October 2009
Nobody’s Unpredictable

Ipsos Marketing
Objectives
Method
Main associations in the category
Product perception: drivers
Product perception: barriers
Product perception: product types
Package perception
Market trends
Criteria of olive oil quality
Brands perception
Attitude towards the country of origin
Ideal brand of olive oil
Communication
SWOT page
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Objectives
Method
Ipsos Marketing

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
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
Situations, frequency of purchase
(who, when, where etc.)
Decision making chain / process factors of choice, drivers/barriers, decision making person
Origin awareness and image – advantages/disadvantages, situation of usage
Brands awareness and image advantages/disadvantages, situation of usage
Benchmarking (idealization)
Tips for success communication
Ipsos Marketing

Age 25 – 50
25 – 35 | 36 – 50
Income Average +
Usage
Profile per group
Gender
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)
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)
100% Females
Regular FGs – 8 participants per group
Duration – up to 2h
Kiev
5
Ipsos Marketing

Ipsos Marketing

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
The main barrier in olive oil category is high price.
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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
enlargement of assortment: with herbs (rosemary), with pepper, with spice, garlic
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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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.
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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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.
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)
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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
strong brand name communication
spectrum of product usage: recepies, recommendations for usage
demonstration of appetizing product
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Ipsos Marketing

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
• nature
• harmony
• warm
• sun
• hot countries -
Italy, Greece, Egypt
• antique
• health
• usefulness
• beauty
• cosmetics
• skin сare
• expensive
• exclusive
• elegance
• beautiful package
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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
POSIBILITY TO USE FOR COSMETIC PURPOSES
• hands spa
• body moistening
• hair masks
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

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.
- 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 »
Ipsos Marketing

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.
Extra virgin
Virgin
- preserves more useful elements and vitamins «more alive olive»
- more expensive
- richer taste and aroma
- green color
- refined
- less rich, neutral taste and aroma
- less quantity of vitamins «Not with the ingredients it initially had »
With goods that are not subject to thermal processing
«when heated, extra virgin gives a bitter taste », allowing to enjoy its taste – salad.
For frying
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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
Dark glass
Tin
Plastic
Evaluation
+ appropriate to product status – expensive, elite
+ to protect product from negative influence of sunrays
+ give a possibility to evaluate appearance of the product
- absence of possibility to visually examine product
- non ecological package
- inconvenient usage «bad spills out, splash out, impossible to control spills out value »
+ convenient to transport
- inappropriate to product status, perceived as packaging for inexpensive brands
- ecologically unsafe package «with temperature going up the plastic emits unhealthy substances absorbed by product »
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Ipsos Marketing
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»
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.
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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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.”
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.
Addition of olive oil to the sunflower seed on (say, 10%)

When choosing the olive oil, customers use following criteria
- appearance, thickness «thickness has to be so viscous », lack of sediment, yellow transparent color
- 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 ».
- valid expiry date
- extra virgin
- attractive design
- rich thick taste with timber shade, no bitter, soft sweet aftertaste, no taste of moldiness, bitterness or sourness
- no side smell of gasoline, tin keg
Non-regular users care about price first of all.
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Loyalty to brands among regular users isn’t high.
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.
»
Secondly, the product is expensive. Thus, special appeal belongs to price promotions at point of sale.

Dolce Vita Maestro de Oliva
+ affordable “cheaper vs. Maestro”
+ stable quality
+ good taste – no bitterness
+ frequent
«Fourchette» promotions in
+ always fresh “it is sold out quickly, you rather know it’s not old»
+ assortment (refined and nonrefined)
+ attractive package
+ 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)
+ 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
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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»
- they experiment with sorts, growing new types
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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
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.
Olive oil made in Egypt and Tunisia doesn’t evoke trust and desire to taste.

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.
Wide assortment (refined, non-refined)
4.
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
- reasonable price
wide availability
- 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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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 »
- produced from natural ripe olives
- image of appetizing olives with leaves
- information on label is in Russian
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Ipsos Marketing

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»
- press (informational articles)
«I believe in product tests, educational articles in magazines, if it is just direct advertising it is not interesting ».
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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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.
»
Strong brand name communication
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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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
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
OPPORTUNITIES:
•TA looks for more information about product
•Low loyalty to regular brand – opportunity to switch
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
Ipsos Marketing