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Project Dairy

Project Dairy. A consumer research programme to test and promote awareness of health and nutritional advantages and preferences of milk and other dairy products. Product positioning and loyalty. Focused improvement: Combining performance and impact drivers. Impact. Performance ratings.

erin-bolton
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Project Dairy

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  1. Project Dairy A consumer research programme to test and promote awareness of health and nutritional advantages and preferences of milk and other dairy products

  2. Product positioning and loyalty

  3. Focused improvement: Combining performance and impact drivers Impact Performance ratings Impact identifies which attributes have the most effect on overall product loyalty. This is statistically derived as we CANNOT expect respondents to unpack this! Performance measures how well a product delivers on an attribute and can be asked directly to respondents Performance measures how well the touch point delivers on an attribute. Impact identifies which attributes have the most effect on overall loyalty. The impact scores show where efforts need to be targeted to make the MOST IMPROVEMENT on the brand loyalty.

  4. The Brand Relationship Model Business Success Business Enhancing Behaviours To drive business success (Formative) Brand Loyalty Attitudes To effect changes here Experiences Make improvements here The loyalty model is a proprietary tool of the Walker Information Global Network.

  5. The Brand Relationship Model The loyalty model is a proprietary tool of the Walker Global Network. Business Success Recommend Buy another product Go to another store Buy more in the future (Formative) Brand Loyalty Quality Image Value for money Prices Product visuals Utility Olfactory Packaging Ads, promos, availability Occasions Emotions Benefits Drawbacks Taking the time to truly understand customers’ perceptions and attitudes is important in measuring consumers’ loyalty to a product, which is most important for business success today.

  6. Loyalty drives the right behaviours Recommend Go to another store Buy more in the future Buy another Dairy product 0.64 0.62 0.51 0.14 (Formative) Brand Loyalty Product loyalty correlates highly with intended increase in future consumption, and also in consumers’ propensity to recommend the product and search for the right product by going from store to store. However, there is some likelihood that consumers will substitute their favourite dairy product for another should the occasion or need arise.

  7. (Pop. (wt.) (‘000s) =31540 ) Behavioural outcomes – looking at consumers’ stated future intentions and correlation with loyalty by product (slide 1 of 3) % Top Two box score Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown. 0.64 0.62 0.51 0.14 Significantly below average Significantly above average Both fresh and UHT full cream milk are good candidates for future increased consumption, but UHT is much more likely to be substituted, and consumers won’t necessarily search around for this product. Yoghurt, Gouda/Cheddar and butter will also not be searched, and butter seems to suffer from declining future interest and lack of commitment.

  8. (Pop. (wt.) (‘000s) = 31540 ) Behavioural outcomes – looking at consumers’ stated future intentions and correlation with loyalty by product (slide 2 of 3) % Top Two box score Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown. 0.64 0.62 0.51 0.14 Significantly below average Significantly above average All these products show low to negative behavioural intentions in the total population. Sweetened condensed milk is the weakest , followed by flavoured milk and cream. However, there is some resistance to substituting other dairy for cream or cheese spread, whereas UHT 2% milk is extremely likely to be substituted.

  9. (Pop. (wt.) (‘000s) =31540 ) Behavioural outcomes – looking at consumers’ stated future intentions and correlation with loyalty by product (slide 3 of 3) % Top Two box score Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown. 0.64 0.62 0.51 0.14 Significantly below average Significantly above average In the total population, feta cheese, buttermilk and cottage cheese face similar fates as butter and other cheeses (see previous slide). These products appeal to niche markets.

  10. Likely substitutes for unavailable dairy products (slide 1 of 3) (Mentions of 1% or higher, where appropriate, shown; products with raw bases of 50+ shown) Significantly higher than average Most likely substitute; and significantly higher than average

  11. Likely substitutes for unavailable dairy products (slide 1 of 3) (Mentions of 1% or higher, where appropriate, shown; products with raw bases of 50+ shown)

  12. Key facts about product rejection and substitution • Should a favourite dairy product not be available, the likely substitutes will be: • Fresh full-cream milk: UHT full-cream milk, and vice versa • Maas: Fresh full-cream milk • Gouda/cheddar: Cheese spread or other cheese, and vice versa • Normal yoghurt: Drinking yoghurt, and vice versa • Fresh 2% fat milk: UHT 2% fat milk, and vice versa • Butter: margarine • Cream: Normal yoghurt When any dairy product is not available, it would most likely be replaced by another dairy product, except in the case of butter. There is high interchange ability between fresh and UHT for similar levels of fat content, between cheeses of various consistency and between yoghurts. Surprisingly, normal yoghurt will often stand in for cream

  13. Product loyalty:Challenging the concepts of satisfaction & retention • Consumers buy brands for different reasons: • Ought to stay - the consumer feels obligated to buy • (Normative Commitment) • Need to stay - the consumer is trapped in their relationship (Continuance Commitment) • Wants to stay - the consumer feels personally attached to the brand • (Affective Commitment) A stakeholder loyalty measurement tool that does not distinguish stakeholders according to their felt desire, need, and sense of obligation to the company will omit information that is critical to the accurate prediction of retention.

  14. Product loyalty:Challenging the concepts of satisfaction & retention • Consumers feeling personally attached to the product and wanting to stay in the relationship is the kind of loyalty organisations want to achieve • Wanting to stay hinges on more than mere satisfaction • Satisfaction is good, but is a minimum requirement and is not predictive of retention • Retention alone is also not sufficient since some customers are trapped • Therefore, we need to measure and manage loyalty - properly conceptualised

  15. Measuring satisfaction has evolved to managing loyalty Satisfaction Quality and Value Commitment Loyalty 1990 to present 1980s to 1990s 1970s to 1980s In an holistic measurement, all of these elements contribute to a complete understanding of consumer relationships.

  16. What on earth is the difference between commitment and loyalty? LOYALTY COMMITMENT Attitudinal Commitment PLUSBehavioural intention to stay Attitudinal: sentiment tends to the positive Remember: value can only be created by changes in consumer behaviour. Changes in consumer attitudes are important, but in and of themselves, they don’t generate future cash flow.

  17. How does the dairy industry as a whole measure up in terms of consumer loyalty? - Behaviour + Maintain and grow relationship Intervene and re-direct 67% Truly Loyal 3% Accessible – Attitude + At Risk 11% Essentially satisfied 18% Address concerns to retain or enhance If profitable, save • Matrix classifications are based on a proprietary statistical algorithm developed by Walker Global Network. • Theoretical model framework is credited to Dick and Basu, Journal of the Academy of Marketing Science, 1994.

  18. (Pop. (wt.) (‘000s) =31540 ) Comparing loyalty (slide 1 of 3) % Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown. Fresh milk (full cream and 2%), UHT (full cream) and maas are loyalty leaders. Yoghurt, Gouda/Cheddar and butter have low loyalty, but many essentially satisfied users. Butter is particularly at risk of future lapsing (i.e. people will stop using butter).

  19. (Pop. (wt.) (‘000s) =31540 ) Comparing loyalty (slide 2 of 3) % Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown. Baby milk powder and UHT 2% have loyalty status that is on par with the average. Future lapsing is extremely likely for sweetened condensed milk, whilst flavoured milk, drinking yoghurt and cream have high numbers of essentially satisfied to attitudinally negative users – also recall that these products have niche markets.

  20. (Pop. (wt.) (‘000s) =31540 ) Comparing loyalty (slide 3 of 3) % Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown. Baby milk powder and UHT 2% have loyalty status that is on par with the average. Future lapsing is extremely likely for sweetened condensed milk, whilst flavoured milk, drinking yoghurt and cream have high numbers of essentially satisfied to attitudinally negative users – also recall that these products have niche markets.

  21. Identifying the attitudinal drivers of loyalty Business Success Loyalty Consumer Attitudes The next focus is on key drivers of loyalty.

  22. Loyalty drives the right behaviours (Formative) Brand Loyalty 0.10 NS 0.32 Market model 0.31 Prices Quality Image Value for money • Impact scores >0.1 are significant • NS = not significant Quality and image are key drivers of loyalty to dairy products. We saw earlier that prices are likely reasons why people would stop using a product or not try it at all, thus it is no surprise that prices have an impact on loyalty. Value for money is not a key driver in the dairy market per se, although this could look different if brands are introduced.

  23. (Pop. (wt.) (‘000s) =31540 ) % Top Two box score Attitudinal level – Image ranked by effect on loyalty (slide 1 of 3) 0.38 0.33 0.24 0.23 0.18 0.14 0.14 0.14 NS NS NS NS Not significant Significantly below average Significantly above average Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown.

  24. (Pop. (wt.) (‘000s) =31540 ) % Top Two box score Attitudinal level – Image ranked by effect on loyalty (slide 2 of 3) 0.38 0.33 0.24 0.23 0.18 0.14 0.14 0.14 NS NS NS Second lowest score in all categories; and significantly lower than average Lowest score in all categories; and significantly lower than average Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown. NS Not significant

  25. (Pop. (wt.) (‘000s) =31540 ) % Top Two box score Attitudinal level – Image ranked by effect on loyalty (slide 3 of 3) 0.38 0.33 0.24 0.23 0.18 0.14 0.14 0.14 NS NS NS Second lowest score in all categories; and significantly lower than average Lowest score in all categories; and significantly lower than average Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown. NS Not significant

  26. (Pop. (wt.) (‘000s) =31540 ) % Top Two box score Attitudinal level – quality, price and value for money ranked by effect on loyalty (slide 1 of 3) 0.32 0.10 n/s NS Not significant Significantly below average Significantly above average Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown.

  27. (Pop. (wt.) (‘000s) =31540 ) % Top Two box score Attitudinal level – quality, price and value for money ranked by effect on loyalty (slide 2 of 3) 0.32 0.10 n/s NS Not significant Significantly below average Significantly above average Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown.

  28. (Pop. (wt.) (‘000s) =31540 ) % Top Two box score Attitudinal level – quality, price and value for money ranked by effect on loyalty (slide 3 of 3) 0.32 0.10 n/s NS Not significant Significantly below average Significantly above average Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown.

  29. Product experiences that drive loyaloty (Formative) Brand Loyalty Ads/Promotions/Availability Utility Benefits Product Visuals Drawbacks 0.42 0.18 0.12 0.11 0.10 Market model Emotions Packaging Occasion Ollfactory impact n/s n/s 0.10 n/s • Impact scores >0.1 are significant • NS = not significant

  30. Touch Point 1 • The process area with the most significant impact on Loyalty is: • Advertising, promotions and availability • Impact on Loyalty is0.42

  31. Advertising, promotions and availability, with contributing attributes ranked according to their respective overall effect on loyalty 0.29 n/s n/s n/s

  32. (Pop. (wt.) (‘000s) =31540 ) Advertising, promotions and availability (slide 1 of 3) Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown. Significantly below average Significantly above average

  33. (Pop. (wt.) (‘000s) =31540 ) Advertising, promotions and availability (slide 2 of 3) Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown. Significantly below average Significantly above average

  34. (Pop. (wt.) (‘000s) =31540 ) Advertising, promotions and availability (slide 3 of 3) Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown. Significantly below average Significantly above average

  35. Touch Point 2 • The process area with the second most significant impact on Loyalty is: • Utility • Impact on Loyalty is0.18

  36. Utility, with contributing attributes ranked according to their respective overall effect on loyalty 0.22 0.16 0.14 0.14 0.13 0.13 0.12 0.11 n/s n/s n/s n/s

  37. (Pop. (wt.) (‘000s) =31540 ) Utility (slide 1 of 3) Significant driver of loyalty Significantly below average Significantly above average Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown.

  38. (Pop. (wt.) (‘000s) =31540 ) Utility (slide 2 of 3) Significant driver of loyalty Significantly below average Significantly above average Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown.

  39. (Pop. (wt.) (‘000s) =31540 ) Utility (slide 3 of 3) Significant driver of loyalty Significantly below average Significantly above average Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown.

  40. Touch Point 3 • The process area with the third most significant impact on Loyalty is: • Product Visuals • Impact on Loyalty is0.11

  41. Product Visuals, with contributing attributes ranked according to their respective overall effect on loyalty 0.17 n/s n/s

  42. (Pop. (wt.) (‘000s) =31540 ) Product Visuals Significant driver of loyalty Significantly below average Significantly above average Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown.

  43. Touch Point 4 • The process area with the fourth most significant impact on Loyalty is: • Olfactory Impact • Impact on Loyalty isn/s

  44. Olfactory Impact, with contributing attributes ranked according to their respective overall effect on loyalty 0.15 0.14 0.13 0.13 0.12 n/s n/s n/s n/s

  45. (Pop. (wt.) (‘000s) =31540 ) Olfactory Impact (slide 1 of 3) Significant driver of loyalty Significantly below average Significantly above average Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown.

  46. (Pop. (wt.) (‘000s) =31540 ) Olfactory Impact (slide 2 of 3) Significant driver of loyalty Significantly below average Significantly above average Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown.

  47. (Pop. (wt.) (‘000s) =31540 ) Olfactory Impact (slide 3 of 3) Significant driver of loyalty Significantly below average Significantly above average Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown.

  48. Touch Point 5 • The process area with the fifth most significant impact on Loyalty is: • Packaging • Impact on Loyalty isn/s

  49. Packaging, with contributing attributes ranked according to their respective overall effect on loyalty 0.14 0.13 0.10 n/s n/s n/s

  50. (Pop. (wt.) (‘000s) =31540 ) Packaging (slide 1 of 3) Significant driver of loyalty Significantly below average Significantly above average Results are based on consumers who have ever used or tried a product. Only products with unweighted bases of at least 50 are shown.

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