US Beef Re-entryMarketing Strategy

Asia Pacific Region

Asia Pacific:  Post-BSE Market Re-opening Assumptions

• Quick return of consumer confidence and purchasing once product is "placed“, esp. at foodservice;

• Quick take-up of traditional U.S. slicing and Yakiniku items including short ribs, chuck ribs and short plates;

• Quick recapture of most pre-BSE U.S. chilled beef retail market share from Australia;

• Possible short term supply-demand imbalance induced by initial wave of buying, esp. of commodity items; 

• Longer-term:  stronger U.S. competitive position based on continued high product quality and enhanced safety, barring additional multiple BSE cases.

US Beef Re-entryMarketing Strategy

Japan

Current Market Environment

Fact and our belief !!

US Beef is the safest in the world !!But…..

Key to Market re-entry

Then how???Pushing the Japanese to buy

US beef?

No contradiction but work along with their thinking

To Win Japanese Support

Double “H” Approach

Harmonious and Humble Approach

Market Re-entry Project

1. Win the confidence of Japanese consumers by sincerely appealing to their emotion, housewives at the age of 20-40 years old

2. Then re-educate with the facts3. Obtain the full support from the past

users of US beef4. Changes in actions along with the

market phase of the resumption

Theme for Re-entry Project

Thank you all! American Beef Again!

KOREA: Market Re-opening Tactics

Pre-opening

• New U.S. beef image development

• Continued retail promotion

• PR campaign to re-introduce U.S. beef

Opening & Post-opening

• Safety & market outlook seminar

• Seoul food show (4/05)

• HRI: chef consulting, chef team, menu promotions

• Retail: heavy promotion, retail display team, supportive coop. adverts.

• Consumer: Anshim campaign, Seoul Beef festival, media team

TAIWAN: Market Re-opening Tactics

Promotions

Stage One: First month after beef trade resumes: Promotions will focus on top 3 sales items:

Boneless Short Rib, Finger Meat & Short Plate

Stage Two: Second to third month after beef resumes: Promotions will focus on high-end cuts:

Ribeye, Tenderloin & striploin

Activities

1. Replacement Adverts.: High-end Restaurants Air-lift High Quality U.S. Beef to Content Beef-eaters

2. High Quality U.S. Beef Retail Showcases3. Bus Panel Adverts.: Joint Promotions Advertisement with Retailers

CHINA/ HONG KONG:Market Re-opening Tactics

• Trade reception

• Press conference & associated public relations

• Retail promotions & new POS roll-out

• Foodservice promotions with major partners

• Trade teams

• Assumption: no resistance in consumer uptake of “new” U.S. Beef

Questions

Current Market Environment

63% vs. 36%

Do You Agree Resumption of US Beef Imports?

(Tel Survey by Asahi Newspaper, 10/23,24. N=1832)

Do You Eat US Beef Then?(Tel Survey by Asahi Newspaper, 10/23,24. N=1832)

Influence Correlation

Direction of Influence

Source: MEF

LDP/ DPJ

ACADEMIA

J P TRADE

FSC

FOOD/ ENV J OURNALISTS

CONSUMERS/ SILENT MAJ ORITY

MEDIACONS ORGS

GOJ

Current Market Environment

Current Market Environment

Many Japanese consumers tend to regard the resumed import of American beef in a “political”

framework. It is also true that their antipathy to U.S. makes many consumers oppose the resumption of the

import of American beef.

Current Market Environment

Myth about the 100% testing as the Golden Standard for Safety

Political struggle over the 100% testing issue (LDP vs. GOJ)

Double Standards !!!

Social Environment

On the other hand…Japanese perception to the US?

Going negative !•Iraq Issue•Unscientific/emotional debate Then, Power politics ?

Re-entry Project: Time Frame

Divide the entire campaign period into three phases:

1) Pre-resumption phase

2) Resumption of imports

3) Promotion and communication programs to boost demand

Re-entry ProjectPre-resumption Phase

Concentrate on the relation maintenance and build-up

•Trade Servicing and information gathering with the Trade•News Letters/Web to update the efforts of the US for the resumption•Experts to the US for endorsement•Selected trade to the US

Re-entry ProjectTrade Resumption Phase

Commemorative events to announce the resumption and our stance—Link with targeted trade/TV/ads

•Trade/Consumer BSE and safety seminars•Promotion with key promoters first•Development and distribution of the campaign tools •Development of educational materials to support the educational activities•Trade journalist team to the US•General media team to the US? (Political situation?)

Re-entry ProjectTrade Expansion Phase

•Full Scale implementation of tie-up events/sales promotions with ads/publicity/PR•TV/Mags/NPs will support the actions with facts on US beef•Increase the frequency of consumer contacts

Basic Concept for Communication

Pre/Trade resumption phase(Adopt a completely sincere manner to communicate

efforts to ensure safety to get an opportunity to restore confidence among consumers)

Trade Expansion phase(Make all-out efforts to restore confidence based on food safety to

establish a base on which to rebuild the brand)

Perception to acquire

■The U.S. does not seem to be trying to pry the market open

■I’ll listen to them anyway.

●They seem to work more seriously than expected.●People around me begin to accept American beef, which is loved by everyone.●I like American beef and can feel it closer to me than before.

Commitment to continued

efforts to ensure safety

Efforts to provide peace of mind

Efforts to enhance quality in addition to peace of mind

Removal of concerns

Recovery of

confidence + new

attraction creation

Endorsement of food safety

Provide scientific evidence to substantiate endorsement

SP activities

Provide information suitable for POP tools Provide information and mechanism to motivate targets to buy

Jan Feb Mar Apr Mar Jun Jul Aug Sep

Media Formation

Pre/Trade resumption phase(Adopt a completely sincere manner to communicate efforts to

ensure safety to get an opportunity to restore confidence among consumers)

Trade Expansion phase(Make all-out efforts to restore confidence based on food safety to establish a base on

which to rebuild the brand)

Commitment to

continued efforts to ensure safety

Efforts to provide peace of mind

Efforts to enhance quality in addition to peace of mind

Removal of concerns

Recovery of

confidence + new

attraction creation

Endorsement of food safety

Provide scientific evidence to substantiate endorsement

SP activities

Provide information suitable for POP tools Provide information and mechanism to motivate targets to buy

Jan Feb Mar Apr Mar Jun Jul Aug Sep

Newspaper ads

TV ad Magazine ads

Leaflet POP tools & leaflets

Magazine ads

PRPR

Newspaper ads

Newspaper ads Newspaper

ads

Conducting Tracking Surveys for Verification and Adjustment of the Strategy

Tracking survey

Import resumption phase(Adopt a completely sincere manner to communicate efforts to ensure safety to get an opportunity to restore confidence among consumers)

Demand promotion phase(Make all-out efforts to restore confidence based on food safety to establish a base on

which to rebuild the brand)

Commitment to continued

efforts to ensure safety

Efforts to provide peace of mind Efforts to enhance quality in

addition to peace of mind

Removal of concerns

Recovery of confidence +

new attraction creation

Endorsement of food safetyProvide scientific evidence to

substantiate endorsement

SP activitiesProvide information suitable for

POP tools Provide information and mechanism to motivate targets to buy

Jan Feb Mar Apr Mar Jun Jul Aug Sep

Newspaper ads TV ad Magazine

ads

Leaflet POP tools & leaflets

Magazine ads

PRPR

Newspaper ad

Newspaper ad

Newspaper ad

Tracking survey

Confirm when to switch one phase to the other

Feedback to the strategy

Tracking survey

Consider additional programs

US$ 5 Mil. Budget Plan

(Exchange rate at \110 per US$)

(Exchange rate at \110 per US$)

US$ 10 Mil. Budget Plan

?? Questions ??

XXXXXXXX– Japan

Current Market Environment