American Floral Endowment Update - Fall 2002

Consumer Tracking Study - A Marketing Research Update

A Profile of ConsumersÕ Floral Buying Habits at Garden Centers

By Doreen Zavada, Ipsos-NPD, Inc.

Customer Purchase Behavior

Consistent with the product segment being purchase at Garden Centers (bedding plants), customers report that the large majority of their transactions at these outlets are intended for themselves. Gift intended purchases accounts for only one in every six Garden Centers transactions. Viewed against the opportunity offered by Self and Gift buying. Garden Centers accounts for 25% of all floral purchases for Self but only 10% of these intended as Gifts.

The primary reasons given by customers for making their floral purchases at a Garden Center are the quality of the products and selection. Compared to last crop year, product quality, convenience, and price prompted more of the purchases while selection slipped as a reason for choosing a Garden Center.

Note: Although a much smaller market, the same pattern was seen for those purchased made at Garden Centers and intended for Gifts.

Purchases made at Garden Centers are not as likely to be made on impulse as are floral purchases made at other types of outlets. A high three of every four transactions are planned ahead of time. Still, buying on impulse did contribute to the lift in buying at Garden Centers this past year - as it did for Supermarkets. Perhaps attention to display areas or emphasis on suggestive selling assisted this trend.

Who is attracted to Garden Centers?

More than half of all floral transactions made at Garden Centers are made by customers Who are 50 or older. This age skew is somewhat older than noted at other types of outlets. It is influenced in part by the dependence on bedding plant buying. The age of customers buying potted plants at Garden Centers, for example, tends to be younger than the bedding plant buyer.

% Transactions at Garden Centers
Year End August 2001
Age of Buyer Bedding Plants Flowering Plants Foliage Plants
<35 yrs 7 21 18
35-49 yrs 35 26 31
50-64 yrs 33 28 30
65 yrs + 25 25 21
Total 100% 100% 100%

However itÕs also true that Home Centers and Discount Chains reach a younger bedding plant buyer than Garden Centers. Differences could stem from their lower pricing and the age (younger) of the customer in those outlets buying other products.

% Outdoor Bedding Plant Transactions
Year End August 2001
Age of Buyer Garden Centers Home Centers Discount Chains
<35 yrs 7 17 14
35-49 yrs 35 33 36
50-64 yrs 33 32 30
65 yrs + 25 18 20
Total 100% 100% 100%

Garden Centers reach a more affluent customer than does the floral market overall. This is again reflective of the bedding plant buyer. Note: Although not shown here, buyers of flowering plants and artificial flowers at Garden Centers are less affluent than bedding plant buyers.

Year End August 2001

All Floral Product Customers Garden Center Customers
Income % Trans. Index/HH Pop. % Trans. Index/HH Pop.
<30 K 28% 68 23% 57
$30-49K 23 95 20 82
$50-74K 21 124 24 144
$75K + 28 158 33 184
100% 100%

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