RETAILERS PUT MORE MUSCLE INTO MEAT SECTIONS

ROBERT VOSBURGH

KANSAS CITY, Mo. -- Retailers are placing renewed emphasis on traditional merchandising strategies, as well as adopting more unique programs, to reinvigorate sales in their meat departments, a panel of operators revealed during the annual Meat Marketing Conference, here. But even though there are a variety of blueprints to choose from, each is still based on fundamental selling techniques that appeal in some way to a customer's buying impulse.

Copps Corp., Stevens Point, Wis., has enjoyed "phenomenal" returns on its Certified Oven-Ready Meats program, introduced two years ago after executives culled category-management data to renovate the meat department. Using premium-quality raw materials, the 41-item line includes beef, poultry, seafood and pork from nationally know processors for such entrees as boneless chicken cordon bleu, pork chops with stuffing and stuffed pepper loaf, among others.

"It was apparent to us there was a tremendous area of opportunity in value-added products," said Jeff Farnsworth, meat director for the chain. "Most of our stores, for quite some time, had been doing something, but there was no formal plan or presentation to bring all of these items together and to bring the idea of convenience to the customer."

Initially, Copps sought out some sort of turnkey program that it could plug into stores, but found that such an approach wouldn't work due to differences in flavor profiles, item selection or packaging. The final version of the program was developed in-house, Farnsworth said.

"First, we selected key items we felt would be preferred by our customers," he said. "Cuts that went into the program were generally upscale in nature. I don't mean off-the-board -- baby-back ribs instead of spare ribs, that kind of thing."

The retailer carefully researched ancillary requirements as well: flavor profiles that were acceptable to the region's meat-and-potatoes Midwestern customer base; a list of core and flexible recipes within the line; packaging that would eliminate cleanup; cooking directions on each container; and adequate employee-training programs.

"The name, Copps Certified Oven-Ready Meats, was chosen because we had certified the product, the process and the people. We actually tested [associates] before they were allowed to make it."

Next, Farnsworth said, there was the question of product placement in the store and merchandising support. The meats are sold adjacent to the ground-beef display in Copps stores' meat departments, since ground beef is one of the biggest draws in the self-service area. The line was previewed through bag stuffers and advertising on radio and television. During the debut, and still today, Copps executes an extensive sampling program. Here, it saves money and reduces shrink by demoing product that is still high quality, but nearing the end of its shelf life. "This helps relieve the markdown," he added.

"Since introduction, this has become the fastest-growing area that we have in our meat departments. Our returns are great," said Farnsworth, noting that sales of all value-added proteins, including the store-brand certified program, are close to 10% of department sales.

To further improve on the number, Copps is rolling out a new Certified Grill-Ready Meats line of nine specific stockkeeping units designed for outdoor cooking.

One of the biggest challenges with this kind of store program is employee training, Farnsworth said. But proper training for all levels of management and associates who prepare and handle the product was critical if the line was to succeed.

"Since each item is manufactured in-store, consistency was a problem," he said. "But we've used a developmental center process that brings meat managers and store managers in [for] a full day of training, with preparation, merchandising and all that. Then, they go back and certify every employee," using check-off lists, and coaches, if necessary.

Value-added, ready-to-cook meats are also a high point at Balls Food Stores, a 29-unit independent in Kansas City, Kan., that also owns the upscale,15-store Hen House Market chain. Earl Floyd, meat-department in-store chef for Hen House, said that division's popular year-old Center of Plate line of ready-to-cook meats has quickly grown to occupy 8 to 12 feet of the service meat case.

"This is something with a very limited shelf life, and we keep track of this so everything is fresh everyday," he said, noting that investing in such a program requires careful checks of quality, rotation, taste and appearance.

"Everything is consistent within our stores. If you buy a product in one store, and then go to another store, you're going to get that same product," Floyd said. "This is something we toiled with before all our stores gained the same consistency."

The expanding line is comprised of items not typically found in more traditional meat cases. It includes Spadini, a skewer of protein coated with garlic-herb seasoning, a slight lemon taste, bread crumbs and hazel nuts. There are also Wranglers, a single-portion steak or chicken breast that is marinated, coated and wrapped in bacon; kabobs, a "year-round best-seller" that usually comprises about 12 feet of the service meat case; and stirfry, or "skillet-pan," mixes of pork, chicken or beef.

At Clemens Markets, Kulpsville, Pa., the problem wasn't adding value to meats, but trying to find a way to boost the profile of the chain's entire meat department, after it was rated No. 2 in a survey of 1,000 local residents, according to Al Kober, meat merchandising manager.

"We have a middle-income/upper-income group of people we market to, under the three legs of quality, value and service," he said. But the poll woke the retailer up to the fact that something was missing from the equation.

Clemens always offered upscale beef, under the label "Clemens Certified Angus Beef." However, through the chain's own focus groups, the retailer discovered that consumers didn't necessarily know what certified Angus beef was, or why it was better than other beef. Kober said the chain looked at how CAB was being marketed in other segments, and decided to tear a page from the restaurant industry's playbook. Except, here it was sold as "Restaurant Quality at Supermarket Prices."

"We market on perceived intrinsic value, and not on price," said Kober. "Through marketing you can get the value higher -- forget the cost."

Clemens' marketing strategy used restaurants that had established an outstanding reputation in its area for certified Angus beef. Kober chose businesses that were members of the industry's Certified Angus Beef Program (and therefore partners), and also chose images and text that were already part of the published record, to avoid infringing on trademarks and other proprietary components.

"I put their name in the circular, I put in pictures and recipes from the chefs," Kober recalled. "The purpose was to let customers know that certified Angus beef was bigger than just Clemens Markets. Customers didn't realize it."

In one memorable ad, the text described how British Airways served certified Angus beef to first-class passengers. Clemens' retail twist on the service? "First-class quality at coach prices."

The ad campaign ran for three months before Clemens executives sat down to asses the effect. According to Kober, they found significant sales growth, and Clemens' reputation for fine beef began to experience a renaissance.

"The next survey in our local newspaper asked [among other questions], where's the best place to buy beef? Guess what happened?," he asked. "We moved up to No. 1."

Like the Wooster, Ohio-based Certified Angus Beef Program, a number of industry trade associations have developed schemes to boost sales for their particular category. Associated Food Stores, Salt Lake City, which supplies 600 independent stores, adopted and brought to its trade customers the Beef Made Easy program from the National Cattlemen's Beef Association, Chicago, as well as aspects of the Integrated Meat Case program from the National Pork Producers Council, Des Moines, Iowa.

Jerry Smith, the wholesaler's meat manager, said that for the program to work, Associated had to assist retailers in updating the capacity of older-model cases, many of which were nearly 20 years old.

"Everybody's seen a two-shelf, multideck meat case with that humongous mirror on the top. As we tried to work Beef Made Easy into them, we found that it didn't fit very well," he said.

The first components to go were the giant mirrors; in most stores, some 60% of the reflective border was removed. The change permitted installation of a whole extra shelf with little or no effect on air flow. And, it was enough room to accommodate the new planograms.

"We've put about 100 stores of these together so far," said Smith, each involving cases ranging from 24 to 36 feet in length. "We've put over a half-mile of additional meat shelving in our existing meat fixtures year-to-date. It's made a dramatic difference."

Using the Beef Made Easy and Integrated Meat Case programs has created destination points for consumers, using the latest thinking in strategic merchandising, he added.

"[Product] is now in a vertical set, rather than a horizontal set. It's more like the way they shop for anything in the rest of the grocery store, like canned soup," Smith said.

The schematics include signage, case strips, on-pack labels and related merchandising information that re-set cases in more consumer-friendly formats.

"By doing those two categories, it's broken some apart, such as sausage," said Smith. "Now, it has its own vertical set, and is its own destination point. We've done the same thing with the 'quick-to-fix' section, which generally was an accordion of sorts in the old two-deck cases and is now a category of its own."

For poultry, Associated partnered with a specific processor with the same goal. The conversion here has increased the category from 11 to 12 items to nearly 40 today, a number that includes poultry-based prepared products. This was done because "people usually expect to find everything involving chicken to be in one spot," said Smith.

Though there are aspects of three programs involved, Smith said, the alterations have streamlined management of the department and have not presented any confusion to store-level associates, nor to customers.

"Once we set the case, we can leave [department managers] with a schematic on paper of the way it's set, so it doesn't flow back and forth," he said.

Spartan Stores, Grand Rapids, Mich., took a slightly different approach with its member independents and corporate-owned units. David Kent, division manager for meat/seafood, said that the wholesaler/retailer chose to seek out specific suppliers, like ConAgra's Monfort Beef Co., that would allow customization of product and merchandising for the purposes of individual store-group branding.

"The whole business we're in today is marketing, rather than price," he said.

For example, Spartan has introduced "Harding's Monfort Angus Beef" program at Harding's Markets, a 35-store independent operating in the Kalamazoo, Mich., market.

"[Harding's] is a traditional retailer, and this has really helped build their image up in that marketplace," said Kent.

While not certified Angus beef, the line still commands a higher price point, he noted, and serves as a point of differentiation that is touted in circulars on a regular basis. It is made available to any store group that commits to the selling program's standards. Other trade customers of Spartan's who have adopted the program include L&L Food Centers; and Family Fare, a 47-unit, corporately owned chain headquartered in Hudsonville, Mich. Here, the stores offer the line under a patented name, Premium Angus, also from Monfort.

"The idea is to convince the consumer of quality," said Kent. "Let them know it's quality product, and nine times out of 10 they're willing to pay for it."

Spartan developed the whole-muscle program after its five-year-old Certified Ground Beef program, a signature initiative that includes sirloin, round, chuck, ground beef, hamburger. That line is growing close to 10% annually, said Kent.

Bob Stevens, meat department buyer for Strack & Van Til Supermarkets, an 11-unit retailer in Highland, Ill., said his stores have found their own niche by finding value in the once-underrated tri-tips.

"Tri-tips are a hidden treasure," he said, noting that "certified Angus beef is not a very good lead in the blue-collar area where we are."

Stevens described the tri-tip as a bottom sirloin, and one of three points found in beef: sirloin tip, or knuckle; ball tip; and the "foul tip," the meat veteran's moniker for the tri-tip.

"We called it the foul tip because we fouled this piece of meat up when we used to break beef hanging on the line," he said. Part of it would end up as a tail on the sirloin, while the other went with the cap of the sirloin tip. In that condition, he noted that the tri-tip became either a piece of the steak or trimmed off for cube steak.

"We peel them before we slice them," he said, noting that today, "you can buy peeled tri-tips, but it's a specialty item and costs more, usually 81 cents to 91 cents a pound higher than the regular trimmed tri-tip."

Doing some labor in-store, such as peeling a test box, yielded 76% saleable product.

The retailer knew it had a valuable piece of meat on its hands, yet there was debate over how to merchandise the item. Stevens said, though it was a bottom sirloin cut, that technical name didn't sound very appealing.

"I don't like the word 'bottom' when you're putting a name on a piece of steak," he recalled. "So, we call it a tri-tip sizzle steak. Talk about selling the sizzle. That made all the difference in the world."

Strack & Van Til started putting the tips in circulars "back when they cost a buck-and-a-half. And we'd put $2.99 a pound on them and make 25%," he said.

However, as more retailers discovered the tri-tip -- and adopted the catchy name -- the price was forced up another 60 cents to 70 cents a pound, according to Stevens. Now, the steaks sell for $3.99 a pound, and are almost a loss leader, he added.

Nevertheless, the tri-tip sizzle steak is still a customer favorite, and Strack & Van Till can sell some 40, 70-pound cases during certain times of the year.

In the back room, Stevens said, cutting and trimming are important, and it is necessary to cut across the grain. Since their appeal is diminished if they're marinated, Stevens suggested tumbling. Strack & Van Til customers favor a butter garlic flavor.

Any end pieces are saved for packages of kabob meat, and the retailer will sometimes include skewers and cut vegetables in an overwrapped tray.

Also, retailers shouldn't be concerned with the variable sizes, especially if the steaks are marketed toward families with a range of child and adult appetites, Stevens noted.