Development of value proposition for crickets and crickets food products for BoP market in Central Uganda. Market Research Executed by B-Space

Transcription

1 Development of value proposition for crickets and crickets food products for BoP market in Central Uganda Market Research Executed by B-Space Co-creation Workshop, May 22 nd, 2014

2 Business Objective How can we get crickets to take off in the Ugandan BoP Consumer market

3 Research Objectives Develop Value Proposition for Crickets for BoP Consumers in Central Uganda Market Intelligence Consumer Intelligence Map insect food market, stage of cricket market Current acceptation, key drivers & roadblocks for consumption Look into potential for retail-environment Potential product variations Main influencers in (insect) food consumption

4 Iterative approach of Research 1/ Desk Study 2/ Retail Audit 3/ Expert workshop 4/ Sensory Test 5/ Consumer panel

5 1/ Desk Study 2/ Retail Audit 3/ Expert workshop 4/ Sensory Test 5/ Consumer panel Quick dive into insect market, info from open sources

6 Insect Food market Insect Foods in general Crickets Grasshoppers (nsenene) & White Ants/ termites (nswa) are accepted as food products in market. Grasshoppers = mature market White ants = regional Both are seasonal Caught not only for direct consumption, but also for commercial purposes Willingess to Buy Grasshoppers* 32% Willing 38% Unwilling 30% Undecided Crickets (kanyenyenkule/ bunyenyenkule/ ekijere) are currently being reared But not found on the market yet as food products Current: chicken fodder (< egg production) Available year round (reared) Source: Food composition table for East and Central Africa, Christine Hotz, 2008

7 Acceptability Grasshoppers (benchmark) Acceptability grasshoppers Cultural delicacy Fresh, dried, salted with unions Snack, throughout day Shelf life. Fresh 12 hrs, Dried 3 months Roadblocks Grasshoppers Cultural, in some clans Do not eat own food (Nsenene) Makes women cheat or carry deformed babies

8 Nutritional value Insects vs. the Usual Dinner Fare Nutritional Value * Insects vs. Usual Dinner Fare (per 100g serving) Fat (g) Protein (g) Carbs (g) Pork Beef Chicken Silverfish Grasshoppers Ants Termite Cricket Eggs Meal Worms What we know, but the market may not know yet, is that crickets are a great source of Fat, Protein and Calcium 100 gr of crickets deliver around half of amount of protein of meat BoP in Uganda currently only consumes meat on special occasions (Christmas) Potential to position as low-cost meat alternative? Source:

9 1/ Desk Study 2/ Retail Audit 3/ Expert workshop 4/ Sensory Test 5/ Consumer panel Take a deep dive with experts in the Insect Food market to get more insights in acceptability, positioning strategies, drivers, roadblocks, consumer segmentation and pricing Source 2/ Retailers. Surveys (n=80) Source 3/ Producers, wholesalers, processers, retailers, consumers. Workshop setting (n=25)

10 Awareness of insects as food products Grasshoppers & White Ants most accepted insects in food market Ugandans are aware of the existence of large crickets, but few consider crickets as edible. There is no awareness that crickets are sold on the market as food products Available Insects foods that are edible? 1. Grasshoppers Insects foods currently being sold on the market? 1. Grasshoppers ( 60%) 2. White Ants 2. White Ants ( 40%) 3. Large Crickets 3. Large Crickets (0%) 4. Worms (0%) Base: n=80 people in Masaka and Kampala: Harvesters, Retailers, Wholesalers and Manufacturers of Insect food items. Base: n=25 Insect Food experts (Producers, Wholesalers, Processors, Retailers, Knowledge Institutes)

11 Consumer Habits Insect Food products Competing products to Insect Food (according to retailer) 1 Crisps 6 Gollilos 2 Cakes 7 Munchies 3 Pop Corns 8 Biscuits 4 Fried Nuts 9 Roasted Nuts & Corns 5 Banana Crisps 10 Soya Nuts Insect food is currently considered as snack food, with crisps, cakes and popcorn considered as the main competitors. When looking at what retailers consider as key competitors of insect foods, we can conclude that nutrition is not (yet) key in driving consumption. People not (yet) seem to consider that Insect foods can be a meal component Format in which insects are mostly being sold 1 Fresh 2 Fried (processed) 3 Dried 4 Boiled 5 Smoked 6 Frozen Key outlets where insect food products are being sold 1 Market places 2 Road side 3 Direct at Farms/ Traps 4 Supermarkets Locations where people will look for insect food are mainly market places and road sides. Supermarkets to a lesser extent, as they are usually more expensive and mostly sell pre-packed food (insect food is currently not offered in pre-packed formats). Bars/restaurants would also be interesting to explore further, as we found in earlier stages that roasted insects go well with beer & wodka Interviewed 80 people in Masaka and Kampala: Harvesters, Retailers, Wholesalers and Manufacturers of Insect food items.

12 Insect Food Experts on Main Benefits of Insect Food Nutritious Source of protein and fats Tasty Affordable Natural Ease of preparation Base: n=25 Insect Food experts (Producers, Wholesalers, Processors, Retailers, Knowledge Institutes)

13 Sensory Test Crickets with Insect Food experts Roasted variant of cricket was tested in workshop setting Some hesitation to try initially, driven by: o Fear of look of cricket (unprocessed) o Low expectations of taste Gut feeling, first time First time is not easy Fear Hesitant Form in which crickets were presented But when people actually ate the product they were positively surprised: o Found them tasty and sweet o Compared with taste experience of white ants. Advantage of crickets = more meat Tasty! Taste like white ants, but bigger Sweet First time to taste, want more now Can make a good sauce with groundnuts Base: n=25 Insect Food experts (Producers, Wholesalers, Processors, Retailers, Knowledge Institutes)

14 Cricket as a snack vs. meal component To snack or not to snack? Insect foods are currently seen as snack food. Is this also the way to go for crickets? Or are there other ways/ formats how crickets can be presented in order to maximize attractiveness? Also, does cricket as a meal component resonate with the consumer (like with silverfish)? Suggestions of cricket food products from workshop: o Sauce with groundnuts & beans o In flour form o In liquid form o As an ingredient in other food products (e.g. chapattis, samosa s, cookies) o Last but not least, cricket as a snack, fried and in whole Base: n=25 Insect Food experts (Producers, Wholesalers, Processors, Retailers, Knowledge Institutes)

15 Consumer segmentation & Targeting If men buy insect food, then they usually buy processed form, ready to eat as a snack. When women buy, than they usually buy fresh insects, they want to determine how to prepare them. Consumers of Insect Foods by Ages According to Retailers, Insect Foods is most popular among young adults (25-44). Cultural beliefs that insects cannot be consumed prevail among those being aged Years Years Years Years Years Above 65 Years Retailers expect that lower income classes are more likely to buy Insect Foods (¾ of anticipated Insect Food consumer have an income <$235 monthly ( $8 daily) Although retailers expect the higher income classes to buy in larger quantities. Interviewed 80 people in Masaka and Kampala: Harvesters, Retailers, Wholesalers and Manufacturers of Insect food items. Monthly income Expectations of distribution of income level of consumers Distribution Cumulative <$40 15% 15% $40 - $79 14% 29% $80 - $119 19% 48% $120- $155 11% 59% $156- $199 6% 65% $200 - $235 10% 75% $236 - $315 4% 79% $316 - $355 8% 86% $356 - $393 5% 91% $394 - $433 5% 96% >$433 4% 100%

16 Price indicators (Grasshoppers) Bag of fresh grasshoppers = kgs 2 Tumpeco cups of grasshoppers 1 kg Pricing is determined by : Location where products are sold (supermarket, market, urban vs rural) How far away selling point is from source Format in which they are being sold. Processing the crickets (fresh -> dried/ fried) increases value of around 25-40% Peak season (April/ May & November/ December) Low Season Fresh (kg) Producer -> Processor 3,500 7,000 UGX 7,500 12,000 UGX Processed (kg) (dried/ fried etc.) Processor -> Retailer or Consumer 5,000 10,000 UGX 7,000 15,000 UGX From Retailer -> Consumer 6,000 12,000 UGX 8,000 17,000 UGX

17 1/ Desk Study 2/ Retail Audit 3/ Expert workshop 4/ Sensory Test 5/ Consumer panel Investigate perception and acceptability of crickets as a food product in real life setting.

18 Preparation & Setting Cricket food variations locally prepared and being sampled at a tent at strategic point of nsenene market in Masaka

19 Variations presented Roasted crickets as snack Samosa made of peas, mixed with crickets Chapattis, made of wheat flour mixed with crickets Ground nut sauce mixed with crickets (same preparation as silverfish sauce) Beans sauce mixed with crickets (same preparation as silverfish sauce)

20 Scenery Bypassers were invited to try food items that contain cricket Consumer profiling (age, gender, social class) Core questions: Q 1: What is your preferred food variation of crickets? Q 2: What would drive purchase? Q 3: What, if anything, holds you back?

21 Willingness to try the figures Rejected all types of crickets Not socially convinced, but open for crickets as ingredient in other foods Tasted after social influence Tasted without social influence % of respondents Initially not willing to try crickets 99% had not tasted crickets before nor seen them being offered as food product either. Presented in roasted form as a whole, offered for free Low willingness to try initially (33%). Around 70% of those who were initially not willing to try the crickets opened up because of peer influence (see next slides) In the end, 20% of the total sample wasn t willing to try the roasted crickets. Crickets presented as ingredient of popular dishes, offered for free Of the 20% that were unwilling to try, 30% were actually willing to try recipes (samosa s, bean and groundnut sauce) with cricket as a ingredient. Total Sample (n=150) In the end, 87% of the sample were open to try crickets or food products with crickets as a key ingredient. Interviewed 150 people in Masaka, 53% male, 47% female, good mix in ages

22 Preferred food format Preferred food variation of Crickets 1 Snack (31%) 2 Sauce (Groundnut or Bean) (30%) 3 Ingredient (9%) 4 Processed flour(e.g. (7%) When people have to choose their preferred format for cricket consumption, snack and sauce come out as most popular formats The highest preference of a snack format, can be partly be explained by how insect food is currently consumed (habits) and positioned in the market. Interestingly, even though people are not familiar yet with insects as a ingredient of food, there is high acceptance of crickets as a ingredient in groundnut and bean sauce. 5 Other forms (23%) (alcohol, flour, baby food, beverage) Furthermore, preliminary findings on pricing suggest that cricket as a additional ingredient in food products justify a more premium price (+5-10% price addition) positioning. Interviewed 150 people in Masaka, 53% male, 47% female, good mix in ages

23 Opening up market, entry points Peer influence Peers proved to be an extremely powerful source of influence; around 70% of those who were initially not willing to try the roasted crickets, were convinced to do so by peers Disguised in food A third of those who rejected to taste roasted crickets, were actually open to taste cricket food products, where the insects were disquised : samosa s, bean sauce and groundnut sauce with pieces of crickets in it. And once tried, they admitted that crickets tasted well in these recipes. Carrier of nutrition Less than 30% was aware that crickets offer nutritional value Crickets are spontaneously compared with grasshoppers and white ants, which are rich in protein Crickets are also being compared with silverfish, perceived as having curing power and deliver essential nutrients. Familiar taste white ants Those that tasted crickets reinforced that they taste like white ants This finding appeared to be a convincing argument to let peers try crickets as well Interviewed 150 people in Masaka, 53% male, 47% female, good mix in ages

24 Opening up market, Roadblocks No active demand Percentage of people who tried crickets as food product in the past is negligible Crickets aren t directly accepted as edible Consumers need to be convinced and tempted to try first Effort, time and money needs to be invested in marketing and education of consumer on benefits of cricket foods. Appearance doesn t trigger associations with being tasty Around 50% who rejected trial initially were put off by the appearance, but an unattractive smell also played a role. The dark colour of the insects doesn t seem to trigger associations with being tasty. Furthermore, appearance of crickets resemble those of cockroaches, which are not considered to be edible. Culture Around 20% think that cultural backgrounds holds people back from eating crickets. Some tribes use insects as their totems and cannot eat their own food. Some discouragement for women and elderly to eat insects. Interviewed 150 people in Masaka, 53% male, 47% female, good mix in ages

25 1/ Desk Study 2/ Retail Audit 3/ Expert workshop 4/ Sensory Test 5/ Consumer panel Derive deeper insights in best way to popularize crickets in the market

26 E.g. Spontaneous associations cricket as food (product) What is currently withholding consumption of crickets (awareness, perception, knowledge) What type of benefit would open up most consumers to try Expectations of taste vs. actual experience Capture willingness to try without social influence Format in which cricket is easiest to accept (recognized, ingredient, disguised) Are people willing to pay more for food variations with crickets? Do people see added value of cricket as ingredient