the bic case - consumer behavior

8/8/2019 The BIC Case - Consumer Behavior

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BIC Case Study

Dr. Ahmed Taher



OutlineOutline

Introduction/Synopsis and Dilemma

U.S. market consumer behavior analysis

Segmentation of consumers

Analysis of the adver tising campaign

Recommendations for the adver tisingcampaign



The Beef Industr y Council (BIC)The Beef Industr y Council (BIC)

VISION

A beef industry that is profitable, growing and sustainable for future generations.

MISSION

´Maintain and Build demand for beef products that satisfycustomer needs and wants through market developmentprograms (information, promotion and research), thereby

increasing the opportunity for the beef industry to earn anadequate return on investmentµ



BIC PRIORITIESBIC PRIORITIES

Creating Growth through Consumer mark et

Creating Value through Beef Production

Creating Sustainability through a favorable business

climate

Creating Opportunity through Global Competitiveness

Acting as National Coordinator



Why is there a beef check Why is there a beef check--off?off?

79 % of the beef producer have approved the check-off as aself-help promotion, research and information program.

70 % of cattlemen approve of the check-off.

The bottom-line reason for a check-off is to understand andcommunicate with the consumers.

It·s an ever-changing marketplace, and the product offeredmust meet changing demands.



What can the checkoff do?What can the checkoff do?

The checkoff acts as a catalyst for change.

The checkoff can·t single-handedly tur n around a low market, Nor creates good markets by itself.

Beef producers never intended to be in the business of growing cattleor handling product.

A way to stimulate others to sell more beef.

It could be done through direct adver tising, cooperative marketing,

public relations effor ts, education programs and new product development assistance.



Check Check--offoff



Where are check Where are check--off dollarsoff dollarsinvested?invested?

Designed to build demand for beef /veal in both domestic andforeign markets.

Research provides the foundation for check-off-funded activity based on consumer marketing, nutr ition, beef safety and product

development research.

Promotion enhance the appeal of beef to consumers, and helpsretailers/ foodservice operators market beef and veal moreeffectively.

Consumer Information creates a positive image for beef throughnews media, food editors, teachers, dietitians, physicians and other influential audiences.



Where are check Where are check--off dollarsoff dollars

invested?invested?Industry Information improves perceptions and understanding of thecattle industr y by helping to manage misleading publicity concer ningfood safety, environmental and animal welfare issues.

Foreign Mark eting works to identify and develop inter national marketsfor U.S. beef and veal.

Producer Communications informs beef and veal producers about how their check-off dollars are being invested and keeps them

appr ised of program results.



OutlineOutline





Recommendations



Why people eat beef?Why people eat beef?

People who live by religious tenets do

not eat meat fromsome farm-animal species (e.g. Jews, Moslems, Hindus) but do eat meat fromother farm-animal

species.While Chr istians, for example, believethey can consumemeat from all farm-animal species.

People who prefer beef over pork , lamb

and/or poultr y do sobecause of beef·sunique flavor.

Beliefs Individual Differences Biologically

Humans benefit nutr itionally frommeat consumption and benefit fromconsumption of beef (an exquisitecombination of vital nutr itional entities)especially if it is lean and if it is par t of anutr itionally balanced diet.

Beef is a wonderful package ofessential nutr ients (e.g., zinc, iron, protein) and, if lean, comparesfavorably to chicken as a par t ofhealthful and remedial (for sick people) diets.

One 3-ounce serving of beefcontr ibutes 9% of calor ies, 50% of

protein, 14% of iron, 39% of zinc, 3

7% ofVitamin B-12 and 16% of Vitamin B-6.



Why People eat less beef?Why People eat less beef?

Cost is a daytoday consumer concer n

affecting all foodpurchases, includingbeef. Fifty percent ofconsumers believethe cost of steaks per pound or at a

restaurant hascaused them to limit or even eliminatesteak usage.

Approximately onequar ter of

consumers limit beefpurchases because ofsensor y factors such asinconsistency of beefflavor and dislike for handling raw beef.

Economics Industry Health and Safety

After pr ice, issues surrounding safety, nutr ition, and convenience almost equally cause limitations in beefpurchases among slightly more than onethird of consumers. Examples ofthe micro issues contr ibuting to thesemacro issue rollups include use ofhormones, r isks of E. coli and BSE, the

perception of beef·s fat andcholesterol profile, health r isks such ashear t disease, lack of beef snack options, inconvenient sized cuts anddifficulty in microwaving beef.



Beef Consumption LimitationBeef Consumption Limitation

SurveySurvey50%

37%

36%

35%

26%

19%

Price

Safety

Convenience

Nutrition

Various Sensory

Reputation



Belief or ConcernBelief or Concern

83%

83%

73%

73%

64%

55%

53%

50%

35%

Steak cost too much per pound

Steak costs too much when ordering in a resturant

Ground Beef costs too much per pound

Beef comes in cuts that are too often not the right

size for a single meal

Beef has too many calories per serving

It is inconvenient to have a split up and freeze part of

the large beef package

It is hard to say what beef to use for a specific,

desired meal

Beef is not quick and easy to prepare

It is hard to really know, how to cook beef?

B e l e i f s

o r C o n c e r n

s

Belif or concern percentage



Consumer Attitude towards beefConsumer Attitude towards beef

A WIN

FOR BEEF

Jan,1987 Jun,1987

83% 84%

Extremely/Very

Important

Beef's

Performance

May, 2007 July, 2009 May, 2007 July, 2009

84% 90% 82% 87%

Great Taste




A WIN

FOR BEEF

Jan,1987 Jun,1987

67% 71%

Extremely/Very

Important

Beef's

Performance

May, 2007 July, 2009 May, 2007 July, 2009

64% 74% 65% 73%

Balance of Taste and Nutrition




A WIN

FOR BEEF

Jan,1987 Jun,1987

50% 53%

Extremely/Very

Important

Beef's

Performance

May, 2007 July, 2009 May, 2007 July, 2009

73% 80% 54% 67%

Good Value for Money - Home




Solid

Result

for Beef

Jan,1987 Jun,1987

62% 69%

Extremely/Very

Important

Beef's

Performance

May, 2007 July, 2009 May, 2007 July, 2009

75% 80% 60% 63%

Extremely Safe to eat - Home



OutlineOutline





Recommendations



Mark et SegmentationMark et Segmentation ² ² Life StyleLife Style

Segments Could be based on Life Style

Spor ts People

HealthfulnessP

eopleDietitians



Mark et SegmentationMark et Segmentation ² ² AgeAge

Children and youngsters throughtheir pediatr ic professionals.

Based on age, which is ademographic segmentation



Mark et SegmentationMark et Segmentation -- UsageUsage

Households with heavy/light usageof beef.

Segments based on usage.

This is a typical purchase andconsumption behavior segmentation strategy



Mark et SegmentationMark et Segmentation ² ² FoodFoodService Operators IndustryService Operators Industry

The food serviceindustr y accounts to40-45% of beef sales



OutlineOutline





Recommendations



Analysis of the advertisingAnalysis of the advertising

campaigncampaignRationale

Target Market

Contact MethodMessage

Outcome



Campaign RationaleCampaign Rationale

In the ear ly 1980s the eating habits of many Amer icans movedtoward a focus on lower fat, fewer calor ies

Consequently; meat consumption, par ticular ly that of redmeat, declined

In 1985 research found that 31 percent of consumers said they were eating less beef because of "health concer ns," versus 29 percent two years ear lier.

"Changing meal patter ns" caused 39 percent to reduce theamount of beef they ate in 1985, versus 27 percent in 1983.

Fear ing a continuation, if not an escalation, of the trend, the

Beef Industr y Council (BIC) decided to intensify its marketingprogram to improve the image of beef in the public's eyes



Target Mark etTarget Mark et

Light users (who consume less than 6 servings per 2 weeks)were targeted

Fur ther segmentation was performed using VALS (Values,

Attitudes and Lifestyles)

Light users who were also achievers, socially conscious, and"inner directed" were selected

They had annual household incomes of at least $30,000

Their average age was between 25-52

60

% were females, 40

% males



Contact MethodContact Method

Celebrity Endorsement: the adver tising style waspurposely fashionable and its tone upbeat. Twocelebr ity spokespersons, Cybill Shepherd andJames Gar ner , were chosen to carr y the

messages³ Shepherd for her stylish andoutspoken image and Gar ner for his believability.

Print ads were used emphasizing on nutr itional value of beef.

TV Commercials "Beef, real food for real people"focused on nostalgia.

Radio commercials, seminars and late night

shows were also used.



MessageMessage

"Beef, real food for real people"campaign tr ied to address beef'snutr itional profile in the context of itsother strengths such as unique taste

.



Outcome (1/2)Outcome (1/2)Awareness of beef adver tising increased 16 percent among light users, compared with 2 percent among heavy users

The adver tising also was effective in reaching

consumers under the age of 35³awareness jumped 24 percent among that segment.

After the shor t si x-month per iod, more people saidthey were eating more beef (10 vs. 6 percent)

The positive results were attr ibuted to thecampaign's ability to convince people that beefwas convenient to pre pare (up to 72 percent from62 percent) and that it fit their lifestyle



Outcome (2/2)Outcome (2/2)

Nutr itional concer ns retur ned to pre-campaign levels after an initial drop when the campaign began

Both the agency and the Council agreed to

expand public relations activities targeting thehealth care community.Adver tising in publications such as the New England

Journal of Medicine were to be consideredThe trouble star ted when Shepherd told FamilyCircle magazine in 1985 that the secret to her beauty was avoiding red meat. Just two years later , Gar ner suffered a hear t attack.



OutlineOutline





Recommendations



Recommendations (Recommendations (11//44))

Promotion & Adver tisement

Place special emphasis on Summer Grillingcampaign ² May through September and

Family Dining (late September)Regional/local foodservice advertising

Continue promotion of Beef Value Cuts andother new product applications in retail stores

and in restaurantsPromote/sample new beef products at consumer events

Disseminate beef safety information tochannel marketers, media, opinion influencers and producers



Recommendations (2/4)Recommendations (2/4)

Par tnership with Health Care Professionals

Promote nutr ition seminar programs or other healthprofessional venues, or direct-to-consumer events

Continue to develop partnerships with local healthprofessional groups, including exhibiting andsponsor ing/providing speakers at their meetings; identify potential health professional spokespersons

Extend Healthy Beef Cookbook to state health

professionals, spokespeople and organizationsOffer support for nutr ition seminars in low-checkoff, high-population states.

Continue to expand the Health Style newsletter mail database




Education & Consumer Info

Exhibit at meetings of teachers, administrators, school boards, etc. to provide information about

classroom resources available from MBICUse the new lower-fat beef youth recipes in local effor ts

Promote the ´Beef So Simpleµ e-newsletter to

consumers.




Paid Media & Inter netPaid media ² week ly radio updates, network radio (depending on national schedule), pr int adver tising

Producer outreach ² exhibits, Web site, Blog, speeches and presentations, par ticipation in meetings and conventions, field days and tours.Provide information to industr y leaders, auction markets, Extension specialists, agencies, FFA/ag-education instructors and other influencers

Media relations ² week ly audio news releases, regular pr int releases, guest editor ials, programupdates as needed, Web site resourcesProducer Attitude Survey

Buyers cards for auction markets



T hank You

the bic case - consumer behavior

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