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Nutrition Convenienc e Taste Value Image Freedom 1410-CI AUTHORIZATION REQUEST FOR FY 2014 CBB Budget Category: CONSUMER INFORMATION Name of Contractor: National Cattlemen’s Beef Association I. OVERVIEW A. AR Description: The following AR summarizes Strategies and Tactic supporting the Consumer Information CBB Budget Category. Each area of focus includes an introduction that provides a detailed description of the plan of work to be completed, the measurable objectives to be achieved and the supporting tactic(s). Specifically, this AR includes detail in the following areas of focus: Domestic Consumer Preference Beef’s Image Consumer Influencers Industry Influencers Channel Influencers Freedom to Operate Producer Influencers (BQA) Note that there are indicators throughout this AR identifying where primary and secondary tactical focus will take place. The following key will introduce each tactic with black indicating primary area(s) focus and gray indicating secondary area(s) of focus. For example: To maximize efficiency this plan is highly integrated across program areas allowing for synergy and leverage of resources and expertise. 60 Primary focus Secondary focus

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Page 1: FY14 ARs as approved...  · Web viewThe Consumer Influencer program generates advocates for beef through shareable, compelling content and by earning trust. That trust comes from

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AUTHORIZATION REQUEST FOR FY 2014CBB Budget Category: CONSUMER INFORMATION Name of Contractor: National Cattlemen’s Beef Association

I. OVERVIEW

A. AR Description: The following AR summarizes Strategies and Tactic supporting the Consumer Information CBB Budget Category. Each area of focus includes an introduction that provides a detailed description of the plan of work to be completed, the measurable objectives to be achieved and the supporting tactic(s). Specifically, this AR includes detail in the following areas of focus:

Domestic Consumer Preference Beef’s ImageConsumer Influencers Industry InfluencersChannel Influencers Freedom to Operate

Producer Influencers (BQA)

Note that there are indicators throughout this AR identifying where primary and secondary tactical focus will take place. The following key will introduce each tactic with black indicating primary area(s) focus and gray indicating secondary area(s) of focus. For example:

To maximize efficiency this plan is highly integrated across program areas allowing for synergy and leverage of resources and expertise.

B. Costs Requested from this AR:

Source of Funding Total Direct Costs Est. Implementation

Beef Board/BPOC $ 9,919,997 $ 6,077,637 $ 3,842,360Federation of SBCs (FSBCs) $ 1,469,583 $ 900,363 $ 569,220Other Sources (describe)

Total Funds Requested $ 11,389,580 $ 6,978,000 $ 4,411,580*NOTE: This represents NCBA’s estimated implementation to complete this AR.

C. Start date: October 1, 2013 Completion date: September 30, 2014

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Primary focus Secondary focus

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II. PLANNING INFORMATION FOR THIS AR

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

i. Safetyii. Nutrition & Healthiii. Convenienceiv. Tastev. Value

b. Strengthen the image of beef and the beef industryc. Protect and enhance our freedom to operate

B. Committee(s) recommendations for work plans funded by this AR: All Committees and Subcommittees who reviewed activities in this AR recommended them for funding by the Beef Promotion Operating Committee. These included:

a. Domestic Consumer Preference (including Subcommittees)b. Beef’s Imagec. Freedom to Operate

III. PROGRAM INFORMATION FOR THIS AR

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

Strategy 1 Proposed Cost: $8,142,350 (Direct Cost + Estimated Implementation)

Consumer Influencers – Completion Date: September 30, 2014The Consumer Influencer program generates advocates for beef through shareable, compelling content and by earning trust. That trust comes from substance (translation of current and emerging research, relevant culinary applications and trends), change-making experiences (like Live Well) to create a meaningful connection that delivers on results for beef. This program starts the conversation and introduces beef to a new world of advocates.

Historically, the ‘influencer’ program has been known to focus on registered dietitians (RDs), however this year’s program continues to evolve and zero in on the voices that matter most to the Older Millennial Parent (age 20-34). Following a thorough assessment of influencers in FY13, this program develops thoughtful content, partnerships with food sites, parenting bloggers who write about weeknight meal solutions, national food and nutrition media, the nation’s leading medical, health and fitness professionals and more. The program includes two critical and integrated elements: a Content Engine and an Advocacy Engine. The Content Engine supports creation of valued substance, knowing what the audience needs, while the Advocacy Engine puts this information into action and develops change-making experiences.

The emphasis of the program is to help advocates and consumers have confidence in recommending and choosing beef. We build user-friendly tools and resources and put them in the right hands, whether that is through recipe sharing, translating the latest nutrition research, providing infographics or providing in-person access to cutting-edge expertise. Our end goal is to improve perceptions of beef overall and increase

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confidence for recommending and purchasing beef more frequently.In FY 2014, we intend to develop a “digital presence” approach, primarily focused on social media, and rich shareable content that engages the Older Millennial to experience beef. We will create an educational and experiential interaction for the Older Millennial, where they are online, and at events they attend. We know that word of mouth is highly critical information for the Older Millennial, so a solid base of content generation and advocacy building will support this channel. The program will build out a visual storytelling component with photos and video along with relevant storylines and realistic meal ideas for the Older Millennia’s lifestyle. We will center efforts on developing beef immersion experiences to compel thought leaders to recommend beef, knowing it is good for them and delicious. We will also empower and engage State Beef Councils to serve as change agents with this new thought leader target.

In a nutshell, what sets this program apart is that it: Develops the core story for beef, and reasons why it’s worth it. Puts research and context in the hands of those who influence the Older

Millennial. Serves as the proactive content and advocacy engine for provoking new thinking

about beef. Continues to be a critical component to grounding the influencer and consumer

on the benefits of beef’s nutrients such as zinc, iron, protein and B-vitamins.

Measurable objectives: Encourage consumer influencers to proactively advocate for beef, in both how

it’s raised and the product itself. Track and assess changes in target perceptions, across relevant attitudinal measures by building upon the integrated dashboard tool (covering 9 measurements) developed in FY13. We will provide case studies for added perspective and build a more extensive measurement dashboard for credentialed nutrition communicators by end of fiscal FY14.

Increase the digital footprint for beef (Share of protein voice, relative to chicken and pork, online). This will be achieved through the rich sharable content and engaging experiences with influencers who will extend that content.  Use the digital metrics collected in FY13 as the baseline.

Create advocacy and motivating experiences to help encourage recommendations for beef.  We will measure change in recommendation attitudes with pre-post surveys around these experiences.

Continue to develop and evolve “owned” content and encourage “earned” messaging (i.e., impressions and quality of online conversations and coverage). 

Tactic 1A: Consumer Education (Content Engine)

Help provide a singular rallying point for beef through message mapping, pitches, and overarching content strategy.

Generate engaging content that proactively gives advocates what they need to communicate the benefits of beef.

Create shareable content and visuals like infographics, fact sheets (containing research outcomes), story pitches/angles, photography and toolkits that engage the

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Older Millennial. These materials serve as important resources for State Beef Councils to extend locally.

Create good news for beef in the nation’s leading parenting, food and nutrition blogs, websites, magazines and fuel the positive beef conversation in social media.

In collaboration with Nutrition Research, creatively translate the existing body of evidence and new key research outcomes (such as publications resulting from the Protein Summit) and help provide relevant connection to the Older Millennial whenever possible. This includes outreach to increase coverage/social conversations around recent and emerging beef nutrition research, reinforcing beef’s nutrients and their importance to a healthy diet.

Continue to develop the content foundation to BeefItsWhatsForDinner.com, BeefNutrition.org and corresponding social media properties.

Tap into crowd-sourcing (working with Market Research) to facilitate a genuine dialogue and better understand Millennials’ needs and who they trust for information.

Evaluate and form strategic, integrated partnerships and mobilize across a paid/owned/earned model.

Continue to use the integrated measurement system (which includes traditional and online media) to evaluate programming outcomes and progress.

Proposed cost: $1,165,940 (Direct Cost + Estimated Implementation)

Tactic 1B: Consumer Influencer Engagement (Advocacy Engine)

Establish an introduction strategy and approach for new health professional targets including the nation’s leading fitness professionals and targeted physicians who are visible online and communicating actively in their community.

Continue to identify credentialed health and nutrition communicators who are important to millennial parents (fitness professionals, RDs and physicians who are reachable and have a significant online presence) and connect with them while maintaining focus on relationships initiated with fitness and health communicators in FY13.

Continue building strong relationships with media and bloggers who provide weeknight mealtime solutions with beef education and relevant resources that meet the Older Millennial needs.

Identify nutrition, parenting and food thought leaders to serve as program advisors, tapping them for insights and outreach.

Focus on e-publication opportunities, pitch and place proactive media stories in consumer media outlets targeting Older Millennials like the online and social arms (blogs, Facebook pages, websites, etc.) of publications such as Self, Shape, Men’s Fitness, Cooking Light, Real Simple and Everyday with Rachael Ray.

Develop motivating, meaningful experiences (may take place in conjunction with professional conferences where influential physicians, fitness professionals and nutrition experts gather) to compel credentialed health and nutrition communicators to recommend beef, knowing it is nutritious and delicious. These in-person experiences are critical to building relationships, gaining trust and motivating advocacy.

Tap into bigger, break-through experiences (like Self Workout in the Park) where beef provides a surprising, memorable a-ha moment for consumers. Continue the pipeline of content throughout the year.

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Develop an nutrition, parenting and food influencer strategy for the convergence between nutrition and sustainability in collaboration with research and issues management teams.

Increase velocity of sharing by elevating content engine wins via social media and influencers – Pinterest, retweets, blogger posts, posts on Facebook page, etc. to further elevate good traditional news and fuel the conversation in social media.

Build upon successful process and tools for creating and maintaining consistent, ongoing interaction with nutrition, parenting and food influencers including in-person briefings or personalized “virtual” visits to help provide support, tools and resources.

Empower and engage State Beef Councils and others to serve as change agents with this new health professional target.

Continue to assess the best opportunities to reach and mobilize audiences through membership organizations, exhibiting at tradeshows, presenting at professional conferences, editorial in trade publications and more.

Create a measurement system to track and evaluate the impact/reach of nutrition communicator engagement.

Proposed cost: $2,351,800 (Direct Cost + Estimated Implementation)

SUPPLEMENTAL INFORMATION – CONSUMER INFLUENCERS

A. Will all of the work detailed in this WP be completed by the end of the fiscal year? If not, please provide an explanation. Yes, all work will be complete by the end of the fiscal year.

B. Changes from FY 2013 Approved Program:This program has been traditionally called Public Relations and Nutrition Influencer. We have integrated these efforts and built two foundations: a Content Engine, and an Advocacy Engine. We have designed all content for consumers or influencers (whether visual or written) to be centered in Tactic 1A. Then, in Tactic 1B, you’ll find all consumer influencer outreach efforts. These ‘influencers’ include the nation’s leading reporters, bloggers, medical, fitness or nutrition professionals. We have put several measures in place to ensure we’re reaching those who most influence the way Millennials think. And, we’ve built in a social media focus based on producer direction and knowing it’s such a valued tool for beef. We have re-thought the RD focus, and have built in an important introduction strategy and immersion experiences that are focused on changing the way advocates think about beef.

C. Subcontractor information (agencies, etc.): FUSE (a “fuse” of Ketchum and Foodminds, two agencies that have supported the beef checkoff for many years) was chosen as the principal agency to work on the Beef Content Development and Consumer Influencer Engagement and Educational Outreach areas in October 2012. The contract was competitively bid and FUSE was chosen based on their strong relationships and expertise. The agency will be reviewed annually and must meet or exceed expectations to continue work. Nutritionists and consultants/contractors based on expertise

D. Identify any relationships between this WP and projects previously funded by the Operating Committee: Public Relations and Influencer tactics included in this Authorization Request build upon and complement projects funded by the Operating Committee since 1986.

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Channel Influencers – Completion Date: September 30, 2104While consumer demand for beef is strong, competition from less-expensive proteins like pork and poultry as well as vegetarian/ plant-based protein options remains fierce. In order to help drive beef demand, channel engagement enables a broader reach of checkoff resources to those directly able to connect consumers with beef and influence purchase behavior. With a unique and direct understanding for the key motivators and obstacles facing channel partners in today’s marketplace, this program works to support retail and foodservice operators abilities to adjust practices to target evolving consumer preferences. The goal is to continue to position beef as the most valuable protein player on the menu and in the meat case, to protect share and help drive innovation and volume sales.

This channel influencer strategy, also known as business-to-business marketing, provides a level of leadership to coordinate strategic insights for all beef purveyors. It leverages long-standing relationships with leading retail and foodservice chains to efficiently reach the end consumer and those tasked with bridging the gaps on core beef brand attributes and limiters. It puts checkoff resources, from research to marketing tools, directly in the hands of those who sell beef to consumers, including millennials. Success requires a balanced mix of programs that reach channel influencers wherever they may be – and targeting them with relevant campaigns, content, market insights and messaging at every step of the way.

With a refined focus in 2014, we advocate for the use of checkoff dollars where they can be the most effective in leveraging channel relationships to build long-term demand, and not duplicate short-term promotional activity initiated by branded beef companies, suppliers and consumer packaged goods companies. Therefore, we will work to address the following objectives:

Expand the placement, overall use and visibility of beef in each channel. Develop and introduce new beef innovations, techniques and culinary ideas

targeting hot-growth segments where beef can have the most impact, such as prepared foods in retail and fast casual and upscale casual foodservice operations.

Serve as a strategic partner for the retail and foodservice partners motivated to position beef as an essential element of their consumer marketing efforts.

Arm partners with valuable insights on the in-store, digital and social marketing platforms most effective for promoting beef to targeted demographics.

Measurable objectives Create and implement a mechanism to assess and track channel influencers.

A benchmark will be established in FY 2104 to gauge future progress. Create an informative and inspiring education experience for targeted channel

influencers. Gather ongoing feedback to determine value and to support continuous improvement efforts. Pre-post surveys will be conducted to measure change in attitudes related to these experiences.

Reach 75% of the channel influencer target with positive beef messages on a monthly basis through a mix of paid, earned and owned media. The effectiveness of each type of media effort will be measured based on industry standard Key Performance Indicators (KPIs) – i.e. secured account leads, media impressions, click-through rates, etc.

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Tactic 1C: Retail/Foodservice Education (Channel Content Engine)

The channel content engine is constantly working to strengthen beef’s among the businesses that sell beef to consumers. This strategic content development platform is the only guaranteed voice in the marketplace that is working to proactively address operator concerns on beef’s value amid higher prices and tightening supplies that are threatening beef’s share on the menu and in the meat case. In addition, communications activity extends timely market intelligence and checkoff research such as sustainability and better-for-you beef options to support partner efforts to capitalize on consumer purchase behaviors, and strengthen beef’s visibility in key growth segments that hold the most promise for driving volume sales.

Through an integrated mix of communications tools, this effort will increase channel partners awareness of core beef issues and opportunities to increase sales through all checkoff-funded marketing resources. Specific efforts to educate channel influencers and generate leads for engagement include:

Paid media:o Continue to inspire and educate foodservice professionals via the award-

winning BEEFlexible foodservice trade advertising campaigno Explore paid content partnerships to help operators connect Older

Millennials to Millennial farmers and ranchers, and elevate the shared values of the beef community

Earned media:o Tell beef’s good news story in retail and foodservice trade publications by

developing media pitches, bylined articles and press releases that promote beef’s brand attribute and advocates.

o Connect channel media with beef industry subject matter experts and resources to accurately report on beef trends, sales and marketing opportunities

Owned Media: o Generate engaging content that proactively gives channel advocates

what they need to communicate the benefits of beef. o Continue to develop the content foundation to BeefRetail.org,

BeefFoodservice.com, Retail Beef Blast and other direct channel communication tools

o Create shareable content and visuals like infographics, fact sheets, consumer-targeted web copy, cutting demonstrations, photography and toolkits that retail shopper marketing teams can leverage to engage the Older Millennial.

o Inspire retail and foodservice chefs and menu decision makers with forward-thinking, on-trend beef recipes and inspirations

Proposed cost: $1,704,350 (Direct Cost + Estimated Implementation)

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Tactic 1D: Retail/Foodservice Influencer Engagement (Channel Advocacy Engine)

Establishing trusted relationships with key channel influencers creates the critical link between the beef industry and the businesses that sell beef. This team is dedicated to build and nurture relationships with the national supermarket and foodservice decision makers responsible for expanding beef’s presence in the meat case and on the menu. Their efforts address the need for beef to be present and part of the conversation with business-to-business stakeholders, whether gathered at industry tradeshows and conferences or customized meetings to ideate innovative solutions with targeted top national accounts.

In addition to working directly with retail and foodservice influencers, this tactic supports State Beef Council staff in extending national channel influencer programs at the local level and resulting in increased value for invested checkoff funds.

Beef TrainingChannel influencers have identified continued beef training as a core need and a vital facet of their relationship with the Beef Checkoff. This tactic plays a fundamental role in helping business partners build relationships with customers by educating them on all facets of beef (e.g., marketing, merchandising, production, product quality). This resulting knowledge base serves as the primary platform for educating key stakeholders and builds an empowered proactive front for championing beef’s core attributes for targeted consumers at the grocery store or the restaurant.

Specific training and education activity will include the development and execution of beef immersion events, cutting demonstrations and the continued support for Beef University, the current online training platform for beef professionals. Each effort is designed to enhance overall beef knowledge and position retail and foodservice operators as trusted, credible experts for today’s beef consumers.

Customized Marketing SupportThis tactic is also responsible for executing targeted account-specific merchandising and menu support positioned to keep beef top-of-mind with consumers every time they shop or dine out. The overall impact of these programs and partnerships will be further strengthened through joint participation by key retailers, foodservice operators and State Beef Councils, thus extending the reach, duration and impact of the collective effort. Account-specific marketing support will focus on one or more of the following priorities identified through the planning process and confirmed in the 2013 Beef Demand Study: New beef cuts and applications Portion size options Preparation ease, product freshness and safety, new packaging and merchandising

solutions Specific attributes associated with factors related to human health (leanness,

cholesterol, adding protein to the diet, etc.)

In-Store Merchandising SolutionsRetailers and foodservice operators seek creative programs that deliver a craveable eating experience aligned with consumers evolving needs, even in the wake of tight

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supply and higher prices. This tactic provides for the development of new retail merchandising techniques and innovative go-to market strategies that showcase beef’s value to enable businesses to continue to purchase and sell beef every day for every meal occasion.

In 2014, the focus will be on introducing tools tailored for current market conditions and aligned with trend-setting fresh food options, such as prepared foods at retail. Recently, significant growth in the retail grocery prepared foods department has inspired many grocers to step up efforts to stay competitive and tap new revenue opportunities. We will support retailers’ needs for delivering quality take-home, ready-to-eat beef offerings and higher-end selections for in-store dining.

This tactic also supports the continued execution of established marketing programs that provide channel influencers with proven marketing programs that amplify beef’s core brand attributes to their shoppers and patrons.

Specific marketing tools include: Value – Beef Alternative Menuing/Merchandising, Slice ‘N Save Nutrition - American Heart Association Certification, National Restaurant

Association’s Kids LiveWell program Convenience – Easy Fresh Cooking, Prepared Foods

Proposed cost: $2,366,180 (Direct Cost + Estimated Implementation)

Tactic 1E: Retail/Foodservice Market Intelligence and Monitoring

Consistently monitoring beef’s performance in the retail and foodservice segments over time supports the ability to offer channel influencers strategic recommendations to enhance performance and utilize beef’s competitive edge in the marketplace. The tactic collects, analyzes and disseminates the sales intelligence and research designed to help industry partners better manage costs, forecast trends and improve sales.

Data is compiled, analyzed and distributed to key stakeholders in the channel to further supports the importance of beef to retail and foodservice operations. We track trends and identify valuable insights to keep beef’s profitability top of mind with operators and protect beef’s place on the menu and in the meat case with strengthened promotional activity. This program also supports the National Meat Case Study. Overall, this proprietary data secures the checkoff’s position as the leading resource for beef’s sales performance and pricing information for key stakeholders and influencers, including media.

Proposed cost: $554,080 (Direct Cost + Estimated Implementation)

SUPPLEMENTAL INFORMATION – CHANNEL INFLUENCERS

A. Will all of the work detailed in this WP be completed by the end of the fiscal year? If not, please provide an explanation. Yes

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B. Changes from FY 2013 Approved Program: National promotions with consumer packaged goods (CPG) companies have

been removed. Greater emphasis on education & training - more beef immersion events and

development of education materials Increased focus on identifying beef consumption behaviors specific to millennial

consumers demographics and supporting partners ability to successfully reach millennial consumers

C. Subcontractor information (agencies, etc.): Ketchum, Technomic, Meat Solutions, IRI/Fresh Look Marketing, Range Marketing

D. Identify any relationships between this WP and projects previously funded by the Operating Committee: This work plan allows for continuation of previously funded work in the channels (Retail Marketing, Foodservice Marketing)

B. Long Range Plan Core Strategy 2: Beef’s Image

Strategy 2 Proposed Cost: $2,077,110 (Direct Cost + Estimated Implementation)

Industry Influencers – Completion Date: September 30, 2104Engaging consumers and influencers in conversations about modern agriculture and being transparent about how beef is raised is critical to maintaining and improving beef’s image. In the spring of 2013, the U.S. Farmers and Ranchers Alliance (funded in part by the beef checkoff) conducted a consumer survey to determine how important transparency about food is to consumers. The survey found that transparency to consumers today doesn’t mean telling them everything—it means telling them something, whether that’s providing a website, connecting them with a farmer or rancher or making information available through grocery stores or restaurants. Previous research conducted by USFRA in 2011 found that more than half of consumers say what they really want to know about raising food is that agriculture is committed to continuously improving how we raise food. Given the opportunity to engage directly with a farmer/rancher, either through social media interactions or on-farm, hands-on experiences, their perceptions drastically improve, as evidenced by pre-and post-surveys given to influencers that have attended past farm tours hosted by the beef checkoff. These programs facilitate those opportunities by preparing farmers and ranchers to engage directly with consumers at the grassroots level while educating consumer influencers (e.g., medical and health professionals, retail/foodservice decision-makers, NGOs, etc.) who are actively participating in the dialogue about food production at the “grass-tops” level.

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The desired outcome of this bottom-up and top-down approach is to demonstrate transparency and demonstrate to consumers that the beef community is continuously improving the way beef is raised to meet their expectations. In addition, by proactively engaging consumers and influencers in the conversation about beef production the beef checkoff will head off emerging issues by maintaining consumer confidence in the way beef is raised and positioning the people who raise beef as a trusted source of information. Finally, the combination of high-tech (social media) and high-touch (hands-on experiences) provides the opportunity for meaningful dialogue to build trust with consumers that we are raising beef responsibly.

Measurable objectives: Host screenings of USFRA documentary in at least 10 influential or key venues,

whether that be top-tier media markets, at important customer meetings or groups and/or targeting Millennial audiences

Demonstrate positive changes in favorability toward the beef industry among target audience through pre- and post-experience or event surveys

Benchmark attitudes about the process of raising beef from pasture to plate through the Consumer Beef Index to determine a macro-measurement on improving the image of beef

Provide high-touch, hands-on experiences to more than 25 high-profile influencers and capture qualitative feedback along the way to help direct continuous improvement efforts

Tactic 2A: Beef Advocacy and Training

This tactic includes the longstanding Masters of Beef Advocacy (MBA) and Spokesperson Development programs with the purpose of developing well-trained grassroots beef advocates and media spokespeople throughout the beef community to address consumer questions related to raising beef cattle and the important role of beef in a healthful diet.

The MBA program, with more than 4,500 graduates in 48 states, will continue enrolling new students and building the nationwide network of beef advocates as well as mobilizing that network to engage consumers in social media, presentations and conversations. MBA advocacy training sessions and campaigns will focus heavily on equipping graduates for social media conversations with Millennial consumers.

In FY2014, online educational courses will be updated to stay current with computer and smartphone technology and reflect continuous improvements in beef production (e.g., safety and sustainability efforts). The graduate database also needs to be updated to improve our ability to stay in contact with graduates, more effectively mobilize them when an issue arises and allow access by state beef councils to graduates in their state.

Spokesperson Development will prepare key internal and external subject matter experts to conduct successful media interviews and deliver effective presentations. These spokesperson trainings provide support to both proactive and reactive checkoff media relations and influencer outreach efforts. Spokesperson Development also will

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provide support for state and national Team Beef efforts to deliver positive beef nutrition messages at running, cycling and triathlon events.

Proposed cost: $718,470 (Direct Cost + Estimated Implementation)

Tactic 2B: U.S. Farmers and Ranchers Alliance

The beef industry is a founding partner of the U.S. Farmers and Ranchers Alliance (USFRA) – a coalition formed in fall 2010 to lead the national dialogue about how we raise food. As of summer 2013, USFRA had more than 80 agriculture organization and company affiliates, and as a result, beef’s investment is matched at an approximate rate of $38-to-$1.

Specific activities planned for FY2014 include the release of a documentary directed by an Oscar, Grammy and two-time Emmy award-winner director about modern farming and ranching, which will be released nationally and screened regionally; hosting and publicizing a national Food Dialogues events attracting thought leaders; and continuing to convene the agricultural industry on key issues of consumer concern, including but not limited to biotechnology and antibiotics to discuss messaging, media opportunities, and overall response of the industry.

Issues Management will maximize beef’s investment in USFRA by applying USFRA market research insights to beef programs, using USFRA programs to enhance MBA graduate training and engagement opportunities and recommending beef farmers and ranchers to serve as national USFRA spokespeople. The Beef Checkoff investment helps ensure USFRA efforts align with and enhance Beef Checkoff program objectives rather than duplicating or counteracting them.

Proposed cost: $403,900 (Direct Cost + Estimated Implementation)

Tactic 2C: Beef Production Engagement and Education

We know from previous experience that beef production engagement and education experiences change opinions about, and build trust in, how beef is raised. Leveraging the sophisticated media monitoring system that is in place along with the unique scoring system established in 2013 which quantifies overall potential reach and influence of thought-leaders, the Issues Management team will hone in on the most influential and persuadable voices (such as health professionals, advocacy groups, bloggers, foodservice or retail professionals, sustainability experts, NGO’s and/or school communicators) to provide them education, experiences and/or original content that can help them understand how beef is raised today.

We’ll work closely with credible, third-party organizations, leveraging the state-national partnership and targeting existing events already attracting our thought leader audience and proactively placing positive content in these venues (e.g., Food Marketing Institute Sustainability Summit, BlogHer, and the Society of Environmental Journalists). Though we can’t get everyone out to a farm or ranch, we’ll extend these beef education and engagement experiences through virtual tools such as video, profiles, interactive displays and social media, which can be pushed out through the newly designed

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BeefItsWhatsForDinner.com website or the more issues-oriented FactsAboutBeef.com website.

Finally, we know based on our media monitoring and qualitative feedback that “sustainability” is a popular buzzword in influencer audiences. The beef checkoff is currently conducting more research to better understand what sustainability means to consumers and which subset of consumers (i.e. Millennials) may be interested in this topic. In FY2014, we will begin proactively communicating the findings of the latest sustainability science (e.g. the checkoff-funded beef sustainability assessment project) to influencers We will continue to leverage already established relationships built with influential sustainability stakeholders and organizations, such as The Nature Conservancy, to provide further credibility and reach.

Proposed cost: $954,740 (Direct Cost + Estimated Implementation)

C. Long Range Plan Core Strategy 3: Freedom to Operate

Strategy 3 Proposed Cost: $1,170,120 (Direct Cost + Estimated Implementation)

Producer Influencers (BQA) – Completion Date: September 30, 2014Beef Quality Assurance is the industry’s total quality management program to protect consumer confidence, improve beef safety, and provide producers with the latest management practices related to cattle care and handling.  BQA has protected consumer confidence for over 27 years by reducing antibiotic residues from 4% in the early 1980s to essentially zero in steers and heifers, eliminating quality issues related to injection site blemishes, and improving cattle handling to improve beef quality through reduced bruising and lower stress.  BQA provides cattle farmers, ranchers, feeders, truckers, livestock markets, and dairy operations with the education and tools to improve the quality of the cattle they raise and the trust of the consumer with the beef supply chain.In FY 2014 BQA will be the conduit of educational programs from the academic community to the stakeholders of the beef industry. BQA will reach cattle producers through various methods of modern communication to help all producers meet the demands of our changing consumer. For example, online applications will be delivered to allow producers to use BQA on a daily basis to improve quality, safety, and cattle well-being.

Measurable objectives: BQA will measure the impact through impressions and the increase in certified producers. Increase reported year-end FY2013 BQA benchmark certification by 10%. Achieve a minimum of 36 state coordinators attending the 23rd annual in-service

training (i.e., Train the Trainer). Follow-up via email to state coordinators to confirm that a minimum of 60% have incorporated one of the tools covered in the training.

Expand reach-of-training notification via multiple channels (e.g., LMA online, Superior Livestock video action, The Angus Report, Cattlemen to Cattlemen, Doc Talk, BQA website, and social media, etc.). Increase impressions by 10% from FY2013 as reported by Producer Communications.

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Safety Nutrition Convenience Taste Value Image Freedom

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Create an ATV training video for cattle feeders, cow-calf and stocker operations.

Tactic 3A: Educational Programs

BQA will deliver educational programs focused on cattle well-being, quality assurance, and certification. BQA will enhance training programs and facilitate implementation of on-farm BQA practices and tools. Target audience for training will include seedstock, cow-calf, stocker/backgrounder, feeder, dairy, auction markets and transporters. Specific efforts will: Increase BQA certification across industry segments and regions of the U.S. Improve awareness of the value of BQA to every segment of the industry (NBQA

results, BQA award winners, success stories, etc.). Create key animal-care training materials (e.g., euthanasia training, cattle handling,

etc.). Explore integration of Sustainability into BQA.

Proposed cost: $1,170,120 (Direct Cost + Estimated Implementation)

SUPPLEMENTAL INFORMATION – BEEF QUALITY ASSURANCE

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. Yes.

B. Changes from FY 2013 Approved Program: Delivering apps that allow producers to use BQA on a daily basis to improve

quality, safety, and cattle well-being. Improvements to education on cattle well-being. Focusing on providing more opportunities for producers to become certified.

C. Subcontractor information (agencies, etc.): University contractors, the Minnesota Beef Council; Pennsylvania Beef Council; Kansas State University; Dale Heikes High Definition (DHHD formally Agrivision); and McCormick & Co. Other vendor/subcontractors to be determined as project needs dictate.

Beef Quality Assurance State Pilot Project proposals will be reviewed and evaluated for potential funding by a working group composed of members of the Beef Quality Assurance Advisory Board.

D. Identify any relationships between this AR and projects previously funded by the Operating Committee: This AR is a continuation of the Industry’s Quality Assurance initiative (Beef Quality Assurance and Dairy/Beef Quality Assurance) and further builds upon and expands previous efforts and programs developed and implemented by the industry’s Quality Assurance initiative. The beef industry’s Quality Assurance commitment and initiative began in 1987. The programs, projects and educational materials to be developed as outlined in this fiscal year AR will further support and advance the producer’s commitment to addressing the consumers’ concerns about production practices that influence the safety, wholesomeness and quality of beef and beef products.

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IV. DETAILED BUDGET SUMMARIES

Summary by Strategy & Tactic

ProgramManager

CompletionDate

Total FY2014 Budget

(Direct + Estimated

Impl.)

TotalDirect Cost

Direct Cost by Funding Source Est.

Impl.CBB/ BPOC FSBCs Other

Strategy 1: Domestic Consumer Preference

Tactic 1A: Consumer Education

Michele Murray 9/30/2014 $1,165,940 $608,000 $529,551 $78,449 $557,940

Tactic 1B: Consumer Influencer Engagement

Michele Murray 9/30/2014 $2,351,800 $1,650,000 $1,437,103 $212,897 $701,800

Tactic 1C: Retail/FS Influencer Education

Michele Murray 9/30/2014 $1,704,350 $1,183,000 $1,030,359 $152,641 $521,350

Tactic 1D:Retail/Foodservice Engagement

Michele Murray 9/30/2014 $2,366,180 $1,242,000 $1,081,746 $160,254 $1,124,180

Tactic 1E:Retail/Foodservice Market Intelligence and Monitoring

Michele Murray 9/30/2014 $554,080 $450,000 $391,937 $58,063 $104,080

Totals - Strategy 1 $8,142,350 $5,133,000 $4,470,696 $662,304 $3,009,350Strategy 2: Beef’s Image

Tactic 2A: Beef Advocacy and Training

Season Solorio 9/30/2014 $718,470 $300,000 $261,291 $38,709 $418,470

Tactic 2B: U.S. Farmers and Ranchers Alliance

Season Solorio 9/30/2014 $403,900 $250,000 $217,743 $32,257 $153,900

Tactic 2C: Beef Production Engagement and Education

Season Solorio 9/30/2014 $954,740 $610,000 $531,292 $78,708 $344,740

Totals - Strategy 2 $2,077,110 $1,160,000 $1,010,326 $149,674 $917,110Strategy 3: Freedom to Operate

Tactic 3A: Educational Programs (BQA) Ryan Ruppert 5/31/2015 $1,170,120 $685,000 $596,615 $88,385 $485,120

Totals - Strategy 3 $1,170,120 $685,000 $596,615 $88,385 $485,120

AR Totals 11,389,580 6,978,000 $6,077,637 $900,363 $4,411,580

NOTE: New Product/Culinary and most of Channel Marketing are now in Consumer Information.

E. Summary of Prior Year AR Budgets and Expenses: CONSUMER INFORMATION

CONSUMER INFORMATION

FY 2013 Approved Budgets FY 2013 Actual Expenses(NCBA’s as of 5/31/13)

CBB/BPOC FSBCs Direct Cost Total CBB/BPOC FSBCs Total Impl.

AR Totals $ 1,963,884 $ 299,116 $ 2,263,000 $2,263,000 $ 657,479 $100,251 $ 757,730 $870,781

F. Historical Summary of Budgets and Expenses: CONSUMER INFORMATION

CONSUMER INFORMATIONTotal Approved Budgets Total Actual Expenses

FY 2012 FY 2011 FY 2010 FY 2012 FY 2011 FY 2010

AR Totals $ 2,653,000 $ 2,573,000 $ 2,778,300 $ 2,149,875 $ 2,477,193 $ 2,749,727

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