CHINA CONSUMER RESEARCH

Transcription

1 July 2014 CHINA CONSUMER RESEARCH EXECUTIVE SUMMARY

2 CHINA CONSUMER RESEARCH CONTENTS BACKGROUND 3 METHODOLOGY 4 KEY OPPORTUNITIES &KEY CHALLENGES 5 KEY INSIGHTS THE CHINESE MACADAMIA CONSUMER 6 MACADAMIA'S IMAGE & ORIGIN PERCEPTION 6 AWARENESS & PENETRATION 7 CONSUMPTION BEHAVIOUR 7 CONSUMPTION FREQUENCY & EXPENDITURE 8 RETAIL DYNAMICS & MEDIA HABITS 8 TASTE PERCEPTIONS 9 THE HARD SHELL FACTS 9 THE CRACKING KEY 9 HEALTH, THE FAT BARRIER & CONSUMER EDUCATION 10 CREATIVE TEST CONCEPTS 10 TEST CONCEPT DIAGNOSIS 11 2

3 BACKGROUND Australian Macadamias have enjoyed successful launches in several Asian countries, namely Korea, Japan and Taiwan. Consumers in these markets have been receptive to the communication strategies implemented, with the result being increased awareness and market penetration. The question that looms large in light of this success is What potential does China hold for Australian macadamias? From October 2013 to January 2014, an in-depth consumer study was commissioned as a means of scoping out the current popularity and uses of macadamias in this market. The overall conclusion of the study was that China is a market that holds significant potential and opportunities for Australian macadamias. However getting the supply and marketing fundamentals right will be crucial. The study has painted a clearer picture of the current status of macadamias in China. Following is a summary of key opportunities, challenges and insights. 3

4 METHODOLOGY THE RESEARCH WAS CONDUCTED IN MULTIPLE PHASES AND WAS BOTH QUANTITATIVE AND QUALITATIVE: 900 CONSUMER INTERVIEWS Beijing ONLINE SURVEY? Guangzhou Chengdu Shanghai: x 2 FOCUS GROUPS RETAIL SURVEY MACADAMIA NUTS? THE RESEARCH WAS DESIGNED TO GAIN INSIGHTS IN A NUMBER OF KEY AREAS: Profile key users Understand overall awareness and consumption behaviour comparing macadamias with other tree nuts/ equivalent products Understand positioning of macadamias Understand triggers and barriers to consumption Assess price elasticity of macadamias Establish themes for macadamias that resonate with consumers Testing of various communication platforms and concepts Catalogue of macadamia products sold in retail and e-commerce channels Catalogue of distribution, product formats, packaging, pack sizes, origin and price Catalogue of product claims For further details on any of the findings in this document, or to discuss opportunities for your business please contact AMS Market Development Manager, Lynne Ziehlke lynne.ziehlke@macadamias.org 4

5 KEY OPPORTUNITIES TO DIFFERENTIATE AUSTRALIAN PRODUCT IN CHINA and determine whether good safety, origin and farming / processing expertise messaging will resonate TO INTRODUCE USES AND OCCASIONS which encourage more frequent macadamia consumption to bring about a marked increase in revenue AS PART OF A HEALTHY DIET TO TRIGGER CONSUMPTION VIA THE INTRODUCTION OF COMPELLING MESSAGES that differentiate macadamias from other nuts: MACADAMIAS ARE... HEALTHY & NUTRITIOUS In China no nut has yet established a clear strength in terms of nutrition and health benefits TASTY & VERSATILE Demonstrate the many different ways they can be consumed and introduce a variety of product forms and consumption occasions PREMIUM NUTS Perfect for gifts and offer anti-ageing benefits: this leverages their existing strengths G O U R M E T SNACKS & TREATS TO COOK SAVOURY & SWEET DISHES SPECIAL GIFT / P R E S E N T AND MORE... TO COMMUNICATE THE QUALITY MESSAGE and tie this to origin in order to broaden the base of consumers who seek out premium quality and have a positive macadamia taste experience TO COMMUNICATE KEY MACADAMIA MESSAGING VIA ABOVE-THE-LINE COMMUNICATION (the top information source) but also considering a greater presence in modern trade and brand-exclusive stores TO EXPLORE ELEMENTS OF HIGH-POTENTIAL CREATIVE CONCEPTS in the Chinese market-place to gain traction and create momentum in terms of awareness, trial and purchase frequency KEY CHALLENGES INCREASING STAND-OUT AND MARKET PENETRATION LIMITED KNOWLEDGE ABOUT AUSTRALIAN ORIGIN CATERING TO THE CULTURAL PREFERENCE FOR IN-SHELL RETAIL PRICE DIFFERENCE BETWEEN IN-SHELL AND KERNEL INCREASING CONSUMER AWARENESS AND KNOWLEDGE 5

6 Key Insights THE CHINESE MACADAMIA CONSUMER IN CHINA MACADAMIAS ARE PERCEIVED AS PREMIUM AND MORE VALUABLE THAN OTHER NUTS GIFT-WORTHY FEMALE BETTER EDUCATED IMPORTED AND EXOTIC - much of this perception is generated by the name Hawaii nut ASSOCIATED WITH ANTI-AGEING EXPENSIVE - significantly more so than the common nut SLIGHTLY HIGHER INCOME (Median Household Income of RMB 8,000+) HEAVIER USER OF NUTS OVERALL on average she has consumed 5-6 types of nuts in the past 6 months IN SHELL IS THE PREFERRED FORMAT (MORE PREMIUM) MOST MACADAMIA PACKS STATE CHINA AS THE PRODUCT SOURCE, WITH THE US BEING THE MOST QUOTED ORIGIN FOR IMPORTED PRODUCT HAWAII is considered to be the best quality source MACADAMIA'S IMAGE & ORIGIN PERCEPTION 6

7 AWARENESS & PENETRATION MODERATE RATE OF AWARENESS Macadamias currently have a moderate rate of awareness, with around half the respondents being aware of them. PENETRATION IS MUCH WEAKER Penetration is considerably weaker, with only 18% of respondents having consumed macadamias in the past 6 months. 18% HAD CONSUMED 49% 51% AWARE NOT AWARE 82% HAD NOT CONSUMED CONSUMPTION BEHAVIOUR Consumption habits and product formats are very limited Macadamias suffer from poor visibility in the market Nut consumers in China tend to consume different types of nuts Peanuts, chestnuts, pistachios and cashews are seen as having a taste advantage and taste is the top driver of nut choice The theme of individual leisure consumption resonated with participants, more so than the idea of a good snack' for sharing or serving to visitors : In-shell macadamias are not easy to crack and eat The mess created when cracking in-shell product is considered undesirable when entertaining guests They are quite expensive, and therefore reserved only for very close friends As they require a special cracking key, in-shell macadamias are not suitable for eating on the go as you need both hands free MACADAMIAS ARE CONSUMED IN SIMILAR WAYS TO OTHER TYPES OF NUTS: They are most frequently consumed alone, as a snack They are most frequently enjoyed as a snack with tea or to supplement a meal The most common product form is ready-to-eat / processed nuts - this is the most dominant and visible product form in China Many respondents associated macadamias with being in-shell, with the majority of focus group participants not having tried kernel due to the high price There were a few mentions of crushing them for ice cream or dessert toppings and as an ingredient for soy milk Macadamias are not viewed as a popular ingredient in chocolate and only one respondent mentioned them as part of a dish 7

8 CONSUMPTION FREQUENCY & EXPENDITURE FREQUENCY Those who had consumed macadamias in the past 6 months reported consumption either: ONCE A WEEK OR OCCASIONALLY While macadamias SHARE SIMILAR CONSUMPTION FREQUENCY WITH MOST OTHER NUTS, peanuts and walnuts are an exception, being consumed more frequently and more regularly EXPENDITURE Macadamias enjoy the HIGHEST EXPENDITURE PER PURCHASE OF ALL NUTS and while this is good news, the low rate of market penetration means revenue is currently low OPTIMUM PRICE POINT FOR IN-SHELL (PER 500G) = RMB 43 OPTIMUM PRICE POINT FOR KERNEL (PER 500G) = RMB 55 RETAIL DYNAMICS & MEDIA HABITS Macadamias are most frequently purchased via: SUPERMARKET HYPERMARKET BRAND EXCLUSIVE STORES There has been a PROLIFERATION OF E-COMMERCE PLAYERS in the Chinese grocery market, with myriad brands and SKUs of macadamias on offer ONLY 16 MACADAMIA BRANDS HAVE PRESENCE IN BOTH ONLINE AND OFFLINE CHANNELS THERE IS A SIGNIFICANT PRICE GAP BETWEEN RETAIL AND E-COMMERCE, with online prices often less than half those of retail. Price promotion is very popular in e-commerce FOOD INFO SOURCE While respondents were found to gain their food and health information from a variety of sources, TV ADS and RECOMMENDATION FROM OTHERS were established as the TOP SOURCES OF INFORMATION, as well as being the MOST TRUSTED. 8

9 TASTE PERCEPTIONS Soft crunchiness Natural creamy aroma Light sweetness Flavorsome Full mouth feel Sweet vs salty It was agreed that macadamias have a unique, preferred taste profile, differentiating them from the hard crunch of other nuts such as almonds and hazelnuts. This quality makes macadamias suitable for topping liquid food or soups This was mentioned more by frequent macadamia users This differentiates macadamias from most roasted salty nuts Macadamias are perceived as being as flavorsome as other nuts Macadamias deliver a full mouth feel, due to their large, round size and shape Their sweet flavour may limit consumption occasions where salty flavour is preferred FREQUENT USER GROUPS SHOW STRONG AFFINITY TOWARDS THE TASTE OF MACADAMIAS, however occasional users don t seem to be big fans of the macadamia s taste. This may be due to these users consuming lower quality or lower priced product. NEGATIVE PERCEPTIONS POTENTIAL INCONVENIENCE OF CONSUMPTION due to the time required to shell the product and the mess this process creates ANTICIPATED WASTE if the shell cannot be opened THE HARD SHELL FACTS POSITIVE ASSOCIATIONS SAFER AND MORE HYGIENIC the nut is better protected from pollution throughout growing, processing, transportation, packaging etc. ORIGINAL FLAVOUR IS RETAINED seasoning and additives are not easily penetrated to the nut THE CRACKING KEY x Apart from being practical, the cracking key brings unique novelty to macadamia consumption x The consumption ritual attracts consumers to try out the product x The tool makes the cracking process even more enjoyable and differentiates it from other nuts CRACKING FUN cracking the shell is seen as an enjoyable ritual during nut consumption 9

10 HEALTH, THE FAT BARRIER AND CONSUMER EDUCATION NUTRITIOUS LESS ADDITIVES without complicated processing (i.e. natural) CONTAINS MONOUNSATURATED FAT MAY HAVE SPECIFIC FUNCTIONS TO PARTICULAR BODY PARTS (like walnut for brain etc.) MACADAMIAS ENJOY THE AS A WHOLE CATEGORY POSITIVE HEALTH ASSOCIATIONS OF NUTS OIL/FAT IN NUTS is considered to be the source of their aromatic flavour and smell during consumption, and frequent nut users know that the fat/ oil in nuts is monounsaturated fat and good for health. FAT BARRIER However, the oil contained in nuts in general appears to be a potential barrier to frequent consumption as oil consumption is associated with weight gain. With its taste profile, the macadamia is considered to have a high oil/ fat content although not as high as pine seeds. Concerns exist around macadamia consumption and potential weight gain. CONSUMER EDUCATION Consumers don t yet have a clear idea about the unique health benefits of macadamias, for example the exact benefits of monounsaturated fat. CREATIVE TEST CONCEPTS The following concepts were tested with the research participants. Note: all concepts included mention of Australia as the product origin. A. TASTE B. TASTE + INDULGENCE C. ALL-ROUNDER D. HEALTH E. PREMIUM OVER-ARCHING A unique taste of pure nature A wonderful taste experience that you must not miss An all-round great taste that complements many different foods A guilt-free healthy food the king of nuts with the hard shell, superior aroma, flavor, health benefits, deliver joy and quality of life A. TASTE B. TASTE + INDULGENCE Overall Liking Purchase Intention Purchase Frequency Most Preferred Concept Best Fit For Nuts Tried During Test C. ALL-ROUNDER weak Relevant, Unique, Newsworthy D. HEALTH E. PREMIUM OVER-ARCHING Perceived Price All concepts performed on par 10

11 TEST CONCEPT DIAGNOSIS Concepts D and E delivered the most promising results. D. HEALTH GUILT-FREE HEALTHY FOOD (high potential concept) E. PREMIUM OVER-ARCHING KING OF NUTS (high potential concept) Originated from Australia, the macadamia is an authentic guilt-free healthy food that contains zero cholesterol. With 83% monounsaturated fats, macadamias are one of the nuts that contain the highest level of Palmitoleic Acid, which lowers blood cholesterol and strengthens blood vessels. Macadamias are good for prevention of cardiovascular and cerebrovascular diseases and so are a healthy option. Australia, the origin of macadamia, with fertile soil, and plenty of sun and rain, cultivates the top class of macadamia, the real king of nuts. The hard shell retains nutrition and freshness. The round and smooth kernel diffuses a rich creamy aroma. A smooth texture and light crunch brings long-lasting joy. Cholesterol-free macadamias contain 83% healthy monounsaturated fats that lower blood cholesterol and bring health and beauty. As king of nuts, macadamia makes your quality of life even better. Key messages of zero cholesterol and prevention of cardiovascular and cerebrovascular disease were successfully received among consumers Message of good origins was also well communicated at the prompted level The concept also delivers a tasty and premium image of macadamia nuts The healthy claim achieved a high level of appreciation, and thus high acceptance in terms of overall evaluation and preference The concept performs moderately in terms of fitness even among macadamia users and 21% of respondents think the zero cholesterol claim is exaggerated. Smooth and light crunchy texture was well received by consumers at the spontaneous level, while tasty, healthy/nutritious, premium image and good origins were successfully communicated at the prompted level With high appreciation in terms of claiming to be healthy and having a tasty image, the concept is on the whole highly accepted Macadamia users deem the concept to be relatively moderate in terms of being credible, which might be due to less communication of RTB (reason to believe) of the health benefits. They also think the concept performs moderately in delivering new news 11

12 FOR FURTHER DETAILS OF THIS RESEARCH OR TO DISCUSS YOUR NEXT PROJECT, FEEL FREE TO CONTACT: AMS Market Development Manager, Lynne Ziehlke on