Powered by Dairy Opportunities for Growth- Preliminary Findings October, 2013 Lynn M. Stachura.
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Transcript of Powered by Dairy Opportunities for Growth- Preliminary Findings
Powered by Dairy Opportunities for Growth- Preliminary Findings
October, 2013Lynn M. Stachura
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What we will cover:
• Why Is Powered By Dairy Important?
• Foundation for Powered By Dairy Research
• What Opportunities Can Dairy Leverage Within The Energy Space?
• Relative Size of Prize/Opportunities Quantified
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Basis of Interest for “Powered By Dairy” Research
• Energy drink market in US was $4.8BN in 2008
• Functional drinks estimated to grow to $19BN by 2013 (160% growth from 2008)
• 63% of Americans are concerned about lack of energy
• 69% say ‘provides energy’ is important in determining products to buy
• Chocolate milk proven to be a good recovery drink
• 21% are regular energy drink users, including 43% of those ages 18–24
• Only 29% of consumers strongly agree protein is naturally found in milk; only 25% familiar to whey protein
Idea Thought Starters:
• Symbols on products to show ‘good source of protein’
• Dairy energy bars/drinks
• Flavors associated with protein: peanut butter
• Mental energy drinks
• Fusions – milk + high protein products (granola, nuts)
Supply Chain Thought Starters:
• Vending machines at health clubs, athletic centers at universities
• Machines that check energy levels (similar to blood pressure machines) in food stores and then recommend high protein items to buy
Basis of Interest Potential Ways to Bring to Life
DAIRY INGREDIENT
Making dairy the go-to food/beverage for people who want more physical or mental energy
Innovation Center research compiled by GfK identified 3 dairy categories that have possible opportunities within the energy space:
MILK YOGURT
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Team Work Plan to Uncover Opportunities Dairy MightLeverage Within The “Powered” Space
Making dairy the go-to food/beverage for people who want more physical or mental energyDairy entry into new & existing “energy” markets
GfK Qualitative Work:
Identify consumer needs by need state/ occasion/ segments
Conduct global scan for new product innovation across energy market
Quantitative & Secondary Research: Exploration of energy claims within food &
beverage within the retail channel E.g. understanding energy drink/shot categories
TNS Landis Database Quantitative Work: Identify potential categories focused in the
“energy” arena so dairy can leverage equity and consumer acceptance
What dairy opportunity can be leveraged within the energy space and who is the target consumer?
Players within the “claimed” energy space?
Understanding the Why behind consumer needs, habits/practices, attitudes, and behavior?Help identify emerging innovative energy territories
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Executive Summary
• Dairy has permission to play within energy space
• Highest priority areas for innovation are– Regular yogurt, greek yogurt, smoothies, drinkable yogurt & low fat/skim milk
• Yogurt categories show most potential to compete w/ energy categories
• Uncovered preliminary roadmaps for both “close-in” and “farther-out” innovation– Closer-in growth doesn’t require new product development, rather leverages
current dairy benefits
– Farther-out growth requires greater innovation which can lead to higher incremental growth
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Executive Summary
Snack universe (defined by TNS):• Regular and greek yogurt occasions have an opportunity to move into the
energy space, which accounts for 21% of the snack occasions
• Learnings from regular and greek yogurt can be applied to other categories such as dessert yogurt, probiotic yogurt and frozen yogurt
• Relative potential for dairy-based energy snacks is $18.9 billion
Beverage universe (defined by TNS):• Smoothies, drinkable yogurt and low fat/skim milk occasions have opportunity
to move into the energy space, accounts for 30% of the beverage occasions
• Learnings from smoothies, drinkable yogurt and low fat/skim milk can be applied to other categories such as reduced fat/calorie milkshakes, lactose free milk and organic milk
• Relative potential for dairy-based energy beverages is 15.9 billion gallons
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INITIAL DISCOVERYPowered By Dairy:
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Initial Discovery Uncovers Why “Powered By Dairy” Is Important To The Industry
• The functional food/beverage category is a profitable market that grew 25% between 2008 - 2011 despite the recession
• Energy is among the fastest growing claims with sales increasing 15% in the past year
• Adults are increasingly more interested in obtaining physical and mental energy in these hectic times
• Natural energy is becoming the new functional energy trend
IRI Sales versus year ago (1 year ending July 15, 2012)New Nutrition Business 2011New Nutrition Business Key Health and Nutrition Trends 2012
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Consumers Are Changing Their Diets For A Variety Of Reasons
Weight management67%
Top Reasons for Changing Diet: % Made Dietary Changes in Past Year
Overall improved health and wellness
54%
Improve body shape/fat composition46%
Improve overall quality of life46%
Increase energy levels 34%
Source: The NPD Group/Functional Foods & Beverages Custom Survey; June ‘12
Disclosed with permission of The NPD Group solely for the purpose for which it is being provided by DMI. The reproduction, dissemination or use of the information for any other purpose is strictly prohibited without NPD’s prior written consent.
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Physical And Mental Energy Are Important To Consumers
Physical Energy Mental Energy Do not use for energy
73%
63%
24%
Types of Energy Consumer Are Looking For In Functional Products
(Foods & Beverages; % of Adult Sample)
Source: The NPD Group/Functional Foods & Beverages Custom Survey; June ‘12
Disclosed with permission of The NPD Group solely for the purpose for which it is being provided by DMI. The reproduction, dissemination or use of the information for any other purpose is strictly prohibited without NPD’s prior written consent.
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Energy Products Maintain Younger Consumers Interest, While Older Consumers Seek More Natural Sources
36% of adults would rather get their nutrients from foods and beverages as opposed to supplements
Natural is a good point of difference
Source: Package Facts dietary supplements us 2010 studySource: The NPD Group/Functional Foods & Beverages Custom Survey; June ’12
Disclosed with permission of The NPD Group solely for the purpose for which it is being provided by DMI. The reproduction, dissemination or use of the information for any other purpose is strictly prohibited without NPD’s prior written consent.
The Move To “Natural” Products Is Evident In The Product Introductions And Expanded Users
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Does Dairy Have Permission to Expand Into Energy Space?
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DAIRY OUTLOOK IN ENERGY SPACEPowered by Dairy:
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Using The TNS Landis Database, Consumers Define “Energy” As…
Note: Energy is defined as a need within food and beverage
• Provides quick energy • Picks me up/gets me going
• Is a supercharged energy source
• Is a good source of protein • Is a good source of soy/ soy protein
• Enhances mental performance• Helps me stay sharp and alert
• Is a good way to start the day • Helps me stay on track
• Helps me concentrate • Helps wake me up
• Helps manage my blood sugar • Helps me get through my day• Provides lasting energy
• Won't impair performance • Helps me lead active lifestyle• Is good after physical exercise • Enhances physical performance• Energy w/o making me crash later• Will not slow me down/feel sluggish
Protein Based Energy
Physical Energy (Exercise)
Sustained energy…
• Boosts of energy naturally
Mentalenergy…
Energy Quickenergy…
Natural energy…
• Gives me energy w/o the calories
• Boosts my metabolism • Rejuvenates me• Revitalizes me
Other
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Some Dairy Categories Have Opportunity To Move Into Energy Space
Prioritized 5 Dairy Categories
52 Energy Categories
Energy Attributes
25 Dairy Categories
25 Dairy Categories
• 11 dairy categories in the Beverage Universe
• 14 dairy categories in the Snack Universe
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Energy Attributes
• Energy attributes define the energy categories
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Examples of energy attributes:
• Provides quick energy
• Helps me get through my day
• Enhances my physical performance
• Is a good source of protein
• Enhances my mental performance
52 Energy Categories
• The 26 energy attributes aligned with 52 energy categories
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We Prioritized Five Opportunity Areas Where Dairy Has Greater Permission to Innovate
Regular Yogurt
• Yogurt- Dessert
• Yogurt- Probiotic
• Packaged Frozen Yogurt
Greek Yogurt
• Yogurt- Dessert
• Yogurt- Probiotic
• Packaged Frozen Yogurt
Yogurt Smoothies
Drinkable Yogurt
• Reduced Fat/ Calorie Milkshakes
Low Fat/ Skim Milk
• Lactose Free Milk
• Organic Milk
Snack Opportuniti es Beverage Opportuniti es
Additionally, these dairy categories below have similar traits to innovate against:
1 2 3 4 5
Lower Priority Dairy Categories
(Don’t meet energy needs or other categories meet the needs)
Snack opportunities Beverage opportunities String Cheese Individually Wrapped Cheese Slices Premium Ice Cream Non Premium Ice Cream Soft/ Spreadable Cheeses Cottage Cheese
Chocolate Milk RTD Refrigerated Milkshakes Whole Milk
Note: Reduced fat/ calorie milkshake category are products that require “adding milk and stirring”
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4%NS12 Socialize & Entertain
6%NS8
14%NS1
13%NS2
7%NS7
7%NS6
6%NS9
9%NS5
4%NS10
134%
12%NS3
10%NS4
U.S. Snack Universe Within TNS Landis Database:(Overview of Snack Need States)
Enjoyment Multitasking
Relieve Boredom
Indulge With Family
Do Other Things
Fresh & Filling
Enhance My Health
Sharpen My Mind & Body
Healthy Meal Replacement
Energize Me
Break the Routine
Permit Plenty
Save Time & Savor
Speedy, Sweet & Portioned
Nutritionally complete options for every day, made with the goodness of real fruit, that
rehydrate and rejuvenate the body, enhancing health over the longer term
Vitamin-fortified, energy and metabolism-boosting snacks that help you stay focused, physically active and
looking your best
A heart-healthy meal replacement with nutritional value that boosts bodily function
and gives the body what it needs to feel good
A natural energy source that revitalizes and sustains throughout the day, with built-in
benefits (like antioxidants or calcium) to help improve the body’s function and endurance
A freshly prepared, full-flavored option that is a meal in itself – served warm, tastes authentic, and is a good change of pace
from the usual routine
4%NS11 Reward Me
Simple/basic, shareable, savory snacks with big flavor, enjoyed while spending
time with friends and family
Spontaneous, spur-of-the-moment, easy, hand-to-mouth snacks to just open and eat
to relieve boredom
Sweet, full-flavored, uplifting, and craveable indulgent treats that are fun for
the whole family
Simple, no-prep, hand-to-mouth savory snacks that are not messy and can be enjoyed while doing other things, whether on the go,
at the computer, or in front of the TV
Bite-size, pop-in-your-mouth, low-calorie snacks, good anytime and portable for
anywhere, whether on the go or at work or school, permissible for munching all day
Savory options with crispy, baked texture, that come complete with all the ingredients
and are quick to prepare, but with flavor you don’t want to rush
Portable, single-serve, sweet, flavorful treats for any time of the day, that provide
quick energy to keep going, whether working at a desk or driving in the car
For personal moments of indulgence that are comforting and not rushed, to help you
relax and escape during and after a stressful day
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Dairy Category
Need State/Consumer Segment
Target Need State Need State Definition % of Snack Universe
String Cheese Speedy, Sweet & Portioned
Individually Wrapped Cheese Slices
Speedy, Sweet & Portioned
Regular Yogurt Enhance My Health
Premium Ice Cream
Sharpen My Mind & Body
Non-Premium Ice Cream
Sharpen My Mind & Body
Soft/Spreadable Cheeses
Healthy Meal Replacement
Greek Yogurt Energize Me
Cottage Cheese Energize Me
Dairy Opportunity Across Snack/Energy Need States(Relative Size of Prize)
14%
7%
13%
Portable, single-serve, sweet, flavorful treats for any time of the day, that provide
quick energy to keep going, whether working at a desk or driving in the car
Portable, single-serve, sweet, flavorful treats for any time of the day, that provide
quick energy to keep going, whether working at a desk or driving in the car
Nutritionally complete options for every day, made with the goodness of real fruit, that
rehydrate and rejuvenate the body, enhancing health over the longer term
Vitamin-fortified, energy- and metabolism-boosting snacks that help
you stay focused, physically active, and looking your best
Vitamin-fortified, energy- and metabolism-boosting snacks that help
you stay focused, physically active, and looking your best
A heart-healthy meal replacement with nutritional value that boosts bodily function
and gives the body what it needs to feel good
A natural energy source that revitalizes and sustains throughout the day, with built-in
benefits (like antioxidants or calcium) to help improve the body’s function and endurance
A natural energy source that revitalizes and sustains throughout the day, with built-in
benefits (like antioxidants or calcium) to help improve the body’s function and endurance
13%
7%
Dairy's share of the energy related snack
occasions is…
54%However, regular and
greek yogurt occasions have
opportunity to move into the energy space which encompasses…
21%
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11%NS3
The Real Deal
All-natural, wholesome, and great-tasting beverages that
have heart-healthy ingredients and help set a good example
11%NS2
Proper Health Management
Beverages that make you feel fit/healthier, enhance your
mental focus, aid your digestive system, and make you feel that your are taking care of yourself
9%NS5
An on-the-go beverage that gives you quick energy so that
you can keep going while you’re doing other things
Easy, Quick, Convenient
6%NS10
5%NS11
9%NS6
6%NS9
17%NS1
7%NS7
7%NS8
10%NS4
4%NS12
Craveable, indulgent, and fun beverages that make you happy
and put you in a good mood
Fresh beverages that have a homemade taste and help you
de-stress and relax
Sweet, full-flavored, and fun beverages that have a mix of
tastes and are made with fresh fruit that my whole family can
enjoy
Fruit-flavored, vitamin and mineral-fortified beverages with a mix of tastes that boost your
energy naturally
Refreshing, thirst-quenching, and light-tasting beverages that
are good to have with a meal
Fresh, natural, and nutritionally complete beverages that
strengthen teeth and bones, build muscle, and tide you over
until your next meal
Filling, energizing beverages that tide you over until your next meal and make you feel
adventurous
Natural Soothing Selections
Sweet Fun with a Twist
FruityGoodness Healthy Meal Replacement
Satisfying Energy Enhancement
Easy Refreshment
Indulgent Moments
Healthy Weight Management
Low This, Low That
Daily guilt-free beverages, lower in sugar and calories, that are not too filling and help you
manage your weight
Lower in sugar and calories beverages that are not too filling,
don’t spoil your appetite, and help you feel in control
EmotionalReward
PortableConvenience
MealReplacement
Health Management
U.S. Beverage Universe Within TNS Landis Database:(Overview of Beverage Need States)
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Dairy Category
Need State/Consumer Segment (Beverage Universe)
Target Need State Need State Definition % of Beverage Universe
Fruit or Yogurt Smoothies From a Restaurant/Smoothie Shop
Fruity Goodness
Chocolate Milk in Bottles/Cartons
Easy, Quick, Convenient
RTD Refrigerated Milkshakes
Satisfying Energy Enhancement
Drinkable Yogurt Proper Health Management
Whole Milk Proper Health Management
Low-Fat/Skim Milk Healthy Weight Management
Dairy Opportunity Across Beverage/Energy Need States(Relative Size of Prize)
9%An on-the-go beverage that gives you quick energy so that you can keep going while you’re doing other things
5%
9%
Filling, energizing beverages that tide you over until your
next meal and make you feel adventurous
Beverages that make you feel fit/healthier, enhance your mental focus, aid your digestive system, and make you feel that your are taking care of yourself
10%
Daily guilt-free beverages, lower in sugar and calories, that are not
too filling and help you manage your weight
Fruit-flavored, vitamin and mineral-fortified beverages with a mix of tastes that boost your energy naturally
Beverages that make you feel fit/healthier, enhance your mental focus, aid your digestive system, and make you feel that your are taking care of yourself
11%
Dairy’s share of the energy related beverage
occasions is…
44%However, smoothies, drinkable yogurt and
low fat/ skim milk occasions have
opportunity to move into the energy space which encompasses…
30%
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The Study Defined Two Distinctive Types Of Innovation For Dairy
Further-Out Innovation
Closer-In Innovation
How to innovate: Develop communication that builds upon dairy benefits so it can be positioned against energy categories
1. Innovation that is quick but yields less growth; doesn’t require new product development
2. Leverage new benefits/positioning that communicate dairy categories strengths against existing competitive energy categories
• Helps build upon needs not met by energy categories yet delivered by dairy
• Capitalize on needs that dairy outperforms energy categories
Example: Position drinkable yogurt messaging that delivers opportunities such as helping feel good, looking my best or helping family maintain health as a way to compete against other energy categories
How to innovate: Create a new hybrid product that leverages dairy benefits and meets energy attribute needs
1. High Innovation needed but yields high growth
• Highly incremental opportunity
2. New hybrid product not created, consumers slower to grasp concept
• Requires longer lead time
3. Need to address consumer needs that are served well by energy categories however, not dairy categories
• Extending dairy into strongly connected energy categories
Example: New to the world hybrid category…
Nutritionally Balanced Drinkable Yogurt Shots:
This product would deliver on helping consumer feel and look their best and can be considered an option for the family to stay healthy. Goal is to help consumer meet energy needs of feeling fit/ healthier and makes up for less nutritional choices
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Where Does Regular Yogurt Currently Play?
Defining… Enhanced My Health
Health functions Fresh/natural ingredients Sound nutrition Better performance Natural lift
Categories Competing Within Enhance My Health Need State
Fresh fruit –whole or precut 100% RTD fruit smoothies Greek yogurt Dairy-based vegetable dips Cottage cheese
Fruit cups Fruit Crisp Bars Cereal naturally sweetened Peanut butter in on-the-go
cups
Need State: Enhance My Health(Accounts for 14% of Energy – related Snack Occasions )
Regular Yogurt: Opportunity At A Glance
Who Is My Target Consumer…?
Older consumers Proactive and disciplined Love food and are adventurous eaters Managing their food and nutrition choices Freshness and sources of the foods important
Disciplined Eaters: Eat To Live Closer-In Innovation
OR
Further-Out Innovation
How To Innovate…?
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Regular Yogurt: Preliminary Guidance For InnovationHow To Innovate…?
Enhances daily health Helps ensure long-term health Has redeeming nutritional value Helps me feel good about self
1 2 Helps digestive system work at its best Helps maintain teeth/ bones strength
Cheese/Queso dips Dairy-based vegetable dips Peanut butter OTG cups Low-calorie chocolate candy bars Reduced calorie brownies Reduced calorie cookies
Needs Not Met By Energy Categories:
Communicate Regular Yogurt Benefits*:
Yogurt Outperforms Energy Categories:
Note: *Must meet both criteria (1 and 2) before innovation
Closer-In Innovation Further-Out Innovation
Innovate Against Energy Competitive Set:
Develop regular yogurt positioning that optimizes above communication/benefits
Ex: Regular yogurt needs to communicate some of its inherent benefits, such as bone health, to compete with the above competitive set
Regular yogurt competes against these energy based categories (competitive set):
Important energy attributes needed to innovate:
* Must communicate all the regular yogurt benefits (above) to innovate far-out:
Build new dairy/energy product: Low to high innovation/risk factor:
MODERATE INNOVATION
NEEDED
HIGH INNOVATION
NEEDED
LOW INNOVATION
NEEDED
• Not applicable
• Fruit cups• Reduced calorie brownies• Peanut butter OTG cups• Reduced-fat/sugar cookies• Low-calorie chocolate candy bars
• Dairy-based vegetable dips• Cheese/Queso dips
Is naturally sweetened
Use high quality ingredients
Naturally rich in vitamins
Fuse regular yogurt with energy product to create new hybrid product
Higher innovation… higher growth New product not yet invented Ex: Expand regular yogurt into energy
space by leveraging above benefits along with energy attributes to create breakthrough innovation fusion categories/products
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Where Does Greek Yogurt Currently Play?
Defining… Energize Me
Gets me going, keeps me going Has sound nutrition Is a natural lift Has fresh/natural ingredients Supports body functions
Categories Competing Within The “Energize Me” Need State
Peanut butter Packaged frozen yogurt Regular Yogurt Fresh fruit – precut or whole Fruit cups
Cereal – 100% nutritionally complete, 100% wholegrain
Fresh, cooked or raw vegetables Heart-healthy spreads
Need State: Energize Me(Accounts for 6% of Energy – related Snack Occasions )
Greek Yogurt: Opportunity At A Glance
Who Is My Target Consumer…?
Image is important for these consumers “Live to eat” as mindful of health & nutrition
Yet struggle with weight/guilt of eating Take time to exercise and look attractive
Yet not truly satisfied w/ how they look
Life- Balancing Weight Manager Closer-In Innovation
OR
Further-Out Innovation
How To Innovate…?
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Greek Yogurt: Preliminary Guidance For InnovationHow To Innovate…?
Good source of calcium
1 2 Helps build muscle Boost immune system Helps digestive system work at its best
Fruit cups Cereal – high fiber Cereal – 100% wholegrain Cereal – 100% nutritionally complete Heart-healthy spreads
Needs Not Met By Energy Categories:
Communicate Greek Yogurt Benefits*:
Greek Yogurt Outperforms Energy Categories:
Note: *Must meet both criteria (1 and 2) before innovation
Closer-In Innovation Further-Out Innovation
Innovate Against Energy Competitive Set:
Develop Greek yogurt positioning that optimizes above communication/benefits
Ex: Greek yogurt needs to communicate some of its inherent benefits, such as builds muscle, boosts immune system or helps digestive system work its best to compete with the above competitive set
Greek yogurt competes against these energy based categories (competitive set):
Important energy attributes needed to innovate:
* Must communicate all the Greek yogurt benefits (above) to innovate far-out:
Build new dairy/energy product: Low to high innovation/risk factor:
MODERATE INNOVATION
NEEDED
HIGH INNOVATION
NEEDED
LOW INNOVATION
NEEDED
• Not applicable
• Cereal- high fiber• Fresh fruit/precut with a dip• Fresh fruit/whole
• Cereal – 100% nutritionally• Cereal – 100% wholegrain• Heart-healthy spreads• Fruit cups
Enhance physical/ mental performance
Good source of antioxidants
Fortified w/ vitamins and/or minerals
Is made with fresh/real fruit
Promotes healthy skin
Fuse Greek yogurt with energy product to create new hybrid product
Higher innovation… higher growth New product not yet invented Ex: Expand Greek yogurt into energy
space by leveraging above benefits along with energy attributes to create breakthrough innovation fusion categories/products
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Where Does Fruit/ Yogurt Smoothies Currently Play?
Defining… Fruity Goodness
Good for body Fruit- flavored Natural energy
boost Kid-friendly
Partner with exercising
Complex taste Good for lunch/
as a snack
Categories Competing Within Fruity Goodness Need State
Bottle tea blend w/ fruit juice Fruit juice drinks/blends Sparking fruit juices Soft drinks fortified with
vitamins and/or minerals
Fortified fruit juice Regular RTD sports drinks Pre-game fuel drinks Post-game drinks Herbally enhanced drinks
Need State: Fruity Goodness(Accounts for 9% of Energy-related Beverage Occasions )
Fruit/Yogurt Smoothies: Opportunity At A Glance
Who Is My Target Consumer…?
Eating is important to younger single men Rely on other to prepare food (at home & away) On-the-go consumers w/ active, busy lifestyle Don’t worry about weight or health issues
Social Indulger: Live to Eat Closer-In Innovation
OR
Further-Out Innovation
How To Innovate…?
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Fruit/ Yogurt Smoothies: Preliminary Guidance For InnovationHow To Innovate…?
Fruit flavored, sweet Kids can prepared/serve themselves Kids like/parents approve of…
1 2 Good mixture of tastes Variety of tastes in every bite Good as a snack
Flavored fitness water RTD sports drink (regular/low calorie) Pre-game fuel drinks Post-game drinks Herbally enhanced drinks Nutritionally complete drinks Calorie-burning drinks
Needs Not Met By Energy Categories:
Communicate Fruit/Yogurt Smoothie Benefits*:
Smoothies Outperforms Energy Categories:
Note: *Must meet both criteria (1 and 2) before innovation
Closer-In Innovation Further-Out Innovation
Innovate Against Energy Competitive Set: Develop fruit/yogurt smoothie positioning
that optimizes above communication Ex: Smoothies needs to communicate some
of its inherent benefits, such as mixture or variety of taste or good snack and kid friendly to compete with the competitive set
Fruit/yogurt smoothies competes against these energy based categories:
Important energy attributes needed to innovate:
* Must communicate all the smoothie benefits (above) to innovate far-out:
Build new dairy/energy product: Low to high innovation/risk factor:
MODERATE INNOVATION
NEEDED
HIGH INNOVATION
NEEDED
LOW INNOVATION NEEDED
• Not applicable
• Flavored fitness water• RTD sports drinks• Pre-game fuel drinks• Low-calorie RTD sports drinks• Post-game drinks• Nutritionally complete drinks• Calorie-burning drinks
• Herbally enhanced drinks
Fuse smoothies with energy product to create new hybrid product
Higher innovation… higher growth New product not yet invented Ex: Expand smoothies into energy
space by leveraging above benefits along with energy attributes to create breakthrough innovation fusion categories/products
Good for fast paced lifestyle
Easy to prepare
Doesn’t drip when I drink it
Provides quick energy
Good for when I am surfing the web, blogging or texting
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Where Does Drinkable Yogurt Currently Play?
Defining Proper Health Management
Feel and look my best Promotes healthier lifestyle Promotes brain function Better bodily function Controlling the “bads”
Categories Competing Within Proper Health Management Need State
Soy milk Bottle water fortified w/ vitamins Vegetable juices Weight-loss beverages Low-fat/skim milk
Protein-enhanced water Unflavored fitness water Nutritionally complete drinks Calorie-burning beverages
Need State: Proper Health Management(Accounts for 11% of Energy-related Beverage Occasions )
Drinkable Yogurt: Opportunity At A Glance
Who Is My Target Consumer…?
Older consumers Proactive and disciplined Love food and are adventurous eaters Managing their food and nutrition choices Freshness and sources of the foods important
Disciplined Eaters: Eat To Live Closer-In Innovation
OR
Further-Out Innovation
How To Innovate…?
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Drinkable Yogurt: Preliminary Guidance For InnovationHow To Innovate…?
Helps me feel good Helps maintain family health Give my body what it needs to feel good
1 2 Helps me look my best
Nutritionally complete drinks Weight-loss beverages
Needs Not Met By Energy Categories:
Communicate Drinkable Yogurt Benefits*:
Drinkable Yogurt Outperforms Energy Cat.:
Note: *Must meet both criteria (1 and 2) before innovation
Closer-In Innovation Further-Out Innovation
Innovate Against Energy Competitive Set:
Develop drinkable yogurt positioning that optimizes above communication/benefits
Ex: Drinkable yogurt needs to communicate some of its inherent benefits, such as making me feel good, maintaining family health to compete with the above competitive set
Drinkable yogurt competes against these energy based categories (competitive set):
Important energy attributes needed to innovate:
* Must communicate all drinkable yogurt benefits (above) to innovate far-out:
Build new dairy/energy product: Low to high innovation/risk factor:
MODERATE INNOVATION
NEEDED
HIGH INNOVATION
NEEDED
LOW INNOVATION
NEEDED
• Not applicable
• Not applicable
• Nutritionally complete drinks• Weight-loss beverages
Helps me feel fit/ healthier
Helps make up for less sensible choices
Fuse drinkable yogurt with energy product to create new hybrid product
Higher innovation… higher growth New product not yet invented Ex: Expand drinkable yogurt into
energy space by leveraging above benefits along with energy attributes to create breakthrough innovation fusion categories/products
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Where Does Low Fat/Skim Milk Currently Play?
Defining Healthy Weight Management
Weight control/Better for me No-regret consumption Healthy ingredients Low/no sugar and Light/not too filling Better health management
Categories Competing In Healthy Weight Management Need State
Unflavored fitness water Bottled spring water Bottled purified water – plain Low-cal. fruit-flavored drink mix Sparkling water – unflavored
Unflavored bottled teas Soy milk Low-cal. RTD sports drinks
Need State: Healthy Weight Management(Accounts for 9% of Energy-related Beverage Occasions )
Low Fat/Skim Milk: Opportunity At A Glance
Who Is My Target Consumer…?
Older consumers Proactive and disciplined Love food and are adventurous eaters Managing their food and nutrition choices Freshness and sources of the foods important
Disciplined Eaters: Eat To Live Closer-In Innovation
OR
Further-Out Innovation
How To Innovate…?
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Low Fat/Skim Milk: Preliminary Guidance For InnovationHow To Innovate…?
Low fat/low calories Can have every day Does not contribute to childhood obesity
1 2 No added sugar Helps lower cholesterol
Unflavored fitness water Soy milk Vegetable juices
Needs Not Met By Energy Categories:
Communicate Low Fat/Skim Milk Benefits*:
Low Fat/Skim Milk Outperforms Energy Cat.:
Note: *Must meet both criteria (1 and 2) before innovation
Closer-In Innovation Further-Out Innovation
Innovate Against Energy Competitive Set:
Develop low fat/skim milk positioning that optimizes above communication
Ex: Low fat/skim milk needs to communicate some of its inherent benefits, such as providing no added sugar and lowers cholesterol to compete with the above competitive set
Low fat/skim milk competes against these energy based categories (competitive set):
Important energy attributes needed to innovate:
* Must communicate all low fat/skim milk benefits (above) to innovate far-out:
Build new dairy/energy product: Low to high innovation/risk factor:
MODERATE INNOVATION
NEEDED
HIGH INNOVATION
NEEDED
LOW INNOVATION
NEEDED
• Unflavored fitness water • Soy milk
• Not applicable
• Vegetable juices
Is low in salt/ sodium Is sugar free
Fuse low fat/skim milk with energy product to create new hybrid product
Higher innovation… higher growth New product not yet invented Ex: Expand low fat/skim milk into
energy space by leveraging above benefits along with energy attributes to create breakthrough innovation fusion categories/products
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Relative Size of Prize For Dairy Snacking And Beverage Energy Occasions
Energy Related Snack Occasions
Energy Related Beverage Occasions
• Snacking is a $90+ billion industry
• 21% of snacking occasions are energy-related, which creates a:
$18.9 Billion 15.9 Billion Gallon
• Beverage a 53 billion gallon industry
• 30% of beverage occasions are energy-related, which creates a:
1: Innovation Center of U.S. Dairy, Snacking white paper (2009)2: Innovation Center of U.S. Dairy, Dairy Beverage Reinvented (2012)
Opportunity Opportunity
1 2
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What Else Might We Uncover From This Initial Work?
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Additional Mining of This Data Could:
• Look more deeply into protein energy connection
• Create work around energy dimensions – Example: sustained, natural or quick energy etc…
• Dig into the consumer target(s) of highest priority opportunities
• Explore some “lower priority” dairy categories
• Further refine sizing estimates based on new information
• Other issues of interest for your organization…?
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APPENDIXPowered by Dairy:
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Matrix™ Consumption UniverseMethodology Overview – Overall Food & Beverage
What is the Consumption Universe?
A comprehensive insight resource for food and beverage marketers, leveraging the proprietary TNS Matrix™ methodology to model how consumers see the market and make their product choices
Massive scope: 24,000 consumer interviews – 360 food, beverage, and snack products/categories evaluated across 360 occasion-based needs and product benefits, plus over 50 statements defining differentiated consumer targets based on shared beliefs, behaviors, and lifestyle factors
The Matrix™ Consumption Universe is designed to help you:
Understand all factors impacting consumer choice in your category – or a new category of interest
Quickly uncover bona fide gaps and opportunities grounded in consumer needs
Efficiently expand your perspective beyond traditional category definitions to identify new opportunities
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Survey Overview
Many approaches, such as A&U’s, ask a lot of questions on a survey, the more the better, and then hope something interesting surfaces.
Matrix instead leverages a consumer behavioral model to drive survey content and analytics/deliverables, and take the guesswork/risk out of research design and execution.
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What is a consumer target?
Consumers have varied lifestyles, behaviors, tensions, and beliefs which predispose them to act in certain ways.
Matrix uncovers the differentiated consumer segments which comprise your market targets – each with different beliefs, behaviors, and/or lifestyle tensions – and sizes them to aid prioritization.
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U.S. Consumption Universe – Consumer Segments
Food Aficionados Struggling DisciplinedCarefree
Overview of Beliefs & Lifestyles
These women provide basic home-cooked
food, and eat with their families. They are not focused on health or nutrition, and do not
limit themselves or feel guilty about it. They are not impacted by daily stresses in their lives.
These “foodies” are adventurous in life, cooking, and eating. They moderate their eating to maintain a
healthy lifestyle and an active social life. They enjoy freshly prepared foods more than fast
food or junk food.
Eating is important to these younger, single men, but they rely on
others to prepare foods for them – whether at
home or away. Their active, busy
lifestyle means they are often eating on the go, and they don’t worry
about weight or health issues.
Life is stressful for these consumers, and they
lack the energy to tackle life’s challenges.
Although they struggle with weight issues, they
rely on easy prep or simple meals to make their families happy.
They tend to stick with the “tried and true” in their food choices, and
often use food for comfort.
These consumers struggle to maintain a healthy weight and try to eat better, but don’t always succeed. They are focused on fresh
food and nutrition, and do not rely on fast food
for their meals.
For these single male consumers, food is fuel
that supports their on-the-go lifestyle. Takeout and quick-cooking foods are the basis of their meals
and snacks, and they rarely prepare their own food.
Neither explorers nor adventurers, they regularly eat the same foods. They
eat what they want without health concerns.
These consumers are mindful of health and nutrition, but struggle with weight issues and
guilt about eating. Image is important to these consumers, and
they take steps to exercise and look
attractive, but they are not truly satisfied with
how they look.
Although these older consumers are lovers of food and adventurous about eating, they are
proactive and disciplined in managing their food and nutrition choices. Freshness and
sources of the foods they choose are
important to them.
Home Cookin’ Family Pleaser(10%)
Conflicted Stressed Manager
(15%)
StressedStruggler
(15%)
Routine Convenience
Seeker
(10%)
Social Indulger
(11%)
Life-Balancing
Weight Manager
(11%)
Wellness Proactive
(13%)
Upbeat Food
Explorer
(14%)
LIVE TO EATEAT TO LIVE
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Yogurt Cereal
Yogurt - with probiotics Cereal - bran/high fiber
Yogurt - Greek type Cereal - 100% wholegrain
Yogurt - regular type Cereal - 100% nutritionally complete Drinkable yogurt BarsNuts, Granola Energy bars Granola, fruit, and nut mix in pouches Protein bars Granola/muesli Chewy granola bars Fortified nut mixes such as for bone or heart health Chewy granola/cereal bars with fiberTrail Mixes Nutritional bars Fruit Based Crunchy granola/cereal bars Dried fruit Fruit crisp bars Fresh fruit - whole Weight-loss meal replacement bars Fruit cups Dips/Spreads100% fruit smoothies - ready-to-drink Reduced-fat/fat-free vegetable dipsConfections/Treats Heart-healthy spreadsLow-calorie chocolate candy bars or clusters Crackers/SeedsReduced-calorie brownies Whole wheat/multigrain crackersPeanut butter in on-the-go cups Seeds (like sunflower, pumpkin, etc.)Natural/organic cookies
Energy-Related Categories (Snack Universe)
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Protein Drinks Energy BeveragesProtein-enhanced sports drinks Energy shots (like 5-Hour Energy, etc.)
Protein drinks - ready-to-drink Single-serve flavored powdered energy drink mix
Protein-enhanced water Energy drinks Weight Management Beverages Single-serve flavored powdered energy drink mixCalorie-burning beverages Coffee BeveragesWeight-loss beverages Brewed coffee - regularFuel/Functional Beverages Instant coffeePre-game fuel drinks Single-serve, one-cup-at-a-time coffee Post-game drinks with electrolytes and carbs Other BeveragesRegular ready-to-drink sports drinks Vegetable juicesLow-calorie ready-to-drink sports drinks Soy milk
Flavored fitness water Unflavored fitness water Herbally enhanced drinks Nutritionally complete drinks
Energy-Related Categories (Beverage Universe)