Does ‘yummy’ play a role in profitability of this alternative-protein source?

Business Challenge

Interest in alternative proteins grew gradually in the early 2000’s but has greatly accelerated over the past decade. And food manufacturers are taking note of shifting consumer interests. Our client, a manufacturer of food technology, was excited about a new plant-based protein it wanted to market to its clients. The protein source, pea protein, could be used in a variety of foods, including meat alternatives*.

Our client wanted their manufacturing partners to know about the new ingredient and the potential positive perceptions it would generate among consumers. Specifically, they wanted to know if their new ingredient would have any positive influence on perceived taste, nutritional value, and overall craving factor. They also wanted to know what price points could be considered if their partners were to add this ingredient into their products.

TRC’s Solution

TRC designed a comprehensive conjoint study that covered the client’s line of food product categories. For each food category, the conjoint methodology was able to identify optimal price points, as well as specific dominant features of the protein configuration that would be most preferred.

TRC developed a conjoint simulator, which was used to identify optimal product configurations and share of preference for any mix of features and price.

Successful Implementation

The client learned what features in the pea protein configuration offered at competitive advantage over similar offerings. In addition, it identified the optimal price at which to sell the new product options. The client used this information to guide R&D and their pricing strategy.

* Meat alternatives are one of today’s most sustainable products, as they reduce the need for meat production, which is a primary cause of deforestation, land degradation, and water contamination.