Consumer Preferences and Marketing Opportunities for Premium “Tree-Ripened Peaches” in New York State

Abstract

R.B. 2004-10Fruit growers in New York State are adding alternative fruit crops to their production acreage in an effort to diversify their apple orchards. Peach (Prunus persica L.) is a major crop used for that purpose because of the collaboration between growers and the Cornell Agricultural Experiment Station to develop new varieties that possess higher eating quality and more eye-appealing characteristics for the consumer market and because they are suitable for the growing environment in New York State. The goal of this study is to explore consumer interests in New York-grown premium tree-ripened peaches and develop strategic marketing recommendations on how the New York stone fruit industry can expand markets for these peaches. This research is divided into two parts: a qualitative study (focus group discussion) and a quantitative study (consumer phone survey). The purpose of the focus groups was to obtain in depth responses from consumers on their attitudes and purchase behaviors for fruit, peaches and New York-grown premium tree-ripened peaches. The consumer phone survey was designed to verify results from the focus group discussion among the general population and to determine consumers’ interests and willingness to pay a higher price for “quality-guaranteed premium treeripened peaches.” The focus groups and consumer phone surveys show that consumers, especially frequent fruit shoppers, are generally very interested in good quality peaches as well as “quality-guaranteed premium tree-ripened peaches”. Although it is usually recognized that good quality tree-ripened peaches are available at farm stands or farmers’ markets, they appear to be less available in the supermarkets where respondents in this study typically shop. This presents an opportunity for New York stone fruit growers to supply good and consistent quality fresh peaches through the supermarket channel. Peaches are prized for their juiciness, sweetness, and good flavor. However, consumers are frustrated by the difficulty they perceive in selecting peaches at the proper ripening stage to get the qualities they like. Quality and consistency of the product are key factors for consumer satisfaction, and a high level of satisfaction, in turn, increases consumer demand and repeat purchases for fresh peaches. If quality and consistency exist, consumers seem to be willing to pay higher prices and buy fewer peaches in order to get the product they like. Most consumers in this study recognized New York State as a region where peaches are grown and referred to these peaches as “local” or “homegrown.” Awareness of these shoppers about peaches grown in New York and their “local” nature clearly constitutes an advantage to build on when marketing New York-grown peaches. However, there are challenges when designing a marketing program to receive a premium price for high quality New York-grown tree-ripened peaches. Many consumers could not correctly identify tree-ripened peaches, and some expected a lower price for locally grown products. Moreover, some focus group participants viewed California peaches as larger and Pennsylvania peaches as more flavorful and predictable than New York peaches. iii Therefore, when promoting “quality-guaranteed New York-grown premium tree-ripened peaches” through the supermarkets channel, a good position statement, innovative packaging, and clear labeling at the point of purchase will be the major means of informing and influencing a potential buyer. It should emphasize high quality and be used as boldly and as creatively as possible to justify the higher price and stimulate sales for the “New York-grown qualityguaranteed premium tree-ripened peaches”. Moreover, given the narrow marketing window when fresh New York peaches are available and the excitement the arrival of the peach season appears to generate, both run-of-the-crop and premium varieties can benefit from intensive promotion of their arrival. Results from this study show that demographic factors generally do not affect consumer behavior in terms of purchasing peaches or tree-ripened peaches. Therefore, promotional programs targeting specific consumer groups are not necessary. Generating consumer satisfaction through good and consistent quality products is the key to successfully marketing “New York-grown quality-guaranteed premium tree-ripened peaches.