MAY 05, 2011

Canadian Meat Council | 91st Annual Conference | Halifax, Nova Scotia

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Why Brand?

Provide strong identity/Stand out from

titicompetition

Form emotional bondForm emotional bond

Overcome price sensitivity

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Research conducted in a numberResearch conducted in a numberof key markets

JapanMexicoUnited States

Hong KongChinaGulf Region

GermanyUnited Kingdom

Gulf RegionRussia

Statistically valid buyer and consumer research

Revealed that Canada has an overall positive image, but very little is known about Canada’s food and agriculture sector

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Research shows Canada’s image canResearch shows Canada s image can provide a competitive advantage

Results showed CanadaResults showed Canada and Canadians are seen as:

Trustworthy, friendly and honestEnvironmentally savvyEnvironmentally savvyCompetent, credible, reliableSafe, high quality productsNatural, pristine environment

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The foundation of a branding strategyThe foundation of a branding strategy was in place

Canada’s existing strong image gave us a good foundation on which to build a marketing strategy

We needed to strengthen and deepen that image; invest in systems to enable the sector to more consistently deliver positive experiences

A governance body of industry leaders, provincial governments and other federaldepartments was created to developdepartments was created to develop the strategy collaboratively–International Branding Working Group (IBWG)

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Strategy

Strategy consists of three main components:

I. Define the brand

II. Become the brand

III. Promote the brand

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Define the brand

Identified and defined Canada Brand attributes based on research

Developed Brand Promise“W itt d t i t ’ t t i C di“We are committed to earning our customers’ trust in Canadian agriculture and food products every day through our relentless pursuit of excellence in all that we do.”

Developed a specialized graphic “look” for sector to use that was tested with buyers and consumers in target markets

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A d fi d l k i f th b dA defined look reinforces the brand attributes and provides consistency

Design built around maple leaf, the most recognizable of Canadian symbols (ribbon optional - suggests progress and pursuit of p gg p g pexcellence)

Tagline evokes key elements of the brand

Canadian landscapes + food photos

Plenty of white space reminiscent ofPlenty of white space reminiscent of Canada’s wide open spaces

Focus-tested in key international markets

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y

Become the brand

Taking action to ensure we can deliver the core attributes consistently and repeatedly

Live up to the Brand Promise at all touch points (customer experience with products, suppliers, promotions)

“Proof points” define strengths acrossProof points define strengths across the sector, that can be turned into selling points—e.g., Canadian Beef Advantage, Canadian Pork Story

An umbrella brand that can be customized by sub-sectors

Brand Promise provides an overall focus–other brands customize, are more specific make it real

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are more specific, make it real

Canada Brand membership requirementsq

Canadian product—grown, raised or harvested, orCanadian product grown, raised or harvested, or processed in Canada

Products produced in accordance with all relevant pCanadian regulations related to exports

National associations that receive AgriMarketing Program funds must incorporate the Brand in their promotional activities

Draft marketing material reviewed by AAFC to ensure10

Draft marketing material reviewed by AAFC to ensure compliance with graphic guidelines before printing

Tools developed to help companies/associations to incorporate

Promote the brandTools developed to help companies/associations to incorporate the Canada Brand into their own marketing strategies:

A comprehensive Branding GuideProduct fact sheets – can be printed as-is or company logo addedProduct fact sheets can be printed as is or company logo addedPhoto bank – all CanadianVideo footageReady-to-print designs for posters banners and letterheadReady to print designs for posters, banners and letterheadTrade show exhibit boothElectronic newsletter and regular news updates (Branding Matters!)Development of “www eatCanadian ca” web siteDevelopment of www.eatCanadian.ca web siteGovernment promotion of Canadian agriculture sector and attributesBuyer and consumer research in key markets (help segment target markets and position products)

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p p )

Promote the brand:Promote the brand:Significant new resources for promotion announced in September 2009p

Part of AgriFlexibilty Fund$32M, 4-year program, ending March 2013y p g g

Funds enable sustained consumer-oriented promotional activities in key markets—strengthen visibility, create consumer “pull” to

l t i d t “ h” t t icomplement industry “push” strategies

Markets—Japan, Mexico, South Korea were chosen in consultation ith i d twith industry

Industry representatives advocated a limited number of markets to support sustained promotionsSo th Korea chosen beca se of beef access iss e

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South Korea chosen because of beef access issue

Promotions based on research to…

Identify target audiencesfood purchasers in higher income households food leaders…people who like to try/learn about new foods, p p y ,talk to people about food products they have tried, read labels, etc.

Identify appropriate activities

Determine how best to position Canadian foodsDetermine how best to position Canadian foods

Identify regions where activities should be focussed

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2010 research confirmed earlier findings

Japanese consumers say Canada has a good image, is “trusted to be safe” and products are produced in a “clean environment” and “eco-friendly manner” butclean environment and eco friendly manner , but…

low awareness of Canadian food in Japan

Mexican consumers have an excellent perception ofMexican consumers have an excellent perception of Canada as a country, but…

Mexican consumers do not know what Canadian foods are in their market

Food safety is paramount in KoreaCan be associated with Canadians’ trustworthy reputation

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Canada Brand logo recognizedCanada Brand logo recognizedin Japan…

%What does this image %

Canada 30

Maple tree/Maple leaf 29

Maple leaf flag 24

What does this image mean to you?

Maple leaf flag 24

Symbol/Image/Mark of Canada 10

Maple syrup 9

None, Don’t know 4

%Made in Canada/From Canada 51What would you think Made in Canada/From Canada 51

Safety/Trust 5

Interest/intend to pick up/eye-catching 4

Easy to understand (it is Canada) 3

What would you think about food products if you saw this symbol on it?

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Easy to understand (it is Canada) 3

None, Don’t know 18

on it?

and also solid recognition of the logo…and also solid recognition of the logo amongst Mexican consumers

%

Canada 37Please tell me what this image means to you? Canada 37

Leaf (e.g. Maple, Vine, Tree, etc.) 34

Canada Flag 13

image means to you?

Canada Flag 13Emblem/symbol of Canada 9

Clover 4Flower 2

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Promotional activities customizedPromotional activities customizedby market

Media relations activitiesidentify key journalists to invite on food and beverage familiarization tours of Canadadevelop stories to pitch to media to generate earned media (e g fooddevelop stories to pitch to media to generate earned media (e.g. food safety system, environmental practices, two-way trade in food)

Public relations activitiesb h i t f l t i l i d tbrochures, point-of-sale materials, recipe cards, etc.Special events, i.e.: Canada Day BBQs

Influencer campaignsInfluencer campaignsleverage influencers: build relationship and explore endorsement agreements for media outreach and event activitieschef-to-chef culinary exchanges

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Market-specific activities will also include…

Point-of-Sale promotionswork with key supermarkets to create Canadian sectionsrestaurant chain promotions: form partnerships with popular family restaurants to introduce Canadian ingredients and mealsintroduce Canadian ingredients and meals

On-line presencespecific to each countryinfo on Canadian food recipes chef tips etcinfo on Canadian food, recipes, chef tips, etcemploying social media tools

Targeted advertising—all in conjunction with specific promotionsTV hi• TV program sponsorships

• newspapers/magazines • on-line advertising based on search-engine key words• advertorials (i.e. paid ads/articles in key publications)

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P ti C di d t i C dPromoting Canadian products in Canada

As international Canada Brand strategy gained ground, industry interest grew in a similar strategy for the domestic market

$1.5 million under Growing Forward for the Canada Brand Domestic Initiative (CBDI)

Helping Canadian consumers to find and buy Canadian products

B ild d t di dBuild understanding and awareness of Canadian advantages

C t i t

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Counter imports

Domestic Canada Brand ResearchDomestic Canada Brand Research

Shopping simulation undertaken to answer two fundamental questions:

Consumers say they want to buy Canadian—but is there a difference between what they say and what they do?

What is the best way to promote the Canadian origin ofWhat is the best way to promote the Canadian origin of food products, in line with revised food labelling guidelines?

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Average Time Spent on Category: 27 seconds

38% 24%

Strawberry Jam

38%

16%

24%

16%

24%

0.63

10%

0.42

Selection$2.49

Made in Canada From Domestic and Imported Products (Side)

Irresistible$3.29

No origin mention

8 sec. 11 sec.

45%

18%

44%

16%

35% 31%

21E.D. Smith$3.49

Made with 100% Canadian Strawberries (Front)

Smuckers$4.59

No origin mention

0.78

7 sec.

0.70

6 sec.

Brand plays more of a role than price inBrand plays more of a role than price in the actual shopping choices of consumers

60%

46%National

Brand Price

19%

60%

22%Premium

22%

21%

20%

2nd most

Mostexpensive

12%

19%Store Brand

29%

33%

33%2nd leastexpensive

expensive

10%

13%

0% 10% 20% 30% 40% 50% 60% 70%

Store Premium In samplePurchased 17%

26%

0% 10% 20% 30% 40% 50% 60% 70%

Leastexpensive

In samplePurchased

22*In sample refers to all products (for all categories) that exist in the sample populationPurchased refers to the proportion of products that were selected (bought) by respondents

A Canadian ingredient statement (i.e. apple g ( ppjuice that includes the statement “made with 100% Canadian apples”) provides a lift in sales

26%

11%Canadianingredients

26%

10%

23%

Processed in

Product of Canada

14%

5%

14%Imported

Canada

In sample

Purchased

29%

41%Undefined

2323

0% 10% 20% 30% 40% 50%

*In sample refers to all products (for all categories) that exist in the sample populationPurchased refers to the proportion of products that were selected (bought) by respondents

Inclusion of a maple leaf provides a lift in sales -p pespecially for national brands

17%All products

22%

29%

11%National

All products

2%

22%

3%Premium

5%

3%StoreEconomy

0%

0%

0% 10% 20% 30% 40% 50%

StorePremium

In sample

Purchased

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% % % % % %

*In sample refers to all products (for all categories) that exist in the sample populationPurchased refers to the proportion of products that were selected (bought) by respondents

Positioning a prominent Canadian origin label atPositioning a prominent Canadian origin label at the front of a product lifts sales

15%

7%

31%

8%

15%

Prominent & other

Prominent & front

0%

11%

2%

Not prominent &

Prominent & bothIn sample

Purchased

26%

10%

26%Not prominent &other

pfront

26%38%

0% 10% 20% 30% 40% 50%

No origin labels

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*In sample refers to all products (for all categories) that exist in the sample populationPurchased refers to the proportion of products that were selected (bought) by respondents

“Made with 100% Canadian apples (or other pp (ingredients)” has the most positive impact on the decision to buy a product

48%Made with 100% Canadian apples or other

specified ingredients

6%

28%Product of Canada

Prepared in Canada

M d i C d ith d ti d i t d6%

3%

Made in Canada with domestic and importedingredients

Processed in Canada

2%

7%

Packaged in Canada

None of the above

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Q6. Which one of the following statements on a processed food label would most positively affect your decision to buy that product? Base: Total Respondents (n=1,713)

A strong majority of consumers claimed that it isA strong majority of consumers claimed that it is important for Canadian origin information to be displayed on labels

51%5 ‐ Very Important

15%

30%4

3

3%

15%3

2

2%1 ‐ Not at all important

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Q7. Using a five point scale where 1 means "Not at all important" and 5 means "Very important", how important is it to you that Canadian origin information be prominently displayed on product labels or packaging for food products?Base: Total Respondents (n=1,713)

Domestic research conclusionsCanadian consumers say price a key factor in b i d i i b t i ti b d d

Domestic research conclusions

buying decisions, but in practice, brand and Canadian origin are as or more important

Canadian shoppers influenced by a maple leafCanadian shoppers influenced by a maple leaf and Canadian content statement

Results in a lift in sales

Maple leaf attracts eyes, content statement gives customers the information they want

Most credible, understood statement is “Made with 100% Canadian X”

Even better understood than “Product of

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Even better understood than Product of Canada”

D ti C d B d il t j tDomestic Canada Brand pilot projects

Th i t il t j t d t dThree in-store pilot projects conducted to identify best means of promoting Canadian food products

Branded point of sale materials (signs, shelf talkers and stickers) identified )Canadian products

Consumers and retailers responded positively to theConsumers and retailers responded positively to the promotion of Canadian products…and sales of the identified products generally increased

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Stickers more effective than shelf-talkers—proxy for labels

Domestic Canada Brand—Next Steps

Finalize Usage Agreement, clarify permitted statements and conditions for use in coordination with CFIA

Develop www.eatCanadian.caVideos:

o farmer and processor testimonialso gate-to-plateo explanation of various label statements

All-Canadian recipesP t ti l f C diPotential exposure for Canadian companies/brands

Explore promotional opportunities in partnership with

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Explore promotional opportunities in partnership with stakeholders

Conclusion—moving aheadConclusion—moving ahead in partnership

Newer research reinforces existence of Canada’s embedded, positive image abroad—and the predisposition of consumers here in Canada to buy Canadian

Continuing to build and promote the Canada Brand for agriculture and food d t l th iti ti d i lproducts can leverage these positive perceptions and increase sales

Through the umbrella Canada Brand, awareness of Canadian products has been improved...and we are doing more…but industry involvement is critical

By becoming a Canada Brand member, you can access the distinct graphics to brand yourself as Canadian and access a variety of market research and tools

www.marqueCanadaBrand.agr.gc.cawww.eatCanadian.ca

Through the International Branding Working Group and other consultative mechanisms, we look forward to continuing to work in partnership with industry to grow Canadian sales and strengthen the sector

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grow Canadian sales and strengthen the sector

MAY 05, 2011

ma q ecanadab and ag gc ca

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www.marquecanadabrand.agr.gc.ca

www.eatCanadian.ca