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  • 8/11/2019 Greek Yogurt E Book FINAL Lores

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    Why Greek Yogurt is Poised to Become the

    Worlds Next Consumer Products Super Trend

    An E-Report by

    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    GREEK

    YOGURT REVOLUTION

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    inGAME CHANGERS

    1

    The Great CarbCrash of 2004

    According to Frozen Food Digest ,

    shares of American Italian Pasta

    (maker of Muellers pasta) plunged

    3.8% in 2004, shedding $21.5 million

    in shareholder value. That same year,

    potato chip maker Jays Food entered

    bankruptcy after sales fell 10%.

    What caused this sudden reversal of

    fortune for these otherwise solid brands?

    The Atkins Diet.

    In 2004, more than 24 million

    American adults were hooked on a low

    carb diet created by Dr. Robert Atkins.

    Brands quickly responded by launching

    low carb products while others, like

    Kraft, ramped up advertising of Atkins-

    friendly products including Jell-O.

    Other brands like Krispy Kreme, were

    caught completely off guard, unable to

    cope with the low carb backlash.

    That year, the Los Angeles Times

    reported that Krispy Kreme missed

    prot forecasts by 10%. Shares tumbled

    29% in one day after reaching a peak

    of almost $50 a share in late 2003.

    By comparison, brands, like Slim Jim,

    proted from the trend as sales for

    protein-rich beef jerky increased

    40% from 2002-2003, according to

    Slate.com.

    Americans have a love affair with dieting and health. Everyfew years, a health obsession breaks into the consumer

    products landscape and radically redenes how consumers

    perceive and purchase products.

    Examples include:

    The low calorie dieting trend of the late 1970s and early1980s that spawned diet soda and frozen diet meals.

    The antioxidant trend of the 2000s, increasing demandfor everyday foods - like berries, chocolate and wine which claimed to be high in antioxidant properties.

    Increased awareness of celiac disease, which has driven

    demand for gluten free products.

    3 Types of Food Health TrendsHealth trends have a massive inuence over consumersbuying behavior. Learning how to quickly capitalize on anemerging trend can mean millions for any CPG company. Butwith so many trends coming and going, which ones presentthe best long term opportunities?

    Not all trends are created equal. In fact, they usually fall into

    one of three distinct buckets.

    Niche: These trends emerge from a new health ingredient,like Quinoa or Kale, or the re-discovered health propertiesof a classic food item like ax (Omega 3). They typicallycatch on with health conscious consumers but are limited tothe natural food aisles, so penetration is relatively small.

    Mainstream: These trends cross multiple food categoriesand reect wide scale consumer demand. A goodexample is the Added Protein trend, seen in productslike pasta, snacks and cereal. These trends have thepower to create a sub-tier within a large category, just asgluten-free or low carb products have done.

    Super Trends: These trends have the power to defycategory limitations, break out of food aisles and crossinto other protable category areas. For marketers, thesetrends are the equivalent of nding the Holy Grail. To reachthis stage, a trend must become a brand unto itself.

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    The Power of Health Trends in Consumer Products

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    in

    The Antioxidants Super Trend The most recent example of a Super Trend is antioxidants.Today, antioxidant health claims can be found extensivelyacross food products as well as health and beauty products,including anti-wrinkle creams and soaps. These products claimto be good for your internal health as well as external healthhelping to remove wrinkles, reduce the appearance of scarsand reverse sun damage. According to Packaged Facts, 44%of women in the U.S. buy skincare or cosmetic products thatpromote their antioxidant content.

    Mining the next Super Trend While green tea has shown potential to be a Super Trend

    - breaking into multiple categories within food, health andbeauty it hasnt had the widespread success of antioxidants.Similarly, oatmeal has had a long standing reputation acrossfood and beauty categories, but doesnt generate the samebuzz or interest as antioxidants.

    The newest example of a Super Trend is Greek yogurt. Ithas the perfect combination of benets and brand powerto expand across categories and sustain its growth over anextended period of time.

    What Causes a Trendto Explode?Experts say there are several factorsthat need to work together:

    1. Advocates : A well respectedevangelist or promoter of the trend,

    such as a celebrity chef.

    2. Validity : Trends that are supported

    by credible scientic fact (like gluten

    free) are more likely to catch on.

    3. Buzz Appeal : The exoticness or

    uniqueness of the trend can help it

    spread, especially with social media

    effort behind it.

    4. Economic conditions : One of the

    factors that has made Kale and other

    super vegetables popular has been the

    movement away from meat due to cost.

    5. Larger social benets : Consumers

    like ingredients that are healthy for

    the planet as well as the body, which

    is part of the popularity of Quinoa,

    grown without pesticides.

    6. Consumer boredom : Underpinning

    any trend is the natural curiosity and

    demand among consumers for things

    that are new and different. Thats why

    most trends are short term, running

    their course in 18 months.

    (Food Business.net, March 2013)

    THE HOLY GRAIL OF INNOVATION

    Unlike Niche and Mainstream trends, Super Trends are rare. To qualify as a Super Trend it must havebenets that extend across a diverse range of categories. It must also have a powerful brand, withconsumers trusting in the ingredient or process driving the trend.

    Most health trends start and stay within food because the benets are restricted to things that can beconsumed. As an example, the whole wheat trend would not be relevant to a category like beauty. But

    sporadically a trend appears that has the ability to dominate in food but also breakthrough to non-consumable areas.

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    2

    How to Spot a Super Trend

    ANTIOXIDANTS A RARE SUPER TREND THAT HASSUCCEEDED IN BOTH FOOD AND BEAUTY

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    inBREAKING THE MOLD

    3

    Why Greek yogurt is the Next Super Trend

    Whats driving theGreek yogurt food craze?

    Greek yogurt has been produced

    in Greece for hundreds of years,

    but it was rst imported to the

    U.S. in 1998 by yogurt brand FAGE.

    Since then, Chobani has emerged

    as the dominant leader in what is

    now a $1.6 billion market that grew

    by 50% last year, according to the

    Wall Street Journal .

    Of all the current major food trends, Greek yogurt is best positioned tobecome a Super Trend. Several facts support this:

    1. Brand Power and Consumer Buzz : When it rst came to the U.S. in thelate 90s, Greek yogurt was little known. But driven by its health claims,including lower sugar and higher protein content, it quickly movedmainstream. Today, Greek yogurt is a $1.6 billion market and the fastestgrowing food segment among U.S. households, accounting for 35% of allyogurt sales, up from 1% in 2007. (Wall Street Journal)

    2. Believable health claims : The same health properties that also makeGreek yogurt a desirable food (protein and vitamins) are benetsconsumers often seek in products for skin and hair. In fact, Greek yogurt isoften used in home remedies, such as facial creams for removing wrinkles

    and nourishing the skin. These property based claims give marketers anopportunity to position Greek yogurt as a natural solution for beauty needs.

    3 . Opportunity : According to MarketResearch.com, the natural beautymarket is estimated to reach $13.6 billion in 2016. With consumer demandat an all time high, Greek yogurt is well positioned to become the nextsexy health and beauty trend. Outside of Sephora no major nationalbrand is marketing Greek yogurt health and beauty products on amainstream level. In essence, the market is wide open.

    Exploring Greek yogurts Super QualitiesInspired by the opportunity seen in the market, Affinnova sought tounderstand whether Greek yogurt could indeed be the next Super Trend.

    Using Power Screener technology - which identies product innovationopportunities - Affinnova tested 40 prospective Greek yogurt productideas on consumers. These ideas ranged from Greek yogurt pancakemix to chewing gum and even dog treats. The goal was not to predict orguarantee which new products would succeed in market but simply tohighlight potential overlooked areas of opportunity that might warrantfurther exploration and investigation by marketers.

    How did we pick these product ideas? We included a mix of food and beauty products to show

    Greek yogurts wide extensibility.

    We included select pet categories with the hypothesis that petowners would want to give pets a protein boost.

    For food products, we looked at areas where the benets ofGreek yogurt could be seen as believable and extensible.

    For beauty, we looked at areas where protein and vitaminswould be considered benecial.

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    It is typically higher in

    protein, lower in lactose

    and lower in carbohydrates

    than other types of yogurt.This makes it a healthier

    substitute for regular

    yogurt and other high

    sugar breakfast options and

    snacks.

    Thicker in texture than

    regular yogurt, it makes

    for a more lling breakfast

    or lunch.

    Its perceived as more natural

    and wholesome, aligning

    with the trend of eating

    more organically produced

    foods.

    At nearly twice the cost of

    regular yogurt, Greek yogurt

    has become a status symbol.

    Greek yogurts popularity

    can be attributed to a

    number of factors, according

    to Restaurants.com:

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    inTHE INSIDE SCOOP

    4

    A new product needs a perfect storm to catch re with consumers. First and foremost it must offer anadvantage over products already in market, but also a uniqueness, or sexiness that makes it stand out.To understand which new Greek yogurt ideas would succeed, Affinnovas Power Screener technology

    used consumer feedback to rate ideas on two dimensions:

    Advantage : Identies products that have immediate perceived benets over other productsin the market.

    New and Di erent : Identies products that have the best potential to stand out and differentiateamong other products in the category. In other words, they grab attention.

    Products that score high in both areas have the best opportunities for truebreakthrough innovation

    How We Made Our Assessment

    Predictable Extensions : Ideas in this

    zone score high in Advantage , but below

    average in New and Different . Consumers

    want these products, but see them as

    predictable extensions of Greek yogurt

    products already in market.

    Headline Makers : Because of their

    above average scores for Advantage and

    New and Different , ideas in this zone have

    the best opportunity to stand out in themarket and make an impact.

    Wild Cards : Ideas in this group score

    below average in Advantage , but have

    high overall appeal to consumers because

    they score well above average for New

    and Different . With the right marketing,

    they could emerge as niche opportunities.

    Dead Ends : Ideas in this group showed

    the least appeal to consumers relative tothe other ideas tested and likely would

    not succeed in the short term.

    Power Screener Methodology

    Online, a panel of 800 U.S. consumers were shown brief descriptions of Greek yogurt product ideas with key benets. Consumers then chose preferred concepts based on theabove dimensions in a discrete choice exercise. From this, high impact ideas separatedfrom low impact ones until 4 distinct categories emerged, as shown in the graphic above.

    PredictableExtensions

    HeadlineMakers

    WildCards

    DeadEnds

    A d v a n t a g e ( i

    n d

    e x v s

    . a v e r a g e c o n c e p t )

    New & Different (index vs. average concept)

    0

    0

    50

    50

    100

    100

    150

    150

    200

    200

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    inPREDICTABLE EXTENSIONS

    5

    The following ideas scored high in Advantage overcurrent products, making them good opportunities formarketers looking to extend a line with Greek yogurt.

    Consumers inherently understand Greek yogurtsconnection to these products, especially the potential tomake these foods healthier and creamier. The downside:Consumers wouldnt credit these products as beingNew and Different . They lack the sexiness of radicallyinnovative products.

    Benefits, Without the Buzz .

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    +107

    -22

    +88

    -8

    +58

    -1

    +64

    -23

    INDEXEDAVG

    +52

    0

    VITAMIN/ CHEWS

    ICECREAM DIPS

    SALADDRESSING

    READY-TO-DRINK-

    SMOOTHIES

    Advantage versus theaverage index of ideas tested

    New and Different versus theaverage index of ideas tested

    Demographic Snapshot Salad Dressing was highly popular with female consumers,

    while Ice Cream dominated with men.

    Ready-to-Serve Smoothies scored highest overall with

    consumers 18-34.

    Dips scored highest overall with consumers 55 and older.

    Biggest Advantage for Health& Beauty: Vitamins/Chews

    Based on the data, Vitamins/Chews

    made with Greek yogurt were thought to

    offer a distinct advantage over current

    vitamin products. With the perception

    of being easy on the stomach, tastier

    and offering a good natural source of

    calcium and protein, this was an easy leap

    for consumers.

    According to Research and Markets, the

    dietary supplement industry is slated to

    be the worlds fastest growing market

    during 2012-2017. Greek yogurt vitamins

    specically in chewable form could

    present an opportunity for companies

    like Centrum , GNC and Nature Made to

    differentiate with a product boasting

    natural protein claims.

    Consumersuggested namesfor this product:

    In 2012, Jamba introduced a Drink atHome Greek yogurt smoothie, made with

    super fruits like Acai and Pomegranates.It promised 50% more protein than

    Jambas traditional smoothies as wellas antioxidant benets. Affinnovas data

    suggests this could be a high growtharea in the future, and something leading

    smoothie brands like Odwalla ( CocaCola ) and Naked Juice ( Pepsi ) shouldtake note of.

    Smooth sailing ahead for Greekyogurt smoothies

    R E A L P R O D U C T

    Yo Vitamins Greek Chews Atlas Bites Vitabites

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    inHEADLINE MAKERS

    6

    Ice Cream and Dips seem like natural extensions of Greek yogurt, but Greek yogurt Baking Mix? Thats not aneasy leap, yet the data shows that consumers see Greek

    yogurt as a great way to make these foods healthier, sothey can indulge more. Equally surprising was consumersinterest in Greek yogurt Toothpaste and Baby DiaperRash Cream. Scoring high in both Advantage and Newand Different , these products have an opportunity tomake headlines AND deliver healthy benets consumersnd believable.

    The Sweet Spot of Innovation .

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    +75

    +8+17

    +3

    +49

    +70

    +44

    +36

    +10

    INDEXEDAVG

    +21

    ANTI-WRINKLE

    CREAM

    BAKINGMIX

    FROZENBREAKFAST

    BABYDIAPERCREAM

    TOOTH-PASTE

    Advantage versus theaverage index of ideas tested

    New and Different versus theaverage index of ideas tested

    Demographic Snapshot Anti-Aging Cream scored highest with Hispanics, health

    conscious consumers and consumers 55 and older.

    Baking Mix scored highest with women and consumers 18-34.

    Frozen Breakfast Mix scored #1 among all product ideas

    with Hispanics.

    Biggest BreakthroughOpportunity: Greek yogurtAnti-Wrinkle Cream

    According to Beauty Store Businessmagazine, the natural and organic beautymarket stands at $10 billion, with growthbeing driven by all-natural facial creamsusing ingredients such cucumber, aloe,

    honey and green tea.

    As consumers seek the next big ingredient,

    Greek yogurt Anti-Wrinkle cream could be

    an intriguing option. Based on the data,

    Anti-Wrinkle Cream presents the best

    breakthrough opportunity for Greek yogurtinnovation in the health and beauty space,

    scoring highest among all possibilities in

    Advantage and New and Different .

    While not making the top of the list, Facial

    Wash and Blemish / Spot Treatment

    also scored fairly high. Brands like Olay ,

    Neutrogena , LOreal might consider

    starting a line of Greek yogurt facial

    products with Anti-Wrinkle Cream.

    According to Euromonitor, sales of all-naturalbaby care in the United States increased68% from 2005 to 2010. Based on the data,

    Greek yogurt Baby Diaper Cream could bea very viable entry in this space for brandslike Desitin , Bourdreauxs Butt Paste and

    Triple Paste . The product was popular withwomen, who would expect this product tooffer a more safe and natural alternativefor nourishing a babys skin.

    Introducing...

    Greek Bottoms?

    P O T E N T I A L P R O D U C T

    Consumersuggested namesfor this product: Grecian Secret

    Goddess Greek Answer

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    inWILD CARDS

    7

    Some ideas are ahead of their time: Crystal Pepsi is anexample. The following products represent ideas that maynot quite be ready for primetime, yet deserve watching.

    Consumers struggled to make sense of Greek yogurts twith these products, even though the benets are there.These products scored below average in Advantage , butbeat out other product ideas tested because of their high

    scores for New and Different . With more exploration intodifferent claims, messages and value propositions that couldresonate with consumers, they might be an interesting niche

    play for brands in the organic personal care space.

    Interesting, but Not Ready for Primetime .

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    +73 +76

    -26

    INDEXEDAVG

    DEODORANT / ANTIPERSPIRANT

    FLUSHABLEWIPES

    Advantage versus theaverage index of ideas tested

    New and Different versus theaverage index of ideas tested

    Demographic Snapshot As a product idea, Greek yogurt Deodorant / Antiperspirant

    scored highest among Hispanics.

    Top Idea to Watch: GreekDeodorant / Antiperspirant

    According to research rm Mintel, the

    deodorant and antiperspirant industry

    experienced 16% growth between 2006

    and 2011. However, all-natural / organic

    offerings made up a very small share.

    Data shows that only one in 10 people

    use antiperspirant/deodorant with all-

    natural ingredients, and fewer than onein 20 buy all-organic products. This could

    make selling an all-natural, Greek yogurt

    deodorant an uphill climb for marketers.

    Greek yogurts perceived benets as

    being more soothing and nourishing for

    the skin, however, could help, as more

    than 14% of women and 16% of men report

    having skin easily irritated by deodorant.Earths Best or Toms of Maine might be

    able to capitalize. (Mintel)Smithers Apex predicts that thetotal market for ushable wipes will

    grow 12.1% annually to reach $2.4billion by 2018. This presents anopportunity for brands like Charmin ,

    Cottonelle , Kimberly Clarke andeven private label store brands tocater to organic customers by positioning Greek yogurt wipes as anatural, chemical free solution to what they have now. Our data showsthat consumers would perceive Greek yogurt wipes as softening the

    skin, further strengthening the products appeal.

    Wiping Up the Sales

    P O T E N T I A L P R O D U C T

    Consumersuggested namesfor this product: Greek Stick

    Touch of Greek Acropolis

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    inDEAD ENDS

    8

    The following ideas ranked last in our study, based onthe weighted average of their scores for Advantage andNew and Different . In the immediate term, these products

    would likely not appeal to consumers. In some instancesverbatim feedback on a number of these product ideaswere sharply negative.

    The Sourest of the Bunch .

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    -71-58 -55

    -37-34

    +21+30

    +76

    -6

    +14

    -23

    INDEXEDAVG

    CATFOOD

    TREATS

    CHEWINGGUM

    DOGFOOD

    TREATS

    AFTERSHAVE

    BUBBLEBATH

    PROTEINPOWDER

    SHAMPOO

    Advantage versus theaverage index of ideas tested

    New and Different versus theaverage index of ideas tested

    Demographic Snapshot

    Biggest Loser: Greek yogurtCat Food Treats

    Consumers do not see pet products as astrong area for Greek yogurt expansion.

    Some expressed concern about feeding

    their pets dairy; others thought the idea

    was downright crazy. That being said,brands like Blue Bu alo and Wellness do

    offer a range of cat and dog treats made

    with yogurt (not Greek specically).

    Yogies offer similar yogurt-based treats

    for hamsters. With the natural and

    organic pet food market poised to grow

    15% by 2016 from where it was in 2011

    (Mintel), there could eventually be room

    for a Greek yogurt pet food play. Only

    time will tell.

    Greek yogurt shampoo did not resonate withconsumers which isnt surprising. Yogurt has

    tried to break into shampoo before and failed,miserably. The classic example was ClairolTouch of Yogurt Shampoo. Launched in 1979,this product was touted as having essentialvitamins and minerals to strengthen hair. Ittested well with consumers, but ultimatelyfailed in market because consumers feltwary about putting food in their hair. Many

    got sick when they actually tried to consumethe product.

    A Bad Idea Remains a Bad Idea

    R E A L P R O D U C T

    -19 -15

    -23

    Consumersuggested namesfor this product: Kitty Gaga

    Meowgurt Greeky Treats

    Shampoo scored lowest with women.

    Bubble Bath scored lowest with consumers 55 and older.

    Dog treats scored lowest with Hispanics.

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    inLAST BITE

    9

    Actions for MarketersBecause of their cultural power, trends such as Greek yogurt present a tremendous challenge andopportunity for consumer brands. Jump in at the right time and you can achieve a huge position ofdifferentiation and competitive advantage for your brand; wait too long and a brand could forever be

    squeezed out of a fast-booming market. With so much at stake, its critically important for marketers toexplore all the potential ways they (or their competitors) can capitalize on fast-moving trends.

    Contact Us!

    Interested in Learning More?

    Get the Full Data and Findings from Our Study

    To help brands understand the potential for Greekyogurt innovation within their category, Affinnova hasgathered extensive consumer insight from the studycovered in this report. This includes:

    The full ranking of all product ideas, broken outby demographic areas

    Worksheets containing ful l consumer verbatims,product name ideas and benets for eachproduct tested

    Other Greek yogurt ideas consumers suggestedin addition to the 40 tested

    To obtain the full ndings of the report or to receive our Greek yogurt concepts, contact Affinnova.

    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    Explore Greek yogurt ideas using ourReady-to-Go Concepts

    As part of this research, Affinnova created ready-to-go concepts that brands could use as jumping offpoints for further idea exploration and optimization,leveraging Affinnovas patented optimizationtechnology platform. These include sample productnames, features and benets gathered directly from800 U.S. consumers

    Key Take Aways

    Regularly challenge the boundaries of your category. When a new trend starts to emerge in themarket, get consumers involved in the process of evaluating and scanning for possible applicationsto your brand. Consumers can help you nd where a trend may be able to offer additional benetswhich are overlooked by marketers.

    Involve consumers in product brainstorming. Consumers are in the marketplace, evaluating andcomparing different products every day. Through crowdsourcing-type technologies, they can helpyou develop the right words to position and differentiate your product as well as make it believable.

    Evaluate your ideas on two dimensions looking at both Advantage and New and Di erent . Consumers naturally gravitate to ideas that are familiar and comfortable (like Greek yogurt IceCream), but sometimes its the ideas consumers nd New and Different that have the mostbreakthrough potential. Find ideas (like Anti-Wrinkle Cream) that strike a balance.

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    inAPPENDIX

    1 1

    Ranking of Top Health &Beauty Products in the Study

    Concepts Tested

    Anti-Aging / Wrinkle Cream 1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1 1

    12

    13

    14

    15

    16

    17

    18

    19

    20

    21

    175

    110

    121

    207

    78

    74

    126

    99

    124

    86

    138

    76

    123

    69

    70

    98

    66

    112

    111

    85

    63

    108

    170

    149

    78

    173

    177

    94

    106

    80

    107

    62

    112

    68

    120

    119

    80

    114

    66

    61

    77

    94

    Toothpaste

    Baby Diaper Rash Cream

    Vitamins / Chews

    Deodorant / Antiperspirant

    Flushable Wipes

    Face Wash

    Blemish / Spot Treatment

    Body Wash

    Sunscreen

    Daily Body Moisturizer

    Shaving Gel

    Daily Face Cream

    Dish Soap

    Pet Shampoo

    Hand / Foot Cream

    Bubble Bath

    Lip Balm

    Conditioner

    Shampoo

    After Shave Lotion

    WeightedRanking

    New &Di erentAdvantage

    The above shows 21 potential new Greek yogurt Health and Beauty products and how consumers ranked them,rst to last. Product ideas were scored on two dimensions: (1) By how much of an advantage the product offeredconsumers over existing products in the same category; and (2) By how new and different it was in their mind.The products were then ranked in a relative basis using the weighted average of both dimensions.

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    inAPPENDIX

    12

    Ranking of Top FoodProducts in the Study

    Concepts Tested

    Ice Cream

    Baking Mix

    Dips

    Salad Dressing

    Frozen Breakfast

    Ready-to-Drink Smoothies

    Packaged Cheese

    Cereal / Nutrition Bars

    Popsicles

    Breakfast Pastries

    Pasta Sauce

    Cereal

    Sandwich Spread

    Trail Mix

    Cookies

    Chewing Gum

    Protein Powder

    Dog Food / Treats

    Cat Food / Treats

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    1 1

    12

    13

    14

    15

    16

    17

    18

    19

    188

    144

    158

    152

    136

    164

    111

    128

    105

    118

    69

    123

    105

    107

    97

    42

    77

    45

    29

    92

    117

    99

    100

    103

    77

    106

    88

    102

    87

    145

    80

    89

    79

    79

    176

    81

    130

    121

    WeightedRanking

    New &Di erentAdvantage

    The above shows 19 potential new Greek yogurt food products and how consumers ranked them, rst to last.Product ideas were scored on two dimensions: (1) By how much of an advantage the product offered consumersover existing products in the same category; and (2) By how new and different it was in their mind. The

    products were then ranked in a relative basis using the weighted average of both dimensions.

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