Are Tasmanian fresh produce promotional programs really working and giving a decent return on investment?

Australian Produce Group (APG) on behalf Tasmanian Vegetables

Australian Produce Group the produce marketing department

Who we are Established 2006

Dedicated to servicing the marketing and business development needs of the

Australian fresh produce industry

Fully integrated below the line agency operation

National efficiencies with our head office based in the Sydney Markets

APG Team

Sharnah Coulthart – Manager

Bruno Muscatello – Manager, Business & Development

Rebecca Clingan – Client Account Manager

Ashlee Kilmartin – Co-ordinator Marketing & Events

Tasmania: A food lovers paradise

Our air is scientifically proven to be just about the world’s cleanest; our soils are rich and fertile.

So our produce, seafood and wines taste wonderfulwww.discovertasmania.com.au

Fresh vegetable sector identified as main growth area

Marketing plan and market research undertaken

Investment in developing campaign visuals and advertising in lifestyle and food magazines and newspaper entertainment supplements

Disconnect between consumers ability to identifyTasmanian vegetables in store

Research undertaken to prove scientifically better taste (Carrots).

$330,000 invested in marketing programs

Campaign platforms

Trade Program

Merchandising

Website:Taste is in our nature

Research: Retailers + Consumers

Events: Sydney Royal Easter Show

Advertising in 2009

Are Tasmanian fresh produce promotions really working?

Tasmanian Vegetable Marketing 2010

Sydney Merchandise Campaign & Trade Program

How did we measure return?

1. Feedback from wholesale agents and retailers

2. Program growth

3. Grower returns

4. Independent research

Bringing the fresh taste of Tassie to Sydney!

Trade Program Building relationships with key stakeholders

Merchandising Creating touch points with consumers at the point of purchase

Taste is in our nature - objectives

1. Generate points of connection between Sydney consumers and

Tasmanian Vegetables through an intensive merchandising program with

premium independent retailers

2. Understand wholesale and retail perception of the merchandising

program

3. Build strong relationships with Sydney Markets Wholesale agents and

independent retailers that would generate a platform to support future

activity.

Taste is in our nature - activation

Campaign period of 29th March to 20th August 2010

Wholesaler engagement:

Weekly visits to each agent within the markets

Prompt follow up on requests

Merchandising of wholesale agent stands

Worked with wholesalers on marketing windows for Tassie produce and

merchandised in alignment with windows for maximum effect

Taste is in our nature - activation

Campaign period of 29th March to 20th August 2010

Retailer Engagement:

Visited fortnightly for six weeks, two monthly visits and final point of sale removal

Merchandised stores, provided retailers with ideas on promotion of Tassie

Vegetables

Gathered insight into the retailers knowledge and awareness of Tassie Veg program

and consumer reactions

Promptly acted on retailer requests

Suggested the use of extra marketing materials including DVD’s and register screen

shots.

Measuring returnResults

Feedback: Wholesale Agents

“Retailers loved having staff members come to their stores to merchandise, it makes them feel special and adds an element of competition amongst retailers”

“Customers did not have many comments to us, but in the wholesale world that means that the program is a success. No news is good news.”

Feedback: Retailers

“Really loved this promotion. The produce is a little more expensive but due to quality of the produce it still sells. The point of sale prompts the consumer to ask questions, so it really helps.”

“Their (Tasmanian) produce is always so good, it looks great, the colour is amazing and the imagery of the point of sale helps to highlight this to the consumer.”

Grower returns

Average Sales Price /kg Summary - Tasmanian Veg.

Products

Low High Avg Low High Avg

Beans $1.18 $3.36 $2.27 $1.65 $3.82 $2.74

Broccoli $1.28 $2.19 $1.74 $1.77 $2.53 $2.15

Carrots $0.96 $1.31 $1.13 $1.05 $1.33 $1.19

Onions $0.80 $1.30 $1.05 $1.46 $1.71 $1.59

Swedes $2.00 $3.00 $2.50 $2.25 $3.25 $2.75

Tas Veg Returns*Market Returns **

*Sydney Markets Wholesaler**Sydney Produce Surveyors Pty Ltd

Wholesale: Grower returns

“We believe that this merchandising program provided and did result in increased sales and consequently a better average return to the grower.”

Stuart Dickson Produce

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

Beans Broccoli Carrots Onions Swedes

Market Low Return

Market High Return

Tas Veg Low Return

Tas Veg High Return

Market Average Prices

Bottom line.... has it worked?

1. Clear objectives

2. Fantastic creative

3. Consistent approach and touch points throughout the

campaign period

4. Excellent stakeholder relationships established

5. Increase on retailer participation from 2009

6. Thomas Dux stores joined the program

7. Further marketing materials made available for retailers

Program opportunities

Build on established relationships with wholesale agents and

retailers

Build the program further to include other retailers

Use Tasmania as the benefit for consumer, promote the benefit to

the consumer through at store promotions and sampling

Extension from the store would be to run an integrated consumer

campaign that has a key objective to engage the consumer in Tassie

Veg.

What it takes to achieve results on marketing promotions investments

Have a clear vision and understand your offering

Know your audience

Be Aware of general consumer trends

Be consistent and collaborative

External & Internal Communication

“Learn the fundamentals of the game and stick to them. Band-Aid remedies never last.”Jack William Nicklaus