Consumer Trends. Market Research Overview July 26, Attitudes & Behavior. Market Research

Transcription

1 Consumer Trends Attitudes & Behavior Market Research Overview July 26, 2012 Market Research 1

2 But first A pop quiz 2

3 The Market Research Team s Sensational Sizzling Stunningly Smart Summer QUIZ 3

4 How well do you know your target market? 4

5 How Well Do You Know Your Target Market? Q. Which of the following is the most important beef consumer target market of the future? a. Generation Y b. Generation X c. Millennials d. English speaking Hispanics Millennials AKA: Generation Y, Generation Next, The Net Generation, Echo Boomers, The Trophy Generation 5

6 How Well Do You Know Your Target Market? Q. Which of the following names describes this illustration (yes, it s a relevant question)? a. A plump python b. A pig in a python c. A pregnant python d. A porcine python Because it was so large (76 million) the Baby Boom generation was referred to as a pig in a python -- a demographic bulge that would move slowly through society and create change. The Millennial generation (80 million strong) is the new pig in the python. 6

7 How Well Do You Know Your Target Market? Q. Millennials make up about what percent of the U.S. adult population? a. 20% b. 24% c. 29% d. 31% SOURCE: Limiters of Consumption May 2012 Millennials currently range in age from 13 to 32. At 80 million, the Millennial generation is even larger than the Baby Boomers currently almost 30 percent of all adults and roughly 27 percent of the total population. 7

8 How Well Do You Know Your Target Market? Q. What percent of Millennials sleep with their cell phone either in the bed with them or right next to the bed? a. 93% b. 83% c. 73% d. 63% SOURCE: Pew Research Center Millennials are the most connected generation. They are 2.5 times more likely than older generations to be an early adopter of technology. Social media is their source of information and entertainment, and drives their decision-making. This makes them difficult to market to. 8

9 How Well Do You Know Your Target Market? Q. What is a boomerang? a. A statement or course of action that backfires on its originator. b. A young adult who returns to live with his or her parents. c. An Australian aborigine throwing stick that returns to the thrower. d. All of the above (except not really in this quiz). The economic recession has been hard for Millennials. Unable to find jobs, many moved back with their parents after college or after living independently for a while. Fully a third have gone back to school (one reason the Millennials are becoming the most educated generation in history) and 34 percent have postponed either marriage, parenthood or both. 9

10 How Well Do You Know Your Target Market? Q. What percentage of young adults (18-34) live with their parents or moved back in with parents temporarily because of the economy? a. 49% b. 39% c. 29% d. 19% Percent saying they live with parents now or moved back in with parent temporarily because of economy All young adults 39% % % % 0% 10% 20% 30% 40% 50% 60% SOURCE: Pew Research Center

11 And finally.. To improve your understanding of the Millennial generation, your friendly neighborhood Market Research Team presents You might be a Millennial 11

12 YOU MIGHT BE A MILLENNIAL IF.. You spent more time creating your Facebook profile than you did creating your resume. You have only been with the company a month, but you feel you are entitled to a shot at that Vice President position which just opened up. You ve never hand written a letter, sealed it in an envelope and mailed it. Your biggest long-term planning concern is figuring out who will cook for you when your parents move into assisted living. You think that standing over the sink is a totally normal place to eat breakfast. You quit your last job in protest, because the IT department blocked your access to Facebook at work. After your job interview, your mom called the HR director to see how you did. 12

13 YOU MIGHT BE A MILLENNIAL IF.. Someone asks you what time it is and you reach for your phone even though you re wearing a watch. You used to watch Beavis and Butthead when your mom wasn t home. You still can t believe your parents turned your old bedroom into an office. Did your time with them mean nothing? You are perturbed that the guy in the next cube keeps interrupting you with his questions, rather than just sending a text message. When asked to suggest an inspirational speaker for the company event who had survived adversity, your first thought was to ask Britney Spears. You are bummed that your HR Department didn t give you a trophy for surviving the first week at work. You think your company should stop its embarrassing focus on making money, and concentrate on things that create real meaning in the world. 13

14 How Millennial are you? If you want to determine your degree of Millennial-ness go to 14

15 Beef Issues Quarterly 15

16 Consumer Trends Attitudes & Behavior Market Research Overview July 26, 2012 Market Research 16

17 Outline LRP DRIVES PROGRAMS & RESEARCH (John) Beef Industry Long Range Plan and Core Strategy Measures RECENT STUDIES 1. Consumer Image Index (Rick) Benchmark study on perceptions of production practices 2. Consumer Beef Index (John) Semi-annual tracker of demand drivers 3. Limiters of Demand (Rick) Significant barriers to consumer use of beef 4. Nutrition Messaging (Wendy) How we can best tell consumers our nutrition story 5. Safety Summit (Rick) Experts say, consumers say 17

18 Long Range Plan Core Strategies Domestic Checkoff efforts will focus on two Core Strategies intended to support growth in domestic Beef Demand. Improve domestic consumer preference for beef Capitalize on global opportunities Strengthen the image of beef and the beef industry Protect and enhance our freedom to operate Improve industry trust, openness and relationships Position the U.S. cow herd for growth Beef Industry-Wide Long Range Plan 18

19 Consumer preference tracker Consumer Beef Index LRP Goal Increase CBI preference measure from 28% to 31% March 2012 Beef 28% Bucket 1 31% by % 23% 26% 22% 33% 30% 26% 30% 27% 28% 27% % 27% Bucket 1 Positives strongly outweigh negatives 46% 45% 48% 45% 45% 43% 46% 47% 48% 47% 48% Bucket 2 Positives somewhat outweigh negatives 20% 20% 20% 16% 20% 18% 19% 16% 17% 15% 17% Bucket 3 Negatives somewhat outweigh positives 10% 8% 10% 7% 9% 9% 8% 8% 8% 7% 8% Bucket 4 Negatives strongly outweigh positives Jan 07 May 07 Feb 08 Jul 08 Mar 09 Jul 09 Feb 10 Jul 10 Feb 11 Jul 11 Mar 12 Base: Total (N = 1,000+ per wave) 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? Key: Significant change in same season results ( ) Source: Consumer Beef Index, Mar

20 Consumer Image Index Benchmark for Measuring Progress Bucket 1 Positives strongly outweigh negatives How Cattle are Raised 17% LRP GOAL Increase from 17% to 20% by 2013 Bucket 2 Positives somewhat outweigh negatives 61% 44% Bucket 3 Negatives somewhat outweigh positives Bucket 4 Negatives strongly outweigh positives 39% 27% 12% Total Pop (100%) Q.21/22: Thinking specifically about how cattle are raised for food in the U.S., do you believe that? Source: Consumer Image Index, Jan

21 Achieving the Long Range Plan FY 2012 Checkoff Priorities Increase consumer confidence in selecting and preparing beef Contemporize beef to capitalize on consumers diverse needs Establish beef as an everyday part of a healthy diet Provide consumer/operator guidance on economizing with beef Strengthen Image Enhance beef quality assurance from the producer through the supply chain BEEF Minimize product quality and consistency outliers Improve Preference Demonstrate beef is socially responsible Reshape the conversation about modern beef production Lead industry to reduce beef safety impact on public health through sound science Beef Industry-Wide Long Range Plan 21

22 Consumer Image Index 22

23 Market Segments of Interest 100% Total Year Old Consumers 26% Socially Conscious Moderate Beef Eaters: Moderate beef eaters eat beef 1 2 times a week. Socially conscious moderates are those who consider at least three of 18 specific U.S. meat industries actions extremely important for Safety, Animal Welfare, Industry Ethics or Environment (At least one extremely important in three or more areas) 60 percent of moderate beef eaters can be classified as socially conscious Source: Consumer Image Index, Jan

24 Ethical Concerns Importance vs. Performance Dedicated to animal health Animals have room to roam/exercise Natural diet for animals Continually improving animal care 58% Importance 84% Animal Welfare Performance 31% 35% Cognitive Dissonance High Importance, Low Performance Raised in natural settings Percent with at least two extremely important concerns in the category Percent who strongly believe the beef industry is doing one or more things right in each category Total Socially Conscious Source: Consumer Image Index, Jan

25 Favorability -- Product versus Production Practices Beef Beef Industry How Cattle are Raised Bucket 1 Positives strongly outweigh negatives 28% 24% 17% 13% Bucket 2 Positives somewhat outweigh negatives 44% 52% 76% 44% 46% 59% Bucket 3 Negatives somewhat outweigh positives 20% 19% 27% 29% Bucket 4 Negatives strongly outweigh positives 8% 2% Comparable March 2012 CBI results Bucket 1 27% Bucket 2 48% Bucket 3 17% Bucket 4 8% 12% Total 12% Moderate Beef Socially Conscious Q.12/13: Considering all you know about beef, would you say? Q.21/22: Thinking specifically about how cattle are raised for food in the U.S., do you believe that? Source: Consumer Image Index, Jan 2012 Total Socially Conscious Active Skeptic 25

26 Very Positive (5) Positive (4/5) Negative (1/2) 92% 95% 1% 0% Like what they see but don t believe it Liking 86% 91% 81% 74% 2% 1% 5% 4% Does Not (1/2) Completely (5) At all Does (4/5) Reflects The Beef Industry 45% 43% 37% 39% 39% 40% 29% 26% 33% 31% 40% 41% Total Socially Conscious 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? Source: Consumer Image Index, Jan

27 Very Positive (5) Positive (4/5) Don t like what they see and do believe it Liking 23% 21% 23% 23% 14% 12% Completely (5) At all Does (4/5) Reflects The Beef Industry 57% 60% 62% 58% 44% 45% Negative (1/2) 38% 41% 43% 46% 51% 55% Does Not (1/2) 10% 9% 12% 11% 17% 15% Total Socially Conscious 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? Source: Consumer Image Index, Jan

28 Antibiotics Comfortable with the use of antibiotics when An animal becomes sick 52% 54% Prescribed by a veterinarian 49% 53% In accordance with [regulations of] the Food and Drug Administration 49% 48% Proactive protection [for animals] from disease 32% 34% The antibiotic is NOT related to any class of human antibiotics 17% 19% The antibiotic helps an animal better metabolize food Never 11% 8% 14% 13% Total Socially Conscious Q.17: In which, if any, of these situations are you comfortable with the use of antibiotics in raising animals for food? Source: Consumer Image Index, Jan

29 Page 1 of 2 Science & Technology Comfortable with science and new technologies to improve The safety of the beef consumers eat 73% 84% Cattle care and comfort 65% 77% The medical treatment for sick cattle 65% 73% To optimize cattle s diet and nutrition 59% 70% The environmental efficiency of raising cattle (e.g., using energy, land and water) 58% 66% Cattle nutrition and decrease the fat content in beef 50% 55% Total Socially Conscious Q.28: For which, if any, of these aspects of raising cattle are you comfortable with the beef industry using science and new technologies? Source: Consumer Image Index, Jan

30 Science & Technology Page 2 of 2 To help keep beef prices affordable 46% 49% To help new farmers and ranchers get into the cattle business 36% 40% To help cattle farmers and ranchers select and use the best genetics for improving their herds 36% 41% To increase lean muscle in cattle 27% 28% Never 7% 3% Total Socially Conscious Q.28: For which, if any, of these aspects of raising cattle are you comfortable with the beef industry using science and new technologies? Source: Consumer Image Index, Jan

31 State of Consumption Consumer Beef Index Update 31

32 Dinners at Home/How Does Beef Perform? Consumer expectations continue to increase with Great Taste and Good Value for Money rising to the top of importance. Beef performance on a range of measures also increasing! At Home what matters (Dinner Entrée) Importance Beef Performance Jan 2007 Mar 2012 Jan 2007 Extremely/Very Important Mar 2012 Agree Completely/ Somewhat % % % % Great Tasting (#1) Extremely safe to eat (#2) A good value for the money (#3) Delivers good results consistently (#4) NA 75 NA 78 Balance of taste and nutrition (#7) Great source of protein (#11) Fits a health-conscious diet (#21) Key Arrows indicate that there is a significant trending up ( )or down ( )for same season results during the 2007 to 2012 period, at 95% confidence. Source: Consumer Beef Index, Mar

33 Reasons for Consuming More Beef Among consumers (18%) who think they are eating more beef Taste of beef A family favorite Extremely important 36% 33% Very important 33% 35% 66% 71% Taste and Enjoyment March 2012 Quick and easy The right choice for many occasions Better availability of cuts Great prices Learned new ways to prepare beef Adding protein to your diet Lean beef fits a healthy diet Grilling more often Less price-conscious now Hearing better news about it being healthy Less worried about safety Tired of the other meats 31% 31% 29% 29% 27% 25% 24% 24% 24% 24% 22% 21% Base: Those eating more beef (N = 245) 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? Source: Consumer Beef Index, Mar, % 29% 27% 29% 28% 30% 27% 23% 25% 25% 36% 31% 43% 47% 47% 46% 53% 51% 58% 56% 56% 54% 62% 67% High Impact Moderate Impact Low Impact

34 Reasons for Consuming Less Beef Among consumers (18%) who think they are eating less beef Extremely important Very important March 2012 Too expensive relative to other meat 31% 18% 49% Other meats seem healthier Limiting cholesterol or fat Health reasons 29% 28% 28% 23% 25% 20% 52% 53% 48% High Impact Price and Nutrition/ Health Concerns More price-conscious now 24% 24% 48% Concerned about factory farming 23% 12% 35% Prefer other meal options 18% 16% 34% Eating more plant-based protein More worried about safety 17% 17% 19% 12% 36% 29% Moderate Impact Hard to digest 15% 13% 28% Discovered new non-beef recipes 13% 15% 28% Family member prefers to avoid beef 11% 11% 22% Grilling less Steak dinner takes too long 10% 9% 12% 13% 22% 22% Low Impact Cuts you like not available 7% 9% Running out of ways to make beef 5% 5% 10% Key: Significant change in same season results ( ) Base: Those eating less beef (N = 246) 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? Source: Consumer Beef Index, Mar, % 34

35 Anticipated Beef Consumption Change Beef has improved from more consumers saying they are eating less beef to now more consumers saying they are eating more beef. 7% Eating Less Beef 8% 11% 10% 11% 13% 11% 15% 14% 17% 14% Will Eat More Eating the Same Amount 81% 73% 81% 77% 77% 75% -5% 0% 76% 74% 74% 75% 73% +2% +7% +2% Will Eat About the Same Amount Eating More Beef 12% 11% 15% 13% 11% 12% 13% 12% 12% 10% 10% Jan '07 May '07 Feb '08 Jul '08 Mar '09 Jul '09 Feb '10 Jul '10 Feb '11 Jul '11 Mar'12 Will Eat Less Base: Total (N=1,000+ per wave;) Q: Now looking forward, do you expect your use of the following food types to increase, stay the same or decrease over the next six months or so? Consumer Beef Index 35

36 3.2 State of Consumption Recession starting in had obvious impact on frequency of eating beef and chicken. Protein price increases in late 2011/2012 also moderating frequency of usage Consumption Frequency: Overall Servings Past Week Servings (mean) Chicken Beef Base: Total (N=1,000+ per wave)) Q.19: Thinking about all of your meals breakfast, lunch, dinner and snacks both at home and away from home, how frequently do you eat each of the following types of food? Q.20: How many times did you eat this type of food in the past week? Source: Consumer Beef Index, Mar

37 Effect of Current Economic Trends March 2012 Home Dining Out Buying/Ordering Beef More 24% 15% Buying/Ordering Beef Less 27% 35% Specific Buying more beef at sale prices (home) 34% Buying more beef meals from the "price specials" menu 23% Purchasing fewer steaks, more hamburgers when eating out Buying less steak, more ground beef (home) Buying less expensive cuts of beef (home) 15% 15% 20% Trading Down Behaviors Base: Beef Eaters (N = 1,291) 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) Source: Consumer Beef Index, Mar

38 State of Consumption Limiters of Consumption ( Hurdles ) 38

39 Market Segments of Interest 100% Total: Year Old Consumers 39% Moderate Beef Eaters: Eat beef 1-2 times a week. 29% Adult Millennials: Millennial generation defined as those born between Largest generational cohort at 80 million (larger than the boomers). Highly educated, not very health conscious, difficult to market to. Decisions and information driven by social media. Just now finding their niche in life and society. Adult Millennials defined as the subset currently over the age of

40 Methodology In the deck of cards to the left on the next screen, the statements will appear one at a time. Please read the statement, then click on the statement card and drag it to the pile that best matches your belief about beef and any action you may have taken. Your Belief and Any Action You May Have Taken You had not previously heard of this You have heard of, but do not believe this to be true While it may be true, you do not limit the amount of beef you buy because if this You occasionally limit the amount of beef you buy because of this You frequently limit the amount of beef you buy because of this (Place card here) (Place card here) (Place card here) (Place card here) (Place card here) Sample Card The cost of a steak meal is very high at restaurants. Source: Limiters of Consumption May 2012 Top Box Limiter Score 40

41 Top Limiters of Beef Consumption (Top 10 Frequent Limiters for each consumer segment) PRICE CONCERNS Percent Frequently Limiting Beef Consumption because of concern The cost of a steak meal is very high at restaurants (#1 overall limiter - top 2 box) Cost per pound of steak is very high at the grocery store (#2) Cost of per pound of ground beef is very high at the grocery store (#3) The cost of of hamburger or other ground beef meal is very high at restaurants (#7) 15 Total Population Moderate Beef Eaters Millennials Source: Limiters of Consumption - May

42 Top Limiters of Beef Consumption (Top 10 Frequent Limiters for each consumer segment) It is healthier to eat more chicken or fish & less beef (#4 overall limiter - top 2 box) NUTRITION CONCERNS Percent Frequently Limiting Beef Consumption because of concern It is not healthy to eat beef every day (#5) It's sound nutritional advice to balance beef consumption by eating other proteins (#6) Ground beef can easily be replaced in recipes with ground turkey or chicken (#9) Ground beef is not as healthy as other ground meats such as ground turkey (#10) There are much healthier choices than beef for protein (#13) Total Population Moderate Beef Eaters Millennials Source: Limiters of Consumption May

43 Top Limiters of Beef Consumption (Top 10 Frequent Limiters for each consumer segment) PREPARATION CONCERNS Percent Frequently Limiting Beef Consumption because of concern Steak does not have good results when microwaved (#8 overall) Ground beef does not have good results when microwaved (#14 overall) Total Population Moderate Beef Eaters Millennials Source: Limiters of Consumption May

44 Top Limiters of Beef Consumption (Top 10 Frequent Limiters for each consumer segment) QUALITY & SAFETY CONCERNS Percent Frequently Limiting Beef Consumption because of concern Some ground beef is blended with a lean, finelytextured product that is often referred to as "pink slime" (#15 overall limiter - top 2 box) Is is risky to eat a burger that is a little rare (#20) Cattle are pumped full of hormones to make them grow bigger faster - and then have to be given antibiotics to keep them healthy (#19) 15 Total Population Moderate Beef Eaters Millennials Source: Limiters of Consumption May

45 Solutions & Impact Tactics to encourage increased beef consumption* NUTRITION TACTICS If you found out that 4 ounces of beef has the same amount of cholesterol as 4 ounces of skinless chicken breast If you found out lean beef is an excellent or good source of 10 essential nutrients including protein, iron, zinc and B-vitamins If you found out that lean beef helps you maintain a healthy weight, builds muscle and fuels physical activity Definitely Increase Probably Increase If you found out that lean beef fits as well as chicken or fish in a heart-healthy diet If you found out that the majority of popular steaks have 10% or less total fat once they are cooked & trimmed of visible fat * Total population Source: Limiters of Consumption May

46 Solutions & Impact* Tactics to encourage increased beef consumption VALUE TACTICS If you saw greater availability of large-quantity family packs, with a lower price per pound If you saw greater availability of expertly trimmed, 4-5 ounce steaks -- sized for individual servings- - in economical, large-quantity family packs If you saw steaks packaged in 4-ounce portion sizes, with less than 200 calories per serving Definitely Increase Probably Increase If you saw greater availability of smaller, expertly trimmed, 4-5 ounce steaks in the fresh meat case If you saw greater availability at restaurants of economically priced entrees with expertly trimmed steaks in smaller 4-5 ounce portions * Total population Source: Limiters of Consumption - May

47 Solutions & Impact* Tactics to encourage increased beef consumption IMAGE TACTICS Definitely Increase Probably Increase If you found out that U.S. testing procedures prevent beef from being sold that has any added hormones remaining in it If you found out that all beef cattle spend the majority of their lives grazing in pastures on farms and ranches * Total population Source: Limiters of Consumption May

48 Nutrition Messaging 48

49 Nutrition Messaging Research conducted to answer 3 questions: How do we best explain beef s nutrient bundle? What surprising fact about beef would be most motivating? What body benefit would be most powerful to associate with beef? A Caveat: Some of the statements tested were aspirational would take more research to satisfy claims requirements. Beyond research, there is the process of getting a claim that is very expensive and time consuming. Source: Nutrition Messaging Feb

50 Nutrition Messaging Using MaxDiff* Sorting Technique: Most likely to persuade you to eat beef one more time each week O O O O BENEFITS Lean beef gives you a big nutrient bang for your calorie buck. Lean beef is an excellent or good source of 10 essential nutrients including protein, iron, zinc and B vitamins. Lean beef provides more nutrients in fewer calories than many foods. Lean beef is an excellent or good source of iron and B12, nutrients that many Americans lack. Least likely to persuade you to eat beef one more time each week O O O O A Bit Like Playing Poker: You are dealt 4 cards (statements). Computer makes sure they have been randomly assigned. You decide which is most important, or persuasive and which is least. You then get assigned another 4 cards. * Maximum Differential Scaling Source: Nutrition Messaging - Feb

51 Overall Importance Nutrient Bundle MaxDiff Consumers now prefer messaging that is more specific about the nutrients provided or the cuts of beef being described as they are more informing and provide a stronger reason to eat beef Americans' favorite cuts of beef each have 10 essential nutrients for less than 10 grams of total fat. 4. Lean beef is an excellent or good source of 10 essential nutrients including protein, iron, zinc and B vitamins. 5. Lean beef meets FDA definitions as an excellent or good source of 10 essential nutrients. 6. The most popular cuts of lean beef are comparable in fat to skinless chicken. 8. Just three ounces of lean beef delivers more than 10 percent of your daily value of 10 essential nutrients. 9. Lean beef naturally fortifies your diet with 10 essential nutrients. 7. On average, lean beef has only one more gram of saturated fat than skinless chicken breast. 2. Lean beef is packed with 10 essential nutrients per bite - making each calorie count. 10. Lean beef provides more nutrients in fewer calories than many foods. 1. Lean beef gives you a big nutrient bang for your calorie buck. 3. Crowd-pleasing and nutrient-packed, lean beef satisfies on every level. Tier 4 Tier Tier 1 Tier Consumer 2X as likely to note above statement would motivate additional beef consumption Base: Note: Each statement was evaluated by 700 respondents in a series of comparisons with 3 other statements, systematically rotated so that each statement was seen the same number of times. Each respondent evaluated one third of the statements, but multiple sets were used across respondents so that each statement was evaluated against all other statements an equal number of times across all respondents. The numbers shown are percentage most likely to be motivated to eat more beef scores that add to 100% across all respondents and within each subgroup examined. As such, the scores are on a ratio scale, meaning a value twice the size of another score means it is twice as likely to motivate. Source: Nutrition Messaging Feb

52 The Statements Americans' favorite cuts of beef each have 10 essential nutrients for less than 10 grams of total fat. Lean beef is an excellent or good source of 10 essential nutrients including protein, iron, zinc and B vitamins. Lean beef meets FDA definitions as an excellent or good source of 10 essential nutrients The most popular cuts of lean beef are comparable in fat to skinless chicken. Just three ounces of lean beef delivers more than 10 percent of your daily value of 10 essential nutrients. Lean beef naturally fortifies your diet with 10 essential nutrients. On average, lean beef has only one more gram of saturated fat than skinless chicken breast. Lean beef is packed with 10 essential nutrients per bite - making each calorie count. Lean beef provides more nutrients in fewer calories than many foods. Lean beef gives you a big nutrient bang for your calorie buck Crowd-pleasing and nutrient-packed, lean beef satisfies on every level. More specific messages had greater power to persuade. Source: Nutrition Messaging - Feb

53 SURPRISING Beef Fact Test (Including Aspirational Messages) In a test of surprising beef news those mentioning heart benefits and lowering cholesterol won. 2. Like dark chocolate and red wine, lean beef is now scientifically proven to be a heart healthy food. 1. Lean beef is good for your heart. 3. It's true - you can eat lean beef every day and lower your cholesterol. 4. Studies show you can eat lean beef every day and lower your cholesterol. 13. Three of the leanest cuts proudly bear the American Heart Association's heart-check mark. 6. Beef Tenderloin has more heart-healthy fat per serving than chicken breast. 7. Lean beef is a delicious health food the whole family enjoys. 5. The same kind of heart-healthy fat found in olive oil is in beef of the 25 most popular steaks, roasts and ground beef are at least 90% lean. 8. The cuts you love most - like T-Bone and Tenderloin - are healthy enough to enjoy every day. 10. A dream come true: you can eat lean beef twice a day and still eat low-fat. 14. Many of the beef cuts you love are lean. 11. There are more than 29 cuts of beef that meet government guidelines for lean. 9. The secret to a satisfying low-fat diet? Lean beef Consumer 2X as likely to note above statement would motivate additional beef consumption Note: The numbers shown are percentage most likely to be motivated to eat more beef scores that add to 100% across all respondents and within each subgroup examined. As such, the scores are on a ratio scale, meaning a value twice the size of another score means it is twice as likely to motivate. Source: Nutrition Messaging Feb

54 The Statements Like dark chocolate and red wine, lean beef is now scientifically proven to be a heart healthy food. Lean beef is good for your heart. It's true - you can eat lean beef every day and lower your cholesterol. Studies show you can eat lean beef every day and lower your cholesterol. Three of the leanest cuts proudly bear the American Heart Association's heart-check mark. Beef Tenderloin has more heart-healthy fat per serving than chicken breast. Lean beef is a delicious health food the whole family enjoys. The same kind of heart-healthy fat found in olive oil is in beef. 17 of the 25 most popular steaks, roasts and ground beef are at least 90% lean. The cuts you love most - like T-Bone and Tenderloin - are healthy enough to enjoy every day. A dream come true: you can eat lean beef twice a day and still eat low-fat. Many of the beef cuts you love are lean. There are more than 29 cuts of beef that meet government guidelines for lean. The secret to a satisfying low-fat diet? Lean beef. Aspirational stronger statements are maintain weight, lower cholesterol, heart healthy. Today s communications focus on lean Source: Nutrition Messaging - Feb

55 Overall Importance Body Benefits MaxDiff Like other messages, this indicates that body benefits that are more specific in explaining both the impact on body function and the resulting lifestyle benefit are more motivating than those touting health or lifestyle benefits without explaining the process Lean beef is a high-quality source of nutrients which rejuvenate muscles and prepare your body for what life throws at you. Lean beef helps you maintain a healthy weight, build muscle and fuel physical activity The protein in lean beef keeps your muscles strong so you can stay active and vital as you age. Eating satisfying lean beef in a lower calorie diet can help you succeed in your weight loss or maintenance goals. The protein and iron in lean beef helps build and fuel muscles The protein in lean beef can reduce the signs of aging by helping build and maintain muscle mass. Boost your metabolism naturally by eating lean beef every day Including lean beef in your diet can make you feel full longer and satisfy cravings Lean beef is great for your tastebuds and your waistline Lean beef helps keep you charged up and ready to face the world Base: Note: Each statement was evaluated by 700 respondents in a series of comparisons with 3 other statements, systematically rotated so that each statement was seen the same number of times. Each respondent evaluated one third of the statements, but multiple sets were used across respondents so that each statement was evaluated against all other statements an equal number of times across all respondents. The numbers shown are percentage most likely to be motivated to eat more beef scores that add to 100% across all respondents and within each subgroup examined. As such, the scores are on a ratio scale, meaning a value twice the size of another score means it is twice as likely to motivate. Source: Nutrition Messaging - Feb

56 Body Benefits Statements Lean beef is a high-quality source of nutrients which rejuvenate muscles and prepare your body for what life throws at you. Lean beef helps you maintain a healthy weight, build muscle and fuel physical activity. The protein in lean beef keeps your muscles strong so you can stay active and vital as you age. More specific body benefit statements are more impactful. Source: Nutrition Messaging - Feb

57 Safety Summit 57

58 Positive Trend Lines Looking back 10 years shows a positive trend in consumer confidence in the safety of both steaks & roasts and ground beef 58

59 Safety Grades for Fresh Meat Year by year % of Americans rating A or B grade for safety Fresh beef steaks & roasts Fresh ground beef 90% 84% 86% 91% 83% 87% 88% 80% 70% 74% 77% 76% 77% 75% 76% 84% 76% 80% 80% 60% 60% 66% 64% 66% 50% Source: IPSOS, Consumer Perceptions of Beef Safety, Jan

60 Consumer Confidence in Beef Safety is Strong At Supermarket and at Restaurants Q. When you think of the safety of fresh foods IN THE SUPERMARKET, which ONE of the following foods are you most concerned about? Fish & Seafood 48% 48% Chicken 15% 17% Vegetables 11% 6% Beef 10% Beef 13% Pork 9% Pork 14% Fruits 8% Fruits 3% Source: IPSOS, Consumer Perceptions of Beef Safety, Jan

61 Safety Perceptions Up Nicely Q. Compared to five years ago, are you more concerned about overall food safety, less concerned or about the same? Consumers Say Q. Compared to five years ago, are you more concerned about the safety of BEEF, less concerned or about the same? Consumers Say More Concerned 37% More Concerned 21% Less Concerned 8% Less Concerned 18% About the Same 55% About the Same 61% Source: IPSOS, Consumer Perceptions of Beef Safety, Jan

62 Experts Pathogen Concerns Have Shifted to Salmonella Q. Which of the these foodborne bacteria are you most concerned about? Which one are you least concerned about (attendees at Safety Summit)? Consumers Say Experts Say Most Least Most Least E. coli 58% 12% E. coli 31% 39% Salmonella 33% 25% Salmonella 48% 20% Listeria 10% 63% Listeria 21% 41% Source: IPSOS, Consumer Perceptions of Beef Safety, Jan

63 QUESTIONS? 63

64 Market Research Contacts John Lundeen, MBA Sr. Executive Director, Market Research / Rick McCarty, MA Vice President, Issue Analysis and Strategy / Wendy Neuman, MA Director, Market Research /

65 65

66 Methodology In the deck of cards to the left on the next screen, the statements will appear one at a time. Please read the statement, then click on the statement card and drag it to the pile that best matches your belief about beef and any action you may have taken. Your Belief and Any Action You May Have Taken You had not previously heard of this You have heard of, but do not believe this to be true While it may be true, you do not limit the amount of beef you buy because if this You occasionally limit the amount of beef you buy because of this You frequently limit the amount of beef you buy because of this (Place card here) (Place card here) (Place card here) (Place card here) (Place card here) Sample Card It is not healthy to eat beef every day. Source: Limiters of Consumption May