Retail Meat Marketing

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Retail Meat Marketing
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Grocery Stores?
Whats the Difference
Wal-Mart
Kroger
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Retail Meat Marketing

• Is there a system to the madness?
• How is the grocery store set up?
• In the past
• Stores were set up to attract a certain clientele
  
• No attention to flow or customer traffic

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Retail Meat Marketing

• Now
• More focus on consumer traffic patterns
• More focus on perishable departments
• Food Court set ups
• Are you price driven or quality driven
• Specialty Stores
• Whole Foods
• Mexican Grocery Stores

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Milk
Meat Department / Lunchmeat / Frozen Meat
Deli / Bakery
Chips / Snacks
Bread / Soda
Frozen Foods
Dairy Products
Produce
Check-out Stands
Controlling Customer Traffic
Entrance
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Milk / Frozen Foods / Dairy Products
Meat Department
Dairy / Cheese
Deli
Bakery
Chips / Snack
Soda
Produce
Food Court Set up
Entrance
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Grocery Store Secrets

• Fresh Baked Bread or Home-cooked food odors
• Larger shopping carts
• End caps or wing displays are not always on sale
• Mark down the big items (milk, bread, eggs,
  toilet paper)

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Grocery Store Secrets

• Shorter isles
• Name brands toward the bottom
• Pairing foods (apples w/ caramel cheese w/
  ground beef)
• Expensive liquor cabinet

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Classification of Consumers

• Students
• Cheap and easy
• Adults
• 20 to 30 somethings out of school more money
  want some quality, healthy, environmentally
  friendly
• 40 to 50 somethings established in life, family
  label readers, quality
• Golden years quality, healthy, portion size
• Women
• Tend to be label readers, functional foods, more
  brand conscious

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Classification of Consumers

• Men
• Price driven, easy, can be very brand loyal
• Locovores
• Locally produced and grown foods
• Foodies
• High quality, price not important, rare foods

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Classification of Consumers

• Vegetarians
• Total Vegetarians no animal foods
• Vegans no animal foods or animal derived foods
• Lacto-vegetarians dairy products
• Lacto-ovo-vegetarians eggs and dairy
• Pesca-vegetarians fish
• Pollo-vegetarians chicken
• Fruitarian only products where something did not
  have to die

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The Super Store

• Individual stores
• Bakery, Produce Stand, Butcher
• Supermarket
• The Super Store
• One Stop Shopping
• Wal-Mart Supercenter, Meijer, Super Target, Big K
  (K-Mart)

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Focus on the Meat Department

• Should have specific set up
• Ground Beef and Chicken toward end of the traffic
  flow
• Will re-arrange meat case to focus on seasonality
  
• Focus on middle meats in the summer
• Focus on roasts in the winter

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Evolution of the Meat Department

• Butcher Shop
• Supermarket
• Personal, one on one service
• Combination meats and deli
• Self service case
• Fresh meat
• Carcasses to boxed meat
• Now totally changed

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The New Meat Department

• Whats for dinner
• 430 meal problem
• gt70 of Americans do not know what they are
  having for dinner at 430 pm
• Products needed to solve this problem
• Homemakers have 15 minutes to prepare dinner

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Solving the 430 Meal Problem

• Convenience
• User friendly
• Heat n Eat
• Ready to Eat
• Pre-flavored
• Pre-marinated

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Returning to the Kitchen

• Food Network
• Foodies
• Looking for high quality beef
• Difficult recipes
• Adding recipes to the packages
• Recipe Peel Labels

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Other Trends/ Niche Markets

• Organic
• Natural
• Grass/ Forage Fed
• Free Range
• Greenhouse Cattle
• Predator Friendly
• Animal Compassionate
• Kentucky Proud
• No added nitrites

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Organic Meats

• 2010 total sales increased 1, organic 7.7
• 28 Billion in 2010
• Requirements
• Fed 100 Organic feed and Pasture
• No synthetic pesticides or fertilizers
• No GMOs
• No sewage sludge as fertilizer
• No irradiation of final product

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Natural Meats

• USDA states Natural is do not contain any
  artificial ingredients or are minimally
  processed, such as those that are smoked,
  roasted, frozen, or ground
• No antibiotics, or growth promotants are in the
  new volunteer definition

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Grass/ Forage Fed

• More Popular
• Lower levels of Saturated fat
• Higher Omega-3 Fatty Acids
• 90 of the animals energy must come from forage

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No Added Nitrites

• Carcinogen (MIT Study)
• 40/ d for 40 years to develop cancer
• Add sea salt, vegetable purees which contain
  natural nitrites

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Another Trend in Grocery Stores

• Whole Foods
• Farmers Markets

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Top Retailers in 2010

• 1.) Wal-Mart 307,736,000,000
• 2.) Kroger 78,326,000,000
• 3.) Target 65,815,000,000
• 4.) Walgreens 61,240,000,000
• 5.) Home Depot 60,194,000,000
• 6.) Costco 58,983,000,000
• 7.) CVS Caremark 57,464,000,000
• 8.) Lowes 48,175,000,000
• 9.) Best Buy 37,110,000,000
• 10.) Sears Holdings 35,362,000,000

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Top Grocery Stores

• 1.) Kroger
• 2.) Safeway
• 3.) Supervalue
• 4.) Publix
• 5.) Ahod
• 6.) Delhaize
• 7.) H-E-B
• 8.) Shop Rite
• 9.) Whole Foods
• 10.) Aldi

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Lab this afternoon Get out!