SECTION 1. Introducing Simply Beef and the Beef Alternative Merchandising program
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1 The SIMPLYBEEF guide to BEEF ALTERNATIVE MERCHANDISING AM SECTION 1 Introducing Simply Beef and the Beef Alternative Merchandising program This section includes target audience information and valuable industry and consumer research. For more information, please contact: National Cattlemen s Beef Association Phone: (303) or visit us at Cattlemen s Beef Board and National Cattlemen s Beef Association
2 The SIMPLYBEEF guide to AM Beef Alternative Merchandising program
3 The SIMPLYBEEF guide to BEEF ALTERNATIVE MERCHANDISING AM The Simply Beef program was developed by the Cattlemen s Beef Board and National Cattlemen s Beef Association. Funded by The Beef Checkoff 2009 Cattlemen s Beef Board and National Cattlemen s Beef Association
4 Introducing Simply Beef If there is one thing you can rely on, it s change. In the world of beef we are seeing major changes from both the consumers and the cattle producers. Today s consumers are more health conscious and food aware than ever before. They are demanding better food choices and want quality beef options that fit their busy lifestyles and budgets. And with modern technologies and diverse herd management, cattle are getting larger every day, and subprimals are becoming larger and more difficult to merchandise. These factors are creating new challenges for meat cutters and merchandisers. In response to both issues, NCBA has created the Simply Beef program. People crave beef and it has always been our goal to give consumers a satisfying steak eating experience. Results of an online questionnaire revealed that consumers increasingly seek a diet that embraces both great taste and nutrition. This group has potential for eating more beef while staying within USDA guidelines for a healthy diet. Through the Simply Beef program, we have created new cuts that support a healthy diet along with brand messaging that combines the nutritional benefits of beef with consumers passion for great taste. Under the Simply Beef umbrella program is BAM: Beef Alternative Merchandising. BAM is a merchandising program featuring two steaks, three filets and three roasts. With these versatile new cuts, BAM will help you extend your line adding a new filet category and give your customers leaner, healthy beef selections. The result? Renewed interest in beef and an increase in profits. 1
5 Target Audience Consumer Profile: The new shopper is a mindful eater. The majority of this group is female, often married, with few children under the age of 18. They are college educated and career-oriented. This food aware group wants to make nutritious and healthy choices when purchasing beef and is willing to try different foods and recipe ideas. These shoppers are well informed and value taste and convenience and are willing to pay extra for specific benefits. Demographic Target: Baby Boomers Foodies Empty Nesters Organic customers Small families Dieters Singles 2
6 Industry Research Trends supporting BAM: Smaller households- Need for individual beef sizes and smaller quantities in packaging. Simply Beef responds with 4 to 8 ounce steak and filet sizes and 1 ½ to 2 ½ pound petite roasts. According to a report by the U.S. Bureau of the Census, Baby Boomers currently make up 38 percent of the population. By 2010, Boomers will reach their 40 s, 50 s, and early 60 s, often becoming empty nesters. The overall composition of households is projected to shift, with a decreasing proportion of family households with children and increasing proportions of family households with no children and people living alone. The number of families with no children under 18 is projected to increase by 28 percent from 36 million to 46 million by Currently, slightly more than half of American families have no children living at home; by 2010, 3 of 5 families may have no children present. Source: Day, Jennifer Cheeseman, Projections of the Number of Households and Families in the United States: 1995 to 2010, U.S. Bureau of the Census, Current Population Reports, P , U.S. Government Printing Office, Washington, DC, 1996 The number of married couples with no children is expected to grow by 7 million (from 29 million to 36 million in 2010). All of the increase would occur in the 45 and over age groups. Similarly, the number of female family householders and male family householders with no children would also increase by 1 million and 2 million, respectively. 3
7 Demand for value- Need for quality beef products at a moderate price with no waste Simply Beef responds with ready-to-cook cuts that do not require trimming. Consumers are beginning to change their food purchasing patterns in response to economic changes and higher commodity prices. People are eating at home more frequently but are still looking for a restaurant quality dining experience. Total wellness- Need for balance in life, especially in health category Simply Beef responds with lean beef selections in healthy portion sizes. Overall, there is a trend toward total wellness, inside and out. Consumers are looking for balance in their lives in regards to work, family and especially nutrition as evidenced in today s portioncontrolled meals and snack offerings. Simply Beef will become a preferred choice as consumers look for lean beef selections in healthy portion sizes. 4
8 Simply Beef s BAM program responds to all consumer desires with: CONVENIENCE Busy schedules and long work hours demand quick meals. Consumers want meals that require little or no planning and are easy to make. According to NPD National Eating Trends and Snack Track, 44% of all weekday meal preparation requires 30 minutes or less. HEALTHY PORTION SIZE With no trimming or cutting needed, these cuts come perfectly portioned ideal for dieters and healthconscious eaters. All steaks and filets are packaged in 4 to 8 ounce sizes. Roasts are 1 ½ to 2 ½ pounds and can be steaked into just the right serving. NUTRITION Six out of eight cuts meet USDA requirements for lean,* and all are an excellent source of protein and iron, and naturally offer essential nutrients like phosphorus, selenium, Vitamin B12 and zinc. VALUE Today s economy demands value. Price-sensitive consumers will appreciate the value of these high-quality and moderatelypriced cuts. There s no waste every bite is edible! QUALITY Consumers are developing more discriminating palates and recognize quality. The culinary experience is essential to the meal food appearance and taste are as important as nutrition. BAM cuts are tender and flavorful, giving consumers a great steak eating experience meal after meal. * These cuts meet government guidelines for lean and are based on cooked servings with visible fat trimmed. Lean is defined as less than 10 grams of total fat, 4.5 grams of saturated fat, and less than 95 milligrams of cholesterol per serving and per 100 grams (3.5 oz). VARIETY & VERSATILITY Beef is never boring with such diverse cuts and recommended recipe ideas. Plus, these cuts fit easily into everyday recipes and family favorites. The roasts are great for daily dining, not just holidays finally, a roast for the weekdays. 5
9 Consumer Research Specific market research, funded by The Beef Checkoff, was conducted to obtain consumer reaction to the new cuts and determine preferences with regard to pricing and merchandising options. Overall, consumers were very enthusiastic toward the new cuts. Consumers immediately identified several benefits including portion control, leaner cuts, easier and faster preparation and more variety. With the exception of the roasts, consumers anticipated using these new cuts on any occasion including weeknights, weekends and entertaining. Most consumers associate roasts with Sunday dinners, holidays or special occasions. Consumers also anticipate that the new cuts would be universally appealing to all consumer segments. A higher cost was expected due to the additional labor and preparation. Consumers were most likely to purchase the new cuts in two or three packs. The group recommended creating a dedicated space in the meat case to introduce or launch all of the new cuts. Consumers thought that the new cuts would generate a great deal of shopper interest in the grocery store. Consumers were very receptive to point-of-purchase materials including recommended cooking methods and recipes. About half anticipated the new cuts would increase their overall consumption of beef. 6
10 It would lean me towards buying more. It s new; it s innovative. The ideas jump right out at you. (Female, Irvine) I would definitely be buying more beef because of the convenience factor. Like we all said from the beginning, it s just something that s easier for us to handle. So, we re going to be more apt to buy it. (Male, Irvine) I like the thickness of the cuts because it s easier to keep it rare. (Female, Atlanta) Absolutely a good idea! I like the idea of having more variety. (Male, Atlanta) I just like the idea of having more options. (Male, Atlanta) 7
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