Wagyu Beef Ideally Suited to Meet Consumers’ Changing Expectations
“Consumers want to be wowed because their expectations are high, and you guys have an amazing quality story that you’re known for.”
But what type of consumer is willing to pay for the quality and remarkable taste that Wagyu beef is known for? Wagyu enthusiasts attending the 2022 Shaping the Future conference of the American Wagyu Association (AWA) got an in-depth look at consumers and what motivates them from Maggie O’Quinn, new business development manager with Midan Marketing.
O’Quinn detailed five different consumer types that the meat-centric marketing firm has identified. The first are protein progressives. “Protein progressives skew younger,” she said, and the category is heavily populated by Gen Zs, those born after 1996.
“They are the most engaged group with red meats. They love protein. They love (Wagyu).” But they are also quick to leave if the marketing efforts miss the mark. “They really are dawn to the sexy, edgy marketing of the Beyonds and Impossibles, which disrupt us all,” she said.
That means beef producers must work hard to keep this group engaged. “They’re very, very adventurous eaters. They love trying new things and they’re willing to shell out more money to pay for a premium product.”
The next group are the family first food lovers. “These individuals are mainly moms. There are kids at home and her M.O. is, ‘I want to cook from scratch and the product has got to have a lot of claims.’ They’re looking on all the social platforms for more ways or inspiration to cook meat products from scratch.”
This group of foodies is willing to pay more for those claims, she said, such as the product is better for you, it’s better for the planet and my animals are well cared for.
The third group is what Midan Marketing calls aging traditionalists. “They have a little more chronological credibility, and they are voracious carnivores,” she said. “There’s going to be meat in the center of their plates.”
The fourth group is called convenience chasers, who tend to be more budget conscious.
“This individual does not have time to waste. She’s in a hurry. She’s preparing food for her family, and she is going to shop for coupons. But if you make it easy to engage with her, she is going to be loyal to the bone.”
The last group are the wellness divas, who are least likely to include red meat in their diet.
“She’s going to gravitate a lot toward fish and chicken. But the wellness diva, when she eats red meat, is going to have every play known to man,” with the climate-smart play being top of the list. “But the most thing is, she is very critical of what goes into her body,” O’Quinn told Wagyu enthusiasts.
O’Quinn asked the crowd which of the five consumer segments would be most willing to buy Wagyu beef? The protein progressives were a unanimous choice. But the other group generated some discussion.
Surprisingly, it’s not aging traditionalists. O’Quinn told the crowd that it’s convenience chasers. That segment has grown the most during and after the pandemic, “because it’s being driven by retail click-and-collect and online meat purchases.” Maybe she doesn’t have the money to spend on great beef, O’Quinn said, but encouraged Wagyu breeders to acknowledge the premiumization trend in beef sales.
The take-home message: “Don’t ever make the decision for your shopper. Because some shoppers, despite their income, are going to be willing to shell out the money for your product.”
But what about inflation? It’s real and it’s affecting buying decisions across the board. O’Quinn looked back at the 2008 recession for clues.
“What we learned is that the price-value relationship matters more than ever. So as long as you’re communicating that brand promise and the value that you guys do so well delivering, you are going to weather the storm.”
Looking at some numbers backs that up. “Consumers’ meat IQ actually went up in the pandemic,” she said. “Eighty-two percent of meals were cooked in-home during March 2022.
Restaurants are open, but consumers are choosing to stay home. And that’s a really positive story for ya’ll.”
However, she challenged Wagyu breeders to not let up, asking what percentage of meat consumers see Wagyu as an indicator of quality? Surprisingly to those in the crowd, it’s 19%. That compares with 50% who recognize Prime as an indicator of quality.
“And ya’ll are better than Prime,” she said. “So, there’s your challenge. And this is your room to grow. There’s room to continue to educate shoppers. And here’s the thing—72% of consumers are buying beef for taste. And that is what you own.”
O’Quinn reminded Wagyu enthusiasts that 60% of American consumers trust farmers and ranchers.
“In this day and age of polarization and lack of trust, consumers trust you. So lean into that trust and meet them where they are and tell your story.”
