SKYR

contents

1. SKyr2. Thise mejeri 3. Brand Iceland5. SWOT6. SEgmentation and user testing7. segmentation8. user testing

9. Competitive analyzis10. Porters five forces 11. boston matrix 12. voice map

13. problem formulation15. General methods16. CommUNICATION PLAN17. VALUES18. design programme 19. wireframe20.

is a unique dairy product with a magnificent Viking heritage. It originates from Iceland, where it was developed as a long-life alternative to milk. In the olden days, when the long and cold winters came, people found a solution to prolong the freshness of their food. Milk was warmed up and then cooled down, thus thickening it. It was then stored in a wooden barrel, and the whey was left to drip out of it for few days. The resulting product was a thick and protein-filled substance called Skyr. You can read about Skyr in the old Viking tales about people eating Skyr, great warriors eating a full plate of Skyr after chopping the head of there enemies or taking a full barrel of Skyr with them to Norway or Den�mark on there Viking ships.

nowadays, skyr is a quintessential part of the icelandic diet. it is renowned for it’s high protein content and is enjoyed by people of all backgrounds and ages. it has been available in denmark since 2006, but has failed to become an integral part of the danish diet.

SKYR

Because the product is a relaunch, it will have to start from scratch in the Product Life Cycle, meaning it’s a problem child right now. The stra�tegic marketing objective in the introduction phase is to build, meaning the strategic focus is to expand the market. A strategy would be to focus on defendable niche where dominance can be achieved.Another objective should be product awareness; make the potential customers realize there’s a new product worth trying. The distribution is patchy, but becomes wider when being a Star.

Problem children are cash drains, because of low profitability and the need for more invest�ments, so it’s important to move on to the growth phase (Stars).

product life cycle

conclusions+considerations-product is niche: product awareness is crucial. Inform+educate.-high protein content is a USP, is this interesting to danes?-product is already at market, focus on expansion and streamlining of distribution channels.

Company ProfileThise Mejeri was founded in 1988. The wide range of stand�ard- and special products combined with a steady stream of new product launches is why so many Danes know Thise Mejeri.

MissionDespite the dairy’s small size, they have a strong position on the Danish market. Thise Mejeri is the biggest producer of ecological cheese and yoghurt in Denmark.

VisionThise Mejeri’s vision is to have “uncompromising ecologi�cal quality”, while expanding and increasing their market shares.

ValuesThise Mejeri seeks to optimize the benefits of being a small dairy producer; Maneuverable, quick conversion processes combined with the ability to build niche prod�ucts.

GoalsThe goal is to remain the biggest producer of ecological cheese and yoghurt, while expanding to other products.

thise mejeri

conclusions+considerations-thise mejeri’s ecological stance is an ESP.-thise is well-established and respected in market, how can this reputation be communicated in our marketing of skyr?-small size is an ESP: local, friendly, easy to relate to. (< eg. ARLA).

ash clouds & banking crisesBrand iceland

It is logical that a severe banking crisis – and the resulting requests for substantial loans – temporarily threw Iceland into the interna�tional spotlight for un-desired reasons. But Iceland’s economy was never a trait that mar�keteers focused their branding efforts upon. What is more, one should view the Icelandic reaction to the crisis as a strength. They have been proud of being hard-working, independent and stubborn people who are willing to go a long way to protect their newly gained inde�pendence and interests. The veto and the result of the referendum is consistent with the image Iceland earned last century and is only strengthening that. Indeed, consistency in opin�ions and behaviour has a tendency to have a strengthening effect on brand and image: that is a good thing for the Icelandic brand.

For thousands of years the protein-rich dairy product Skyr has been an integral part of a healthy Icelandic way of living. However, given developments in recent years, it is important to consider the risks associated with marketing a product as being quintes�sentially Icelandic. Whilst we must be care�ful not fall into the trap of presuming that “any publicity is good publicity”, we must also be aware that it would be dangerous to base any crticism of Iceland as a national brand on the incorrect assumption that nega�tive publicity always has a negative effect on a brand. We must recognise that despite the hard economic knock that Iceland has taken, it’s reputation as a healthy-living soci�ety perched on the an island filled with natural wonders, remains sternly in tact.

conclusions+considerations-skyr is inherently icelandic, therefore marketing must feature icelandic-ness.-self-irony could be a clever marketing option-we must be careful which icelandic values to focus our branding upon.

"Whether the events of recent years are viewed as a negative or positive effect on brand Iceland, in our re-launch of a prod�uct that is such an inherent part of the Icelandic lifestyle, we would do well to consider including a certain amount of self-irony in our marketing.”

StrengthsSkyr is a strong brand in Iceland – it should be considered a household name. It has specialists in every position within the company. Skyr has been in development for over 1000 years in Iceland and it is always improving. It has had successful launches on two international markets: Finland, USA. It is a relatively new product in Denmark. It is healthier than similar products that are already on the market in Denmark.There is nothing else like Skyr on the Danish market. Skyr uses only the best quality ingredients. All the ingredients come directly from farmers in Denmark. Traditional Icelandicproduct that is strongly linked to the Icelandic nature. Thise Mejeri is located in the countryside of Denmark - therefore appealing to Danish people because it shows it is not a large industry. Thise Mejeri posseses a license to produce Skyr in Denmark.

WeaknessesProduced by a “small” dairy product company (Thise Mejeri) in Denmark, compared to the large producers (ARLA). Damagtted reputation because of Eyjafjallajökull and the banking crises in Iceland. Skyr is unknown in Denmark. People might prefer to buy products that they are already familiar with.

SWOTThreatsARLA is the largest dairy product company in Denmark selling over 85% of all dairy products.ARLA has control of the Danish market: prices, suppliers, product range etc. ARLA could produce the same product, but cheaper. Reliance on resource prices.

OpportunitiesDairy products are not often advertised on the Internet, so that is a good way for Skyr to advertise so it’s in peoples faces all the time? Use Facebook, blogs, a promotionalwebsite and other Internet media to advertise.Skyr could focus on health-conscious people in Denmark. Visit fitness centres, opportunities for educating Danes about health values of Skyr (High Protein content, low fat content etc).

s Wo T

segmentation and User Testing.

under 18 18-25 26-40 41-65

77 responses

20%

30%

40%

50%

60%

70%

10%

How old are you?

do you live in denmark?

yes [64%]

no [24%]

our questionnaire was posted on facebook, using Google Docs. Given our ages (between 21-28), it is natural that most people who answered it are between the ages of 18-40. we asked this question for 2 reasons:1) to become aware of who answered our questionsand, more improtantly:2) to discover which demographic participates in such surveys (given that a signi�cant proportion of our mar-keting strategy will be based around social media and viral campaigns.

It is worth mentioning at this point that:We consider the Skyr demographic to be ALL ages.

given the global nature of facebook and google docs, it is important to know that the recipients of the questionnaire were indeed from our target market (denmark). whislt 64% represents the majority of recipients, if we had the resources avaialble we would, in the future carry-out a more in-depth qualitative survey.

How important is country of origin when buying a dairy product?

Unimportant Important1 3 52 4

5

10

15

20

25

no. votes

13% 12%

27%30%

18%

When buying yoghurt, would you choose a product from your own country over an identical product from another country?

Yes [74%]

no [26%]

We suspected that country of origin might be an important factor in people’s buying habits. Given the relevance of hygiene etc, and the differing global standards relating to this, we felt it important to make a risk assessment of branding a product as being Icelandic in our segment.

However, we still need to know:-Is Iceland a “good” country of origin for a dairy prod�uct?-Is a Dane in our segment more likely to buy a Danish dairy product?

The answer to this question is very telling. We should focus on the fact that although Skyr is a traditional Icelandic foodstuff, it will be made by Thise Mejeri, using Danish milk, from Danish cows. This should be re-assuring in the eyes of Danish end-users, and according to this statistic, will make them more likely to buy the product.

“A Danish product made the Icelandic way.”

Do you consider protein content when buying yoghurt?

do you read the label to discover sugar content when buying yoghurt?

how often do you buy small individual pots of yoghurt as an on-the-go snack?

yes [60%] no [40%]

yes noyes yes yes yes yes no no no

yes [32%]

no [68%]

10%

20%

30%

40%

50%

Never 1-2 2-3 3-4 times a week

healthy-livinga signifcant factor in Icelanders’ love for Skyr is that it has such high protein content. we need to discover if this translates over into the Danish way of thinking, and if the high protein content is something that we should focus our marketing efforts on.

This result (only 32% considering protein content as being important) is surprising to us. Perhaps this is a case of Danies focusing on other features in yoghurt (low-fat, low-sugar etc)??

We should consider marketing the product as a low-fat, high protein product. Rather than a high protein, low fat product.

we know our competitors (arla yoghurts with cereal, yoggi snack yoghurts etc). Whilst these are undoubtdly extremely popular products featuring in all danish supermarkets and convenience store chains, we need to know buyer habits. Frequency of purchase is essential.

competitive analysis

The dairy industry is one of the biggest food industries in Denmark, with approximately 4000 million kg of milk products being sold annually. The market is extremely competitive and the swedish company arla has a dominant market position of 90% in Denmark. arla sell approx. 3.500 million kg of milk products every year. where dairy produce is concerned, we suspect that country of origin will play a prominent role in buying habits amongst danish customers. further analysis of this will be carried-out through a quantative research questionnaire.

Danish dairy key players

Arla (90% market share)

Thise mejeri (5-6% market share)

Mammen Mejeri A/S

Them Andelsmejeri

Bornholms Andelsmejeri

Faurholt & Thrane I/S

conclusions+considerations-arla features a similar (though larger) product portfolio. how are we different/better? ---ecology? small-size? local-ness? attachment to iceland?-carry-out further research into country of origin importance.

The threat of new competitors today there are approximately 20 different milk companies in Denmark. Although ranging in size, about half of these focus on the milk and yoghurt product ranges, whilst 5 produce Ice cream, and a further 5 produce cheese products. The market is large, with a few well-established and powerful players. For a new competitor to enter the market, it would entail substantial investment and clever marketing. Dairy produce is linked inherently with freshness, nature and cleanliness, which makes it difficult for a new competitor to sway a buyer from their buying habits.

Power of buyersour producer - thise mejeri - is an established and well respected player in the danish dairy produce market. it is a brand that is built around ecological and natural values. This is appealing to the danish buyer. thise mejeri’s presence in danish supermarkets has won it a place in danish hearts, our challenge is to boost skyr’s strength in this product portfolio. the long-life (approx. 3 weeks) characteristic of skyr makes it an appeal�ing retail option for large and small outlets alike. this also represents a good sales trait for thise mejeri, in that retailers may be encouraged to buy in larger quantities from the outset. being one fo only a few “skyr license” holders in denmark means that buyers will be attracted by a sense of exclusivity. (we should not, however, place too much focus on this - it is, after all, dairy product!

Availability of substitutes skyr is a unique product. their are dairy products with similar characteristics and properties available on the market, but Skyr holds a strong card with its high protein and low fat content. The closest substitutes are the different forms of yoghurt that are available. skyr’s longevity represents a USP worth focusing on.

Power of suppliersBeing the largest dairy producer in Denmark, Arla has the most significant access to milk supplies (which stem from both denmark and sweden). in this way, arla can impact margins and volumes for other dairy producers and have power over the market. thise has taken the step of using danish, rather than icelandic milk, to produce Skyr. This is significant in that it brings production costs down and speeds-up the sourcing process. outside factors (force-majeure etc) should be consid�ered, but are nto of signifcant concern given the abundance of resources in the region.

c o m p e t i t i v e industry rivalry

conclusions+considerations-high protein,low fat separate skyr from substitutes/competitors-long-life characterstic may be important to buyers-danish vs. icelandic milk (”an icelandic product made on quality danish produce)”-what if arla decides to produce skyr? thise version needs to have an “added-value”: special recipe? health feature?

Stars problem children

cash cows dogs

boston matrix

conclusions+considerationsskyr represents a problem for thise mejeri. whilst it is well represented in danish supermarkets, it is a niche product and has yet to break through into the mainstream. We believe that it has the potential to become an integral part of the danish diet, and therefore see the potential for it to become a star. by focusing our marketing strategy on the snack market, we can sell individual pots with a spoon at a slightly higher price and therefore achieve a slightly higher mark up.

High brow

Low brow

Fun/Personality Functionality

Desired position

Present position

Them-ost.dk

Arla.dk

Thise.eu

mammenost.dkt

saedager.dk

st-clemens.dk

thranes-mejeri.dk

naturmaelk.dk

voice map

proba long history combined with the very modern characteristics it has to offer a health-conscious consumer makes it a most interesting product to re-launch. Added to this, it is a challenge to address the situation of marketing an Icelandic product in Denmark, given the recent saga with the ’ash cloud’ and the banking crisis.

1. what is SKYR? educating Danish population.

2. must be Separated from similar products: creme fraiche, greek yoghurt etc.

3. not just for breakfastEstablish it as an ”on-the-go” snack.

SKYR

”There is a lack of knowledge amongst the Danish population as to what Skyr is. How can we address this and establish Skyr indivdual serving pots as a major player in the ”on-the-go” healthy snack market in Denmark?”

lem?formulation

prob

We are going to make a re-launch of the product, Skyr. The re-launch will not be effective unless we know the company behind the product. Therefore we have analysed skyr.is and thise.eu and found the mission, vision and goals of the companies. The analy�sis helps us to understand how the companies work, what their identities are and what image they want to give. This is helpful when we’re building the prototype and constructing and styling the website.

We have used some elements of the SCRUM method in order to divide the tasks up. rather than appointing a ‘scrum master’ - we had project managers for separate project areas. (eg. business analysis, design manual, web design). We have made a kanban chart on podio.com, which is an online work platform where you can upload files, delegate assignments and get an overview over the entire workload. We’ve made an Excel document with all the subsidiary goals of the project. In terms of development, we’re mainly using the waterfall method. We try to plan well ahead, so there’s time to make the finishing touches. in terms of time management, we have dedicated the most substantial timeframe to a comprehensive business analysis and the design and con�struction of the webpage.

We made a roughboard and wireframes for the web design. We’ve used storyboards for the advertisement videos. We want to use some free open-source platforms in order to develop our presentation skills. Therefore we’re going to expreiment with issuu.com for the design report.

general methods

Purpose-Visual representation of Skyr on the Danish market-Informative resource (educate as to what Skyr is)-Reinforce values and visual communication of Skyr.is

Effect-User will know what Skyr is-User will buy Skyr-User will “buy into” healthy lifestyle-User will become a part of Skyr “community”.

Message-Skyr is a healthy and delicious snack-Skyr is a healthier alternative than yoghurt-An Icelandic product made the Danish way

SenderThise Mejeri (not MS or Agrice)-A small, ecological, dairy producer, an Icelandic product created the Danish way.

ReceiverDenmark > Everyone > Yoghurt Eaters > Health freaks/Busy people

communication plan

buyer profile:in the same way that yoghurt is a product consumed by almost anyone who likes the taste, it is difficult to set specific demographic boundaries for who exactly our target group is. However we envisage that our buyer, Lars, is a health-conscious, fitness-centre registered profile. Lars subscribes to Men’s Health magazine, and receives a monthly box of organic goodies from Årstidens. The low fat content makes Skyr seriously attractive to his girlfriend, whilst Lars enjoys a bowl after he’s been training as a high protein alternative to the sugar-filled chocolate milk that most of his mates drink. The young couple both have busy working lives, and they can identify with the benfits of a healthy, on-the-go snack like Skyr. Secretly, Lars also likes the kudos he gets from fellow shoppers when standing in the queue at Netto - he thinks it’s cool to buy a strangely-named Icelandic product!

ValuesqualityWe produce top class dairy productsTrustWe intend to nourish the trust that we have been given.ServiceWe focus on innovation, diversity and excellent service.OriginOur roots are in the Icelandic countryside, in the clean and fresh nature.ProfessionalismProfessional practices and ambitious - we want to make our consumers happy.IntegrityWe are honest and trustworthy and want to reflect that in the market.EmpathyWe are one company and we are consistent in all our projects.FreshnessFreshness in all areas - in the products, the initia�tive, the creative thinking and when communicat�ing with consumers.

Design programmeFontsWe chose the font "fontastique" for the headings, because it reminded us of the Icelandic alphabet. For the body text we are gonna use a sans-serif because of it’s readability. We want the text to be simple and easy to read, so we are going for the classic black text on a white/light background.

colorsthe color scheme will remain true to the company’s cooperate colors. We will be using the Purple from the logo, and maybe from there work with different values and gradients.

user experienceWe of course want the users of the site to have a good time while visiting, so we want the design and visual elements to be pleasing, fun and easy to navigate. We also want to add some interactivity to make the website more alive and enhance user experience. We will be using hover effects and a slider, built in jQuery.

the skyr logo