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Table of Contents
Executive Summary………………………………………………...………………………………………..…. 3
Market Overview…………………………………………………………………...……………....…..………..3
Customer Analysis………………....……………………………………………....…………………………. 3-4
Competitor Analysis……………...……………………………….…………….……………………………..4-5
Market Mix …………………………………….……………...……………………………………………... 5-8
I. Product Analysis……………….…………...……………………………………………………….5
II. Promotion Analysis ..……………………………………………..………………………………5-6
III. Placement Analysis………………………….……………………...……………………………....6
Strategy………………………..……………….……………………………….………………………………..7
Appendix………………………………………………………..…………………………………………….8-16
I. Focus Group Script……………………………………………………....……………………...14-15
References …………………………………………………………………………………………………….. 16
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EXECUTIVE SUMMARY
A decade ago, the idea of plant-based meat was considered impossible. With revolutionary technology
and inspiring individuals, what was once considered an obscure idea is now the foundation of an emerging
disruptor of thousands of years of human history in meat consumption. In the upcoming years, plant-based
meat is projected to be a multi-billion dollar industry with Impossible Foods as one of the leading competitors.
Having reached a valuation of $2 billion, Impossible Foods is rapidly growing, but has reached difficulties in
their marketing strategies towards their target demographic - college students. A lack of exposure and
education of their product and mission leaves many potential consumers to either dismiss or spread opinions
that are perceived as facts to other uneducated consumers. We see this as an opportunity to attract those
individuals and inform them of the Impossible Foods concept, and through that, strengthen Impossible Foods’
brand to reimagine the traditional meat industry and help the planet while doing so. This report outlines an
analysis of the current markets and recommends strategies to engage the younger age group to incorporate
Impossible Foods’ products into their daily lives for generations to come.
MARKET OVERVIEW
The participants in our focus groups were segmented from a population of college-going students, of
which 97% were meat eaters as indicated by our survey (Figure 1). There was a common consensus amongst
the interviewees that the first thought that comes to mind when hearing the Impossible Burger is ‘nutritious’.
An important question we asked in our survey was whether college students would be willing to purchase
Impossible Burgers after they learned more about it. The results showed that 50% would and 39% were unsure
(Figure 2). This goes to show that although there are issues about the high price of the Impossible Burger like
Sophie mentioned, consumers see value in the product and are willing to spend the money. The next question
of our survey asks the college students who answered yes and unsure why they would or are considering to
buy the product. The results indicate that the top 3 reasons for purchasing the Impossible Burger are
nutrition/health reasons, taste, and sustainable food production (Figure 3). These reasons directly align with the
strategy of Impossible Foods mentioned by Sophie. Based on a survey of 2,000 respondents who were 18+
years old it was found that 61% of them believed that whole plant foods are healthier than processed meat
substitutes (Mintel, Figure 4). This data coincides with the results of our survey which indicate that 54.3% of
college students would purchase an Impossible Burger because they consider it to be healthy (Figure 3). If
Impossible Foods creates a strong value proposition around the traits which make a consumer want to purchase
the product and as well as generate awareness by tying up with school cafeterias sales would increase
significantly.
CUSTOMER ANALYSIS
After surveying 100 college students from the University of California, Irvine/local area and hosting
two focus groups about their thoughts on the Impossible Foods and their products, we were able to gain insight
on the consumers’ beliefs and habits and segment them based on demographics, such as age, income status,
and dietary habits. Our report shows that 54.5% of the respondents stated that they have a weekly grocery
budget between $50-150 (Figure 5) and a majority only eats around 1-5 times a week (Figure 14). According
to Sophie Troyka, Impossible Foods target demographic is 18-25 years old college students, as their research
showed that these individuals are the most environmentally conscience and adventurous group. Based on our
focus groups, when potential customers hear of Impossible Foods, some of the initial thoughts that come to
their minds center around the idea of a “healthy, plant-based, meat alternative.” These potential customers
view Impossible Foods’ product as a healthier substitute for animal-based meat, but are also mainly concerned
with the taste and the price differentiation between the two. The current consumers all seem to have enjoyed
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the taste of the Impossible Burger and are willing to make a change in their diet, but are fixated with the cost
and the accessibility of the product. Both types of customers like the idea of being able to reduce their carbon
footprint by choosing to incorporate plant-based meats into their eating habits, however, only 25% of
respondents from our focus group admitted to purchasing the product after the session.
According to the research we gained from our focus groups, the purchasing habits of animal-based
meat consumers stem from life-long experiences. Many of their cultural foods that they grew up eating contain
specific animal-based meat. Our target demographic are more inclined to follow these traditional recipes, as
exploring other unique ingredients is not one of their main priorities as getting comfortable with the kitchen.
There were also concerns regarding Impossible Foods’ ingredients, and more specifically, what kind of plants
are being used to make the meat. This shows that there is a great portion of consumers that are not educated in
Impossible Foods’ products as well as the plant-based meat industry. Our target demographic are on an
extremely tight budget, so it is not practical for them to be paying 8-13 dollars for a burger that does not
include any sides or a drink (Figure 5). Current consumers are satisfied with the taste of the burger, as it does
not differ much from an animal-based meat burger, although like aforementioned, they are not happy emptying
their pockets each time they go to buy it. 56% of the people we surveyed responded showing interest on
Impossible Foods’ plant-based meat (Figure 13). Educating and creating awareness about Impossible Foods’
unique product to a curious consumer base is the key to addressing the customer decision-making and how
they analyze their three factors.
COMPETITOR ANALYSIS
The main competitors of Impossible Foods’ is animal-based meat industry, as Sophie Troyka
mentioned, and Beyond Meat, which had an annual revenue of about $88 million (Beyond Meat). According to
their website, Beyond Meat has characterize themselves as “the world’s first plant-based burger that looks,
cooks, and satisfies like beef,” which aligns with the Hero Archetype (Beyond Meat). Beyond Meat’s hero
archetype is personified through pursuing to achieve the noble mission of improving the environment through
reducing the amount of animal consumption. In addition to its environmental impact, Beyond Meat is also soy
free, non-GMO, and, at the moment, it is more accessible than Impossible Foods. For example, when asking
the people in our focus group, more of them were aware of Beyond Meat rather than Impossible Foods because
of advertisements and popularity among their favorite restaurants and celebrities. Some even associated
Impossible Foods with Beyond Meat because they felt that there was no significant difference. However,
Impossible Foods and Beyond Meat are majorly different in many ways. Firstly, Impossible Foods’ products
are both halal and kosher. They also contains a patented ingredient called “heme,” which is a chemical
compound that is the basis of the meaty flavor of all animal-based meat. Their plant-based meat is made of soy
compared to its pea-based meat counterpart at Beyond Meat, but is essential as the “heme” is derived from the
soy plant. Though similar in mission statement, their products could not be any more different from each other.
On the digital platform, Beyond Meat has reached 843K followers on Instagram while Impossible
Foods has reached only 239K (Figure 7). Both of their presence on Facebook is relative to that on Instagram
with Beyond Meat leading more engagement than Impossible Foods. According to CNET, Beyond Meat can
be found in large chain restaurants and in many grocery stores, unlike Impossible Foods which can only be
bought in Gelson stores and several high-end restaurants (CNET). Beyond Meat currently advertises a
16-ounce block for $8.99 while Impossible Foods sells a 12-ounce block for $8.99 (Business Source
Complete). This cost-quantity difference for our target consumers is very significant as price is very influential
when purchasing meat products.
Not only is Impossible Foods competing with a huge plant-based meat company, but also the entire
animal-based meat industry which had yearly revenue of $946 billion worldwide in 2018 (Statista). Our report
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will focus more on the plant-based meat industry as controlling the messaging statement of plant-based meat
industry will control the future of how consumers view plant-based meats.
MARKET MIX
Product Analysis
Impossible Foods has trademark the word ‘Impossible’ and are not allowed to use the word ‘meat’ in
their product name due to legal issues of the product not actually being considered meat (Sophie Troyka,
2019). This restricts the company from making consumers aware that the plant-based meat they are selling can
be used to make a variety of dishes such as tacos, dumplings, and meatballs. Without meat in the product’s
name, Impossible Foods is only known for their widely marketed Impossible Burger. Regardless of the fact
that it is sold in retail as ground meat, there is a brand association of Impossible Foods being only in the form
of a meat patty. On the other hand, Beyond Meat has not advocated using their plant-based meat in a specific
manner such as a burger. Selling their meat in a diverse manner, such as ready to go meat crumbles for tacos
and spaghetti, is a major reason why it is predicted to have 31% of the share in the plant-based industry by
2028 (Figure 8) (Fitzgerald, 2018).
Impossible Foods does not have a picture of their finished, cooked, product on the front of their
ground plant-based meat packaging. It is instead placed in the back and is relatively small compared to the
overall design of their label (Figure 9). The front of the packet sold in grocery stores says in large bold font
“BURGER MADE FROM PLANTS” although the product itself is ground meat and not a burger patty.
Furthermore, on the back of the packet there is a description saying “burgers, tacos, lasagna..use like ground
beef” in extremely small text. The limitations that Impossible Foods put on themselves hinder consumers from
utilizing the versatility that Sophie Tryoka emphasize during her information session. How are consumers able
to visualize the potential that comes with incorporating plant-based meat if the producers of it do not even?
This is a missed opportunity as packaging is key in the initial perception of a product (Lau-Gesk, 2019).
Another aspect of their packaging is their excessive incongruity that differentiates them from any other meat
products in retail. Based on our visits to the stores such as Albertsons, it seems as if one of their main
competitors, Beyond Meat, is following the theory of Moderate Incongruity to differentiate their product while
making the customer comfortable about the purchase as well. On the other hand, Impossible Foods’ product
stands out quite a bit in the meat section due to its teal color (Figure 10).
Promotion Analysis
Impossible Foods centers their mission statement around creating a new food consumption ecosystem
while Beyond Meat wants to disrupt the current market by offering a unique solution to protein. The slight
difference in each company’s messages heavily affects their positioning strategy. Impossible Foods’ Instagram
bio states that they make delicious meat from plants, however their competitor, Beyond Meat, states in their
bio their target audience: “meat-eaters” (Figure 14). As far as content goes, we see a lot of graphical images
from Impossible Foods, whereas Beyond Meat uses more physical pictures of what their cooked product looks
like from a more honest and consumer-point of view. Impossible’s Instagram is extremely “hip”, and utilizes a
lot of vibrant colors (Figure 7). Beyond Meat’s Instagram seems to be more product-focused, with pictures of
the product in nearly every post, and doesn’t seem too focused on the aesthetics. They do highlight a lot of
their partnership which applies to how accessible they are to the average consumer. The other main difference
between the two is Beyond’ Meat’s use of celebrity endorsements, whereas Impossible relies more heavily on
word-of-mouth endorsements.
In their promotional material Impossible Foods is always sure to include certain facts about their
product, such as the fact that the burger is made from plants, has plenty of protein, doesn’t include any animal
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hormones or antibiotics, and has zero cholesterol. Impossible Foods likes to position themselves as an
environmentally-friendly product that can be cooked the same way as any ground animal-based meat.
However, most of our target demographic follow the peripheral route as indicated by our research. Consumers
focus on processing surface features such as communticator’s attractiveness and tend to not make a fully
informed decision while purchasing a product (Lau-Gesk, 2019). The survey of our target demographic
indicate that 54.3% of them would want to try Impossible Foods because it is seemingly healthy and nutritious
(Figure 3). However, the company does not promote its product as a healthy or healthier than animal-based
meat, henceforth diminishing their strength in the Affective stage of the Hierarchy model as more consumers
realize that they were misled by false assumptions. We recommend Impossible Foods to promote their special
ingredient “heme” more while emphasizing on understanding the customer base rather than having the
customer base understand them. If Impossible Foods wants more animal-based meat consumers to accept
plant-based meat as another option to cook with, they need to convince these consumers that their plant-based
meat is just as good as animal-based meat while showing them helping the world as well.
The most important tool, by far, that Impossible needs to utilize in order to market to their target
demographic is social media because 34.3% heard about their brand through this medium (Figure 11). The
HuffPost reports that 98% of college-aged students use social media, furthering the point that Impossible
Foods should take advantage of sites such as Facebook, Twitter, Instagram, Snapchat, and even TikTok.
Impossible can create a one liner that can be used as a trending hashtag on social media. This hashtag/phrase
will generate awareness through word of mouth and spark curiosity. This will be an effective strategy as 43.4%
of our survey respondents heard about Impossible Foods through word of mouth (Figure 11).
Placement Analysis
At the moment, Impossible Food distributes their product in only high-end grocery stores and a couple
of well known restaurants. They have built their brand image and marketed their product as delicious authentic
meat. After customers are aware of their product, they move to the next step in their customer journey which is
the retail distribution channels. Gelson’s markets the only retail store that distributes their product. We went to
Gelson’s to investigate Impossible Foods’ products display and pricing and found that their products are
located in the meat aisle as a 340g pack of the Impossible ground plant-based meat for $8.99 (Figure 9). Based
on our research, Impossible Food displays their product in the meat aisle which exceeds their distribution
goals. Since the product is besides other meats in the aisle, consumers will recognize the Impossible Burger
product as a type of meat. The consequence of high pricing is a negative impact on the sales and consumer
awareness. As mentioned by Sophia Troyka, their business goal is to replace animal meat products with food
production technology by 2035, which means they need to add more distribution channels to fulfill their
business goals. Impossible Foods has a goal of distributing their plant-based product everywhere in the global
market. At the moment, there is a negative impact for the Impossible Foods distribution method since
customers cannot access their product as needed and the price is higher than their competitors.
On the other hand, Beyond Meat targets fast food restaurants and retail stores which lets them grow
substantially since it became available in most places. To compete with Beyond Meat we recommend that
Impossible Foods partner up with University of California dining halls who have a similar mission of emitting
0 greenhouse gases by the end of 2025 (Figure 12). We spoke to the supervisor of UCI dining services and
they told us that they are considering introducing plant based burgers in the cafeterias.
6
STRATEGY
In order to market Impossible Foods to their target demographic, college students, the company must
expose students to their product in a stage where students are easily susceptible to change. Many college
students at UCI begin with a meal plan their freshman year. “More than 14,000 students choose to live on
campus”, and most of those students have entered and eaten in a UCI dining hall during their first year of
college (UC Regents, 2019). The cost of living in a dorm with a meal plan is roughly $14,297 with a triple
room (UC Regents, 2019). 18.5% of the survey respondents and all the focus group participants agreed the
retail price of an average Impossible Foods’ product is too high for a student (Figure 3). This problem is
eliminated by our strategy as meal plans are compulsory in order to be eligible for living in dorms. By
partnering with UCI’s eateries, the 7 day all access meal plan may increase from $1,940 to $1,999. Since
parents generally pay for housing during their child’s freshman year the high price inhibitor for students is
avoided. Based on interviews of 10 parents, 90% would not question the increase in price as their main
concern is their child getting nutritious food. Not only would this generate revenue for Impossible Foods and
offer exposure, but it would also increase the chance of gaining an estimated 14,000 consumers as nearly twice
as many people said they would definitely buy their product after tasting their plant-based meat (Sophie
Troyka). Thus, placing Impossible Foods plant-based meat in university dining halls would positively expose
students to their product early on in their college career without affecting the mental toll of increased cost.
UCI dining often proposes many different and unique ways to utilize their food for their students. For
example, dining halls could have Impossible Foods’ plant-based meat as tacos or spaghetti which would
prompt students to see it as an ingredient and potentially use it in that manner in the future. Students would
also be able to recognize the product in grocery stores when they are ready to buy during their second year and
become more inclined to buy it as it is not that foreign to them. Our main purpose for inputting Impossible
Foods into the dining halls is to have students shift into plant-based meat before they begin buying groceries
on their own during their 2nd year. Once the student has entered their 2nd year of college, they will recognize
the plant-based meat product and purchase it but may have difficulty actually cooking it. This is where the
Impossible Food College Meals Templates would come in handy (Figure 6). As mentioned previously in our
competitive analysis, these templates would be personalized for college students. They would help students
make several meals by easily explaining the steps and process with additional images for students to follow.
Another aspect to address the price range of college students, demand for quick and easy meals, and
fun eating experiences is to partner with popular frozen foods companies that many college students purchase
regularly. According to our focus group, when asked about their interest in purchasing an easily microwavable
product that contains plant-based meat, there was a consensus that said yes. One example of a frozen food that
is popular among consumers in the U.S. is the Hot Pocket, which demographic matches the one the Impossible
Foods is targeting. The main consumers are under the age of ​24​ and also a budget that is less than $20,000,
much like college students interested in Impossible Foods’ product (Numerator). Approximately ​12.26 million
Americans consume at least 5 packs of Hot Pocket (Winters). Though a partnership is recommended for a
more quick results, the long term benefit route would be to create a unique brand underneath Impossible
Foods, similarly to Nestle’s Hot Pockets. The business model would be the same and it will help with
normalizing plant-based snacks and incorporate them into the average consumer’s diet. Another
recommendation is to utilize the worth-of-mouth marketing strategy and mimic the popularity of spam musubi
by creating a simple, easy, on-the-go version that incorporates Impossible Foods’ plant-based meat. Our
demographic strives to eat easy, fast, and accessible foods. By normalizing an easy snack with Impossible
Foods’ products, there will be more servings made and more people exposed to our product.
7
APPENDIX
Figure 1: Primary research survey Question - What do you identify as?
Figure 2: Primary research survey question - After learning more about Impossible Foods would you
purchase it?
Figure 3: Primary research survey question - Why would you be interested in buying the Impossible
Burger?
8
Figure 4: Select opinions on protein – Any agree (net), by age, February 2019
Base: 2,000 internet users aged 18+ (Mintel)
Figure 5: Primary research survey question: What is your approximate monthly grocery budget?
9
Figure 6: Impossible Burger College Meal Template Example
Figure 7: Impossible Foods and Beyond Meat Instagram account
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Figure 8: Beyond Meat diverse plant based products
Figure 9: Impossible Foods packaging
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Figure 10
Impossible Foods - Incongruent ​Moderate Incongruence - Beyond Meat
Figure 11: How did you hear about the Impossible Burger?
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Figure 12: University of California sustainability mission
Figure 13: Primary research survey question - Are you interested in the products or learning more
about it?
Figure 14: Primary Research Survey Question - How often do you eat out per week?
13
Focus Group Script
SCRIPT FOR FOCUS GROUP
Welcome to our focus group. We are excited and thankful that you were able to make it today.
(INSTRUCTIONS)
Let’s start with a short introduction from each of you. Please share your name, major, hometown, and
anything else you’d like to share.
Thank you.
(INSTRUCTIONS)
Today we are going to be asking all of you some questions centered around our topic of Impossible Foods
and how they can improve their marketing strategies towards college students. Without giving you any
further information we will begin with some introductory questions about your existing knowledge of the
company. To help spur thought, we will ask you the following questions, but feel free to express whatever
comes to mind. Often what you say may spark another thought for someone else.
The questions are:
1. What thoughts or phrases comes to mind when you hear the name Impossible Foods?
2. What type of outlet do you use to try new things?
3. Do you tend to research brands and their mission statement before purchasing a product?
Thank you. Now I am going to read an excerpt to you all that offers some background information about the
company.
Impossible Foods makes delicious, nutritious meat and dairy products from plants—with a much smaller
environmental footprint than meat from animals. We’re on a mission to restore biodiversity and reduce the
impact of climate change by transforming the global food system.
The ImpossibleTM Burger debuted in 2016 at Momofuku Nishi, the famed New York City restaurant of
Chef David Chang. Over 15,000 restaurants in the United States now serve the ImpossibleTM Burger—from
award-winning restaurants to family-owned diners, and one of the largest global fast-food chains, Burger
King. Last year, Impossible Foods launched in Asia and is now served in over 320 restaurants in Hong
Kong, Singapore, and Macau. In September 2019, Impossible Foods launched in grocery stores for the first
time, starting with Gelson’s in Southern California.
14
Impossible Foods’ mission is to make our global food system truly sustainable. Compared to meat
production from animals, Impossible Burger production uses 96% less land, 87% less water, and produces
89% fewer greenhouse gas emissions. The soy in the Impossible Burger is a source of high quality protein
and dietary fiber. It’s also been screened for over 300 pesticide residues — none, including glyphosate,
have been detected. Our goal is to celebrate the love of meat by making it in a sustainable,
environmentally-friendly, and better way.
Does anyone have any questions?
So now that you’ve heard this, I want to get back to our topic and ask additional questions about your beliefs
and habits.
The questions are:
1. What are some interests or concerns you may have regarding plant-based meat?
2. (if they do) What is the main motivation behind your meat consumption?
3. Would you be willing to substitute a meat burger patty with a plant based one in order to save the
environment?
4. What are some brands you associate with this product?
5. After this focus group, will you be going to your local grocery store to buy an Impossible Foods
product?
Thank you very much for your valuable input that you provided tonight.
15
Works Cited
“2019-2020 Housing Rates.” ​2019-20 Housing Rates​, 2019, housing.uci.edu/rates/Rates.html.
“Beyond Burger™.” ​Beyond Meat - The Future of Protein™​,
www.beyondmeat.com/products/the-beyond-burger/​.
Beyond Meat, Inc. (2019, April). ​Form 10-K​. Retrieved from the Securities and Exchange Commission
https://www.sec.gov/Archives/edgar/data/1655210/000162828019004543/beyondmeats-1a5.htm
Capritto, Amanda. “Impossible Burger vs. Beyond Meat Burger: Taste, Ingredients and Availability,
Compared.” ​CNET​, CNET, 25 Oct. 2019,
www.cnet.com/news/beyond-meat-vs-impossible-burger-whats-the-difference/.
“Find Your Anteater Spirit in Student Housing!” ​Housing & Dining | UCI Admissions​,
www.admissions.uci.edu/discover/student-life/housing-dining.php​.
Griffin, Riley. “Social Media Is Changing How College Students Deal With Mental Health, For Better Or
Worse.” ​HuffPost​, HuffPost, 22 July 2015,
https://www.huffpost.com/entry/social-media-college-mental-health_n_55ae6649e4b08f57d5d28845
“Hot Pockets Demographics and Consumer Insights.” Numerator,
https://snapshot.numerator.com/brand/hot_pockets.
“Mission Impossible.” Home - Impossible Foods, Impossible Foods Inc., https://impossiblefoods.com/.
Peters, Bill. “Beyond Meat Keeps Tumbling As Offering Prices, Burger King To Launch Impossible
Whopper.” ​Business Source Complete​, 2019,
web.b.ebscohost.com/ehost/detail/detail?vid=4&sid=e7a50179-fa34-4193-80d1-535336f8b6bf%40pdc-v-sess
mgr03&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#AN=137875528&db
“Plant Based Proteins.” Mintel Academic, Lightspeed/Mintel, May 2019,
academic.mintel.com/display/956252/.
Savaskan, Devin. “Meat Markets in the US.” IBISWorld Industry Report 44521, May 2019.
https://clients1.ibisworld.com/reports/us/industry/default.aspx?entid=1043
Tedder, Sean. “Call Regarding Impossible Foods at UCI.” 2019.
Winters, Simon. “U.S. population: How many packs of Hot Pockets frozen hot snacks have you eaten in the
last 30 days?” ​Statista​, July 2019.
https://www.statista.com/statistics/287217/amount-hot-pockets-frozen-hot-snacks-used-in-the-last-days/
16

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Impossible Foods Marketing Project

  • 1. 1
  • 2. Table of Contents Executive Summary………………………………………………...………………………………………..…. 3 Market Overview…………………………………………………………………...……………....…..………..3 Customer Analysis………………....……………………………………………....…………………………. 3-4 Competitor Analysis……………...……………………………….…………….……………………………..4-5 Market Mix …………………………………….……………...……………………………………………... 5-8 I. Product Analysis……………….…………...……………………………………………………….5 II. Promotion Analysis ..……………………………………………..………………………………5-6 III. Placement Analysis………………………….……………………...……………………………....6 Strategy………………………..……………….……………………………….………………………………..7 Appendix………………………………………………………..…………………………………………….8-16 I. Focus Group Script……………………………………………………....……………………...14-15 References …………………………………………………………………………………………………….. 16 2
  • 3. EXECUTIVE SUMMARY A decade ago, the idea of plant-based meat was considered impossible. With revolutionary technology and inspiring individuals, what was once considered an obscure idea is now the foundation of an emerging disruptor of thousands of years of human history in meat consumption. In the upcoming years, plant-based meat is projected to be a multi-billion dollar industry with Impossible Foods as one of the leading competitors. Having reached a valuation of $2 billion, Impossible Foods is rapidly growing, but has reached difficulties in their marketing strategies towards their target demographic - college students. A lack of exposure and education of their product and mission leaves many potential consumers to either dismiss or spread opinions that are perceived as facts to other uneducated consumers. We see this as an opportunity to attract those individuals and inform them of the Impossible Foods concept, and through that, strengthen Impossible Foods’ brand to reimagine the traditional meat industry and help the planet while doing so. This report outlines an analysis of the current markets and recommends strategies to engage the younger age group to incorporate Impossible Foods’ products into their daily lives for generations to come. MARKET OVERVIEW The participants in our focus groups were segmented from a population of college-going students, of which 97% were meat eaters as indicated by our survey (Figure 1). There was a common consensus amongst the interviewees that the first thought that comes to mind when hearing the Impossible Burger is ‘nutritious’. An important question we asked in our survey was whether college students would be willing to purchase Impossible Burgers after they learned more about it. The results showed that 50% would and 39% were unsure (Figure 2). This goes to show that although there are issues about the high price of the Impossible Burger like Sophie mentioned, consumers see value in the product and are willing to spend the money. The next question of our survey asks the college students who answered yes and unsure why they would or are considering to buy the product. The results indicate that the top 3 reasons for purchasing the Impossible Burger are nutrition/health reasons, taste, and sustainable food production (Figure 3). These reasons directly align with the strategy of Impossible Foods mentioned by Sophie. Based on a survey of 2,000 respondents who were 18+ years old it was found that 61% of them believed that whole plant foods are healthier than processed meat substitutes (Mintel, Figure 4). This data coincides with the results of our survey which indicate that 54.3% of college students would purchase an Impossible Burger because they consider it to be healthy (Figure 3). If Impossible Foods creates a strong value proposition around the traits which make a consumer want to purchase the product and as well as generate awareness by tying up with school cafeterias sales would increase significantly. CUSTOMER ANALYSIS After surveying 100 college students from the University of California, Irvine/local area and hosting two focus groups about their thoughts on the Impossible Foods and their products, we were able to gain insight on the consumers’ beliefs and habits and segment them based on demographics, such as age, income status, and dietary habits. Our report shows that 54.5% of the respondents stated that they have a weekly grocery budget between $50-150 (Figure 5) and a majority only eats around 1-5 times a week (Figure 14). According to Sophie Troyka, Impossible Foods target demographic is 18-25 years old college students, as their research showed that these individuals are the most environmentally conscience and adventurous group. Based on our focus groups, when potential customers hear of Impossible Foods, some of the initial thoughts that come to their minds center around the idea of a “healthy, plant-based, meat alternative.” These potential customers view Impossible Foods’ product as a healthier substitute for animal-based meat, but are also mainly concerned with the taste and the price differentiation between the two. The current consumers all seem to have enjoyed 3
  • 4. the taste of the Impossible Burger and are willing to make a change in their diet, but are fixated with the cost and the accessibility of the product. Both types of customers like the idea of being able to reduce their carbon footprint by choosing to incorporate plant-based meats into their eating habits, however, only 25% of respondents from our focus group admitted to purchasing the product after the session. According to the research we gained from our focus groups, the purchasing habits of animal-based meat consumers stem from life-long experiences. Many of their cultural foods that they grew up eating contain specific animal-based meat. Our target demographic are more inclined to follow these traditional recipes, as exploring other unique ingredients is not one of their main priorities as getting comfortable with the kitchen. There were also concerns regarding Impossible Foods’ ingredients, and more specifically, what kind of plants are being used to make the meat. This shows that there is a great portion of consumers that are not educated in Impossible Foods’ products as well as the plant-based meat industry. Our target demographic are on an extremely tight budget, so it is not practical for them to be paying 8-13 dollars for a burger that does not include any sides or a drink (Figure 5). Current consumers are satisfied with the taste of the burger, as it does not differ much from an animal-based meat burger, although like aforementioned, they are not happy emptying their pockets each time they go to buy it. 56% of the people we surveyed responded showing interest on Impossible Foods’ plant-based meat (Figure 13). Educating and creating awareness about Impossible Foods’ unique product to a curious consumer base is the key to addressing the customer decision-making and how they analyze their three factors. COMPETITOR ANALYSIS The main competitors of Impossible Foods’ is animal-based meat industry, as Sophie Troyka mentioned, and Beyond Meat, which had an annual revenue of about $88 million (Beyond Meat). According to their website, Beyond Meat has characterize themselves as “the world’s first plant-based burger that looks, cooks, and satisfies like beef,” which aligns with the Hero Archetype (Beyond Meat). Beyond Meat’s hero archetype is personified through pursuing to achieve the noble mission of improving the environment through reducing the amount of animal consumption. In addition to its environmental impact, Beyond Meat is also soy free, non-GMO, and, at the moment, it is more accessible than Impossible Foods. For example, when asking the people in our focus group, more of them were aware of Beyond Meat rather than Impossible Foods because of advertisements and popularity among their favorite restaurants and celebrities. Some even associated Impossible Foods with Beyond Meat because they felt that there was no significant difference. However, Impossible Foods and Beyond Meat are majorly different in many ways. Firstly, Impossible Foods’ products are both halal and kosher. They also contains a patented ingredient called “heme,” which is a chemical compound that is the basis of the meaty flavor of all animal-based meat. Their plant-based meat is made of soy compared to its pea-based meat counterpart at Beyond Meat, but is essential as the “heme” is derived from the soy plant. Though similar in mission statement, their products could not be any more different from each other. On the digital platform, Beyond Meat has reached 843K followers on Instagram while Impossible Foods has reached only 239K (Figure 7). Both of their presence on Facebook is relative to that on Instagram with Beyond Meat leading more engagement than Impossible Foods. According to CNET, Beyond Meat can be found in large chain restaurants and in many grocery stores, unlike Impossible Foods which can only be bought in Gelson stores and several high-end restaurants (CNET). Beyond Meat currently advertises a 16-ounce block for $8.99 while Impossible Foods sells a 12-ounce block for $8.99 (Business Source Complete). This cost-quantity difference for our target consumers is very significant as price is very influential when purchasing meat products. Not only is Impossible Foods competing with a huge plant-based meat company, but also the entire animal-based meat industry which had yearly revenue of $946 billion worldwide in 2018 (Statista). Our report 4
  • 5. will focus more on the plant-based meat industry as controlling the messaging statement of plant-based meat industry will control the future of how consumers view plant-based meats. MARKET MIX Product Analysis Impossible Foods has trademark the word ‘Impossible’ and are not allowed to use the word ‘meat’ in their product name due to legal issues of the product not actually being considered meat (Sophie Troyka, 2019). This restricts the company from making consumers aware that the plant-based meat they are selling can be used to make a variety of dishes such as tacos, dumplings, and meatballs. Without meat in the product’s name, Impossible Foods is only known for their widely marketed Impossible Burger. Regardless of the fact that it is sold in retail as ground meat, there is a brand association of Impossible Foods being only in the form of a meat patty. On the other hand, Beyond Meat has not advocated using their plant-based meat in a specific manner such as a burger. Selling their meat in a diverse manner, such as ready to go meat crumbles for tacos and spaghetti, is a major reason why it is predicted to have 31% of the share in the plant-based industry by 2028 (Figure 8) (Fitzgerald, 2018). Impossible Foods does not have a picture of their finished, cooked, product on the front of their ground plant-based meat packaging. It is instead placed in the back and is relatively small compared to the overall design of their label (Figure 9). The front of the packet sold in grocery stores says in large bold font “BURGER MADE FROM PLANTS” although the product itself is ground meat and not a burger patty. Furthermore, on the back of the packet there is a description saying “burgers, tacos, lasagna..use like ground beef” in extremely small text. The limitations that Impossible Foods put on themselves hinder consumers from utilizing the versatility that Sophie Tryoka emphasize during her information session. How are consumers able to visualize the potential that comes with incorporating plant-based meat if the producers of it do not even? This is a missed opportunity as packaging is key in the initial perception of a product (Lau-Gesk, 2019). Another aspect of their packaging is their excessive incongruity that differentiates them from any other meat products in retail. Based on our visits to the stores such as Albertsons, it seems as if one of their main competitors, Beyond Meat, is following the theory of Moderate Incongruity to differentiate their product while making the customer comfortable about the purchase as well. On the other hand, Impossible Foods’ product stands out quite a bit in the meat section due to its teal color (Figure 10). Promotion Analysis Impossible Foods centers their mission statement around creating a new food consumption ecosystem while Beyond Meat wants to disrupt the current market by offering a unique solution to protein. The slight difference in each company’s messages heavily affects their positioning strategy. Impossible Foods’ Instagram bio states that they make delicious meat from plants, however their competitor, Beyond Meat, states in their bio their target audience: “meat-eaters” (Figure 14). As far as content goes, we see a lot of graphical images from Impossible Foods, whereas Beyond Meat uses more physical pictures of what their cooked product looks like from a more honest and consumer-point of view. Impossible’s Instagram is extremely “hip”, and utilizes a lot of vibrant colors (Figure 7). Beyond Meat’s Instagram seems to be more product-focused, with pictures of the product in nearly every post, and doesn’t seem too focused on the aesthetics. They do highlight a lot of their partnership which applies to how accessible they are to the average consumer. The other main difference between the two is Beyond’ Meat’s use of celebrity endorsements, whereas Impossible relies more heavily on word-of-mouth endorsements. In their promotional material Impossible Foods is always sure to include certain facts about their product, such as the fact that the burger is made from plants, has plenty of protein, doesn’t include any animal 5
  • 6. hormones or antibiotics, and has zero cholesterol. Impossible Foods likes to position themselves as an environmentally-friendly product that can be cooked the same way as any ground animal-based meat. However, most of our target demographic follow the peripheral route as indicated by our research. Consumers focus on processing surface features such as communticator’s attractiveness and tend to not make a fully informed decision while purchasing a product (Lau-Gesk, 2019). The survey of our target demographic indicate that 54.3% of them would want to try Impossible Foods because it is seemingly healthy and nutritious (Figure 3). However, the company does not promote its product as a healthy or healthier than animal-based meat, henceforth diminishing their strength in the Affective stage of the Hierarchy model as more consumers realize that they were misled by false assumptions. We recommend Impossible Foods to promote their special ingredient “heme” more while emphasizing on understanding the customer base rather than having the customer base understand them. If Impossible Foods wants more animal-based meat consumers to accept plant-based meat as another option to cook with, they need to convince these consumers that their plant-based meat is just as good as animal-based meat while showing them helping the world as well. The most important tool, by far, that Impossible needs to utilize in order to market to their target demographic is social media because 34.3% heard about their brand through this medium (Figure 11). The HuffPost reports that 98% of college-aged students use social media, furthering the point that Impossible Foods should take advantage of sites such as Facebook, Twitter, Instagram, Snapchat, and even TikTok. Impossible can create a one liner that can be used as a trending hashtag on social media. This hashtag/phrase will generate awareness through word of mouth and spark curiosity. This will be an effective strategy as 43.4% of our survey respondents heard about Impossible Foods through word of mouth (Figure 11). Placement Analysis At the moment, Impossible Food distributes their product in only high-end grocery stores and a couple of well known restaurants. They have built their brand image and marketed their product as delicious authentic meat. After customers are aware of their product, they move to the next step in their customer journey which is the retail distribution channels. Gelson’s markets the only retail store that distributes their product. We went to Gelson’s to investigate Impossible Foods’ products display and pricing and found that their products are located in the meat aisle as a 340g pack of the Impossible ground plant-based meat for $8.99 (Figure 9). Based on our research, Impossible Food displays their product in the meat aisle which exceeds their distribution goals. Since the product is besides other meats in the aisle, consumers will recognize the Impossible Burger product as a type of meat. The consequence of high pricing is a negative impact on the sales and consumer awareness. As mentioned by Sophia Troyka, their business goal is to replace animal meat products with food production technology by 2035, which means they need to add more distribution channels to fulfill their business goals. Impossible Foods has a goal of distributing their plant-based product everywhere in the global market. At the moment, there is a negative impact for the Impossible Foods distribution method since customers cannot access their product as needed and the price is higher than their competitors. On the other hand, Beyond Meat targets fast food restaurants and retail stores which lets them grow substantially since it became available in most places. To compete with Beyond Meat we recommend that Impossible Foods partner up with University of California dining halls who have a similar mission of emitting 0 greenhouse gases by the end of 2025 (Figure 12). We spoke to the supervisor of UCI dining services and they told us that they are considering introducing plant based burgers in the cafeterias. 6
  • 7. STRATEGY In order to market Impossible Foods to their target demographic, college students, the company must expose students to their product in a stage where students are easily susceptible to change. Many college students at UCI begin with a meal plan their freshman year. “More than 14,000 students choose to live on campus”, and most of those students have entered and eaten in a UCI dining hall during their first year of college (UC Regents, 2019). The cost of living in a dorm with a meal plan is roughly $14,297 with a triple room (UC Regents, 2019). 18.5% of the survey respondents and all the focus group participants agreed the retail price of an average Impossible Foods’ product is too high for a student (Figure 3). This problem is eliminated by our strategy as meal plans are compulsory in order to be eligible for living in dorms. By partnering with UCI’s eateries, the 7 day all access meal plan may increase from $1,940 to $1,999. Since parents generally pay for housing during their child’s freshman year the high price inhibitor for students is avoided. Based on interviews of 10 parents, 90% would not question the increase in price as their main concern is their child getting nutritious food. Not only would this generate revenue for Impossible Foods and offer exposure, but it would also increase the chance of gaining an estimated 14,000 consumers as nearly twice as many people said they would definitely buy their product after tasting their plant-based meat (Sophie Troyka). Thus, placing Impossible Foods plant-based meat in university dining halls would positively expose students to their product early on in their college career without affecting the mental toll of increased cost. UCI dining often proposes many different and unique ways to utilize their food for their students. For example, dining halls could have Impossible Foods’ plant-based meat as tacos or spaghetti which would prompt students to see it as an ingredient and potentially use it in that manner in the future. Students would also be able to recognize the product in grocery stores when they are ready to buy during their second year and become more inclined to buy it as it is not that foreign to them. Our main purpose for inputting Impossible Foods into the dining halls is to have students shift into plant-based meat before they begin buying groceries on their own during their 2nd year. Once the student has entered their 2nd year of college, they will recognize the plant-based meat product and purchase it but may have difficulty actually cooking it. This is where the Impossible Food College Meals Templates would come in handy (Figure 6). As mentioned previously in our competitive analysis, these templates would be personalized for college students. They would help students make several meals by easily explaining the steps and process with additional images for students to follow. Another aspect to address the price range of college students, demand for quick and easy meals, and fun eating experiences is to partner with popular frozen foods companies that many college students purchase regularly. According to our focus group, when asked about their interest in purchasing an easily microwavable product that contains plant-based meat, there was a consensus that said yes. One example of a frozen food that is popular among consumers in the U.S. is the Hot Pocket, which demographic matches the one the Impossible Foods is targeting. The main consumers are under the age of ​24​ and also a budget that is less than $20,000, much like college students interested in Impossible Foods’ product (Numerator). Approximately ​12.26 million Americans consume at least 5 packs of Hot Pocket (Winters). Though a partnership is recommended for a more quick results, the long term benefit route would be to create a unique brand underneath Impossible Foods, similarly to Nestle’s Hot Pockets. The business model would be the same and it will help with normalizing plant-based snacks and incorporate them into the average consumer’s diet. Another recommendation is to utilize the worth-of-mouth marketing strategy and mimic the popularity of spam musubi by creating a simple, easy, on-the-go version that incorporates Impossible Foods’ plant-based meat. Our demographic strives to eat easy, fast, and accessible foods. By normalizing an easy snack with Impossible Foods’ products, there will be more servings made and more people exposed to our product. 7
  • 8. APPENDIX Figure 1: Primary research survey Question - What do you identify as? Figure 2: Primary research survey question - After learning more about Impossible Foods would you purchase it? Figure 3: Primary research survey question - Why would you be interested in buying the Impossible Burger? 8
  • 9. Figure 4: Select opinions on protein – Any agree (net), by age, February 2019 Base: 2,000 internet users aged 18+ (Mintel) Figure 5: Primary research survey question: What is your approximate monthly grocery budget? 9
  • 10. Figure 6: Impossible Burger College Meal Template Example Figure 7: Impossible Foods and Beyond Meat Instagram account 10
  • 11. Figure 8: Beyond Meat diverse plant based products Figure 9: Impossible Foods packaging 11
  • 12. Figure 10 Impossible Foods - Incongruent ​Moderate Incongruence - Beyond Meat Figure 11: How did you hear about the Impossible Burger? 12
  • 13. Figure 12: University of California sustainability mission Figure 13: Primary research survey question - Are you interested in the products or learning more about it? Figure 14: Primary Research Survey Question - How often do you eat out per week? 13
  • 14. Focus Group Script SCRIPT FOR FOCUS GROUP Welcome to our focus group. We are excited and thankful that you were able to make it today. (INSTRUCTIONS) Let’s start with a short introduction from each of you. Please share your name, major, hometown, and anything else you’d like to share. Thank you. (INSTRUCTIONS) Today we are going to be asking all of you some questions centered around our topic of Impossible Foods and how they can improve their marketing strategies towards college students. Without giving you any further information we will begin with some introductory questions about your existing knowledge of the company. To help spur thought, we will ask you the following questions, but feel free to express whatever comes to mind. Often what you say may spark another thought for someone else. The questions are: 1. What thoughts or phrases comes to mind when you hear the name Impossible Foods? 2. What type of outlet do you use to try new things? 3. Do you tend to research brands and their mission statement before purchasing a product? Thank you. Now I am going to read an excerpt to you all that offers some background information about the company. Impossible Foods makes delicious, nutritious meat and dairy products from plants—with a much smaller environmental footprint than meat from animals. We’re on a mission to restore biodiversity and reduce the impact of climate change by transforming the global food system. The ImpossibleTM Burger debuted in 2016 at Momofuku Nishi, the famed New York City restaurant of Chef David Chang. Over 15,000 restaurants in the United States now serve the ImpossibleTM Burger—from award-winning restaurants to family-owned diners, and one of the largest global fast-food chains, Burger King. Last year, Impossible Foods launched in Asia and is now served in over 320 restaurants in Hong Kong, Singapore, and Macau. In September 2019, Impossible Foods launched in grocery stores for the first time, starting with Gelson’s in Southern California. 14
  • 15. Impossible Foods’ mission is to make our global food system truly sustainable. Compared to meat production from animals, Impossible Burger production uses 96% less land, 87% less water, and produces 89% fewer greenhouse gas emissions. The soy in the Impossible Burger is a source of high quality protein and dietary fiber. It’s also been screened for over 300 pesticide residues — none, including glyphosate, have been detected. Our goal is to celebrate the love of meat by making it in a sustainable, environmentally-friendly, and better way. Does anyone have any questions? So now that you’ve heard this, I want to get back to our topic and ask additional questions about your beliefs and habits. The questions are: 1. What are some interests or concerns you may have regarding plant-based meat? 2. (if they do) What is the main motivation behind your meat consumption? 3. Would you be willing to substitute a meat burger patty with a plant based one in order to save the environment? 4. What are some brands you associate with this product? 5. After this focus group, will you be going to your local grocery store to buy an Impossible Foods product? Thank you very much for your valuable input that you provided tonight. 15
  • 16. Works Cited “2019-2020 Housing Rates.” ​2019-20 Housing Rates​, 2019, housing.uci.edu/rates/Rates.html. “Beyond Burger™.” ​Beyond Meat - The Future of Protein™​, www.beyondmeat.com/products/the-beyond-burger/​. Beyond Meat, Inc. (2019, April). ​Form 10-K​. Retrieved from the Securities and Exchange Commission https://www.sec.gov/Archives/edgar/data/1655210/000162828019004543/beyondmeats-1a5.htm Capritto, Amanda. “Impossible Burger vs. Beyond Meat Burger: Taste, Ingredients and Availability, Compared.” ​CNET​, CNET, 25 Oct. 2019, www.cnet.com/news/beyond-meat-vs-impossible-burger-whats-the-difference/. “Find Your Anteater Spirit in Student Housing!” ​Housing & Dining | UCI Admissions​, www.admissions.uci.edu/discover/student-life/housing-dining.php​. Griffin, Riley. “Social Media Is Changing How College Students Deal With Mental Health, For Better Or Worse.” ​HuffPost​, HuffPost, 22 July 2015, https://www.huffpost.com/entry/social-media-college-mental-health_n_55ae6649e4b08f57d5d28845 “Hot Pockets Demographics and Consumer Insights.” Numerator, https://snapshot.numerator.com/brand/hot_pockets. “Mission Impossible.” Home - Impossible Foods, Impossible Foods Inc., https://impossiblefoods.com/. Peters, Bill. “Beyond Meat Keeps Tumbling As Offering Prices, Burger King To Launch Impossible Whopper.” ​Business Source Complete​, 2019, web.b.ebscohost.com/ehost/detail/detail?vid=4&sid=e7a50179-fa34-4193-80d1-535336f8b6bf%40pdc-v-sess mgr03&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#AN=137875528&db “Plant Based Proteins.” Mintel Academic, Lightspeed/Mintel, May 2019, academic.mintel.com/display/956252/. Savaskan, Devin. “Meat Markets in the US.” IBISWorld Industry Report 44521, May 2019. https://clients1.ibisworld.com/reports/us/industry/default.aspx?entid=1043 Tedder, Sean. “Call Regarding Impossible Foods at UCI.” 2019. Winters, Simon. “U.S. population: How many packs of Hot Pockets frozen hot snacks have you eaten in the last 30 days?” ​Statista​, July 2019. https://www.statista.com/statistics/287217/amount-hot-pockets-frozen-hot-snacks-used-in-the-last-days/ 16