6216951 NBS-MC12 Buyer Behaviour Wei-Ching Wang

8/2/2019 6216951 NBS-MC12 Buyer Behaviour Wei-Ching Wang

1/24


2/24

0

Behavioural Aspects of Benecol Spread

NBS-M12

Module Organiser: Dr. Georgios Chrysochoidis

Word Count: 3075

Student No. 6216951

28/02/2012


3/24

1

Contents

Section Page

Executive Summary 2

Introduction 3

Background 4

- Market of Functional Food 4- Benecol Background 5

The situation of Benecol Spread 6

The Influential factors of consumers behaviour 11

- Consumer outline 11- Product benefits 12

Recommendation 14

- Product 14- Price 15- Place 16- Promotion 17

Conclusion 18

Reference 20


4/24

2

Executive Summary

Recently, functional food has become a new healthy solution for the public.

However, there are several parts that food companies should be noticed

when sell it. Consumer behaviour could be generalized in different sectors.

People are influenced by various reasons, such as intrinsic consumers age,

gender, income, and education level and external environment and product

benefit. Previous literatures and reviews have provided some evidences

about the interaction between each aspect.

EU food regulations cause functional foods in an embarrassing situation that

products can not be promoted the benefit directly and consumers lack of

knowledge about it. However, there are some alternative solutions for

companies. By understanding consumer and their need, companies should

first address the issue that consumers need more information about products.

Companies could provide some soft messages instead of saying curative

effect directly, as well as this, increasing the brand popularity. In conclusion,

functional food has its potential market and the market which could probably

keep increasing in the future. Only when the company continue focus market

trend and communicate with the mass, it could win the majority of the

market shar


5/24

3

Introduction

As the economic development change rapidly, the structure of modern

society has changed dramatically. People enjoy the pleasant from the

convenience; however suffer the drawbacks which come with the easy and

comfortable situation. Cancer, cardiovascular disease, and obesity, for

instance, the modern diseases all bother human. Although these illnesses are

because various reasons, such as inherit, environment, and diet, doctors and

nutritionist suggest that people should eat food with more nutrients and

vitamins. As well as this, the public has noticed the impact and seek the

better regime.

According to this, food companies try to meet consumers demand. Under the

premise, functional food is launched to provide a healthy lifestyle for public.

Recently, this market has grown more and more prosperous which provide an

opportunity for relative industry. However, functional food is not only to

satisfy human needs, but also to provide a positive attitude. By eating better,

people prevent the nutrition-related diseases and reinforce their physical

resistance. In this report, it intends to discover the factors of consumer

behaviour when purchasing functional food.


6/24

4

Background

- Market of Functional foodFunctional food is considered as a solution for the public to absorb more

desirable ingredient from daily diet. It is first promoted in Japan in 1984

(Siro et al. 2008). A food can be regarded as functional if it is satisfactorily

demonstrated to affect beneficially one or more target functions in the body,

beyond adequate nutritional effects, in a way that is relevant to either

improved stage of health and well-being and/or reduction of risk of disease.

A functional food must remain food and it must demonstrate its effects in

amounts that can normally be expected to be consumed in the diet: it is not a

pill or a capsule, but part of the normal food pattern. (Diplock et al. 1999)

Functional food has been introduced to the market in softdrinks,

confectionery, diary, bakery and babyfood market. In Figure 1, it illustrates

that functional food has a significant increase in Germany from 1995 to 2000.

In the end of the period, there are about 301 million US$ in yoghurt. Moreover,

since consumers attempt to have a better quality diet for health, functional

food has regarded as a major opportunity for food industry for the following

years (Hasler, 1998).


7/24

5

In Europe, the market volume is about 4-8 billion US$; nevertheless, the

market share of functional food is less than 1% of the total food and drinks

market (Menrad, 2003). Germany, France, and UK are the major consumption

region, and the total figure is higher than two thirds of all in Europe (Table 1).

Regard to the UK market, functional food has been experienced considerable

progress and can be considered as one of the most important market in

Europe.

Table 1: Function dairy products in Europe by country 1999 (Source: Hilliam, 2000)

Figure 1: Market development of functional dairy products in Germany (Sources: Biester, 2001; Hilliam, 2000a;

Menrad, 2000).


8/24

6

- Benecol BackgroundBenecol is belonged to Raisio Group which is founded in 1939, and

manufacture markets foods, functional food ingredients, animal feeds and

brewery malts as well as food diagnostics (DATAMNITOR 2011). Benecol

launched the first non-dairy spread in 1996 which is a positive revolution in

Europe, especially in the original Finnish market, and in the UK and Ireland

(DATAMNITOR 2000). High levels of cholesterol can lead to high blood

pressure, blood clots and heart disease. The most serious cause of death in

the UK is heart disease and stroke (Laurance, 1998). The concept of Benecol

spread is based on a solid medical idea which reduces cholesterol more than

14% from margarine-type spread (DATAMNITOR 2000). Instead of lowing in

cholesterol itself, Benecol products has a major difference with other

low-cholesterol spread. The former is a cholesterol-lowering product which

removes the substance from the gut actively.

More and more people care about their health and expect the development of

food industry could bring something will prevent disease. The potential of

functional food seem optimistic. However, consumer acceptance will depend

on the efficiency, safety, and sensory quality (Gray, Armstrong & Farley,

2003).


9/24

7

The situtation of Benecol Spread

In the UK dining culture, spread plays an important roles in daily life which is

used several times per day. Although lowing cholesterol margarine-type

spread could not completely replace medicine to cure patients, it supplies an

alternative way for the mass to have an advantageous eating habit.

Nevertheless, Western consumers consists that their dining is healthy that

makes them hard to accept new change for health food. As well as this, EU

residents understand poor nutritional knowledge ( Frewer et al., 2003).

Benecol products are the only series of foods which include Plant Stanol Ester.

Plant Stanol provides cholesterol-lowering ingredient which blocks the

uptake of cholesterol in the gut. Moreover, the plant stanols in Benecol series

has been proved that they are more effectively than absorb form a normal

diet.

According to NHS research (2008), there are only two products which could

enhance to reduce cholesterol: Flora and Benecol. The former is produced by

Unilever which is one of the most successful international companies in daily

products. To identify the cholesterol lowering product benefit, although

Benecol could reduce cholesterol, it is not manufactured for people who

want or need to lose weight. The recommendation for serving Benecol spread


10/24

8

is two or three times per day. Moreover, this series could abate to ingest

cholesterol, yet it may also reduce the absorption of certain vitamins.

Consumers should notice this information when they using it. Research also

suggests that even it wont cause any harm, users should let doctors know

they are taking these products.

Although Regulation (EC) No. 178/2002 of European Parliament established

the European Food Safety Authority and laying down procedures in matters of

food safety. There is not particular sector to define functional foods or

nutraceuticals as specific food categories in European legislation ( Coppens

et al. 2006). In reality, food law, it is not acceptable to claim any food has

any specific disease prevention or medical claim but admissible to mention

health promoting claims. For example, rather than talking about helping

prevent heart disease, it is better to say enhance lower blood cholesterol

(British Nutrition Foundation, 2012). Therefore, there is no clear legislation

for functional food in the UK. IFIC (1999) points out knowledge and beliefs are

the most significant motivations of buying functional foods in diets. However,

the effect of functional food could only be described in a grey area measure.

In this case, the blurred issue has led to negative influence for consumers. To

reinforce the purchasing behaviour, the strict rules could creative


11/24

9

opportunities and increase consumers interest. In Europe, companies

attempting to launch a functional food have faced a variety of legislative

frameworks regulating the approval of products. Reports show that suspicious

attitude for possible harmful effects of functional food, as well as this safety

of functional foods is the mainly affect people willingness to buy the products.

Additionally, the negativity impression of genetic modification of food

products may influence the market to accept functional food( Frewer et al.,

2003). It is highlighted that the risks and doubts is the main concern of using

functional food (Lahteenmaki& Urala, 2007).


12/24

10

The Influential factors of consumers behaviour

Recently, food industry is facing the top market trend to functional food.

According to consumer behaviour surveys, there are various reasons influence

consumers behaviours which could be generalized into two parts, consumer

outline and product benefits. The prior describes the Socio-demographic

determinants including age, education, gender, and income. The latter focus

on innate characters of products, for example, taste, prevent disease, and

price.

- Consumer outlineBased on Verbeke (2005), he identifies that the US functional food consumers

are mainly female, well educated, higher income, and in older age group.

Basically, most of them have bachelor degree, and usually more than 55 years

old. In Verbeke (2005) report, Poulsen (1999) confirmed that compare to

Americans, although the consumer outline is similar, Europeans have higher

acceptance among the lower educated. Nevertheless, the higher socio-

economic groups show more willing to accept functional food because better

knowledge and higher awareness. In most researches, females are considered

as stronger purchase interest in functional food sector. They are more


13/24

11

sensitive toward food and health issues and they are more interesting about

moral and ecological misgivings than men.

Ageing population is a significant topic in modern society. The older age

group has become the majority on health service, particular in heart disease

and cancer. Functional food may alleviate the symptoms of ageing and illness

has important meaning to elderly consumers.

- Product benefitsLahteenmaki and Urala (2004) point out that the dimension of functional

food could be described in several implications. By using functional foods to

improve health and physical condition gives users a tool to take care of

themselves which are considered as perceived reward. Moreover, taking

functional foods without illness makes consumers believe that they can have

better lifestyle. In western countries, the feeling of reward from using

functional foods is increasingly considered as being responsible for

themselves and making the right decision. Nonetheless, people who put

functional food in their shopping list were regarded as more innovative but

less friendly (Saher et al.,2004). On the other hand, choosing functional foods

may let consumers have a modern and positive impression of lifestyle. Under


14/24

12

the situation, functional food may attract more consumers by giving a

modern and healthy image (Lahteenmaki and Urala, 2004).

Another factor to influence the purchasing is the taste of the product. Taste

is a compromised and willingness to use products. It may affect by individual

different, but toward a basic market trend. When people are choosing

functional food, taste is one of the most significant factors. In the latest

report, consumers attitude has strong linkage with the taste (Lahteenmaki

and Urala, 2004).

Other studies also point out that the premium price for functional foods is an

obstacle for users. Customers decisions are easily affected by high cost,

hence being too expensive would lower the acceptance of functional foods

(Verbeke, 2005). The report shows that compare to the normally price

spreads, more expensive products are considered as less natural and less

attractive ( Frewer et al., 2003). Since consumers are not familiar with novel

products like functional food, they are easy to resist it, especially when it is

a high price product.


15/24

13

Recommendation

- ProductBenecol spread contain the special ingredient- Plant Stanol Ester which

could lower cholesterol. Although this product benefit could not replace

medical therapeutics, it still offers a positive incentive for purchasing.

Britain, a modern society, the population becomes older where the residents

have to face heart disease. Benecol should try hard to emphasis their

superiority, and educates the mass the knowledge of products. Benecol spread

provides an alternative solution for better lifestyle.

Generally, consumers do not have enough confidence in functional food

because there is no strike regulation in Europe. Nevertheless, Benecol could

continue providing relative efficacy surveys which might enhance end-users

willingness. Give shoppers a clear impression about their products and

convince consumer that Benecol spread is not only for people who have

suffered from diseases but for everyone who want health.

In the mean time, the taste of the public could be fickle. People might

change their like because diversified elements. The company should keep

communicating with consumers, and understand consumers need and wand.

Even it is impossible to change the taste of product all the time, keep


16/24

14

concerning the market trend is the basic. Only when the company understand

its consumers preference then it could have chance to reach their demands.

- PriceAccording to MYSUPERMARKET (2012), a shopping website, the price range of

Benecol spread is about 3.34 which is approximately triple than other spread.

Since Benecol is in premium value, this company should explore more

opportunities to let their customers accept their products.

Even people accept to buy high-quality products in higher value there is a

barrier for buyers. This company should not only prove product benefit, but also

inspire consumers using it. Even though Benecol spread could stay in high

position to maintain the unique impact, but consumers are sensitive in expense.

Benecol could offer a small package size which could enhance shoppers to

attempt this product. Broaden their packages size range to provide an entry

level for the public. For example, the smallest product is 250g which sells 1.89

in Tesco. Compare to other general spread, Benecol could produce a small

size which sell could be lower than 1. That will improve the competitiveness

of their products and encourage consumers embrace Benecol.


17/24

15

- PlaceBenecol products are widely available and should be found in all major

stores (Benecol , 2012). Basically, consumers can buy Benecil in every major

channel easily. However, Benecol should not only represent a functional food

but also an attitude for health lifestyle. The consumer outline describes that

the users of functional food are more women with high educated and higher

income. If Benecol could have more exposure to their target customers in

their activity area then that would enhance their target notices this brand.

Shopping malls are where usually women love to go. Benecol could open

Benecol shop in the shopping centre which handle high quality product like

John Lewis. In Benecol shops, they could services light meal, sandwich for

instance, which using Benecol spread as foundation taste. By doing this,

these shops serve food which give shoppers a try and provide health concept

to promote Benecol. Consumers could taste Benecol and get information from

sales people. They could either buy meal or bring ingredient home in the shop.

Because of this, Benecol could be closer to the end-users and promote the

brand image directly.


18/24

16

- PromotionBuilding a brand should first promote the brand image. Clearly, Benecol has

high quality standard in its products with less volume for the public. The most

easily way to advertise it is celebrity endorsement. This celebrity should be

famous in dining field, could be a well-know chef or gourmet. He or she

represents a positive hygeian image which consumers attracted toward to be

or to live in similar way and building Brand awareness and recall. Such as

Jamie Oliver who is popular and interested in providing health diet. To

cooperate with Jamie Oliver could also sponsor his restaurants and set a

special meal for Benecol in his restaurants.

Beside this, trade promotion is another essential part should be emphasized.

Retail stores can be an extremely competitive environment. Trade promotion

is considered the best way to differentiation with other competitors.

Sampling is a clear case of point to let consumer have chance to taste

Benecol products. Moreover, combine the celebrity endorsement, Jamie

Oliver could go to the main channels to have some interaction with

consumers which could strengthen the linkage between the brand and the

celebrity.


19/24

17

For advisement, the theme should be talking about healthy lifestyle which

reminds consumer the positive image to Benecol. As well as this, the key

visual should keep communicating the celebrity endorsement which

consistently gives out a persuasive message.


20/24

18

Conclusion

Modern society enhance human a complex environment. Although people

could live in convenience, they are suffering modern diseases, such as cancer

and heart disease. Nowadays, eating better has become the top issue which

people pursuit hard to achieve. However, there are some barriers for

consumer to use functional food. Previous surveys indicate that consumers

concern about the ingredient. Limited consumers knowledge and awareness

of ingredient let them distrust functional food. To address the obstacle,

Benecol should first understand the consumer demands then approach to

educate consumers about product benefits in a soft way.

Moreover, even the strength of Benecol series is lowing cholesterol, European

food law regulates that functional food could not promote the curative effect

directly. The EU food regulation is blurred which drives consumers are

confused about. Since the product could not replace the medical therapy ,

people are wondering whether functional food could be beneficial their daily

eating or not. In the case, Benecol should transform this advantage to what

people want. For instance, better diet equals quality lifestyle which could let

the public picture a pleasant image of healthy life.


21/24

19

After that, market mix should follow the same theme. Producing an entry

package size for non-user is the first step. As well as this, Benecol should

increase product exposure in the target audience activity area and every

channel. For advertising promotion, keeping communicating that using

Benecol products could have a better living condition is the priority.

Celebrity endorsement is usually considered as the easiest method to

increase the brand volume. However, the celebrity should represent a

consistent healthy format and has experience in relative diet field.


22/24

20

Bibliographies

Benecol (27/2/2012). Where to buy

http://www.benecol.co.uk/our-food-range/spreads View 27/02/2012

British Nutrition Foundation (25/02/2012). Functional foods

http://britishnutrition.org.uk/home.asp?siteId=43&sectionId=706&subSectio

nId=322&parentSection=299&which=2 View 24/02/2012

Coppens,P., Silva,M.F., & Pettman, S. (2006) "European regulations on

nutraceuticals, dietary supplements and functional foods: A framework based

on safety" in ToxicologyVol.221 No.1, pp59-74

DATAMONITOR(08/09/2011). Benecol and Take Control get go-ahead from

the FDA

http://360.datamonitor.com.ueaezproxy.uea.ac.uk:2048/Product?pid=17548

605-266A-4AC0-9B68-FE6AFDD94FCA View 24/02/2012

DATAMONITOR(09/11/2011). Raisio: Benecol isn't beneficial to the bottom

line

http://360.datamonitor.com.ueaezproxy.uea.ac.uk:2048/Product?pid=725F7

58D-D215-4E00-A87E-1BF3515B194A View 24/02/2012


23/24

21

DATAMONITOR(08/09/2011). Raisio plc

http://360.datamonitor.com.ueaezproxy.uea.ac.uk:2048/Product?pid=C3975

E07-17F8-498D-A67D-B898AE26AAA6 View 24/02/2012

Diplock AT, Aggett PJ, Ashwell M, Bornet F, Fern EB & Roberfroid MB (1999)

Scientific concepts of functional foods in europe: consensus document in

British Journal of Nutrition 81, suppl 1, S1 S27:S6

Frewer, L. et al. (2003), Consumer acceptance of functional foods: issues

for the future in British Food Journal, Vol.105 No.10, pp714-731

Hasler, C.M. (1998), "Functional foods: their role in disease prevention and

health promotion" in Food Technology, Vol.52 No.11, pp63-70

Hilliam, M. (2000). Functional foodHow big is the market? in The World of

Food Ingredients Vol.12,pp 5052.

IFIC (1999). Functional foods: Attitudinal research (19961999).

Washington: IFIC, International Food Information Council Foundation.

Lahteenmaki, L. & Urala,N. (24/3/2004) Consumers changing attitudes

towards functional foods in Food Quality and Preference, Vol 18, Issue 1, pp

1-12


24/24

22

Laurnce, J. (22/11/1998) Benecol: What it is and how it works

http://www.independent.co.uk/news/benecol-what-it-is-and-how-it-works-

1186487.html View 25/02/2012

Menrad, K., (2003) Market and marketing of functional food in Europe in

Journal of Food Engineering, Vol 56, pp 181-188

MYSUPERMARKET(26/02/2012) My Supermarket Groceries

http://www.mysupermarket.co.uk/ View 26/02/2012

NHS (20/02/2008). Cholesterol Lowering Products Stanols and Sterols

http://www.poole.nhs.uk/documents/leaflets/nutrition/Cholesterol%20Low

ering%20Products%20Stanols%20and%20Sterols.pdf View 25/02/2012

Saher, M., Arvola, A., Lindeman, M., & La"hteenm"aki, L. (2004).Impressions

of functional food consumers inAppetite, Vol 42, 7989.

Siro,I., Kapolna,E., Kapolna,T.,and Lugasi,A., (2008) Functional food.

Product development, marketing and consumer acceptanceA review in

Appetite, Vol 51. No.3, pp456-467

Verbeke, W. (2005) Consumer acceptance of functional foods:

socio-demographic, cognitive and attitudinal determinants in Food Quality

and Preference, Vol 16. Issue 1, pp45-57

6216951 NBS-MC12 Buyer Behaviour Wei-Ching Wang

Documents

Transcript of 6216951 NBS-MC12 Buyer Behaviour Wei-Ching Wang