1 Natural Marketing Institute (NMI) ese/Olives/Chocolate Study #3509-26; September 2007 Specialty & Gourmet Cheese, Specialty Olives, Organic Chocolate Prepared By: The Natural Marketing Institute NMI Study # 3509-26 September 2007
Mar 26, 2015
1The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Specialty & Gourmet Cheese, Specialty Olives,
Organic Chocolate
Prepared By: The Natural Marketing Institute NMI Study # 3509-26
September 2007
2The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Table of Contents
Topic Page
Research Objectives/Methodology 3
Executive Summary 4
Specialty/Gourmet Cheese 15
Specialty Olives 40
Organic Chocolate 47
Demographic and Shopper Profiles 50
3The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Research Objectives/Methodology
Objectives
To assess detailed attitudes and behaviors among Whole Foods Market (WFM) and Wild Oats (WO) Shoppers regarding specialty/gourmet cheese. Secondarily, an overview of specialty olives and organic chocolate is provided. Specifically, the research will address:
Frequency of buying specialty/gourmet cheese; reasons for purchasing and for not purchasing Venues specialty cheese is bought, and why Importance of various considerations in buying specialty/gourmet cheese Awareness/impressions of WFM/WO Cheese Monger Interest in various marketing and merchandising efforts for the cheese department
Methodology Quantitative research among 1010 pre-identified Whole Foods Market shoppers and 190 Wild
Oats Shoppers who have shopped at least 10x/year (total sample of 1,200) Detailed questions about specialty/gourmet cheese purchases at WFM/WO were asked of
shoppers who purchase specialty/gourmet cheese at least monthly WFM sample derived from NMI’s e-Screener Panel (ESP) Online survey methodology; conducted August 2007
Executive Summary
5The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Strategic Implications: 10 Ideas to Grow Specialty Product Sales at WFM/WO
1. Highlight the key purchase drivers of specialty/gourmet cheese at WFM: selection, quality, unique choices. Natural/organic qualities are less of a draw.
2. Reinvent the experience of buying specialty/gourmet cheese, which is of key importance and offers a strong opportunity for competitive differentiation.
3. Align merchandising efforts with shopper interests: smaller “sample sizes,” more local cheeses, smaller cuts, special promoted offerings. This may also draw new S/G cheese buyers to the category.
4. Improve visibility/involvement of Cheese Monger. This is a well-regarded resource which currently is underutilized. S/he also contributes to the experiential component of shopping WFM.
5. Monitor pricing. While not a key consideration, it may have more impact as other stores improve their price/value relationship. Selected lower pricing may also expand the reach/trial of the category.
6. Increase marketing efforts in the department: signage on specific cheeses, more samples, highlight seasonal offerings, tell the story, etc.
7. Promote accompanying products – especially fresh bread, crackers, fruit. Also cross-market specialty/gourmet cheeses with olives.
8. Consider promoting/merchandising gourmet deli options… deli cheese is a frequent purchase and gourmet choices may be attractive to specialty/gourmet oriented shoppers.
9. Increase marketing/merchandising of specialty olives to attract those who only buy “regular” varieties and entice them to trade-up. Create a need/desire for specialty varieties.
10. Educate consumers on the benefits of organic chocolate – they are unaware of the growing process, unaware of the product, and believe organic status of other ingredients (milk, sugar, vanilla…) is more important than the cocoa.
6The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Executive Summary: 1 of 6
WFM Shoppers Are Enthusiastic Purchasers of Specialty/Gourmet Cheese
The vast majority of WFM Shoppers have bought cheese in the past 3 months (89%). Two-thirds buy either basic block varieties or specialty/gourmet.
Fewer buy basic shredded (59%), packaged deli (48%) or sliced deli (42%) varieties.
Overall, specialty/gourmet cheese is purchased about 2 times/month. On average, about $8.20 is spent at each purchase and shoppers buy about ½ lb.
More is spent on specialty/gourmet cheese than any other type of cheese by about 30-50%.
Shoppers define specialty/gourmet cheese as “high quality,” “flavorful,” and “interesting/different."
Great taste is a key component of specialty/gourmet cheese to virtually all WFM Shoppers (99%).
Buying specialty/gourmet cheese is also experiential – most (95%) consider trying new varieties an adventure.
7The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Executive Summary: 2 of 6
WFM Shoppers Are Loyal to WFM for Specialty/Gourmet Cheese Purchases
WFM is the primary destination for buying specialty/gourmet cheese among WFM Shoppers. Nearly all (95%) have bought at WFM in the past 3 months.
WFM Shoppers buy at other stores significantly less: Trader Joe’s (53%), specialty cheese shops (33%), farmer’s market (33%), Costco (31%) and grocery stores (about 20%) Although lower, opportunities still exist for market share.
The primary reasons for buying specialty/gourmet cheese at WFM is the selection (78%), quality (70%) and unique choices (70%).
The product attributes for which WFM is considered unique are secondarily important: natural (50%), options such as no preservatives or rennet… (49%) and organic (48%).
Reasons for buying at other stores primarily focus on price. Trader Joe’s is shopped because of lower prices, but also because of quality, selection, flavor, unique choices and convenience. The main reason for buying at regular grocery stores and warehouse clubs is price followed by convenience.
8The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Executive Summary: 3 of 6
What WFM Shoppers buy… WFM Shoppers primarily buy firm (cheddar…), fresh (ricotta, mozzarella…) and semi-firm
(gouda/feta…) cheeses (about two-thirds buy each). Grating cheeses (59%), soft (58%) and blue varieties (50%) are slightly less popular.
Specialty/gourmet cheese is bought most frequently as a snack, for a treat, or to simply try something different. Each of these occasions implies WFM messaging opportunities.
Most WFM Shoppers purchase an accompanying product to go with their cheese –fresh bread (81%), crackers (81%) or fruit (80%) is purchased either regularly or sometimes.
Although purchased less frequently, a notable proportion (about half) of WFM Shoppers at least sometimes buy olives/peppers, nuts, cured meats or wine (where available) to go with their specialty cheese selections.
Price is not a strong consideration… WFM’s prices for specialty/gourmet cheese are considered higher than other stores, but this
does not appear to have a significant negative effect. A solid majority (85%) say the prices are higher, but worth it, and most (71%) say they
would buy cheese they wanted regardless of the price. On average, most WFM Shoppers expect to pay an average of $9.00/lb for specialty/gourmet
cheese at WFM. While most shoppers appear to be somewhat price insensitive, pricing decisions should be
approached with caution. Conversely, 56% have at some point decided against purchasing cheese because of the price and 52% believe that WFM’s cheese is overpriced.
9The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Executive Summary: 4 of 6
The Cheese Monger: An under-utilized (secret) asset The majority are not aware that WFM has a “Cheese Monger” (89%). Among those who are aware, most have seen him/her and have found
him/her available to assist them. Only one-third are able to readily distinguish the Cheese Monger from other
team members. This does not appear to be a problem, however, as only a minority (28%) feel it is important to speak specifically with the Cheese Monger when they have a question.
The Cheese Monger is extremely well regarded: virtually all find him/her very knowledgeable (97%) and trustworthy (99%).
Most feel the Cheese Monger’s role should be one of “teacher/liaison” with customers, and not a clerk. The Cheese Monger’s responsibilities should include offering suggestions and recommendations, offering tastes of products, and mingling with the customers. Shoppers are less likely to think that finding products, cutting/weighing cheese, ordering merchandise and stocking shelves should be the Cheese Monger’s job.
10The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Executive Summary: 5 of 6
Customers Are Receptive to Marketing/Educational Efforts & Eager for New Merchandising
• The following are the marketing and merchandising ideas which garner the most interest among WFM Shoppers…
Marketing(very/somewhat interested)
Informational signs displayed with products (97%)
Samples (96%)
Background info on cheeses (where made, manufacturer info…) (84%)
Recipe/serving suggestions (82%)
Staff interaction with customers (81%)
Merchandising(very/somewhat interested)
Smaller “sample sizes” to buy (95%)
Highlighted seasonal offerings (89%)
Smaller cuts of cheese (88%)
More local cheeses (85%)
“Cheese Monger Recommendations” to highlight new varieties (85%)
11The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Executive Summary: 6 of 6
Olives… About half of WFM Shoppers have bought specialty olives in any location (55%), and almost
four in ten (38%) have purchased them at WFM. The other main places specialty olives are purchased are regular grocery stores (28%) and
Trader Joe’s (15%). Specialty olives are an infrequent purchase – most (65%) buy them just a few times/year. The olive bar is clearly the preferred source for specialty olives (82%). The main reasons specialty olives are purchased at WFM: selection, flavor, quality. The primary
reason for not purchasing: dislike of olives (41%). Secondarily, WFM Shoppers indicate that they don’t buy specialty olives because they just buy “regular” varieties (18%).
There is a correlation between buying specialty/gourmet cheese and specialty olives. Frequent WFM specialty cheese purchasers buy more olives. Also, among those who buy specialty/ gourmet cheese at WFM, 62% purchase olives/peppers as an accompaniment.
Chocolate… Most WFM Shoppers (76%) claim to have bought organic chocolate in the past, although most
report buying very infrequently (52% buy just a few times/year). The main reasons for not buying organic chocolate: never thought about it (46%), unaware
(27%), don’t think it’s necessary (25%). Overall, taste is considered a more important purchase driver over organic certification by more
than a 2:1 margin.
12The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Wild Oats Shoppers Slightly Different than WFM Shoppers in Regard to S/G Cheese
WO Shoppers…. Buy specialty/gourmet cheese less frequently than WFM
Shoppers Are less loyal to WO than WFM Shoppers are to WFM Are more price sensitive …they cite price as a reason for not
buying specialty/gourmet cheese at WO significantly more than WFM Shoppers and are more likely to cite cost as a deterrent for not buying specialty/gourmet cheese
Appear to perceive specialty/gourmet cheese as more “novel” …they are more likely to buy it because of wanting to try something new, upon impulse and for special occasions.
There are some key differences between WFM and WO Shoppers regarding specialty/gourmet cheese buying habits…
Despite these differences, WO Shoppers hold similar attitudes as WFM Shoppers regarding their descriptions of specialty/gourmet cheese, types of cheeses bought and accompanying products, the key purchase drivers, and interest in promotional and marketing efforts.
13The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
20%13%
13%
9%9%
35%
EMBRACERS
Typical” WFM Shopper. Holds core values on health, importance of
natural/organic, LOHAS issues and finds
specialty/gourmet products and food
experiences important.
WFM Shopper Segmentation ….
CONSCIONABLES
Embodies the core values and behaviors of the original WFM
Shopper. Strong focus on organics and LOHAS issues. WFM’s
social/environmental consciousness are a driving force.
EXPEDIENTS
Convenience is key. Not drawn to WFM because of its organic orientation, values, or
specific product offerings, but simply because of its proximity.
EPICURIANS
Driven to WFM primarily because of specialty/gourmet
offerings. Not particularly organic or LOHAS-minded.
EXPERIENTIALS
All about the experience. Strives for unique and fun
food experiences. Primarily buy produce and specialty/gourmet items; not particularly organic
oriented.
CORGANICS
Strong organic orientation; shop WFM because they
execute the organic mindset. Believers in the importance
of healthy foods, and concerned about what is in food they eat and how it’s
made.
Segments based on WFM Segmentation Study –12/06
14The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
…Few Behavioral Differences; Many Attitudinal Distinctions
EPICURIANS
EMBRACERS
EXPERIENTIALS
Buy more specialty/gourmet overall, but no difference in purchase rates at WFM than other segments
More likely to buy at other stores, including TJ, Costco, regular grocery
Experientials most likely to find cheese buying an “adventure”
CORGANICS
CONSCIONABLES
Are more likely to shop for cheese at WFM because of natural/organic choices and options such as no preservatives, rennet…
More interested in local cheeses and more healthy options
EXPEDIENTS
True to their segment definition, they are most likely to buy at WFM because it’s convenient
There are surprisingly few differences between the segments in buying behaviors regarding specialty/gourmet cheese. Most differences focus on attitudes in the core belief system that defines the segment. As with
other products, target marketing based on these differences is key.
Specialty/Gourmet Cheese
Purchase Behavior and Attitudes
16The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Basic Block and Specialty/Gourmet Most Popular Cheese Choices
(Q.4 - % shopper group indicating types of cheese they have purchased (at any store) in past 3 months or so)
39%
44%
54%53%
66%
42%
48%
66% 66%*
59%
Sliced DeliPre-Pkgd. DeliBasic, Pre-Pkgd.Shredded
Specialty/GourmetBasic, Pre-Pkgd.Block
WO Shoppers
WFM Shoppers
* Significant difference at 95% confidence level
Bought ANY:
WFM: 89%
WO: 84%
Bought ALL Types:
WFM: 16%
WO: 18%
WFM Shoppers buy
more S/G than WO
Shoppers…the only
significant difference in
cheese shopping
17The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
19%
23%
29%
29%
42%
43%
47%
62%
65%
67%High quality
Very flavorful
Interesting/different
Artisan
Fresh
Expensive
Can't buy at regular grocery
Can be cut to desired size
Only for special occasions
Hard to find
Specialty/Gourmet Means: Quality, Flavor, Interesting
(Q.12 - % WFM Shoppers indicating what ‘specialty/gourmet’ cheese means to them)
Only difference between WFM and WO Shoppers:
WFM more likely to cite “fresh” (43% vs.
35%)
Positively, only a minority define “specialty/
gourmet” as expensive or only for special
occasions
18The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Specialty/Gourmet Cheese: A Taste Driven Adventure
(Q.15 - % WFM Shoppers indicating they agree completely/somewhat with statements)
“Specialty/gourmet cheese is all about the
great taste”: 99%
(71% agree completely)
“Specialty/gourmet cheese is an experience, and trying
new varieties is an adventure”: 95%
(54% agree completely)
No differences among WO Shoppers
19The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Average # Times Bought/Month
Average Weight (lbs) Bought at Each Purchase
Average Total $ Spent at Each Purchase
Type of Cheese…WFM
ShoppersWO
ShoppersWFM
ShoppersWO
ShoppersWFM
ShoppersWO
Shoppers
Fresh Cut Deli Cheese 2.3 2.4 .62 .70 $5.08 $5.93
Specialty/Gourmet 1.9 2.3 .54 .59 $8.22 $7.70
Basic Pre-Pkgd. Block 1.9 2.0 .77 .80 $5.21 $5.04
Basic Pre-Pkgd. Shredded
1.9 2.3 .71 .83 $4.13 $4.09
Pre-Pkgd. Deli 1.8 2.4* .58 .66 $4.28 $4.51
WFM/WO Shoppers Buy Deli Cheese Most Often, Spend Most on S/G (at any store)
(Q5 - % segment average number times/month buying (Cheese) at any store/Q6 - % segment indicating average weight of (Cheese) bought at each purchase; Q7 - % segment indicating average total cost of (Cheese) for each purchase)
Deli bought most often Block bought in greatest quantity
Spend most on S/G
Opportunity for gourmet deli options?
* Significant difference at 95% confidence level
NOTE: These figures may not align directly with actual sales as consumers tend to over-estimate their purchases by weight and/or $.
20The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
12%
33%
27%
31%
22%
21%
16%
23%
95%*
33%
53%
WFM
WO
TJ's
Specialty Cheese Shop
Farmer's Market
Other NFS
Costco
Safeway
Kroger
Albertson's
Mass Merch.
WFM Shoppers Are Loyal Cheese Shoppers; WO Shoppers Less So
(Q.8- % segment indicating they have purchased specialty/gourmet cheese at the following stores in the past 3 months)
* Significant difference at 95% confidence level
52%
32%
28%
31%*
32%*
37%*
45%*
38%*
91%*
33%
51%
WFM Shoppers WO Shoppers
With the WO merger, opportunities exist….
21The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Frequency of buying specialty/gourmet cheese…
WFM Shoppers WO Shoppers
Bought S/G cheese in past 3 months 95% 91%
More than once/week 2% 8%
Once/week 9% 5%
2-3X/month 25% 25%
Once/month 29% 19%
3-4X/year 22% 18%
1-2X/year 10% 16%
Average # times/month at WFM/WO 1.6 1.9
Average # times/month any store 1.9 2.3
Most WFM and WO Shoppers Buy S/G Cheese Monthly
(Q8 - % segment indicating frequency of buying specialty/gourmet cheese at (STORE), among those who have bought specialty/gourmet cheese in past 3 months)
54% 44%
22The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
0.76
1.16
0.77
0.99
1.76
2.08
1.761.59
1.12
0.82
1.52*
1.74*1.63*
2.32*
1.91*
2.78*
0
1
2
3
WFM WO TJ Specialty shop Other NFS Farmer'sMarket
Costco Mass Merch
WFM Shoppers WO Shoppers
WO Shoppers Are Less Loyal; Shop Multiple Other Stores More Frequently for S/G Cheese
(Q8 – average number times/month segment purchases specialty/gourmet cheese at (STORE))
Avg. # times shopped/month
* Significant difference at 95% confidence level
23The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
70% 70%
40%34%
16%
65%
58%
49%
30%
60%*57%
78%*
31%
34%
53%
40%
63%
33%*
Wideselection
High quality Uniquechoices
Flavorful Freshness Experience Staffassistance
Convenient Good prices
WFM Shoppers WO Shoppers
Key Drivers of Purchasing S/G Cheese at WFM: Selection and Quality
WFM Shoppers are more likely drawn to WFM for selection and flavor
Price is a significantly greater driver for WO Shoppers
(Q.13 - % WFM/WO Shoppers indicating why they buy specialty/gourmet cheese at WFM/WO)
* Significant difference at 95% confidence level
Note: small base size for WO
24The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
23%
32%
38%
39%
48%
49%
50%
60%
69%
73%
73%High quality
Flavorful
Wide selection/variety
Know it's fresh
Natural choices
Unique options (no preservatives, rennet…)
Organic choices
Local choices
Different/special
Staff assistance
Recommend pairings
WFM’s Unique Options Are Secondary Purchase Drivers
(Q.16 - % WFM Shoppers/segments stating that the following are “very important” in decision to buy S/G cheese at WFM)
Primary drivers
No differences among WO Shoppers
Secondary drivers
Corganics
Corganics/ Conscionables
Corganics/ Conscionables
Corganics/ Conscionables
Experientials
Segment names in bars represents WFM Segment for whom driver is most important
25The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Primary reasons for buying S/G cheese at other stores… (no differences between WFM & WO Shoppers)
(Q.13 - % WFM/WO Shoppers indicating why they buy specialty/gourmet cheese at (Stores))
Price
Quality
Unique choices
Selection
Flavor
Convenience
Freshness
Unique choices
Wide selection
Quality
Assistance
Flavor
Key Reasons for Buying Cheese Elsewhere: Primarily Cost
TJ’s primary draw is price, but also offers other benefits. Its secondary benefits encroach
on WFM primary drivers
Specialty Cheese Shop
Price
Convenience
Costco/Mass
Price
Convenience
Regular Grocery
26The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
48%
32%
16%
15%
21%
30%
Haven't needed it
Regular cheesemeets my needs
Too expensive
Don't think about it
Cheese in dairy caseis more convenient
Don't like it
Most WFM Shoppers Haven’t Recently Bought S/G Cheese (at any store) Because of Lack of Need…
(Q.9 - % WFM Shoppers indicating why they haven’t bought specialty/gourmet cheese at any store in past 3 months)
Only a few are overwhelmed:
Don’t know what to buy: 9%
Selection is overwhelming: 5%
It’s too complicated: 5%
Don’t know how to serve: 5%
WO Shoppers more likely to cite price as a deterrent (30% vs. 51%*)
* Significant difference at 95% confidence level
Can WFM create the need through messaging?
27The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
40%
39%
18%
15%
26%
27%
Less expensiveelsewhere
Too expensive atWFM/WO
Haven'twanted/needed it
Easier to buyelsewhere
Regular cheesemeets my needs
Don't think about it
…But Cost is Primary Deterrent for Not Buying At WFM
(Q.10 - % WFM Shoppers indicating why they don’t buy specialty/gourmet cheese at WFM (among those not purchasing at all in past 3 months or those purchasing less frequently than once a month))
NET: 56%
Regular grocery stores, Trader Joe’s, & Costco win
on price
Suggest other usage occasions, pairings, etc.
28The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
WFM Shoppers Primarily Buying Firm, Fresh and Semi-Firm Varieties; Little Differences Exist
51%
48%
47%
44%
39%
34%
67%
64%
66%
59%
58%
50%
Any Store WFM
(Q. 14 - % WFM Shoppers indicating types S/G of cheese bought at any store/Q.17 - %WFM Shoppers indicating types of S/G cheese bought at WFM)
Firm Cheese(Cheddar, Swiss…)
Fresh Cheese(Mozzarella, Ricotta…)
Semi-Firm Cheese(Gouda, Feta…)
Grating Cheese(Romano, Parmesan…)
Soft Cheese(Brie, Camembert…)
Blue-Veined Cheese (Blue, Stilton, Saga…)
No differences among WO Shoppers
29The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
1.66 1.64
1.02
2.58
2.02
1.56 1.55
2.041.79*
2.38*2.63*2.61*
0
1
2
3
4
Snack/appetizer As a treat Want to trysomething
different
In a recipe As an impulsepurchase
Special occasion
WFM Shoppers WO Shoppers
WO Shoppers Buy S/G Cheese More Often for “Special” Reasons
(Q18 - mean response among WFM/WO Shoppers for average number times per month they buy S/G cheese for the following reasons)
WO Shoppers buying more frequently for “special” or “impulse” reasons… is specialty/gourmet cheese less “novel” to WFM Shoppers?
* Significant difference at 95% confidence level
Avg. # times bought /month
Note: small base size for WO
30The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Bread, Crackers, Fruit Most Frequently Bought To Accompany S/G Cheese
(Q19- % WFM Shoppers indicating they regularly/sometimes buy the following products at WFM when to go with S/G cheese)
9%
16%
12%
17%
18%
41%
30%
37%
32%
40%
44%
39%
51%
44%
10%
35%
31%
28%Pastes or jellies
Chocolate
Wine
Sliced/cured meats
Nuts
Olives, roastedpeppers…
Fruit
Crackers
Fresh bread
Regularly Sometimes
81%
81%
80%
62%
52%
52%
48%
41%
37%
No differences among WO Shoppers
These pairing ideas provide merchandising suggestions. While fresh bread and crackers are often already located close to or in the
cheese section, other products may need more explicit suggestions.
31The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
WFM’s S/G Cheese Prices Are Perceived Higher Vs. Other Stores…
1 2 3 4 5 6 7 8 9 10
(Q22 - % WFM Shoppers indicating how they would rate WFM’s S/G cheese prices compared to other stores on a 10 pt scale)
Avg: 6.9
WFM prices are LOWER
WFM prices are HIGHER
WFM prices are ABOUT THE SAME
Top 2 Box: 40%
Middle Range: 56%
No differences among WO Shoppers
32The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
52%56%
85%
71%
The S/G cheese atWFM is overly
priced
I've decided at timesagainst purchasing
S/G cheese at WFMbecause it cost too
much
I'll buy S/G cheeseat WFM if I want it,regardless of the
price
S/G cheese at WFMis expensive, butworth the price
…But Most WFM Shoppers State It’s Worth The Price
(Q.20 - % WFM Shoppers indicating they agree completely/somewhat with statements)
No differences among WO Shoppers
33The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Most Expect To Pay $9/lb for Specialty Cheese at WFM; Age Drives Price Expectations…
(Q.21 - % WFM Shoppers indicating the amount they would expect to pay, per pound, for a piece of S/G cheese at WFM)
$10-14.99/lb 28%
$15-20.00/lb 13%
$5-9.99/lb 46%
Under $5.00/lb 14%
On average, most WFM Shoppers expect to pay about $9.00/lb for specialty/gourmet cheese at WFM
Age makes a difference:
18-29 year olds expect to pay between $5-9.00/lb;
those 30+ expect to pay between $10-14.99/lb
No differences among WO Shoppers
34The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Customers Most Interested in Samples, Informational Signage
(Q35 - % WFM Shoppers indicating they are very/somewhat interested in these offerings to learn more about cheeses offered)
Strongest interest
27%
35%
35%
42%
40%
73%
62%
38%
46%
44%
23%
35%
37%
40%
34%
28%Cooking classes
Information on company website
Classes or tastings
Staff interaction with customers
Recipe/serving suggestions
Background info (where made, mfgr. Info…)
Samples to try
Information on signs displayed with product
Very Somewhat
97%
95%
84%
82%
81%
73%
71%
55%
More interest for women
More interest among 30-39
More interest among Under 50
No differences among WO Shoppers
35The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
72%
28%
Most Not Aware of the Cheese Monger, Though Find the Position Valuable
(Q.23-27 - % WFM Shoppers indicating if they are aware of Cheese Monger, whether they have seen CM, whether CM is distinguishable, available to assist, and importance of dealing directly with CM)
The majority have NOT even heard of the
Cheese Monger at WFM
Among those who have heard of Cheese Monger:
65% have seen him/her
34% find him/her distinguishable from others in department
98% say he/she is usually available to assist
71% say it’s very/somewhat important that they speak directly to CM vs. other team member (28% very important)
No differences among WO Shoppers
NOT Heard
Heard
Awareness may be impacted by the term
“Cheese Monger”
36The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Preferred Cheese Monger Responsibilities – More “Ambassador” Than Clerk
91%
86%
74%
60%
56%
68%61%
61%
77%
49%
53%
62%
68%
81%
81%
88%
CurrentlyResponsible
Should BeResponsible
Offer suggestions/recommendations when asked
Offer tastes from cheese case
Mingle with customers
Help customers find products
Cut/weigh cheese for customers
Hold classes/cheese tastings
Order merchandise
Offer suggestions/recommendations when not asked
(Q. 28/29 - % WFM Shoppers indicating what activities they think are currently/should be part of the Cheese Monger’s responsibilities)
Most concur Cheese
Monger is not/should not be responsible
for stocking shelves
Could do more…
No differences among WO Shoppers
37The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Most Approach Cheese Monger for Tastes
(Q.30/31 - % WFM Shoppers indicating if they have ever spoken to the Cheese Monger, and what was discussed)
The majority of WFM Shoppers aware of the Cheese Monger have spoken to him/her (84%)
27%
37%
44%
66%
76%Taste a particular variety of
cheese
Help in locating a product
Wanted piece of cheese cut
Advice about wine/foodpairings
General greeting
No differences among WO Shoppers
38The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Cheese Monger is Considered Very Knowledgeable and Trustworthy
(Q.33/34 - % WFM Shoppers indicating how knowledgeable and trustworthy they consider the Cheese Monger)
20% 14%
76% 85%
Knowlegeable Trustworthy
Very Knowledgeable
Somewhat Knowledgeable
Trust A Lot
Trust A Little
96% 99%
No differences among WO Shoppers
Staffing decisions for this position are critical, given the
knowledge and trust consumers place in the CM
39The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Customers Want Opportunity to Buy Smaller “Sampling” Sizes
20%
34%
42%
45%
48%
46%
67%
41%
43%
40%
43%
28%
34%
40%
37%
31%Pre-packaged offerings (cheese with fruit,
smoked meats, crackers…)
More healthy options
Themed offerings pairing cheese with crackers,fruits, spreads…
"Cheese Monger Recommendations" tohighlight new varities
More local cheeses
Smaller cuts of cheese
Highlighted seasonal offerings
Smaller "sampling sizes" to buy
Very Somewhat
(Q36 - % WFM Shoppers indicating they are very/somewhat interested in these types of cheese products at WFM/WO)
95%
89%
88%
85%
85%
75%
72%
51%
Strongest interest
Women more interested than
men in…smaller cuts, smaller sample sizes
30-39 year olds more interested than
older shoppers in…”Cheese Monger Recommendations,"
themed and seasonal offerings
WO Shoppers more interested than WFM Shoppers in… local
cheeses, themed offerings, highlighted
seasonal offerings
Specialty Olives
41The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
WFM Shoppers Buy More Specialty Olives Than WO Shoppers
(Q.37 - % WFM/WO Shoppers indicating where they have purchased specialty olives in past 6 months or so)
* Significant difference at 95% confidence level
WFM Shoppers
WO Shoppers
Buy specialty olives 55%* 46%
Natural Food Store (Net) 43%* 32%
Whole Foods Market 38%* 14%
Wild Oats 2% 22%*
Trader Joe’s 15% 12%
Traditional Grocery Store (Net) 28% 21%
Warehouse Store/Club (Net) 8% 11%
Other (specialty cheese shop/farmers market/mass merch)
8% 10%
Don’t buy specialty olives 45% 54%*
42The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Frequent Purchase of Specialty/Gourmet Cheese Correlates with Purchase of Specialty Olives
(Q.37 - % WFM Shopper groups indicating they have bought specialty olives in past 6 months)
55%
68%
73%
WFMShoppers
Who Buy S/GCheese
Monthly+
WFMShoppers
Who Buy S/GCheese
All WFMShoppers
43The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
41%
18%
13%
9%
3%
14%
16%
Don't buy/don't likeolives
Don't buy specialtyolives, just regular
Haven'twanted/needed them
Don't think about it
Too expensive atWFM
Easier to buyelsewhere
Like better elsewhere
WFM Shoppers Don’t Buy Specialty Olives Primarily Because They Don’t Like Olives
(Q.38 - % WFM Shoppers indicating why they haven’t bought specialty/gourmet olives from WFM in past 6 months)
WO Shoppers are less averse to olives, they just buy more regular varieties (26%)
There may be less of an opportunity to expand olive purchases as many shoppers simply do
not like olives. Encouraging the 18% who only buy regular olives to “upgrade” should be the
primary focus.
44The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Olive Buying is an Infrequent Occurrence
(Q.39 - % WFM Shoppers indicating how often they buy S/G olives at WFM)
1-4 times/year
65%
1-3 times/month
31%
Once a week or more
4%
Most WFM Shoppers who buy specialty/gourmet olives purchase only a few times each year
No differences among WO Shoppers
45The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Olive Bar Jar Pre-Packaged Can
WFM Shopper
82% 29% 18% 6%
WO Shopper+
72% 51%* 37%* 22%*
Most Prefer Specialty Olives From Olive Bar
(Q40 % segment indicating type of specialty olives generally purchased at WFM/WO)
WFM Shoppers primarily make Olive Bar purchases; WO Shoppers buy from other places as well
+ Caution – small base size (<50)
* Significant difference at 95% confidence level
46The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Most Buy Specialty Olives at WFM Because of Selection, Flavor, Quality
(Q.41 - % WFM Shoppers indicating the reasons they buy specialty olives at WFM)
22%
37%
38%
55%
64%
69%
70%Selection/variety
Flavorful
High quality
Fresh
Natural/organicchoices
Different/special
Traditional curingmethods
WFM and WO Shoppers hold similar opinions except
more WFM perceive freshness (55% vs. 33%)
Focusing on these qualities may facilitate the “upgrade” from
regular to specialty upgrades
Organic Chocolate
48The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Frequency of buying specialty/gourmet cheese…
WFM Shoppers
Have bought organic chocolate
78%
Once a week or more 5%
1-3 x/month 21%
1-4 x/year 34%
Only tried once or twice 18%
Never purchased organic chocolate
22%
Majority Claim to Have Purchased Organic Chocolate, Though Most Do So Very Infrequently
(Q.43 - % WFM Shoppers indicating familiarity with process of growing cacao/Q.44 – frequency of buying organic chocolate/Q.45 – reasons for not buying organic chocolate)
Majority are unfamiliar with
growing process of cocoa…
Very – 7%
Somewhat – 32%
Not too – 35%
Not at all – 26%
Familiarize and show benefits of
organic
52%
Reasons for NOT buying:
Never thought about it – 46%
Wasn’t aware of it – 27%
Don’t believe it’s necessary – 25%
No differences among WO Shoppers
49The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
It’s All About the Taste
(Q.46 - % WFM Shoppers indicating the following are very important when considering purchase of chocolate)
22%23%
34%
45%
82%
24%
31%
Taste % Cocoa Other organic
ingredients (milk, sugar,
vanilla…)
Organically grown cacao
Price Fair Trade Certification
Environmentally friendly
packaging
Taste is more than twice as important
as organic
No differences among WO Shoppers
Organic status of other ingredients is more important than cocoa…opportunity
to educate consumer?
Demographic and Shopper Profiles
51The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Produce, Meat/Poultry Most Important to Have USDA Organic Seal; Cheese and Chocolate Lower
(Q.42 - % WFM Shoppers indicating it is very/somewhat important that the following products are certified with the USDA organic seal)
17%21%
38%
54%55% 25%
30%28%
34%34%
24%29%
38%
24%
CottonChocolateCoffeeCheeseGrainsMeat/PoultryProduce
Somewhat important
Very Important
All are less important to those 65+
Cotton is more important to women
No differences among WO Shoppers
84%78%
72% 72%
52% 51%
42%
52The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Frequency of Shopping at WFM/WO
(Q.2 - % segment indicating frequency of shopping at WFM/WO (sample defined as 10+x/year)
Positive relationship between more frequent shopping and more frequent cheese buying at WFM:
Buy S/G Cheese > Monthly: Shop WFM 2.8x/month*
Buy S/G Cheese< Monthly: Shop WFM 2.1x/month
WFM Shoppers WO Shoppers
Weekly4%
Monthly14%
Bi-monthly61%
>Once/week10%
<Monthly12%
<Monthly17%
>Once/week6%
Bi-monthly59%
Monthly15%
Weekly4%
Avg times/mo: 2.5
Avg times/mo: 2.0
53The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Avg. score for importance of shopping WFM/WO… (out of 20)
WFM Shoppers
WO Shoppers
Natural/organic foods 7.3 8.2*
Specialty/gourmet foods 5.7 5.1
Convenient location 4.2 4.6
Environmental/social consciousness
4.1 4.0
Unique experience 3.6 3.9
Good value 3.0 4.3*
Natural/Organic Foods Clear Driver for Shopping at WFM and WO
(Q3 - segment indicating average number points (out of 20) given to each statement as an important reason for shopping WFM)
54The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
Demographic/Shopper Profile of WFM and WO S/G Cheese Shoppers
(Q.D1-D10)
Demographic Profile:Male: 46% Female: 54%Average Age: 44.8HH income: $94.1KMarried: 53%Single: 23%Children in HH: 28%College grad+: 48%Employed/Retired: 73%/11%White: 82%Black: 3%Hispanic: 9%Asian: 4%
Shopper Profile:Avg # times shop/mo: 2.8Avg. monthly grocery bill (all):$489.40Avg. monthly grocery bill (WFM):
$173.30*% WFM $/total grocery bill: 35%
Demographic Profile:Male: 44% Female: 56%Average Age: 41.0HH income: $86.4KMarried: 47%Single: 28%Children in HH: 43%*College grad+: 53%Employed/Retired: 74%/10%White: 77%Black: 2%Hispanic: 10%Asian: 5%
Shopper Profile:Avg # times shop/mo: 2.1Avg. monthly grocery bill (all):$478.00Avg. monthly grocery bill (WFM):
$152.40 % WFM $/total grocery bill: 32%
WFM S/G Cheese Shoppers WO S/G Cheese Shoppers
55The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007
The Natural Marketing InstituteThe Natural Marketing Institute272 Ruth Road
Harleysville, PA 19438
Steve French, Managing Partner
phone: 215-513-7300, ext 214fax: 215-513-1713
www.NMIsolutions.com