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

The objective of this study was to understand the priorities and motives of Swiss consumers when choos-ing 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 pres-ence of 3 distinct consumer segments: the uncompro-mising 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 expec-tations, especially in taste, origin, and production con-ditions. 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 differentia-tion; 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 con-sumers: 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’ seg-ments and downsizing their assortment depth, retailers could optimize their sales per square foot.