lynne ziehlke - consumer research project - china

Consumer research project - China

Prepared by: Lynne Ziehlke

Market Development Manager, The Australian Macadamia Society

16 October 2014

2014 AMS 40th Anniversary Industry Conference proudly presented by

We have had success in Japan, progressing in Taiwan and Korea but

“what potential does China hold?”

1. 4-phase in-depth consumer study 2. Information & analysis

3. Strategy4. Implementation and monitoring

Overall conclusion positive


China DOES hold significant potential and

opportunities BUT its going to be long game and

it will be challenging

Research methodology


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Key insight: the Chinese macadamia consumer

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Key insight: awareness & penetration

Awareness is moderate Penetration is much weaker

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Key insight: consumption behaviour

• Macadamias are consumed in similar ways to other nuts

• TASTE = #1 driver of nut choice • Other nuts seen as tastier than macadamias• Limited macadamia consumption occasions• Best for ‘Individual leisure consumption’

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Key insight: consumption frequency & expenditure

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Key insight: the hard shell

POSITIVESSafer & more hygienic

Original flavour retained

Cracking fun, especially

with a cracking key

NEGATIVESInconvenience

Mess

Potential waste

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Frequent users: strong affinity for macadamia ‘taste’

Occasional users: not as big fans


Key insight: taste perceptions

• Soft crunchiness• Natural creamy aroma

• Light sweetness

• Flavoursome• Full mouth feel• Sweet vs salty

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Key insight: health & the fat barrier

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Key insight: image & origin perceptions

• Premium, more valuable than other nuts• Gift-worthy• Imported & exotic• Associated with anti-ageing• Expensive

PREFERRED FORMAT = in-shell. Considered more premium.

PERCEIVED BEST QUALITY SOURCE = Hawaii

MOST COMMON ON-PACK SOURCE = China

MOST QUOTED ORIGIN ON IMPORTED PRODUCT = USA

Australian Macadamias 澳洲果仁

Only 28% are aware of Australia as a source

Hawaii nut 夏威夷豆 or 夏威夷果仁

Hawaii is considered the best quality source

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Key insight: retail dynamics

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Origin claim

Shanghai retail channel E-Commerce channel

Domestic 54% 95%

Imported 38% 5%

Australia 6% 0.4%

US 15% 2%

Other 17% 3%

China origin claim in most casesUS the most quoted origin for imported product

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Retail dynamics

Retail channel more unified, only 27 brands vs 52 in e-commerce

Macadamia channels Brand SKU

Shanghai retail 27 52

E-commerce 358 1,135

Total 370 1,178

Macadamia SKUs Shanghai retail E-commerce

In shell 52% 84%

Kernel 41% 12%

In shell product dominates # SKUs in

E-commerce channel

Snapshot: Macadamia on-pack claim trends


高级食用坚果(Premium nuts)

精选优质坚果(Carefully select good quality nuts)

高品质，原产地(High quality, From place of origin)

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有机食品(organic food)

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氮气保鲜，无防腐剂(Freshness

retained

by Nitrogen, no

preservatives)

富含人体所需8种氨基酸(contain 8 amino

acids needed)

富含矿物质和纤维(contain minerals

and fibers)

好吃营养(Tasty &

Nutritious)

健康生活(healthy life)

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Key opportunities


TO DIFFERENTIATE AUSTRALIAN PRODUCT: Safe, origin, farming/processing expertise

INTRODUCE NEW USES

AND OCCASIONS increase consumption

frequency and revenue

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Key opportunities (cont’d)


TRIGGER CONSUMPTION USING COMPELLING MESSAGING: differentiate macadamias from other nuts

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Key opportunities (cont’d)


COMMUNICATE THE PREMIUM/QUALITY MESSAGE: tie this to origin, broaden the base of ‘quality-seeking’ consumers who

have a positive macadamia experience

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Key challenges


• Increasing standout & market penetration

• Limited knowledge about Australian origin

• “Hawaii nut”

• Cultural preference for in-shell

• Retail price difference between in-shell & kernel

• Increasing consumer awareness & knowledge

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Most compelling concepts

HEALTH: Originated from Australia, the macadamia is an authentic guilt-free healthy food that contains zero cholesterol.

PREMIUM OVER-ARCHING: Australia, the origin of macadamias, with fertile soil, and plenty of sun and rain, cultivates the top class of macadamia, the real ‘king of nuts’.

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Next steps

1. Marketing strategy2. Gather market intelligence3. Market support/

branding and promotion

COMPLETED

ONGOING

LAUNCH 2015

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Top markets for macadamias


29

3

160

2030

16

-100

-50

0

50

100

150

200

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

US (net) China/HK (kernel

imports)

Australia (sales)

Japan (imports)

Germany (imports)

China/HK (in shell

imports)

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GTI

S, A

MH

A

lynne ziehlke - consumer research project - china

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