Successful Produce Promotion: Consumer and Retailer Trends - PowerPoint PPT Presentation

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Successful Produce Promotion: Consumer and Retailer Trends

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Coupons, discounts, in-store displays, trade shows, samples, in-store ... More ready-to-eat food is offered by grocery stores - $14 billion in 1997 ... – PowerPoint PPT presentation

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Title: Successful Produce Promotion: Consumer and Retailer Trends


1
Successful Produce Promotion Consumer and
Retailer Trends
Wen-fei Uva Senior Extension Associate Department
of Applied Economics and Management Modified by
Georgia Agriculture Education Curriculum
Office June, 2002
2
When the Prices are High, Who Cares About
Marketing?
Cornell Horticultural Business Management and
Marketing Program
3
Your Marketing 4 Ps
Products
Promotion
Target Market
Price
Place
Cornell Horticultural Business Management and
Marketing Program
4
Promotion is an attempt to influence.
  • 5 Components of a Promotion Program
  • Advertising
  • Sales promotion
  • Public relations
  • Sales force
  • Direct marketing

Cornell Horticultural Business Management and
Marketing Program
5
Advertising
  • Most effective when trying to reach large amount
    of people to build awareness
  • Most effective advertising is narrowly targeted
  • Does not increase sales quickly - Changes minds
    but does not change behavior.
  • Select a media
  • will reach the target audience
  • is appropriate for the message conveyed

Cornell Horticultural Business Management and
Marketing Program
6
Sales Promotion
  • Coupons, discounts, in-store displays, trade
    shows, samples, in-store demonstrations,
    contests, and sponsoring retailers.
  • Motivate target market to change behaviors
  • Overused? Weaken brand loyalty
  • To supplement efforts in the advertising and
    personal selling.
  • Sales promotion often loses money - except a
    superior product paired with low awareness

Cornell Horticultural Business Management and
Marketing Program
7
Public Relations
  • Publicity (or public relation) uses non-paid
    communication presented by the media.
  • Publications, Events, News, Community
    involvement, Identity media, Lobbying activity,
    Social responsibility
  • A broad effort to influence publics attitudes
    toward the firm or its products.
  • Create a positive image

Cornell Horticultural Business Management and
Marketing Program
8
Sales Force
  • Most expenses (only 30 of time is spending on
    selling)
  • One on one selling can effectively find what
    customer really want
  • Hire good sales people, help them do a better job
  • Average retailer spent 65 on advertising for
    every dollar spent on training employees

Direct Marketing
  • Retail stores, direct selling, direct mailing,
    internet
  • Data -base marketing
  • Never forget customers, never let customers
    forget you

Cornell Horticultural Business Management and
Marketing Program
9
The Promotion World According to Retail
Cornell Horticultural Business Management and
Marketing Program
10
Sales of Top 8 Chains as a of Total Grocery
Sales
By 2004 - Top 8 food chains will account for 65
of total U.S. retail food sales
Cornell Horticultural Business Management and
Marketing Program
11
Shares of fresh food sales will continue to
increase in respect to total store sales
Produce Sales
percent of total store sales
Cornell Horticultural Business Management and
Marketing Program
12
  • Retailers dominate the retailer-supplier
    interface
  • Tough competition among suppliers
  • ECR and category management come to age

Cornell Horticultural Business Management and
Marketing Program
13
Promotion Most Effective in Moving Products
1. Shipper Displays 2. Targeted Direct
Mailing 3. Frequent Shopper Programs 4. In-Store
Demos and Sampling
Promotion Most Effective in Increasing Overall
Store Sales
1. Targeted Direct Mailing 2. Frequent Shopper
Programs 3. In-Store Demos and Sampling 4. Retail
Generated Shelf Talkers
Cornell Horticultural Business Management and
Marketing Program
14
Top Considerations When Evaluating a New Product
Introduction
1. Potential to increase overall store
sales 2. Potential to increase overall store
profit 3. Potential to increase product
movement 4. Create a price image for the
store 5. Potential to promote customer loyalty
Cornell Horticultural Business Management and
Marketing Program
15
Over 80 of new products fail
Top Promotional Programs Used for New Product
Introduction
1. In-store demonstrations and sampling 2. Slottin
g allowances 3. Co-op television
advertising 4. Co-op radio advertising 5. Paperles
s couponing
Cornell Horticultural Business Management and
Marketing Program
16
The Promotion World According to Consumers
Cornell Horticultural Business Management and
Marketing Program
17
American Food Consumption Trends
  • American spent 789 billion in 1999 and another
    96 billion for alcoholic beverages
  • 47.5 of the U.S. food dollars spent on
    away-from-home meals and snacks in 1999, up from
    34 in 1970 and 26 in 1960
  • Per capita expenditure on food 2,891
  • at-home - 1,517
  • away-from-home - 1,374
  • Only 10.4 of disposable personal income was
    spent on food in 1999 (25 in 1960)

Cornell Horticultural Business Management and
Marketing Program
18
American Food Consumption Trends
  • More ready-to-eat food is offered by grocery
    stores - 14 billion in 1997
  • More take-out food sales - 85 billion (12 of
    total food sales)
  • Todays consumer motivators
  • Convenience
  • Wellness
  • Safety
  • Gratification

Cornell Horticultural Business Management and
Marketing Program
19
Trends in Fruit and Vegetable Consumption
  • Changing Food Preferences
  • More attention to dietary and health
  • Exposed to more varieties of cuisine
  • Developed an upgraded palate
  • Looking for new ways to cook traditional
    favorites
  • New Product Introduction
  • Produce departments carry over 400 produce items
    today, up from 250 in 1980s and 150 in the
    mid-1970s
  • Fresh-cuts, packaged salads, locally grown items,
    exotic produce, and natural foods

Cornell Horticultural Business Management and
Marketing Program
20
Trends in Fruit and Vegetable Consumption
  • Convenient Items Continue to Grow
  • Packaged salads and precuts increased from 6.5
    of produce department sales in 1994 to 11.4 in
    1998
  • Changing Consumption Mix
  • Traditional varieties have lost share to
    specialty varieties.
  • Exotic produce has gained favor
  • Consumption of fresh fruits and vegetables
    increased more than processed products.
    (especially fruits)

Cornell Horticultural Business Management and
Marketing Program
21
Per Capita Consumption of Fruits and Vegetables
Total per capita use of the 129 commercially
produced fruits and vegetables rose 24 from 573
pounds in 1970 to 742 pounds in 1999
Cornell Horticultural Business Management and
Marketing Program
22
To Meet the Food Guide Pyramid
1995 Food Supply Servings Compared with Food
Guide Pyramid Recommendations
Cornell Horticultural Business Management and
Marketing Program
23
  • From 1970 to 1997, each American consumed
  • 81 lbs more of vegetables
  • 57 lbs more of fruits
  • 65 lbs more of grain products
  • 32 lbs more of caloric sweeteners
  • 13 lbs more of total read meat, poultry and fish
    (boneless, trimmed equivalent)
  • 17 lbs more of cheese
  • 13 lbs more of added fat and oil
  • 3 gallons more of beer
  • 70 fewer eggs
  • 10 gallons less coffee
  • 7 gallons less of milk

Americans Are Consuming More!
Cornell Horticultural Business Management and
Marketing Program
24
Socie - demographic Trends Favor Produce
  • Aging Population
  • More active, have and looking for foods to help
    prevent disease and improve quality of life

Cornell Horticultural Business Management and
Marketing Program
25
Socie - demographic Trends Favor Produce
  • More Two Income and Single-Parent Households
  • More families dont have time, but many have the
    extra income to pay for convenience, quality, and
    peace of mind

26
Socie - demographic Trends Favor Produce
  • Greater Ethnic Diversity
  • In the first half of the 1990s, the non-Hispanic
    white population grew 3, and the minority
    population grew 15 in the U.S..
  • The ethnic groups tend to use large quantities
    and many varieties of fresh produce in their
    cooking

Cornell Horticultural Business Management and
Marketing Program
27
New York Population
28
Max Brunk (1983) Marketing is Not Just
Selling! To Market is to Create Value To Offer a
Product or Service Which Someone is Willing to
Pay.
Differentiation and Diversification Give your
customer a REASON to buy your products
Cornell Horticultural Business Management and
Marketing Program
Cornell Horticultural Business Management and
Marketing Program
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