1 Project Dairy – chapter 1 of 3 A consumer research programme to test and promote awareness of health and nutritional advantages and preferences of milk and other dairy products
Feb 20, 2016
1
Project Dairy – chapter 1 of 3
A consumer research programme to test and promote awareness of health and nutritional advantages and preferences of milk and other dairy products
2
Product awareness and usage(Chapter 1)
Purchasing and
consumption(Chapter 3)
Product positioning and loyalty(Chapter 2)
Highlights(Chapter 1)
Meet your sample
(Chapter 1)
Site map
Typologies(Chapter 3)
Technical background(Chapter 1)
Knowledge about dairy
products(Chapter 3)
Post-debrief value-add
(Chapter 3)
3
Unpacking business vs. research objectives
To promote viability of the dairy industry from a national point of
view
Research objective
s
Business objective
Marketing objective
• To identify the usage incidence, product awareness, drivers of consumption and overall perceptions of specific dairy categories
on a national level• To identify any confusions that exist regarding dairy products• By uncovering the answers to these questions provide insight for future strategic planning
Dairy categories will consist of: Fresh milk, UHT milk, fermented milk, milk powder, baby milk powder, flavoured milk, yogurt, cheese, sweetened condensed milk, butter, cream, buttermilk.
• Consumers should be informed of the health and nutritional advantage of milk and other dairy products and misconceptions
regarding these issues should be eliminated
4
Research solution: Quantitative methodology
Information needs
• Optima brand and category audit.
• Cost effective way• Shorter questionnaire• Optima format lends itself to communication evaluation, testing public opinion and incidence investigation•Tailored questions to comply with information needs
Approach
Product awareness
Sampling method
• Random household sample• 3500 adults- metro and rural area•16 years and older• Living in residential homes in South Africa• All races and geographical areas• Data is weighted to population
Drivers of consumptions
Usage incidence
Overall perceptions
Confusions or information needs of
consumers
A sample of 3 500 is the optimal sample for a national study: This sample is the minimum required to represent all community-size levels (i.e. metropolitan, cities, large towns, deep rural) in all provinces of SA at an allowable error of maximum 5% at a 95% level of confidence.A sample of 3 000 will provide accurate results at a national level, but accurate representation of non-metropolitan areas will be compromised, and analysis at these levels would not be possible.
Demographics: Including LSMs, income, household composition, education, gender, age,
etc.
5
Meet your sample
6
Home language
Race
Age
Meet your sample:
Gender
Zulu, 24 Xhosa, 17Afrikaans, 15
English, 10
N. Soth., 9
S. Soth., 8
Tsw., 8
Other, 10
25 - 34 years, 22 35 - 49 years, 30 50 years +, 2919 - 24 years, 19
Female, 50 Male, 50
Black, 75 Indian, 3White, 13
Coloured, 9
%
36% (mostly black, non-metro households) do not have a fridge/freezer in home
(Pop. (wt.) (‘000s) =31 540)
7
LSM
Work status
Education
Meet your sample:
Gross monthly
household income
Some high school, 36
No schooling, 8
Some primary school, 15
Primary school completed, 8 Matric, 22 Post matric, 10
%
(Pop. (wt.) (‘000s) =31 540)
Working full-time, 33 Working part-time,
9
Not working, 31 Unemployed, 27
Don't know/refused, 23
Up to R1 199, 27 R1 200 - R3 999, 27 R4 000+, 23
LSM 9 - 10, 16LSM 1 - 3, 26 LSM 4 - 5, 29 LSM 6 - 8, 29
• Two thirds of those who don’t know their household income, or refused first-time round, have household incomes of less than R6 000 p.m.
• One in five adults have more than 2 under-18-year-olds under personal supervision.
Subsisting Surviving Aspiring Advantaged
8
Highlights
9
Highlights
It’s not what you look at that matters, it’s what you see.
Henry David Thoreau
The dairy leaders are: Fresh full-cream milk, maas, normal yoghurt, gouda/cheddar and full-cream UHT milk. These products have a wide age range and, except for maas which is used predominantly by blacks and LSM 1 - 5, wide racial and LSM profile.
Fresh full-cream milk (in hot drinks, with porridge) and maas (any time of day and meal replacement) are most likely candidates for future increased per capita consumption.
Yoghurt (though seen as healthy) might lose out, as might butter (though it tastes nice).
Gouda/cheddard is attractive, but really expensive.
Interestingly, 2 in 5 buy fresh milk or maas once a month…
General market and usage dynamics
Under 19 year olds account for large proportion of dairy consumption, except for UHT fat-free and buttermilk.
Core usage of low-fat 2% fresh milk is a good indicator of a wide dairy repertoire: Yoghurt, a variety of cheeses, cream, butter, cheese spread, and low-fat UHT milk.
Normal yoghurt and drinking yoghurt often interchange. Core maas users are also likely to use normal yoghurt.
Affordability is the key reason for lapsing products – especially cheeses, cream and butter face this fate.
Taste also plays a role in rejection, especially of UHT fat-free milk.
Fresh or UHT fat-free or low-fat milk looks watery and thin.
10
Highlights
It’s not what you look at that matters, it’s what you see.
Henry David Thoreau
General market and usage dynamics (continued)
If fresh full-cream milk becomes unavailable, UHT full-cream milk will be a likely stand-in, and vice versa.
The same interchangeability exists amongst cheese, normal/drinking yoghurt (respectively) and fresh/UHT low-fat milk.
Margarine is an obvious stand-in for butter.
More than 50 per cent consumers don’t know the fat content of full-cream milk.
The average guess is 45% fat – and it’s not really seen as better than derived fats and oils or fastfood.
People want to know more about the production process of milk, pasteurization and whether there are quality differences amongst brands.
Knowledge gaps
11
Highlights
It’s not what you look at that matters, it’s what you see.
Henry David Thoreau
Perceptual and experiential drivers of choice – 5 key products
Fresh full-cream milk: Priced well, popular with everyone, always in home, grew up with, straight from the cow. Doesn’t look as thick and creamy as maas
Maas: convenient meal replacement, well-priced, popular, straight from the cow, grew up with. Packs don’t have enough info
UHT full-cream milk: Helps digestion, popular, always in home, straight from the cow. Does not contain right amount of salt
Yoghurt: Product that children love, convenient meal replacement. Does not enhance the taste of food, not value for money.
Gouda/cheddar: Not positively driven by any market factor, but is seen as high in cholesterol and for rich people. Packaging is of poor quality, and does not contain enough info (both key drivers). Too expensive (key driver).
12
Product awareness and usage
13
Product awareness and usage route map
• Helicopter view• Brand profiles
– By age– By race– By LSM
• Reasons for rejecting products without trial (“never tried before, not interested in trying”)
• Changes in dairy product consumption
14
A helicopter view of the market
53
17
14
5
2
1
25
29
51
10
56
11
7
13
27
12
18
13
10
21
17
18
7
10
31
22
1
7
2
9
3
3
4
9
11
5
8
5
4
5
6
3
13
5
7
5
19
5
1
2
5
6
1
9
2
8
6
5
2
3
17
8
31
11
38
12
31
34
19
25
1
6
2
24
3
8
7
33
27
6
101
1
1
2
2
4
50
Fresh milk - full cream
UHT/Long-life milk - full cream
Maas/Amasi/Inkomaas/sour milk
Fresh milk - low fat or 2% milk
Normal yoghurt
Baby milk powder
Gouda and Cheddar cheese
Fresh milk - fat free milk or skimmed milk
UHT/ Long-life milk - low fat or 2%milk
Sweetened condensed milk
Butter
USE MOST OFTEN USE OCCASIONALLYUSED IN PAST HAPPY TO USE AGAIN NEVER TRIED WOULD LIKE TO USED IN PAST WOULD NOT LIKE TO USE AGAIN NEVER TRIED NOT INTERESTED ONLY KNOW BY NAME NEVER HEARD OF
%
(Pop. (wt.) (‘000s) =31 540)
Full-cream milk accounts for the largest volume of dairy consumption. 2% milk, or fat-free or skim milk suffer from low awareness, but not out-right rejection. Maas and yoghurt are more likely to be used occasionally rather than most often. Lapsing or rejection of dairy is low, except for condensed milk and baby milk powder.
15
Key product portfolios: What do respective core users also use occasionally?
TOTAL
Fresh milk - full cream
UHT milk - full cream
Maas
Fresh milk - low fat/ 2%
Gouda/ Cheddar
Normal yoghurt Butter
Pop (wt.) (000's) 31540 16664 5373 4491 1543 485 501 349
% % % % % % % %
Normal yoghurt 56 57 62 48 72 56 0 42
Maas 51 62 70 0 34 43 35 54
Gouda and Cheddar cheese 50 53 50 33 72 0 48 51
Drinking yoghurt 34 35 35 27 45 47 50 25
UHT/Long-life milk - full cream 29 38 0 38 17 23 34 32
Butter 27 31 19 15 48 23 31 0
Fresh milk - full cream 25 0 57 63 33 69 46 46
Cream 19 23 13 8 42 10 22 11
Cheese spread 18 21 12 7 34 16 22 21
Sweetened condensed milk 13 15 11 5 17 21 9 7
Use most oftenUse occasionally
Significantly higher than average
Core user’s most likely alternative (and significantly higher than occasional usage average)
Slide 1 of 2; mentions of 7% or higher (occasional usage) shown; products with raw bases of 50+ (most-often usage) shown
16
Key product portfolios: What do respective core users also use occasionally?
TOTAL
Fresh milk - full cream
UHT milk - full cream
Maas
Fresh milk - low fat/ 2%
Gouda/ Cheddar
Normal yoghurt Butter
Pop (wt.) (000's) 31540 16664 5373 4491 1543 485 501 349
% % % % % % % %
Feta cheese 12 13 7 3 39 11 15 10
Baby milk powder 11 10 20 13 5 4 5 8
Cottage cheese 10 11 6 3 35 9 14 11
Fresh milk - low fat or 2% milk 10 12 6 4 0 12 7 12
Flavoured milk 9 11 8 3 21 7 13 4
Other cheese 8 7 3 6 20 11 9 7
UHT/ Long-life milk - low fat or 2%milk 7 5 8 3 33 4 5 4
Use most oftenUse occasionally
Slide 1 of 2; mentions of 7% or higher (occasional usage) shown; products with raw bases of 50+ (most-often usage) shown
Significantly higher than average
Core user’s most likely alternative (and significantly higher than occasional usage average)
17
Top ten footprint leaders - age profiles
18
19
21
16
18
20
16
12
13
14
23
23
23
23
22
24
24
21
23
23
31
30
31
33
32
34
30
36
36
31
28
28
25
28
27
22
30
30
28
32
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Fresh milk - full cream
Maas/Amasi/Inkomaas/sour milk
Normal yoghurt
Gouda and Cheddar cheese
UHT/Long-life milk - full cream
Drinking yoghurt
Butter
Cream
Cheese spread
Fresh milk - low fat or 2% milk
16-24 25-34 35-49 Above 50
Age profiles are evenly spread across the top 10 footprint leaders. With cream there is a slight leaning towards 35+ year olds, and with drinking yoghurt the age profile is younger.
Older
Younger
Profiles are based on most-often/occasional users of each respective product
(Pop. (wt.) (‘000s) =31 540)
18
14
20
10
9
21
11
13
11
15
12
19
14
24
34
19
17
25
21
27
19
17
18
29
26
31
30
39
38
33
29
31
35
31
36
14
35
31
16
32
36
22
39
29
36
37
34
37
24
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Sweetened condensed milk
Baby milk powder
Feta cheese
Cottage cheese
Flavoured milk
UHT/ Long-life milk - low fat or 2%milk
Other cheese
Buttermilk
Fresh milk - fat free milk or skimmed milk
UHT/ Long-life milk - fat free or skimmed milk
Organic milk
Nutritionally enhanced milk
16-24 25-34 35-49 Above 50
Bottom twelve footprint leaders - age profiles
With more niche dairy products one sees clearer age segmentation: Young families are likely to use baby milk powder. Flavoured milk is marketed to young consumers, and very specialised, new products like “other cheese” and “organic milk” appeal mostly to younger consumers
Older
Younger
Younger
Younger
Younger
Older
Older
Older
Older
Profiles are based on most-often/occasional users of each respective product
(Pop. (wt.) (‘000s) =31 540)
19
Top ten footprint leaders - race profiles
76
92
68
60
77
66
60
45
47
43
12
2
18
21
9
15
22
31
29
34
3
3
3
5
2
5
7
8
7
6
9
3
11
14
11
14
12
16
17
17
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Fresh milk - full cream
Maas/Amasi/Inkomaas/sour milk
Normal yoghurt
Gouda and Cheddar cheese
UHT/Long-life milk - full cream
Drinking yoghurt
Butter
Cream
Cheese spread
Fresh milk - low fat or 2% milk
Black White Indian Coloured
Maas and UHT full cream have a stronger bias towards black consumers than average. Low fat 2% milk, cheese spread and cream have strong white and coloured biases. Gouda/cheddar and drinking yoghurt are additional favourites amongst coloureds.
Profiles are based on most-often/occasional users of each respective product
(Pop. (wt.) (‘000s) =31 540)
20
Bottom twelve footprint leaders - race profiles
43
88
23
25
31
41
38
38
37
39
50
59
27
3
55
52
31
31
32
29
35
34
34
26
9
1
8
8
14
4
9
7
4
4
6
0
21
7
14
16
24
24
21
26
23
24
10
15
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
15. Sweetened condensed milk
14. Baby milk powder
21. Feta cheese
20. Cottage cheese
9. Flavoured milk
5. UHT/ Long-life milk - low fat or 2%milk
22. Other cheese
11. Buttermilk
3. Fresh milk - fat free milk or skimmed milk
6. UHT/ Long-life milk - fat free or skimmed milk
8. Organic milk
7. Nutritionally enhanced milk
Black White Indian Coloured
Feta and cottage cheese have strong white bias, whilst baby milk powder is largely used by black consumers.
Profiles are based on most-often/occasional users of each respective product
(Pop. (wt.) (‘000s) =31 540)
21
Top ten footprint leaders - LSM profiles
24
32
19
13
29
14
12
8
6
4
30
35
26
24
27
26
22
11
13
13
31
27
34
37
29
38
37
39
43
43
15
6
21
26
14
22
29
41
38
40
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Fresh milk - full cream
Maas/Amasi/Inkomaas/sourmilk
Normal yoghurt
Gouda and Cheddar cheese
UHT/Long-life milk - fullcream
Drinking yoghurt
Butter
Cream
Cheese spread
Fresh milk - low fat or 2%milk
LSM 1-3 LSM 4-5 LSM 6-8 LSM 9-10
Compared to age and race, LSM segments provide a clear way of segmenting dairy products: Maas and UHT full cream have a strong presence in LSM 1-3 (Subsisting) and LSM 4-5 (Surviving); In LSM 6-8 (Aspiring) and LSM 9-10 (Advantaged), cheese spread, cream, butter and 2% milk play significant roles.
Profiles are based on most-often/occasional users of each respective product
(Pop. (wt.) (‘000s) =31 540)
22
Bottom twelve footprint leaders - LSM profiles
12
36
1
1
4
7
6
12
4
11
23
19
15
32
7
4
13
13
14
10
13
13
14
19
36
24
29
37
43
37
33
42
35
23
35
51
37
8
63
57
41
42
47
36
48
53
28
10
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
15. Sweetened condensed milk
14. Baby milk powder
21. Feta cheese
20. Cottage cheese
9. Flavoured milk
5. UHT/ Long-life milk - low fat or 2%milk
22. Other cheese
11. Buttermilk
3. Fresh milk - fat free milk or skimmed milk
6. UHT/ Long-life milk - fat free or skimmed milk
8. Organic milk
7. Nutritionally enhanced milk
LSM 1-3 LSM 4-5 LSM 6-8 LSM 9-10
Baby milk powder has its significant market in LSM 1 – 5. The remaining low-footprint dairy products, with very niche products amongst them (e.g. feta cheese, nutritionally enhance milk, etc.), generally have a presence in LSM 6 or higher.
Profiles are based on most-often/occasional users of each respective product
(Pop. (wt.) (‘000s) =31 540)
23
TOTAL
Baby m
ilk powder
Fresh milk - low
fat or 2% m
ilk
Fresh milk - fat free m
ilk or skimm
ed milk
UH
T/ Long-life milk - fat free or skim
med
milk
Sw
eetened condensed milk
Maas/A
masi/Inkom
aas/sour milk
Butterm
ilk
UH
T/ Long-life milk - low
fat or 2%m
ilk
Pop (wt.) (000's) 20184 2244 1505 2070 1398 1217 1104 1104 1072
% % % % % % % % %
Too expensive / not affordable 13 9 2 3 5 15 2 16 4
Dislike the taste 10 5 14 18 23 3 12 12 16
Do not know the brand/product 8 1 5 2 5 5 1 20 3
Not interested 8 68 3 6 7 5 10 7 9
For babies 8 2 0 0 0 0 0 0 0
Dislike it 8 5 9 6 8 14 14 8 4
Looks watery 8 0 17 29 28 0 0 1 15
Happy with what I am using / prefer other product 7 2 15 7 4 4 0 3 11
Fat free / contains no fat / low fat 6 9 18 17 24 0 0 0 17
General dislike of smell 5 0 0 1 2 1 22 7 1
Have never tried before 5 0 2 3 3 9 4 5 3
Not easily available 5 2 3 2 6 7 0 8 6
Reasons for rejecting products without trial (Slide 1 of 2; mentions of 5% or higher shown; products with raw bases of 50+ shown)
Significantly higher than average
Product associated most with comment
24
TOTAL
Organic m
ilk
Flavoured milk
Nutritionally enhanced m
ilk
Cream
Cottage cheese
Feta cheese
Cheese spread
Butter
Drinking yoghurt
Gouda and C
heddar cheese
UH
T/Long-life milk - full cream
Pop (wt.) (000's) 201841054 1031 890 757 724 712 673 515 478 461 445
% % % % % % % % % % % %
Too expensive / not affordable 13 7 11 15 33 25 32 35 64 10 35 11
Dislike the taste 10 5 10 2 4 7 8 9 2 8 8 6
Do not know the brand/product 8 34 13 31 6 16 13 2 1 0 6 2
Not interested 8 16 16 10 12 7 7 9 5 6 9 16
For babies 8 0 2 1 0 0 0 0 0 4 0 0
Dislike it 8 10 11 3 1 4 10 16 7 2 24 8
Looks watery 8 0 1 1 1 0 1 0 0 16 0 2
Happy with what I am using / prefer other product 7 13 10 2 4 5 2 8 7 7 4 5
Fat free / contains no fat / low fat 6 0 0 0 0 0 2 0 0 0 0 0
General dislike of smell 5 4 4 2 0 13 7 4 5 0 24 6
Have never tried before 5 9 6 6 8 6 5 1 7 8 0 16
Not easily available 5 8 2 8 14 4 7 4 11 7 2 0
Reasons for rejecting products without trial (Slide 2 of 2; mentions of 5% or higher shown; products with raw bases of 50+ shown)
Significantly higher than average
Product associated most with comment
25
Key facts about product rejection and substitution
Key reasons for rejection are price, taste and lack of knowledge.• Baby milk powder: general disinterest; targeted at a very specific market
(mothers with babies)• Fresh milk, 2% fat, or fat-free/skim: Dislike fat-free or low-fat products; looks
watery• UHT – fat free or skim, 2% fat: Similar to above; people dislike the taste• Maas/Amasi/Inkomaas/sour milk: People dislike smell• Buttermilk: Little-known product• Organic milk: Unknown• Butter, nutritionally enhance milk, all cheeses: Too expensive (esp. butter)• Gouda and cheddar: People dislike the smell
26
40
28
17 16 16
10
7
1012
7
10
7
31
24
16 16
19
7
Fresh milk (fullcream)
Maas Normal yoghurt UHT/Long-life milk- full cream
Gouda andCheddar cheese
Butter
Use more of Using less of Should use more often of in the future
Changes in dairy product consumption – 6 leading products (slide 1 of 3)
%
(Pop. (wt.) (‘000s) =31 540)
Fresh full cream milk (particularly LSM 6-8) and maas (particularly LSM 4–5) are the leaders in stated future increased consumption. There is robust interest in Gouda and Cheddar (bar pricing issues), especially amongst LSM 9-10. Yoghurt had the highest count for “using less of”, and in net terms future interest seems flat (and only 2% use it most often). This product is confined to LSM 9-10.
27
96 5 5 4 3
95 4 4 3 2
8 7 6 5 3 2
Drinking yoghurt Cream Cheese spread Fresh milk - low fator 2% milk
Feta cheese Baby milk powder
Use more of Using less of Should use more often of in the future
Changes in dairy product consumption (slide 2 of 3)
%
(Pop. (wt.) (‘000s) =31 540)
28
3 2 2 2 2 1 1 1 16
3 2 2 2 2 2 1 13 4 3 2 2 3 2 2 2
Sweetenedcondensed
milk
Cottagecheese
Flavouredmilk
Othercheese
Fresh milk -fat free milkor skimmed
milk
UHT/Long-life milk -low fat or2%milk
Buttermilk UHT/Long-life milk - fat
free orskimmed
milk
Organic milk
Use more of Using less of Should use more often of in the future
Changes in dairy product consumption (slide 3 of 3)
%
(Pop. (wt.) (‘000s) =31 540)
29
TOTAL
Fresh milk - full cream
Maas/A
masi/Inkom
aas/sour milk
Gouda and C
heddar cheese
Norm
al yoghurt
UH
T/Long-life milk - full cream
Butter
Drinking yoghurt
Cream
Sw
eetened condensed milk
Pop (wt.) (000's) 20279 4955 4586 2006 1853 1423 1097 805 671 475
% % % % % % % % % %
Healthy 13 16 10 13 18 4 8 14 1 4
Tastes good / tasty 10 9 11 15 9 8 15 13 10 5
Use with cereals/porridge 8 17 10 3 0 8 2 1 0 1
Good for (growing) children / children like it 8 4 10 5 20 7 6 16 3 0
Good for the whole family / family like it 7 9 8 6 10 7 3 3 1 2
Drink with tea/coffee / enhance the taste of tea/coffee 6 21 0 1 0 9 0 0 3 11
Affordable / cheap 5 5 10 2 3 4 4 7 3 4
Creamy 5 5 7 2 3 10 6 2 5 0
Enjoy it/like it 5 3 7 5 13 2 3 2 9 7
Versatile e.g. can cook with it, use with everything 5 7 2 4 6 3 12 1 15 3
Reasons for increasing consumption (Mentions of 5% or higher shown; products with raw bases of 50+ shown)
Significantly higher than average
Yoghurt's chief perceived benefit is that it’s good for children. Full cream fresh milk enhances the taste of hot drinks.
30
TOTAL
Fresh milk - full cream
Maas/A
masi/Inkom
aas/sour m
ilk
Gouda and C
heddar cheese
Norm
al yoghurt
UH
T/Long-life milk - full cream
Butter
Drinking yoghurt
Cream
Sw
eetened condensed milk
Pop (wt.) (000's) 20279 4955 4586 2006 1853 1423 109
7 805 671 475
% % % % % % % % % %
Expensive / cannot afford 11 3 6 26 13 15 19 16 17 17
Only eat occasionally/drink occasionally 4 3 5 4 4 0 2 5 15 1
Do not have a fridge / has to be stored in a fridge 2 4 1 4 1 0 2 0 0 0
Not always available 2 1 1 1 4 2 3 6 0 2
Other (More of...) 2 1 1 5 2 0 3 2 1 1
Reasons for decreasing consumption (Mentions of 2% or higher shown; products with raw bases of 50+ shown)
Significantly higher than average
The main reason for decreasing consumption is pricing, especially in the Gouda/Cheddar category and butter. Cream is a product people would use only on occasion.