Description of Methodology which allows testing consumption of new food product using Facebook tools

1. Product Concept &
Marketing Modeling
Case: “Berry Products”

2. Content
1. Situation & Objective
2. Methodology
3. Creation of Product Concept
4. Marketing Modeling
5. Results & Next Step

3. 1.Situation
The World is Changing:
Millennials own the World

4. Who are the Millennials?
1. Millennials were born between 1977-2000
2. Millennials constitute 25% of populations
3. Millennials make 21% of consumer purchases
4. Millennials are 2.5x more likely to be an early adopter of
technology than other generations
5. Useful is the new COOL. Millennials value brands that enhance
their lives. New tech must serve a purpose in order be considered
“COOL”

5. “Millennial” Food Preferences

6. Objective: Transform a Product
Since only 3% of new products
become profitable….
The objective is to discover a new
product form, intelligent positioning,
plus visually and linguistically sharp
messages for successful launch of a
berry jam replacement made of the
same berries...
Constraint: no capital investment!
Traditional berry jams must cater to the “millennial” food
preferences

7. 2.Methodology
Creation of Product Concept &
Marketing Modeling

8. Creation of Product Concept
Methodology & its Algorithm
Origin product - new version product
Facebook page
The same budget
Diferent audience
Facebook adv with function of sales
Original Product
Berry Jam
New Product
Made of Berry
Marketing Modeling
Facebook page Facebook page
Choosing
audience
Choosing
audience
Facebook ADV Facebook ADVThe same budget
Comparison of
the results

9. Why Facebook is the Analytical Tool
Coverage
66% of all millennials (15-34 year olds) use
Facebook
Segmentation is a result of Artificial
Intelligence
Target audience is shaped by interests of users.
Facebook tracks the viewing of sites through
application Facebook Pixel and groups of
people united according to their needs.
Purchasing Tool
Facebook is capable of generating full process
from advertising to sales in 1 click

10. List of Parameters
Parameter Description
Size of Audience Quantity of users to which we can potentially show our
advertising. If quantity of users is below 200 000,
advertising campaign will not be effective
Involvement Quantity of “likes”. This parameters shows emotional
involvement into the content. The results of this
experiments can be further on used in outdoor advertising
where competition and price of placement are very high
Click to Buy Quantity of clicks to the “buy” button. Based on this
parameters we can predict and model future sales.
Cost of Purchase Obtained by dividing the total advertising budget by the
number of clicks to the “buy” button. This parameter
enables the advertising messages’ impact on the P&L’s
outcomes and the final profit

11. What We Can Test
Product idea
Product form
Packaging design
Sales messages
Audience
Geography
Price
By comparing different options we obtain rating
and thus base for marketing decisions

12. 3. Creation of Product
Concept

13. “Blue Ocean” Technic
Create
Health (due to weight loss)
Reduce
Sugar as harmful ingredient
Raise
Nutritive benefits of berries
Eliminate
Habits of eating berry jams

14. Screening Google Trends
We selected
positioning “Detoks”
1. More popular
2. Growing trends
3. Clear product

15. Product Modification
Create:
health value
via “Detox”
Raise:
Nutrition
benefit of berry
Reduce:
Sugar

16. Product Range Change
ANTIOXIDANT HEART HEALTH CLEANSE IMMUNITY
BLACKBERRY HOWTHORN BLACKTHORN ROSEHIP

17. Style for a Detox Product Design
Main principles for creating a
package for a detox product
Industry Standards:
1. Why do you need it? – the
answer must be the key title
2. Strict style
3. No images, only words
4. Unisex design

18. 4. Marketing Modeling

19. Basic Parameters
Geographical targeting: Ankara, Istanbul
Budget: $ 20
Languages: Turkish
Advertising placement: Newsfeed
Duration of the advertising campaign: 1 Week

20. Berry Jam: Target Audiences
Name of target
audience age Interests
Size of
audience
Coverage
of ADV
Involvement
Budget
01 Jamrestorany 22-52
Cafe, Restaurants, Coffee points, Fast-food
restaurants 2 400 000 6 966 9 $2
02 Jamparents 23-56
People with children (3-18 years), House ,
Child, Parenting, Maternity, Family 6 000 000 17 592 13 $5
03 Jam 18-65+
Jam, Confectionery, Confiture, Desserts,
Cooking, Baking, Recipes 2 500 000 8 110 11 $3
04 Jamdecor 30-65 Breakfast, Pottery, Crockery, Cutlery, Porcelain 680 000 485 35 $2
05 Jamanalogy 18-56
Candy, Honey, Turkish Tee, Nutella, Sweet,
Desserts ,Tea 3 100 000 658 38 $2
06 Jamcook 24-54 Cooking Chef, Head Cook, Prep Cook, Culinary 2 100 000 943 51 $2
5,3-7% involvement
= most motivated groups
The largest size of audience

21. Berry Jam: Messages
01 Jamrestorany
06 Jamcook
04 Jamdecor
05 Jamanalogy
02 Jamparents 03 Jam

22. Detox Spread: Target Audiences
Name of target
audience age Interests
Size of
audience
Coverage
of ADV Involvement Budget
01 Detox 18-65 detox, detox center, diet food 55 000 702 73 5$
02 Healthlife 20-44
aerobics, pilates, fitness and healthy lifestyle,
fitness, yoga, meditation 4 200 000 16855 12 5$
03 Detox blogger 20-40 Nusrat Fateh Ali Khan (> 3 million subscribers) 1 000 325 5 2$
04 Geolocation 20-60 geo location of 10 restaurants 9 900 000 7134 11 2$
05 Fastfood 20-55 restaurants , fast food 2 800 000 520 43 2$
06 Modeling 18-40
Model, actor, beauty contest, beauty, profession
model, modeling agency, stewardesses,
supermodel, acting skills, magazines:
Cosmopolitan, Harper's Bazar, Modeling, Vogue 5 100 000 207 38 2$
07 Beauty &
Family 25-50
People with children, Pregnancy, Shopping and
fashion, Parents, Family and relationships,
Maternity, Family 6 800 000 7 256 15 2$
08 Business
20-60
Demographic interests> Work> Positions:
Manager; Founder; Director general; Senior
management; Business, Marketing,
Entrepreneurship, Individual entrepreneur,
Information technology, Logistics, Top
management, Freelancer, Online purchases, Small
business owners 7 200 000 685 90 5$
11,5% involvement
Interest match
! 13% involvement,
marketing gap
! 18% involvement,
marketing gap

23. Detox Spread: Messages
01 Detox
02 Healthlife
08 Business
03 Detox blogger
04 Geolocation
05 Fastfood
08 Business

24. Comparison: Detox vs Jam
Product/price Coverage Involvement
(Likes)
Clicks
to buy
Marketing budget
(USD)
Cost of 1
purchase
Detox (5 euro) 48,041 325 20 28,22 $ 1,40
Berry Jam (3 euro) 34,658 181 6 16,00 $ 2,67
Grand Total 82,699 506 26 44,22
Detox sold at 1,5 higher price vs. Berry Jam
Detox sold 3 times better than Berry Jam
“Cost of purchase” of Detox is lower by 50% than that of Berry Jam

25. Detox Spread: Rating the Audience
Name of target
audience
Coverage
of ADV InvolvementClick to buy Budget
detox 48041 325 20 28.22
01 Detox 702 73 2 3.88
02 Healthlife 16852 12 8 5
03 Detox
blogger 325 5 0 1.34
04 Geolocation 7120 11 0 2
05 Fastfood 520 43 1 2
06 Modeling 207 38 2
07 Beauty 7200 15 3 2
08 Business 685 90 0 5
Involvement is not sales.

26. Demography
Name of target
audience
Coverage of
ADV Involvement Click to buy Budget
detox 53112 344 21 58.23
female 9610 125 5 20.36
18-24 1558 25 1 3.56
25-34 3565 27 1 6.82
35-44 3313 25 2 4.89
45-54 840 25 0 3.15
55-64 297 21 0 1.8
65+ 37 2 1 0.14
male 42806 218 15 37.36
18-24 11234 78 6 8.56
25-34 17373 58 5 14.13
35-44 11747 43 3 8.34
45-54 2181 26 1 3.47
55-64 264 12 0 2.81
65+ 7 1 0 0.05
unknown 696 1 1 0.51
An underappreciated audience is the young men. They are 4 times more
than women and make 75% of sales in absolute numbers.

27. Second Level of Analytics
Name of target
audience
ADV’s
Coverage Involvement Click to buy Budget
02 Healthlife
price (5 EUR) 16,852 12 8 5
09 Healthlife
price (8 EUR) 14,430 38 6 5
1/ Price elasticity
(a new price is tested at the same target audience, all other parameters stay constant)
Detox spread
has inelastic
price
2/ Geography sensitivity
(the same target audience at a new location in English language)
Name of target
audience
ADV’s
Coverage Involvement Click to buy Budget
Amsterdam* 2104 8 0 15
London* 2967 11 1 15
Turkey 48041 325 20 28
* Note: Amsterdam and London have been tested in the end of November. It is low season for detox products
because of pre-Christmas eve time
Turkey has
unsatisfied
demand

28. 5. Results & Next Steps

29. Conclusions
1. Detox Spread made of berries is a more profitable
product than berry jam
2. Design of Detox Spread packaging should be unisex in
order to include male audience with its high potential
3. For target audiences “Models” and “Business” the
right messages/price/format are crucial for further
conversion of involvement into clicks to buy.
4. Detox Spread has low price sensitivity, its price is not
elastic. This requires additional testing in actual sales.
5. Sales channels should include location of “Health life”
audience, i.e. fitness centers and sport food stores.

30. Next Steps
Recipes
“Actual sales”
Testing
Processing
Recipe creation
• No sugar
• Product cost should
be equivalent to
that of berry jam.
• Taste adaptation to
local preferences
done
Sales in test points
• Taste check
• Price check
• Check sales in real
life environment vs.
competition
• Repeating sales
check
Manufacturing of the
novelty product
• Technical
specifications
• Processing line plan
• Investment plan
• Launch new
products
scheduled in development

31. Kseniia Zazhyhina
Applied Math Practitioner
Marketing and PR Director
CMYK Ingredients JSC/ Ukraine-Bulgaria
+38 067 464 63 83
k.zazhigina@gmail.com
https://www.linkedin.com/in/zazhigina
www.cmykingredients.com
Contact information