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Volume 7, Issue 3 :: November-December 2002 |
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Spotlight Systems to Support the Expansion of Georgia’s Fruit and Vegetable Industry: Promotional Effectiveness of the Grown in Georgia Campaign
Georgia produce growers and food processors are facing increasing competition from within the region, nationally, and internationally. Many states have implemented promotional programs aimed at increasing consumers’ awareness of the benefits of purchasing locally produced and processed foods. For instance, supporting state growers benefits the state economically but also ensures a supply of fresh locally grown produce. As a result of the success of promotional programs in other southeastern states and increased competition from non-Georgia produce, there needs to be a means of differentiating Georgia-grown fresh produce and processed foods from competing products. Promoting Georgia-grown produce and products through promotion and labeling provides a marketing tool to differentiate Georgia’s products from those grown and produced out of state. In addition, Georgians need to be informed of the advantages of purchasing Georgia-grown fresh produce, i.e., it is fresher than produce brought in from out of state. Kent Wolfe and John McKissick of the Center for Agribusiness and Economic Development at the University of Georgia spearheaded a FY 2002 special project aimed at measuring the effectiveness of the 2001 Grown in Georgia promotional campaign. They implemented two surveys to measure the effectiveness. The first survey was a consumer intercept survey that was administered to respondents as they were exiting the produce department of a national supermarket chain. This survey was used to gauge shoppers’ awareness and perception of the Grown in Georgia campaign. In addition, a telephone survey was administered statewide to determine if the food quality, safety, and loyalty issues that were important in the fresh produce industry were also present in the processed food industry. Results of the project indicate that the Georgia-grown marketing campaign has the potential to significantly impact Georgia’s growers by increasing retail sales of Georgia-grown fresh produce and processed food products. Retail outlets in the state should be made aware of shoppers’ preferences for Georgia-grown fresh produce and processed foods and the potential impact the program might have on sales. According to the survey results, a significant number of shoppers reported they would switch stores to be able to purchase Georgia-grown fresh produce and processed foods. This information provides leverage with Georgia’s growers and processors. Retail outlets that choose not to participate in the program take the chance of losing customers and the increased potential sales that can be generated from consumers purchasing additional quantities and types of Georgia-grown fresh produce. In addition, only a handful of shoppers were aware of the Georgia-grown marketing campaign prior to the day they were interviewed. However, 94% of the shoppers indicated they would purchase Georgia-grown fresh produce over competing produce if it was competitively priced and offered similar quality. A similar result was noted for processed foods. Nearly 9-in-10 (88%) of Georgians indicated they would purchase Georgia processed food products over competing products given they were similarly priced and of similar quality. Nearly all of the Georgians interviewed indicated that labels should be used to identify Georgia-grown fresh produce (99%) and foods processed in Georgia (90%). In addition, the intercept survey found that 61% of shoppers reported that the Georgia-grown displays influenced their fresh produce purchase decision. Given the potential impact of this marketing program, additional resources and effort should be directed to educate and inform consumers in order to increase the awareness of the campaign. Overall, according to the Grown in Georgia analysis, there is evidence that the promotional campaign was effective in increasing fresh produce sales and significant market potential in the processed food industries. During the promotional period, the Georgia stores experienced significantly higher produce sales over the previous year than did the non-Georgia stores. Examining store level data also supports the idea that the promotional campaign increased sales. The cost-benefit ratios are positive, suggesting that the retail sales returns to the Grown in Georgia promotional campaign far exceed the cost of the campaign. |
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Foodfact
Did You Know? Peaches have long been a Georgia trademark and are now the state’s official fruit. They were first grown in Georgia during the colonial period of the 1700s. After the Civil War, Georgia growers developed several hardy peach varieties. The new varieties boosted the commercial peach industry and made Georgia the “Peach State.” The first peaches grown in Georgia were the Elberta variety. In the late 1800s, the Elberta was highly successful in the northern markets because of its exceptional color, size, and quality. In addition to the good ol’ Elberta, Georgia now produces more than 40 commercial varieties of peaches, which are divided into two general categories: freestone and clingstone. The fruit of the freestone peach readily breaks away from the stone or pit, while the clingstone adheres to the pit. Fresh Georgia peaches are available only 16 weeks each year, from mid-May to August. Although Georgia is called the Peach State, it actually ranks third in United States peach production behind California and South Carolina. In 2001, the Georgia peach crop totaled 140 million pounds and brought in $35 million. Source: Georgia Agriculture Resources. |
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