051202 Researching Which Consumers Buy More Beef

America’s population is a highly varied mix of different demographic segments - from tweens, kids that are 8 to 12 years of age, and Gen X’ers, the generation born between 1965 and 1975, to a growing ethnic population, and the well-known baby boomers, those now 50 to 60 years old who were born during the decade following World War II.

Each of these segments has unique consumer needs and understanding those trends can enhance marketing efforts for any product - including beef. So what do these consumer groups want from the food industry and how does beef fit in? Research sponsored by the national beef checkoff is continually monitoring consumer demographics and new opportunities for the beef industry. Here are some of their most recent findings.

Baby boomers still reign

As the largest generation in American history, the sheer numbers of the baby boomer generation - now about 69 million people - has long made them a major influence both socially and economically. And, with baby boomers currently making up much of the White House, 70 percent of Congress, and 80 percent of corporate America, it’s expected that “their buying trends will influence the U.S. economy for many years to come,” said Dave Coronna, executive vice president of public relations firm Burson-Marsteller/USA which has extensively studied this demographic for the beef industry.

Coronna characterizes typical boomers as highly educated and willing to fight for democracy.

“Boomers have always been about values and doing the right thing. They are about making money, but having a moral tone to it,” he said.

He adds that boomers are also all about “self.” For instance he says the self-help and self-esteem markets were actually created for baby boomers.

As this generation ages, Coronna says self will still continue to be most important to them, but they are open to exploration and travel and that has driven religious changes and the growth of ethnic foods that we see in the United States today.

“Boomers are also about the silver bullet. They want things now,” he said.

To that end, Coronna says these trends have implications for the beef industry.

First and foremost Coronna says boomers seek products, services and a lifestyle environment that expresses their unique inner convictions to themselves and to others.

“They have a growing appreciation for comfort foods. They like to discover things, and eating beef is an enjoyment and indulgent experience for them,” he said.

Secondly, Coronna says e-mail and cell phones are helping boomers stay more connected to their children than any previous generation. As a result, he says boomers and their adult children will be less likely to move permanently away from one another.

“That’s an opportunity for the beef industry because family time equals meal time and more opportunities for beef at the dinner table,” he said.

Even with these favorable indicators for beef among baby boomers, Coronna cautions that as this segment continues to age, economic value will become more important to them, and that is something the beef industry will need to be sensitive to.

“In general, baby boomers are more highly educated and affluent than preceding generations, but they may struggle financially when coping with later retirement,” he said.

Thus, Coronna says the beef industry’s new value cuts may be an important way to reach this demographic in the future.

Hispanic growth expected

Another population segment with a favorable outlook for the beef industry is the Hispanic market, which currently totals about 15 percent of the United States population and is expected to grow considerably.

Elisa Cantero, a strategic planner for Lapiz Integrated Hispanic Marketing, reports that by 2015 the Hispanic population in the United States is expected to be more than 50 million. Cantero says that is good news for beef producers, because the Hispanic market is very beef-friendly, and spends more than $55 billion on food annually.

“Most Hispanics are family-oriented and food is an essential part of their routine family gatherings and festivities,” said Cantero.

Whereas boomers are about self, she says Hispanics are about “we.”

“They want closeness with their family and tend to view cooking as an important way to pass traditions across generations,” she said.

Because of this culture, Hispanics are more likely to stay at home and prepare a big family meal than go out to eat at a restaurant. Thus, they also tend to spend more money on food - especially beef. Cantero reports that on average Hispanics eat beef four to five times a week compared to two to three times a week for non-Latinos. As a result they spend $326 per individual on beef annually versus the total population average of $230 per individual.

“Hispanics believe beef keeps you strong, healthy and smart. There is less of a trend of vegetarianism among Latinos. They also perceive beef as a status food. It’s an indulgence and way of saying ‘I’m making it,’” said Cantero.

As this demographic continues to grow in number, Cantero reports Hispanic household buying power is also growing.

“They have more kids and extended family living with them and their average income is increasing,” she said, and predicts by 2007, Hispanic buying power will be nearly 10 percent of total domestic expenditures.

Thus, Cantero advises food marketers to pay attention to meeting Hispanic needs. Foremost, she says is food freshness.

“Hispanics are not as likely to buy prepackaged foods. They favor beef cuts and variety meats that fit their cultural cuisine. They prefer to shop in traditional Hispanic stores offering ethnic products,” she said.

Secondly, Cantero says because Latinos tend to cluster in communities - for instance 56 percent of the Hispanic population can be found in 10 cities across the United States - that retailers can reach much of this demographic with targeted regional marketing. But she emphasizes that advertising language needs to be tailored for the audience - meaning messages should include Spanish and English-language executions, depending on the objective.

Tweens are tomorrow’s adults

Youth are also a powerful consumer segment which the beef industry needs to pay attention to.

“They are the adult consumers of tomorrow, but they are influencing family food purchases today,” said Mary McIlrath, director of qualitative youth services, Creative and Response Research Services, Inc.

From her research with youth focus groups, McIlrath says today’s youngsters usually have their own money to spend and clear ideas about what they want. She reports the youth “tween” market is made up of 32.5 million kids that are 8 to 12 years of age. They spend an average of $6.77 per week which equates to about $11 billion a year.

In understanding the youth market, McIlrath says tweens are driven largely by emotion and have considerable influence in family decisions about what and where a family chooses to eat. Additionally, she says tweens 8 to 9 really want to “fit in;” while ages 10 to 12 are more concerned about developing unique identities.

“As this market evolves it will be important to understand how youth think and what drives their behavior,” McIlrath said.

McIlrath says present studies indicate kids see food as necessary for survival, as an energy source and also for emotional satisfaction. Findings also show healthy eating is not a top priority for children but is more important to girls.

Also, McIlrath says tracking what kids are eating for lunch reveals that they are not exposed to a lot of beef. Those are all details that the beef industry should pay attention to in targeting this market.

“In an environment where childhood obesity is an epidemic, it is important to focus on the role beef can play in a healthy diet. Responsible marketing, including educational efforts, is critical when dealing with child consumers,” McIlrath said.

“Generation Y is a huge consumer market, but they are moving targets with changing needs. Motivating this generation to eat beef will involve an emotional appeal involving pleasure, personal development or social acceptance, but should not encourage overconsumption,” she said.

“We’ve got two generations now who haven’t been taught how to cook well with beef, and even baby boomers to some extent lack beef cooking skills. So the beef industry needs to consider that and help educate consumers,” Coronna said.

While all of these consumer groups are going to be critically important to the future growth of beef demand and sales, this trio agrees that the one to really focus on will likely be the Hispanics.

“Any dollars you spend on the youth market is an investment. But the Hispanic market is growing and is very young, so if you concentrate on them you’ll also reach the youth market,” Cantero said.

Source: Tri-State Neighbor – South Dakota

RETURN TO HOME PAGE

E-mail: sflanagan@sprintmail.com