AUTHORIZATION REQUEST FOR FY 2016
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1 AUTHORIZATION REQUEST FOR FY 2016 CBB Budget Category: Promotions Name of Contractor: North American Meat Institute Name of Organizations Subcontracting: End Date: September 30, 2016 I. OVERVIEW A. AR Description: Marketing veal to today s consumers utilizing an integrated marketing strategy with a heavy emphasis on digital and millennials will be the core focus for the Authorization Request in Fiscal Year This plan will be in line with the Beef Industry Long Range Plan, including the demand drivers of taste, value, convenience, health and nutrition, along with seeking to enhance the industry s transparency and consumer trust. Veal is a unique protein and requires a unique and individualized approach to maintaining and sustaining the veal industry. Recent Millennial research shows the main barrier for veal is a lack of awareness and understanding of how to prepare veal, along with not finding it on menus or at their supermarket. Keeping veal top of mind for millennial consumers and channel decision makers is the key to success. Consumers and channel decision makers see veal as a completely separate protein, similar to how they individually view beef, pork, poultry and lamb. Culinary Educators also view veal very differently than other proteins, and are very open to educating their students on the benefits and versatility of cooking with veal. The FY15 program had tremendous success with key accomplishments including; Millennial research, channel marketing promotions, the launch of a new website focused towards culinary professionals, educators and key opinion leaders. Other successes were found in the digital space. Based upon accomplishments to date, all measurable objectives and key deliverables will be met or exceeded. We will continue to leverage the learning from the previous year, and build upon our success. NAMI 1602-P Page 1
2 B. Costs for this AR: Source of Funding Direct Costs Implementation Beef Board/BPOC $ 500,000 $ 400,000 $ 100,000 Federation of SBCs (FSBCs) $ $ $ Other Potential Sources (describe) $ $ $ Cost $ 500,000 $ 400,000 $ 100,000 C. Start date: October 1, 2015 II. PLANNING INFORMATION FOR THIS AR A. Long Range Plan Core Strategies/Demand Drivers Addressed by This AR: Improve Domestic Preference for Beef Demand Drivers including value, taste, convenience, health and nutrition B. Committee(s) recommendations for work plan funded by this AR: The Convenience, Taste and Value Subcommittees reviewed this AR and scored it 4.5, 4.0, and 4.0 respectively with a recommendation for full funding. C. Performance Efficiency Metric Goal: The Performance Evaluation Metric will be used to help determine key measurable objectives in this AR. It should be noted that approximately 10% of the proposed funding (i.e., $50,000) will be used to develop videos, visual images and recipes. The expected useful life of these materials is 5-7 years, thus extending the value of the AR. D. Digital properties and target audience(s) addressed by this AR: Social: Facebook, Twitter, YouTube, Pinterest Audience: Older Millennial parents Websites: Veal Made Easy, Veal Foodservice Audience: Older Millennial Parents, KOLs and Industry leadership E-newsletter: Veal Made Easy, Consumer and Industry Audience: Consumers 18+ years of age, KOLs, and Industry leadership III. PROGRAM INFORMATION FOR THIS AR A. Long Range Plan Core Strategy 1: Improve Domestic Preference for Beef NAMI 1602-P Page 2
3 Strategy 1 Proposed Cost * : $500,000 Specific Tactic Information: Integrated Consumer and Channel Marketing Tactic 1A: Safety Nutrition Convenience Taste Value Image Freedom Reaching and engaging the millennial audience requires a fluid and flexible approach, focusing on trends in the food industry along with meeting the needs of an ever changing consumer marketplace. Our plan for veal includes connecting with key opinion leaders and influencers, maximizing our reach and creating compelling content that will be relevant and engaging. Our Millennial research* indicates that veal would be a consideration for mealtime decision makers; however, a general lack of awareness is the main barrier of entry. This can be overcome through channel marketing efforts to obtain better placement in the meat case along with more menu inclusion and promotions. The Millennial research* also indicated a desire to try new and innovative recipes, and new foods in general, which will serve the veal industry very well. Consumer Influencers will include food bloggers, registered dieticians, and channel partners with consumer outreach programs. Channel Influencers will include retail category managers/buyers, foodservice operators, packer/processors and culinary instructors. Building on FY15, we will continue to create content for veal including recipes, photography, nutritional marketing messages, home and foodservice cooking videos, social media calendar posts and promotions that can be shared and utilized by State Beef Councils, Channel Marketers, and the Veal industry partners. *The Beef Checkoff funded Millennial Market Research referenced was gathered in FY15 through a mixed methodology of traditional focus groups, on-line and phone surveys. Measurable objectives: Reaching key influencers and opinion leaders o Attend two industry events to reach key influencers: (example: American Culinary Federation Conference and Annual Meat Conference) Obtain Key Influencers/Opinion Leaders attitudes and nutritional knowledge toward veal with an onsite questionnaire. The goal is to obtain the current perceptions of 25 attendees. * Proposed Cost includes Beef Board/BPOC plus Federation and Other Sources. NAMI 1602-P Page 3
4 o Attend two consumer food focused events example: Pennsylvania Farm Show and Greenwich Wine & Food Festival) reaching consumers and key opinion leaders: Obtain consumer attitudes and nutritional knowledge toward veal with an onsite questionnaire. The goal is to obtain the current perceptions of 25 attendees. o Engage with two (2) key food bloggers creating new recipes and building relationships with key opinion leaders and influencers to amplify veal s reach and promote veal to their audience. o Partner with the New York Beef Industry Council in conducting their veal tour for culinary students and their instructors. Connecting with consumers in the marketplace o Execute two (2) seasonal/themed retail promotions: Each promotion will be supported with digital media to achieve 2 million media impressions with Millennials as the target audience. o Execute two (2) social media promotions targeted toward millennials. o Partner with one (1) consumer brand/product for a channel and digital marketing promotion to extend veal s reach and efficiency (Example: Mushroom Council) o Ongoing updates to Veal Foodservice and Veal Made Easy websites along with all social media properties refreshed daily or monthly to communicate timely and desirable information o Distribute monthly e-newsletters to consumers achieving an average open rate of 20% Creating and delivering compelling content o Development of six (6) new recipes with a focus on trends discovered in research featuring impactful photography along with six (6) new cooking videos that will be utilized on YouTube, websites, and featured at consumer, industry and culinary events o Create a quarterly social media calendar to amplify veal s reach amongst the target audiences Communicating to the veal Industry leadership o Conduct one veal summit meeting with industry leadership. This will be our third annual meeting that continues to grow in attendance with a diversified group representing producers, packers/processors, distributors, retailers, foodservice operators, nutritionist and other interested parties. o Distribute monthly e-newsletters to industry influencers and opinion leaders achieving an average open rate of 20%. o Provide wholesale veal market information and data. NAMI 1602-P Page 4
5 IV. DETAILED BUDGET SUMMARY Beef Board/BPOC Funding Request: Strategy & Tactic Program Manager Completion Date Direct Implementation Strategy 1: Improve Domestic Preference for Beef Bill Sessions 9/30/16 Tactic 1A: Integrated Consumer and Channel Bill Sessions 9/30/16 $400,000 $100,000 $500,000 Marketing AR s $400,000 $100,000 $500,000 Other Potential Funding Source(s): (Informational only) Strategy & Tactic Funding Source Completion Date Direct Implementation Strategy 1: Improve Domestic Preference for Beef $ $ $ Tactic 1A: Integrated Consumer and Channel $ $ $ Marketing AR s $ $ $ Cost Summary for All Funding Sources: (Informational only) Strategy & Tactic Funding Source(s) Completion Date Direct Implementation Strategy 1: Improve Domestic Preference for Beef All 9/30/16 Tactic 1A: Integrated Consumer and Channel All 9/30/16 $400,000 $100,000 $500,000 Marketing AR s All 9/30/16 $400,000 $100,000 $500,000 V. SUPPLEMENTAL INFORMATION A. Will all of the work detailed in this AR be completed by the end of the fiscal year? If not, please provide an explanation. Yes B. Changes from FY 2015 Approved AR: Enhanced focus on engaging Key Opinion Leaders with veal messaging. Enhanced focus on engaging channel marketers with veal messaging. Expanded partnerships with existing consumer brands and products. C. Subcontractor information: Name of proposed subcontractor: Streetmarc Advertising & Marketing LLC. Will all work with subcontractors be competitively bid? No. If not, why not? The subcontractor has assisted with veal programs in previous years and their expertise and experience will help deliver impactful initiatives. NAMI 1602-P Page 5
6 D. Identify any relationships between this AR and projects previously funded by the Operating Committee: This AR builds upon the strength and accomplishments of previously Beef Checkoff funded veal programs and the current Beef Industry Long Range Plan. E. Summary of Prior Year AR Budgets and Expenses: Strategy & Tactic Strategy 1: Improve Domestic Consumer Preference for Beef CBB/BPOC FSBCs Other Source(s) FY 2015 Approved Budgets Direct Cost Impl. (reference AR if costs not included in this AR) s - Strategy 1 $550,000 $550,000 $440,000 $110,000 $550,000 AR s $550,000 $550,000 $440,000 $110,000 $550,000 Strategy & Tactic CBB/BPOC FSBCs FY 2015 Actual Expenses (through May 30, 2015) Other Source(s) Direct Cost Impl. (reference AR if costs not included in this AR) Strategy 1: Improve Domestic Consumer Preference for Beef s - Strategy 1 $367,428 $367,428 $339,051 $28,376 $367,428 AR s $367,428 $367,428 $339,051 $28,376 $367,428 F. Historical Summary of Budgets and Expenses: (includes all funding sources listed in original AR) Strategy & Tactic Strategy 1: : Improve Domestic Consumer Preference for Beef Strategy 4: (include name) Approved Budgets Actual Expenses FY 2014 FY 2013 FY 2012 FY 2014 FY 2013 FY 2012 $631,250 n/a n/a $460,617 AR s $631,250 $460,617 NAMI 1602-P Page 6
7 AR# 1602-P POTENTIAL PARTNERSHIP LIST FY 2016 AR Number: 1602 Please list all potential partners/collaborators* for the related AR and details including the nature and extent of collaboration: (include any partnership and/or collaborations with a third party by identifying the third party, the nature of the collaboration and extent of the collaboration.) 1. Mushroom Council partner for a channel and digital marketing promotion to extend veal s reach and efficiency 2. Retail Chains (to be determined) partner for veal retail promotions (retailers agree to put recipe labels on packages of veal) 3. Food Bloggers partner with veal to help amplify veal s reach promote veal to their audience *Partners/collaborators does NOT include subcontractors listed in AR section V.C. Subcontractor Info. Required per USDA Letter dated June 19, 2013 NAMI 1602-P Page 7
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