Four Key Opportunities for increasing Retail Potato Sales

As the United Stats potato marketing organization, one of the key areas where the USPB invests our growers’ contributions are in better understanding consumers, shoppers and the retail shopping environment. Drawing on insights and implications gleaned from years of research, we are able to identify four key areas for increasing fresh potato sales at retail.

Opportunity #1:  Increasing purchase intent by communicating nutritional benefits

In a shopper intercept study, the USPB discovered that while only one in six shoppers knew about all of their nutritional benefits, two out of three shoppers said they would be more likely to purchase fresh potatoes after learning about their nutritional values¹.  Encouragingly, 56% of consumers already feel fresh potatoes are nutritious, and 44% agree fresh potatoes are a good source of Vitamin C and potassium, while only 21% believe potatoes are fattening². And the just released Burton-Freeman study has confirmed potatoes can be included as part of a healthy weight management regimen, as it’s the calories, and not the carbohydrates, that count³. Using circulars, in-store signage and potato packaging to let shoppers know about how healthy potatoes are can drive added sales and profits for the retailer.

Opportunity #2:  Triggering in-store purchase decisions

To the surprise of many, the same shopper intercept study found that fully 32% of potato purchase decisions are made in the store! Even among those shoppers who were using a list and had purchased fresh potatoes, 20% admitted they did not have potatoes on their list. Just as exciting, the study also found 36% of shoppers who were purchasing fresh potatoes already had potatoes on hand at home¹.

Ethnographic studies have found inspirations for meal ideas while shopping tend to come from the meat, fish and prepared foods areas rather than the produce department⁴. Given the strongest purchase influencer for potatoes is when shoppers see a display or other visual cue¹, one of the most effective ways for retailers to encourage incremental potato sales is by utilizing signs or recipes outside of the produce department to remind shoppers of just how much they enjoy potatoes. And this should be easy, because consumers pick potatoes as their favorite vegetable more than any other²!

Opportunity #3:  Increasing usage through appreciation of potato types and their favored uses

USPB research has found when shoppers use more than one type of potato, they purchase and consume more fresh potatoes overall⁵. From other studies, we know 17% of potato purchasers already consider a different type or variety of fresh potato before making their selection¹;when we increase shoppers’ knowledge of the differing qualities of potatoes, we elevate their perception of potatoes as “special” and help them view potatoes as more valuable. This, in turn, gives consumers a reason to buy and use more than just a single type, and helps motivate the purchase of multiple types during a single shopping trip. The most effective way for retailers to educate their shoppers about potato types is with signs posted at the potato table or by taking advantage of the potato packaging itself.

Opportunity #4:  Suggesting convenient and innovative ways to prepare &serve potatoes

Consumers increasingly want dinners that go from prep to table in 30 minutes or less;in fact, the percent of dinners prepared and served in less than 30 minutes rose to 52% in 2009, an increase of 5 share points since 2006. Although the majority of consumers (53%) state they can build a meal around fresh potatoes and have it on the table in less than 30 minutes and only 9% still think potatoes take too long to cook², there are still lots of shoppers to get the word out to. The desire for convenience has driven a 13% increase in the use of microwaves for preparing baked potatoes during the period 2000-20096, and the USPB is seeing sales of smaller size potatoes increasing because they cook faster, while providing the opportunity to serve a natural starch as quickly and easily as rice or pasta. To take full advantage of their shoppers’ interest in convenience, retailers should showcase value-added potato offerings, like steamable bags and microwaveable baking potatoes, while using in-store signage and circulars to remind shoppers of convenient potato preparation techniques like slow cookers and microwaves.

Sources:

1. USPB – Consumer Shopping Behavior:  Planned vs. Impulse Purchases Shopper Intercept Study 2009
2. USPB – Potato Attitude &Usage Study 2010
3. Weight Management Study, University of California, Davis and the National Center for Food Safety and Technology, Illinois Institute of Technology;lead researcher Dr. Britt Burton-Freeman, PhD, MS – released October, 2010
4. Hartman Group - Consumer Perceptions and Usage of Fresh Potatoes for Dinner Occasions 2009
5. USPB – Consumer Perceptions of Cross-Purchasing Between Russet and Red Potatoes 2006
6. NPD Group – National Eating Trends Study 2010