Ready Meals Presentation

1
Ready Meals Presentation
2
Ready Meals Marketing

• Definition
• Cryovacs Prospective
• Marketing the Segment
• Segment information
• Acceptance / Price Sensitivity
• Latest Marketing Studies
• Packaging Offerings (now future)
• Marketing Consumer Outreach

3
Ready Meals - Definition

• Convenience is one of the primary drivers of
  Ready Meals in the U.S. Though the term
  convenience is tossed around by many, not all
  use the same definition. Food Processing
  Magazine quotes NPD, a new product development
  group, as saying convenience has three elements
  
• 1) quick preparation
• 2) ease or simplicity of preparation
• 3) minimal or eliminated cleanup

4
Marketing the Segment

• 2006 10.8 Billion Units / project to be 18.8 B
  by 2011
  
• Biggest growth in Refrigerated at 22.5 (8.5B by
  2011)
  
• 90 of all Microwavable foods are reheated /
  cooked in the Microwave
  
• 93 mention ease of preparation as a reason for
  choosing a certain product
  
• 72 of consumers are willing to pay a premium for
  a certain level of convenience
  
• Education is a key to help differentiate your
  package from the others
  
• Coupons
• Shelf-talkers
• Demos
• Other forms of advertising

5
-Simple Steps - Focus Group Summary
6

Executive Summary

• Most shoppers consider packaging during their
  purchase decision. While packaging was not the
  primary product component that influenced the
  decision, it was a factor. The vacuum-seal
  packaging of the SS conveys positive benefits to
  shoppers in two different ways
• Makes heat and eats more visually appealing
• The visual presentation of the Simple Steps
  makes shoppers feel the food is juicier, fresher,
  has a longer shelf-life, and is less susceptible
  to contamination. It also makes the product
  easier for shoppers to see. The Simple Steps
  heat-and-eat package looks more appealing and
  suggests higher food quality to shoppers. The
  visual appeal of the product is also enhanced
  after it is prepared.

7
Executive Summary

Makes heat and eats more convenient
The product demonstration causes shoppers to
praise the Simple Steps convenience. Shoppers
like the faster, cleaner, and easier cooking
process afforded by the Simple Steps one-step
preparation and cooled-down ease of handling.
Shoppers think the Simple Steps helps avoid the
mess created by the necessity of scissors, packet
emptying, and hole poking that current
heat-and-eat packages demand. Shoppers value the
option of cooking a product in the same tray or
packaging in which it was purchased.
Transferring the meats for preparation is viewed
as a messy, time-consuming hassle. While
shoppers are split as to whether they enjoy
eating out of the preparation tray, everyone
wants the option to prepare products in their
bought container.
8
Conclusion
Shoppers like the easy handling advantages of
the Simple Steps and the more exposure they have
to the product, the more they like it. Shoppers
thought no slit cutting and no cutting emptying
the contents was important. At their initial
contact with these heat and eat products,
shoppers preferred the Current product, BUT, once
these advantages were made apparent to them
(video), product preference significantly jumped
past the Current product.



More Exposure Higher Preference!
Focus Groups (highest exposure, highest
preference)
Simple Steps Preference
After product video (knowledge, increased
preference)
Initial contact (low knowledge, low preference)
Exposure
9
FULLY COOKED ENTREES-- Final Report --
Response Check Survey

• A RESEARCH STUDY CONDUCTED FOR
• CRYOVAC BY
• FITZGERALDCO
• STUDY NO. 15170402

10
Factors Influencing Purchase Decision

• Numerous factors play a role in driving
  purchase.
  
• Nearly all buyers mention ease of preparation as
  an influential factor in their purchase
  decision.
  
• Looking appealing on the shelf and cost
  consideration are impacting purchase decision for
  a considerable proportion of buyers.
  
• Roughly 1 in 10 purchasers specifically mention
  packaging features as an influence on purchase
  decision.

Ease Of Preparation
Looks Appealing
Cost Consideration (Net)
Coupon/Special Promotion
Price
Packaging Features
Recommendation
Base Total Purchasers (n404)
(Principal Mentions)
11
Ease of Preparation Compared to Other Fully
Cooked Meat Products

• More than 7 out of 10 purchasers consider the
  ease of preparation of the Simple Steps entrees
  to be better than other fully cooked meat
  products.
• One-quarter feel the products ease of
  preparation is the same as other competitive
  products.
  

Better Than Others
The Same As Others
Worse Than Others
Base Total Who Have Purchased
Other Fully Cooked
Meat Products (n331)
12
Future Purchase Intent

Definitely/Probably Will Buy

• Four out of five purchasers claim they will buy
  the Simple Steps entrees in the future, with
  one-half of purchasers saying they definitely
  will buy.
• Few purchasers have negative repurchase intent.

Definitely Will Buy
Probably Will Buy
Might Or Might Not Buy
Probably/Definitely Will Not Buy
Probably Will Not Buy
Definitely Will Not Buy
Base Total Purchasers (n404)
13
Price Sensitivity and Product Benefits of Simple
Steps Packaging

• Survey analysis prepared by FitzgeraldCO

14
Concept Visuals

• First, consumers were exposed to the current
  packaging instructions and asked about their
  purchase intent at a price point of 5.49.
  
• Next, consumers were exposed to the Simple Steps
  packaging instructions and asked about their
  purchase interest and purchase intent at three
  price points
• First asked purchase interest at a price they
  consider reasonable.
  
• Purchase intent at a 5.79 price point and if
  they did not say they Definitely would purchase
  at 5.79, then they were exposed to
  
• 5.69 price point and if they did not say
  Definitely would purchase, then they were
  exposed to
  
• The 5.59 price point.

15
Purchase Interest Top 2 Box
53
51
49
41
Here you can see the purchase interest for Simple
Steps compared to the current packagethe Top 2
Box estimate (both the Definitely Would Purchase
and the Probably Would Purchase responses).
Purchase intent for Simple Steps, at any of th
e prices tested, is superior to the Current
package however, you begin to lose some of the
interest as you raise the price. (4 loss at
5.69 and 8 loss at 5.79).
16
How Many are Willing to Pay a Premium?
It is encouraging to see 72 of the total
marketplace is willing to pay at least a small
premium. They see some added value in the
product. This number is slightly higher for F
requent Purchasers, but not significantly.
This number is slightly lower for Occasional
Purchasers, but not significantly.
17
Willingness to Pay Price Premium forSimple Steps
Packaging
You can see the steep drop off of those who
stated they would be willing to pay more than
0.50 over the 5.49 base price.
A majority (52) of consumers indicate they would
tolerate a price of 5.99. This represents
nearly three-quarters (73) of the initial 72
who would pay anything extra.
Q7 Assume that a heat serve entrée that uses
Package Option 1 costs 5.49. Now consider that
the same entrée in Simple Steps packaging would
costs more per package to produce. How much MORE
(over the base price of 5.49) would you be
willing to pay for a product that uses this
Simple Steps type of Packaging? Insert a number
between 0 and 99 for both dollars and cents.
18
Features/Benefits of Simple Steps?

• What Processors Value
• Cook-In Capability
• Product can be Cooked, Shipped and Sold, All in
  the Same Package
  
• Approved for 190F upto 12 hours in smoke house or
  hot water tanks
  
• Post-Pasteurized
• Less Equipment, labor and handling
• Can package raw or pre-cooked products
• Approved for 212F for 4 min. in Microwave (temp.
  is more critical than time)
  
• What Consumers Value Simple and Convenient
• EZ Open Tab
• Simply Peel and Serve No need for knives or
  scissors
  
• Side Handles
• Stay Cool During Reheating
• Convenient for Handling Hot Food
• Self-Venting

19
Features/Benefits of Simple Steps?(cont)

• Vacuum Skin Packaging
• Fits Food Contours, Improving Presentation and
  Appetite Appeal
  
• Safety Factors with Vacuum Packaging
• Total Seal
• Helps Keep Product Stationary in the Tray
• Reduces Leakers due to Greater Seal Area
• Freezer ready
• Easy to Store no crystallization
• Reheat and Serve in the same package
• No Mess in or out of the Microwave

20
Pampered Chef
21
Continued Market Research

• Continue Market Research
• Segmentation Study How consumer attitudes,
  income, demographics, etc., effect the buying
  decisions
  
• Microwave perceptions cooking and reheating

22
Microwave Perception Study Objectives

• Identify consumer perceptions of the microwave
  for cooking and reheating
  
• Determine consumer reactions to raw proteins to
  cook in the microwave (lamb,bison,beef,veal)
  
• First impressions, taste, ease of use, occasion
• Identify potential improvement areas based on
  consumer insight

23
Methodology

• Fitzgerald CO conducted 4 focus groups among
  microwave users in the Atlanta market
  
• Moms, ages 25-49 with younger kids at home
  under 10
  
• Moms, ages 30-54 with older kids at home 11-17
• Young adults, ages 25-39, no kids at home
• Empty nesters, ages 45-69, no kids at home
• All participants relied on their microwave
  frequently or heavily for preparing dinner
  
• 32 respondents participated and were paid 75
  each
  
• In each group, the first hour we discussed
  general microwave cooking habits and in the
  second we introduced, cooked, tasted and
  discussed beef, pork and fish microwavable
  entrees
• Taste preferences did vary by group due to
  inconsistencies in product preparation like
  length of time cooked, specific flavors and meat
  format

24
Key Learning

• Participants had heavy reliance on their
  microwaves using for at least some part of
  almost every dinner
  
• Skeptical about cooking meat in the microwave
• Most respondents expressed interest in the
  products after tasting
  
• For moms, good replacement when they are not
  home
  
• For households without kids, great meal option
  for any weeknight
  
• Respondents thought the microwavable tray made a
  good alternative meal solution
  
• Respondents were surprised and impressed with the
  taste gave them confidence and reassurance that
  microwaving meat is okay
  
• Possible improvements to presentation, piece
  sizes, and taste would increase appeal
  
• Primary benefit of the product is convenience
  respondents need easy, healthy meal solutions and
  this fits their need
  

25
Microwave Habits

• Respondents used their microwave almost nightly
  for dinner preparation
  
• Cooking vegetables
• Reheating leftovers
• Heating up frozen entrees
• Cooking/heating side items
• Kids meal items frozen foods, hot dogs, chicken
  fingers etc.
  
• For most, they felt they couldnt live without
  their microwave
  
• My family couldnt live without it. It keeps us
  together.
  
• My microwave and I are a team
• While some respondents felt 10 minutes was
  maximum time they would be willing to cook
  something in the microwave, others just saw the
  microwave as easier and didnt mind additional
  time
• If it takes longer than that, I could just do it
  myself
  
• Even if it takes a while, it still saves me time
  because I dont have to do all the work

26
Microwave AttitudesCooking Meat and Fish

• Most respondents were skeptical about cooking
  meat and fish in the microwave
  
• Might not be fully cooked unsafe
• Not evenly cooked
• Does not brown meats like oven or grill
• Gives meat rubbery, chewy consistency/texture
• Does not taste good
• Several had tried meat in microwave before
• A couple respondents had cooked turkeys in the
  microwave
  
• One respondent had just purchased a microwave
  roast and raved about the taste, ease and
  quantity (Sams Club)
  
• Some respondents were familiar with heat and eat
  entrees and had mixed reviews
  
• Appreciated the convenience, not convinced on
  taste or quality
  

27
Product Reactions

• Upon first viewing, respondents were skeptical
  about look, taste, texture, cooking method,
  doneness of meat and fish
  
• Not sure this was a product they would like or
  enjoy
  
• After tasting, respondents changed their opinion
• Im surprised at the seasoning I like it
• The flavor of the sauce (on the fish) is really
  good
  
• Product changed many respondents views of
  cooking meat in the microwave in a positive way
  
• Felt comfortable with cooking meat in the
  microwave alleviated fears about taste,
  evenness and texture of the meat
  
• Respondents thought the fish was flaky and the
  sauce added good flavor
  
• Provides an alternative to cooking fish which
  some respondents expressed uncertainty about
  
• Both beef and pork had good taste and texture
  overall well-liked
  
• Tasted better when had more au jus on the
  pieces
  
• I expected it to be rubbery and it wasnt
• Respondents anticipated price between 8-10
• Pleasantly surprised to learn actual price
  between 5-6

28
Product Benefits

• Convenience makes cooking meat for dinner easy
• When you come home from your day and you are
  dead tired, you can just zap it in and theres
  dinner for tonight
  
• Taste better than respondents anticipated and
  helped reverse their fears about microwaving
  meat
  
• Health benefits skeptical at first but easy
  source of protein for entrée
  
• The sauce on the fish is very salty and I
  would check the label for high sodium
  
• Leaves no mess eliminates pots and pans and
  makes clean up easy
  
• I hate it when I finish eating and then have to
  go wash a lot of pots this takes care of that
  problem
  
• New option for dinner
• If you dont eat fish or steak often and dont
  know how to cook it well, this gives you
  something new to serve
  
• Fresh respondents prefer fresh meat/fish to
  frozen for taste and typically purchase fresh
  meat/fish
  
• However when using the microwave, freshness is
  not a key driver in purchase decision
  

29
Conclusions

• Consumers regularly rely heavily on the microwave
  for cooking
  
• Seek easy meal solutions for entrees and sides in
  the microwave
  
• While originally skeptical about microwaving
  meat, respondents came around after tasting the
  products
  
• Taste and texture both better than expected
  consumers thought products had a place in
  lifestyle/weekly meal planning
  
• For moms, a good solution for moms night out
• For households without kids, a solution for any
  weeknight
  
• Convenience serves as primary selling benefit
  an easy but filling meal option
  
• Also does not require clean up, is healthy and
  has good taste
  
• Provides a new meal solution highlighting NEW
• Different than typical meal ideas especially
  for non-cooks
  
• Easy way to put together an entire meal
  fajitas, serve over pasta or rice, use for BBQ
  sandwiches etc.
  

30
Recommendations

• Drive trial to convert skeptics to adopters
• Need to alleviate fears about microwaving fresh
  proteins tasting primarily overcomes these
  barriers
  
• Provide recipe and/or meal solutions on package
• Show users how to create an easy meal with the
  fish/meat
  
• Fajitas, quesadillas, with pasta, rice, add to
  salad etc.
  
• Determine best sizes/slices for pork and beef
  pieces
  
• Let serving size dictate small pieces versus one
  single piece
  
• Use flavorful but not overpowering sauces
• Pork and beef sometimes too dry while fish too
  strong
  
• Minimize salt consider low sodium options
• Use convenience, freshness and great taste as
  primary benefits for position
  
• Secondary benefits health, mess-free