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Retail Meat Marketing

Retail Meat Marketing. Grocery Stores?. What’s the Difference. Wal-Mart. Kroger. 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.

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Retail Meat Marketing

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  1. Retail Meat Marketing

  2. Grocery Stores? What’s the Difference Wal-Mart Kroger

  3. 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

  4. 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

  5. Milk Meat Department / Lunchmeat / Frozen Meat Deli / Bakery Chips / Snacks Bread / Soda Frozen Foods Dairy Products Produce Check-out Stands Controlling Customer Traffic Entrance

  6. Milk / Frozen Foods / Dairy Products Meat Department Dairy / Cheese Deli Bakery Chips / Snack Soda Produce Food Court Set up Entrance

  7. Grocery Store Secrets • Fresh Baked Bread or Home-cooked food odors • Larger shopping carts • End caps or wing displays are not always on sale • Mark down the big items (milk, bread, eggs, toilet paper)

  8. Grocery Store Secrets • Shorter isles • Name brands toward the bottom • Pairing foods (apples w/ caramel; cheese w/ ground beef) • Expensive liquor cabinet

  9. Classification of Consumers • Students • Cheap and easy • Adults • 20 to 30 somethings; out of school; more money want some quality, healthy, environmentally friendly • 40 to 50 somethings; established in life, family; label readers, quality • Golden years; quality, healthy, portion size • Women • Tend to be label readers, functional foods, more brand conscious

  10. Classification of Consumers • Men • Price driven, easy, can be very brand loyal • Locovores • Locally produced and grown foods • Foodies • High quality, price not important, rare foods

  11. Classification of Consumers • Vegetarians • Total Vegetarians; no animal foods • Vegans; no animal foods or animal derived foods • Lacto-vegetarians; dairy products • Lacto-ovo-vegetarians; eggs and dairy • Pesca-vegetarians; fish • Pollo-vegetarians; chicken • Fruitarian; only products where something did not have to die

  12. 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)

  13. 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

  14. 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

  15. 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

  16. Solving the 4:30 Meal Problem • Convenience • User friendly • Heat ‘n Eat • Ready to Eat • Pre-flavored • Pre-marinated

  17. Returning to the Kitchen • Food Network • Foodies • Looking for high quality beef • Difficult recipes • Adding recipes to the packages • Recipe Peel Labels

  18. Other Trends/ Niche Markets • Organic • Natural • Grass/ Forage Fed • Free Range • Greenhouse Cattle • Predator Friendly • Animal Compassionate • Kentucky Proud • No added nitrites

  19. Organic Meats • 2010 total sales increased 1%, organic 7.7% • $28 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

  20. 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

  21. Grass/ Forage Fed • More Popular • Lower levels of Saturated fat • Higher Omega-3 Fatty Acids • 90% of the animals energy must come from forage

  22. No Added Nitrites • Carcinogen (MIT Study) • 40#/ d for 40 years to develop cancer • Add sea salt, vegetable purees which contain natural nitrites

  23. Another Trend in Grocery Stores • Whole Foods • Farmers Markets

  24. Top Retailers in 2010 1.) Wal-Mart = $307,736,000,000 2.) Kroger = $78,326,000,000 3.) Target = $65,815,000,000 4.) Walgreens = $61,240,000,000 5.) Home Depot = $60,194,000,000 6.) Costco = $58,983,000,000 7.) CVS Caremark = $57,464,000,000 8.) Lowe’s = $48,175,000,000 9.) Best Buy = $37,110,000,000 10.) Sears Holdings = $35,362,000,000

  25. Top Grocery Stores 1.) Kroger 2.) Safeway 3.) Supervalue 4.) Publix 5.) Ahod 6.) Delhaize 7.) H-E-B 8.) Shop Rite 9.) Whole Foods 10.) Aldi

  26. Lab this afternoon; Get out!

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