BEEF INDUSTRY SEES REDUCING CONFUSION AT THE MEAT CASE AS ONE KEY TO FUTURE SUCCESS

DENVER (August 11,1998) - In an age when speed, simplicity and convenience dominate our lives, consumers often hit a roadblock when navigating their way through the fresh meat department. The beef industry knows all too well that confusion at the meat case can lead to lost sales, and the National Cattlemen’s Beef Association (NCBA) is pursuing ways to make shopping for fresh meat a more convenient -- and profitable -- journey.

"The average retail meat case does not reflect the lifestyle of today’s consumer. As a result, many shoppers are frustrated at the point of purchase, and some even walk away from the meat case altogether if they can’t find the cuts they’re looking for," says Kevin Yost, executive director of channel marketing for NCBA.

According to ongoing checkoff-funded research conducted by NCBA, consumer frustration at the retail meat case can be traced to three main issues:

• Traditional meat cases are laid out by species, not by how consumers typically shop.
• Consumers are overwhelmed by the array of fresh meat products to choose from, half of which they almost never buy.
• One of the reasons consumers don’t buy a wider variety of cuts is they don’t know what to do with them once they get them home.

NCBA is helping the beef industry and fresh meat retailers address these consumer concerns.

NCBA has partnered with ConAgra Refrigerated Foods to develop a one-of-a-kind statistical model called the Fresh Meat Buying Hierarchy that uses information about consumer shopping behavior to help fresh meat retailers match their case layout to the needs of their customers.

Today, the average fresh meat case is set by species (i.e., beef, poultry, pork and seafood). Based on extensive consumer research, Yost and others in the beef industry believe such layouts may actually hamper beef sales.

"Consumers don’t think about subprimals when making purchase decisions. Instead, they consider factors such as what meal they want to prepare, their families’ tastes, time influences and cooking skills," Yost explained. "Therefore, consumers tend to buy a very limited range of products like ground beef, steaks and chicken breasts."

To sell a broader range of cuts and grow consumer demand, the beef industry is helping fresh meat retailers implement alternative case layouts to better market beef products. Because the Fresh Meat Buying Hierarchy is based on actual purchase data, retailers can use it to better understand the needs of their specific customers and tailor case layouts accordingly.

Once a case layout is determined, retailers can further enhance the shopping experience through effective meat case signage that directs consumers to the sections and products they shop for most.

"The goal is to help retailers match their case layout to how their customers shop," added Yost. "If consumers can consistently find the products they want, sales will increase for all meats. Because beef leads the pack in total meat case volume, the beef industry stands to win proportionally."

NCBA is testing layout options with select retailers and plans to release results in the next few months.

Product Selection

Using a proprietary purchase panel called the Meat Purchase Diary, NCBA has tracked actual meat purchases of 1,000 American consumers each month for the past four years. By understanding what consumers in a given market are buying, NCBA can advise fresh meat retailers on ways to simplify product mixes under a single name. For example, consumers don’t understand the difference between shoulder roast, arm roast and chuck roast. To them, each of these products is considered a pot roast and should be labeled as such to avoid confusion in the consumer’s mind.

This panel data also can help fresh meat retailers improve their product offerings by bringing in new products that better fit customers’ usage patterns.

Cooking Instructions

Several findings from consumer research suggest the availability of on-pack cooking instructions will help reduce confusion at the meat case and boost beef sales:

• Most consumers don’t understand current anatomical nomenclature.
• The majority of today’s shoppers, especially younger shoppers, have less cooking knowledge than previous generations, which prevents them from buying many cuts.
• Consumer purchase data indicate the average shopper never buys half the cuts in the meat case.

To remedy this, NCBA is working with major retail companies to create on-pack cooking instructions that take the guess-work out of shopping for and cooking beef products.

"With so many players vying for a share of the consumer food dollar, the beef industry can no longer rely on the status quo. We recognize the power consumers have, and NCBA is stepping up to make sure the entire industry aligns itself to meet consumer needs," Yost said.

-- NCBA --

Channel marketing programs are funded by the national beef checkoff, administered by the Cattlemen's Beef Board. This 111-member board is appointed by the Secretary of Agriculture to oversee the collection of the $1-per-head checkoff, to certify state beef councils, to implement the provisions of the Federal order establishing the checkoff and to evaluate the effectiveness of checkoff programs.

Initiated in 1898, NCBA is the marketing organization and trade association for America’s one million cattle farmers and ranchers. With offices in Denver, Chicago and Washington, D.C., NCBA is a consumer-focused, producer-directed organization representing the largest segment of the nation’s food and fiber industry.