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A case study in adding value to Organics

A case study in adding value to Organics. Oct 2003. Content. Glenisk Company Introduction Modern Consumer Trends Brand Positioning / Personality Irish Fresh Dairy Market Consumer targeting The future…. Company Introduction.

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A case study in adding value to Organics

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  1. A case study in adding value to Organics Oct 2003

  2. Content • Glenisk Company Introduction • Modern Consumer Trends • Brand Positioning / Personality • Irish Fresh Dairy Market • Consumer targeting • The future….

  3. Company Introduction • Glenisk is a family run business which was founded by its owners, the Cleary’s in 1987: • 1987: Glenisk was created as an off-shoot to Tullamore Dairies as part of the Cleary family business. • 1994: Glenisk started sourcing Irish Organic Milk with which we produced Ireland ’s first Organic Yogurt ! • Glenisk now produce a wide range of high quality Organic Yogurts, Dairy Drinks, & other Milk products. • We are situated in the heartland of County Offaly, Ireland, where there has always been a strong tradition in the production of unique high quality food products. • All Glenisk products are made using with only the best 100% Organic & Natural ingredients sourced locally and then carefully chosen & prepared in a traditional way.

  4. Company Introduction • No artificial additives OR preservatives are used in any of our products. • This results in truly delicious natural flavours, in all our fresh organic dairy products. • All of our production practices are governed by the internationally recognised HACCP quality control process plan, which we have in operation since 1998. • Glenisk now has an annual turnover of over 7.0m Euro, and employs 30 full time production / management staff. • Glenisk is now Ireland ’s No.1Organic brand - with significant inroads also being made to the U.K. market. • Glenisk has experienced annual growth rates of +40% year on year for the last 4 years!. • Glenisk is also Ireland ’s fastest growing Organic dairy brand!

  5. Company Introduction Glenisk, Killeigh, Co.Offaly, Ireland - No.1 Organic yogurt brand in Ireland! - 2002Sales of €10.0M @ RSP! - Brand growth of +40% year on year! - 3.5m+ litres organic milk per year! - 4,000+ tons of Yogurt per year! • 10% share of the totalIrish yogourt mkt. • Turnover by product type • 90% ORGANIC • 10% CONVENTIONAL (Goat Prodts)

  6. . “Our mission…...” “Our mission is to create delicious, Organic, Irish dairy products, from 100% Organic natural ingredients, avoiding the use of any obscure, flavorings, additives and preservatives. The consistent high quality of our products is paramount!” - Vincent Cleary.

  7. Fresh Dairy Market Oct 2003

  8. Irish Fresh Dairy Category overview • The Fresh Dairy market in Ireland has an estimated worth of more than €126 million, and is growing at +24% year on year. • The market has evolved rapidly from a traditional homogenous one to a contemporary segmented one. • The Natural health sector (especially probiotics) is now the fastest growing sector in the category with +59% annual growth. • The “Natural health” sector, now accounts for 28% of total category sales with products such as 100% natural yogurt, Probiotic yogurts, Organic, and probiotic yogurt drinks.

  9. Market size = €126 Million in 2002 Total market growth of +24% Total FRESH DAIRY market segments ( €7m) ( €37m) ( €10m) (+59% growth) ( €13m) ( €16m) ( €26m) ( €19m) The Natural Health sector is the fastest growing sector at +59% growth!

  10. Modern Consumer trends Oct 2003

  11. HEALTH Drivers and their effects Source: Datamonitor 2003

  12. Top FIVE market Drivers….. • There are FIVE key MEGA-TRENDS which are driving food category growth in the last five years: • Health– A Well-being trend through the creation of “FOOD PLUS” Products (something added) & “FOOD MINUS” products (I.e. No-Fat, No Sugar ), Also more Natural & “Pure” type products. • Vegetarian / Organic • Convenience / Snacking- More convenience and snacking type products - “No time to sit down & eat”. Smaller snacking portion sizes. • Indulgence/Pleasure– Premium products, New more exotic flavors, New ethnic Varieties & a rise in pure indulgence type products. • Product Presentation– Improved packaging. ( Resealability, Recyclable, Stand-up packs , Improved print Graphics, Better shelf presence, New Pack sizes & shapes....etc )

  13. Brand Positioning Oct 2003

  14. Glenisk brand positioning... POSITIONING CONSUMER TREND • 100% ORGANIC & NATURAL- NO Artificial Ingredients.(ORGANIC) `NO Preservatives NO Additives NOChemicals NO Flavorings NO Stabilisers NO GM Free • NATURALLY HEALTHY: Improved levels of naturally-occurring nutrients. Vitamins & calcium. (Great For Kids) (HEALTHY) • HANDMADE PRODUCTS: TraditionalCraftsmanshipProduction methods, Original recipes, Guaranteed quality. (PREMIUM) • 100% IRISH- Made in the heart of IRELAND. (IRISH) • ETHICAL: Commited toenvironmental management, recycling & improved animal welfare. (Reyclcled packaging?) (GREEN) • CONVENIENT: “Snack to go” - Product portability, i.e. Drinks. • DELICIOUS: Indulgent treat products. (Premium/Pleasure)

  15. Brand Essence Glenisk Brand Essence: The core Truth driving the brand. • 100% ORGANIC, Natural & Pure! • High Natural Taste factor! • Handmade / Irish products • Highest Quality products available Personality of the brand: Brand character traits . • Traditional • Rural / Irish • -Honest . • Ethical & Green & Healthy • 100% Natural, Wholesome & SAFE! • Honest, Reliable, & FAIR • Very highest premium Quality Values of the brand: Emotional values end User derives from brand. . . Benefits of the brand: Functional benefits which the end user derives from the products. • -Tastes naturally great! • Premium taste & mouthfeel! • Versatile in it’s product range • Convenient in its presentation • Environmentally friendly! . Attributes of brand: Physical properties associated With product/brand. • ORGANIC GREEN Imagery • -Indulgent taste & texture • Innovative eco friendly Packaging • Quality product feeling • Naturally more beneficial

  16. A brand with Retailer Appeal! • A Growth Category- Total Fresh Dairy market up +24% • Good Product positioning - 100% Organic, 100% Irish, 100% Natural, Fresh, Highest Quality products! • Unique packaging - Vibrant packaging design with clear brand recognition on shelf! • Strong, ongoing brand Marketing support. • High Margin products - with normal RSP’s!

  17. Consumer Targeting Oct 2003

  18. Glenisk Target Consumers • 1. ABC1 Mothers with children, 35-44. • 2. Young Working Females, 25-34. • 3. ‘Foodies’ (food connoisseurs) • 4. Environmentalists

  19. 80% of our retail sales come from the high population density areas: • Dublin / Leinster • Cork • Limerick • Galway CSO Census 2002 ROI = 3,917,336 +8% in six years. NI = 1,685,267 TOTAL = 5,602,603

  20. Marketing Organic Products….. • Organic products need to clearly define theirProduct Benefits– Organic foods must be marketed with a clearer definition of the product benefits if the organic trend is to begin to attract “Non-core” Organic consumers…………... • Guarantee the absence of artificial additives, including remnants from production methods; No Chemicals, No Pesticides, GMO Free, No Irradiated ingredients, No Antioxidants. • Offer the perception of improved levels of naturally occurring nutrients, A naturally BETTER TASTE, which would otherwise have been lost during mechanical mass production processes. • Meet consumer concerns with regard to environmental management and improved animal welfare. • A Safety guarantee for children’s food - A powerful new way to address parental concerns regarding the health of their children. • A guarantee of premium quality – Craftsmanship, quality and premium indulgence are becoming an influential way of marketing organics to new, non-core consumers. Offers psychological associations of honest craftsmanship, as opposed to mechanical mass production.

  21. The Future Oct 2003

  22. NPD - Organic Consumer Targeting Product Product Product Product Source: Datamonitor 2002

  23. Clear Organic Brand positioning will be vital NOW FUTURE -The key to success in the organic sector is to focus first and foremost on identifying and targeting specific consumer groups that feel strongly enough about your specific Product benefit to pay a little extra for it.-Manufacturers need to address the issue of clear organic brand positioning!-At present, all organic products are positioned very broadly as ‘natural and organic’ with few making explicit references to the specific Product benefits inherent to the brand!For Example: No artificial additives or chemicals, Improved levels of naturally-occurring nutrients, GM Free, Improved animal welfare.free of artificial growth hormones, pesticide residues or genetic modifications

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