Did You Know.. Are You A Brand Conscious Consumer?

Well, are you?

Many of us in agriculture might say, “Not really.”

Yet we all probably have some brands that are important to us. Maybe it is the pickup we drive or boots we prefer to wear.

In 1999, prominent Purdue economist Michael Boehlje said the “new agriculture” in the 21st century would include a focus on differentiated, branded production. At the time, most ag commodities were sold unbranded.

Are we making progress? There’s evidence that says we are, especially in the beef sector.

Today, there are 179 USDA certified beef programs, of which 139 are Angus based, and 74 of those are Modest-0 (Premium Choice) or higher. Some beef from at least 70% of Premium Choice carcasses goes to brands such as Certified Angus Beef ®. Even the lower quality USDA Select grade beef may carry a brand.

So what makes brands successful? Consumer marketing classes generally identify five key factors in brand success:

—They contain a Promise

***They taste better, make you run faster, look better.

—They create an Image

***Driving a certain car or using a certain phone denotes status.

—They become part of a Lifestyle

***Riding a certain motorcycle or RV makes you part of the “club.”

—They create an expectation of Consistency

***your favorite brand of soda will taste the same in Los Angeles or Paris.

—They imply Value

***buying a certain brand implies quality worth the price.

But here are some things you likely DID NOT KNOW about beef brands.

When did beef branding start? Many are aware that the CAB program produced the first USDA-certified beef brand starting in 1978. Which brands were second and third? In 1979, Coleman’s Natural Beef launched the first “natural” program. By 1985, Laura’s Lean, Harris Ranch and Maverick Ranch brands appeared. In the 1990s, packer brands started to appear.

What is the difference between a national brand and a “house” brand? Just as the name implies, a national brand can be purchased all across a country and often globally. “House” brands are created by a store in hopes that consumers will tie their buying habits to that brand, so that the store becomes the destination location to buy it. Larger retail chains often try to create a brand unique to their chain.

Do brands impact how the consumer evaluates a beef product? This past summer Kansas State University meat scientist Travis O’Quinn and his graduate student reported at the 2015 American Meat Science Association meetings on results of a consumer study. Participants first evaluated beef products as a blind test and then later evaluated the same products knowing the quality level or brand. Both strip steaks and ground beef were involved, and four levels of quality: Prime, Certified Angus Beef, low Choice and Select.

As has been reported in many other studies of blind evaluations, Prime and CAB received the highest rating for overall liking (attached Table). However, when consumers knew the quality level, there was an improvement in their palatability perceptions: the Prime and CAB steaks received about a 10% improvement in overall liking. In contrast, knowing it was low Choice or Select had little effect on the ratings. In other words knowing the brand or USDA quality grade improved the consumers’ palatability ratings with higher quality product.

Additionally, the research showed CAB 90% lean ground sirloin rating was improved by 22% when the consumer was aware of the brand.

To this author’s knowledge, this is the first study where consumers evaluated both a blind and known brand or USDA quality grade in the same research. Results certainly imply brands do influence consumer perceptions of a product.

Source: Certified Angus Beef Brand