In-company project Vlerick 2011-2012

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Company: Lantmannen Unibake - Industrial Bakery Group

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  • When comparing top answers (items which scored 4 & 5 out 5 most often) we can clearly see taste and freshness are the main purchase criteria driving people to the local bakery for their viennoiserie and baguettes purchases. Linking this information to the graph below, which shows us that 80% of the respondents still opt to go to the local bakery for their viennoiserie purchases, indicates that the current quality of the viennoiserie offer within ISB might benefit from an upgrade. When looking at baguettes, we can see that that taste is a smaller driver compared to viennoiserie at a local bakery. Furthermore, we notice that taste is a bigger purchase driver for baguettes than viennoiserie in a supermarket.
  • When comparing top answers (items which scored 4 & 5 out 5 most often) we can clearly see taste and freshness are the main purchase criteria driving people to the local bakery for their viennoiserie and baguettes purchases. Linking this information to the graph below, which shows us that 80% of the respondents still opt to go to the local bakery for their viennoiserie purchases, indicates that the current quality of the viennoiserie offer within ISB might benefit from an upgrade. When looking at baguettes, we can see that that taste is a smaller driver compared to viennoiserie at a local bakery. Furthermore, we notice that taste is a bigger purchase driver for baguettes than viennoiserie in a supermarket.
  • Over 60% of the respondents would welcome this form of 'freshness communication'. At first (during the first in-depth interviews) respondents were asked to give their opinion on the introduction of fixed baking hours in order to allow them plan their visit in accordance to these hours. Although reactions were positive (see quote below) we believed this would endanger the main asset of frozen bake-off: it’s flexibility. That is why the original idea was adapted towards a backing-hour indication. Due to the positive responses, the introduction of 'freshness-indicators' might be a good way to enhance the (freshness) perception of the ISB department.
  • Over 60% of the respondents would welcome this form of 'freshness communication'. At first (during the first in-depth interviews) respondents were asked to give their opinion on the introduction of fixed baking hours in order to allow them plan their visit in accordance to these hours. Although reactions were positive (see quote below) we believed this would endanger the main asset of frozen bake-off: it’s flexibility. That is why the original idea was adapted towards a backing-hour indication. Due to the positive responses, the introduction of 'freshness-indicators' might be a good way to enhance the (freshness) perception of the ISB department.
  • Over 60% of the respondents would welcome this form of 'freshness communication'. At first (during the first in-depth interviews) respondents were asked to give their opinion on the introduction of fixed baking hours in order to allow them plan their visit in accordance to these hours. Although reactions were positive (see quote below) we believed this would endanger the main asset of frozen bake-off: it’s flexibility. That is why the original idea was adapted towards a backing-hour indication. Due to the positive responses, the introduction of 'freshness-indicators' might be a good way to enhance the (freshness) perception of the ISB department.
  • Over 60% of the respondents would welcome this form of 'freshness communication'. At first (during the first in-depth interviews) respondents were asked to give their opinion on the introduction of fixed baking hours in order to allow them plan their visit in accordance to these hours. Although reactions were positive (see quote below) we believed this would endanger the main asset of frozen bake-off: it’s flexibility. That is why the original idea was adapted towards a backing-hour indication. Due to the positive responses, the introduction of 'freshness-indicators' might be a good way to enhance the (freshness) perception of the ISB department.
  • Purchasers van het product, nietvn product binnen retail
  • Over 60% of the respondents would welcome this form of 'freshness communication'. At first (during the first in-depth interviews) respondents were asked to give their opinion on the introduction of fixed baking hours in order to allow them plan their visit in accordance to these hours. Although reactions were positive (see quote below) we believed this would endanger the main asset of frozen bake-off: it’s flexibility. That is why the original idea was adapted towards a backing-hour indication. Due to the positive responses, the introduction of 'freshness-indicators' might be a good way to enhance the (freshness) perception of the ISB department.
  • Over 60% of the respondents would welcome this form of 'freshness communication'. At first (during the first in-depth interviews) respondents were asked to give their opinion on the introduction of fixed baking hours in order to allow them plan their visit in accordance to these hours. Although reactions were positive (see quote below) we believed this would endanger the main asset of frozen bake-off: it’s flexibility. That is why the original idea was adapted towards a backing-hour indication. Due to the positive responses, the introduction of 'freshness-indicators' might be a good way to enhance the (freshness) perception of the ISB department.
  • We see that 58% of the bread consumers indicate they like to experiment with new products within the ISB-department. When asking more specifically if shoppers are looking for more variety within the supermarket's ISB department 44% of the supermarket shoppers reports to be looking for some kind of additional variety.
  • The graph below shows that on product level supermarket shoppers are especially looking for variety within the viennoiserie and bread category (approximately 26% and 19%). One other remarkable finding is that the percentages of ISB-shoppers that are non-consumers of a certain product seem to be looking for more variety within the baguettes. Enlarging the baguette range should therefore have the biggest impact in attracting new baguette purchasers.
  • SPECIALITY vs. LOCAL PRODUCT
  • SPECIALITY vs. LOCAL PRODUCT
  • SPECIALITY vs. LOCAL PRODUCTONE PERSON BREAD => LOWER AVERANGE => EXPLAIN
  • SPECIALITY vs. LOCAL PRODUCTONE PERSON BREAD => LOWER AVERANGE => EXPLAIN
  • : improve the overall performance of a group of products shopper decision tree
  • How?Categorisation exercise interviewees
  • Bread loaves: 1st level: Basic breads (white versus brown) Special breads (Bio-, grain- and sweet breads)2nd level: Shape (round, square, special) 
  • Baguettes:1st level: basic versus special baguettes2nd level: white versus brown within the basic baguettes, ciabatta versus with herbs within the special baguettes. 
  • Baguettes:1st level: basic versus special baguettes2nd level: white versus brown within the basic baguettes, ciabatta versus with herbs within the special baguettes. 
  • Bread rolls:1st level: basic versus special bread rolls2nd level: shape (round, oval, square) 
  • Bread rolls:1st level: basic versus special bread rolls2nd level: shape (round, oval, square) 
  • Viennoiserie:1st level: Based on ingredientBasics: chocolate, raisins, butter, cream, mini viennoiserieSpecials: pecan nut, speculoos…Special sweets: cakes, donuts, beignets, muffins, etc.
  • Viennoiserie:1st level: Based on ingredientBasics: chocolate, raisins, butter, cream, mini viennoiserieSpecials: pecan nut, speculoos…Special sweets: cakes, donuts, beignets, muffins, etc.
  • Viennoiserie:1st level: Based on ingredientBasics: chocolate, raisins, butter, cream, mini viennoiserieSpecials: pecan nut, speculoos…Special sweets: cakes, donuts, beignets, muffins, etc.
  • How?Categorisation exercise interviewees
  • In-company project Vlerick 2011-2012

    1. 1. Creating added value for the Belgianbased retail customers of LU-Belgium inorder to build stronger and future proofmargins
    2. 2. TABLE OF- Methodology CONTEN-- Industry analysis Recommendations LU & LU retail customers T 1. Quality 2. In-store experience 3. New product development 4. Pricing 5. Categorisation 6. Competitiveness LU 7. Summary
    3. 3. IN-DEPTH INTERVIEWS METHODOLOG Y 3 EXPERT INTERVIEWS 5 ISB INTERVIEWS RESPONSIBLE 12 IN-STORE AUDITS
    4. 4. RESPONDENTS
    5. 5. INDUSTRY ANALYSIS STRENGHT WEAKNESS OPPORTUNITI THREAT
    6. 6. SWOT STRENGHT A. Predictability of the category B. Optimal freshness C. Bread scent
    7. 7. SWOT WEAKNESSE A. Wages B. Investment & costs
    8. 8. SWOT OPPORTUNITIA. QUALITY INCREASE RETAIL - Last 10 years - Changing perceptions  Quality holding back growth
    9. 9. SWOT OPPORTUNITIB. #OF WARM BAKERIES - 32% drop (1994 – 2011) - Trouble finding artisan bakers - 7% bake-off bread - 37% bake-off viennoiserie  Launch of independent bakery chain
    10. 10. SWOT OPPORTUNITIC. ISB-GROWTH - Colruyt, Lidl, Aldi, Albert HeijnD. CHILLED BAKE-OFF VIENNOISERIE - Invest in R&D
    11. 11. SWOT THREATSA. DIFFERENTIATING CHARACTERB. BRANDING NOT POSSIBLE - Carrefour, Albert Heijn - F2C. D-S RELATIONSHIP
    12. 12. 2 R&D for (CHILLED) BAKE-OFF1INVEST in VIENNOISERIETIMESAVINGS LAUNCH 3 INDEPENDENT BAKERY CHAIN
    13. 13. QUALITY
    14. 14. QUALITY TASTE FRESHNES LOOK SCENT
    15. 15. QUALITY- BDB: 90% chilled bake-off TASTE- Gira 2010- Even low-end players (polarisation)- Taste as purchase criterion n = 51 n = 100 n = 49 n = 22 Baguettes local bakery Viennoiserie local bakery Baguettes supermarket Viennoiserie supermarket 80 80 70 70 60 60 50 40 50 30 40 20 30 10 20 0 10 0
    16. 16. QUALITY- 80% of viennoiserie @ local bakery TASTE- In line with in-depth interviews- Cherry picking 100% 80% 80 60% 64.8 Other 56.2 Carrefour 50 40% Delhaize Local Bakery 20% 0% Breads Baguettes Bread rolls Viennoiserie n = 162 n = 102 n = 162 n = 125
    17. 17. QUALITY TASTE QUALITY IMPROVEMENT VIENNOISERIE
    18. 18. QUALITY- ‘Daily Fresh Bread’ FRESHNES- Carrefour Hyper / Planet n = 51 n = 100 n = 49 n = 22 Baguettes local bakery Viennoiserie local bakery Baguettes supermarket Viennoiserie supermarket 80 80 70 70 60 60 50 50 40 30 40 20 30 10 20 0 10 0
    19. 19. QUALITY- ‘Daily Fresh Bread’ FRESHNES- Carrefour Hyper / Planet- Freshness on product level Interest in the indication of baking hours? 5% 15% 22% n = 108 Totally agree Rather agree 16% Neutral Rather disagree Totally disagree 42%
    20. 20. QUALITY FRESHNESPerceived baking method ISB Baguettes 12% 6% n = 240 Homemade Freshly delivered by an industrial bakery 37% Frozen delivered by an industrial bakery 45% No idea
    21. 21. QUALITY- Independent samples t-tests FRESHNES Consumers VS non-consumers Purchasers VS non-purchasers Local Bakery VS retail purchasers  No significant differences
    22. 22. QUALITY FRESHNESPerceived baking method ISB viennoiserie 4% 13% n = 240 Homemade Freshly delivered by an industrial bakery 40% Frozen delivered by an industrial bakery No idea 43%
    23. 23. QUALITY- Independent samples t-tests FRESHNES Consumers VS non-consumers Purchasers VS non-purchasers Local bakery VS retail purchasers  People that do not purchase viennoiserie in retail more often hold the perception that ISB-viennoiserie is homemade compared to purchasers.
    24. 24. QUALITY FRESHNES 5 INTRODUCE FRESHNESS INDICATOR
    25. 25. QUALITY LOOK
    26. 26. QUALITY- Cause: Personnel LOOK- Consistency is keyDo you find product consistency important? 6% 1%15% 29% n = 241 Totally agree Rather agree Neutral Rather disagree Totally disagree 49%
    27. 27. QUALITY- Packaging influences look LOOK Observation: Bag not always next to product F2 users paper bags In-depth interviews: duality in responses  bread bag OK but to large  plastic viennoiserie bag OK for non-sticky viennoiserie
    28. 28. BLISTERS LOOK THAT CAN FILLED BE SHOPPER BY S 7 BREAD BAG WITH WINDOW8 MOTIVATE PERSONNEL
    29. 29. LOOK THINK TWICE9 ABOUT MULTIPACKS 10 SAFEGUARD BAKING CONSISTENCY
    30. 30. EXPERIENCE
    31. 31. IN-STORE EXPERIENCE Interior Baking hours Self-scanning Use of grippers Product availability Product information Bread scent Reservation of bread products Recipes on packaging
    32. 32. IN-STORE EXPERIENCE Interior Baking hours Self-scanning Use of grippers Product availability Product information Bread scent Reservation of bread products Recipes on packaging
    33. 33. EXPERIENCE INTERIO- Neutral to negative perception R- Revamp of Carrefour Planet- Independent samples t-test comparison of interior attractiveness retail / local bakery  People find the interior of local bakeries more attractive
    34. 34. EXPERIENCE INTERIO R
    35. 35. EXPERIENCE INTERIO R
    36. 36. EXPERIENCE INTERIO R
    37. 37. EXPERIENCE INTERIO R SPECIALIST BAKERY LOOK
    38. 38. IN-STORE EXPERIENCE Interior Baking hours Self-scanning Use of grippers Product availability Product information Bread scent Reservation of bread products Recipes on packaging
    39. 39. EXPERIENCE PRODUCT INFORMATIONegative health perception (dieting)Stress benefits of bread products (except viennoiserie) Nutritional value versus cereals Fiber Energy supplier Faster saturation
    40. 40. EXPERIENCE PRODUCT INFORMATIO- VS local bakery: lower degree of social interaction
    41. 41. EXPERIENCE PRODUCT INFORMATIO- Appreciation of extra product information Ingredients (allergies) Baking method Origin 5% 2% 26% 24% n = 107 43%
    42. 42. EXPERIENCE PRODUCT INFORMATIO DISPLAY PRODUCT 12 INFORMATION
    43. 43. IN-STORE EXPERIENCE Interior Baking hours Self-scanning Use of grippers Product availability Product information Bread scent Reservation of bread products Recipes on packaging
    44. 44. EXPERIENCE BREAD- Bread odour = No. 1 SCENT- Stimulation of impulse purchase- Enhance freshness perception- Biggest reminiscent sense power 3% 1%1% n = 241 13% 82%
    45. 45. EXPERIENCE BREAD SCENT… But bread scent is less present in retail Totally agree Rather agree Neutral Local bakeryn = 154 Supermarket n = 109 Rather disagree Totally disagree 0.00 20.00 40.00 60.00
    46. 46. EXPERIENCE BREAD SCENT 13 ISB STRONGER BREAD SCENT IN HOW - Bread scent diffusers - One oven in the middle of the ISB department - Ventilation system which transfers bread scent - Add scent to the bread packaging
    47. 47. IN-STORE EXPERIENCE Interior Baking hours Self-scanning Use of grippers Product availability Product information Bread scent Reservation of bread products Recipes on packaging
    48. 48. IN-STORE EXPERIENCE Interior Baking hours Self-scanning Use of grippers Product availability Product information Bread scent Reservation of bread products Recipes on packaging
    49. 49. EXPERIENCE PRODUCT AVAILABILIT- Respond to the more demanding shoppers: Bake-off flexibility In-store audits: some take advantage of bake-off High labour cost- In-depth interviews: Neutral to annoying if no product availability
    50. 50. EXPERIENCE PRODUCT AVAILABILITLack of bread availability is most annoying (84%) n = 185Viennoiserie Yes Baguette Neutral No Bread 0 10 20 30 40 50 60 70 80 90
    51. 51. EXPERIENCE PRODUCT AVAILABILITPlanning of baguette and viennoiserie purchases Yes n = 109 Neutral Local bakery Supermarket No 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
    52. 52. EXPERIENCE PRODUCT AVAILABILIT GUARANTEED PRODUCT OFFER
    53. 53. IN-STORE EXPERIENCE Interior Baking hours Self-scanning Use of grippers Product availability Product information Bread scent Reservation of bread products Recipes on packaging
    54. 54. EXPERIENCE RECIPES O - Spotted at local bakeries PACKAGING - Increase packaging attractiveness - Possibility for cross-promotions 6% 13% 13% n = 106 35% 33%
    55. 55. EXPERIENCE RECIPES O PACKAGING 15 INTRODUCE PACKAGING RECIPES
    56. 56. IN-STORE EXPERIENCE Interior Baking hours Self-scanning Use of grippers Product availability Product information Bread scent Reservation of bread products Recipes on packaging
    57. 57. EXPERIENCE SELF SCANNING - Successfully launched - In-store audits Failures to recognize bar codes: printing quality Lack of bar codes - Self-payment issue Delhaize Condition 1: only purchase non-barcoded goods Condition 2: no loyalty card Inconvenient screen overview when solved
    58. 58. EXPERIENCE SELF SCANNINGShoppers only buying bread productswhen visiting supermarkets 1%n = 109 25% Daily Weekly53% Monthly Less than monthly/Never 21%
    59. 59. EXPERIENCE SELF SCANNING 16 IMPROVE SELF SCANNING - Better structure of the selection screens for bread products - Updated picture catalogue - Quality printers at each retailer - Check barcode availability
    60. 60. IN-STORE EXPERIENCE Interior Baking hours Self-scanning Use of grippers Product availability Product information Bread scent Reservation of bread products Recipes on packaging
    61. 61. EXPERIENCE GRIPPERS- In-store audits: no usage or struggling- In-depth interviews: 2 extremes in opinion- Survey: no usage for bread rolls n = 18 44% 45% Both viennoiserie and buns Unused Only for viennoiserie Only for buns 11%
    62. 62. EXPERIENCE GRIPPERS 17GRIPPERS IMPROVING - No abolishment - Increase usability: Hole in the packaging and hook at each shelf Gripper with rubberized handle - Increase hygiene: cleaning on a daily basis - Look outside of the gripper-box: Primary shoppers Delhaize and Carrefour: pensioners
    63. 63. IN-STORE EXPERIENCE Interior Baking hours Self-scanning Use of grippers Product availability Product information Bread scent Reservation of bread products Recipes on packaging
    64. 64. EXPERIENCE RESERVATIO- Spotted at local bakeries and Panos- No interest from interviewees Difficult to mention pick-up time 3% 5% Importance of autonomy 13% 42% n = 108 37%
    65. 65. NPD
    66. 66. NPD VARIETY NEE HEALTH CHILDREN SPECALITIE
    67. 67. NPD VARIETY NEED I like to try out new products 2% 12% 17% n = 237 Totally agree Rather agree 23% Neutral 46% Rather disagree
    68. 68. NPD VARIETY For which products do you want NEED more variety? 30% n = 141 20% % of non consumers wanting more variety 10% % of consumers 0% wanting more variety
    69. 69. NPD VARIETY- Variety from a retail point of view NEED Baking instruction PLU-number Logistical adaptation Low levels of in-store testing of new ISB-products Monthly variation not possible
    70. 70. NPD VARIETY NEED INTRODUCE MORE VARIETY 18
    71. 71. NPD HEALTH Importance of health when buying products Viennoiserie Baguette None Bread rolls Bread n = 241 0% 20% 40% 60% 80% 100%
    72. 72. NPD- White whole grain bread HEALTH incredible for Belgian market- Increase in the number of food allergies- In-store personnel indicates growing demand for functional bread products
    73. 73. NPD HEALTH R&D FUNCTIONAL NPD
    74. 74. NPD- In-depth interviews indicate CHILDRE children have an influence on ISB- purchase behavior. NIn 2004, $330 billion was spend due to pesterPower (children 4-12) Introduction of cute looking ISB-products
    75. 75. NPD CHILDRE N 20
    76. 76. NPD- Puratos study Canada SPECIALTIES- Confirmed by in-depth interviews ‘Vlaaienkoek’ ‘Klaaskoek’- Conversation BDB: 300 local products
    77. 77. NPD SPECIALTIES 21 INTRODUCE SIGNATURE PRODUCTS
    78. 78. NPD BAGUETTE Purchase intention bread products? % top-two box answers % top-box answers Ciabatta with real olive oilBaguette with dried tomatoes… Roll with Provencal herbs One person breadSoft whole-wheat or multigrain…Baguette with tigerdecoration Fresh pannini roll n = 241 0 5 10 15 20 25 30 35 40 45 50
    79. 79. 22 1. Ciabatta 2. Dried tomato basil 3. One person bread
    80. 80. BAGUETTECustom tables: Significant difference between shopper demographics and purchase intentions:One-person bread Singles, studentsBaguette with dried tomatoes and basil Students, HH with kidsCiabatta with real olive oil Students, singles, HH w kidsRoll with Provencal herbs Students
    81. 81. Purchase intention viennoiserie? VIENNOISERI Chocolate viennoiserie with more… Croissant with richer butter taste E Chocolate viennoiserie with white… Viennoiserie with apple-cinnamon Croissant with yellow pudding Viennoiserie with raspberry jam Viennoiserie with banana Viennoiserie with strawberry jam Viennoiserie with honeyViennoiserie with orange/chocolate Viennoiserie with caramel Viennoiserie with creme brulee Viennoiserie with gingerbread Viennoiserie with lemon 0 5 10 15 20 25 30 35 40 45 50 % top-two box answers % top-box answers
    82. 82. 23 1. With more chocolate 2. Richer butter taste 3. White chocolate
    83. 83. VIENNOISER ECustom tables: Significant difference between shopper demographics and purchase intentions :With more chocolate Singles, students, HH with kidsWith richer butter taste Students and HH with kidsWith white chocolate Singles, Students, HH with kids
    84. 84. PRICE
    85. 85. PRICING- Polarisation of the market; Economic downturn- Retail price adjustments according to the competition: Colruyt no viennoiserie- Puratos: price is no purchase criterion ≈ survey cherry-picking- In-depth interviews: Not price-conscious, only in local bakery Conscious of price differences Logic if price differences within viennoiserie
    86. 86. PRICING Higher willingness to pay for filled viennoiserie 7% 14% 9% 1% 14% 6% 25%29% 44% 51% Filled viennoiserie is worth Logic if price difference more than non-filled n = 71 within viennoiserie
    87. 87. PRICING PRICING… But does retailer want to increase price level?- Retailer perspective: Operational difficulties Problem at cashier Cross-promotional issue  Hard but feasible (BDB)  Requirement: quality increase
    88. 88. PRICING PRICING 24 INTRODUCE DIFFEREN VIENNOISER PRICES
    89. 89. CATEGORISATI
    90. 90. CATEGORISATION- Retailer perspective  Shopper perspective- Puratos study: remodeling Wallmart ISB- In-depth interviews: Choice overload Variety need  Mere categorisation effect- ISB responsible people: Undetailed planograms, both in F1 and F2 Gut feel or randomly chosen structure
    91. 91. CATEGORISATION - Independent samples t-test:  People believe that the clarity of the product offer is significantly lower in retail. - Product labeling: sometimes unclear or wrong - Need for better categorisation of the ISB offer
    92. 92. BREA DBASIC SPECIAL WHITE BROW GRAIN N S
    93. 93. BAGUETT ESBASIC WHITE BROWN/GRAIN HALF S
    94. 94. BAGUETT ESSPECIAL HERBS CIABATT OTHER A
    95. 95. BREAD ROLLS SHAPEBASIC
    96. 96. BREAD ROLLS SHAPESPECIAL
    97. 97. VIENNOISERIE INGREDIENTBASIC BUTTER CHOCOLATE RAISINS PUDDING MINI
    98. 98. VIENNOISER IESPECIAL INGREDIENT SPECIAL SWEETS FRUITS OTHER
    99. 99. CATEGORISATION 25 PRESENT LOGICAL SUBCATEGORIES
    100. 100. LU
    101. 101. COMPETITIVE Bread rolls POSITION LU Baguettes CARREFOURBread loaves Viennoiserie 00% 10% 20% 30% 40% 50% 60% Bread rolls INTERMARCHE BaguettesBread loavesViennoiserie 00% 10% 20% 30% 40% 50% 60% Bread rolls Baguettes DELHAIZE BreadViennoiserie 00% 10% 20% 30% 40% 50% 60% % sales LU per bread product to Delhaize Actual shelf space Delhaize
    102. 102. SUMMARY
    103. 103. 23

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