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Seeking Credibility With Consumers in a Confusing Marketplace - Dr. John Stika, President, Certified Angus Beef LLC, from the 2013 NIAA Symposium Bridging the Gap Between Animal Health and Human Health, November 12-14, 2013, Kansas City, MO, USA. More presentations at http://www.trufflemedia.com/agmedia/conference/2013-niaa-antibiotics-bridging-the-gap-animal-health-human-health
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Seeking Credibility With Consumers in a Confusing
Marketplace John F. Stika
President, Certified Angus Beef LLC
• 1978 – Established as the first brand of beef– USDA/CBGA Certified Program
• Subsidiary of the American Angus Association• Non-profit Licensing & Marketing Organization• 865 million lbs in annual global brand sales
– 7 consecutive years of record sales• More than 16,000 licensed partners in 44
countries– Product being sold into 76 countries
Certified Angus Beef LLC
Pounds Sold by Business Type
FY-2013*Tonnage not assigned to a specific
division
46% 32%
13%9%
RetailFoodserviceInternationalMisc*
Key Discussions
• What are we seeing among consumers?
• What signals are we receiving?• What are we doing and what else
needs to be done?
Consumer spending decisions are based on a
Price:Valuerelationship.
When Making Purchase Choices
Taste Is Still King
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?
7
Consumer Beef Index, May, 2007 to July 2013Extremely/Very Important
At Home May
‘07 Jul ‘08
Jul ‘09
Jul ‘10
Jul ‘11
Jul ‘12
Feb ‘13
Jul ‘13
Extremely/Very Important Great tasting 86% 88% 90% 86% 87% 87% 91% 86% Good value for the money 76% 77% 80% 78% 83% 81% 82% 83% Extremely safe to eat 81% 79% 80% 77% 79% 79% 86% 83% Good results consistently N/A 74% 77% 73% 73% 76% 78% 78% Balance of taste/nutrition 67% 72% 74% 70% 76% 72% 78% 75% Feel good about eating 68% 73% 75% 69% 75% 74% 72% 74% Know how to prepare well 67% 70% 71% 68% 73% 70% 73% 74% Always tender N/A 68% 71% 62% 67% 69% 66% 68% Smart choice 65% 63% 64% 64% 65% 69% 68% 68% Great source of protein 57% 62% 64% 60% 65% 65% 70% 67% Provides energy and fuel 67% 66% 69% 63% 71% 66% 71% 67% Quick and easy to prepare N/A 66% 69% 63% 67% 62% 69% 67% Great starting point for meals N/A 67% 67% 62% 68% 64% 67% 65% Food you crave 56% 61% 68% 65% 63% 64% 68% 64% Easy to pick the right cuts 60% 64% 63% 63% 59% 62% 64% 63% Can be eaten every day 56% 61% 62% 50% 57% 55% 60% 61% Not contribute to heart problems N/A N/A 61% 59% 63% 63% 61% 61% Excellent nutrients N/A 62% 59% 60% 60% 61% 65% 59% Many lean cuts available N/A 60% 59% 57% 62% 61% 62% 58% Fits a health-conscious diet 55% 59% 55% 54% 60% 58% 60% 58% Industry acts in consumers’ interest N/A N/A N/A N/A 58% 57% 58% 56% Base: Those Asked (900) (503) (504) (500) (500) (750) (505) (503)
Key: Significant change from July 2012 () or in same season trend
()
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? Consumer Beef Index, May,
2007 to July 2013
Increasing Role of Extrinsic Quality Cues
Food Safety
Sensory Attributes
Convenience
Grass Fed
Locally Grown
Organic
Humanely Raised
Free Range
Healthiness
Soci
ally
R
esp
onsi
ble
Natural
• Health/Safety• Sensory• Convenience
• Process
The Last Time……..
the consumer took a backseat the
industry experienced two
decades of decreasing beef market share.
Brand Offering
Questions & AssumptionsComments: Is all Certified Angus Beef hormone free? I can only see the NATURAL as hormone free. Thank you.
Comments: Is Certified Angus Beef grass fed? What about hormones, antibiotics, GMOs etc? The stringent rules to be Certified would eliminate them. Correct?
Comments: Maybe I missed it on your website. What do these cows eat? How are they finished? Does CAB automatically mean the cows are grass fed and finished? Thanks for your time
Rising interest in knowing more about
their food has put consumers on a fairly steep learning curve
AND created a dynamic marketing environment with many “experts”.
Credibility is established by communicating both technically and emotionally
relevant information.
Trust is not simply based on what we
say.It is ultimately
based in what the customer
understands & believes.
Proactive Training & Education
The only sustainable flow of dollars from which
to continue to build the beef
industry comes from the
consumer.