Canadian Beef Brand Strategy Canadian Meat Council Annual Conference Glenn Brand Chief Executive Officer May 6, 2010
Outline Canadian beef brand Consumer implementation Trade implementation Opportunities to leverage
The Brand Represents the public image and perception of Canadian beef with industry and consumers Personifies the product, services and industry Exudes the culture, passion and inspiration of Canadian beef by connecting emotionally with customers and consumers through its promise and actions
Characteristics of All Great Brands Legitimacy Brand positioning built around a promise it can legitimately deliver Distinctiveness purpose of the brand is to distinguish or differentiate itself in the market place Relevancy the message and value offer must be relevant to the audience and connect emotionally with stakeholders Consistency the hallmark of every great brand is the steadfast positioning of the value offer through its actions and communication
The Canadian Brand Pillars Brand pillars complement each other to support the Canadian beef brand Authentically Canadian World leader in beef safety and cattle production Superior meat quality and consistency Exceptional eating experience Healthy and nutritious
Authentic Canadian Trustworthy partner committed to shared success Rich tradition and history Clean, pristine and natural environment Committed to environmental stewardship and sustainability Raised and processed in Canada Canadians have strong preference for Canadian beef Globally, consumers prefer Canadian beef over other imports Global marketing and merchandising support
World Leader in Beef Safety and Cattle Production Global leadership in animal health Mandatory cattle ID program Comprehensive on-farm management programs Committed to responsible animal care Rigorous regulatory and inspection systems World class processing and distribution
Superior Meat Quality and Consistency Superior breed selection and genetics higher meat quality Grain fed for optimal marbling North America s most stringent grading system Higher saleable yields Ability to meet a broad range of specs and customer needs
Exceptional Eating Experience Exceptional flavour of Canadian beef recognized worldwide Grain fed beef offers exceptional flavour, juiciness and tenderness Extensive support to optimize eating quality and satisfaction Wide range of products for all meal occasions and culinary needs Committed to customer satisfaction and product innovation
Healthy and Nutritious Part of a healthy eating plan and active lifestyle Natural nutrient rich Beef is lean, when trimmed of fat 14 essential nutrients Excellent source of complete protein Excellent blend of nutrition, taste and convenience
The Canadian Beef Advantage Pristine and natural environment produces superior quality beef Rigorous regulatory and inspection systems make Canadian beef world leaders in animal health and safety World leading mandatory cattle ID system ensures customer confidence North America s most stringent grading system ensures superior quality and consistency Higher saleable yields increases profitability Global marketing and merchandising programs optimizes profitability
Brand Position Based on Extensive Consumer Research Consumers have a strong preference for Canadian beef over imports Canadian beef has perceived advantages in the areas of taste, quality and wholesomeness versus imports However, for the light beef eater (65% of consumers), there is a vague unease about increasing beef consumption due to nutrition and health concerns
Canadian Beef Brand Campaign Objective: Improve consumer perceptions of Canadian beef s healthfulness. Target Market: Women between 25 and 49 in the Southern Ontario and Alberta markets who eat beef one to two times per week. Long Term Goal: Increase demand among light users
2009 Consumer Campaign Results Improved consumer attitudes towards beef Those consumers who were aware of campaign improved their attitude towards beef on several key attitudinal measurements (6-11% increase) Increased beef sales Increase of kg volume from 6 kg/buyer to 7.5 kg/buyer during campaign, year over year comparison (directional) for those aware of the campaign Awareness of Canadian Beef logo increased 10% after the campaign Results Ipsos and Nielson Homescan, pre and post campaign
2010 Campaign Will Reach 95.2% of Target Audience 26.9 times Timing: 3 month campaign March - May 2010 Media: radio, magazine, outdoor billboards, internet Supported by health professional, PR and retail point of sale materials
Domestic Trade Implementation Canada s largest and most important market Domestic market is about 62% of beef production Canadian beef is about 80% market share
Strong Trade Uptake of Beef Brand 63 brand licenses have been signed with another 61 in progress Canada s largest packers, retailers, foodservice chains and processors Continued growth in equity generated through millions of impressions across all mediums print, TV, packaging
Foodservice Leveraging the Canadian Beef Brand 23 foodservice customers have signed licensing agreements Licensees span from large multi-nationals to nontraditional users
Canadian Beef s Largest Foodservice Customer Using the Brand McDonald s Canada uses the brand to reinforce quality statements McDonald's Canada proudly supports the Canadian beef industry. Beef is at the core of our menu and with the help of our dedicated partners in the industry, we are meeting the needs of our customers by delivering safety, quality, consistency, and innovation in our varied beef offerings. Jeff Kroll, Senior Vice-President Supply Chain McDonald s Canada.
Non-Traditional Customers Using the Brand 173 Panago Pizza locations across Canada March 1- May 31, 2010 promotion with a non traditional beef market Featured multimedia advertising T.V., flyer activity and web advertising
Boston Pizza Using Brand to Launch First Burger on Menu Boston Pizza 10 for $10 fall 2009 promotion National multi media campaign from coast to coast Permanent Menu offering utilizing the brand on menu and on line
Retailers Leveraging the Canadian Beef Brand 16 retailers have signed license agreements Sobeys, Costco, and Safeway are among the 16 retailers collectively providing national exposure
Canadian Beef s Largest Retail Customer Leveraging the Brand All Costco outlets display the brand logo on-pack and above the fresh meat case On-pack label would account for over 40 million impressions annually Brand prominently incorporated in new beef programs such as Slice and Save, and Canada Prime product being offered at select locations Beef video played on in-store flat panel television screens creating 3.2 million brand impressions annually
Safeway Key Partner in Western Canada Safeway Canada distributes over 150 million flyers annually with Canadian beef and the brand mark featured weekly Strong partner in multi-media campaign utilizing: rail cards and sign cappers, on-pack labels, branded POS holders, radio contest support, and Consumer website support
Processors Using the Canadian Beef Brand 17 packers and processors have signed the Canadian brand licensing agreement to date
Why Utilize the Canadian Brand Mark on Processed Products? Over 80% of consumers participating in focus groups for the Lou s Quickn-Easy products agreed that they were more willing to purchase knowing that the product is made from Canadian beef *all beef packaging carries the Canadian beef brand logo
Opportunities to Leverage Canadian Brand Capitalize on consumer preference and growing awareness Packer, processor, retail and foodservice opportunities to drive demand Co-brand is an opportunity Contact your BIC representative
Thank You