11/23/2009

1

Retail Meat Marketing

• Is there a system to the madness?

• How is the grocery store set up?

• In the past

– Stores were set up to attract a certain clientele

– No attention to flow or customer traffic

Retail Meat Marketing

• Now– More focus on consumer traffic patterns

– More focus on perishable departments• Food Court set ups

– Are you price driven or quality driven

– Specialty Stores• Whole Foods

• Mexican Grocery Stores

Check-out Stands

Produce

Deli / B

akery

Meat Department / Lunchmeat / Frozen MeatMilk

Dairy Products

Bread / Soda

Frozen Foods

Entrance

Chips / Snacks

Controlling Customer Traffic

Food Court Set upEntrance

Produce

Deli

Dairy / C

heese

Bakery

Meat DepartmentMilk / Frozen Foods / Dairy Products

Soda

Chips / Snack

Why the Focus on Perishable Departments?

Wal-Mart Kroger

What’s the Difference

11/23/2009

2

The Super Store

• Individual stores

– Bakery, Produce Stand, & Butcher

• Supermarket

• The Super Store

– One Stop Shopping

– Wal-Mart Supercenter, Meijer, Super Target, Big K (K-Mart)

Focus on the Meat Department

• Should have specific set up

• Ground Beef and Chicken toward end of the traffic flow

• Will re-arrange meat case to focus on seasonality – Focus on middle meats in the summer

– Focus on roasts in the winter

Evolution of the Meat Department

• Butcher Shop

• Supermarket

• Personal, one on one service

• Combination meats and deli

• Self service case

• Fresh meat

• Carcasses to boxed meat

• Now totally changed

The New Meat Department

• What’s for dinner

• 4:30 meal problem– >70% of Americans do not know what they are having for dinner at 4:30 pm

• Products needed to solve this problem

• Homemakers have 15 minutes to prepare dinner

11/23/2009

3

Solving the 4:30 Meal Problem

• Convenience

– User friendly

– Heat ‘n Eat

– Ready to Eat

– Pre-flavored

– Pre-marinated

Other Trends/ Niche Markets

• Organic

• Natural

• Grass/ Forage Fed

• Free Range

• Free Roaming

• Animal Compassionate

• Locally Owned/ Raised

• No added nitrites

Organic Meats

• 17 to 20% growth annually

• Projected to $8 Billion in 2010

• Requirements• Fed 100% Organic feed and Pasture

• No synthetic pesticides or fertilizers

• No GMO’s• No sewage sludge as fertilizer

• No irradiation of final product

Natural Meats• USDA states Natural is “do not contain any artificial ingredients or are minimally processed, such as those that are smoked, roasted, frozen, or ground”

• No antibiotics, or growth promotants are in the new volunteer definition

Grass/ Forage Fed

• More Popular

• Lower levels of Saturated fat

• Higher Omega-3 Fatty Acids

• 90% of the animals energy must come from forage

+/- of Organic, Natural, & Grass Fed

Positives

• Fills a niche market

• There is a market

• Demands higher retail price

• Positive image of animal agriculture

• Matters to some people!!!

Negatives

• Higher over head

• Slow animal growth

• Nutritional values?

• Flavor

• Food Safety

• Market difficult to find and identify

11/23/2009

4

No Added Nitrites

• Covered this in processed meats section

• Carcinogen (MIT Study)

• 40#/ d for 40 years to develop cancer

• Add sea salt, vegetable purees which contain natural nitrites

Another Trend in Grocery Stores

• Whole Foods

• Farmers Markets

Top Retailers in 2008

1.) Wal-Mart = $378,799,000,0002.) Home Depot = $77,348,000,0003.) CVS Caremark = $76,329,500,0004.) Kroger = $70,235,000,0005.) Costco = 64,400,155,0006.) Target = $63,367,000,0007.) Walgreen = $53,762,000,0008.) Sears = $50,703,000,0009.) Lowe’s = 48,283,000,00010.) Supervalu = $44,048,000,000

Top Grocery Stores

1.) Wal-mart2.) Kroger3.) Costco4.) Target5.) Supervalu6.) Safeway7.) Publix8.) Meijer9.) Winn-Dixie10.) Whole Foods

Lab this afternoon; Get out!