Transcript Qualitative top-line

OLIVE OIL: USAGE AND
ATTITUDE
Top-lines report
October 2009
Nobody’s Unpredictable
Table of contents
Ipsos Marketing
page
3
Objectives
4
Method
5
Conclusions & recommendations
6
Detailed results
13
Main associations in the category
14
Product perception: drivers
15
Product perception: barriers
16
Product perception: product types
17
Package perception
18
Market trends
19
Criteria of olive oil quality
21
Brands perception
22
Attitude towards the country of origin
25
Ideal brand of olive oil
27
Communication
29
SWOT
32
© 2009 Ipsos
Presentation of the project
Presentation of the project
© 2009 Ipsos
Objectives
Method
Ipsos Marketing
Objectives
The PURPOSE is to conduct a qualitative exploratory study precondition the further quantitative market
measurements and to gather consumer verbatim on topics below.
Category definition and
segmentation - product types,
packages, price
Product perception
Reasons of consumption
Nutritional properties
Healthy issues
Information channels
Decision making process
Situations, frequency of purchase
(who, when, where etc.)
Decision making chain / process factors of choice, drivers/barriers,
decision making person
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Consumption patterns
Situations, frequency of consumption
(who, when, where etc.)
Culture of consumption as separate
product, pizza/salad component, dish
decoration etc.
Motives behind consumption behavior
/ drivers / barriers
Types of consumers
Market environment
Origin awareness and image –
advantages/disadvantages, situation
of usage
Brands awareness and image advantages/disadvantages, situation
of usage
Benchmarking (idealization)
Tips for success communication
© 2009 Ipsos
Category
Method
Who
25 – 50
Age
25 – 35 | 36 – 50
Income
Average +
Usage
Current category consumers (making a purchase of olive oil within last 6
months)
Potential category consumers (not current consumers but not rejecters of
olive oil)
Profile per
group
Females groups:
at least 4 females having kids under 14yrs in the household (gaining of
family consumption issues)
at least 2 females, attending sport/fitness clubs/centers at least once a
week (gaining of status issues)
Gender
Where
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Regular FGs – 8 participants per group
Duration – up to 2h
© 2009 Ipsos
How
100% Females
Kiev
5
© 2009 Ipsos
Conclusion and recommendations
Ipsos Marketing
Conclusion and recommendations
Popularity of Olive oil category is growing among Ukrainian users.
Product is perceived as:
- natural and has exceptional healthy properties (vitamins, no cholesterol),
positively influences all kinds of systems of vital functions of organism
- has exclusive product characteristics: bitter taste, olive aroma, viscose
consistency
- status, expensive, elite product
- effective for cosmetics purposes
- gives a possibility to prove oneself as a good housewife
© 2009 Ipsos
The main barrier in olive oil category is high price.
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Conclusion and recommendations
Ukrainian market of olive oil - main trends:
- growth of consumption of olive oil during last 3 years. Product became closer and understandable
for consumer
- growth of product price. High price is a serious barrier in the category. However, loyalty to the
product is high. Therefore, total rejection of product is hardly probable
- introduction of new types of product packaging – dark glass that matches the premium status of
the product and its purity
- consumption of olive oil is a modern trend that relates to premium appeal of the product
- growing brand assortment and availability of the products from different countries - Italy, Spain,
Greece
- introduction of private labels of olive oil
- appearance on the market of smaller volume packages – 250 ml allowing some saving
- product is recommended by doctors
- adding to sunflower-seed oil small percentage of olive oil (say, 10%)
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© 2009 Ipsos
- enlargement of assortment: with herbs (rosemary), with pepper, with spice, garlic
Conclusion and recommendations
Brand loyalty among regular consumers is not high.
First of all, not a single brand works to create long-term loyalty among consumers,
absence of brand communication support. Brands is only perceived from the rational
point of view, there’s lack of emotional image. The crucial difference between brands is
just country of origin. Brands do not build long-term relationships with consumers.
Secondary, the product is expensive. Thus, special price promotions in trade are of
special interest.
© 2009 Ipsos
Mediterranean countries, such as Greece, Spain, Italy are associated with high quality
olive oil. The country of origin isn’t key criteria while choosing the product. The
consumer clearly perceives “good value for money olive oil = Spain”. Therefore, Spain
as producer can’t become an important identifying characteristic of a trade mark.
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Conclusion and recommendations
There is practically no communication of olive oil category in Ukrainian market.
Consumers have strong need for information, they are open to it.
The elder ones prefer more passive way of getting information. Thus, they are most
perceptive to direct advertising on TV.
Younger generation prefers to choose sources, actively look for information.
Both age groups most of all refer to friends’ advice, and also to informational articles
and TV programs.
In this case direct advertising, that is necessary to build awareness must be reinforced
powerful PR support and indirect advertising.
© 2009 Ipsos
Main communication channels:
- In trade: promoter, product tasting, proper shelving
- press (informational articles)
- TV (direct advertising for to build awareness, informational TV programs)
- Internet (informational articles)
Ipsos Marketing
Conclusion and recommendations
Communication information:
- shot info about country of origin
- history of product
- place, methods and specific of raw material cultivation. Communication and demonstration of raw
material quality
- demonstration of full cycle of production, information that cultivation of raw materials, oil
production from it and packaging is performed at the same place
- information about types of product. Difference between virgin oil и extra virgin oil
- healthiness of product: healthy properties, in which way
- spectrum of product usage: recepies, recommendations for usage
- demonstration of appetizing product
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© 2009 Ipsos
- strong brand name communication
© 2009 Ipsos
Detailed results
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© 2009 Ipsos
Section 1: Perception of the
product
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Association: olive oil
First of all olive oil is associated with product characteristics (green olive, aroma, bitterness) and
process of cooking. Secondarily, with country of origin and everything that is related with it, then with
usefulness for health and cosmetics. The elder ones and non regular consumers associate it with smth.
expensive, exclusive and elegant.
• olives
• aroma
• tasty
• bitterness
• base for any dish
• lettuce
• white color
• kitchen
• cooking process
• health
• usefulness
• beauty
• cosmetics
• skin сare
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• expensive
• exclusive
• elegance
• beautiful package
© 2009 Ipsos
• nature
• harmony
• warm
• sun
• hot countries Italy, Greece, Egypt
• antique
Product perception: drivers
USEFULLNESS FOR HEALTH AND NATURALNESS
• low nutrition
• no holesterol
• vitamin D and Еfor the skin, vitamin А for growth
• good for digestion
• prevention of cardio-vascular accidents
• enhancing immunity
EXCLUSIVE PRODUCT PROPERTIES
• bitterness in taste
• olive aroma, without strict smell
• viscous, thick consistency
• less fat vs. sunflower-seed oil
• delicate, exquisite
GIVE A POSIBILITY TO PROVE ONESELF AS A GOOD HOUSEWIFE :
- to vary dishes «to change taste, to try this and that»
- doesn’t kill the taste of the dish «to save what you want to emphasize in dish»
- to add “ginger” to the dish
MODERN AND STATUS PRODUCT
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© 2009 Ipsos
POSIBILITY TO USE FOR COSMETIC PURPOSES
• hands spa
• body moistening
• hair masks
Product perception: barriers
The main barrier in olive oil category is high price. Product is perceived as elite,
expensive, especially among respondents of the elder age group and non-regular users.
High price elasticity is typical for olive oil. Consumers are very sensitive to different price
promotions in this category. «If the price is right and there are promos, one can give any oil a
try».
Thus, formatting next consumers behavior
- High loyalty to product: if the price increases
essentially, regular consumers will not stop using
the product, they will use it economically. It gives
possibility to switch consumers: “All women can buy
it, if the price will be lower or product will has some
additional value (dispenser or smth else). Attracting
consumer interest is easy, we will all buy it».
Increasing price by UAH 5 doesn’t matter to regular
consumers. Reasonable price is UAH 50-60 per 0,5
liters.
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Non-Regular users
- Is perceived as delicacy, not everyday product,
allows treating oneself to it. That’s why the traditional
usage is on holidays, celebrations; often while at
friends’ «I don’t believe, that it is for every day usage in
an average Ukrainian family»
- Use only for salads «I cant imagine how to fry with it»
- sometimes save money – they buy virgin oil «it is a
pitiful compromise»
© 2009 Ipsos
Regular users
Product perception: product types
Consumers do not know a lot about kinds of olive oil. There’s acute need for information. Information
is sourced from the lable mainly. In general, they only distinguish two types, just like the sunflower
seed oil– refined and non-refined. Mostly use extra virgin as of better quality. The main dish it is used
for is salad. Non-regular consumers use it only for salads.
Product
type
Nonrefined
Alternative name
Behaviour
- preserves more useful elements
and vitamins «more alive olive»
Extra virgin
- more expensive
- richer taste and aroma
- green color
Usage situation
With goods that are not
subject to thermal processing
«when heated, extra virgin
gives a bitter taste», allowing
to enjoy its taste – salad.
- refined
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Virgin
- less rich, neutral taste and aroma
- less quantity of vitamins «Not
with the ingredients it initially had»
For frying
© 2009 Ipsos
Refined
Package perception
The most preferable package type for olive oil is dark glass, as appropriate to the premium status of of
the product and its ecological compatibility
Package type
Evaluation
+ appropriate to product status– expensive, elite
Dark glass
+ to protect product from negative influence of sunrays
+ give a possibility to evaluate appearance of the product
- absence of possibility to visually examine product
Tin
- non ecological package
- inconvenient usage «bad spills out, splash out, impossible to
control spills out value»
+ convenient to transport
- ecologically unsafe package «with temperature going up the
plastic emits unhealthy substances absorbed by product»
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© 2009 Ipsos
Plastic
- inappropriate to product status, perceived as packaging for
inexpensive brands
Market trends
Growth of consumption of olive oil for the last three years. The product has come close and better
understandable thanks to the healthy properties of olive oil, desire to experiment in cooking, receiving new
information from different sources, growing popularity of tourism and getting to know different cuisines of
the world «New recepies are now boring. Simply borsch or potatoes, I want to taste something new».
Growing price of product. Despite that the product has become closer, better understandable which is
mainly related to the growing standards of living of the population in general. Price is a serious barrier.
Still, loyalty of regular users to the product is high. Consumers won’t stop consuming the product, will use
more economically, react to price promotions «during crisis the price has grown unrealistically»
Consumption of olive oil is not a trendy tendency, which is connected to the preciousness of the product
“my girl friend places her bottles of various oil in a visible place in the kitchen, like saying “I can afford it”
and the growing trend to care for ones health “maybe it is fashion, but I just want to consume less
chemicals, therefore consume it more”.
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© 2009 Ipsos
Introduction of new types of packaging – dark glass, that is thought to be the best type for olive oil since it
protects from sunlight, is ecological, matches the premium appeal and enables to visually examine the
product.
Market trends
Growing assortment and availability of product from various countries – Italy, Spain, Greece “there are
more olive oil brands vs. sunflower seed ones”. Appearance of a wider range of Greek oil as more premium
vs. Spanish one.
Introduction of private label “Premia” belonging to “Silpo” supermarket chain «It was delivered in tin kegs.
Now they pour it in bottles.»
Growing assortment: with herbs (rosemary), with pepper, spices, garlic.
Introduction of smaller volume packages – 250 ml, which enables saving “I sort of feel uneasy about buying
the big one. When I buy a small one, I save temporarily.”
Addition of olive oil to the sunflower seed on (say, 10%)
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© 2009 Ipsos
The product is recommended by doctors. In a few cases consumption begins for treatment purposes for
oneself or the kids, then the product becomes part of a natural nutrition of the whole family.
High quality olive oil: criteria
When choosing the olive oil, customers use following criteria
Point of purchase
Home
- appearance, thickness «thickness has to be
so viscous», lack of sediment, yellow
transparent color
- rich thick taste with timber shade, no bitter,
soft sweet aftertaste, no taste of moldiness,
bitterness or sourness
- full production cycle stationed in one country:
growing olives, production and bottling “to see it
is not going from Greece to Tunis for bottling –
you never know what happens on the way, not
sure it is not diluted then».
- no side smell of gasoline, tin keg
- valid expiry date
- attractive design
Non-regular users care about price first of all.
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© 2009 Ipsos
- extra virgin
© 2009 Ipsos
Section 2: Brands
perception
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Brands Perception
Loyalty to brands among regular users isn’t high.
Secondly, the product is expensive. Thus, special appeal belongs to
price promotions at point of sale.
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© 2009 Ipsos
First of all, no single brand doesn’t work with the consumers to
form long-term loyalty, there’s lack of communication support of a
brand. Brands are perceived from the standpoint of rational
benefits, there’s no emotional image. The key difference between
brands is the country of origin. Brands don’t build long-term
relationships with the consumers. Consumers like experimenting
and tasting various brands «one may buy a same brand and it will
have a bitter taste at one time and normal at another. Maybe they stored
it in a wrong place or expiration date has been forfeited.»
Brands Perception
+ affordable “cheaper vs. Maestro”
+ stable quality
+ good taste – no bitterness
+
frequent
promotions
in
«Fourchette»
+ always fresh “it is sold out quickly,
you rather know it’s not old»
+ assortment (refined and nonrefined)
+ attractive package
Maestro de Oliva
+ pleasant taste – no bitter
shades
+ affordable
+ attractive packaging (yellow
tasty color, fresh olive)
+ info booklet attached to the
bottleneck on a golden thread
Premia
Oscar
+ exquisite taste (no
bitterness)
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+ wide availability
+
affordable,
since
manufactured in one place
and bottled in another
+ good taste
Iberica
+ wide availability
+ good taste, less bitter shades vs.
Maestro de Oliva
+ there are similar product in
assortment (canned oils, green and
blue), which is the guarantee of
quality and certifies about the full
production cycle
+ well-known brand
- price above average
- unstable quality
Monina
- high price
© 2009 Ipsos
Dolce Vita
Attitude to country of origin
Mediterranean countries are associated with good quality olive oil – Greece, Spain, Italy. The country
of origin is not the key factor while making a choice «you don’t care about the country of origin, doesn’t
matter where it was manufactured»
Product of Greece is considered to be the best quality olive oil, this country is believed to
be the “olive cultivation expert”. Oil from Greece is considered to be more expensive and
elite, “of breed”. The product of Greece isn’t close to the consumer as no one knows a
single brand of Greek olive oil in Ukraine.
- most appropriate climate
- growing high quality sorts of olives
- wide range of kinds of olives vs. Spain
- «special Olives grow there»
© 2009 Ipsos
- they experiment with sorts, growing new types
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Attitude to country of origin
Spanish product is closer and understandable for the consumer. Mainstream segment is clearly
associated with Spain “if it's not from Spain, it alerts me». It’s widespread “on-one’s-mind” that
«olives=Spain».
- spain has long specialize on olive oil production
- spanish product is well represented in Ukraine
- appropriate climate to grow olives
- ecologically clean product
- is a value for money product
- stable European quality
- widespread in Ukraine
- sonsumers believe, that a single kind of middle-sized olives is used to produce Spanish oil
Olive oil made in Egypt and Tunisia doesn’t evoke trust and desire to taste.
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© 2009 Ipsos
Italian olive oil is perceived as high quality, just like Spanish, however not as popular as the Spanish
one in Ukraine.
The attitude towards Turkish oil is ambiguous. Perceived as inexpensive, therefore there’s a wish to
taste it, but of worse quality vs. Spanish one. Ukrainian consumers know no brands of Turkish olive oil.
Product
1.
Producer – Greece
2.
Easy to pronounce and remember name that evokes direct association with
olives. «Maestro de Oliva» is believed to be good as name.
3.
4.
Wide assortment (refined, non-refined)
Various volumes of packaging 250 ml, 0,5 l, 0,75 l, 1 l
5.
Stable quality
6.
Taste – no bitterness, sediments, and alien additives
7.
Fresh smell
8.
Availability of adjacent products: green and blue olives, which certifies full
cycle of production
Price
- reasonable price
Place
- wide availability
Promotion
- the brand supplies info about healthy properties
- information booklet on a golden thread attached to the bottleneck
- certificate of quality will boost up trust
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© 2009 Ipsos
Ideal olive oil brand
Ideal olive oil brand
Package
1.
Narrow rectangular dark glass bottle, enabling to visually examine product
properties, with rough ribbed insert
2. Easily readable label (large print, light font, Russian languages)
3. Informational contents of the label:
- information about pressing and filtration
- list of vitamins
- nutrition info
- usage recommendation
- expiration date, date of production (not bottling), “Premia” comes in tin kegs
then bottled at ”Silpo" supermarkets and they list date of bottling, not of oil
production»
© 2009 Ipsos
- produced from natural ripe olives
- image of appetizing olives with leaves
- information on label is in Russian
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© 2009 Ipsos
Section 3: Communication
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Communication channels
There is practically no communication of olive oil category in Ukrainian market. Consumers have strong need for
information, they are open to it.
The elder ones prefer more passive way of getting information. Thus, they are most perceptive to direct advertising
on TV.
Younger generation prefers to choose sources, actively look for information.
Both age groups most of all refer to friends’ advice, and also to informational articles and TV programs.
In this case direct advertising, that is necessary to build awareness must be reinforced powerful PR support and
indirect advertising.
Product information source
- in trade: promoter, product tasting, proper shelving
«I like to learn product pallets, to watch and read information on products, labels»
-TV (direct advertising for to build awareness, informational TV programs)
«Znak Kachestva», «Edim doma with Y.Visotskaya», «Nezavisimiy expert»
Friends advice, recommendations
Internet (informational articles)
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© 2009 Ipsos
- press (informational articles)
«I believe in product tests, educational articles in magazines, if it is just direct advertising it is not
interesting».
Information to communicate
Shot info about country of origin
Product history
Place, methods and specific of raw material cultivation. Communication and demonstration of raw
material quality.
Demonstration of full cycle of production, information that cultivation of raw materials, oil
production from it and packaging is performed at the same place
Information about types of product. Difference between virgin oil и extra virgin oil
Usefulness of product behavior: efficiency, in what kind «if people would know the usefulness of olive
oil, they will buy it», «olive oil is better for skin but I don’t know exactly the difference of it from corn oil or
sunflower-seed oil.»
Spectrum of product usage: receipts, recommendation for usage «there are some trade marks, that
is very hard even in pronouncing, because doesn’t hear about them from TV, newspaper»
Demonstration of appetizing product
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© 2009 Ipsos
Strong brand name communication
SWOT for Spanish olive oil in Ukrainian market
OPPORTUNITIES:
• TA looks for more information about
product
• Low loyalty to regular brand – opportunity
to switch
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WEAKNESSES:
• Market dominated by Spanish oil: by
respondents opinions current Olive oil offer
consists of mostly Spanish Olive Oil and so
this leads to its imagery perception as rather
common/ordinary product
THREATS:
• High price is a serious barrier
• Perception of product as delicacy thus
offering situational usage
• Appearance of private labels in this
category, which attract consumers with a
good price
© 2009 Ipsos
STRENGTHS :
• Trust to Spanish manufacturer
• Perception of product as healthy
• High product loyalty
• Growth of attractiveness of consumption, due
to growing number of consumers
• Status product, its consumption is one of the
ways to demonstrate one’s prosperity