Session
Session Two
Two
Building
Building Demand
Demand –– Promotions,
Promotions,
Marketing
Marketing and
and Customer
Customer and
and
Consumer
Consumer Trends
Trends and
and
Expectations
Expectations
New
New Zealand
Zealand and
and Australia
Australia Avocado
Avocado
Grower
’s Conference
’05
Grower’s
Conference’05
20
-22 September
20-22
September 2005
2005
Tauranga
Tauranga,, New
New Zealand
Zealand
Fresh Change:
A Fresh Dimension
in Data Analysis and
Retail Strategy
Marie Piccone & Wanita Judge , Fresh Change
Michael Geraghty, Hampton Orchards
Michael Simonetta, Perfection Fresh Australia
What is Fresh Change about ?
z
z
z
¾
¾
Strategic facilitation of change and competitive
advantage in fresh products
Objective and comprehensive evaluation of retail
situations and marketing opportunities
Monitoring tool and a platform to ‘fine tune’ product
alternatives, product positioning and image,
variations and reinventions
Customer satisfaction
Improved returns to all partners including retailers,
supply chain managers and growers
Avocado Perfect Pack
A COMMERCIAL CASE STUDY
Joint initiative of Hampton Orchards, Perfection Fresh
Australia, IGA Australia, Fresh Change & Piccone PHC
A trial product available exclusively from
Perfection Fresh
A New Product Concept
z
z
z
z
A premium pre-pack
of avocados
Contains 2 x size
18/20’s Hass
Avocados
Product is supplied
sprung
Backed by a 100%
quality guarantee
Why the Perfect Avocado ???
z
z
z
z
Consumer want confidence in the product
that they buy - “ will they be OK inside ? ”
Consumers also want ripe & ready to eat
avocados
Significant trend in the UK for “premium” prepacks rather than just “value” pre-packs
A premium prepack offering has not been
trialed before in Australia
Product Trial
z
z
z
z
Product was first trialed in
Oct/Nov 2004
Modifications have since
been made to the product’s
packaging based on stage1
of the trial
Value adding retailer sales
tools have also been
developed based on
feedback from stage 1
Signage for display and
promotional material for
consumers
A3 Poster for use in
Retail prep areas
How can avocados be
“Perfect” ?
Information to retailers z Carefully selected network of growers
z Expert horticultural advice is provided to growers
e.g ideal growing conditions, water volumes and
nutrient levels to prevent disease & blemish
z PFA uses the latest technology available in
controlled ripening. This process helps to minimise
disease & blemish
z Correct product storage & handling must be
employed at all stages along the supply chain
z Product is robust but can not tolerate temperature
or handling abuse
Promotions
Information to Retailers
z
z
z
z
Each store will receive at
least one in-store
demonstration every 4
weeks for the duration of
the 12 week trial
Demonstration = 4 hours
Recipe leaflets to be
distributed
Customer surveys
conducted in-store
Key to Success
– Correct Storage & Handling
Information to Retailers
z
z
Sprung avocados require very different
handling procedures to rock hard green
avocados
Perfect Pack avocados will arrive in your
store “sprung” (having been controlled
ripened)
Product Pricing
Information to Retailers
z
z
z
Set seasonal pricing to take the peaks
and troughs out of the market
Premium price for a premium product
72% of customers are prepared to pay a
premium for a “perfect” avocado
Costing Model for
Avocado Perfect Packs
z
z
z
z
z
z
z
z
Assumptions/Inputs
Input Costs
Pack Costs
Marketing Costs
Freight to D/C and Stores
Other Charges
Work Back Calculation
Unit/Pack Cost summary → Cost into store
Paddock to plate .......
Harvest
PFA Cold
Storage - 6°c
Metcash
DC - 4°c
Packing & PFA
Cold Stores - 4°c
Control ripening – Phase 1
(Ethylene treatment)
16°c-20°c for 1-2 days
Control ripening -Phase 2
16°c-20°c for 1-2 days
IGA Stores
Option 1
Store at 4°c for up to
5 days
Option 3
Retail Display – Hot Weather
≥ 22°c for max of 2 days
Option 2
Retail Display
18°c - 20°c for up to 3 days
Purchase by Customer
Option 1
Eat Now
(store at room temp)
Option 2
Keep for later
(refrigerate & eat within 7
days
AVOCADO
PERFECT PACK
Fresh Change Project
Interim Results – used to
objectively monitor, research,
evaluate, review, negotiate,
convince and plan
Avocado
Perfect Pack Project
‰
‰
‰
‰
Results from monitored stores
Scan data
Product benchmarking
Consumer surveys
Store 4 – Avocado Sales
Daily Average Sales of Avocados - Store 4
40
35
Number of Sales (units)
30
25
Loose avocados
Perfect Packs
All avocados
20
15
10
5
0
1/10-10/10
11/10-17/10
18/10-24/10
25/10-31/10
Date range
1/11-7/11
8/11-14/11
15/11-21/11
Store 4 – Retail Price of Avocados
Retail Price of Avocados - Store 4
6
Loose avocados 1 fruit
4.97
5
Retail Price ($ per unit)
4.63
Perfect Packs 2 fruit
4
3.28
2.98
3
2.58
2.54
2
2.54
1.98
1.95
1.47
1.29
1
0
0
0
0
1/10-10/10
11/10-17/10
18/10-24/10
25/10-31/10
Date range
1/11-7/11
8/11-14/11
15/11-21/11
Store 4 – Breakdown
of Avocado Sales
Avocado Lines as a Percentage of Total Avocado Sales (%)
120
Avocado lines (% of total avocado sales)
100
80
Perfect Packs
Loose avocados
60
40
20
0
1/10-10/10
11/10-17/10
18/10-24/10
25/10-31/10
Date Range
1/11-7/11
8/11-14/11
15/11-21/11
Store 4 – Daily Profit ($)
for Avocados
Daily Average Profit for Avocados - Store 4
25
Average Daily Profit ($)
20
15
Loose avocados
Perfect Packs
All avocados
10
5
0
1/10-10/10
11/10-17/10
18/10-24/10
25/10-31/10
Date range
1/11-7/11
8/11-14/11
15/11-21/11
Store 4 - % GP for avocados
% GP for Avocados - Store 4
50
45
40
35
GP (%)
30
Loose avocados
Perfect Packs
25
20
15
10
5
0
1/10-10/10
11/10-17/10
18/10-24/10
25/10-31/10
Date Range
1/11-7/11
8/11-14/11
15/11-21/11
Store 4 - Avocado Profit
(% of total F & V)
Weekly Avocado Profit as a Percentage of Total F & V Profit (%) - Store 4
9
8
All avocados
Avo Profit as % of F & V Profit
7
6
5
4
3
2
1
0
3/10-10/10
11/10-17/10
18/10-24/10
25/10-31/10
Date Range
1/11-7/11
8/11-14/11
15/11-21/11
Store 4 – No. of customers
buying avocados (%)
Proportion of customers buying avocados (%) - Store 4
4
3.5
% of customers buying avocados
3
2.5
Loose avocados
Perfect Packs
All avocados
2
1.5
1
0.5
0
1/11-7/11
8/11-14/11
Date Range
15/11-21/11
5/
09
/2
00
12
4
/0
9/
20
19
04
/0
9/
20
26
04
/0
9/
20
04
3/
10
/2
00
10
4
/1
0/
20
17
04
/1
0/
20
24
04
/1
0/
20
31
04
/1
0/
20
04
7/
11
/2
00
14
4
/1
1/
20
21
04
/1
1/
20
04
Units
Weekly Unit Sales
Store 3 - Weekly Sales (Units)
1000
900
800
700
600
Loose
500
4 Pack
400
P Pack
300
Total
200
100
0
Date
1/
11
/2
00
3/
11 4
/2
00
5/
11 4
/2
7/ 004
11
/2
00
9/
11 4
/2
00
11
4
/1
1/
13 200
4
/1
1/
20
15
04
/1
1/
20
17
04
/1
1/
19 200
4
/1
1/
20
21
04
/1
1/
20
04
$/Unit
Daily Unit Prices
Store 3 - Daily Sale Price/Unit
7
6
5
4
Loose
4 Pack
3
P Pack
2
1
0
Date
Sales Turnover per square metre
& Gross Profit per square metre
Store 3 - Sales Turnover/m2
Store 3 - Profit/m2
250.00
450.00
400.00
200.00
350.00
Loose
250.00
4 pack
200.00
P Pack
$ GP/m2
$/m2
300.00
150.00
Loose
4 pack
P Pack
100.00
150.00
100.00
50.00
50.00
0.00
0.00
4
4
4
4
4
4
4
4
4
00 20 0 20 0 20 0 2 00 2 00 2 00 2 00 2 00
/
/
/
/
/
/2
/
/
/
1
1
1
1
1
1
1
1
1
1
1
1
1
/1
/1
/1
/1
/1
2/
8/
6/
4/
18
16
14
12
10
4
4
4
4
4
4
4
4
4
0 0 20 0 20 0 20 0 2 00 2 00 2 00 2 00 2 00
/
/
/
/
/
/2
/
/
/
1
1
1
1
1
1
1
1
1
1
1
1
1
/1
/1
/1
/1
/1
2/
4/
6/
8/
10
12
14
16
18
Date
Date
Blemish Levels – Store 3
4 Pack Avocados - Blemish Levels - Store 3
100
80
No Blemish
Slight Blemish
Noticeable Blemish
Significant Blemish
60
%
40
Loose Avocados - Blemish Levels - Store 3
20
0
2/11/2004
100
80
Slight Blemish
%
Noticeable Blemish
Significant Blemish
40
Perfect Packs - Blemish Levels - Store 3
20
0
2/11/2004
16/11/2004
Date
No Blemish
60
9/11/2004
100
9/11/2004
16/11/2004
80
Date
No Blemish
60
Slight Blemish
%
Noticeable Blemish
Significant Blemish
40
20
0
2/11/2004
9/11/2004
16/11/2004
Date
Fruit Firmness – Store 3
Loose Avocados - Firmness - Store 3
100
80
Hard
60
Slightly soft
40
Soft
%
Very soft/mushy
20
0
2/11/2004
9/11/2004
16/11/2004
Date
4 Pack Avocados - Firmness - Store 3
100
80
60
Hard
Slightly soft
40
Soft
%
Very soft/mushy
20
0
2/11/2004
9/11/2004
16/11/2004
Date
Perfect Packs - Firmness - Store 3
100
80
Hard
60
Slightly soft
40
Soft
Very soft/mushy
%
20
0
2/11/2004
9/11/2004
16/11/2004
Date
Fruit Size – Store 3
4 Pack Avocados - Size - Store 3
100
80
14-16
18-20
22-23-25
28-30
60
%
40
Loose Avocados - Size - Store 3
20
100
0
2/11/2004
80
%
40
Perfect Pack Avocados - Size - Store 3
20
0
2/11/2004
16/11/2004
Date
14-16
18-20
22-23-25
28-30
60
9/11/2004
100
9/11/2004
16/11/2004
80
Date
14-16
18-20
22-23-25
28-30
60
%
40
20
0
2/11/2004
9/11/2004
Date
16/11/2004
Fruit Shape – Store 3
4 Pack Avocados - Shape - Store 3
100
Loose Avocados - Shape - Store 3
80
100
60
Normal
%
80
Misshapen
40
60
20
Normal
Misshapen
%
40
0
2/11/2004
20
9/11/2004
16/11/2004
Date
0
2/11/2004
9/11/2004
16/11/2004
Date
Perfect Pack Avocados - Shape - Store 3
100
80
60
Normal
40
Misshapen
%
20
0
2/11/2004
9/11/2004
16/11/2004
Date
Skin Colour – Store 3
4 Pack Avocados - Colour - Store 3
Loose Avocados - Colour - Store 3
100
80
100
60
Green
Black
40
Grn/Black
%
80
20Green
60
Black
%
0
Grn/Black
2/11/2004
40
9/11/2004
20
0
2/11/2004
16/11/2004
Date
9/11/2004
16/11/2004
Date
Perfect Pack Avocados - Colour - Store 3
100
80
60
Green
Black
40
Grn/Black
%
20
0
2/11/2004
9/11/2004
16/11/2004
Date
In-store Monitoring
z
z
z
z
z
z
z
Position in store and location in relation to
other products
Signage and other information
Size of display
Overall presentation
Product rotation
Specific store characteristics
Handling practices
What influences your decision to
purchase avocados?
Purchase Decision Factors
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Not Ripe
Too Ripe
Price
Size
Appearance
Taste
72 % of those surveyed said they
would pay a premium for ‘perfect’
avocados
Would you pay a premium price knowing that
you were getting 2 "perfect" avocados every time?
No
28%
Yes
72%
Consumer perception of ‘pack’
Perfect Avocado Packaging
100%
90%
80%
70%
Product
Protection
60%
No
Yes
50%
40%
30%
20%
10%
0%
Yes
No
Impression of Quality
Customer Loyalty
Do you purchase your avocados from the one place each week?
Yes- 34%
No- 66%
Yes
34%
No
66%
Outcomes of the Project
;
Provided objective detailed analysis of scan
data, product display data, retail environment
and consumer reaction
;
Identified the drivers which influenced
consumer purchase behaviour
;
Clearer picture to enhance category
management and strategic planning
Outcomes of the Project
;
Identify, trial and capture opportunities for
improvement and innovation in retail performance
and supply chain processes
;
Useful and convincing tool to build relationships
and enhance retail performance, consumer
satisfaction and profitability of all stakeholders
in the supply chain