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Dairy Crest ‘The Dairy Report 2007’

Dairy Crest ‘The Dairy Report 2007’

Dairy Crest has released ‘The Dairy Report 2007’ summarising key findings from ‘Dairy for Life’, a year-long study into the behaviour and attitudes of the Dairy consumer.

This was gained through over 600 hours of research including; consumer diaries, focus groups, in-home interviews and accompanied shopping trips.

Executive Summary

The Industry

The chilled Dairy category is now worth £7.6bn with Dairy products being purchased by over 99% of all UK households. The ‘Dairy Report 2007’ shows that the consumer regards Dairy as a super-category, which has potential to grow to between £8 billion and £10 billion over the next 5 years.

Shopping and consuming

Mums gain real satisfaction from keeping a full fridge as it means they are effectively providing for their family. Dairy products are regarded as an essential component of a healthy diet, with strong nutritional and emotional benefits.

Dairy is one of the most frequently visited fixtures in-store due to the important role that Dairy plays in feeding the family. A well-merchandised Dairy fixture can be seen to act as a benchmark by which the shopper judges their shopping experience.

The Dairy fixture should be easy for the consumer to navigate, with simple signage and a logical layout.
Dairy is an essential basket item for the shopper.

The Dairy Report 2007 identifies four separate shopping missions that consumers undertake while shopping; all of them include Dairy products:
- I’ve got to go – stocking up on staples
- I’m out of – ran out of something needed
- Get it for – buying products for a planned occasion e.g. BBQ
- I feel like – indulgent shopping trip

The Dairy Report consumer research reconfirms that the shopping experience can be dramatically affected by clear in-store navigation and that the Dairy fixture plays a crucial role in shaping the feelings of the shopper.

Macro Trends

The Dairy Report 2007 has identified 3 essential pieces of consumer insight into Dairy consumption:

1. People consumer Dairy products every day
2. Dairy is seen as an essential component of good health
3. People enjoy consuming Dairy products

This insight underpins 3 core consumer drivers which can be used to leverage future growth in the Dairy category;

Dairy for Now

Time is increasingly precious, with meal preparation time decreasing substantially and snacking consumption on the increase. Dairy for Now adds value by providing Dairy products that help ‘buy back time’ for the consumer.

Dairy for Health

Some 65 per cent of the population look for some kind of health benefit from their food consumption. Consumers intrinsically see Dairy as healthy providing important nutritional benefits.

‘Dairy for Health’ is about developing new Dairy product variants that deliver an everyday or functional health benefit.

Dairy for Pleasure

Some 41 per cent of all consumption occasions are driven by the desire for pleasure and reward. The “Nigella Factor” has created new found confidence in the kitchen, with people looking for new ways to incorporate great tasting Dairy products in recipes.

‘Dairy for Pleasure’ is about adding to enjoyment of food through taste, provenance and quality.

The ‘Dairy for Life’ consumer insight has also identified some clear merchandising opportunities for the Dairy aisle. Simple changes could improve consumer navigation with the potential for generating greater sales.

These include;
o Displaying product clearly e.g. on the chilled gondola end
o Merchandising organic Dairy products in the main fixture to make price comparison easier
o Offering healthier lunchtime alternatives by merchandising on-the-go Dairy products in the snacking fixture
o Rationalising the cheese fixture to help simplify and minimise confusion caused by too many ranges
o Using fixtures to display recipe and usage ideas

Group Marketing Development Director, Richard Tolley said, "The Dairy Report 2007 is an important part of Dairy Crest’s ongoing commitment to understanding and responding to consumer needs.

“The report throws up some interesting insights into the consumers’ emotional attachment to Dairy and what an essential part of their shopping trip Dairy plays.

He added, “We’re confident that the Dairy industry and retailers alike are in a strong position to respond and grow the category to £10bn by 2012.”

AJR
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