The Pork Consumer s Path to Purchase. September 2012

Transcription

1 The Pork Consumer s Path to Purchase September 2012

2 What is the Path To Purchase? Every retailer should know how their customers make their decisions to buy (or not to buy). Your goal is to move people along the path, from one step to the next, until your customers are happy with their purchases. To do this, you need to know how they got to the checkout and what influenced their decisions to make a purchase.

3 Pork Path to Purchase Methodology We conducted a quantitative study to understand current purchasing habits, purchase motivations and barriers to purchase for the major protein categories (pork, beef and chicken) at retail. One of the main goals was to map the path consumers take when purchasing fresh meats by understanding their impact points (points where retailers can have influence) while making shopping decisions. There were 1,730 respondents. Respondents were primary grocery shoppers, primary food preparers, and had to have purchased fresh pork, chicken or beef in the last month. Pork Champion Study We conducted a quantitative study on retailer media tools (websites, mobile phone applications) to better understand which aspects of retailer media tools are most important for primary grocery shoppers in order to help retailers build more robust and meaningful content about fresh meat. We interviewed 1,000 primary shoppers who were also frequent users of grocery retailer websites. 3

4 The Pre-Trip Path + The In-Store = Path

5 What determines whether or not fresh pork makes its way onto a shopping list, into a grocery cart and onto the dinner table?

6 The Pre-Trip Path

7 While chicken and beef make it on to consumer shopping lists as staples, pork tends to be more usage-specific; it usually takes family requests, a promotion, or a recipe to get pork on the shopping list.

8 There are many reasons that pork gets on the shopping list versus beef and chicken, which are commonly purchased as a staple. Reasons Each Type of Meat Was On List Base: Had Meat on List Pork (A) Chicken (B) Beef (C) My family asked for it 29% B 19% 27% B It is a staple on my shopping list 29% 49% A 44% A I hadn't had it in a while 29% BC 13% 20% B I saw in a flyer or ad that it was on sale 26% BC 20% 18% I wanted something different 17% B 8% 13% I saw an advertisement for it 13% 7% 7% Pork is more likely than other proteins to be added to the shopping list as the result of a request, sale or advertisement. Stat tested at 95% A/B/C Bases: Pork (n=572), Chicken (n=296), Beef (n=292) Q14. Why did you decide to put [MEAT] on your list? 8

9 Pork needs to be specifically noted on the shopping list to make it into the cart. Created a List 82% 91% A 91% A No 22% Whether Meat Was On List Base: Had a List Pork (A) Chicken (B) Beef (C) Yes 78% Whether Specific Cut of Meat Was On List Base: Meat Was on List 50% BC 38% 40% Pork (A) Chicken (B) When making their list, respondents are more likely to specify the cut of pork than with chicken or beef. Beef (C) Stat tested at 95% A/B/C Q11. Did you make a shopping list for this trip? Base: Total Meat Purchasers (n=1730) Q12. Was [MEAT] on your list? Bases: Pork (n=699), Chicken (n=326), Beef (n=321) Q13. When putting [MEAT] on your list, did you put a specific cut of [MEAT] on your list, or just list [MEAT] in general? Bases: Pork (n=572), Chicken (n=296), Beef (n=292) 9

10 Consumers are most likely to shop at the meat case on regular shopping trips rather than quick or fill-in trips. Shopping Trip Type On Last Meat Purchase Occasion Base: Total Meat Purchasers Pork (A) 27% 48% 12% 13% Chicken (B) 25% 51% 10% 14% Beef (C) 30% 44% 10% 16% A stock-up trip A routine trip A fill-in trip A quick trip Bases: Pork (n=909), Chicken (n=412), Beef (n=409) Q21. How would you describe this shopping trip to [STORE] when you purchased [MEAT]? 10

11 Whereas consumers are likely to go to their regular store for beef and chicken, they are more particular when they re shopping for pork. I chose the store that Has the best value for the money on meat How Meat On Shopping List Impacted Store Selected Base: Had Meat on List Pork (A) 43% B Chicken (B) 32% Beef (C) 38% I just went to my regular store 37% 46% AC 36% Would have the best quality meat 25% 26% 26% Where I am familiar with staff at the meat counter 20% B 14% 16% Offers cuts of meat I can't find elsewhere 11% BC 6% 7% Offers amounts of meats I can't find elsewhere 8% 5% 9% Pork purchasers are more likely to look for perceived value, familiar meat counter staff, and product variety. Stat tested at 95% A/B/C Bases: Pork (n=572), Chicken (n=296), Beef (n=292) Q18. How did having [MEAT] on your list impact what store you were going to shop? 11

12 On average, retailers see in-store signage/digital marketing as the most important way to advertise to consumers 56% 37% 36% 31% 31% In-Store Signage / Digital Media Digital Marketing Newspaper Inserts Newspaper Ads Direct Mail Source: Progressive Grocer s 79 th Annual Report of the Grocery Industry 2012

13 Consumers are looking at more than the sales circular before they get to the store. Smart phone applications (apps) are frequently used during the pre-trip planning stage. 8% 64% Before shopping 8% 28% 44% 20% 16% 37% When in the store shopping 6% 10% 47% 25% 12% 69% 7% After shopping 28% 41% 24% 3% 4% Never Rarely Sometimes Most often Always Source: Pork Champion Study Base: 124 (Primary grocery shoppers that use a retailer smart phone application) Q22. When do you typically access the app? 13

14 Consumers are looking to retailer-specific apps to help them with meal planning, finding sales and making shopping lists. 58% 57% 42% 45% 27% 10% 4% 24% 12% 10% 15% 5% Use an app to make a list Look up product information Scan QR codes Look up the store's layout Look up nutritional information Source: Pork Champion Study Base: n=491 (Primary grocery shoppers that have a smart phone) Q19. Do you ever do any of the following when shopping for fresh meat? Look up recipes Compare prices Scan barcodes Look up sales or special deals Use your loyalty card via a 2nd party app that holds loyalty card information Use a grocery store app or grocery store loyalty card app Other 14

15 The Pre-Trip Path Pre-Trip Path Need discovered and home stock explored Type of shopping trip decided * Did not develop list * Shopping list developed (Pork is typically not on a list, but if so, it is drilled down to cut) Store selected (If interested in pork, store choice is influenced by past pork purchases) Developed list Sale, family request or ad feature help pork make the list If pork is on the list, chicken and beef are also likely to be on the list * *Indicates impact point. An impact point is a point in the decision process where retailers could influence shoppers. 15

16 In-Store Path

17 Source: Progressive Grocer s 79 th Annual Report of the Grocery Industry % of retailers say that shopper traffic increased in meat departments for And, nearly 60% expect the traffic in meat departments to increase in 2012.

18 Pork buyers are more likely to buy beef and chicken in addition to pork. Total Types of Meat Purchased on Shopping Trip Base: Purchased Meat on Trip Pork (A) Chicken (B) Beef (C) Pork, Chicken & Beef 38% Pork & Beef 11% Pork & Chicken 11% Only Pork 40% Chicken & Beef 18% Pork & Chicken 3% Pork, Chicken & Beef 18% Only Chicken 61% Beef & Pork 3% Beef & Chicken 18% Pork, Chicken & Beef 23% Only Beef 56% Because pork consumers are most likely to spend more, they are critical to total meat case sales. Stat tested at 95% A/B/C Bases: Pork (n=909), Chicken (n=412), Beef (n=409) Q34. Including the fresh [MEAT] that you have been answering about, how many different cuts of each type of fresh meat did you purchase? 18

19 In fact, fresh pork purchasers spend nearly $13.00 more per trip than general fresh meat purchasers Source: Fresh Meat Consumer Decision Tree: Understanding Consumer Choices by Nielsen Perishables Group

20 Pork is a stronger impulse purchase than beef or chicken so sales are effective in creating additional sales for pork. On Sale vs. Not On Sale Base: Purchased Meat on Trip On Sale 52% BC 46% 43% Not On Sale 48% 55% A 57% A Pork (A) Chicken (B) Pork (A) Chicken (B) Beef (C) Beef (C) Because pork is less of a staple item purchase, ads help remind consumers that pork is an option. Stat tested at 95% A/B/C Bases: Total Pork Cuts (n=1548), Total Chicken Cuts (n=704), Total Beef Cuts (n=753) Q37. What specifically did you purchase on this shopping trip? 20

21 In-store signage is critical. Over half of pork purchasers state that sales signs capture their attention, making signage vital for impacting decisions at the case. Items Noticed Around Meat Case/Counter Base: Purchased Pork on Trip (list & non-list users) 52% 39% 31% 19% 7% Price signs/coupons Pairing ideas Signage/Posters Recipes Handouts/Brochures = Pork is higher than other meat occasions Base: n=909 Q29. Did you notice any of the following around the fresh self-service meat case or full-service meat counter? 21

22 In-store ads are effective. Impact of Store Flyers on Meat Purchase Base: Ever Purchased Pork Impacted decision 42% B 32% 36% While the majority say they weren t impacted by the circulars, more respondents are swayed by them when buying pork than when buying chicken 18% B 12% 18% 24% 20% 18% 58% 68% A 64% Yes, I changed my mind about what meat I would buy when I saw the sale ads Yes, I purchased something extra based on what I saw in the sale ads No I still decided to purchase the meat I originally intended Pork (A) Chicken (B) Beef (C) Nearly half say they have amended their shopping list based on in-store sales ads. In fact, one quarter purchased something in addition to what they d planned, due to in-store ads. Stat tested at 95% A/B/C Bases: Pork (n=572), Chicken (n=296), Beef (n=292) Q15. Did the store circulars/weekly fliers impact your decision of what meat to buy? 22

23 On pork buying trips, shoppers spend more time browsing, looking at all proteins. 39% B 35% 29% 26% 25% 24% How Shopped the Meat Case Base: Shopped the Meat Case 16% B 12% 10% 11% 10% 9% 10% 8% AC 6% 6% 4% 5% 4% 6% 5% I browsed all I looked over the fresh meats in the sale items fresh meat case I compared the price per pound I compared the I grabbed the cut I I found the brand I grabbed the first price per package needed without looking at price I prefer fresh meat I saw Pork (A) Chicken (B) Beef (C) Effective in-store signage will help shoppers see variety and in-stock position for fresh pork in the meat case. Stat tested at 95% A/B/C Bases: Pork (n=757), Chicken (n=357), Beef (n=327) Q28. How did you shop the fresh meat case to purchase your [MEAT]? 23

24 Just over half of retailers think the meat department is the most influential in terms of driving traffic with targeted promotions 54.4% Source: Progressive Grocer s 79 th Annual Report of the Grocery Industry 2012

25 At the case, price (per pound & total package), appearance and cut type are most important for pork shoppers. Price (46%) Appearance (19%) Cut Type (10%) Bone-In or Not (6%) Appearance (10%) Price (7%) Price (6%) Price (3%) Type of Cut (7%) Cut Type (5%) Appearance (3%) Other (3%) # of Items per Pkg (4%) # of items (3%) Other (1%) Package Weight (4%) Other (4%) Other (21%) At Shelf Decision Process (% Consider Most, Next) Base: Total Pork Purchasers (n=909) Q42. Please rank the following attributes on their importance when you are shopping for [MEAT], using a 1 for the most important attribute, a 2 for the second most important attribute, and so on until all attributes are ranked. 25

26 Reasonable prices, not deep discounts, are most effective. Freshness 61% Expiration date Type of meat looks very fresh Date packaged Has an appealing appearance Has good coloring Price 52% Is available at a reasonable price per pound Is available at a reasonable price per package Is often on sale Features/Need States 38% Has lots of flavor Cut of meat Has a package size that fits my needs Is a grade of meat I prefer Is in the fresh meat case Is a familiar cut Is at the fresh meat service counter Bone-in or boneless Although price is important for over half of consumers, having a reasonable everyday price is more important for meat items than frequently being on sale. Italics reference the lowest-scoring attribute within a group at the top box level Q3. How important are each of the following when deciding what type of fresh meat to purchase? Groupings determined by factor analysis. Based to Total Meat Purchasers (n=1730) indicates groups average extremely important score 26

27 Reasonable prices + keeping cases stocked = purchase. Ever Walked Away from a Meat Purchase Base: Total Meat Purchasers Reasons for Walking Away Base: Walked Away from Purchase Price 42% Too Expensive 29% Price/cost 8% Not on sale/no sale 5% No 52% Yes 48% Selection 41% Meat Attributes 20% Personal Preference 9% Don t have what I want/need 15% Out of stock/sold out 9% Didn t like cut/didn t have cut/ type I wanted 9% Didn t have size package wanted 5% Ran out of sale/advertised items 4% Poor selection of meat/not stocked well 3% Price and selection issues are the cause of over 80% of respondents not making a purchase. Base: n=1730 Q43. Do you recall a time where you walked away from the fresh meat section without purchasing what you intended? Q44. Please describe the situation and reason that you did not purchase fresh meat on this occasion. Q40. If the cut of [MEAT] you wanted was not available at the store you were shopping, what would you do? 27

28 Pork purchasers are loyal to your store. Keep them happy and keep their sales! Unlike other protein purchasers, pork purchasers are more likely to choose another pork cut or switch proteins versus walking away or going to another store. Action Taken if Cut of Meat Wanted Was Unavailable Pork n=909 (A) Chicken n=412 (B) Beef n=409 (C) Buy a different cut of fresh [MEAT] (same protein) Go to another store Switch protein Not buy fresh meat at all 52% B 43% 51% B 15% 23% A 23% A 15% BC 6% 9% 18% 28% AC 17% Base: n=1730 Q40. If the cut of [MEAT] you wanted was not available at the store you were shopping, what would you do? 28

29 Regardless of species, packages must be clear and easy to decipher. Few protein purchasers will ask for help. Whether Asked for Help & Help Topics Base: Purchased Meat on Trip Asked for help - % yes 15% B 11% 15% Pork (A) Chicken (B) Beef (C) 39% 25% 22% 16% 16% 10% Cut Amount Prep Recipes Pairings Swap Stat tested at 95% A/B/C Q31. Did you ask for help when choosing your fresh [MEAT]? Bases: Pork (n=909), Chicken (n=412), Beef (n=409) Q32. What did you ask for help on? Base: Pork (n=135) 29

30 The In-Store Path In-Store Path Pork purchasers are meat purchasers * Meat is picked-up mid way through the shopping trip Half of pork is purchased on sale Half of meat case shoppers are browsers * Pork purchasers amend their lists based on in-store ads * * And over half of pork purchasers state that sales signs capture their attention Both list and non-list shoppers * Over one-third say in-store elements and sales/ads trigger pork purchases at the meat case Non-list shoppers only * Half of their pork purchases are made spontaneously at the case At shelf purchase decision relies on price, appearance and cut If no purchase was made, it was likely due to price and selection * Pork purchasers will switch cuts if what they wanted was not available Pork purchasers are confident in their purchases * Indicates impact point an impact point is a point in the decision process where retailers could influence shoppers. 30

31 Retailer Actions Steps Keep pork top of mind with your customers to ensure it gets on their shopping lists more frequently. Feature pork regularly in your ad circular -- in the long run, frequency trumps price as a reminder for consumers. Promote weekly pork specials and include plenty of easy pork recipes on your website. Use meat case signage to call out featured pork cuts. It s not only about discounts; awareness is critical to getting consumers to buy more pork. Consistently promote appealing, easy-to-cook fresh pork to reap the benefits of increased pork sales!

32 Thank you! This message funded by America s Pork Checkoff Program.

33 Executive Summaries

34 Pre-trip planning conclusions and implications While chicken and beef make it on the list as staples, it takes family requests, a deal/promotion or a desire to get pork the list; it tends to be more usage-specific. Cut is also an important feature for pork and is often specified on a list, in contrast to other proteins. Pork needs to be featured more often through all mediums (FSI, online, etc.) in order to become more top-of-mind with consumers to increase purchases. Pork shoppers are more particular about where they shop for pork versus chicken or beef, making pork critical to retailers meat case sales. Those that purchase pork as their primary protein are also more likely to purchase more beef and chicken, resulting in higher total meat case sales. Pork needs to be specifically noted on the shopping list to make it into the cart. When making their list, respondents are more likely to specify the cut of pork than with chicken or beef. Weekly FSI/ad circulars are checked in preparation for buying meat, especially by Pork Champions. Budget, however, is not a critical factor for purchasing pork. Pork should be featured frequently in order to draw these shoppers into your store. Frequency rather than price point appears to be key. 34

35 The in-store path conclusions and implications Pork buyers are more likely to buy beef and chicken in addition to pork. Because pork consumers are most likely to spend more, they are critical to total meat case sales. In fact, fresh pork purchasers spend nearly $13.00 more per trip than general fresh meat purchasers Over half of pork is purchased on sale, slightly higher than chicken and beef. Based on previous findings, this may be an awareness trigger instead of being solely a price trigger. Pork isn t as top of mind for consumers so suggesting pork and reminding them of pork an alternative option can lead to incremental sales. Over half of pork purchasers state that sales signs capture their attention; nearly half of respondents purchasing pork amended their shopping list based on in-store sales ads. One-quarter purchased something in addition to their planned purchases due to in-store ads. This points out the importance of sale signs and ensuring that pork has a consistent presence inad and in-store. Influencing pork purchasers through a multitude of avenues can stimulate incremental impulse purchases which can lead to repeat pork purchases. Because respondents on pork buying trips spend more time browsing than while on chicken buying trips, effective in-store signage is important to help them find a wider variety of pork cuts. Because pork decisions are made and influenced more in-store than other proteins, pork needs to be sure to have in-store promotions and reminders. Price and selection issues are the cause of over 80% of respondents not making a purchase. Ensure strong in-stock position for pork at the meat case and be sure that pork is intuitively labeled and easy to find in-store. 35

36 Path to Purchase Methodology Assumptions Consumers shopping habits are changing due to the economy and other trends Meat channels and technology continue to evolve There are a growing number of choices at the point of purchase To increase pork purchases, we must understand the consumer s path to meat case purchases Objectives Understand current purchasing habits, purchase motivations and barriers to purchase for category drivers (pork, beef and chicken) Map the path to purchase for fresh meats by understanding consumers involvement in factors which impact consideration and decision to purchase Gain a deeper understanding of the in-store decisions that lead to purchase (e.g., cut, brand, type, price, etc.) Identify how the path to purchase is impacted by the media, tools and research Understand the contextual and situational factors revolving around meat decisions Sample & Methodology Consumers were: Males and females (25%/75%) years old Primary grocery shoppers Primary food preparers Purchased fresh pork, chicken, or beef in the past month Fresh pork was defined as not including processed meats like ham, bacon, or lunch meat Consumers were divided into three groups: Pork Purchasers (n=909) purchased pork within past two months and eat pork at least once a month Chicken Purchasers (n=412) purchased chicken within past two months and eat chicken at least once a month Beef Purchasers (n=409) purchased beef within past two months and eat beef at least once a month Within Pork Purchasers, Pork Champions fall into three tiers Total Pork Champions (n=1008) Tier 1 (n=208); Tier 2 (n=393); Tier 3 (n=407) Online survey Interviewing took place from March 16-25,