Primo Extremo Case Study: gaining credible entry in a monopolized category

Popular flavored milk brand Primo launched a liquid breakfast product in New Zealand in 2008, in an attempt to enter the domain dominated by Sanitarium's Up&Go. Rather than tackling the market leader head-on, Primo chose to grow the entire liquid breakfast category through the attraction and recruitment of new consumers.

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Table of contents

CATALYST

SUMMARY
Analysis
Work pressures and time scarcity have driven the market for on-the-go breakfast solutions
Time poor consumers are skipping breakfast with greater frequency
On-the-go meal solutions have proliferated in Australia and New Zealand
The emergence of 'liquid breakfast' rejuvenated the occasion
Liquid breakfasts provide the nutrition benefits of breakfast in a convenient consumption format
Sanitarium revolutionized the liquid breakfast category
Subsequent attempts to challenge the dominance of Up&Go proved unsuccessful
Primo Extremo gained traction in liquid breakfast by targeting new consumer segments
A solid understanding of its core audience has kept Primo New Zealand's top flavoured milk brand
Primo succeeded in the category by choosing not to challenge the market leader directly
Compare and contrast: Sanitarium Up&Go Energize
Conclusion and implications

APPENDIX
Case Study series
Methodology
Secondary sources
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
List of Figures
Figure 1: Six-in-10 global consumers are increasingly seeking time saving products or services
Figure 2: Breakfast is the main meal most commonly being neglected by consumers, particularly in Australia
Figure 3: On-the-go meal consumption is an increasingly common occurrence for global consumers
Figure 4: Innovative packaging formats are facilitating easier and more convenient meal consumption
Figure 5: Liquid breakfast is part of the rapidly growing functional drinks category
Figure 6: The success of the original Up&Go has spawned several, more targeted spinoff brands
Figure 7: Aunt Betty's Body Fuel failed to effectively distance itself from market leader Up&Go
Figure 8: Failed attempts at replicating the success of Up&Go illustrated the lack of effective differentiation
Figure 9: Primo advertising continues to test the boundaries to remain relevant with its young male target audience
Figure 10: Primo Extremo's TV campaign satirized hyperbolic liquid breakfast marketing
Figure 11: The Up&Go Energize website (left) focuses primarily on the The Dukes' content
Figure 12: Young male consumers are the least interested in the relationship between food and health

Related research categories

By sector: Dairy (in Soft drinks)