Innovation and Trends in Consumer Marketing in Europe

Similar documents
Meat Trade Sector COCERAL AGM

USE OF CONSUMER INSIGHT IN THE NEW PRODUCT DEVELOPMENT PROCESS IN THE MEAT SECTOR

Overview of Demand for Alternative Pork Products

Structural Development in Agriculture A Global Perspective. Henning Otte Hansen

Organic markets for fruit and vegetables in Europe

Vision Growth Balance. All About Organics Food that matters

Export growth contributes approaching 400 million a year to the value of the industry.

QS focus on control throughout the supply chain

Study on Employment, Growth and Innovation in Rural Areas (SEGIRA)

A European Food Prices Monitoring Tool

Danish Agriculture & Food Council. Landbrug & Fødevarer

Assuring Safe and Sustainable Livestock Supply beyond the Mainstream Market

Anuga Meat - the world's largest trade fair for meat and meat products

Analysis of the EU meat markets

Knowledge Growth Balance STATISTICS pigmeat

Europass Curriculum Vitae

Market Potential for Farmed Atlantic Salmon Focus on the Global Village and Market. Phil Thomas Chairman, SSPO

Meat Marketing Strategy

Changing landscape for livestock production in Europe Directions and expected change in the next years

Meat & Seafood Sector Guide

Interim Report Q1/2018. Mikko Forsell, CFO 3 May 2018

Καλησπερα. Willi Habres, Stefanos Isseris GR-Thessaloniki

Interim report Q1/2017 Tuomo Valkonen, CFO Info meeting, 3 May 2017, Helsinki

Latest developments of beef production in the EU. Mark Topliff Senior Analyst AHDB Market Intelligence Brisbane June 2010

Organic Trade Board in the UK secures 10 million EU funding to grow organic food and drink sector

Sustainable Food Policy

Sustainable Food Policy

Estonia FooD and FooD safety

FACTFILE: GCSE HOME ECONOMICS: Food and Nutrition

Date File No. Our ref. Food Team Case No.

Organics in Finland. Updated

A.I.S.E. s 11 th INFORMATION DAY: Cleanliness and Hygiene : Benefits of the Professional Cleaning sector

Estonia FooD and FooD safety

FEFAC s approach towards responsible soy

EU farm economics summary 2013

EKLUND S PROCESSING, INC. STAMFORD, NY

INSIGHT GROWTH BALANCE. STATISTICS 2017 beef

Sustainable Food Policy

Biofach Green Public Procurement Organic Opportunity

1995/

Consumers View of Pork Production

Assessing farmers costs of compliance with EU legislation in the fields of the environment, animal welfare and food safety

Price dispersion in the Internal Market 1

COMPARATIVE RESEARCH OF FOOD CONSUMPTION IN SERBIA AND ITS EUROPEAN NEIGHBOURHOOD Milan R. Мilanović 1, Milutin Đorović 2, Simo Stevanović 2

Business Plan: The Establishment of a Rabbit Farm and The Marketing of Innovative Rabbit Meat Products & Sausages

United Kingdom Pig Meat Market Update. July 2017 UK PRICES

Ethical traceability and the UK wheat-flour-bread chain

Consumer Attitudes towards Organic Produce

IRENA Indicator Fact Sheet

Case No COMP/M SMITHFIELD / OAKTREE / SARA LEE FOODS EUROPE. REGULATION (EC) No 139/2004 MERGER PROCEDURE

Documentation of statistics for Slaughter Animals and Meat Production 2017 Month 06

Supply chain governance: crises. Bert Urlings VION: Director Quality Assurance

CONSUMER PERCEPTION AND WILLINGNESS TO PAY FOR THE WELFARE OF LIVESTOCK DURING LONG-DISTANCE TRANSPORTATION

ASPECTS REGARDING THE ORGANIC FOOD MARKET IN SEVERAL EUROPEAN COUNTRIES

Environmental impact assessment of CAP greening measures using CAPRI model

VION Food Group. Nuffield CSC

The Danish Pig Industry - quality pays. Claus Fertin, Director, Pig Research Centre

SITUATION, TRENDS AND PROSPECTS OF THE SUPPLY OF FISHERIES AND AQUACULTURE PRODUCTS TO THE EU MARKET

Experience of EUREPGAP Implementation with South America beef suppliers

ATTITUDES OF EUROPEANS TOWARDS AIR QUALITY

An update from the Competitiveness and Market Analysis Section, Alberta Agriculture and Forestry.

One Blue Dot Glossary

Session 71 Improving Meat Quality Through The Supply Chain. Michael McWhinney Group Head of Innovation, Dunbia

An update from the Competitiveness and Market Analysis Branch, Alberta Agriculture and Forestry.

Product Quality of Fresh and Further Processed Meat Products & Gaps in the Literature. Dustin Boler The Ohio State University

Development of plant proteins in the European Union

Impact of partial decoupling on prices, production and farm revenues in the EU

European farmers & agri-cooperatives livestock campaign

School fruit scheme:

GLOBALDIV Summer School 2008

Wetherspoon: food sourcing policies, practices and guidelines

Graph 1.0 Consumption of Carcase Meat & Offal in Wales Source: Defra, National Statistics

Trust orientations in the organic food market: a complementary approach based on distributors, certification organizations and consumers perspectives

An overview of European competition rules applying in the agricultural sector

MEAT INDUSTRY KEY INFO IN POINTS

The compound feed industry in the EU livestock economy

Hamburger Pork Chop Deli Ham Chicken Wing $7.12 $5.03 $4.23 $3.59 $2.20 $2.15 $1.72 $2.59

Using the Sustainable Agriculture Guiding Principles initiative to ensure reliable sugar supply. a Coca-Cola European Partners case study

Local Food Consumers: How Motivations and Perceptions Translate to Buying Behavior

Business management in animal care

SWEDISH FARMING, BEEF PRODUCTION AND CHAROLAIS. - An overview Sofia Persson and Lennart Nilsson The Swedish Charolais Association

Dunbia. International markets for beef and lamb

United Kingdom Pig Meat Market Update. October 2017 UK PRICES

Consumers choice of broiler meat in Finland: the effects of country of origin and production methods

DMRI. Danish Meat Research Institute. Danish Meat Research Institute

for BUSINESSES Pledge and award guidance notes C A M B R I D G E sustainable food pledge and award scheme We promote A strong local food economy

Europeans attitudes towards animal cloning

Shinichi Kobayashi Department of Animal Science and Resources Nihon University

Sustainable Food Policy Catering and Hospitality Services

Can Seafood Benefit from the Local Movement. S. Gary Bullen North Carolina State University

Capital Markets Day Atria Russia

Tulip Food Company. 28. November 2012

Market, consumer perception, new products and business model

Food waste and date labelling. - issues affecting the durability

S P A I N COMMON AGRICULTURAL POLICY

The compound feed industry in the EU livestock economy

Nutreco Ambition 2016

INSIGHT GROWTH BALANCE. STATISTICS 2013 beef

INSIGHT GROWTH BALANCE. STATISTICS 2015 beef

Pig producers Combining flavour, tradition, quality and consumer demands

Transcription:

Innovation and Trends in Consumer Marketing in Europe Karen Hamann The Institute for Food Studies & Agroindustrial Development IFAU, Enghave 4, DK 2960 Rungsted Kyst, DENMARK www.ifau.dk Email: karen@ifau.dk Introduction Marketing is about driving sales, and good marketing should lead to improved sales and growing market shares. These proceedings will outline marketing strategies applied in Europe to meet consumer demands and concerns about pork. About Marketing Pork In theory, marketing activities should lead to growing sales. If this is to succeed, then the company, farmer or organization wanting to sell must have an understanding of the market, its competition, and the customer. Hence, an understanding of consumers preferences for pork products, the possible and appropriate marketing channels and the companies market position are crucial elements in outlining a marketing strategy. The basis for a marketing strategy is for a company to know the product. This means, that there are vast differences in marketing a fresh meat cut and a processed product, and there are strong deviations between consumer preferences across Europe. The pork company must identify the consumer segment that should be targeted with the product in question, as well as have an understanding of the distribution channel. The latter refers to e.g. retail stores, farmers markets or food service operations. Advances in Pork Production (2011) Volume 22, pg. 197

198 Hamann Pork Consumption in the EU Pork is consumed in all EU countries. In 1999, pork consumption in EU-15 was in average 43.7 kg per capita, and in 2009 average consumption had dropped to 39.8 kg per capita. Consumption of beef dropped slightly to 18.7 kg per capita in 2009, and consumption of poultry increased to an average of 22.7 kg per capita in 2009. Average per capita consumption of meat is slightly higher in East Europe than in West Europe (Danish Agricultural Council, 2010). A European research project (www.q-porkchains.org) has proven that consumers favor cuts like the ham roast and tenderloin (Figure 1). Figure 1. Penetration among European consumers of selected pork cuts The biggest concerns for European consumers when purchasing pork and pork products are listed below. There may be some variations between countries and regions, but overall, price is still the most important parameter. There is a trend for a higher priority of meat quality in countries like France and Spain, whereas consumers in the Netherlands and Denmark are more concerned about animal welfare. In East European countries price is still the most important purchasing parameter. Price and taste Healthy food Production system (and attributes like free-range, organic etc.) Environmental impact Food safety Country of origin

Innovation and Trends in Consumer Marketing in Europe 199 In the light of the global warming-debate and discussions about carbon footprint there seems to be growing consumer awareness about these issues. So far this trend has only had a minor impact on pork consumption. Consumer Segmentation European consumers of pork may be segmented according to consumption patterns. The segment Low variety low frequency is characterized by a low consumption of pork and when pork is consumed, the consumers prefer a narrow range of products. This segment accounts for 18% of consumers (Verbeke et al, 2009). An important parameter for this group of consumers is sufficient product information available in the purchasing situation. The segment High variety medium frequency mainly consists of families and is characterized by a rather frequent consumption of many different pork cuts and processed products. The segment accounts for 51% of pork consumers. The segment High variety high frequency consists predominantly of less educated, overweight males in Northern Europe. These consumers have a positive attitude towards new products, they eat much pork, and they may have more than 1 serving of pork per day. The segment accounts for 19% of consumers. Pork with Attributes Schemes Targeting Pork There is a growing trend for implementing schemes in the European food sector. The schemes target specific production requirements, products origin, product qualities, food safety or defined parts of the value chain. The latter particularly refers to schemes for agricultural production. Examples of schemes targeting pork in Northern Europe are summarized in Table 1.

200 Hamann Table 1. Selected schemes targeting pork in Northern Europe. Country Name of scheme Main concepts Belgium Certus High quality pork Netherlands IKB Pork Quality assurance scheme targeting primary production and processing Netherlands Grasskeurmerk Free-range pork Denmark Friland Free-range pigs, focus on animal welfare Denmark Antonius High quality pork from selected producers Organic Pork Organic food accounts for 8% of food consumption in Denmark, but only 2% of pork consumption. Despite the low market share for organic pork, there are vast differences between the consumer segments purchasing organic pork. Market research has revealed 5 major consumer segments within organic food in Denmark (Figure 2). Figure 2. Consumer segments for organic food in Denmark, 2010 (as a percent of consumers buying organic food)

Innovation and Trends in Consumer Marketing in Europe 201 The largest consumer group for organic products in Denmark is the segment The Idealists. This segment s consumption of organic food is twice the average level of Danish consumers. Consumption of organic pork among Idealists accounted for 3.4% of the fresh pork and 4.4% of sliced pork (Association for Danish Organic Farming, 2010). The differences in consumer attitudes to organic pork and their purchasing reasons strongly impact industry s communication and marketing. To market organic pork to consumers in the Idealist-segment communication must target issues such as animal welfare, environmental impact, locally produced pork and better quality. To target consumers in the Discount segment issues in communication should be: fresh unprocessed food for you to prepare, healthy food, and price. Promoting Pork as Healthy Food In Northern Europe there is a strong preference for choosing food with a healthy profile. Several labeling schemes have been implemented to increase consumer awareness of the healthy food choice. In 2000 Finland introduced the Heart Label. The label can be used for food products (processed and unprocessed) that meet the requirements for low fat, low sodium, and in some products, also rich in fiber. Today, more than 85% of the Finnish consumers know this label from the retail stores. The largest catering company in Finland (Fazer) has developed meals that can be certified according to the requirements of the Heart Label. A label promoting healthy food was introduced in Denmark in 2009: The Key Hole labeling. It was already used in Sweden and Norway. The Key Hole promotes food that is low in sodium, sugar and fat, and when relevant rich in fiber. The Key Hole may be used for fresh as well as processed food. Today there are several examples of the Key Hole label being used for pork products: ready meals, liver pates and sausages. This way the Key Hole can promote pork products as healthy food. Summary Pork is consumed in all European countries as fresh pork and processed products. There are some regional preferences particularly for processed meat, whereas European consumers generally eat the same types of meat cuts. Consumers can be segmented according to preferences and purchasing patterns. Pork companies, organizations and other bodies use consumer segmentation and market trends to develop schemes targeting specific market segments. Other schemes aim to promote consumers choices of healthy foods. Therefore, marketing of pork and pork products to the European

202 Hamann consumers is about building a universe around the product, and not the product on its own. References Association for Danish Organic Farming. 2010. Segmenting and profiling Danish consumers of organic food. Presentation prepared in cooperation with GfK Consumer Scan. Denmark, July 2010. 55 pages Danish Agricultural Council: Statistics. 2009. Pork production, consumption and trade. Denmark, 2010. 43 pages Haltunen T., Lagnevik M., and Tanhuanpää J. 2009. Consumer food trends in the Baltic Area. Thematic Expertise TE-1. Prepared in the Baltfood project. July 2009. 53 pages. Hamann K. 2010. Certification schemes in the European food markets. Research work for building a database of European food certification schemes. Prepared for DG Agriculture, 2010. Scholderer J. et al. 2004. Organic Pork Consumer quality perceptions. Project paper no. 02/04. Aaarhus School of Business, Denmark, February 2004, 26 pages. Verbeke W. et al. 2009. European citizen and consumer attitudes and preferences regarding beef and pork. In Meat Science (2009).Refer to doi:10.016/j.meatsci.2009.05.001. 9 pages