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1 “Consumer Fear Factor” Team Vizcaino Lulu Carranza Abiola Awotesu Chuck Fleming MaryLou Ortuvia Shane Ruppel.

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Presentation on theme: "1 “Consumer Fear Factor” Team Vizcaino Lulu Carranza Abiola Awotesu Chuck Fleming MaryLou Ortuvia Shane Ruppel."— Presentation transcript:

1 1 “Consumer Fear Factor” Team Vizcaino Lulu Carranza Abiola Awotesu Chuck Fleming MaryLou Ortuvia Shane Ruppel

2 2 Suntex Group, Ltd.  Founded by Blake La Grange  Third generation farmer  Developed “Safety wash System™”  Negative ion technology  Motivated to develop “Suntex Clean™” line of produce  Invented and developed packaging process to protect from contamination  “Suntex Clean™” line currently packages six varieties of produce  Includes potatoes, tomatoes, and apples

3 3 Objectives  To ascertain whether the consumer fear factor is real or fictitious  To establish consumer needs, expectations, and perceptions with regards to produce (specifically fruits and vegetables); to define what a quality product means based on this customer-based criteria  To determine whether Suntex products are viable for the Houston-area retail industry (i.e. grocery stores)  To determine whether grocery stores are interested in providing germ/chemical-free produce  To propose changes to the Suntex process and/or marketing mix to respond to consumer needs and expectations  To recommend procedures to attenuate retail industry fears and facilitate their acceptance of Suntex products

4 4 Results Over-View  Were unable to quantify a consumer fear factor  Found that there is a consumer concern, in order of importance, for appearance, taste and germ-free produce, regardless of brand name  Found that consumers are interested in germ-free, chemical-free produce and are potential buyers at a reasonable market price  Found that retail procurement seemed to believe that consumers have little concern for organic or germ/chemical-free produce

5 5 Retail Inquiries

6 6 Organics  Unsuccessful organic produce program  100% shrink during last period  Same storage/warehouse cooler for organic and conventional  No effective controls to prevent contamination of organic produce in store  Concern for soil residues only

7 7 Procurement  Centralized national buying  Stores had little or no autonomy Purchasing decisions In-store marketing

8 8 Survey Results

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21 21 Combined Results

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26 26 House of Quality

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28 28 Conclusion  Unable to ascertain the level of consumer fear  No discernable fear, at the store level, of germs and chemicals in produce  Desire for chemical and germ free produce was detected from the survey  House of Quality indicates that consumer priorities are strongest in taste and appearance

29 29 Suggestions  Focus marketing to enhance franchise opportunities and to partner with large produce corporations to use the “Suntex Safety Wash System™”  Enhance relationships with retailers with publicity fliers in Sunday paper announcing benefits of the “Suntex Safety Wash System™”  Continue and enlarge publicity campaign in order to publish information about the dangers of produce residues  Improve website with links to FDA studies, analogous products supporting the “Suntex Clean™” process, and educational articles about benefits of germ/ chemical free produce

30 30 Questions?


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