“Consumer Fear Factor”
Team Vizcaino
Lulu Carranza
Abiola Awotesu
Chuck Fleming
MaryLou Ortuvia
Shane Ruppel
1
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
2
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
3
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
4
Retail Inquiries
5
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
6
Procurement
 Centralized national buying
 Stores had little or no autonomy
• Purchasing decisions
• In-store marketing
7
Survey Results
8
Age Demographics
100%
Female
Male
80%
70%
35%
40%
60%
11%
18%
23%
10%
2%
6%
14%
29%
23%
34%
20%
14%
15%
20%
11%
30%
30%
40%
17%
25%
50%
17%
10%
Percent of Total Respondents
90%
0%
18-25
26-35
36-45
46-60
Grocery Stores
O ver
60
18-25
26-35
36-45
46-60
O ver
60
Heart Walk
9
Female
Male
10
Who Do You Buy Groceries For?
1b Buy for Children
1c Buy for Adult
1d Buy for Seniors
62%
39%
5%
8%
16%
20%
40%
57%
60%
40%
64%
80%
36%
Percent of Total Respondents
100%
0%
Grocery Stores
Heart Walk
Grand Total
11
100%
Which of the Following Help You Make
Your Purchasing Decision?
Heart Walk
Grand Total
80%
25%
2%
1%
26%
23%
36%
35%
38%
41%
41%
41%
4%
20%
23%
18%
25%
40%
41%
44%
60%
36%
Percent of Total Respondents
Grocery Stores
0%
Labels
In-Store
Brochures
In-Store signs
Ads
Internet
Others
12
99%
100%
100%
96%
Do You Buy Fruits and Vegetables?
Grocery Stores
Heart Walk
Grand Total
43%
44%
41%
60%
8%
4%
10%
21%
29%
17%
20%
24%
26%
40%
18%
Percent of Total Respondents
80%
0%
Buy fruits and
vegetables
0-3 lbs
4-6 lbs
7-10 lbs
Over 11 lbs
13
Grocery Stores
78%
80%
79%
97%
96%
76%
Heart Walk
Grand Total
60%
2%
0%
7%
4%
3%
5%
11%
20%
11%
40%
9%
Percent of Total and Affirmative Respondents
100%
98%
Do You Wash Your Fruits and Vegetables?
0%
Yes
With Water
With Soap &
Water
With Special
Product Soap
Other
14
Do You Buy Organic Fruits and Vegetables?
100%
Heart Walk
Grand Total
39%
16%
13%
21%
30%
13%
20%
54%
42%
27%
35%
40%
40%
38%
60%
50%
54%
80%
43%
Percent of Affirmative Respondents
Grocery Stores
0%
Yes
For Cleanliness For Pesticide-Free
For Health
Concerns
Other
15
If You Buy Organic, How Often do You Buy Other
Fresh Fruits and Vegetables That are Not Organic?
100%
Heart Walk
Grand Total
66%
58%
70%
80%
60%
21%
21%
22%
40%
21%
11%
20%
7%
Percent of Affirmative Respondents to Q5
Grocery Stores
Q
0%
Seldom
Often
Always
16
N
ot
So at a
m ll
ew
Ta
ha
st
t
e:
Ve
N
ot ry
So at a
Ap
m ll
pe
ew
ar
ha
an
t
ce
Ve
:
N
ot ry
So at a
m ll
ew
ha
Pr
t
ice
Ve
:
N
ot ry
So at a
G
m ll
er
ew
m
-F
ha
re
t
e:
Ve
N
ot ry
Pe
So at a
st
m ll
ici
ew
de
ha
-fr
t
ee
Ve
:
N
ot ry
Co
So at a
nv
m ll
ew
en
ha
ie
nc
t
e:
Ve
N
ot ry
So at a
m ll
ew
ha
t
Ve
ry
Br
an
d:
Percent of Total Respondents
How Important are the Following Considerations
When Buying Fruits and Vegetables?
100%
Grocery Stores
Heart Walk
Grand Total
80%
60%
40%
20%
0%
17
N
ot
So at a
m ll
ew
Ta
ha
st
t
e:
Ve
N
ot ry
S o at a
Ap
m ll
pe
ew
ar
ha
an
t
ce
Ve
:
N
ot ry
S o at a
m ll
ew
ha
Pr
t
ice
Ve
:
N
ot ry
S o at a
G
m ll
er
ew
m
ha
-F
re
t
e:
Ve
N
ot ry
Pe
So at a
st
m ll
ici
ew
de
ha
-fr
t
ee
Ve
:
N
ot ry
Co
So at a
nv
m ll
ew
en
ie
ha
nc
t
e:
Ve
N
ot ry
So at a
m ll
ew
ha
t
Ve
ry
Br
an
d:
20%
23%
51%
45%
38%
37%
46%
44%
60%
17%
12%
13%
11%
10%
64%
87%
92%
100%
3%
39%
40%
40%
3%
5%
21%
Percent of Total Respondents
How Important are the Following Considerations
When Buying Fruits and Vegetables?
Grand Total
80%
0%
18
Combined Chart of Questions 8, 9, and 10
88%
88%
86%
100%
Grocery Stores
Heart Walk
Grand Total
59%
60%
57%
50%
54%
60%
43%
Percent of Total Respondents
80%
40%
20%
0%
8 Would Buy if Guaranteed
germ-free
9 Hesitate to Buy Other if
Germ-Free Available
10 Hesitate to Buy Other if
Chemical-Free Available
19
How Would You Fell About Your Grocery Store
Offering You a Choice Between Fully Sanitized and
Non-Sanitized Produce?
100%
Grocery Stores
Heart Walk
Grand Total
62%
58%
70%
27%
40%
36%
40%
60%
2%
2%
20%
2%
Percent of Total Respondents
80%
0%
Uncomfortable
Comfortable
Appreciative
20
Combined Results
21
Comparison Between Q9 and Q10
9 Hesitate to Buy Other Produce if Germ-Free
is Available
10 Hesitate to Buy Other Produce if
Chemical-Free is Available
Yes
No
Grand Total
Yes
No
Grand Total
48%
2%
50%
11%
39%
50%
59%
41%
100%
22
Comparison Between Q9 and Q7e, Q10 and
Q7f
9 Hesitate to Buy Other Produce if
Germ-Free is Available
7e How Important is
Germ-free
Not at all Important
Somewhat Important
Very Important
Grand Total
Yes
No
Grand Total
8
16
65
89
15
25
48
88
23
41
113
177
10 Hesitate to Buy Other Produce if
Chemical-Free is Available
7f How Important is
Pesticide-free
Not at all Important
Somewhat Important
Very Important
Grand Total
Yes
No
Grand Total
9
32
63
104
12
33
28
73
21
65
91
177
23
Comparison Between Q9 and Q7e, Q10 and
Q7f of Total
9 Hesitate to Buy Other Produce if
Germ-Free is Available
7e How Important is
Germ-free
Not at all Important
Somewhat Important
Very Important
Grand Total
Yes
No
Grand Total
5%
9%
37%
50%
8%
14%
27%
50%
13%
23%
64%
100%
10 Hesitate to Buy Other Produce if
Chemical-Free is Available
7f How Important is
Pesticide-free
Not at all Important
Somewhat Important
Very Important
Grand Total
Yes
No
Grand Total
5%
18%
36%
59%
7%
19%
16%
41%
12%
37%
51%
100%
24
Comparison Between Q9 and Q7e,
Q10 and Q7f of Column
9 Hesitate to Buy Other
Produce if Germ-Free is
Available
7e How Important
is Germ-free
Yes
No
Not at all Important
Somewhat Important
Very Important
Grand Total
9%
18%
73%
100%
17%
28%
55%
100%
10 Hesitate to Buy Other
Produce if Chemical-Free
is Available
7f How Important is
Pesticide-free
Yes
No
Not at all Important
Somewhat Important
Very Important
Grand Total
9%
31%
61%
100%
16%
45%
38%
100%
25
House of Quality
26
Quality of Suppliers
Packaging Material:
Product Preservation
Packaging: Appearance
Pathogen Removal
Chemical Film Removal
Soil Residue Removal
Wax Removal
Correlation:
Very Strong Relationship
Strong Relationship
Weak Relationship
Importance Weighting
4
4
2
5
5
3
4
Target Values
5
4
5
5
5
3
4
Engineering Characteristics
Customer
Requirements
Importance to
Customer
Brand
2
Taste
5
Appearance
5
Price
3
Germ-free
4
Pesticide-free
3
Convenience
3
Deployment
Selling Points
27
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
28
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
29
Questions?
30