What are the challenges and opportunities of using consumer decision trees for fresh produce?

1 Fresh produce CDTs

A CDT for fresh produce is a graphical representation of the steps and criteria that consumers use to select a product from a category. For example, a CDT for apples might show that consumers first choose between organic and conventional, then by color, then by variety, then by size, and finally by price. A CDT can be derived from various sources of data, such as surveys, interviews, observations, loyalty cards, or online behavior. However, creating a CDT for fresh produce can be challenging, as consumers may have different preferences and motivations depending on the occasion, the season, the availability, and the store format. Moreover, fresh produce is a highly perishable and variable category, which means that quality, freshness, and appearance can change rapidly and affect consumer choices.

2 Benefits of using CDTs

Despite the challenges, using CDTs for fresh produce can offer several benefits for retail category management. First, CDTs can help identify the most relevant segments and sub-segments of consumers within a category, based on their needs, preferences, and behavior. This can help tailor the assortment and the pricing to meet the demand and the profitability goals of each segment. Second, CDTs can help design effective merchandising and promotion strategies, by highlighting the best ways to display, group, and communicate the product attributes that matter most to consumers. For example, a CDT can show which products should be placed near each other, which ones should be cross-merchandised with other categories, and which ones should be featured in ads or coupons. Third, CDTs can help monitor and evaluate the performance and the potential of a category, by tracking how consumer preferences and choices change over time and across different markets. This can help adjust the strategies and the tactics to respond to changing consumer needs and competitive pressures.

3 Best practices for using CDTs

To maximize the value of using CDTs for fresh produce, there are some best practices that retail category managers should follow. First, they should use multiple sources of data and methods to create and validate the CDTs, as relying on a single source or method can lead to biased or incomplete results. For example, they can combine quantitative data from loyalty cards or online transactions with qualitative data from surveys or interviews to capture both the rational and the emotional aspects of consumer decisions. Second, they should update the CDTs regularly and frequently, as consumer preferences and choices can change quickly and unpredictably in the fresh produce category. For example, they can use real-time data and analytics to monitor the impact of external factors, such as weather, seasonality, availability, promotions, or media coverage, on consumer behavior. Third, they should involve and collaborate with other stakeholders, such as suppliers, merchandisers, marketers, and store managers, to ensure that the CDTs are aligned with the overall category objectives and strategies, and that they are implemented consistently and effectively across the different channels and touchpoints.