The Value of Branding in the Fresh Meat Industry

The U.S. fresh-meat industry has historically been an unbranded market segment, but in recent years, according to The Wall Street Journal article “Meat Industry Launches Campaign…,” there has been a trend among several industry producers such as Tyson Foods, Inc. and Hormel Foods Corp. to begin branding fresh-meat. What is the value of branding for the $60 billion fresh-meat industry? Branding supports at least two of the industry’s current goals: to promote and sell a new class of fresh-meats and to attract and retain new customers. Branding initiatives will create shareholder value for a firm by reducing the volatility of its revenues and by accelerating its cash receipts.
Perhaps the most critical result of product branding is that it differentiates a “commodity” product in the eyes of consumers. Branded products aim to provide consumers with additional utility by offering products of superior quality. Hormel specifically targeted the “under 30” market with its ...