Grocery Stores?

Wal-Mart Kroger

What’s the Difference

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

akeryMeat Department / Lunchmeat / Frozen MeatMilk

Dai

ry P

rodu

cts

Bre

ad /

Sod

a

Fro

zen

Foo

ds

Entrance

Chi

ps /

Sna

cks

Controlling Customer Traffic

Food Court Set upEntrance

Produce

Deli

Dairy / C

heese

Bak

ery

Meat DepartmentMilk / Frozen Foods / Dairy ProductsS

oda

Chi

ps /

Sna

ck

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)

Grocery Store Secrets

• Shorter isles• Name brands

toward the bottom• Pairing foods

(apples w/ caramel; cheese w/ ground beef)

• Expensive liquor cabinet

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

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

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

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

Solving the 4:30 Meal Problem

• Convenience – User friendly– Heat ‘n Eat– Ready to Eat– Pre-flavored– Pre-marinated

Returning to the Kitchen

• Food Network

• Foodies– Looking for high

quality beef– Difficult recipes

• Adding recipes to the packages– Recipe Peel Labels

Other Trends/ Niche Markets

• Organic• Natural• Grass/ Forage Fed• Free Range• Greenhouse Cattle• Predator Friendly • Animal

Compassionate • Kentucky Proud• No added nitrites

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

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

No Added Nitrites

• 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 2010

1.) Wal-Mart = $307,736,000,0002.) Kroger = $78,326,000,0003.) Target = $65,815,000,0004.) Walgreens = $61,240,000,0005.) Home Depot = $60,194,000,0006.) Costco = $58,983,000,0007.) CVS Caremark = $57,464,000,0008.) Lowe’s = $48,175,000,0009.) Best Buy = $37,110,000,00010.) Sears Holdings = $35,362,000,000

Top Grocery Stores

1.) Kroger2.) Safeway3.) Supervalue4.) Publix5.) Ahod6.) Delhaize7.) H-E-B8.) Shop Rite9.) Whole Foods10.) Aldi

Lab this afternoon; Get out!