Monday, May 16, 2005

 

Organic market psychology

Organic foods have become a significant element in the nations food supply. No longer are organic products a rarity to be found only in certain stores and restaurants but they're now commonly found in the major supermarkets but are often marketed and displayed separately.

In the major supermarket chain in this area (greater boston), the organic veggies are in the produce section but in their own little area where they are displayed in a group rather than by type. The organic food products are located in an aisle or two at one end of the store. These aisles have different color fixtures, and are labelled "Wild Harvest" in a style and manner completely different than the rest of the store.

While its obvious that organic products are often packaged and marketed differently than conventional products made by huge companies, the need to separate them is curious. Just because they look different and are unfamiliar to some consumers, does that mean they need to be consigned to a separate area like a concentration camp for food?

Maybe the delineation is to highlight their esteemed status and apply an image of luxury to them--the supermarket equivalent of a velvet rope. This would be a grave miscalculation on the part of store managers--no one shopping in a place where coupon flyers and sale displays are prominently featured is looking to satisfy their ego, they want to save a buck. The result is an invisible barrier that keeps the traditional shopper out of the organic aisle on the assumption that it's not for them.

In my largely uninformed opinion, I think the supermarket would be best off eliminating the labels and letting the products compete on the same shelf. This being a fairly liberal part of the world, there are plenty of store options for the shopper concerned with things like organic products. If the mainstream store really wanted to compete directly with alternatives like Whole Foods, then they should open up a separate Wild Harvest store. The reason they haven't is that they know it would fail as a separate entity but persist in thinking it will thrive as an entity within the store.

If they want to offer consumers the option of organic products without changing their main business plan, then they should assimilate them with the rest of the merchandise. This way, the invisible barrier that keeps many people out of the wild harvest section is eliminated and the greater number of options makes everyone happy. Shoppers looking for organic products can find them in the logical place within the stores organization. Shoppers who don't seek them out will be exposed to them next to the conventional brands and might purchase them for health reasons, to try something new or purely by accident.

Comments:
perhaps you underestimate the number of people who either a) don't have cars and typically shop at the groceria closest to them or b) have a car but really like to walk places and live like a city kid. i think there are a fair number of people who fancy themselves "healthy", "food snob", etc who shop regularly at the main stream store out of convenience. das all.
 
Point taken.

However, I still think that relegating their organic stuff in a separate section is the wrong approach from a marketing and consumer psychology point of view.
 
Matt, I'm a week late reading this and commenting on this, but I think they keep them separate because they treat the organics differently. I know I've switched to organics a lot more lately because my local grocery (not a whole foods or trader joes or anything) does NOT spray the organic greens with water every two minutes which makes them spoil faster in my fridge!!! This whole spraying the veggies w/ water all the time and coating them in wax has led me to join a veggie coop from which I expect to receive my first box next week! I'm an official colorado hippie now, I even have to work on the farm.
 
Another good point. thank god for this comment section eh?

So that explains the organic produce, what about the dry goods? I don't see why organic corn chips need to separated from their conventional brothers. Do tostitos beat up the hippie chips?
 
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