Written Case 2- Beyond Meat in 2022

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University of Alabama *

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490

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Marketing

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Apr 3, 2024

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docx

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Alexa Escamilla Written Case 2: Beyond Meat in 2022 GBA 490 02/07/2023 1. Plant-based meat substitute products are growing at uncontrollable increasing levels, if a fad, one that doesn’t look like it’s going anywhere soon. These plant-based meat substitute products are growing in variety and options. Options both in selection and options of stores that these products are becoming available at. Though this is still a niche market, it is rapidly growing on where it is served, how, what type and what consumers want this type of product. I think the likeliness of a large percentage of consumers that will attempt to make the switch is high and growing. However, I think the overall percentage of consumers that will make the switch to wholly eating plant-based meat substitutes instead of animal meat is a much slimmer number, especially in the United States. 2. Threat of Substitution (Strong): As this industry continues to grow there are more companies that continue to develop their own versions of plant-based products. Since these are meatless products there becomes a limited amount of ingredients that companies can use in their meatless products which creates similar products in the market that begin to compete with their best version of similar products. Intensity of Rivalry (Strong): Competing in the meat substitution industry. They face rivalry with companies that maintain a household name such as Tyson, Cargill and JBS. JBS is the worlds largest meat supplier. Cargill is the worlds largest fresh poultry and beef supplier and Tyson, who in 2019 sold over 42 billion of products. This rivalry factor plays a large part in these companies household names and a greater one in revenue in the meatless foots market. This is a good thing for consumers as it allows variation in prices for a consumer to be able to take advantage of. Bargaining Power of Buyers (Moderate): Which is great for consumers in this industry because of minimal product variance due to the limited variations of ingredients and combinations of new products in the plant-based foods market. The bargaining power that the buyers have is an advantage to have access cheaper yet quality products from producers. Threat of New Entry ( Weak/Moderate): is a weaker force that Beyond Meat faces due to that similarity of products that was

previously mentioned. As discussed, the meatless products industry faces a limited ingredient list when creating new products. This factor limits a strong number of new products threats in the market. Bargaining Power of Suppliers (Weak): is also a weaker threat to Beyond Meat as they don’t have to agree to any long-term contracts with suppliers as meat companies would because ingredients of plant- based products are more readily available from vendors. If needed, Beyond Meat believes that they would be able to access their needs from other suppliers in the event that there is a halt in the supply chain. 3. They key success factors for Beyond Meat and the other makers of plant- based meat substitutes include branding and marketing, distribution and retail, sustainability presence, development, partnerships and expansion. 4. STRENGTHS : Brand Recognition: Beyond Meat has developed a strong brand identity, that associates them with sustainability and quality of their products. This brand recognition helps attract new consumers to the industry while expanding overall. Partnerships: The company has also considered partnerships with retail and restaurant chains to reach maximum customers. They have worked with reputed brands like KFC, McDonald's, Taco Bell, etcetera. It has provided them with the opportunity to reach more potential customers. These partnerships have also improved their brand recognition. Innovation: Beyond Meat is known for its plant-based products that mimic the taste and texture of real meat. They are innovative in technology and developing new products through research and development of the meatless foods industry. WEAKNESSES: Pricing: Higher pricing set by Beyond Meat products are generally than traditional meat products and some competing plant-based alternatives. This price premium could limit the company’s appeal among cost-conscious consumers. Product Diversity: Beyond Meat has only a scarce product diversity. Therefore, it can be a significant drawback for the company. This lack of variety prevents them from reaching a maximum number of customers looking for vegan substitutes for other animal-based products.

They are yet to release alternatives of seafood and lamb meat. On external suppliers for ingredients: Vulnerability: Beyond Meat is vulnerable to potential recalls of products as well as possibly facing negative health perceptions OPPORTUNITIES Market Expansion: The demand for plant-based meat alternatives is growing globally. However, Beyond Meat is very much dependent on the few regions for generating a significant part of its revenue. It makes them vulnerable to the economic conditions of these countries. They can target emerging markets in Asia and Africa for business expansion. Sustainability: Beyond Meat can further strengthen its commitment to sustainability by implementing more sustainable practices across its operations, such as reducing waste, conserving energy, and promoting responsible sourcing. These initiatives can improve the company’s brand image and appeal to those consumers that value environmentally consciousness. Strategic Collaborations: Forming new partnerships with food service providers, retailers, and other industry stakeholders can help Beyond Meat expand its distribution channels and reach a broader consumer base. THREATS Competitive Market: Growing competition from new entrants and existing competitors t he food processing market is very competitive. This competition could lead to price wars between existing competitors as well as reduced market share. Supply Risks: Beyond Meat’s reliance on a limited range of protein sources and suppliers could make it vulnerable to supply chain disruptions, price fluctuations, or ingredient shortages. Developing a more diversified supply chain and sourcing strategy is crucial for mitigating these risks. Consumer Perception: The perception of plant-based meat alternatives as highly processed or less healthy than traditional meat products could impact consumer acceptance. Addressing these concerns through substantial marketing and product innovation is crucial for Beyond Meat’s long-term success. After completing my SWOT analysis it is displayed that Beyond Meats circumstances in 2022 are attractive and provide a strong brand presence. With new products and increasing demand they have a positive path ahead in the market. However, they could see potential challenges from competition in the smaller industry as well as external factors of suppliers

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