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Report

Bread Decline Research Stage 1:Exploratory research with “buy+escape” people

For The Baking Industry Research TrustDecember 2012

528 5594

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“Why are people eating less bread / bread product?”

What B.I.R.T. bread members want from the Total Project output

“What will bring people back to

bread?”

“How do I increase my sales of block bread?”

“How can we make our products more

relevant?”

“Bread hasn’t been loved for a long time –

why not?”

“What are people eating now – what’s

the shift from 5 years ago (breakfast, lunch)?

And why?

“Emotions attached to bread – what are they?”

“How is the bread market segmented ie.

consumption in leavened products vs.

other flour segments?”

“Do they love something else more, or have they

just fallen out of love with bread?”

“What’s the value/consumption

relationship consumers have?”

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Agreed Approach to kicking off the total project

Start with an Exploratory piece of research (this Report)

Get a sense of what is going on with consumers, how they are feeling towards bread/bread products, and what they are actually doing as a consequence

Then determine what’s the best approach to take from there

Keep researching? And/or to explore solutions?

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The Objective of this stage 1 exploratory piece of research

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Objective of this stage 1 Exploratory research

Get clear leads on exactly WHY the bread market is declining

Find out from people who are buying some packaged bread &

a range of other bread productsie. the “buy + escape” people

— How they are really feeling about bread /bread products?

— What exactly is contributing to that feeling?

— What behaviours is it driving and altering?

— The Implications (based just on this smaller exploratory piece as a first step)

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The Outcomes of this up exploratory piece of research

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Outcome #1 The ‘escape’ drivers – the why

Outcome #2

The consequent behaviours

Outcome #3

The perspective on packaged bread

Outcome #4

Leads for solutions

Four Key Outcomes

page 8

page 16

page 22

page 33

Summary page 43

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Outcome #1

The drivers – the why

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Outcome #1

— Many people are very happy sliced bread buyers and eaters

Respected staple

A good food – does the job

Can’t go wrong with it – for the job it does

Product is perfectly OK

Every day uses are enough for them

They’re not bored

— Many are ‘escaping’ however

2 x big ‘escape’ drivers

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Outcome #1

Two main ‘escape’ driversfor the ‘buy + escape’ people

Driver 2

“New Gen” eating

Driver 1

Comfort & Care

THESE ARE BOTH VERY SIGNIFICANT DRIVERS

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Outcome #1

Driver 1

Comfort & Care

Thick, soft, puffy bread things, fresh baked

BunsRolls

Loaves – (un)tinned, (un)sliced

Flavoured bread– pizza, cheese etc topping

SourdoughsGarlic bread

White or grain versions

From the In-store Bakery in particular

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Outcome #1

Driver 2

“New Gen” eating

Contemporary and international products

thinner and/or different texture to accommodate “new gen”

foods, fillings, flavours andinspire ‘creativity’

WrapsPaninisNaan

TurkishPita

‘Ciabatta’ thinner ones

BagelsCroissants

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Outcome #1

Gluten-free ?

Wheat-free ?

Unhealthy-ness ?

Equally big drivers ??

No ... not for these ‘buy+escape’ people

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Outcome #1

Gluten-free, Wheat-free

Very low evidence of it affecting purchase habits for vast majority of these people (plus not good eating experience for triallists) – far less of a driver than for the 2 main drivers

Gluten/wheat-free is part of “new gen” eating – we don’t know from this research how big a part because these were all wheat bread eaters

Awareness of gluten-free growing presence and social conversation, however – so re-evaluation could easily occur in the future

Unhealthy-ness

Next to no awareness of “the experts” recommending reduced wheat intake. Only one person admitted reducing consumption of packaged bread in favour of other carb alternatives – lentils, brown rice etc.

Gluten-free ? Wheat-free ? Unhealthy-ness ?

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Insight from Outcome #1

for ‘buy + escape’ people

Commercial (vs bakery) sliced packaged bread does not have what it takes to meet the needs of

the 2 very big drivers attacking it

neither functionallynor appropriateness

Implication =

Left undefended, this ‘side-lining’ is likely to continue its pace

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Outcome #2

The consequent behaviours

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Outcome #2

The Consequent Behaviours

The Eating

... what’s going on

that’s excluding or minimizing packaged bread

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Zoe24First job out of uniToast for breakfast at home. Lunch: Modern, fresh, light, healthy. Packaged bread at work = “you’re poor”

Carolyn45Working mum of 3Toast for breakfast household. Lunch in school staff room: wraps, rolls, leftovers . But sandwiches = “loser”

Lee Ann37. Full time single mum of 3 supported by ex husbandPackaged bread good for toast. Lunches: buns/rolls + love & care. Wraps = interesting. Sandwiches for lunch = “struggler”

Cam20Works in tyre-fitters, throwing tyres around all day. Toast for breakfast (plus moccacino + pie or croissant). Lunch = Substance + flavour so rolls, Subway etc. Sandwiches are “for wimps”

Cheryl46Mum of 3 teenagers. Personal TrainerLoves toast for breakfast. Lunches for everyone = Modern, different, filling, tasty. Sandwiches are for “school”, now feel “boring & old”

Lisa38. NZ born ChineseMum of 4 and 7 year old Packaged plus wide variety bread products in home. Trying to broaden the kids’ taste, Sliced bread = “narrow minded” and “stuck in old ways”

Their real names and stories but not their real faces

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Outcome #2

These non-packaged behaviours are deeply satisfying &

exclude the need for any more packaged bread to be bought than what is needed for

basics and “back up”

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WHERE PACKAGED

IS AND ISN’T BEING USED

LunchtimeBut lunchtime it’s displaced by the other options

WeekendChallenged on weekend – let’s go and get some fresh buns and rolls, nice fresh loaf ... for breakfast/ brunch, for lunch

DinnerNot even a contender at dinner

After SchoolEven after school – same story, being challenged by the other options

Weekday BreakfastSliced bread may be holding its own at weekday breakfast (it appears), hit only by cereal which is faster, tidier and more sustaining

SocialisingSocialising – packaged bread is not appropriate, makes you look poor and unenlightened and ordinary (Stella’s Mangere relatives; Lisa’s Chinese aunty coming over for breakfast)

Its PurposeSo it’s just “back up” – and breakfast for some

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Insight from Outcome #2

with ‘buy + escape’ people

The situation is compounded because, at other than breakfast time,

commercial packaged bread is losing ground on – social attitudes

– social image

Implication =

A compelling category proposition is needed to defend commercial packaged bread’s social standing

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Outcome #3

The perspective on packaged bread

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The Perspective on Packaged Bread

Outcome #3

A. The changed bread ‘viewfinder’

What it is

how it’s affecting packaged

B. How packaged bread has been

positionedAnd why, what you’ve done to

achieve that

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Outcome #3

The changed bread ‘viewfinder’

for ‘buy + escape’ people

What it is

How it’s affecting packaged

“You can’t see the bread – it’s all covered in advertising. It doesn’t look

natural”

“Try looking for nice sliced bread for nice asparagus

rolls – huh! It’s all for vitality or people with

health and energy issues”

I like the clear packs in the [ISB] bakery and I look for simple, natural looking packs in the bread aisle”“I buy 4 loaves

of PnS own brand on their black trays [end

of bread aisle] every 3 days. The clear pack feels like it’s bakery

bread.”

“I cross the road just to buy 12 [Budget] multi grain loaves at New World every 2 weeks. Nice clear

packs, it’s really good bread and I can

see it”

“That aisle does nothing for me – all those colours –

I race to get in & out. Go to Baker’s

Delight”“They all look the same, all

bright. Colour colour

everywhere!”

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The changed ‘viewfinder’ in action in in-store bakeries (ISB) – The simple look and ‘bread’ feel of the packs work for them– Note: In ISBs they’re also habitually buying bread products at low price points & specials. They’re not always price-buying in other stand-alone bakeries however

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Outcome #3

For ‘buy + escape’ people

Their viewfinder on bread is the simple values of simple bread, simple, uncomplicated and pure and unadulterated

and not messed around with

They’re looking on packaged bread & its aisle with this viewfinder

which is a changed one in recent years & it’s eroding engagement with the category in its current form

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Outcome #3

For these people who ARE buying commercial packaged + a range of other bread products

Their viewfinder on bread is the simple values of simple bread, simple, uncomplicated and pure and unadulterated and not messed around with

This has come from

— their inherent expectations of bread

— the simple every day experience they’ve been having in low priced, very accessible bakeries – ISB and elsewhere – where the simple values of bread are honoured in a very simple mainstream way

Not artisanal or ‘fancy’ – just good and simple and uncomplicated and freshly made and “lovely”

— home baked bread where they’ve experienced that

— associations with contemporary authentic bread / bread product types and brands

They’re looking on packaged bread & its aisle with this viewfinder

which is a changed one in recent years and it’s eroding engagement with & feeling for the category

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Outcome #3

Consequently

— Don’t have any interest in buying it for other than basic household needs

— Not being given any reason to feel good / any better about it

— Gets used just for toast or when the good stuff has run out – it’s Thursday-Friday food

— Default is eat some on purchase day then it’s “shoved” in the freezer – out of sight out of mind

— The way you shop for it, don’t really care

— Don’t want/need to spend more $ on it

— Trade down/trade up – spend less on it, spend more elsewhere

— And your emotional as well as functional needs in bread are well taken care of elsewhere in other bread products / breads at the ISB or bakeries – or via “new gen” bread products

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Outcome #3

“Back up”

= packaged bread’s current role !for ‘buy + escape’ people

B. How packaged bread has been

positionedAnd why, what you’ve done to

achieve that

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Outcome #3

aside from what’s been done from outside to reposition you

What has contributed to this Commoditisation of your own category

— $ pricing strategy – cheapened the offerings & the category

— Packs devoid of category values

— Packs that hide the product and scream of “marketing” and “advertising”

— Health claims of functionality when bread is emotional for these people

— Shelf system that makes it impossible to see product

— Coloured trays that add cheapening “lego” look to perfectly good bread & brands

— So many choices but no real choices amongst most of them – & all looking the same

— Little delineation / segmentation in the supermarket sliced aisle

— Looking overall like you don’t love standard ‘family’ bread or being in bread

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Outcome #3

for ‘buy + escape' people

Commercial packaged bread (including the colourful brands and supermarket aisles) is doing very, very little to salvage itself in their eyes – very, very little to connect with their emotional needs, salvaged only by it meeting their most pragmatic needs

With its bright colours, ‘health’ additives and health claims, permanent fire sale prices, and bright coloured plastic shelf trays, it is a world away from

— the core values of bread, from the simple warmth of Comfort & Care

— and from any inspiration to be creative in a fresher, modern “new gen” way

— plus it has lost any sense of what it stands for aside from all other bread segments

From the look of the packs and in-store aisle area, they feel manufacturers don’t love bread and don’t love being in bread

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Insight from Outcome #3

for ‘buy + escape’ people

Commercial packaged bread has walked away from the fundamentals of bread ... while people’s need for those

fundamentals has grown and deepened

It has consequently fractured the long standing emotional connection between consumer and category

Implication =

If the decline is to change, manufacturers and retailers of commercial packaged bread have to (a) sort out their side of things re practicals

and (b) rekindle people’s belief in and love of what the category stands for

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Outcome #4

Leads from this exploratory research for solutions

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Outcome #4

Leads from this exploratory research for a Solution

for ‘buy + escape’ people

What do you have going for you that is OK?

— The bread product itself— Slice thicknesses of product— Being protected in plastic bags— Reseal-ability— Being flat displayed in store— Keeps few days— Freeze-able and defrosts well— Widely known and established brand names

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The ‘Practicals’ – what could fix the situation?

The trays ?The colour of the traysThe shallow viewing depth

The ‘too many choices but no real choice’ ?Rationalise within brands

The packs ?Visibility of productAlign with category values

But these alone would not fix things

Outcome #4

ETC, ETC

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Outcome #4

What is missing?

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What Packaged Bread Stands For... ie. is deeply emotionally attached to

Simple, Kiwi, familySimple and uncomplicated bread that is quite pure and unadulteratedNo additivesNot been messed around withNote: coloured pack brands don’t look like all that – plus additives and health claims and even invisible fibre all counter it

Togetherness, sharing, mother-home feeling, return to the simple life

Simple uses – that are very Kiwi and family, and fun for all

Could be made part of “new gen” And can provide comfort

Outcome #4

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PACKAGED BREAD

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When recalling the ways they loved to – or had loved to – eat packaged bread, people got excited

Simple enjoyable ways Kiwi Mums have always dished up a little bit of delight using packaged bread

These instantly reconnected them with the category

Outcome #4

“Asparagus rolls!”

“Pinwheels!”

“Fairy bread!”

“Cheese rolls!”

“Mousetraps!”

“Double deckers!”

“Toasties!”

“Bread & butter pudding!”

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Outcome #4

What has to happen based on this exploration, for ‘buy + escape’ people

— Reconnect with people— Change how people feel about your packaged bread— Re-establish its unique role in New Zealand life— Have people feel good about that— Evolve to be relevant to those two big ‘escape’ drivers — Sort out the practicals – almost everything people interact with

Based on the evidence and insights so far, there are tough calls to be made here if the decline situation is to

change

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Insight from Outcome #4

for the ‘buy + escape’ people

Commercial packaged bread has deep emotional roots in

(a) its origins as a simple natural Kiwi family product

(b) the simple enjoyable ways Kiwi Mums have for generations dished up a little bit of delight & creative fun using it

Implication =

This is a powerful and authentic basis for re-establishing that deep emotional connection with the ‘buy + escape’ people

to make them feel good about it again and buy/use more of it

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Summary

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Summary: 4 Key Outcomes for “buy+escape” people

OUTCOME #1

PACKAGED BREAD BEING MARGINALIZED BY TWO MAIN ‘ESCAPE’ DRIVERS FOR PEOPLE – COMFORT & CARE AND “NEW GEN” EATING

BOTH ARE VERY SIGNIFICANT DRIVERS, AFFECTING CONSUMERS’ BEHAVIOURS ACROSS MANY CATEGORIES

INSIGHT

COMMERCIAL (VS BAKERY) SLICED PACKAGED BREAD DOES NOT HAVE WHAT IT TAKES TO MEET THE NEEDS OF THE 2 VERY BIG DRIVERS ATTACKING IT – NEITHER FUNCTIONALLY, NOR APPROPRIATENESS

IMPLICATION = LEFT UNDEFENDED, THIS ‘SIDE-LINING’ IS LIKELY TO CONTINUE ITS PACE

OUTCOME #2

PACKAGED BREAD IS BEING CONSUMED AT BREAKFAST TIME BUT HAS DOWNGRADED TO SOMETHING BOUGHT FOR BASICS AND “BACK UP”. ITS SOCIAL IMAGE AT LUNCHTIME IS “POOR AND UNENLIGHTENED”, “LOSERS”, “STRUGGLERS”, FOR “WIMPS”, “NARROW MINDED, “STUCK IN OLD WAYS” AND SANDWICHES ARE “FOR SCHOOL”, WHILST PRODUCTS THAT PROVIDE COMFORT & CARE OR “NEW GEN” EATING HAVE HIGH SOCIAL KUDOS – AS WELL AS BEING DEEPLY SATISFYING

INSIGHT

THE SITUATION IS COMPOUNDED BECAUSE, AT OTHER THAN BREAKFAST TIME, COMMERCIAL PACKAGED BREAD IS LOSING GROUND ON SOCIAL ATTITUDES & SOCIAL IMAGE

IMPLICATION = A COMPELLING CATEGORY PROPOSITION IS NEEDED TO DEFEND COMMERCIAL PACKAGED BREAD’S SOCIAL STANDING

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Summary: 4 Key Outcomes for “buy+escape” people

BASED ON THE EVIDENCE AND INSIGHTS SO FAR, THERE ARE TOUGH CALLS TO BE MADE HERE IF

THE DECLINE SITUATION IS TO CHANGE

OUTCOME #3

PEOPLE’S VIEWFINDER ON BREAD IS THE SIMPLE VALUES OF SIMPLE BREAD – SIMPLE, UNCOMPLICATED AND PURE AND UNADULTERATED AND NOT MESSED AROUND WITH. THEY’RE LOOKING ON PACKAGED BREAD AND ITS AISLE WITH THIS VIEWFINDER WHICH IS A CHANGED ONE IN RECENT YEARS, AND THEY’RE SEEING ALMOST EVERY ASPECT OF IT IS A WORLD AWAY FROM THEIR VIEWFINDER

INSIGHT

COMMERCIAL PACKAGED BREAD HAS WALKED AWAY FROM THE FUNDAMENTALS OF BREAD ... WHILE PEOPLE’S NEED FOR THOSE FUNDAMENTALS HAS GROWN AND DEEPENED

IMPLICATION = IF THE DECLINE IS TO CHANGE, MANUFACTURERS AND RETAILERS OF COMMERCIAL PACKAGED BREAD HAVE TO (A) SORT OUT THEIR SIDE OF THINGS RE PRACTICALS AND (B) REKINDLE PEOPLE’S BELIEF IN AND LOVE OF WHAT THE CATEGORY STANDS FOR

OUTCOME #4

SORTING OUT THE ‘PRACTICALS’ WILL HELP BUT NOT ALONE SOLVE THE DECLINE SITUATION. THE CATEGORY IS MISSING ITS INHERENT ‘HEART’ & NEEDS TO URGENTLY RE-CONNECT WITH PEOPLE VIA WHAT IT UNIQUELY STANDS FOR, CHANGE HOW THEY FEEL ABOUT IT, RE-ESTABLISH ITS UNIQUE ROLE IN NEW ZEALAND LIFE AND HAVE PEOPLE FEEL GOOD ABOUT THAT, EVOLVE TO BE RELEVANT TO THE TWO BIG ‘ESCAPE’ DRIVERS INSIGHT

COMMERCIAL PACKAGED BREAD HAS DEEP AND UNIQUE EMOTIONAL ROOTSI N (A) ITS ORIGINS AS A SIMPLE NATURAL KIWI FAMILY PRODUCT AND (B) THE SIMPLE ENJOYABLE WAYS KIWI MUMS HAVE FOR GENERATIONS DISHED UP A LITTLE BIT OF DELIGHT & CREATIVE FUN USING IT

IMPLICATION = THIS IS A POWERFUL AND AUTHENTIC BASIS FOR RE-ESTABLISHING THAT DEEP EMOTIONAL CONNECTION WITH THE “BUY+ESCAPE” PEOPLE TO MAKE THEM FEEL GOOD ABOUT IT AGAIN, AND BUY/USE MORE OF IT

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Recommendation Next Steps

1. Quantify recommended areas to Validate Monitor for category protection purposes2. Consider what other sub-segments of people need to be

2. Pursue transformational change ideas to arrest the decline and defend the category

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Research Design and Logistics for this up front exploratory piece of research

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Research Design

— PERSONALLY BUY AND EAT BREAD OR BREAD-BASED PRODUCTS DAILY OR VIRTUALLY DAILY

— PURCHASERS OF PACKAGED SLICED BREAD FROM SUPERMARKET (MIN N=3 PER CITY) OR IN CHCH COUPLAND’S STORES (MIN N=3)

— PURCHASERS (AT LEAST WEEKLY) OF OTHER BREAD-BASED PRODUCTS, (SEE ‘THE LIST’)

— MAX 3 PER CITY WHO NEVER BUY PACKAGED SLICED BREAD FROM THE SUPERMARKET

— MAX 2 FULL TIME STUDENTS PER CITY— NON-REJECTERS OF SLICED PACKAGED

BREAD ALTHOUGH MAY OR MAY NOT BE BUYING IT

GROUP 1

MUMS WITH SCHOOL AGE

KIDSINCL. QUOTA LOWER

SOC-EC

AUCKLAND

GROUP 3

MUMS WITH SCHOOL AGE KIDS INCL. QUOTA

LOWER SOC-EC

AUCKLAND

GROUP 4

20 SOMETHINGSFEMALES OR

MALES

AUCKLAND

GROUP 2

MUMS WITH SCHOOL AGE

KIDSINCL. N=2 LOWER SOC-

EC

CHRISTCHURCH

GROUP 5

20 SOMETHINGSFEMALES OR

MALES

CHRISTCHURCH

— PURCHASERS OF PACKAGED SLICED BREAD FROM SUPERMARKET (MIN N=3 PER GROUP) OR, IN CHRISTCHURCH, COUPLAND’S STORES (MIN N=3).

NOTE: NO FREQUENCY SPECIFIED IE. IT’S A FILTER TO ENSURE THEY’RE (A) AT MIN. OCCASIONAL PURCHASERS AND (B) ARE NON REJECTERS

— PURCHASERS (AT LEAST WEEKLY) OF OTHER BREAD-BASED PRODUCTS, EG. BUNS, ROLLS, PANINIS, WRAPS IE. ANYTHING ON ‘THE LIST’

— MAX 2 PER GROUP WHO RARELY BUY PACKAGED SLICED BREAD FROM THE SUPERMARKET

— TOTAL N=4 LOWER SOC-EC MUMS WITHIN THE TWO AUCKLAND GROUPS 1 & 2; AND N=2 IN THE CHRISTCHURCH GROUP 5

SHOP 2 MUM

AUCKLAND

SHOP 3

20 SOMETHINGAUCKLAND

SHOP 1LOWER SOC-EC

MUMCHRISTCHURCH

SHOP 4

20 SOMETHINGCHRISTCHURCH

CHRISTCHURCH GROUPS 4 & 5: INCLUDE QUOTA N=3 PEOPLE FROM OUTER CHRISTCHURCH SUBURBS IN THE TWO CHRISTCHURCH GROUPS EG. RANGIORA, LINCOLN, WEST MELTON ETC.

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Project name/code Project Brioche

Research team Elizabeth Brown and Bernice Tuffery

B.I.R.T. team Tania Watson

Field locations Auckland and Christchurch

Field dates November 20 – 27th

Debrief date December 11th 2012

Project Logistics