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20-Delicacy-Ofada-Rice-Attributes Draft Report Ltd. RC 378525 Communication and Marketing Research Group Limited Project Delicacy (Ofada Rice Attributes Evaluation Study) December, 2006 CMRG Ltd. PrOpCom 1 RC 378525 Report Layout Background Objectives & Action Standards Research Methodology Executive Summary • Key Findings From Qualitative • Key Findings From Quantitative Conclusions Marketing Considerations Appendix Detailed Report: Qualitative Detailed Report: Quantitative Housewives Professional Buyers Consumers List of Contacts CMRG Ltd. PrOpCom 2 RC 378525 Background Promoting Pro-Poor Opportunities in Commodity and Service Markets (PrOpCom) is an innovative project funded by the Department for International Development of the United Kingdom (DFID) to facilitate functionality and efficiency of Nigerian commodity and service markets in such a way as to assure these markets benefit the poor. PrOpCom’s goal is to improve livelihoods by facilitating growth and pro-poor outcomes in commodity and service markets and to contribute to the overarching (DFID/Nigeria) goal of poverty alleviation in support of NEEDS and the attainment of the Millennium Development Goals. PrOpCom will use a “Making Markets Work for the Poor” (M4P) approach to address the systemic reasons that prevent commodity and service markets from functioning effectively for the poor in Nigeria. In doing so, it will contribute to delivery of the vision for growth in the non-oil economy outlined in NEEDS. The project purpose is to support systemic change in markets on which the poor rely to produce pro-poor outcomes and opportunities such as: – Enhanced incomes; – Increased jobs; – Improved access to markets; – More options and choices; and – Reduced risks. CMRG Ltd. PrOpCom 3 RC 378525 Background Cont’d… PrOpCom would contribute to removing constraints to efficient market operations and linking market actors to work together and serve each other on a sustainable basis. The programme will address poor market functioning along selected commodity chains, with the objective of improving access and returns to the livelihood assets of the poor. Rather than directly support the poor, the programme activities will work with business associations, service providers and other intermediaries who already serve functions along market chains in which the rural poor have a stake. By facilitating fundamental changes in the functioning of markets and the rules of the game governing access by the poor, systemic change will be encouraged. The Ofada Rice Initiative: The Ofada rice chain suffers from high transaction and transformation costs; and this impedes competitiveness and thus reduces economic benefits for operators be they farmers, millers or marketers. PrOpCom will support activities that impact on the entire value chain, but also activities that deal with critical issues at various points along the chain. CMRG Ltd. PrOpCom 4 RC 378525 Background Cont’d… PrOpCom will also begin dealing with the brand issues and value chain coordination and communication. Presently, Ofada rice suffers from problems of adulteration and misrepresentation. For many, Ofada rice means different things: from the way it is served (with T. danielli leaf), to the size of the grain, the aroma, and many other attributes which many have used in identifying the product. There is the need to establish a brand name for Ofada rice, starting with an attempt to identify those consumer- accepted qualities that differentiate Ofada rice from other indigenous rice. This will be part of an overall effort to define what really Ofada rice is and establish standards for the product. Hence, CMRG undertook consumer surveys in selected locations using a set of information gathering tools in the effort to identify Ofada rice qualities. This segment of the report details CMRG’s findings from the qualitative research phase. CMRG Ltd. PrOpCom 5 RC 378525 Objectives & Action Standard Objectives: In specific terms, the study sought to: – Determine the characteristic qualities consumers use in identifying Ofada rice in milled and cooked forms. Quality attributes would include, but not be limited to taste, aroma, color, appearance, shape and size of grain, presence and or absence of foreign matters, grain composition, mixed varieties, cracked grain, moisture content, broken grain, cooking characteristics, etc. Other attributes such as the way and manner it is served; the sauce used, etc would also be considered as part of the characteristic attributes of Ofada rice. – Ascertain how consumers distinguish Ofada rice from other local rice in uncooked and cooked forms (Note: it may be that there are different types of rice that are known as Ofada rice, e.g. aromatic and non-aromatic). – Determine how findings from this survey can be used as a guide for developing a framework for a proposed market demand study of Ofada rice to be undertaken in few weeks time as part of the Ofada Rice Value Chain Development Action Plan. Action Standards: 9 Findings from this survey plus a parallel study on varietal information should be used to establish standards for Ofada rice in uncooked and cooked forms. - These standards may need to distinguish between aromatic and non-aromatic Ofada rice. 9 Standards when accepted and used by the industry are important both for establishing brand equity attributes and product category growth/market development parameters. CMRG Ltd. PrOpCom 6 RC 378525 Research Method The study was conducted using Qualitative and Quantitative research methods. The qualitative research technique stage using Focus Group Discussions and In Depth Interviews were used to elicit deep seated values, perceptions and impressions about Ofada rice thus pointing out the way forward on key product benefits and features. Target respondents The three target groups interviewed are: Professional Buyers (i.e. institutional buyers, caterers, restaurateurs and so on). Housewives. Consumers of cooked ofada rice . Group Size/Structure A pilot group was conducted in Lagos before commencement of the FGDs. Location FGDs IDIs Lagos Housewives BC1 Consumers C2D Males 3 (Professional Buyers) Abeokuta Housewives BC1 Consumers BC1 Males 2 (Professional Buyers) Ifo Housewives C2D Consumers C2D Females - * The contact information of the professional Buyers interviewed are contained in the appendix CMRG Ltd. PrOpCom 7 RC 378525 Research Method Contd. The quantitative research method employed the following respondent selection techniques: Housewives (modified random sampling) Professionals (purposive sampling technique) Consumers (modified random sampling technique) The achieved sample is shown below: Consumers Housewives Professional Buyers Achieved Sample =102 Lagos =50 Sex Female 102 Achieved Sample Total = 67 Location Abeokuta =52 Lagos 52 Lagos = 36 Location Location 18-29 =61 Abeokuta 50 Abeokuta =31 30 - 45 =41 18-24 3 Outlet Type Age Large: Fast Food Outlets = 14 25-29 14 Age Small: Catering/Restaurants = 53 30-39 46 Social Class 40-45 39 ABC1 =13 C2D AB 4 =89 C1 9 Marital Status Social Class Single = 49 C2 43 Married =53 D46 Educational Level None =2 Primary = 8 Secondary =48 Tertiary =44 CMRG Ltd. PrOpCom 8 RC 378525 Executive Summary CMRG Ltd. PrOpCom 9 RC 378525 Introduction As part of the Ofada Rice Value Chain Development Action Plan, a market research was conducted in November 2006, among Consumers of cooked Ofada rice, Housewives and Professional buyers in Lagos and Abeokuta, to identify and define the qualities of Ofada rice that distinguish it from other local rice. The results of the qualitative and quantitative research are summarized below: CMRG Ltd. PrOpCom 10 RC 378525 Key Findings From Qualitative Research CMRG Ltd. PrOpCom 11 RC 378525 Rice In General Evidently, rice occupies an essential part of respondents’ menu. Its role in the home is further strengthened by children’s love for rice. There are two major kinds of rice identified by respondents, namely: imported rice and local rice These two kinds of rice are differentiated by place/mode of production and neatness. Imported rice includes all kinds of rice that are produced outside Nigeria and they are usually very neat with no stones or shafts. Generally, it is believed that imported rice has gone through some chemical processes that have reduced its ‘naturalness’, hence, it is also referred to as polished rice. The prominent brands mentioned by respondents are: Uncle Bens, Caprice, Tomatoes, Dangote,etc On the other hand, local rice comprises all kinds of rice that are locally produced in Nigeria. Respondents supposed that these kinds of rice retain a lot of their naturalness because they have not gone through chemical processes. The different brands available are mainly differentiated by place of production. They include: Ofada, Igbimo rice, Ilesa rice, Abakaliki, and so on. CMRG Ltd. PrOpCom 12 RC 378525 Imported rice is eaten more regularly than local rice. Reasons adduced for this are: It is easy to cook. It is cheaper to cook. Does not take time. It can be made into different meals. It is easy to source. CMRG Ltd. PrOpCom 13 RC 378525 Ofada Rice The study clearly revealed that ofada rice is a special delicacy eaten occasionally by respondents. Attractions to ofada rice lie mainly in its distinct taste and aroma. Other prominent qualities identified are: Relatively more dirty in appearance; containing stones, shafts, burnt rice etc Short but big grains Grain has brown/wine strips High starch content Ofada rice is mostly consumed at parties and in restaurants,
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