understanding the new realities of consumers in the 21 century · give consumers a reason to buy...

Understanding the new realities of

consumers in the 21st Century

Canadian Meat Council Annual Conference

May 6, 2010

Presented by

Marion Chan

TrendSpotter Consulting

2

See change as an opportunity for growth

Marion Rev'd 3.wmv

At the end of today‟s presentation…

You should have an understanding

of some of macro trends in order to:

Identify opportunities for profitable

new products

Communicate in a meaningful way to

your consumers

Think about changes in marketing

strategies for the future

Building a profitable business starts with the right product, with

the right message to the right consumer

The information age is both a

blessing and a curse

Health is no longer a simple nor

clear definition

Give consumers a reason to buy

Sustainability is the buzz you can‟t

ignore

The impact of the 21st century

household

Information transfer moves at lightening speed with

the help of social media

That was news to Gordon Lightfoot

R.I.P. Gordon Lightfoot

Social media can be used to connect with today‟s consumer

Named Best Domestic Airline by Conde Naste Traveler 5-years in a row

Uses Twitter to:

Communicate specials / sales

Flight updates

Customer service

http://www.jetblue.com/

Of the 10,000 Canadians surveyed:

75% are on-line

70% say they use social media

69% have a Facebook account

58% blog

74% of personal

57% for work

35% for both

47% use Twitter

47% of 41-50 year olds use Twitter

It is not a fad…its gaining popularity quickly

6s Marketing Inc., March 2009

Social networking is just the tip of the icebreg

SOCIAL NETWORKING

http://vimeo.com/

http://www.facebook.com/


http://www.linkedin.com/

Social Media

Livestreamvideo

Blogs

Podcasts

Social Networking

The simplified world of social media…

Discussion

Virtual Worlds

Social Gaming

Publish

the real world is much more complex



Lots of people are talking about your products in a whole variety of

ways

% of people talking about meat as part of a healthy menu

There is a little more positive chatter about the health benefits

of beef than of pork

% of people talking about nutrition and vitamins

Beef

29%Pork

20%

Veal

28%

In the world of food…social media is being used in addition to

traditional advertising

How do you apply this to your business?

Social media cannot be ignored Learn more about it

Provide your consumer with value without trying to sell

Won‟t replace traditional marketing/advertising but can be

used to make it more effective

Harnessed properly it can be very effective

Identify the role it could play in your overall marketing

strategy






clear definition



ignore


household

Consumers have good intentions but what are they looking for?

1 Consumer Survey of Product Innovation 2009, TNS2 Ipsos-Reid, State of the Nation – Canada, Trends That Impact Purchase and

Consumption Behaviour

Label reading at

an all time high of

78%2

53% of adults

want to eat more

nutritious foods2

73% say nutrition

info and/or list of

ingredients have

the MOST positive

impact on

purchase decision1

Consumers are just confused…they just don‟t know they‟re

confused

Canadian consumers self-

rate their nutrition

knowledge … very highly.

However, empirical

evidence suggests that

actual knowledge of

nutrition…is quite low

The Functional Food and Natural Health Product Issues: The Canadian and

International Context, Agriculture and Agri-Food Canada, October 2007

Consumer choice is tipping the balance towards health

The top 5 most important

considerations when

purchasing new products

1. Value for money

2. More nutritious

3. Simple/natural ingredients

4. Improves health

5. Saves time / Makes life

easier

Consumer Survey of Product Innovation, December 2009, TNS

Efforts for better health become more pronounced as a

consumer ages

28

23

2724

38

44

2123

2628

35

45

15 - 24 Yrs

25 - 34 Yrs

35 - 44 Yrs

45 - 54 Yrs

55 - 64 Yrs

65+ Years and Over

1992 2007

% of people who are willing to transform their

lifestyle through exercise and radical

changes to diet (by age)

Environics Social Values Monitor, 2007

Some products are obvious, making it an easy choice

Per capita

consumption has

increased 10%

since 20062

+6% in $ sales in

the last year1

Per capita consumption +51%

since 20062

1Nielsen MarketTrack, National All Channels 52w 2Statistics Canada 2008

+57% since 2001

+15% since 2001

Single Serve Fruit snacks

+13% 2008 vs 20062

Healthy or nutritious is no longer about what‟s been taken

out, its about what hasn‟t been added

65

35 37

7262

5748 46

01020304050607080

2005

2008

N/A N/A

Health Focus International 2008 Canada Report / Canadian Grocer Category Captains Report

Manufacturers are beginning to use „natural‟ and „real‟ to their

advantage.

Instead of asking

“What’s for dinner?”,

consumers should ask

“What’s in dinner?”

What’s more real and easily

understood than MEAT?

The good news story in red meat too is getting through

25% of people

are talking

positively

about the

lean/fat of beef

20% of people

are talking

positively

about the

lean/fat of pork


Health continues to tip the balance Convenience is not far behind

Natural or Real foods is the new healthy

Consumers are misinformed Need to be educated better and more clearly

Consumption of chicken is fast approaching the #1

protein eaten at home Identify key health features

If you have a story to tell, tell it






clear definition



ignore


household

Indicators and flashes on product are helping consumers

make decisions

60

54

47

43

43

41

38

Whole Grain

Low Fat

Low sugar

High Fibre

Low Salt/Sodium

Locally Grown

Low calorie

When buying food how often do you opt for this version when it is available?

% of respondents - Top 2 Box

Ipsos-Reid, 16 Hot Trends and Consumer Behaviour Report, June 2008

Made in Canada is an important selling feature and point of

differentiation

1/3 of Canadians confirm

products made, grown

or produced in Canada

plays an important role in

their decision making1

66% of Canadians often

buy locally grown food or

manufactured products2

1 Consumer Survey of Product Innovation 2009, TNS2 Consumer Perceptions of Corporate Sustainability Practices: The 2009 Report

Planet Care, IFOP North America

Locally grown fresh meat is less about health than it is about the

health of the community

69%

66%

48%

46%

45%

44%

44%

44%

Helps your local economy

Supports family farmers

Tastes better

No added hormones/steroids

Cheaper

Healthier

Not genetically modified

Safer

Compared to ‘regular’ fresh meat, what is the top benefit of buying locally grown meat?

% of respondents

Ipsos Reid poll conducted Nov 10 – 13, 2006 with 1091 adult Canadians

Give consumers a reason to choose... But your products MUST be

able to deliver on promises

87% of consumers rate

almonds as a good or

excellent for being nutritious3

1Nielsen MarketTrack, National All Channels 52w 2Statistics Canada3Consumer AAU Study, Sterling-Rice Group, 2008

Active health yogurt

segment growing 53%3

Enriched white breads leading

to growth of segment (6%)Sensible snacks growing +28%

(including 100-calorie)

With a point of differentiation foods that were once taboo are now OK

“…once verboten items like bagels or a slice of bread are

becoming more palatable to dieters if they can select whole-

grain varieties

Canadian Grocer, Healthy Business, March 2009

Product names are often very confusing

Reducing ambiguity of products will help with decision making

The average consumers don‟t understand some cuts of meat…help

them decide

BEEF CUTS

Rib grilling steak cap off

Rib Eye

Eye of Round

Inside Round

Brisket Point Pot Roast

Cross Rib Pot Roast

Inside Round Pot Roast

Outside round delicated steak

Lean Ground Chuck

Regular Ground

Medium Ground

CHICKEN CUTS

Breast

Thighs

Drumsticks

wings

Roasters

Beef is still the top meat consumed at home* but if you include manufactured

products (i.e. frozen dinners) and chicken just edges out beef

15

20

25

30

35

40

1981 1986 1991 1996 2001 2004 2005 2006 2007 2008

Chicken

Beef

Pork

Total Kg per person by type of meat

Based on meat production

Source: Statistics Canada 2008

*National Eating Trends, The NPD Group, Inc. – March 2009

Canadians are skeptical. Claims need to be believable.

0

5

10

15

20

25

…food labelled organic is really

produced the way it is said to be

...organic food is healthier

...organic production is better for the

environment

The best known brands are likely to

be the highest quality

Global

Canada

US

% of respondents who agree with the statements…

1Nielsen Global Online Survey May 20072NPD 10th Annual Eating Patterns in Canada Report3Functional Food and Natural Health Product Issues: The Canadian and International Context

I don‟t believe…

Canadian consumers

[are]…skeptical of the information

[about] nutrition where the source

of information is the manufacturer,

and even the government3


Need a clear and consistent message What are the one or two things you believe are most important to

consumers which is a benefit over the competition

Red meat has points of differentiation that consumers

need to know about Does not need to specifically compare to chicken

Address consumer needs, desires or perceptions

Convenience in cooking time

Clarity will help with the decision making process Clear away the clutter – less is more

Made in Canada is a selling feature Tout it more loudly






clear definition



ignore


household

Canadians are more aware of sustainability than our southern

neighbours…and eager to learn more

75

63

Aware of sustainability

Canada US

Have you ever heard the term sustainable

development / sustainability?

51% want to

learn more about

sustainability

Consumer Perceptions of Corporate Sustainability Practices: The 2009 Report


Canadians are actively engaging in sustainability efforts

85% recycle all non-organic waste

72% pay careful attention to how

products consumed or used may

affect health

70% habitually minimize their use of

natural resources

66% often buy locally grown food or

manufactured goods

61% have made changes to their

home to be more environmentally

responsible



Even with the widespread acceptance of sustainability the

disconnect between attitudes and behaviour are present

40

To what extent do you agree that sustainability…?

86%

78%

76%

69%

67%

56%

Is very important

Citizens can make an impact

Is something you believe in

Makes visible changes in our world

Is practical

Guides your everyday behaviour

Top 2 Box



Manufacturers can play to consumers definitions of

sustainability by knowing how they define it

6965 64

59 5953

6156 55

52 52 51

renewable energy

reducing polltn/prot

wildlife

reduce/recycle tech to improve living

std

reducing energy use

promoting local

Canada USA

To what extent do you strongly agree that the following statements are consistent with your definition of “sustainable development”?



Greater consideration and action of sustainability at the corporate

level can only improve consumer perceptions

42

Agreement that the following groups are on the right track regarding sustainability practices…

56%

38%

23%

21%

9%

14%

37%

36%

not-for-profits

citizens

government

corporations

Top 2

Bottom 2



Some corporations are trying to change that image

Packaging is becoming as important as what is inside


Sustainability is top of mind for most Canadians But it is just starting to affect their everyday behaviour

The sustainable messages that will resonate with

Canadians are: Renewable resources, reduction of pollution and recycle

Consumers generally have a low opinion of corporate

efforts. It is not too late to turn it around

Be on the cutting edge






clear definition



ignore


household

In 10% of households, Dad stays at

home

Up from 1% in 1976

28% of fathers claimed parental leave

Up from 15% in 2005

69% of households have two incomes

Up from 36% in 1976

23% of men are the principle grocery

shopper

30% in the US

Traditional gender roles are changing

Statistics Canada, 2006 Census, Updated September 2009

Despite efforts to plan purchases quick trips are still a

necessity

Quick Trip 56

Non Perishable Items Only

2

Perishable Items Only

8

Combined Items16

Emergency Trip12

Personal Care Trip

7

General

Stock up Trip

25%

World of the Shopper 2009, Environics

Perishable items including meat are the most common triggers

for Quick Trips

49

10

10

11

12

13

19

20

28

40

42

52

Pet food

Household Paper

Salty Snacks

Deli meats

Ice cream

Pop / Soft drinks

Dairy

Meat

Fresh fruit/veg

Bread

Milk

Quick Trip Triggers


Men conduct slightly more of the Quick Trips than women

Males Alone26

Females Alone23

Joint Trip7

Male Alone7

Female Alone11

Joint Trip27

Male Only4

Female Only6

Joint Trip31

General

Stock up Trip

25%

Quick Trip

56%

Emergency Trip

12%

Personal Trip

7%


…and meat is even more of a trigger when Men are the

purchasers

51

Quick Trip Triggers

9

9

10

11

12

15

16

23

36

42

62

3

11

7

9

13

13

19

15

42

44

55

Frozen Meals

Household paper

Salty Snacks

Pet food

Ice cream

Pop / Soft drinks

Dairy (Cheese etc.)

Fresh Meat

Fresh fruit/veg

Bread

Milk

Female

Male


43% felt

relieved that

one chore was

complete

The motivations and experiences are different between men and

women

Women Men

Kids

No Kids

41% enjoyed

spending time w/

spouse/partner


39% enjoyed

the peace and

quiet of

shopping by

myself

36% felt like they

were doing something

for the family


Gender neutral marketing campaigns Don‟t put off or offend 25% of potential consumers

Segment strategies to target the stock-up versus the

quick trip The more specific the message to the right consumer the better

Instore merchandising will be key

Best to get onto the shopping list

Identify the motivations and experiences you want to

target In addition to product, message and consumer

If you remember nothing else…

Social media has become an important communication vehicle

Don‟t get left behind, harness its power

Foods that are considered healthy are no longer about what‟s been

taken out but what HAS NOT been added

Help the consumer choose by providing clear product differentiation

If you have a story to tell, tell it

Sustainability is a growing topic which is beginning to influence

consumers purchase decisions Product, packaging, processing, you will need something to talk about

The balance in the 21st century household between men and women is

changing slowly but surely

understanding the new realities of consumers in the 21 century · give consumers a reason to buy...

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