US Beef Re-entry Marketing Strategy

1. US Beef Re-entryMarketing Strategy Asia Pacific Region

2. Asia Pacific:  Post-BSE Market Re-opening Assumptions • Quick return of consumer confidence and purchasing once product is "placed“, esp. at foodservice; • Quick take-up of traditional U.S. slicing and Yakiniku items including short ribs, chuck ribs and short plates; • Quick recapture of most pre-BSE U.S. chilled beef retail market share from Australia; • Possible short term supply-demand imbalance induced by initial wave of buying, esp. of commodity items;  • Longer-term:  stronger U.S. competitive position based on continued high product quality and enhanced safety, barring additional multiple BSE cases.

3. US Beef Re-entryMarketing Strategy Japan

4. Current Market Environment Fact and our belief !! US Beef is the safest in the world !! But…..

6. Key to Market re-entry Then how??? Pushing the Japanese to buy US beef? No contradiction but work along with their thinking

7. To Win Japanese Support Double “H” Approach Harmonious and Humble Approach

8. Market Re-entry Project Win the confidenceof Japanese consumers by sincerely appealing to their emotion, housewives at the age of 20-40 years old Then re-educate with the facts Obtain the full support from the past users of US beef Changes in actions along with the market phase of the resumption

9. Theme for Re-entry Project Thank you all! American Beef Again!

10. KOREA: Market Re-opening Tactics Pre-opening • New U.S. beef image development • Continued retail promotion • PR campaign to re-introduce U.S. beef Opening & Post-opening • Safety & market outlook seminar • Seoul food show (4/05) • HRI: chef consulting, chef team, menu promotions • Retail: heavy promotion, retail display team, supportive coop. adverts. • Consumer: Anshim campaign, Seoul Beef festival, media team

11. TAIWAN: Market Re-opening Tactics • Promotions • Stage One: First month after beef trade resumes: • Promotions will focus on top 3 sales items: • Boneless Short Rib, Finger Meat & Short Plate • Stage Two: Second to third month after beef resumes: • Promotions will focus on high-end cuts: • Ribeye, Tenderloin & striploin • Activities • Replacement Adverts.: High-end Restaurants Air-lift High • Quality U.S. Beef to Content Beef-eaters • 2. High Quality U.S. Beef Retail Showcases • 3.Bus Panel Adverts.: Joint Promotions Advertisement with Retailers

12. CHINA/ HONG KONG:Market Re-opening Tactics • Trade reception • Press conference & associated public relations • Retail promotions & new POS roll-out • Foodservice promotions with major partners • Trade teams • Assumption: no resistance in consumer uptake of “new” U.S. Beef

13. Questions

14. Current Market Environment 63% vs. 36%

15. Do You Agree Resumption of US Beef Imports?(Tel Survey by Asahi Newspaper, 10/23,24. N=1832)

16. Do You Eat US Beef Then?(Tel Survey by Asahi Newspaper, 10/23,24. N=1832)

17. Influence Correlation

18. Current Market Environment

19. Current Market Environment Many Japanese consumers tend to regard the resumed import of American beef in a “political” framework. It is also true that their antipathy to U.S. makes many consumers oppose the resumption of the import of American beef.

20. Current Market Environment Myth about the 100% testing as the Golden Standard for Safety Political struggle over the 100% testing issue (LDP vs. GOJ) Double Standards !!!

22. Social Environment On the other hand… Japanese perception to the US? Going negative ! Iraq Issue Unscientific/emotional debate Then, Power politics ?

23. Re-entry Project: Time Frame • Divide the entire campaign period into three phases: • Pre-resumption phase • Resumption of imports • Promotion and communication programs to boost demand

24. Re-entry ProjectPre-resumption Phase Concentrate on the relation maintenance and build-up Trade Servicing and information gathering with the Trade News Letters/Web to update the efforts of the US for the resumption Experts to the US for endorsement Selected trade to the US

25. Re-entry ProjectTrade Resumption Phase Commemorative events to announce the resumption and our stance—Link with targeted trade/TV/ads Trade/Consumer BSE and safety seminars Promotion with key promoters first Development and distribution of the campaign tools Development of educational materials to support the educational activities Trade journalist team to the US General media team to the US? (Political situation?)

26. Re-entry ProjectTrade Expansion Phase Full Scale implementation of tie-up events/sales promotions with ads/publicity/PR TV/Mags/NPs will support the actions with facts on US beef Increase the frequency of consumer contacts

27. Basic Concept for Communication Jan Feb Mar Apr Mar Jun Jul Aug Sep Pre/Trade resumption phase (Adopt a completely sincere manner to communicate efforts to ensure safety to get an opportunity to restore confidence among consumers) Trade Expansion phase (Make all-out efforts to restore confidence based on food safety to establish a base on which to rebuild the brand) Removal of concerns Endorsement of food safety Provide scientific evidence to substantiate endorsement Recovery of confidence + new attraction creation Commitment to continued efforts to ensure safety Efforts to provide peace of mind Efforts to enhance quality in addition to peace of mind SP activities Provide information suitable for POP tools Provide information and mechanism to motivate targets to buy ■The U.S. does not seem to be trying to pry the market open ■I’ll listen to them anyway. ●They seem to work more seriously than expected. ●People around me begin to accept American beef, which is loved by everyone. ●I like American beef and can feel it closer to me than before. Perception to acquire

28. Media Formation Jan Feb Mar Apr Mar Jun Jul Aug Sep Pre/Trade resumption phase (Adopt a completely sincere manner to communicate efforts to ensure safety to get an opportunity to restore confidence among consumers) Trade Expansion phase (Make all-out efforts to restore confidence based on food safety to establish a base on which to rebuild the brand) PR PR Removal of concerns Endorsement of food safety Newspaper ads Provide scientific evidence to substantiate endorsement Newspaper ads Newspaper ads Recovery of confidence + new attraction creation Commitment to continued efforts to ensure safety Newspaper ads Efforts to provide peace of mind TV ad Magazine ads Efforts to enhance quality in addition to peace of mind Magazine ads SP activities Leaflet POP tools & leaflets Provide information suitable for POP tools Provide information and mechanism to motivate targets to buy

29. Conducting Tracking Surveys for Verification and Adjustment of the Strategy Jan Feb Mar Apr Mar Jun Jul Aug Sep Import resumption phase (Adopt a completely sincere manner to communicate efforts to ensure safety to get an opportunity to restore confidence among consumers) Demand promotion phase (Make all-out efforts to restore confidence based on food safety to establish a base on which to rebuild the brand) PR PR Removal of concerns Endorsement of food safety Newspaper ad Provide scientific evidence to substantiate endorsement Newspaper ad Newspaper ad Recovery of confidence + new attraction creation Commitment to continued efforts to ensure safety Efforts to provide peace of mind Newspaper ads TV ad Efforts to enhance quality in addition to peace of mind Magazine ads Magazine ads SP activities Leaflet POP tools & leaflets Provide information suitable for POP tools Provide information and mechanism to motivate targets to buy Feedback to the strategy Confirm when to switch one phase to the other Consider additional programs Tracking survey Tracking survey Tracking survey

30. US$ 5 Mil. Budget Plan (Exchange rate at \110 per US$)

31. US$ 10 Mil. Budget Plan (Exchange rate at \110 per US$)

32. ?? Questions ?? XXXXXXXX– Japan

33. Current Market Environment