Marktonderzoek in rechte lijn deel 2 case_light mayonnaise

GfK Consumer TrackingGfK/Campbell Foods – Light Mayonnaise Case Stefan Heremans/Jeroen De Wever 25th of June 2010

Case Study Light Mayonnaise

Marktonderzoek in rechte lijn uitg. De Boeck

Marc De Laet

Pol Toye

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GfK Consumer Tracking

GfK/Campbell Foods – Light Mayonnaise Case Stefan Heremans/Jeroen De Wever 25th of June 2010

Product Range D&L End 2008

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Campbell FoodsProduct Range Mayonnaise Devos-Lemmens2008

Product range Devos-Lemmens mayonnaise:

- Regular mayonnaise

- Regular lemon mayonnaise

- Light mayonnaise

- Salad dressing

Regular MayonnaiseRegular Mayonnaise Light MayonnaiseLight Mayonnaise Salad DressingSalad DressingRegular Lemon MayonnaiseRegular Lemon Mayonnaise

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Market SituationEnd 2008

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Kraft light mayonnaiseConsumer Insight measuresEvolution

MAT 12/07 MAT 12/08Volume (Tons) 525.988 196.994Penetration 6.6 3.2Volume per buyer 1.751 1.333Occasions per buyer 2.7 2.0Volume per occasion 0.651 0.656

• Kraft light mayonnaise was removed at several retailers during the year 2008. The last retailer to

delist Kraft light mayonnaise was Colruyt and by consequence the volume of Kraft Light mayonnaise

completely collapsed in the last two months of 2008.

• Because other retailers delisted earlier, comparing the year 2008 sales of Kraft light mayonnaise with

the year 2007 sales shows a steep decrease. The goal of Campbell Foods is to know where this

volume went to. It seems that other players in the light segment did not compensate for the loss

because the entire segment of light mayonnaise showed a decrease. Could this volume be going to

regular mayonnaise or salad dressing?

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Kraft light mayonnaiseGain & Loss analysis – Split competitive & non-competitive lossYear 2008 compared to year 2007 (constant sample)

• The loss of Kraft light mayonnaise is regarded within the market of regular and light mayonnaise +

salad dressing. This to make sure that eventual volume flows towards regular mayonnaise and salad

dressing are taken into account.

• We can see that Kraft light mayonnaise looses 66% of its volume compared to last year. 17.6% of the

volume is lost because the consumer of Kraft light mayonnaise consume less of the total category

(regular and light mayonnaise + salad dressing)

• 48.8% of the volume is lost towards other references within this total market, so 73.5 of the lost

volume of Kraft light mayonnaise went to competition, 26.6 % of the lost volume went out of the

market.

In order to find out where the volume of the delisted Kraft light mayonnaise went, a gain & loss analysis

was performed. Hereby we take a look at the volume before and after delisting, the importance of

underlying segments/products and what volume has left the segment.

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Kraft light mayonnaiseGain & Loss analysis – Split non-competitive lossYear 2008 compared to year 2007 (constant sample)

The volume leaving the market was mainly caused by buyers consuming less of the market (but not entirely leaving the category).

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Kraft light mayonnaiseGain & Loss analysis - Split competitive loss Year 2008 compared to year 2007 (constant sample)

• Within the competitive loss we can

see that D&L Light mayonnaise takes

8.4% of the volume of Kraft light

mayonnaise. In total all light

mayonnaise references takes 16.7%

(sum of all net shifts to/from light

mayonnaise references) of the

volume.

• However the regular mayonnaises

take 26.6% of the volume and the

salad dressings take 5.5% of the

volume. So only part of the lost

volume of Kraft light mayonnaise

stays in the segment of light

mayonnaise, main part goes to

regular.

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If the same table is sorted according to net

shift, we can see that 2 references of D&L

are in the top 3 products gaining from the

lost volume of Kraft light mayonnaise.

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• If the same table is sorted according

to the interaction index, Kraft regular

mayonnaise is nr. 1, and some PL

products score better.

• A higher interaction index indicates

that the loss is higher as expected

according to fair share.

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Taking a look at the various sub segments profiting from the

loss of Kraft light mayonnaise in the analyzed mayonnaise

market shows a much stronger interaction with regular lemon

mayonnaise compared to other regular mayonnaise.

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Kraft light mayonnaise lemonConsumer Insight measuresEvolution

MAT 12/07 MAT 12/08Volume (Tons) 267.108 122.464Penetration 4 1.9Volume per buyer 1.466 1.425Occasions per buyer 2.2 2.0Volume per occasion 0.665 0.709

A fairly particular reference was that of Kraft light mayonnaise lemon. A detailed look shows the same

evolution for Kraft light mayonnaise lemon as for the other references. The question in this case is

whether we can see an even stronger loss towards mayonnaise lemon than already was the case for

the total of Kraft light mayonnaise.

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Kraft light mayonnaise lemonGain & Loss analysis – Split competitive & non-competitive lossYear 2008 compared to year 2007 (constant sample)

• The loss of Kraft light mayonnaise lemon is again regarded within the market of regular and

light mayonnaise + salad dressing. This to make sure that eventual volume flows towards

regular mayonnaise and salad dressing are taken into account.

• We can see that Kraft light mayonnaise lemon loses 62% of its volume compared to last year.

18.1% of the volume is lost because the consumer of Kraft light mayonnaise lemon consumed

less of the total category (regular and light mayonnaise + salad dressing)

• 44.2% of the volume is lost towards other references within this total market, so 70.9% of the

lost volume of Kraft light mayonnaise lemon went to competition, 29.1% of the lost volume

went out of the market.

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Kraft light mayonnaise lemonGain & Loss analysis – Split non-competitive lossYear 2008 compared to year 2007 (constant sample)

The volume that went out of the market was mainly caused by buyers

consuming less of the market.

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Kraft light mayonnaise lemon and totalGain & Loss analysis - Split competitive loss lemon Year 2008 compared to year 2007 (constant sample)

• We can see that the loss to

regular mayonnaise lemon is

14.3% with an index of 110.1

compared to a loss of 7.8 to

regular mayonnaise other with an

index of 43.4.

• This difference is clearly more

pronounced for Kraft light

mayonnaise lemon than for the

total of Kraft Light mayonnaise.

Kraft light mayonnaise lemonKraft light mayonnaise lemon

Kraft light mayonnaise totalKraft light mayonnaise total

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Conclusion

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Kraft light mayonnaiseGain & Loss analysis - Conclusion Year 2008 compared to year 2007 (constant sample)

• Due to the delisting at several retailers, Kraft light mayonnaise strongly lost volume in the

market. Only ¼ of the loss can be explained by lower consumption of the market (regular and

light mayonnaise + salad dressing), so the main part of the loss goes to other references within

the market.

• However we can see that the light references within the market only take 25% of the lost

volume, where D&L is the biggest winner, but mainly the regular mayonnaises take 40% of the

lost volume. Here D&L is in second position.

• In the loss of regular mayonnaise, lemon plays an important role. This is even more pronounced

if we only look at Kraft light mayonnaise lemon. So we can state that besides a light

mayonnaise these buyers are looking for a lemon touch.

So, what’s next?

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Product Range D&L June 2009

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Campbell FoodsProduct Range Mayonnaise Devos-LemmensJune 2009

A swift reaction of Campbell Foods following the

data presented in this analysis, allowed for them

to launch a new variant of light mayonnaise in

order to adequately appeal to those buyers

previously buying the Kraft light (lemon)

mayonnaise. Barely 4 months after they received

this input, D&L light lemon mayonnaise could

already be found at various retailers. If not for

their local flexibility, they would not have been

able to react this quickly to a changing market

and profit from an unfulfilled need for a light

lemon mayonnaise variant.

Regular MayonnaiseRegular Mayonnaise

Light MayonnaiseLight Mayonnaise

Salad DressingSalad DressingRegular Lemon MayonnaiseRegular Lemon Mayonnaise

Light Lemon MayonnaiseLight Lemon Mayonnaise

Marktonderzoek in rechte lijn deel 2 case_light mayonnaise

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