A segmentation of Swiss fluid milk consumers and suggestions for target product concepts

Abstract

The objective of this study was to understand the priorities and motives of Swiss consumers when choosing and buying fluid milk and to provide evidence-based recommendations for the development of target product concepts and category adaptations. Data were collected through a postal survey sent to a randomly selected sample of German-speaking Swiss residents, yielding a final sample size of n = 712 (39% response rate). Hierarchical cluster analysis disclosed the presence of 3 distinct consumer segments: the uncompromising consumers (24%), who have high and numerous expectations; the locavores (56%), who ensure that they consume primarily milk of local origin; and the indifferent consumers (20%), who have modest expectations, especially in taste, origin, and production conditions. The market review revealed that none of the 7 largest market players offered the right product mix to match the needs of its effective or targeted consumers. Overall, the current offer is too broad and untargeted. A large share of the offer lacks sufficient differentiation; furthermore, available added-value concepts often do not combine the right product attributes. Based on these results, 5 product concepts were elaborated. Two products were designed for the uncompromising consumers: a protein-enhanced, semi-skimmed (1.5%) milk and a fair milk (fair price paid to the milk producers); a twin concept was designed for the locavores: a 100% local pasteurized milk available in both conventional and organic quality; and one product was designed for the indifferent consumers: an all-purpose, long-life, part-skimmed (2.5%) milk. By including the product concepts dedicated to their targeted consumers' segments and downsizing their assortment depth, retailers could optimize their sales per square foot.