BC  Beef  Market  Research  Project  For  Asian  Markets  in  Greater  Vancouver  

       

Prepared  by  Dr.  Warveni  Jap  Thompson  Rivers  University  

School  of  Research,  Innovation,  and  Graduate  Studies  Kamloops,  British  Columbia  

Canada    

September  30,  2013        

Funding  Provided  By    

       

     

 

 

 

 

   

Project  Proponent  and  Administrator:  BC  Association  of  Cattle  Feeders    

   

 Funding  for  this  project  has  been  provided  by  Agriculture  and  Agri-­‐Food  Canada  and  the  BC  Ministry  of  Agriculture  through  the  Canada-­‐BC  Ranching  Task  Force  Funding  Initiative.  The  initiative  is  delivered  by  the  Investment  Agriculture  Foundation  of  BC.

Agriculture  and  Agri-­‐Food  Canada  (AAFC)  and  the  Ministry  of  Agriculture  are  committed  to  working  with  industry  partners.  Opinions  expressed  in  this  document  are  those  of  Dr.  Warveni  Jap  and  not  necessarily  those  of  AAFC  or  the  Ministry  of  Agriculture.

               

 ©  2013  by  WARVENI  JAP    ALL  RIGHTS  RESERVED

 

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TABLE  OF  CONTENTS    

1. Introduction  and  Acknowledgement  2. Context  of  the  Research  3. Methodology  4. Results  5. Conclusion  6. Recommendations  7. References  

           

                                     

 

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1. INTRODUCTION  AND  ACKNOWLEDGEMENT    

The  applicant  and  industry  sponsor  for  this  research  project  is  the  British  Columbia  Association  of  Cattle  Feeders  (BCACF),  which  was  founded  in  1988  to  support  the  needs  of  cattle  feeders  in  British  Columbia.    The  primary  objective  of  the  Association  is  to  bring  information,  technology,  education,  and  other  services  to  the  BC  cattle  feeders  (BCACF  report  2011).  Furthermore,  this  project  was  made  possible  through  funding  from  Agriculture  and  Agri-­‐Food  Canada  and  the  B.C.  Ministry  of  Agriculture  and  delivered  by  the  Investment  Agriculture  Foundation  of  British  Columbia.      The  principal  investigator  in  this  project  is  Dr.  Warveni  Jap  who  worked  on  this  project  through  the  Office  of  Research,  Innovation  and  Graduate  Studies  (RIGS)  at  Thompson  Rivers  University  (TRU).  This  project  focused  on  the  results  of  market  research  from  Asian  markets  in  Greater  Vancouver  and  the  recommendations  are  based  on  the  market  research  findings.  The  project  management  was  provided  by  Gillian  Watt  from  former  TRU  RIGS.  There  were  two  research  assistants  involved  in  this  market  research  project,  namely,  Hong  (Christina)  Yang  who  was  the  interpreter  to  the  Chinese  participants,  and  Nishi  Saraswat  who  was  a  former  TRU  post-­‐baccalaureate  in  business  program  involved  more  in  Chinese  consumer  behaviour  study  in  BC  and  Canada  markets.  Bill  Freding  and  Dimity  Hammon  who  were  from  BCACF  provided  valuable  information  and  insights  on  the  BC  beef  industry.    We  also  sincerely  appreciate  the  tremendous  assistance  from  Desmond  Liew,  Dr.  John  D.  Ramsay,  Lily  Li,  May  Ma,  Prof.  Ding  Guo,  Dr.  Chak  Au  to  introduce  and  connect  us  with  those  Chinese  restaurant  owners  and  Head  Chefs  for  interviewing  them  effectively  and  efficiently  in  this  market  research  project.    Additionally,  we  are  grateful  to  those  Chinese  participants  who  were  willing  to  spend  their  time  and  to  share  their  beef  market  knowledge  and  experiences  in  Greater  Vancouver  markets  to  this  market  research  project.    Last  but  not  least,  we  are  sincerely  thankful  to  former  TRU  Associate  Vice  President  Dr.  Donald  Noakes,  current  TRU  Associate  Vice  President  Dr.  Will  Garrett-­‐Petts,  Director  Research  Partnerships,  Enterprise  Creation  Dr.  Lincoln  Smith,  Project  Manager  Ms.  Gillian  Watt,  Dean  of  School  of  Business  and  Economics  Dr.  Russell  Currie,  and  Department  Chair  of  Marketing,  International  Business,  and  Entrepreneurship  Ms.  Deborah  Lawton  who  fully  supported  this  project  to  make  this  project  possible.                    

 

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 2. Project  Opportunity  and  Purpose    A  key  success  factor  for  participants  in  the  B.C.  beef  industry  in  the  future  will  be  its  ability  to  fine  tune  their  product  attributes  and  image,  to  meet  the  preferences  of  those  emerging  markets  with  a  greater  willingness  to  pay.    Market  intelligence  will  play  a  critical  first  stage  role  in  the  development  of  higher  valued  beef,  produced  specifically  to  meet  the  needs  of  these  higher  end  markets.      The  Asian  markets  in  Vancouver,  B.C.  offer  such  an  opportunity  for  B.C.’s  beef  industry.    A  recent  research  project  commissioned  by  the  B.C.  Association  of  Cattle  Feeders  titled  “Market  and  Logistics  Research  for  Two  Regional  Beef  Value  Chains  in  B.C.,  Canada”  identified  the  Asian  restaurant  markets  in  Vancouver  as  a  market  opportunity  and  a  segment  for  which  further  market  research  was  recommended.  The  household  buying  power  within  the  Asian  market  is  rapidly  increasing  and  with  this  may  come  an  increased  demand  and  discernible  taste  for  beef  products  with  certain  valued  attributes.    To  serve  these  markets  effectively  however,  the  B.C.  and  Canadian  beef  industries  need  to  gain  a  better  understanding  of  the  market  dynamics  including  product  preferences,  values  placed  on  different  production  practices,  packaging,  sales  and  distribution  systems.          As  the  B.C.  beef  production  and  processing  industry  is  at  a  cost  disadvantage  to  larger  economies  of  scale  within  the  country,  it  is  important  for  the  beef  and  processing  industry  in  this  province  to  develop  core  competencies  in  serving  these  niche  domestic  markets  effectively  with  high  value  products  and  services  designed  exclusively  to  meet  their  needs.    By  effectively  developing  the  Vancouver  Asian  markets,  the  B.C.  industry  may  obtain  higher  prices  for  these  valued  products  at  levels  that  will  increase  gross  margins  for  both  producers  and  processors.          Benefits  of  Project      Improved  competitiveness  of  Canadian  and  B.C.  beef  within  the  Asian  markets  in  the  Vancouver  market  by:  

1. Developing  a  closer  understanding  of  the  preferences  and  value  placed  on  different  products  as  well  as    product  and  service  attributes  of  the  Asian  retail,  and  foodservice  markets  in  Vancouver  B.C.  

2. Developing  a  closer  understanding  of  the  needs  of  the  secondary  processors  and  distributors  who  play  a  critical  role  in  serving  the  Asian  retail  and  food  service  markets.  

3. Developing  key  relationships  within  the  Asian  food  service,  retail  and  distribution  sectors  will  enable  further  market  development  for  B.C.  and  Canadian  Beef.  

4. Recommendations  from  this  research  will  provide  information  for  value  chains  within  B.C.  and  Canada  to  more  effectively  develop  and  service  the  Vancouver  Asian  market.    This  will  

 

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lead  to  more  effective  carcass  utilization  and  improved  margins  for  producers  and  processors.  

 3. CONTEXT  OF  THE  RESEARCH      The  purpose  of  this  research  project  is  to  determine  the  “appetite”  for  branded  BC  beef  in  BC  markets,  in  particular  in  Asian  markets  in  Greater  Vancouver.  One  such  example  of  a  B.C.  brand,  Certified  BC  Beef,  is  an  umbrella  “brand”  of  beef  that  has  been  certified  by  the  BC  Association  of  Cattle  Feeders  as  being  born,  raised  and  processed  in  British  Columbia.    Under  that  umbrella  group,  there  can  be  several  local  brands  that  guarantee  that  the  cattle  have  not  been  given  any  additional  hormonal  implants  or  steroids  or  fed  with  any  antibiotics  intended  as  growth  stimulants.    Some  of  the  local  brands  may  include  a  “grass  fed”  criteria.    Such  brands  of  BC  beef  may  have  attributes  that  are  perceived  by  the  consumer  to  be  healthier  and  better  quality  than    ”commodity  beef”.    A  few  of  these  potential  perceived  attributes  are  as  follows:,      

a)    More  healthy  because  they  are  free  of  hormone  implants  and  synthetic  growth  promotants      b)    More  environmentally  friendly  because  of  a  lower  carbon  footprint  due  to  reduced  transportation  of  animals  or  product,  etc.    c)    More  humane  handling  practices  –  animals  stay  longer  in  their  natural  environment,      d)    Better  for  the  local  economy  -­‐calves  kept  in  B.C.  to  background,  finish  and  process    

contribute  up  to  $1,800/animal  additional  revenue  to  the  B.C.  economy    

 To  reiterate,  the  purpose  of  this  research  is  to:  

1. help  BC  beef  producers  and  processors  identify  the  right  distributors,  customers,  and  consumers  in  the  value  chain  by  understanding  better  what  they  really  need  and  want  to  better  service  the  Asian  beef  markets  in  Vancouver  Lower  Mainland  

2.  assist  BC  beef  producers  and  processors  to  optimize  their  BC  market  distribution  channels  more  effectively  and  efficiently.        

Ultimately,  this  research  study  would  encourage  and  promote  the  consumption  of  more  BC  finished  and  processed  beef  by  BC  residents  as  well  as  to  advance  BC  economic  development  and  growth.              

 

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   4. METHODOLOGY    This  is  a  qualitative  study  with  some  quantitative  components.  This  research  study  employed  a  phenomenological  qualitative  approach  by  using  semi-­‐structured  in-­‐depth  one-­‐on-­‐one  personal  interviews  to  explore  further  the  Chinese  business  operators’  buying  behaviour  towards  beef  in  Vancouver  and  Richmond  areas.  The  participants  were  from  high-­‐end  Chinese  restaurants  (including  hotel  restaurants),  meat  retailers  and  distributors  with  a  total  sample  of  20  participants.  The  aim  of  this  qualitative  interview  is  to  gain  the  perspective  of  the  interviewees,  so  that  the  investigated  topics  could  be  further  explored  (Hair,  Wolfinbarger,  &  Bush,  2008;  Daymon  &  Holloway,  2004).        The  list  of  the  20  participants  was  be  provided  by  the  Principal  Investigator's  (PI's)  Chinese  friends  who  were  well-­‐established  professionals  and  business  people  from  China  and  Hong  Kong,  but  lived  in  Vancouver  and  Richmond  more  than  15  years  long.    They  also  were  very  well-­‐known  professionals  and  public  figures  in  Lower  Mainland  Chinese  community  and  have  very  broad  Chinese  connection  down  there  as  well.      The  Chinese  connectors  contacted  their  friends  (those  high-­‐end  Chinese  restaurant  owners/managers/head  chefs)  first  to  introduce  the  purpose  of  the  project  and  the  PI.    Furthermore,  when  necessary,  the  Chinese  Connector  would  fax  the  survey  questions  (sample  interview  questions)  to  the  potential  participants  for  their  further  reference  and  understanding  about  the  research  project.    Basically,  the  participants  were  the  owners/managers/head  chefs  from  the  Chinese  high-­‐end  restaurants  (including  hotel  restaurants),  high-­‐end  meat  retailers  and  distributors  in  Lower  Mainland.    Once  the  participants  agreed  to  participate,  with  the  restaurants’  permission,  the  PI  and  the  Research  Assistant  made  appointments  for  visiting  and  interviewing  the  restaurants  accordingly.  

 The  Principal  Investigator  (PI)  conducted  the  interview  in  Chinese  Mandarin  language  while  the  Chinese  Research  Assistant  took  notes  to  gather  the  interview  data  during  interview.    If  the  interviewees  spoke  Chinese  Cantonese,  then  the  Chinese  Research  Assistant  would  be  conducting  the  interviews,  whereas  the  PI  would  be  taking  notes  instead.    Indeed,  both  Chinese  Mandarin  and  Chinese  Cantonese  had  the  same  writing  systems,  but  different  pronunciation  only.    The  interview  questions  were  the  same  as  the  survey  questions.  Also,  the  interview  data  were  noted  by  the  Chinese  Research  Assistant  as  well  as  the  Principle  Investigator  (PI)  when  needed  during  the  interview.  There  were  seven  open-­‐end  research  questions  in  the  one-­‐on-­‐one  in-­‐depth  interview,  it  was  estimated  to  take  about  4-­‐5  minutes  to  discuss  each  questions  resulting  in  30-­‐45  minutes  for  each  interview.    There  are  significant  cultural  differences  between  the  West  and  Chinese  culture  (Hill,  2013;  Hill  &  McKaig,  2012;  Cateora  et  al.,  2012).  Therefore,  this  present  study  attempted  to  explore  and  

 

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understand  more  in-­‐depth  about  Chinese  Canadian  consumption  behavior  and  preferences  towards  beef  products.  Specifically,  this  market  research  project  attempted  to  understand  further  how  Asian  Canadians  living  in  the  Greater  Vancouver  area  perceive    BC  beef  branding    and  products  through  one-­‐on-­‐one  in-­‐depth  interviews.      The  following  are  the  research  questions  of  this  research  project,  as  follows:    RQ  1:  What  are  your  first  and  foremost  concerns/preferences  in  choosing  the  source  of  your  beef?    Why?    RQ  2:  Are  you  aware  that  there  is  B.C.  produced  and  processed  beef  available  that  has  been  raised  and  finished  under  low  stress  conditions  within  our  province  and  is  free  of  antibiotics  and  artificial  growth  implants?      

• What  do  you  think  about  it?  • If  yes,  what  brands  are  you  aware  of?  • Is  this  of  interest  to  you  or  your  clients?  

 RQ  3:  Do  you  think  your  clients  would  be  willing  to  pay  more  for  a  branded  B.C.  beef  product  that  has  been  produced  and  processed  locally  without  hormones,  antibiotics,  and  has  lower  environmental  impact  (e.g.,  low  carbon  footprint).    Why?    RQ  4:  How  long  have  you  been  patronizing  with  your  beef  supplier(s)?  How  much  and  frequently  do  you  purchase  from  them  in  a  week?  What  do  you  think  about  your  business  relationship  with  them  so  far?  Would  you  be  open  to  building  a  relationship  with  a  producer  who  has  a  branded  B.C.  beef  product?  

• If  so  would  you  like  to  retain  your  current  distributor,  or  would  you  prefer  to  deal  directly  with  the  B.C.  Producer’s  sales  representative?    Why  and  why  not?  

 RQ  5:  Currently,  an  online  ordering  tool  is  being  developed  by  the  B.C.  Association  of  Abattoirs  that  will  enable  chefs  to  purchase  beef  on  a  carcass  basis  direct  from  producer/abattoir  teams  and  obtain  a  cost  per  serving  calculation  based  on  their  cutting  instructions.    This  will  assist  chefs  in  carcass  optimization  based  on  their  seasonal  menus  and  client  preferences.    Would  this  tool  be  of  interest  to  you?    RQ  6:  What  would  be  your  advice  to  the  B.C.  beef  producers  and  processors  to  build  their  products  and  services  to  best  meet  your  needs?      

 

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 RQ  7:  Any  other  comments?  To  address  these  questions,  eleven  sub-­‐research  qualitative  and  quantitative  questions  had  been  developed  to  address  the  following  points:    

• Meat  quality  is  the  most  important  for  their  business  • Prices  is  the  most  important  for  their  business  • The  brand  name  of  the  supplier  is  very  important  for  their  business  • The  source  of  the  beef  is  very  important  for  their  business  • Meat  cut  is  very  important  for  their  business  • Their  customers’  preferred  types  of  beef  • Packing  sizes  are  very  important  for  their  business  • Customer  services  are  very  important  for  their  business  • Terms  of  payment  • Their  major  customers    • Any  comments  and  suggestions  to  BC  Beef  Industry  for  better  business  relationship  with  

their  companies?  

 

5. RESULTS    Interview  Findings    Interview  Question  1:  What  are  your  first  and  foremost  concerns/preferences  in  choosing  the  source  of  your  beef?    Why?    Based  on  the  interview  findings,  all  the  participants  put  high  quality  as  their  first  priority  followed  by  competitive  prices.    

Participant  RS-­‐1:  We  are  concerned  with  quality  and  price.  If  the  quality  is  very  good  but  the  price  is  expensive,  we  will  still  consider  it.  

 Participant  SH-­‐1:  The  quality  of  the  beef  is  the  most  important.  Our  customers  think  that  

Canadian  beef  is  the  safest  and  healthiest  in  the  world.  The  beef  must  be  fresh  and  tender.  Different  parts  of  the  cattle  can  be  used  to  make  different  dishes.  We  prefer  AAA  grade  beef.  

   Interview  Question  2:  

 

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Are  you  aware  that  there  are  branded  B.C.  produced  and  processed  beef  products  available  that  have  been  raised  and  finished  under  low  stress  conditions  within  our  province  and  is  free  of  antibiotics  and  artificial  growth  implants?      

• What  do  you  think  about  it?  • If  yes,  what  brands  are  you  aware  of?  • Is  this  of  interest  to  you  or  your  clients?  

 All  the  participants  were  not  aware  of  branded    BC  beef  available  in  the  market,  and  also  they  did  not  pay  attention  to  the  brands  of  the  beef.    Rather,  they  relied  fully  on  their  long-­‐term  suppliers.    

Participant  FC-­‐1:  We  are  concerned  with  whether  the  beef  is  free  of  antibiotics  and  artificial  growth  implants.  But,  we  have  not  paid  attention  to  whether  the  beef  has  been  raised  and  finished  under  low  stress  conditions.  We  are  also  not  concerned  with  brand.    

                 I  think  local  customers  will  be  interested  in  BC  beef’s  special  attributes  as  they  have  high  

standards  for  food.    Participant  RS-­‐1:  We  value  environmental  protection.  I  think  the  fact  that  BC  beef  has  been  

raised  and  finished  under  low  stress  conditions  within  our  province  and  is  free  of  antibiotics  and  artificial  growth  implants  can  be  a  good  selling  point  to  our  customers.  We  can  also  make  promotion  for  BC  beef  with  new  menus.  Our  customers  have  high  standards  for  food.  I  believe  that  if  the  quality  and  texture  of  the  [BC]  beef  is  good,  it  will  benefit  our  restaurant.  

   

Interview  Question  3:  Do  you  think  your  clients  would  be  willing  to  pay  more  for  a  branded  B.C.  beef  that  has  been  certified  as  produced  and  processed  locally  without  hormones,  antibiotics,  and  has  lower  environmental  impact  (e.g.,  low  carbon  footprint).    Why?    In  this  particular  question,  almost  half  the  participants  would  not  mind  paying  higher  prices  for  higher  quality  beef.  Whereas,  another  half  participants  were  willing  to  pay  5-­‐10%  higher  price  for  much  higher-­‐quality  beef  in  order  to  remain  competitive  to  their  food/dishes.    

Participant  RF-­‐1:  I  am  not  sure.    We  will  have  to  sample  it  first.  We  can  accept  a  little  price  increase,  but  not  too  much.  

 Participant  CH-­‐1:  If  the  price  is  more  than  15%  than  the  regular  beef,  then  we  will  not  consider  

buying.  But,  we  will  consider  purchasing  BC  beef  if  it  is  less  than  10%  higher  price  than  the  regular  one.    

 Participant  SH-­‐1:  I  think  our  clients  would  be  willing  to  because  they  care  more  about  quality  

than  cost.  

 

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Interview  Question  4:  How  long  have  you  been  patronizing  with  your  beef  supplier(s)?  How  much  and  frequently  do  you  purchase  from  them  in  a  week?  What  do  you  think  about  your  business  relationship  with  them  so  far?  Would  you  be  open  to  building  a  relationship  with  a  B.C.  beef  producer  and  processer  team  who  provide  a  branded  product?    If  so  would  you  like  to  retain  your  current  distributor,  or  would  you  prefer  to  deal  directly  with  the  B.C.  Producer’s  sales  representative?    Why  and  why  not?    About  half  of  the  participants  were  not  sure  if  they  would  like  to  switch  to  new  beef  suppliers.  It  was  mainly  because  they  already  had  long-­‐term  sound  relationship  with  their  current  supplier  who  had  satisfied  their  needs  and  wants.    However,  another  half  of  the  participants  were  open  to  new  suppliers  as  long  as  they  [the  new  suppliers]  delivered  better  services  and  higher-­‐quality  beef.    Furthermore,  most  of  the  suppliers  delivered  their  products  to  the  restaurant  daily  except  Sundays  and  holidays.    

Participant  TJ-­‐1:  We  are  satisfied  with  our  current  beef  supplier.  Our  main  concerns  are  quality,  price,  and  delivery.  If  BC  Beef  can  meet  our  requirements,  we  are  willing  to  build  a  business  relationship  with  BC  Beef.  

     Interview  Question  5:  Currently,  an  online  ordering  tool  is  being  developed  by  the  B.C.  Association  of  Abattoirs  that  will  enable  chefs  to  purchase  beef  on  a  carcass  basis  direct  from  producer/abattoir  teams  and  obtain  a  cost  per  serving  calculation  based  on  their  cutting  instructions.    This  will  assist  chefs  in  carcass  optimization  based  on  their  seasonal  menus  and  client  preferences.    Would  this  tool  be  of  interest  to  you?    None  of  the  participants  were  interested  in  using  such  computerization  ordering  method  for  theirs.    

Participant  SG-­‐1:  Chinese  restaurant  do  not  use  this  online  service  often.  I  do  not  think  we  will  be  interested.    

 Participant  SH-­‐1:  We  do  not  use  the  computer  very  often.  The  Head  Chef  is  only  responsible  for  

the  quality  of  the  products.      

 

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 Interview  Question  6:  What  would  be  your  advice  to  the  B.C.  Beef  Producers  and  processers  to  build  their  products  and  services  to  best  meet  your  needs?      Every  participant  was  very  eager  and  interested  in  trying  and  tasting  BC  beef,  and  also  they  would  like  to  have  a  sample  from  the  B.C.  Association  of  Cattle  Feeders  for  making  trials  with  themselves  and  their  customers.    On  the  other  hand,  many  of  them  suggested  that  there  should  be  more  BC  beef  promotion  available  in  the  market  for  brand  and  product  awareness  to  the  public.    

Participant  RF-­‐1:  Our  restaurant’s  procedure  usually  has  the  Head  Chef  sampled  the  beef  first,  then  ask  the  Head  Chef  to  recommend  it.  The  second  step  is  a  meeting  between  the  restaurant  managers.  The  third  step  is  recommending  the  beef  to  the  customers.  We  will  use  different  brands  of  beef  to  make  the  same  dish  to  compare  the  quality.  We  are  interested  in  BC  beef  and  want  to  have  the  sample  to  taste  how  the  quality  is.  

 Participant  TJ-­‐1:  We  think  that  BC  beef  has  not  promoted  itself  sufficiently.  Many  people  

around  me  have  not  heard  of  BC  beef.  We  only  know  that  beef  comes  from  Alberta.  If  the  quality  and  prices  are  good,  we  would  like  to  buy  BC  beef  to  support  the  BC  economy.  

 Participant  FC-­‐1:    Every  year,  there  is  the  Annual  British  Columbia  Chef  of  the  Year  Competition  

at  the  BC  Food  Service  Expo.    I  suggest  the  BC  Association  of  Cattle  Feeders  sponsors  it.  Last  year,  our  Chef  won  the  first  place  with  the  beef  roll.  

 Participant  RS-­‐1:    BC  Beef  should  have  food  experts  to  develop  menus  to  help  promote  the  

beef.  Only  advertising  and  hard  sales  will  not  be  effective  and  sufficient.    Participant  SG-­‐1:  If  we  are  satisfied  with  the  samples,  we  will  be  willing  to  promote  it.  We  only  

knew  about  Alberta  beef  before.    So,  BC  Beef  should  promote  more.    After  trying  and  tasting  the  BC  Beef  samples,  we  will  talk  with  our  manager  and  office  about  making  new  menus  to  help  promote  BC  Beef.  

 Participant  SH-­‐1:  We  hope  that  BC  Beef  will  have  the  same  quality  as  Japanese  Kobe  beef.  Even  

if  it  is  a  little  more  expensive,  we  would  be  interested  in  purchasing  if  it  is  really  high-­‐quality  beef.  We  also  want  the  product  advertisements  in  Chinese  language  other  than  English.  

 Participant  CS-­‐1:  I  suggest  that  BC  Association  of  Cattle  Feeders  can  invite  Chinese  chefs  and  

managers  to  our  restaurant  for  promoting  and  trying  different  dishes  by  cooking  with  BC  beef.      

 Participant  JS-­‐1:  I  have  had  BC  beef  before,  and  it  was  very  delicious.      

   

 

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 Interview  Question  7:  Any  other  comments  [or  suggestions  to  BC  beef  industry  for  better  business  relationship  with  your  company]?    

• Fair  &  reasonable  prices  • High  quality  products  • Good  and  sustainable  delivery  • Chinese  sales  service  appreciated  • Strongly  support  BC  beef  • Advertise  BC  beef  in  both  languages    (i.e.,  English  and  Chinese)  • The  BC  Association  of  Cattle  Feeders  should  sponsor  the  Annual  BC  Chef  of  the  Year  for  

promotion  • Interested  in  trying  the  sample  from  the  BC  Beef  Association  • Ask  food  experts  to  make  menu  to  promote  • BC  beef  needs  to  be  promoted  more  aggressively  • Look  forward  to  the  samples  • Open  to  have  new  relationships  with  other  beef  supplier  

   Research  Findings  from  Sub-­‐Research  Questions  (i.e.,  Chinese  Consumer  Behavior  &  Perception  on  Beef  Demand)  Q  #1:  What  is  the  value  of  the  following  attributes  of  locally  produced  beef  to  you  and  your  guests  eating  experience?    (n=  20)    

Attributes Highly  Valued  (%)

Valued  (%)

Slightly  Valued  (%)

No  Value  (%)

Taste  &  juiciness 64   27   9   -­‐

Consistent  tenderness 73 27 -­‐ -­‐

Supporting  the  local  economy 36.5 45.5 18

Reducing  food  miles 18.5 45.5 9 27

Health  aspects  (no  antibiotics  &  growth  implants) 45.5 54.5 -­‐ -­‐

Environmental  sustainability  of  production  systems

28 36 18 18

Dry  aging  14  days 18 37 27 18  

 

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               If  a  BC  beef  brand  can  offer  all  of  the  items  you  have  chosen  as  having  value,  what  %  premium  are  willing  to  pay  over  the  commodity  brands?  

                       

   The  BRAND  name  of  the  supplier  is  very  important  for  our  business  

Yes  (%) No  (%)

100 -­‐

     

% Yes  (  %  ) No  (  %  ) Remarks

5    –  10   -­‐ -­‐ Depends  upon  the  price  is  a  generic  answer.

10    –  15 -­‐ -­‐

15    –  20 -­‐ -­‐

25  –  30   -­‐ -­‐

Other -­‐ -­‐

 

15  

 

 

Do  you  currently  know  the  origin  of  the  beef  you  are  buying?  

Yes  (  %  ) No  (  %  )

36 64

 Have  you  heard  of  any  brands  of  BC  beef  that  have  been  grown,  finished,  and  processed  in  BC  and  are  free  of  antibiotics  and  growth  implants?  

Yes  (  %  ) No  (  %  )

27 73

     Appropriate  MEAT  CUTs  are  very  important  for  our  business  

Yes  (  %  ) No  (  %  )

91 9

     We  buy  the  following  types  of  beef  

Types  of  Beef Minimum  (  lbs  /  week  )  

Maximum  (  lbs  /  week  )

“nin  nan”  (Chinese  stew) 10 60

Shanks -­‐ 20

Stir  Fried  Beef 20 100

Short  Beef  (thick  meat,  short  bones)

-­‐ 30

Tripe 15 30

Beef  Tendon 30 40

Ground  Beef -­‐ -­‐      

 

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PACKING  SIZES  are  very  important  for  our  business  (part  1/2)  

Yes  (  %  ) No  (  %  ) Remarks

100 -­‐-­‐ Prefer: •    10  lbs/pack •    25  lbs/pack

 PACKING  SIZES  are  very  important  for  our  business  (part  2/2)  

Preferred  Size Yes  (  %  ) No  (  %  )

SMALL   36.5 -­‐

MEDIUM   45.5 -­‐

STANDARD 18 -­‐      Prefer  Package  with  Cryovac  

Yes  (  %  ) No  (  %  ) Does  Not  Matter  (  %  )

55.5 -­‐ 44.5

     Customer  Services  

Description Yes  (  %  ) No  (  %  )

Prefer  sales  &  service  directly  from  the  producer  brand

55.5

Prefer  sales  &  service  thru  our  existing  distributor 64

Prefer  the  sales  rep  can  speak  Cantonese  with  us 82

Prefer  the  sales  rep  can  speak  Mandarin  with  us 82

Would  you  be  willing  to  work  with  a  BC  Brand,  and  to  accept  frozen  product  to  assist  them  in  growing  their  capacity

82

     

 

17  

 

 

Customer  Service:  Delivery  

1-­‐2  Times/Week Daily (except  Sundays)

63  % 37  %

   Payment  

Preferred  Method  of  Payment

Yes  (  %  ) No  (  %  )

TT  (electronic  bank  transfer) -­‐ -­‐

Cheque 91 -­‐

Cash -­‐ -­‐

Other -­‐ -­‐

Preferred  Payment  Due  Date

Preferably  within  30  –  60  days  after  delivery

       6. CONCLUSION    

• Chinese  population  in  BC  is  growing  rapidly  that  consists  of  30%  Greater  Vancouver’s  population.  

• They  are  affluent  &  educated  consumers  • High-­‐quality  lifestyle  oriented  • The  beef  demand  for  Chinese  markets  in  Greater  Vancouver  is  untapped  and  significant  • The  high-­‐end  Chinese  restaurants  are  eager  to  try  and  promote  BC  beef  for  their  business,  

and  also  are  willing  to  support  BC  local  economy  • Most  of  the  participants  were  unaware  of  BC  beef  products  and  any  BC  brands  such  as  

Certified  BC  Beef.            

 

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7. RECOMMENDATIONS      

• Lack  of  awareness  of  BC  beef  brands  and  products  can  be  perceived  as  an  excellent  business  opportunity  to  expand  BC  beef  brands  and  products  to  Chinese  markets  in  Greater  Vancouver  if  proper  brand  management  and  delivery  services  are  implemented  strategically  and  professionally.    

• Adopt  differentiation  strategy  for  niche  marketing  and  profit  optimization    

• Chinese  rely  heavily  on  loyalty  and  mutual  trust  and  benefits  in  their  business  relationship.    Thus,  it  is  important  that  BC  Association  of  Cattle  Feeders  and  BC  Association  of  Abattoirs  are  also  playing  the  same  role  when  dealing  business  with  them.    

• Develop  bilingual  (i.e.,  English  and  Chinese)  meat  chart  and  code  numbers  for  Chinese  customers’  conveniences  when  ordering  and  purchasing  BC  beef  from  the  Association  members.    

• Provide  more  strategic  promotion  tools  for  better  services  to  the  potential  Chinese  clients,  such  as:    

o Bilingual  (i.e.,  English  and  Chinese)  pamphlets,  website,  and  social  media  (e.g.,  Facebook,  twitter)    

o Initially,  hire  a  part-­‐time  professional  Chinese  sales  rep  to  be  the  bridge  between  Chinese  clients  and  branded  BC  beef  producers,  and  also  to  collect  the  necessary  information  of  what  the  Chinese  clients  really  need  and  want  from  BC  Association  of  Cattle  Feeders  and  BC  Association  of  Abattoirs.    

• Chinese  language  version  in  any  website  of  branded  BC  beef  products  will  provide  better  customer  service  to  Chinese  clients.    

• Offer  the  requested  samples  in  a  timely  way  for  their  trials  to  help  them  develop  new  menus  with  BC  beef.    

• Eventually,  BC  beef  producers  may  need  a  strategic  alliance  distribution  center  in  Lower  Mainland  for  providing  better  services  and  logistic  coordination  to  the  Chinese  clients.    

• Design  and  create  the  concept  of  “green  marketing,”  event  marketing,  and  buzz  marketing  (e.g.,  Facebook,  twitter)  activities  to  promote  awareness  of  BC  beef  brands  to  Chinese  Asian  markets  in  Greater  Vancouver  successfully,  efficiently,  effectively,  and  profitably.    

• Actively  participate  in  and  sponsor  the  BC  Beef  Day,  and  also  to  join  relevant  other  trade  shows  and  event  marketing  to  create  and  promote  BC  beef  brands  to  the  public  more  effectively  and  efficiently.  

 

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 • Invite  high-­‐end  Chinese  Restaurant  owners,  head  chefs,  purchasing  managers,  and  general  

managers  to  one  of  BC’s  beef  ranches  to  experience  the  countryside  lifestyle  and  understand  better  about  how  the  cattle  ranchers  raise  and  process  BC  beef  and  generate  more  buzz  marketing  in  their  Vancouver  Asian  markets.    

• On  the  other  hand,  BC  beef  producers  and  processors  should  hold  a  dinner  party  in  a  high-­‐end  Chinese  restaurant  somewhere  in  Richmond  to  celebrate  and  promote  BC  beef  products  with  those  potential  Chinese  clients  together  with  BC  beef  value  chain  members  for  establishing  further  and  sound  relationship  with  each  other.      

   8. REFERENCES      Cateora,  P.  R.,  Gilly,  M.  C.,  &  Graham,  J.  L.  (2013).  International  Marketing  (16th  ed.).  New  York:  

McGraw-­‐Hill  Irwin.    Daymon,  C.,  &  Holloway,  I.  (2004).  Qualitative  Research  Methods  in  Public  Relations  and  

marketing  Communications.  London:  Routledge.      Hair,  J.  F.,  Jr.,  Wolfinbarger,  M.,  Ortinau,  D.  J.,  &  Bush,  R.  P.  (2008).  Essentials  of  marketing  

research.  New  York:  McGraw-­‐Hill  Irwin.    Hill,  C.  W.  L.  (2013).  International  business  (9th  ed.).  New  York:  McGraw-­‐Hill  Irwin.  

Hill,  C.  W.  L.  &  McKaig,  T.  (2012).  Global  Business  Today  (3rd  Canadian  ed.).  Toronto,  ON:  McGraw-­‐Hill  Ryerson.