Tag Archives: consumer behavior

Where’s the Meat?

In case you haven’t noticed, there are a growing number of meatless ‘meat’ products now available at both grocery stores and restaurants. In the past few months alone, several fast food chains launched chicken-free chicken and meatless burgers to their offerings, and all seem to delight customers who are looking for plant-based alternatives to meat.

In one instance, KFC supplied an Atlanta franchise with faux-meat chicken from Beyond Meat called the ‘Beyond Fried Chicken’. Customers arrived before the doors even opened and the restaurant sold out of its supplies in just five hours! Of course, social media was responsible for the rush to test, but nonetheless, selling out what was supposed to be a several day experiment in less than a day says a great deal about the changing consumer tastes.

Burger King is already established in the meat-free burger category and has been selling the ‘Impossible Burger’, using the plant-based patties from Impossible Meats. White Castle is also in the mix with its ‘Impossible Slider’ (also from Impossible Meats), also sold nationwide.

And last, but not least, McDonald’s has jumped into the meatless game with its ‘PLT’ burger from Beyond Meat – plant, lettuce, and tomato. While today the PLT is only available in Ontario, Canada, it seems likely to make the move to a national distribution as well.

What’s going on? What are these new ‘meats’? The term ‘meatless meats’ is a contentious point, but the products are made by combining plant-based fats, binders, fruit and vegetable-based colors and flavor to create a fibrous texture of meat (no animal components). While these types of products have existed for a number of years, they were commonly marketed only to vegetarians and vegans. Today’s new plant-based meats are aimed directly at meat-eaters, particularly consumers who are concerned about climate change and eliminating animal products from their diets. However, plant-based meats are not typically as healthy as eating unprocessed vegetables and beans and meat consumption is still increasing worldwide. The burgers are often high in calories and fats.

Are you hungry?

Group Activities and Discussion Questions:

  1. Review meatless meat products and meals as needed:
    1. McDonald’s PLT burger: https://youtu.be/StVR1njx2ow
    2. KFC meatless chicken: https://youtu.be/U-imMy7Ohik
    3. Burger King Impossible Whopper: https://youtu.be/N9FED3jkNTo
    4. Impossible Whopper: https://www.bk.com/menu-item/impossible-whopper
    5. The Better Meat Co: https://www.bettermeat.co/
    6. Beyond Meat: https://www.beyondmeat.com/
    7. Impossible Foods: https://impossiblefoods.com/
    8. Carl’s Jr Burger calorie: https://www.carlsjr.com/menu/nutritional_calculator/beyond-famous-star-with-cheese
  2. Discuss the five factors of an environmental scan: Social trends, technology trends, competition, economic trends, and legal/regulatory factors.
  3. Divide students into teams. Have each team use their laptops or mobile devices to discover at least two points in each of the five categories of an environmental scan.
  4. Debrief the exercise by compiling information on the white board.
  5. Do these factors show why companies are embracing the new foods?
  6. Extra video: If students are interested, a scholarly video about climate change and food can be found at: https://youtu.be/8miQs3mPGu8

Sources: New York Times, Wall Street Journal, Advertising Age, Associated Press, and other news sources

 

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Mascots Help Bring a Brand to Life

Brand mascots have been around for decades. The fictitious and colorful characters are used by companies to bring brands to life and create personalities that engage consumers. Mascots can be human appearing, animals, cartoons, or even an object. Quick – name five brand mascots right now…. Chances are that you could actually name many more than five, and that you have positive feelings about each of the mascots!

Mascots do more than garner positive feelings. According to research from System1, brands increase the effectiveness of advertising when using mascots. Campaigns that included a mascot were 37% more likely to increase market share than campaigns without a mascot. Plus, mascots are 27% more likely to increase customer gains, and 30% more likely to grow profit gains. So, why is it that in the U.S., a study found that only 4% of ads used mascots in 2018?

Mascots also play an important role in recognition and retention. Consumers are more likely to remember an image than they are to recall a phrase. Not all mascots last the test of time though. A mascot has to be the right character for the brand, and it has to have personality that resonates with consumers. Plus, it has translate into visual campaigns and last for years.

What is your favorite brand mascot?

Group Activities and Discussion Questions:

  1. Divide students into teams. Have each team list as many brand mascots for consumer goods as they can in the next few minutes. (You might want them to have a separate category for sports teams.)
  2. List the mascots on the white board and count the top vote-getters.
  3. How do companies use these mascots in advertising?
  4. Show the chart with brand mascot recognition by generation: https://www.adweek.com/brand-marketing/infographic-how-brand-mascot-recognition-has-changed-over-time/?utm_content=position_4&utm_source=postup&utm_medium=email&utm_campaign=MorningDigest_Newsletter_190827054610&lyt_id=194931
  5. For an interactive class, show the following quiz and see how many mascots the students recognize: https://www.thequiz.com/product-brand-mascot-quiz/
  6. Why are different mascots at various levels of recognition by age cohorts?
  7. Divide students into teams. Have each team select a product that does NOT have a brand mascot. Develop a mascot for that product.
  8. Each team should present their idea to the class.

Source: Smiley, M. (23 August 2019). Research says brand mascots really do move the needle. Ad Week.

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Subscription model for Nike kids’ shoes

Subscription services can be a great business model. It gives businesses a monthly recurring revenue stream that is steady and predictable – at least until the consumer ends it. Many subscription services have had initial success, only to lose subscribers as time goes on and subscribers no longer see the value of the service.

The meal subscriptions have been particularly hard hit as customers try various plans, only to eventually stop. There are also a great number of clothing subscription services, including subscriptions for fashion clothing, business apparel, and athletic wear. Now, Nike is launching a new subscription service aimed directly at the kids’ shoes market. It’s an important market space and is valued at roughly $10 billion annually.

Nike will offer three levels of subscriptions: $20, $30, or $50. At $20/month, customers get four new pairs of shoes and play activities; $30/month gets 6 pairs; $50/month gets 12 pairs. Named ‘Nike Adventure Club’, the service is aimed at 2-10 year olds and supplies Nike and Converse shoes. Is it money saving for consumers? Perhaps. It depends on the level of shoe selected. The main goal of the service is to build relationships and maintain brand loyalty for Nike and Converse.

As for correct shoe sizing, Nike includes a sizing chart to help parents measure their child’s feet. In a pilot program run with 10,000 members, only a small percentage of parents had the wrong size. The service includes free shipping and returns along with free size and style exchanges.

Ready to play?

Group Activities and Discussion Questions:

  1. Discuss the advantages and disadvantages of subscription-based services.
  2. Pricing is usually a complex topic. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  3. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  4. For Nike Adventure Club, divide students into groups and have each group work on any/all of the six steps.
  5. When setting the price level, assign each team a different model to use (demand-oriented, cost- oriented, etc.).
  6. Is the Nike program correctly priced for the target market?

Source: TechCrunch, CNN, USA Today, Reuters, other news sources

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