Our client – a leading international producer of high quality dairy products – wanted to further develop its presence on the Bulgarian cheese market by entering new segments – white and yellow cheese.

1. A basis for developing a marketing strategy for
entering the market
12 December 2019

2. FMCG - Food - New Market Entry
The Challenge: Our client – a leading international producer of high quality dairy products – wanted to further develop its presence on the Bulgarian cheese
market by entering new segments – white and yellow cheese. These segments are highly competitive, consist of products consumed on daily basis and have very
strong “made in Bulgaria” traditions. The planned survey had to serve as a basis for developing a marketing strategy for entering the Bulgarian market.
The Approach: In order to assess the opportunity to enter the cheese markets with an offer relevant to the Bulgarian consumer, we executed a three-stage study:
• Stage I – Qualitative Overview: focus group discussions, designed to gather insights on the various cheese segments and the respective consumer habits, to
match the existing client’s portfolio with the profile of the local market and to get primary taste and pack impressions of the developed products;
• Stage II - Quantitative Exploration: nationally representative survey, modelled to quantify the insights from the qualitative stage, to assess the opportunity of
entering the white and the yellow cheese segments and to investigate the awareness and the image of our client’s portfolio;
• Stage III – Product & Package Test: quantitative study, aimed to measure the perceptions towards the actual products and to verify their performance in
competitive context.
The Outcome: The research revealed Bulgarian consumers to distinguish clearly only three main cheese segments and to perceive the Bulgarian origin of the
white and yellow cheeses for granted. Yet, the client brand demonstrated high potential for portfolio extension, enjoying very positive, even premium image
among consumers, especially in the capital and the big cities. The challenges though were related to re-enforcing the brand image, establishing and justifying
relevant price positioning and customizing the packaging design to fit the local traditions and expectations. On product level, the white cheese recipe was well
liked, with minimal need of further adjustments. Still, the yellow cheese product was found irrelevant for the local taste expectations and further elaboration was
strongly recommended. Backed with the survey insights, we were also able to recommend the optimal price range and pack size, to model the taste profile of the
ideal white and yellow cheeses and to established precise communication pillars for re-enforcing the image, the in-store presence and the visibility of the brand.

3. • The high frequency of consumption
makes the price a determining criteria in
the purchase process. It reflects on
choice of package - bulk products are
preferred mainly due to their
advantageous price
• Modern consumers and consumers in
Sofia are more attentive to content. In
Bulgaria currently the vegetable fat
products are not called dairy products
and are easy to distinguish. In smaller
cities products with vegetable fats are
used for cooking, due to lower price,
even though people are aware that they
are not “healthy”. In Sofia are rather
rejected as unhealthy products
• Taste has been evaluated on the
base of overall liking, consistency,
fat content, color, saltiness,
aroma
• Both White and Yellow cheese
are considered as traditional
Bulgarian products and are
sentimentally very attached to
Bulgarian origin. Looking further
for local products, typical for
different regions => gives a feeling
of authenticity
• Perception of the most natural
product among cheeses (white
cheese especially) – believe in
“real milk content” and lack of /
less preservatives
MOST IMPORTANT
LEAST IMPORTANT
Taste
Origin
Vegetable fats
Price
DRIVERS: BARRIERS:
Healthiness
Most Important Factors in Choosing White and Yellow Cheese

4. The motivations around the
investigated categories are
mainly related to Safety, Control,
Pleasure and Belonging. Safety
and Control are ubiquitous needs
for all categories. Belonging
(expressed by Bulgarian
Traditions) is typical for dairy
categories, along with weaker
sharing and pleasure needs,
when compared to foods.
Most of the consumers do not
expect cream and processed
cheeses to respect Bulgarian
traditions. Another typical
difference for these categories
vs. white & yellow cheeses is also
the relatively lower level of
Safety and Control related needs.
The association of all investigated
categories with needs related to
Differentiation, Domination and
Vitality is weak.
40%7%
20%
55%
41%10%
11%
13%
43% 10%
20%
56%
41%11%
12%
17%
42% 13%
51%
71%
49%10%
9%
10%
40%
13%
55%
69%
52%
9%
7%
8%
45%
16%
50%
69%
53%
10%
6%
8%
61%
31%
32%
63%
54%
10%
8%
11%
PLEASURE
SHARING
BELONGING
SAFETY
CONTROL
DIFFERENTIATION
DOMINATION
VITALITY
To give pleasure
To bring
people
together
To respect
the
Bulgarian
traditions
To be of
proven
quality
To be healthy / wholesome
To show my
personality /
own signature /
style
To be luxurious,
not what the
mass market
offers
To
experiment
with
… food in general
… dairy products
… white cheese
… yellow cheese
… processed cheese
… cream cheese
What do Bulgarians expect from …

5. made of real milk
constant quality over time
Bulgarian origin
harder
not crumbly
salty
watery
fatty
easy to cut
no sour taste
packaged
from a well-known producer
“thick” taste
expensive
absolutely white colour
4%
6%
8%
3%
15%
11%
63%
55%
54%
52%
49%
47%
42%
38%
36%
33%
26%
26%
18%
15%
14%
The top three characteristics of the “ideal” white cheese refer to contents of
real milk, quality over time and origin; the perception differs by pack type
PACK TYPE
PACKED BULK
70% 53%
61% 44%
3% / 37% 2% / 60%
4% / 34% 7% / 54%
32% 50%
5% / 41% 11% / 41%
35% 37%
2% / 33% 2% / 36%
26% 36%
33% 23%
39% / 2% 1% / 54%
26% 18%
16% 18%
24% 9%
8% /11% 13% / 12%
THE IDEAL WHITE CHEESE IS:no yes

6. 14.00
15.16
13.50
15.71
14.19 14.00
10.09
11.25
9.00
10.93
9.95
8.31
13.35
13.97
12.47
15.00
13.00
12.42
10.29
12.30
10.15
12.50
10.17
8.38
8.00 BGN
8.50 BGN
9.00 BGN
9.50 BGN
10.00 BGN
10.50 BGN
11.00 BGN
11.50 BGN
12.00 BGN
12.50 BGN
13.00 BGN
13.50 BGN
14.00 BGN
14.50 BGN
15.00 BGN
15.50 BGN
16.00 BGN
all respondents packed cheese
consumers
bulk cheese
consumers
capital big cities small towns
MAX
MIN
Indifferent
Optimal
Quality Cheese Price Perceptions
PACK TYPE SETTLEMENT SIZE

7. Marketing Strategy:
AWARE
Marketing Strategy:
GENERATE INTEREST
Marketing Strategy:
KEEP
Marketing Strategy:
IMPROVE LIKING
Unaware
Not Interested
(aware, but not consider buying)
Not Committed to Brand
(do not necessarily prefer Brand X)
Committed to Brand
(usually prefer Brand X)
(attitude axis)
(behaviour axis)do not buy consider buy
+
-
0
The biggest share of Brand X cheese audience falls into the
UNAWARE segment, i.e. the most important marketing priority is to
build brand awareness
59%
18%
19%
4%
77% of the regular category consumers do not
consider Brand X when buying processed cheese!
23% of the regular category consumers have the brand in their consideration set when
choosing a processed cheese brand to buy

8. UNAWARE NOT INTERESTED INTERESTED
(consider buying)
SHARE OF PREFERENCE
Brand X 31% 30% 19%
Brand 2 41% 24% 13%
Brand 3 34% 33% 12%
Brand 4 40% 32% 10%
Brand 5 36% 39% 10%
Brand 6 57% 25% 9%
Brand 7 36% 39% 9%
Brand 8 47% 33% 7%
Client Brand 59% 23% 6%
Brand 10 73% 16% 3%
Brand 11 75% 19% 2%
Brand 12 93% 1% 2%
Cream Cheese is the segment with the strongest brand
commitment and share of preference concentration. Brand X is the
top brand with 19% share of preference
18%
24%
24%
22%
17%
7%
18%
14%
15%
8%
4%
5%
21%
11%
9%
6%
8%
11%
7%
6%
3%
2%
with weak brand commitment with strong brand commitment
*The Share of Preference represents the
value share of a brand in an ideal world,
where consumers could buy the goods
they want – in the quantities they would
like to. Differences to the real world value
shares reveal the impact of the market
barriers over the brands performance.
TOP BRANDS HEALTH OVERVIEW

9. 3%
6%
1%
13%
2%
24%
6%
1%
12%
2%
22%
2%
< 250 g 300 g 350 g 400 g 450 g 500 g 600 g 750 g 800 g 900 g 1kg > 1 kg
Preferred Pack Size, Packaging and Reasons behind
13% 28% 31% 22% 7%
Only bulk Mainly bulk Equally Mainly packed Only packed
29% Packed41% Bulk
43%
43%
38%
36%
34%
26%
23%
14%
It is always fresh
Reason2
Reason3
Reason4
Reason5
Reason6
Reason7
Reason8
Why Bulk? Why Packed?
59%
52%
41%
41%
37%
13%
8%
4%
More convenient
Reason2
Reason3
Reason4
Reason5
Reason6
Reason7
Reason8
AVG size :
685g
PACK SIZE PACK TYPE

10. Target claims openness to buy the tested product, yet inscriptions’
language might prove a barrier for 2 out of 3 respondents
3%
5%
10%
28%
55%
[5] I would definitely buy
[4] I would probably buy
[3] May be
[2] I would probably not buy
[1] I would definitely not buy
[6+7] Would buy 83%
Mean score 4.3
IMPACT ON PURCHASEPURCHASE INTENT
INSCRIPTIONS’ LANGUAGE
ON THE PACKAGE
DRIVER 2
DRIVER 3
6%
16%
18%
51%
10%
32%
23%
39%
6%
2%
26%
19%
33%
17%
6%
[5] Very positive
[4] Rather positive
[3] Won’t influence
[2] Rather negative
[1] Very negative (won’t buy)