Objectives:

1.Analyze and integrate the information from the grocery trade survey with the recent consumer market research results.

2. Analyze more fully and compare in an integrated fashion the various consumer market study results in relation to ways that these results can be used by the industry.

Introduction:

A series of market research studies have been conducted in recent years that have examined various aspects of consumer and trade customer perceptions and preferences for fresh Michigan apples. These studies have helped on-going efforts by the Michigan apple industry to develop and target appropriate strategies that address the changing needs and demands of Michigan’s fresh apple customers. In order to enhance the utilization of the research findings from these studies, this project was designed to integrate the findings from the various market research studies on apples. This project was recommended by the Michigan Apple Committee (MAC) and designed in close cooperation with MAC staff.

Progress to Date:

A survey of grocery trade customers in three major metropolitan markets was completed during the year. Topics covered in the trade survey includes (1) suggestions on how to sell more Michigan apples, (2) how grocery trade and consumer customers needs are changing, (3) Michigan’s performance in serving customer needs, (4) how Michigan compares to competing apple-producing regions, (5) suggestions on effectively introducing new varieties, (6) varieties in greatest demand, (7) changes in retail display space for apples, (8) demand for bags and trays, (9) suggestions for new types of packs and (10) other topics.

Much useful information was obtained from this grocery trade survey. This included information on the progress that the Michigan apple industry is making and on ways to continue to improve in serving customer needs in order to further expand the demand for fresh Michigan apples. A number of the suggestions which the trade customers made in the survey are now being implemented by the Michigan Apple Committee and Michigan shippers.

Results of this year’s trade survey have been communicated, along with discussions of implications and related industry strategies, to the staff and board of the Michigan Apple Committee, their advertising agency and the Michigan Apple Shippers Association. Articles have been written in The Great Lakes Fruit Growers News to communicate the results to growers and the broader Michigan apple industry.

Work has been done, and is continuing, on integrating the results of several previous market research studies on apples at M.S.U. along with this year’s grocery trade survey results. The previous M.S.U. apple market research studies which were involved with this included: an earlier set of consumer focus groups, a large sample consumer telephone survey on apples, a survey of Michigan apple shippers, consumer taste and visual tests and another large series of consumer focus groups. The work of the current project involves analyzing and integrating the results of these previous consumer market research studies with the grocery trade survey, as well as comparing and contrasting the results of these various studies.

One clear pattern that has been shown in all of the recent M.S.U. consumer market research studies is that consumers rank quality of fresh apples, including crispness and bruising, as extremely important in influencing their apple buying decisions. This was shown in the earlier consumer telephone survey and in both sets of consumer focus groups. Michigan apple shippers also indicated in their earlier survey that improved quality, especially of apple condition, is extremely and increasingly important, along with providing bruise-free fruit, in order to be competitive in fresh retail markets. These earlier market research results on the importance of quality in building demand for fresh Michigan apples was supportive of, and related to, a major emphasis on improving fresh quality as a component of needed strategies for the Michigan apple industry as developed several years ago by the Michigan Apple Industry Strategic Planning Task Force. In this year’s trade survey, many of the grocery customers now say that the Michigan apple industry has made impressive progress on improving its overall quality of fresh apples during the last few years.

The excellent progress on improving quality is the result of much concerted efforts by all segments of the Michigan apple industry, including shippers, packers, storage operators, growers, the Michigan Apple Committee, M.S.U. Extension etc. The changes in the industry have included management commitment to quality, improved coordination among all segments of the Michigan apple industry, new investments by packers and growers and research and extension on needed steps for quality. As reflected in the trade survey responses, the impressive progress which Michigan has made on quality will help to build demand for fresh Michigan apples compared to what it would have been. This is especially important with the very strong competition for markets from the apple industry in Washington.

An important topic which was investigated in several of the market research studies of consumer and trade customers was an exploration of which characteristics of apples are most important in influencing the apple buying decisions. As shown in Table 1, consumers in both the phone survey and the focus groups consistently ranked crispness much more frequently as "very important" than either color or size. In a similar fashion to the consumers, the grocery trade customers rated crispness quite highly and many fewer rated size as "very important." By contrast, many more of the trade customers rated color as "very important" than did the consumers.

In both the consumer telephone survey and the trade survey, the respondents were asked about the importance of a number of apple characteristics in influencing the apple buying decisions. The results, as summarized in Table 1, show that a very high percentage of both consumers (87%) and the trade (96%) rate unbruised as a very important characteristic. Flavor is also rated very important by a high percentage of both consumers and the trade. However, for both flavor and crispness, a considerably higher percent of consumers rate these as "very important" than do trade customers. Color was rated "very important" by a high 73% of the trade customers, but only by 46% of consumers. Another 30% of consumers rated color as "somewhat important" for their apple buying decisions.

Variety was rated as "very important" by 31% of the trade and a higher 44% of consumers. On the other hand, almost 80% of both the consumers and the trade indicated that variety is at least "somewhat important" for the apple buying decisions. The focus group discussions indicated that for a number of consumers, variety is used as a proxy indicator of flavor and crispness which are consistently rated "very important" by a very high percentage of the consumers.

Price of the apples, fruit size and state origin of the apples were all rated important by considerably lower percentages of both consumers and trade customers than were the other characteristics. Consumers, on the other hand, rated retail price as more important than the trade customers rated price.

Effectively introducing new apple varieties through grocery stores is important to the apple industry. In both the grocery trade survey and the consumer focus group studies this issue of how to most effectively introduce new apple varieties was explored with both of these types of customers. The suggestions by both the trade and consumers were similar. Both groups said that tasting and in-store demos are the single most important approach for introducing a new variety to consumers. Both consumers and retailers said that it is important to provide consumers information on the characteristics of the new variety along with information on uses. Consumers emphasized these types of information somewhat more than did the trade customers. Many of both the trade customers and the consumers recommended that a combination of approaches be used together including the in-store demos, consumer information on the variety, special displays, promotions and special introductory prices. These combinations along with merchandising and advertising were emphasized especially by the trade customers.