June 2010
Reasons for Buying National Brands
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- Key points
- Strength, softness and absorbency key qualities in toilet tissue
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- Figure 52: Reasons for choosing national brand toilet tissue, by gender and age, June 2010
- Strength and absorbency top qualities for paper towels
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- Figure 53: Reasons for choosing national brand paper towels, by gender and age, June 2010
- Strength and absorbency top qualities for napkins
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- Figure 54: Reasons for choosing national brand paper napkins, by gender, June 2010
- Softness is key for facial tissues
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- Figure 55: Reasons for choosing national brand facial tissue, by gender and age, June 2010
Attitudes Towards Household Paper Purchase, Economizing and Usage
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- Key points
- Attitudes and practices
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- Figure 56: Household paper product purchasing economizing attitudes and practices, by gender and age, June 2010
- Income shapes the primacy placed on price
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- Figure 57: Household paper product purchasing attitudes and practices, by household income, June 2010
- Household size and presence of children have significant impact on attitudes
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- Figure 58: Household paper product purchasing attitudes and practices, by household size and presence of children, June 2010
Effect of the Recession on Purchasing
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- Key points
- Majority make changes to economize
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- Figure 59: Effect of the recession on household paper product purchases, by gender and age, June 2010
- Efforts to economize strong for households with income less than $100K
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- Figure 60: Effect of the recession on household paper product purchases, by household income, June 2010
- Larger households buy in bulk
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- Figure 61: Effect of the recession on household paper product purchases, by household size and presence of children, June 2010
Attitudes Towards Household Paper Purchase and Environmental Concerns
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- Key points
- Those aged 18-34 show strongest interest in eco-friendly products
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- Figure 62: Eco-friendly purchasing attitudes and practices, by gender and age, June 2010
- Income drives interest in “green” products
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- Figure 63: Eco-friendly purchasing attitudes and practices, by household income, June 2010
- Larger households and families undertake more “green” practices
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- Figure 64: Eco-friendly purchasing attitudes and practices, by household size and presence of children, June 2010
- Interest in “green” options rises with educational attainment
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- Figure 65: Eco-friendly purchasing attitudes and practices, by level of educational attainment, June 2010
Impact of Race and Hispanic Origin
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- Key points
- Napkin brand choice varies with race/Hispanic origin
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- Figure 66: Brands of paper napkins used, by race/Hispanic origin, February 2009-March 2010
- Blacks and Hispanics use more napkins
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- Figure 67: Volume usage of paper napkins, by race/Hispanic origin, February 2009-March 2010
- Blacks and Hispanics use more toilet paper
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- Figure 68: Volume usage of toilet paper, by race/Hispanic origin, February 2009-March 2010
- Variations seen in facial tissue preferences
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- Figure 69: Types and brands of facial tissues used, by race/Hispanic origin, February 2009-March 2010
- Usage of facial tissue higher among blacks and Hispanics
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- Figure 70: Volume of purchase of facial tissue, by race/Hispanic origin, February 2009-March 2010
- Attitudes vary with race/Hispanic origin
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- Figure 71: Household paper product purchasing attitudes and practices, by race and Hispanic origin, June 2010
- Asians and Hispanics economize
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- Figure 72: Impact of recession on household paper product purchases, by race and Hispanic origin, June 2010
- Asians and Hispanics undertake more “green” practices
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- Figure 73: Eco-friendly attitudes and practices, by race and Hispanic origin, June 2010
Cluster Analysis
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- Paperless, economically unaffected
- Demographics
- Characteristics
- Opportunities
- Price-sensitive, store-branded
- Demographics
- Characteristics
- Opportunities
- National branders
- Demographics
- Characteristics
- Opportunities
- Characteristic tables
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- Figure 74: Household paper clusters, June 2010
- Figure 75: Source of household paper products, by household paper clusters, June 2010
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- Figure 76: National vs. store brand household paper brand purchase habits, by household paper clusters, June 2010
- Figure 77: Household paper product purchasing economizing attitudes and practices, by household paper clusters, June 2010
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- Figure 78: Effect of the recession on household paper product purchases, by household paper clusters, June 2010
- Demographic tables
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- Figure 79: Household paper clusters, by gender, June 2010
- Figure 80: Household paper clusters, by age, June 2010
- Figure 81: Household paper clusters, by household income, June 2010
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- Figure 82: Household paper clusters, by race, June 2010
- Figure 83: Household paper clusters, by Hispanic origin, June 2010
- Cluster methodology
Custom Consumer Groups
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- Key points
- National brands most popular among blacks with higher household income
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- Figure 84: National vs. store brand household paper brand purchase habits, by race and household income, June 2010
- High household income non-Hispanic consumers more eager for national brands
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- Figure 85: National vs. store brand household paper brand purchase habits, by Hispanic origin and household income, June 2010
- Children help men be more aware of toilet paper quality
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- Figure 86: Reasons for choosing national brand toilet tissue, by gender and presence of children, June 2010
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- Figure 87: Reasons for choosing national brand paper towels, by gender and presence of children, June 2010
- Men without kids already know why to buy national brand facial tissues
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- Figure 88: Reasons for choosing national brand facial tissue, by gender and presence of children, June 2010
IRI/Builders Panel Data—Key Household Purchase Measures
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- Paper towels
- Consumer insights on key purchase measures—paper towels
- Brand map
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- Figure 89: Brand map, selected brands of paper towels, buying rate, by household penetration, 2009*
- Brand leader characteristics
- Key purchase measures
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- Figure 90: Key purchase measures for the top brands of paper towels, by household penetration, 2009*
- Toilet tissue
- Consumer insights on key purchase measures—toilet tissue
- Brand map
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- Figure 91: Brand map, selected brands of toilet tissue, buying rate, by household penetration, 2009*
- Brand leader characteristics
- Key purchase measures
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- Figure 92: Key purchase measures for the top brands of toilet tissue, by household penetration, 2009*
- Facial tissue
- Consumer insights on key purchase measures—facial tissue
- Brand map
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- Figure 93: Brand map, selected brands of facial tissue, buying rate, by household penetration, 2009*
- Brand leader characteristics
- Key purchase measures
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- Figure 94: Key purchase measures for the top brands of facial tissue, by household penetration, 2009*
- Paper napkins
- Consumer insights on key purchase measures—paper napkins
- Brand map
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- Figure 95: Brand map, selected brands of paper napkins, buying rate, by household penetration, 2009*
- Brand leader characteristics
- Key purchase measures
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- Figure 96: Key purchase measures for the top brands of paper napkins, by household penetration, 2009*
- Moist towelettes
- Consumer insights on key purchase measures—moist towelettes
- Brand map
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- Figure 97: Brand map, selected brands of moist towelettes, buying rate, by household penetration, 2009*
- Brand leader characteristics
- Key purchase measures
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- Figure 98: Key purchase measures for the top brands of moist towelettes, by household penetration, 2009*
- Baby wipes
- Brand map
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- Figure 99: Brand map, selected brands of baby wipes, buying rate, by household penetration, 2009*
- Brand leader characteristics
- Key purchase measures
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- Figure 100: Key purchase measures for the top brands of baby wipes, by household penetration, 2009*
Appendix: Trade Associations
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