NFP Slide Show Brochure

1
NFP
Research

Business Solutions for the Foodservice Industry
Resources Capabilities
National Food Product Research Corporation
2
WHAT IS NFP ?

• NFP is an Independent Full Service Marketing
  Research Firm dedicated to enhancing Clients
  Knowledge-Based Decision-Making within the
  Foodservice Industry.
• NFP develops Data within Appropriate Operator and
  Consumer Markets, as well as the Manufacturer,
  Sales and Distribution Channels that supply them.
• NFP improves Sales Marketing Decision-making
  for Manufacturers, Operators and Marketers
  through Informed Analysis and Business Solutions.
• NFP is Business Solutions for Foodservice.

3
AREAS OF EXPERTISE
NFP Experience Offers Benchmarked Results

• Concept Screens / Prototype Evaluations
• Product, Service, Brand Packaging Evaluations
• In-Unit Product Testing / Controlled Test
  Markets
• Purchaser Studies
• Category Usage and Awareness Profiles
• Brand Usage and Awareness Studies
  
• Brand Equity/Power Studies
• Market Feasibility Studies
• Merchandising and POS Effectiveness Studies
• Claims Substantiation Research
• Customer Satisfaction Surveys
• Advertising Awareness Tracking

4
OPERATING PHILOSOPHY
Marketing Research leads to Good Business
Solutions

• Clear, Focused Objectives
• Appropriate Methodologies
• Confidential and Efficient Service
• Professional, Experienced Analysis
• Conclusions and Business Recommendations
• Good Business Solutions leading to Improved Sales
  and Profits

5
DEDICATED RESOURCES
Focused Teams Develop Useful Market Research

• Project Teams Headed by a Principal
• Experienced In-house Research Staff
• Dedicated Telephone Research Facilities
• Dedicated Internet Research Capabilities
• Computer Operations Center
• Product Logistics/Repackaging Capabilities

6
ANALYSIS, REPORTS PRESENTATIONS

• Effective Research
• Clear Focused Objectives
• Effective Field Procedures
• Meaningful Data
• Superior Analysis
• Experience Based Crisp, Insightful Analysis
• Up-to-date Technology
• Clearly Communicated Results with Charts
  Graphics
• In-person Principal Presentations
• Conclusions
• Actionable Recommendations
• Experienced Consultative Discussion
• Actionable Business Solutions for Improved
  Sales and Profits

7
OPERATING PRINCIPALS
NFP Provides Business Solutions Based on Solid
Market Research Combined with Extensive Industry
Experience.

• James T. Simonson
• Foodservice Marketing
• 30 years
• Major Corporations
• Marketing Consultancy
• Manufacturer/Operator
• Food/Non-Food
• Business Development
• Market Research

• John W. Sibley
• Market Research
• 30 years
• Major Corporations
• Research Consultancy
• Trade/Consumer
• Food/Non-Food
• Engineering
• Marketing

8
NATIONAL FOODSERVICE PANEL
NFP Provides Business Solutions Based on Solid
Market Research with The Professionals in Your
Target Markets.

• The Panel is One of NFPs Unique Resources
• 1000 Pre-recruited Foodservice Operators
• 800 Pre-recruited Operators Using the Internet
• Qualified Respondents with Menu Responsibility
• Access to Foodservice Units Their Patrons
• Effectively Limits Non-Response Bias
• Broad Flexibility to Develop Target Market
  Samples
• Consistent Sampling Procedures Support Relative
  Volume Potential Estimates
• Continual Recruitment Refreshment

9
NATIONAL FOODSERVICE PANEL
THE PANEL AT A GLANCE
NON-COMMERCIAL
COMMERCIAL
110
HOSPITALS
120
FAMILY RESTAURANTS
130
160
CASUAL RESTAURANTS
BUSINESS INDUSTRY
150
COLLEGE UNIVERSITY
100
HOTELS/RESORTS
SCHOOL DISTRICTS
60
30
FINE DINING
50
QUICK SERVICE
50
50
OTHERS
OTHERS
Sub cell of club store buyers available
10
NFP Business Solutions in Action

• Category Usage Attitudes Profiles Supported
  Clients Product Promotion Efforts
• Qualified Concept Appeal and Product Performance
  for New Product Lines Enhancing Successful
  Introductions.
• Provided Product/Profit Improvement
  Recommendations for RD Work on Existing and New
  Products.
• Qualified and Selected the Designs for the
  Introductions of New Lines of Disposable
  Products.
• Compared Original Formula to New/Improved
  Prototypes to Determine Which Formula Would Yield
  the Strongest Performance in the Foodservice
  Market.
• Evaluated the Installation and Test Phase of New
  Beverage Dispensing Equipment Detailing
  Significant Operational Shortcomings to Be
  Addressed Prior to Launch.

11
NFP Business Solutions in Action

• In-unit Product Tests Led to Major Chain
  Customers Adopting Clients Products.
• Purchaser Studies Developed Better Product
  Introduction Programs and Increased Client
  Profitability.
• Quantified Performance for Promotions and
  Recommended Major Changes.
• Proved to Operators that Branding Client
  Manufacturers Products to Patrons Would Improve
  Quality Image and Increase Sales and Profit
  Margins.
• Helped Major Suppliers Understand and Quantify
  the Reasons for and Potential Solutions to Recent
  Business Losses.
• Provided the Statistical Proof to Support a
  Competitive Product Superiority Advertising Claim.

NFP is Business Solutions for Foodservice.
12
AWARENESS, USAGE AND ATTITUDES
What Brands Come To Mind When You Think Of the
This Product Category?
From What Kinds Of Suppliers Do You Currently
Obtain This Product Category?
Brand A
84
68
Brand B
61
Brand C
Full Line Distributor
75
Brand D
57
Brand E
40
Specialty Distributor
20
Brand F
40
37
17
Brand G
Warehouse Club
Brand H
27
Cash Carry
13
Brand I
27
14
Brand J
Local Produce Market
13
Brand K
17
Brand L
14
Meat Purveyor
5
Brand M
12
Grocery Store
4
Brand N
11
6
Brand O
NFP Profiles Product Usage and Attitudes to
Support the Category Go-To-Market Strategies of
Our Clients.
13
COMPETITIVE ACTIVITY EVALUATION
Operator has Moved Product Volume To A
Competitive Line Because the Competitor Has A
Better Offering
Some what
Total Applies
Strongly
Total Sample
22
Prior Users
37
8
Reduced Purchases
What Is Better About the Offering?
Which Competitors Line?


Brand A Brand B Brand C Brand D Brand
E Brand F
24 18 13 9 7 6
36 29 25 5 5 4
Quality Price Flavor Price/Value Brand
Support Readily Available
NFP Demonstrates Why Competitors Products And/or
Go-To-Market Strategies May Be Eroding Clients
Marketplace Position.
14
ADVERTISING CLAIM SUBSTANTIATION
Product Preference
(n 300 Foodservice Patrons)
Competitors Product
Clients Product
65
35
Statistically Significant _at_ 95
NFP Provides the Statistical Proof to Support
Competitive Product Superiority Advertising
Claims.
15
OPTIMALTM
Operational Product Tests Integrating Measurement
And Logistics is

• A Real World Evaluation- Where the Opinions
  Really Count!
• It is Unique, Comprehensive and an Efficient
  Client Service for
• Product/Prototype Evaluations and/or
  Brand/Program Testing in
• The Appropriate Environment, among Operators in
  their Locations utilizing their Facilities and
  Customers.
• It tests all Appropriate Attributes including
  Packaging, Directions, Preparation, Taste/Flavor,
  Quality, Menu Usage, Patron Appeal.
• It is fully supported with Product Placement
  Logistics
• The Client supplies Product and/or Program
  Samples
• NFP Does All the Work and Provides you with
  Business Solutions

16
CONCEPT / PRODUCT DEVELOPMENT
Qualitative Research- Focus Groups or Focus
Interviews!

• To develop a preliminary understanding of
  potential operator response to
• Concepts
• Packaging
• Products/product Prototypes
• Positioning Alternatives
• Business Model Alternatives
• Marketing Communications
• Lay a groundwork for follow-on Quantitative
  Research
• Language Existing Levels of Understanding
• Issues Attributes and Characteristics
• Potential Uses Price/Value Relationships
• Menu Applications Ingredients and Directions

17
CONCEPT / PRODUCT DEVELOPMENT
Qualitative Research- Benefits!

• Generate hypotheses about a marketing
  circumstance
• Group dynamics as respondents stimulate each
  other, this phase can be a highly productive idea
  breeder
• A more direct participation by the
  marketer(Client), in the case of observed group
  sessions
• Provides the flexibility to deal with
  contingencies reacting to the reactions
• Results are fairly easy to understand and are
  available quickly
• Determines Foodservice Operators Perceptions,
  Language, and Issues in Preparation for any
  Quantitative Research.
• NFP Provides You with Professional Operators
  Discussing Your Business and Offers
  Recommendations for Next Steps.

18
CONCEPT SCREEN

Concept Purchase Interest
PRODUCT A
PRODUCT C
PRODUCT B
100
TOP TWO BOXPERCENT
60
75
Definitely Buy
50
Probably Buy
25
18
P E R C E N T
25
Might/Might Not Buy
0
Probably Not Buy
-25
-25
Definitely Not Buy
-38
-50
-50
-75
NFP Quantifies Operator Purchase Interest in New
Product Concepts leading to Improved Client
Product Offerings.
19
CONCEPT / PRODUCT TEST
Product Purchase Interest
COMMERCIAL
NON-COMMERCIAL
54
35
18
25
28
DefinitelyWould Buy
9
ProbablyWould Buy
Might/Might NotBuy
-3
ProbablyWould Not Buy
-28
NFP Quantifies and Demonstrates Business Segment
Purchase Interest in New Products, Ensuring
Well-Targeted Sales Efforts.
20
CONCEPT / PRODUCT TEST
Market Clusters
New Concepts
Concept Formats
The Food Factory
We Love Prepared Food
Breakfast At the Ritz
Down Dirty
Purchase Interest
At the Plant
Total Sample
(55)
(65)
(80)
(55)
(45)
(300)
Top 2 Box
Top 2 Box
Top 2 Box
Top 2 Box
Top 2 Box
Top 2 Box
54
47
31
31
44
48
Format A
45
35
53
32
30
Format B
41
41
34
39
49
12
28
Format C
46
33
18
28
42
Format D
32
NFP Analysis Examines How Product Category Based
Clusters May React Very Differently to Product
Offerings Compared to Traditional Business
Segments.
21
CONCEPT / PRODUCT TEST
New Product SKU Management
Percent That Would Be Very Or Somewhat
Interested In One Or More Items In the Line
Flavor Interest
Top 2 Box
Somewhat Very
Strawberry
70
Blueberry
55
Raspberry
48
Banana
45
35
Peach
23
Kiwi
NFP Quantifies Flavor Purchase Interest and
Recommends the Best Combination of Flavors for
Successful New Product Launches with Limited SKU
Proliferation.
22
NEW PRODUCT EVALUATION
HOW LIKELY WOULD YOU BE TO BUY THIS PRODUCT FOR
YOUR OPERATION?
Definitely would buy
Probably would buy
38
Might or Might not buy
29
P E R C E N T
20
1
12
Probably would not buy
Definitely would not buy
NFP Quantifies and Profiles the Appeal of New
Flavors or Varieties Leading to Successful
Introductions in Foodservice.
23
NEW PRODUCT EVALUATION
Compared to Other Similar Products
Much Better
Somewhat Better
42
About the Same
30
P E R C E N T
20
1
7
SomewhatWorse
MuchWorse
NFP Quantifies and Communicates the Appeal of New
Flavors or Varieties leading to Successful
Foodservice Introductions.
24
NEW PRODUCT EVALUATION
Feature Importance In Selecting Suppliers For
Specific Product Type
Top2 Box
Very Important
Extremely Important
93
Overall Quality
92
Taste / Flavor
92
Product Is Consistent Every Time
Increases Customer Traffic/Repeat Visits
86
85
Good Value For the Money
Readily Available
82
82
Enhances Our Operations Image
Fits Into My Kitchen Operation
74
Distributor Has Good Customer Service
65
Is A Brand Name I Trust
60
Products Developed Specifically For Foodservice
43
38
Provides Consumer Marketing Support
PERCENT
NFP Quantifies Product Attribute Importance for
Client Offerings Enhancing Products and
Go-To-Market Strategies.
25
OPERATOR PRODUCT TEST
Product Attributes
TOP TWO BOX (VERY GOOD EXCELLENT
Positions Combined)
PRODUCT "A"
PRODUCT "B"
(n 100)
(n 100)
27
62
OVERALL TASTE
20
53
SPICING/SEASONING OVERALL
38
58
OVERALL QUALITY
PRODUCT INTEGRITY ONTHAWING HEATING
53
32
71
65
EASE OF USE/PREPARATION
51
42
HOLDING QUALITY
42
30
BEING A UNIQUE PRODUCT
46
45
APPEARANCE OF THE PRODUCT
35
40
PRODUCT QUALITY
NFP Qualifies Product Appeal and Performance of
Products Leading to Successful Foodservice
Introductions.
26
OPERATOR PRODUCT TEST
Product Diagnostics
SALTINESS
FLAVOR STRENGTH
AMOUNT OF ONION
SPICE LEVEL
NFP Provides Product Improvement Recommendations
to RD on New Product Prototypes and on Existing
Products.
27
FOODSERVICE TEST MARKETS
NFP Works with Appropriate Valuable Information
Sources (Properly Screened and Recruited
Operators and Their Patrons) to Evaluate
Products, Promotions, or Communications in the
Real World Setting.

• Operator Evaluations
• Sales Effects, Quality, POS, Appropriateness,
  and Consumer Response
• Sales Data
• Item Sales, Item Incidence, Category Sales, and
  Total Unit Sales
• Consumer Evaluations
• Usage, Attitudes, Quality, Appropriateness, and
  Repeat Purchase

28
PURCHASER STUDIES
NFP Works with Operators to Evaluate New/Existing
Products, Introductory Programs, and Projected
Success/Redevelopment Criteria.

• Awareness and Trial
• -Aware of Product, Source of Awareness
• -Trial, Method
• -Purchase (Reject/Adopt), Drivers , and Reasons
• Product Success
• -Sales Effects, Quality, Appropriateness,
• -Consumer Response/Satisfaction
• -Repeat Purchase (Actual/Intent)
• Menu Considerations
• -Usage, Regular/Special Item, Applications, and
  Dayparts

29
COMPETITIVE PRODUCTS EVALUATION
PREFERENCE VS. PRODUCT A
Greatly Prefer toProduct A
Somewhat Prefer to ProductA
47
38
NoPreference
P E R C E N T
4
3
8
Somewhat PreferProduct A
Greatly Prefer Product A
NFP Quantifies, Redefines Attributes, and
Recommends the Best Formulas for Successful New
Product Launches.
30
PATRON PRODUCT EVALUATION
Overall Opinion Of This Menu Item
Like It Extremely
26
31
Like It Very Much
Like It Moderately
17
6
Like It Slightly
10
Neither Like Nor Dislike
6
Dislike It Slightly
1
Dislike It Moderately
3
Dislike It Very Much
0
Dislike It Extremely
NFP Evaluates Food Items with Patrons in
Foodservice Locations and Recommends Menu
Improvements.
31
TEST MARKET EVALUATION
Impression of the Quality Image of This Restaurant
CONTROL
49
50
TEST UNITS
25
25
41
18
24
7
MUCH HIGHER
SOMEWHAT HIGHER
0-
ABOUT THE SAME
-2
SOMEWHAT LOWER
-9
-7
-18
-
-25
MUCH LOWER
-50
NFP conducts in-unit product use tests that lead
to major customers adopting our clients products.
32
PROMOTION EVALUATION
How Would You Rate the Success of the
Promotion In Your Operation? Would You Say It
Was...
How Would You Say This Promotion Compared to What
You Had Expected Prior To Participation?
(n 100)
Top 2 Box Percent
Top 2 Box Percent
52
73
Much Better Than Expected
28 24 40 -4 -4
Extremely Successful
42 31 15 -8 -4
Somewhat Better Than Expected
P E R C E N T
P E R C E N T
Very Successful
About As Expected
Somewhat Successful
Not Very Successful
Somewhat Worse Than Expected
-8
Not At All Successful
-12
Much Worse Than Expected
How Appropriate Did the Promotion Turn Out To Be
for Your Operation?
How Likely Would You Be To Participate In
Promotions Like This In the Future? Would You
Say...
88
Top 2 Box Percent
Top 2 Box Percent
88
76 12 8 -4
56 32 -8 -4
Very Appropriate
Very Likely
P E R C E N T
P E R C E N T
Somewhat Appropriate
Somewhat Likely
Might Or Might Not
Not Very Appropriate
Very Unlikely
-12
Not At All Appropriate
-4
NFP Assesses and Quantifies the Value and
Appropriateness of Promotions.
33
PROMOTION EVALUATION
How Interested Do You Think Your Patrons Would Be
In Having Other Promotions Of This Type In the
Future?
How Did Your Patrons React To the Promotion
Overall?
How Did Your Waitstaff React To the Promotion
Overall?
78
88
Total Favorable
Total Favorable
Top 2 Box Percent
84
31 44 13 8 -4
Highly Favorable
Highly Favorable
Very Interested
60 24 -16
34 33 11 22
Very Favorable
P E R C E N T
P E R C E N T
P E R C E N T
Very Favorable
Somewhat Favorable
Somewhat Interested
Neutral
Somewhat Favorable
Neutral
Not Very Interested
-4
-16
Very Unfavorable
Were There Any Changes In the Dollar Sales Of the
Promoted Product During the Period Of the
Promotion?
Was This Sales Change An Increase Or Decrease?
YES
65
Increase
100
Average Dollar Sales Increase 18
21
NO
14
Decrease
0
Dont Know
NFP Quantifies and Communicates the Sales Effects
of Promotions.
34
BRAND POWER STUDIES
NFP Works with Operators and Consumers to Provide
a Framework for Developing / Enhancing Marketing
Strategies and Assessing Brand Success Over Time.

• OBJECTIVES
• Establish a consistent approach to brand value
  measurement.
• Profile the value of foodservice brands among
• Foodservice Operators
• Foodservice Consumers
• Profile competitive brands in appropriate
  category groups.

35
BRAND POWER STUDIES
NFP Works with Operators and Consumers to Provide
a Framework for Developing / Enhancing Marketing
Strategies and Assessing Brand Success Over Time.

• METHODOLOGY
• Measurement of brand values on common set of
  attributes among operators and consumers.
• 1000 Consumer Interviews (Self-Completed)
• In-Home Usage
• Brand Values
• Influence On Establishment Image
• Influence On Visit Frequency
• Willingness To Pay More (for Brand)
• 300 Operator Interviews Broad Business Segment
  Representation
• Functionality
• Brand Strength
• Perceived Patron Strength
• Price/Value
• Value Beyond Product

36
BRAND POWER STUDIES
BRAND VALUE - Strategic Framework
High
Foodservice Market Leaders
Differentiators
VALUE TO OPERATOR
Consumer Brands
Generics
Low
High
Low
CONSUMER LEVERAGE
NFP Recommends Strategies to Take Advantage of
Brand Strengths.
37
CUSTOMER SATISFACTION TRACKING
Percent Rating xxxx 8, 9, 10, on 10 Point Scale
Fall 2002
Fall 2000
Fall 2001
Overall Product Quality
86
86
85
Consistent Quality
90
90
90
Responsive Customer Service
50
55
65
Sales Representation
65
70
70
Fair Pricing
85
82
86
Offers Up-to-Date Varieties
30
50
56
PERCENT
NFP Tracks Clients Change in Product Offerings
and Go-To-Market Strategies as a Measure of
Management Objectives.
38
NFP RESEARCH OMNIBUS STUDIES
NFP Provides to Clients Inexpensive Insight into
Competitors Product Offerings and/or
Go-To-Market Strategies to Enhance Business
Solutions.

• Quarterly Self-administered Surveys
• Large Quantitative Sampling of the NFP Panel
• Inexpensive, Limited Depth Snapshot
• Clear, Concise Visual Reports
• Specific Topics with Client Specific Interest
• Attitude/Usage Studies
• Brand Equity/Power Tracking/Mapping
• Concept Screens
• Other Client Topics
• Selected Topics with Broad Industry Interest

39
BRAND EQUITY PROFILE
Perceptual Map

A Trusted Manufacturer
BRAND E"
E

Recipe/Menu Support
5
G
F
7
H

Innovative Products
3
J
4
C
BRAND "A"
A

D
Promotional Support
2
Merchandising Support
6
Knowledgeable Sales Staff


B

Highest Quality Products
BRAND "D"

Excellent Customer Service
I
Broad Product line

BRAND "C"
1

Price / Value Leader
Consumer Brand Strength

BRAND "B"
NFP Recommends Product Offerings and/or
Go-To-Market Strategies to Take Advantage of
Clients Competitive Strengths and Correct
Important Weaknesses.
40
CATEGORY LEADERS PERFORMANCE
OVERALL PRODUCT QUALITY
BROAD PRODUCT LINE
Selected Categories
Selected Categories
Specific Product Category
Specific Product Category
Market Leader
Leading Competitors
Market Leader
Leading Competitors
Clients Brand
Competitors
Competitors
Clients Brand
INNOVATIVE LEADER
BUSINESS BUILDING ASSISTANCE
Selected Categories
Specific Product Category
Selected Categories
Specific Product Category
Market Leader
Leading Competitors
Market Leader
Leading Competitors
Clients Brand
Competitors
Clients Brand
Competitors
Selected Categories are from Soup to Nuts
NFP Demonstrates to Clients the Need to Improve
Product Offerings and/or Go-To-Market Strategies
to Ensure Future Foodservice Marketplace
Leadership.
41
NFP Business Solutions in Action

• Category Usage Attitudes Profiles Supported
  Clients Product Promotion Efforts
• Qualified Concept Appeal and Taste Test
  Performance for Several New Product Lines Leading
  to Successful Introductions in the Foodservice
  Market.
• Provided Product Improvement Recommendations for
  RD Work on Existing and New Products.
• Qualified and Selected the Designs for the
  Introductions of New Lines of Disposable
  Products.
• Compared Original Formula to Improved Prototypes
  to Determine Which Formula Would Yield the
  Strongest Performance in the Foodservice Market.
• Evaluated the Installation Test Phase of a New
  Beverage Dispensing Equipment Line Detailing
  Significant Operational Shortcomings to Be
  Addressed Prior to Launch.
• In-unit Product Tests Led to Major Chain
  Customers Adopting Clients Products.
• Quantified Performance for Several Promotions and
  Recommended Major Changes.
• Proved to Operators that Branding Client
  Manufacturers Products to Patrons Would Improve
  Quality Image and Increase Sales and Profit
  Margins.
• Helped Major Suppliers Understand and Quantify
  the Reasons for and Potential Solutions to Recent
  Business Losses.

NFP is Ready to Provide Business Solutions
for your Sales, and Profits!
How can NFP be of Service?