Emulsar group-2-final-presentation-04282015

Group 2:
Adam Ptacek
Camille Guezennec
Ji Yun Kim
Felipe Rebolledo
Pierre-Adrien Roy
Prashanth Ramachandran
Ségolène Daval-Frérot
Zainab Akano

Agenda
 Reminder of the 1st
recommendations
 Our recommendations
 Option n°1: Sandwich biscuits
 Market overview
 Proposition of strategy
 Option n°2: Peanut Butter
 Market overview
 Proposition of strategy
 Conclusion

Last time we have followed a
structured approach
to identify the best oppotunity:
snacking in the USA
Snacking

Our recommendation: make a partnership
with a big player,
either on the sandwich biscuit or the peanut
butter market
Time to go!Time to go!
Make a partnership with a big
player
player
USA / Mass MarketUSA / Mass Market
 Biggest market shares in 2014
 Less fat, more calcium, same taste
 An Oreo in line with Mondelez willness to do
a « mindful snacking »
 A possibility to extend the partnership to
other brands of the group
 Keep only the « good fat » and a natural taste
 An improvement of the ratio good/bad fat
 Taking advantage of the consumer increasing
awareness regarding natural and healthy
products

Snacking has evolved from a between-meals
indulgence
into a full-on lifestyle for lots of time-strapped US
consumers
Percentage of consumers who said they
ate these snacks in the las 30 days
"As the lines continue to blur between meals
and snacks, marketers will have to answer
with offerings that pack a flavor and nutrition
punch in a convenient, portable pack."
>50%
91%
Eat at least 2 snacks per day
Eat at least 1 snack per day
Source: Audrey Iachella, de Brands Within Reach
Source: Nielsen Global Snacking Survey,Q1 2014
Source: http://www.foodnavigator-usa.com/Trends/Healthy-snacking

Sweet biscuits are dynamic, and more specifically
sandwich biscuits,
which remain the hugest and most dynamic sub-segment
(+ 20% in value). +1,2%
growth for Sweet
Biscuits in USA
between 2013
and2014

Few big manufacturers own the main national
brands
Oreo is the leader with an increasing market share
Other
1
2
3
4
5
10.0%
+1.4pt
9.9%-0.5pt
8.7%
+0.4pt
7.4%
+0.2pt
63.9%
*
**
* Value market share 2014
** Evolution of value market share
2014 vs 2011 (pts)
Source: Euromonitor

TASTE HEALTHSATIETY CONVENIENCE
On the biscuit market, consumers pay more & more attention
to health concerns, which could slow biscuits’ boom
75%
Living at a quicker pace, consumers are increasingly looking for health and wellness
50%"I can manage many heath
issues
through proper nutrition"
"It can be a challenge
to eat healthy"
ASPIRATION BEHAVIOR
NO SPECIFIC HEALTH
ISSUE ADRESSED
WORSE TASTEHIGHER PRICE
3 MAIN BARRIERS
A REAL OPPORTUNITY BY BRIDGING THE GAP
N
E
E
D
S
A sustained
energy benefit
New variety of protein bar
with good taste and texture
Sources: Nielsen, "Health and wellness in America", 08-14-2014
Nielsen, "Breakfast: still the most important meal of the day", 08-19-2014

In addition, few players intervene on the functional
biscuits
market, so Emulsar should seize the opportunity
 Key functional elements added on
functional biscuits: calcium,
omega 3, vitamins & minerals
 Companies may be discouraged
by regulation: in 2014, the
Supreme Court ruled that
companies can sue each
other over false or
misleading health
claims
Only 1,2%
of the functional
food in USA
in 2014
+64%
of growth
between 2009
and 2014

Advantages Drawbacks
B2B
with a main player
 Easier to enter this
competitive market
 Possibility to communicate on
the new benefits of the
product
 Difficulty to negotiate
B2B
with a private label
 Easier to enter this
competitive market
 Difficulty to negotiate
 Few budget to communicate
on the new benefits of the
products
 PL = only 2% of the market
B2C
 More autonomy in the
decisions
 Better margins
 More costs
 3 big players and a very
competitive environment
 Insufficient knowledge about
the American market
To enter the market, Emulsar should follow a B2B approach
and create a partnership with a key player

We suggest you to go on Mondelēz International’s
flagship
on the sandwich biscuit market: Oreo
 A long history in the USA: More than 100 years of existence
 Distributed worldwide
 > 32 flavours: some created for special events
 9 different shapes: Double Stuf Oreo,
 Different formats: Familiy Size, Normal, Single…
 Price: $ 2,98 for the 14,3Oz packet (avg price for PL $ 2,21)
 A high calorie cookie (160 kcal for 3 cookies for the Original)
10.0%
of market
shares on biscuit
market
51.0%
of MS on
sandwich biscuit
market

The leadership of Oreo is clearly visible on the
shelves

Oreo must satisfy at the same times the
expectations
of both children (taste) and parents (health)
Parents
Middle class, suburban, 2 or 3 children
Children
Ages 4 to 12 years old
 Satisfy ungry
 High caloric value
 Delicious taste
 Crème fillingn lots of flavors

 Fun
Twist, lick and dip
 Imitation need

 Health
 Make children drink milk
 No too much fat/calories
 Convenience
 Remain fresh all the day
Source: Nabisco Oreo
Analysis , Claire Rieder,
University of Minnesota
Twin Cities

HEALTH
Healthy benefit of milk, but…
High calories and fat content (160 kcal, 7 grams of fat)
Risk that one day parents stop letting their children consume unhealthy treats
As a result, development of better choice products: 100-calorie Double Stuf Oreo, Oreo Carbwell
Less fat, mut more calories since Mondelez makes biscuits sweeter to save the taste
High fat and calories content doesn’t appeal to the
rising
health conscious buyers. Oreo must become healthier
without making any concessions to product taste.
TASTE
 Superior taste to other brands
 Consumers prefer the vanilla filling over the chocolate cookie covering
 Double Stuf Oreo invented since consumers wanted more of the delicious crème filling
 Changing the traditionnal recipe is always risky (cf. the disaster of new coke)
STRONG ADDED VALUE OF EMULSAR Huge work to
conciliate them
but currently no
satisfying solution

xx
Currently researchers are facing difficulties
with
making Oreo healthier without sacrifying the
taste Need for a fat which is solid at room temperature to get the right texture of
the white center
 The filling has to be firm yet soft, sweet but not grainy, and Oreo fans
should remain be able to twist open the cookie as they always have.
 A difficult task since the basic Oreo recipe (nearly 60 percent sugar and
fat) can't change without altering the taste so many consumers love.
=> The Mondelez researchers had nailed the taste, but the secret oils in the new filling made
the middle seep out during a shipping test.
With Emulsar, Mondelez will have the solution
x

Our strategy is based on 4P’s pilars
Work on the crème filling of the Oreo
Double Stuf’s original flavour:
 It’s the crème filling which makes Oreo
delicious
 Emulsion can be used for the filling
 More crème filling = more impact
Benefits
 At least - 35% fat (3,5g => 2,3g = Oreo
Original)
 +100% protein (1g => 2g)
 +100mg calcium
Then, possibility to go on other brands:
 Belvita: in compliance with consumers
needs, launch in 2012 and already a
success
 Newton: with real fruits, high in fiber,
 Ritz: proposes also fillings with salty flavors
 Nutter Butter: with peanut butter
 3,12$
 Special event pricing (Halloween,
Thanksgiving, Christmas, Easter)
 Retail store (93,21% of the sales in
2014)
 Mention the benefits on the packaging
 Advertising on TV and online
 Product sampling – consumers to learn
about the nutritional aspect of the biscuit
 Promotional campaign to target schools
and educational institutions
PLACE
PRICEPRODUCT
PROMOTION

Emulsar has strong arguments to convince Mondelēz
International to make a partnership on Oreo
Several brands in the Biscuits category that can be impacted in the following years:
A shared willing to create healthy products:
 Grow our better choice products to 25% of our revenue
 Reduce sodium and saturated fat by 10%
 Increase whole grains by 25%
 Expand our portion control options (200 calories or less) by 25%
 Place calorie labeling front of pack on all relevant products globally by
the end of 2016
A way to win market shares over:
15%
market shares
for Oreo in
2016

Peanut butter, a special product in the
heart
of American people
« In an era of affluence accompanied by increased concerns about the
relation between nutrition and health, the reduced fat peanut spreads
have found a steady market and the standard has remained intact »
© US Food and Drug Administration
“ Peanut butter accounts for approximately half of the U.S. edible use
of peanuts — accounting for $850 million in retail sales annually”
“ The Peanut Butter Production industry has exhibited impressive growth
in the five years to 2013 as revenue increased 7.9% per year on average to
$1.5 billion ”IBISWorld, Industrial Analysis Company

Regarding consumers, peanuts and peanut
butter are
the most popular nut choice among American
people. According to the National
Peanut Board :
peanut butter is consumed in
90% of U.S. households
 the average American
consumes more than six
pounds of peanuts and peanut
butter each year.

Diversified and dispersed customer
base
Strong position of grocery shops
Many alternatives available on the
market
Very competitive environment
No switching costs
Pressure from alternatives to peanut
based spreads
Huge growth of chocolate spreads
which accounts to 80% of the total
growth of spreads for the year 2014
No switching costs for customers
Limited place in the grocery store shelfs
Strong market leader JM Smucker Co
Successful independent niche brands like
Justin’s and Sunbutter
Successful new entrant The Hershey Co
Customer
preference
Supply and
Demand
Substitute
market
Existing
Competition
An industry with one market leader but
many others
actors, fighting to reach diversified
customers

Peanut butter 4 major competitors,
representing 44% of spreads market in
2014
Others
1
2
3
4
5
19.94%
9.79%
9.36%
4.79%
28.08%
* Value market share 2014
Source: Euromonitor

Peanut butter a product regulated by the
FDA

Peanut butter a product that raises debates :
Good or bad for health
A product rich in good components : 2
tablespoons = 2 grams of dietary fiber, 6
grams of total carbohydrates, 8 grams of
protein, vitamin E, vitamin B-6 and
magnesium…
But also in fat : 2 tablespoons = 16 grams or
fat
However is this fat really bad for health ?

80% of this fat consists in healthy
unsaturated fatGood fat = 80%
 Unsaturated fats (poly and monounsaturated
fats) can benefit the health by decreasing risk
for certain disease (heart disease), lower bad
cholesterol and improve good one.
 Saturated and trans fats have a negative
effect on heart health. Saturated fats increase
levels of bad cholesterol without affecting
good cholesterol.
Bad fat = 20%
less than 0.001g of Trans Fats

 ”standard peanut
butter” Most sold by
national brands. It’s
creamy and thick, even
at room temperature,
and usually has salt
and sugar in addition
to peanuts in the recipe.
Some brands also
contain a small
amount of stabilizer
(partially hydrogenated
vegetable oil) to keep
the oil from separating.
 Appeared to meet
America's increasing
hyper-awareness of
trans fats. Though most
brands have recently
eliminated trans fats.
Main difference : it
rarely has extra
ingredients added.
Only peanuts.
Problem : it separates
easily into the oil and
peanuts.
 A lower level of fat but
some added ingredients
that make the level of
calories remain the
same
(focus in new slide)
On the market, a large range of PB
products,
sorted out in 3 main categories
Regular PB : Natural PB : Reduced fat PB :

Reduced fat PB products present on the
market
until now : 3 main problems
Less favorable nutritional profile :
No fewer calories and some good fats less
Added carbs, sugar and salt :
Fat is reaplaced by corn syrup solids, sugar, molasses
 higher level of sugar and total of carbs
An altered taste : Less peanut flavor.
Reduced fat spread hover around 60 peanuts instead of 90 for
natural one.
For now if consumer are theorically favorable to reduced fat peanut,
they prefer rather buy natural peanut butter products.

But among this 3 kinds .. Which one is
the healthier ?
JIF example

As a conclusion on this market, a huge
room to
launch a natural reduced fat PB
Strong points :
25% less fat than regular PB
Made without hydrogenated oils
Weaknesses :
But still the same level of calories
2 ingredients added to the regular natural PB:
* Maltrodextrin (replaces fat)
* Reduced ground peanuts
Only One product on this segment :

What Emulsar can bring on this
particular product ?Launching the new low fat natural PB
Strategy to go inStrategy to go in
Emulsar Capabilities
Added value in 3 points
Creation of the healthier PB
product on the market
Any added ingredients :
•The starting base : the
regular natural PB
•Only peanut and salt
• The first product on the
market with less calories :
• Only added component =
water
A product as tasty as
the regular one with
much less saturated fat

Why a partnership with J.M. Smucker co
on this
product ? Own the two best performing PB brands
Smucker and Jif :
Market shares : 29,7% of spreads in 2014
 An emphasis put on health (reduced fat, omega 3, no salt, organic
product) : Jif communication oriented towards mothers looking for the
best for their children
 JIF range of products : an empty place to launch a Natural Reduced
fat PB
 Capacities and budget to communicate on this new innovative
product
The J.M. Smucker Co. will roll out a wide variety of new products across categories and platforms under its Jif and
Smucker’s in an effort to boost the iconic brands’ worth to $1 billion each, a company executive said. (2/2015)

Peanut Butter – 4P’s
 Peanut butter consumed by over
90%
 Smucker’s and JIF – established PB
brand
 Packaging and labelling is key for
Emulsar to emphasize on the nutritional
aspect
 Distribution channels to be retail store
outlets and confectionarties
 Branding – versus competitors
 PB brand to offer less calories – pricing
strategy to be accordingly adopted
 Taste factor – key to pricing
 Commonly purchased PB – 510g with
an average price of $2.3
 Discounts and freebies – vital during the
initial launch
 Distribution channels to be retail
store outlets and confectionaries
 Door to Door sales – helps to
impose the nutrional aspect of the
PB product
 Competitors analysis – Analysis of
inventory management
 Advertising and hoardings – USA
consumer market are driven by
such marketing techniques
 “Made in the USA” – More
consumers buying American
PLACE
PRICEPRODUCT
PROMOTION

How to convince J.M. Smucker Co. to make a
partnership with Emulsar
Several brands that can be impacted in the following years :
A shared willing to create healthy products:
 No more hydrogenated oil, no more palm oil, no more trans fat,
homogeneously less saturated fats
 No added ingredient increasing the sugar level
 A product 100% natural
 The first peanut butter with less calories
A way to gain market shares over :
The only
low fat
natural
peanut
butter on
the market

Conclusion
Time to go!Time to go!
player
player
USA / Mass MarketUSA / Mass Market
 Less fat, more calcium, same taste
 An Oreo in line with Mondelez willness to do
a « mindful snacking »
 A possibility to extend the partnership to
other brands of the group
 Keep only the « good fat » and a natural taste
 An improvement of the ratio good/bad fat
 Taking advantage of the consumer increasing
awareness regarding natural and healthy
products

Emulsar group-2-final-presentation-04282015

More Related Content

What's hot (9)

Viewers also liked (7)

Similar to Emulsar group-2-final-presentation-04282015 (20)

More from Prashanth Ramachandran (8)

Recently uploaded (20)

Emulsar group-2-final-presentation-04282015

Editor's Notes