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Crossing the Adoption Chasm for Plant-Based Meat

Plant-based meat is facing market adoption chasm between the early market and mainstream market. In the past 4 years, the industry was having the hypothesis that if capital can be funnel to scale up production and achieve price parity with conventional meat product, the industry will be able to cross the chasm and encourage mass adoption. However, this bet has not been successful in achieving mass adoption as the product performance has been compromised.

As a product transitions into the mainstream market, companies must prepare for a surge in demand. The early majority, which typically constituting approximately 34% of the market share. Once the industry To capture this segment, attention must be given to their specific demands:

Relative Advantage: Customers need to perceive plant-based meat as superior to existing options. Whether it’s taste, health benefits, or environmental impact, the product must offer clear advantages.

Compatibility: The product’s value proposition should align with mainstream consumers’ values and customary practices. If it fits seamlessly into their lifestyle, adoption becomes more likely.

Simplicity and Ease of Use: Consumers appreciate products that are straightforward to understand and use. From cooking instructions to consumption methods, simplicity matters.

Trialability: Offering opportunities for risk-reducing experimentation is essential. Consumers want to try before committing fully.

Observable Results: Social proof matters. Successful cases—whether through testimonials, celebrity endorsements, or visible adoption—can sway consumer decisions.

While plant-based meat has made significant strides, taste remains a critical factor. To succeed, these products must match or even exceed the taste, texture, and aroma of conventional meat. Consumers won’t compromise on flavor, and companies must invest in research and development to bridge this gap. However, this observation also prompted me to think whether this sector should ponder on 2 questions, moving forward:

Will plant-based meat ever be as good or better than meat?

Should plant-based meat be as good or better than meat?

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Branding for Scent and Taste

While reading the case on Concha y Toro, the business of winery reminds me of the fragrance/ perfume business.

The following aspects of perfume share similarities with wine and could influence branding strategies:

Sensory Appeal: While wine relies on taste, perfume is all about scent. Therefore, the branding team for fragrances must forge cognitive associations with the fragrance’s key notes to devise an effective branding strategy, which can be very subjective. They will need to really understand their target customer, which might also involve intimate life experiences.  P.S. It’s fascinating to note the power of language; even the choice between ‘smell’ and ‘scent’ can evoke vastly different reactions.

Heritage and Authenticity: Reflecting on our recent class discussion, we compared wine production in France with that in South Dakota. For perfumes, heritage plays a pivotal role in branding, with Chanel No. 5 being a quintessential example. The perfume was created in 1921 by Gabrielle "Coco" Chanel and till today, remain the symbol of luxury goods.

Exclusivity and Luxury: We also recognize that some fragrances may be perceived as cheap, while others may convey the image of luxury and sophistication. This perception is often influenced by cultural backgrounds and personal experiences.

Fragrance and Cognitive Association  During my research, I discovered the concept of scent branding, particularly within the hospitality and luxury sectors. For instance, hotels like the Four Seasons or Sheraton have distinctive fragrances that become synonymous with the brand. An article mentioned that the human brain retains 35% of what it smells, far more than the 2% of what it hears, 5% of what it sees, and 1% of what it touches.

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Gathering Customer Insights in the Physical and Virtual Worlds Through Customer Journey Framework

Before joining Sloan I have always used the customer journey framework as the compass in guiding me through the formulation of marketing strategies, go-to-market and operational decision.

However, revisiting the customer journey framework has reminded me of the importance of adapting the customer journey to reveal the customer experience in both the physical and virtual world. This includes their interactions with the product, staff, and other customers. Due to this ‘multiverse’, the customer journey has become highly complex. Yet, this complexity also presents opportunities for intervention to create the optimal experience. This is particularly important for platform services like Uber and Zipcar, where there is a strong symbiotic relationship between the physical and virtual paths in delivering the complete services.

Coupled with insights from market research, mapping out the touchpoints along these customer journeys allows us to strategically monitor customer interactions and collect feedback at critical points or bottlenecks for continuous improvement. Although the setup process can be tedious initially, the return on investment often proves to be worthwhile in the long run, especially when it comes to scaling the business.

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Beer Advertisement Showdown

In the given case and situation, Heineken faces vulnerability as its market share is threatened by Corona beer. The competitive pricing strategy employed by Corona, which involves absorbing the Federal Excise Tax (FET) and California State Tax, allows them to offer their beers at a price $0.50 lower than Heineken’s. To safeguard their position, Heineken must take specific actions. First, they need to ascertain whether they are competing for the same customer base as Corona. This involves understanding whether their existing customers are shifting their preference toward consuming Corona. If their customer is moving towards consuming Corona, they will need to justify their premium towards their customer or differentiate themselves to command the premium. While in the situation that they appeal to different customer segment, Heineken will need to further strengthen their brand position in the minds of their customer and how they are different than the slightly cheaper Corona.

Analyzing the available information, in my opinion, Heineken appears to be positioned as a post-work drink at local diners, resonating with a demographic that includes “unchill” individuals such as corporate executives. Their advertising, characterized by darkness and a hand (likely male), may inadvertently exclude the female sector.

In contrast, Corona beer offers an experiential narrative associated with vacation, relaxation, and leisure. By deliberately avoiding actors in their visuals, Corona invites consumers to envision themselves enjoying a refreshing Corona by the seaside during their getaway.