Project Dairy – chapter 1 of 3

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


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


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


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


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


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%



Normal yoghurt



Drinking yoghurt

Butter

Cream

Cheese spread


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


(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%



Normal yoghurt



Drinking yoghurt

Butter

Cream

Cheese spread


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.


(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.


(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%


Maas/Amasi/Inkomaas/sourmilk

Normal yoghurt


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.


(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.


(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)


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)


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


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


Changes in dairy product consumption (slide 3 of 3)

%

(Pop. (wt.) (‘000s) =31 540)

29

TOTAL


Maas/A

masi/Inkom

aas/sour milk

Gouda and C

heddar cheese

Norm

al yoghurt

UH


Butter

Drinking yoghurt

Cream

Sw


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)


Yoghurt's chief perceived benefit is that it’s good for children. Full cream fresh milk enhances the taste of hot drinks.

30

TOTAL


Maas/A

masi/Inkom

aas/sour m

ilk

Gouda and C

heddar cheese

Norm

al yoghurt

UH


Butter

Drinking yoghurt

Cream

Sw


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)


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.

Documents

Project Dairy – chapter 1 of 3