A new Avocado Category Market Development Tool just released by the Hass Avocado Board is designed to help retailers and industry stakeholders identify, quantify and prioritize potential market-level opportunities for 45 markets. Each market has a unique profile, which varies significantly by population, category development and other measures using a multi-metric model approach to reviewing market-by-market differences and their implications for category growth.
“We are very excited to publish this new category development tool for the industry,” said Emiliano Escobedo, executive director of the Hass Avocado Board. “It is the first tool of its kind, and it provides a multi-dimensional approach to gauging individual opportunities in each market.”
This tool provides an understanding of individual markets by reviewing five key multi-metric models:
- Avocado Category Development Index—Ranks growth opportunity relative to population;
- Avocado Fair Share Analysis—Quantifies potential dollar opportunities if gaps are closed;
- Avocado Category Dollar Trend Opportunity—Ranks the markets by growth opportunities;
- Distribution vs. Velocity Quadrant Analysis—Total Category and Bagged Avocados—Identifies the market development strategy suggested by each quadrant; and
- Avocado Distribution Opportunity—Total Category and Bagged Avocados—Ranks the markets by potential dollar growth opportunities if gaps are closed.
Retailers and industry stakeholders are encouraged to utilize this market development tool by applying it to their business in three steps: 1) Focus on the markets they supply; 2) Evaluate each opportunity model for opportunities in their markets; and 3) Evaluate potential opportunities for expansion into new markets. Even if a market is more developed than others, high development does not signify a lack of opportunity. As an example, Los Angeles is one of the largest markets in the avocado category and one of the most developed.
However, there are still opportunities for growth. When reviewing each of the dimensions, the Los Angeles market shows opportunities in the dollar trend, distribution and quadrant analysis models for the total 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. All Other Produce is sold in 93.4 percent of stores in Los Angeles, while avocados are sold in 91.9 percent of stores. This gap represents an opportunity of more than $2.7 million in category sales.
This market development tool uses a multi-dimensional approach as indicated in the diagram to help avocado merchandisers and industry stakeholders identify, quantify and prioritize potential market-level opportunities for their business.
The Mission Viejo, California-based Hass Avocado Board releases unique analytical tools, such as this Avocado Category Market Development Tool, along with a variety of industry information and studies to assist marketers and retailers with uncovering growth opportunities and planning for store promotions. The board offers these insights and detailed retail information as the only avocado organization that equips the entire industry for success, with clear and actionable data and metrics that can be used to drive their avocado business.