Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Comparison of consumer perceptions and preference toward organic versus conventionally produced foods
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Comparison of consumer perceptions and preference toward organic versus conventionally produced foods
Methods of operating in the retail food sector are always changing. This is especially true in the supermarket space. Today's informed consumers are increasingly demanding quality, fresh, and innovative foods. Additionally, these consumers also demand convenience be served along with these first-rate products.
More grocery products are being purchased at non-traditional food retailers. These include Wal-Mart Stores Inc., Costco Wholesale Corporation, as well as pharmacies/drugstores, and specialty alternative grocers.
How are traditional grocery stores - chains and independents - addressing the twin issues of freshness and convenience? The following are ways they're working to grow sales through serving their customers better in these two areas:
Freshness
…show more content…
They then receive fresh, handpicked grocery items from stores in their area, often delivered to them in less than an hour. Customers can also schedule when exactly they wish to receive their deliveries.
2. Custom products from in-store bakeries
Traditional grocery stores are upgrading in-store bakeries to better serve customers with unique and quality baked goods. Supermarket News reported that, "Whole Foods Market plans to elevate its prepared foods and bakery departments with the creation of a new role, global VP of culinary and hospitality." (Supermarket News, December 10, 2015). Whole Foods Market's commitment is to inventive, fresh bakery products that differentiate the retailer from its competitors.
Supermarket News also noted that food retailers are modernizing their cake services to include "fresh ingredients, elaborate designs and customized ordering platforms." (Supermarket News, January 6, 2016). Consequently, the typical grocery store bakery is becoming more like your neighborhood artisan bakery. This promotes one-stop shopping in a supermarket.
3. Premier prepared foods:
The food market business is usually a difficult one, but online retailer Amazon's proceeding to purchase high-end chain Whole Foods changed the landscape. The new corporation is currently reducing prices, as well as Amazon is managing to reduce costs by taking its online expertise
Whole Foods Market allows each market to supply products that are standardized, and also supply products based on local buyer needs, as well as the culture of the area; therefore their business strategy is transnational (Thompson, 2016, p. 192). Whole Foods Market varies their products based on location, focusing on local products and any unique products to promote a neighborhood market feel for their customers. The company strategically chooses its locations, placing them in educated areas, and then focuses on products to sustain a competitive advantage.
RNRA Team, “Supermarkets, Fresh Produce and New Commodity Chains: What Future for the Small Producer?” Hot Topics: February, 2004.
Kudler Fine Foods is a store unlike any in the grocery industry. Kudler Fine Foods represents a store that could possibly spark a new era within the grocery world. The owner of Kudler Fine Foods, Kathy Kudler, has watched her dream of owning and operating a grocery store that specializes in fine quality food grow within a short period of time. The success of Kudler Fine Foods can be attributed to the innovative ideas, effective leadership, and organizational structure. The overall mission of Kudler Fine Food's "is to provide our customers the finest in selected foodstuffs, wines, and related needs in an unparallel consumer environment. Our selections coupled with our experienced, helpful and knowledgeable staff, merge to offer each customer a delightful and pleasing shopping outing" (Apollo Group, 2003). Kudler has managed to maintain its mission statement by providing its customers with the best and as a result the company has flourished. "Kathy considers one of her key responsibilities to be that of identification of new gourmet items that can be offered in her stores (Apollo Group, 2003)." Therefore, Kathy is considering plans to contract with local growers of organic produce to yet obtain the best in quality products for her consumers and take her business to the next step. If Kathy makes the decision to contract with local growers then changes could be introduced into the company's overall structural organization. Each aspect of Kudler Fine Food's organizational structure from basic business process to the supply chain and quality control process will be affected by the formation of a contractual relationship with local organic growers.
Oliver’s opened its second store in April of 2000 in Santa Rosa, CA fashioning it after Woodlands Market, another Organic Health food store. Unfortunately, in the early 2000’s with the increase of discount superstores, club stores, dollar stores and drugstores, there was a decline in the traditional retailers’ market share from 82.3 percent down to 69.2 percent. Increases in giant retailers will be one of Oliver’s biggest competitive pressur...
...ious. Stability is another factor that could make Whole Foods an attractive career. They have been consistent in everything they have down and show a dedicated to the communities around them. Not many companies have the same track record and this proves that Whole Foods is in it not only for themselves.
Pret is more upscale than its competition but everything comes standard, so you can’t control the condiments. Many of competitors believe that fresh means made-to-order. Panera Bread, one of Pret’s biggest competitions, is well known through the New York City area. Panera Bread advertisement their products and offer hot food made to order. Even though the line can get long the customers do not mind the long wait knowing that their food is precisely the way they want it done. These intense competitions can entice Pret’s consumers away with personalized. For an upscale chain, prices start at $3.50 for a smaller proportion. Pret is only found in dense urban area does not appeal similar to Panera, which could be found in rural settings. But Pret stands out from the competition with their fresh food, customer service and charity
Shopping/Merchandising: Each Whole Foods store maintains a special environment for their customers, such as ambient lighting, natural displays, and educational demonstrations, to encourage the shopper to be a repeat customer and even share their experience with friends and family.
The rivalry aspect of Porter’s Five Forces that influence’s the grocery industry finds that there is a high degree of competition for consumer’s business among the dominate retailers as well as those companies trying to take any share of the market they can get. The large retailers engage in intense competition among each other as well as other stores that are competing for sales. Price wars drive down the profit margins for individual items and new and improved store design to bring in customers increases fixed cost. Improved distribution lines affect distribution and storage cost is competitive adjustments that the major retailers use to stave off the increasing competition. The last area of rivalry that the major companies use is the relationships they have with their suppliers to sign exclusive deals or lower cost than those prices paid by competing firms. As more retailers such as Wal-Mart and Target add groceries to their sales floor the competition increases as well as the stores that offer individual grocery items in their stores such as Dollar General, Walgreens and CVS. The grocery rival...
Local Capacity. The convenience store chain can provide local cooking capacity at the stores and assemble foods almost on demand. Inventory would be stored as raw material. This is seen at the U.S. fast-food restaurant franchise Subway where dinner and lunch sandwiches are assembled on demand. The main risk with this approach is that capacity is decentralized, leading to poorer utilization.
Many customers will buy more package food in the future as it is cheaper and more convenience because customers can buy it in high volume and keep it for the long time.
Wastage of unsold food increases operational costs due to daily preparation of fresh food . The model of the business can be easy copied by competitors. One of the weakness is weaker customer loyalty programs compared to Starbucks Coffee and Costa Coffee. Opportunities: Market expansion strategy in other countries.
STUDENT ID- 1100573 VANSHIKA ASSESSMENT TASK 1 Identify and evaluate the competitive challenges and opportunities facing that particular sector. Prepared BY Vanshika Prepared To Lecturer – Kathleen Hastings MKG721 Food Marketing
Challenges in Today's U.S. Supermarket Industry. 2014. Challenges in Today's U.S. Supermarket Industry. [ONLINE] Available at:http://msdn.microsoft.com/en-us/library/aa479076.aspx. [Accessed 31 March 2014].
CHANGING PREFRECE depended vastly on the fast food manus. For example we can mention about SALAD. Now salad was never considered as a part of fast food menu. But with the change of taste and preference, fast food chains like Windy, Taco Bell, and McDonald have introduced SALAD into their menus. This preference is not stopping only with salads. In 2002, McDonald’s introduced great tasting new products including premium salads, n salads plus menu; Chicken McNuggets made with white meat; Fish McDippers; Chicken Selects; and new breakfast offerings like the McGriddle sandwiches. Here as a fast food chain, McDonald did not have to introduce new dishes in their menus but with the impression and image in the market analysis, of increasing demand and chan...