CONNECTING WITH CONSUMERS AT

THE SPEED OF TECHNOLOGY

Art and Kristin Yerecic

Americans on average own four digital devices 70% own smart phones Nearly 50% own tablets Copyright ©2015 The Nielsen Company. Confidential and Proprietary

The reach of technology

Left: AFP/Getty Images, Right: NBC News Instagram

Technology drives optimism

56% 18% 18% 14%

Copyright ©2015 The Nielsen Company. Confidential and Proprietary Source: CINA Survey Q1610 Do you anticipate each of the following impacting your life more positively or negatively in 2020? Summary of Much/Somewhat More Positively

Technology Global Economy Environment Politics

Source: Imgur

But, technology can also create misconceptions

Source: Food Babe Website

Online food activists often create misinformation

Source: Chipotle Website and Twitter

69 percent say they would be less likely to purchase a product if it was labeled as containing GMOs

Yet, only 9 percent indicate that they are very knowledgeable about what GMOs are

Gap in consumer knowledge

Our all day #1 activity:

CONSUME CONTENT

Over 10 hours a day

Copyright ©2015 The Nielsen Company. Confidential and Proprietary

Source: Nielsen Touchpoints Shopper Survey, 4/2014 & Nielsen Homescan shopper panel

0 1 2 3* 4* 5* 6*

Aver

age

Equi

ty S

core

Higher

Lower

Number of Touchpoints Used 0 1 2 3* 4* 5* 6*

Shar

e of

Wal

let I

ndex

Higher

Lower

Number of Touchpoints Used

Share of Wallet Equity Score Mass Retailer

Drug Retailer

Grocery Retailer

Online Retailer Mass Retailer

Grocery Retailer

Drug Retailer

Online Retailer

Retailers that do it effectively will win

28%

72% 44%

56%

Source: Nielsen Retail Measurement Data, includes manufactures represented in Nielsen/BCG article plus manufactures with +$3B in sales for the 52-week period ending 2/14/14; CAGR ’09-’14

GROWING Rate: 2.3%

GROWING Rate: 9% FLAT/

DECLINING

MID-SIZE MANUFACTURERS

LARGE MANUFACTURERS

FLAT/ DECLINING

Digital is a great equalizer

of fresh steaks are consumed by adults 45-64 51%

Source: The NPD Group/National Eating Trends® , Data for 2 years rolling ending May 2014

of fresh pork chops are consumed by adults 45-64 48%

The highest consumers of chicken breast, chicken wings/legs and fresh whole chicken by age are 18-34 year olds

Understand today’s meat eater

Digital engagement level Technology

Averse Digital

Reluctants Grab & Go Non-Planners

Tech Savvy

Research-ers

Digital Advocates

Low trust, low tech savvy Low value seeking, low shopping enjoyment

Research driven and tech savvy

Enjoy shopping

Age <35

Age 35-44 Age 35-44

$50K-$100K $30K-$40K

$100+K $100+K

Age

Income

HH Size

No Female HH

Urban Urban

HH Type

Urbanicity Urban

Source: Nielsen Digital Shopper Segments Research; Nielsen Touchpoints Shopper Survey, 4/2014

Understand your customers’ digital attitude

What is your brand aura?

bit.ly/TacoBellBrand

Web Sites Blogs Text Messages Emails Social Media Apps Newspaper Ads Direct Mail Ads In-store Ads

Marketing Touchpoints

Enable Purchase Fulfill

Prin

t D

igita

l

More Complex Environment for Retailers to Navigate

Reach Source: Nielsen Retail Consulting & Analytics

of respondents stated it is not healthy to eat

fresh meat that often

26%

Source: Physicicans Committee for Responsible Medicine Custom Consumer study: Proprietary custom study conducted on behalf of Midan Marketing, Meatingplace and Yerecic Label by The NPD Group, Inc.

Misinformation can drive consumer beliefs

The Protein Craze

10%

5%

0%

15%

20%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

30% 25%

18% 18% 18% 19% 21% 20% 21% 23%

23% 25% 24%

23%

% of Adults Who Look for Protein on the Nutrition Facts Label

Source: The NPD Group’s Bi-Weekly Dieting Monitor, Annual Averages; N= ~31,200 Adult Respondents

Not all proteins are created equal…

Source: National Cattleman’s Beef Association

Meat has a great nutrition story to tell

Source: Left- Maple Leaf Foods, Right- National Cattleman’s Beef Association

Meat has a great nutrition story to tell

Amount of time consumers use to

prepare meals is shrinking…

Source: Hamrick, Karen S., et al. "How Much Time Do Americans Spend on Food?." (2011).

49 49 49 48 47 48 48 45 45 45

43 43 43

45 45 43

44 45 44 43 43

45

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Main Dish Use Ingredient Use

Main Dish vs Ingredient Use of FRESH Home Prepared Meats (Annual Eatings Per Capita)

Source: The NPD Group/National Eating Trends® , Data for 2 years rolling ending May 2014

Growth of Meat as an Ingredient

Source: Sam’s Club and National Cattleman’s Beef Association Website

Communicating Convenience

Source: googlewebmastercentral.blogspot.com and National Pork Board website porkbeinspired.com

Platform must also be Convenient

Source: Meat Temps & Times mobile app, Weber Grill mobile app, Certified Angus Beef Roast Perfect mobile app

Value of Mobile Applications

Hellman’s Whats Cook App

• Content creators that already connect with your customers

• Create valuable content for all digital platforms

Source: Sunset Mastronardi Website

Utilize Industry & Brand Advocates

of respondents stated I don’t agree with the

way animals in the meat industry are treated

7.3%

Source: Custom Consumer study: Proprietary custom study conducted on behalf of Midan Marketing, Meatingplace and Yerecic Label by The NPD Group, Inc.

Address the fringe with a strong offense

Source: McDonald’s Canada Our Food. Your Questions Website

Interactive Transparency: Example from Canadian Market

Source: Whole Foods Twitter Account

Transparency through conversation

Source: Right- Chicken CheckIn by National Chicken Council, Left- Kansas State University

Educational Graphics & Videos

Educational Graphics & Videos

Source: Nielsen, E-Commerce, Digital Technology and Changing Shopper Preferences Around the World Report (April 2015)

Consumers are willing to use digital resources when shopping

0%

10%

20%

30%

40%

50%

60%

Login to Store WiFi Scan QR Codes Online or MobileCoupons

Online or MobileShoping Lists

Retailer or LoyaltyApp

Self-ServiceCheckouts

United States

Print Materials have staying power Top Resource Change List specific List generic 2015 vs. 2014 items meat

Paper circular at home 70% ↓ 71% 65% Paper circular at the store 58% ↑↑ 49% 62% Electronic circular on website 22% ↓ 27% 21% Email specials 17% = 19% 18% Website specials 15% ↓ 17% 16% Social media specials 8% = 8% 2% Store app 13% N/A 15% 11%

Source: Power of Meat 2015. Published by the Food Marketing Institute.

Back

Front

Good Way to Get Meal Ideas

93% 87%

Want/Took Recipe Card Age

20-34 61% 35+ 92%

Ethnicity Cauc 85% Hisp 94%

Age 20-34 80% 35+ 96%

Value of printed signage and recipes

at the meat case

Source: National Cattlemen’s Beef Association, contractor to the Beef Checkoff Program

Value of connecting digital strategies to the in-store experience

• Brand Consistency • Influence at Point of Purchase

• Omnichannel Message

Source: Wood’s Fisheries website and Black Canyon

QR Codes Short Links

Source: Winn Dixie Website

Hashtags

SMS Messaging Connections

Source: Layar and Blippar website

Augmented Reality Applications

Source: Whole Foods website

Omnichannel Transparency Focused

Source: Ahold Giant Food website, Savory mobile app and Giant Food Twitter

Omnichannel Convenience & Health Focused

Key Takeaways • Create a strong brand personality that connects with shoppers.

• Utilize digital platforms that fit your consumers’ needs.

• Take advantage of existing industry resources. • Develop a strong offensive and defensive strategy to address top

fresh meat opportunities and concerns.

• Connect digital resources to the in-store experience.

Questions?

Kristin Yerecic Yerecic Label yerecick@yereciclabel.com O: 724.334.3336 C: 724.552.7776

Art Yerecic Yerecic Label yerecica@yereciclabel.com O: 724.334.3319

Sherry Frey Nielsen sherry.frey@nielsen.com C: 312.933.5549

bit.ly/ProteinAndThePlate

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