Quorn Market Insights: PRESTCOM and SWOT Analysis

Quorn Market Strategy Analysis: PRESTCOM and SWOT Insights for Meat Alternatives

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PRESTCOM Analysis

Political Factor- Politically, the alternatives of meat have various proponents. Meat production and consumption are discerned as wholly dependent on monetary assets due to inflated food prices which is consequential to high-input meat. Scholars have pointed out that by 2050, that the calories consumed by animals for producing good quality meat will raise the demand for annual calories by 3.5 billion people's consumption which will raise the prices of all food products (Cooper, 2018). This led the government of the UK to recommend its households to cut off meat consumption by 30% by 2030. Quorn has been a renowned player in the market serving meat alternatives in the UK because of its innovative and low-fat products. BREXIT referendum has both negative and positive impact on the company. The competitors from EU are reduced in numbers but this also affected the availability of skilled workforce for the company. The political intervention has created an opportunity for Quorn to market its product and also get benefitted by the decrease in the cost led by the shift of preferences of people on large scale as per govt. recommendation (Upcraft et al., 2021).

Regulatory factor – As per the UK's legislature, there are no regulatory requirements for labeling vegan products as vegan but there is legislation to safeguard consumers from misleading information so Quorn needs to adhere to its laws and be transparent in providing information about the food products. But it was still vague whether a food is considered vegan because its main ingredients don’t have animal contents or not. There was no proper definition of vegetarian and vegan food (Cooper, 2018). The guidance issued by the Food Standards Agency is of little help as it states that even the storage, preparation, cooking, and display must not have any animal food if it is a vegan item. Quorn, therefore, needs to be more specific about what it is using for dressing, storage, chemicals, preservatives, and preparation. Quorn should adopt vertical integration to ensure that no animal content is used throughout operations (Waters, 2018).

Social Factor - People are becoming more concerned about the climatic change and how their meat consumption is leading to their health issues. Quorn has been providing healthy meat alternatives and innovating so that people do not compromise on their nutrients need while going vegan. Vegans are becoming more cautious about what are they eating and how it is prepared because veganism is consequential to animal love and sensitivity towards them (Upcraft et al., 2021). People are Concertful about the protein content that they think is insufficient in plat-based food and Quorn has come up with Quorn’s Mycoprotein which is one of the best plant-based sources for protein and readily available in the UK market. Altogether, this environment is quite favorable for the company (Waters, 2018).

Technological Factor- It is using technology for innovating new products that constitute meat and still provides its benefits. The company has acknowledged that its role in scaling up the ecological balance is prominent as 51% of the greenhouse gases were consequential to livestock and deforestation and clearing of forests. It has made a mycoprotein that contains all the nine vital proteins through the complex procedure and use of technology including airlift fermentation. Quorn has used technology to beat its competitors to provide quality nutrients-filled vegan items (Williams, 2021).

Competitive Factor- Competition for Quorn is high due to the availability of substitutes in large numbers. These competitors have been marketing their products using sentiments of vegans like recycling the containers and using eco-friendly packaging. This has impacted vegans and new customers. However, Quorn is not far away from marketing its innovative and quality products. But it still needs to look into its supply chain management to make it cost-effective and achieve economies of scale by entering new markets. This way it can combat the adversities rising due to the increasing number of players in the UK market (White, 2018).

Organizational Factor- The company follows a hierarchy system and the flow of information is swift and backed up by a proper feedback system. The only problem with the organizational system is ignorance of customers' feedback. The company has not been active to satisfy the queries and problems of its customers holistically. Many have reported problems like nausea, diarrhea, and vomiting after eating Quorn products (Williams, 2021). It has been producing the same products and promoting them solely based on veganism. But it has not considered the over-utility of Vat-grown fungus and in what ratio these products must be fermented. There is a lot of scope in its utility of technology and procuring raw material (White, 2018).

Market factors -Quorn has conducted market research based on historic data but the market is highly volatile due to which it needs to consider the implication of current taste and preferences on future demand for Quorn products. The only restraining factor here is that the company has to rectify its shortcomings in producing vegan items before expansion. The market of Quorn is undoubtedly prominent in the UK market but it can suffer from its competitors’ strategy to offer better quality and safe products (Bryant, 2019). This is a major threat factor to the company. The global trend is however sluggish in moving towards veganism and 30% is a very modest recommendation by the UK government to impact climatic changes. overall, the picture of future market trends is a blur. People are either vegan from their early childhood or a small fraction can convert into vegans. It is challenging for some, especially people who are obsessed with food to convert to vegan or reduce consumption of meat. This puts pressure on market analysts as their study remains incomplete without articulating human behavior and generalizing it for better interpretation (White, 2018).

SWOT Analysis

References

• Waters, J., 2018. A model of the dynamics of household vegetarian and vegan rates in the UK.Appetite,127, pp.364-372.
• Cooper, L.L., 2018. A new veganism: How climate change has created more vegans.Granite: Aberdeen University Postgraduate Interdisciplinary Journal,2(1), pp.16-24.
• White, R., 2018. Looking backward/moving forward. Articulating a “Yes, BUT…!” response to lifestyle veganism, and outlining post-capitalist futures in critical veganic agriculture.EuropeNow, (20).
• Bryant, C., 2019. Reducing Animal Product Consumption: Studies of UK Meat-Eaters.
• Upcraft, T., Tu, W.C., Johnson, R., Finnigan, T., Van Hung, N., Hallett, J. and Guo, M., 2021. Protein from renewable resources: mycoprotein production from agricultural residues.Green Chemistry,23(14), pp.5150-5165.
• Williams, R.A., 2021. Opportunities and Challenges for the Introduction of New Food Proteins.Annual Review of Food Science and Technology,12, pp.75-91.