Group 3 arp presentation_final_bj_hd
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1
Consumer behavior in take-home premium ice-cream
segment
Group 3: Aditya SharmaRobin Agarwal
Prasan Arora
A focus on Ben & Jerry’s and Häagen-Dazs in Singapore
2
Contents Industry Overview Research Objective Key findings from Literature Review Research Methodology Data Analysis Key Findings Managerial Recommendations Limitation Scope Key Learning
3 Industry Overview
4
Industry Overview
In 2011: ice cream segment grew 4% to reach S$118 million
Take Home segment commands a market share of 86% (volume sales).
While the CAGR (‘06-’11)for On Site segment was a mere 0.7%, the CAGR (‘06-’11) for Take Home was 2.3%
Shift in consumer preference to premium segment led to increase in average unit price of ice cream in 2011.
Therefore, premium brands performed well in 2011.
Source: Euro monitor report – Ice Cream in Singapore – December 2011
5
Industry Overview
Source: Euro monitor report – Ice Cream in Singapore – December 2011
2007 2008 2009 2010 20110.00%0.50%1.00%1.50%2.00%2.50%3.00%3.50%
YoY growth in the Take Home segment
2007 2008 2009 2010 20110.00%0.50%1.00%1.50%2.00%2.50%3.00%3.50%
YoY growth in the On-Site segment
6
Industry Overview
Brand Company 2007 2008 2009 2010
Wall's Unilever Singapore Pte Ltd 12.8 12.8 13 12.7
Magnolia F&N Foods (S) Pte Ltd 13.3 13.3 12.7 12.3
Häagen-Dazs
General Mills Asia Pte Ltd 10.1 10.1 10.3 10.5
Ben & Jerry's
Unilever Singapore Pte Ltd 5.4 5.4 5.6 5.7
Source: Euro monitor report – Ice Cream in Singapore – December 2011
Standard brands: Wall’s, MagnoliaPremium brands: Häagen-Dazs & Ben & Jerry’s
Brand Shares (% retail value rsp)
7 Research Objectives
8
Research Objectives
To identify factors that drive the consumption of premium ice cream brands in Singapore
To rate these factors in order of importance and effectiveness
To classify and compile the findings with respect to different segments in the target audience
To identify managerial implications and to make recommendations which may grow business for a premium ice cream brand
9 Key Findings from Literature Review
10
Key Findings from Literature Review
Price
Brand
Health Consciousness
Convenient Packaging
Taste/ Flavors
Purchase Decision
Independent Variables Dependent Variables
11 Research Methodology
12
Research Methodology
Research Methodology
Secondary Research
Literature Review
Analysis of - Market share, growth rates, categories in the industry
Primary Research
Qualitative
Industry Experts
Open Ended interviews
with customers
Quantitative
Survey questionnair
e
Statistical Analysis
13
Secondary Research
Research Reports
EBSCO host
Euro Monitor, Data Monitor
National Library of Singapore
Google Scholar
14
Research Methodology
Used SPSS software to analyze the responses to the survey
Factor Analysis
Cluster Analysis
Cross tab Analysis
Perceptual Mapping
15 Data Analysis
16
Sample Demographics
51%49%
Gender
MaleFemale
8%
21%
49%
16%
6%
Age (in years)
below 1818-2526-3536-45Above 45
48%
29%
23%
Citizenship
ExpatSingaporean CitizenSingaporean PR
56%32%
2%
10%
Residence Type
HDBCondominiumBunglowOther
26%
62%
5%7%
0%
Occupation
StudentEmployedSelf-employedHome makerOther
9%
20%
16%
12%
28%
15%
Monthly Household Income
Below S$2500S$2500 - S$5000S$5000 - S$10000Above S$10000I don't want to discloseNot Applicable
56%32%
2% 10%
Residence Type
HDBCondominiumBunglowOther
17
Factor Analysis
Rotated Component Matrix(a)
Component
1 2 3 4Brand 0.728 Willingness to pay 0.712 Price -0.604 Taste 0.837 Quality 0.776 Substitutes 0.716 Low calorie 0.676 Special occasions 0.638 Sales promotion 0.746Packaging 0.723
Brand LoyaltySensory
PerceptionHealth
consciousnessValue for Money
18
• Buy same brand of ice cream• Don’t mind spending more for
preferred brand• Price is important
Brand Loyalty
• Taste is important• Quality is important
Sensory Perception
• Buy substitutes• Consciously look for low-calorie ice
cream• Buy premium ice cream for special
occasion
Health Consciousn
ess• Buy more ice cream on promotions• Prefer to buy multipack over single
pack
Value for me
Factor Analysis
19 Cluster Analysis
20
Generated Clusters
K-means clustering used A total of 3 clusters generated on the
basis of the following factors: Brand Loyalty Sensory Perception Health – Consciousness Value for Money
21
Brand Loyalty
Sensory Perception
Health Consciousness
Value for Money
Brand Loyalty 0.30
Sensory Perception -1.29
Health Consciousness 0.12
Value for Money 0.11
Cluster 1
Final Cluster Center
22
Important characteristics
Medium Brand loyalty score relative to others Least on Quality & Taste compared to other
clusters Open to substitutes like yoghurts and low-calorie
ice creams Average attraction to Promotions and packaging
relative to others 56% of the respondents in this market are
females Majority (67%) of the respondents are employed Most of the respondents (27%) fall into the low
monthly income group of S$2500- S$5000
23
Cluster 2
Brand Loyalty
Sensory Perception
Health Consciousness
Value for Money
Brand Loyalty 0.76
Sensory Perception 0.53
Health Consciousness -0.15
Value for Money -0.32
Final Cluster Center
24
Important characteristics
Extremely brand loyalHigh Willingness to buyPrice not an important factor while buyingHigh quality and taste demandedDon’t look for substitutes and are not health
consciousUnaffected by promotion sales and offersPackaging is also not an important criteriaMale dominated segment (54%)Consist of 66% employed whole mainly live in
HDB (57%)
25
Cluster 3
Brand Loyalty
Sensory Perception
Health Consciousness
Value for Money
Brand Loyalty -0.89
Sensory Perception 0.28
Health Consciousness 0.06
Value for Money 0.23
Final Cluster Center
26
Important characteristics
Not at all brand conscious Not willing to buy if expensive Taste and quality are a mild purchase drivers Less influenced by the presence of substitutes
and low calorie products in the market Highly influenced by the promotional offers and
deals on ice cream products Consider convenient packaging an important
criteria Female dominated (36%) 47% are expats and 57% live in HDB
27
Identified Segments
Cluster 1 Cluster 2 Cluster 3
Brand Loyalty
0.30 0.76 -0.89
Sensory Perception
-1.29 0.53 0.28
Health Consciousnes
s0.12 -0.15 0.06
Value for
Money0.11 -0.32 0.23
Cluster 1 Cluster 2 Cluster 3
Brand Loyalty
Medium High Low
Sensory Perception
Low High Medium
Health Consciousnes
sHigh Low Medium
Value for
MoneyMedium Low High
Cluster 1 Cluster 2EconomicalSegment Cluster 1
Superior Segment
BalancedSegment
28 Perceptual Mapping
29
Balanced Segment
1 - Brand2 - Price3 - Quality4 - Taste
SegmentBrands
30
Superior Segment
1 - Brand2 - Price3 - Quality4 - Taste
SegmentBrands
31
Economical Segment
SegmentBrands
1 - Brand2 - Price3 - Quality4 - Taste
32Managerial
Recommendations
33
Balanced Segment
Ben & Jerry’s is lagging behind in C1 segment
Quality and taste is not so important factor
56% females Maximum no. if
homemakers 50% are married 52% - influence
for family 61% - buy for
family
Diversify to health related products – low calories and low fat
Introduce Greek Frozen yogurt in Singapore
Long term - as a family pack
34
Superior Segment
Taste & quality of prime importance
Price is not important
High-earning group (21% highest in all 3 segments)
Free sampling of existing flavors in supermarkets
Value proposition - launching a super premium product
Set at high price Willingness to pay for preferred brand
Price sensitivity rating
Balanced 3.79 3.11
Superior 4.29 2.77
Economy 3.36 4.17
35
Economy Segment
37% students 33%
Singaporean citizens
Maximum social media users
Max traditional media audience
Bundling of plain flavors to promote multipack
Cross promotion with supermarkets during festivals and promotions
Occasional Purchase Buy more on Promotion
Balanced 3.27 3.27
Superior 3.43 3.43
Economy 3.62 3.75
36 Limitations
37
Limitations
Sample data may not be representative of ice cream consumer population of Singapore in terms of ethnicity, residence status, geographies and other demographic parameters
The research does not focus on the strategic influence on the take home consumers by the onsite consumption
Although majority of the take home segment comprises of supermarkets , the research did not give much weightage to other retail avenues in the take home segment
The research did not include in-house brands of major retailers such as Fair Price and Carrefour
38 Scope
39
Future Scope This research can be used as a reference for
emerging brands in the premium ice cream segment
Insights from this research can help formulate the market entry strategy for a new player in the premium segment
More extensive data collection can improve the quality of the present study
In light of the slow growth rate forecast for the segment , this research can be used as a starting point to forecast future trends
40 Key Learnings
41
Key Learnings Survey questionnaire should be well structured Wide range of demographics of respondents
must be ensured Research objectives, framework and
methodology should be in sync A good literature review forms the basis of a
good research At every stage of gathering primary data, the
consistency and the acceptability of the data must be checked
42
Thank You!
43
Qualitative Research
Most preferred brands – Häagen-Dazs & Ben & Jerry’s
Buying frequency – once a month
Most bought quantity – 473 ml
No specific occasional purchase
Most preferred flavors – Chocolate and Vanilla
Factors considered while buying – Brand, Taste, Quality and Price
31%
27%
12%
12%
19%
Haagen DazsBen & Jerry'sMagnoliaDreyersOthers
Division based on preference
44
Qualitative Research
Most popular brands – Häagen-Dazs & Ben & Jerry’s
80% of consumers buy single pack
Most convenient place to buy – Supermarkets
Low-fat ice cream not popular
Favorite substitute (35%) – Yoghurts
Reason for buying ice cream – love for it, weather conditions, taste
14%
29%
26%
17%
7%
7%
MagnoliaHaagen DazsBen & Jerry'sWallsNestleOthers
Division based on popularity
45
Demographics
26%
62%
5%7%
0%
Occupation
StudentEmployedSelf-employedHome makerOther
9%
20%
16%
12%
28%
15%
Monthly Household Income
Below S$2500S$2500 - S$5000S$5000 - S$10000Above S$10000I don't want to discloseNot Applicable
56%32%
2% 10%
Residence Type
HDBCondominiumBunglowOther