UBC

Shared Values

• Centre for Interactive Research on Sustainability• Food Services: Fair trade campus, 53% local/organic• Direct farm to campus program• Water feature = biofiltration system

Industry Growth

• Fruit Juice: Rev $612M, Profits $84M = 13.8% margin• 6.8% growth next 5 years• Soft drink per capita consumption plummeting 10L/y• CBA 2009 High School guidelines eliminate soft drinks

Opposite

Trends

Increasing Demand

Problem Identification

AGENDA

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SITUATION ANALYSIS

Situational Analysis

• Customers: UBC students

• Distributor: Gordon Food Services• Delivery schedule: M W F @ noon

• Plenty of beverage substitutes offered on

campus• Main competitor: Odwalla (Coke)

PRODUCT AWARENESS & ATTITUDES:

1. Would awareness that HP is local affect attitudes towards the

brand?

2. Does the importance vary across groups?

3. Do students value local products?

4. Do students value organic products?

PRICE:

5. Does price awareness for students need to be increased?

6. Do students believe that Odwalla is a relatively cheaper

product?

7. Would changes in price lead to a change in demand behaviour?

8. Are students willing to pay a premium for local products?

SITUATION ANALYSIS

Initial Questions

• Limited to UBC campus

• Looking for stop gap solutions• Remove sales barriers

• Not necessarily promotions

• No authority to change packaging / price

• Client is Happy Planet, but in conjunction

with UBC Food Services

SITUATION ANALYSIS

Project Scope

Situ

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Analysis

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ChannelConsumer

Consumer behaviour survey

Store audits of UBC Food Services outlet

Interviews with store managers

METHODOLOGY

Two Pronged Approach

METHODOLOGY

Consumer Behaviour Survey

• Initial consumer outreach• Surveyed 108 students• Living on and off campus

Specifically investigated consumer’s:

a) Attitudes toward Happy Planet’s and competitor’s product

b) Willingness to payc) Perceived Priced) Individual purchase habits

METHODOLOGY

Store Audit Procedure

Total Monday Wednesday Thursday Friday0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

28.8% 28.9%25.8%

40.2%38.3%

71.2% 71.1%74.2%

59.8%61.7%

Relative Share of Shelf Facings

Happy Planet

Odwalla

28.8% of Total Facings

STORE AUDIT RESULTS

1 in 4 Facings

STORE AUDIT RESULTS

STORE AUDIT RESULTS

STORE AUDIT RESULTS

• Retailers satisfied with GFS service

• Need uniform pricing on campus

• Staff prefers Odwalla because:

1) Product taste

2) Stocks their own shelves convenience

• Reasons for not ordering HP products:

• Little difference from Odwalla

• Less demand from students

STORE AUDIT RESULTS

Manager Interviews

Situ

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Analysis

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RECOMMENDATIONS

Happy Planet

is not of the

shelf

Consumers

do not buy

it

Staff isn’t

ordering it

RECOMMENDATIONS

POINT OF SALE

CONSUMEROPERATIONAL

ProblemSolution

ProblemSolution

ProblemSolution

RECOMMENDATIONS

Not enough facings

• Aggressive Odwalla staff

• Takes over space

• No Price Awareness

POINT OF SALE

Problem

RECOMMENDATIONS

Research Analysis

Happy Planet Odwalla $-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$3.44

$3.02

$2.99

$3.79

Estimated vrs Actual Price

Est

imate

d

Act

ual

Est

imate

d

Act

ual

*Estimated value difference is statistically significant with P-value 0.00025

POINT OF SALE

RECOMMENDATIONS

Equalize playing ground

• Predefined, branded space on the shelves

• Drive Awareness: In-Store Display and End

Caps

• Enforcing equal facings rule

POINT OF SALE

Solution

RECOMMENDATIONS

Point of Sale: Implementation

End Cap Label

Branded Label

Store Price Tag

POINT OF SALE

Ike’s Café

$2.99

Tier 1

Tier 2

Tier 3

Solution

RECOMMENDATIONS

POINT OF SALE

CONSUMEROPERATIONAL

RECOMMENDATIONS

Lack of awareness• Price• Local• Health

Low Willingness to Pay

CONSUMER

Consumers are not considering the key product benefits at POSProblem

RECOMMENDATIONS

CONSUMER

Happy Planet Odwalla $-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$3.44

$3.02

$2.99

$3.79

Estimated vrs Actual Price

Est

imate

d

Act

ual

Est

imate

d

Act

ual

People may not be purchasing HP assuming it costs more

RECOMMENDATIONS

Domestic BC Domestic nonBC International Total0%

10%

20%

30%

40%

50%

60%

70%

43%

50%

23%

40%

13%

7%

19%

14%

44%43%

58%

47%

Regional Status Product Pref-erences

Happy Planet Odwalla No Preference

Canadians prefer HP International Students have no preference

*Statistically significant comparison with P-values between 0.002 and 0.038

CONSUMER

RECOMMENDATIONS

International Student Awareness

Canadian students International students

$3.55

$3.16 $3.18

$2.67

Price estimation HP Price estimation Odwalla

Canadians expect to pay more for smoothies

CONSUMER

RECOMMENDATIONS

Know it is made in BC Don't know Make an effort to purchase local Do not make effort

$2.83

$2.27

$2.68

$2.40

$2.58

$2.23

$2.47

$2.33

Higher awareness = Higher Willingness to Pay

Willingness to Pay for HP Willingness to Pay for Odwalla

CONSUMER

Branding is the primary winning point for Happy Planet

RECOMMENDATIONS

Brand Packaging Taste Local Healthy0

2

4

6

8

10

12

14

16

18

Explanation of Product Preference

Happy Planet Odwalla

CONSUMER

• Strong brand presence & differentiation• Indifference on taste

RECOMMENDATIONS

Price

Local

Health

CONSUMER

CommunicationGoals

Focus on communicating the three primary value pointsSolution

RECOMMENDATIONS

CONSUMER

• POS related solutions• Uniform pricing

• End-cap labels

• Brand Ambassador• UBC student opportunity

• Campaign (sampling events)• Beginning of term

• Midterm season

• Geo Targeting Digital Ad Words• Leverage existing campaigns

• Highlight 3 communication

goals for students

On-Campus InitiativesSolution

0%

20%

40%

60%

80%

100%100%

35%25% 25% 19% 10% 10%

Category Penetration

CONSUMER

RECOMMENDATIONS

Coffee near 100% penetration.Communicate “energize with nutrition, not just stimulants”.

RECOMMENDATIONS

CONSUMER

Energize your way through midterms

Take a smoothie instead of a coffee

Coffee near 100% penetration.Communicate “energize with nutrition, not just stimulants”.

RECOMMENDATIONS

POINT OF SALE

CONSUMEROPERATIONAL

RECOMMENDATIONS

High-Level UBC Food Services Initiatives• Fair trade campus

• 48% locally grown / processed within 150 miles / certified

organic

• Fair and equal opportunity for manufacturers

Hig

h L

evel

Sto

re L

evel

High-level goals not trickling downProblem

RECOMMENDATIONS

Variety of people do the ordering• Sometimes only the manager

• Sometimes anyone on the staff

Problem

Ordering based on personal opinions or

history

Problem

• “Does not like the taste of HP and believes that

customers are of the same opinion”

• “Smoothie products are so similar, so why add

another brand to the list”

• “Just follow the pattern of the last supervisor who

didn’t order HP”

• “We haven’t ordered it because we’re new and

trying to get a feel for what people buy”

RECOMMENDATIONS

General misconceptions about the value

offering

• “You get a better bang for your buck with

Odwalla”

Problem

Price Volume $/100mL If

355mL

Relative Value

$2.99 325mL $0.92

$3.27

$3.79 355mL $1.07

$3.79

16% more

expensive

Price mL Price/100mLPrice if

Both 355mL

RECOMMENDATIONS

Education

Meetings / Memos at the beginning of each term:• Review high-level UBC Food Services goals

• Highlight how staff can contribute to these goals

• Encourage and reward upwards communication

• Review ordering procedures

• Ensure order codes are updated

• Include fairness (equal facing) goals and hold staff

responsible for making those adjustments. Mention

possible audits.

Solution

RECOMMENDATIONS

Confusing order-sheet & coding• “GFS only offers one flavour of HP so I stopped ordering it”

• “It is extremely difficult with GFS to find the codes”

• “Codes don’t seem to be updated = wasted time & inefficiency.

Once tried to order napkins & found out the code no longer

existed. Need clear and easy to read print-outs of up to date

codes”

Problem

RECOMMENDATIONS

Confusing order-sheet & coding

Audit GFS Order Sheet:• Request latest code sheet

• Ensure GFS is providing

updates to UBC at the start of

each term

Solution 1-Page Sell Sheet:

• GFS Order codes

• MSRP

• Lower price per mL than

competition

• Local production in line with UBC

sustainability goals

• Cheaper for consumer, better

margin for UBC Food Services

Solution

RECOMMENDATIONS

Meetings / Memos at the Beginning of Each

Term

Audit GFS Order Sheet

1-Page Sell Sheet

Solutions

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Analysis

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Stakeholder Actions

• Training Meeting / Memo each term

• Define Predefined Shelf space

• Install POS Materials

• Potential Store Audits

• Promotion Events 2x per term

• Develop POS Displays / Price Tags

• 1-Page Sell Sheet

• Hire and Manage UBC Brand Ambassador

• Geo Targeted Ad Words

• Audit GFS Order Sheet

IMPLEMENTATION

2014

IMPLEMENTATION

Timeline – Happy Planet

May June July AugSep

tOct Nov Dec Jan Feb Mar Apr

Audit Codebooks

Develop POS Displays

On-Campus Events MT MT

Geo Targeting Ad Words

2015

2014

IMPLEMENTATION

Timeline – UBC Food Services

May June July AugSep

tOct Nov Dec Jan Feb Mar Apr

Allocate Designated Shelf Space

Install POS Materials

Employee Training

Store Audits

2015

Happy Planet – UBC Brand Ambassador

• 1 UBC students

• 4-5 hours per week

• $16 / hour

$1920 / year + samples

(5hr x 24 semester weeks x $16/hr)

APPENDIXES

Total Stock Monday Wednesday Thursday Friday0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

30.0% 31.3%29.4%

27.0%

37.8%

70.0% 68.7%70.6%

73.0%

62.2%

Product Stock

OdwallaHappy Planet

APPENDIXES

APPENDIXES

Odwalla Happy Planet No preference0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

14%

40%

47%

Product Preference

Almost 3x as many students prefer Happy Planet than

Odwalla

Odwalla Happy Planet No preference0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Product Preference

Happy Planet Odwalla

Avg. Estimated Price $3.44 $3.02

Avg. Willingness to Pay $2.50 $2.38

APPENDIXES

Domestic BC Domestic nonBC International Total $-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$3.57 $3.56

$3.06

$3.44

$3.14 $3.26

$2.58

$3.02

Estimated Price

Happy PlanetOdwalla

International Students expect lower prices for Smoothies

APPENDIXES

APPENDIXES

Domestic BC Domestic nonBC International Total0%

10%

20%

30%

40%

50%

60%

70%

43%

50%

23%

40%

13%

7%

19%

14%

44%43%

58%

47%

Regional Status Product Pref-erences

Happy Planet Odwalla No Preference

Canadians prefer HP International Students have no preference

0 1 to 3 4 to 6 7 to 9 $-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$3.23

$3.64

$3.22

$2.99

$2.90 $3.11 $3.07

$2.10

Expected Smoothie Product Price Relative to Freq of Coffee Purchase

Expected Price HPExpected Od

APPENDIXES