Impact of the Recession
Effect of Current Economic Trends Buying more beef at sale prices (home)
30%
Buying more beef meals from the "price specials" menu
20% 19%
Purchasing fewer steaks, more hamburgers when eating out
Buying less expensive cuts of beef (home)
14% 14% 13%
Having beef meals at lower priced restaurants Buying less steak, more ground beef (home) Using beef more often as an ingredient, less as the entrée (home)
Buying the same beef, but serving smaller portions (home)
9% 8%
July 2013
Key: Significant change from July 2012 () or in same season trend ()
Base: Beef Eaters (N = 969) 40d/e: In response to current economic trends, which of the following describe your purchases of beef for use at home over the last 3 months/your beef purchasing when eating out at restaurants or other locations over the last 3 months? (Select one of the first three and any of the others that apply)
Important Factors
Choosing Your Main Dish for Dinner
Factors 1 – 5 - Most Important, In Choosing Main Dish for an In-Home Dinner July 2013
Importance - Extremely/Very Important 91%
Great Tasting
86% 82%
Extremely Safe to Eat
78%
Good Value for the Money
Balance of Taste and Nutrition
78%
Good Results Consistently
Base: Split sample (N = 505) Q.13a: How important is each of the following characteristics when choosing whether to have beef, chicken, fish, pork or other main dish alternatives for dinner at home? Q.32a: How much do you agree or disagree with each of the following statements when eating each food type at home. -
Source: Consumer Beef Index, February 2013
Factors 6 - 8 - Most Important, In Choosing Main Dish for an In-Home Dinner
Importance - Extremely/Very Important 74%
74%
Feel Good About Eating
Know How to Prepare Well 68%
Is Always Tender
Base: Split sample (N = 505) Q.13a: How important is each of the following characteristics when choosing whether to have beef, chicken, fish, pork or other main dish alternatives for dinner at home? Q.32a: How much do you agree or disagree with each of the following statements when eating each food type at home.
Source: Consumer Beef Index, February 2013
Typical Weekly, 2-3 Times a Month, Monthly Beef and Chicken Choices
Frequency of Eating Specific Proteins Once a Week
Chicken Breast 4.03x per month
Ground Beef 3.83x per month
2 – 3 Times a Month
Chicken Tenders 2.54x per month
Chicken Thighs / Drumsticks 2.40x per month
Tenderloin Steak 1.41x per month
Sirloin Steak 1.73x per month
Top Round Steak 1.71x per month
Ribeye Steak 1.38x per month
Rotisserie Chicken 1.61x per month Source: Beef Value Assessment , 2013
Once a Month
Millennials and Why They Are Important
Customer of Now and Tomorrow
Millennials Born between 1980 – 2000
80 million strong Bigger than Boomer generation Will spend more than boomers by 2017 (even sooner in food category)
Just starting to have kids
Beef Occasions by Generation Millennials
Gen X
Boomers TOTALS
Eating Occasions
40%
29%
31%
100
From Food Service
42%
30%
28%
100
From Retail
39%
29%
32%
100
Ground beef
40%
30%
31%
101
Steak/roast/other whole muscle
40%
28%
32%
100
Millennials represent more beef eating occasions than any other generation. Source: Consumer Beef Index, July 2007-2013
Lack of Confidence, Lack of Understanding, Need for Information
75% would like information about steaks and how to cook and prepare them
54% 55% would like more information on preparing and serving beef to children SOURCE: Millennial Parents and Beef, Conversion, November 2012
say its hard to know what cuts to choose in the meat case
13
Panel • John Click, Meat Director, Lowe’s Markets • Dan Murphy, Executive Vice President, Fresh Programs and Manufacturing, Unified Grocers, Inc. • Tom Schulte, Vice President, Operations, B&R Stores, Inc. • Jim Ethridge, Executive Director of Channel Marketing, National Cattleman’s Beef Association
John Click is the Director of Meat Operations for one of the fastest growing, family-owned supermarket companies in the southwest, Lowe’s Market.
John has over 30 years experience in retail meat operations. His responsibilities include overseeing the meat operations of 147 stores. His work areas include traditional store operations, Hispanic format stores, Native American format stores as well as opening and overseeing several Subway operations.
John Click
Director of Meat, Bakery and Food Service
Lowe’s Market Lowe’s Market is a Littlefield, Texas-based company
Serving families since 1964 First store in Olton, TX 147 Lowe’s Market & 6 Ace Hardware neighborhood stores throughout Texas, New Mexico, Colorado, and Arizona.
Lowe’s currently operates under the banners of Lowe’s, Lowe’s Market, Lowe’s Mercado, Lowe’s Big 8, and Ace Hardware
Variety Turkey Flaps Normal Movement: 21,000lbs
With Advertising Flap: 57,000lbs
63.1% Increase
Tamale Flaps -Advertising All Items
Complete Ingredient List
Increases Consumer Awareness
Run the flap in cold weather months
Fajitas -Seasoned Beef for Fajitas w/veggies
First Six Months Sales - $142,958 Third Six Months Sales - $263,001
Beef Fajita (Boneless Chuck) Chicken Fajitas (Breast Meat) Pork Fajitas (Pork Sirloin)
Coupons
Generated
8%
Sales Increase Total Company
Some Fun To Get The Event Going
Themed Events • Our Lowest Price of the Year on…. Below Cost Price Break Up To 50% off all Poultry Cheap Cheap Cheap Chicken Buy One Get One Free Truckload Sale Big Beef Bonanza While Supplies Last Two Days Only
Merchandising Events
Beef Round Up is designed to help you generate excitement and attract shoppers with great savings that radiate throughout your store. To help supercharge the event, Unified’s Meat Department is stepping out to procure the best beef prices possible. In addition, special “Beef Round Up” graphics, including logo, POS materials and ad layouts are being developed.
Bargain Beef Bundles Increase sales with bulk beef collections Example-The 42 pound bundle… 6-8oz. Boneless rib eye steaks 4-12oz. T-Bones 6-1lb. Packages cubed steaks 20-1lb. Packages ground beef 3-3lb. Chuck roasts
Be Unique Take A Chance Dry aged has been a marketing tool for the food service industry. Some markets have incorporated this into their Service offerings. Professional meat cutters behind the counter are educating the consumer of the eating experience of the aged product. At this particular retailer the bright red bloomed steaks are the last to go.
Mega Meat Sales +48% Sales +53% Dept. Penetration +29% Customer Count
+57% Gross Profit Dollars (Ad mix at 17% Margin)
Seafood Sales +221% Sales +213% Dept. Penetration +110% Customer Count
+109% Gross Profit Dollars (Ad mix at 15% Margin)
‘Lenten’ Ads - Lead Ad with Seafood Items
Rib-O-Rama
Hog Wild Ad
Father’s Day - Promote Cook-Out Items for Dad
Merchandising the Meat Case
Full Service Meat Case The ongoing evolution of the Fresh Full Service Meat cases continues to grow the marinated / seasoned / stuffed offerings. All protein groups are integrated. Giving the individual retailer a point of differentiation, and giving the consumer the idea that they can only get this item exclusively at this retailer.
Hispanic Marketing The Hispanic cooking style and recipes are focused on thin sliced cuts. The retailers offer many great options on most proteins
Hispanic Marketing The Hispanic cooking style and recipes are focused on thin sliced cuts. The retailers offer many great options on most proteins
Add Value Preparation – Ready Flavored Meats Pre-Seasoned Pre-Cooked Speed the time it takes to bring the meal to the table. Use coupons to stimulate trial on new or unique items “Try it” You’ll like it. In Store demos Packaging in general a key component in consumers mind in determining quality
Hispanic Marketing The Hispanic cooking style and recipes are focused on thin sliced cuts. The retailers offer many great options on most proteins
Value Added = Value Taken Revisit the value added sections of your meat cases Items like marinated meats, shish kabobs, etc. The average consumer is looking to put something different on the table for dinner every night
Hispanic Marketing The Hispanic marketers understand the power of the fresh meat cases in their stores. Most successful retailers focused on this demographic provide a large full service cases and combine a large self serve offering as well.
Hispanic Marketing Hispanic markets are doing an outstanding job in further processing, giving the consumers many options for their center of the plate meal solutions. Using all proteins and flavor profiles to capture the ever changing consumer base, plus adding further value in the minds of the customer.
Hispanic Marketing The Hispanic consumer is used to, and enjoys buying in large family size quantities. Giving a value proposition in the customers mind. This consumer considers this a fresher option of purchasing.
These displays provide the preferences these customers prefer. This type of marketing will take up much of the fresh case availability offered by the retailer.
Merchandising Value in the Meat Case Proteins B&R
B&R Proteins Beef Platte River Ranch Natural Angus Omaha Natural Angus
Pork Farmland Premium Farms Farmland All Natural
Chicken Pilgrims Smart Chicken
Turkey Honeysuckle Norbest
B&R Marketing Nebraska and IowaMeat “Center of the Plate”
2-3 Key Beef, Pork, or Chicken items on front page of ad
B&R Marketing Text/Mobile Messaging Introducing New Items Couponing
Social Media/Facebook Surveys Events Couponing New Item Introductions
Fresh Solutions Stir Fry
Net Weight Steaks and Chops Sausage Links-Pork and Chicken Kabobs-Beef, Pork, Chicken, Sausage
Meatloaf- Chili Meat
Fresh Solutions Stuffed Pork Chops & Chicken Breasts Marinated Beef, Pork, or Chicken
Seasoned/Breaded Pork or Chicken Thick and Thin Pork and Beef Cuts Gourmet Patties- 5 varieties
Sales and Tonnage Recent Trends sales
pounds
-.5
-3.6
+4.0
+2.9
Ham (lower X-mas vol.)
-4.23
-4.90
Pork (fewer BNLS Loin ads)
-4.80
-2.69
Seafood (Salmon, Shrimp)
+13.89 +9.13
Total
+.80
Beef Poultry
(3# IQF)
-1.48
Studying Your Consumer Believe you need to study your shopper Led our Company to move from 3-4 versions to nine versions. Neighborhood Marketer
Customer Interaction Assigning Hours for
Meat Cutter to serve customers Demos (hispanic
cheeses)
Recipes- Shrimp Tacos! Average Weekly Movement
Sale week w/ no recipe
Sale week w/ Recipe
Shrimp
294
347
412
15.77%
Crema Mexicana
701
891
957
6.89%
Queso Fresco
1073
1568
2241
30.03%
Used to train new meat employees Hold training classes for consumers
Introducing New Beef Cuts • Strip Petite Roast Bnls – Merchandizing the Strip as a roast. Cut as you would a rib roast to offer different size portions. Prefect to promote during the grilling season. During cooking the top layer of fat helps infuse this roast with robust flavor during cooking • Ribeye Petite Roast Bnls. A great alternative to the standing rib roast. Customers can just oven roast and enjoy. Great eye appeal. Using the Cap for your Ribeye Cap steaks noted above. • Top Sirloin Petite Roast Bnls – Can crate healthy portion sizes. Robust flavor. Little preparation needed; just season, roast and serve
Merchandising undervalued cuts
Merchandising Value in the Meat Case Consumer Education
Q.R. Code
Signs in Display Case- They can scan and pull up anytime they want.
