AVOCADO SHOPPING BEHAVIOUR. Summer 2013

Transcription

1 AVOCADO SHOPPING BEHAVIOUR Summer 2013

2 RESEARCH BRIEF Background The NZ Avocado Growers Association and Industry Council is the national body which represents the interests of the growers and is responsible for setting the strategy and direction of marketing and communication plans. Avocados NZ want to understand more about the purchase dynamics of the avocado buyer to measure performance in relation to marketing objectives and identify growth opportunities to increase avocado consumption at value. Research Objective The core objective of the research is to understand the purchase dynamics of the avocado buyer to measure performance of avocado in relation to marketing objectives. Avocados NZ will use this consumer information to drive marketing and communication plans in 2014, with the focus being to increase avocado consumption at value. Marketing objectives for the 2013 summer season are to maintain levels achieved last year. Household penetration of 62.4% Purchase frequency of 5.9 occasions. Fruit shopper loyalty to avocado from 4%. Information Requirements How have avocados performed within the fruit category? What is driving this performance? How does this compare to previous summers? Understand importance of single versus multi buyers Understand the heavy buyer & their importance to sales 2 Copyright 2011 The Nielsen Company. Confidential and proprietary. 2

3 AGENDA Research Methodology Executive Summary Key Findings Copyright 2011 The Nielsen Company. Confidential and proprietary. 3 3 Copyright 2012 The Nielsen Company. Confidential and proprietary.

4 RESEARCH METHODOLOGY Nielsen Homescan is a 2,500 strong household consumer panel, representative of the population which scans all grocery items taken into the home. For fresh produce this includes loose and barcoded items. Point of difference to other research methods: Actual purchases rather than claimed behaviour Continuous tracking over time Geographically & demographically representative Peak season is NZ summer. Data period is 24 weeks data ending 24 March 2013 compared to same period a year ago. Avocados are compared to total fruit. 4 Copyright 2011 The Nielsen Company. Confidential and proprietary. 4

5 HOMESCAN WILL HELP YOU UNDERSTAND THE RELATIONSHIP BETWEEN SALES & CONSUMER BEHAVIOUR! SALES What is really driving sales? How many shoppers? How often? Spend per trip? CONSUMER PANEL DATA What strategies and tactics can I employ to change these dynamics? ATTRACT NEW BUYERS Advertising More product types Pricing strategy In-Store sampling GENERATE REPEAT SALES Recipe Ideas Consumer promotion New products Quality assurance DRIVE SPEND IN STORE Pack size adjustments Organic range Promote consumption 5 Copyright 2011 The Nielsen Company. Confidential and proprietary. 5

6 HOMESCAN LIFESTAGE DEFINITION 31 Young Families Older Families Adult H-holds Lifestage % Buyers Mixed Families Older Singles & Couples 1. Young Families - Adults/ Shoppers Any Age, all kids < 11 years 2. Mixed Families - Adults/ Shopper Any Age, at least 1 child < 11 and at least 1 child Older Families - Adults/Shopper Any Age; all kids aged Older Singles/Couples - All Adults aged 45+, no children, size 1 or 2 5. Adult Households - At least 1 adult aged 18-44, no children 6 Copyright 2011 The Nielsen Company. Confidential and proprietary. 6

7 EXECUTIVE SUMMARY Avocado are in a good position with fresh fruit, gaining $ sales and loyalty within fruit despite volume decline Focus on buyer engagement and purchase frequency when prices are high to generate further $ growth Only one from three marketing objectives has been achieved this year: Exceeded loyalty objective of 4% with 4.3% share of fruit dollars Purchase frequency fell from 5.9 to 4.5 purchase occasions in season Household penetration fell from 62.4% to 54.7% of households through the loss of less committed buyers Loose avocado and multipack formats/promotions likely to appeal to different buyers majority of shoppers purchase more than one avocado each shopping trip but one third of shoppers still only buy one avocado Older singles and couples need to be core to all communications about avocado Focus on increasing purchase frequency and quantity of heavy buyers to further drive growth as significant drop in quantity of avocado purchased by heavy buyers Heavy buyers purchase twice the volume of the average avocado shopper in a season Adult households and Young families increase importance likely due to different purchase motivations and fewer financial constraints that are likely to affect seniors 7 Copyright 2011 The Nielsen Company. Confidential and proprietary. 7

8 AVOCADO ARE IN A GOOD POSITION GAINING DOLLAR SALES AND LOYALTY WITHIN FRESH FRUIT DESPITE SIGNIFICANT VOLUME DECLINE COMPARED TO LAST SUMMER. Shopper loyalty to avocado exceeds objective of 4%. Copyright 2012 The Nielsen Company. Confidential and proprietary. Shopper loyalty to avocado within fresh fruit spend is 4.3%, up from 4% last summer. 8

9 FOCUS ON BUYER ENGAGEMENT & PURCHASE FREQUENCY WHEN PRICES ARE HIGH. LOSS OF LESS COMMITTED BUYERS WITH FEWER PURCHASES AS BASKET SPEND INCREASES. On average, households purchased 1kilogram less avocado this year but value growth achieved through higher prices. Penetration, Frequency & Spend per Trip New Zealand Half Year to 24 Mar 2013 vs YA Penetration Avg. Frequency Avg. $ Spend per Trip Source: Nielsen Homescan (New Zealand) - Issue # MKS178825_ Average quantity per shopping trip is down from 590g to 500g per household Copyright 2011 The Nielsen Company. Confidential and proprietary. 9 9

10 AWOP(Val), AWOP(Vol) & Avg Volume per Trip New Zealand Half Year to 24 Mar 2013 vs YA AWOP (Val) AWOP (Vol) Avg. Volper Trip Source: Nielsen Homescan (New Zealand) - Issue # MKS178825_ Copyright 2011 The Nielsen Company. Confidential and proprietary. 10

11 LOWER VOLUME SALES THROUGHOUT THE SEASON THIS YEAR A RESULT OF FEWER SHOPPERS, LESS FREQUENT PURCHASES & HIGHER PRICES. Summer 2012 Summer Copyright 2011 The Nielsen Company. Confidential and proprietary. 11

12 DESPITE HIGHER PRICES THE MAJORITY OF SHOPPERS ARE PURCHASING MORE THAN ONE FRUIT EACH SHOPPING TRIP. LOOSE AVOCADO AND MULTIPACKFORMATS/PROMOTIONS LIKELY TO APPEAL TO DIFFERENT SHOPPERS. An average, one third of avocado shoppers purchased only one fruit each shopping occasion but they account for only a small proportion of volume sales. 100% 2.5 fruit Avocado quantity purchased per shop -NZ % % 1.8 fruit 49.6 More than 500g 40% 20% 0% 1 fruit * Average purchase weight of an avocado used in Homescan calculations is 255g. 6.8 % Buyers % Volume 24 wks to 24 Mar g Less than 300g Approximate number of fruit purchased by each shopper group* 12 Copyright 2011 The Nielsen Company. Confidential and proprietary. 12

13 THE FOCUS NEEDS TO BE ON INCREASING FREQUENCY AND PURCHASE QUANTITY OF HEAVY AVOCADO BUYERS TO FURTHER DRIVE GROWTH. Heavy avocado buyers purchase twice the volume of the average avocado shopper in a season (18 vs9 avocado). Importance of Heavy Buyers 24 wks to 24 Mar 2013 Heavy buyers are also spending more $ but shopping less often and purchasing less avocado this summer -on average 3.2kg less per heavy household which is approximately 12 less avocado this season! 13 Copyright 2011 The Nielsen Company. Confidential and proprietary. 13

14 AWOP(Val), AWOP(Vol) & Avg Volume per Trip New Zealand Half Year to 24 Mar 2013 vs YA Average Spend $ Average volume purchased Kg Avg. Vol per Trip Kg Source: Nielsen Homescan (New Zealand) - Issue # MKS179147_ Copyright 2011 The Nielsen Company. Confidential and proprietary. 14

15 OLDER SINGLES AND COUPLES ARE CORE TO ALL COMMUNICATIONS ABOUT AVOCADO. Heavy buyers are more likely to be seniors and young families but seniors are most important to avocado sales. Demographics Distribution of Buyers & Value Based on Total Fresh Fruits For Period MAT TO 21 APR 2013 Based on NZ Source: Nielsen Homescan (New Zealand) - Issue # BDM179151_ Copyright 2011 The Nielsen Company. Confidential and proprietary. 15

16 ADULTHOUSEHOLDS & YOUNG FAMILIES BECOME MORE IMPORTANT WITHIN HEAVY BUYERS, BUT SENIORS REMAIN DOMINANT LIFESTAGE. Demographic Distribution Based on Buyers New Zealand For Periods 24 wks to 24 Mar 2013 vs YA 16 Source: Nielsen Homescan (New Zealand) - Issue # BDM179148_ Copyright 2011 The Nielsen Company. Confidential and proprietary. 16

17 SENIORS MAY BE MORE IMPACTED BY RISING PRICES AS ADULT HOUSEHOLDS & YOUNG FAMILIES GAIN IMPORTANCE THIS YEAR DIFFERENT MOTIVATIONS FOR PURCHASE & BUDGETARY CONSTRAINTS? Adult Households & Young families provide best $ growth opportunities. Demographic Distribution Based on Value New Zealand For Periods 24 wks to 24 Mar 2013 vs YA 17 Source: Nielsen Homescan (New Zealand) - Issue # BDM179150_ Copyright 2011 The Nielsen Company. Confidential and proprietary. 17

18 1-2 MEMBER HOUSEHOLDS ARE MOST IMPORTANT TO AVOCADO COMPARED TO FRESH FRUIT. Demographics Distribution of Buyers & Value Based on Total Fresh Fruits For Period MAT TO 21 APR 2013 Based on NZ Source: Nielsen Homescan (New Zealand) - Issue # BDM179176_ Copyright 2011 The Nielsen Company. Confidential and proprietary. 18

19 HEAVY BUYERS ARE MORE LIKELY 45YRS+ BUT SENIORS CONTRIBUTE NEARLY HALF THE $ SALES. OPPORTUNITY TO EXTEND SPEND OF 45-54YRS. Demographics Distribution of Buyers & Value Based on Total Fresh Fruits For Period MAT TO 21 APR 2013 Based on NZ Source: Nielsen Homescan (New Zealand) - Issue # BDM179176_ Copyright 2011 The Nielsen Company. Confidential and proprietary. 19

20 35-54YRS GAIN IMPORTANCE THIS YEAR AS RISING PRICES MORE LIKELY TO EFFECT PENSIONERS. Demographic Distribution Based on Buyers New Zealand For Periods 24 wks to 24 Mar 2013 vs YA 20 Source: Nielsen Homescan (New Zealand) - Issue # BDM179177_ Copyright 2011 The Nielsen Company. Confidential and proprietary. 20

21 HEAVY AVOCADO BUYERS ARE MORE LIKELY TO BE AFFLUENT COMPARED TO FRESH FRUIT BUYERS OPPORTUNITY TO INCREASE SPEND FROM THESE SHOPPERS. Demographics Distribution of Buyers & Value Based on Total Fresh Fruits For Period MAT TO 21 APR 2013 Based on NZ Source: Nielsen Homescan (New Zealand) - Issue # BDM179176_ Copyright 2011 The Nielsen Company. Confidential and proprietary. 21

22 DESPITE HIGHER PRICING, LOW INCOME HOUSEHOLDS INCREASED IMPORTANCE TO AVOCADO. Demographic Distribution Based on Buyers New Zealand For Periods 24 wks to 24 Mar 2013 vs YA 22 Source: Nielsen Homescan (New Zealand) - Issue # BDM179177_ Copyright 2011 The Nielsen Company. Confidential and proprietary. 22

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