MARKETING PLAN - Beef

1 MARKETING PLAN2011 BEEF + LAMB NEW ZEALAND INC 2011 MARKETING plan p. 2 BEEF + LAMB NEW ZEALAND INC 2011 MARKETING plan p. 3 INTRODUCTIONThe New Zealand domestic market is number three for New Zealand beef and sheepmeat. Building and sustaining domestic demand is a core focus for Beef + Lamb New Zealand activities undertaken on behalf of funders (Beef + Lamb New Zealand Ltd; New Zealand processors and New Zealand retailers) are focused primarily on the consumer the primary source of demand. Activities also focus on areas of demand generation (Health and Nutrition; Education; Convenience; Taste; Food Safety and Quality) where it is unfeasible for individual enterprises to always take the initiative either through lack of commercial incentive or insufficient PAST FIVE YEARSD uring the past five years (2005-2010), the value of New Zealand beef and lamb sales increased from $1 billion in 2005 to $ billion in 2010, while volumes industry s strategic intents for beef and lamb have guided Beef + Lamb New Zealand Inc over the past five years, but are drawing to a close.

2 Research is underway to help formulate new strategic intents and to gauge both the efficacy of past programmes and potential issues going forward. The industry is also being engaged. Whilst it is not anticipated strategic direction will change dramatically beyond 2010, stakeholder expectations are likely to reflect the need for Beef + Lamb New Zealand Inc to continue in a leadership role, demonstrating decisive and outcome driven action which benefits all in the has been set aside to allow for deliberate debate and discussion around the needs of the industry during the next five years. This will include reviewing the role and function of Beef + Lamb New Zealand Inc, with input from all in the interim plan , therefore, will not only need to meet the targets outlined in the existing strategic plan but go part way towards achieving goals outlined in the anticipated new ISSUESThe New Zealand beef and lamb industry is experiencing a challenging period.

3 In particular, the issues of supply and profitability are affecting all in the this MARKETING plan will include short term tactics to help reduce the impacts of market volatility, it is anticipated the major challenges and issues will be more fully addressed long term via the development of the Beef + Lamb New Zealand Inc Strategic plan 2010-2015 (to be completed by February 2011). *This MARKETING plan has a degree of flexibility to accommodate any high level shifts which may emanate from the new Strategic plan . * The Strategic plan development was delayed to accommodate new directors who, alongside industry, will help with formulating and agreeing on the industry s strategic intents for beef and lamb MARKETING domestically.

4 BEEF + LAMB NEW ZEALAND INC 2011 MARKETING plan p. 4 BEEF + LAMB NEW ZEALAND INC 2011 MARKETING plan p. 5 The current television commercials, on farm with the Beef + Lamb New Zealand Iron Maidens, will continue to play throughout 2011. The intention remains to produce a new commercial during 2011 a live aid song simulation featuring the Iron Maidens, high profile chefs, Sir Peter Leitch, butchers, farmers, processors all gathered to sing a remake of a Kiwi, iconic song. The objective would be to provide a vehicle for showcasing a united industry appealing to New Zealand consumers sense of national pride and love of iconic products. This, however, would be subject to final costs especially music royalties.

5 RELATIONSHIP MARKETING WITH HEALTH PROFESSIONALS/GATEKEEPERS OF NUTRITION INFORMATIONDESIRED RESULT: Health Professionals recommending beef and lamb as part of a balanced health professionals on the Beef + Lamb New Zealand Inc database by 10% (currently at approximately 1300 nationwide).Beef + Lamb New Zealand Inc s nutrition programme targets consumers and healthcare professionals. Qualified nutritionists provide evidence-based nutrition information in communications to health professionals to reinforce the relevance of beef and lamb s nutrients, for their patients. Core groups the nutrition team engage with include Midwives, the Nutrition Society, Plunket Nurses, Practice Nurses, GPs and the New Zealand Institute of Food Science and Technology through the provision of resources or as speakers or tradestand representatives.

6 Beef + Lamb New Zealand Inc will be involved in the New Zealand Nutrition Foundation s Nutrition Week May 2011. HEALTH , NUTRITION & WELLBEINGESTIMATED SPEND: $1,391,000 STRATEGIC INDUSTRY OUTCOME: To grow consumer demand for New Zealand beef and lamb on the domestic market via increased appreciation of the essential attributes of beef and lamb for health and PROMOTION DESIRED RESULT: To grow domestic lamb sales, over a 12 month period, by a minimum 5% in dollar concept of a lamb promotion has been seen as desirable by some in the industry but given the current issues, in particular the issue of supply, the original plan of a lamb campaign for one month during February and March has been put on , several tactical activities will still be executed throughout the year including: The development of a magazine for distribution through retailers called EAT highlighting ways to cook with both beef and lamb, with seasonal emphasis on lamb products when relevant.

7 A Lamb Lunch for foodwriters at a sheep station in the South Island to coincide with the Glammies. A Spring Lamb promotion in restaurants during November 2010 and again during the Rugby World Cup in 2011. Retail point of sale material urging consumers to Stand By Our Lamb A possible Mother s Day campaignPROMOTING RED MEAT ATTRIBUTES ExISTING AND EMERGINGDESIRED RESULTS: Consumer recognition of lean beef and lamb s importance in a well-balanced diet maintained at 85% or wide range of Beef + Lamb New Zealand Inc s nutrition resources will continue to be updated (at least two new or revised in the next twelve months) to ensure lean beef and lamb are being appropriately promoted as an essential source of protein, minerals, vitamin D, selenium, omega 3s and B vitamins.

8 Concurrently, misleading information about beef and lamb as major contributors to cancer and as a major source of fat, for example, will be negated as part of ongoing public nutrition team will investigate research and an evidence base to support promotion and education around omega 3s and vitamin D. RETAILER USE OF THE HEART FOUNDATION PICK THE TICK PROGRAMMEDESIRED RESULT: 50% (currently at 25% North Island; 48% South Island) of supermarkets using the Heart Foundation Tick on at least some beef and lamb products by September 2011 - calculated via in-store Heart Foundation Tick remains New Zealand s most trusted food signposting guide directing consumers to healthier choices.

9 Beef + Lamb New Zealand Inc will continue to pay the rights for New Zealand meat retailers to use the Tick on selected Quality Mark products, as a means of tangibly demonstrating the industry s commitment to leaner, healthier products. A resource for use at retail, educating consumers about the correlation between lean beef and lamb and the Tick. NUTRITION ISSUES MANAGEMENTDESIRED RESULT: Achieve a minimum of 12 articles/letters (one per month) and successfully mitigate issues as they to develop proactive response news releases, letters and articles which protect beef and lamb s position as an important part of a healthy diet.

10 Maintain a zero tolerance approach to misreported and misleading media imminent launch of the Ministry of Health s adult national nutrition survey results will require monitoring to ensure red meat messaging is accurate and representative of data. INVOLVEMENT IN THE INTERNATIONAL MEAT SECRETARIAT COMMITTEE ON HUMAN NUTRITION AND HEALTHDESIRED RESULT: Continued successful mitigation of issues surrounding health and nutrition on the domestic + Lamb New Zealand Inc s Nutrition Manager is also Chairperson of the International Meat Secretariat Committee on Human Nutrition and Health and will continue to play a pivotal and guiding role in areas of common nutrition interest affecting the meat industry globally.