Research ReportCHRISTEN LATINI

Insights into Tai Pei’s challenges, frozen food perceptions, and inspiring purchase and

loyalty in younger millennials.

Tai PeiNational Frozen Foods Survey

Communications Research,Fall 2016

Professor Cristi Freudenrich

Table of Contents

ContentsExecutive Brief_______________________________________________________________1

Introduction__________________________________________________________________2

Methodology_________________________________________________________________3

Findings_____________________________________________________________________6

Insights_____________________________________________________________________8

Recommendations____________________________________________________________9

References_________________________________________________________________10

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Executive BriefTai Pei is the only Asian frozen food brand in the top 5 competitors in the

market. By highlighting Tai Pei’s points of differentiation, the brand is set up for

enormous success to overtake the second ranking by Q4 2017, and first place

in the category by Q4 2018.

In a category that is forecasted to continue its decline, the frozen food industry

must develop unique, interactive ways of reaching out to younger millennials,

whose purchasing power only continues to increase.

Driven by a deep understanding of the target market, the research team

discovered several key factors to addressing the problems facing Tai Pei.

Rolling out the all-natural and preservative-free products will support and

extend the path to purchase, drawing in millennials who almost always read the

nutritional facts and look for clues on packaging regarding calorie count,

protein, and sugars.

Taste is the number one influencer of enjoying meals and making a purchase.

More grocery shoppers pick up pizza regularly than any other kind of frozen

food. This report will offer a unique perspective on how Tai Pei can utilize the

frozen pizza aisle to its advantage.

Additional insights into opportunities for our introduction to these markets

include: millennials and the potential effect of social media on brand awareness

and interaction; frozen food perceptions concerning health, quality, and taste;

the potential for personalized, customizable entrees that will inspire brand

loyalty; and above all, motivating the nation to exhibit what it means to “Tai Pei

My Way.”

Transforming the purchase of a frozen single-serve entrée from a lonely last resort to a wholesome, customized adventure will redefine the frozen food category and inspire brand loyalty in younger consumers.

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IntroductionThe Problem:There are several main problems facing the development of Tai Pei in 2017. Overall

frozen food sales are static or declining. The category itself is in desperate need of

innovation, and needs to spur interest from younger consumers. To draw in this

demographic, brands must cater to the desire of millennials to experience meals, not

just eat them.

The Challenge:The lack of interest from millennials brings up serious concern for the brand as a

company, considering the demographics’ purchasing power. Transforming the

purchase of a frozen single-serve entrée from a lonely last resort to a wholesome,

customized adventure will redefine the frozen food category and inspire brand loyalty in younger consumers.

The Study:The research conducted by the team supports the move toward all-natural,

preservative-free products, like much research conducted by outside sources. In

consideration of the brand challenges, we collected hundreds of pages of previously

conducted research from outside sources to inform its understanding of the frozen

food market, millennials, and perceptions of single-serve entrees and Tai Pei.

The team also performed a deployment study analyzing brand distributors in six states

across the nation, comparing shelf space and SKU counts between Tai Pei and its

competitors, Lean Cuisine and Healthy Choice. A nationwide, online survey evaluated

over 800 participants on frozen food perceptions, purchase inspiration, and brand

awareness.

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In addition to previous and current research, we recommend additional focus group

research on brand preferences, brand loyalty (purchase-repurchase), and new entree

considerations to continue reinventing in the space.

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MethodologySample Frame:

Thirty-four questions on an online survey asked participants to: define frozen food in terms of flavor, convenience, nutrition; rank the importance of factors in enjoying a meal; determine likelihood of frozen food purchases according to various standards; and share basic demographic information.

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The population of people ages 18+ in the United States according to the U.S.

Census Bureau is 247,813,911. We evaluated 842 participants through an

online survey conducted during Q4 2016.

Recruitment:Participants for the survey were recruited through a convenience sampling method with the intent of surveying equally each of the nine U.S. regions

(shown above, left). Social media, text messages, phone calls, emails, word-of-mouth, social apps like GroupMe and online gaming channels were all utilized in recruitment.

Survey Outline:

A thirty-four-point online survey developed through Survey Monkey measured respondents’ perceptions of frozen food, purchase behavior, enjoyment of meals, and awareness

and interest in Tai Pei. Ten questions determined the demographics of our sample—gender, age, ethnicity, household size and income, region, and level of education. The first question determined the path the participant would take through the survey, qualifying individuals by purchasing behavior—those who typically don’t purchase frozen food products and those who purchase or consume these products at least occasionally. Through Likert and semantic scales, fill-in-the-blank, open-ended, and forced-choice options other questions on the survey asked participants to: define frozen food in terms of flavor, convenience, nutrition; rank the importance of factors in enjoying a meal; and determine likelihood of frozen food purchases according to various standards.

Limitations:This was not a random sampling survey, and no level of confidence or likelihood of reproducible results exist. Demographics of the sample are representative of the national population within 10% points. Our sample size was reasonably representative (within 6%) of the national gender average at 57.5% (n=457) women and 42.5% (n=340) men.

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The sample was also reasonably representative of national ethnicity averages at 72.42% (n=575) Caucasian, within 1% of the national average; 9.7% (n=78) Hispanic or Latino, about 9% under-representative; and 9.57% (n=76) Black or African-American, about 2.8% under-representative. Almost 72% (n=572) of participants live in households without any children under the age of 18. We do not consider our results to be generalizable to the greater population (N)

because of the percentage of 18- to 24-year-olds who participated in the survey. This age group is less than 14% of the national population, but it is 43% (n=359) of our sample. For the purpose of our research, however, the major age limitation in representation of the national population only serves

to heighten our awareness of the brand’s target market and their perceptions. We have determined a confidence rate of 99% with a +/- 4.5% margin of error.

PrivacyNo personal information was recored by the survey that could identify participants. IP addresses were recorded to manage potential threats of inaccuracy, but are not available to the public. The privacy of participants was

By Ethnicity

Caucasian Black or African AmericanHispanic or Latino American Indian or Alaskan Native

Asian Native Hawaiian or Pacific Islander

From multiple races

Survey Demographics by Age

18 to 24 25 to 29 30 to 34 35 to 3940 to 44 45 to 49 50 to 54 55+

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protected by offering opt-out points throughout the survey. The participants’ responses were anonymous and cannot be traced to an individual.

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FindingsThe survey revealed that almost 42% (n=351) of participants don’t typically

purchase frozen food entrées, snacks, or appetizers. Among these non-buyers,

the most positive perception of frozen food is its convenience (average of

8.21 on a 1-10 scale), and the most negative perception is how processed the

food is (average of 2.89).

Taste is a trend ranking in the top slots on many questions throughout the

survey. 99% of participants (n=422) labeled it moderately to extremely

important when considering a frozen food purchase and in their enjoyment of a

meal (n=644).

Taste

What I'm eating

How long it takes to prepare

0 20 40 60 80 100 120

Moderately to Extremely Important Factors

Influence of Purchase Enjoyment of a Meal

The top five qualities most likely to inspire a non-buyer to make a frozen food

purchase are:

• If it fits into my lifestyle (77% moderately to extremely likely to purchase) (n=298)

• If it meets my daily vegetable requirements (75% moderately to extremely likely to purchase) (n=292)

Seventy-two percent of participants (n=575) have not tried Tai Pei, but 63% (n=502) are moderately to extremely likely to purchase the all-natural, preservative-free product after its release.

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• If it meets my daily protein requirements (74% moderately to extremely likely to purchase) (n=285)

• If a friend recommends I try it (73% moderately to extremely likely to purchase) (n=282)

• If it has bold taste (71% moderately to extremely likely to purchase) (n=274)

Forty percent of participants are most

likely to try frozen pizza (n=155),

but Chinese frozen foods ranks in

second place (18%, n=70). Pizza is

also the most consistently bought

frozen food—52% of participants who

buy a frozen food on every trip to the

grocery store choose pizza.

On the 1-10 scale, frequent buyers’ most positive perceptions of frozen food

are its convenience (average of 8.50), and its fullness of flavor (average of

5.43).

Most Likely to Try

Chinese MexicanItalian (not pizza) PizzaBreakfast

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Over half (77%) of participants (n=329) make their frozen food purchases

spontaneously, without a list or a previously decided brand or flavor.

Eighty-two percent of participants (n=665) typically check the nutrition labels

on foods. They are specifically looking for:

• calories (71%, n=467)

• sugars (69%, n=452)

• and protein (54%, n=356)

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InsightsBased on the results of our study, Tai Pei’s differentiation from other frozen food

brands will play a key role in generating awareness. A high percentage of the

population who has never tried Tai Pei offers an opportunity to develop brand

awareness by catering to positive perceptions and challenging negative ones. The

survey indicates that non-buyers and buyers alike consider frozen foods to be highly

convenient, an aspect of Tai Pei that should be highlighted.

With our new roll-out, Tai Pei entrees that are all-natural and free of preservatives and

additives will help challenge non-buyers’ perception of over-processed frozen foods

and inspire interest. By illustrating how Tai Pei can fit into various lifestyles, and

emphasizing its bold flavor and many selections, the brand can begin to cultivate desire in the target market for the product.

Consumers’ spontaneous purchasing behavior offers an opportunity to influence

purchase decisions right in the grocery store. Regular frozen food buyers’ consistent

purchase of frozen pizza indicates two paths to resolution: either utilize the pizza

frozen food aisle to advertise Tai Pei, or, develop a Tai Pei-branded pizza.

Considering Tai Pei’s lucrative venture into Asian-style burritos, expanding the cross-

cultural Asian-style option into pizzas is the logical next step for the company.

Adjustments and Challenges:

The National Frozen Foods Survey could have been improved by focusing on the

target market—by attempting to survey an accurate sample indicative of the greater

population, the results were rendered ungeneralizable.

While Lean Cuisine and Healthy Choice are Tai Pei’s top competitors, some research

should have been conducted on similar Asian-style brands like Kahiki, to develop an

understanding of potential threats.

Finally, the survey should have included a few questions regarding social media and

participants’ perceptions of the influence they may have on brand awareness, product

Pg. 12

interest, and purchasing decisions. These insights would have further informed the

team’s approach to developing the brand’s advertising campaign.

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Recommendations

Tai Pei’s challenge is to build brand awareness among young millennials, and to

initiate excitement and ingenuity in the frozen food market. It is our recommendation

that Tai Pei utilize the insights revealed by the National Frozen Foods Survey in social

media and advertisements. This demographic of the population seeks to visualize

themselves within situations presented in ads, videos, tweets, and insta-posts. These

interactions should highlight the bold taste and versatility of the many different

available selections from Tai Pei, and emphasize how convenient the entrees are to

prepare.

Further, we recommend that Tai Pei initiate nutrition-focused packaging that

illustrates the all-natural ingredients and nutritional value of each product. Offering an

Asian-style pizza gets Tai Pei into the most-visited frozen food aisle in the grocery

store, and allows for the development of brand recognition among consistent

consumers. Tai Pei should have an entrée selection in every section of the frozen food

aisles: single serve; Mexican; pizza; appetizers and snacks—rendering the brand

several steps ahead of its competitors and bringing a fresh perspective on the

potential of the category.

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References

COMPARATIVE DEMOGRAPHIC ESTIMATES (2016). 2015 American Community Survey 1-Year Estimates. American Census Bureau. Retrieved from: http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ACS_15_1YR_CP05&prodType=table

National Frozen Foods Survey 2016

NSAC17 Background Info Tai Pei

Tai Pei Case Study 2016