UBC Shared Values • Centre for Interactive Research on Sustainability • Food Services: Fair trade campus, 53% local/organi • Direct farm to campus program • Water feature = biofiltration system Industry Growth • Fruit Juice: Rev $612M, Profits $84M = 13.8% margi • 6.8% growth next 5 years • Soft drink per capita consumption plummeting 10L/y • CBA 2009 High School guidelines eliminate soft dri O p p o s i t e T r e n d s Incre asing Demand Problem Identific ation
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UBC
Shared Values
• Centre for Interactive Research on Sustainability• Food Services: Fair trade campus, 53% local/organic• Direct farm to campus program• Water feature = biofiltration system
Industry Growth
• Fruit Juice: Rev $612M, Profits $84M = 13.8% margin• 6.8% growth next 5 years• Soft drink per capita consumption plummeting 10L/y• CBA 2009 High School guidelines eliminate soft drinks
Opposite
Trends
Increasing Demand
Problem Identification
AGENDA
AGENDASi
tuat
ion
Analysis
Met
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logy
& R
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Reco
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enda
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Impl
emen
tatio
n &
Outco
mes
Situ
ation
Analysis
Met
hodo
logy
& R
esul
ts
Reco
mm
enda
tions
Impl
emen
tatio
n &
Outco
mes
SITUATION ANALYSIS
Situational Analysis
• Customers: UBC students
• Distributor: Gordon Food Services• Delivery schedule: M W F @ noon
• Plenty of beverage substitutes offered on
campus• Main competitor: Odwalla (Coke)
PRODUCT AWARENESS & ATTITUDES:
1. Would awareness that HP is local affect attitudes towards the
brand?
2. Does the importance vary across groups?
3. Do students value local products?
4. Do students value organic products?
PRICE:
5. Does price awareness for students need to be increased?
6. Do students believe that Odwalla is a relatively cheaper
product?
7. Would changes in price lead to a change in demand behaviour?
8. Are students willing to pay a premium for local products?
SITUATION ANALYSIS
Initial Questions
• Limited to UBC campus
• Looking for stop gap solutions• Remove sales barriers
• Not necessarily promotions
• No authority to change packaging / price
• Client is Happy Planet, but in conjunction
with UBC Food Services
SITUATION ANALYSIS
Project Scope
Situ
ation
Analysis
Met
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logy
& R
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ChannelConsumer
Consumer behaviour survey
Store audits of UBC Food Services outlet
Interviews with store managers
METHODOLOGY
Two Pronged Approach
METHODOLOGY
Consumer Behaviour Survey
• Initial consumer outreach• Surveyed 108 students• Living on and off campus
Specifically investigated consumer’s:
a) Attitudes toward Happy Planet’s and competitor’s product
b) Willingness to payc) Perceived Priced) Individual purchase habits
METHODOLOGY
Store Audit Procedure
Total Monday Wednesday Thursday Friday0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
28.8% 28.9%25.8%
40.2%38.3%
71.2% 71.1%74.2%
59.8%61.7%
Relative Share of Shelf Facings
Happy Planet
Odwalla
28.8% of Total Facings
STORE AUDIT RESULTS
1 in 4 Facings
STORE AUDIT RESULTS
STORE AUDIT RESULTS
STORE AUDIT RESULTS
• Retailers satisfied with GFS service
• Need uniform pricing on campus
• Staff prefers Odwalla because:
1) Product taste
2) Stocks their own shelves convenience
• Reasons for not ordering HP products:
• Little difference from Odwalla
• Less demand from students
STORE AUDIT RESULTS
Manager Interviews
Situ
ation
Analysis
Met
hodo
logy
& R
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Reco
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RECOMMENDATIONS
Happy Planet
is not of the
shelf
Consumers
do not buy
it
Staff isn’t
ordering it
RECOMMENDATIONS
POINT OF SALE
CONSUMEROPERATIONAL
ProblemSolution
ProblemSolution
ProblemSolution
RECOMMENDATIONS
Not enough facings
• Aggressive Odwalla staff
• Takes over space
• No Price Awareness
POINT OF SALE
Problem
RECOMMENDATIONS
Research Analysis
Happy Planet Odwalla $-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$3.44
$3.02
$2.99
$3.79
Estimated vrs Actual Price
Est
imate
d
Act
ual
Est
imate
d
Act
ual
*Estimated value difference is statistically significant with P-value 0.00025
POINT OF SALE
RECOMMENDATIONS
Equalize playing ground
• Predefined, branded space on the shelves
• Drive Awareness: In-Store Display and End
Caps
• Enforcing equal facings rule
POINT OF SALE
Solution
RECOMMENDATIONS
Point of Sale: Implementation
End Cap Label
Branded Label
Store Price Tag
POINT OF SALE
Ike’s Café
$2.99
Tier 1
Tier 2
Tier 3
Solution
RECOMMENDATIONS
POINT OF SALE
CONSUMEROPERATIONAL
RECOMMENDATIONS
Lack of awareness• Price• Local• Health
Low Willingness to Pay
CONSUMER
Consumers are not considering the key product benefits at POSProblem
RECOMMENDATIONS
CONSUMER
Happy Planet Odwalla $-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$3.44
$3.02
$2.99
$3.79
Estimated vrs Actual Price
Est
imate
d
Act
ual
Est
imate
d
Act
ual
People may not be purchasing HP assuming it costs more
RECOMMENDATIONS
Domestic BC Domestic nonBC International Total0%
10%
20%
30%
40%
50%
60%
70%
43%
50%
23%
40%
13%
7%
19%
14%
44%43%
58%
47%
Regional Status Product Pref-erences
Happy Planet Odwalla No Preference
Canadians prefer HP International Students have no preference
*Statistically significant comparison with P-values between 0.002 and 0.038
CONSUMER
RECOMMENDATIONS
International Student Awareness
Canadian students International students
$3.55
$3.16 $3.18
$2.67
Price estimation HP Price estimation Odwalla
Canadians expect to pay more for smoothies
CONSUMER
RECOMMENDATIONS
Know it is made in BC Don't know Make an effort to purchase local Do not make effort
$2.83
$2.27
$2.68
$2.40
$2.58
$2.23
$2.47
$2.33
Higher awareness = Higher Willingness to Pay
Willingness to Pay for HP Willingness to Pay for Odwalla
CONSUMER
Branding is the primary winning point for Happy Planet
RECOMMENDATIONS
Brand Packaging Taste Local Healthy0
2
4
6
8
10
12
14
16
18
Explanation of Product Preference
Happy Planet Odwalla
CONSUMER
• Strong brand presence & differentiation• Indifference on taste
RECOMMENDATIONS
Price
Local
Health
CONSUMER
CommunicationGoals
Focus on communicating the three primary value pointsSolution
RECOMMENDATIONS
CONSUMER
• POS related solutions• Uniform pricing
• End-cap labels
• Brand Ambassador• UBC student opportunity
• Campaign (sampling events)• Beginning of term
• Midterm season
• Geo Targeting Digital Ad Words• Leverage existing campaigns
• Highlight 3 communication
goals for students
On-Campus InitiativesSolution
0%
20%
40%
60%
80%
100%100%
35%25% 25% 19% 10% 10%
Category Penetration
CONSUMER
RECOMMENDATIONS
Coffee near 100% penetration.Communicate “energize with nutrition, not just stimulants”.
RECOMMENDATIONS
CONSUMER
Energize your way through midterms
Take a smoothie instead of a coffee
Coffee near 100% penetration.Communicate “energize with nutrition, not just stimulants”.