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Cattle Feeders Association |
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| HOME | Texas
Cattle Feeders Association |
| 2001 Cattle Feeders
Annual -- Consumer Marketing |
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The 4:30 Dilemma |
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By Larry Stalcup |
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The beef industry continues its efforts to meet
consumers where they are with products that deliver the convenience and nutrition they desire. Chances are your family faces it more often than not. The families who buy your product certainly do. In the world of the 21st Century, it is as much of a thorn for U.S. households as running out of bottled water and having the computer crash. It's the 4:30 dilemma-the challenge facing the person in charge of dinner preparation and not knowing what to serve and, much less, how to prepare it. The good news is that the beef industry has come to the rescue by taking giant strides in easing the problem. The industry is identifying what consumers want in a tasty, tender and nutritious food that is convenient and can be prepared in a half-hour or less; and it's enabling the preparer to feel the satisfaction of serving a home-cooked meal. The pot roast just doesn't fit, or does it? The dozens of Beef Made Easy type products now available to grocery shoppers makes a roast or meatloaf, ones like grandma used to make, only a few minutes of microwaving away. These consumer-friendly, tasty and healthy beef products are not the TV dinners of the "I Love Lucy era." They are beef products that help the industry solve the 4:30 frenzy for all ages. Dr. Roger Blackwell, The Ohio State University professor of marketing and human behavior, and Dr. Brad Morgan, Oklahoma State University assistant professor of animal science, are among the best at reading what the consumers want in foods, then making recommendations as to how the beef industry can serve up foods they desire. They shared their accumulated wisdom with cattle feeders during the 2000 TCFA Annual Convention in Oklahoma City. "It's difficult to determine if we're selling to 'customers' or 'consumers,'" says Morgan. "We need to be more consumer-focused. It's more than just trying to meet a formula price or sell live cattle." Blackwell adds that understanding consumer behavior is a must. He insists that the industry must concentrate less on the "supply chain" and more on the "demand chain." The industry needs to "market to the niches of consumers," says Blackwell, author of a number of books, including "From Mind To Market" and "Consumer Behavior." Meal in a Moment Morgan cites some interesting data on consumer eating habits and trends. For instance, the average consumer makes 2.2 trips to the supermarket a week. Two-thirds of the dinner decisions are made on the same day. And three-fourths-yes, 75%-of these decisions are made at 4:30 in the afternoon. "Some 60% of these shoppers buy pre-cut, ready-to-serve vegetables and salads," says Morgan, adding that "40% spend less than 30 minutes on meal preparation. "Thank you, Stouffer's Skillet Sensations, Hormel Beef Tips With Gravy, Chef's Choice Beef Stir Fry and other meal-in-a-few-minutes products with beef; products that are microwaveable or pre-marinated for a better cooking experience. Another study cited by Morgan indicates that the number of meals purchased at a restaurant but eaten at home has increased by 45% since 1984. Along with pizza, burgers, and tacos, roast beef subs, take-out oriental beef broccoli or pepper steak and many other foods are bought out, but dined on in the den. Teens and Seniors While generations apart in both age and appetites, both groups are key markets for the beef industry. "Surprisingly, 72% of teens participate in meal preparation," says Morgan. "About 36% shop for groceries and 20% prepare the main dish." In the '50s, only 8% of the population was age 65 or over. That number grew to 13% in '00 ... and will grow to 20% by 2030. "About 26 million elderly live in their own household, and they have money to spend," says Morgan. "They want and need convenient types of meals that are good for you." Blackwell says older consumers will continue to take a different look at what they eat. Many have lost their spouse, so they often prepare meals for only one. And many, many live well into their 90s or even past 100. "How does the beef industry provide products these people want? It's by determining their niche, their demand for foods like beef," says Blackwell. What do 17-year-olds want? What do 57-year-olds want? What do 97-year-olds want? It's up to the beef industry to find out in order to market to their niche. The largest growth in the American population will be among ethnic groups. The birth rate among these families will likely remain higher than Caucasian families, says Blackwell. "Immigration is the only thing that is keeping the population from going down," he says. "... Are you convinced that the beef products produced today are ideally suited for this market segment? Are products well communicated, delivered in forms they want and with recipes they can use? Brand or Commodity? Some believe it would take a crystal ball to read what type of foods consumers will want down he road. Not Blackwell. He stresses that members of the beef industry, whether it's a producer, feeder or packer, can do a better job of reading the consumers' mind. "If a producer hasn't gone into homes in urban America and watched how they are preparing meals, then he cannot be a good producer," he says. "...You need to put beef in the store that is consumer friendly.... You need to supply what the consumer will buy." This "mind to market" way of thinking points directly at branded products. "And branding is the most promising way to add value to beef," says Blackwell. "If you don't have a brand, then you are a commodity." He looks at common brands of other consumer goods. The Y-generation flock to Old Navy and Abercrombie & Fitch for clothing. Their soft drink is Mountain Dew. The beef industry needs brand-like products to reach this group of consumers. The good news is, thanks to the beef checkoff, the beef industry is doing exactly what Blackwell and Morgan advocate and is answering the questions they pose. While there is still a larger-than-needed void in the number of branded beef products that are consumer friendly, the industry is sending more and more such items to the meat case. In fact, more than 300 new beef convenience products have been introduced since 1998, with 50 convenient beef products carrying the Beef Mark of Quality symbol. Some were launched at the 2001 NCBA convention in San Antonio. They included: Farmland Ground & Browned Fully-Cooked & Seasoned Ground Beef; Cheeseburger Fries distributed by Sam Hausman Meat Packer, Inc., and Hormel Always Tender Grilled and Italian Beef Filets. Also, No Name Steaks' Quick-N-Tender U.S.D.A. Choice Boneless Beef Filets-a product launched about one year ago-has seen continued growth and distribution. The NCBA reports that Beef Made Easy programs, reorganizing the meat case by cooking methods, have been implemented in 20 grocery store chains and 6,000 stores nationwide. In addition to product development, promotional programs have done much to educate consumers. Studies show that 94% of Moms ages 25-54 have been reached with positive messages about beef nutrition and convenience through print, television, radio and Internet advertising. Category awareness of beef is up 20%. How have cattlemen benefited? By a net gain of over five bucks ...generated by the $1-per-head checkoff program. At the NCBA convention, University of Florida economist Dr. Ron Ward reviewed reports on the impacts of the beef checkoff from 1987 through the first quarter of 2000. He concluded that the average dollar spent through the beef checkoff generated a $5.67 net gain to cattlemen. Checkoff assessments totaled $968 million in the study period. Based on his economic models, Ward estimates they generated $6.46 billion in increased revenues coming back to the industry. Undoubtedly, promotional efforts must continue in order to reach even more consumers and satisfy their niche for food by providing a variety of beef products. "The beef industry is in the entertainment industry," says Blackwell, stressing that producers must continue to be more responsive to "what we consume," not what we produce. So in the future, when one's favorite Web site crashes in late afternoon, at least worries about "what's for dinner" will be reduced. It's beef, of course. Editor's Note--Larry Stalcup is a freelance ag writer based in Amarillo. |
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Amarillo,
Texas U.S.A. 79106