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Organic Produce - The Road Ahead

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by

Adam Mourad

on 18 November 2013

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Transcript of Organic Produce - The Road Ahead

Organic Produce - The Road Ahead
Breakdown on Category Performance CY 2013
The Million $ A Week Challenge
- Apples 12 months of the year. Worth 90-130k per week in sales
- Loose Bananas. Worth 270k per week. Loose Avocados. Worth 150k per week.
- Fill supply gaps. Continue working with OFG on growing plans to secure supply by growing to demand.
- Promote Wow stores as organic retailers. Become customers first choice when thinking "organic".
- Develop "Macro day" in store program with all fresh teams. Have a similar event to the market days but focused on organics. Enlist support of vendors for promotions, In-store promotions as well as meet the grower. Program to be run in key organic stores. Aimed to engaged produce managers and building momentum in the organic space. Done via national calendar.
- Multi-buy promotions with other fresh teams capturing sales from customers shopping organic but not in the F&V space. Aimed to capture new customers and benefit from repeat purchases.
- Further tailoring of range to target organic clusters for more profitable sales.
- Merchandising.
Supply Gaps
Merchandising
- Think of potential initiatives to incentivise produce managers to drive organic sales. Give them reason to sell organics.
- In-store education about organic F&V. Information packs to stores?
- Knowledgeable in-store demonstrations.
- Develop off location unit that focuses on organic message and delivers key information about growers. Build consumer trust.
- Conventional F&V is cost focused. Organic F&V is quality focused (with cost still a factor). We need to better clarify our position on organics food. Will assist in better consumer education.
- Identify our true value of organic F&V and reinforce it as this is possibly becoming a grower deterrent. Decisions not to range products due to significant cost disparity between conventional and organic will and more then likely is sending the wrong message to growers. Growers talk.
- Dual locate the major organic lines. Organic consumers will look for it in the organics bay but opportunity to capture incremental sales from non organic consumers. How does F&V team feel about this?
- Opportunity for signage selling the organic story on where product is grown and by who. Organic consumers are more in tuned with this sort of information and care for the ethical side of the business to.

Potential to move away from PP product and merchandise differently in key organic stores.
Promotional Calendar Opportunities
- Continue to develop relationship with OFG and constant review and development of future growing plans.
- Develop knowledge of regional production periods to determine crops capable of year round production (possibly engage agronomists to build plan?). Then target growers in those regions.
- Improve primary freight to cater more pro-actively to organic growers despite small scale, focusing on the bigger picture of national supply.
- Encourage vendors to research and develop full year supply.
- Continue to search for more organic growers. "rumor" has is it that many are still selling their produce through conventional markets.
- Communicate gaps to growers. Open invitation to develop new supply relationships.
- Pro-active packaging development with the vendors.
- Pro-active agronomists involvement in Organics and working more with our growers.
Intellectual Property
Develop Organic Production IP
Developed by WW/Agronomists and licensed by
competent growers. In a developing market, it is the IP that is most valuable. If this is shared it grows the production base (to the benefit of Wow) and if it is owned by Wow, the value of the IP cannot hold the industry to ransom. This adds major benefits in doing business with Wow - the IP.
The IP is continuously developing. this can later be more aggressively managed. I.E A Wow ABC guide to growing organic strawberries.

Promotional Calendar Opportunities
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