Project Deli Qualitative Research

1. Project Deli Qualitative Research Prepared by Erica Littlewood and Richard Webber of Cambridge Direction August 2010

2. Research objectives Market position and proposition: • To gain an understanding of the competitors to the new Brakes offer – strengths/weaknesses – how these sit within a caterer’s portfolio of suppliers • To assess the caterers’ reactions towards the proposed “Brakes” specialist deli offer and understand the part it will play in the context of existing/competitive suppliers • To understand what the optimum branding should be: to test new and existing names for this proposition (e.g. Wild Harvest, Larderfresh and new names created to communicate the ‘Specialist Deli’ proposition) • To ascertain respondent’s perception of how a Brakes offer would sit within the existing marketplace – strengths and weaknesses of a Brakes offer versus competitors • Specifically to understand a Brakes offer in the context of: • Range • Deliveries • Packaging/branding Cambridge Direction

3. Methodology and sample - Qualitative research Group discussion with Brakes and Non-Brakes customers • Six two hour qualitative group discussions were conducted with caterers who were responsible for purchasing and who bought from a prompted list of deli products: • Bradford – Non-Brakes customers – 5th August 2010 • Coalville – Brakes customers – 9th August • St Albans – Brakes customers – 10th August • St Albans – Non-Brakes customers – 11th August • Brighton – Brakes customers – 12th August • Sawbridgeworth – Brakes customers – 16th August • The 15 non-customers were using wholesaler delivered or Booker C’n’C • Respondents were shown possible names for the Deli offer, possible logo developments of these names and a range of branded and own-label products • All the groups were conducted by Erica Littlewood or Richard Webber of Cambridge Direction during August 2010 Cambridge Direction

4. Methodology and sample - Qualitative research Depth interviews with Corporate customers • Telephone interviews were conducted with six corporate contacts supplied by Brakes – interviews lasting from 45 mins to an hour • Steve Fox – Baxter Storey • David Mulcahy – Sodexo • Andrea Lunn-Courtnell - Sodexo • Nitin Patel – Aramark • Marco Romeo - Aramark • Philippe Bacconnier – John Lewis • All the interviews were conducted by Erica Littlewood or Richard Webber of Cambridge Direction during August 2010 Cambridge Direction

5. The findings Cambridge Direction

6. Defining “deli” products and associations Clear associations • “Deli” foods were often seen as Mediterranean: • “Imported like marinated olives, artichokes.” • There was also a link with “deli counters” in supermarkets: • “Paté on display, olives and anti-pasta too.” • And a strong association with “fresh” products – cured sliced meats, cheese • Slight tendency to see these as products not to cook with but to serve cold and “as they come” “Delicatessen” richer associations • The longer word conjured up images of more traditional shops selling a wide range of both fresh and tinned/preserved foods • Using the word “Deli” will not necessarily act as a barrier to interest, but if “delicatessen” is used in communication this will broaden and deepen perceptions of what the offer is Cambridge Direction

7. Defining “deli” products and associations “Specialist” and “Speciality”-Wider origins and cuisines acceptable • These caterers were happy to accept a wider range than just Mediterranean under this banner: • Local farm cheeses and dairy • Local produce – inc. meats, fruit, veg, preserves • Smoked products • Organic products • Oriental foods – more snacks than cooking sauces • Strongly seasonal foods • “Things with a foreign influence.” And: • Speciality breads Cambridge Direction

8. Current habits – Sources for “Deli” products A wide range of suppliers available and used • There was agreement that supplying deli and specialist foods was: • “Not as specialist as it used to be.” • “Not many people (suppliers) don’t do it.” • This means that Brakes faces competition from many angles: • Supermarkets • Retail wholesale discounters – Liddl, Makro and Costco • Other local suppliers – butcher, greengrocer, dairy • Wholesalers • Cash’n’Carries • Markets and Farmer’s Markets • Local producers • Specialist deli suppliers – shops and wholesalers Cambridge Direction

9. Current habits – Sources for “Deli” products Mapping suppliers of deli and specialist products Higher prices • Markets • Local producers • Specialists • Wholesalers Most specialist range and best quality • Cash’n’Carries • Other local suppliers • Retail wholesale discounters Basic range • Supermarkets Lower prices Cambridge Direction

10. Current habits – Sources for “Deli” products Supermarkets • A large number of these caterers were using supermarkets for their deli foods – often sliced and cured meats, but also olives and cheeses: • “Supermarkets because easy to use when I need them…I always go to Waitrose for Chinese Sprouts and Chorizo, I don’t need too much, just a lump at a time.” • The advantage of Supermarkets were: • Pack size and freshness (shelf-life) or products – e.g. 250gm not 500gm+ • Quality • Price: • “I’ve found Sainsburys cheaper than any supplier for many things.” • Range • Can browse and look at items being bought: • “I use supermarkets because I don’t want huge quantities and you can see what your getting.” • The only disadvantage of supermarkets being the need to visit them Cambridge Direction

11. Current habits – Sources for “Deli” products Makro, Costco and Lidl • These sources were also used in a similar way to the supermarkets – each with their own strengths and weaknesses but generally having good displays of food and sampling too • Lidl – As a German company a feeling they “knew” their salami! • Makro: • “I like to pick what I want.” • “I’ll nip to Makro and I’ll see things and think ‘I’ll do so and so dish’.” • “You can order from Makro now, they’ve got telesales and reps and they’ll deliver, they’re trying to take-over from Bookers.” • Costco – displays the food well but can be expensive Booker Cash’n’Carry • This was used by some where they had found a good value item of acceptable quality: • “The smoked salmon at Bookers is good value, much better than Costco, I’ll get some cheeses, some meats, salamis while getting other things. They’re an add-on.” Cambridge Direction

12. Current habits – Sources for “Deli” products Farmer’s markets, markets and local producers • Markets were used by many but often found to be very expensive though knowledgeable • Local producers had a focussed range often of single products but satisfied the need for “local” items on the menu Specialist deli and specialist food suppliers • A number of these caterers used more specialist suppliers, but not all did: • “Leathams for sundried tomatoes, Proscutto, salami…Leathams specialise in smoked meats.” • “Leathams are great, no one is a foodie at Brakes, you want passion from your specialist.” Corporate • “Ritters for bits and bobs and sometimes do add things to the Brakes order if I’m stuck but not all the time because the price will be so high with Brakes, the cheeseman will be much better.” • “Ritters price is better than Brakes for Italian speciality meats like Palma ham, Brakes quality is on a par but the price is much higher.” • “IB foods from London do my vanilla paste and dried pasta.” • “A couple of Italian suppliers from London, like Alivini.” • “M&J for shellfish.” Cambridge Direction

13. Current habits – Sources for “Deli” products Local non-deli suppliers • Many of these caterers could get some deli items from their greengrocers, butchers and dairy suppliers: • “Even butchers do cheese.” • “Have a cheese suppler, Bermick Cheese, comes in a little van…also sells me olives and balsamic vinegar sometimes.” • The ranges tended to be limited – though sometimes starting off broad they contracted after the first months of sale as demand limited what was viable to offer Cambridge Direction

14. Current habits – Sources for “Deli” products - Wholesalers Wholesalers in general • A key issue with the wholesalers was the volumes that had to be bought: • “3663 sell cases not packets.” • “If you only wont small quantities say once a fortnight you have to order too much and you don’t want it sitting around, it’s expensive.” of Brakes • The caterer’s need for smaller amounts often meant it was not viable to use these wholesalers • Volume deals linked to frequency of ordering similarly thwarted use of wholesalers such as Brakes: • “You can’t deal and get the price right because you can’t guarantee x amount per week.” • Wholesalers were perceived to have limited ranges: • “Most of the wholesalers like JJs and A to Z have something, but not the full range, not enough for me.” Cambridge Direction

15. Current habits – Sources for “Deli” products - Brakes Brakes – used for some but not all deli products • Brakes was picking up some but not all of the deli products being bought by customers • Customers were buying specific lines from Brakes: • “Most of our meat and cheese is from ‘Direct meats’ but I get mozzarella from Brakes, the Italian one for our tomato and mushroom stack.” • “I go to Brakes now for my Motazrella balls as they’re twice as good quality than The Cheeseman, Brakes are a bit more expensive, £15.99 per kilo versus £10.95.” • “I’ve used Brakes for some cheeses and salamis and other cured meat and pate, quality of the products is good.” • “I might go to Brakes for the basic stuff, like canapés.” Cambridge Direction

16. Current habits – Sources for “Deli” products - Brakes Perception of a limited range at Brakes • Once reason for this is a perception that Brakes will not have the product and just do the basics: • “Brakes don’t specialise in smoked meats like Leathams do.” • “Brakes are missing out at the moment, they can’t answer all our needs, like for Charcuterie products.” Corporate • And availability issues too: • “Brakes struggled getting Sundblushed tomatoes, must have been a sourcing problem, so I’m going to Tesco now, I didn’t get an answer from telesales really.” • “The problem with Brakes is their range isn’t wide enough and their price is out by a long way.” Pricing issues too • There were a number of examples cited where Brakes was not seen as competitive: • “Brakes olive oil would be double the price even if we phoned the rep, Brakes can’t compete price wise.” Cambridge Direction

17. Current habits – Sources for “Deli” products - Brakes Lack of the right degree of authenticity • For some of the more culinary relying on deli products served “raw” front-of-house, Brakes did not always have the right quality: • “What I buy from Brakes must come from the country of origin, like “Italian salamis, I also get things like stuffed tomatoes and stuffed peppers from Brakes, if it hasn’t got the country of origin on it I send it back, I am using it for our Tapas bar all the time so it’s important.” • “We buy these products from specialist suppliers, Brakes products are not premium enough. Brakes would need to step up to the mark in terms of quality, it would need to be better.” Corporate • “I’d give Brakes 2 stars, Leathams 3 ½ and Brindisa, for example, 5 stars.” Corporate Cambridge Direction

18. Current habits – Sources for “Deli” products - Competition An accessible and competitive market • Agreement that the availability of the basic deli products was now very widespread • The quality differences were seen as “much of a muchness” so the rôle of price was more important as you could shop around and still get good quality products: • “All very much the same so it comes down to price.” • However, the more specialist the source the more premium a price was charged, though here the quality and provenance might warrant this • Farmer’s markets were felt to be very expensive compared to supermarkets and wholesalers, for example, however what you did get was: • Top quality product • Knowledgeable and passionate staff • Quantities exactly was you needed • Brakes will need careful price, range and service positioning to create a competitive yet distinctive place in the growing and crowded market Cambridge Direction

19. Current habits – Sources for “Deli” products - Brakes The Brakes Deli offer – summary • Among the Brakes customers the offer from Brakes was seen as: • Limited in range • Expensive compared to other suppliers – especially supermarkets • Lacking in the smaller pack sizes most often wanted • Restricted by minimum order values • Limited to price-lists – no visual stimulation • No ability to taste before buying • No passion or innovation • In a market context is was: • Competing on a very broad front • Competing with retail as much as wholesale and specialist • Not offering any broad competitive advantage in: • Price • Product • Knowledge • Range • Specialism Cambridge Direction

20. Benefits offered by suppliers Cambridge Direction

21. Caterer needs – Pack size Pack size – too large • This was one of the key issues with the national wholesalers – the un-availability of small pack sizes: • “250 grams of Parma ham for a function.” • “Half kilo of artichokes, a small bag rather than 2 ½ kilos.” • “Baby Mozzarella balls, at least 10 in a case and only want 4-5.” • “Half kilo of chorizo, for soup.” • The smaller packs in supermarkets were ideal as often only small amounts were needed at any one time and un-opened packs could be kept until needed • These independent caterers needed smaller pack sizes to meet their needs – these were not available from Brakes • They could accept bulk packs containing individual, sealed smaller packs – as long as they had a long shelf life Cambridge Direction

22. Caterer needs – Seeing the product Products on display • For most of these caterers the ability to browse the deli products and both select and be inspired was important • They felt in touch with, and stimulated by, these more specialist and expensive foods • Printed price lists did not inspire, stimulate and “give back” in the same way The need to see and judge products • The more central the deli product was to the finished dish, the more important it was it for the caterer to have seen and judge it prior to buying: • “If I’m buying olive oil for dipping I want to see the colour and to taste it. If it’s only for cooking I’m less worried.” • The Brakes deli product offer did not allow caterers to see and taste new products before buying, it was reduced to simple price list ordering – clinical and not inspiring at all Cambridge Direction

23. Caterer needs – deliveries and response times Deli goods often needed urgently • Deli goods were felt to be more likely to be needed next day because: • Small volume packs/stocks held – so can run-out if demand unpredictable • Not a standard larder/fridge item always held • Last minute ordering of buffet/snack/hospitality food • Where a caterer was using a supermarket as a source this was part of the “cost” and could be actioned whenever, but where a wholesaler was being used with more restricted delivery times this could be an problem “Shopping trips” • The evidence was that when these caterers visited a store, whether supermarket or Lidl/Makro/Booker, they would buy items other than just the deli lines they needed Makro delivering • There was evidence that Makro was targeting the independent Pub trade with a delivered service in the Bradford area Cambridge Direction

24. Brakes Deli Proposition – Level of interest Good interest among independents • Respondents were asked to score two possible deli propositions out of 10 and to indicate which of the two routes they preferred for their situation: • A: Available through the normal Brakes chilled and grocery channels and delivered on the normal lorries – an extension to their normal range but with a separate catalogue • Ave. 6.7 out of 10 for interest: 24 preferred it over B • B: Available from a new specialist company set-up by Brakes that has its own reps, catalogue, telesales and delivery vans • Ave. 5.7 out of 10 for interest: 13 preferred it over A Cambridge Direction

25. Brakes Deli Proposition – Level of interest Very good intentions from Brakes independent customers • After discussion the final levels of interest among the 41 respondents was high • There were caveats on choice of option C – non-Brakes lorries and a separate business for a few , but for most single deliveries and no need to open a separate account • Interest among the 15 non-Brakes customers was more guarded – 8 opting for C and 7 saying they’d look but felt unlikely that they’d change (B) Cambridge Direction

26. Brakes Deli Proposition – Level of interest – Corporate customers More guarded response from Corporate customers • The majority of the corporate customers interviewed were positive – though with varying degrees of cynicism as to whether Brakes could deliver the full extent of the proposition: • “Brakes can do this well if they can get their perceptions of quality and expertise raised. They did an extremely good job on La Boulangerie.” Corporate • The aspect of Brakes being able to operate nationally was a positive: • “If they got it right the logistical cover would be good versus other companies i.e. the whole of the UK…and less invoicing, quite convenient.” Corporate • And the one-stop model was supported too • There was some concern was over the ability of Brakes to deliver the expertise and knowledge behind such a specialist offer: • “They’d need specialist staff, not telesales people who have no product knowledge…our suppliers at the moment do have that knowledge…Brakes would need to demonstrate to me that they are going to supply a similar service as the small specialists, it can’t just be about a new catalogue, it has to be more than just a brochure.” Corporate Cambridge Direction

27. Brakes Deli Proposition – Level of interest “A new specialist company…” for the more culinary • The 13 caterers who preferred this were more likely to be the more culinary of the caterers in the groups – 7 of these 13 exhibited a more culinary approach to their cooking and menus • (In total there were 11 caterers who were felt to be more culinary than the others) No apparent bias towards non-Brakes customers for a separate company • Only 3 of the 9 Non-Brakes customers shown these two options, opted for this route – the majority preferring a one-stop solution should they choose to move their business to Brakes – and about half of these felt they might be open: • “If I dealt with Brakes already than I’d probably go for A but I don’t so given it’s going to be another delivery anyway I’d go for B as I’d rather not have the Brakes name on the lorry.” (Non-customer) • “I’d rather deal with a specialist company who know about the products, telesales wouldn’t know.” (Non-customer) • Note: The Bradford group of 6 non-Customers was not shown the split proposition as this was developed following their group Cambridge Direction

28. Brakes Deli Proposition – positives - Independents A lot of potential benefits seen • The Brakes customers in particular saw positives in the outline propositions • Many of these were assumptions, but these reflect their needs and wishes: • Cheaper prices – Brakes has buying power • Ability to source deli products along with everyday Brakes products – one-stop shopping • Reduced order/accounts time – single telesales and single account • Brakes quality and service reliability • Products delivered rather than collected Cambridge Direction

29. Brakes Deli Proposition – concerns – a new account to be opened Opening another Brakes account • The majority resist the idea of setting-up another account with another set of invoices/telesales calls to deal with • The need for a second Brakes account will be a barrier to some – possibly many • There was evidence of some caterers already not using Brakes for, say, frozen because of the need to set-up a separate account from their existing grocery account • Running the deli offer from within the current accounts offering it a distinct advantage Cambridge Direction

30. Brakes Deli Proposition – concerns – another delivery to deal with Meeting optimum delivery needs • Optimum need for the majority is for a single delivery for all goods ordered from Brakes: • “I don’t want another delivery van.” • “Delivery via their normal lorries is fine, it’s good for reducing carbon footprint and easier if it arrives with the main order too, it’s more practical to have one delivery.” Corporate • Offering a new and separate deli delivery goes against this need Flexible approach to deliveries and supply • With a need often for quick supply of deli products to meet unpredictable demand and reflect low stock holdings, speed of reaction can be important • There was some concerns among corporate customers about this as well as with the independents: • “Brakes will not be flexible enough, they’ll have restrictions on the volumes we can order, we might need something in a week and they’ll want a 28 days lead time. Our specialists might delivery daily, it varies tremendously, Brakes would be once a week, so not responsive.”Corporate Cambridge Direction

31. Brakes Deli Proposition – concerns – another delivery to deal with Next Day delivery • The availability of a next day service would certainly be a positive – though most of these caterers managed their ordering and deliveries well enough to avoid regular trips to their back-up sources • Reassurance of next day is good and will prevent visits to the supermarket/Makro/Costco • Issues would be raised with minimum order values and restricted delivery cycles for smaller accounts – making use of Brakes unviable Cambridge Direction

32. Brakes Deli Proposition – pack size and freshness Pack size – small please! • The very widespread use and need for smaller pack sizes – 250gm rather than 500 gm or kilo plus meant these caterers wanted these smaller sizes to be available from Brakes: • “We might only do three to four portions of Parma Ham.” Volumes being used drives pack sizes being bought • Pack sizes need to reflect the usage needs of the caterers being targeted Guarantees of shelf-life • The ability to choose the longest shelf life products when “out shopping” was a significant area where the caterer was in control of their purchasing, there was a feeling that with Brakes you often got short-life products: • “The life with Brakes can be short, sometimes it arrives and it’s only two or three days.” • “The guys don’t always check the dates when things are delivered.” Cambridge Direction

33. Brakes Deli Proposition – reactions of non Brakes customers Concerns about Brakes overall from Non-Brakes customers • Many non-Brakes customers felt that Brakes was not interested in the smaller independents and was more geared to the larger volume accounts • This influenced their perceptions of how well a deli offer would be presented to them as smaller independents: • Minimum orders • Poor customer service: • “They give the impression that they’re doing you a favour rather than the other way round.” • “They’re arrogant towards the small caterer.” Un-competitive prices • Price was a big issue to for these non-customers: • “You know it will be twice the price of Sainsbury’s.” • “You’re looking at sizes and quantities and minimum drop and then on the rest of your products they need to try to get their products in-line with other suppliers, and then you could say ‘I’ll get my specialist products off you too’.” Cambridge Direction

34. Brakes Deli Proposition – expectations of range A broad range of products to suit a range of needs • There was an expectation that the range would be extensive: • Covering fresh, chilled and grocery – less so frozen • Covering all areas of deli and specialist foods: • “Everything really, continental, Indian, Chinese.” • “Japanese be nice.” • “Anything special like English cheeses and pickles…Stinking Bishop cheese.” • The products listed needed to reflect a serious approach to deli but acknowledging the range of need occasions: • “Would want to see authentic brands and expect them to be sourcing the best products from the country of origin.” • “Bookers do a very good cheap smoked salmon, it would be good to see that kind of thing.” Cambridge Direction

35. Brakes Deli Proposition – expectations of range price points Tiered ranges to suit all needs • There was a need for different price bands of product to meet: • Differing budgets available for an item: • “If we’re doing a wedding we’ve a higher budget to spend.” • “Even with pasta there is a big range and it depends on the function.” • Different kitchen needs: • Cooking/ingredient = cheaper/lower quality • Cold presentation = higher quality (taste and appearance) • “A bulk Brakes tin of olives is fine for tapenade.” • “Cheap cured meat for wrapping and cooking versus eating by itself.” • “Cheap olives for sauces versus better quality to eat straight away.” • There was an expectation that Brakes would offer a portfolio of products from the basic price points to the most specialist and premium Cambridge Direction

36. Brakes Deli Proposition – Prompted NAMES A range of names acceptable • Four of the six groups were exposed to the composite name of Wild Harvest Deli • First and second preferences placed Wild Harvest Deli comfortably above all other names • The addition of “Deli” added a breadth to the offer of “wild products” • However, while “deli” was acceptable to most, there were some caterers and corporates who disliked it: • “Deli isn’t singing high end products.” Corporate • The second most popular was The Fresh Deli – the “fresh” adding an emotive element suggesting freshness But… • There was also a feeling that using the full version of “delicatessen” was more positive than the abbreviated “deli” where there was a sense that it was less a complete offer: • “With ‘Deli’ you think of supermarket deli counters, cold meats etc.” • “Delicatessen is better.” • “A delicatessen is where you get all kinds of specialist food.” Cambridge Direction

37. Brakes Deli Proposition – Prompted NAMES Why simple names less popular • Cynicism over the use of “ideal” and “original” – not seen as truthful or informative • “Extra” was a positive for some (extra effort, extra range) but reminded many of Tesco’s Extra • These word combinations added no depth of meaning to the offer Larderfresh • Some residual memories – not all positive: • “I knew Larderfresh but it’s not deli ingredients” Corporate • “Larder” was felt by many to be an old fashioned word too and not relevant: • “That doesn’t make sense, larder isn’t fresh.” Corporate • “It’s done, it’s an ‘Eighties brand.” Corporate Cambridge Direction

38. Brakes Deli Proposition – Prompted NAMES A range of names prompted – keeping Brakes out of the name was a positive: “Don’t include Brakes in the description, don’t want association with Brakes.” Corporate “Deli Extra” carries Tesco associations for many Ave scores based on 40 for all names apart from Wild Harvest and Wild Harvest Deli – based on 27 respondents 1st and 2nd places based on 27 respondents rating all eight names Cambridge Direction

39. Brakes Deli Proposition – NAMES A need for an identifying name • Irrespective of whether the respondents wanted the deli offer to be within Brakes or separate from it, there was agreement of the value of focussing it with a distinctive and evocative name • The prompted names included some workable solutions, but there were none that engaged with the caterer and communicated any specialist depth to the offer • The exception being Wild Harvest that engendered a more evocative proposition – though it needed to be qualified with “Deli” to focus it on the more common deli products and avoid having too wild a product offer • However, the current Wild Harvest offer would also suit those respondents who wanted a separate deli supplier and did not want the obvious links to Brakes • If Wild Harvest is used in its existing form (as a separate business), then a new name would obviously be needed for an offer that was run from within the main Brakes business • “The Fresh Deli” was the best of the other names (“Extra” too associated with Tescos) – using the word Delicatessen could be an option – The Fresh Delicatessen or The Delicatessen Cambridge Direction

40. Brakes Deli Proposition – Prompted LOGO DESIGNS Prompted logo designs • The independent caterers judged the logos designs based on the overall creative feel and not the name being used • The most popular were: Cambridge Direction

41. PACKAGING - What caterers look for in a “deli” product Minimum communication is the country of origin • The most important fact to communicate after the product descriptor is that the item is produced in the correct country of origin: • “We need to be reassured about the provenance, so does it come from Italy? It can be under an own brand but they must tell us it’s authentic…we don’t need the actual Italian brand but we do need provenance .” Corporate • This can be simply done by stating “Spanish Chorizo” for example • The message can be reinforced by saying “Made in Spain” or using a Spanish flag: • “You need to see the country’s flag, like the Spanish flag to know its origin is okay.” • All products must clearly state the country of origin to add the entry level authenticity Cambridge Direction

42. PACKAGING – Hierarchy of communication needs Hierarchy of communication of packaging Cambridge Direction

43. PACKAGING - What caterers look for in a “deli” product Adding depth and authenticity • To add more authenticity, justify a premium and satisfy the more culinary, further evidence of provenance is needed, on a varying scale including: • Foreign branding and labels • Region or locality • Farm name (for UK produced items) • Symbols of authenticity – D.O.P – Denominazione di Origine Protetta etc Highest levels of authenticity • The really culinary caterers with a personal interest and budgets to match, were motivated by buying the best possible quality products: • “Sometimes better to find something different and not well known and not something you see at home.” Corporate • For the majority however, the country of origin was enough, having a deeper level of provenance was not always necessary: • “Provenance is only important if you’re putting it on the menu.” Cambridge Direction

44. PACKAGING - The rôle of own-label and brands Un-branded and own-label accepted • In most instances these caterers were used to seeing and buying supermarket own-label packs and were happy with this quality and level of authenticity – they trusted the sources to be getting the proper products Wholesaler brands • Similarly they could be accepting of wholesaler own-brands too: • “At the end of the day if the product is good then fine, use it, regardless of the name.” • “Fine we’re not passing the brand onto the consumer at all so it’s all about product quality, quality of ingredients, so if it’s right then own brand is fine.” Corporate • The Leathams own-brand “Gourmet” was known by a few and respected because the parent company had specialist credentials: • “Leathams have their own brand ‘Gourmet’ but the quality is very good and much better quality than Brakes because they (Leathams) specialise in this area.” • “Leathams are a small company and specialise in this area, they go to Italy and created things for the chefs to use.” Cambridge Direction

45. PACKAGING - The rôle of own-label and brands • Mapping of brands and own-labels vs credibility Highest credibility Foreign labelled origin brands Specialist Wholesaler Own Labels – Leathams Gourmet Basic core range products Most specialist range and best quality products Supermarket & Wholesaler Own Labels (inc Brakes) Acceptable Cambridge Direction

46. PACKAGING – Reactions to prompted stimulus Packaging does influence perceptions • Ultimately these caterers made re-purchase judgements based on the taste and performance of the products: • “…it’s down to how it tastes, it doesn’t matter what’s on the label.” • However, the branding and appearance of the packaging did: • Influence perceptions of quality and desirability when purchasing for the first time • Reinforce values when repeat purchasing • Responses to the packs shown does reveal a rôle for a mix of own-label and brands to establish both a sense of range and of authenticity and that Brakes is taking the deli offer seriously Cambridge Direction

47. PACKAGING – Reactions to prompted branded packaging Branded packs did communicate values • The branded packs shown fell into two groups: • Recognised brands such as Blue Dragon and Merchant Gourmet • Unrecognised origin brands – such as Unigrano on the Parmesan and Yutaka on the Japanese breadcrumbs Blue Dragon • Recognised as an accessible and authentic brand for oriental products – a trustworthy alternative to an own-label that was compelling for some: • “The boys in the kitchen will go for anything with Chinese writing on it, the own-label will get left on the shelf.” Pub Merchant Gourmet • Recognised as a brand, no issues with any retail connections • Seen as a positive brand if not actually authentic itself – some experience suggesting that the Brakes Olive oil was actually better than the Merchant Gourmet one Cambridge Direction

48. PACKAGING – Reactions to prompted stimulus - Brakes Brakes utilitarian plain packaging • This did not communicate a feeling of authenticity, quality or effort: • “Brakes looks cheap and old fashioned.” • “A tacky, value range.” • “The light blue is wishy, washy.” Corporate • The Brakes name did help set a minimum quality standard, but there was no added value from the packaging design • There was a view that if no effort was put into packaging design then a similar lack of effort may have been put into the product • Communication of the product contents was also poor – it needed to be clearer and bolder Brakes new black packaging • This was widely liked and communicated a better quality product than did the utilitarian labels • It aided both quality dimension as well as adding value to the contents Cambridge Direction

49. PACKAGING – Ideal packaging and branding for Brakes Brakes own-label range • Standard Brakes black label designs can be used on a centrally positioned range – giving confidence to the less adventurous and leveraging the trust in Brakes • A basic entry level range could be introduced under a new non-Brakes branded range – either with a generic name to cover all cuisines or separate names to reflect the broad cuisines represented • Using origin brands here might confuse the tiering if they are also used for the top-end range Brakes own-label Non-Mediterranean products • There was a feeling that products such as Thai pastes and Japanese breadcrumbs should have some cuisine reference in the design to help show that Brakes has sought the most authentic products for these more specialist cuisine areas Cambridge Direction

50. Mapping of brands by likelihood to buy • Impact of labelling and brand over likelihood to choose – the same product at the same price but just in different branded packs… Less culinary caterer Brakes Black Label Merchant Gourmet Least likely to choose given a choice Most likely to choose given a choice Brakes utilitarian Brakes old style (pics) Blue Dragon Yatuka Unigrano La Tour Polignac More culinary Cambridge Direction