The Hass Avocado Board, Mission Viejo, Calif., has developed a tool designed to help identify potential opportunities to boost sales.
The Avocado Category Market Development Tool uses data from 45 markets, profiling each one to give retailers and industry stakeholders insight to prioritize opportunities, according to a news release.
“We are very excited to publish this new category development tool for the industry,” Emiliano Escobedo, executive director board, said in the release. “It is the first tool of its kind, and it provides a multi-dimensional approach to gauging individual opportunities in each market.”
The board encourages retailers and marketers to use the tool, to focus on their market, evaluate the “opportunity model” outlined by the tool in their markets, and evaluate those opportunity models for possible expansion into new markets.
Through the tool, each market is reviewed by five “key multi-metric models,” according to the release:
- Avocado Category Development Index – growth opportunities relative to population;
- Avocado Fair Share Analysis – potential dollar opportunities if gaps are closed;
- Avocado Category Dollar Trend Opportunity – ranks markets by growth opportunities;
- Distribution vs. Velocity Quadrant Analysis/Total Category and Bagged Avocados – Identifies market development strategy suggested by each quadrant; and
- Avocado Distribution Opportunity/Total Category and Bagged Avocados – Ranks markets by potential dollar growth opportunities if gaps are closed.
The Hass Avocado Board uses the Los Angeles market as an example of how to use the tool. The L.A. market, according to the release, is one of the largest markets for avocados, and one of the most developed.
The Avocado Category Market Development Tool, however, suggests there are opportunities for growth in the dollar trend, distribution and quadrant analysis models for the overall category and bagged avocados.
“To further the example, the avocado category is also not sold everywhere when comparing to ‘all other produce’ sold in Los Angeles,” according to the release. “’All other produce‘ is sold in 93.4% of stores in Los Angeles, while avocados are sold in 91.9% of stores. This gap represents an opportunity of (an additional) $2.7 million in category sales.”