CBB Budget Category: Promotions

1401-P AUTHORIZATION REQUEST FOR FY 2014

CBB Budget Category: Promotions Name of Contractor: North American Meat Association Name of Organizations Subcontracting:

I. OVERVIEW

A. AR Description: This work plan supports the Beef Industry Long Range Plan by targeting the Millennial audience and focusing on demand drivers including value, taste, health and nutrition, and convenience while enhancing industry transparency and consumer trust. The main focus will be in two primary areas: 1) Channel Marketing, 2) Consumer Communication. The Strategy will continue to increase sales for veal with current users and create a positive position for veal with the Millennial demographic, attracting new users to the category, and establishing a value proposition to make veal more attractive to channel decision makers. The updated nutritional information developed from the FY13 AR will be implemented in this program.

B. Costs Requested from this AR:

Source of Funding Total Direct Costs Implementation

Beef Board/BPOC $ 631,250 $ 511,175 $ 120,075 Federation of SBCs (FSBCs) $ $ $ Other Sources (describe) $ $ $

Total Funds Requested $631,250 $ 511,175 $ 120,075

C. Start date: 10/1/2013 Completion date: 9/30/2014

II. PLANNING INFORMATION FOR THIS AR

A. Long Range Plan Core Strategies/Demand Drivers Addressed by This AR: Improve domestic consumer preference for beef

Demand drivers addressed include: convenience, value, taste and nutrition and health

B. Committee(s) recommendations for work plan funded by this AR: The Value, Convenience and Nutrition and Health subcommittees recommended that this AR move forward to the Beef Promotion and Operating Committee for funding. The Convenience subcommittee suggested that NAMA staff coordinate with ANCW staff to ensure there’s no overlap in programs that are funded.

1 1401-P III. PROGRAM INFORMATION FOR THIS AR

A. Long Range Plan Core Strategy 1: Improve Domestic Consumer Preference for Beef

Strategy 1 Proposed Cost: $631,250

Measureable objectives:

Strategically: o Execute a minimum of two (2) retail promotions during key holiday/eating occasion periods, achieving participation by at least one (1) national chain, one (1) regional chain or one (1) local retailer per promotion. Achieve a 10% increase in veal sales versus the same time period, the previous year. Channel will be required to provide sales data to participate. o Secure the addition of two (2) new veal items on the menus of regional or national chains. Those new veal items may include a) appetizers, b) small plates, c) sandwiches, d) limited time offers (LTO’s) or, e) permanent menu additions. o Conduct at least two (2) consumer research projects at retail and food service that includes methodology utilizing a combination of intercepts, focus groups, and one-on-one interviews gaining new perceptual consumer data. o Create three (3) new veal recipes for retail/home cooks and three (3) for food service for use in channel communications and by State Beef Council marketing programs. New recipes will support retail promotions and menu development strategies. o Deliver a monthly trade communication device to channel decision makers and industry stakeholders updating them on veal promotions and educational information. o Nutrient data for 6 veal cuts will be submitted to USDA National Nutrient Database. o Increase traffic to the Veal Made Easy website by 15% versus previous year o Increase “Likes” of the Veal Made Easy Facebook page by 20% versus previous year o Increase “followers” of the Veal Made Easy Twitter handle by 20% versus previous year o Reach a minimum of 1.5 million digital advertising impressions supporting channel marketing promotions o Increase views to the Veal Made Easy YouTube Channel by 20% versus previous year o Create three (3) new veal cooking videos for use on the Veal Made Easy YouTube Channel

Specific Tactic Information:

Tactic 1A: Consumer Promotion: Create account specific partnerships implementing various sales promotion tactics, supported by consumer media, centered around key holiday and eating occasion periods. Incorporate specific health and nutritional messaging, as available from FY13 veal nutritional study. Proposed Cost: $ 411,000

2 1401-P

Tactic 1B: Consumer Research: Conduct consumer intercepts and focus groups at targeted locations, to gain additional perceptual data and guide future program strategy and tactics. The target audience will be the under 40 age demographic, including the Millennial group. Proposed Cost: $ 31,225

Tactic 1C: Recipe Development: Develop recipes with a focus on the Millennial and under 40 age demographic looking for convenience, value, taste, nutrition and health, while delivering a positive eating experience with excellent flavor, color, tenderness, and freshness. Proposed Cost: $ 20,750

Tactic 1D: Food Service Education: Use existing Checkoff funded wait staff training materials and develop new information, as needed; update the Veal Food Service website with new information targeted to chefs and operators. Proposed Cost: $ 15,452

Tactic 1E: Channel Communication: Utilize existing and emerging online tools, along with traditional publications and events, to alert channel/trade decision makers of veal promotions and important veal updates to the industry. Proposed Cost: $ 23,750

Tactic 1F: Social Media Promotions: Create Facebook and Twitter social media promotions to engage veal users and non-users in positive interactive communication. Build strong advocates and attract the Millennial demographic to the category by generating more positive buzz with consumer influencers. Proposed Cost: $ 45,688

Tactic 1G: Consumer Website Promotions: Drive traffic and increase website interaction by utilizing various promotions targeting veal users and non-users, with a focus on Millennials, engaging consumers with messaging about value, taste, nutrition, health, and the convenience of veal. Proposed Cost: $ 35,300

Tactic 1H: Consumer Website Communication: Update the Veal Made Easy website with a facelift for today’s consumer who is interested in specific health and nutrition information, convenient recipes, and the overall value proposition of veal. Proposed Cost: $ 16,835

Tactic 1I: Nutrient Data Use: Nutrient data collected in FY 2013 will be validated and submitted to the USDA National Nutrient Database. Proposed Cost: $ 9,375

Tactic 1J: Video Production: Create cooking videos and YouTube commercials featuring new recipes and nutritional information to be used

3 1401-P to increase views of online properties, create engagement and support channel promotions. Proposed Cost: $ 11,875

Tactic 1K: SEO: Search Engine Optimization of all online properties, to create a synergistic relationship between multiple touch points. This will include an audit of all keywords and meta tags, which will be added where needed. Proposed Cost: $ 10,000

IV. DETAILED BUDGET SUMMARY

P Direct Cost by Funding Source r o g Total FY ra 2014 Budget Total m Completion Est. Strategy & Tactic (Direct + Direct M Date Impl. Estimated Cost CBB/BPOC FSBCs Other a Implementation) n a g er Strategy 1: Improve Domestic Consumer Preference for Beef B. C ar Tactic 1A: Consumer p 9/30/2014 $411,000 $332,000 $332,000 $79,000 Promotion e nt er B. C ar Tactic 1B: Consumer p 9/30/2014 $31,225 $25,000 $25,000 $6,225 Research e nt er B. C ar Tactic 1C: Recipe p 9/30/2014 $20,750 $16,600 $16,600 $4,150 Development e nt er B. C ar Tactic 1D: Food Service p 9/30/2014 $15,452 $12,450 $12,450 $3,002 Education e nt er B. C ar Tactic 1E: Channel p 9/30/2014 $23,750 $20,000 $20,000 $3,750 Communication e nt er 4 1401-P B. C ar Tactic 1F: Social Media p 9/30/2014 $45,688 $37,350 $37,350 $8,338 Promotions e nt er B. C ar Tactic 1G: Consumer p 9/30/2014 $35,300 $29,050 $29,050 $6,250 Website Promotions e nt er B. C ar Tactic 1H: Consumer p 9/30/2014 $16,835 $13,725 $13,725 $3,110 Website Communication e nt er B. C ar Tactic 1I: Nutrient Data Use p 9/30/2014 $9,375 $7,500 $7,500 $1,875 e nt er B. C ar Tactic 1J: Video Production p 9/30/2014 $11,875 $9,500 $9,500 $2,375 e nt er B. C ar Tactic 1K: SEO p 9/30/2014 $10,000 $8,000 $8,000 $2,000 e nt er Totals - Strategy 1 $631,250 $511,175 $511,175 $120,075

AR Totals $631,250 $511,175 $511,175 $120,075

V. SUPPLEMENTAL INFORMATION

A. Will all of the work detailed in this AR be completed by the end of the fiscal year? If not, please provide an explanation. All work will be completed by September 30, 2014.

B. Changes from FY 2013 Approved AR:

 Greater focus on building online veal communities and utilizing best practices for social media by engaging consumers and educating them about the positive attributes of eating veal. 5 1401-P  Increased emphasis on retail channel marketing to create stronger consumer demand, building a foundation for long term, sustainable growth.  Conduct consumer perceptual study projects to gain new information that will be leveraged to better target current and new users including the Millennial demographic.  Trade communication strategies that will keep both the industry and channel decision makers better informed about veal promotions and information.  Utilize and take to market, new nutritional information funded from the FY13 AR with an estimated completion of December 2013.

C. Subcontractor information (agencies, etc.):

 Name of proposed subcontractor: Streetmarc Advertising & Marketing  Will all work with subcontractors be competitively bid? No. If not, why not? The subcontractor has assisted with veal programs in previous years and their expertise and experience will help deliver impactful initiatives.

D. Identify any relationships between this AR and projects previously funded by the Operating Committee: The Operating Committee has previously funded veal focused programs that have been managed by the National Cattlemen’s Beef Association. This is the first work plan with a target of veal products submitted by the North American Meat Association.

E. Summary of Prior Year AR Budgets and Expenses:

N/A. This is the first year NAMA has submitted this AR.

F. Historical Summary of Budgets and Expenses:

N/A. This is the first year NAMA has submitted this AR.