Grocery Discounts & Shopping Destination Decisions

1. Grocery Discounts & Shopping Destination Decisions September 2009Prepared by

2. Study Methodology A questionnaire was created in August by Miller-Zell in conjunction with the Egg Board A representative panel of respondents* was identified and screened to ensure they were the primary grocery-shoppers in their household and had shopped for groceries at least once over the prior month Respondents selected are also representative of grocery shoppers from all geographic areas of the country The survey was launched online on Thursday August 27th, 2009, and closed Monday August 31st 1,026 completed responses were collected, giving study statistics a margin of error of +/-3.1% *study respondent demographics listed in appendix A

3. Egg-Specific Study Results

4. Selling Points 54% of egg buyers appreciate the many different ways to use eggs over any other aspect Source: August 2009 Miller-Zell Consumer Research Study

5. Nutritional Perceptions of Eggs Very few shoppers view eggs as unhealthy. The overwhelming majority (85%) see them as somewhat or very healthy. Source: August 2009 Miller-Zell Consumer Research Study

6. Selling On Health Benefits View Eggs As Unhealthy Information on the nutritional content of eggs will actually encourage a greater percentage of those who already see eggs as healthy to purchase more (22%) than those who thought eggs were unhealthy (13%). View Eggs As Healthy Source: August 2009 Miller-Zell Consumer Research Study

7. Selling On Versatility Effects of Recipe Suggestions at Egg Case Providing information on nutritious meals which feature eggs is more likely to increase egg purchasing than is providing information on nutritional benefits of eggs. Source: August 2009 Miller-Zell Consumer Research Study

8. Packaging Preferences Preferred Packaging Pressed board cartons are the packaging type the largest percentage of shoppers prefer (40%), with a majority of those who do prefer it citing environmental reasons (62%). The 24% who prefer foam packaging are most likely to cite egg protection as the reason for their preference. Just 5% prefer clear plastic packaging Source: August 2009 Miller-Zell Consumer Research Study

9. Shopping Patterns Do You Have A Primary Grocery Shopping Location? What is Your Primary Grocery Shopping Location? 59% of respondents have a single location at which they do a majority of their shopping 69% of those with a primary shopping location report it is a grocery store, with 23% indicating a supercenter. Source: August 2009 Miller-Zell Consumer Research Study

10. Egg Purchasing In total, 81% of responding shopping purchase eggs. Grocery stores are the shopping location at which the largest percentage of shoppers buy their eggs, with fewer purchasing at supercenters. Source: August 2009 Miller-Zell Consumer Research Study

11. Egg Purchasing During Stock-Up Trips Shoppers with a single primary store where they shop are more likely to purchase eggs there than shoppers who do not have a single primary grocery store. This is especially true of those whose primary grocery shopping location is a supercenter. Source: August 2009 Miller-Zell Consumer Research Study

12. Egg Purchasing During Fill-In Trips A smaller percentage of respondents purchased eggs at any tested location during fill-in grocery shopping trips. However, as would be expected, a greater percentage of respondents who did make fill-in shopping trips to the tested store types purchase eggs while there. Source: August 2009 Miller-Zell Consumer Research Study

13. General Grocery Shopping Behaviors

14. Stock-Up Shopping Locations Grocery stores draw the highest percentage of shoppers for stock-up shopping. Supercenters attract 60% of those who do not have a single primary grocery shopping location, but just 23% of those who do. Source: August 2009 Miller-Zell Consumer Research Study

15. Reasons for Stock-Up Shopping Locations When on stock-up shopping, shoppers are more likely to emphasize prices at supercenters and dollar stores, while comparatively large percentages cite location for grocery stores and convenience or drug stores. Source: August 2009 Miller-Zell Consumer Research Study

16. Fill-In Shopping Locations Convenience & drug stores and dollar stores draw comparatively large percentages of shoppers for fill-in trips compared to stock-up shopping trips (vs. 4% for each tested store type). Source: August 2009 Miller-Zell Consumer Research Study

17. Reasons for Fill-In Shopping Locations Similar to the reasons for stock-up shopping trip destinations, price is most important to those visiting supercenters and dollar stores for fill-in trips. For trips to grocery or convenience/drug stores, location is even more important than it was for stock-up shopping trips. Source: August 2009 Miller-Zell Consumer Research Study

18. Grocery Discounts & Shopping Destination Decisions Eggs are the tested grocery item for which the smallest percentage of shoppers would be willing to change stores, no matter the discount. At discounts of 50% or above, the spread between the percentage of shoppers willing to consider a store change for any product narrows. At a 45% discount, 48% are willing to change stores for eggs, vs. 63% for soft drinks or other beverages. Source: August 2009 Miller-Zell Consumer Research Study

19. Grocery Discounts as Attention Drivers Of the 18 grocery items tested for ability to attract shopper attention through savings-focused advertisements, eggs fell squarely in the middle at position 9, with 42% of shoppers indicating they do take notice. Produce (64%) and cereals (61%) are the tested grocery items which stand out the the largest percentage of grocery shoppers in advertising. Source: August 2009 Miller-Zell Consumer Research Study

20. Grocery Discounts as Traffic Drivers In terms of ability to inspire an additional shopping trip, eggs ranked 10th of the 18 tested grocery items, with 11% of those who say they notice eggs in grocery advertising indicating they would consider an additional trip to their grocery shopping store if the offered discount were attractive enough. Soft drinks & other beverages and butcher-counter items are the tested grocery items which are most likely to inspire an additional, unplanned grocery shopping trip. Source: August 2009 Miller-Zell Consumer Research Study

21. Grocery Items & Price Perceptions Of the grocery items tested, the price of eggs is viewed as least representative of general store prices. The price of produce and milk & other dairy products were the items which the largest percentages of shoppers think best represent general prices at stores. Source: August 2009 Miller-Zell Consumer Research Study

22. Appendices

23. Appendix A – Study Demographics

24. Appendix A – Study Demographics

25. Appendix B – Study Questionnaire

26. Appendix B – Study Questionnaire

27. Appendix B – Study Questionnaire

28. Appendix B – Study Questionnaire

29. Appendix B – Study Questionnaire

30. Appendix B – Study Questionnaire

31. Appendix B – Study Questionnaire

32. Appendix B – Study Questionnaire

33. Appendix B – Study Questionnaire

34. Appendix B – Study Questionnaire

35. Appendix B – Study Questionnaire