HOW MI LLENNI ALS ARE - National Chicken Council · 2018-04-11 · 8.1% 14.9% edi bles 26.0% 11.3%...

HOW MI LLENNI ALS ARE CHANGI NG THE MEAT CASE:

What to expect as Millennials m ature

Chr is DuBois and John Craw ford Omni Amelia I sland Plantat ion July 13, 2015

2 Copyright © 2015 IRI . Confident ial & Propr ietary

1

3 4

Why Millennials m at ter

Millennial shopping behavior

Millennial im pact on the m eat departm ent

5 I m plicat ions

2 Millennial myths


BORN BETW EEN 1 9 8 0 AND 2 0 0 4


A BI G W AVE I S COMI NG U.S. POPULATI ON DI STRI BUTI ON BY AGE I N MI LLI ONS, 2013

Source: Census Bureau


SI LENT

BOOMER

GEN X

MI LLENNI ALS

DEMOGRAPHI CS MATTER! MI LLENNI ALS WI LL BECOME THE LARGEST POPULATI ON SEGMENT I N 2015

Source: Pew Research Center tabulat ions of U.S. Census Bureau populat ion project ions released 12-2014

Projected Popula t ion by Generat ion ( in Millions)

NOTE: Millennials refers to the populat ion ages 18 – 34 as of 2015


MORE PRI ME AGE W ORKERS

Source: BLS / www.calculatedr iskblog.com

+ 1 2 MM by

2 0 3 0


MI LLENNI AL MOVE I NTO PEAK SPENDI NG

< 2 5 5 5 - 6 4 6 5 +

Peak spending

2 5 - 3 4 3 5 - 4 4 4 5 - 5 4


GROW I NG PURCHASI NG POW ER OF MI LLENNI ALS

% of CPG Dollar Volum e

BOOMERS

MILLENNIALS

17%

29%

2 0 1 4 2 0 2 0

38% 32%

2 0 1 4 2 0 2 0

+ 7 0 % - 1 6 %


2 MI LLENNI AL MYTHS

1 0 Copyright © 2015 IRI . Confident ial & Propr ietary

MI LLENNI AL MEDI A BUZZ


MI LLENNI ALS ARE OF THE MOST NEGATI VELY STEREOTYPED GENERATI ONS I N HI STORY

To connect em ot ionally w ith th is generat ion, brands and adver t isers m ust : Move past sim plist ic generalizat ions

Understand the m isconcept ions

I dent ify with Millennials as unique individuals


4 MI LLENNI AL MYTHS

Millennials are the m ost self-absorbed generat ion ever

Millennials are not brand loyal

Millennials are not influenced by t radit ional m arket ing

1 2 3 4

Millennials reject “ t radit ional” life paths


MI LLENNI ALS ARE THE MOST SELF- ABSORBED GENERATI ON EVER 1

9 0 %

Equate success with being a good fr iend

6 8 %

Equate success with w ork ing for a cause

they believe in

5 8 %

Equate success with cont r ibut ing to the

com m unity

5 0 %

Share inform at ion about causes on

socia l m edia


MI LLENNI ALS REJECT ‘TRADI TI ONAL’ LI FE PATHS 2

7 3 % Employed

2 8 % are Marr ied

3 7 % Own a Home

3 8 % Have Kids

Tim ing of Lifestage Milestones Aren’t Linear

9 0 % Work / Life Balance

8 3 % Owning a Home

8 3 % Being a Great Parent

7 5 % Career Accomplishm ents

SUCCESS =


MI LLENNI ALS AREN’T BRAND LOYAL 3 4 4 % say they’re loyal to

the brands they buy

4 1 % GenX

4 5 % Boomers

2 in3 working with lim ited grocery budgets

5 1 % GenX

6 1 % Boomers

7 0 % choose pr ice over brand

5 4 % GenX

5 8 % Boomers

I n the absence of meaningful different iat ion, Millennials will switch for emot ional payoff.

6 2 % store brands as good as

nat ional brands

7 2 % will switch

for the r ight pr ice or deal

8 8 % saving money

makes them feel smart

8 3 % enjoy finding

the best deals


0 10 20 30 40 50 60 70 80 90 100

I tem PriceRequests from a Household Member

Shopper Loyalty Cards/ DiscountsRecommendat ion from a Friend/ Family Member

I n-Store CouponsCoupons Received in the Mail

I n-Store CircularsProduct Label/ Packaging

Signs or Displays I n-StoreCoupons Downloaded on My Sm artphone/ Tablet

Product reviews onlineNewspaper Circulars

I nform at ion or Promot ion from a Retailer App on my…Print Ads in Newspapers or Magazines

I nform at ion or Promot ion from a Retailer Website or EmailTV advert ising

I nform at ion or Promot ion from a Manufacturer Website or…

Factors I nf luencing Millennia ls’ Brand Purchase Dec isions

Millennials are st rongly influenced by the

recommendat ions of others in person, on social and in product

reviews.

MI LLENNI ALS AREN’T I NFLUENCED BY TRADI TI ONAL MARKETI NG 4


3 MI LLENNI AL SHOPPI NG BEHAVI OR


MI LLENNI AL SHOPPI NG PATTERNS ARE NOT THE U.S. NORM

MI LLENNI ALS TOTAL U.S.

2 0 2 annual

shopping t r ips

1 5 6 annual

shopping t r ips

- 1 .4 % $ change v. YA

- 2 .4 % $ change v. YA

8 5 grocery t r ips

6 4 Grocery t r ips

Grocery, W alm ar t , eCom m erce

showing t r ip growth

Grocery, Club, Dollar , Drug, eCom m erce showing t r ip growth

Club, Dollar , Drug, Mass

showing t r ip decline

Mass, W alm ar t showing t r ip decline


MI LLENNI ALS ARE CHOOSI NG BRANDS THAT MATCH THEI R NEEDS AND BELI EFS

HEALTHY/ NATURAL COST SAVI NGS I NNOVATI ON


ALMOST 4 0 % OF MI LLENNI ALS ARE MULTI - CULTURAL

6 0 % White

1 4 % Afr ican

Am erican

1 9 % Hispanic

5 % Asian

1 % Other


CPG CATEGORI ES ARE BECOMI NG I NCREASI NGLY AFFECTED BY DI GI TAL

8 % used a digital device

W HI LE SHOPPI NG

2 9 % of shoppers interacted digitally

PRI OR TO SHOPPI NG

7 5 % plan to use a smartphone / tablet

FOR FUTURE SHOPPI NG


MI LLENNI ALS ARE USI NG DI GI TAL TODAY

Own a sm artphone

4 8 %

say they’re unable to funct ion

without their smart phone

6 hrs/ day

average t ime spent online

4 5 % say they’re

early adopters of technology

2 9 % use a m obile

app to pay for purchases

5 2 % prefer brand updates in em ail vs.

text


DI GI TAL PLAYS A VARYI NG ROLE I N PRE -TAI L ACTI VI TI ES ACROSS CATEGORI ES SI GNI FI CANTLY MORE MI LLENNI ALS USED DI GI TAL PRE-TAI L THAN SHOPPERS AGED 35+

xxx xxx

xxx xxx

xxx

xxx xxx

xxx

% USI NG ANY DI GI TAL DEVI CE PRI OR TO GOI NG TO THE ST ORE

4 8 % personal

care

4 6 % frozen food

4 2 % OTC

medicat ions

3 7 % non-alcoholic

beverages

3 6 % meat / poult ry

3 5 % snacks

2 9 % dairy

2 6 % beer/ wine/

spir its


MORE MI LLENNI ALS ( 8 3 % ) MAKE GROCERY LI STS THAN OLDER SHOPPERS ( 7 2 % ) … …AND THE VAST MAJORI TY HAND-WRI TE THEM

xxx xxx xxx

8 0 % + OF SCHOOL SUPPLY, PAPER PRODUCTS AND PERSONAL CARE

SHOPPERS MADE LI STS

8 2 % 8 3 % 8 3 %

xxx xxx xxx 6 2 % 6 9 % 7 4 %

LI QUOR, SNACKS AND NON -ALCOHOLI C BEVERAGE SHOPPERS

W ERE LEAST LI KELY TO MAKE LI STS


LI ST MAKI NG AMONG MEAT/ POULTRY BUYERS

8 1 % Of Meat / Poult ry

buyers m ade a list

Q14. Which of the following did you do before you shopped for insert category from S.2? Q15. Did you m ake a note (m ental or writ ten) to buy…?

YET 9 0 % Do not list a brand


FI NAL DECI SI ONS ON THE SPECI FI C MEAT/ POULTRY I TEM( S ) OFTEN HAPPEN AT SHELF

3 6 %

3 2 %

1 9 %

1 3 %

Base = Past Week Buyers of Meat / Poult ry Products

Planning vs. Openness in the I tem Decision Process

Decided what to buy before

shopping and bought the

planned item

Planned to buy category, but decided on exact item in store

Unplanned decision in

store

Decided what to buy before

shopping but was open to changing

m ind at shelf

6 4 % of Meat / Poult ry buyers

are open to be ing influenced in store


MEAT/ POULTRY BUYERS SHOPPI NG ON DEAL

3 4 % 3 3 %

2 8 % 2 6 %

2 3 % 2 0 %

1 4 % 1 1 %

1 0 % 7 %

4 %

Looked for special/ sale pricing at the shelf

Selected a product because it was on sale

Checked the in-store circular / flyer for sales/ deals

Looked for special prom ot ions

Selected a product because it had the lowest pr ice per unit / volum e

Selected a product because it was the lowest -priced item

Looked for special displays

Selected a product because I had a coupon for it

Looked for coupons at the shelf

Used a digital device (sm art phone, tablet ) during the shopping process

I nteracted with/ asked quest ions of store personnel

I n - Store Act ivit ies Am ong Past W eek Meat / Poult ry Buyer s

Base = Past Week Buyers of Meat / Poult ry Q21. Which of the following did you do while you were shopping for category from S.2 ?


TAKEAW AYS

Millennials are now the largest demographic segment and will grow

New approaches will be needed to reach the changing shopper

64% of meat shoppers’ decisions can be influenced in store

1 2 3 4

Millennial CPG purchasing power will increase 7 0 % by 2020 + 7 0 %


4 I MPACT ON THE MEAT DEPARTMENT


GENERATI ON DEFI NI TI ON I RI DEFI NES THE GENERATI ONS AS FOLLOWS:

MI LLENNI ALS Born 1 9 7 7 - 1 9 9 7

Ages 1 8 - 3 8

GENERATI ON X Born 1 9 6 5 - 1 9 7 6

Ages 3 9 - 5 0

BABY BOOMERS Born 1 9 4 6 - 1 9 6 4

Ages 5 1 - 6 9

RETI REES & SENI ORS Born 1 9 4 5 & Ear lier

Ages 7 0 +


MI LLENNI ALS ARE 2 6 % OF THE POPULATI ON AND REPRESENT 2 3 % OF TOTAL STORE SALES

Source: IRI CSIA Total Store View, Total U.S. All Out let , 52 Weeks Ending 5/ 17/ 2015

1 3 %

4 0 % 2 1 %

2 6 %

Generat ion X Baby Boom ers

Ret irees Seniors Millennia ls

1 2 %

4 3 % 2 2 %

2 3 %



% OF POPULATI ON % OF TOTAL STORE $ SALES


BUT, MI LLENNI ALS MAKE UP MORE OF EDI BLE SALES


1 2 %

4 3 % 2 2 %

2 3 %



1 1 %

4 2 % 2 3 %

2 4 %



% OF TOTAL STORE $ SALES % OF EDI BLE $ SALES


2 3 .0 %

8 .1 %

1 4 .9 %

EDI BLES

2 6 .0 %

1 1 .3 %

1 4 .7 %

MI LLENNI ALS W / KI DS ARE A LARGER PERCENTAGE A ND ARE GROW I NG FASTER THAN THOSE W / O KI DS

TOTAL POPULATI ON

+ 0.8

+ 0.2

MI LLENNI ALS MI LLENNI ALS NO KI DS MI LLENNI ALS W/ / KI DS

IRI : CSIA Total Fresh Chicken (FW & RW), Total U.S. All Out let , 52 Weeks Ending 5/ 17/ 2015

+ 0.6

TOTAL STORE

+ 0.8

+ 0.1

+ 0.7

2 4 .1 %

8 .2 %

1 5 .9 %

+ 1.0

+ 0.2

+ 0.8


9 8 % 9 1 % 9 0 %

8 1 % 7 4 %

6 0 %

-0.3 -0.4 -0.6

-0.4 -0.4

+ 0.3

Total M/ P/ F

CHI CKEN BEEF/ VEAL PORK TURKEY SEAFOOD/

FI SH

Source: IRI CSIA Total Fresh Meat (FW & RW), Total U.S. All Out let , 52 Weeks Ending 5/ 17/ 2015

% Households Buying

THE PERCENT OF HOUSEHOLDS BUYI NG MEAT AND CHI CKEN HAS DECLI NED SLI GHTLY


$ 4 2 0

$ 1 0 7

$ 1 9 0

$ 9 0 $ 7 9

$ 3 6

+ 6%

+ 4%

+ 6%

-0.3

-0.0 -0.9

Total M/ P/ F

CHI CKEN

BEEF/ VEAL

PORK

TURKEY

SEAFOOD/ FI SH


$ Per Buyer

RI SI NG COMMODI TY COSTS HAVE I MPACTED SPENDI NG PER BUYER

+ 9%

+ 1% + 7%


$ 3 8 1

$ 1 2 5

$ 1 6 7

$ 8 1 $ 6 5

$ 3 5

+ 10% 9 1

+ 4% 1 1 7

+ 10% 8 4

+ 13% 9 0 Total

M/ P/ F

CHI CKEN

BEEF/ VEAL

PORK

TURKEY

SEAFOOD/ FI SH


MI LLENNI ALS SPEND LESS THAN AVERAGE ON ALL TYPES OF FRESH MEAT EXCEPT CHI CKEN

+ 17% / 7 9 + 4% / 9 7

$ Per Buyer


$ 4 3 3

$ 1 3 7

$ 1 9 1

$ 9 0 $ 6 7

$ 3 7

+ 17% 1 0 3

+ 9% 1 2 8

+ 16% 1 0 0

+ 18% 1 0 0 Total

M/ P/ F

CHI CKEN

BEEF/ VEAL

PORK

TURKEY

SEAFOOD/ FI SH


MI LLENNI ALS W / KI DS SPEND 2 8 % MORE ON CHI CKEN THAN AVERAGE

+ 27% / 8 5 + 11% / 1 0 2

$ Per Buyer


MI LLENNI ALS SPEND 1 2 4 % MORE W HEN FRESH CHI CKEN I S I N THE BASKET

$42 out of basket

$94 in basket

1 2 4 % More $ Spent

per Tr ip



MI LLENNI ALS W / KI DS SPEND 1 2 9 % MORE W HEN FRESH CHI CKEN I S I N THE BASKET

$45 out of basket

$104 in basket

1 2 9 % More $ Spent

per Tr ip



SPENDI NG ON FRESH MEAT AND CHI CKEN SKEW TO THE NORTHEAST

IRI : CSIA Total Fresh RTC Meat (RW only) , Total U.S. All Out let , 52 Weeks Ending 5/ 17/ 2015

$ Per Buyer I ndex

Meat 9 9 Chicken 9 9

Meat 8 7 Chicken 8 0

Meat 1 0 1 Chicken 1 0 0

Meat 1 1 3 Chicken 1 2 6


MI LLENNI ALS W / KI DS

9 5 %

8 1 %

3 9 %

2 7 %

6 %

9 1 %

8 0 %

3 0 % 2 3 %

4 %

MORE MI LLENNI ALS AND MI LLENNI AL W / KI DS PURCHASE FRESH CHI CKEN AT W ALMART AND MASS THAN AVERAGE

TOTAL HHs

-0.4

-0.8

+ 2.1

-0.3

ALL OUTLET GROCERY X WALMART CLUB M SC X


-0.7

MI LLENNI ALS

9 2 %

8 0 %

3 3 %

2 3 %

6 %

+ 0.1

-0.1

+ 4.0

+ 0.9

-1.0

1 0 2

1 0 0

1 1 1

9 9 1 4 6

+ 0.0

-0.2

+ 3.9

-0.1

+ 1.1

1 0 5

1 0 1

1 3 0

1 1 3

1 4 9

% Households Buying


$ 1 0 7

$ 8 0

$ 4 2

$ 6 2

$ 2 3

MI LLENNI ALS AND MI LLENNI ALS W / KI DS SPEND MORE ON FRESH CHI CKEN I N ALL CHANNELS

TOTAL HHs

ALL OUTLET GROCERY X WALMART CLUB M SC X

IRI : CSIA Total Fresh Chicken(FW & RW), Total U.S. All Out let , 52 Weeks Ending 5/ 17/ 2015

MI LLENNI ALS $ 1 2 5

$ 9 3

$ 5 1

$ 7 2

$ 2 4

1 1 7

1 1 6

1 2 3

1 2 3

$ 1 3 7

$ 1 0 2

$ 5 7

$ 7 3

$ 2 4

+ 9% 1 2 8

1 3 7

1 1 8

+ 4%

+ 3%

+ 4%

+ 13%

+ 4%

+ 3%

-1%

-6%

+ 5%

0%

1 1 6

1 2 7

1 0 5

+ 11%

-5%

+ 4%

+ 12%


$ Per Buyer


9 5 %

8 5 %

3 8 % 3 5 % 3 7 %

2 1 %

1 2 %


9 1 %

7 5 %

3 7 % 3 4 %

3 2 %

2 1 %

1 0 %

MORE MI LLENNI ALS PURCHASE CHI CKEN BREASTS AND GROUND CHI CKEN THAN AVERAGE

TOTAL HHs

-0.4

-0.9

+ 1.6


+ 0.1

MI LLENNI ALS

9 2 %

8 0 %

3 5 % 3 2 % 3 2 %

2 0 %

1 2 %

+ 0.1

+ 0.2

+ 1.8 + 2.7 + 0.6

1 0 1

1 0 7

9 5 9 3

1 2 0

FRESH CHK BREAST THI GHS W HOLE LEGS/ DRUMS W I NGS GROUND

+ 0.6

-0.1

-1.1

+ 1.5

-0.4

1 0 0

9 2

0.0

+ 1.1

+ 2.1 + 3.5 + 1.4

1 0 5

1 1 5

1 0 2 1 0 2

1 1 9

+ 1.7

-0.1

1 1 5

1 0 0

% Households Buying


$ 1 2 5

$ 7 8

$ 2 9 $ 2 3

$ 2 7

$ 4 3

$ 1 1

$ 1 3 7

$ 8 4

$ 2 6 $ 2 2

$ 3 1

$ 4 9

$ 1 1


$ 1 0 7

$ 6 4

$ 2 7 $ 2 2 $ 2 4

$ 3 7

$ 1 2

TOTAL HHs

+ 4%

+ 2%

+ 10%


-2%

MI LLENNI ALS

+ 4%

0%

-16% + 16%

+ 24%

1 1 7

1 2 3

1 0 6 1 0 3

9 3

FRESH CHK BREAST THI GHS W HOLE LEGS/ DRUMS W I NGS GROUND

+ 10%

+ 12%

+ 12%

+ 36%

+ 23% 1 1 6

1 1 9

+ 9%

+ 1%

+ 8% + 4% + 51%

1 2 8

1 3 1

9 7 9 9 9 3

+ 49%

+ 28% 1 2 9

1 3 5

MI LLENNI ALS AND MI LLENNI ALS W / KI DS SPEND MORE ON BREASTS, LEGS/ DRUMS AND W I NGS

$ Per Buyer


MI LLENNI ALS SEEKI NG HI GH PROTEI N CLAI MS , I NDEXI NG AT 1 1 4 TO TOTAL EDI BLES


1 1 %

4 2 % 2 3 %

2 4 %



1 0 %

3 9 % 2 4 %

2 7 %



% OF EDI BLE $ SALES % OF EDI BLE $ SALES W / PROTEI N CLAI MS


2 4 % 2 7 %

2 6 % 2 5 %

1 4 %

% of $ Spent

Total edibles

+ 1.0

+ 0.7 + 1.8 -0.1

+ 0.6

MI LLENNI ALS MAKE UP A HI GHER % OF TOTAL DOLLARS I N HI GH PROTEI N CATEGORI ES EXCEPT FOR SNACK NUTS

1 0 0 1 1 2 1 0 6 1 0 5

5 8

Yogurt Peanut But ter

Jerky Snack nuts



SOURCES OF PROTEI N CONTI NUE TO EXPAND

IRI : CSIA Total Fresh Meat (FW & RW), Total U.S. All Out let , 52 Weeks Ending 5/ 17/ 2015


8 7 % 8 8 %

8 8 %

8 7 %

8 2 %

9 1 %

MORE MI LLENNI ALS BUY VALUE ADDED CHI CKEN THAN AVERAGE

FRESH CHI CKEN ( FW & RW )

6 4 % 7 0 % 7 1 %

6 0 %

4 9 %

7 8 %

TOTAL HHs MI LLENNI ALS GEN X BOOMERS RETI REE / SRs


VALUE ADDED CHI CKEN ( FW )

1 0 1 1 0 2 1 0 0

9 5

1 0 4

1 1 1 1 1 2

9 4

7 8

1 2 2

MI LLENNI ALS W/ KI DS

% Households Buying


$ 1 0 7

$ 1 2 5 $ 1 1 7

$ 1 0 0

$ 7 4

$ 1 3 7

BUT MI LLENNI ALS I NDEX LOW ER ON SPEND PER BUYER ON VALUE ADDED VS. FRESH CHI CKEN

FRESH CHI CKEN ( FW & RW )

$ 4 8 $ 5 0 $ 5 7

$ 4 5

$ 3 2

$ 5 6

TOTAL HHs MI LLENNI ALS GEN X BOOMERS RETI REE / SRs


VALUE ADDED CHI CKEN ( FW )

1 1 7 1 1 0

9 3

6 9

1 2 8

1 0 4

1 1 9

9 5

6 6

1 1 7

MI LLENNI ALS W/ KI DS

$ Per Buyer


3 3 .2 %

3 9 .8 %

9 .8 % 1 1 .8 %

$ 2 9 $ 3 0

$ 1 2 $ 1 1

GROUND CHI CKEN I S ONLY A FRACTI ON OF THE SI ZE OF GROUND TURKEY W I TH TOTAL HHS AND MI LLENNI ALS

% HHs BUYI NG

TOTAL HHs GROUND TURKEY

MI LLENNI ALS GROUND TURKEY

TOTAL HHs GROUND CHI CKEN

MI LLENNI ALS GROUND CHI CKEN


$ PER BUYER

3 0 3 0 -1.1

+ 1.2

+ 3.0

-0.4 4 2 3 8

+ 12.4%

+ 3.5% + 5.0%

+ 22.9%


5 KEY TAKEAW AYS


TAKEAW AYS Fresh Chicken is a mainstay in the Millennial diet but there is room for growth

Millennials spend 129% more when Fresh Chicken is in the basket

Millennials are looking for high protein products throughout the store – and these products are proliferat ing

1 2 3 4

Millennials w/ Kids spend 28% more on Fresh Chicken – Chicken is well posit ioned to capture growth as Millennials move to the next lifestage

5 Ground Chicken is only a fract ion the size of Ground Turkey


W AYS TO CAPTURE THE MI LLENNI AL SHOPPER

I ncrease focus on in store m arket ing to influence m eat

shoppers

1 2 Aggressively shift dollars into digital


Scream “ the original source of

protein”

3 4 Take back the healthy m eat

m antel



Leverage exist ing st rength with

Millennials to gain shelf space and prom ot ion

5 6 Cont inue to evolve value added m eat

program s to appeal to Millennials



7 Expand Chicken into

the snacking occasion sim ilar to

how Turkey has evolved



Millennia ls represent a t least a $ 7 0 0 MM Opportunity for Fresh Chicken a t Reta il over the

next 1 0 years given ex ist ing t rends* .

LET’S PUSH I T TO $ 1 .5 B+

* given current ant icipated overa ll Millennia l grow t h, shift to h igher buying pow er and m ore HHs w / k ids


& ANSW ERS


Chris DuBois 312.342.8916

Chris.Dubois@I RI worldwide.com

John Craw ford

763.458.5101 John.Crawford@I RI Worldwide.com

HOW MI LLENNI ALS ARE - National Chicken Council · 2018-04-11 · 8.1% 14.9% edi bles 26.0% 11.3%...

Documents

Transcript of HOW MI LLENNI ALS ARE - National Chicken Council · 2018-04-11 · 8.1% 14.9% edi bles 26.0% 11.3%...