Finding the sweet spot: Health · PDF file · 2012-04-10Modern Trade Traditional...
Transcript of Finding the sweet spot: Health · PDF file · 2012-04-10Modern Trade Traditional...
Rinka Banerjee
Regional Technology Director
Foods
Unilever R&D, South Asia
March 17, 2011Nutra India SummitBangalore
Finding the sweet spot: Health Foods
�The D&E opportunity
�Understanding today’s consumer
� Issues & Opportunities
� Some best practises
What will I talk about…..
Large business opportunities in Asia
Foods and HealthCare
Foods market in China + India: >€500B growth projected in 2025
Source: McKinsey Global Institute Analysis
Sweetspot:Health foods
The health food and beverages market
growing 20-30%/annum in Asia
Health & Wellness Food & Beverage market:
� India €3bn in 2010 expected to grow to €7bn by 2015
Euromonitor, Tata Strategic Management Group, 2010
� China €15bn in 2010 expected to grow to €54bn in 2015 (incl. TCM)
RedFern, 2010
The India Story: Key Drivers
2/3rd Population below age of 35 Population to grow wealthier
Steady increase in Urbanisation Favourable consumption pattern
• Changes in the incomes and expenditure is creating opportunity at all levels.
Source : National Council of Agriculture & Economic Research; Family Budget Study
2003181 million households
2013231 million households
131
46
3
124
11
96
Affluent
Aspirers
Strivers
Rich Classes
Top End Business
Changing attitudes
Trebling
Credit Culture
B.O.P Opportunity
Aspiring Classes
Striving Classes
>$ 4,675 p.a.
$ 975-4,675 p.a.
<$ 975 p.a.
Shifting Income & Expenditure Trends
2006Expenditure Groups
>$ 326 p.m.
$152-$326 p.m.
Upto $ 152 p.m.
2015 (projected
)
45%
18%
37%
28%
41%
31%
1% 4% 6% 8%
29%37%
42% 45% 48% 49% 53% 55%
68%
99% 96% 94% 92%
71%63%
58% 55% 52% 51% 47% 45%
32%
Bangladesh
India
Pakist
an
Sri La
nka
Vietn
am
China
Indonesia
Mala
ysia
South K
orea
Philippin
es
Taiwan
Thaila
nd
Hong K
ong
Modern Trade Traditional Trade
• Shifts in consumption and expenditure will also alter the Trade Structure in favour of the modern trade
Changing Consumption Pattern
~1990
UndernutritionObesity and
cardiometabolic disease
now
“Double burdenof malnutrition”
Undernutrition is now mainly characterized by nutrient deficiencies,not so much lack of energy
‘Nutrition Transition’
India is a global epicentre of diabetesIndia is a global epicentre of diabetesIndia is a global epicentre of diabetesIndia is a global epicentre of diabetes
● Estimates that 60 million adults in India have diabetes today
● Diabetes prevalence is even high (and rising) in Indian towns and villages
Ramachandran A, et al. Diabetes Care 2008;31:893–8
18.6
16.4
9.2
20
18
16
14
12
10
8
6
4
2
0
Chennai Town Village(city)
Dia
be
tes p
reva
len
ce
(%
)
Consumer attitudes towards H&W
Inner HarmonyIntegrating emotional
wellbeing into a holistic view of health and
wellness
Return to NatureSeeking reassurance in nature for the safest and
best choice
Force FieldingDefending the body against illness and
disease
Debit-Credit Lifestyles
Doing good to make up for the bad
Permission to Indulge
Seeking products that offer guilt-free indulgence
Fashion Your BodyEnhancing physical
appearance beyond what Mother Nature gave you
Key Semantics of health
Good health is seen to automatically
convey clean immediate
surroundings, personal hygiene
Significant of no deficiencies or
lethargy ���� thus, allowing an individual to perform with vigor
and energy
Enables me to do more
Good health is culturally
equivalent to a high standard of
living. Therefore, associated with personal wealth. Also,
traditionally associated with
superior castes.
Good health also leads to
affluence since ‘health is wealth’Refers to the prolongation of youth
and a feeling of inner as well as
exterior beauty “If I am healthy then
my face will look rosy and young”
Refers to an absence of any illness
(more critical or less)
Allows no room for disruptions
Associated with an intake of ‘healthy’, fresh and wholesome diet * Internal consumer research data - HUL
Life Threatening
Sudden and disruptive;little control
Can only be cured;
cannot be managed
Diseases which can be managed or controlled
Cause disruption of order in
everyday life
Offer little control
Can only be cured; cannot be managed
Consumer perception of disease
* Internal consumer research data - HUL
Other insights which are changingthe dynamics
Shoppers are concerned about quality: will buy trusted brands
…which could be driven by bad experiences
Chocolates teeming with worms and covered with thin faecal matter
– Financial Express,January 2005
“51% of all food items contaminated with pesticides”“Grapes, cabbages, spinach and rice get sprayed at least 20 times with pesticides”
– Outlook, August 2006
Are afraid of poor quality and unsafe products
Per cent agree/strongly agree
87
2323
35
42
India China Brazil Russia US France
…which could be driven by bad experiences
Chocolates teeming with worms and covered with thin faecal matter
– Financial Express,January 2005
“51% of all food items contaminated with pesticides”“Grapes, cabbages, spinach and rice get sprayed at least 20 times with pesticides”
– Outlook, August 2006
Are afraid of poor quality and unsafe products
Per cent agree/strongly agree
87
2323
35
42
India China Brazil Russia US France
Source: How Half the World Shops (2006)
Barriers to Packaged Foods exist, need special efforts to overcome
65
41
45
• I will never buy pre-packaged vegetables or fruits
• I will never buy pre-packaged meat, poultry, or seafood
• Chicken isn't fresh if I haven't seen it killed in front of me
India average*BRIC average*
* Excludes Struggling
Source: How Half the World Shops (2006)
25
26
35 65
41
45
• I will never buy pre-packaged vegetables or fruits
• I will never buy pre-packaged meat, poultry, or seafood
• Chicken isn't fresh if I haven't seen it killed in front of me
India average*BRIC average*
* Excludes Struggling
Source: How Half the World Shops (2006)
25
26
35
New meals: South Indian, Chinese, Kid combos..
Eating out: restaurants & 6 million street vendors
Special needs: Health, Preventive, Kids nutrition
New meals: South Indian, Chinese, Kid combos..
Eating out: restaurants & 6 million street vendors
New meals: South Indian, Chinese, Kid combos..New meals: South Indian, Chinese, Kid combos..
Eating out: restaurants & 6 million street vendors
Special needs: Health, Preventive, Kids nutrition Special needs: Health, Preventive, Kids nutrition
& Indians are eating out with gusto & Indians are eating out with gusto
Define consumer segments: are you speaking to managers, healers or investors?
Strugglers
Managers
Healers
Disciples
Unmotivateds
Investors
Key Challenges – finding the sweet spot
� Ride the wave vs creating a wave
� Tasty & Healthy
� Building trust & credibility
� Consumer communication
� Intuitive fit – brand, product, benefit,
Health products typically exhibit a market pattern
Technology consumers:
•Have a near- medical need for a product•Pay a premium for
something that addresses their
situation•Typically constitute 6-8% of consumers
Lifestyle consumers:•Interested in
maintaining wellness, not fighting illness•Will pay a premium
only if it supports their lifestyle
•Typically constitute 20-25% of consumers
Mass market consumers•They are motivated only when a benefit becomes
standard•Will pay no/ marginal
premium and be attracted to existing strong brands
•About 60-70% of consumers
An explosion of consumer choices
Approaches across the pyramidApproaches across the pyramid
Consumer communication challenge
� Consumers seek healthy foods and beverages, but:
� do not always know what choices to make
� often have misconceptions about what is healthy or unhealthy
� They are interested in nutrition information, but:
� often don’t read back-of-pack information at point of purchase
� have difficulty understanding labelling information
� Simple “smart choice” front-of-pack logo to endorse health credentials of the product
The Choices Stamp
Visual expression of choice
Scientifically referenced
Qualifying criteria for key nutrients
Saturated fat
Trans fat
Sodium
Added sugar Dietary fibre
Energy
Building awareness and education
Building awareness and education
Empower Rural India to combat Micro
Nutrient Deficiency through Education
on Health & Nutrition – Vitaglow demo
Using Shaktiammas to educate BOP consumers on
need for iodised salt
Driving Taste & Health
Understanding Top Down Expectations
Using Bottom up Senses
Need to drive taste and health together
Health Taste
The Sweetspot!
Aligning brand, product and benefit
Intuitive, consumer-friendly fit
brand
productbenefit
It’s worth riding a wave rather than trying to create one!
Leveraging traditional knowledgeLeveraging traditional knowledge
-- an examplean example
Ayurvedic ingredients helps protect
my family from common illness like
cough and cold.
Target consumer : Contemporary urban
homemaker who wants the best for her family’s health
Define the consumer insight
Some people fall ill less often than
others. During change of weather
some people get cough and cold
while others don’t which is because
of immunity.
ImmunityImmunity-- Red Label Natural care Red Label Natural care
Consumption of Brooke Bond Red Label (BBRL) Natural care tea significantly improves NK cell activity
�Tea fortified with Ayurvedic herbs�Two clinical trials to back the immunity claim on pack
The Product
�A unique mix of 5 ayurvedic ingredients -
Ashwagandha, Mulethi, Ginger, Tulsi and cardamom
�In house developed low cost technology for
uniform distribution of extracts on tea
�5 panel artwork - a packaging innovation to
differentiate the ingredients to consumers
0 .0 0
0 .50
1.0 0
1.50
2 .0 0
2 .50
3 .0 0
3 .50
4 .0 0
C ont ro l Ginger B asil M ulet hi A shwagandha
Cell Culture Based BioCell Culture Based Bio--AssaysAssays
Natural Killer Cell Assay
Would it work in Human ???
Natural Killer cell activity enhanced by herbs in vitro.
Gingerol, λλλλmax :320nm, λλλλmax :355nm
Withaferin A , λλλλmax 228nm
Detection wavelength: 282nm
Detection wavelength:
250nm
Retention time: 8.48 min
Retention time: 6.910 min
6-Gingerol
Detection of Herbs in Tea ExtractGlycyrrhetinic acid , λλλλmax: 276nm
Ursolic acid , λλλλmax: 200nm
Detection wavelength: 250nm
Detection wavelength: 210nm
Retention time: 7.42 min
Retention time: 5.64 min
Result Result
Consumption of Fortified tea significantly improves NK cell activity.
0
5
10
15
20
25
0 1 2
Intervention Duration (Months)
NK
Cell A
cti
vit
y (
%)
Regular Tea
Fortified Tea*
1 2
*
Execution:
- 360 communication
- Activation
Business Results:
Strong double digit growth
Significant contribution to RED LABEL
“In store” Activation
Red Label Natural Care: 360 Communication
Summary
� Nutrition transition: Double burden
� Large, fast growing market for health & wellness foods
� Consumer attitude to disease delaying – still not in preventive space !
� Leveraging key consumer trends, insights/beliefs and major market
segments is the key to success
� Products should deliver taste & health – key challenge
� Traditional knowledge – great opportunity – needs to be in today’s reality
� Claims must be backed with appropriate scientific substantiation
� Claims that do what they say and say what they do !
� Ensure alignment of product, brand and benefit; “Intuitively must make
sense”
� Consumer communication - 360 degree approach required (industry,
government and NGO’s, health care experts, consumers, customers)
Small actions every day can make a big
difference !