Problem
A leading food ingredients manufacturing company aimed to diversify its product portfolio to enhance its market share in the Indian fortified dairy products market. Fortified dairy products involve adding micronutrients such as vitamins and minerals to increase nutritional content lost during processing. A multinational food ingredients manufacturer, desiring to assess the potential demand for fortified dairy products and identify key fortification strategies, engaged Cognitive Market Research to explore new opportunities in the Indian market. Cognitive Market Research conducted a thorough analysis of the Indian dairy market, examining key segments, consumer purchasing behavior, dairy consumption patterns, shifting dietary preferences, consumer awareness of nutritional requirements, product marketing, distribution models, emerging fortification trends, and industry challenges. The assessment also included insights into the fortified dairy products market, covering pricing mechanisms and fortification strategies to target key opportunity segments across the country.
Solution
A prominent food ingredients manufacturer, renowned for its significant market share in the global food and beverages industry, faced declining profits. Seeking to enhance its financial performance, the company decided to extend its footprint in the Indian fortified dairy products sector. To support this expansion initiative, the client enlisted CMR for comprehensive assistance in understanding the purchasing behavior of Indian consumers and their dairy consumption patterns. Additionally, the client aimed to gauge the market potential of fortified dairy products and identify key strategies to seize new opportunities in the Indian market. The choice of CMR was driven by its robust capabilities in the food and beverage industry, access to a multitude of experts in the dairy industry value chain, and a track record of excellence in similar projects.
Cognitive Market Research initiated extensive research on the Indian dairy industry, delving into its various segments and subsegments. In-depth interviews with key industry stakeholders and experts were conducted to gain a nuanced understanding of Indian consumers, encompassing their dairy consumption patterns, awareness levels, buying behavior, price sensitivity, and nutritional requirements. Following this, a comprehensive long-range demand estimation was undertaken for various dairy segments, pinpointing those with the highest fortification opportunities. Once the most promising products were identified, Cognitive Market Research developed fortification strategies and pricing mechanisms tailored to each. Drawing on these insights and extensive discussions with key industry leaders, Cognitive Market Research compiled a list of the highest potential dairy products aligned with the client's specifications. The findings were then incorporated into a detailed report and presented to the client.
Impact
The research facilitated the client in acquiring profound insights into the potential demand for fortified products within various dairy segments. Additionally, the client gained an understanding of consumer preferences, nutritional requirements, purchasing behavior, awareness levels, pricing models, distribution channels, and more, across diverse dairy products in India. Building on these findings, the client successfully pinpointed two dairy categories with the greatest potential for fortification, seamlessly aligning with its existing product portfolio.
