CONSUMER CENTRICITY IN PRODUCT INNOVATIONS

Rinka Banerjee

R&D Director

Foods, South Asia

Hindustan Unilever Limited

March 13, 2013

Successful innovations = behaviour change

~1990

Undernutrition

Obesity and

cardiometabolic

disease

now

“Double burden

of malnutrition”

‘NUTRITION TRANSITION’

CHANGING BEHAVIOUR ISN’T EASY.....

• If it was, millions of people wouldn’t engage in unhealthy

behaviours on a daily basis.

• And we’d all still be sticking to our new years resolutions!

BEHAVIOUR CHANGE JOURNEY: 5 LEVERS FOR CHANGE

Step 1: Raise Interest

& Awareness

Step 2: Engage

& Enable

Step 3: Reinforce

I want to change my

behaviour – how should I

do it?

My current

behaviour is

fine

I’m doing it

I’m doing it

repeatedly

0 1 2 3

Make it understood Make it easy

Make it desirable

Make it rewarding

Make it a habit

PERCEPTION, SALT INTAKE

& USAGE HABITS & ATTITUDE TOWARDS

CHANGE

6

a consumer study in India

Perception, Salt intake &

Usage Habits & Attitude

towards Change

a consumer study in India

7

37%

27%

11% 25%

Attitude/approach toward salt intake

DIAGNOSIS OF HIGH BLOOD PRESSURE:

MORE LIKELY TO BE THINKING ABOUT

REDUCING SALT INTAKE!

8

Overall Prevalence 16%

85% of consumers with diagnosed high blood pressure are already thinking about or have started reducing salt intake

Not Interested

15%

Busy 16%

Finished 37%

Percentage of Consumers Diagnosed with

High Blood Pressure (self-report)

Contemplating

32%

PRODUCT INNOVATION IS NOT JUST ABOUT A GOOD PRODUCT

Clear communication of benefit

WHOSE BEHAVIOUR ARE WE TRYING TO CHANGE

Strugglers

Managers

Healers

Disciples

Unmotivateds

Investors

PRODUCT, INGREDIENT, BENEFITS = INTUITIVE FIT

Consumption of Brooke Bond Red Label (BBRL) Natural care tea significantly

improves NK cell activity

�Tea fortified with Ayurvedic herbs �Two clinical trials to back the immunity claim on pack

INHERENT GOODNESS OF INGREDIENTS

Minerals

Aro

ma

Flavonoids (30%) Carbohydrates

Proteins Amino Acids (Theanine~1%)

O

OH

HO

OH

O H

O H

OHO

OH

OH

OH

OH

OH

Immediate /few hours

Months Years

Tea : Multiple functional ingredients, a multitude of benefits

0

20

40

60

80

100

120

140

160

Apples Red onions Black tea Green tea Blueberries Dark

chocolate

mg

/10

0g

16

Source:

USDA

Database

for the

flavonoid

content of

selected

foods

(2003)

Common sources: total flavonoids per 100g as consumed

Black tea contributes 60-84% of dietary flavonoids in Western Populations Hertog MG et al (1993) Dietary antioxidant flavonoids and risk of coronary heart disease: the Zutphen Elderly Study. Lancet 342, 1007-11.

Tea is a rich source of flavonoids

EVIDENCE FROM INTERVENTION STUDIES

Tea and vascular function

• Consumption of 2 to 3 cups of tea per day (black and green) improves

blood vessel function [Ras et al (2011) PLoS ONE, 6]

Hodgson, 2005 (BT, with meal)

Hodgson, 2005 (BT, without meal)

Grassi, 2009 (BT, very low dose)

Grassi, 2009 (BT, medium dose)

-2 -1 0 1 2 3 4 5 6 7 8 9

Overall effect

Grassi, 2009 (BT, low dose)

Lorenz, 2007 (BT)

Hodgson, 2002 (BT)

Grassi, 2009 (BT, high dose)

Jochmann, 2007 (BT)

Duffy, 2001 (BT, chronic)

Alexopoulos, 2008 (GT)

Duffy, 2001 (BT, acute)

Jochmann, 2007 (GT)

Ardalan, 2007 (BT)

Net effect on FMD (%)

Tea may impact CVD risk by improving endothelial function

Challenge: Claim what it does & does what it claims

claimed to deliver an energy boost with a blend of caffeine and B vitamins in a fine powder that is dissolved quickly in the mouth. According to the manufacturer, one shot contains four to six puffs and about the same caffeine as one large cup of coffee.

claimed to change your whole body including the belly,

butt and thighs.

Tonic for women - enables women to attain envy evoking body structure, charm and grace

IN SUMMARY

• Behaviour change approach:

• Successful innovations have the ability to change behaviour

• 5 levers of change Behaviour

• Clear communication of benefit:

• Single minded about the target consumer

• 360 communication approach

• Conventional influencers !

• Un conventional influencers !

• Claim what it does & does what it claims:

- strong science

- consumer safety

Make it understood

Make it easy

Make it desirable

Make it rewarding

Make it a habit

What is the enabling infrastructure & environment needed for successful innovations in functional foods & dietary supplements ?

Together we can !

AV