final project

MILLENNIALS andSPECIALTY FOOD

P H I L L I P R A N L Y

2

SECTION ONE

researchOBJECTIVES

M I L L E N N I A L S A N D S P E C I A L T Y F O O D R E S E A R C H O B J E C T I V E S / 5 M A Y 2 0 1 5

3M I L L E N N I A L S A N D S P E C I A L T Y F O O D R E S E A R C H O B J E C T I V E S / 5 M A Y 2 0 1 5

• specialty food category• pre-packaged food purchasing

preferences of Millennials• packaging preferences of

Millennials• role of image projection in food

purchases for Millennials

4

SECTION TWO

secondaryRESEARCH

M I L L E N N I A L S A N D S P E C I A L T Y F O O D S E C O N D A R Y R E S E A R C H / 5 M A Y 2 0 1 5

5M I L L E N N I A L S A N D S P E C I A L T Y F O O D S E C O N D A R Y R E S E A R C H / 5 M A Y 2 0 1 5

Millennials• born early 1980s to the early 2000s1

• largest generation at 87 million2, 3

• more diverse, 56% are white2

• household income of $60,0003

• roughly half of Older Millennials married and half have children3


• lean left on social issues, but half do not belong to either political party4

• 29% claim no religious affiliation4

• Millennials want more out of life than a corporate title and a big house in the suburbs3

• idealistic, egocentric, and tech savvy, this generation has a desire to live in the moment5


Specialty Foods• foods of premium quality often made

by small manufacturers, feature ethnic flavors, or contain the best available ingredients6

• $100 billion market estimated in 20157

• bought by nearly 60% of those in US in 20148


Food Habits• looking for unique foods with unusual

flavors and textures9

• older generations buy specialty food items for use in everyday cooking, while younger people are buying these items for snacks and on-the-go meals6


• believe they consume healthier, more expensive, more natural/organic, less processed and better tasting foods and brands than their parents9

• but average grade they give the healthfulness of their eating is a C+10

• two reasons - lack of time (need to eat things on the go) and lack of money10


Packaging• nearly three-fourths of Millennials say

they would choose a leading brand of soup packaged in a carton over the identical soup product in a can in a theoretical head-to-head comparison11

• Millennials prefer soup in a carton not only over a can, but also over pouches11


Personal Image• an enduring competitive advantage

develops when the brand connects to the self-concept of their target market12

• with the purchase of a brand a consumer identifies with, she gains increased social approval and expresses to the world how she wants to be viewed12


References1“Millennials.” Wikipedia, The Free Encyclopedia. Wikimedia Foundation, Inc. February 12, 2015. Web. February 4, 2015. http://en.wikipedia.org/wiki/Millennials

2Kurtz, Annalyn and Tal Yellin “Millennial generation is bigger, more diverse than boomers.” CNN Money. n.d. Web. February 7, 2015. <http://money.cnn.com/interactive/economy/diversity-millennials-boomers/>

3Spenner, Patrick. “Inside the Millennial Mind: The Do’s & Don’ts of Marketing to This Powerful Generation.” Forbes. April 16, 2014. Web. February 4, 2015. <http://www.forbes.com/sites/patrickspenner/2014/04/16/inside-the-millennial-mind-the-dos-donts-of-marketing-to-this-powerful-generation-3/>

4Morin, Rich, et al. “Millennials in Adulthood, Detached from Institutions, Networked with Friends.” Pew Research Center. March 7, 2014. Web. February 4, 2015. <http://www.pewsocialtrends.org/2014/03/07/millennials-in-adulthood/>

5Anders, George. “Millennials’ Zesty New Identity: The ‘Burning Man’ Generation.” Forbes. September 17, 2014. Web. February 4, 2015. <http://www.forbes.com/sites/georgeanders/2014/09/17/millennials-zesty-new-identity-the-burning-man-generation/>


6Watrous, Monica. “Specialty Foods Strike Millennials’ Fancy.” Food Business News. September 24, 2014. Web. February 4, 2015. <http://www.foodbusinessnews.net/articles/news_home/Consumer_Trends/2014/09/Specialty_foods_strike_millenn.aspx?ID=%7B489D37FA-9109-49FB-9F95-317714A66992%7D&cck=1>

7Watson, Elaine. “US Specialty Food Prize Tops $88.3bn in 2013: ‘Millennials Are Talking About Specialty Stores in the Same Way That They Talk About Restaurants’.” July 7, 2014. Food Navigator. February 4, 2015. <http://www.foodnavigator-usa.com/Markets/US-specialty-food-prize-tops-88.3bn-in-2013-Millennials-are-talking-about-specialty-stores-in-the-same-way-that-they-talk-about-restaurants>

8“Today’s Specialty Food Consumer 2014.” Specialty Food. n.p. October 20, 2014. Web. February 6, 2015. <https://www.specialtyfood.com/news/article/todays-consumer-14/>

9“Millennials Are the Tastemakers in Food.” Millennial Marketing. n.p. n.d. Web. February 6, 2015.<http://www.millennialmarketing.com/2012/06/millennials-are-literally-the-tastemakers-in-food/>

10Mathew Greenwald & Associates, Inc. “View Toward Nutrition and Healthful Eating Among Millennials.” International Food Information Council Foundation. November 2014. Web. February 7, 2015. < http://www.foodinsight.org/MillennialNutritionViews>

11Predd, Martin. “Millennials Increasingly Judge Food by its Cover: Packaging Opportunity for Manufacturers and Retailers.” Brand Amplitude. June 2012. Web. January 24, 2015. <http://www.tetrapak.com/us/documents/Millennials_and_Food_Packaging.pdf>

12“Self-Brand.” Wikipedia, The Free Encyclopedia. Wikimedia Foundation, Inc. September 30, 1983. Web. February 4, 2015. <http://en.wikipedia.org/wiki/Self-brand>

14

SECTION THREE

thePEOPLE

M I L L E N N I A L S A N D S P E C I A L T Y F O O D T H E P E O P L E / 5 M A Y 2 0 1 5

15M I L L E N N I A L S A N D S P E C I A L T Y F O O D T H E P E O P L E / 5 M A Y 2 0 1 5

GENDERMale . . . . . . . . . . . . . . . . . . . . . . . . . 43 .6%Female . . . . . . . . . . . . . . . . . . . . . . . 56 .4%

AGE18 – 24 . . . . . . . . . . . . . . . . . . . . . . . 6 .6%25 – 34 . . . . . . . . . . . . . . . . . . . . . . . 23 .1%35 – 44 . . . . . . . . . . . . . . . . . . . . . . . 26 .1%45 – 54 . . . . . . . . . . . . . . . . . . . . . . . 24 .4%55 – 64 . . . . . . . . . . . . . . . . . . . . . . . 14%65+ . . . . . . . . . . . . . . . . . . . . . . . . . . 5 .7%

MARITAL STATUSSingle, Living Alone . . . . . . . . . . . . 18 .6%Single, Living With Others . . . . . . 10 .5%Partnered, Not Married . . . . . . . . . 9 .3%Married . . . . . . . . . . . . . . . . . . . . . . . 53 .7%Separated, Widowed, Divorced . . 7 .8%

HOUSEHOLD INCOME<$35,000 . . . . . . . . . . . . . . . . . . . . . 23%$35,000 – $50,000 . . . . . . . . . . . . 17 .1%$50,000 – $75,000 . . . . . . . . . . . . 22%$75,000 – $100,000 . . . . . . . . . . . 18 .1%$100,000 – $125,000 . . . . . . . . . . 8 .7%$125,000 – $150,000 . . . . . . . . . . 5 .8%$150,000+ . . . . . . . . . . . . . . . . . . . . 5 .3%

EDUCATIONSome Highschool . . . . . . . . . . . . . . 1 .2%Highschool . . . . . . . . . . . . . . . . . . . 14 .3%Some College . . . . . . . . . . . . . . . . . 22 .8%Associates Degree . . . . . . . . . . . . . 11 .3%Bachelors Degree . . . . . . . . . . . . . 32 .9%Some Post Graduate . . . . . . . . . . . 3 .7%Masters Degree . . . . . . . . . . . . . . . 10 .1%PhD, Law, Medical Degree . . . . . . 3 .2%Other Post Graduate Degree . . . . .5%

ETHNICITYWhite . . . . . . . . . . . . . . . . . . . . . . . . 81 .2%Black / African American . . . . . . . 4 .8%Asian / Pacific Islander . . . . . . . . . 7 .3%Hispanic / Latin American . . . . . . 5 .3%Mixed Racial . . . . . . . . . . . . . . . . . . 1 .2%Native American / Alaskan Native .2%

CHILDREN IN HOUSEHOLDNone . . . . . . . . . . . . . . . . . . . . . . . . . 60 .4%One . . . . . . . . . . . . . . . . . . . . . . . . . . 16 .5%Two . . . . . . . . . . . . . . . . . . . . . . . . . . 15 .6%Three . . . . . . . . . . . . . . . . . . . . . . . . 6%Four . . . . . . . . . . . . . . . . . . . . . . . . . 1 .3%Five . . . . . . . . . . . . . . . . . . . . . . . . . . .2%

16

SECTION FOUR

theNUMBERS

M I L L E N N I A L S A N D S P E C I A L T Y F O O D T H E N U M B E R S / 5 M A Y 2 0 1 5

17M I L L E N N I A L S A N D S P E C I A L T Y F O O D T H E N U M B E R S / 5 M A Y 2 0 1 5

KeyYounger Millennials . . . . . . YM . . . . . . . . .AOlder Millennials . . . . . . . . .OM . . . . . . . . .BGeneration-X . . . . . . . . . . . GX . . . . . . . . .CBaby Boomers . . . . . . . . . . BB . . . . . . . . .D


Millennials think of themselves as

different

19

42.4%CD

BBN = 151

GXN = 149

OMN = 151

YMN = 150

27.2%

32.2%

36.7%

15.3% 16.6% 18.8% 14.6%

7.3%

5.3%

6.7%

6.7%

8.6%

17.2%12.7%

8.7%

10 9 8


Eating as an AdventureOver a third of Millennials think of themselves as adventurous eaters. Older Millennials are significantly more likely than older generations to think this way.

Q16.5 - Do you consider yourself...? An adventurous eater

Single select - 1 (does not describe me at all) – 10 (totally describes me)

Capital letters - 90% significant

21

34.7%D

40.4%CD

BBN = 151

GXN = 149

OMN = 151

YMN = 150

25.5%

19.8%

AGREESTRONGLY AGREE

38% 36.4% 34.9% 39.1%

7.9%

8.1%

11.3%

15.3%


BooooooooringOne-third of Younger Millennials and two-fifths of Older Millennials get bored with food easily.

Q15.19 - How much do you agree or disagree with the following statements regarding food? I get bored with food easily.

Single select - strongly agree, agree, neither agree no disagree, disagree, strongly disagree.


22

61.4%CD 59.6%

CD

BBN = 151

GXN = 149

OMN = 151

YMN = 150

44.9% 45.7%

AGREESTRONGLY AGREE

42.7% 41.1% 34.2% 36.4%

9.3%10.7%

18.5%18.7%


The One and Only MeMillennials view themselves as different and original. This is reflected in their purchase of interesting versions of common products.

Q19.2 - Thinking about products in general, how much do you agree or disagree with the following statements regarding you, personally? I often try to find a more interesting version of run-of-the-mill products because I enjoy being original.



23

BBN = 151

GXN = 149

OMN = 151

YMN = 150

36%D

43.7%CD

33.5%

20.5%

AGREESTRONGLY AGREE

25.3%

10.7%

29.8%

13.9%

27.5%

6%

18.5%

2%


Seek the UniqueNearly two out of five Millennials seek out food purchases that they see as unique or trendy. This is most common among Older Millennials.

Q15.18 - How much do you agree or disagree with the following statements regarding food? I tend to search for the next unique or trendy item when purchasing groceries.



24

BBN = 92

GXN = 108

OMN = 114

YMN = 119

26.1%C

20.2%C

10.2%

16.3%


Economics101: ScarcityMore than 20% of Millennials buy specialty food that has limited availability.

Q9.2 - Which of the following factors affect your decision to purchase specialty foods? Limited availability

Single select - yes or no for those that purchase specialty food more than once per year


25

52.7%D

62.9%CD

BBN = 151

GXN = 149

OMN = 151

YMN = 150

47%

31.8%

AGREESTRONGLY AGREE

32% 38.4% 30.2% 23.2%

8.6%

16.8%

24.5%

20.7%


First Place!Slightly more than half of Millennials state that they are the first in their social group to try new foods.

Q15.21 - How much do you agree or disagree with the following statements regarding food? In general, I am usually among the first of my family and/or friends to try new foods.



27

32.4%CD

24%BD

BBN = 151

GXN = 149

OMN = 151

YMN = 150

15.2%

20.8%

14% 13.2% 14.1% 7.9%

5.3%

2%

4.7%

2%

9.3%

9.9%

4.7%

5.3%

10 9 8


Pushingthe First DominoA third of Older Millennials and a quarter of Younger Millennials think that they influence the food purchases of others.

Q16.6 - Do you consider yourself...? A food influencer (someone who others look to for recommendations)

Single select - 1 (does not describe me at all) – 10 (totally describes me)


28

26.6%D

21.9%D

BBN = 151

GXN = 149

OMN = 151

YMN = 150

18.1%

13.9%

AGREESTRONGLY AGREE

17.3% 16.6% 14.1% 11.3%

2.6%

4%

5.3%9.3%


Buying Different BrandsRoughly a quarter of Millennials have negative feelings about brands that others frequently buy.

Q19.4 - Thinking about products in general, how much do you agree or disagree with the following statements regarding you, personally? As a rule, I dislike products or brands that are customarily bought by everyone.



29

BBN = 151

GXN = 149

OMN = 151

YMN = 150

32.2%

25.2%

46%CD

45.7%CD


MillennialsLike FoodNearly half of Millennials self-identify as foodies.

Q18 - Foodie: A gourmet, or a person who has an ardent or refined interest in food and alcoholic beverages. A foodie seeks new food experiences as a hobby rather than simply eating out of convenience or hunger. Having read this definition, do you consider yourself a foodie?

Single select - yes or no


31

42%CD

43.7%CD

BBN = 151

GXN = 149

OMN = 151

YMN = 150

29.5%

23.2%

AGREESTRONGLY AGREE

30.7% 27.8% 23.5% 19.2%

4%

6%

15.9%11.3%


Pushing the EnvelopeMillennials like challenging normally accepted tastes at nearly twice the rate as Baby Boomers.

Q19.5 - Thinking about products in general, how much do you agree or disagree with the following statements regarding you, personally. I enjoy challenging the prevailing taste of people I know by buying something they would not seem to accept.



32

25.4%CD 24.5%

CD

BBN = 151

GXN = 149

OMN = 151

YMN = 150

16.1%

9.3%

AGREESTRONGLY AGREE

14.7% 17.9% 10.1% 6%

39.3%

6%

6.6%

10.7%


So Not Cool AnymoreA quarter of Millennials use products less frequently once it becomes popular among their social circle.

Q19.3 - Thinking about products in general, how much do you agree or disagree with the following statements regarding you, personally? When a product I own becomes popular among my peers, I begin to use it less.




howdifferent?

34

JARS CANS POUCHES CARTONS,BOXESBAGS TRAYS BOTTLES NONE OTHER

BBN = 151

GXN = 149

OMN = 151

YMN = 150

14.7% 10% 14.3%

14.5% 7.8% 14.8%

13.5% 7% 12.7%

15.1% 6.8% 11.3%


Not So DifferentThe proportion of different packaging types purchased by each generation is more similar than expected.

Q1 - What percentage of your typical grocery shopping haul (all the food grocery items you bring home) would you say comes in…?

Constant Sum - all responses add up to 100%

35

BBN = 151

GXN = 149

OMN = 151

YMN = 150

13.5%14.5%14.7% 15.1%


Can it be True?There is no significant difference between the proportion of canned food purchases between the generations.

Q1.2 - What percentage of your typical grocery shopping haul (all the food grocery items you bring home) would you say comes in cans?


36

BBN = 151

GXN = 149

OMN = 151

YMN = 150

7%

7.8%

6.8%

10%BCD


The Young Prefer PouchesYounger Millennials buy their food in pouches more often than any other generation.

Q1.3 - What percentage of your typical grocery shopping haul (all the food grocery items you bring home) would you say comes in resealable pouches?


37

BBN = 151

GXN = 149

OMN = 151

YMN = 150

12.7%

11.3%

14.8%D14.3%

D


And Cartons Millennials buy their food in cartons and boxes more frequently than Baby Boomers.

Q1.5 - What percentage of your typical grocery shopping haul (all the food grocery items you bring home) would you say comes in cartons/boxes?


38

BBN = 151

GXN = 149

OMN = 151

YMN = 150

50.3%52.3%52.7%

49%


Having Dinner Home AloneMillennials are just as likely to eat canned food on their own for dinner as other generations.

Q6.1.1 - Thinking about the following types of foods, please share which types of food you would likely bring or prepare (in a dish or alone) for each occasion. Canned food - Dinner at home for yourself


40

BBN = 151

GXN = 149

OMN = 151

YMN = 150

24.2%

19.9%

34%CD

41.1%CD


A Quick Canned SnackMillennials do not shy away from canned food for a quick snack, particularly older Millennials. They are twice as likely as Baby Boomers.

Q6.3.1 - Thinking about the following types of foods, please share which types of food you would likely bring or prepare (in a dish or alone) for each occasion. Canned food - A quick snack



41

72%C

BBN = 151

GXN = 149

OMN = 151

YMN = 150

61.8%

67.6% 66.9%

AGREESTRONGLY AGREE

54% 51% 49.7% 50.3%

16.6%12.1%16.6%18%


Nothing Like Mom’s CookingAll generations like eating the food they grew up eating, particularly Younger Millennials.

Q19.7 - Thinking about products in general, how much do you agree or disagree with the following statements regarding you, personally? I like to eat the foods that I grew up with.



42

53.3%C

BBN = 151

GXN = 149

OMN = 151

YMN = 150

43%

47.7% 47%

AGREESTRONGLY AGREE

38% 36.4% 34.9% 39.1%

7.9%

8.1%11.3%15.3%


Half Like What They KnowRoughly half of all generations would rather continue to buy foods they typically buy. Younger Millennials appear to do this at the hightest rate.

Q15.20 - How much do you agree or disagree with the following statements regarding food? I would rather stick with a food item I usually buy than try something I am unsure of.




other

key findings

44

BBN = 151

GXN = 149

OMN = 151

YMN = 150

51.4%BCD 48.3%

CD

38.2%

29.8%

AGREESTRONGLY AGREE

38.7% 31.1% 31.5% 25.2%

4.6%

6.7%17.2%

12.7%


Blue LightSpecialOne in two Millennials purchase canned foods over fresh foods because of their low price.

Q15.6 - How much do you agree or disagree with the following statements regarding food? I purchase canned foods because they are cheaper than fresh foods.



45

BBN = 151

GXN = 149

OMN = 151

YMN = 150

32.4%

AGREESTRONGLY AGREE

25.3% 29.8% 35.6% 29.1%

3.3%

8.1%

14.6%

22%

47.3%D 44.4%

D43.7%

D


And Yet Organic Food is ValuedMany Millennials are clearly concerned with the price of food, yet more than two-fifths still value organic products.

Q15.10 - How much do you agree or disagree with the following statements regarding food? I don’t mind paying a bit more for organic products.



47

BBN = 151

GXN = 149

OMN = 151

YMN = 150

73.9%76.8%

80.6%

73.5%

AGREESTRONGLY AGREE

43.3% 48.3% 43% 56.3%

17.2%

30.9%28.5%

37.3%


We Want Cheaper Expensive FoodRoughly three-quarters of poeple want cheaper specialty foods and would consider buying them more often at lower prices.

Q15.7 - How much do you agree or disagree with the following statements regarding food? If specialty foods were sold at a lower price, I would consider buying them more often.


48

51.3%CD 48.3%

CD

BBN = 151

GXN = 149

OMN = 151

YMN = 150

37.6%

27.8%

AGREESTRONGLY AGREE

42% 33.1% 29.5% 22.5%

5.3%

8.1%15.2%

9.3%


Image is EverythingRoughly 50% of Millennials pride themselves on having an eye for interesting products that make them distinct.

Q19.1 - Thinking about products in general, how much do you agree or disagree with the following statements regarding you, personally? Having an eye for products that are interesting and unusual assists me in establishing a distinctive image.



49

SECTION FIVE

theWORDS

M I L L E N N I A L S A N D S P E C I A L T Y F O O D T H E W O R D S / 5 M A Y 2 0 1 5

“I like good food made with quality ingredients so I always

buy specialty foods when possible. Also, I prefer local or small manufacturers

because they use better quality ingredients and less preservatives.”

50M I L L E N N I A L S A N D S P E C I A L T Y F O O D T H E W O R D S / 5 M A Y 2 0 1 5

Specialty Food BenefitsCommon words used in describing why people buy specialty foods include taste, quality, better, different, unique, and special.

Q8 - Why do you buy specialty foods? / Open-ended

51

INGREDIENTSLOCALHEALTHYSPECIALUNIQUEDIFFERENTBETTERQUALITYTASTE

86

73 70

4235 32

20 19 17

M I L L E N N I A L S A N D S P E C I A L T Y F O O D T H E W O R D S / 5 M A Y 2 0 1 5

Specialty Food BenefitsWord count of most frequently used words in open-ended question.

52

SECTION SIX

theTAKEAWAY

M I L L E N N I A L S A N D S P E C I A L T Y F O O D T H E T A K E A W A Y / 5 M A Y 2 0 1 5

53M I L L E N N I A L S A N D S P E C I A L T Y F O O D T H E T A K E A W A Y / 5 M A Y 2 0 1 5

Millennials Want Foods:• that are exciting, trendy, and unique• that others aren’t buying yet and are of

limited availability• they grew up with• they’re familiar with• that are specialty, but cheaper• that build a distinctive personal image


• that are familiar and comfortable, but have a new distinctive twist

Cans• pouches and cartons are essentially the

new twist on cans• these packages are attractive to

Millennials, but that doesn’t mean cans can’t work if given their own twist


Doritos Roulette• targeting Younger

Millennials• regular nacho cheese

flavored• one in every six chips is

super spicy• limited-time offer, 12

weeks per year• use a new twist each

year


Seasonal Beers• only available during

limited times each year• interesting and unusual

flavors• often produced when seasonal fresh

ingredients are available


Packaging• Peddy Mergui’s “Wheat is

Wheat is Wheat”• packaging design can provide a

distinctive character and mood

final project

Documents

Transcript of final project