Project Dairy – chapter 1 of 3
A consumer research programme to test and
promote awareness of health and nutritional
advantages and preferences of milk and other
dairy products
1
Technical
background
(Chapter 1)
Site map
Post-debrief
value-add
(Chapter 3)
Typologies
(Chapter 3)
Meet your
sample
(Chapter 1)
Highlights
(Chapter 1)
Knowledge
about dairy
products
(Chapter 3)
Product
awareness
and usage
(Chapter 1)
Purchasing
and
consumption
(Chapter 3)
Product
positioning
and loyalty
(Chapter 2)
2
Unpacking business vs. research objectives
Business
objective
Marketing
objective
Research
objectives
To promote viability of the dairy
industry from a national point of
view
• Consumers should be informed of the health and nutritional
advantage of milk and other dairy products and misconceptions
regarding these issues should be eliminated
• To identify the usage incidence, product awareness, drivers of
consumption and overall perceptions of specific dairy categories
on a national level
• To identify any confusions that exist regarding dairy products
• By uncovering the answers to these questions provide insight for
future strategic planning
Dairy categories will consist of: Fresh milk, UHT milk, fermented milk, milk powder, baby milk
powder, flavoured milk, yogurt, cheese, sweetened condensed milk, butter, cream, buttermilk.
3
Research solution: Quantitative methodology
Information
needs
Sampling
method
Approach
Usage incidence
Product awareness
Drivers of consumptions
Overall perceptions
Confusions or information
needs of consumers
Demographics: Including
LSMs, income,
household composition,
education, gender, age,
etc.
• Optima brand and category
audit.
• Cost effective way
• Shorter questionnaire
• Optima format lends
itself to communication
evaluation, testing
public opinion and
incidence investigation
•Tailored questions to
comply with information
needs
• Random household sample
• 3500 adults- metro and rural
area
•16 years and older
• Living in residential homes in
South Africa
• All races and geographical
areas
• Data is weighted to
population
A sample of 3 500 is the optimal sample for a national study: This sample is the minimum required
to represent all community-size levels (i.e. metropolitan, cities, large towns, deep rural) in all
provinces of SA at an allowable error of maximum 5% at a 95% level of confidence.
A sample of 3 000 will provide accurate results at a national level, but accurate representation of
non-metropolitan areas will be compromised, and analysis at these levels would not be possible.
4
Meet your sample
5
(Pop. (wt.) (‘000s) =31 540)
Meet your sample:
%
Age
19 - 24 years, 19
25 - 34 years, 22
35 - 49 years, 30
50 years +, 29
White, 13
Race
Black, 75
Gender
Home
language
Indian, 3
Coloured, 9
Female, 50
Male, 50
Afrikaans, 15
Zulu, 24
Xhosa, 17
N. Soth., 9
English, 10
Tsw., 8
S. Soth., 8
Other, 10
36% (mostly black, non-metro households) do not have a fridge/freezer in home
6
(Pop. (wt.) (‘000s) =31 540)
Meet your sample:
%
No schooling, 8
Education
Work status
Gross
monthly
household
income
LSM
Primary school
completed, 8
Some primary
school, 15
Working full-time,
33
Up to R1 199, 27
LSM 1 - 3, 26
Subsisting
Some high school,
36
Matric, 22
Not working, 31
Post matric, 10
Unemployed, 27
Working part-time,
9
R1 200 - R3 999, 27
R4 000+, 23
Don't
know/refused, 23
LSM 4 - 5, 29
LSM 6 - 8, 29
LSM 9 - 10, 16
Surviving
Aspiring
Advantaged
• Two thirds of those who don’t know their household income, or refused first-time
round, have household incomes of less than R6 000 p.m.
• One in five adults have more than 2 under-18-year-olds under personal supervision.
7
Highlights
8
Highlights
General market and usage dynamics
Affordability is the key reason for lapsing
products – especially cheeses, cream and
butter face this fate.
The dairy leaders are: Fresh full-cream
milk, maas, normal yoghurt,
gouda/cheddar and full-cream UHT milk.
These products have a wide age range
and, except for maas which is used
predominantly by blacks and LSM 1 - 5,
wide racial and LSM profile.
Taste also plays a role in rejection,
especially of UHT fat-free milk.
Fresh or UHT fat-free or low-fat milk looks
watery and thin.
Fresh full-cream milk (in hot drinks, with
porridge) and maas (any time of day and
meal replacement) are most likely
candidates for future increased per capita
consumption.
Under 19 year olds account for large proportion
of dairy consumption, except for UHT fat-free
and buttermilk.
Yoghurt (though seen as healthy) might
lose out, as might butter (though it tastes
nice).
Core usage of low-fat 2% fresh milk is a
good indicator of a wide dairy repertoire:
Yoghurt, a variety of cheeses, cream, butter,
cheese spread, and low-fat UHT milk.
Gouda/cheddard is attractive, but really
expensive.
Interestingly, 2 in 5 buy fresh milk or
maas once a month…
Normal yoghurt and drinking yoghurt often
interchange. Core maas users are also likely
to use normal yoghurt.
It’s not what you look at that matters, it’s what you see.
Henry David Thoreau
9
Highlights
General market and usage dynamics
(continued)
If fresh full-cream milk becomes
unavailable, UHT full-cream milk will be
a likely stand-in, and vice versa.
Knowledge gaps
More than 50 per cent consumers don’t
know the fat content of full-cream milk.
The same interchangeability exists
amongst cheese, normal/drinking
yoghurt (respectively) and fresh/UHT
low-fat milk.
The average guess is 45% fat – and it’s
not really seen as better than derived
fats and oils or fastfood.
Margarine is an obvious stand-in for
butter.
People want to know more about the
production process of milk,
pasteurization and whether there are
quality differences amongst brands.
It’s not what you look at that matters, it’s what you see.
Henry David Thoreau
10
Highlights
Perceptual and experiential drivers of choice
– 5 key products
Fresh full-cream milk: Priced well, popular
with everyone, always in home, grew up with,
straight from the cow. Doesn’t look as thick
and creamy as maas
Gouda/cheddar: Not positively driven
by any market factor, but is seen as
high in cholesterol and for rich
people. Packaging is of poor quality,
and does not contain enough info
(both key drivers). Too expensive (key
driver).
Maas: convenient meal replacement, wellpriced, popular, straight from the cow, grew
up with. Packs don’t have enough info
UHT full-cream milk: Helps digestion,
popular, always in home, straight from the
cow. Does not contain right amount of salt
Yoghurt: Product that children love,
convenient meal replacement. Does not
enhance the taste of food, not value for
money.
It’s not what you look at that matters, it’s what you see.
Henry David Thoreau
11
Product awareness and usage
12
Product awareness and usage route map
•
•
Helicopter view
Brand profiles
–
–
–
•
•
By age
By race
By LSM
Reasons for rejecting products without trial (“never tried before, not interested in
trying”)
Changes in dairy product consumption
13
(Pop. (wt.) (‘000s) =31 540)
A helicopter view of the market
%
53
Fresh milk - full cream
17
UHT/Long-life milk - full cream
29
5
10
10
9
Baby milk powder 2
11
17
UHT/ Long-life milk - low fat or 2%milk 1 7
Butter 1
6
9
10
13
11
13
9
8
5
38
USE MOST OFTEN
USED IN PAST HAPPY TO USE AGAIN
USED IN PAST WOULD NOT LIKE TO USE AGAIN
ONLY KNOW BY NAME
8
2
4
11
3
8
5 2
12
7
33
6
34
5
22
5
3 31
31
31
27
2 5
6
24
18
7
17
21
3
1 5 1 31
31
50
7
4 2
13
56
Gouda and Cheddar cheese 2
Fresh milk - fat free milk or skimmed milk 1 4
6
12
7
51
Normal yoghurt 2
Sweetened condensed milk 1
18
14
Maas/Amasi/Inkomaas/sour milk
Fresh milk - low fat or 2% milk
25
27
19
8
5 2
5
19
25
6
10
USE OCCASIONALLY
NEVER TRIED WOULD LIKE TO
NEVER TRIED NOT INTERESTED
NEVER HEARD OF
Full-cream milk accounts for the largest volume of dairy consumption. 2% milk, or fat-free
or skim milk suffer from low awareness, but not out-right rejection. Maas and yoghurt are
more likely to be used occasionally rather than most often. Lapsing or rejection of dairy is
low, except for condensed milk and baby milk powder.
14
Key product portfolios: What do respective core users also use occasionally?
Use occasionally
Slide 1 of 2; mentions of 7% or
higher (occasional usage)
shown; products with raw
bases of 50+ (most-often usage)
shown
Use most often
TOTAL
Fresh
milk full
cream
UHT
milk full
cream
Maas
Fresh
milk low fat/
2%
Gouda/
Cheddar
Normal
yoghurt
Butter
31540
16664
5373
4491
1543
485
501
349
%
%
%
%
%
%
%
%
Normal yoghurt
56
57
62
48
72
56
0
42
Maas
51
62
70
0
34
43
35
54
Gouda and Cheddar cheese
50
53
50
33
72
0
48
51
Drinking yoghurt
34
35
35
27
45
47
50
25
UHT/Long-life milk - full cream
29
38
0
38
17
23
34
32
Butter
27
31
19
15
48
23
31
0
Fresh milk - full cream
25
0
57
63
33
69
46
46
Cream
19
23
13
8
42
10
22
11
Cheese spread
18
21
12
7
34
16
22
21
Sweetened condensed milk
13
15
11
5
17
21
9
7
Pop (wt.) (000's)
Significantly higher than average
Core user’s most likely alternative (and significantly higher than occasional usage average)
15
Key product portfolios: What do respective core users also use occasionally?
Use occasionally
Slide 1 of 2; mentions of 7% or
higher (occasional usage)
shown; products with raw
bases of 50+ (most-often usage)
shown
Use most often
TOTAL
Fresh
milk full
cream
UHT
milk full
cream
Maas
Fresh
milk low fat/
2%
Gouda/
Cheddar
Normal
yoghurt
Butter
31540
16664
5373
4491
1543
485
501
349
%
%
%
%
%
%
%
%
Feta cheese
12
13
7
3
39
11
15
10
Baby milk powder
11
10
20
13
5
4
5
8
Cottage cheese
10
11
6
3
35
9
14
11
Fresh milk - low fat or 2% milk
10
12
6
4
0
12
7
12
Flavoured milk
9
11
8
3
21
7
13
4
Other cheese
8
7
3
6
20
11
9
7
UHT/ Long-life milk - low fat or 2%milk
7
5
8
3
33
4
5
4
Pop (wt.) (000's)
Significantly higher than average
Core user’s most likely alternative (and significantly higher than occasional usage average)
16
Profiles are based on most-often/occasional
users of each respective product
Top ten footprint leaders - age profiles
16-24
Fresh milk - full cream
18
Maas/Amasi/Inkomaas/sour milk
19
Normal yoghurt
Gouda and Cheddar cheese
23
21
Butter
Cream
12
Cheese spread
13
Fresh milk - low fat or 2% milk
14
0%
10%
28
30
28
28
32
24
27
34
24
22
30
21
30
36
23
30%
50%
Older
28
31
40%
Younger
30
36
23
20%
25
33
22
16
(Pop. (wt.) (‘000s) =31 540)
31
23
20
Above 50
31
23
18
Drinking yoghurt
35-49
23
16
UHT/Long-life milk - full cream
25-34
32
60%
70%
80% 90% 100%
Age profiles are evenly spread across the top 10 footprint leaders. With cream there is
a slight leaning towards 35+ year olds, and with drinking yoghurt the age profile is
younger.
17
Profiles are based on most-often/occasional
users of each respective product
Bottom twelve footprint leaders - age profiles
16-24
Sweetened condensed milk
14
Feta cheese
Cottage cheese
10
9
11
Other cheese
13
Buttermilk
11
UHT/ Long-life milk - fat free or skimmed milk
Organic milk
Nutritionally enhanced milk
15
12
21
33
29
27
17
18
26
Younger
22
Younger
29
35
36
Older
31
37
Older
36
29
Older
39
31
19
Older
36
25
Younger
16
32
38
19
14
30
39
21
(Pop. (wt.) (‘000s) =31 540)
Above 50
31
34
17
UHT/ Long-life milk - low fat or 2%milk
35-49
31
19
Flavoured milk
Fresh milk - fat free milk or skimmed milk
24
20
Baby milk powder
25-34
34
14
35
Older
Younger
37
24
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100
%
With more niche dairy products one sees clearer age segmentation: Young families
are likely to use baby milk powder. Flavoured milk is marketed to young consumers,
and very specialised, new products like “other cheese” and “organic milk” appeal
mostly to younger consumers
18
Profiles are based on most-often/occasional
users of each respective product
Top ten footprint leaders - race profiles
Black
Fresh milk - full cream
White
Indian
(Pop. (wt.) (‘000s) =31 540)
Coloured
76
12
3
92
Maas/Amasi/Inkomaas/sour milk
Normal yoghurt
23 3
68
Gouda and Cheddar cheese
18
60
UHT/Long-life milk - full cream
3
21
5
77
Drinking yoghurt
9
66
15
60
Butter
Cream
Cheese spread
31
47
Fresh milk - low fat or 2% milk
29
43
0%
10%
20%
34
30%
40%
50%
60%
70%
7
11
14
2
5
22
45
9
11
14
12
8
16
7
17
6
17
80% 90% 100%
Maas and UHT full cream have a stronger bias towards black consumers than
average. Low fat 2% milk, cheese spread and cream have strong white and coloured
biases. Gouda/cheddar and drinking yoghurt are additional favourites amongst
coloureds.
19
Profiles are based on most-often/occasional
users of each respective product
Bottom twelve footprint leaders - race profiles
Black
15. Sweetened condensed milk
White
27
9
(Pop. (wt.) (‘000s) =31 540)
21
88
31 7
21. Feta cheese
23
55
20. Cottage cheese
25
52
5. UHT/ Long-life milk - low fat or 2%milk
Coloured
43
14. Baby milk powder
9. Flavoured milk
Indian
31
8
14
8
31
14
41
31
24
4
24
22. Other cheese
38
11. Buttermilk
38
3. Fresh milk - fat free milk or skimmed milk
37
35
4
23
6. UHT/ Long-life milk - fat free or skimmed milk
39
34
4
24
8. Organic milk
7. Nutritionally enhanced milk
32
16
9
29
50
7
21
26
34
59
6
26
0
10
15
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100
%
Feta and cottage cheese have strong white bias, whilst baby milk powder is largely
used by black consumers.
20
Profiles are based on most-often/occasional
users of each respective product
Top ten footprint leaders - LSM profiles
LSM 1-3
24
Fresh milk - full cream
Maas/Amasi/Inkomaas/sour
milk
Cream
8
6
4
0%
22
37
11
29
39
13
41
43
13
38
43
20%
14
38
22
10%
21
29
26
12
30%
6
26
27
14
Butter
27
37
29
Drinking yoghurt
15
34
24
UHT/Long-life milk - full
cream
Fresh milk - low fat or 2%
milk
31
26
13
(Pop. (wt.) (‘000s) =31 540)
LSM 9-10
35
19
Gouda and Cheddar cheese
LSM 6-8
30
32
Normal yoghurt
Cheese spread
LSM 4-5
40%
40
50%
60%
70%
80%
90% 100%
Compared to age and race, LSM segments provide a clear way of segmenting dairy
products: Maas and UHT full cream have a strong presence in LSM 1-3 (Subsisting)
and LSM 4-5 (Surviving); In LSM 6-8 (Aspiring) and LSM 9-10 (Advantaged), cheese
spread, cream, butter and 2% milk play significant roles.
21
Profiles are based on most-often/occasional
users of each respective product
Bottom twelve footprint leaders - LSM profiles
(Pop. (wt.) (‘000s) =31 540)
LSM 1-3
15. Sweetened condensed milk
12
15
21. Feta cheese 1 7
7
13
22. Other cheese
6
14
12
6. UHT/ Long-life milk - fat free or skimmed milk
8. Organic milk
7. Nutritionally enhanced milk
4
24
57
43
41
37
42
33
10
19
36
35
13
23
47
42
13
11
8
63
13
5. UHT/ Long-life milk - low fat or 2%milk
3. Fresh milk - fat free milk or skimmed milk
32
37
4
LSM 9-10
37
29
20. Cottage cheese 1 4
11. Buttermilk
LSM 6-8
36
36
14. Baby milk powder
9. Flavoured milk
LSM 4-5
48
23
14
19
53
35
28
51
10
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100
%
Baby milk powder has its significant market in LSM 1 – 5. The remaining low-footprint
dairy products, with very niche products amongst them (e.g. feta cheese, nutritionally
enhance milk, etc.), generally have a presence in LSM 6 or higher.
22
TOTAL
Baby milk powder
Fresh milk - low
fat or 2% milk
Fresh milk - fat
free milk or
skimmed milk
UHT/ Long-life
milk - fat free or
skimmed milk
Sweetened
condensed milk
Maas/Amasi/Ink
omaas/sour milk
Buttermilk
UHT/ Long-life
milk - low fat or
2%milk
20184
2244
1505
2070
1398
1217
1104
1104
1072
%
%
%
%
%
%
%
%
%
Too expensive / not affordable
13
9
2
3
5
15
2
16
4
Dislike the taste
10
5
14
18
23
3
12
12
16
Do not know the
brand/product
8
1
5
2
5
5
1
20
3
Not interested
8
68
3
6
7
5
10
7
9
For babies
8
2
0
0
0
0
0
0
0
Dislike it
8
5
9
6
8
14
14
8
4
Looks watery
8
0
17
29
28
0
0
1
15
Happy with what I am using /
prefer other product
7
2
15
7
4
4
0
3
11
Fat free / contains no fat / low
fat
6
9
18
17
24
0
0
0
17
General dislike of smell
5
0
0
1
2
1
22
7
1
Have never tried before
5
0
2
3
3
9
4
5
3
Not easily available
5
2
3
2
6
7
0
8
6
Reasons for rejecting
products without trial
(Slide 1 of 2; mentions of 5%
or higher shown; products
with raw bases of 50+ shown)
Pop (wt.) (000's)
Significantly higher than average
Product associated most with comment
23
TOTAL
Organic milk
Flavoured milk
Nutritionally
enhanced milk
Cream
Cottage cheese
Feta cheese
Cheese spread
Butter
Drinking yoghurt
Gouda and
Cheddar cheese
UHT/Long-life milk
- full cream
Reasons for rejecting
products without trial
20184
1054
1031
890
757
724
712
673
515
478
461
445
%
%
%
%
%
%
%
%
%
%
%
%
Too expensive / not affordable
13
7
11
15
33
25
32
35
64
10
35
11
Dislike the taste
10
5
10
2
4
7
8
9
2
8
8
6
Do not know the brand/product
8
34
13
31
6
16
13
2
1
0
6
2
Not interested
8
16
16
10
12
7
7
9
5
6
9
16
For babies
8
0
2
1
0
0
0
0
0
4
0
0
Dislike it
8
10
11
3
1
4
10
16
7
2
24
8
Looks watery
8
0
1
1
1
0
1
0
0
16
0
2
Happy with what I am using / prefer
other product
7
13
10
2
4
5
2
8
7
7
4
5
Fat free / contains no fat / low fat
6
0
0
0
0
0
2
0
0
0
0
0
General dislike of smell
5
4
4
2
0
13
7
4
5
0
24
6
Have never tried before
5
9
6
6
8
6
5
1
7
8
0
16
Not easily available
5
8
2
8
14
4
7
4
11
7
2
0
(Slide 2 of 2; mentions of 5%
or higher shown; products
with raw bases of 50+ shown)
Pop (wt.) (000's)
Significantly higher than average
Product associated most with comment
24
Key facts about product rejection and substitution
Key reasons for rejection are price, taste and lack of knowledge.
• Baby milk powder: general disinterest; targeted at a very specific market
(mothers with babies)
• Fresh milk, 2% fat, or fat-free/skim: Dislike fat-free or low-fat products; looks
watery
• UHT – fat free or skim, 2% fat: Similar to above; people dislike the taste
• Maas/Amasi/Inkomaas/sour milk: People dislike smell
• Buttermilk: Little-known product
• Organic milk: Unknown
• Butter, nutritionally enhance milk, all cheeses: Too expensive (esp. butter)
• Gouda and cheddar: People dislike the smell
25
Changes in dairy product consumption – 6 leading products
(slide 1 of 3)
(Pop. (wt.) (‘000s) =31 540)
%
40
31
28
24
19
17
16
16
16
16
12
10
10
7
10
7
Fresh milk (full
cream)
Maas
Use more of
Normal yoghurt
Using less of
7
UHT/Long-life milk
Gouda and
- full cream
Cheddar cheese
7
Butter
Should use more often of in the future
Fresh full cream milk (particularly LSM 6-8) and maas (particularly LSM 4–5) are the
leaders in stated future increased consumption. There is robust interest in Gouda and
Cheddar (bar pricing issues), especially amongst LSM 9-10. Yoghurt had the highest
count for “using less of”, and in net terms future interest seems flat (and only 2% use it
most often). This product is confined to LSM 9-10.
26
Changes in dairy product consumption (slide 2 of 3)
(Pop. (wt.) (‘000s) =31 540)
%
9
9
8
6
Drinking yoghurt
5
Cream
Use more of
7
5
4
6
Cheese spread
Using less of
5
4
5
4
Fresh milk - low fat
or 2% milk
3
3
Feta cheese
3
2
2
Baby milk powder
Should use more often of in the future
27
Changes in dairy product consumption (slide 3 of 3)
(Pop. (wt.) (‘000s) =31 540)
%
3
6
3
Sweetened
condensed
milk
2
3
4
Cottage
cheese
Use more of
2
2
3
Flavoured
milk
2
2
2
Other
cheese
2
2
2
1
2
3
Fresh milk - UHT/Longfat free milk life milk or skimmed low fat or
milk
2%milk
Using less of
1
2
2
Buttermilk
1
1
2
1
1
2
UHT/Long- Organic milk
life milk - fat
free or
skimmed
milk
Should use more often of in the future
28
Fresh milk - full
cream
Maas/Amasi/Inkom
aas/sour milk
Gouda and
Cheddar cheese
Normal yoghurt
UHT/Long-life milk full cream
Butter
Drinking yoghurt
Cream
Sweetened
condensed milk
Reasons for increasing
consumption
20279
4955
4586
2006
1853
1423
1097
805
671
475
%
%
%
%
%
%
%
%
%
%
Healthy
13
16
10
13
18
4
8
14
1
4
Tastes good / tasty
10
9
11
15
9
8
15
13
10
5
Use with cereals/porridge
8
17
10
3
0
8
2
1
0
1
Good for (growing) children / children
like it
8
4
10
5
20
7
6
16
3
0
Good for the whole family / family like it
7
9
8
6
10
7
3
3
1
2
Drink with tea/coffee / enhance the
taste of tea/coffee
6
21
0
1
0
9
0
0
3
11
Affordable / cheap
5
5
10
2
3
4
4
7
3
4
Creamy
5
5
7
2
3
10
6
2
5
0
Enjoy it/like it
5
3
7
5
13
2
3
2
9
7
Versatile e.g. can cook with it, use with
everything
5
7
2
4
6
3
12
1
15
3
(Mentions of 5% or higher
shown; products with raw
bases of 50+ shown)
Significantly higher than average
Pop (wt.) (000's)
TOTAL
Yoghurt's chief perceived benefit is that it’s good for children. Full cream fresh milk
enhances the taste of hot drinks.
29
Reasons for decreasing
consumption
Fresh milk - full
cream
Maas/Amasi/Inkom
aas/sour milk
Gouda and
Cheddar cheese
Normal yoghurt
UHT/Long-life milk
- full cream
Butter
Drinking yoghurt
Cream
Sweetened
condensed milk
(Mentions of 2% or higher shown;
products with raw bases of 50+
shown)
20279
4955
4586
2006
1853
1423
1097
805
671
475
%
%
%
%
%
%
%
%
%
%
Expensive / cannot afford
11
3
6
26
13
15
19
16
17
17
Only eat occasionally/drink
occasionally
4
3
5
4
4
0
2
5
15
1
Do not have a fridge / has to be stored
in a fridge
2
4
1
4
1
0
2
0
0
0
Not always available
2
1
1
1
4
2
3
6
0
2
Other (More of...)
2
1
1
5
2
0
3
2
1
1
Significantly higher than average
TOTAL
Pop (wt.) (000's)
The main reason for decreasing consumption is pricing, especially in the Gouda/Cheddar
category and butter. Cream is a product people would use only on occasion.
30