NPB Consumer Research Pork Quality

NPB Consumer Research Pork Quality Prepared for NPB Marketing Department May 13, 2014 Sometimes The Smallest Things Make The Biggest Difference 35 S. Salem • Arlington Heights, IL 60005 • 847.253.8195

How Did We Approach the Research? Research designed to gain insight into consumers’ interaction with pork: • How do they incorporate pork into their life? • Where do they shop for it? • How do they make decisions about which pork to select at the store? • Does quality factor into their decision making? Goal of understanding how pork purchase decisions are ultimately made

How Did We Approach The Research? Six Focus Groups: • Three markets (Chicago, Atlanta, Orange County) • Two groups in each market • Group 1 – Respondents fitting into Tier 4 See attached screener • Group 2 - Respondents fitting into Tiers 1, 2, or 3

How Did We Approach the Research? Respondents discussed: • How they incorporate pork into their lives (favorite pork dish, how often they cook pork at home) • Where they prefer to shop for pork, and why • How they determine which pork makes it into their shopping cart • Thoughts on new information/approaches that could help them choose their pork

A Word on Qualitative Research. While we are able to determine some directional consistencies, it is important to be cognizant of the limitations of qualitative research: We can make some suggestions based on respondent feedback and reported behavior However, marketing and advertising decisions should ultimately be based on what is best for the brand and on the strategic direction going forward Suggestions in this report will be based on the directional information, and the consistent findings, across all focus groups This report should be used as a complementary tool to the already extensive understanding of the brand and consumer behavior

Path To A Purchase Decision. We will explore… How they think experience pork: How they incorporate pork into their lives Thoughts and beliefs about pork How they purchase pork: Their most important criteria Their worries/concerns How they think about new purchasing information: Color as a criteria Rating system as a criteria Concluding Thoughts

How They Experience Pork

Incorporating pork into their lives. In each market, the two groups differed in their pork usage, but both groups seemed equally enthusiastic about their enjoyment of pork: The NPB target group were much more likely to prepare pork at home three times a week or more, and talked about it as if it was simply a part of life; didn’t feel like an impressive amount of pork consumption to them The Tier 4 group were more likely to serve pork 1-2 times a week; their lower consumption of pork seemed more to do with their lack of knowledge of and comfort with pork vs. their lack of enjoyment of it When both groups spoke of the pork they enjoyed and the pork dishes they prepared at home, they spoke about it with much conviction Both groups clearly enjoyed their pork; no one sounded as if they were preparing it simply out of habit or because it was easier to prepare than other protein options 8

Incorporating pork into their lives. Most respondents seemed rather versatile in their pork preparation: While the NPB target group seemed the most versatile, both groups had grown beyond the typical chops and loins As they were discussing their favorite pork dishes, it became clear that there was a fairly big variety of pork being prepared; this was especially true in the Atlanta market Seems that the variety has increased compared to the last round of consumer research (conducted in April of 2012) with a similar target group “I like cooking ribs, but I start them in the oven and then finish them on the grill” “Our favorite thing to do is make carnitas…they taste great with tortillas and some spices” “My family loves encrusted pork tenderloin…I make that a lot and also breaded chops” “I like to make a stuffed tenderloin…the flavor is really great” 9

Thoughts and beliefs about pork. Both groups wished to be more knowledgeable about pork: Even those respondents who prepared pork the most felt like they still didn’t understand all they needed to about pork Most of their questions were regarding the cuts of pork; not only how to best prepare certain cuts, but even where (on the pig) certain cuts originate They felt more knowledgeable about beef Many wished for information at the meat section: Wanted an info sheet with the cuts of pork and how to prepare them Wanted a diagram of a pig displaying the various cuts of pork Wanted recipe ideas for pork “sometimes there’s a cut I don’t know about” “I wish they had a picture of a pig there to help us” “to be honest, I don’t always know what I’m looking for” “could they have recipes available in the section? That would be great…” 10

Thoughts and beliefs about pork. Their need for more knowledge about pork caused them to feel a bit less confident about it in general: Weren’t confident about how long to cook it; still weren’t certain if pink was okay Often felt like it was by chance that their pork chops turned out tender/moist; felt like they still hadn’t figured out the right formula Weren’t totally confident about pork’s properties Some believed that pork goes bad faster than other proteins, were leery of freezing it unless the “sell by” date was far in the future Some believed that pork isn’t as forgiving as other proteins; requires more preciseness/care when cooking it Some believed that there are grass fed pigs and pigs who are given hormones “It’s just easier for me to tell if beef is weird…I’m not always sure with pork” “I really try to only buy the pork that is grass fed…it’s healthier” “You have to be careful with pork because it goes faster than other meats…if the sell by date is close, I don’t freeze it, I use it right away” “I remember a friend of mine made pork chops once, and they were the best pork chops I’ve ever tasted…that was like 10 years ago, and I’ve never been able to make them like that…” 11

How They Purchase Pork

Their most important criteria. Regardless of the target group they represented, most respondents had very similar criteria when it came to selecting their pork: Of all criteria, a reference to “freshness” (whether stated with that exact term or not) seemed to be the most common As they discussed their criteria, respondents were adamant that “freshness” was a critical criteria for them Importantly, many of their other criteria actually laddered up to freshness; even quality seemed to laddered up to freshness vs. the other way around (freshness laddering up to quality) Quality Color “Sell by” date Appearance Smell

Their most important criteria. Color was also an important criteria to most respondents: However, the color seemed to indicate freshness rather than indicating a really good/high quality piece of pork Most respondents knew that a pinker/redder color was a better color; only one or two thought that light/white was better, and they were referring to chops only Therefore, when shown the images of pork, only one respondent (out of 49) selected letter A as “the highest quality” Number of times image chosen as “highest quality” (among 49 respondents) C 36 D 12 A1 *Image C depicted the highest quality pork, and image A depicted the lowest quality

Their most important criteria. While color was acknowledged as an important criteria, it didn’t seem to be the most important criteria: Most respondents agreed that color was part of their decision making, but they also had to look at the overall appearance Overall appearance (which many described as “freshness”) Amount of fat on the meat Thickness of the cut Therefore, when asked to choose “the highest quality” picture, there was often debate between C and D; while C was clearly the most red, D, to some, looked like a better cut of pork (based on the criteria listed above)

Their worries/concerns. Perhaps their wariness about pork caused them to want to be certain they were starting with the freshest pork possible: Interestingly, rather than thinking of it in positive terms, (“a fresher piece of pork will result in a more positive eating experience,”) they seemed to think of it in more negative terms, (“I am uncertain of how my pork will turn out, so if I know it’s as fresh as possible, I think I have a better chance of not messing it up”) Furthermore, their skepticism of some stores resulted in their very cautious behavior when it came to selecting their pork (and all of their meat) Believed that some stores tried to hide the “not so fresh” meat with double packaging Believed that some stores packaged pork chops with a less fresh chop hidden underneath a fresher one Believed that some stores weren’t always honest about the “sell by” date “I like going to a store (Publix) that has a butcher, because then I know it will be fresh” “where you go (the store) definitely determines the quality” “I saw a news piece about this…you have to be careful…that’s why you have to trust your store”

Their worries/concerns. While respondents were skeptical about some stores, they felt very confident in and positive about their store of choice: Because they trusted their store of choice, they didn’t seem to question the quality of the meat in it; most respondents rated their store an 8 or higher (on a scale of 1-10) on “quality of fresh pork” In fact, it wasn’t until quality was introduced as a criteria that most respondents admitted that “quality” was not something that they really even thought about Again, they cared most about freshness, and quality was simply seen as a result of freshness (i.e., if it is fresh, it will be higher quality)

How they think about new purchasing information

Color as a criteria. When the idea of “color as a criteria of pork quality” was introduced, most respondents were rather underwhelmed: Most of them had already acknowledged that they consider the color of the pork one of their three purchasing criteria Most also understood that a darker/redder color meant a higher quality pork The thing that was new to them was that color was “the most important” criteria; most considered color simply an indication of freshness, and again, freshness seemed to be the most important criteria to them

Rating system as a criteria. When the idea of a “rating system as a criteria of pork quality” was introduced, most respondents were rather skeptical: Most respondents first questioned how the level (good, better, best) would be determined; weren’t sure they trusted the process for how the pork would be rated Many believed that the stores would have an ulterior motive in choosing which pork to rate “best,” and would then artificially increase the price Even when they were assured they could trust the rating source/system, many still questioned the need for it; felt that their own eye/discernment was better than an outside rater could be Only one of the six groups was receptive to the idea of a rating system, and even that group wasn’t completely sold on it “I’d rather go with my own gut…I’m skeptical of a rating system” “how do you know for sure that it’s going to be higher quality?” “I’d feel bad about having to get a “good” vs. “best” if I couldn’t afford “best” “I’d rather go with what looks best to me vs. a rating system…that’s too arbitrary”

Some Concluding Thoughts

What to think about going forward. The idea of pork quality was not really on respondents’ radar until it was introduced to them: Respondents simply didn’t have stories of preparing a pork dish that they had later determined was “bad quality” Importantly, if they had ever prepared a pork dish that turned out less than ideal (tough, dry, flavorless) they immediately blamed themselves, not the pork; again, it was their lack of comfort with pork that caused them to take the blame Respondents are satisfied with the quality of pork at their store of choice Because they trusted their store of choice, they also trusted that the meat being sold there was of good quality; they chose not to buy meat at stores that they considered questionable (e.g. Walmart, and in some cases, Kroger) The only thing that some respondents seemed remotely disappointed with was the selection of pork at their store (wished for a bigger variety); most were fine with the selection at their store

What to think about going forward. The key terms here are “fine” and “good:” While most respondents didn’t have an issue with the “outcome” of the pork they were preparing at home, or with the quality of the pork in their stores, they also weren’t raving about it No one really bragged about a pork dish they prepared that was “to die for,” or that they couldn’t wait to create again They were definitely satisfied/happy with the pork they prepare, but it seemed that “good” was good enough The visual of high quality pork seemed to bring a bit of doubt to their minds: When they visualized what high quality pork really looks like (image C), most admitted that it is rare to see that kind of quality in their stores; they felt that their stores were carrying pork somewhere in between images C and A However, they also didn’t think/realize they were missing anything; what they were currently purchasing and preparing seemed “fine” to them Perhaps they need to better understand how a “best” quality pork could/should taste

What to think about going forward. While they didn’t get too passionate about the quality of pork, most respondents got very passionate about the variety and flair of pork: Unlike chicken, which seems to be more of a staple/ingredient, or beef, which seems to be more special and indulgent, pork seems to be perceived as more “fun” Many respondents talked about the versatility and whimsy of pork; it allows them to make a more standard/expected dish, such as a pork loin, or a more creative dish, such as carnitas As respondents went around the table and described their favorite pork dishes, it created a lot of camaraderie: Respondents nodded in agreement/enthusiasm over all of the different ways to prepare pork Many lingered a little while after the group to discuss different ideas/recipes

What to think about going forward. Rather than creating an issue around a non-issue (quality), perhaps the focus should be around leveraging pork’s unique flair: Many respondents wished for more recipe ideas at point of purchase Many truly wanted to better understand how to prepare the different cuts of pork “Pork Be Inspired” captures precisely the thing that caused the most excitement amongst respondents: If not already in place, materials created for display in the meat case (recipes, cooking tips) could further extend this campaign into the grocery stores This could help increase the purchase and usage of pork Pork has an innate fun quality that could be more strongly leveraged

NPB Consumer Research Pork Quality