Canada

Transcript Canada

Canada Beef Inc.

Global Marketing Strategy Overview

Canadian Angus National Convention June 7, 2013 Guelph. ON John Baker, Executive Vice President, Global Marketing

Topics

• Canada Beef Inc overview • 3 Year strategic plan • 2013/14 marketing priorities • Canadian beef brand strategy • Export perspective

Canada Beef Inc.

• Vision:

“A Dynamic Canadian Beef Advantage Delivering Recognized Value"

• Mission:

“Innovative, Collaborative & Sustainable Canadian Beef Solutions”

Canada Beef Inc. is Funded Through National Check Off & Leverages Various Government Funding Initiatives 4

Global Representation

• Canada Calgary Mississauga • Mexico • Japan • Korea • Hong Kong • China • Taiwan 5

3 Year Strategic Plan - Priorities

• • • • • • • Development of the Canadian Beef Brand and leveraging the points of differentiation provided through the Canadian Beef Advantage Prioritization of global markets – highest values Collaborate with supply chain partners & targeted customers that align with the Canadian beef value proposition Leverage investment through long term-based relationships Enhance domestic consumer perceptions & protect share Align stakeholders to a common brand promise Measurable results & Fiscal transparency 6

Key Assumptions & Considerations

• Decreased beef production in 2013/14 • JBS long term stability & export recovery • Strong $CDN (compared to $USD) • Enhanced Market Access • Japan UTM, Plant approvals for China, Russia WTO, • Non tariff trade barriers (China, Taiwan, Russia) • Pending FTA’s (CETA, Korea) • Need for Flexibility, Scalability and Sustainability • Long term funding stability 7

Strategic Objectives

• To have Canadian Beef recognized for its premium quality, safety and value in priority markets • Utilize priority markets to drive incremental product values • To enhance Canadian Beef brand loyalty with consumers • To

preserve/maintain

consumer confidence in the Canadian beef industry • Align industry stakeholders to foster collaborative, sustainable Canadian beef solutions 8

2013/14 Marketing Strategy is based on 4 Marketing Priorities Brand Differentiation Market Segmentation & Development Connect Consult Communicate Collaborate Product/Industry Image Stakeholder Connectivity/ ROI

Brand Differentiation

• Create a differentiated and premium brand identity through establishment and communication of the CBA, the combination of our unique selling points which support our value proposition • Brand strategy will be comprehensive and targeted to include both technical and emotional attributes -

Technical

(Genetics, Meat Quality & Food Safety Assurances) -

Emotional

(Natural Resources/Environment, Commitment industry/producers, Positive reputation of Canada/Canadians) • Must be supportive of Industry brands (Packer, Producer, Retailer) • Ongoing development and delivery of the “Canadian Beef Story” to enhance consumer confidence in Canadian beef industry 10

Reputation of Canada and Canadians

• Reputation Institute's 2012 Country RepTrak(TM) – Data from 42,000 respondents categorized

Canada

as having the

best reputation of 50 countries around the world

. – The study measures the overall Trust, Esteem, Admiration and Good Feelings towards a country.

42,000 respondents rate Canada #1for 2 years running

Reputation of Canada and Canadians is an important attribute of the Canadian Beef brand • Study found that being perceived as a “safe” country and a country with “friendly people” are the “most important attributes that drive a country's reputation” • Study found “a very strong correlation between a country's reputation and people's willingness to visit there and to buy its exported products and services” 13

Product/Industry Image

• Create an affinity for Canadian Beef - Enhance the emotional connection between consumer and Canadian beef industry based on trust - Culinary connection to consumers on the unique benefits of Canadian beef Trust in Industry / Culinary Connection Social Media Brand Partners Food & Lifestyle Media Market Influencers Industry Ambassadors MEETING CONSUMER DEMANDS 16

Social Footprint

www.facebook.com/ ILoveCanadianBeef

https://twitter.com/CanadianBeef http://www.youtube.com/user/b eefinfo 17

www.beefinfo.org

http://www.linkedin.com/compa ny/2310201 http://www.flickr.com/groups/1 588939@N21/pool/

http://pinterest.com/canadianbeef

Market Segmentation & Development

• Defined portfolio of high value priority global markets • Align with industry to identify customers in regions/market segments that value unique attributes of CBA -develop long-term partner based relationships • Align with industry to identify product opportunities in each market segment to drive incremental value growth • Provide insightful and timely market intelligence to industry partners to support management and investment decisions 18

Stakeholder Connectivity/ROI

• Align and empower industry with consistent brand positioning and execution • Collaborate with industry organizations to support timely and effective management of emerging issues • Broadened and enhanced communication channels and programs to a multitude of stakeholders, industry partners and governments • Clear Performance Measurements and results transparency 19

Performance Measures

• Canadian versus US Cutout Value • Market Share of Domestic Market • Retail/Wholesale/International Demand Indexes • Consumer Confidence rating of Canadian Beef • Increased Commitment to the Canadian Beef Brand by Targeted Customers • Buyer Perceptions of Canadian Beef versus Global Competitors • Return on Stakeholder Investment for Marketing Efforts 20

Program Budget Allocations by Market

Global Canada USA Canada 26% Global 14% ROW 53% Opportunity 7% Opportunity Japan ME/Europe SE Asia Hong Kong 21 China Latin America Korea

Enhanced Operational Efficiencies

• Strategic shift away from dedicated individual markets to a “regional hub” approach to increase operational efficiencies (Latin America, SE Asia, Europe/Russia, MENA) • Extend reach and leverage investment through collaboration with Trade Commissioners in export markets 22

Exports represent 30% of fed carcass value

2012 = $462.99

Per/hd

Top 10 Beef Exporting Nations as a % of Production, 2012p

New Zealand Australia Uruguay India Canada Brazil Argentina United States EU-27 China Source: USDA 0% 14.7% 10.8% 5.6% 10.8% 1.1% 10% 20% 30% 43.5% 37.5% 40% 50% 64.8% 59.4% 60% 70% 80% 83.4% 90%

28 2012-2017

1,750 1,500 1,250 1,000 750 500 250 0 90 Source: Statistics Canada, CRS 92

Disposition of Canadian Beef

ROW Mexico US HK & Macau Japan Domestic Consumption 94 96 98 00 02 04 06 08 10 29 12

Domestic Brand Partners

• • • Building brand equity through licensed partners 120 signed licensees spanning all trade sectors with a focus on industry leaders 23 International licensees in 5 countries 30

Canada Is Well Positioned To Be A Global Leader

Natural Resources Breeds/ Genetics Committed Global Marketing Animal Health Systems Consumer Preference “Image” National Quality Grading Standards On Farm Production Systems Food Safety Systems National Cattle Identification System

Strong Global Competition

Summary

• Canadian beef needs to be positioned as a premium beef offering in global markets • A differentiated premium brand positioning leveraging our unique attributes is our highest marketing priority • A balance of high valued export markets and our domestic market are equally important • Market access hurdles remain but industry & government must continue to negotiate viable access to key international markets • The Canadian Beef brand is

your brand

, get behind it!