The Food and Health Marketing Handbook

This is ‘the answer’ to the question of how to choose a nutritional strategy and develop a successful brand – a concise guide on how to market foods with health benefits now exists

Contents

Foreword	A word from Tetra Pak	1

Part 1	Strategy Development

Chapter 1	Introduction: How to use this Handbook	3
	A strategy is not a category	3
	The challenge of innovation	3
	New nutrition science	4
	Strategy	5
	Product concept development and brand positioning	5

Chapter 2	The many ways of seeing health	7
	The "wellness generation"	7
	Health products stumble	7
	The information overload	8
	Choosing a personal path to health	9
	Vegetarian foods	9
	Natural foods	9
	Organic foods	10
	Low-carbohydrate diets	10
	Ambivalence reigns	11
	The unstoppable obesity epidemic?	12
	Fat and fit is OK	13
	Just one trend among many	13
	Snacking and on-the-go consumption	13
	Treats	13
	Efficient nutrition	14
	Performance snacks	14
	Convenience	14
	Cash-rich, time-poor	15
	Women working	15
	Increase in single-person households	16
	Getting the consumer’s attention	16
	Conclusion	16

Chapter 3	From Hi-Tech to Hi-Touch: Science Push or Consumer Pull?	19
	Introduction	19
	The value chain starts in the mind of the consumer	19
	The Ambition: Adding Hi-Tech to food for higher added value	20
	Hi-Tech and Hi-Touch – applying lessons from other Hi-Tech to consumer markets	21
	Hi-Tech = innovations in technology	21
	Hi-Touch = innovations in marketing	21
	Producer Value or Consumer Value?	21
	Applying lessons from the Hi-Tech phone market	22
	Phase 1: Hi-Tech with Lo-Touch	22
	Phase 2: Hi-Tech with Hi-Touch	23
	Summary of the lessons from mobile phones	24
	Cholesterol-lowering spreads – applying the lessons from the Hi-Tech food market	26
	Phase 1: Hi-Tech with Lo-Touch	26
	Phase 2: Hi-Tech with Hi-Touch	27
	What can we learn from these Hi-Tech examples?	28
	Corporate culture can define whether your company chooses Hi-Tech or Hi-Touch	28
	Production-centered businesses	28
	Consumer-centered businesses	28
	Is your marketing about science push or consumer pull?	30
	Definitions	30
	Science Push – the Benecol example	30
	The role model of Science Push	31
	Consumer Pull – the Yakult example	31
	Life marketing	32
	Death marketing	33
	The development of functional foods strategies	33
	Functional foods phase 1	33
	Functional foods phase 2	34
	Conclusions	34

Chapter 4	Targeting the different stakeholders of health	37
	Introducing the Functional Foods Marketing Model	37
	Technology stakeholders	38
	Lifestyle stakeholders	40
	Brands with lifestyle appeal	41
	Summary	42
	Mass market consumers	42
	Functional foods marketing strategy: develop the market, stakeholder by stakeholder	43
	Sounds simple?	44
	Crossing the chasm to the mass market	44
	Using the Functional Foods Marketing Model	44
	Why target a niche in the mass market?	45
	Case study: ProViva – making a mainstream brand	46

Chapter 5	Five strategies to enter the market	49
	Strategy 1: Leveraging nutritional assets	49
	Definition	49
	Case study: Leveraging a hidden nutritional asset to build a new ingredient business – Kemin Foods	50
	Case studies on this strategy	51
	Description	51
	Strengths and advantages	53
	Disadvantages	53
	Summary	54
	Strategy 2: New category creation	54
	Definition	54
	Case studies on this strategy	54
	Description	54
	Strengths and advantages	55
	Disadvantages	56
	Summary	56
	Strategy 3: New segment creation	56
	Definition	56
	Case studies on this strategy	56
	Description	57
	Strengths and advantages	57
	Disadvantages	58
	Summary	58
	Strategy 4: Category substitution	58
	Definition	58
	Case studies on this strategy	58
	Description	58
	Strengths and advantages	59
	Disadvantages	59
	Summary	60
	Strategy 5: The functional foods make-over	60
	Definition	60
	Case studies on this strategy	60
	Description	60
	So where after these five strategies?	61

Part II	Brand Development

Chapter 6	The Four Factors of success	63
	1. Need the product	63
	2. Accept the ingredient	63
	3. Understand the benefit	63
	4. Trust the brand	63
	Case study: The Four Factors in action: Up & Go	64
	How to use the four factors	65
	The first factor: need the product as food	65
	Consumer choice is dictated by the consumption situation	65
	Map the needs and find the new segments	65
	Make your product the best solution to a need	66
	Look out for the re-fuelling situations	67
	Finding changes in consumer behaviour is one of the keys	67
	Who, when and why – the key questions to find the best possible consumer	68
	Old guys don’t drink smoothies	68
	Gatekeeper marketing	69
	Summary: the First Factor – need the product as food	70
	The second factor: accept the ingredient	70
	Find out what the consumer knows	70
	What is this ingredient doing in this product	73
	Summary: accept the ingredient	74
	The third factor: understand the health benefit	74
	Consumers and health claims	76
	Trust in the message	77
	Feel the effect makes it easier to understand the message the message	78
	Summary: understand the health benefit	78
	The fourth factor: trust the brand	78
	The power of brands	78
	Trust the established brand	78
	Trust in a new brand?	80
	Brand focus	80
	Brand differentiation on expertise	82
	Summary: trust the brand	82
	Summary of this chapter	82

Chapter 7	Twenty key case studies	85
	Summary	86
	1. Benecol - cholesterol-lowering spreads; the U.K. and Finnish experiences compared	88
	2. Yakult – a Japanese company launches Europe’s ‘battle of the little bottles	94
	3. Danone Actimel	98
	4. General Mills - whole grain heart health success	102
	5. Tropicana - leveraging the healthiness of orange juice and substituting for milk	106
	6. Lycopene and five-a-day the Heinz way	110
	7. White Wave’s Silk - creating a new category in soy milk	114
	8. Gatorade	118
	9. Red Bull – taking the mainstream market by the horns	120
	10. Emmi Energy Milk, a Swiss success story	124
	11. Novartis’ Aviva – a failed leap into the mainstream	126
	12. Danone Activ U.K. – adding bone health to expand the water market	130
	13. Marks & Spencer &More – own label comes to functional foods	134
	14. Sainsbury’s shows the Way to Five	138
	15. Innocent Drinks	142
	16. Sanitarium’s Up & Go – inventing liquid breakfast	144
	17. New Zealand Dairy Food’s De Winkel – giving an old brand new life	146
	18. Perrier Vittel’s Contrex – leveraging hidden brand values and new ingredients to revitalise an old brand	150
	19. Suntorys’ Dakara Life Partner – near water, a new category in functional drinks 152	152
	20. Adams Bodysmarts – Pfizer’s functional confectionery flop	156

Part III	The Future is I-Nutrition

Chapter 8	A short afterword: Towards individualised nutritional solutions	159
	From ‘we’ to ‘me’ – the future is I-Nutrition	161
Boxes

	What do people do to improve their health (in the U.S. and U.K.) ?	8
	Are healthy-eating messages contradictory?	11
	America’s childhood obesity crisis	11
	Motivations for better eating	14
	IFIC’s consumer study of what makes for effective health messages, June 2000	71
		71
	What foods are intrinsically healthy?	74

	Pricing and distribution	81


Tables
Table 1	A world of hidden nutritional assets	62a
Table 2	Four Factors brand strategy analysis examples	84a
Table 3	Integrated communications strategy	84b

Figures

Figure 3.1	The Hi-Tech Hi-Touch quadrant	21
Figure 3.2	Kelloggs Cornflakes - from Lo-Tech to Hi-Touch	22
Figure 3.3	Mobile phones: Phase 1	23
Figure 3.4	Functional phones	23
Figure 3.5	Mobile phones: Phase 2	24
Figure 3.6	The Hi-Tech experience: Consumers want Hi-Touch	25
Figure 3.7	The Hi-Tech experience: Consumers want Hi-Touch	25
Figure 3.8	Cholesterol-reducing spreads: Phase 1	26
Figure 3.9	Cholesterol-reducing spreads: Phase 2	27
Figure 3.10	Brands for long term differentiation and developmentof new category	27
Figure 3.11	Consumer Pull marketing – chain of values	29
Figure 3.12	Science Push marketing – values chain	30
Figure 3.13	Science Push model = centered around production values	31
Figure 3.14	Consumer Pull model = centered around consumer values	32
Figure 3.15	Functional foods strategy model	35
Figure 3.16	Functional foods marketing strategy	35

Figure 4.1	Functional foods marketing model	38
Figure 4.2	The technology stakeholder	39
Figure 4.3	The lifestyle stakeholder	40
Figure 4.4	The mass market stakeholder	43
Figure 4.5	Develop the market stakeholder by stakeholder	44
Figure 4.6	Decide entry point with functional foods marketing model	45

Figure 6.1	Needmap: examples of situations and functions of milk consumption	66
Figure 6.2	Products from different categories compete for the same meal situation with the same function	67
Figure 6.3	Trendspotting	73
Figure 6.4	It’s brands, not bugs, that make the lasting difference to a product’s performance	79

Figure 8.1	From ‘we’ to ‘me’	160
Figure 8.2	Away from ‘3 meals a day’	161