MKT4400-02-S24 - Beyond Meat Case Study - Case Study #1 - Group 7 - 1

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MKT4400-02-S24: Marketing Management Dr. Abigail Torres Rico Beyond Meat: Changing Consumers' Meat Preference Case Study Response January 26, 2024 Case Study #1 - Group 7: Rasagnika Lashkar, Samuel Owusu, Syeda Romaiza Ibad, Alexis Dallaportas 1 | P a g e

Introduction Beyond Meat, a producer of plant-based meat products, has been operating in that niche market since 2009. They began with lofty ideals to create high-quality meat substitutes that would rival traditional meat products to the point that they would be able to reduce worldwide meat consumption by 25% by 2020 1 . Though they did not meet that goal, they still have grown the market through their various promotional initiatives and continue to work to change consumer behavior so that they one day may reach their objective. Segmentation Trends in the Plant-Based Meat Market To capture the markets most effectively and to efficiently connect with its target customer base, Beyond Meat must stay aware of the most current trends in Market Segmentation. Market Segmentation is when a business identifies a target market and then segments it into more easily approachable subsets for more effective and targeted marketing. If Beyond Meat pays attention to and collects data about the following Psychographic and Value-Based Segmentation Trends, they will stay abreast of what their customers want and are willing to pay for and therefore be able to capture a larger market share. The first trend points to an escalation in health-conscious consumer behavior. This means that some consumers are starting to realize the significance of natural ingredients, clean eating, and nutrient-dense foods in their diets. Beyond Meat can tap into this thinking by highlighting the health advantages of its plant-based products. Some of these advantages include the absence of cholesterol, saturated fats, hormones, and antibiotics. Continued emphasis on the health benefits of its products in its marketing efforts will resonate with its health-conscious consumer base. Another route into leveraging this trend is to target marketing toward athletes and fitness devotees who are exploring for non-meat sources of protein. Beyond Meat places a strong emphasis on the amount of protein in its products, and therefore it can market its goods as a high-protein choice for general health and muscular rehabilitation. The second trend identifies a heightened awareness and concern about the environmental impact of food production, particularly meat production. This was highlighted in the article “Above and beyond meat: the role of consumers’ dietary behavior for the purchase of plant-based food substitutes,” by Christopher Siegried Kopplin and Theresa Maria Rausch, when they said “[consumers] believe that reducing their meat intake contributes to environmentally friendly behavior. It is important to help consumers make an informed decision about their grocery purchases by providing data on their ecological impact 7 . This is great news for Beyond Meat because they can emphasize the sustainability benefits of its plant-based products. It would certainly behoove them to continue to point out the fact that the production of their plant-based products has lower greenhouse gas emissions, reduced water consumption, and land requirements compared to traditional meat production methods in their marketing materials. Additionally, a growing more and more customers are starting to seek protein sources that do not involve animal slaughter. Beyond Meat's products resonate with this consumer segment because they are cruelty-free alternatives to traditional meat, and they promote a reduction in reliance on animal-derived products. Emphasizing the moral benefits of consuming plant-based foods and their commitment to decreasing the number of animals slaughtered for meat, Beyond Meat can effectively connect with and appeal to this conscientious segment of the market. According to Redfield & Wilton Strategies Research Team, “The reasons why individuals choose to be vegan, or vegetarian vary and often overlap with one another. When respondents who identify as vegan were asked about their main reasons for being vegan, 55% said they are vegan for environmental reasons. A further 44% of respondents said they are vegan for personal health reasons, while 39% said for religious reasons and 34% for ethical reasons. A quarter (26%) of respondents said they are vegan for taste preference reasons.” (Strategies, 2023). This type of data is important to leverage in marketing campaigns to achieve success. Beyond Meat has a strategic opportunity to leverage a third trend that is emerging, and that is to target younger generations as a distinct market segment. This demographic is routinely noted for their openness to trying new 2 | P a g e

culinary trends, and they too have a growing interest in plant-based diets and healthier processed food products. It is important for Beyond Meat to promote how their innovative offerings can provide these culinary experiences to this demographic. Beyond Meat is poised for expansion into markets such as China and India who have strong vegetarian cultures. To ensure effective segmentation in these new markets, Beyond Meat must spend significant energy and resources gaining a thorough understanding of local tastes and cultural considerations. Comprehending and aligning with local preferences is crucial for successful market penetration and growth. Beyond Meat must not only keep an eye on the trends mentioned above but must also maintain a focus on their traditional vegetarian and vegan market. These customers serve as advocates for plant-based products and were early adopters to this revolutionary product line. Additionally, targeting flexitarians, individuals who primarily follow a vegetarian diet but occasionally consume meat, presents a valuable opportunity. Positioning Beyond Meat products as a delicious and healthier alternative for occasional meat consumption can effectively resonate with this flexitarian segment, broadening the appeal of the brand. By focusing on these segmentation trends and traditional markets alike, Beyond Meat will be able to focus their marketing campaigns on those segments that are most likely to return the most profit. Shaping Consumer Behavior Beyond Meat, as a First-To-Industry leader, has an opportunity to shape consumer behaviors and preferences regarding eating plant-based meat. Their business is strategically positioned to enhance public understanding of the benefits of plant-based diets enumerated above by initiating a broad range of ‘educational’ initiatives. Utilizing all the platforms available to them, including social media, traditional print and digital advertisements, and partnerships with influencers will cast a wide net and allow them to educate a substantial portion of the population. One strategic measure Beyond Meat executes is increasing the prominence of their products in grocery stores by collaborating with the retailers to strategically position the products at meat counters rather than, or in addition to, the vegetarian section. This placement can demonstrate to customers that plant-based substitutes are a viable, convenient, and tasty way to meet their protein intake goals. Moreover, working with influencers and well-known individuals, and partnering with restaurants and fast-food franchises to incorporate Beyond Meat items on their menus, can further expand the reach of plant-based products and overall impact on customer buying behavior beyond restaurants. For example, if someone has a Beyond Burger at a high-end restaurant, or even a fast-food chain restaurant, they may be more likely to purchase that product at a grocery store to cook at home knowing they can recreate the taste and experience they had while dining out. To make plant-based products more affordable, Beyond Meat can and does continually evaluate their production process to find efficiencies and reduce production costs, therefore reducing retail prices. Lowering costs below traditional meat costs is an effective strategy to draw in a broader customer base. Additionally, Beyond Meat has a singular focus on constantly striving to enhance the flavor and texture of its plant-based meat. By continually evolving its product to be increasingly meat-like, customers who had been historically hesitant to try plant-based substitutes because of cost or taste may come around and not recognize the difference between traditional and plant-based options, especially if they are able to try them with low or no risk. To that end, holding sampling events at festivals, and other gatherings or retail locations allows potential customers the opportunity to try Beyond Meat products without any risk. These interactions with communities that support sustainable and plant-based lifestyles help to build trust in the product. Additionally, direct engagement, along with active participation in social media, neighborhood gatherings, and customer feedback channels, enables Beyond Meat to have their finger on the pulse of their customers. By actively listening to consumer feedback and adapting products and marketing to meet changing needs, Beyond Meat can influence consumer behavior, encouraging an even greater shift towards choosing plant-based meat substitutes. Competition and Brand Differentiation 3 | P a g e

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