Post on 18-Dec-2015
Marketing Presentation by
Bill Joyce
HCC Annual Conference, Llandudno
12th November 2009
Climate ChangeThe Marketing Perspective
•What do lamb consumers really think about climate change and carbon footprints?
•Why do consumers buy lamb and are all consumers the same?
•Let’s ask the consumer
4
4
Carbon footprint/Climate Change
Not important
Brain says ‘yes’; should do in future – occasionally, will now think about it
Good idea but only if everyone does it
My concern is the freshness of it, not necessarily the carbon footprint. I think big industry plants have more to do with this subject than whether the meat came over on a boat. It’s not a big concern for me. (Male, 25-34, Wales)
That should be important [but isn’t] if it’s coming from New Zealand. Perhaps I should be considering it. The environment is important. When I go to the butchers next time I’m going to wonder where it’s come from. (Female, 35-44, Home Counties)
if I had another [important factor] it would be UK sourced, more than carbon footprint. (Female, 45-54, Midlands)
Lamb Demand Drivers Ranking
Base: All nowadays lamb purchasers (629)
1. Taste 11.7
2. Tenderness11.0
3. Leanness10.0
4. Price 9.5
5. Colour 9.4
6. Right size 8.6
7. Quality mark / stamp 7.6
8. Country of origin 7.6
9. Traceability 7.1
10. Seasonality 6.5
11. Organic 5.8
12. Carbon footprint 5.2
1. Taste 11.5
2. Tenderness10.7
3. Price 10.6
4. Leanness 9.9
5. Colour 9.3
6. Right size 8.6
7. Country of origin 7.6
8. Quality mark / stamp 7.5
9. Traceability 6.9
10. Seasonality 6.4
11. Organic 5.6
12. Carbon footprint 5.3
Special occasion Everyday
Source: Beaufort Research
6
Demand Drivers Ranking: Lamb for a ‘Special Occasion’
Taste 1 1 1 1
Tenderness 2 2 2 2
Leanness 3 3 4 3
Price 4 4 3 6=
Colour 5 5 5 4
Right size 6 6 6 5
Quality mark/stamp
7 8 7 8
Country of origin 8 7 8 6=
Traceability 9 9 9 9
Seasonality 10 10 10 11
Organic 11 11 11 10
Carbon footprint 12 12 12 12
- Shoppers at different supermarkets -
Base: All nowadays lamb purchasers who shop at each supermarket for meat (base sizes in brackets)
(260) (186) (161) (59)
7
Taste 1 1 1 1 1
Tenderness 2 2 2 2 2
Leanness 4 3 3 3 3
Price 3 4 5 5 4
Colour 5 5 4 4 5
Right size 6 6 6 6 6
Quality mark/stamp
7 8 8 8 7
Country of origin 8 7 7 7 8
Traceability 10 9 9 9 9
Seasonality 9 10 10 10 10
Organic 11 11 11 11 11
Carbon footprint 12 12 12 12 12
- Age and Social Class -
16-34(148)
Demand Drivers Ranking: Lamb
Base: All nowadays lamb purchasers in each category (base sizes in brackets)
35-54(243)
55+(228)
AB(172)
C1(457)
8
Assuming price and appearance was same, choose Welsh or New Zealand Lamb?
2837
20
14
12
8
5750
72
South Midlands Wales
Welsh Lamb
New ZealandLamb
Makes nodifference
By Region
(252) (259) (118)
Base: All nowadays lamb purchasers in each region (base sizes in brackets)
HCC STRATEGIC MARKETING GOALS
What we are trying to do:
To position Welsh Lamb, Welsh Beef and Welsh Pork
as premium brands To diversify Welsh Lamb, Welsh Beef and Welsh Pork
into premium market sectors internationally
MARKETING CONTEXTLamb Prices
39816
39823
39830
39837
39844
39851
39858
39865
39872
39879
39886
39893
39900
39907
39914
39921
39928
39935
39942
39949
39956
39963
39970
39977
39984
39991
39998
40005
40012
40019
40026
40033
40040
40047
40054
40061
40068
40075
40082
40089
40096
40103
40110
40117
40124
40131
40138
40145
40152
40159
40166
40173
60
80
100
120
140
160
180
200
220
Welsh SQQ Lamb prices
200720082009
Source: HCC
p per kg lw
MARKETING CONTEXTWhere Welsh Lamb is ConsumedPercent – source: Red Meat Action Plan
Wales Rest of UK Outside UK0
10
20
30
40
50
60
70
WHAT HCC MARKETING DELIVERS
An integrated advertising, promotion and public relations campaign with strong brand identity both in the UK
and abroad
2009 Marketing ProgrammeWelsh Lamb 48 Sheet Poster
2009 Marketing ProgrammeWelsh Lamb – Press & Magazines
Advert Loose Insert Recipe Leaflet
2009 Marketing ProgrammeWelsh Lamb – Jamie Magazine
TELEVISION
• Powerful medium for delivering brand recognition in target markets - People watch TV ads even if they claim they don’t!
• Influences trade to stock Welsh Lamb
• But needs support and reinforcement of other media to be most effective
2009 Marketing ProgrammeTV ADVERTISING Matthew Rhys voiceover
2009 Marketing ProgrammeONLINE – EatWelshLamb.com
2009 Marketing Programmee-newsletter – November 2009
WORKING WITH RETAILERS
Total Butchers12%
All Others5%
Supermarkets82%
Retailer Share of Lamb Volume Sales UK 52 w/e 28/12/08
Source: TNS Worldpanel
2009 Marketing ProgrammeOn Pack Competitions - Waitrose
On Pack Label Microsite
2009 Marketing ProgrammePoint of Sale
Spring Autumn
EDUCATION AND PUBLIC RELATIONS
• To promote the health benefits of eating red meat as part of a balanced diet.
• To influence young people to try/cook Welsh Lamb and Welsh Beef
• Encourage public authorities to use Welsh meat• Influence the influencers – e.g. Food journalists• Face of Welsh Lamb to reinforce provenance/PGI
BUILDING BRAND REPUTATIONIn Restaurants
“ I find Welsh Lamb is the tastiest – maybe because they have so much lush green grass on which to graze. Whatever it is, the farmers are doing something right”.
Anthony Demetre
Wild Honey - Mayfair
Arbutus – Soho
(Both Michelin Star
Restaurants)
RESULTS
• Does Advertising and Promotion work?
• What are we measuring?
Recognition of Lamb Origin in the Meridian Advertising Region (Southern England)
Source: MarketTools
Consumer opinion of Welsh Lamb
Meridian TV Area (Southern England) measurement of response to advertising
Source: MarketTools
(% Agreeing) Oct 05 Oct 06 Oct 07 Oct 08 Oct 09
Welsh Lamb is a brand I can trust
56 59 70 74 75
Welsh Lamb is a brand for me
36 48 61 64 66
Makes me more likely to buy Welsh Lamb
33 40 59 57 59
I would choose Welsh lamb over lamb from
other countries
21 25 43 50 45
The message is believable
66 71 77 78 84
EXPORTSOne third of all Welsh Lamb salesand growing
• In 2008 Welsh meat exports were worth £108 million on ex works basis of which £91 million was Welsh Lamb
• Main markets: France, Italy, Belgium, Germany and Spain
• New markets (Welsh Lamb sales in last 2 years): UAE, Hong Kong and Singapore (£200,000+ in 2008)
• Exports growing strongly with exchange rate as main driver
INTERNATIONAL TRADE EXHIBITIONS
ANUGA Exhibition,
Germany
SIAL Exhibition, France
WELSH LAMB ABROADGULFOOD 2009 - sampling
WELSH LAMB ABROADIn-store sampling Dubai
WELSH LAMB ABROAD Italy and France
WELSH LAMB ABROADIn-store TV Advertising in France
WELSH LAMB ABROAD Supermarket in Belgium
Launch of Welsh Lamb at Cactus SupermarketsLuxembourg – November 2009
WELSH LAMB ABROAD
WELSH LAMB ABROADCactus LuxembourgRecent success in a new market
• Cactus is the leading retailer in Luxembourg with approx 50% market share.
• Cactus is a high quality retailer selling premium and differentiated products.
• Cactus was selling a mixture of NZ and UK lamb without communication and clarity of origin.
• Cactus is now committed to selling properly branded Welsh Lamb
WELSH LAMB ABROADCactus Luxembourg
Marketing Programmeo15 minute documentary exclusively about Welsh Lamb
on Luxembourg national television in prime time.oDedicated webpage on Welsh Lamb & link to
documentary on Cactus website : http://www.cactus.lu/page.asp?id=2182&langue=FR
oPOS for Welsh Lamb installed at store level. oAll Welsh lamb labelled on pack (Welsh Lamb logo and
PGI)o In-store TV advertising for Welsh LamboMassive jump in awareness of Wales and Welsh Lamb in
Luxembourg.
Cactus - Luxembourg
• In store television advertising
Cactus LuxembourgWelsh Lamb display
OUTLOOK
• Lamb demand has been resilient during the recession. By reason of reduced
supplies, ‘feelgood’ buying, use of cheaper cuts and supermarket promotions.
• Major retailers will continue to expand share of UK lamb market at expense of
independent butchers while overall lamb market will decline
• Lamb roasting cut performance likely to improve along with the economy
• Lamb at retail in the UK is now expensive and consumers resistant to paying
more
• However, tight supplies and export demand are likely to maintain lamb returns
• Exchange rate?
Thank you.