Transcript Slide 1

Market Research Working
Group
Phoenix Annual Meeting/January 29, 2009
•Planning Factors
•Project Snapshots
Research Funded by The Beef Checkoff
Economic Response
• A series of studies have helped investigate and
shape the checkoff response to the recession
Economic
Response
Survey
Foodservice
Volumetric
Objective: Understand extent of trading down and trading out
Methodology: 1439 consumers, online survey
Objective/Methodology: Ongoing tracking study among
foodservice operators and distributors
Foodservice
Factoids
Objective: Test series of statements about the consumer appeal
of beef in restaurants versus other proteins
Methodology: 1000 consumers, omnibus study
Economic
Response
Messaging
Objective: Understand how to most effectively to keep steaks on
the plate in a recession
Methodology: Focus groups and in-home interviews with couples
Research Team: John Lundeen and Rick McCarty
Study 1: Overall Profile of Consumer Food
Purchasing Behavior as of Sept., 2008
Higher Price for Food Causing
You to Make Changes in
Purchasing Habits?
Change in Beef Purchasing
Habits Among All Adults
61%
24%
47%
29%
13%
4%
Yes
No
Not sure
22%
No Change
Trading Down
Trading Out
Don't Know
7
Purchasing Less Expensive Foods
Among those trading out of the beef category, fewer beef meals is a preferred tactic to simply
using less expensive cuts of beef.
Trading Down
All Adults
Trading Out
66%
72%
65%
66%
34%
Less expensive cuts of beef
21%
Fewer meals with beef
21%
Less beef and
more chicken
77%
73%
40%
Store-brand products
26%
24%
Less expensive cuts
of chicken
34%
42%
28%
43%
20%
29%
20%
Less beef which I stretch
in my recipes
18%
Less chicken which I
stretch in my recipes
10%
18%
3%
3%
5%
0%
Fewer meals with
chicken
Other
Don't Know
13%
8%
2%
42%
IPSOS – August 2008
Q. How are you cutting the cost of meals, what types of foods are you purchasing that
are less expensive? Base: n= 2358
Foodservice Volumetric
•
Steaks represent a 42% share of dollars, but more than 100% of total loss
of beef value.
Lb. Change 2008 vs. 2007 = -487MM Lbs.
2008 Annual Total = 8,181MM Lbs.
Ground Beef
Steaks
Other Beef
Roasts
Steaks
1,293MM lbs.
16%
-9
Roasts**
1,045 MM
Lbs
13%
Ground beef
5,189MM lbs.
63%
Other beef*
654MM lbs.
6%
-82
-135
-261
Steaks
$10,950MM
42%
2008 Annual
Total =
$26,300MM
Dollar Change 2008 vs. 2007 = -$1,200MM
Steaks
Roasts
Other Beef
Roasts**
$5,100 MM
19%
Ground beef
$8,300MM
32%
$900
Other beef*
$1,950MM
6%
-$300
-$1,550
*Includes ribs
**Includes country-style ribs
and Denver steaks. Numbers
may not add due to rounding.
Ground Beef
-$250
Study 3: Foodservice Factoids:
Meal Most Worth Talking About
Q9. If you ate an exquisitely prepared beef, chicken and pork meal, which
would you be most likely to tell your friends about the next day?
Beef
73%
Chicken
Pork
20%
Men – 79%
Higher Income – 79%
7%
Base: All respondents
6
Ads
running in:
Restaurant
Hospitality,
Nation’s
Restaurant
News, and
others
Best Reward After Long Week of Work
Q6. When heading to a full service restaurant after a long week of work, would a strip
steak, a chicken breast or a pork chop be a better reward?
Strip Steak
69%
24%
Chicken Breast
Men – 74%
Women – 65%
Higher Income – 75%
7%
Pork Chop
Base: All respondents
8
Study 4: Economic Response
Messaging
• Consumers are tired of hearing about
economic woes.
• Terms like “spending less money” makes
chicken come to mind.
• “Help me be a smart shopper.”
– Ideas for stretching your dollar best opportunity.
• Planning shopping trips more carefully.
– And bulk purchasing, and using coupons,
and visiting multiple stores for the best buy.
Brand Enhancement Plus
• Brand enhancement is still a very relevant
platform – supporting beef’s value in the
shopping cart.
• Simple promise of beef’s “nine essential
nutrients” is a strong communication point.
• Lean is magical.
– Ability to consume lean beef is clearly a strong
rationale for purchase.
• Consumer communications about beef should
highlight lean beef – at every opportunity.
The Plus to Brand Enhancement
• How to be a smart shopper for beef
– Getting the quality I want
• Bulk packages offered at retail would be attractive, as long as
this wasn’t a way for the store to slip in lower quality product
– Preparing lesser cuts effectively
– Cooking once, dining twice
– Meals incorporating inexpensive, but complimentary
healthy sides (whole grains, for example)
– All with a tone of pragmatism
Value Creation
• Three studies focused clearly on adding value to
carcass outliers, ground beef and the round
BAM –
Round 2
Objective: Determine the best merchandising for the new “BAM”
cuts from the ribeye, strip and top sirloin
Methodology: 1000 consumers, omnibus study
Ground Beef
Opportunity
Assessment
Objective: Investigate value added ground beef concepts
Methodology: Focus groups
Round – 6
New Cuts Naming
Objective: Study is in the field currently … to find names that best
sell the benefits of six new round cuts
Research Team: John Lundeen
Super Premium – New
Ribeye Cuts
SS.
Chef’s Secret Steaks
TT.
Cut needs to be further merchandised
(example – pinwheel, or consumer reacts
to excessive fat
Original
Boneless Ribeye Steaks
Ribeye
JJ.
NEW
KK.
LL.
Reactions to New Ribeye Cuts
• Similar to the striploin cuts, consumers
responded favorably to the new ribeye cuts
“It’s like the best part of the ribeye. When I first saw
those, I was like ‘Oh, wow!’. It just looks juicy and like it
will cook very well.” (Female, Atlanta)
–
“I don’t like the netting [LL]. Maybe if you put some
bacon around it or something.” (Male, Atlanta)
JJ
Beef Ribeye Filet Boneless
–
LL
Beef Ribeye Filet Boneless
• The striploin roast was well received.
– “What I do like about the roast is it’s size. So often when
you go to the store to buy a roast, they’re so large. I like
the fact that it’s compact. It would be easy to season and
not as overwhelming.” (Female, Irvine)
KK
Beef Ribeye Petite Roast Boneless
Ground Beef Opportunity Initiative
• Focus was to find concepts that would add
value to the consumer
– Enhancing image
– Enhancing nutrition
– Enhancing convenience
• As a meal solution
• Eliminating the hassles of preparation
Concepts Overcome Ground Beef Obstacles
Making ground
beef healthier
more upscale,
or kid friendly
Providing a more
complete meal
solution
Eliminating the
hassles of preparing
ground beef
#2
#3
#1
Upcoming Value Creation Work
Top Round
Adductor
Heel
Superficial Digital
Flexor
Semimembranosus
Pectineus
Cap/Gracilis
Gastrocnemius
To help the sell-in of
new round cuts,
research has been
initiated:
1. Names for 6 cuts
2. Sensory reaction
from foodservice
chefs
3. Sensory reaction
from consumers
4. Trained taste panel –
to determine ability of
pectineus to serve as
a stand-in for the
petite tender
Tracking
• Annual studies tracked the impact of the largest
channels and communication outlays
Ad and
Brand
Tracker
Objective: Track impact of advertising – awareness and impact
Methodology: Online survey of 600 food and health involved
consumers
Foodservice
Volumetric
Objective/Methodology: Ongoing tracking study among
foodservice operators and distributors
NET (National
Eating Trends)
Syndicated data base of “in-home eatings” used to determine how
beef is being consumed in-home
Issues
Management
Trackers
Objective/Methodology: Ongoing tracking studies using IPSOS
omnibus surveys
Research Team: John Lundeen and Rick McCarty
In-home steak
consumption is down
% of Individuals Consuming in an Average Two Week Period
70
69
69
68
68
67
66
67
68
67
Other Beef*
18
18
18
17
17
18
19
20
20
20
'99
'00
'01
'02
'03
'04
'05
'06
'07
'08
Ground Beef
'99
'00
'01
'02
'03
'04
'05
'06
'07
'08
Roast
42
40
39
39
38
36
35
36
36
34
21
19
19
18
18
17
16
18
18
17
'99
'00
'01
'02
'03
'04
'05
'06
'07
'08
Steak
'99
'00
'01
'02
'03
'04
'05
'06
'07
'08
Source: NPD’s National Eating Trends (NET) Service, Two Years Rolling August
*Includes ribs, cubes, chipped, chuck, and not specified
Consumed In-Home
Safety Grades for Fresh Beef & Chicken
Year by year percentage of Americans rating A or B grade for safety
100%
91%
90%
81%
80%
81%
86%
84%
83%
80%
77%
85%
76%
84%
76%
74%
77%
70%
68%
65%
60%
66%
64%
64%
66%
60%
60%
Fresh beef steaks/roasts
Fresh ground beef
SOURCES: Peter Hart Research – 1998-2000; IPSOS 2001 - 2008
8
No
v0
08
ay
M
t0
7
Oc
6
No
v0
5
No
v0
4
No
v0
3
No
v0
2
No
v0
1
No
v0
0
No
v0
99
Au
g
Se
p9
8
50%
Animal Welfare = Beef Safety
Percent of consumers saying beef is the fresh food
of highest concern in the supermarket
Consumer Safety Tracker – 2007 - 2008
If cattle farmers and ranchers
provide good care for their
animals and treat them
humanely, do you support
raising cattle for food?
5%, D 2%, F
24%, C
26%, A
43%, B
4%, No
96%, Yes
In general, what kind of
grade would you give cattle
farmers and ranchers for
providing good care for
their animals and treating
them humanely?
Consumer Safety Tracker – Nov. 2008
Nutrition
• Nutrient rich foods effort moved past focus groups into
quant and influencer studies (DMI funded)
NRF Quant
Health
Influencer
Studies
Objective: Measure receptivity to NRF approach on a national
scale
Methodology: Online quant study of 1000 consumers
Objective: Quantify target influencer awareness and perceptions
of the nutrient rich foods concept
Methodology: Online study with 250 dietitians and 250
pediatricians
Research Team: John Lundeen, Lori Stanwood (DMI)
Under the nutrient rich food approach,
beef’s leanest cuts will score a 5 out of 5
Hot Dogs
Fried Chicken
Garbanzo Beans
Top Sirloin
Consumers reported strong interest in using the My5 tool in a range of
situations.
Occasions Likely to Use My5 Tool: Top-2 Box Score (5 pt. Scale
A
Individual food selection
B
At-home meal planning/prep
C
Preparing grocery shopping lists
86%
85%
DEFG
FG
FG
83%
D
FG
Snacking decisions
E
In store/at shelf food decisions
F
Away from home/take-out meal decisions
G
Kids’ school lunch planning/prep
82%
FG
82%
G
68%
Question: Listed below are some occasions and situations that you might use My5. Please tell us how likely you would be to use My5
in each situation or occasion listed below. (5 point scale; Very likely to Very unlikely)(Q.40)
Superscripts indicate significantly higher than other group at the 90% CL
When Giving Dietary Guidance it is Important to
“Get the Most Nutrients per Calorie”
Health professionals feel it is important (extremely + very combined) to get the most
nutrients per calorie when it comes to giving dietary guidance. This is stronger among
registered dietitians (92%) vs. pediatricians (81%), with importance for each group
roughly split between those stating it was extremely important vs. very important.
Extremely
+ Very
Mean
Rating
92%
3.38
81%
3.17
7. How important is the concept of getting the most nutrients per calorie when it comes to
giving dietary guidance?
29
Strategy Setting
• The consumer beef index set the stage for studying how
to message offensively, assess issues
Consumer
Beef Index
Tactics and
Triggers
Objective: Measure perceptions tied to
positive beef satisfaction
Methodology: Online quant survey
Limiters of Demand
Objective: Test messages
and “actions” with the most
potential to change
perceptions
Objective: Measure impact of “issues”
to reduce consumption
Methodology: Online quant survey
Research Team: John Lundeen and Rick McCarty
Perceptions Doing Well
• Consumer Beef Index
Indicates:
• Bucket 1
• Taste/ Nutrition
perceptions
B
Bucket 1 is Growing
B
However, likely due to the recession, there has been a recent tapering of average
beef meals per week
4.0
3.0
Bucket 1
3.4
3.5
3.2
– Positives strongly outweigh negatives
Bucket 1
2.9
Bucket 2
2.5
2.0
2.8
2.7
2.7
1.8
1.5
1.6
1.5
Bucket 2
Bucket 3
– Negatives somewhat outweigh positives
Bucket 3
1.0
Bucket 4
– Negatives strongly outweigh positives
0.9
0.5
– Positives somewhat outweigh negatives
0.7
0.6
Bucket 4
0.0
May '07
(N=51-225)
Feb '08
(N=98-477)
Jul '08
(N=66-449)
Question: Q.19: How many times did you eat this type of food in the past week?
Safety Rebound, T/N Intersection UP
Tactics and Triggers
• A total of 6,414 consumers completed an online
survey in 12-2008.
• The survey included measures pertaining to:
– The potential impact of 66 messaging and actionbased tactics likely to be successful in improving
perceptions, chosen through an internal review and
team discussion of historic research results and
programs currently being considered by The Beef
Checkoff
Tactic Impact On Beef Use (Page 1 of 3)
Beef vitamins for brain function and better performance (m)
Nutrition
More larger quantity and lower price per pound family packs (a)
35%
Lean beef may reduce heart disease risk (m)
34%
Nutrition
32%
69%
26%
61%
32%
66%
4 oz. lean hamburger/steak healthy as 4 oz. chicken breast (m)
33%
93% lean same fat as turkey, less cholesterol (m)
33%
Naturally nutrient-rich food (m)
33%
34%
Protein helps prevent muscle loss, a problem after age 40 (m)
33%
33%
66%
32%
34%
66%
Protein to build and maintain muscles to facilitate weight management (m)
Protein for maintaining weight, building muscle and fueling physical activity
(m)
Taste satisfaction money-back guarantee (a)
Nutrition
37%
31%
30%
31%
64%
29%
62%
67%
33%
26%
64%
56%
Protein in beef for stable blood sugar (m)
30%
32%
Very satisfying, eat less overall (m)
30%
Lean beef protein equal plant-based protein (m)
29%
Protein for long-lasting energy (m)
29%
Lean beef an important part in reducing cholesterol (m)
29%
Ground beef safely cooked still juicy and flavorful (m)
28%
30%
58%
Lean beef 1 gram fat > breast (m)
27%
31%
58%
Beef best-tasting without sauces and seasonings (m)
27%
29 lean cuts, less fat than thought (m)
26%
30%
56%
Cuts for protein in tighter economic times (m)
26%
30%
56%
30%
30%
62%
60%
59%
35%
64%
32%
26%
61%
53%
Definitely would Probably would
Question: Q.15: Please read each [statement] and then indicate how likely it would be to encourage you to order or prepare beef
for yourself or others for at least one more meal every couple of weeks….
Tactic Impact On Beef Use (Page 1 of 3)
Beef vitamins for brain function and better performance (m)
More larger quantity and lower price per pound family packs (a)
35%
Lean beef may reduce heart disease risk (m)
34%
32%
69%
26%
61%
32%
66%
4 oz. lean hamburger/steak healthy as 4 oz. chicken breast (m)
33%
93% lean same fat as turkey, less cholesterol (m)
33%
Naturally nutrient-rich food (m)
33%
34%
Protein helps prevent muscle loss, a problem after age 40 (m)
33%
33%
66%
32%
34%
66%
Protein to build and maintain muscles to facilitate weight management (m)
Protein for maintaining weight, building muscle and fueling physical activity
(m)
Taste satisfaction money-back guarantee (a)
Taste
37%
31%
30%
31%
64%
29%
62%
67%
33%
26%
64%
56%
Protein in beef for stable blood sugar (m)
30%
32%
Very satisfying, eat less overall (m)
30%
Lean beef protein equal plant-based protein (m)
29%
Protein for long-lasting energy (m)
29%
Lean beef an important part in reducing cholesterol (m)
29%
Ground beef safely cooked still juicy and flavorful (m)
28%
30%
58%
Lean beef 1 gram fat > breast (m)
27%
31%
58%
Beef best-tasting without sauces and seasonings (m)
27%
29 lean cuts, less fat than thought (m)
26%
30%
56%
Cuts for protein in tighter economic times (m)
26%
30%
56%
30%
30%
62%
60%
59%
35%
64%
32%
26%
61%
53%
Definitely would Probably would
Question: Q.15: Please read each [statement] and then indicate how likely it would be to encourage you to order or prepare beef
for yourself or others for at least one more meal every couple of weeks….
Tactic Impact On Beef Use (Page 1 of 3)
Beef vitamins for brain function and better performance (m)
More larger quantity and lower price per pound family packs (a)
35%
Lean beef may reduce heart disease risk (m)
34%
32%
69%
26%
61%
32%
66%
4 oz. lean hamburger/steak healthy as 4 oz. chicken breast (m)
33%
93% lean same fat as turkey, less cholesterol (m)
33%
Naturally nutrient-rich food (m)
33%
34%
Protein helps prevent muscle loss, a problem after age 40 (m)
33%
33%
66%
32%
34%
66%
Protein to build and maintain muscles to facilitate weight management (m)
Protein for maintaining weight, building muscle and fueling physical activity
(m)
Taste satisfaction money-back guarantee (a)
Taste and safety
37%
31%
30%
31%
64%
29%
62%
67%
33%
26%
64%
56%
Protein in beef for stable blood sugar (m)
30%
32%
Very satisfying, eat less overall (m)
30%
Lean beef protein equal plant-based protein (m)
29%
Protein for long-lasting energy (m)
29%
Lean beef an important part in reducing cholesterol (m)
29%
Ground beef safely cooked still juicy and flavorful (m)
28%
30%
58%
Lean beef 1 gram fat > breast (m)
27%
31%
58%
Beef best-tasting without sauces and seasonings (m)
27%
29 lean cuts, less fat than thought (m)
26%
30%
56%
Cuts for protein in tighter economic times (m)
26%
30%
56%
30%
30%
62%
60%
59%
35%
64%
32%
26%
61%
53%
Definitely would Probably would
Question: Q.15: Please read each [statement] and then indicate how likely it would be to encourage you to order or prepare beef
for yourself or others for at least one more meal every couple of weeks….
Tactic Impact On Beef Use (Page 1 of 3)
Beef vitamins for brain function and better performance (m)
More larger quantity and lower price per pound family packs (a)
35%
Lean beef may reduce heart disease risk (m)
34%
32%
69%
26%
61%
32%
66%
4 oz. lean hamburger/steak healthy as 4 oz. chicken breast (m)
33%
93% lean same fat as turkey, less cholesterol (m)
33%
Naturally nutrient-rich food (m)
33%
34%
Protein helps prevent muscle loss, a problem after age 40 (m)
33%
33%
66%
32%
34%
66%
Protein to build and maintain muscles to facilitate weight management (m)
Protein for maintaining weight, building muscle and fueling physical activity
(m)
Taste satisfaction money-back guarantee (a)
Price
37%
31%
30%
31%
64%
29%
62%
67%
33%
26%
64%
56%
Protein in beef for stable blood sugar (m)
30%
32%
Very satisfying, eat less overall (m)
30%
Lean beef protein equal plant-based protein (m)
29%
Protein for long-lasting energy (m)
29%
Lean beef an important part in reducing cholesterol (m)
29%
Ground beef safely cooked still juicy and flavorful (m)
28%
30%
58%
Lean beef 1 gram fat > breast (m)
27%
31%
58%
Beef best-tasting without sauces and seasonings (m)
27%
29 lean cuts, less fat than thought (m)
26%
30%
56%
Cuts for protein in tighter economic times (m)
26%
30%
56%
30%
30%
62%
60%
59%
35%
64%
32%
26%
61%
53%
Definitely would Probably would
Question: Q.15: Please read each [statement] and then indicate how likely it would be to encourage you to order or prepare beef
for yourself or others for at least one more meal every couple of weeks….
Limiters of Demand
• A total of 2,000 consumers completed an online
survey in 12-2008.
• The survey included 47 perceived “issues” with
beef, and queried the consumer about it’s
impact on their purchasing:
•
•
•
•
•
You do not believe this to be true
While it may be true, it does not affect what you use
You occasionally limit your use of a particular food of this type
There is a particular food you usually frequently avoid because of this
There is a particular food you have eliminated because of this
Overall Concern (1 of 4)
Extreme Limiters – Total
Where Over 80% Have Some Concern or Belief
Total
Frequently
Concern or Avoid or
Belief
Eliminate Beef
Some cattle are fed hormones …may stay in beef
Steak costs too much at restaurant
Steak costs too much per pound
Beef could contain E.coli … could get sick eating it
You could get sick eating beef … cows with BSE
Much healthier choices than beef for protein
Much healthier choices than beef/vitamins/minerals
You could get sick eating beef that is undercooked
Stores add things to beef to keep it looking fresh
86%
15%
37%
85%
84%
Not Believed
True
71%
85%
85%
Believe, But Little or
No Beef Limitation
33%
14%
20%
46%
8%
52%
8%
71%
64%
82%
16%
82%
14%
68%
82%
13%
69%
80%
11%
9%
66%
69%
Question: Q.17: “You will now be shown brief statements describing things you might believe
9%
8%
14%
14%
12%
16%
specifically regarding beef. For each one, please read it carefully and move the slider to a position
above the phrase that best matches your belief about beef and any action you may have taken.”
% of Consumers Indicating Total or Frequent Limiting of
Beef When Micro Issues are “Rolled Up” to Macro Issues
50%
Price
37%
Safety
36%
Convenience
35%
Nutrition
Reputation
19%
• The End
• Questions