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How can the business potential of products with health claims increase? - A case study of PrimaLiv

Gäre, Hanna and Göransson, Caroline (2007)
Packaging Logistics
Abstract
The purpose of this master thesis is to investigate the influencing factors of the busi-ness potential of products with health claims, using PrimaLiv as an example, and give recommendations on how a dairy producer, which is present in the Swedish market, could improve the sales rates of products with health claims. We have chosen to put a main focus on the consumers, since they determine the business potential. This is an unusual approach since most studies cover the producer's perspective. We thereby wish to contribute with new knowledge on the area in question. In order to understand the consumer's attitude towards products with health claims a questionnaire and a sensory analysis have been carried out as a complement to discussions in... (More)
The purpose of this master thesis is to investigate the influencing factors of the busi-ness potential of products with health claims, using PrimaLiv as an example, and give recommendations on how a dairy producer, which is present in the Swedish market, could improve the sales rates of products with health claims. We have chosen to put a main focus on the consumers, since they determine the business potential. This is an unusual approach since most studies cover the producer's perspective. We thereby wish to contribute with new knowledge on the area in question. In order to understand the consumer's attitude towards products with health claims a questionnaire and a sensory analysis have been carried out as a complement to discussions in focus groups. 36 persons, men and women, of various ages and with different backgrounds participated in the consumer investigation. Also, we have carried out a high number of interviews with people in the academic world, experts, important authorites, pro-ducers and retailers. Through covering all of the important actors, which influence the consumer we have mapped the situation on a systemic level.

The consumer investigation shows that consumers do not spontaneously put products with health claims into the category of healthy products. Instead, natural products like meat and fish, fruits and vegetables and fibre rich bread are associated with healthy products. Consumers are not willing to negotiate about the taste of a product just be-cause it is healthy and good taste is co-related to natural characteristics. Since natural taste associations create positive experiences, the flavour of a product with health claims should reflect something that is naturally healthy. It is also advantageous if the flavours are easy to recognize by the consumer. To make sure that the consumer's requirements concerning taste are fulfilled, a producer should invest in a sensory evaluation before launching the products in the market. The nutritional value of a product is also considered important so the keyhole symbol adds value to the product.

Further on, consumers express an unsecurity concerning how, when and why they should consume products with health claims and they are sceptical about the stated health effects. Moreover, products with health claims are more expensive than ordi-nary products, and to make the consumer willing to pay this additional cost he or she needs to understand the health effect. There are a number of channels in which a pro-ducer could communicate its message to the consumer. Our investigation shows that the most efficent way to reach potential buyers is to promote the products on the tele-vision, followed by magazines with a health approach. Another way is to network with health care professionals since consumers listen to and follows their recommen-dations. Today, health care professionals? have knowledge lacks about the effects of the products with health claims, which makes this group potential.

In order to create a high potential of a product with health claims, studies show that the health effect should be experienced in connection to the time of consumption as a guarantee from the producer that the product really has a health promoting effect. If the producer succeeds in this, the possibility of a second purchase increases.

The food industry is a market with intense competition and due to this fact it is impor-tant to build strong brands and products demanded by the consumer. There is no space for products with questionable taste and high price. The producer must know what kind of product design that is appealing to the consumer, which makes the prod-uct development process into a vital step. Money spent in this phase will be payed-off if spent on increasing the producer's knowledge about the consumer. (Less)
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author
Gäre, Hanna and Göransson, Caroline
supervisor
organization
year
type
H2 - Master's Degree (Two Years)
subject
keywords
'business potential', 'products with health claims', 'consumer perspective', Production technology, Produktionsteknik
language
English
id
1321145
date added to LUP
2007-07-02 00:00:00
date last changed
2010-02-01 14:40:04
@misc{1321145,
  abstract     = {{The purpose of this master thesis is to investigate the influencing factors of the busi-ness potential of products with health claims, using PrimaLiv as an example, and give recommendations on how a dairy producer, which is present in the Swedish market, could improve the sales rates of products with health claims. We have chosen to put a main focus on the consumers, since they determine the business potential. This is an unusual approach since most studies cover the producer's perspective. We thereby wish to contribute with new knowledge on the area in question. In order to understand the consumer's attitude towards products with health claims a questionnaire and a sensory analysis have been carried out as a complement to discussions in focus groups. 36 persons, men and women, of various ages and with different backgrounds participated in the consumer investigation. Also, we have carried out a high number of interviews with people in the academic world, experts, important authorites, pro-ducers and retailers. Through covering all of the important actors, which influence the consumer we have mapped the situation on a systemic level.

The consumer investigation shows that consumers do not spontaneously put products with health claims into the category of healthy products. Instead, natural products like meat and fish, fruits and vegetables and fibre rich bread are associated with healthy products. Consumers are not willing to negotiate about the taste of a product just be-cause it is healthy and good taste is co-related to natural characteristics. Since natural taste associations create positive experiences, the flavour of a product with health claims should reflect something that is naturally healthy. It is also advantageous if the flavours are easy to recognize by the consumer. To make sure that the consumer's requirements concerning taste are fulfilled, a producer should invest in a sensory evaluation before launching the products in the market. The nutritional value of a product is also considered important so the keyhole symbol adds value to the product.

Further on, consumers express an unsecurity concerning how, when and why they should consume products with health claims and they are sceptical about the stated health effects. Moreover, products with health claims are more expensive than ordi-nary products, and to make the consumer willing to pay this additional cost he or she needs to understand the health effect. There are a number of channels in which a pro-ducer could communicate its message to the consumer. Our investigation shows that the most efficent way to reach potential buyers is to promote the products on the tele-vision, followed by magazines with a health approach. Another way is to network with health care professionals since consumers listen to and follows their recommen-dations. Today, health care professionals? have knowledge lacks about the effects of the products with health claims, which makes this group potential.

In order to create a high potential of a product with health claims, studies show that the health effect should be experienced in connection to the time of consumption as a guarantee from the producer that the product really has a health promoting effect. If the producer succeeds in this, the possibility of a second purchase increases.

The food industry is a market with intense competition and due to this fact it is impor-tant to build strong brands and products demanded by the consumer. There is no space for products with questionable taste and high price. The producer must know what kind of product design that is appealing to the consumer, which makes the prod-uct development process into a vital step. Money spent in this phase will be payed-off if spent on increasing the producer's knowledge about the consumer.}},
  author       = {{Gäre, Hanna and Göransson, Caroline}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{How can the business potential of products with health claims increase? - A case study of PrimaLiv}},
  year         = {{2007}},
}