Shopping the Fresh Produce Fixture in Ireland Date: January 2008 1 Table of Contents Introduction – Research Method .........................................................4 Key Objectives........................................................................................................5 Research Methodology...........................................................................................5 1. Standard Focus Groups.................................................................................5 2. Extended Groups...........................................................................................6 3. Observational Intercept Sessions ...................................................................6 4. In-depth interviews.........................................................................................7 Challenges That Faced This Research................................................8 Challenge 1: The Category Itself ............................................................................8 Challenge 2: The Customer....................................................................................8 Challenge 3: The Impact of Usage & Consumption on Purchase Behaviour .........8 An Overview of Fresh Produce Consumer Behaviour .......................9 Positioning of ‘the Fresh Produce Purchase’ in Consumers Minds ........................9 1. Heritage Factors................................................................................................9 2. Consumption Behaviour ....................................................................................9 3. Purchase Behaviour ........................................................................................10 The Impact of Heritage and Consumption on Purchase.......................................10 Implications of ‘Differing’ Behaviour in the Fresh Produce Category....................11 Previous Research and Competing Foods ...........................................................11 Competing Foods & the Most Important Factors Impacting Fruit & Vegetable Consumption .......................................................................................................12 Method of Storage...............................................................................................12 Fresh Prepared Produce .....................................................................................13 Fresh Produce Shopper Types.............................................................................14 ‘Shopper Type’ Purchase Decision ‘Consideration Sets’......................................15 Evoked Set ..........................................................................................................15 Inert Set...............................................................................................................15 Inept Set..............................................................................................................16 Invisible Set .........................................................................................................16 ‘Browser’ Shopper Type .......................................................................................17 ‘Browsers’ - Heritage, Consumption and Food Preparation .................................17 ‘Browsers’ - Attitudes and Purchase Behaviour ...................................................18 2 Consideration Set for ‘Browsers’ .........................................................................18 ‘Habitual’ Shopper Type .......................................................................................19 ‘Habituals’ - Heritage, Consumption and Food Preparation .................................19 ‘Habituals’ - Attitudes and Purchase Behaviour ...................................................20 Consideration Set for ‘Habituals’ .........................................................................20 ‘Needs Satisfier’ Shopper Type ............................................................................21 ‘Needs Satisfiers’ - Heritage, Consumption and Food Preparation ......................21 ‘Needs Satisfiers’ - Shopper Attitudes and Purchase Behaviour..........................22 Consideration Set for ‘Needs Satisfiers’ ..............................................................22 Additional Shopper Sub-Types .............................................................................24 The ‘Impulsive’ Shopper Type .............................................................................24 The ‘Bargain Hunter’ Shopper Type ....................................................................24 The Fresh Produce Shopping Experience............................................................26 Moving Towards the Shopping Fixture.................................................................26 Pre-Shop Behaviour ............................................................................................26 Shopping the Fixture ...........................................................................................26 Point of Sale Experience .....................................................................................26 Pre-Shop Behaviour: Types of Shopping Occasions............................................27 Channel Choice ...................................................................................................28 Preplanning – Shopping Lists ..............................................................................29 Retailer Choice....................................................................................................30 Impact of Retailer Experience on Perception of the Category..............................31 Shopping the Fresh Produce Fixture ....................................................................32 Store Layout - Category Position.........................................................................32 Store Dynamics ...................................................................................................32 Store Dynamics and Freshness...........................................................................33 Store Atmosphere ...............................................................................................34 Shopping Styles ..................................................................................................35 Shopping Basket Choices ...................................................................................36 Shopping Route – In The Fresh Produce Category .............................................37 Point of Sale Experience ......................................................................................38 1. In-Store Communication..................................................................................38 2. Shelf Layout ....................................................................................................38 3. Promotions ......................................................................................................38 4. Packaging .......................................................................................................39 5. Pack Format ....................................................................................................39 6. On-Pack Communications ...............................................................................40 3 Introduction – Research Method Fresh produce sales represents one of the most important food categories in all retail outlets in Ireland; second only to dairy produce (Source: TNS Worldpanel). Given the importance of fresh produce, Bord Bia regularly conduct consumer market research into trends in behaviour and attitudes in relation to fruit, vegetables, potatoes and prepared salads. This has been conducted every two years since 1998 and has taken the form of an extensive quantitative research study. Following the most recent study, commissioned in November 2006, Bord Bia were keen to expand further their knowledge of the consumer purchase process in this category. In September 2007 TNS mrbi (market research consultants) were commissioned to employ extensive and varied qualitative research methods into how consumers actually shop the fresh produce fixture. The qualitative research mix comprised a series of discussion groups, instore extended groups, accompanied shops and intercept shops. These methods included extensive in-store interviews with consumers which largely focused on customers of the main grocery retailers. Bord Bia would like to thank each retailer who facilitated this research in their stores for their co-operation in carrying out the research. The research outlined in the document builds on the findings of the Bord Bia quantitative study undertaken at the end of 2006, to examine key purchase decision making processes for fruit and vegetable purchases specifically at the point of purchase. This report is written up not only to present the key research findings but also to present an analysis of the implications of the research. The insights from this examination are targeted towards actionable recommendations and in so doing hopefully present opportunities for suppliers and retailers of fresh produce in Ireland. For further information on this research report contact: Lorcan Bourke, Strategic Information Services Bord Bia, Clanwilliam Court, Dublin 2. Phone 01-6685155 lorcan.bourke@bordbia.ie 4 Key Objectives The primary objective of the consumer market research was: “To understand purchase behaviour in terms of shopper decision making around the fresh produce fixture (in-store) leading to purchase”. Additional more specific objectives included the need: • To examine the degree to which consumers’ decision making was list driven versus impulse or reactionary sales • To explore how needs, in terms of repertoire of meals and occasion, drove the purchase decision • To determine what other concerns and issues influenced and directed purchase behaviour • To examine the performance of the fixture in terms of its positioning in-store and the ease with which the category was navigated • To examine the impact of all these factors on improving fresh produce sales Research Methodology A number of qualitative approaches were employed to achieve the objectives of this research each of which was some variation of either a discussion group or individual consumer interviews. In terms of the groups, consumers of regular purchasers of fruit, vegetables and potatoes were recruited to take part in a series of discussion groups. All the individual consumer interviews took place at the fresh produce fixture in-store. As such four distinct types of qualitative research methods were used: 1. Standard Focus Groups Respondents were brought to a central location to discuss their attitudes and behaviour towards the fresh produce category. This was valuable because it enabled a good understanding of the behaviours that they perceived to be important prior to shopping the fixture and also their expectations about the fresh produce fixture. 5 The details of these standard focus groups are shown below: Group No. Location Gender Age SocioEconomic Household Type 1 Cork Mixed 30-40 C1C2 Married with/ without kids 2 Dublin Mixed 25-35 BC1 Single/co-habiting (Commuting) 3 Galway Female 50+ C1C2 Empty nesters 2. Extended Groups Prior to any discussions about the fixture, respondents were brought to two competing grocery retail outlets. They were asked to explore the fresh produce category from the perspective of shopping it and conducted a number of exercises to examine their attitudes to buying a range of fruit, vegetables and potatoes. Issues such as produce freshness, appearance, availability, presentation and price were all explored. The details of these extended focus groups are found below: Group No. Location 1 Dublin Store Gender Age SocioEconomic Household Type Female 35-45 BC1 Family with kids Female 45-55 BC1 Family with older kids Superquinn SuperValu Tesco 2 Cork Dunnes Stores 3. Observational Intercept Sessions A series of three (two hour) sessions were conducted in-store across retail outlets. Qualitative researchers were tasked with observing the behaviour of regular fresh produce shoppers and to then interview them for a short period afterwards about their behaviour. The purpose of this was to counter any research effect that can occur with recruiting customers and to get closer to actual behaviour at the fixture. The details of the locations of these intercept sessions are found on the next page. 6 Intercept Session No. Location Store 1 Cork Dunnes Stores 2 Dublin Tesco 3 Dublin Superquinn 4. In-depth interviews A small number of follow up in-depth interviews with individual consumers were conducted in-store to confirm the findings of the other methodologies. All research took place between August and September 2007. 7 Challenges That Faced This Research During the course of the research, it became apparent that specific issues were present in the study of the fresh produce fixture that was less evident in other grocery categories. Challenge 1: The Category Itself In relative terms, the fresh produce category is one of the most advanced categories in the supermarket. The fresh chain logistical systems that supply the category are, by necessity, sophisticated. The category also has continued to evolve in terms of layout and design instore. The emphasis for much of these changes has been related to increasing freshness cues in signage and at point of sale. Merchandising has also evolved significantly, with clear strategies emerging across different Irish retailers. It is also the subject of ongoing category research by all retailers, as it represents an important destination in the shop for most customers looking to conduct both main and top up shops. In terms of the research findings presented in this report, the already highly developed nature of the fresh produce category, rules out any significant ‘leap change’ recommendations in terms of bringing about major improvements to lift sales. Challenge 2: The Customer Purchase behaviour within the category shows many contradictions and anomalies. Individuals who may have a very experienced knowledge of a wide array of fresh produce items can have some surprisingly large gaps in their basic knowledge. In addition, the category itself is very diverse and includes a large number of different products that are equally distinct in terms of their usage, preparation and consumption. In addition, the behaviour of the customer was found to be driven by their own personal life experiences, which have been built up for years. When these are combined with responses to stimulus available during the shop, it can lead to inconsistent responses while at the fixture. Such inconsistencies need to be taken into account of when examining shopping behaviour. Challenge 3: The Impact of Usage & Consumption on Purchase Behaviour More than most categories the overall attitudes and knowledge of fresh produce items leads to usage and consumption, which impacts the overall likelihood to purchase in the first place. Usage of products in other categories such as snack food, household cleaners and soft drinks is very straight forward - consumers like or need the product, purchase it and then consume it. In contrast, the purchase process itself was found to be important but only one of a number of different elements influencing choice - particularly for vegetables. Issues such as who in a household likes or eats a particular produce item and/or how easy it is to store, prepare or cook it, combine to create a set of complex purchase and consumption decisions for the actual purchaser. Produce is often vetted for approval (and preference) by family members and also has to be prepared correctly for consumption. Understanding & harnessing the role that consumption plays in the overall purchase process, is a crucial element of any strategy to increase fresh produce sales 8 An Overview of Fresh Produce Consumer Behaviour Positioning of ‘the Fresh Produce Purchase’ in Consumers Minds • Purcha se behaviour • Consum ption behaviour • Heritage Much like the iceberg, where 90% of the m ass lies under the water, m uch of the purchase process is influenced by factors outside of the shop. W hat fruit and vegetables are eaten and how they are eaten will hav e a direct im pact on purchase. At a m ore fundam ental level, experiences consumers hav e had in the past will strongly im pact what fruit and vegetables they purchase. Consumers have very clearly been effected by the way they w ere brought up and educated in relation to fresh produce when they w ere younger. Consumer behaviour factors with regard to the fresh produce category can be subdivided into three clear areas: Heritage, Consumption Behaviour and Purchase Behaviour. 1. Heritage Factors The past experiences and exposure to certain food types/items that include vegetables and fruit are hugely influential on subsequent propensity to consume and hence trial and purchase. These are the ideas, prejudices and desires that have developed as part of the purchasers growing up through changes in life stages. These experiences (and education) can also strongly impact our knowledge and comfort with general food preparation. These factors are most difficult to alter because they have been with us for so long. For example: if you grow up in a family who believe strongly in the benefits of fresh food, scratch cooking and who are knowledgeable in their use of a lot of different fruits and vegetables – more than likely this exposure will make you place a high value on fruit and vegetables in the diet and leave you confident with how to prepare, use and consume them. 2. Consumption Behaviour This behaviour refers to all factors that intersect with the consumption of fruit and vegetables: consumption preferences, the preferences of your family, the usage occasion and your ability and comfort in preparing the specific produce item. These behaviours can be adapted and changed, but this has to occur on the consumer’s own terms. It is not easy to interrupt their consumption behaviour, particularly at the fresh produce fixture. For example: if you like new potatoes but the majority of your family don’t like them, this may limit your own willingness to buy them irrespective of what you would personally like for yourself irrespective of the visual appeal of the new potatoes or any attractive promotional offer. 9 3. Purchase Behaviour The act of purchasing produce is at the heart of this research project and the examination of purchase behaviour includes pre-purchase planning, the type of shopping occasion and activity at the fruit and vegetable fixture and also post purchase analysis. The Impact of Heritage and Consumption on Purchase Heritage • Consumption behaviour Purchase behaviour This is the natural direction of influence. Heritage impacts consumption which impacts purchase - Knowledge of how to cook drives purchase. Attempting to influence from purchase backwards is far more difficult. - Purchasing unlikely in absence of knowledge of how to prepare/cook. The point of purchase represents the end point of a longer process. Changes to purchase patterns have to lead to subsequent changes in consumption patterns. Attempting to change consumption behaviour via purchase behaviour can take considerable effort. Attempting to change the consumption behaviour of shoppers at the fixture can be difficult to achieve as purchase is based around knowledge and ability to cook/prepare produce items Customers were found to be largely unaware of a significant number of the existing elements of the fresh produce fixture. Elements such as overhead signage, messages that included information about ‘Superfoods’ and ‘Five-a-Day’ suggestions, along with recipe suggestions, were largely “invisible” to many purchasers at the fixture. The customer is often on ‘auto-pilot,’ with their ‘head down’ going through the fixture and as a result they may only take a few seconds to decide what fruit or vegetables to purchase – these decisions are often based on very limited knowledge/awareness By attempting to interrupt the customer in this way, they are likely to filter out this information and just not see it. The Irish Consumer Attitudes to Fresh Produce found that the reasons for not including fresh produce in their diet were stated as: “Never really thinking of fruit and vegetables in my diet” - a strong heritage influence. The statement that “I don’t like the taste” is most likely a reaction to trial in the past and could be considered a heritage factor. Finally the statement that fresh produce is “Too much time and hassle in the preparation process” makes explicit reference to preparation issues which is a subset of consumption behaviour. 10 Implications of ‘Differing’ Behaviour in the Fresh Produce Category More than most categories the fresh produce category is influenced by a series of ‘heritage’ and ‘consumption’ factors. These factors limit the degree to which the consumer is actively navigating the fresh produce fixture and the degree to which they can be influenced in increasing their purchase of fresh produce via changes at the point of sale. Retailers and suppliers of produce must be realistic in terms of their expectations about how influential point of sale material can be in the sales process Previous Research and Competing Foods The Bord Bia ‘Irish Consumer Attitudes to Fresh Produce’ survey found that purchasers reported that over 50% of the purchase decision is influenced by in-store factors. The factors influencing decision making included: the items that appear to be fresh, types/variations available, types/variations that will taste best. This finding suggested shoppers have a ‘heads up’ approach to the fresh produce category and that ‘a large degree of the share of the wallet is up for grabs’ during the purchase process of fresh produce. However, this second phase to the research i.e. Shopping the Fresh Produce Fixture (2007), suggests that while the in-store experience can be influential, it can really only impact a narrower choice (i.e. a choice within a consideration set) rather than influence a broader examination of other vegetables. Observations suggest that a significant amount of the fresh produce decision process is already pre-determined prior to entering the store/category Implication This narrower approach means that in reality consumers are restricted to purchase decisions within products they are familiar / comfortable with e.g. they may buy carrots and potatoes and only decision for either is whether to buy loose or pre-packed. 11 Competing Foods & the Most Important Factors Impacting Fruit & Vegetable Consumption • The common threads for successful fruit and vegetable sales has been identified by a previous survey conducted by Bord Bia in late 2006. The previous Bord Bia study found the following factors important. Convenience Of Use/Preparation • The well understood impact of time pressure places an emphasis on convenience. Versatility Ease Of Storage Lack Of Waste • The more versatile produce is perceived to be the more likely it will be part of the evoked set. • The ability to keep produce at its peak. • Problematic for smaller family units. • A function of the produce rather than the storage. • Wastage, a strong indicator to future purchase. These factors can potentially be influenced by elements of the purchase process. The factors seen above represent the most important elements factors in choosing any fresh produce in the category. This also represents the main competitive field for choosing fresh produce items versus other key food categories. Previous studies have highlighted products such as pasta and rice as the key competitive foods to fresh vegetables, whilst fruit has a wide range of competitive items such as other snack foods, bakery and dairy products (both healthier and less healthy variants). Method of Storage Fruit, vegetables and potatoes are sold in three formats; as ambient, chilled and frozen. Frozen produce is a distinct category that was not the focus of this study. Consumer discussions from this study would suggest that some confusion exists about whether fresh produce should be stored in a chilled environment or an ambient environment after it is purchased. While widely acknowledged that most produce items last longer when chilled other consumers reported the potential loss of some flavour when prepared. A number of experienced shoppers reported storing certain produce items in a dark, cold room (e.g. the garage), in order to keep it fresh but also to preserve the aroma and flavour. Implication Positive messages about storage and the impact on flavour on certain produce items could be beneficial to consumers. This is particularly important if taste can be improved by storing products at the optimal temperature post purchase. Consumer would welcome a set of guidelines and recommendations on this issue. 12 Fresh Prepared Produce • • Purchasers have an interesting relationship with prepared produce. A complex combination of factors determines the likely success of a prepared fruit or vegetable offer. Is preparation time saved? That the produce is tough to clean or hard to chop. Is the format ½ a step ahead of consumers? The immediate benefits may not be clear. Is significant waste prevented? Roots and stems removed. Is the product an ingredient or a food? People will pay more for food than an ingredient. Can the produce look as fresh and appetising? Looks more appealing Is the quantity suitable? Is quantity sufficient for the cost. Given the consumer drive for convenience in all aspects of life, prepared fresh produce offerings are likely to continue to increase their popularity in line with trends over the past number of years. Prepared salads, prepared vegetables and smaller salad potatoes were all perceived to offer significant benefits to modern shoppers. Factors such as whether preparation time is saved, whether waste will be reduced, that the produce looks fresh and issues such as format and quantity all help to determine whether a prepared fresh product will succeed in attracting customers. Examples of successful fresh produce included: stir fry vegetable variety pack, prepared salads and chopped onions in a sealed pack. Where format changes which only succeeded in changing/ improving one element of the product offering (e.g. half a turnip), this had lesser appeal because the overall benefit in terms of time saving/convenience was perceived to be limited relative to the extra cost. Implication If a fresh produce/salad item is being marketed to deliver convenience then this benefit must be a real one to justify the higher price – time saving is oftentimes the single key benefit and the significant advantages of these type products need to be highlighted and communicated to consumers. 13 Fresh Produce Shopper Types Three ‘shopper types’ were found to be actively shopping in the fresh produce category. These three types were 1) browsers 2) habituals 3) needs satisfiers respectively. There are three primary shopper types present in the Fruit and Vegetables Category: Browsers Habituals Needs Satisfiers (adventurous) (robotic) (blinkered) Though it is possible for shoppers to migrate between shopper types, the overall attitude towards shopping in the category is relatively robust. These shopper types represent the convergence of a shopper’s heritage, consumption behaviour and purchase behaviour when they are present in the fresh produce category. It is also possible that individual shoppers can switch ‘type’ depending on which category within the shop they find themselves, however within the fresh produce category these ‘types’ tend to be relatively robust. These shopper types have not been segmented statistically but it would appear that ‘Needs Satisfiers’ and ‘Habituals’ represent the vast majority of the population of grocery shoppers whereas Browsers represent only a minority of people. Implication It is important to recognise that there exist three distinct ‘shopper types’ of fresh produce buyer, as each will bring their own level of confidence and interest, in buying from the fixture 14 ‘Shopper Type’ Purchase Decision ‘Consideration Sets’ The shopper ‘consideration set’ refers to the groups of alternatives that a consumer evaluates in a decision making process. These are traditionally sub divided into three categories: The ‘Evoked Set’, ‘The Inert Set’ and the ‘Inept Set’. For the purposes of this study a fourth category, the ‘Invisible Set’ has been introduced. • In many purchase decisions, a range of options is available to a buyer. As categories, fruit and vegetables are no different. • In order to aid the decision process the consumer categorises products into four segments. Evoked Set Of Produce Inert Set Of Produce Inept Set Of Produce Invisible Set • A set of produce that is activated directly from memory. • Produce that a • Produce that a • Produce that a consumer is aware consumer may be consumer has no of but has limited aware of but thinks awareness of. interest in. poorly of. • Consumer needs to • The default set of • Requires a trigger to • Difficult to change a be open to adding to produce a encourage consumers consideration set. consumer considers consideration. perception as it – “go-to” produce. requires trial. Each shopper type has distinct differences in their consideration sets and these are explored for each shopper type. Evoked Set The products are identified by a consumer as purchase options and are actively considered during the evaluation process. They are activated directly from memory and represent the default set of products (first to mind) that a consumer considers upon entering a category. In effect, they constitute the ‘go-to’ set of products that a consumer will consider most often e.g. carrots, tomatoes, onions, potatoes, apples, oranges, bananas, etc. Inert Set This set of products represents a set of fresh produce items that a consumer is aware of, but has a somewhat more limited interest in. They do not reject the products within the category, but show a more limited interest in purchasing on a frequent basis. These products often need an external trigger to increase interest in them. These triggers could include specific price promotions, special consumption occasions or other elements, such as seasonality e.g. strawberries, brussels sprouts, pineapples, etc. 15 Inept Set This set of products relates to produce that the consumer is aware of but ‘thinks poorly of’ for one reason or another. This could be due to lack of experience with the produce items or a previously negative experience or rejection by other members of the family. It is unlikely that any typical triggers at the fixture are likely to drive consideration, as rejection is a more deep seated issue e.g. asparagus might be rejected on the perception of being too ‘pricey’ or having insufficient bulk and/or the consumer may have a poor knowledge of how to cook it /serve it. Invisible Set Given the size of the fresh produce category, a percentage of consumers in the sample are unaware of all the produce options in the category. Therefore some products form an ‘invisible set’ for certain consumer e.g. squashes, star fruit, mangoes, etc. The role of the consideration set on each ‘shopper type’ will now be explored to understand its influence on purchase behaviour. In the next section each ‘shopper type’ will be examined in terms of their heritage, consumption behaviour and purchase behaviour. Implication Accepting that three ‘shopper types’ shop the fresh produce category it is important to realise that they carry with them four different types of consideration sets in relation to fresh produce purchasing. These consideration sets are largely based on knowledge, understanding, confidence and familiarity of usage of individual fresh produce items. Consideration sets may be expanded by education on fresh produce usage, preparation and storage and through giving information to shoppers in relation to appropriate occasions / circumstances. 16 ‘Browser’ Shopper Type ‘Browsers’ - Heritage, Consumption and Food Preparation As a minority of consumers, in terms of demographics, ‘browsers’ were likely to be singles/ co-habiting couples or ‘older mothers’ who were either empty nesters, or have non-dependent children living at home. In general, ‘browsers’ were more affluent, had more time on their hands and were less price-focused. In terms of their heritage, their background was often associated with parents who took a pride in the preparation of food. This manifested itself as a keen interest in food, nutrition and the importance of fresh food in the diet. Amongst younger purchasers, being in a relationship with someone who was ‘interested in food’, oftentimes had driven their own interest i.e. they had actively become interested in more recent years. In terms of consumption behaviour, ‘browsers’ took a keen interest in preparing ‘quality food’, using fresh ingredients, where possible. ‘Browsers’ enjoyed preparing food for themselves and took pride in preparing food for others, while they tended to be more adventurous with new foods and perceived themselves to have greater time to prepare food. ‘Browsers’ also demonstrated a confidence in being able to adapt to whatever produce was available to them at any given time and being able to prepare meal solutions from ‘what was on hand’. One of the most significant knock-on elements of this was the reduced level of waste of fresh produce – ‘browsers’ felt they could always do something with surplus vegetables by incorporating left-overs into another recipe. 17 ‘Browsers’ - Attitudes and Purchase Behaviour When time permitted, ‘browsers’ were the most likely consumers to spend time exploring the fresh produce category. However, the arrival of children into the family unit tended to reduce the level of time available to do this and reduce the overall level of experimentation in food – at least until the children had reached non-dependent age. When the children arrived, many ‘browsers’ defaulted into ‘habitual shoppers’ (described further below). ‘Browsers’ enjoy exploring the fresh produce category, more than any other shopper type and were often least likely to have a fixed view of what they were purchasing on each occasion. The actual decision making process was most likely to be a proactive ‘heads up’ process i.e. ‘browsers’ would actively examine the category to explore what produce was most suitable to them and looked freshest to prepare for the week. While they often browsed the category, this did not always lead to the purchase of a wide range of produce. ‘Browsers’ purchased the regular items but were also happy to rotate around different produce items, when they felt like a change, when a specific produce was in season or a certain occasion required it. In terms of volume of fresh produce purchased, ‘browsers’ perceive themselves to be ‘maxed out’. In other words, their volume of usage is currently so high, that they would find it difficult to identify additional occasions when they could use more fresh produce. Consideration Set for ‘Browsers’ The evoked set of produce for ‘browsers’ was found to be the broadest of any shopper type. A large range of produce was found to be in their ‘evoked set’. Those items that were found to be in their ‘inert set’ was found to be either too expensive for regular purchase (especially some fruits), or were purchased on a seasonal basis. Browsers ‘inept set’ for produce tended to be restricted to produce that someone in the family didn’t like, while almost no produce was present in their ‘invisible set’. 18 ‘Habitual’ Shopper Type View Of The Fruit And Vegetable Category One staple element of the regular shopping experience. Very structured approach to navigation. Demographics Shopping List • Household manages or proxy shoppers. • Lists were formal document – even if it isn't written down. • Desire to choose the most appropriate produce for the family. • A set list given to proxy shoppers. • Evaluation within categories e.g. types of carrots rather than across categories e.g. carrots vs. turnips. • Dependant family growing or well established. • A set range of fruit and vegetables. Shopper attitude A structured approach designed to minimise hassle and avoid waste – more ‘heads down’ approach. Shopping behaviour • Swift movement through the category. • Rapid movement through the decision process. • Presence of children during the shop further heightens speed through the category. Practical time pressure leads to a strong focus on specific items and superior value. ‘Habituals’ - Heritage, Consumption and Food Preparation The heritage of ‘habituals’ was found to be varied yet a common thread was that they all had become relatively fixed in terms of the pattern of meals that they now prepared. Most of the innovation or experimentation that may have been present previously in their cooking, had been replaced by a need to prepare practical meal solutions/food for a larger family. The needs of others and the need for convenience were now driving many of the day to day purchase, preparation and consumption choices. For ‘habitual’ shoppers, meals tended to be well structured and set out for the week, however, some individual meals were prepared for ‘fussy’ children or spouses who preferred specific food types. Yet overall, the lowest common denominator fresh produce was typically prepared e.g. if everyone in the home ate carrots – then carrots was the choice. Non-rejection of produce items was therefore a key motivation to purchase. 19 ‘Habituals’ - Attitudes and Purchase Behaviour Habitual Pre determined listrepertoire Specific Occasion/ usage Familiarity/ Suitability Value Prior to entering the shop Often a written or mental list Repertoire of Fruit Repertoire of Vegetables Determined by those who will eat it Determined by intended use. Purchase of Veg A & B, Fruit A & B The drive for habitual purchase is often the line of least resistance. The lowest common denominator is often purchased as it is the most suitable for all. In comparison to the more relaxed ‘browsers’, ‘habitual’ shoppers tended to move through the fresh produce category much more swiftly. This more rapid pace shortened the decision process/time and lead to a greater reliance on written or memorised shopping lists. The presence of young children also heightened the need to pass through the category as rapidly as possible. The purchase process for ‘habitual’ shoppers tended to be a much more ‘heads down’ approach. The shopping occasions were more likely to be structured, with specific items to be purchased in specific quantities. Familiarity and suitability for the entire family were paramount, as was the need to consider value for money. As such, ‘habitual’ shoppers tended to operate from a much narrower ‘tried and trusted’ repertoire of vegetables and fruit, from which a decision was made. Consideration Set for ‘Habituals’ When compared to ‘browsers’, the size of ‘habitual’ shoppers ‘evoked set’ tended to be smaller, even though a large number of produce items could also be found in their ‘inert set’. The ‘inept set’ for ‘habitual’ shoppers also tended to be larger, with factors such as time consuming preparation, cost, significant waste and/ or rejection of produce items by family members being the most significant factors. ‘Habitual’ shoppers also had a small number of invisible produce items, usually the more exotic fruit. 20 ‘Needs Satisfier’ Shopper Type View Of The Fruit And Vegetable Category A category that a few items are needed from before moving into the other categories. Demographics • Younger less experienced shoppers. • Less sophisticated older families. Attitude to food • Each meal is a well established format. Shopping behaviour Shopper attitude • Items for a specific meal. • Top-Up shop behaviour common. • Purchase pattern focused solely on specific items for a specific meal. • Limited evoked set diminishes length of time in the category. Items purchased match specific meal solutions for the shopper. A limited view often driven by lack of experience or confidence. ‘Needs Satisfiers’ - Heritage, Consumption and Food Preparation In terms of demographics ‘needs satisfiers’ tended to split between younger, time pressured shoppers with limited culinary skills and older shoppers, less affluent, with children of varying ages. The background and heritage of ‘needs satisfiers’ was often under developed to start off with, in terms of fresh produce purchasing. Typically, the heritage of food preparation had either been relatively weak or the learning had not transferred to them in their own preparation. For ‘needs satisfiers’ food choices tended to be driven by the most convenient options. As such, meals were often well established in their format, with limited focus on fresh produce. Fresh produce tended to be specific items in a specific meal e.g. potatoes to make chips, rather than being purchased with a variety of uses in mind. This focused approach was driven by lack of expertise, a lack of confidence and, also, lack of comfort in experimenting with new vegetable and fruit items. 21 ‘Needs Satisfiers’ - Shopper Attitudes and Purchase Behaviour ‘Top-up’ shopping was very common amongst the younger cohort of the ‘needs satisfier’ shoppers, whereas older shoppers were more likely to conduct a main shop more frequently. For ‘needs satisfiers’ the fresh produce purchase process itself was the most simplistic of any identified shopper types, and was characterised by a limited repertoire of well known ‘tried and trusted’ produce items, purchased for specific meal occasions. As such, specific fruits and vegetables are purchased to suit a definite purpose, with only some variability largely based around produce items they are already familiar with and/or preference for versatile multiple use items e.g. potatoes which they can boil, roast and/or chip, tomatoes, carrots. Occasion Direct relationship Needs Know n Produce Set produce Specific fruit Pre shop Specific Veg Blackbox Decision Process Produce A & B A key issue is w hether the need for the produce is m et by the produce in the category. Consideration Set for ‘Needs Satisfiers’ The ‘evoked set’ for ‘needs satisfiers’ was found to be the narrowest for the three shopper types identified in the study. This set of produce was found to be purchased relatively regularly and very little divergence to any other produce available. Each produce item tended to have a specific need e.g. bananas/ apples for the school lunchbox, carrots for stews etc. The produce items in the ‘inert set’ of ‘needs satisfiers’ was driven by less frequent, occasional usage e.g. special occasions etc. The ‘inept set’ and ‘invisible set’ were the largest categories – with significant numbers of fresh produce items within these sets that were never considered for purchase. 22 Challenges and Implications in Motivating Each Shopper Type Given the attitudinal and behavioural differences between each of the three shopper types, the triggers that will encourage and motivate increased levels of fresh produce purchase will also differ. Many ‘browsers’ feel that they are purchasing as much fresh produce as is possible to use, within their normal lifestyle. Therefore, the emphasis for the retail trade in relation to ‘browsers’ should be to encourage them to continue their existing purchasing pattern and prevent their purchase process from becoming routine. As such, ‘browsers’ need to be prevented from becoming ‘habituals’ in their decision process. ‘Habitual’ shoppers did not necessarily lack the skills to prepare alternative types of fresh produce. Time constraints, difficulty in preparation, and family members who rejected fresh produce tended to be the most significant barriers. ‘Habitual’ shoppers need to be persuaded that additional produce items can be easy to prepare, low on waste and can be consumed by a wider number of people in the family. The ‘habitual’ shopper needs to be moved away from their “auto-pilot” approach to shopping, for at least some proportion of the shopping experience, to be able to consider alternatives. ‘Needs Satisfier’ shoppers are the most basic type of consumers in terms of their expertise and skills, so they are also the most difficult to break out of their current behaviour. They are unlikely to experiment with new fresh produce, so they need to be encouraged to use the produce they are buying in new and different ways – increasing the volume they purchase as a consequence. Information to educate about the preparation of basic fresh produce items would be most beneficial, while also encouraging them to expand their repertoire in a conservative fashion. 23 Additional Shopper Sub-Types Two additional shopper sub-types are evident in most shopping trips at store level. These are defined as ‘impulsive’ shoppers and ‘bargain hunter’ shoppers. These sub-types can be switched into at various stages of the fresh produce shop but shoppers rarely stayed in these states for any prolonged period. The ‘Impulsive’ Shopper Type Impulse buyer behaviour can be defined as a spontaneous purchase of an item that the shopper hadn’t planned when they began their shopping tasks. Impulse purchase is possible at any time by any shopper, but is more likely to occur in some categories more than others. Impulsive behaviour is most often associated with hedonistic products and services. In the fresh produce category, fruit is considered more hedonistic than more traditional vegetable purchases. Only real advocates of the creative use of vegetables would consider impulsive purchases of vegetable items. Impulsive shopping was most likely to be found amongst ‘browsers’. The ‘impulsive’ shopper decision process could only effectively take place when the consumer was not on “autopilot” in the store. When the consumer was in ‘browser’ mode, the overall store layout, ambience, signage and promotional activity all played their part in the impulse process. Implication Impulse purchasing is largely only relevant for hedonistic type produce items (e.g. strawberries) but sales can be greatly increased by putting them on prominent displays to catch the eye of consumers near point of purchase. The ‘Bargain Hunter’ Shopper Type Fruit and vegetable buyers had a complex relationship with price promotions in the category. Reduced price or price based promotions were often associated with produce that was less fresh or poorer quality produce. Rationalisation is common when confronted with many promotions of interest throughout the store. Factors that lessoned the problem with reduced price produce include: that the produce was to be used immediately upon returning home, that it was to be used as one ingredient, where the produce was transformed e.g. used in a soup or stew, or that the appearance of the product was satisfactory – an examination assisted by best before dates. In other instances, most notably in the fruit category, e.g. apples, price promotions were the norm and were not associated with inferior quality. ‘Needs satisfier’ shoppers approached price promotions with caution. In part, this was due to their lack of experience and fear that they would purchase inferior quality produce. Familiarity led to great comfort with price promotions. Where large volumes of familiar produce were considered, ‘habitual’ shoppers did tend to focus on price promotions. In search of better value, the idea of saving money was one of the few triggers that may break a ‘habitual’ shopper out of their patterns. However, this was found to be only in the context of the existing ‘evoked set’ rather than in the broader examination of the fresh produce fixture. 24 The greater confidence of ‘browsers’ was found to open them up to the idea of bargain hunting, though they were not prepared to sacrifice quality. They were comfortable in identifying areas of ‘good value for money’ and a bargain could lead to additional purchase, not just the substitution of one product over another. Implication Promotions will remain a relevant part of the fresh produce category ‘shopping experience’. However, certain volume promotions can lead to waste for consumers which can be an offputting experience in itself and ruin future sales potential. Crossover promotions across a wider range of fruit and/or vegetable items might be more relevant to encourage new trial of lesser known products (i.e. produce items beyond the normal consideration sets of either ‘habituals’ or ‘needs satisfiers’). Retailers and suppliers should examine closely the relevance and appeal of all the promotions they employ. 25 The Fresh Produce Shopping Experience Moving Towards the Shopping Fixture Having examined the distinct differences between the three shopper types it is important to examine how these shopper types interact with the fresh produce fixture in-store. The fresh produce fixture as a ‘category experience’ can be divided into three stages with a significant number of sub-elements within each: Pre-Shop Behaviour • • • • • Type of Shopping Occasion Channel Choice Pre-Planning Retailer Choice Retailer Experience Shopping the Fixture • • • • • Store Layout Store Dynamics Store Atmosphere Shopping Basket Shopping Route Point of Sale Experience • • • • • • In-store Communication Shelf Layout Promotions Packaging Pack Standout Pack communications Exploring each of these stages in turn: 26 Pre-Shop Behaviour: Types of Shopping Occasions Shopping occasions were clearly divided by the age and life stage of the shoppers. Younger shoppers tended to regularly conduct top-up shops, while older shoppers favoured weekly main shopping occasions. Regular shopping occasions of this type resulted in ‘stocking up’ with fresh produce for the week – with top-up shopping mainly limited to the purchase of items such as fruit for school lunches. As such, main shopping occasions were very regular events, often planned for the same time, location and day (each week) by the shopper. • • Shopping occasions are driven by a series of lifestyle issues such a store location, time pressure etc – all features that have been identified previously in research. Fresh produce adds to the complexity of the purchase as it is perishable produce. Older shoppers Younger shoppers Browser Habitual Needs Satisfier • Regular main shop for weekly fresh produce. • Top–up if needed NB School lunches • Will buy large amount for the week. • Set routine for the entire shop • Same day • Same time • Will top up staples e.g. Milk and bread. • As with Habituals, set routine also in place. • Fresh produce a less relevant part of the overall shop. - Will intercept fresh produce for a specific occasion. • More frequent top-up purchases. • Will specifically shop for fresh produce if entertaining others. Not applicable. • Almost constant top-up shopping. • Large shop for non food items every 2-3 weeks. ‘Browsers’ appeared to be the most likely customers to allow the quality of the fresh produce offering to impact their choice of channel and the type of shopping occasion. For ‘habituals’ and ‘needs satisfiers’ shoppers, elements such as convenience of access (by virtue of location), was a major consideration of choice of outlet. 27 Channel Choice M o re C o n ve nie nc e C rates an d p allets p red o m in an t. C en tra E u ro sp ar T esco S p ar M a in stre am L o g istic s N ic he c o n ve nie n c e D u n n es L arg er S ca le Sm a lle r S ca le S u p erV alu M a instre am S p ec ia lists S u p erq u in n G reen G ro cer S tro n g fresh n ess cred en tials, m an u al sto ckin g M arks an d S p en cer L o cal S u p p lier C lear strateg ies ap p ear to b e fo rm in g acro ss o u tlets N ic h e q u a lity M o re S p ecia list From an Irish consumers’ perspective, it appears that there are broadly speaking three different types of shopping experience available to choose from in the retail landscape, namely mainstream, niche quality and niche convenience channels. Mainstream channels are the primary source of fresh produce purchase. In general, there was limited perceived difference between the cost of fresh produce across the mainstream retailers. Any price saving had to be seen in the context of the overall price of the shopping basket, versus the ease of access to the store. In many instances, any perceived price saving did not justify the added convenience of going to another store that may have been slightly cheaper. Only in instances where the fresh offering was clearly inferior would ‘browsers’ consider travelling long distances. Niche quality stores had a clear place in the market for those looking to shop in an enhanced experience. It was interesting to note that while niche specialist meat providers such as butchers are rated as providing better quality meat, the same could not be said for fresh fruit and vegetables. Higher quality fresh produce was associated either with local producers/ markets (which suggest a fresh/ organic message) and retailers such as Marks and Spencers. Often the emphasis in these outlets was superior quality produce, conveniently packaged with a price premium attached. Niche convenience stores were typically characterised as convenient stores such as tobacco, confectionery and newspaper outlets. With the demise of local green grocers, it would have appeared that convenience outlets represented a good opportunity for customers to purchase fresh produce at a time and location convenient to them. Yet evidence from this study suggests that this is not how purchasers see it. Convenience stores were associated with easy ‘passing’ retail trade purchases of produce that was ambient, chilled or modified i.e. smoothies, rather the fresh produce ‘ingredients’. Consumers experience of such outlets was also very much hit and miss. Indeed, the expectation of availability of fresh produce was limited and the outlet was only considered important for emergencies. 28 Preplanning – Shopping Lists Most shoppers relied on shopping lists. These lists can take the form of written lists drawn up prior to entering the store or mental lists that are triggered by entering the category and browsing. Written lists tended to lead to a faster approach to shopping favoured by ‘habitual’ shoppers. The fixed number of items limited the chance of diverging from the list. This structure was less likely to lead to surprises in terms of the final cost of the shop. As a consequence, those shoppers with a list were less conscious of the prices of individual items. Written lists were also very common with ‘proxy shoppers’ i.e. those shoppers who are purchasing on behalf of the household manager, who actually prepares the bulk of the food. Mental shopping lists required a greater level of browsing, using the category itself as a trigger to remind the customer of what is required. This led to a far more ‘heads up’ approach to shopping the category. This was found to be more time consuming, but also more rewarding, for those looking to explore the category. 29 Retailer Choice As noted earlier, the location of the mainstream store was found to play a significant role in the choice of outlet. Consumers appeared to balance proximity of the store, the ease of access to the store, the quality of the range and some value judgement to determine which specific retail outlet to consider. Within the Mainstream Channel, consumers can identify a ‘Mainstream Logistics’ Channel and a ‘Mainstream Specialists’ channel. 1) Mainstream Logistics Stores This category was most commonly associated with Dunnes Stores and Tesco. The emphasis for these retailers tended to be on a combination of strong signage and imagery and good packaging supported by a logistics driven presentation of produce. A strong range of produce was typically present, as were large aisles and ease of access. Fresh produce was most likely to be stocked in crates and palettes for ease of distribution and display. Recent renovations within some of the stores visited further heightened the quality credentials of the stores, often with darker flooring and vibrant imagery to convey enhanced fresh messages. 2) Mainstream Specialist Stores These stores commonly displayed similar imagery and quality packaging but were more likely to stock and display fresh produce differently. Crates were less common, shelving smaller and stock had to be stocked by hand. Wicker baskets and elements of a modern look and feel, helped to elevate the experience. Seasonality was often conveyed via specials offers at the front of the category. Superquinn, particularly the newly fitted out stores, and also SuperValu stores were perceived to have a strong fresh produce offering and a presentation that was associated with less of a ‘mainstream’ feel. 30 Impact of Retailer Experience on Perception of the Category 90 Optimum performance 80 70 60 Acceptance levels 50 40 30 Variance between stores 20 10 0 Freshness • Availablility Range Stock Rotation Layout and Organisation Despite variances between individual stores the overall performance levels of the fresh produce categories in retail outlets are very high. Most areas for improvement are challenged by practical constraints of business strategies – e.g. crates used to transport produce. Implication It is important to note that while there are differences evident in the research between stores, consumers who regularly shopped in each retailer outlet were broadly happy with the experience they faced. For example, whilst the crates were perceived as potentially less attractive than other displays such as wicker baskets, they could be justified by the convenient nature of the delivery i.e. if the produce was easier to deliver then the customer would benefit because the fruit/vegetables would be fresher. This suggested the consumers were happy to adjust their opinion of the store experience as long as the basic elements of range, freshness layout and organisation were met. While variations in-store design and range were evident, the fresh produce fixtures in most outlets were considered to be performing at, or exceeding, expectations for customers. As such, the fresh produce category in Irish stores is performing at a very high standard across all retail outlets. 31 Shopping the Fresh Produce Fixture Store Layout - Category Position The front of the store was characterised as the most common location for the fresh produce category. This was popular, partially because consumers were familiar with it, but also because it was an important category that fed into other categories such as meat, dairy, etc. The fresh produce category acted as an anchor for the remainder of the shop. For ‘top-up’ shoppers, fresh produce was an important category. Its location at the front of the store aided access and speed of shopping. The danger of softer fresh produce items (e.g. tomatoes, berries, bananas) being damaged by subsequent items was not considered being a problem. Shoppers readily moved the produce around the trolley to avoid this problem. A proportion of stores in the research study had the fresh produce fixture towards the centre of the store. Those familiar with its placement were comfortable with it and few recommended that it be moved back to the front of the store. The key benefit of its location in the centre of the store was the ability to be able to move more freely in the category. Shoppers tend to spend a relatively long amount of time in the category, which can lead to a ‘bottleneck’ of shoppers at the fixture. When located in the centre of the store, the shoppers have dispersed in the store, so there was likely to be more room in the fresh produce category. Universally, customers recognised the benefits of wider aisles and grouping similar produce in different formats together. Customers were divided as to whether organic produce should be distributed throughout the category or should be in its own section. In instances where it was one full sub-category, placing the section at the end of the category was criticised. Customers, who may have considered an organic variation, did not tend to see the fixture until they had completed their decision process. At that point in time they were unlikely to reconsider their choices and put the other produce back to pick up an organic alternative. Store Dynamics Store Dynamics - Fruit Fruit tended to be purchased on the basis of more immediate consumption. Ripeness was found to be more critical in terms of time factors and often was balanced between a mix of immediate and future consumptions option. The category tended to be perceived as a brighter, more vibrant category by virtue of the produce within it. There was ‘less heritage’ associated with the fruit category. This diminished level of history and heritage, combined with reduced preparation meant that purchasers were somewhat more open to trial and variation of fruits that were purchased. Store Dynamics -Vegetables The wider variety of usage occasions associated with the vegetable category resulted in the purchase of vegetables likely to be one of a number of ingredients purchased for a meal. The wider range of usage occasions leads to potentially greater options and education required to use the produce. Fewer promotions were believed to be present in the vegetable category, compared to fruit. Fruit was considered to be more expensive and consumers were therefore more likely to be aware of promotions in fruit rather than vegetables. 32 Store Dynamics and Freshness The importance of freshness in this category has been well established across a number of previous research projects. The basic elements of freshness of the fixture were found to be; good lighting, product visibility and produce that looked fresh as well as clean and attractive fixtures. The above were all commonly present in all categories. It was widely acknowledged that the fruit and vegetable categories have universally improved over the years. As such, fresh produce looks better than ever, but this has not transferred into perceptions of the taste of the produce. In many instances, consumers perceived that produce no longer tastes as well as it used to in the past. Produce was now known to be available out of season from anywhere in the world at any time of the year – this however led to the perception that produce could no longer taste as best as it possibly could. Produce was perceived to be travelling further distances, which was percieved to be harming its ‘natural taste’ especially for bananas and other non-Irish fruit. Even produce such as ‘vine tomatoes’, which were perceived to once have superior taste credentials, now no longer, stand out in terms of taste. Implication Freshness is the most important consumer cue to encourage purchase of fresh produce. The basic elements used to signal freshness of the fixture were found to be; good lighting, product visibility, and displaying produce that ‘looked really fresh’. Clean and attractive fixtures also enhanced these cues. 33 Store Atmosphere Mai nstr eam Logisti cs Stor es • Overhead signage and good quality pac kaging attempt to overcome the impact of storage crates. Mai nstr eam Speci alists Stores • Attempting to add a loc al or more premium offering increases the ambience of the category. • A more functional feel to the fixtures. • Increased sense of greater expense but also conveys a greater sense of quality. • Some retailers clearly attempting to shift towards a more prominent positioning. • A proportion of the population are prepared to pay for additional convenience, more premium atmosphere. Distinctions between the two mainstream stores types were evident in terms of the impact on the store atmosphere. The mainstreams logistics stores tended to rely on overhead signage and good packaging to convey strong freshness and naturalness cues. Mainstream specialist stores had the added elements of hand stocked shelves, wicker baskets, etc. This tended to emphasise the local and quality credentials of the store. It was clear that customers were comfortable with the emphasis that the store that they regularly shopped. Implication Shoppers tend to adapt their expectations of the fresh produce category to the store that they use on a frequent basis, which is often the one that is most convenient to them (by location) 34 Shopping Styles Three distinct shopping styles were evident in-store. These three styles tended to be driven by the specific type of shopping occasions and the level of time pressure that the shopper was under. During main shops and when the store is busy, the ‘anchor shopper’ tends to leave the trolley at one point and move around it looking for produce. When customers were more relaxed and have less time pressure, they moved with the trolley and were more likely to browse. ‘Basket shoppers’ and ‘needs satisfiers’ moved through the category in a more fluid fashion, completed their shop faster and tended to find the specific products that they required in a rapid process. The latter groups often only used a basket to complete their shopping task. Implication Retailers need to match their store design with shopping style e.g. basket shoppers and ‘needs satisfiers’ require a simpler formula to achieve their end result compared with ‘browsers’ and ‘habituals’. It is therefore important for retail stores to understand the needs of their ‘customer base’ and how this may change throughout a week or even within a day. 35 Shopping Basket Choices More versatile usage When examined in this way it is clear that the difference between Need satisfiers and Habituals is volume of produce rather than range. Browsers Habitual Broccoli Need satisfiers Peppers Lettuce Staple product Beans Tomatoes Potatoes Occasional product Onions Carrots Parsnips Cabbage Asparagus Cauliflower Celery Turnips This provides clear options in terms of encouraging Need Satisfiers and Habituals to purchase more vegetables. Less versatile usage When the range of the produce purchased by each of the shopper types was examined, an interesting pattern emerged. ‘Browsers’ were clearly the most comfortable with a wider range of occasional produce and were most likely to purchase a range of staple and more occasionally used produce. ‘Needs satisfiers’ have a much more limited range of produce that they are comfortable purchasing in-store. ‘Habitual’ shoppers tended to buy a similar range of produce to ‘Needs satisfiers’ but tended to purchase them on a more frequent basis. Implication The key challenge for retailers, suppliers and promoters of fresh produce is to expand the trial of fresh produce items beyond the current narrow band of ‘needs satisfiers’ and ‘habituals’into the more expanded consideration sets of the ‘browsers’ i.e. to continue to buy the basic items but also to expand their repertoire of produce into ‘unknown’ produce items to them. 36 Shopping Route – In The Fresh Produce Category The different shopper routes were found to be very similar to, and mostly matched, each of the shopper styles. As such, ‘browsers’ tended to move around the entire category and explore it more frequently. ‘Habituals’ also tended to spend some time trying to find the produce they need, in the correct quantity and variety. ‘Needs satisfiers’ however, tended to move in one particular direction through category with a smaller number of variations. S h o p p in g R o u te – In C a te g o r y B ro w s e r P H a b itu a l N e e d s S a tis fie r P P P P P P P S ig n ific a n t b ro w s in g w ith c o n s is t e n t e n g a g e m e n t P P ath E n gag em en t P u rc h a s e P P P P P E n g a g e m e n t lin k e d to p u rc h a s e F o c u s o n s p e c ific p r o d u c e – lo o k in g fo r s p e c if ic ite m s (s m a lle r n u m b e r ) Implication There is a big difference in terms of the volume and range requirements of fresh fruit and vegetables required by ‘browsers’ and ‘habitual shoppers’ on the one hand and ‘needs satisfiers’ on the other hand. Retailers and suppliers of fruit and vegetables must seek to display the appropriate range and volume of fresh produce, in accordance with the customer base of the particular store. 37 Point of Sale Experience 1. In-Store Communication Signage • At a basic level, signage needs to direct purchasers to the appropriate section. Most commonly this is signage overhead. • Yet examination of purchase behaviour suggests that overhead signage is not typically used by shoppers. – Firstly, many shoppers are familiar with the store layout. – The appearance of the produce draws the eye fixture more effectively than signage. • An equally important function of signage is to assist in the creation of store atmosphere. – The font, style, colour and positioning of the signage definitely add to overall perception of the produce category. Signage has an equally important role in creating atmosphere in the category. Signage was seen to have two roles in the store. Firstly the category needs to direct customers to specific sub-categories. Once shoppers become particularly familiar with the store layout, the role of signage switched to its secondary function, which is to communicate atmosphere. The overall design of signage; imagery, font, local messages, all add to the overall ambience created within the category. 2. Shelf Layout A number of important elements of the fixture layout were outlined by consumers. Firstly, fruit and vegetables should remain separate, in so far as it is possible, in the space provided. Produce should be clearly grouped together in terms of loose, packaged, etc. Communication in terms of occasions can be very useful in encouraging consideration of a range of produce – simple messages, such as those evident on some potato packaging, are very popular (e.g. potato varieties suitable to bake, boil, chip, etc) 3. Promotions Fresh produce shoppers had a somewhat complicated relationship with promotions. They were keen to save money on items but they also feared some volume promotions, as the perishable nature of fresh produce can lead to waste. This was particularly true for smaller family units, where the overall level of fresh produce consumption was minimal in comparison to larger families. As stated earlier, promotions were routinely more associated with fruit rather than vegetables. Fruit promotions tended to be the most popular. Seasonal produce, where it is recognised, such as strawberries, raspberries, etc. were very popular, in part due to their relative expense. Nonetheless, staple fruit items, such as apples, were popular on promotion. This was often 38 due to their central usage in school lunches. Many shoppers noted that conveniently small apples were most useful because they could fit into lunch boxes more easily. Where fruit promotions had some potential to be added at an impulse level, vegetables promotions tended to support existing purchase behaviour. 4. Packaging With the increased requirement for superior logistics, produce that looks fresher and the need for convenience, packaging has emerged as a critically element of the fresh produce category. Across all retailers the quality of packaging was uniformly high, with distinct tiers of produce from premium to standard to value offerings. The need to see and feel fresh produce was universally common, but produce could be separated out in terms of what was important from a customer perspective. For some produce, visual appearance was the most important element. This produce included apples, peaches, plums etc., where the need to feel the produce was less relevant than visual appearance. Other produce such as tropical fruit e.g. pineapples, melons, etc. relied more heavily on consumers being able to feel the produce. The only times that this was not the case was when the produce was packaged for convenient purposes i.e. ready chopped and ready to use. In these instances, visual appearance was paramount. The vast majority of fruits and a proportion of vegetables required both to be seen and touched, in order to confirm quality and freshness. Successful packaging, regardless of the product, needed to conform to certain criteria. Given the importance of appearance, the most popular packaging clearly displayed the produce. The underside of the packaging was particularly important, as many consumers were keen to see the produce from all angles. Freshness cues are undermined by features of packaging that prevent the produce from breathing. Condensation and/or the collection of water on the interior of the packaging can be a negative indicator of freshness. Packaging format, such as brown paper bags, helped to increase a sense of local produce and project a heightened sense of freshness. 5. Pack Format A number of packaging formats have emerged in the vegetables category. The most successful packaging would appear to have a number of elements, such as saving on preparation time, saving on fresh produce waste and/ or saving on cooking time. One of the common examples mentioned was the development of the salad potato market. They have enabled time pressurised shoppers to purchase potatoes that are uniform in size and already cleaned (both of which aid cooking), boxed for easy storage and easy to handle as no peeling in required. The ‘peel and pour’ solution to time challenged shoppers is appealing despite the price. Shoppers realise that convenience has a price and are willing to pay it, up to a point. Examples such as the stir fried vegetables packs provide a quick and easy solution for convenience driven shoppers. They are also not commonly available loose in the store. In contrast, mixed vegetable trays do not offer the same convenience. Many shoppers rejected these trays of carrots, parsnips and onions on the basis that they could purchase them loose /individually, in the exact volume they wanted and also that the individual items tended to look fresher. 39 6. On-Pack Communications Across all areas of the fresh produce category, packaging communication needs to ensure that it does not overly obscure the produce from view, that the basic elements of price, best before and variety are all communicated. Packaging also needs to communicate usage benefits and origin, where it is relevant. Implications (for Points 1-6 in section above) 1. Beyond the basic need for signage, signs need to create a suitable store ambience/atmosphere e.g. cues on local food, aspects of seasonality, country of origin messages etc. 2. Produce should be logically grouped together by type, packaging etc. 3. Promotions must meet the needs of customers (match customer needs) rather than being ‘systems driven’ 4. Preparation format is highly valued e.g. fresh cues are vital and can be enhanced by making produce visible in any packaging 5. Suppliers can learn from successes of other pack formats in other categories e.g. ‘peel and pour’ solutions, ready to use / ready prepared. 6. On pack communications should potentially focus on cross promotion of other produce related items e.g. parsnips information on carrot packs, lettuce information on other salad vegetables such as ‘cherry tomatoes’, herb usage information on onion packs etc. 40