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Understanding Consumer Perceptions of Healthy Grown Potatoes Final Summary of Findings Report developed for:

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Presentation on theme: "Understanding Consumer Perceptions of Healthy Grown Potatoes Final Summary of Findings Report developed for:"— Presentation transcript:

1 Understanding Consumer Perceptions of Healthy Grown Potatoes Final Summary of Findings Report developed for:

2 Page 1 Table of Contents uProgram Overview uConsumer Research Objectives uApproach uParticipating Chains uFindings Summary uDetailed Findings uDemographic Breakdown uProgram Next Steps/Study Implications

3 Page 2 Program Overview In mid-2004, the Perishables Group began a multi- phase program designed to capture consumer attitudes and behaviors, then leverage this understanding with retailers through new sales tools and techniques this included: uPhase I: Research Program Development sSurvey Wisconsin potato shippers to understand existing sales efforts and future goals/ideas uPhase II: Consumer Research sConduct 500 consumer intercepts in key retail chains with and without the Healthy Grown product uPhase III: Performance Benchmarking sQuantify sales impact of Healthy Grown product at retail uPhase IV: Sales Toolkit Development and Training sCollect findings from all phases to develop new sales toolkit (presentation) and conduct training session on how to effectively utilize the new toolkit uPhase V: Program Evaluation sConduct follow-up survey of shippers to measure any change in overall satisfaction

4 Page 3 Survey Objectives In-store intercepts of consumers were conducted to quantify the following: uAre consumers open to the Healthy Grown product? uWhat draws them to the product? uWould they be willing to pay a premium for Healthy Grown? uWhat about the concept of Healthy Grown is most appealing? uWhat about the current packaging is most appealing? uWhy would they not purchase Healthy Grown? uIs certification of foods important?

5 Page 4 Approach In order to deliver against the objectives, the Perishables Group (PG): uWorked with the WPVGA and PH to develop a targeted interview questionnaire uSecured approval of key retailers to execute surveys in-store uExecuted the surveys and collected the data uAnalyzed the results to determine the implications for Healthy Grown sales and marketing strategy

6 Page 5 Participants A total of 500 consumers have completed the survey at the following retailers: uDominicks uJennifer Street Markets (Madison, WI) uSurface Foods (Parkersburgh, WV)

7 Summary of Findings

8 Page 7 Summary of Key Findings The survey generated feedback from a wide segment of the typical shopper: sAll were primary shoppers for their households s74% were women, 29% men s68% had at least 1 child s44% had completed college or graduate school s55% had an annual household income of $50,000+ sRespondents were frequent potato purchasers with 68% purchasing several times per month or more sThe majority of respondents were part of a very lucrative segment of consumers: moderate to affluent, educated with children

9 Page 8 Summary of Key Findings Healthy Grown appeals to consumers uOf 500 consumers surveyed, 88% said they were somewhat to very likely to purchase Healthy Grown potatoes after only seeing the bag sMore than 47% said they were very likely based on only briefly seeing the bag Purchase intent increased when shoppers heard about the Healthy Grown concept u81% of consumers indicated they were more likely to purchase Healthy Grown after hearing it was certified environmentally-friendly, WWF endorsed and good for you and the environment

10 Page 9 Summary of Key Findings Consumers will pay more for Healthy Grown uOf those who said they were likely to purchase Healthy Grown, 56% said theyd be willing to pay at least $1.00 more per bag than regular potatoes s80% were at least somewhat likely to still purchase at $0.50 more s93% were at least somewhat likely to still purchase at $0.25 more Those who were unlikely to purchase cited reasons unrelated to the Healthy Grown concept uOf the 36 consumers surveyed who said they were unlikely to purchase Healthy Grown, I dont buy potatoes in a bag was the #1 reason why uAll shoppers surveyed liked the concept and only 2 consumers said they did not care about the environment Consumers feel certification of claims made by food producers is important s88% said certification of growing methods is important to them. Only 3% said they did not know if certification was important

11 Page 10 Research shows consumers are looking for Healthy Grown potatoes uBoth men and women had high percentages of those likely to purchase Healthy Grown s59% of males were somewhat to very likely to pay $1 more per bag for Healthy Grown, compared to 44% of females uNearly three-quarters of shoppers with children (74%) were likely or very likely to purchase, compared with only 58% of those w/o children uCaucasians had the highest percentage of shoppers very likely to purchase (52%), although African Americans (32%) and Asians (50%) also were likely to purchase sHispanics and Asians were drawn to the reduced pesticides messaging, while Caucasians liked the name and African Americans first priority was the high quality of the potatoes uWhile all education levels had high interest in purchasing healthy grown, those with a HS education or less had the highest percentage of those very likely to purchase uAll income levels were interested in Healthy Grown Consumer In-Store Survey 11/04 -1/05 Summary of Key Findings

12 Study Implications

13 Page 12 Study Implications/Recommendations Price Healthy Grown at a Premium Results show that consumers are willing to pay at least a quarter more per bag, and more than half would pay up to $1 more. HG producers may be able to segment the potato market with this offering, based on consumer likelihood to purchase at a higher price Incorporate feedback in key message adoption We know what consumers liked about Healthy Grown and when they heard it, it increased their likelihood to purchase. Messages that resonated well with shoppers should be compiled into a clear, concise key statement used consistently across all communication Support qualitative with quantitative Consumer research shows how this product can succeed at retail in theory. Prove this point to retailers through a pilot program with analysis of sales impact of Healthy Grown. Support the product introduction with a best practices merchandising, price and promotion strategy. The end result will be a turn-key program with conclusive evidence of success. If budget does not support full Healthy Grown pilot, utilize opportunities like USPB Best in Class to gain distribution of Healthy Grown and analyze sales.

14 Page 13 Study Implications/Recommendations Champion the story Draft a press release to the trade media alerting them of the research findings, especially considering the support of eco-friendly produce as a growing trend within retail Provide new package options The main detractor for consumer purchase of Healthy Grown was the 5 lb and 10lb size limitation. Consider expanding to a smaller size package (i.e. 3lb and tray-pack) to offer a total product solution

15 Detailed Findings

16 Page 15 Detailed Findings Potato Purchase Frequency uParticipating consumers were frequent purchasers of potatoes, with 68% purchasing more than once per month

17 Page 16 Detailed Findings Planned Purchase uFor nearly three-quarters of survey participants, potatoes were part of their shopping list

18 Page 17 Detailed Findings Purchase Drivers uConsumers look at the price (62%) of potatoes as well as appearance and quality (53%) over brand name, packaging or nutrition information. sNote: Size was the most popular open-ended Other answer

19 Page 18 Detailed Findings Purchase Likelihood Based on Appearance Only uAfter being shown the Healthy Grown bag, 88% of consumers said they were at least somewhat likely to purchase. s68% said they were likely to very likely

20 Page 19 Detailed Findings Healthy Grown Purchase Drivers (Based on Appearance) uQuality and the name Healthy Grown resonated most with consumers each mentioned by 42% of respondents uThe recipes were appealing to 35% of respondents and the good for you and the environment messaging were mentioned by nearly 30% uPopular other open-ended answers were: good size; attractive bag and the word healthy

21 Page 20 Detailed Findings Purchase Detractors uPreferring to purchase potatoes in bulk (not any particular attribute of the Healthy Grown product) was the most common reason respondents would not purchase uNo consumers surveyed said they disliked the concept of Healthy Grown sThe most popular Other answer was the quantity (too large); not being able to see the potatoes in the bag and fear of a higher price for Healthy Grown

22 Page 21 Detailed Findings Likelihood of Purchase After Product Knowledge uAfter hearing about the Healthy Grown concept, 81% indicated they were now at least somewhat more likely to purchase the product sOnly 2% said they were somewhat to less likely to purchase

23 Page 22 Detailed Findings Likelihood of Purchase After Knowledge Cont. uAfter looking at the bag only, 58 consumers had stated they were not likely to purchase Healthy Grown uAfter hearing more about the product concept, 38% of those consumers were now more likely to purchase the product sOnly 18% (10 consumers) said they were less likely to purchase

24 Page 23 Detailed Findings Concept Purchase Triggers u35% consumers liked that Healthy Grown used fewer pesticides uEnvironmental benefits enticed nearly a third of respondents, which scored higher than the good for me message (28%) uIn the open-ended Other category, the majority of respondents mentioned the products Healthy name appealing to them

25 Page 24 Detailed Findings Concept Purchase Detractors uThe main reasons why consumers would purchase Healthy Grown was unrelated to the environmentally-friendly concept, only 2 respondents said they were not concerned about the environment

26 Page 25 Detailed Findings Healthy Grown Pricing uOf all consumers surveyed, 56% of consumers said they were Very Likely to purchase Healthy Grown in place of their typical potato purchase uOverall, only 9% said they were somewhat to unlikely to purchase Healthy Grown

27 Page 26 Detailed Findings Healthy Grown Pricing -- $0.25 Increase u93% of respondents said they were somewhat likely to purchase Healthy Grown at a $0.25 premium sThis number actually increased by 2% from those who were at least somewhat likely to purchase at the same price uAs expected, the number of people who said they were Very Likely decreased, however 44% said they were very likely to purchase at the premium price

28 Page 27 Detailed Findings Healthy Grown Pricing -- $0.50 Increase uAt a $0.50 premium, 80% of respondents said they were still at least somewhat likely to purchase sA third of consumers were still likely or very likely to pay $0.50 more for a bag of Healthy Grown uOnly 20% of consumers were now somewhat unlikely or unlikely to purchase Healthy Grown at the higher premium rate sNote: Only consumers who said they were somewhat or more likely to pay a $0.25 premium were asked this question

29 Page 28 Detailed Findings Healthy Grown Pricing -- $1.00 Increase uMore than half of consumers (56%) were still at least somewhat likely to pay a $1 more per bag for Healthy Grown potatoes s31% were at least likely to very likely to pay a $1 premium

30 Page 29 Detailed Findings Healthy Grown Awareness uOnly 6% of consumers had previously heard of Healthy Grown potatoes prior to the survey

31 Page 30 Detailed Findings Healthy Grown Awareness uOf the 6% who had heard of Healthy Grown, 46% had previously purchased the product sOnly 1 respondent indicated they had seen the billboards sNone of the respondents recalled any of the other marketing vehicles

32 Page 31 Detailed Findings Opinions on Certification uJust under 40% named a third-party responsible for certification uAbout a third felt the government was involved in certification uA quarter of respondents called certification a guarantee of quality

33 Page 32 Detailed Findings Opinions on Certification u88% of consumers feel certification in important in food claims made by growers sConsumers were definitive about their opinion on this, only 3% said they dont know about certification

34 Page 33 Detailed Findings Opinions on Certification uAbout 70% of consumers feel the government should be involved in certification of foods u24% felt a non-profit independent organization should handle food certification

35 Page 34 Detailed Findings Terms for Certification uRespondents were fairly divided on the best description for food certified grown environmentally-friendly sCertified Environmentally Friendly scored highest (32%) sCertified for Environmental Quality was second most popular with 30% sCertified Responsibly Grown was the choice of 22% of consumers sCertified by Protected Harvest scored lowest (only 5%)

36 Key Findings by Demographic

37 Page 36 Key Demographic Findings Healthy Grown Purchase by Income uThe lowest income group had the highest percentage who were very likely to purchase Healthy Grown

38 Page 37 Key Demographic Findings Purchase Likelihood by Income uAt least 51% of all income groups said they were more likely to purchase Healthy Grown after hearing more about the concept s76% of shoppers in the lowest income group were more likely to purchase

39 Page 38 Key Demographic Findings Purchase Likelihood by Education uAll education level groups at least 59% of consumers who were at least somewhat likely to purchase sThe highest percentage of Very Likely came from the High School graduates and less groups

40 Page 39 Key Demographic Findings Purchase Likelihood after Knowledge by Education uThe percentage of respondents stating the Healthy Grown concept made them more likely to purchase was highest in the High School or less, Some College and Grad School or higher education levels

41 Page 40 Key Demographic Findings Healthy Grown Purchase by Ethnicity uMore than half of Caucasians stated they were very likely to purchase Healthy Grown, compared with 28% of African Americans and 18% of Hispanics uAfrican Americans had the highest percentage of not very likely at 14%

42 Page 41 Key Demographic Findings Purchase Drivers by Ethnicity uDifferent attributes of the Healthy Grown package appealed to the various ethnic groups sCaucasians were driven by the name and the quality sMore than three-quarters of Hispanics cited the quality sThree-quarters of Asians noted the good for you, good for the environment statement

43 Page 42 Key Demographic Findings Purchase Likelihood by Ethnicity uCaucasians had the highest percentage of respondents say they were more likely to purchase after hearing the Healthy Grown concept (59%) uHispanics had the highest percentage of respondents say they were somewhat or less likely to purchase (15%) after hearing more about Healthy Grown

44 Page 43 Key Demographic Findings Healthy Grown Purchase by Household Size uOnly 9% of shoppers with children in the home stated they would be somewhat or unlikely to purchase Healthy Grown sOnly 19% of those without children were unlikely to purchase uNearly three-quarters of those with children (74%) were likely or very likely to purchase, compared with only 58% of those without children

45 Page 44 Key Demographic Findings Appealing Attributes of Healthy Grown by HH Size uReasons for liking the Healthy Grown concept did not differ greatly between those with and those without children sQuality and the name were nearly equally important to both groups while Good for the environment had a slightly higher percentage of respondents who had children

46 Page 45 Key Demographic Findings Healthy Grown Pricing by Household Size uHouseholds with and without children present would purchase Healthy Grown at 50 cents more per bag sAt a $1 more per bag, those with children had a slightly higher percentage of those unlikely to purchase

47 Page 46 Key Demographic Findings Healthy Grown Purchase by Gender uA higher percentage of males (90%) than females (79%) indicated they were at least somewhat likely to purchase Healthy Grown sMales also had a higher percentage (52%) of say they were very likely to purchase compared to women (31%)

48 Page 47 Key Demographic Findings Purchase Likelihood by Gender uAfter learning more about the Healthy Grown concept, 57% of males said they were more likely to purchase, compared with only 39% of females

49 Page 48 Key Demographic Findings Healthy Grown Pricing by Gender u At both 50 cents and $1 more per bag, more males were willing to pay more for Healthy Grown than females sAt $1 more per bag, 59% of males were at least somewhat likely to purchase Healthy Grown, compared with only 44% of females

50 Demographic Profile

51 Page 50 Demographic Profile Results included here are based on 500 consumer intercepts. Typical Respondent Overall uHousehold Size: 2-3 children at home uAge: 25 – 34 years of age uHousehold Income: $50,001 to $75,000 uEthnicity: Caucasian uGender: Female uEducation: College Graduate

52 Page 51 Demographics While the majority of respondents were female, males made more than 25% of responses.

53 Page 52 Demographics Caucasians represented 84% of respondents with African-Americans accounting for just under 9% and Hispanics about 4%

54 Page 53 Demographics 68% of consumers had at least 1 child living in the household with a full third of respondents having 2-3 children.

55 Page 54 Demographics Consumers surveyed were a balanced cross section of income levels, with the largest percentage (27%) falling into the $50,001-$75,000 range

56 Page 55 Demographics Survey respondents were well educated, with 44% completing college or higher degree.


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