Dole Consumer Research Yields Shocking Insight

Surprising results from recent research by Dole challenges the produce industry to reinvent the way it perceives promotion and merchandising in the produce department. “Produce is the biggest draw in the store, and yet it hasn’t changed much over the years,” says CarrieAnn Arias, director of shopper marketing for Monterey, CA-based Dole Fresh Vegetables. “We undertook this research to look at how produce affects the entire store and shopper behavior, and to discover if our standard practices are optimizing produce department sales. The results revealed areas where retailers and our industry can make substantial progress.”

Implemented by London, UK-based TNS Retail & Shopper, a world leader in market research and global market information with offices throughout the world, the unique study “triangulated” the shopper using multiple methodologies to yield richer results. The study was performed in six stores of differing formats throughout five geographic regions. Its goal was to determine what shoppers are doing in real time.

“Multiple research methods are required to provide robust learning and insight,” says Arias. “Observational techniques must be used to understand shopper behavior properly since shoppers post-rationalize when surveyed. Integration of secondary data and industry knowledge is also a powerful addition.”

Multi-Method Study

The study, performed during August and September, 2011, and released in July, 2012, utilized four primary methods of investigation: PathTracker, Eye-Tracking, Exit Interviews and Qualitative Interviews. PathTracker shoppers were selected at random as they entered the store and were unobtrusively followed. Video cameras tracked shoppers’ paths and captured behaviors. Eye-Tracking respondents were recruited and outfitted with high-tech camera glasses that recorded exact points where shoppers were looking. Exit Interviews were conducted after shoppers left the produce department and Qualitative Interviews were conducted while viewing eye-track video with the shopper to help better understand motivations while shopping.

“With PathTracker, we looked at how people shop the produce department with the goal of helping to identify what the optimal produce department organization and adjacencies would be,” reports Arias. “We wanted to pinpoint what should be first and last in flow and consider design, like how fixtures and displays should be laid out.”

Eye-tracking revealed what people notice and how long it interests them. “We used this to look at how shoppers use POS,” states Arias. “What is effective and what is not? We also looked at what role price plays in the shopper’s decision-making process. Finally, we watched how the shopper navigates the section and which products serve as signposts.”

The interviews helped reveal the shoppers’ attitudes and motivations. “Through the Exit Interviews, we discussed other areas of the store shopped, store selection factors and the role of produce in store selection, produce shopping satisfaction and produce purchase drivers and barriers,” says Arias. “The Qualitative Interviews helped obtain a deeper understanding of the why to some of the tracking and behavior we observed.”

Startling Results

The study exposed some surprising and likely controversial results with respect to how produce is merchandised and promoted. “Because of the methodology, we were able to identify many things we have considered the ‘gospel’ of produce shopping that in reality might not be so true,” says Arias. “We also saw some distinct results that may contradict some of the more recent innovation in the retail world today. There are a lot of nuggets that came out of this study.”

The first notable result of the study is the confirmation that the produce department should be first in flow. “The PathTracker information illustrates the importance of locating the produce department first for highest sales,” says Arias. “For stores that do not have produce first in flow, research shows traffic flowing into the department was negatively impacted and sales of produce were lower.”

The study also indicated the trend of placing produce in service deli and prepared foods is not the optimum location. “The research showed how produce shoppers frequently bypass significant sections of these areas,” explains Arias. “Displays around and between the two departments became dead zones. We learned that dairy is a better adjacency than the service deli.”

TNS research also showed that the faster shoppers buy, the more items they will purchase. “Contrary to popular belief, slowing down the shopper by adding obstacles doesn’t increase sales as much as speeding them up does,” reports Arias. “For every one second we slowed a shopper down we got about 2 cents, yet for every one second we sped a shopper up we got about 21 cents (of total basket ring). Decreasing purchase time at the shelf results in larger baskets more effectively than encouraging longer trips.”

More Nuggets

Additional revelations revolved around two produce powerhouse techniques — the addition of SKUs and use of POS. The inclusion of non-produce items in the produce department was raised as a potential stumbling block. “It is important to have non-produce items, but the research showed that relevancy is very important,” says Arias. “Research shows that non-produce items currently occupy an average of 25 percent of space in a produce department, but only account for four percent of sales.”

The study pointed to a corresponding decrease in sales with an increase in non-produce items. “Shoppers expressed that there was too much paraphernalia in the department and didn’t get the connection to produce for many of the items,” explains Arias. “Retailers must look for the right combinations of products that make sense and build sales. This is a tremendous opportunity for retailers to make some quick changes that would impact their sales. If you’re going to devote one-quarter of the space, you want to get one-quarter of the sales.”

The study also illustrated how current POS is not engaging the shopper. “The EyeTracker data showed that the store’s ‘barker’ or price sign is the only POS the shopper views,” reports Arias. “And, even pricing POS is largely overlooked. Shopper attention is on the product.”

Effective POS must concentrate on quicker communication methods. “Text-heavy POS doesn’t work,” adds Arias. “The amount of time a sign is looked at is .3 seconds on average. Communication must link to usage through images and icons.”

The Qualitative Interviews revealed time constraints hinder new product purchases as well. “Most shoppers expressed they won’t spend time puzzling out products that are outside their usual routine,” says Arias.  

A Call To Reinvent

The study results indicate the produce department is ripe for reinvention. “The research points to the opportunity to apply some of the things that happen in center-store to produce and experience great success,” advises Arias. “Traditional CPG (Consumer Packaged Goods) practices in produce can be effective and lead to big wins.”

Reinvention starts with partnering. “One of the main drivers of this study was to ensure we’re being the best partners we can be with our retailers,” states Arias. “No one has ever done research like this, and we undertook it because it makes us a better partner. In addition to our retail partners, we also partnered with all parts of Dole — fruit, vegetables, and packaged salads. We wanted to ensure a comprehensive approach.”

Moving forward, Dole looks to utilize the information to help lead transformation. “As the biggest brand, Dole is well positioned to partner with retailers to lead a reinvention,” says Arias. “Part of our commitment to the partnering retailers was to present the results of the research and help them find the potential advantages. We’re exploring with them the things they want to focus on with us in the future.”

In the end, it comes down to understanding shopper expectations. Arias explains, “We’re being progressive and shopper-centric. A whole new set of questions came out of this research, but that’s the nature of research. We must stay focused on the shopper.”

Dole hopes for the industry, in general, to glean and apply helpful nuggets of information from the research. “It may be unreasonable to think all the results can be implemented,” says Arias. “But we’d like to see companies at least undertake some of the top things and implement them. We just want more produce in the basket — if there is more produce in the basket, everybody wins.”

As the retail landscape changes, so must produce. “Consumers are becoming more demanding,” states Arias. “They are becoming increasingly more connected and requiring more customization. Competition for the grocer retailer’s produce business is fierce, and shoppers want more from their grocery stores. As an industry, we must continually look at how we can work together to ensure we’re maximizing our opportunity and meeting shopper needs.” pb

Source: Produce Business