Grocery Stores?
What’s the
Difference
Wal-Mart
Kroger
Retail Meat Marketing
• Is there a system to
the madness?
• How is the grocery
store set up?
• In the past
– Stores were set up to
attract a certain
clientele
– No attention to flow
or customer traffic
Retail Meat Marketing
• Now
– More focus on
consumer traffic
patterns
– More focus on
perishable
departments
• Food Court set ups
– Are you price driven
or quality driven
– Specialty Stores
• Whole Foods
• Mexican Grocery
Stores
Frozen Foods
Chips / Snacks
Bread / Soda
Meat Department / Lunchmeat / Frozen Meat
Deli / Bakery
Dairy Products
Milk
Produce
Check-out Stands
Controlling Customer Traffic
Entrance
Chips / Snack
Bakery
Meat Department
Deli
Produce
Food Court Set up
Entrance
Dairy / Cheese
Soda
Milk / Frozen Foods / Dairy Products
Grocery Store Secrets
• Fresh Baked Bread
or Home-cooked
food odors
• Larger shopping
carts
• End caps or wing
displays are not
always on sale
• Mark down the big
items (milk, bread,
eggs, toilet paper)
Grocery Store Secrets
• Shorter isles
• Name brands
toward the bottom
• Pairing foods
(apples w/ caramel;
cheese w/ ground
beef)
• Expensive liquor
cabinet
Classification of Consumers
• Students
– Cheap and easy
• Adults
– 20 to 30 somethings; out of school; more money
want some quality, healthy, environmentally
friendly
– 40 to 50 somethings; established in life, family;
label readers, quality
– Golden years; quality, healthy, portion size
• Women
– Tend to be label readers, functional foods, more
brand conscious
Classification of Consumers
• Men
– Price driven, easy,
can be very brand
loyal
• Locovores
– Locally produced
and grown foods
• Foodies
– High quality, price
not important, rare
foods
Classification of Consumers
• Vegetarians
– Total Vegetarians; no animal foods
– Vegans; no animal foods or animal
derived foods
– Lacto-vegetarians; dairy products
– Lacto-ovo-vegetarians; eggs and dairy
– Pesca-vegetarians; fish
– Pollo-vegetarians; chicken
– Fruitarian; only products where
something did not have to die
The Super Store
• Individual stores
– Bakery, Produce
Stand, & Butcher
• Supermarket
• The Super Store
– One Stop Shopping
– Wal-Mart Supercenter,
Meijer, Super Target,
Big K (K-Mart)
Focus on the Meat Department
• Should have specific
set up
• Ground Beef and
Chicken toward end of
the traffic flow
• Will re-arrange meat
case to focus on
seasonality
– Focus on middle meats
in the summer
– Focus on roasts in the
winter
Evolution of the Meat
Department
• Butcher Shop
• Supermarket
• Personal, one on one
service
• Combination meats and
deli
• Self service case
• Fresh meat
• Carcasses to boxed
meat
• Now totally changed
The New Meat Department
• What’s for dinner
• 4:30 meal problem
– >70% of Americans
do not know what
they are having for
dinner at 4:30 pm
• Products needed to
solve this problem
• Homemakers have
15 minutes to
prepare dinner
Solving the 4:30 Meal Problem
• Convenience
– User friendly
– Heat ‘n Eat
– Ready to Eat
– Pre-flavored
– Pre-marinated
Returning to the Kitchen
• Food Network
• Foodies
– Looking for high
quality beef
– Difficult recipes
• Adding recipes to
the packages
– Recipe Peel Labels
Other Trends/ Niche Markets
•
•
•
•
•
•
•
Organic
Natural
Grass/ Forage Fed
Free Range
Greenhouse Cattle
Predator Friendly
Animal
Compassionate
• Kentucky Proud
• No added nitrites
Organic Meats
• 2010 total sales
increased 1%, organic
7.7%
• $28 Billion in 2010
• Requirements
– Fed 100% Organic feed
and Pasture
– No synthetic pesticides
or fertilizers
– No GMO’s
– No sewage sludge as
fertilizer
– No irradiation of final
product
Natural Meats
• USDA states Natural is “do not contain any
artificial ingredients or are minimally
processed, such as those that are smoked,
roasted, frozen, or ground”
• No antibiotics, or growth promotants are in
the new volunteer definition
Grass/ Forage Fed
• More Popular
• Lower levels of
Saturated fat
• Higher Omega-3
Fatty Acids
• 90% of the animals
energy must come
from forage
No Added Nitrites
• Carcinogen (MIT
Study)
– 40#/ d for 40 years to
develop cancer
• Add sea salt,
vegetable purees
which contain
natural nitrites
Another Trend in Grocery Stores
• Whole Foods
• Farmers Markets
Top Retailers in 2010
1.) Wal-Mart = $307,736,000,000
2.) Kroger = $78,326,000,000
3.) Target = $65,815,000,000
4.) Walgreens = $61,240,000,000
5.) Home Depot = $60,194,000,000
6.) Costco = $58,983,000,000
7.) CVS Caremark = $57,464,000,000
8.) Lowe’s = $48,175,000,000
9.) Best Buy = $37,110,000,000
10.) Sears Holdings = $35,362,000,000
Top Grocery Stores
1.) Kroger
2.) Safeway
3.) Supervalue
4.) Publix
5.) Ahod
6.) Delhaize
7.) H-E-B
8.) Shop Rite
9.) Whole Foods
10.) Aldi
Lab this afternoon; Get out!