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Page 1: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

1

Page 2: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Market Research Consumer Insights

Market Research Team: John Lundeen Rick McCarty

Wendy Neuman

2

Why Don’t Consumers Eat Beef More Often?

Page 3: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Very Important Questions

Here are some questions that your Market Research team is concerned about

1. Which is more preferred for dinner – beef or chicken? 2. On what attributes do consumers think beef beats chicken… and vice versa? 3. Are consumers freaked out about beef prices right now? 4. What are the top concerns that cause consumers to limit beef consumption? 5. Do consumers have a favorable view of ranching? 6. Do consumers eat beef less often because of Meatless Mondays? 7. Are consumers comfortable with use of antibiotics and technology in cattle raising? 8. Did the pink slime media circus affect consumer perceptions of ground beef? 9. Do younger (Millennial) parents feed their children lots of nutritious beef? 10. Is defrosting beef a barrier to increased beef consumption?

-and, of course – 11. What’s the meaning of life? 3

Page 4: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Agenda

• Consumer Beef Index Update • How do Consumer feel about beef prices? • Limiters of Consumption • Consumer Image Index • Perceptions of Ground Beef • Millennial Parents and Beef • Defrosting beef • …….and a surprise for you all…… • Questions

4

Page 5: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Consumer Beef Index Update

Consumer Beef Index (CBI) July 2012

5

Page 6: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Beef Favorability Segmentation

The “Bucket” Question

6

Page 7: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

20% 20% 20% 16%

20% 18% 19% 16% 17% 15% 17% 18%

7%

10% 8% 10%

7%

9% 9% 8%

8% 8% 7%

8% 9%

4%

46% 45% 48%

45% 45% 43% 46% 47% 48% 47% 48% 47% 45%

23% 26% 22% 33% 26% 30% 27% 28% 27% 30% 27% 25% 45%

28% Bucket 1

2010

7

“Buckets”

Base: Total (N = 1,000+ per wave) Q.35: Considering all you know about beef, would you say the positives of beef outweigh the negatives or do the negatives

of beef outweigh the positives? Q.36: Considering all you know about chicken, would you say the positives of chicken outweigh the negatives or do the negatives of chicken outweigh the positives?

Bucket 1 Positives strongly outweigh negatives

Bucket 2 Positives somewhat outweigh negatives

Bucket 3 Negatives somewhat outweigh positives

Bucket 4 Negatives strongly outweigh positives

Beef Chicken

70% 73%*

Jan ’07 May ’07 Feb ’08 Jul ’08 Mar ’09

Jul ’09 Feb ’10 Jul ’10 Feb ‘11 Jul ’11 Mar ’12 Jul ’12

Key: Significant change from 2011 () or in same season trend ()

Beef Favorability Segmentation

* Rounded %

31% by 2013

Source: Consumer Beef Index – July 2012

Page 8: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Base: Total (N = 1,000+ per wave) Q.34: Overall, thinking about beef and chicken, which do you prefer to eat for dinner?

Preference for Dinner

Strongly/Somewhat Prefer

38% 37%

42% 39% 39%

36% 37% 36% 37% 38%

37% 39%

27% 28% 29% 30%

27%

31% 29% 30%

33%

30% 30%

28%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Jan '07 May '07 Feb '08 Jul '08 Mar '09 Jul '09 Feb '10 Jul '10 Feb '11 Jul '11 Mar '12 Jul '12

Chicken

Beef

Key: Significant change from 2011 () or in same season trend ()

Source: Consumer Beef Index – July 2012 8

Page 9: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Importance & Performance

What’s important to consumers and how does beef perform… compared to chicken

9

Page 10: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

87%

79%

69% 69%

86%

59% 61% 57%

87%

65%

83%

69%

Importance Beef Performance Chicken Performance

Base: Split sample (N = 750) 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.

Importance and Performance – At Home

Extremely/Very Important Agree Completely/Somewhat

Source: Consumer Beef Index – July 2012 10

#1 Great Tasting # 3 Extremely Safe to Eat

#9 Is always Tender

#8 Is a smart choice

Ranked by level of importance to consumer

Page 11: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

63% 58% 57% 55%

29%

49%

32%

56%

62%

81%

65%

76%

Importance Beef Performance Chicken Performance

Base: Split sample (N = 673) 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.

Importance and Performance – At Home

Extremely/Very Important Agree Completely/Somewhat

Source: Consumer Beef Index – July 2012 11

#14 Not contribute to

heart problems

#19 Fits health-conscious diet

#23 Can be eaten every day

#22 Low in saturated fat

Page 12: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

52% 51% 50%

45%

29%

36% 37%

55%

63%

38% 39%

70%

Importance Beef Performance Chicken Performance

Base: Split sample (N = 673) 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.

Importance and Performance – At Home

Extremely/Very Important Agree Completely/Somewhat

Source: Consumer Beef Index – July 2012 12

#25 Is low in cholesterol

#27 Animals raised

without hormones

#32 Important part of

children’s diet

#28 Animals raised

without antibiotics

Page 13: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Which is better – beef or chicken?

Consumers make some judgments

OR

13

Page 14: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

31%

29%

27%

26%

21%

21%

21%

20%

17%

15%

13%

13%

11%

11%

10%

10%

10%

7%

7%

Chicken is better Beef is better

14%

21%

23%

15%

35%

18%

19%

20%

27%

58%

21%

25%

29%

52%

36%

53%

38%

47%

39%

Base: Total Q.37: For each of the factors listed below, please rate whether you think that beef is better than chicken, that

chicken is better than beef or that the two are about the same.

Beef/Chicken Superiority - Total Traditional “All-American” food

Taste

Protein content

Great for grilling

Many lean cuts available

Makes memorable meals

Provides lasting satisfaction

Very pleasurable to eat

Ease of preparation

Fat content

Good source of fuel for body

Variety of preparation methods

Good any night of the week

Value for the money

Nutritional content

Calorie content

A worry-free food

Not feeling guilty about eating

Good for kids

14 Source: Consumer Beef Index – July 2012

Page 15: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

35%

31%

29%

33%

23%

24%

24%

22%

23%

21%

17%

18%

17%

17%

14%

15%

13%

10%

10%

Chicken is better Beef is better

17%

27%

29%

20%

39%

23%

28%

26%

36%

50%

28%

31%

32%

44%

44%

50%

44%

49%

41%

Traditional “All-American” food

Taste

Protein content

Great for grilling

Many lean cuts available

Makes memorable meals

Provides lasting satisfaction

Very pleasurable to eat

Ease of preparation

Fat content

Good source of fuel for body

Variety of preparation methods

Good any night of the week

Value for the money

Nutritional content

Calorie content

A worry-free food

Not feeling guilty about eating

Good for kids Base: Total in segment (N = 591) Q.37: For each of the factors listed below, please rate whether you think that beef is better than chicken, that

chicken is better than beef or that the two are about the same.

Beef/Chicken Superiority – *Millennials

*Born between 1980 - 2000

15 Source: Consumer Beef Index – July 2012

Page 16: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Among consumers who eat more beef

What are the drivers?

16

Page 17: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Base: Those eating more beef (N = 281) Q.38d: As you noted earlier, you have been eating more beef in the last six months. How important

or what impact did each of the following have on your decision to eat more beef?

Taste of beef

Quick and easy

The right choice for many occasions

A family favorite

Great prices

Grilling more often

Learned new ways to prepare beef

Better availability of cuts

Adding protein to your diet

Lean beef fits a healthy diet

Less price-conscious now

Tired of the other meats

Less worried about safety

Hearing better news about it being healthy

39%

39%

33%

31%

28%

28%

27%

27%

27%

25%

24%

24%

24%

23%

35%

33%

34%

28%

32%

31%

32%

28%

27%

27%

25%

22%

24%

22%

74%

71%

67%

59%

60%

59%

59%

55%

54%

52%

49%

46%

48%

45%

Extremely important Very important

High Impact

Moderate Impact

Low Impact

Among consumers (19%) eating more beef

Health & nutrition are primary reasons for

eating less

Taste, convenience, right choice drive eating more beef

Why people eat MORE beef?

Source: Consumer Beef Index – July 2012 17

Page 18: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Among consumers who eat less beef

What are the barriers?

18

Page 19: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Base: Those eating less beef (N = 255) 38f: As you noted earlier you have been eating less beef in the last six months, how important or what

impact did each of the following have on your decision to eat less beef?

36%

31%

30%

21%

20%

20%

19%

18%

18%

15%

10%

7%

7%

6%

5%

4%

25%

27%

28%

20%

24%

22%

16%

26%

18%

18%

23%

12%

9%

14%

11%

12%

61%

58%

58%

41%

44%

42%

35%

44%

36%

33%

33%

19%

16%

20%

16%

16%

Extremely important Very importantHealth reasons

Limiting cholesterol or fat

Other meats seem healthier

Prefer other meal options

Too expensive relative to other meat

Eating more plant-based protein

Concerned about “factory farming”

More price-conscious now

More worried about safety

Hard to digest

Discovered new non-beef recipes

Family member prefers to avoid beef

Grilling less

Steak dinner takes too long

Running out of ways to make beef

Cuts you like not available

Among consumers (17%) eating less beef

High Impact

Moderate Impact

Low Impact

Health & nutrition are primary reasons for

eating less

19

Why people eat LESS beef?

Source: Consumer Beef Index – July 2012

Page 20: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Very Important Questions

Here are some questions that your Market Research team is concerned about

1. Which is more preferred for dinner – beef or chicken? 2. On what attributes do consumers think beef beats chicken… and vice versa?

3. Are consumers freaked out about beef prices right now? 4. What are the top concerns that cause consumers to limit beef consumption? 5. Do consumers have a favorable view of ranching? 6. Do consumers eat beef less often because of Meatless Mondays? 7. Are consumers comfortable with use of antibiotics and technology in cattle raising? 8. Did the pink slime media circus affect consumer perceptions of ground beef? 9. Do younger (Millennial) parents feed their children lots of nutritious beef? 10. Is defrosting beef a barrier to increased beef consumption?

20

Page 21: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

How do consumers feel about beef prices?

The Goldilocks question: Too high Too Low Just right

21

Page 22: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Base: Those asked, split sample (N = 750) Q.48x3: Which of the following statements best describes the value for the money of steak bought at the grocery store?

Perceptions: Steak Value – Grocery Store

24%

37%

34%

2% 3%

17% 27% 30%

33%

42% 37%

43%

27% 29%

3% 2% 1% 4% 2% 2%

Steak Pricing At Grocery Store

Total Mill-ennial

Gen-X Baby-Boomers

Light Mod-erate

Bucket 1

Bucket 2

Bucket 3

Bucket 4

34%

20% 20%

27%

41% 39%

32% 35% 36%

1% 2% 3% 6% 2% 1%

18% 19%

32%

52%

41% 42% 25%

20%

37% 35% 36%

20%

1% 2% 3% 0%

2% 2% 3% 8%

Heavy

Inexpensive and worth it

Expensive but worth it

Too expensive and definitely not

worth it

Just about right

So inexpensive that you’d actually doubt its quality

22 Source: Consumer Beef Index – July 2012

Page 23: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Base: Those asked, split sample (N = 750) Q.48x4: Which of the following statements best describes the value for the money of hamburger or ground beef bought at the grocery store?

Perceptions: Ground Beef Value – Grocery Store

15%

27%

48%

6% 4%

10% 13% 23%

24%

36% 24%

50%

44% 48%

11%

3% 3% 6% 4% 2%

Ground Beef Pricing At Grocery Store

Total Mill-ennial

Gen-X Baby-Boomers

Light Mod-erate

Bucket 1

Bucket 2

Bucket 3

Bucket 4

25%

14% 9%

22%

31%

26%

41% 48%

54%

5%

5% 8%

8% 2% 3%

10% 11%

22%

41% 30% 28%

25%

15%

50% 52% 43%

31%

7% 7% 5%

2%

3% 2% 6% 11%

Heavy

23

Inexpensive and worth it

Expensive but worth it

Too expensive and definitely not

worth it

Just about right

So inexpensive that you’d actually doubt its quality

Source: Consumer Beef Index – July 2012

Page 24: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Very Important Questions

Here are some questions that your Market Research team is concerned about

1. Which is more preferred for dinner – beef or chicken? 2. On what attributes do consumers think beef beats chicken… and vice versa? 3. Are consumers freaked out about beef prices right now?

4. What are the top concerns that cause consumers to limit beef consumption?

5. Do consumers have a favorable view of ranching? 6. Do consumers eat beef less often because of Meatless Mondays? 7. Are consumers comfortable with use of antibiotics and technology in cattle raising? 8. Did the pink slime media circus affect consumer perceptions of ground beef? 9. Do younger (Millennial) parents feed their children lots of nutritious beef? 10. Is defrosting beef a barrier to increased beef consumption?

24

Page 25: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Hurdles to be overcome

Limiters of Consumption

25

Page 26: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Top Limiters of Beef Consumption (Top 10 Frequent Limiters for each consumer segment)

23

37

40

25

37

40

15

21

32

40

The cost of of hamburger or other ground beef meal isvery high at restaurants (#7)

Cost of per pound of ground beef is very high at thegrocery store (#3)

Cost per pound of steak is very high at the grocery store(#2)

The cost of a steak meal is very high at restaurants (#1overall limiter - top 2 box)

Total Population Moderate Beef Eaters Millennials

PRICE CONCERNS Percent Frequently Limiting Beef Consumption because of concern

Source: Limiters of Consumption - May 2012 26

Page 27: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Top Limiters of Beef Consumption (Top 10 Frequent Limiters for each consumer segment)

17

25

37

18

19

27

37

17

15

17

21

32

There are much healthier choices than beef forprotein (#13)

Ground beef is not as healthy as other groundmeats such as ground turkey (#10)

Ground beef can easily be replaced in recipeswith ground turkey or chicken (#9)

It's sound nutritional advice to balance beefconsumption by eating other proteins (#6)

It is not healthy to eat beef every day (#5)

It is healthier to eat more chicken or fish & lessbeef (#4 overall limiter - top 2 box)

Total Population Moderate Beef Eaters Millennials

NUTRITION CONCERNS Percent Frequently Limiting Beef Consumption because of concern

Source: Limiters of Consumption – May 2012 27

Page 28: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Top Limiters of Beef Consumption (Top 10 Frequent Limiters for each consumer segment)

21

25

21

27

17

21

Ground beef does not have good results whenmicrowaved (#14 overall)

Steak does not have good results whenmicrowaved (#8 overall)

Total Population Moderate Beef Eaters Millennials

PREPARATION CONCERNS Percent Frequently Limiting Beef Consumption because of concern

28 Source: Limiters of Consumption – May 2012

Page 29: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Top Limiters of Beef Consumption (Top 10 Frequent Limiters for each consumer segment)

18

21

18

21

15

17

Cattle are pumped full of hormones to makethem grow bigger faster - and then have to begiven antibiotics to keep them healthy (#19)

Is is risky to eat a burger that is a little rare (#20)

Some ground beef is blended with a lean, finely-textured product that is often referred to as"pink slime" (#15 overall limiter - top 2 box)

Total Population Moderate Beef Eaters Millennials

QUALITY & SAFETY CONCERNS Percent Frequently Limiting Beef Consumption because of concern

29 Source: Limiters of Consumption – May 2012

Page 30: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Consumer Image Index

Consumer Image Index (CII) October 2012

30

Page 31: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

46% 42%

31% 20%

Beef Product

Q.12: Considering all you know about beef,, would you say…? Q.21: Thinking specifically about how cattle are raised for

food in the U.S., do you believe that…?

Bucket 1 Positives strongly outweigh

negatives

How Cattle Are Raised

15% 24% 8% 14%

Total – Oct 2012

Bucket 2 Positives somewhat outweigh

negatives

Consumer Image Index – October 2012

- 11 points

Favorability – Product versus Production

Bucket 3 Negatives somewhat outweigh

positives

Bucket 4 Negatives strongly outweigh

positives

31

Page 32: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Very Important Questions

Here are some questions that your Market Research team is concerned about

1. Which is more preferred for dinner – beef or chicken? 2. On what attributes do consumers think beef beats chicken… and vice versa? 3. Are consumers freaked out about beef prices right now? 4. What are the top concerns that cause consumers to limit beef consumption?

5. Do consumers have a favorable view of ranching? 6. Do consumers eat beef less often because of Meatless Mondays? 7. Are consumers comfortable with use of antibiotics and technology in cattle raising? 8. Did the pink slime media circus affect consumer perceptions of ground beef? 9. Do younger (Millennial) parents feed their children lots of nutritious beef? 10. Is defrosting beef a barrier to increased beef consumption?

32

Page 33: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Consumer Views of Ranching

Page 34: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

74% 40%

Q.27a: What is your overall reaction to this picture? Q.27b: To what extent does this image reflect your view of

the U.S. beef industry?

Reflects The Beef Industry Total Liking

5% 29%

Posi

tive

(4/5

) N

egat

ive

(1/2

)

At a

ll D

oes (

4/5)

Do

es N

ot (1

/2)

Like what they see But don’t believe it

Consumer Image Index – October 2012 34

Total Consumers

Page 35: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

23% 23% 14%

57% 60% 44%

Q.27a: What is your overall reaction to this picture? Q.27b: To what extent does this image reflect your view of

the U.S. beef industry?

38% 43% 51%

10% 12% 17%

Reflects The Beef Industry

Total Liking

Don’t like what they see But do believe it

Consumer Image Index – October 2012 35

Total Consumers

Posi

tive

(4/5

) N

egat

ive

(1/2

)

At a

ll D

oes (

4/5)

Do

es N

ot (1

/2)

Page 36: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Are consumers eating beef less often because of Meatless Mondays?

Page 37: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

21%

17%

10% 21%

31%

Beef

Pork

Chicken

Q.14a: Do you ever participate in "Meatless Mondays," which is a campaign that encourages people not to eat meat on Mondays to improve their health? Q.14b: How often do you participate in "Meatless Mondays"? Q.14c: When you participate in “Meatless Mondays,” what type of meat are you most often having one less serving of that week?

16%

Ever Participate

5% 5% 14%

Frequency of “Meatless Monday” participation

Weekly At Least Monthly

Which Type of Meat Served Less (Among Meatless Monday participants)

Total (N = 189)

Almost weekly

Total consumers

It varies

Fish

37

Meatless Monday Participation

Consumer Image Index – October 2012

Page 38: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Very Important Questions

Here are some questions that your Market Research team is concerned about

1. Which is more preferred for dinner – beef or chicken? 2. On what attributes do consumers think beef beats chicken… and vice versa? 3. Are consumers freaked out about beef prices right now? 4. What are the top concerns that cause consumers to limit beef consumption? 5. Do consumers have a favorable view of ranching? 6. Do consumers eat beef less often because of Meatless Mondays?

7. Are consumers comfortable with use of antibiotics and technology in cattle raising?

8. Did the pink slime media circus affect consumer perceptions of ground beef? 9. Do younger (Millennial) parents feed their children lots of nutritious beef? 10. Is defrosting beef a barrier to increased beef consumption?

38

Page 39: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

When are consumers comfortable with antibiotic use?

Page 40: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

50%

43%

42%

29%

16%

13%

17%

Q.17: In which, if any, of these situations are you comfortable with the use of antibiotics in raising animals for food? Q.17a: For each of the other situations below, would you say that you are just uncomfortable with the use, actively oppose using antibiotics in that situation or don’t really have an opinion?

An animal becomes sick

Prescribed by a veterinarian

In accordance with [regulations of] the Food and Drug

Administration

Proactive protection [for animals] from disease

The antibiotic is NOT related to any class of human antibiotics

The antibiotic helps an animal better metabolize food

None of these, it is never appropriate to give antibiotics to

animals raised for food

Actively Opposed/ Never Appropriate

32%

23%

27%

25%

30%

38%

A quarter to a third of consumers are never comfortable with antibiotic use in cattle production

Comfortable with the use of antibiotics when…

Total consumers

Consumer Image Index – October 2012 40

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When are consumers comfortable with use of science & technology?

Page 42: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

61%

55%

48%

44%

42%

41%

39%

To improve the safety of the beef consumers eat

To improve cattle care and comfort

To improve the medical treatment for sick cattle

To improve the environmental efficiency of raising cattle (e.g., using energy, land

and water) To help keep beef prices

affordable

To provide the optimal diet of grain, forages and nutrient supplements

To improve cattle nutrition and decrease the fat content in beef

40%

36%

39%

34%

44%

39%

Q.28: For which, if any, of these aspects of raising cattle are you comfortable with the beef industry using science and new

technologies?

45%

Uncomfortable/ Never Appropriate

Total consumers

Comfortable with the use of science & technology….

42

More than a third of consumers are uncomfortable with science and technology or feel it never is appropriate

Consumer Image Index – October 2012

Page 43: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

29%

25%

12%

To help cattle farmers and ranchers select and use the best genetics for

improving their herds

To increase lean muscle in cattle

None of these, it is never appropriate to use science and new

technologies in raising cattle

Uncomfortable/ Never

Appropriate

52%

51%

Q.28: For which, if any, of these aspects of raising cattle are you comfortable with the beef industry using science and new technologies?

Total consumers

Comfortable with the use of science & technology….

43

More than half of consumers are uncomfortable using technology to improve herds or increase lean muscle in cattle

Consumer Image Index – October 2012

Page 44: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Did the ‘pink slime’ media circus affect ground beef perceptions?

44 SOURCE: IPSOS Public Affairs – April 2012

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Q: Please read the following brief statements about ground beef and rate your agreement with each one on a scale of strongly disagree to strongly agree.

33

25

18

13

11

37

39

40

55

61

0 10 20 30 40 50 60 70

I limit ground beef because it has a lot of saturated fat

I would buy ground beef more often but it is getting tobe expensive

Ground beef is an important part of the school lunchprogram because it's something kids love to eat and

it provides important nutrients

Ground beef is an affordable, versatile souce ofimportant nutrients

Ground beef makes a great family meal becauseeveryone loves the taste and it's very affordable

% Total Agree % Total Disagree

Affordability & Nutrition

SOURCE: IPSOS Public Affairs – April 2012

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Q: Please read the following brief statements about ground beef and rate your agreement with each one on a scale of strongly disagree to strongly agree.

41

32

13

22

27

31

40

48

0 10 20 30 40 50 60

I hesitate to buy ground beef at the supermarketbecause I've heard it could contain some sort of filler

I buy ground beef because it's more affordable thanother beef, but I worry it's not as good a product

The ground beef served to our kids at school is lowquality

I worry about the quality of ground beef at fast foodrestaurants -- I'm never sure what is in it

% Total Agree % Total Disagree

Nagging Quality Issues

SOURCE: IPSOS Public Affairs – April 2012

Page 47: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Very Important Questions

Here are some questions that your Market Research team is concerned about

1. Which is more preferred for dinner – beef or chicken? 2. On what attributes do consumers think beef beats chicken… and vice versa? 3. Are consumers freaked out about beef prices right now? 4. What are the top concerns that cause consumers to limit beef consumption? 5. Do consumers have a favorable view of ranching? 6. Do consumers eat beef less often because of Meatless Mondays? 7. Are consumers comfortable with use of antibiotics and technology in cattle raising? 8. Did the pink slime media circus affect consumer perceptions of ground beef?

9. Do younger (Millennial) parents feed their children lots of nutritious beef?

10. Is defrosting beef a barrier to increased beef consumption? 47

Page 48: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Millennial Parents and Beef

Objective:“to explore and learn what drives the decision of when, where and how (Millennials with children) consume beef and how this plays into the food they prepare and give to their children.”

SOURCE: Millennial Generation and Beef, December 2012

Page 49: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Cooking Beef is Disappointing

56% 55%

37% 40%

46%

29% 31%

40%

23%

Burgers Steaks Ingredient

How often do you find the beef you’ve cooked doesn’t turn out just right?

Millennials Gen X Boomers

SOURCE: Millennial Generation and Beef, December 2011

49

Over 50% are disappointed with Burger and Steak

results

Page 50: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Flavor and Tenderness are the core issues

• Millennials are finding it hard to get the flavor and the tenderness right.

• Over-cooking and the overall look are also a challenge, but underdone isn’t as much as a problem.

• They ARE buying leaner cuts of beef; going for the lower fat, and less expensive beef options means they are eating the less flavorful cuts to begin with.

61%

40% 39% 32%

18%

39%

62%

34% 36%

27%

54%

41% 38% 31%

17%

What tends to be the issue?

Burgers Steaks Ingredient

50 SOURCE: Millennial Generation and Beef, December 2011

Page 51: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

42%

43%

45%

52%

53%

58%

60%

65%

80%

38%

33%

38%

44%

61%

54%

66%

59%

80%

30%

27%

28%

39%

57%

50%

67%

49%

76%

Information about how beef is processed

The impact of beef farming on the environment

Information about how cattle are raised

Animal welfare or humane treatment of animals

Information about the different cuts

The nutritional content in beef e.g. vitamins, minerals etc.

Information about how to cook the different cuts

More "sophisticated" recipes about beef

Easy recipes about beef

Boomers Gen X Millennials

Types of Beef Information Sought

51 SOURCE: Millennial Generation and Beef, December 2011

Everyone is interested!

Driven by Millennials

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36%

40%

40%

47%

52%

52%

56%

57%

59%

61%

CHICKEN HAS BECOME A FAST FAMILY MEAL CHOICE

CHICKEN IS NOT EXPENSIVE

CHICKEN GOES A LONG WAY AND IS GOOD FOR LEFTOVERS

I KNOW HOW TO PREPARE AND SERVE CHICKEN

CHICKEN IS ALWAYS A CROWD PLEASER - EVEN FOR FINICKYEATERS

MY CHILD/CHILDREN LOVE CHICKEN NUGGETS OR CHICKENFINGERS/STRIPS

CHICKEN GOES WELL WITH A WIDE VARIETY OF SIDES AND OTHERFOODS

MY CHILD/CHILDREN PREFER THE TASTE OF CHICKEN

CHICKEN IS EASY TO PREPARE

CHICKEN CAN BE PREPARED IN A WIDE VARIETY OF WAYS

Q.16 You said you prefer chicken the MOST to prepare and serve to your child/children, from the list below please let us know why.

(n =373), Top 10 Shown

Total

Millennial Parents - Chicken vs. Beef

SOURCE: Millennial Parents and Beef, December 2012

Ease of Preparation

and Preference for Chicken

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10%

12%

12%

14%

14%

15%

26%

35%

38%

50%

I DON'T KNOW ENOUGH ABOUT THE DIFFERENT CUTS OF BEEF

I AM CONCERNED ABOUT HEALTH RISKS FROM BEEF

MY CHILD/CHILDREN DON'T LIKE THE TASTE OF BEEF

I AM CONCERNED WITH THE WAY BEEF IS RAISED AND/OR PROCESSED

MY CHILD/CHILDREN HAVE A HARD TIME EATING BEEF BECAUSE IT ISTOO TOUGH FOR THEM TO CHEW

I FIND IT HARD TO MAKE A VARIETY OF MEALS WITH BEEF THAT THEYWILL EAT

IT ISN'T HEALTHY TO GIVE CHILDREN TOO MUCH RED MEAT

I TRY TO MODERATE HOW MUCH RED MEAT I FEED THEM

BEEF, IN GENERAL, IS EXPENSIVE

MY CHILD/CHILDREN PREFER(S) CHICKEN OVER BEEF

Q. 12 Which of the following are significant reasons you do NOT prefer to serve beef the most to your child/children?

(n =415), Top 10 Shown

Total

Millennial Parents - Chicken vs. Beef

SOURCE: Millennial Parents and Beef, December 2012

Top reasons to moderate red meat:

1) Should moderate all things 2) Bad for your heart and

cholesterol and 3) White meat/fish is healthier

Page 54: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Lack of Confidence, Lack of Understanding, Need for Information

SOURCE: Millennial Parents and Beef, Conversion, November 2012

75% would like information about steaks and how to cook and

prepare them 50%

would buy more beef if they knew more about the different

cuts

67% would like

to see trained

butchers on staff to provide cooking advice

55% would like more information

on preparing and serving beef to children

54% say its hard to know

what cuts to choose in the meat case

54

Page 55: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Defrosting is a limiter of beef consumption

55

Who’d a thunk it?

Page 56: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Our Starting Assumption - Steaks

and Ground Beef are in the Fridge (No Defrost

Needed)

56

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Defrosting Discovery Process

Consumers tested two defrosting methods in their homes

Focus Groups told us that defrosting beef is a BARRIER!

Online surveys verified defrosting beef is a BARRIER and that consumers want a better solution!

Safety and New Product Development Teams tested several defrosting methods

RESULTS SHOW THERE ARE MORE CONVENIENT WAYS TO DEFROST BEEF THAN 24

HOURS IN THE FRIDGE!

Page 58: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Improving these convenience points will very likely increase beef use

Being able to cook from frozen Shortening defrost time Recipes needing hard-to-find ingredients Reheating hurts taste

Convenience – Issues with Defrosting

MAJOR POTENTIAL

IMPACT

Online study ranked dozens of convenience concerns consumers had with beef. Top 4 were:

58 SOURCE: Convenience Study, 2010

Online surveys verified defrosting beef is a BARRIER and that consumers want a better solution!

Page 59: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

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Steak Purchases 24% of Total

57% Fridge

43% Freezer

66% Freezer

34% Fridge

82% Fresh

18% Frozen

47% Fridge

53% Freezer

77% Freezer

23% Fridge

Total Beef Purchases

100% of Total

74% Fresh

25% Frozen

Hamburger Patty Purchases

19% of Total

53% Fridge

47% Freezer

81% Freezer

19% Fridge

44% Fresh

56% Frozen

Issues with Defrosting – Is this common?

Steaks: • Combined –

almost 50% of steaks go into the freezer

Ground Beef: • Combined –

almost 66% of ground beef goes into the freezer

All Beef: • Combined –

almost 60% of all beef purchases go into the freezer

SOURCE: Defrosting Deep Dive Study, Nov 2011

Online surveys verified defrosting beef is a BARRIER and that consumers want a better solution!

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Convenience – Solutions to Defrosting Beef

SOURCE: Defrosting Study, Nov 2012

Safety and New Product Development Teams tested several defrosting methods

Repackaged Beef - flattened

Overwrap beef – not flattened

Two different freezing methods

+

Two different defrosting methods

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Would Encourage You to Use Ground Beef More Often

Q. If you knew that ground beef could be defrosted quickly and safely using this method would you use ground beef more often?

42% 52%

67%

36%

Repack Overwrap Repack Overwrap Base (62) (61) (62) (61)

A B C D

AD

No Water Water

Overwrappers say that their experience with the No Water method would increase their ground beef usage

SOURCE: Defrosting Study, Nov 2012

Convenience – Issues with Defrosting

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Next steps are to discuss with stakeholders – USDA/FSIS and others to determine how documents can reflect a different defrosting method other than the highly inconvenient ’24 hours in the fridge’ method.

Convenience – Solutions to Defrosting Beef

SOURCE: Defrosting Study, Nov 2012

Page 63: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

Improving these convenience points will very likely increase beef use

Being able to cook from frozen Shortening defrost time Recipes needing hard-to-find ingredients Reheating hurts taste

Convenience – Issues with Defrosting

MAJOR POTENTIAL

IMPACT

63 SOURCE: Convenience Study, 2010

Page 64: Market Research Consumer Insights · Market Research Consumer Insights Market Research Team: John Lundeen . Rick McCarty . Wendy Neuman . 2 . Why Don’t Consumers Eat Beef More Often?

John Lundeen, MBA – Sr. Executive Director, Market Research [email protected] / 303-850-3391 Rick McCarty, M.A. – Vice President, Issue Analysis and Strategy [email protected] / 303-850-3361 Wendy Neuman, M.A. – Director, Market Research [email protected] / 303-850-3325

Market Research Contacts

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QUESTIONS?

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