evolution of success: how mla and the campaign … mla and the campaign palace achieved a 5 year ......

Evolution of success: How MLA and The Campaign Palace achieved a 5 year turnaround in Red Meat

0� The Campaign Palace Meat&LivestockAustralia2007

Contents

Executivesummary 03

Background 04

Thestrategicchallenges 07

Fiveguidingprinciples 09

Thebusinessgoalandstrategy 12

Communicationstrategydevelopment 13

Campaigneffect 28

Othervariables 40

Conclusion 41

Appendix 42


OnlyadecadeagomanyAustraliansbelievedeatingRedMeatwaslikesmokingcigarettes–ifonedidn’tkillyou,theotherwould.

Sincethen,apotentcampaignconductedin2phasesischangingattitudesandbehaviour,underpinningsignificantgrowthinredmeatdemand.

Fromaconvictionthattheyshouldlimittheamountofredmeatinthehome,Mumsincreasinglybelieveitisessentialforwell-beingandarewellontheirwaytoservingredmeat3-4timesaweek.

Infiveyearssincelaunch,decliningdemandhasbeenturnedaroundandannualconsumerexpenditureonredmeathasgrownfrom$6.3billion(2001)to$8.7billion(2006)–amassivegrowthof$2.4billionperyear.

Althoughseveralfactorshavecontributedtothisgrowth,thechangeinthenutritionalreputationofredmeathasbeenhighlysignificant.Basedonconsumerexpenditureanddemandmodels,this5year,$4-5millionp.a.campaignhasbeenthecatalystforanoutstandingcumulativereturnof$3.4bn(2001–2006).

Theconsumercampaignhasevolvedsincethe‘RedMeat.FeelGood’(RMFG)launchinFebruary2002.LearningsfromRMFGledtothedevelopmentofanew,moreprovocative’Weweremeanttoeatit’campaign,launchedinMarch2006.

Thispaperhighlightsthepowerofcontinuallyreviewingandchallengingthecommunicationsstrategy,basedonconsumerinsightsandcampaignlearnings.Itdemonstratesthevalueofconfrontingnegativeattitudeshead-onwithpowerfulmessagesandbreakthroughcreative.

Executive summary


PriortotheRedMeatFeelGood(RMFG)campaign,consumerdemandforredmeathadbeeninlong-termdecline.Inspiteofshorttermsuccesses,thedeclinecontinuedinexorably.ThreemainforceshelpeddepressdemandandundermineconfidencethroughouttheRedMeatindustry:

1. Concernsaboutredmeat’shealthvalue 2. Inconsistenteatingquality 3. Declineinretailbutchers

1. Concernsaboutredmeat’shealthvalueInspiteofthesuccessoftheearlier“Iron”campaignforbeef,redmeatfacedanincreasingstreamofunbalancedandnegativepress,allcondemningredmeatonthebasisofnegativehealthoutcomes.Thiscontinuousflowof‘eatlessredmeatforhealth’messagescreatedanincreasinglynegativeenvironmentforredmeatmarketing.

Comparedto1997,consumerattitudeshaddeterioratedsharplyby1999.Intwoyears,overallredmeatnegativeshadalmostdoubledfrom22%to41%.

Background

0% 30% 60% 90%

Red Meat negatives22%

41%

79%

55%

72%

63%

199756%

43%

Iron positives

Goodness

Enjoyment

Red Meat Consumer Impression Points Summary

1999

Source: Dangar Tracking Study, 1997 and 1999.

Red Meat Consumer Impression Points Summary


Background

2.InconsistentEatingQualityConsumerscontinuedtoexperiencevariableeatingqualityforbeef,affectingdemand.Whileearliercampaignssuchas“LoveMeTender”hadmadeanadvertisingimpact,theconsumerexperiencedidnotalwaysmatchthepromise.

3.DeclineinRetailButchersRetailbutchershadtraditionallybeenthefrontlinesalesforcefortheredmeatindustry.Assupermarketsgrewshareandconsumerslosttheirpersonalinteractionwiththeirbutchers,consumerknowledgeofmeatandappreciationofdifferentcutsdeclined.Thisledtofallingsatisfactionandgreaterpropensityforalternativefoods.Fallingre-investmentbybutchersintheirbusinessescompoundedthis.

Retail Butchers in Australia

7,000

6,000

5,000

4,000

3,000

2,000

1,000

01988 2006


Background

Inspiteofshorttermspikesinconsumerdemandassociatedwithcampaignssuchas“Iron”and“TrimLamb”,longtermdemand*continuedtodecline.Heavyindustryinvestmentinadvertisingduringthistimehadn’talteredthistrendandindustryconfidenceinadvertisingwasshaken.

Freshthinkingwasneeded.

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Demand prior to campaign in long-term decline

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per capita consumption

Demand

falling

1980

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2000

Source: MLA.

*SeeAppendix:ConsumerDemandModelling

Beef demand prior to campaign in long-term decline

=0.67


The strategic challenges

Turningaroundamajor,ubiquitousandcomplexcategorylikemeatwasonlygoingtobeachievedbyaddressingthefundamentalcausesofthedecline.“Clever”adshadbeentried,andfailed.

Challenge1–Quality:In1998,MLAandtheindustryembarkedonamajorqualityprogram,encouragingproducerstothinkofthemselvesasbeinginthe“foodbusiness”,notthe“cattlebusiness”.Amajorresearchprogramidentifiedthecausesofvariabilityineatingquality,leadingtheindustrytobuildeatingqualityparametersintotheirspecifications,notjustpriceandyield.

Consumerconfidenceinthequalityofbeefandlambisnowthehighestofallmeats.

Challenge2–Butchers:Stalesupermarketmeatpresentationandthedeclineofbutcherswereaddressedwitha“RaisingTheStandard”strategy–reinforcingtheimportanceofmeatforsupermarketsandshowcasingworldmeatmerchandisingtrends.Thishelpedmeatmanagersdevelopnewapproachestoquality,range,presentationandpromotion.

AnewRedMeatNetworkingClubidentifiedprogressivebutchers,helpingthemdevelopnewstorestandardsandmarketingpractices.Acrucialbenefitofour“SingingButchers”TVCwascelebratingthepridethatbutchersfeltabouttheirprofession.

Incontrasttotheirlong-termdecline,retailbutchersarenowgrowingshareandreinvestingintheirbusinesses.


The strategic challenges

Challenge3-Addressingthelongtermandgrowingnegativehealthperceptionsaroundredmeat:ThiswasthetaskofourRedMeatcommunicationscampaign.

Wefacedtwokeyissuesinredmeathealthmarketing.Firstly,limitedmarketingfunds-comparedtothemajorfoodmarketers,MLAhadfarlesstospend.

RedMeat’sbudgetcouldonlybuya1½minuteconversationwith80%ofAustraliansoverafullyear.Clearlythecommunicationwouldhavetopunchwellaboveitsweight.

Thesecond(larger)challengewasthatofdealingwithadietarystaple–routinelypurchased,inacategorywithlittleexcitementorretailerinnovation-howtogetpast‘non-think’behaviouranddeeplyembeddedbeliefs.

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Comparative Food Marketers Media Spends 2002

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Dom

inos

Ric

e/P

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Comparative Food Marketers Media Spends 2002


Five guiding principles

Fiveprincipleshaveconsistentlyguidedeverythingwedo:

1.CommunicationIntegrity.Allcampaigninformationmustbebackedupbysoundscienceforlong-termcampaigneffectiveness.

TheRMFGcampaignwasbasedonthefindingsofanExpertAdvisoryCommitteeReport(‘TheroleofRedMeatinhealthyAustraliandiets’)publishedinFebruary2001.Thisevidence-basedreportdebunkedmanyoftheprevalentmythsaboutredmeatconsumption(‘makesyoufat’;‘causesheartdisease’)andrecommendedAustralianseat3-4redmeatmealsperweek.Thisbecametheconsumptionfrequencygoalfornutritionmarketingactivity.

Ongoingresearchinvestmentandconsultationwithworldexpertscontinuesbuildingourunderstandingofredmeat’snutritionalbenefits.

2.KeyopinionleadersBuildingandmaintainingrelationshipswithkeyopinionleaders(keyexpertsandhealthandnutritionorganisations)isessential.Ongoingcommunicationwiththeseorganisationsensuresaccuracyinourmessages,supportforthesemessagesandconsistencyinredmeatcommunicationwithinthehealthcommunity.


3.Alertinghealthprofessionalswithnewredmeatandhealthinformation.GPsanddietitiansaremajorinfluencersonconsumerattitudestohealthandnutrition.Wecommunicatetotheseimportantinfluencerspriorto,andduringthecampaigntoensuretheyareabreastofthenewinformationandsupportthekeymessages.

4.Emotionallyengagingconsumercommunication,notjustrationalinformation.Thereisplentyofnutritionadvertising,mostofwhichisjustnoiseandclutter.Itismainlyrationalandtonallyoverlyworthy.Unsurprisingly,itpassesconsumersbywithlittleeffect:

“We hear so much about nutrition these days. Most just washes over me.”

“I don’t want to hear about daily nutrients. We hear the same for cereals, bread and dairy. It’s just getting on the bandwagon.”

Bycontrast,largestrideshavebeenmadeinunderstandingmessageprocessing.Thisnewlearningrecognisestheimportanceoffirstengagingemotionallypriortotryingtoimpartrationalinformation.(Kahneman,Gordon)

10 The Campaign Palace Meat&LivestockAustralia2007


5.Passionforbreakthroughstrategyandadvertising.Adedicatedandpassionateteam,whoarenotafraidtobreaknewgroundandchallengeconventionalthinking.

Advertising TheCampaignPalace

MediaPlanning TheMediaPalace(2002),BellamyHayden (2002–2006)

MediaBuying Zenith(2002),UniversalMcCann (2003–2006)

PublicRelations FleishmanHillard(2002–2005),Hausmann (2005–2006)

MarketResearch TheLeadingEdge(2002–2006), MilwardBrown(2006)

LizDangar(2002–2003), JulieDang(2004–2006)

StreetTheatre Maverick

11 The Campaign Palace Meat&LivestockAustralia2007

The business goal and strategy

MLA’sover-ridingobjectiveforallmarketingcampaignsistogrowdemandforbeefandlamb.

Toachievethis,MLAsetinplace2parallel,complementarystrategiesintendedtogrowBeefandLambdemand.Thefirststrategy(thefocusofthispaper)istoremovebarrierstoconsumption.

Thesecondstrategyistopromotemealenjoyment(roleofthebeefandlambbrands)

NutritionReasons to

embrace

Meal IdeasReasons to

cook

TasteReasons to

enjoy

ConvenienceReasons to

buy

Role for Red Meat NutritionCampaign

Role for Beef and Lamb

Remove barriers

Promote enjoyment


Role for Red Meat Nutrition, Lamb and Beef

Communication strategy development

TheobjectivefortheRedMeatNutritioncampaignwastoreducebarrierstooverallredmeatconsumption.

Wedevelopedalong-termprogram,knowingitwasamajorchallengetoturnarounddeeplyentrenchedconsumerhealthbeliefs.Thiswasnotgoingtobequickoreasy!

Phase1:‘RedMeat.FeelGood’StrategyDevelopment

Thecampaignstrategyaimedtopositionredmeatasasourceofvitalityandwell-beingandtocapturethejoyofliving.

Weranextensivequalitativeresearchwithourtarget(motherswithkids5-17).Weuncoveredasignificantshiftinthinking–healthwasbecomingmuchmorethandiseasecontrol,butalsoaboutvitalityandwell-being.

Thechallengewastocommunicatethepositivenutritionstorywithafeel-goodtake-out.Thisledtothecreationofthe‘RedMeat.FeelGood’(RMFG)campaign.

RMFGCampaign

ThisisafullyintegratedcampaignledbyTV,includingprint,onlineandPOS.ItcommencedinFebruary2002.The“DancingButchers”executionwastheflagshipcreativeandraninall3years.



We open on a busy city centre street. There are lots of people mulling about.

We hear and catch glimpses of a group of people who are singing and chanting.

As the singing group come through the crowd we see they are a group of butchers who are handing out recipe cards...

...and singing the benefits of red meat… Chant…high in iron, high in protein...

M/VO: To attain an overall sense of vitality and wellbeing you need iron, omega �'s, protein, zinc and vitamin B1�.

M/VO: All of which you can get from your local butcher. Eat lean red meat at least � to � times a week and you'll feel better for it.

We cut to the butchers dancing to ‘I Love to Boogie’

We cut to: Super: Red Meat. Feel Good.

DancingButchers–45secTVC


Print,POS&poster


Theongoingchallenge

Phase1wasextraordinarilysuccessful,andwasawardedtheAFA’sGoldPinnaclein2003.Itshiftedconsumerattitudessignificantlyandhelpedgrowredmeatdemand.

Oursuccessledmoremarketerstoalsoadopta“feelgood”positioning,makingitharderforustostandoutintheincreasingclutter.

Thecampaignincreasedredmeat’spositiveprofileinthecommunity.Thisalsohadtheeffectofdrawingoutmeat’scritics,whobecamemoreaggressiveinpushinga‘limitredmeatintake’message.

Astheenvironmentbecamemorepolarised,itwasclearthatweneededtoreviewthecommunicationsstrategyandaimforahigherground–migratingfromthe‘feelgood’positioningto‘essential’.Weneededtostrengthenconsumerrecognitionofredmeat’sessentialnaturetoensurecriticismofredmeatgainedlimitedtractioninthecommunity.

Wecommencedamajordiscoveryprogram,reviewingallourquantitativeresearchandcommissioningqualitativeresearchwithJulieDangin2004.

Weidentifiedfourattitudinalsegments;

Identifyingstatement

I enjoy red meat, it’s an important part of my diet

I like red meat well enough. It’s a regular part of my diet

I do eat some red meat although truthfully, it wouldn’t fuss me if I didn’t

I rarely eat red meat

Definition Appreciator Acceptor Resistor Rejector

Average red meat serving frequency per week

3.6 2.8 2.2 1

30% 38% 27% 5%Proportionof targetmarket


Areviewofourtracking(TLE,2005)revealedagem-itwasclearthattheRMFGcampaignhadimpactedmostsignificantlyononekeyconsumersegment-‘Appreciators’-whorepresentaroundone-third(30%)ofMums.TheRMFGcampaignaffirmedtheirdesireandenjoymentforredmeat,andinaclimateofincreasinglyhighredmeatprices,theRMFGcampaignprovidedthenutritionallegitimacytocontinuetoserveredmeat3-4timesaweek.

However,tofurthershiftattitudesandgrowdemand,weneededtotackletwoadditionalkeyconsumersegmentswhowerecontinuingtorestrainredmeatintake–‘Acceptors’and‘Resistors’.‘Acceptors’representedaround38%ofMumsandalthoughenjoyingredmeat,wererestrictingintakeforbalanceandhealth.Theyconsumedredmeat2-3timesaweek.‘Resistors’representedaround27%ofMumsandthoughtthatredmeatisOKbutrestrictittoaroundtwiceaweek.Resistorsactivelyrestrainedintakebelievingeatingredmeatisnotnaturalandtheycangetthebenefitselsewhere.

Anew,morechallengingcommunicationsplatformwasrequired.Itwastimeto‘uptheante’.



Breakthroughconsumerinsight

EarlyqualitativeresearchrevealedthattheRMFGadvertisinghadleftAcceptorsandResistors‘feelinggood’,butnotconvincedtheyneededtochangebehaviour.Thecampaigndidnotchallengetheirexistingbeliefsaboutfrequencyofconsumption.Inanutshell,redmeatneededtogetmoreseriousinitscommunication,morehard-edgedtobetakenseriouslyandprovokeamajorshiftinthinkingandbehaviour.

TheresearchuncoveredasignificantinternaltensioninAcceptorsandResistors.Thisbecamekeytotheevolutionofthestrategy.Thereisambivalencetoredmeatcharacterisedbymixedemotions.Thesewomenarecontinuallytornbetweenthe‘positive’and‘negative’ofredmeat.

WhetherMumsareAcceptorsorResistorsdependsonwheretheweightoftheir‘internalargument’tips.

• Enjoyable, ‘like the taste’

• Good for you, rich source of nutrients, essential for goodhealth and vitality

Positive Values

• Impact on weight, heart health,bowel health

• Unnatural – ‘we weren’t meant to be carnivores’, doesn’t digest well

• Sits heavy, weighs you down

Negative Values

The internal tension:Acceptor/Receptor status depends on where weight of the ‘internal argument’ tips

Argument for eating

Argument for limiting consumption

Source: Julie Dang Research.



The internal tension

Thechallenge–howtoengagethesetwogroupsemotionally?Howtostripawaythenegativeswhichcurrentlyroadblock‘goodfeelings’fromencouragingconsumption?Ofthenegatives,whichisthetruebogeyman?

Resistorsprovedkey.WefoundthestrategicideaforResistorswouldworkacrossallsegments.

“Indications are that this segment (Resistors) is unlikely to reconnect with the positive values of red meat (both health and experiential) until the ‘unnatural’ issue is addressed. Only then are they likely to entertain the notion of eating more often.”

JulieDang,December2004



Breakthroughinsight:Thescience

Sohowessentialisredmeattomodernman’shealth?Isitnaturalformantoeatredmeat?AndhowdoweconvinceAcceptorsandResistors(andretainAppreciators)?

Again,weturnedtoscience,consultingworldexpertsinanthropology,paleolithicnutritionandarchaeology–includingProfessorsRobertWinston(London),LorenCordain(Colorado),MichaelRichards(Leipzig)andDrMarkHorton(Bristol).

Weuncoveredanessentialtruththatwasnotwidelyknown,thatredmeatwasessentialtohumanevolution.That,whenmandescendedfromthetreesandstartedtoeatredmeat,humanscametobe.

Simplyput–thedifferencebetweenmanandapeisredmeat.

�0 The Campaign Palace Meat&LivestockAustralia2007


ThepropositionforPhase2Communication

Redmeatisthefoundationfoodofourevolution

CreativeDevelopmentresearch

Thisisaconfrontingpropositionandeventhoughfactuallyright,weknewpeoplewouldfinditchallenging.

Earlycreativeconceptresearch(JulieDang,2005)found:

1. Theconceptthatmanismeanttoeatredmeatisconfronting.

2. Itsimplicationthatwithoutredmeatwewouldnothaveevolvedbeyondapes,causesrealdiscomfortformany.

3. Theexecutionneedstobewatertight–itcausessuchdiscomfortthatpeoplelookforawaytoavoidengaging.They’dprefertoescapethecommunicationratherthanacknowledgethetruthitcontains.Inaccuracyorcarelessnessinexecutionwouldgivethem‘wriggleroom’allowingthemtoreducetheirinternaltensionbydismissingthecommunication–classiccognitivedissonance.

Toquotebutoneexample,anydepictionofcavemengavepeople‘anout’:

“Well cave men didn’t live very well or very long - did they?”Acceptor:JulieDang2005



Oneofourkeycreativechallengeswashowtocommunicatesuchaseriousmessageinanemotionallyengagingmanner.Inresearchweidentifiedtwokeyexecutionalclues.

1. Engagingandcrediblepresenter.Weexploredarangeofcandidatesandidentifiedtheperfectpresenter–SamNeill.Thiswashisfirstforayintoadvertising–becausehebelievedwholeheartedlyinthemessage.Hiscredibilityandlikeabilityhaveprovenintegral.

2. Retainthe“feelgood”payoff.The‘RedMeatBoogie’wascoretotheRMFGcampaign,encapsulatingthebenefitsofeatingredmeat.TheinclusionoftheboogieattheendofeachTVCensureswecontinuetocapturethefeelingofvitalityandwellbeingredmeatprovides.

CreativeEvaluationResearch

Recognisingtheneedtobe‘watertight’,weresearchedthefinishedadvertisingtoexcludeany‘wriggle-room’.

Thecommunicationworkedwellacrossourthreekeyconsumersegments,‘Appreciators’,‘Acceptors’and‘Resistors’.Itforcedallgroupstore-evaluatetheirredmeatbeliefs,shiftingredmeatfrom“good”to“haveto”andprovidingpermissiontoeatmoreandfeelgoodaboutit.

�� The Campaign Palace Meat&LivestockAustralia2007


Theverbatimsspeakforthemselves:

“It’s saying if we didn’t eat it then, we’d still be dragging our knuckles… and I believe that from everything I know…and it’s giving you a pretty good reason not to stop…”

Appreciator:JulieDang,2005

“I’ve always secretly loved red meat but I know we are not supposed to eat it that much..that’s what everyone says..it’s a relief to know you should eat it 3-4 times a week..it’s natural after all.. that leaves me thinking I should eat more”

Acceptor:JulieDang,2005

“It evokes me to question my belief when I look at the big picture… it is quite a compelling argument … it makes me confront how we did evolve, if not for red meat...”

Resistor:JulieDang,2005

JulieDang’sownsummarywas:“The message evoked an impassioned response, being described as deep but clever, bringing it all back to the ‘foundations’ of ‘the most highly developed creature on the planet’.”-inthewordsofarespondent:“We didn’t get there on grass.”



Phase2Communication–‘RedMeat.Weweremeanttoeatit’

ThesecondphaselaunchedinMarch2006asafullyintegratedcampaignwithablendofbrandandtacticalelements.ItisexpressedinarangeofchannelsincludingTV,magazine,onlineandPOS.

Theflagshiptelevisionadis:60second“Evolution”whichtellsofRedMeat’sroleinhelpingmanevolvefromapes.Itranthrough2006intandemwith“Library”–specificallytalkingtoMumsaboutchildren’sbraindevelopment.

Thereareotherfocusedtopicstorunin2007and2008.



RedMeat–Weweremeanttoeatit–"Evolution"TVC


Open on Sam Neill sitting in a tree. He clings to a branch as he talks to camera. SN: “Over � million years ago, our ancestors took a giant leap. They jumped out of the trees and started to eat red meat.”

Cut to an evolution sequence showing an ape turning into Sam Neill. SN: “The natural proteins helped our brain grow…hunting forced us to think...red meat was helping us come to be.”

Cut to Sam Neill standing outside a suburban home at night. He peers through a window and observes a family as they eat dinner. SN: “Lean red meat �-� times a week is still a central part of the diet of the most highly developed species on the planet”.

Cut to the son gnawing on a cutlet in a primitive fashion. The mother shoots the son a dirty look. He then takes the remains out of his mouth and places it back on his plate.

Sam Neill turns to camera and shrugs SN: “Red Meat. We were meant to eat it.” Cut to the butcher, the family and Sam Neill dancing.

Cut to Sam Neill in a butcher store. Two customers are waiting to be served. SN: “We instinctively desired red meat for its nutrients. Omega �’s, zinc, iron, and B1� provided us with vitality and wellbeing”.

Cut to appetising meal. SUPER: � to � times a week. SUPER: Red meat. We were meant to eat it


Sam Neill is in a primary school library surrounded by long desks of studious boys and girls. In line with library etiquette, he whispers to camera: SN: “When our early ancestors – the Homo Habilis, started to eat red meat, our brains began to grow”.

A student reaches for a book that’s sitting on a high shelf. She opens it and points out something to this friend.

Student: (quietly) “But here it says: Homo Rudolfensis”.

Sam Neill turns to camera as self-doubt spreads across his face. SN: “Red Meat. We were meant to eat it”.

Cut to appetising meal. SUPER: � to � times a week. SUPER: Red meat. We were meant to eat it

Cut to students and Sam Neill dancing

SN: “Today, lean red meat is just as important. Its nutrients – Omega �’s, iron, B1�, are still essential for brain development. If Homo Habilis hadn’t eaten red meat, our brains wouldn’t be the size they are today”.

RedMeat–Weweremeanttoeatit–"Library"TVC

Hardhittingmagazineprovidesextrainformationforthoseinwhomthetelevisionhaspromptedadesiretoknowmore.


Magazine

POS

Campaign effect

Thislong-termcampaignhashadamajorimpactonconsumerattitudesandhascontributedsignificantlytoanincreaseinoverallredmeatdemand.Itisdifficult(perhapspointless)totrytoisolatethisimpactseparatelyasithasformedoneofthecentralpillarsoftheredmeatturn-aroundstrategy.

Itisclear,however,thatthiscampaignhasbeenthecatalystforafundamentalre-thinkofredmeatbyconsumersandthetrade,supportedandsustainedbyimprovingquality,risingretailstandardsandfurthercampaigndevelopment.

• Theturn-aroundcoincideswiththelaunchoftheRMFGcampaignin2002,whilethequalityandretailstandardsactivitieshadbeenbuildingearlier;

• AninitialimpactofaboostinshareinMarch2002accompaniedthelaunch;

• Whileearliercampaignshaveproducedsimilarshorttermresponsesindemand,thiscampaignisuniqueasgrowthhasbeensustained.


Campaign effect

FinancialImpact

Consumerexpenditureonredmeathadbeenrelativelystableoveralongperiodoftime,butrosesomewhatin2001duetohighglobalbeefprices.However,inresponsetothesehigherprices(retailpricesup16%),percapitaconsumptionfellpredictably,toitslowestpointonrecord.

WiththelaunchoftheRMFGcampaignearlyin2002,beefvolumesjumpedextraordinarilyby9%inthefaceofevenfurtherincreasesinretailprices,upanother8%.Thisremarkableperformancehascontinued,withvolumesrisingby14%andretailpricesby27%sincethelaunchofthecampaign.

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Volume 14%

‘RMFG’ campaigncommences

Red meat “We were meant to eat it”

campaign commences


Beef prices and volumes up

Campaign effect

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$5.2b

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$4.8b

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Beef Mutton Lamb


Consumerexpenditureonbeefhasincreasedfrom$4.5bnin2001to$6.5bnin2006.Expenditureonlambincreasedfrom$1.4bnto$1.9bnoverthesameperiod.

Consumer expenditure

Campaign effect

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

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Lambhasenjoyeditsownadvertisingcampaign.WhileitisdifficulttoisolatethepreciseeffectoftheRedMeatnutritioncampaignfromLamb’sownadvertising,thelambdemandchartshowsastrongupturnin2002coincidingwiththelaunchof“RMFG”.

Lamb demand up

Bycontrast,Beefhadnoadvertisingofitsownovertheperiod.ThisgivesusacleanreadoftheeffectofthecampaignonBeef.Thisfirmsourbeliefinthecampaign’scontributiontolamb’ssuccess–itsroleinmakinglambpromotionworkharder.

Beef demand up

Highest since 1990

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

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Beef demand up


Campaign effect

BothBeefandLambDemandhavereachedtheirhighestlevelssince1990.ConsumerDemandisnowrecoveringthedeclinesofthe‘80sand90s.

AttitudinalImpact

Mums’attitudeshaveclearlyimproved.Whileourtrackingdatahaslostsomesensitivity(duetomethodologyandsupplierchanges),onapre/postbasis,theeffectofthecampaignisclear.

Redmeatisnowpositionedinconsumers’mindsasanessentialfood:

– anessentialpartofahealthydiet(87%)– needstobeeaten3-4timesaweek(62%)– “veryhealthy”(56%).

Alltrackinghasbeenquantitative.

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The Campaign Effect: Strong Demand Rebound in Beef

Campaign effect

Phase1improvementsweremeasuredonapre-post,face-to-facebasis(2005wasagapyearwithvirtuallynoadvertisinginwhichsomedeclinesareevident-Prof.Kotler’slawsofslowlearningandfastforgetting,perhaps?).

Phase2methodologychangedtoCATIbutstillshowsmarkedpre-postshifts.WeofferasecondpostwaveforPhase2buturgecautionduetochangesinbothsupplierandmethodology–resultsofthiswavearedirectional.

Mumsarenowlessinclinedtolimitconsumption.Theirconfidenceinredmeat’snutritionhasimprovedmarkedly(thetrackinghighlightstheimpactofthe2005‘gapyear’togetherwithadversePressduringourfieldwork,settingattitudesback).


Pre-post advertising attitude shifts for phases 1 and 2

Phase1 Gapyear Phase2

PreFeb02 PostDec032005

Sept05PreMarch06

Post1July06

Post2Nov06

Verypositivedisposition 45% 54% 43% 47% 58% 71%

“Redmeatisveryhealthy” 37% 47% 28% 35% 47% 56%

“essentialpartofahealthydiet” 58% 71% 70% 75% 80% 87%

Facetoface* CATI* Online**

*TheLeadingEdge**MillwardBrown

Campaign effect

Importantly,thecampaignhasshiftedtheattitudeswesetouttoinfluence.Inremovingbarriers,ithasopenedmoreMums’heartsandmindstoredmeat.ThechartbelowshowshowPhase2isconvertingResistorstoAcceptorsandAcceptorstoAppreciators,insodoingraisingaveragefrequency.

0

10

20

30

40

50

60

2001 2002 2003 2004 2005 2006

Mums more confident on nutrition% Mums who limit red meat consumption to avoid possible health problems

Source: Sweeney, Millward Brown

57%

46%44%

24%

38%

26%% A

gree

Improved attitudes: are linked to average serving growth

Appreciators Acceptors Resistors Rejectors

30% 38% 27% 5%

37% 41% 14% 8%

Source: The Leading Edge

Apr

–Jun

2006

Apr

–Jun

2005


Mums more confident on nutrition

Improved attitudes are linked to average serving growth

Campaign effect

RetailerImpact

Eachsectoroftheretailtrade–independentbutchersandsupermarkets–hasinvestedintheirownmeatcategorydevelopment,withthecampaignbeingacatalystformuchofthisinvestment.Bothparties’efforts(MLAandretailers)haveworkedsynergisticallytogrowdemand.

Wehaveseen:

1. WoolworthsandColesrespondwithconsumercampaignsfocusingonthequalityoftheirredmeat:

“The ‘Red Meat. Feel Good’ campaign has played an important part in our weekly promotional format, our catalogue panels have delivered over and above sales which will achieve ongoing new business.”

PhilMorley–Coles

2½yearsintothecampaign,Woolworthsre-launchedtheirredmeatdepartmentwithtighterqualityspecification,bettermerchandisingandabetterrangeofproduct:

“Everyone is excited about meat and what we are doing in our meat departments.”

PatMcEntee–Woolworths

2. Independentbutchers-whosedaysseemednumbered-havegainedinconfidence.Theyhavere-investedintheirbusinesses(product,displayequipmentandpresentation),regainingtheirleadoversupermarketsinBeefandarrestingtheirdeclineinLamb.

“The red meat campaign has changed the way we and our customers think about red meat. Our staff feel professional pride in communicating the red meat message. We’re great supporters of the campaign as it assists our customers and our business.”

FrankRusso,CEO,RainbowMeats


Campaign effect


Retail Butcher Market Share

31%

30%

29%

28%

27%

26%

25%

24%Beef Lamb

20032006

Campaign effect

ThephotographsbelowfromabutcherinregionalQueenslandillustratetheeffortbutchersaremakinginproductandpresentation.


Campaign effect

Ourtroupeof“DancingButchers”consistsmainlyofrealbutcherswhogiveuptheirtimetopromotethemessageatkeyeventse.g.TheRoyalEasterShow,MelbourneCup,andEkka.

3. Steakhouserestaurantsclaimgrowthasaresultofthecampaign:“As the ‘Red Meat. Feel Good’ campaign has taken hold, we have seen a shift from chicken and seafood sales towards more red meat.” JimSmith,CEOLoneStar


Other variables

Otherfactorswhichoccurredduringthecampaignperiod(2002-2006)include:

1. AtkinsDiet–Quantitativeresearchshowedconsumersunderstoodthistobeaboutlowcarbohydrate,notincreasedprotein.TheuptakeofAtkinsinAustraliahasbeenverylow.

Itsimpactonredmeatdemandisconsiderednegligible.

2. TheCSIROTotalWellbeingDiet(TWD)–launchedinAugust2005.

TheTWDhasbeenaphenomenoninAustralianpublishingwithsalesapproaching1millioncopies.Again,itisdifficulttoisolateitsimpactfromRMFG.There’snodoubtthedietanditssurroundingpublicityhaveaddedfurthercredibilitytoourcampaignmessages.

TheCSIROTWDhascontributedsynergisticallywithourlongertermnutritioncampaigntobuildastrongerreputationforredmeatandgrowconsumerdemand


Conclusion

The5yearturn-aroundinredmeatdemandistheresultofawell-foundedindustrystrategyandachallenging,evolving,long-termadvertisingcampaign.Ithashelpedconsumersre-thinkredmeatandhasrenewedredmeatindustryconfidence.

From‘DancingButchers’toSamNeill,thiscampaignhascreatedahugeshiftinconsumerthinking.

After5years,we’vestillgotalottoboogieabout!


Appendix

ConsumerDemandmodelling

Redmeatisacomplexmarketwithmanycompetitorsateverylevelofthesupplychain.Becausearound²/3rdsofAustralia’sproductionisexported,pricesandmarginsatproducer,atprocessor,atwholesalerandevenatretailfluctuateonadailybasisduetochangesinsupplyanddemand.Andproductwillflowtowhichevermarketisofferingthebestpriceontheday.

InFMCGbusinesseswhereretailpricesaregenerallystablebothinrelativeandabsoluteterms,changesinmarketshares,volumesandconsumptioncanbereliableindicatorsofthestrengthofdemand.However,thesemeasuresarenotreliableguidesinvolatilemarketconditionssuchasredmeat’sbecausetheyneglecttheimpactoffluctuationsinretailprices.

TheConsumerDemandIndex

WhileConsumerExpenditureisthereforeamoreaccuratereflectionofconsumerdemandinmeatthantraditionalmeasuresofshareorvolumes,theConsumerDemandIndexisafurtherrefinementthatalsotakesintoaccountpricechanges,priceinflation,populationgrowthandconsumerpriceelasticity.

Byplottingtheannualpositionofthedemandcurveforbeefandforlambandmeasuringchangesinitsposition,weareabletoobservechangesinunderlyingconsumerdemand.


Appendix

Byfurtherplottingchangesinthepositionofthedemandcurve,wecanderiveagraphicalrepresentationofTrueConsumerDemand.

25.0 30.0 35.0 40.0 45.0 50.0

300.0

350.0

400.0

450.0

500.0

550.0

600.0

The Campaign Effect: Strong Demand Rebound

defla

ted

reta

il pr

ices

(198

0 ba

se)


2006

Demand

rising

1980

1990

2000

25.0 30.0 35.0 40.0 45.0 50.0

300.0

350.0

400.0

450.0

500.0

550.0

600.0

Demand prior to campaign in long-term decline

defla

ted

reta

il pr

ices

(198

0 ba

se)


Demand

falling

1980

1990

2000

Source: MLA.

Beef demand up

Highest since 1990

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

60

70

80

90

100

110

Pur

cell’s

Dem

and

Inde

x ( 1

980

= 10

0)


evolution of success: how mla and the campaign … mla and the campaign palace achieved a 5 year ......

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