“Consumer Fear Factor”

1. “Consumer Fear Factor” Team Vizcaino Lulu Carranza Abiola Awotesu Chuck Fleming MaryLou Ortuvia Shane Ruppel

2. Suntex Group, Ltd. • Founded by Blake La Grange • Third generation farmer • Developed “Safety wash System™” • Negative ion technology • Motivated to develop “Suntex Clean™” line of produce • Invented and developed packaging process to protect from contamination • “Suntex Clean™” line currently packages six varieties of produce • Includes potatoes, tomatoes, and apples

3. Objectives • To ascertain whether the consumer fear factor is real or fictitious • To establish consumer needs, expectations, and perceptions with regards to produce (specifically fruits and vegetables); to define what a quality product means based on this customer-based criteria • To determine whether Suntex products are viable for the Houston-area retail industry (i.e. grocery stores) • To determine whether grocery stores are interested in providing germ/chemical-free produce • To propose changes to the Suntex process and/or marketing mix to respond to consumer needs and expectations • To recommend procedures to attenuate retail industry fears and facilitate their acceptance of Suntex products

4. Results Over-View • Were unable to quantify a consumer fear factor • Found that there is a consumer concern, in order of importance, for appearance, taste and germ-free produce, regardless of brand name • Found that consumers are interested in germ-free, chemical-free produce and are potential buyers at a reasonable market price • Found that retail procurement seemed to believe that consumers have little concern for organic or germ/chemical-free produce

5. Retail Inquiries

6. Organics • Unsuccessful organic produce program • 100% shrink during last period • Same storage/warehouse cooler for organic and conventional • No effective controls to prevent contamination of organic produce in store • Concern for soil residues only

7. Procurement • Centralized national buying • Stores had little or no autonomy • Purchasing decisions • In-store marketing

8. Survey Results

21. Combined Results

26. House of Quality

28. Conclusion • Unable to ascertain the level of consumer fear • No discernable fear, at the store level, of germs and chemicals in produce • Desire for chemical and germ free produce was detected from the survey • House of Quality indicates that consumer priorities are strongest in taste and appearance

29. Suggestions • Focus marketing to enhance franchise opportunities and to partner with large produce corporations to use the “Suntex Safety Wash System™” • Enhance relationships with retailers with publicity fliers in Sunday paper announcing benefits of the “Suntex Safety Wash System™” • Continue and enlarge publicity campaign in order to publish information about the dangers of produce residues • Improve website with links to FDA studies, analogous products supporting the “Suntex Clean™” process, and educational articles about benefits of germ/ chemical free produce

30. Questions?