sara lee bread: baking in a new sweetener strategy

10
SLICING UP CONSUMER RESPONSE TO SWEETENER SWITCHING SARA LEE BREAD

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Ninety-six percent of U.S. households purchase bread. Brand marketers have pointed to consumers’ expressed concerns about sweeteners as a reason to reformulate bread; in particular, removing HFCS in favor of sugar or other sweeteners. Yet the percentage of consumers that avoid HFCS when purchasing bread might surprise you. Download the full case study to learn more: http://bit.ly/1maabJO.

TRANSCRIPT

Page 1: Sara Lee Bread: Baking In A New Sweetener Strategy

SLICING UP CONSUMER RESPONSE TO SWEETENER SWITCHING

SARA LEE BREAD

Page 2: Sara Lee Bread: Baking In A New Sweetener Strategy

BREAD IS A CONSUMER STAPLE.96% OF U.S. HOUSEHOLDS HAVE BOUGHT FRESH BREAD SINCE 2009.

AND EACH HOUSEHOLD PURCHASED IT 20 TIMES EACH YEAR.

Nielsen Sara Lee Category Data extract, April 2014Advertising Age, March 15, 2014

Page 3: Sara Lee Bread: Baking In A New Sweetener Strategy

BUT BREAD SALES ARE SLIPPING ...

Nielsen Sara Lee Category Data extract, April 2014

This leaves marketers scrambling to increase market share through new points of differentiation.

CATEGORY SALES FELL FROM 2013 TO 2014.

Page 4: Sara Lee Bread: Baking In A New Sweetener Strategy

SOME ARE ASKING THE QUESTION:COULD SWEETENER TYPE IMPACT SALES GROWTH?

Page 5: Sara Lee Bread: Baking In A New Sweetener Strategy

SARA LEE, A MARKET LEADER, SWITCHED SWEETENERS IN 2010 IN AN ATTEMPT TO TARGET HEALTH-CONSCIOUS AND FAMILY-ORIENTED CONSUMERS.

Soft & Smooth, a key sub-brand, switched sweeteners

from high fructose corn syrup (HFCS) to sugar and

changed packaging to make an “HFCS-free” label claim.

Page 6: Sara Lee Bread: Baking In A New Sweetener Strategy

DID SARA LEE’S STRATEGY PAY OFF?

Page 7: Sara Lee Bread: Baking In A New Sweetener Strategy

Nielsen Sara Lee Category Data extract, April 2014

NO. SWEETENER SWITCHING WAS NOT AN EFFECTIVE POINT OF DIFFERENTIATION.

CHANGE IN SALES (2012 – 2013)

6.2MILLION$

SARA LEE DELIGHTFUL

30.4MILLION$

SARA LEE SOFT & SMOOTH(HFCS-Free)

8.8MILLION$

SARA LEECLASSIC

Page 8: Sara Lee Bread: Baking In A New Sweetener Strategy

SOFT & SMOOTH’S “HFCS-FREE” LABEL CLAIM DIDN’T APPEAL TO CONSUMERS OVERALL.

Page 9: Sara Lee Bread: Baking In A New Sweetener Strategy

BUT HOW DID SPECIFIC CONSUMER SEGMENTS RESPOND?

STACEYAll naturalPrefers all-natural lifestyle, sometimes trending toward the extreme.

JULIASeeks healthy balanceWants to have good habits for children, even if they don’t do it for themselves.

WALTERNo health worriesDoesn’t care about sweetener ingredients; dines out most often.

JOANDiabetic & dieterHas diabetes and is trying to lose weight by avoiding sugar.

TERESAMaking ends meetIs balancing saving money with healthy decisions.

SANDRATaste over healthNeeds to satisfy everyone in the family – taste driven.

Page 10: Sara Lee Bread: Baking In A New Sweetener Strategy

The Sweetener360 is a custom research study commissioned by the Corn Refiners Association and completed in part by Nielsen and Mintel Consulting.

FIND OUT WITH THE FULL CASE STUDY.download The case sTudy here >