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Meeting Customer Needs for Seafood

Peter Hajipieris

Commercial Manager – Fish

Tesco Stores Ltd

Challenges of Fisheries Globalisation, OECD, Paris, 16th & 17th April 2007

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Contents

1. What do shareholders demand of a listed supermarket?

2. What shapes in-store consumer demand for seafood ? Counter & Pre-Pack.

3. How will emerging consumer attitudes affect the end to end seafood chain?

4. Impact of Own/Private Label & Sustainability on future customer behaviour.

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1. What do shareholders demand

of a listed supermarket?

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1. What do shareholders demand of a listed supermarket?

� Clear long-term strategy

� Good Governance

� Transparency

� Regular Reporting

� Strong Performance & ROI

� Listening to Customers

2,800 Stores

Worldwide

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1. What do shareholders demand of a listed supermarket?

Sustainability

more customers than

ever before, think the

environmental impact

of sourcing seafood

is an important factor

in their purchasing

decisions

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1. What do shareholders demand of a listed supermarket?

Listening to

Customers

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1. What do shareholders demand of a listed supermarket?

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2. What shapes in-store

consumer demand for seafood ?

Counters Pre-pack

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2. Counters

Consumer Drivers

1. Format - Concept Design

2. Store Operations

3. Product Quality

4. Range

5. People & Training

6. Customer Service

7. Marketing

8. Suppliers & Sourcing

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2. Counters

1. Format - Concept Design

Consumer Drivers

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Counters Insights Counters Insights

2. What shapes in-store consumer demand for seafood ?

� Why do customers buy off Tesco fish counters?

1. Freshness

2. Service exact shopping needs (portion control)

3. Being able to choose a specific cut (fillet/steak)

4. Range/Variety

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2. Counters

4. Range/Variety Tesco UK source seafood from

over 38 countries worldwide

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2. What shapes in-store consumer demand for seafood ?

PrePre--Pack.Pack.

1. Store Format

2. Range/Variety

3. On-Shelf Availability

4. Product Quality

5. Value for Money

6. Portion Size/Convenience

7. Marketing/Press Coverage

8. Promotions

9. On Pack Provenance

Consumer Drivers

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2. What shapes in-store consumer demand for seafood ?

PrePre--Pack.Pack. Consumer Drivers

1. Store Format

2. Range/Variety

3. On-Shelf Availability

4. Product Quality

5. Value for Money

6. Portion Size/Convenience

7. Marketing/Press Coverage

8. Promotions

9. On Pack Provenance

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3. How will emerging consumer attitudes

affect the seafood chain?

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3. We have to satisfy consumers from all lifestyle groups

Express Metro Superstore Extra

Everything

under one

roofsocially

responsible

food quality

& expertiseValue for money

provenance/

origin

expect

needs to be

served

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3. How will this affect the seafood chain?

� Governance regime is crucial to promote long term Planning & Sustainability

� Highly visible & active Inspection Control Regimes of commercial fisheries

� Infrastructure development to match demands of fast moving retail sector

� Improve knowledge & capability of all sector stakeholders e.g.

- Sustainability

- Innovation & raw material utilisation

- Retailing Demographics & Retail Business Models

- Utilising existing bodies and frameworks to further industry understanding

Governmental Level

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3. How will this affect the seafood chain?

� Increased pressure to source seafood from ‘approved’ sources

� Aquaculture is key within the supply chain - expect this to grow

� Strategic cross-border alliances – security of supply/quality/traceability

� More Retail/Processor collaboration on product development/innovation

Supply Chain Level

….Supply side & Retailers are two sides of the same knife.

………….if one side is blunt, the other won't cut.

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4. Impact of Own/Private Label & Sustainability

on future consumer behaviour.

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4. Impact of Own/Private Label on consumer behaviour

consumer expectations..

� to be trusted & recognised

� signals a difference in quality

� product consistency

� meets consumer group needs……

� messaging is clear and consistent

� delivers transparency

e.g. provenance & sustainability

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4. Impact of Sustainability on future customer behaviour.

� Brands will need to demonstrate a Fish Sustainability Policy

� Provide clear labelling for provenance & sustainability

� We must all work actively, to support, develop and improve standards

and reduce environmental impact

� Structured/transparent decision making process for

wild fish procurement (Tesco has the ‘Fish Stocking Tree’)

� Still evolving but the risks are clear:

- damage to prospects of existing markets

- damage to prospects of future industry & communities

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Do we care for future generations?

OECD, Paris, 16th & 17th April 2007

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Thank You..

OECD, Paris, 16th & 17th April 2007