Consumers ‘hunt’ for daily groceries at supermarkets. They often spend more time in the fresh produce department than in the aisles with dry groceries. They use a list or get inspired, they check the quality. But when you see someone studying the details, looking at the signs that state the origin and maybe even taking photos? You’ve probably seen a fresh produce colleague. Every fresh producer probably suffers from this occupational disability What’s on the shelves, where’s it from, how is the quality and what is the retailer charging for it? Fun to find out, but it’s also valuable information for trade. That’s begging the question: who is systematically looking for that?
Off the record
Calling several commercial businesses, large growers or producer’s associations who trade and auctions gives varying images. Not everyone is willing to publicly answer that question, they’ll only give a bit of insight into the approach, or they’ll only speak off the record. Some companies indicate they want to do research, but haven’t the time. It often happens ad hoc when doing the grocery shopping. A number of companies is willing to talk about it. A phone call to Leonard de Vries from Fruity Pack teaches us that they do very extensive market research. “In order to get the maximum out of our category, we keep very good track of the rapidly changing food trends, we use market data for analyses, and do extensive consumer research to map out the shopper. We use this information for our category plans and assortment vision. Retailers ask to be de-burdened more and more, and they want to work on a good relationship together.”
Data streams
ZON Fruit & Vegetables is working intensely with its customers. By having the right mix of category management, positioning and in-store marketing, they both optimise returns for the customers and for the affiliated growers. According to Ilona van Osch, data is very important for that. “As support of our account managers talking to our customers.” To be well-informed, they use three data streams. The figures bought from companies like IRI and Gfk are very important. These are about the customer. What are customers buying, and where and when? ZON can get a good insight into consumer behaviour through Gfk. Market figures from GroentenFruit Huis are another important source of information, and these give more insight into macro-levels. Research on the shop floor is an important data stream to gain insight into their competitive position. “To that end, we regularly do our own research,” Ilona says. “But we also want information about shops in Friesland, for example. We sometime use parties such as Roamler for that.”
Systematic
Christiaan Rijnhout is commercially responsible at Roamler, a company that does systematic shelf research at retailers throughout the world. The Workforce, or Roamlers, accurately map products on the shelves on site, they see whether enough stock is available, and, if desired, they conduct tests, supported by photographic evidence and information about the location. Many A brands focus on facts and data. They hire Roamler to research their execution on the shop floor. Christiaan: “In the fresh produce trade, the so-called gut-feeling still plays a part. Compared to other sectors, they are much further along. Category management within fresh produce is still in its infancy, although it offers so many chances.” Much data can be found on fresh produce packaging, so this is gathered to make interesting analyses. “So much more is possible than just comparing prices, Roamlers can also record and compare the diversity of supply, the country of origin, the supplier or even the location. Agriculturalists, for example, are interested in knowing whether varieties they developed are on the shelves.”
Switching
Christiaan has noticed the need for data increasing. More and more exporters, traders and growers want information about consumer behaviour, and about what’s happening in shops. “It concerns a natural product, so you’d want to know what it looks like in shops. You could take a look yourself, but you’d have a much wider reach through Roamler,” Christiaan says. What is most requested? “Information about which competitor supplies to who, and when they switch from Dutch to Spanish product, for example. When Lidl Germany switches to Dutch product, it has much impact on the market right away. In short, fresh producers do more and more (retail) research, but the use of data in the entire supply chain can definitely still be optimised,” Christiaan concludes.
Own needs
Agro & Retail Desk is active in the horticultural supply chain to acquire better margins and more clarity in trade, under leadership of parties. “Roughly, 95 per cent of the fresh produce market is still about trade and price. In that field, you can get information in many different ways. For example, by cleverly questioning parties and by getting in the middle of it. You can find out a great deal,” says Huub Welles from the Agro &Retail Desk. “This knowledge isn’t shared. Everyone uses it for their own needs. And that makes sense, as it’s competition-sensitive information.”
Tangles
Yet Huub has noticed an increasing need for transparent cooperation with the final customer. Huub: “The sales structure we organised together, is an nontransparent as anything. We get stuck on that with the entire sector. Growers, cooperatives, trade and even retailers, everyone is bothered by it. Broadly speaking, all trade parties supply all retail organisations. That indicates a tangle of suppliers relationships towards retailers. Sometimes the same batch is offered five times, making it seem like there’s a lot more product. This allows retailers to play the price game and buy cheap. Purchasing price is naturally important, but retailers also have other needs. Those opportunities now often don’t exist, because the sector isn’t filling them in. By adding value to a product, you get a supplement on the shelves that can also be paid. I’m looking for these kinds of opportunities with our customers. In the end, everything increases, and everyone can start making more money.”
Trial and error
Huub understands the need for more insight into the market. However, he warns that insight doesn’t just appear. “You can monitor or publish all kinds of things. Much data about consumer behaviour can be bought. Pre-competitive data, which benefits everyone, could be made public, as GroentenFruit Huis does. BtB information is much more sensitive. When you know your competitors moves, you could benefit. But focus shouldn’t be on that. As a company it’s better to have a plan and a vision for the future, looking into getting accompanying market information, and subsequently adding that to your plan. That results in a proposition with which you can approach customers. That is a type of trial and error in which the proposition has to prove itself. It’s better to get this information from the source, the retailers. When they need something, they’ll definitely share it. So you have to make sure you enter into talks with them.”
Changes
Hunting for data in supermarkets results in much information, but bare data has not much value when background knowledge is missing. Huub: “It’s not just about figures, I can’t emphasise that enough. When you don’t know the underlying needs, it’s easy to come to the wrong conclusions and end up on the wrong track. Besides data, it’s therefore very important to have personal contacts. The art is finding out the retailers’ unique characteristics. Looking for that and thinking of how to interest them. You are then making connections instead of trading. You are then also working on changes and that needs time, I’ve noticed. Sometimes you’ll be successful, but practices often prove to be obstinate.”
More information:
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