Kevin’s Natural Foods: Market Analysis and Product Innovation to Create a Niche

April 13, 2020 0 Comments 353 views

Between work, school, extracurricular activities, and the endless traffic that millions of people endure during their daily commutes, many people simply don’t have time to dedicate to cooking nutritious, home-cooked meals. A 2011 study by the Organisation for Economic Co-operation and Development (OECD) titled “Society at a Glance” finds the following:

“People in the United States spend only 30 minutes per day on average cooking, the lowest in the OECD, as well as spending low amounts of time eating (1 hour 14 minutes per day, the third lowest in the OECD). But one third of Americans are obese, the highest rate in the OECD.”

It might seem ironic that the country that spends the least amount of time preparing food, is also the country with the highest level of obesity amongst developed countries. A closer analysis of what we are consuming, however, makes it pretty clear why more than four out of every ten Americans are obese. Due in part to our hectic, fast-paced lifestyles and lack of nutritional knowledge, more than a third of the American population eats some sort of “fast food” on any given day. Furthermore, almost half of U.S. households (46 percent) eat frozen dinners on a regular basis.

The industrialization of our food industry coupled with the rat race of modern-day society has essentially turned our meals into highly processed, nutrient-void, prepared foods that are loaded with a concoction of chemical additives, preservatives, and other “fillers.” Kevin´s Natural Foods, a natural food company based out of California, believes that “even the busiest people should have the ability to eat healthy without sacrificing flavor or feeling deprived.”

The company offers several Paleo and Keto Certified prepared meals that can be prepared in minutes for people who want to eat healthier, but simply don’t have the time for home-cooked meals.

The Importance of Convenience, without Sacrificing Health or Taste

According to recent studies, 93 percent of consumers claim to want to eat healthier food. Unfortunately, less than one-third of the population (28 percent) have easy and secure access to healthy foods. Taking a couple of hours to prepare a pasture-raised broiled chicken entrée accompanied with organic quinoa and spinach salad might be feasible for a lazy Sunday afternoon. During busy work weeks, however, most people´s lunch options are probably limited to the surplus of fast-food chain restaurants next to their workplace or some frozen dinner that the company cafeteria has on sale.

Kevin McCray, the founder of Kevin’s Natural Foods, believes wholeheartedly that healthy and delicious meals should be an option for people with limited time for cooking and food prep. According to a recent interview, Kevin says that “in the early stages I knew we had something exciting. We would host focus groups and met with hundreds of shoppers showing them early product ideas and getting their feedback. At that point, I definitely knew then that we were meeting an unmet need by combining flavor, convenience and health.”

Food brands should certainly engage in a market analysis before launching their brand and product offerings. Knowing how to frame that research, however, is essential for finding an unmet niche within the health food market and industry. While many food brands can easily recognize the growing consumer demand for healthier foods, Kevin combined that consumer desire with the reality of people´s busy lives. Before jumping into marketing and launching their products, however, the company wisely tested the product before the introduction.

To differentiate their products from other meal delivery services and food brands offering prepared meals that are supposedly healthier than the average TV dinner, Kevin realized that the company needed to focus on taste.

“We cook everything in our own facility and have two secret weapons: sous-vide meats and incredible sauces,” Kevin says. “Sous-vide is a French cooking method that is used by many of the country’s top restaurants. It delivers incredible results by cooking vacuum-sealed meat, in a hot water bath, at a precise temperature. The outcome is moist, fork-tender meats that we pair with our signature paleo/keto-certified recipe sauces for five-star entrées, ready in just five minutes.”

The company offers sauces, seasonings, and their signature “heat and eat entrees.” The meals are pre-pre-prepared, packed in an insulated cooler, and shipped to the front door of their customers. The pre-cooked chicken meals only need to be sautéed for 1-2 minutes and simmered with their Paleo-certified line of sauces. Some of their signature flavors/recipes include Thai-style coconut chicken, teriyaki chicken, lemongrass chicken, and cilantro lime chicken.

Shortly after launching, Kevin’s Naturals was able to confirm the tendencies that emerged from their market research. “No matter how much you prepare you never know how a brand is going to resonate until you get it out in the market,” Kevin tells us. “It wasn’t until the line launched in Costco and Whole Foods, about a year after coming up with the concept, that I could envision how fast the growth would come. Once thank you notes from shoppers that found the products started pouring in via social media, I knew it was time to ramp up.”

Kevin’s Natural Foods on Building a Functional Team

Another important element for success that has spurred the fast growth of the company is the ability to effectively build a functional team. Almost all small business owners and entrepreneurs will tend to struggle with the enormous amount of tasks that come with getting a business off the ground. Recent surveys have found that at least a quarter of all entrepreneurs log more than 60 hours a week which is almost double the national average.

One of the keys to the success of small businesses, however, is effectively delegating responsibility to the right people. In the case of Kevin´s Natural Foods, co-founder Dan Costa, along with the company’s chef Stanley Dimond has been able to lead the charge in developing new products and flavors to keep their customers enticed. Kevin says that “the three of us make a great team. As chefs, Dan and Stan have been cooking up a storm together since 1985. The three of us determine together what products and culinary shortcuts our customers could use to make their lives easier and what flavors we think would hit home. With my background, I bring the nutrition lens and those two have the culinary chops to bring our ideas to life.”

Building a functional team where vital business tasks and responsibilities can be delegated is not only important for a healthy work-life balance but can also reflect positively in business growth and financial success. A recent Gallup survey found that business leaders with “high Delegator talent” were able to generate 33 percent higher revenue streams than those companies led by owners who struggled with successfully delegating duties to key members of their team.

The Importance of Continued Innovation and Expanded Distribution Channels

Kevin´s Natural Foods also thrived through continuing to innovate on their successful Keto and Paleo certified meals. While many companies might be satisfied with sticking what has worked in the past, Kevin understands that offering novel new products and flavors to their customers is an essential part of maintaining customer loyalty and satisfaction.

The company just recently launched a new line of product flavors, including their Chipotle Lime Chicken and Chicken Tikka Masala, and product development will continue to be a central aspect of their business model. “We are always thinking about how to give shoppers more culinary shortcuts, flavors, and, ultimately, more meal solutions they can cook up on a busy weeknight,” Kevin says.

Along with new flavors and diversifying its product offering, the company has also been expanding its network of distribution channels. While they continue to sell their prepared meals online at their website www.kevinsnaturalfoods.com, they also successfully sell on Amazon and at a variety of retail stores across the country, including Whole Foods, HEB, Raley’s Supermarkets, Schnucks, Save Mart, Winn Dixie, Bristol Farms, Better Health Store, Costco, Publix, and The Fresh Market.

Kevin’s Natural Foods Giving Back to the Community

While Kevin’s Natural Foods has experienced impressive business success since launching several years ago, their company mission goes beyond simply increasing the bottom line. Selling healthy Paleo and Keto certified prepared meals to people with limited amounts of time has certainly worked financially for the company. However, the brand also takes pride in helping people to live healthier lives even when they are constantly on the go. For families whose busy work, school, and extracurricular schedules make healthy eating difficult, Kevin says that “I want busy parents to know that it’s possible to provide those meals, and we’re here to help prepare them quickly and easily!”

Lastly, in response to the current COVID-19 pandemic, the company has also been on the frontline of a holistic response. Instead of simply buying a year´s supply of Ramen Noodles or other “easy to prepare” foods, Kevin’s Natural Foods is committed to helping families in its hometown to access nutritious food options. In a news release, Kevin says that “access to nutritious, easy-to-make meals made with clean ingredients during this epic crisis is a necessity for all.” The company announced it is giving more than 6,500 two-serving meals to Second Harvest, which aids residents of San Joaquin, Stanislaus, Merced, and the Mother Lode counties.

Engaging in a sincere market analysis to find an unmet niche, building a functional team, staying committed to product innovation, and continually giving back to the community have been four elements for success driving the impressive business growth of Kevin´s Natural Foods.