American Egg Board2010 Shopper Research Study

Overview

• Major marketers are focusing on the “last mile,” attempting to influence the many buying decisions that are made in-store

• Success in this key area is driven by shopper insights that go beyond traditional consumer market research.

• Insights must come from an understanding of attitudes, motivations and actions that are specifically tied to the shopping experience.

Objectives

Overall:

• Increase the overall knowledge of egg shoppers, and how they think and behave

• Identify opportunities to stimulate increased retail egg sales

Objectives

More Specific Objectives:

Provide insights regarding

• The egg purchase process

• Motivations for egg purchases

• Factors promoting/inhibiting purchase of all types of eggs

• Potential impact of in-store factors on egg purchases

Methodology

• Conducted by K.L. Simon & Associates

• Quantitative survey among a nationally representative sample of egg purchasers

• 1400+ completed surveys among light, medium and heavy users of eggs– Light = buy one carton or less a month– Medium = buy 11/2 – 2 cartons a month– Heavy = buy 3 or more cartons a month

The Egg Purchase

Overview:

• Eggs are primarily a planned purchase

• But not typically purchased with a use in mind

• Always on the list and constantly being re-stocked

The Egg Purchase

Influencing factors:

• Price/promotion consistently appear as key influencers on…whether to buy, how much to buy, which type of eggs to buy.

• Store factors also play a key role– Product condition and appearance– Code dates and pricing– Availability of desired variety

The Egg Purchase

Relative importance of factors:• 84% of respondents say “appearance of

eggs inside carton” is a very important influencer

• Code Dates (66%) and Price (67%) are also key contributing factors.

• Health/dietary concerns are very important to 32% of respondents

The Egg Purchase

Spontaneous egg purchases do occur• 72% of those surveyed buy eggs when they

were not on their list – driven primarily by heavy users

• Even 60% of light users made unplanned buys

• Unplanned egg sales are triggered by:– Noticing a sale price– Buying something else that requires eggs– Remembering a need while in-store

Overall Egg Usage

Influencing amount of eggs purchased:

• Amount of eggs purchased varies significantly from trip to trip – particularly among heavy users.

• The opportunity exists to increase average purchase quantity via in-store stimuli and improved egg case conditions

The Egg Purchase

Attitudes/perceptions encouraging egg use • Perceptions of nutritional benefits

– Heavy users much more likely to perceive positive nutritional benefits of eggs

– Perceptions of eggs as good protein source most widespread among heavy users

• Perceptions of price/value– Heavy users more likely to see eggs as a good value and

economical meal

• Openness to eating/serving more eggs– All egg user groups expressed a definite openness to

consuming more eggs

The Egg Purchase

In-Store Factors discouraging purchase• 40% of egg purchasers go to the egg case,

examine the options and walk away!• Why?

– Eggs are broken or in poor condition– Egg prices are too high– Lack of availability of desired variety

The Egg Purchase

Other Factors limiting purchase• Number of occasions they want to eat

eggs (34%)

• Number of egg dishes they know how to make (21%)

• Concerns about cholesterol (23%)

The Egg Purchase

Other Factors limiting purchase• Perceptions of nutritional benefits

– 2/3 of egg shoppers do not hold the belief that eggs contain important nutrients you cannot easily get in other foods

– 1/3 are mixed about the overall health benefits of eggs– 1/4 do not see eggs as one of the best protein sources

• Perceptions of price/value– Almost 40% do not see eggs as a particularly good value

or economical meal

The Egg Purchase

Impact of the egg case• The egg case is perceived as easy to shop• The number of product choices is viewed as

appropriate• However, there are many opportunities to improve:

– 25-30% are confused about the differences in egg types and options

– Poor egg condition dissuades a significant number of purchases

– Light/medium users are less likely to enjoy the egg purchase experience

Overall Egg Usage

Breakfast focus limits purchases:

• Majority of egg users (particularly medium/light) do not use eggs for non-breakfast occasions.

• Another opportunity to increase purchasing by promoting non-breakfast usage via in-store messaging.

Heavy/Medium/Light Users

Usage patterns vary greatly across user groups:

• 46% of heavy users use eggs for lunch vs. 22% for light users.

• Heavy users are also much more likely to use eggs for dinner/snacks…but still far below breakfast usage levels.

• Opportunity to increase non-breakfast usage across all groups and all occasions.

Heavy/Medium/Light Users

Heavy user differences

• Heavy users are much more likely to– Perceive positive nutritional benefits of eggs– See eggs as a good value and an economical

meal– Be motivated by in-store promotions– Find the egg case appealing– Assign greater importance to code dates and

egg appearance in the carton

Egg Types

Perception & Knowledge

• Significant differences in familiarity and knowledge of egg types across user groups

• Heavy users have the greatest overall knowledge of all egg types.

• But, familiarity with Organic (34%), Cage-Free(30%) and Nutrient-Enhanced(16%) eggs is quite limited among all groups.

Egg Types

Perception & Knowledge

• The majority of egg shoppers do not understand the differences that would lead them to buy one kind of egg over another

• Overall favorability ratings of alternative egg types are lower than for regular white eggs

• Very few see Organic, Cage Free and Nutrient-Enhanced as a good value for the money.

Opportunity Summary

The Egg Case

• What if even 10% of those walking away from the case had made a purchase???

• Capitalizing on this opportunity requires:– Better in-carton egg quality– Full availability of egg options

Opportunity Summary

In-store messaging• Attitudes impeding egg purchase can be impacted

via succinct messaging in the “last mile”• Messaging opportunities on the carton and in the

aisle/section include:– Non-breakfast serving suggestions– Recipes for all day-parts– Information on all health/nutritional benefits of eggs– New data to alleviate cholesterol concerns– Education information on various egg types.– Information on the positive value story for eggs

Opportunity Summary

In-store promotion• Every day price and regular features are still the

number one motivator across all user groups• A variety of promotional tactics should be explored

to try and drive increased purchases– Tie-in promotions with complimentary items– Inclusion in retailer circular (with or without price

discount) on a regular basis– Coupons delivered via carton, online or FSI

Opportunity Summary

Improving the overall experience can drive increased usage across all user groups

• Maintain a neat, well organized case• Assure well stocked sections with eggs that are in good

condition• Provide information on new ways to enjoy eggs• Reinforce the many positive health/nutritional aspects of

eggs• Inform shoppers on the various egg types• Present relevant promotions that support the value,

flexibility, and nutritional story that is unique to eggs.