Size-based retail promotions of avocados can be run without harming sales of other sizes of the fruit, a study by the Hass Avocado Board finds.
The consumer study, “Understanding Retail Price to Drive Hass Avocado Sales,” follows another by the Irvine, Calif.-based board that examined purchase motivators such as display and quality. The new research on price-volume relationships is based on IRI FreshLook Marketing data from about 330 grocery account locations, according to a news release.
Large avocados are more sensitive to everyday price changes than smaller fruit, the board found. Unit sales of bigger fruit more than doubled at a 45% discount, perhaps because price changes on those sizes are more obvious to consumers.
But total dollar sales increase at a slower rate, hovering around a discount of 30%, according to the study. For small avocados, sales flatten or reverse at discounts more than 30%.
Moreover, base price changes only minimally link large and small avocado sales. That means promotions of one size don’t significantly comprise sales of another, the research found.
“While every retailer is unique, the hass avocado price-volume information in this study helps retailers build demand, improve category performance, and increase category market share,” Emiliano Escobedo, Hass Avocado Board executive director, said in the release.
Promotional discounts create bigger volume lifts than equivalent declines in base price, according to the study. Avocados are more responsive to decreases in everyday price than to increases, it found. While consumers increase purchases of the fruit when retailers reduce prices, they don’t reduce purchases to the same extent when price increases.