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2013 IFT Chicago What Consumers Want from Industry Regarding Food for Children

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Linda Ettinger Lieberman
Linda Ettinger Lieberman

This document summarizes a presentation on conducting research to understand what types of healthier food options for children would be most appealing and profitable for the food industry. It involved: 1) Developing survey stimuli in the form of marketing messages about different product and packaging attributes. 2) Administering an online survey to rate how pleasing respondents found each message and how much extra they would pay. 3) Analyzing the results to identify the most pleasing and highest value attributes, as well as different consumer mindsets. 4) Suggesting the food industry develop products and messaging targeted to specific mindsets to maximize appeal and profits from healthier children's food options.

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Foods for children: What should industry offer tomorrow? Linda Ettinger Lieberman, Dvora Chaiet, Nadya Livshits, Howard R. Moskowitz Moskowitz Jacobs Inc. Batool Batalvi, SB&B Marketing Research IFT Chicago, July 15, 2013
How to create healthier foods for children Foods for children are getting a lot of attention. The food industry has to respond to parents concerns. A lot of focus will be on marketing to children What issues resonate with parents most? Which products are perceived as best for children? What food products will command higher prices? Psychological foundations of research Empathy the mine of ideas Experiment The acid test Running the experiment What do parents most want for their children? Different mind-sets offer major opportunities
Where do we begin? We need to have a deep understanding of what parents want. Most marketing efforts remain peripheral and superficial. Focusing on what, not on the parent-child relationship. 5 KEYS EMPATHY holistic qualitative research paradigm emerging from nutrition economics. Explores psychic apparatus of parents. Uses a hybrid mix of qualitative techniques. Methods engage parents, elicit responses, generate insights. A disciplined, qualitative process. Empathy and Experiment: Psychology of empathy and the science of experiment
Foundation for Mind Genomics速 IdeaMap速.net Modeled on science of genomics, informatics technology The three roots of RDE: Experimental psychology Driving power of business The world-view of social science How Rule Developing Experimentation (RDE) operates Extracts ideas as basis of the stimuli to be tested Both objective (topical) and subjective (experiential) insights used to create elements to be used in vignettes Runs structured tests which mix and match elements (ideas) Discover winners messages which float to the top. Uncovers mind-set segments Create a typing tool to assign a person to a segment. How to create healthier foods for children
DEVELOP Child oriented SURVEY STIMULI AND QUESTIONS What Parents Demand & Will Pay for ANALYZE SURVEY RESULTS Mind Genomics速 IdeaMap 速.net INTERNET invitation Mind Genomics 速 IdeaMap.net SURVEY IDENTIFY Parents as target market Total Sample Seg 1 Self Driven Online Banking Seekers Seg 2 Technology/ High Security Seekers Seg 3 Collaborative Online Seekers Seg 4 Personal Touch with Technology Base Size: (267) (105) (50) (59) (53) Constant: 31 34 28 31 26 OC1 Connect online in 'real time' with a customer rep via instant messaging, voice over IP or video conferencing via your computer 0 2 2 5 -13 OC3 Faster loan application processwork in real time online with a loan officer 0 0 -8 12 -8 OC4 Our bank's customer service reps will help you browse and use our online banking services -1 0 -6 10 -10 OC2 Use our online tool to find and schedule at your convenience an online working session with an expert such as investment broker, insurance agent, and/or loan officer -3 1 -11 6 -12 ON3 We will answer all your requests in 'real time' by email, instant or text messaging 1 7 -11 3 -1 ON4 We offer 'On demand' status reports for services requests (e.g., loan application) delivered to you via e-mail, text or instant messaging 1 6 -4 -3 0 ON2 No more paper mail... We will send you statements and images of transactions securely by email -2 5 -17 -5 2 ON1 We allow you to pay bills securely using your mobile devices (cell phone, PDA, Blackberry, etc.) -4 2 -13 -9 -2 BR3 We offer a bank-issued smart card so we can recognize you entering the branch and process your needs faster 4 2 6 -3 13 BR4 Choose a secure eye or finger security scan to identify you immediately in-branch and at ATM 4 3 10 -1 3 BR2 We have the most secure biometric system that identifies you as you enter the branch so we can process your needs faster 2 -1 8 -5 6 BR1 We will recognize our customer's mobile phone signal when entering a branch so we can recommend appropriate bank products, promotions and special services -4 -3 -6 -11 2 Online Collaborative Online Other In-Branch Recognition No more paper mail we will send you copies of statements by secure e-mail Securely manage your account by PDA, Internet of automated telephone Our banks customer services reps will help browse & use our on-line services Manage all your banking needs with a state of the art kiosk and be confident that live help is available if you need it No more paper mail we will send you copies of statements by secure e-mail Securely manage your account by PDA, Internet of automated telephone Our banks customer services reps will help browse & use our on-line services Manage all your banking needs with a state of the art kiosk and be confident that live help is available if you need it MARKET SEGMENTATION SEGMENTATION WIZARDMARKETING PHRASES The steps of the RDE process
Raw materials: Sample Elements from Silos A-C Silo A: The product Less cane sugar and high fructose corn syrup, and no artificial sweeteners No or low bad fats, which may reduce risk of heart disease Less or no added salt, which may help reduce blood pressure Added Omega-3 and Omega-6 fatty acids, which may increase brain function More fiber to improve digestive health More calcium and vitaminsknown to help bone growth Silo B: The package Smaller portion packages help control weight Family-sized/bulk food packages indicate recommended children's portion Bulk food packages contain separately wrapped single portions Wide array of healthy food options for common family favorites Children's health/nutrition needs explained on package label Package shows children's serving in portion food plate Silo C: Good for you All natural ingredients a food you feel good about feeding your family Good for children helps build brain power Good for children helps build and maintain muscles Good for children keeps them slimmer Good for children gives them more energy Good for the whole family
Elements combined into vignettes = small ad Rated on 2 questions pleasing the reader and price would be paid Note: The price is randomized
A marketing panel study (diverse group, n = 301)
Each respondent rated 48 vignettes Vignette first rated on pleased 9 point scale Vignette then rated on dollars extra would pay select a dollar value Slope of the simple equation: Extra $ = a + b (Pleased) -3 -2 -1 0 1 2 3 4 5 Dollar value for unit of pleased Each circle = respondent How many more dollars will a person pay for being pleased by what the industry promises? Will people pay extra for vignettes which please them?
Reading the numbers: Which elements please? Which raise willingness to pay (WTP)? ≒Pleased = probability that a person will be pleased (rating 7-9) Constant = baseline of % being pleased without any elements in the vignette Each element contributes its own percentage of people being pleased Dollar value = incremental willingness to pay (WTP), over and above the specified $86 purchase when the element is introduced into the vignette
What pleases people most And how much extra money will they pay? Pleased Price Constant 34 All natural ingredients a food you feel good about feeding your family 12 1.30 Less cane sugar and high fructose corn syrup, and no artificial sweeteners 11 1.36 Insurance premium reduction for completion of healthy cooking and eating class 10 1.42 More calcium and vitaminsknown to help bone growth 10 1.20 No or low bad fats, which may reduce risk of heart disease 10 1.26 Added Omega-3 and Omega-6 fatty acids, which may increase brain function 10 1.25 Supermarket cash register reduces prices that stretch your budget when you buy healthy foods 10 1.26 Earn coupons for free or reduced-price healthy foods with each week's food purchases 7 1.38 Government improves nutritional quality of school meals 5 1.29 Farmer's market and food vendors accept coupons for healthy food purchases 7 1.22 Promotion of healthy food choices at all types of storesclub, supermarket, 7-11, QuickChek, etc. 6 1.20 Good for children keeps them slimmer 7 1.19 Less or no added salt, which may help reduce blood pressure 8 1.15 More fiber to improve digestive health 5 1.15 Good for children helps build brain power 9 1.12 Good for the whole family 4 1.07 Manufacturer works with government and community about new food portion sizes 8 1.02
Dividing our respondents into mind-economic groups (cognitive-economic segments) Seg1 Seg2 Seg3 111 83 107 Average price would pay across all 36 elements 0.96 1.02 1.04 Seg1 : Values help by government , store, and school Promotion of healthy food choices at all types of storesclub, supermarket, 7-11, QuickChek, etc. 2.25 0.75 0.46 Vending machines in schools and elsewhere should show calorie counts for all items offered for sale 2.02 1.04 -0.28 Manufacturer works with government and community about new food portion sizes 1.97 0.93 0.10 Government improves nutritional quality of school meals 1.87 0.52 1.27 Earn coupons for free or reduced-price healthy foods with each week's food purchases 1.83 0.76 1.40 Seg2 : Values better packaging Smaller portion packages help control weight 0.02 2.90 0.35 Package shows children's serving in portion food plate 0.01 2.43 0.15 Children's health/nutrition needs explained on package label -0.11 2.21 0.35 Wide array of healthy food options for common family favorites -0.14 2.17 0.56 Bulk food packages contain separately wrapped single portions 0.06 2.14 0.64 Seg3: Values better food & focus on the children Less cane sugar and high fructose corn syrup, and no artificial sweeteners 1.18 1.00 1.84 All natural ingredients a food you feel good about feeding your family 0.99 1.06 1.82 Free "Feeding the Kids Workshop: Raising Happy, Healthy Eaters" for parents at local elementary/middle school -0.03 0.69 1.77 Good for children helps build and maintain muscles 0.39 0.69 1.75 Free "Feeding the Kids Workshop: Raising Happy, Healthy Eaters" for parents at local community center 0.10 0.79 1.66
Primaries: Different Parent Mind-Sets: What They Want and Dont Want Segment 1: Will pay for help by government, store and school Segment 2: Will pay for better packaging Segment 3: Will pay for better food, focuses on the children Each one of you in this room belongs to one of the three primary mind-sets Which one are you? Which one is your potential customer? What will YOU create for that customer?
Identifying the mind-set of parents Its not who they are, its their mind You know what appeals to parents But when a parent is in front of you .. To what segment does that person belong And ...how are you going to communicate .. What will you say? And how do you know its convincing Promoting better health for children Saying the right thing is as important as doing the right thing
The typing wizard
What is your neuro-economic segment?
With corporations and food policy on the defensive, use knowledge about whats important to people Use it to redesign packages Create a PR campaign using targeted, impactful, 1:1 communications by knowing a persons mindset But how? Dont wait to find linkage between a person and a mind-set using big data Mind-type people, e.g., as part of a supermarket chain loyalty program, or as a game on the web Send each person a particularized message based on the mind-type (mind segment) to which he belongs From Data to Food Policy and Strategy Identify and Use these Mind Sets
Key Learnings We can subject what industry should do to a S-R experiment Provide vignettes of whats to be done Get ratings of pleased and amount would pay Deconstruct ratings into element contributions People will pay more for what they like People differ in how much theyll pay for a unit of liking Typically $1 - $2 for one unit of being pleased Its all in the elements On average, an element will increase payment by about $1 This holds for most subgroups Its hard to get above $1.50 for an element You can make people happier and get more by mind-set segmentation Not on the average ...its still $1 on average But you can get far more than $1.50 for the right elements by segmenting your respondents into mind-types
Going to the next stage Lets move beyond the obvious..to the next step portion size and perhaps satiety Our data suggest portion size is relevant but not crucial, burning issue Not too much attention will be paid Nor effort put in to figure out how to reduce portion size Yet its relevant and important Collaborative work being funded by Ajinomoto WHAT to communicate to reduce portion size..food, situation, benefit Stay tuned ...

More Related Content

2013 IFT Chicago What Consumers Want from Industry Regarding Food for Children

  • 1. Foods for children: What should industry offer tomorrow? Linda Ettinger Lieberman, Dvora Chaiet, Nadya Livshits, Howard R. Moskowitz Moskowitz Jacobs Inc. Batool Batalvi, SB&B Marketing Research IFT Chicago, July 15, 2013
  • 2. How to create healthier foods for children Foods for children are getting a lot of attention. The food industry has to respond to parents concerns. A lot of focus will be on marketing to children What issues resonate with parents most? Which products are perceived as best for children? What food products will command higher prices? Psychological foundations of research Empathy the mine of ideas Experiment The acid test Running the experiment What do parents most want for their children? Different mind-sets offer major opportunities
  • 3. Where do we begin? We need to have a deep understanding of what parents want. Most marketing efforts remain peripheral and superficial. Focusing on what, not on the parent-child relationship. 5 KEYS EMPATHY holistic qualitative research paradigm emerging from nutrition economics. Explores psychic apparatus of parents. Uses a hybrid mix of qualitative techniques. Methods engage parents, elicit responses, generate insights. A disciplined, qualitative process. Empathy and Experiment: Psychology of empathy and the science of experiment
  • 4. Foundation for Mind Genomics速 IdeaMap速.net Modeled on science of genomics, informatics technology The three roots of RDE: Experimental psychology Driving power of business The world-view of social science How Rule Developing Experimentation (RDE) operates Extracts ideas as basis of the stimuli to be tested Both objective (topical) and subjective (experiential) insights used to create elements to be used in vignettes Runs structured tests which mix and match elements (ideas) Discover winners messages which float to the top. Uncovers mind-set segments Create a typing tool to assign a person to a segment. How to create healthier foods for children
  • 5. DEVELOP Child oriented SURVEY STIMULI AND QUESTIONS What Parents Demand & Will Pay for ANALYZE SURVEY RESULTS Mind Genomics速 IdeaMap 速.net INTERNET invitation Mind Genomics 速 IdeaMap.net SURVEY IDENTIFY Parents as target market Total Sample Seg 1 Self Driven Online Banking Seekers Seg 2 Technology/ High Security Seekers Seg 3 Collaborative Online Seekers Seg 4 Personal Touch with Technology Base Size: (267) (105) (50) (59) (53) Constant: 31 34 28 31 26 OC1 Connect online in 'real time' with a customer rep via instant messaging, voice over IP or video conferencing via your computer 0 2 2 5 -13 OC3 Faster loan application processwork in real time online with a loan officer 0 0 -8 12 -8 OC4 Our bank's customer service reps will help you browse and use our online banking services -1 0 -6 10 -10 OC2 Use our online tool to find and schedule at your convenience an online working session with an expert such as investment broker, insurance agent, and/or loan officer -3 1 -11 6 -12 ON3 We will answer all your requests in 'real time' by email, instant or text messaging 1 7 -11 3 -1 ON4 We offer 'On demand' status reports for services requests (e.g., loan application) delivered to you via e-mail, text or instant messaging 1 6 -4 -3 0 ON2 No more paper mail... We will send you statements and images of transactions securely by email -2 5 -17 -5 2 ON1 We allow you to pay bills securely using your mobile devices (cell phone, PDA, Blackberry, etc.) -4 2 -13 -9 -2 BR3 We offer a bank-issued smart card so we can recognize you entering the branch and process your needs faster 4 2 6 -3 13 BR4 Choose a secure eye or finger security scan to identify you immediately in-branch and at ATM 4 3 10 -1 3 BR2 We have the most secure biometric system that identifies you as you enter the branch so we can process your needs faster 2 -1 8 -5 6 BR1 We will recognize our customer's mobile phone signal when entering a branch so we can recommend appropriate bank products, promotions and special services -4 -3 -6 -11 2 Online Collaborative Online Other In-Branch Recognition No more paper mail we will send you copies of statements by secure e-mail Securely manage your account by PDA, Internet of automated telephone Our banks customer services reps will help browse & use our on-line services Manage all your banking needs with a state of the art kiosk and be confident that live help is available if you need it No more paper mail we will send you copies of statements by secure e-mail Securely manage your account by PDA, Internet of automated telephone Our banks customer services reps will help browse & use our on-line services Manage all your banking needs with a state of the art kiosk and be confident that live help is available if you need it MARKET SEGMENTATION SEGMENTATION WIZARDMARKETING PHRASES The steps of the RDE process
  • 6. Raw materials: Sample Elements from Silos A-C Silo A: The product Less cane sugar and high fructose corn syrup, and no artificial sweeteners No or low bad fats, which may reduce risk of heart disease Less or no added salt, which may help reduce blood pressure Added Omega-3 and Omega-6 fatty acids, which may increase brain function More fiber to improve digestive health More calcium and vitaminsknown to help bone growth Silo B: The package Smaller portion packages help control weight Family-sized/bulk food packages indicate recommended children's portion Bulk food packages contain separately wrapped single portions Wide array of healthy food options for common family favorites Children's health/nutrition needs explained on package label Package shows children's serving in portion food plate Silo C: Good for you All natural ingredients a food you feel good about feeding your family Good for children helps build brain power Good for children helps build and maintain muscles Good for children keeps them slimmer Good for children gives them more energy Good for the whole family
  • 7. Elements combined into vignettes = small ad Rated on 2 questions pleasing the reader and price would be paid Note: The price is randomized
  • 8. A marketing panel study (diverse group, n = 301)
  • 9. Each respondent rated 48 vignettes Vignette first rated on pleased 9 point scale Vignette then rated on dollars extra would pay select a dollar value Slope of the simple equation: Extra $ = a + b (Pleased) -3 -2 -1 0 1 2 3 4 5 Dollar value for unit of pleased Each circle = respondent How many more dollars will a person pay for being pleased by what the industry promises? Will people pay extra for vignettes which please them?
  • 10. Reading the numbers: Which elements please? Which raise willingness to pay (WTP)? ≒Pleased = probability that a person will be pleased (rating 7-9) Constant = baseline of % being pleased without any elements in the vignette Each element contributes its own percentage of people being pleased Dollar value = incremental willingness to pay (WTP), over and above the specified $86 purchase when the element is introduced into the vignette
  • 11. What pleases people most And how much extra money will they pay? Pleased Price Constant 34 All natural ingredients a food you feel good about feeding your family 12 1.30 Less cane sugar and high fructose corn syrup, and no artificial sweeteners 11 1.36 Insurance premium reduction for completion of healthy cooking and eating class 10 1.42 More calcium and vitaminsknown to help bone growth 10 1.20 No or low bad fats, which may reduce risk of heart disease 10 1.26 Added Omega-3 and Omega-6 fatty acids, which may increase brain function 10 1.25 Supermarket cash register reduces prices that stretch your budget when you buy healthy foods 10 1.26 Earn coupons for free or reduced-price healthy foods with each week's food purchases 7 1.38 Government improves nutritional quality of school meals 5 1.29 Farmer's market and food vendors accept coupons for healthy food purchases 7 1.22 Promotion of healthy food choices at all types of storesclub, supermarket, 7-11, QuickChek, etc. 6 1.20 Good for children keeps them slimmer 7 1.19 Less or no added salt, which may help reduce blood pressure 8 1.15 More fiber to improve digestive health 5 1.15 Good for children helps build brain power 9 1.12 Good for the whole family 4 1.07 Manufacturer works with government and community about new food portion sizes 8 1.02
  • 12. Dividing our respondents into mind-economic groups (cognitive-economic segments) Seg1 Seg2 Seg3 111 83 107 Average price would pay across all 36 elements 0.96 1.02 1.04 Seg1 : Values help by government , store, and school Promotion of healthy food choices at all types of storesclub, supermarket, 7-11, QuickChek, etc. 2.25 0.75 0.46 Vending machines in schools and elsewhere should show calorie counts for all items offered for sale 2.02 1.04 -0.28 Manufacturer works with government and community about new food portion sizes 1.97 0.93 0.10 Government improves nutritional quality of school meals 1.87 0.52 1.27 Earn coupons for free or reduced-price healthy foods with each week's food purchases 1.83 0.76 1.40 Seg2 : Values better packaging Smaller portion packages help control weight 0.02 2.90 0.35 Package shows children's serving in portion food plate 0.01 2.43 0.15 Children's health/nutrition needs explained on package label -0.11 2.21 0.35 Wide array of healthy food options for common family favorites -0.14 2.17 0.56 Bulk food packages contain separately wrapped single portions 0.06 2.14 0.64 Seg3: Values better food & focus on the children Less cane sugar and high fructose corn syrup, and no artificial sweeteners 1.18 1.00 1.84 All natural ingredients a food you feel good about feeding your family 0.99 1.06 1.82 Free "Feeding the Kids Workshop: Raising Happy, Healthy Eaters" for parents at local elementary/middle school -0.03 0.69 1.77 Good for children helps build and maintain muscles 0.39 0.69 1.75 Free "Feeding the Kids Workshop: Raising Happy, Healthy Eaters" for parents at local community center 0.10 0.79 1.66
  • 13. Primaries: Different Parent Mind-Sets: What They Want and Dont Want Segment 1: Will pay for help by government, store and school Segment 2: Will pay for better packaging Segment 3: Will pay for better food, focuses on the children Each one of you in this room belongs to one of the three primary mind-sets Which one are you? Which one is your potential customer? What will YOU create for that customer?
  • 14. Identifying the mind-set of parents Its not who they are, its their mind You know what appeals to parents But when a parent is in front of you .. To what segment does that person belong And ...how are you going to communicate .. What will you say? And how do you know its convincing Promoting better health for children Saying the right thing is as important as doing the right thing
  • 16. What is your neuro-economic segment?
  • 17. With corporations and food policy on the defensive, use knowledge about whats important to people Use it to redesign packages Create a PR campaign using targeted, impactful, 1:1 communications by knowing a persons mindset But how? Dont wait to find linkage between a person and a mind-set using big data Mind-type people, e.g., as part of a supermarket chain loyalty program, or as a game on the web Send each person a particularized message based on the mind-type (mind segment) to which he belongs From Data to Food Policy and Strategy Identify and Use these Mind Sets
  • 18. Key Learnings We can subject what industry should do to a S-R experiment Provide vignettes of whats to be done Get ratings of pleased and amount would pay Deconstruct ratings into element contributions People will pay more for what they like People differ in how much theyll pay for a unit of liking Typically $1 - $2 for one unit of being pleased Its all in the elements On average, an element will increase payment by about $1 This holds for most subgroups Its hard to get above $1.50 for an element You can make people happier and get more by mind-set segmentation Not on the average ...its still $1 on average But you can get far more than $1.50 for the right elements by segmenting your respondents into mind-types
  • 19. Going to the next stage Lets move beyond the obvious..to the next step portion size and perhaps satiety Our data suggest portion size is relevant but not crucial, burning issue Not too much attention will be paid Nor effort put in to figure out how to reduce portion size Yet its relevant and important Collaborative work being funded by Ajinomoto WHAT to communicate to reduce portion size..food, situation, benefit Stay tuned ...