Gira Dairy Club: Mature Market Opportunities for Dairy

GIRA Dairy ClubGeneva 13 September 2011Mature Market OpportunitiesPeter WennströmPresident and Expert consultant

©2011 Healthy Marketing TeamFor more information, please contact: [email protected]: www.thehmt.com

The HMT was founded as a joint venture between global branding agency DesignBridge and marketing strategy expert Peter Wennström.

The vision is to give clients expert guidance in the increasingly complex global landscape of nutrition health and wellness ! from category direction to creative strategy. The mission is to help clients to better targeted launches and faster projects by understanding the reasons for failures and successes.

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What is happening in Europe now

and how will we be selling

healthy dairy products in 2013?

Our world before EFSA

Functional foods were developing as a promise of a prosperous future

Consumers were looking for enhanced products and health claims were believed to support them at the moment of their choice, making obvious to them which product had more value added

Then EFSA came

But our world after EFSA it s not so dire

Let s not make this too complicated(your consumer doesn t want you to)

They think a claim is a straight line to the consumer and that s not the case. - Michele Kellehals, Innovation Director Functional Ingredients Coca Cola

The consumer doesn t place the same value on health claims as you do.

I DON T REALLY CARE

I don t really care about

your health claims, about your active ingredientsand your new benefits-my life is complicated

enough already!

I m often confused about what to eat in order to stay healthy

2000 2003 2005 2008

Germany 24% 24% 20% 23%Netherlands 28% 13% 21% 13%France 26% 35% 40% 33%UK 34% 31% 27% 18%

All data ©2010 Health Focus International ! reproduction prohibited

2010 data now available from Health Focus®Contact [email protected]

FRANCE 2008: 33%

One third of consumers are confused about how to eat healthier

I m tired of expertstelling me what is good for me

2000 2003 2005 2008

Germany 38% 37% 35% 49%

Netherlands 43% 45% 45% 51%

France 43% 43% 45% 39%

UK 46% 49% 55% 53%

All data ©2010 Health Focus International ! reproduction prohibited

2010 data available from Health Focus®Contact [email protected]

UK 2008: 50%

Half of consumers are tired of experts!

I don t believe you!Don´t tell me what is good for me

Strong agree / agree

UK 2008

Germany2008

France2008

Netherlands2008

Poland2008

I don t believe many of the health

claims made on

food packages

48% 44% 43% 42% 52%

Almost half of consumers distrust claims!

All data ©2010 Health Focus International ! reproduction prohibited

2010 data now available from Health Focus®Contact [email protected]

UK 2008: 48%

I DON T REALLY CARE

I don t really care about

your health claims, about your active ingredientsand your new benefits-my life is complicated

enough already!

What DO I care about?

Let s take a look at some

CONSUMER data.

I m tired of expertstelling me what is good for me

The Elephant in the room..

The Society Perspective:Need for a preventive approach

MEDICINE

COST

FOOD

"unh

ealth

"

The bill:

©Bjerndell/Wennström

Medical care:Treatment, Medication, Surgery, Care

Prevention : Healthy lifestyle information, Supplements, Functional Foods, choice of foods

The Science Perspective:Need for a Wellness focus

MEDICINE

NUTRITION

:

©Bjerndell/Wennström

ILLNESS MARKERS

WELLNESS MARKERS:

So how can we make it happen for our brands categories?

What is the space your category and your occupy in the mind of the consumer?

That space is your starting point!

Dairy: It s significance for European Consumers

Health claims were intrinsically related to consumers understanding of the benefits

In the case of dairy products, the

GOODNESS OF MILK understanding

should be consider as an advantage.

It happens in those 3 dimensions:

Physical:What can I physically feel? What does

the product do to my body?

Intellectual:What do I know milk is good for?

-Strong bones, growing stronger, etc

Emotional:1.Personal relevance associated with

nurturing

2.Cultural relevance in most cultures

milk has an intrinsic cultural meaning

GOODNESS OF MILK

Social

Mythic

Cultural

Rational

Emotional With such a rich Significance, does dairy

really need health claims?

Dairy: It s significance for European Consumers

Dairy is still considered the GOLD STANDARD nutritional food for children in most European markets

The Category Essence of milk is still Natural and Healthy

After a long focus on low fat and carbohydrates, the trends are moving back to protein and full fat in a natural diet.

Hence, the opportunity to leverage the above and innovate with Dairy Based Solutions in Early Massmarket in these markets is significant.

Similarly, the need to keep loyalty of traditional mass market consumers is vital

Five key Market Entry Strategies

Five Market Entry Strategies with varying Innovation quotients & Marketdisruption ability:

Market Entry Strategy Relevance for Mass Markets

Leveraging hidden nutritional assets

New category creationNot relevant for Mass Market

New segment creation

Category substitution

The functional foods make-over Not relevant for Early Mass

Market

So how can we make it happen for our brands?

Kaiku - Removing barriersIncrease permissibility of milk and introducing a new segment

Kaiku Leveraging milk goodness and removing barriers to consumption

Avonmore leveraging goodnessBuilding a portfolio by leveraging essential milk goodness for all life stages

Avonmore MilksUsing consumer knowledge to brand and own the ubiquitous milk benefit in a Avonmore way

Avonmore MilksBackground

One of the largest milk brands inIreland.

The range is fortified withCalcium, Vitamins includingVitamin D and other essentialnutrients, including low fat milk,whole milk, milk fortified withfolic acid to aid healthypregnancy.

Avonmore portfolio boasts a range of milks to complement every lifestyle with SuperMilk, Slimline, Milk Plus Probiotic LGG, Low Fat and Fresh Milk.

Avonmore MilksUsing consumer knowledge to brand and own the ubiquitous milk benefit in a Avonmore way

Avonmore: Key Success Factors

Avonmore has strengthened it s Market Leader

position in the milk category in Ireland by

product innovations in it s range using the

strategy of Leveraging Milk s Nutritional Assets.

It continues to keep the brand relevant among

Mass Market stakeholders by being consistent to

it s origins as a brand strong in Irish provennace

and connected to local communities.

Sponsoring:- The successful Kilkenny hurling team.

- Munster schools rugby.

- Barretstown camp for children recovering

from serious illnesses, pledging to raise 2

million for the charity.

Activia preparing for post EFSAMoving from health claims to consumer education.

What does this sign means to you?

Translating the benefit into a mnemonic short hand

Activia targeted constipation and digestive irregularity.

They have a product where you are able to FEEL the benefit and were able to communicate that through demonstration.

Danone did this through imagery in the form of a slimed waist and yellow arrow. They also conducted a two week challenge to test the felt benefit.

Benefit development: Activia

Introducing the brand and the problem with a health claim

Activia with Bifidus RegularisHelps regulate your digestive system

Focusing on communicating the benefit, supported only by the active ingredient

With the Brand and the Benefit established, it s possible to communicate with less cues and no claims

Activia Brand Evolution: From Problem to Pleasure

Phase1. Targeting constipation and digestive irregularity

Brand Message & Symbolism: Owning Transit

Phase 2. Demonstrate Effectiveness

Brand Message & Activation: Feel the benefit

Phase 3. Expand Range to offer pleasure through digestive comfort

Brand Message & Extensions: Fits into My Life In many Pleasurable Ways

The Rules for a successful market entry

1. Remember the Category Significance and Category Essence of Milk and hence Dairy in the old market.

2. Understand the consumer s needs and the changing trends and how

that opens for new expectations on dairy. Be prepared to increase

permissibility of dairy by removing barriers like fat, lactose and

industrial processes.

3. Then determine the Role of the Brand as well as it s Market Entry Strategy to create a relevant and competitive dairy marketing mix to

serve both the Early and the Traditional Mass Market consumer.

4. Innovate and create value by leveraging and fitting into new habits

and needs by innovation in packaging and distribution. Position dairy as

a substitution to other categories.

In sum Know the Consumer! Listen to Her! Understand her Context!

So remember

It s NOT the end of the world!

Thank you

Peter WennströmPresident and Expert consultant

©2011 Healthy Marketing TeamFor more information, please contact [email protected] www.thehmt.com