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Functional Food as a New Trend in Consumer Behaviour Final Project Presentation 2015-04-22 Nitra, Slovakia

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Page 1: Presentation DB

Functional Food as a

New Trend in Consumer

BehaviourFinal Project Presentation

2015-04-22

Nitra, Slovakia

Page 2: Presentation DB

Scope of the presentation

Theoreticalbasis

Practical insights

Background of the study

Conclusions and

contributions

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Introducing the

subject matter

of the final

project

Theory of

consumer

behaviour and

functional food

Functional Food

market overview,

marketing

approaches and

consumer attitudes

toward Functional

Food

Based on the

outcomes of

the study

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1. Background of the study (1/2)

The need of the study at a

glance

Interest in the theory of consumer

behaviour, applied marketing

approaches,

Health of consumers,concerns,

Diseases reduction, healthier

population,

Healthy food market has been booing

over the years (1bn € by 2017),

30 % of food companies interested in

the healthy food production.

Research activities

performed Literature review referring both to

marketing and food sciences,

Mystery shopping,

Determining the functional food

marketing essentials on practical

examples,

Conducting questionnaire,

Statistical analysis using SAS EG,

Conclusions and contributions based on

research outcomes.

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1. Background of the study (2/2)

Main aim of the study To examine consumer attitudes toward

Functional Food

Supporting procedure –

Hypotheses Testing H1: Economic activity x consumer

dietary habits perception,

H2: Gender x awareness of functional food concept,

H3: Factors influencing consumers while considering functional food product purchase are perceived differently,

H4: There are differences in attitudes toward Functional Food concerning to health risks reduction possibilities.

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2. Theoretical basis (1/4)

Consumer behaviour theory Interdisciplinary science,

The essential attention is paid to the

consumer and his/her choices,

What,

When,

How often,

Under what kind of circumstances

decisions are made.

Factors influencing

consumer behaviour Cultural (culture, sub-culture, social

class),

Social (references groups, family, role

and status within the society),

Personal (age, economic activity, self-

concept and personality),

Psychological (motivation, beliefs,

learning).

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2. Theoretical basis (2/4)

Functional Food Functional Food has beneficial effects

on one or more functions in the body

beyond adequate nutritional effects,

Invented in 1980s in Asia,

It is consumed as a part of normal diet

– NO pill, capsule or any kind of dietary

supplement,

Improve human health and well-being.

What makes it functional?

Presence of functional compounds,

By taking out potentially harmful

components (lactose, gluten...),

Increasing amount of nutrients and

non-nutrients (calcium, fibre,

vitamin C),

Using beneficial materials in food

production (stomach-friendly

bacteria in dairy products).

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2. Theoretical basis (3/4)

Functional ingredient Food source Potential effect on health

β-glucan Oats lower blood cholesterol, postprandial glycaemic response,

aid weight control

Conjugated linoleid-acid (CLA) Cheese, meat products improve body-fat composition, enhance immune system,

lower risk of cancer

Flavonoids Tea, fruit, vegetables neutralise free radicals, lower risk of cancer

Lycopene (carotenoid) Tomatoes lower risk of prostate cancer, in particular

Omega 3-fatty acids Salmon, fish oils lower risk of cardiovascular diseases, improve mental and

visual functions

Phytoestrogens Soy beans and soy-based foods increase symptoms related to menopause, protect against

heart disease and cancers, lower both LDL and total

cholesterol, improve bone mineral density

Plant steols, stanols, stanol esters Corn, soy, wheat, wood oils reduce absorption of cholesterol in body and hence lower

blood cholesterol levels (both LDL and total cholesterol by

≈ 10 %)

Prebiotics (e.g. inulin or fructoligosaccharides) Jerusalem artichokes, shallots, onion (powder) stimulate the growth of certain bacteria in the colon while

not digested by the gut, improve gastrointestinal tract

health

Probiotics (or live bacteria e.g. Lactobacillus

Acidophilus)

Yoghurt and other dairy products improve quality of intestinal microflora and gastrointestinal

tract health subsequently

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2. Theoretical basis (4/4)

Market segmentation „add well to your life“ – improvement

of regular stomach or/and colon

function,

„reduce existing health risks – lowering

high cholesterol or blood pressure,

„make your life easier – lactose and

gluten free products.

Marketing approaches Life marketing – creates holistic health

image, promotes added value of

products and well-being of a consumer

(eye-catching colours, pictures, food

claims),

Death marketing – relates to special

diseases or state of health such as

lowering LDL cholesterol (factual,

objective and scientific based

communication.

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3a. Market overview– „add well to your

life“ (1/2)

Dairy products

Activia and Actimel product lines,

PROBIA and ACIDKO product lines,

MILKO grécky jogurt,

Green Sheep, Kozí vŕšok sheep and

goat milk yoghurts,

Živý jogurt.

Beverages

RIO fresh product line,

Diva´s Functional Water,

Vitamin Well Water product line,

AÇAICO drinks,

Little Miracles drinks product line,

Spelto, spelt drink.

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3a. Market overview– „add well to your

life“ (2/2)

Functional

Food Product

Price per

package

Price per l Conventional

Alternative

Price per

package

Price per l

RIO Fresh

Pineapple

Juice

2,59,- per 1 l - RIO 100 %

Pineapple Juice

1,69,- per 1 l -

Little Miracles

tea drink

1,89,- per 0,33

l

≈ 5,97,- NESTEA Ice Tea 1,05,- per 0,5l 2,10,-

Fruxi Fresh 0,59,- per 0,30

l

1,97,- Relax 100 %

Orange Juice

1,69,- per 0,25l 6,76,-

RAJO Mlieko

Plus (whole

milk)

1,49,- per 1 l - Rajo Mlieko

(whole milk)

1,09,- 1 l -

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3b. Market overview– „reduce existing

health risks (1/2)

Flora product line

Flora pro.activ – cornerstone of the

segment, lowering cholesterol

spread,

Functionality is scientifically

based,

R&D costs – more than 50 mil. USD,

Flora by-products.

Other „similar“ products

Aiming to attract consumer in a

similar fashion as Flora products,

Scientific evidence is misssing,

Rama MultiVita, DELÍČKO, Veto fit,

Perla Plus Vitamíny.

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3b. Market overview– „reduce existing

health risks (2/2)

Functional Food

Product

Price per package Price per kg Conventional

Alternative

Price per package Price per kg

Flora pro.activ 2,79,- per 200 g 13,95,- not applicable

Flora 1,45,- per 250 g 5,80,- Rama Classic 1,19,- per 400 g 2,98,-

Flora Gold 1,80,- per 400 g 4,73,- Perla Maslová

príchuť

1,39,- per 500 g 2,78,-

Flora Light 1,69,- per 400 g 4,23,- Perla Tip 0,99,- per 500 g 1,98,-

Veto Vitamíny 1,15,- per 400 g 2,76,- Veto Maslová

príchuť

1,15,- per 400 g 2,76,-

Perla Plus Vitmíny 1,39,- per 500 g 2,78,- Perla s príchuťou

farmárského masla

1,39,- per 500 g 1,39,-

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3c. Market overview – „make your life

easier“ (1/2)

Lactose and gluten free

products

MinusL product line

RAJO Lakto Free product line,

Lacto Minus milk by Tami,

ALPRO product line,

Lacto Zero yoghurt,

Lactose and gluten free Reis Drink.

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3c. Market overview – „make your life

easier“ (2/2)

Functional Food

Product

Price per package Price per kg (l) Conventional

Alternative

Price per package Price per kg (l)

MinusL

“Butterkäse”

3,29,- per 150 g 21,93,- Tekov Salámovy

syr plátky,

neúdený

1,75,- per 150 g 11,67,-

MinusL

“Milchpudding

Schoko”

2,99,- per 4x125g 5,98,- Danette Mliečny

desert čokoláda

1,89,- per 125 g 3,78,-

MinusL

“Käsecreme”

2,29,- per 200 g 11,45,- Karička Rodinka

roztierateľný

tavený syr

1,59,- per 150 g 10,48,-

Tami Lactose

Minus milk (semi-

skimmed)

1,29 per 1 l - Tami Tatranské

polotučné mlieko

0,99,- per 1 l -

ALNAVIT Schoko-

Cookies

1,99,- per 125 g 15,92,- Milka Cookies 2,29,- per 184 g 12,45,-

Rajo Lakto Free

cream

0,79,- per 200 ml 4,45,- Rajo Smotana na

varenie 10 %

0,49 ,- per 180 ml 2,72,-

ALPRO Soya

dessert caramel

0,87,- per 125 g 6,96,- Rajo Delissimo

desert karamelový

0,59,- per 150 g 3,93,-

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4. Life marketing approach

Features

Bright colours,

Eye-catching pictures,

Positive wording,

Nature, pureness,

Freshness.

Healthy food claims

Meaningful drinks to do you good,

All you need is inside,

Elixir of your life,

Think fresh,

Breakfast for your immunity,

It is time to live!

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5. Death marketing approach

Features Heart-shaped logo,

Clinically proven sign,

Recommended by society of doctors sign,

Big logo pro.activ referring to functionality of the product,

Trademarks inform about Omega 3/6 fatty acids content,

70 % less saturated fats than butter.

Health claims

The most important – „actively

lowers cholesterol SCIENTIFICALLY

PROVEN claim,

„help to keep your heart healthy“,

„contributes to the normal level of

LDL cholesterol in blood“.

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6. Conclusions based on the outcomes of

the project (1/2)

Hypotheses Testing no relationship between economic

activity of consumers and healthy dietary habits perception,

In a word, men and women recognise the FF concept to the same extent,

factors influencing consumer behaviour towards functional food are perceived equally,

consumer perception of functional food in terms of health risks reduction possibilities is equally distributed across presented health risks reduction categories.

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6. Conclusions based on the outcomes of

the project (2/2)

Core findings

49 % respondents consider their eating habits as rather healthy,

50 % have problems to maintain healthy diet (due to lack of time and financial matters),

40 % have not heard about Functional Food yet,

Probiotic yoghurts came into their minds at first, after providing the definition of functional food,

More than a half of people would prefer to buy regionally produced food instead of functional food

Consumers would be willing to pay more for such products (10-30 %),

Vital factors influencing consumer behaviour are committed to health benefits, overall well-being and health risks reduction,

Consumers buy well-established products with a functional base (yoghurts especially),

There is uncertainty in regard to FF consumption in case of good state of health.

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7. Recommendations and contributions

(1/2)

the appropriate attention should

be paid to food innovations and

research to make a contribution to

the food sector development by

such a cooperation,

to produce highly-innovative

products with the potential to

meet consumer needs changing

over the time, and thus to reflect

of latest market situations,

to raise the awareness about functional food concepts by conducting edutainment campaigns both at national and the European level (e.g. information campaigns),

to emphasise the importance of healthy way of life as a major precondition to higher quality of life (contribution to the decreasing costs of health care system e.g. by social marketing campaigns promoting healthier way of life),

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7. Recommendations and contributions

(2/2)

to devote more space to the topics

related to healthy life style and healthy

food in the high schools and thus to

educate the young generation,

to emphasise the importance of

nutrition and all related issues within

the society (discussions across the

society – university experts,

professionals from world of business

and policy-makers),

in regard to Slovak academic environment, more attention should be paid to this particular filed of interests, as it implies many areas for scientific activities (in food sciences, marketing, business economics, innovation thinking) both home and abroad,

provided information could be used in professional practice to obtain a comprehensive insight into current trends on the food market, in particular in the functional food segment.

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Now, it is your turn! Please, ask

questions!

Bc. Dávid Bielik, BSc.

In case of further interest in the subject matter of the project, please, do not hesistate to contact me!

[email protected]

+421 910 499 757

be.linkedin.com/in/dbielik

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