Food Entrepreneur - October 25, 2022 - 4

FOOD ENTREPRENEUR®
Do as I do,
not as I say
Entrepreneurs must tune out the
superficial noise to acquire real
insights into their target market
©MICHAEL BROWN - STOCK.ADOBE.COM
BY NATALIE SHMULIK
T
he loudest voice in the room commands the most
attention, but it may not speak for the masses. Likewise,
social media fads may not reflect actual trends; there's
a mismatch between what consumers say they want and what
they actually buy. In an environment rife with misinformation,
startups must tune out the superficial noise to acquire real
insights into their target market. Entrepreneurs will benefit
from learning to recognize discrepancies in data, understanding
the why behind industry patterns and finding the true
trends embedded within.
While consumer opinions are everywhere
online, it can be difficult to
distinguish between rise-and-fall fads
and long-term trends with staying
power. Conflicting media messaging
can skew both consumers' and
businesses' perceptions, amplifying
concerns that do not reflect genuine
market demands. For example, celebrity-
and influencer-driven trends
and shock value content propel quick
peaks in interest and sales of niche
items. While this phenomenon creates the illusion people have
replaced their morning coffee with mushroom elixirs or gained
an insatiable thirst for palate-scorching flavors, actual sales
data show otherwise.
Studies show a clear discrepancy between what consumers
claim to want versus what they put in their shopping baskets.
This distortion
is due to aspirational
thinking (how
people wish to be);
rampant sharing of
novel ideas; and the
fact trends accelerate
twice as fast as
they used to. Mike
Kostyo, trendologist
and associate at
Datassential, said
that in the past two
decades " we went
from trends taking
... 12 years to go
34
Food Business News
from inception to ubiquity - to 6 years. " Consumers are surrounded
by rapid-fire news and images, leading to equally fast trials and
product development - but not always staying power.
Lynn Dornblaser, director of innovation and insight at the
market research firm Mintel, said social media, restaurant menus
and product launches seem to indicate Americans have turned
vegan overnight.
" However, Mintel data shows that only 3% of consumers
Sifting through the
quick flashes of content
and widening the lens to
focus on the big picture
will help startups save
valuable time.
identify as vegan " - a constant figure over several years of market
research, she noted.
To avoid faulty assumptions, startups
must focus on controlled data collection
and careful listening. Digging deeper,
Mintel revealed the real trend behind the
vegan talk: people are still eating meat -
but they are now more likely to self-identify
as " omnivores " and " flexitarians. " The
interest in veganism indicates consumers'
openness to exploring plant-focused diets.
However, startups in this space must still
clarify whether people are only willing
to try milk and meat alternatives or if
they would buy them long term. Since meat eaters have no real
incentive to switch to substitutes, replacement products must be
superior in quality and taste to compete for long-term adoption.
Having recently pinpointed a need in the market makes
entrepreneurs uniquely positioned to analyze and understand
their consumers' wants. By building communities around shared
values, startups can get close to their clients, collect front-line data
and even help consumers reach their aspirational goals.
Still, " it's important to realize that survey answers are not 100%
accurate, " cautioned Ms. Dornblaser. Carefully crafted surveys that
avoid leading questions and instead ask similar questions worded
differently may uncover discrepancies in customer reporting. Even
the most accurate indicator of performance - sales data - must be
viewed in a wider context to identify real trends. New and promotional
products can skew results, added Ms. Dornblaser, so brand
owners must consider data from before and after events.
For entrepreneurs, the challenge is to bridge the gap between
algorithm-driven messaging and what people will actually buy.
Sifting through the quick flashes of content and widening
Natalie Shmulik is the chief strategy and
incubation officer at ICNC and The Hatchery
Chicago. Email editor@sosland.com.
the lens to focus on the big picture will help startups save time,
improve their marketing approach and uncover long-term trends
that sell. ▪
October 25, 2022
Food Entrepreneur - October 25, 2022

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