6216951 nbs-mc12 buyer behaviour wei-ching wang
TRANSCRIPT
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Behavioural Aspects of Benecol Spread
NBS-M12
Module Organiser: Dr. Georgios Chrysochoidis
Word Count: 3075
Student No. 6216951
28/02/2012
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Contents
Section Page
Executive Summary 2
Introduction 3
Background 4
- Market of Functional Food 4- Benecol Background 5
The situation of Benecol Spread 6
The Influential factors of consumers behaviour 11
- Consumer outline 11- Product benefits 12
Recommendation 14
- Product 14- Price 15- Place 16- Promotion 17
Conclusion 18
Reference 20
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Executive Summary
Recently, functional food has become a new healthy solution for the public.
However, there are several parts that food companies should be noticed
when sell it. Consumer behaviour could be generalized in different sectors.
People are influenced by various reasons, such as intrinsic consumers age,
gender, income, and education level and external environment and product
benefit. Previous literatures and reviews have provided some evidences
about the interaction between each aspect.
EU food regulations cause functional foods in an embarrassing situation that
products can not be promoted the benefit directly and consumers lack of
knowledge about it. However, there are some alternative solutions for
companies. By understanding consumer and their need, companies should
first address the issue that consumers need more information about products.
Companies could provide some soft messages instead of saying curative
effect directly, as well as this, increasing the brand popularity. In conclusion,
functional food has its potential market and the market which could probably
keep increasing in the future. Only when the company continue focus market
trend and communicate with the mass, it could win the majority of the
market shar
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Introduction
As the economic development change rapidly, the structure of modern
society has changed dramatically. People enjoy the pleasant from the
convenience; however suffer the drawbacks which come with the easy and
comfortable situation. Cancer, cardiovascular disease, and obesity, for
instance, the modern diseases all bother human. Although these illnesses are
because various reasons, such as inherit, environment, and diet, doctors and
nutritionist suggest that people should eat food with more nutrients and
vitamins. As well as this, the public has noticed the impact and seek the
better regime.
According to this, food companies try to meet consumers demand. Under the
premise, functional food is launched to provide a healthy lifestyle for public.
Recently, this market has grown more and more prosperous which provide an
opportunity for relative industry. However, functional food is not only to
satisfy human needs, but also to provide a positive attitude. By eating better,
people prevent the nutrition-related diseases and reinforce their physical
resistance. In this report, it intends to discover the factors of consumer
behaviour when purchasing functional food.
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Background
- Market of Functional foodFunctional food is considered as a solution for the public to absorb more
desirable ingredient from daily diet. It is first promoted in Japan in 1984
(Siro et al. 2008). A food can be regarded as functional if it is satisfactorily
demonstrated to affect beneficially one or more target functions in the body,
beyond adequate nutritional effects, in a way that is relevant to either
improved stage of health and well-being and/or reduction of risk of disease.
A functional food must remain food and it must demonstrate its effects in
amounts that can normally be expected to be consumed in the diet: it is not a
pill or a capsule, but part of the normal food pattern. (Diplock et al. 1999)
Functional food has been introduced to the market in softdrinks,
confectionery, diary, bakery and babyfood market. In Figure 1, it illustrates
that functional food has a significant increase in Germany from 1995 to 2000.
In the end of the period, there are about 301 million US$ in yoghurt. Moreover,
since consumers attempt to have a better quality diet for health, functional
food has regarded as a major opportunity for food industry for the following
years (Hasler, 1998).
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In Europe, the market volume is about 4-8 billion US$; nevertheless, the
market share of functional food is less than 1% of the total food and drinks
market (Menrad, 2003). Germany, France, and UK are the major consumption
region, and the total figure is higher than two thirds of all in Europe (Table 1).
Regard to the UK market, functional food has been experienced considerable
progress and can be considered as one of the most important market in
Europe.
Table 1: Function dairy products in Europe by country 1999 (Source: Hilliam, 2000)
Figure 1: Market development of functional dairy products in Germany (Sources: Biester, 2001; Hilliam, 2000a;
Menrad, 2000).
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- Benecol BackgroundBenecol is belonged to Raisio Group which is founded in 1939, and
manufacture markets foods, functional food ingredients, animal feeds and
brewery malts as well as food diagnostics (DATAMNITOR 2011). Benecol
launched the first non-dairy spread in 1996 which is a positive revolution in
Europe, especially in the original Finnish market, and in the UK and Ireland
(DATAMNITOR 2000). High levels of cholesterol can lead to high blood
pressure, blood clots and heart disease. The most serious cause of death in
the UK is heart disease and stroke (Laurance, 1998). The concept of Benecol
spread is based on a solid medical idea which reduces cholesterol more than
14% from margarine-type spread (DATAMNITOR 2000). Instead of lowing in
cholesterol itself, Benecol products has a major difference with other
low-cholesterol spread. The former is a cholesterol-lowering product which
removes the substance from the gut actively.
More and more people care about their health and expect the development of
food industry could bring something will prevent disease. The potential of
functional food seem optimistic. However, consumer acceptance will depend
on the efficiency, safety, and sensory quality (Gray, Armstrong & Farley,
2003).
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The situtation of Benecol Spread
In the UK dining culture, spread plays an important roles in daily life which is
used several times per day. Although lowing cholesterol margarine-type
spread could not completely replace medicine to cure patients, it supplies an
alternative way for the mass to have an advantageous eating habit.
Nevertheless, Western consumers consists that their dining is healthy that
makes them hard to accept new change for health food. As well as this, EU
residents understand poor nutritional knowledge ( Frewer et al., 2003).
Benecol products are the only series of foods which include Plant Stanol Ester.
Plant Stanol provides cholesterol-lowering ingredient which blocks the
uptake of cholesterol in the gut. Moreover, the plant stanols in Benecol series
has been proved that they are more effectively than absorb form a normal
diet.
According to NHS research (2008), there are only two products which could
enhance to reduce cholesterol: Flora and Benecol. The former is produced by
Unilever which is one of the most successful international companies in daily
products. To identify the cholesterol lowering product benefit, although
Benecol could reduce cholesterol, it is not manufactured for people who
want or need to lose weight. The recommendation for serving Benecol spread
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is two or three times per day. Moreover, this series could abate to ingest
cholesterol, yet it may also reduce the absorption of certain vitamins.
Consumers should notice this information when they using it. Research also
suggests that even it wont cause any harm, users should let doctors know
they are taking these products.
Although Regulation (EC) No. 178/2002 of European Parliament established
the European Food Safety Authority and laying down procedures in matters of
food safety. There is not particular sector to define functional foods or
nutraceuticals as specific food categories in European legislation ( Coppens
et al. 2006). In reality, food law, it is not acceptable to claim any food has
any specific disease prevention or medical claim but admissible to mention
health promoting claims. For example, rather than talking about helping
prevent heart disease, it is better to say enhance lower blood cholesterol
(British Nutrition Foundation, 2012). Therefore, there is no clear legislation
for functional food in the UK. IFIC (1999) points out knowledge and beliefs are
the most significant motivations of buying functional foods in diets. However,
the effect of functional food could only be described in a grey area measure.
In this case, the blurred issue has led to negative influence for consumers. To
reinforce the purchasing behaviour, the strict rules could creative
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opportunities and increase consumers interest. In Europe, companies
attempting to launch a functional food have faced a variety of legislative
frameworks regulating the approval of products. Reports show that suspicious
attitude for possible harmful effects of functional food, as well as this safety
of functional foods is the mainly affect people willingness to buy the products.
Additionally, the negativity impression of genetic modification of food
products may influence the market to accept functional food( Frewer et al.,
2003). It is highlighted that the risks and doubts is the main concern of using
functional food (Lahteenmaki& Urala, 2007).
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The Influential factors of consumers behaviour
Recently, food industry is facing the top market trend to functional food.
According to consumer behaviour surveys, there are various reasons influence
consumers behaviours which could be generalized into two parts, consumer
outline and product benefits. The prior describes the Socio-demographic
determinants including age, education, gender, and income. The latter focus
on innate characters of products, for example, taste, prevent disease, and
price.
- Consumer outlineBased on Verbeke (2005), he identifies that the US functional food consumers
are mainly female, well educated, higher income, and in older age group.
Basically, most of them have bachelor degree, and usually more than 55 years
old. In Verbeke (2005) report, Poulsen (1999) confirmed that compare to
Americans, although the consumer outline is similar, Europeans have higher
acceptance among the lower educated. Nevertheless, the higher socio-
economic groups show more willing to accept functional food because better
knowledge and higher awareness. In most researches, females are considered
as stronger purchase interest in functional food sector. They are more
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sensitive toward food and health issues and they are more interesting about
moral and ecological misgivings than men.
Ageing population is a significant topic in modern society. The older age
group has become the majority on health service, particular in heart disease
and cancer. Functional food may alleviate the symptoms of ageing and illness
has important meaning to elderly consumers.
- Product benefitsLahteenmaki and Urala (2004) point out that the dimension of functional
food could be described in several implications. By using functional foods to
improve health and physical condition gives users a tool to take care of
themselves which are considered as perceived reward. Moreover, taking
functional foods without illness makes consumers believe that they can have
better lifestyle. In western countries, the feeling of reward from using
functional foods is increasingly considered as being responsible for
themselves and making the right decision. Nonetheless, people who put
functional food in their shopping list were regarded as more innovative but
less friendly (Saher et al.,2004). On the other hand, choosing functional foods
may let consumers have a modern and positive impression of lifestyle. Under
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the situation, functional food may attract more consumers by giving a
modern and healthy image (Lahteenmaki and Urala, 2004).
Another factor to influence the purchasing is the taste of the product. Taste
is a compromised and willingness to use products. It may affect by individual
different, but toward a basic market trend. When people are choosing
functional food, taste is one of the most significant factors. In the latest
report, consumers attitude has strong linkage with the taste (Lahteenmaki
and Urala, 2004).
Other studies also point out that the premium price for functional foods is an
obstacle for users. Customers decisions are easily affected by high cost,
hence being too expensive would lower the acceptance of functional foods
(Verbeke, 2005). The report shows that compare to the normally price
spreads, more expensive products are considered as less natural and less
attractive ( Frewer et al., 2003). Since consumers are not familiar with novel
products like functional food, they are easy to resist it, especially when it is
a high price product.
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Recommendation
- ProductBenecol spread contain the special ingredient- Plant Stanol Ester which
could lower cholesterol. Although this product benefit could not replace
medical therapeutics, it still offers a positive incentive for purchasing.
Britain, a modern society, the population becomes older where the residents
have to face heart disease. Benecol should try hard to emphasis their
superiority, and educates the mass the knowledge of products. Benecol spread
provides an alternative solution for better lifestyle.
Generally, consumers do not have enough confidence in functional food
because there is no strike regulation in Europe. Nevertheless, Benecol could
continue providing relative efficacy surveys which might enhance end-users
willingness. Give shoppers a clear impression about their products and
convince consumer that Benecol spread is not only for people who have
suffered from diseases but for everyone who want health.
In the mean time, the taste of the public could be fickle. People might
change their like because diversified elements. The company should keep
communicating with consumers, and understand consumers need and wand.
Even it is impossible to change the taste of product all the time, keep
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concerning the market trend is the basic. Only when the company understand
its consumers preference then it could have chance to reach their demands.
- PriceAccording to MYSUPERMARKET (2012), a shopping website, the price range of
Benecol spread is about 3.34 which is approximately triple than other spread.
Since Benecol is in premium value, this company should explore more
opportunities to let their customers accept their products.
Even people accept to buy high-quality products in higher value there is a
barrier for buyers. This company should not only prove product benefit, but also
inspire consumers using it. Even though Benecol spread could stay in high
position to maintain the unique impact, but consumers are sensitive in expense.
Benecol could offer a small package size which could enhance shoppers to
attempt this product. Broaden their packages size range to provide an entry
level for the public. For example, the smallest product is 250g which sells 1.89
in Tesco. Compare to other general spread, Benecol could produce a small
size which sell could be lower than 1. That will improve the competitiveness
of their products and encourage consumers embrace Benecol.
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- PlaceBenecol products are widely available and should be found in all major
stores (Benecol , 2012). Basically, consumers can buy Benecil in every major
channel easily. However, Benecol should not only represent a functional food
but also an attitude for health lifestyle. The consumer outline describes that
the users of functional food are more women with high educated and higher
income. If Benecol could have more exposure to their target customers in
their activity area then that would enhance their target notices this brand.
Shopping malls are where usually women love to go. Benecol could open
Benecol shop in the shopping centre which handle high quality product like
John Lewis. In Benecol shops, they could services light meal, sandwich for
instance, which using Benecol spread as foundation taste. By doing this,
these shops serve food which give shoppers a try and provide health concept
to promote Benecol. Consumers could taste Benecol and get information from
sales people. They could either buy meal or bring ingredient home in the shop.
Because of this, Benecol could be closer to the end-users and promote the
brand image directly.
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- PromotionBuilding a brand should first promote the brand image. Clearly, Benecol has
high quality standard in its products with less volume for the public. The most
easily way to advertise it is celebrity endorsement. This celebrity should be
famous in dining field, could be a well-know chef or gourmet. He or she
represents a positive hygeian image which consumers attracted toward to be
or to live in similar way and building Brand awareness and recall. Such as
Jamie Oliver who is popular and interested in providing health diet. To
cooperate with Jamie Oliver could also sponsor his restaurants and set a
special meal for Benecol in his restaurants.
Beside this, trade promotion is another essential part should be emphasized.
Retail stores can be an extremely competitive environment. Trade promotion
is considered the best way to differentiation with other competitors.
Sampling is a clear case of point to let consumer have chance to taste
Benecol products. Moreover, combine the celebrity endorsement, Jamie
Oliver could go to the main channels to have some interaction with
consumers which could strengthen the linkage between the brand and the
celebrity.
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For advisement, the theme should be talking about healthy lifestyle which
reminds consumer the positive image to Benecol. As well as this, the key
visual should keep communicating the celebrity endorsement which
consistently gives out a persuasive message.
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Conclusion
Modern society enhance human a complex environment. Although people
could live in convenience, they are suffering modern diseases, such as cancer
and heart disease. Nowadays, eating better has become the top issue which
people pursuit hard to achieve. However, there are some barriers for
consumer to use functional food. Previous surveys indicate that consumers
concern about the ingredient. Limited consumers knowledge and awareness
of ingredient let them distrust functional food. To address the obstacle,
Benecol should first understand the consumer demands then approach to
educate consumers about product benefits in a soft way.
Moreover, even the strength of Benecol series is lowing cholesterol, European
food law regulates that functional food could not promote the curative effect
directly. The EU food regulation is blurred which drives consumers are
confused about. Since the product could not replace the medical therapy ,
people are wondering whether functional food could be beneficial their daily
eating or not. In the case, Benecol should transform this advantage to what
people want. For instance, better diet equals quality lifestyle which could let
the public picture a pleasant image of healthy life.
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After that, market mix should follow the same theme. Producing an entry
package size for non-user is the first step. As well as this, Benecol should
increase product exposure in the target audience activity area and every
channel. For advertising promotion, keeping communicating that using
Benecol products could have a better living condition is the priority.
Celebrity endorsement is usually considered as the easiest method to
increase the brand volume. However, the celebrity should represent a
consistent healthy format and has experience in relative diet field.
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