Consumer Insights Report. Consumer Beef Index. July Funded by The Beef Checkoff. Consumer Beef Index
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1 Consumer Insights Report Funded by The Beef Checkoff
2 Background and Objectives The (CBI), initially developed in late 2006, has been used since then by the beef checkoff program to: Track changes in consumers perceptions of and demand for beef relative to other meat proteins, particularly chicken, its primary competitor. Assess the impact of the beef industry s communications efforts on consumer attitudes and behaviors. Measure the extent to which consumers consider the positive aspects of beef to outweigh the negatives. Monitor the areas of relative strength and potential vulnerability for beef. Provide input for national communication strategies. A master CBI database has been established from over 17,900 interviews conducted since the program was begun, and continues to be used for ongoing strategic analyses. 2
3 Methodology The second 2014 tracking wave was conducted online July 18 th -28 th using the standard CBI on-going survey format, with 1,068 consumers who were: years of age. Nationally representative of the U.S. population, balanced for census profile distributions of gender, age, ethnicity, region and child presence Screened to exclude those who do not influence their households grocery shopping, meal preparation or selection of away-fromhome food choices. For continuity, only the core year old consumers (N=1,028) from this second 2014 wave are included in tracking comparisons to the previous 15 waves. 3
4 Methodology This addition of year-olds allows for better examination of generational differences, as the Baby Boomers generation has begun to significantly age out of the previously tracked range. To counter an increasingly prevalent problem with online surveys, additional measures to catch those paying little attention to survey content ( straight-liners and speeders) have been incorporated into the CBI surveys beginning in 2014, leading to termination if specific instructions are not read and followed. National sampling for the CBI continues to reflect updating to reflect the latest (2012) census distribution estimates, including the growing group of older Boomerang Millennials those years of age and still (or again) living with their parents. 4
5 Executive Summary 5
6 Favorability Toward Beef Buckets Positive perceptions of beef are still at historically high levels, with a slight softening in the last 12 months due to weakness in underlying measurements of beef value (not surprising due to recent high prices of beef) Beef 23% 26% 22% 33% 26% 30% 27% 28% 27% 30% 27% 25% 26% 24% 23% 26% Bucket 1 Positives strongly outweigh negatives 46% 45% 48% 45% 45% 43% 46% 47% 48% 47% 48% 47% 48% 52% 51% 47% 73% Bucket 2 Positives somewhat outweigh negatives 20% 20% 20% 16% 20% 18% 19% 16% 17% 7% 10% 8% 9% 9% 8% 8% 8% 10% 15% 7% 17% 18% 18% 17% 17% 18% 8% 9% 8% 7% 9% 8% Bucket 3 Negatives somewhat outweigh positives Bucket 4 Negatives strongly outweigh positives Jan 07 May 07 Feb 08 Jul 08 Mar 09 Jul 09 Feb 10 Jul 10 Feb 11 Jul 11 Mar 12 Jul 12 Feb 13 Jul 13 Mar 14 Jul 14 Base: Total (N = 1,000+ per wave) Key: Significant change in year-to-year trend () or/and from July 2013 () Q.35: Considering all you know about beef, would you say the positives of beef outweigh the negatives or do the negatives of beef outweigh the positives? 6
7 Executive Summary & Conclusions Taste continues to be the strongest driver of main meal selection decisions, but it is clearly moderated by budget considerations. Importance of Main Dish Characteristics Top 4 At Home 100% 90% 80% 70% 60% 88% 88% 88% 91% 81% 79% 83% 83% 82% 84% 78% 79% 73% (New item July 14) 50% 40% 30% 20% 10% Extremely/Very Important Great tasting Good value Safe Fits moderate budget 0%
8 Executive Summary & Conclusions Millennials, particularly those with children in the household, have encouraging views of beef s taste, value and product integrity. Top 2 Box Beef Performance At Home Great tasting 89% 90% 95% Crave 66% 70% 78% Eat 3+ Times a Week Fits moderate food budget 57% 59% 66% Total Beef 32% 35% 45% Total Good value 56% 63% 71% Millennials Parents* (20-34) Chicken 43% 48% 54% Millennials Parents* (20-34) * Parents adults in households with children <18 y.o. Key: Significantly higher/lower than non-segment ( ) 8
9 Executive Summary & Conclusions Millennial parents are also interested in food, health and nutrition. They are more likely than other types of consumers to: Enjoy cooking - cook for fun, barbeque, use cooking as a creative outlet, try new beef recipes Need convenience not having enough hours in the day, eating on the go, eating out or using pre-prepared meals Stay healthy exercising regularly, eating more low fat foods They appreciate receiving 59% information about selecting and preparing beef. 48% They also appreciate having preprepared beef meals available in the deli and fresh meat case. 18% 45% Food and Health Involved (FHI) 12% Total 13% Millennials Parents (20-34) Food and Health Involved Influencers (FHII) Key: Significantly higher/lower than non-segment ( ) 9
10 Current Delivery Meal Usage Delivery of beef meals directly to the home is close to 1 in 10 currently, with a fairly even split on electronic versus mail/phone ordering. Portion of last 10 beef meals ordered for delivery 0 91% 88% 86% % 4% 3% 3% 4% 4% 3% 4% 7% Total Millennials Parents (20-34) PI For Deliveries, Ordered: Electronically (online, smart phone) By mail or by calling 48% 57% 51% 52% 43% 49% Base: Total (N = 1,028), Millennials (N = 413), Parents (N = 123) Key: Significantly higher/lower than non-segment ( ) Q.40f: Of those last 10 beef meals, how many were ordered online, by phone or by mail for delivery to you, whether to your house, apartment, hotel room. school/office or other location? Q.40g: Of those times the beef was delivered, how 10 many of those had been ordered electronically and how many were ordered by mail/calling for delivery?
11 Anticipated Future Delivery About a quarter of the population however sees a general increase in the use of home delivery services. Next few years deliveries of meals, meats or other groceries Increase (Net) 20% 26% 28% Increase a lot 5% 7% 7% Increase a little 15% 19% 21% Stay about the same 79% 73% 70% Decrease (Net) 1% 2% 2% Total Millennials Parents (20-34) Base: Beef Eaters (N = 978), Millennials (N = 397), Parents (N = 122) Key: Significantly higher/lower than non-segment ( ) Q.40h/i: Over the next few years, do you anticipate that your use of services that deliver meals, meats and other groceries will? 11
12 Methodology Overview The (CBI) is a semi-annual national survey completed with 1,000+ qualified U.S. consumers ages per wave, currently on-going for 16 waves from 2007 through To consistently track on-going market activities/perceptions, the CBI is conducted in late February (after atypical holiday season activities) and mid-july (after atypical 4 th of July grilling activities). The initial sample is drawn from nationally representative panels by the program fielding partner, IPSOS, one of the leading research sample and data collection firms. The master CBI database that has been established from over 17,900 interviews continues to be used for ongoing strategic analyses. Added Qualification Screening To maximize confidence in having nationally representative results the sample is balanced (using nested quotas) against current* U.S. census profile distributions for gender, age, ethnicity, region and child presence (Q.1a/1b/2/2ab/6) For food/meal involvement 3 questions are used to exclude those with no influence on their households grocery shopping, meal preparation or selection of away-from-home food choices (Q.8/9/10) For security termination of those with employment or recent survey work in sensitive food or marketing/research fields (Q.4/5) To identify and terminate those paying little attention to survey content ( straight-liners and speeders) 3 questions with required responses, leading to termination if instructions are not read and followed (Q.2c/13/32) A review of response patterns for all individual respondents before the closing of a wave s fieldwork to allow for the replacement of selected and eliminated respondents Sampling Updates *Balancing of the national sampling for the CBI was updated in 2012 to reflect the latest census distribution estimates, including the growing group of older Boomerang Millennials those years of age and still (or again) living with their parents. Starting in 2014, additional sampling (beyond the age of 65) has been done for cohort analyses as Baby Boomers reach are reaching ages above
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