Asda Beef

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AsdaBeef lamb customer insight
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• 5,000 colleagues (3rd largest NI employer)
• Market Share c.17
• 19mn UK customers

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Asda MissionTo be Britains most trusted
retailerAsda PurposeSave money. Live
better.EDLC EDLP
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CUSTOMER PLEDGES
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Perfect retail storm
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Competition market is polarising
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Convenience Price deflation
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Asda Income Tracker
180
88
Source Asda Income Tracker /CEBR
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Asda Income Tracker Dashboard January
Annual percentage change
Indicator
Recent trend
1.7
Regular earnings growth
2.0
Employment growth
Food non-alcoholic drinks
-2.5
Vehicle fuels
-16.2
Home electricity, gas fuel
-2.0
-0.1
Essential item inflation
9.3
Family spending power
10
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Asda Our response
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OUR CUSTOMER PROPOSITION - DELIVER VALUE
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INVESTING IN MARKET LEADING VALUE
Simple, compelling, disruptive
1bn
250m
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...AND THROUGH THE PRICING PYRAMID
Overall Direction of Travel
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AsdaBeef lamb Results?
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• Asda are growing ahead of the Market in Total Red
  Meat by 9.3pts (Asda 6.7, Market -2.6

RED MEAT SHARE
Source AC Nielsen Value growth
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INVESTING IN FRESH BEEF QUALITY

• MATURATION
• 15 days increased to 21 and 28 day maturation to
  deliver flavour

• SPECIFICATION
• Easy carve joints
• Steaks specifications delivering industry leading
  consistency

• PACKAGING
• 1st to market skin packaging in core range

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Innovation in packaging and price

• SKIN PACKAGING
• Product continues to mature in pack
• Flavour and tenderness benefits
• Reduced packaging better for environment
• 1st to market on core product for Asda

• 2 FOR 7 FIXED WEIGHT PROMOTION
• Driving volume sales of steaks
• Market leading sales growth

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INVESTING IN BEEF ROASTING JOINTS

• EASY CARVE SPECIFICATION
• We removed all soft core muscles
• Removing waste from our customers plate
• Consistency for carving

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INNOVATION IN BEEF ROASTING JOINTS

• OVENABLE BEEF JOINTS
• Shoppers nervous about cooking Beef Joints
• New innovation (first to market) with ABP where
  joint in packaging goes straight into the oven
• Consistent, easy, no washing up
• Lower cooking time than standard roasting
• Helping our customers

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INNOVATION AND CONVENIENCE IS DRIVING OUR GROWTH
Skin Pack
Ovenable
Lamb 2 for 7
Continues to mature in packaging Delivers 2
weeks Shelf life (2 weekends to sell)
Replicating success seen in Beef Steaks
offer Sales growth and reduced waste with new
skin packaging
Continues to mature in packaging Improved
shelf life and convenience for Asda Mums

• Westwood strongest growth in lamb sales YoY up
  16.8
• Portadown most growth in red meat up 18.2 driven
  by beef up 23.8

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• Asda are growing ahead of the Market in Lamb by
  9.9pts (Asda 2.9, Market -7.0).

FRESH LAMB SHARE
Source AC Nielsen Value growth
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Asda Closer look at customer insight
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Our pledges are important to us, tracked
quarterly shoppers perceptions are improving in
Meat
Source Category Perception Tracker Results for
Asda Top 3 Box Shoppers rating us 8,9 or 10 out
of 10
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Fresh meat is often the hero of the meal it
needs to meet strict personal quality standards
Its probably one of the most expensive bits of
my shopping, but you dont want to scrimp with
meat
You have to watch what youre buying with meat
sometimes it could have all sorts in it
I always get the one from the back, never the
front
I just cant stand it when its got veins in it
it makes me feel sick
Source Nat rep survey. Q20. Thinking about when
you usually buy fresh meat, which of the
following actors are important to you when
deciding what to buy? Q50. To what extent do you
agree or disagree with the following statements
about fresh meat? Base Total sample (1,500)
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Shoppers believe fresh meat quality varies
between retailers trust in quality is critical
for repeat purchase
Promiscuous shopping habits means holding onto
shoppers is increasingly important If shoppers
have a bad personal experience with meat from a
particular retailer it can take a long time to
regain that trust
Horsegate has heightened awareness of quality
processes surrounding fresh meat
You have to watch what youre buying with meat
sometimes it could have all sorts in it
Source Nat rep survey. Q12. You said you buy
fresh meat from ltltinsert retailergtgt. Why do you
buy fresh meat from here? Base All who buy fresh
meat from each retailer (base sizes vary). Nat
rep survey. Q18. To what extent do you agree or
disagree with the following statements about
shopping for fresh meat? Base All respondents
(1,500).
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Driving trust in Asdas fresh meat quality
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Driving quality in fresh meat involves shouting
about all the quality procedures Asda has in place
Store
You want the store to look nice it shows that
they are taking care of their meat
Aldi is always talking about how good the
quality of their products are on their adverts so
I thought I would give them a go
Quality perception
Product / Price
Brand / Communications
Sometimes you need to try something to really
know if its good quality if I try something
and its not, I wouldn't buy it again
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Out of store, shoppers need to believe in the
brand quality quality cues in communications
Asdas brand isnt instantly associated with
quality prices and promotions are usually cited
as the main reason for shopping at Asda (for all
categories)

• Prices are important, but combine these messages
  with quality cues in communications.
• Local
• Quality processes
• Butchers Selection

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If the aisle doesnt deliver, shoppers will lose
trust
Determining quality in run

• Neat and tidy displays
• Reassurance on quality through POS
• Easily finding what you need
• Well stocked

Tilted shelves products hard to see
Out of stock
Source Nat rep survey. Q20. Thinking about when
you usually buy fresh meat, which of the
following actors are important to you when
deciding what to buy? Q50. To what extent do you
agree or disagree with the following statements
about fresh meat? Base Total sample (1,500)
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New POS works well to convey quality throughout
the aisle making it feel neater and clearly
sectioned
Positive reaction to new POS
For some, prices and offers were felt to stand
out more down the aisle than before
The color black feels more premium and
sophisticated
It looks good, feels a bit more sophisticated!
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Shout about awards shoppers like to hear about
them
Thas really good to know but I had no idea.
They should definitely tell people about it more
why wouldnt you tell people about something
like that?
Source Nat rep survey. Q12. You said you buy
fresh meat from ltltinsert retailergtgt. Why do you
buy fresh meat from here? Base All who buy fresh
meat from each retailer (base sizes vary).
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At fixture, products are thoroughly inspected
any discolouration or short dates are avoided
Determining quality of product
Poor quality products noted everywhere

• Colour / appearance of meat
• Short dates
• Provenance
• Cut / type
• Display

Amount of fat
Browning meat
Discoloured
You want it to be red sometimes theyre a bit
brown, and you know its on the turn
Source Nat rep survey. Q20. Thinking about when
you usually buy fresh meat, which of the
following actors are important to you when
deciding what to buy? Q50. To what extent do you
agree or disagree with the following statements
about fresh meat? Base Total sample (1,500)
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Vac packed packaging is really appealing allows
customers to see enough of the product
Packaging appeal Top 2
60
58
48
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• Can see lots of the product
• Looks fresh
• Looks good quality

• Can see lots of the product
• Looks fresh
• Looks good quality

• Can see lots of the product
• Looks fresh
• Looks good quality

• Looks fresh
• Looks good quality

• Cant see enough of the meat

Save customer time and removes the hassle/worry
of cooking
Drives quality perceptions allows for close
inspection of meat and shows freshness
Source Nat rep survey Q23. Looking at the
different types of fresh meat packaging shown
below, please state how appealing or unappealing
you find each one. (Base1500)
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For shoppers who dont like to handle fresh meat,
poor packaging can be the start of a bad meat
experience
Unappealing and hard to identify
I mean it just looks awful what do you do with
it? What is it?
Source Nat rep survey. Q12. You said you buy
fresh meat from ltltinsert retailergtgt. Why do you
buy fresh meat from here? Base All who buy fresh
meat from each retailer (base sizes vary).
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Driving trust in Asdas fresh meat prices
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Shoppers arent looking for cheap meat they
want to feel like theyre getting a great deal on
great quality
VFM is...
Help shoppers work out VFM on pack by
highlighting....
Getting meat from a retailer I perceive to be
great quality Getting the most for my
money Getting a great deal on something I know
should be more expensive Getting added value
e.g. Award winning, convenience etc
Prices
Promotions
Dates
Watch out on pack information used is
functional prices, dates and portion
sizes. Quality and brand cues often missed
communicate these using POS, packaging colour and
format
Source Nat rep survey. Q20. Thinking about when
you usually buy fresh meat, which of the
following actors are important to you when
deciding what to buy? Q50. To what extent do you
agree or disagree with the following statements
about fresh meat? Base Total sample (1,500)
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Driving trust in Asdas fresh meat range
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Younger shoppers buy a wider variety of meats,
and consume fresh meat more often than older
shoppers
18-34 (32 regularly buy their fresh meat from
Asda)
55 (24 regularly buy their fresh meat from
Asda)
Eat fresh meat more regularly than older shoppers
and have a wider repertoire of proteins
Take more factors into account when buying fresh
meat
Significantly more likely to purchase
Significantly more likely to purchase
Pork
Turkey
Duck
Breaded
Added value
Significantly more likely to buy meat from
Significantly more likely to buy meat from
Butcher
Significantly more likely to use smaller formats
to buy fresh meat from
Asda fresh meat shoppers significantly more
likely than younger age groups to cite quality as
a reason to buy fresh meat from Asda
Source Nat rep survey. Q6b. When you are usually
buying the following types of meat, how much do
you tend to buy in one go? Base Total sample
(1,500). Q19. Which of the following best
describes what youre thinking about before you
go shopping to buy fresh meat? Base Those who
buy fresh meat from Asda (459)
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Shoppers are wary of buying fresh meat online
because they cant make their own personal
product selections
2 in 5 Asda online shoppers dont buy their fresh
meat online in line with the market

• I like to see and pick it up myself 37
• I dont think the staff would pick the same
  quality I would - 32
• I dont trust the dates will be long enough 20

Why not?
The guy who is picking my meat isnt going to
rifle through and pick the best one like I would
Q11. You said you shop online for your groceries
but not your fresh meat. Why do you not buy fresh
meat online? (Base157) Q2C. When buying fresh
meat products online, what helps you determine
whether the meat is good quality? (Base704)
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Providing clearer information on where the meat
has been sourced may help aid quality perceptions
online
To help determine the quality of a product,
online shoppers currently use The cut 43
Provenance 42 Type of meat 34
The information is currently too small and often
not read by shoppers make this more prominent .
32 of Asda.com fresh meat shoppers disagree
that its easy to judge the quality of the meat
online
That information is just too small and not
something I would spend my time reading
Source Nat rep survey Q11. You said you shop
online for your groceries but not your fresh
meat. Why do you not buy fresh meat online?
(Base157) Source Survey with Asda.com meat
shoppers Q2C. When buying fresh meat products
online, what helps you determine whether the meat
is good quality? (Base704) Q4A. Which of the
following is important to see on Asda.com with
fresh meat products? (Base704)
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Butchers are one of the most trusted sources of
information on how to eat healthy with fresh meat
38 of shoppers would trust a butcher to tell
them information about how to eat healthily with
fresh meat
1/4 of shoppers would trust a supermarket
Source Nat rep survey Q47. Which organisations
would you trust to tell you information about how
to eat healthily with fresh meat? (Base 1500)
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AsdaBeef lamb Thank you