1. China Value of Dollop - Consumer Study Shanghai 2008.10

2. Company Confidential – Rich Products Corporation
Contents
1. Introduction
2. Key findings – Value of Dollop
Company Confidential – Rich Products Corporation

3. 1. Introduction 1.1 Research background and objectives
1.2 Target group
1.3 Survey design

4. 1.1 Research background and objectives
Aiming at helping customers in food service to find the potential business growth opportunities, Rich’s intend to recommend them to use more "Dollop" on products, in order to raise the product value; thus, the customers can not only increase the profit, but better meet the demand of different customers, and therefore increase products’ competitive power.
In order to promote the “Dollop" to the customers better and broader in future, Rich’s needs to investigate the target consumer groups of the clients in food service channel;
Thinking Power is honored to be commit by Rich’s to carry out the fieldwork of this consumer survey, with delivery of the final report.
Objectives —— Understand the target consumer groups of food service customers
Consumption habits of products with dollop;
Attitude/purchasing intention toward dollop;
Attractiveness comparison of dollop made from different ingredients (ice cream vs cream);
Preference on dollop with different characters (color, appearance/shape, material, melting speed)

5. College students, age 18-22; & white-collars in office, age 23-40
1.2 Target group
College students, age 18-22; & white-collars in office, age 23-40
Often consume in these places
Coffee shops (Starbucks, UBCcoffee, etc.)
Western style restaurant (pizza hut, papa johns etc.) average consumption over RMB50
Definition of respondents:
Casual Dinning (Babela, saizeriya etc.) average consumption below RMB50
Age 18-40;
Lived in Shanghai over 2 years;
College or above students: monthly household income over RMB5000;
White-collar: monthly individual salary over RMB3000(after tax);
Education level: college or above ;
Consume in the Coffee shops, casual dining, western style restaurants, middle to high class restaurants at least once a month ;
Have consumed at least two types among hot drink, cold drink, dessert and mixed fruits in the above mentioned places within last month ;
Respondents and his or her family don’t work in the related industries.
Middle to high class Chinese restaurant (Xiao Nan Guo, Shanghai Ren Jia etc.) average consumption over RMB50

6. 1.3 Survey design Methodology Central Location Test Sampling
Male
Female
TOTAL
Age 18-22 20 40 60
Age 23-29
Age 30-40
120
180
Sampling
Sample size: 180
Method: quota sampling

7. 2. Key findings 2.1 Consumption Habit 2.2 Value of Dollop
2.3 Preference comparison of dollop and ice cream
2.4 Analyses results on different dollop characters

8. 2.1.1 Introduction of dollop
white or ivory white cream products, usually applied on hot drinks (for example: coffee), cold drinks, dessert or fruits, the appearance are normally screw type or bouncy type.
Remark: exclude milk foam

9. 2.1 Consumers’ knowledge and attitude toward DOLLOP
Around 95% respondents "know and had" products with dollop before.
Their perception of Attitude toward dollop
attractive (56%),
delicious (54%),
high calorie (44%),
fashionable (38%),
Interesting (37%)…
Perception on the main purpose of dollop
decorate the appearance of food or drink (79%),
improve the mouth feel of food or drink (63%),
More interesting (53%) …

10. 2.1.2 Dollop application on different products
Hot Drink
Cold Drink
Dessert
Fruit

11. At least average consume times every month
2.1.2 Consumption Habit -1
At least average consume times every month
Consume frequency
BASE: All respondents (N=180)
Hot drinks
Cold drinks
Dessert
Fruits
5.1
5.2
4.0
3.8
Knowledge dollop
BASE: All respondents (N=180)
Hot drinks
Cold drinks
Dessert
Fruits
Awareness resources of dollop’s application
BASE: Respondents who know the application of dollop among these products
Hot drinks
Cold drinks
Dessert
Fruits
BASE
177
168
139
Product pictures on the MENU
84%
89%
88%
85%
POSM
53%
58%
63%
WAITER’s recommendation
44%
50%
51%
Others 8% 4% 3%

12. 2.1.2 Consumption Habit - 2 Reason for "know, but not tasted"
BASE: Respondents who know the application of dollop among these products but never tasted
hot drinks
cold drinks
dessert
fruits
BASE
29*
25* 44
Worry of high calorie
59%
36%
48%
16%
Not healthy
38%
31%
14%
Don’t like eating cream
32%
41%
11%
Don’t feel suit me
24%
28%
34%
Worry about bad taste
39%
Don’t like this way of eating
12%
17%
Hardly seen 7%
20%
Inconvenient 3% 8%
21% 9%
Feel too flashy
10%
Too expensive 2%
Consume places
BASE: Respondents who know and tasted dollop among these products
hot drinks
cold drinks
dessert
fruits
BASE
148
152
139 95
Coffee shops (Starbucks, UBC coffee)
95%
86%
82%
62%
Casual Dining (Babela, saizeriya etc.) average consumption below RMB 50
75%
65%
81%
Western style restaurant (pizza hut, papa johns etc.) average consumption over RMB50
70%
74%
73%
71%
Middle to high class Chinese restaurant (Xiao Nan Guo, Shanghai Ren Jia etc.) average consumption over RMB50
19%
16%
22%
32%

13. 2.1.2 Consumption Habit -3 the percentage of eating with dollop
MEAN
BASE: respondents who know and have tasted dollop
Hot drinks (N=148)
Cold drinks (N=152)
Dessert (N=139)
Fruits (N=95)
50.4%
50.3%
45.9%
41.7%
How do consumers eat the dollop?
BASE: Respondents who know and have tasted dollop in this product
Hot drinks (N=148)
Firstly eat the surface of the cream, and then mix the rest cream and drink together
49%
Mix the dollop and the beverage at beginning before drink
25%
Eat most or all creams first, then drink the beverage
23%
Others 3%
Cold drinks (N=152)
Firstly eat the surface of the cream, and then mix the rest cream and drink together
53%
Eat most or all creams first, then drink the beverage
25%
Mix the dollop and the beverage at beginning before drink
20%
Others 2%
Dessert (N=139)
Eat cream and dessert together
55%
Eat cream first and then dessert
33%
Eat dessert first and then cream
10%
Others 1%
Fruits (N=95)
Eat cream and fruits together
58%
Ear cream first and then fruits
27%
Eat fruits first and then cream
12%
Leave the cream uneaten 3%

14. 2.2 Value of Dollop why the food with dollop attract consumers
BASE: respondents who know and have tasted dollop
Hot drinks (N=148)
Cold drinks (N=152)
Dessert (N=139)
Fruits (N=95)
Better appearance
Better mouth feel
Like eating cream
Having more sense
A habit
Recommendation of the waiters
Better feeling of value
Balance the nutrition
Others
The most important reason
Reasons
Better appearance and better mouth feel are the top 2 reasons for attraction;
Why female consumers like products with dollop are focus on below 3 reasons, better mouth
feel, better appearance and like eating cream, while male consumers tend to be affected easily by
other aspects, such as feel more interesting, and recommendation by the waiters
High frequency consumers are mainly because of good mouth feel, like eating cream and habit,
low frequent consumers tend to be affected by dollop’s shape, appearance and waiters recommendations

15. 2.2 Value of Dollop 2
Purchase intention of products with dollop in future
BASE: All respondents(N=180)
TOP2
Hot drinks
Cold drinks
Dessert
Fruits
89%
86%
77%
66%

16. 2.2 Value of Dollop 3
Increase the frequency of purchasing products with dollop
BASE: all respondents(N=180)
Hot drink
Cold drink
Dessert
Fruits

17. 2.2 Value of Dollop 4 The increment of perceived value with dollop 31%
BASE: all respondents(N=180)
Hot drinks
(e.g. a cup of normal coffee)
Cold drinks
(e.g. a normal ice shaving)
Dessert
(e.g. a normal cheese cake)
Fruits
(e.g. a normal mixed fruits dish)
Mean percentage of value increment
37.3%
34.4%
23.9%
21.8%
Mean Perceived Value
in a middle-premium
restaurant
(US$/serve)
With Dollop
Without Dollop
5.00
4.60
3.47
4.56
31%
25%
18%
20%
3.82
3.68
2.94
3.81

18. 2.3 Preference comparison of Cream dollop and ice cream
For cold drinks and desserts, consumers’ preference of dollop and ice cream are both high, both get over 3.5 points in terms of 5 point scale. And generally, the preference of ice cream is a little bit higher in cold drink.
Like
Dislike
CREAM DOLLOP
good appearance
good mouth feeling (delicious, smooth, rich),
inspire appetite
fashion/novel
greasy
not healthy (easy to get fat)
ICE CREAM
refreshing mouth feel (not oily),
cooling,
Suitable for cold drinks more,
good appearance,
suit for summer and stimulate taste
too normal,
tedious appearance,
double ice will affect the mouth feel
melt too quickly.

19. 2.4 Analyses results on different dollops characters (1)
COLOR—— [Snow white] VS [Ivory white] dollop
Care or not
Almost half of respondents care about the color of dollop, while the others don’t care.
Among all respondents, high percentage of the group of age 23-29, and male group don’t care about the color.
Preference
Consumers’ preference of (snow white) color dollop is obviously higher than (Ivory white) ones.
Reasons for the Preference
Among all respondents who care the color of dollop, most of them like (snow white) more, as they feel such dollop looks clean, more nature, pure mouth feel, more appetite, match the food or beverage better and more refreshing mouth feel etc.
They think (Ivory white) dollop looks sticky, bad looking, not clean, not fresh and not pure, etc.
SHAPE—— [Clear lines type] VS [Bouncy type] dollop
Over 60% respondents don’t care these two different dollop types.
Among them, most male respondents don’t care about it.
Consumers’ preference of (clear lines type) is obviously higher than (bouncy type)
Among the respondents who care about the difference of types, most of them like the (clear lines type) dollop, as they think such dollop is better appearance/ better feeling of layer, inspire more appetite, look more clean and refreshing and has heavier mouth feel etc. while for (bouncy type) dollop, they feel it is like decayed/messy, not fresh, looks informal/roughly made and not clean, etc.
Clear line type
Bouncy type

20. 2.4 Analyses results on different dollops characters (2)
MELTING SPEED—— [Somewhat quickly melt] VS [Somewhat slowly melt] dollop
Care or not
Also around half of respondents care the melt speed of the dollop.
Among them, the caring percentage of female and group of age are higher than other groups.
Preference
Consumers’ preference of (Somewhat slowly melt) dollop is obviously higher than (Somewhat quickly melt) dollop.
Reasons for the Preference
Among the respondents who care the melt speed of dollop, most of them like the Somewhat slowly melt dollop, since they mainly feel that these dollop have long lasting/better appearance, can taste the cream slowly, increase the sense of eating, better mouth feel and can choose their preferred eating process freely, etc.
For the Somewhat quickly melt dollop, they mostly think it mixed with food or beverage too quickly, which leads to destroy the taste of the food or beverage itself.

21. 2.4 Analyses results on different dollops characters(3)
Concept
Dairy Cream:
A cream made from milk, light yellow color, with natural dairy flavor, smooth taste;
Non Dairy Cream:
A cream made from non dairy ingredients, white color, vanilla or cream flavor,
smooth and non-oiling taste, no cholesterol
MATERIAL—— [Non Dairy] VS [Dairy] dollop
Care or not
Close to half of respondents care the different material of dollop
Preference
Consumers’ preference of (Non Dairy) dollop is obviously higher than that of (Dairy).
Reasons for the Preference
Among the respondents who care the different materials, they mostly prefer the (Non Dairy), as they think it is healthy (low calorie/low cholesterol/not make people get fat), smooth mouth feel and not sticky, better color and more natural, etc
And they feel the (whipping cream) is not healthy, sticky and dislike the color, etc.