the bic case - consumer behavior
TRANSCRIPT
8/8/2019 The BIC Case - Consumer Behavior
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BIC Case Study
Dr. Ahmed Taher
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OutlineOutline
Introduction/Synopsis and Dilemma
U.S. market consumer behavior analysis
Segmentation of consumers
Analysis of the adver tising campaign
Recommendations for the adver tisingcampaign
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The Beef Industr y Council (BIC)The Beef Industr y Council (BIC)
VISION
A beef industry that is profitable, growing and sustainable for future generations.
MISSION
´Maintain and Build demand for beef products that satisfycustomer needs and wants through market developmentprograms (information, promotion and research), thereby
increasing the opportunity for the beef industry to earn anadequate return on investmentµ
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BIC PRIORITIESBIC PRIORITIES
Creating Growth through Consumer mark et
Creating Value through Beef Production
Creating Sustainability through a favorable business
climate
Creating Opportunity through Global Competitiveness
Acting as National Coordinator
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Why is there a beef check Why is there a beef check--off?off?
79 % of the beef producer have approved the check-off as aself-help promotion, research and information program.
70 % of cattlemen approve of the check-off.
The bottom-line reason for a check-off is to understand andcommunicate with the consumers.
It·s an ever-changing marketplace, and the product offeredmust meet changing demands.
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What can the checkoff do?What can the checkoff do?
The checkoff acts as a catalyst for change.
The checkoff can·t single-handedly tur n around a low market, Nor creates good markets by itself.
Beef producers never intended to be in the business of growing cattleor handling product.
A way to stimulate others to sell more beef.
It could be done through direct adver tising, cooperative marketing,
public relations effor ts, education programs and new product development assistance.
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Check Check--offoff
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Where are check Where are check--off dollarsoff dollarsinvested?invested?
Designed to build demand for beef /veal in both domestic andforeign markets.
Research provides the foundation for check-off-funded activity based on consumer marketing, nutr ition, beef safety and product
development research.
Promotion enhance the appeal of beef to consumers, and helpsretailers/ foodservice operators market beef and veal moreeffectively.
Consumer Information creates a positive image for beef throughnews media, food editors, teachers, dietitians, physicians and other influential audiences.
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Where are check Where are check--off dollarsoff dollars
invested?invested?Industry Information improves perceptions and understanding of thecattle industr y by helping to manage misleading publicity concer ningfood safety, environmental and animal welfare issues.
Foreign Mark eting works to identify and develop inter national marketsfor U.S. beef and veal.
Producer Communications informs beef and veal producers about how their check-off dollars are being invested and keeps them
appr ised of program results.
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OutlineOutline
Introduction/Synopsis and Dilemma
U.S. market consumer behavior analysis
Segmentation of consumers
Analysis of the adver tising campaign
Recommendations
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Why people eat beef?Why people eat beef?
People who live by religious tenets do
not eat meat fromsome farm-animal species (e.g. Jews, Moslems, Hindus) but do eat meat fromother farm-animal
species.While Chr istians, for example, believethey can consumemeat from all farm-animal species.
People who prefer beef over pork , lamb
and/or poultr y do sobecause of beef·sunique flavor.
Beliefs Individual Differences Biologically
Humans benefit nutr itionally frommeat consumption and benefit fromconsumption of beef (an exquisitecombination of vital nutr itional entities)especially if it is lean and if it is par t of anutr itionally balanced diet.
Beef is a wonderful package ofessential nutr ients (e.g., zinc, iron, protein) and, if lean, comparesfavorably to chicken as a par t ofhealthful and remedial (for sick people) diets.
One 3-ounce serving of beefcontr ibutes 9% of calor ies, 50% of
protein, 14% of iron, 39% of zinc, 3
7% ofVitamin B-12 and 16% of Vitamin B-6.
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Why People eat less beef?Why People eat less beef?
Cost is a daytoday consumer concer n
affecting all foodpurchases, includingbeef. Fifty percent ofconsumers believethe cost of steaks per pound or at a
restaurant hascaused them to limit or even eliminatesteak usage.
Approximately onequar ter of
consumers limit beefpurchases because ofsensor y factors such asinconsistency of beefflavor and dislike for handling raw beef.
Economics Industry Health and Safety
After pr ice, issues surrounding safety, nutr ition, and convenience almost equally cause limitations in beefpurchases among slightly more than onethird of consumers. Examples ofthe micro issues contr ibuting to thesemacro issue rollups include use ofhormones, r isks of E. coli and BSE, the
perception of beef·s fat andcholesterol profile, health r isks such ashear t disease, lack of beef snack options, inconvenient sized cuts anddifficulty in microwaving beef.
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Beef Consumption LimitationBeef Consumption Limitation
SurveySurvey50%
37%
36%
35%
26%
19%
Price
Safety
Convenience
Nutrition
Various Sensory
Reputation
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Belief or ConcernBelief or Concern
83%
83%
73%
73%
64%
55%
53%
50%
35%
Steak cost too much per pound
Steak costs too much when ordering in a resturant
Ground Beef costs too much per pound
Beef comes in cuts that are too often not the right
size for a single meal
Beef has too many calories per serving
It is inconvenient to have a split up and freeze part of
the large beef package
It is hard to say what beef to use for a specific,
desired meal
Beef is not quick and easy to prepare
It is hard to really know, how to cook beef?
B e l e i f s
o r C o n c e r n
s
Belif or concern percentage
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Consumer Attitude towards beefConsumer Attitude towards beef
A WIN
FOR BEEF
Jan,1987 Jun,1987
83% 84%
Extremely/Very
Important
Beef's
Performance
May, 2007 July, 2009 May, 2007 July, 2009
84% 90% 82% 87%
Great Taste
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Consumer Attitude towards beefConsumer Attitude towards beef
A WIN
FOR BEEF
Jan,1987 Jun,1987
67% 71%
Extremely/Very
Important
Beef's
Performance
May, 2007 July, 2009 May, 2007 July, 2009
64% 74% 65% 73%
Balance of Taste and Nutrition
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Consumer Attitude towards beefConsumer Attitude towards beef
A WIN
FOR BEEF
Jan,1987 Jun,1987
50% 53%
Extremely/Very
Important
Beef's
Performance
May, 2007 July, 2009 May, 2007 July, 2009
73% 80% 54% 67%
Good Value for Money - Home
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Consumer Attitude towards beefConsumer Attitude towards beef
Solid
Result
for Beef
Jan,1987 Jun,1987
62% 69%
Extremely/Very
Important
Beef's
Performance
May, 2007 July, 2009 May, 2007 July, 2009
75% 80% 60% 63%
Extremely Safe to eat - Home
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OutlineOutline
Introduction/Synopsis and Dilemma
U.S. market consumer behavior analysis
Segmentation of consumers
Analysis of the adver tising campaign
Recommendations
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Mark et SegmentationMark et Segmentation ² ² Life StyleLife Style
Segments Could be based on Life Style
Spor ts People
HealthfulnessP
eopleDietitians
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Mark et SegmentationMark et Segmentation ² ² AgeAge
Children and youngsters throughtheir pediatr ic professionals.
Based on age, which is ademographic segmentation
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Mark et SegmentationMark et Segmentation -- UsageUsage
Households with heavy/light usageof beef.
Segments based on usage.
This is a typical purchase andconsumption behavior segmentation strategy
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Mark et SegmentationMark et Segmentation ² ² FoodFoodService Operators IndustryService Operators Industry
The food serviceindustr y accounts to40-45% of beef sales
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OutlineOutline
Introduction/Synopsis and Dilemma
U.S. market consumer behavior analysis
Segmentation of consumers
Analysis of the adver tising campaign
Recommendations
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Analysis of the advertisingAnalysis of the advertising
campaigncampaignRationale
Target Market
Contact MethodMessage
Outcome
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Campaign RationaleCampaign Rationale
In the ear ly 1980s the eating habits of many Amer icans movedtoward a focus on lower fat, fewer calor ies
Consequently; meat consumption, par ticular ly that of redmeat, declined
In 1985 research found that 31 percent of consumers said they were eating less beef because of "health concer ns," versus 29 percent two years ear lier.
"Changing meal patter ns" caused 39 percent to reduce theamount of beef they ate in 1985, versus 27 percent in 1983.
Fear ing a continuation, if not an escalation, of the trend, the
Beef Industr y Council (BIC) decided to intensify its marketingprogram to improve the image of beef in the public's eyes
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Target Mark etTarget Mark et
Light users (who consume less than 6 servings per 2 weeks)were targeted
Fur ther segmentation was performed using VALS (Values,
Attitudes and Lifestyles)
Light users who were also achievers, socially conscious, and"inner directed" were selected
They had annual household incomes of at least $30,000
Their average age was between 25-52
60
% were females, 40
% males
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Contact MethodContact Method
Celebrity Endorsement: the adver tising style waspurposely fashionable and its tone upbeat. Twocelebr ity spokespersons, Cybill Shepherd andJames Gar ner , were chosen to carr y the
messages³ Shepherd for her stylish andoutspoken image and Gar ner for his believability.
Print ads were used emphasizing on nutr itional value of beef.
TV Commercials "Beef, real food for real people"focused on nostalgia.
Radio commercials, seminars and late night
shows were also used.
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MessageMessage
"Beef, real food for real people"campaign tr ied to address beef'snutr itional profile in the context of itsother strengths such as unique taste
.
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Outcome (1/2)Outcome (1/2)Awareness of beef adver tising increased 16 percent among light users, compared with 2 percent among heavy users
The adver tising also was effective in reaching
consumers under the age of 35³awareness jumped 24 percent among that segment.
After the shor t si x-month per iod, more people saidthey were eating more beef (10 vs. 6 percent)
The positive results were attr ibuted to thecampaign's ability to convince people that beefwas convenient to pre pare (up to 72 percent from62 percent) and that it fit their lifestyle
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Outcome (2/2)Outcome (2/2)
Nutr itional concer ns retur ned to pre-campaign levels after an initial drop when the campaign began
Both the agency and the Council agreed to
expand public relations activities targeting thehealth care community.Adver tising in publications such as the New England
Journal of Medicine were to be consideredThe trouble star ted when Shepherd told FamilyCircle magazine in 1985 that the secret to her beauty was avoiding red meat. Just two years later , Gar ner suffered a hear t attack.
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OutlineOutline
Introduction/Synopsis and Dilemma
U.S. market consumer behavior analysis
Segmentation of consumers
Analysis of the adver tising campaign
Recommendations
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Recommendations (Recommendations (11//44))
Promotion & Adver tisement
Place special emphasis on Summer Grillingcampaign ² May through September and
Family Dining (late September)Regional/local foodservice advertising
Continue promotion of Beef Value Cuts andother new product applications in retail stores
and in restaurantsPromote/sample new beef products at consumer events
Disseminate beef safety information tochannel marketers, media, opinion influencers and producers
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Recommendations (2/4)Recommendations (2/4)
Par tnership with Health Care Professionals
Promote nutr ition seminar programs or other healthprofessional venues, or direct-to-consumer events
Continue to develop partnerships with local healthprofessional groups, including exhibiting andsponsor ing/providing speakers at their meetings; identify potential health professional spokespersons
Extend Healthy Beef Cookbook to state health
professionals, spokespeople and organizationsOffer support for nutr ition seminars in low-checkoff, high-population states.
Continue to expand the Health Style newsletter mail database
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Recommendations (Recommendations (33//44))
Education & Consumer Info
Exhibit at meetings of teachers, administrators, school boards, etc. to provide information about
classroom resources available from MBICUse the new lower-fat beef youth recipes in local effor ts
Promote the ´Beef So Simpleµ e-newsletter to
consumers.
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Recommendations (Recommendations (44//44))
Paid Media & Inter netPaid media ² week ly radio updates, network radio (depending on national schedule), pr int adver tising
Producer outreach ² exhibits, Web site, Blog, speeches and presentations, par ticipation in meetings and conventions, field days and tours.Provide information to industr y leaders, auction markets, Extension specialists, agencies, FFA/ag-education instructors and other influencers
Media relations ² week ly audio news releases, regular pr int releases, guest editor ials, programupdates as needed, Web site resourcesProducer Attitude Survey
Buyers cards for auction markets