Australian Supermarket Seafood Retailing Australian supermarket sector is very concentrated • two retailers account for over 74% of all grocery sales (Nenycz-Theil 2011)

Consumers switching from fishmongers to supermarkets (Danenberg & Mueller 2011)

Seafood supermarkets • traditionally, fresh seafood sold unpackaged behind glass in delicatessen section • however, chilled pre-packaged seafood second fastest growing grocery category, although awareness and regular purchase is low (Kenny et al. 2010).

Key Drivers and Barriers to Seafood Consumption in Australia Drivers • • • •

Health Taste Convenience Diet variety

(Birch, Lawley & Hamblin 2012)

Barriers • Price • Concerns regarding • origin • freshness • Difficulty in evaluating seafood quality • Not liking the taste or texture of fish

Lack of Knowledge Australian consumers generally lack knowledge about seafood (Birch & Lawley 2012)

Retailers and manufacturers lack knowledge about consumer requirements in this category (Kenny et al. 2010)

Australian Seafood Market: Opportunities for Growth

The Retail Transformation Project (ASCRC, University of the Sunshine Coast & Colmar Brunton Pty Ltd) Explore opportunity for further growth of the chilled prepackaged seafood category in Australian supermarkets

Clear understanding of consumer behaviour and requirements in the chilled pre-packaged seafood category

Clear direction on the development of pre-packaged chilled seafood product ranges and effective marketing strategies.

Multi-Method Research Design Stage 1: Scoping workshop with syndicate members

Stage 2: National online consumer survey (n = 1815)

Stage 3: Accompanied consumer shops (n = 5)

Stage 4: Ten consumer focus groups across five Australian states (n = 60)

Respondent Profile: Online Survey

Acknowledgement: Colmar Brunton Pty Ltd

Accompanied Consumer Shops Aim: Understand current seafood shopping behaviours and path to purchase for the chilled pre-packaged seafood category

Acknowledgement: Colmar Brunton Pty Ltd

Focus Groups Main grocery buyer with future propensity to purchase chilled pre-packaged seafood from the supermarket

Acknowledgement: Colmar Brunton Pty Ltd

Findings

Three Key Issues Trust

Transparency

Freshness

Australian consumers want • Locally sourced products • Transparent packaging • Clear use by dates • Fresh products

Lack of Trust in the Category: Major Issue Is it fresh? Do I need to eat it straight away? Has it been frozen?

Lack of knowledge regarding logistics and time from catch to plate

Freshness is Critical Sensory purchase

Reassurance of freshness • clearly see the product • smell is important

Fresh means many things - fresh looking, fresh from the sea, never been frozen

Purchasing Preferences Format

Packaging

Filleted fish

57%

Battered/Crumb…

19%

Whole fish

Unpackaged

50%

Box

7%

18%

6%

Sealed tray

13%

Smoked fish

5%

Vacuum-packed

11%

Other

3%

Marinated

2%

Skilleted

1%

Wrapped/Prepa…

0%

Bag Other

20%

40%

60%

7% 1%

0%

20%

40%

60%

Issues Related to the Supermarket Delicatessen Section Is it fresh? Has it been frozen?

Can I have what is not on display? Is there any crosscontamination?

Positive Perceptions of Independent Displays: Seafood Express Barge

It’s clean and on it’s own.

But, it’s still conveniently near the meat section.

I don’t like it in with the meat, I like the separate barge. I don’t like the idea of blood mixed with seafood.

Convenient No waiting

Quick and easy meal Good to have on hand

Frozen Seafood Cabinet

Mixed Perceptions of European Market-Style Formats Unfamiliar approach Concerns • Flies • Hygiene • Contamination • Freshness

Australian Consumers Want… Variety and innovation • “something different”

Convenience • “grab it and bung it in the oven”

Knowledgeable supermarket staff

What disturbs me the most is the people selling in the deli section. They often don’t know about the products at all. So they can’t tell you anything.

Findings: Fresh Chilled Seafood Category

Where do you purchase fresh/chilled seafood? Supermarket deli (63%)

Fishmonger (48%)

Freezer section of supermarket (45%)

Chilled section of supermarket (44%)

Butcher (19%)

Fish and chip shop (14%)

Triggers for Fresh/Chilled Seafood (n=1205) High in Omega 3 Low in fat Fresh Like the flavour Quick/easy to prepare Meal variety Price Readily available On special/promotion Dietary requirements Like variety available Know what's in it Good recipes to use Special Occasion Already prepared for me Support for local fishermen

61% 58% 51% 51% 49%

32% 29% 28% 24% 22% 21% 20% 18% 14% 14% 11% 0

10

20

30

40

50

60

70

Benefits of Pre-Packaged Fresh Chilled Seafood Convenience – no waiting at the deli counter

Portion sizes

Knowledge of price per portion

Use by dates

Country of origin information

Nutritional information

You don't have to wait if there is a big queue at the deli counter.

Barriers to Fresh/Chilled Seafood (n=103) Too expensive

53%

Origin concerns

46%

Can't tell if it is good quality

35%

Concerms about freshness

33%

Good seafood not available

16%

Bones

16%

Don’t like/can't prepare

13%

Don't know how to prepare

13%

Poor in-store display

12%

Limited species available

11%

Don't trust hygiene

10%

Don't like flavour/texture

3% 0

10

20

30

40

50

60

Simple, natural products • plain fillet of fish • at most simple, familiar marinades – garlic, lemon and herbs, Asian style

Natural and authentic product • not too uniform looking or processed

Packaging which allows them to clearly see the product

Preferences in a Pre-packaged Range

Highly Sensory Involved Category Freshness is critical • keep it clean • correct temperature • look fresh and smell fresh

Use by dates • quick sale is not trusted

Keep seafood separate from meat or pet food

Do not like the seafood positioned along side meat, chicken or pet food

I am surprised to see this in amongst the meat. I wouldn’t normally put seafood in with the meat. It’s interesting because it’s right next to the dog food also. Which is a bit yuck!

Concept Test: The Fridge Compared fridge to vending machine or cigarette machine • Too big, too bright

Unrealistic for seafood category • Too perfect, too uniform, too structured and neat • Too upright • Open-door – how will it stay cold?

Eye catching - stop and browse

Gondola Position Not an appropriate location for chilled seafood

Not normally where you would find seafood

Unexpected location – would be hard to find

In-category Positioning Meal solution area • More realistic • More acceptable • Too upright

I don’t like the fish standing on the side. The juices are going to go into it.

Concept Test: The Range Natural Ready-toEat Ready-toCook Special Occasion

Purchase Intentions 7%

n = 1815

11%

12%

Definitely Probably Unsure

Probably not 36%

34%

Definitely not

What does natural mean? Naked, unprocessed, completely raw, nothing added.

More convenient for freezing Use-by-date useful Greatest suitability: Whitefish fillets

Natural Range

May appeal to less experienced cooks • some liked the idea of sauce on the side

Did not appeal to experienced cooks • more inclined toward the natural range • prefer to marinate seafood themselves

Lower levels of appeal

Ready-to-Cook Range

Pick up at the supermarket for lunch

Ready-to-Eat Range

Peel it open and eat it straight from the container

Greatest Suitability: Australian prawns and Australian smoked salmon

You can peel the cellophane off and you’re ready to go.

The term ‘Special Occasion’ limits scope

Younger consumers offended • ‘Who decides if it’s a special occasion?’ • ‘What if my partner and I just want to eat it ourselves?’

Black packaging infers a premium offer Greater Suitability: Easter Australian Prawns or Xmas Seafood Appetisers

Special Occasion Range

What appeals about the range? (n = 860) Convenience Quick/easy to prepare Can tell what's in it Looks fresh Good variety Looks healthy Readily available Already prepared for me Good to eat by myself Like flavours/varieties available Use with my recipes Good for my familiy/children Use for a special occasion Good for my partner Like the low price Good prices Looks local

67% 56% 54% 54% 52% 48% 45% 42% 32% 31% 21% 21% 20% 16% 15% 12% 10% 0

10

20

30

40

50

60

70

80

What are the barriers to the range? (n = 955) Too expensive

37%

Concerns about origin

35%

Concerns about freshness

34%

Don't know what is in it

24%

Mostly non-Australian species

18%

Does not appeal to whole family

14%

Limited species available

13%

Unsure how to prepare it

10%

Don't like the flavour

9%

Don't like the smell

7%

Too messy/smelly

6%

Don't like handling/preparing it

6%

Does not last long enough

6%

Usually has bones

5% 0%

5%

10% 15% 20% 25% 30% 35% 40%

Clear and uncluttered Labelling does not obscure the product • I can see what is in it • Fresh looking product

Clear use by date

BUT must have clear pricing information

What appeals about the packaging?

Clear window (7.7)

Australian made logo (7.5)

Fresh, never frozen (7.4)

Nutritional information (6.9)

Heart smart tick (6.9)

Sustainable seafood (6.7)

Serving suggestions/recipes (6.6)

Recyclable packaging (6.5)

Wild-caught (6.1)

Celebrity chef (4.6)

Most Valued Pack Attributes (10 point scale)

Serving suggestions and recipes on the back of the pack

Labelling Elements Important labelling elements • use by dates • country of origin • price per portion information

Less important elements • serving suggestions and recipes housed on the back of the package

Less concerned about the sustainability of seafood

In Conclusion… Australians are very convenience oriented and quite price sensitive.

Not very interested in preprepared seafood. Prefer unpackaged seafood.

Natural Australian seafood (fillet of fresh fish or prawns) with at most a light familiar marinade or sauce on the side.

Main appeals of prepackaged fresh chilled seafood products are convenience, ease of preparation, price per portion and use by dates.

Main barriers of prepackaged fresh chilled seafood include price, concerns about origin and freshness.

At this point in time, Australian consumers are not very knowledgeable nor too concerned about sustainability.

Australian Supermarket Seafood Retailing

Coles Consumer education Sustainability • World Wildlife Fund • But can the average consumer afford it? • Flathead fillets at $48 per kg!!!

Curtis Stone ‘Surfing the menu’ Whether Curtis Stone tells me to eat it or not I don’t really care.

References • Birch, D., Lawley, M. and Hamblin, D. 2012. Drivers and barriers to seafood consumption in Australia, Journal of Consumer Marketing, 29(2), Spring/Summer. • Birch, D. and Lawley, M. 2012, Buying seafood: Understanding barriers to purchase. Food Quality and Preference, 24(1), 12-21. • Danenberg, N. and Mueller, S. 2011. Omnibus consumer research findings Wave 2. Australian Seafood Cooperative Research Centre and the UniSA Ehrenberg-Bass Institute for Marketing Science. • Kenny, P., Hamblin, D., Douglass, B. and DeVincentis, M. 2010. Retail Transformation Project. Colmar Brunton Pty Ltd. • Nenycz-Theil. M. 2011. Private labels in Australia: A case where retailer concentration does not predicate private labels share. The Journal of Brand Management, 18(8), 624-633. Note: This work formed part of a project of the Australian Seafood Cooperative Research Centre, and received funds from the Australian Government’s CRCs Programme, the Fisheries R&D Corporation and other CRC Participants.

The Retail Transformation Project Syndicate: 15 members including associations, processors and manufacturers • Australian Seafood Cooperative Research Centre • University of the Sunshine Coast • Colmar Brunton Pty Ltd • Funding: AUD450,000