WATERMELON PRESENTATION Domestic A & U Study. rose research, llc. November, 2008
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1 WATERMELON PRESENTATION Domestic A & U Study rose research, llc. November, 2008
2 Study Purpose Understand the dynamics operating in the watermelon category - - among purchasers (respondents who have purchased watermelon in the past 12 months) and non-purchasers. Both summer and winter purchasing/non-purchasing habits Measure consumer awareness ofwatermelon health benefits Determine the affect the economy has on watermelon purchasing habits Update the attitudes and behavioral practices of consumers since the last project was conducted in 2006.
3 Methodology A total of 3,204 interviews were conducted 2,802 during June - August and 402 during March/April, Qualified respondents were men and women 18 years of age or older, who are the primary grocery shoppers of their household. The study was conducted online among a nationally representative sample of consumers living in the United States.
4 Purchase Penetration
5 Fruit Purchased Within the Past 12 Months 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% While incidence of purchasing produce has gone down slightly this year compared to previous years, watermelon purchase penetration remains strong despite weakened consumer spending. 96% 92% 95% 92% 92% 90% 87% 87% 77% 77% 74% 70% 72% 70% 66% 65% 80% 77% 74% 72% 37% 36% 33% 32% Bananas Apples Watermelon Cantaloupe Oranges Honeydew
6 Watermelon Purchasers (By Subgroup) Watermelon purchasing is skewed toward consumers who are aware of watermelon health benefits, households earning in excess of $50,000 and respondents with children under the age of 18 living at home. Aware of Watermelon Health Benefits 77% 61% 64% Income 72% 77% Children Home 79% 67% Yes No <$50K $50-$75K $75K+ Yes No
7 Reasons for Purchase & Non-Purchase
8 Watermelon Purchase Motivators 100% 90% 80% 70% 60% 50% 40% In addition to being loved for its refreshing great taste, consumers also praise watermelon for the following: 93% 95% 89% 88% 90% 88% 84% 83% 84% 81% 81% 79% 76% 62% 70% 71% 63% 50% 59% 40% Summer Winter 53% 50% 30% 20% 10% 0% Refreshing Family likes it Satisfying Heathy & Nutritious Low in fat Safe food to eat Good value Contains lots of vitamins Good for my heart Versatile Contains lycopene
9 Reasons for Non-Purchase Summer vs. Winter While price is the major reason for not purchasing watermelon especially in the winter, the perception that watermelon is a summer fruit, lack of availability and quality concerns are the primary reasons for not buying watermelon during the winter months. Summer % Winter % It s too expensive/not a good value It has a poor taste 8 21 It s poor quality 5 23 It s not available at the store 3 27 where I shop It has a poor texture 3 11 I only buy it in season 1 8 It s too cold outside - 14 It s a summer fruit - 36 Nothing/no particular reason 62 66
10 Health Awareness & Benefits
11 Awareness of Health Benefits NWPB has been successfully promoting the various health benefits of watermelon - - and positively, awareness of it s health benefits continues to grow. Awareness of Watermelon Health Benefits 70% 60% 50% 40% 30% 50% 50% 44% 56% 65% 65% 62% 35% 35% 38% 20% 10% 0% Yes No Summer Winter
12 Watermelon & Lycopene Content Also encouraging, a greater number of respondents (who know that watermelon contains lycopene) are aware that it contains more of this antioxidant than any other fresh produce item versus previous years. 80% 70% 60% 50% 40% 30% 20% 10% 0% 41% 59% 61% 39% 24% 76% 26% 74% Yes No Summer Winter
13 Awareness of Watermelon Health Benefits and Purchase Intent Moreover, and an indication of the importance of watermelon health benefits, the vast majority of the respondents (who are aware of watermelon health benefits) would buy watermelon because it s healthy and nutritious. 80% 70% 74% 74% 77% 78% 60% 50% 40% 30% 20% 10% 26% 26% 23% 21% Yes No/Don't know 0% Summer Winter
14 Awareness of Heart-Healthy Benefits of Watermelon and Purchase Intent Knowing that watermelon is good for your heart is even more impactful, as 81% of the respondents indicated that they would be more apt to buy it if they had this information. 81% 19% Yes No/Don't know
15 NWPB Health Claims & Logos
16 Affect of Health Claims on Purchase Decision Reinforcing the importance of watermelon health perceptions, at least three-fifths of the consumers reported that all of the claims below (which have been approved for use by the USDA) would be impactful and encourage them to buy watermelon however the more general positioning is directionally more positive. Summer % Winter % Eating watermelon can help maintain cardiovascular health Watermelon amino acids citrulline and arginine can help maintain blood flow and heart health Watermelon consumption increases free arginine and citrulline, which can help maintain cardiovascular function Watermelon has amino acids such as citrulline and arginine that help maintain arteries 70 65
17 Affect of Health Claims on Purchase Decision The heart healthy logo elicits a better response (in terms of stimulating purchasing), followed by the lycopene leader logo and the I love watermelon logo. 66% 59% 56% 51% 49% 38% Summer Winter Summer Winter Summer Winter
18 Price/Value, Economic Environment & Watermelon
19 Affect of Current Economic Environment At least three-quarters of the respondents agree that they are paying more attention to prices (including food products) and cutting back on expenditures due to the current economic climate. Summer % I am more concerned about the prices of food products than ever before I am cutting back on my expenditures due to the current economic environment I pay attention to prices when I m shopping more than I used to I am sacrificing luxury items and only buying the things I need
20 Perceived Value for the Money - Summer Importantly (especially in this soft economic environment), more than three-fifths of the respondents who ve bought watermelon this past summer believe it is a better value compared to other produce items. Much better value, 26% Somewhat better value, 36% Equal value, 33% Much worse value, 0% Somewhat worse value, 5%
21 Recommendations
22 Recommendations The National Watermelon Promotion Board should continue to stress its health strategy to consumers - - especially the cardiovascular/heart healthy messages (approved by the USDA) as well as utilize their heart healthy logo which will help differentiate it from competitive items in the produce section. In addition, the NWPB should consider positioning watermelon as the produce item that offers the best value for the money (especially price per pound) during these difficult economic times.
23 Recommendations The NWPB should also reinforce watermelon all-year-round usage by stressing its healthiness, versatility and availability as this can result in significant sales gains. In addition, the NWPB should consider testing promotions before launch to determine which ones will work the best in terms of increasing sales. Finally, based upon our experience working with numerous commodities (some of whom have had to change their strategic plans based upon our research results and the declining economy), results from this study validate & confirm NWPB s 2009 strategic approach of Making Watermelon an Everyday Healthy Choice.
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