2 R ESEARCHERS 3 RESEARCH BACKGROUND At BOI we believe in practice - - PowerPoint PPT Presentation

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RESEARCHERS

RESEARCH BACKGROUND

At BOI we believe in practice what your preach. That is why we encourage our researchers to do their own research, next to the work we do for our clients. We like our people to show of their skills and work. Anybody at BOI can start their own BOI Labs project, wether they are a trainee or a senior research executive. BOI Labs is a playground where members of our team can play around with new ideas for market research about serious topics, fun topics or where wild and crazy ideas can be tested. In the end of the day, the projects in BOI Labs are also meant to come up with ways to make BOI work more efficient, more accurate and create new solutions for our clients. It is part of our effort to continuously encourage research, improve the skills of our executives and stimulate research we like. Research about bitterballen has been chosen because Indonesia is already familiar with bitterballen, but it seems that the product is hard to find and not easily available. Therefore, it is interesting to find out what how bitterballen are perceived at this moment in Indonesia and also how the popularity and availability of bitterballen can be expanded in Indonesia. The research objective is to find out how (from origin Dutch) bitterballen can be marketed in the Indonesian market.

RESEARCH METHOD

Multiple research methods have been used. First of all in-depth interviews were performed. The objective was to see what is thought and known about bitterballen. One of the interviewees was already familiar with bitterballen, while the other was not. This allows to look at the subject from different sides. The results eventually served as input for the mini-FGD. IDI : Jakarta, April 17 2015 Length : 1.5 hours Sample : 2 respondents Location : Jakarta The objective of the mini-FGD was a two-fold. On the

• ne hand it was finding out the preference for either

the Krokky brand or the real Dutch bitterballen. On the

• ther hand mapping thoughts, attitudes and

expectations about bitterballen. These results then served as input for the quantitative survey. Focus Group Discussion : Jakarta, April 29 2015 Length : 2 hours Sample : 4 respondents Location : Jakarta Lastly the quantitative survey had the objective to quanitfy the asociations, its potential and marketing input using a convenience sample. Based on these final results analyses and recommendations are made, which should answer the question whether there would be potential for bitterballen how to best make use of that potential. Quantitative online survey : 19.06.2015 – 06.07.2015 Length : 35 questions Invitations sent : 829 Completes : 129 (16%) Margin of error : 8.63%

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RESPONDENT PROFILE

6 53% 47%

Gender base = all, n = 129

Man Woman 33% 35% 32%

Age base = all, n = 129

25 years old or younger 26 to 30 years old 31 years old or older 26% 22% 19% 32%

Household expenditure base = all, n = 129

Less than 3 million Between Rp. 3 and 5 million Between Rp. 5 and 7.5 million more than 7.5 million

Of the respondents who filled in the survey about bitterballen, a little bit more than a half is male. All the respondents are of different ages, almost equally divided within the three set age groups. When looking at household expenditures, almost a third spends over Rp 7.5 million per month.

7 2% 1% 44% 48% 50% 87% Other, namely: 7/11 Super markets (e.g. Hero,… Convenience stores (e.g.… Traditional markets (e.g. Pasar… Hypermarkets (e.g. Giant,…

Where do you/ your family usually get your groceries? base = all, n = 129

RESPONDENT PROFILE

37% 8% 26% 6% 5% 17% Single Married: Main breadwinner Single: living with parents Married: Partner main breadwinner: living with parents Married: Main breadwinner; living with parents Married: Partner main breadwinner

What does your household look like? base = all, n = 129

More than half of the respondents live in Jakarta. When looking at the greater Jakarta, Jabodetabek, two third

• f the respondents live in that area.

Of all the respondents, 63% is single. The rest of the respondents is married. The respondents mostly do their grocery shopping at hypermarkets (87%), followed by traditional markets (50%).

8% 2% 3% 3% 4% 5% 6% 7% 8% 54% Other Bogor Depok Bekasi Medan Tangerang Yogyakarta Surabaya Bandung Jakarta

In which city do you live? base = all, n = 129

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PIECES

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SUMMARY

Bitterballen are pretty well known. Only 1 in 5 respondents don’t know bitterballen. With 2 out of 3 also able to correctly remembering its name. The net promotor score is 16%. A third of the respondents would recommend bitterballen to friends and/or family. Not only are bitterballen well known, of all the respondents two-third has eaten bitterballen before. Those who have eaten bitterballen associate the taste with risoles and ragout. According to respondents who have eaten bitterballen the best assets of bitterballen are the crispy outside, the meat and the filling. Most respondents describe bitterballen as delicious, savory and crunchy. While respondents who have never eaten bitterballen assume the taste will by comparable with kroket or nuggets. Respondents mostly see bitterballen as something that can be eaten by everyone as a snack or sometimes it can be considered an appetizer. The most ideal moment to eat this snack is during hangout/relaxing with friends, at night or accompanied by coffee or tea. The best place to consume bitterballen is either in cafes, coffee shops, and /or restaurants. Especially higher income respondents like to eat them in cafes. When buying frozen bitterballen, the places to get them are hyper- and supermarkets, like Foodhall or Kemchicks. However, most respondents have no idea if they can buy frozen bitterballen at the supermarket. Almost half of the respondents would like to see frozen bitterballen to be available in packages ranging from 12 to 20 pieces in the supermarkets. Almost all respondents would like to see prepared bitterballen in portions of 6 pieces in the places like cafes, coffee shops, and /or restaurants. When it comes to price, respondents prefer 12 frozen bitterballen for around Rp 36.000. While the price of a prepared portion of 6 should cost around Rp 30.000. The packaging of frozen bitterballen should have bright colors like red, yellow, or orange. When presented with examples of existing packages, most respondents prefer the Van Dobben packaging or Albert Heijn. The package should look more luxurious, since the product is considered a premium product, especially by the low and higher income groups.

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There seems a lot of potential for bitterballen since

• nly 2% says do not to buy them at all *.

There is already substantial product awareness, but this can be improved. Given that the name bitterballen is not known by almost half of the consumers it is important to make sure that the product name will be clearly communicated. Build on the existing awareness

• f the product and willingness to promote bitterballen

among existing consumers to improve name recognition. As far as taste is concerned, bitterballen will be easily accepted by Indonesian consumers. Position bitterballen as a delicious crunchy premium snack that is ideal for eating with family and friends of all ages. Emphasise the crispy outside, the meat and delicious filling. It is also adviced to do extra product testing to see whether the real Dutch bitterballen should be made bigger or not. Also test if extra cheese, or other taste variations are needed for consumers. Try to capture the market for prepared bitterballen first with portions of 6 bitterballen. Increase availability at selected cafes and coffee shops. Improve availability and awareness of availability. The price rage of 6 bitterballen should be between Rp 19.000 to Rp 30.000. Given the premium nature of the product, it is advised to put the price closer to Rp30.000. After product awareness and consumption of bitterballen has increased, work on availability of frozen bitterballen in hyper- and supermarkets like Hero and The FoodHall with packages of 12 to 20 bitterballen. Ideal colours for packaging bright colours like red, yellow and orange. The price rage of 12 frozen bitterballen should be between Rp 24.000 to Rp 36.000. Just like with the prepared bitterballen it is advised to price the premium bitterballen closer to the upper limit of the range: Rp36.000.

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RECOMMENDATIONS

* For this research a convenience sample is used, making the results indicative. Depending at which location bitterballen will be (re)introduced, it is advised to conduct a representative quantitative survey of that area

• f n = 385 or more.

In order to have a more premium look for the package the Van Dobben package is a good example. Typical colors or icons that refer to the Netherlands will make the package attract the attention and recognizable. It is advisable to use a similar font. It conveys grace (more premium). The product brand name will also play a big role in this. A starting point might be the name

• Oma. Indonesian consumers can associate the word

with something authentic Dutch and traditional. Next to that, it is important that there is a picture of bitterballen on the package. There cannot be any doubt that it is maybe bakso, ragout, nuggets, kroket or

• risoles. This means, no matter what, that also the

product name needs to be present on the package. Furthermore it needs to be clear for people that it is prepared and eaten as a snack. Since 33% has not eaten bitterballen before, describe the preparation with the help of easy to grasp graphics. Lastly, hire professionals when designing the package and coming up with a name. It is a vital part of the future success. It does not have to require a lot of investment.

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PROMOTION/ COMMUNICATION RECOMMENDATIONS

AWARENESS

PRODUCT FAMILIARITY

Almost anybody recognizes bitterballen, and those who do, a fast majority can name the product correctly. 67% of respondents has eaten bitterballen before. When the respondents were asked about the name of bitterballen, 79% of all respondents answered with a name, 66% gave the right answer. That means there are still some respondents who have eaten bitterballen but didn’t give the correct name of the product.

21% 79%

What is the name of this product? base = all, n = 129

I do not know Name 66% 34%

Did the respondent give the correct name? base = name of the product, n = 102

Yes No 67% 33%

Have you ever eaten this product? base = all, n = 129

Yes No

PROMOTORS

PROMOTORS

Quite a few respondents who have eaten bitterballen promote the product (33%). Almost half of the respondents who has eaten bitterballen is passive in promoting the product, while only 17% would not promote bitterballen at all. The result is a net promoter score of 16%.

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16%

17% 49% 33%

How likely are you to recommend bitterballen to a friend or colleague? base = have eaten bitterballen, n = 87

Detractors Passives Promoters

TASTE

PRODUCT ASSOCIATION AND TASTE

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The associations with bitterballen are

• verwhelmingly positive. Respondents describe

bitterballen as delicious/tasty (48%), savory (40%) and crunchy (26%). Respondents who have never eaten bitterballen say that bitterballen reminds them of other food, like perkedel, bakso, and/ or kroket (26%), while respondents who have eaten bitterballen before hardly mention the similarities with perkedel, bakso, and/ or kroket. 7% who has eaten bitterballen answers these three other products.

32% 3% 3% 5% 5% 8% 8% 9% 9% 11% 12% 13% 13% 17% 19% 26% 40% 48% Others Filling Interesting/tempting Mayonnaise Addictive Salty Potato Fried Cheese Soft/tender Round The Netherlands Reminds of other food:… Meat Snacks Crunchy Savory Delicious/tasty

What three words come to mind when you see bitterballen? base = all, n = 129

PRODUCT ASSOCIATION AND TASTE

38% of the respondents who have never eaten bitterballen think that bitterballen will taste like kroket, another 36% thinks that bitterballen will taste like nuggets.

2% 2% 10% 12% 36% 38% Other namely Potato Poffertjes Cheesy Bakso Risoles Nuggets Kroket

How do you think bitterballen will taste? base = not eaten bitterballen, n = 42 Respondents who have eaten bitterballen associate the taste with risoles and ragout. As is shown in the chart 60% of them says that bitterballen has a similar taste with risoles and 56% says bitterballen has a similar taste with ragout. More than three quarters of the women (76%), say bitterballen have similarities with ragout. While a lot of men (71%) say bitterballen tastes similar with risoles. People who live outside Jabodetabek think more often that bitterballen have a similar taste with bakso. People who live in Jabodetabek associate taste of bitterballen with ragout more than the average (63%).

2% 21% 8% 17% 56% 60% I do not know a similar product. Other, namely: Poffertjes Bakso Potato Ragout Risoles

Which of these products has a similar taste to bitterballen? base = have eaten bitterballen, n = 87

PRODUCT ASSOCIATION AND TASTE

Most respondents see bitterballen as a premium

• product. 66% of the total number of respondents sees

bitterballen more as premium product. 26 to 30 years old respondents is the group with the highest percentage, 40%, that see bitterballen as a more low cost product. Whereas the youngest age group (25 years or younger) perceive bitterballen the least as a low cost product (23%).

20 9% 4% 15% 48% 32% 29% 62% 48% 44% 59% 15% 3% 20% 12% Less than 3 million Between Rp. 3 and 5 million Between Rp. 5 and 7.5 million more than 7.5 million

Bitterballen are.... base = all, n = 129

Low cost products 2 3 Premium products

Respondents with a monthly expenditure of less than Rp 3 millions mostly see bitterballen as premium

• product. Respondents with Rp 3 to 5 millions monthly

expenditures don’t see bitterballen as either a premium

• r low cost product.

3% 30% 54% 12% Total

Bitterballen are.... base = all, n = 129

Low cost products 2 3 Premium products

PRODUCT ASSOCIATION AND TASTE

Respondents especially like the crispy outside of bitterballen (68% really like it). But also the meat (57%) and the filling (47%) are aspects that make bitterballen a product these respondents like.

21 49% 38% 29% 57% 61% 56% 47% 57% 68% 26% 33% 41% The filling The meat The crispy outside The size The color The overal taste

What do you like about bitterballen? base = eaten bitterballen, n = 87

I like it I really like it

PLACE AND TIME

MOMENT

Most respondents (94%) associate bitterballen as a snack / finger food. 14% of the respondents who have never eaten bitterballen associate this product with (a part of) dinner, which is significantly higher than the respondent who have eaten bitterballen (3%). When asked about who bitterballen would be suitable for, the majority thinks it is for everyone. There is no age limitation. This applies to all segments within this research. When looking at differences for the expenditure groups it can be seen that the second most suitable group is young children according to the group with the highest expenditure (32%). Interestingly, respondents of the FGD consider students and youngsters as a suitable group to eat bitterballen. These two groups are often interested in trying new things, which is why they would most likely also give the bitterballen a chance.

23 3% 7% 8% 9% 33% 94% Others, namely (Part of) dinner (Part of) breakfast (Part of) lunch An appetizer A snack/ finger food

How would you eat bitterballen? As... base = all, n = 129

9% 11% 19% 20% 23% 24% 63% Students Seniors Young children Teenagers Young adults Adults middle aged It is for everyone

By whom would bitterballen most likely be eaten? base = all, n = 129

PLACE

13% 3% 3% 13% 22% 26% 27% 46% Others In all ocassions When it's raining or cold While whatching TV/movies Snacks While having tea/coffee At night/evening When gathering/relaxing with…

On what occasions should bitterballen be eaten? base = all, n = 129 46% of all respondents think they should eat bitterballen when gathering/relaxing with friends. The older respondents like to eat bitterballen more at night/evening than the other age groups. Meanwhile, 28% of the respondents with a monthly expenditure Rp 3 to 5 million think that bitterballen should be eaten while watching TV/movies, which is significantly more than the respondents with a monthly expenditure of more than Rp 7 million. Respondents from the FGD also consider the movie theater as a good occasion to eat bitterballen, as an alternative to popcorn.

PRODUCT

Almost all respondents prefer to buy bitterballen as prepared products (95%). Only 4% would only buy the bitterballen if they are available frozen. 2% of the respondents would not buy bitterballen at all. Those who have eaten the product prefer to buy it prepared, those who have not, would try them either

• way. At the same time, ten times more than those have

eaten bitterballen, buying them frozen is the preferred way (10%).

25 2% 4% 47% 48% I would not buy them Frozen Both Prepared

How would you prefer to buy bitterballen? base = all, n = 129

PLACE

PREPARED

26 24% 28% 36% 37% 24% 41% 28% 34% 56% 24% 32% 29% 41% 31% 28% 44% 41% 52% 56% 44% 65% 62% 48% 56% 50% 66% 72% 73% Less than 3 million Between Rp. 3 and 5 million Between Rp. 5 and 7.5 million more than 7.5 million

Where would you like prepared bitterballen to be available? base = all, n = 129

Cafe Coffee shops Restaurant Foodcourt in a mall Food stall Cinema Food truck

When it comes to prepared bitterballen, the respondents think that a cafe and coffeeshop are the best place where prepared bitterballen should be

• available. This applies to all expenditure levels of Rp 3

millions and up. Respondents with less than Rp 3 million monthly expenditure more often prefer bitterballen to be available at a food stall (56%). Of the oldest age group of respondents, 59% likes prepared bitterballen to be available at a restaurant. While 32% of male respondents would like bitterballen to be available at a bar, compared to 16% of the women.

2% 1% 4% 7% 7% 12% 25% 31% 32% 36% 37% 47% 58% 65% Other, namely: Warung High school canteen Public swimming pool Street vendor University canteen Bar Food truck Cinema Food stall Foodcourt in a mall Restaurant Coffee shops Cafe

Where would you like prepared bitterballen to be available? base = all, n = 129

PLACE TO BUY

FROZEN OR PREPARED

Most respondents don’t know where they can buy bitterballen, especially respondents who have never eaten bitterballen. (Dutch) restaurants and supermarkets are places that respondents mentioned where they can buy bitterballen either frozen or prepared. A lot of respondents, 71%, say that hypermarkets is the place where frozen bitterballen should be available. Followed by supermarkets, 53% of respondent would like frozen bitterballen to be available there. However,

• nly 38% of the respondents with Rp 3 to 5 million

monthly expenditure expect frozen bitterballen at supermarket. On the other hand, more than half of the respondents who have eaten bitterballen think that frozen bitterballen should be available at a supermarket. Respondents who live in Jabodetabek (15%) like frozen bitterballen to be available than 7/11 more often than respondents who live outside Jabodetabek (2%).

27 53% 17% 4% 4% 10% 12% 12% 17% I don't know Others... Pastry shop Hypermarket Caffe/coffe shop Restaurant Supermarket Dutch restaurant

Do you know where you can buy this product, either frozen or prepared? base = all, n = 129

3% 11% 39% 53% 71% Other, namely: 7/11 Convenience stores (e.g. Indomaret, Alfa Midi) Super markets (e.g. Hero, Foodhall, Ranch Market, Kem Chicks) Hypermarkets (e.g. Giant, Carrefour, Hypermart)

Where would you like frozen bitterballen to be available? base = all, n = 129

QUANTITY

When looking at quantity, there is a difference between frozen and prepared bitterballen. Most respondents prefer prepared bitterballen to be sold in portions of 6 pieces. However, the group with a monthly expenditure between Rp 3 and 5 million prefers more often than on average a portion of 10 bitterballen (38%). While frozen bitterballen are mostly preferred to be sold in a quantity if 12 (to 20) pieces. The respondents of the FGD partly agree with this. Some respondents prefer the opinion of 20 bitterballen, because this makes it easier to share with family and friends.

28 19% 53% 21% 4% 2% 4 6 10 15 20

If you buy prepared bitterballen in your chosen venues above, how many bitterballen would you like to have prepared? base = all, n = 129

7% 47% 38% 6% 2% 6 12 20 36 More than 50

If you buy frozen bitterballen in a supermarket, how many bitterballen would you like to have frozen in a package? base = all, n = 129

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PACKAGING

PACKAGING

Besides knowing what price bitterballen should be, who should buy it and what exactly should be bought, it is important to know how to present it. First consumers were asked what color they would prefer for the package. The results show red is the favourite color. The reason why red is the favourite seems to be because it increases appetite, attracts attention, fits with the color of bitterballen and is a typical color of the country of the origin of the product (Netherlands). The last statement especially applies to orange. Gold is also associated with bitterballen, because it looks luxurious. Respondents of the FGD consider bitterballen as a luxurious product, but do not see gold as the preferred color.

5% 2% 2% 3% 5% 8% 14% 14% 18% 22% 29% Others Green Maroon Transparent Blue White Brown Gold Orange Yellow Red

What would be a good color for the packaging of frozen bitterballen? base = all, n = 129

PACKAGING

Secondly, 5 different types of packaging were asked to be ranked. De package of Van Dobben comes out on top, only those who have not eaten bitterballen before like it less. They opt for the package that overall was ranked last. For the Van Dobben package the colors red and white are used. This coincides with the colors people say they like. Note that although orange was also one of the favourites, people apparently do not like it when it is dominant as in the Mora package. Brown on the other hand does seem to be liked more while it ranked lower when looking at the choice for colors.

31 15% 25% 16% 20% 24% 16% 12% 22% 22% 28% 18% 12% 22% 29% 19% 31% 22% 12% 16% 19% 21% 29% 28% 12% 10% AH4 Mora Holtkamp AH3 Van Dobben

What package is most attractive to you? base = all, n = 129

1 2 3 4 5

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PRICE

PRICE

What are people willing to pay who go to hypermarkets and supermarkets. When looking at the results, there is a difference of 10%. The price range is Rp 24.000 to Rp 36.000, with an optimal price point for all respondents is Rp 32.000. However, since bitterballen are mostly seen as a premium product the ideal price is Rp 36.000.

33 Rp24,000 Rp32,000 Rp36,000 25 50 75 100

Bitterballen: 12 in a package Westendorp method (availability at hyper- and supermarkets)

Too cheap Bargain Expensive Too expensive

PRICE

The optimal price point for for 6 prepared bitterballen is Rp 22.000. Just like with the frozen bitterballen, it is advised to position the product as a premium one. Which makes it advisable to set the price at Rp. 30.000

34 Rp19,000 Rp22,000

• Rp. 30.000

0% 25% 50% 75% 100%

Bitterballen: 6 prepared Westendorp method (availabiltiy at coffee shops and cafes)

Too cheap Bargain Expensive Too expensive