As veganism witnesses rapid rise across the world, the demand for vegan food products is booming. In the US alone, the demand for plant-based food has grown over 25% over the past year. Amidst these market transformations, several vegan food retailers often find it difficult to strike a supply-demand balance. Furthermore, the rising competition in the vegan food industry is posing severe challenges for players in the sector to keep the target customers hooked on to their brands. Our experts in the food industry believe that the vegan food market is one of the most lucrative and high-growth segments in the food sector. Businesses that incorporate competent strategies at the right time are bound to save themselves from being crushed by competitors.
A leading Vegan food company based out of Central America witnessed stagnating growth and increasing losses at most outlets. Furthermore, due to the company’s saturated network and weak value proposition, growth from new store openings or entering new geographies was an unviable option. With Infiniti’s custom market research solution, they wanted to identify changes that they could incorporate in their current operations in order to promote more sales and enhance growth. The vegan food company was also facing increasing challenges from aggressive new entrants that threatened their market position.
To explore potential solutions to the challenges faced, experts at Infiniti worked closely with the vegan food retailer on comprehensive research and insight generation. The custom market research included:
- An analysis of the potential limiting factors of the vegan food retailer, including their overall cost structure, operational challenges, and the strengths and weaknesses of their key competitors.
- A brand health assessment to uncover the client’s true brand image in the market. This data was attained through consumer focus groups, employee interviews, and shop-along sessions at the clients as well as the competitor retail outlets to gain a deeper understanding of shopper behavior.
- Customer intelligence solution to identify promising consumer segments for vegan food products. Our experts also conducted an operational risk analysis to evaluate the viability of new store formats, including Capex needs, gross margins, and operating costs.
By building on the data gathered through Infiniti’s custom market research solution, the vegan food retailer was able to pilot and define new store concepts with clear and well-targeted customer value propositions. This included redesigning the retailer’s commercial offer and incorporating relevant outlet features such as store design and service levels. The new store format helped the client to capture greater value from customers and enhance sales by 40% within 7 months.