merrill shugoll michael uetz - shugoll research - home webinar deck...differences between branded...

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Michael Uetz Principal

Midan Marketing

Merrill Shugoll President

Shugoll Research

Today’s Presenters

Study Background, Objectives and Methodology

Key Findings:

Grocery Shopping Behavior and Fresh Beef, Pork and Chicken

Purchases

Attitudes About Brands

Brand Awareness, Purchase and Preference

Study Conclusions

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Today’s Presentation

Background:

Branding of fresh beef, pork and chicken in grocery stores is relatively new

in the retail food business.

In 2007, Bethesda, MD-based Shugoll Research and Chicago, IL-based

Midan Marketing, conducted one of the first surveys to assess the role of

branding in fresh meat selection and purchase.

A follow-up to the 2007 survey was conducted in 2012 to measure the

extent to which consumer awareness, attitudes and preferences for branded

fresh meats have changed over time.

Background, Study Objectives, Methodology

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Study objectives:

Understand grocery shopping behavior relative to meat and poultry

Assess consumer attitudes about branded fresh meat over time, including

the potential price differential

Measure brand awareness and purchase behavior relative to branded fresh

beef, pork, and chicken

Determine consumer preference for and ratings of branded fresh meat and

chicken


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Methodology:

2012 update survey conducted from November 15-20, 2012

Online panel of consumers who were grocery shoppers aged 18 and over in

Chicago, Dallas, Denver, and Philadelphia markets

Total of 600 consumers interviewed

Sample equally distributed among beef, chicken and pork

Questionnaire virtually identical in both studies for key measures, but selected

new questions added


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Methodology:

Respondents screened to meet the following criteria:

Be the primary shopper for food in the household or share the

responsibility equally with another household member

Be the primary meal preparer for the household or share the

responsibility equally with another household member

Be at least 18 years of age

Have purchased beef, pork or chicken in the last month

Key Findings: Grocery Shopping Behavior

and Fresh Beef, Pork and Chicken Purchases

Base: All respondents answering.

Q24: On average, how much do you typically spend per week on groceries?

Note: or Indicates % significant difference from 2007 at the 95 percent confidence level.

Less than $50 $50 to $99 $100 to $149 $150 to $199 More than $200

Amount Spent on Groceries Each Week

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Grocery Shopping Behavior and Fresh Beef/Pork/Chicken Purchases

Never 1 to 5 times 6 to 10 times

Number of Times Consumers Purchased Fresh Beef, Pork and

Chicken in the Last Month



Beef

Chicken

Pork

Mean 2007 Mean 2012

Beef 3.96 2.88

Pork 3.09 2.44

Chicken 3.57 2.57


Q1c/1f: In the past month, how many times have you purchased fresh beef/pork/chicken in a supermarket or other store?

Note: or Indicates % significantly different from 2007 at the 95 percent confidence level.

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Change in Actual Fresh Beef, Pork and Chicken Volume

and Price from 2007 to 2012

Source: FreshLook Marketing, 52 weeks ending December 23, 2012, vs. same period 5 years prior

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Beef Pork Chicken


Q2a At which store do you buy most of your fresh beef/pork/chicken?

Note: Balance of respondents answered “Don’t Know”


Type of Store Where Fresh Beef, Pork and Chicken Are

Typically Purchased

Note: Not all possible store formats are included. Excluded types include butcher shops and food cooperatives, to mention just two.

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Key Findings: Attitudes About Branded Beef,

Pork and Chicken


Q7: Based on what you know or believe, would you say there are differences across brands of fresh beef/chicken/pork?

Or would you say that all fresh meat brands are basically the same?


Total Beef Chicken Pork

(2007 n=600) (2012 n=600) (2007 n=200) (2012 n=200) (2007 n=200) (2012 n=200) (2007 n=200) (2012 n=200)

Brands have differences Brands basically the same No opinion/don’t know

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Attitudes About Branded Beef, Pork and Chicken

Differences Between Branded and Unbranded Beef,

Pork and Chicken


Q8: To what extent, if at all, do different brands of fresh beef/pork/chicken differ on the following?

Note: Percentages represent those answering 8, 9 or 10 on a 10-point scale

where 10 is “Do vary greatly” and 1 is “Do not vary at all”

Ratings of Product Attributes on Which Beef, Pork and

Chicken Brands Differ

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Q15: Please indicate the degree to which you agree or disagree with the following statements:


Note: Percentages represent those answering 9 or 10 (Strongly agree) and 7 or 8 (Somewhat agree) on a

10 point scale where 10 is “Strongly agree” and 1 is “Strongly disagree”

Opinions of Brand Name Beef, Pork and Chicken

I often choose the store where

I shop because of the brands

of beef/pork/chicken it carries

If my supermarket had more

branded beef/pork/chicken

available I’d buy it more often

I prefer beef/pork/chicken

carrying my store’s brand

on it over a national brand

(2007 n=600) (2012 n=600) (2007 n=600) (2012 n=600) (2007 n=600) (2012 n=600)

38% 33%

28% 30% 26%

31%

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Q13a: How often do you buy your preferred brand?

Note: or Indicates % significantly different from 2007 at the 95 percent confidence level

Frequency of Buying Preferred Brand

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Q13b: Why don’t you buy your preferred brand more often?

Note: or Indicates % significantly different from 2007 at the 95 percent confidence level

Reasons for Not Buying Preferred Brand

More Often

It is too expensive to buy all the time

Not all stores carry it

They don’t always have the cut I want

It costs a lot

It doesn’t always look good

Don’t Know

I buy what’s on sale/buy cheapest brand

I like to eat different types of meat/brands

Other

Price is an issue for more than

half (58%) of consumers

Availability of brand product is an

issue for 54% of consumers

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Q16: What would you do if a fresh beef, pork or chicken product you purchased (either a branded or private label product)

did not live up to your expectations?

Switch to another

Brand

Shop at another

store

Stop buying meat Other Don’t know

Actions Consumers Would Take If Brand Did Not

Meet Expectations

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2012 (n=600)


Branded Beef, Pork and Chicken Pricing Opinions

I would buy branded

beef/pork/chicken more often if it

didn’t cost so much more

Branded beef/pork/chicken

often costs more, but it’s worth

it

I only buy branded

beef/pork/chicken for special

occasions or a big splurge

(2007 n=600) (2012 n=600) (2007 n=600) (2012 n=600) (2007 n=600) (2012 n=600)

Q15: Please indicate the degree to which you agree or disagree with the following statements:


Note: Percentages represent those answering 9 or 10 (Strongly agree) and 7 or 8 (Somewhat agree) on a

10 point scale where 10 is “Strongly agree” and 1 is “Strongly disagree” 20


Q17/18: Compared with unbranded fresh beef/pork/chicken, on average, how much more per pound would you say your

primary store charges for branded name fresh beef/pork/chicken? Approximately how much more per pound

would you be willing to pay for branded beef/pork/chicken versus unbranded beef/pork/chicken?


Brand Premium Perceptions

$1.00 or Less/lb

Perceived

Difference

Willingness to Pay

$1.01 or More/lb

Perceived

Difference

Willingness to Pay

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Q17/18: Compared with unbranded fresh beef/pork/chicken, on average, how much more per pound would you say your

primary store charges for branded name fresh beef/pork/chicken? Approximately how much more per pound would you

be willing to pay for branded beef/pork/chicken versus unbranded beef/pork/chicken?


Brand Premium Perceptions

Perceived Current Price Difference

Between Branded and Unbranded

Additional Price Per Pound Willing to

Pay For Branded

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Q19/20/21: If your store charged 5/10/20 percent more per pound of your preferred brand of fresh beef/pork/chicken,

how likely would you be to purchase it?


Note” Percentages indicate a Top 2 Box on a 4 point scale of very likely, somewhat likely, not very likely and not likely at all.

% Willing to Pay a Premium for Preferred Branded Beef/Pork/Chicken Products

Total Beef Pork Chicken

% Premium 2007

(n=600)

2012

(n=600)

2007

(n=200)

2012

(n=200)

2007

(n=200)

2012

(n=200)

2007

(n=200)

2012

(n=200)

5%

Premium

84% 79% 86% 81% 82% 79% 83% 77%

10%

Premium

76% 66% 79% 63% 74% 67% 74% 68%

20%

Premium

55% 47% 56% 43% 57% 50% 53% 49%

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Quality Price Consistency

of Quality

Good Value Easy

Availability

Taste

Attitudes About Branded Meats

% Who Prefer Brands Because Of…

Q12: Why do you prefer that (most preferred brand) brand of fresh beef/pork/chicken over other brands?


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Base: All beef respondents answering.

Q5a: Thinking about the brands of beef you buy most often, have you ever sought information about them from:

Q5b: What is your preferred method of obtaining information about beef brands?

Information Sources Relied Upon for Beef

Materials in

grocery store

such as signs,

pamphlets, etc.

Your

butcher

Newspaper

circulars/

inserts

A friend or

family

member

The

brand’s

website

The

brand’s

Facebook

page

Other None Following

the brand

on Twitter

Information Sources Used Preferred Information Sources

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Key Findings: Brand Awareness,

Purchase and Preference


Q3: Which brands of fresh beef/pork/chicken can you think of?


Spontaneous (Unaided) Brand Recall

Number of

Brands

Mentioned

Beef Pork Chicken

2007 (n=200) 2012 (n=200) 2007 (n=200) 2012 (n=200) 2007 (n=200) 2012 (n=200)

None 46% 49% 50% 45% 29% 12%

Recalled at

least one brand

54% 51% 50% 55% 71% 88%

Recalled more

than one brand

14% 14% 19% 15% 34% 44%

Mean 0.71 .67 0.76 0.78 1.20 1.44

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Brand Awareness and Purchase


Q4: Which of the following brands of fresh beef/chicken/pork do you buy or are you familiar with?


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Aided Brand Recall

Total Beef Pork Chicken

Number of

Brands

Mentioned

2007 (n=600) 2012 (n=600) 2007 (n=200) 2012 (n=200) 2007 (n=200) 2012 (n=200) 2007 (n=200) 2012 (n=200)

None 10% 4% 11% 6% 11% 3% 7% 2%

1 9% 3% 8% 4% 15% 3% 6% 2%

2 14% 6% 6% 13% 28% 5% 9% 2%

3 14% 8% 9% 12% 15% 7% 15% 4%

4 12% 11% 11% 14% 13% 13% 13% 4%

5 or more 41% 68% 66% 51% 18% 69% 50% 86%

Mean 4.8 6.8 6.1 5.5 2.8 7.2 5.6 7.8


Q4: Which of the following brands of fresh beef/pork/chicken do you buy or are you familiar with?

Aided Brand Recall - 2012

Brand

Category

Beef Pork Chicken

Familiar With At

Least One Brand

Always Buy At

Least One Brand

Familiar With At

Least One Brand

Always Buy At

Least One Brand

Familiar With At

Least One Brand

Always Buy At

Least One Brand

Natural/

Organic

92% 19% 96% 21% 98% 35%

National 90% 17% 96% 21% 98% 31%

Private Label 74% 9% 64% 8% 73% 13%

Regional 20% 2% 46% 8% 14% 1%

Local 50% 1% 0% 0% 0% 0%

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Q11: What is your one most preferred brand of fresh beef/pork/chicken?


Brand Preference

Brands Total Beef Pork Chicken

2007 (n=600) 2012 (n=600) 2007 (n=200) 2012 (n=200) 2007 (n=200) 2012 (n=200) 2007 (n=200) 2012 (n=200)

National 55% 46% 43% 33% 52% 48% 70% 58%

Private

Label

9% 13% 20% 20% 4% 11% 3% 8%

Natural/

Organic

4% 9% 6% 10% 1% 4% 4% 12%

Regional Not asked 4% Not asked 2% Not asked 9% Not asked 1%

Local Not asked 1% Not asked 1% Not asked 0% Not asked 0%

Other 5% 8% 4% 11% 9% 7% 3% 6%

No

Preference

27% 21% 27% 25% 35% 22% 20% 17%

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Brand Preference and Ratings

Study Conclusions

Grocery Shopping Behavior and Fresh Meat Purchase

• Consumers report purchasing beef, pork and chicken less frequently. Actual sales

volume and price data bear this out.

• Consumers are buying less of their meat and chicken at traditional grocery stores,

and purchasing more at supercenters, club stores and fresh format stores.

Attitudes About Brands

• Half of consumers believe there is a difference in brands of beef, pork and chicken.

Price is the most significant differentiator, followed by value, meat quality and

tenderness. Very few respondents purchase their preferred brand of protein all the

time (13%). Price and availability are the most cited reasons why.

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Conclusions

• One-third of respondents say they choose the store where they shop because of the

brands it offers and one-third also say they prefer meat and chicken products that

carry the name of their store’s brand on them.

• Many consumers are willing to pay a premium for branded products versus

unbranded, but the size of that premium has decreased substantially over the last five

years.

• Almost half of consumers still say they would be willing to pay up to a 20% premium

while 80% would pay at least 5% more. However, the percent of consumers willing to

pay these premiums has decreased significantly between 2007 and 2012.

Consumers are feeling the pressure of increasing meat and chicken prices and are

not willing to pay as much as they used to for their preferred brand.

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Conclusions

• Taste has become a much more important driver of brand preference over time and

is now nearly as important to consumers as price. This suggests a buyer that is less

willing to compromise - one who is interested in finding the best price but without

sacrificing quality or taste. While brands do convey some message of quality, they

must also be able to demonstrate how they provide a better quality product in terms

of taste and tenderness at a reasonable price.

• Most consumers do not appear to notice a majority of the advertising or in-store

marketing for branded beef, pork or chicken. Retailers and their supplier partners

need to do a more effective job of communicating useful information to their

customers.

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Conclusions

Brand Awareness and Preference

• Unaided, top-of-mind awareness for all types of brands of beef and pork in particular

remains incredibly low, a huge opportunity for retailers and suppliers to create

awareness and loyalty.

• Many private label market leaders were not recalled by respondents on an unaided

basis, and many did not even recognize these brands when prompted with their

names on an aided basis.

• When prompted with names of specific brands, more consumers said they were

familiar with at least one natural/organic brand or national brand for all species than

they are familiar with or purchase private label, regional or local brands.

• Consumers have very positive impressions of and preference for natural/organic

meat and poultry. However, these brands are seldom the brand purchased most

often and remain largely niche products, probably because of their premium price.

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Conclusions

• Retail stores in each market where respondents said they purchase most of their

fresh meat and poultry and how that has changed over the last five years.

• Detailed unaided brand recall for beef, pork and chicken brands by market.

• Consumer recall and purchase behavior for beef, pork and chicken brands by market.

• Top preferred beef, pork and chicken brands.

• Ratings of top beef, pork and chicken brands.

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Additional Content in Full Report

To purchase the full report, visit MidanMarketing.com, and

click on the Power of Brands icon at the top of the page.

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http://midanmarketing.com/

merrill shugoll michael uetz - shugoll research - home webinar deck...differences between branded...

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