Stage 2: Exploring The Bord Bia Consumer Insights & Innovation team partnered with Glanbia Ingredients to develop a branding and innovation strategy for Senegal’s leading brand of milk powder; Vitalait. This case study details how the team used ethnography to ensure consumer insight was at the heart of that process. INSIGHTS & INNOVATION WORKBOOK Glanbia – Vitalait Senegal Growing the success of Irish food & horticulture Stage 3: Refining Stage 6: Expression INSIGHTS & INNOVATION WORKBOOK Glanbia – Vitalait Senegal PROJECT BACKGROUND Glanbia Ingredients has a joint partnership with Satrec Limited in Senegal, a processor and distributor of fat-filled milk powder with a significant turnover of over €80 million per year. The business relationship is a simple one; Glanbia develops and formulates fat filled milk powder at its Virginia plant in County Cavan. From there, Irish milk powder is exported in bulk to Dakar where Satrec packs, distributes and markets that powder under the brand name ‘Vitalait’ – the number one brand of milk powder in Senegal. BUSINESS ISSUE CONSUMER ISSUE In early 2013 Glanbia approached Bord Bia for assistance in understanding consumer attitudes to Vitalait. The brand had been experiencing increased competition and Satrec’s proposed solution to that competition was ‘value engineering the product’ via a reduction in its protein content. Glanbia needed to understand the likely impact of value engineering the product on both consumer attitudes and usage of Vitalait. The consumer issue facing Glanbia was a simple one, would a reduction in the protein value of Vitalait damage attitudes to the brand and, if so, what would the impact on sales be. Glanbia needed to understand the role of protein in the Vitalait product at various levels and explore innovation and NPD opportunities for the brand. By addressing this core consumer issue, the long term strategic direction of Vitalait could be mapped out for Glanbia. Stage 2: Exploring Stage 3: Refining Stage 6: Expression THE PROCESS The Bord Bia consumer insight & innovation team’s role was to complete consumer research amongst Senegalese users of milk powder using Ethnography. The ethnographic discipline involves visiting consumers in their home, observing their behaving and living with consumers for an extended period of time to truly understand consumer behaviour. The team assisted Glanbia with three stages in the insight and innovation process: Stage 2 Exploring, Stage 3 Refining and Stage 6 Expression HOW DID WE HELP? Stage 2: Exploring The main bulk of our insight generation involved the ‘exploring’ stage of the insight and innovation process. We completed a week long ethnographic study that involved visiting over 20 different households in Senegal. Each household was given unbranded samples of Vitalait original and new formulation Vitalait to try at home. During the ethnography we were able to explore attitudes to the products, the impact of the product reformulation and consumer usage. This allowed us to generate a number of key consumer insights around the Vitalait brand which we validated at the next stage of the innovation process. Stage 3: Refining At the next stage of the innovation process we completed ‘Brand Clinics’ with groups of Senegalese consumers to explore the brand positioning and refine messaging and new product concepts. For example, we refined a number product concepts including ‘flavoured Vitalait’. Stage 6: Expression The final role for the insights and innovation team was to take the consumer insights generated and develop the core brand proposition. We developed a revised brand core for Vitalait and used our consumer insights to help draft creative and packaging briefs to ensure the long term health of Vitalait. WHAT WERE OUR INSIGHTS? WHAT WAS THE IMPACT ON BUSINESS? The big consumer insight generated from this research centred around attitudes to the Vitalait BRAND – as opposed to the Vitalait product. Glanbia had begun to engage with consumers to understand what impact a change in product formulation may have. Our research revealed that there would be very little discernible impact on consumer attitudes. However, the Vitalait brand had some fundamental issues around perceived quality that needed to be addressed to protect its long term health. Glanbia’s strategy has now shifted from innovating with new products from Vitalait to both innovating and renovating the brand. The insights generated through ethnographic research has meant that Glanbia has protected its margin on the Vitalait brand. Rather than value engineering the product (and reducing its price) Glanbia is continuing to export its bulk ingredient product for Vitalait at 24% protein levels, as opposed to the 20% that Satrec had been championing. Since the research has been completed, commodity prices have shifted upwards quite significantly meaning that Glanbia Ingredients is enjoying an even higher gross margin than before. So creating a compelling argument NOT to value engineer the product was critical for Glanbia. This argument was made all the more compelling through the consumer insights generated through ethnographic research. Bord Bia’s Insight & Innovation Workbook These two exciting new products from Paddy were developed using best practice techniques detailed in Bord Bia’s Insights & Innovation Workbook. For more information contact: E-mail: info@bordbia.ie Telephone: (01) 6885155 Growing the success of Irish food & horticulture