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Taap Cover and Title A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Rowles, Kristin L.; Henehan, Brian M.; White, Gerald B. Working Paper Thinking Afresh About Processing: An Exploration of New Market Opportunities for Apple Products Staff Paper, No. SP 2001-03 Provided in Cooperation with: Charles H. Dyson School of Applied Economics and Management, Cornell University Suggested Citation: Rowles, Kristin L.; Henehan, Brian M.; White, Gerald B. (2001) : Thinking Afresh About Processing: An Exploration of New Market Opportunities for Apple Products, Staff Paper, No. SP 2001-03, Cornell University, Charles H. Dyson School of Applied Economics and Management, Ithaca, NY This Version is available at: http://hdl.handle.net/10419/23477 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Staff Paper 2001-03 June 2001 Thinking Afresh About Processing: An Exploration of New Market Opportunities for Apple Products Kristin L. Rowles Brian M. Henehan Gerald B. White Department of Applied Economics and Management, College of Agriculture and Life Sciences, Cornell University, Ithaca, NY It is the Policy of Cornell University actively to support equality of educational and employment opportunity. No person shall be denied admission to any educational program or activity or be denied employment on the basis of any legally prohibited discrimination involving, but not limited to, such factors as race, color, creed, religion, national or ethnic origin, sex, age or handicap. The University is committed to the maintenance of affirmative action programs which will ensure het continuation of such equality of opportunity. Thinking Afresh About Processing: An Exploration of New Market Opportunities for Apple Products A Final Report on the Marketing Research Conducted for the Project: Development of an Environmentally Sound, More Profitable System for Production and Marketing of Value Added Processing Apple Products in the Northeastern United States Kristin L. Rowles* Brian M. Henehan Gerald B. White June 2001 Department of Applied Economic and Management College of Agriculture and Life Sciences Cornell University Ithaca, NY * Kristin Rowles is a Marketing Analyst, Brian Henehan is a Senior Extension Associate, and Gerald B. White is a Professor in the Department of Applied Economics and Management, College of Agriculture and Life Sciences, Cornell University. Table of Contents Executive Summary................................................................................. vii Acknowledgements .................................................................................. xiv Section I: Introduction ............................................................................ 1 Apple Industry Situation...................................................................... 1 Apple Processing Industry in the Northeastern U.S. ............................ 8 Northeastern Processor Perspective ..................................................... 10 Innovation ........................................................................................... 12 Role of this Research............................................................................ 13 Organization of this Report .................................................................. 17 Section II: New Product Development .................................................... 19 The Process of New Product Development............................................ 19 Why New Products Fail ........................................................................ 21 How to Appeal to Today’s Consumer.................................................... 23 “Ideation” Session Results.................................................................... 27 Section III: Opportunity Identification in Consumer Markets ............. 31 Survey Methodology............................................................................. 31 Survey Results..................................................................................... 34 Summary ........................................................................................... 65 Section IV: Digging Deeper into Consumer Behavior ............................ 67 Methods ........................................................................................... 67 Results ........................................................................................... 70 Summary ...........................................................................................101 Section V: Exploring Opportunities in the Foodservice Market...........104 Institutional Foodservice Market..........................................................106 Family Restaurant Market...................................................................116 Observations by Chefs from Fine Restaurants .....................................122 Summary ...........................................................................................124 Section VI: Apple Products in School Foodservice ................................125 Methods ...........................................................................................125 Results ...........................................................................................126 Summary ...........................................................................................142 Section VII: Northeast Apple Industry Situation...................................144 Industry Context..................................................................................144 Competitive Position of the Industry ....................................................144 External Factors...................................................................................147 Summary ...........................................................................................148 ii Section VIII: Conclusions and Areas for Further Research...................149 Limitations of this Research.................................................................149 Market Opportunities for Apple Products.............................................150 Areas for Further Research ..................................................................153 Conclusion...........................................................................................155 Bibliography ...........................................................................................157 Appendix I: Marketing Research Overview.............................................159 Appendix II: National Consumer Survey on Apple Products: Survey Questions ...........................................................................................162 Appendix III: Screening Guide for Recruitment of Consumer Focus Group Participants .........................................................................163 Appendix IV: Consumer Focus Group Discussion Guide .......................169 Appendix V: Institutional Foodservice Focus Group Discussion Guide171 Appendix VI: Casual and Family-Style Restaurants Telephone Interview Guide...................................................................................173 Appendix VII: New York State School Foodservice Survey on Apple Products ...........................................................................................175 List of Tables I-1: Fresh Apple Consumption in Selected Nations: 1998.......................... 3 I-2: Changes in U.S. Apple Prices Paid to Growers, Adjusted for Inflation: 1976-1999 ...................................................................... 8 I-3: Processing Apple Production in the U.S.: Five Year Averages: 1995-1999...................................................................................... 9 I-4: Market Research Roles in the Processing Apple Industry.................... 15 I-5: Entities Conducting or Sponsoring Market Research related to the Northeastern Processing Apple Industry .............................. 16 II-1 : Consumer Motivators in Today’s Market............................................ 24 II-2 : Apple Product Concepts from the New Product Development Workshop....................................................................................... 29 III-1: New Apple Product Concepts Presented in the National iii Consumer Survey........................................................................... 33 III-2: Geographic Regions for the National Consumer Survey .................... 33 III-3: Statistically Significant Differences
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