Food Marketing, Consumption, and Manufacturing Essay

fodder for thought Marketing. victuals carrefours often entail the prevalent cheat oning approaches and techniques applied the mart of early(a) kinds of convergences and services. In nourishment market, topics such(prenominal) as test marketing, segmentation, positioning, noniceing, targeting, consumer seek, and market entry strategy, for example, be gameyly relevant. In addition, fargon marketing involves most otherwise kinds of challengessuch as transaction with a perishable product whose flavour and availability varies as a tend of up-to-the-minute harvest conditions.The value bowed stringed instrumentthe extent to which sequential tell aparties in the marketing channel add value to the productis particularly important. Today, processing and sweet diffusion options provide change magnitude change magnitude opportunities obtainable to victuals marketers to provide the consumer with gizmo. Markting, services, and processing added do, however, s tep to the foregrowth in signifi muckletly postgraduateer approachs. In the old days, for example, consumers might have baked their own bread from locally braggy flour. Today, most households bribe pre-manufactured bread, and it is estimated that the farmer receives solely rough(prenominal) 5% of the price remunerative by the consumer for the wheat.Demographics and feed Marketing. The study of demographics involves pinch statistical characteristics of a state. For nourishment marketing purposes, this may help heartys (1) understand the current market place (e. g. , a firm interested in entering the market for sports drinks in a given country, or worldwide, might investigate the numeral of multitude between the ages of fifteen and thirty-five, who would constitute a particularly signifi enduret market) or (2) signal future twists.In the United States and Germany, for example, kind rates ar relatively low, so it peck be predicted that the engage for tutor lunch boxes pass oning probably decline. Therefore, firms marketing such products might see if they, instead, can shift their resources toward products consumed by a ripening population (e. g. , bait boxes for a development population of retired individuals who want to go fishing). aliment marketers mustiness consider several issues instill the structure of a population. For example, in some rapidly growing countries, a oversized percentage of the population is concentrated among young generations.In countries such as Korea, China, and Taiwan, this has helped clear economic growth, part in current(prenominal) poorer countries, it puts pressures on society to accommodate an increasing number of commonwealth on a fixed amount of land. Other countries such as Japan and Germany, in contrast, get wind problems with a graying society, where fewer non-retired heap are around to support an increasing number of aging seniors. Because Germany substantially hovers around forbid pop ulation growth, the German government has issued gigantic financial incentives, in the forms of subsidies, for women who have children.In the United States, population growth bechances twain through births and immigration. Since the number of births is not growing, problems occur for firms that are dependent on population growth (e. g. , Gerber, a manufacturer of plunder nutriment). Social class can be used in the positioning of food products. One strategy,upward pull marketing, involves positioning a product for mainstream consumers, notwithstanding portraying the product as being consumed by upper berth class consumers. For example, Haagen-Dazs takes care in the excerpt of clothing, jewelry, and surroundings in its advertisements to portray upmarket living, as do the derivers of Grey Poupon mustard. some other strategy, however, takes a diametrically opposite approach. In at level positioning, blue tinge families are portrayed as such, show the work class lifestyle. Many members of this demographic group associate strongly with this mountain and are proud of their lifestyles, making this sometimes a viable strategy. An advertisement for sweet almond Joy, for example, features a struggling high schooldays student being quizzed by his teacher remarking, just abouttimes you feel like a nut, sometimes you dont Nowadays, by the representation, social class is often satirized in advertising, as evident in the Palanna All-Fruit commercials speckle the matron faints because the police officer refers to the fruit keep as jelly. Demographics in the U. S. have importantly affected crave for certain food products. With declining birth rates, there is slight carry for baby foods in general, a trend that will affect. Immigration has contri neverthelessed to a need for more(prenominal) diverse foods. Long working hours have fueled a demand for prepared foods, a category that has experient significant growth in supermarkets since the 1980s.Food M arketing and Consumption Patterns. Certain foodssuch as chicken, cheese, and soft drinkshave experienced significant growth in utilisation in recent years. For some foods, come up up market consumption has ontogenesisd, but this increase may be primarily because of choices of a subgroup. For example, while many Americans have trim their intake of pork barrel due to concerns roughly fat, overall per capita consumption of pork has increase in the U. S. This increase probably results in large part from immigration from Asia, where pork is a favored dish.Consumption of certain other products has decreased. Many consumers have replaced totally milk with leaner varieties, and substitutes have blend addressable to edit out sugar consumption. sound off and egg consumption have been declining, but this may be reversing as high protein diets gain increasing favor. Some food categories have seen increasing consumption in large part because of heavy packagingal campaigns to stimula te demand. International Comparisons. Americans generally slip by a significantly littler subdivision of their income on food than do people in most other countries. separate of this is due to American affluencein India and the Philippines, families are estimated to spend 51% and 56% of their incomes on food, respectively, in large part because of low average incomes. Food prices in like manner tend to be commence in the U. S. than they are in most industrialize countries, leaving more currency for other purposes. Americans, on the average, are estimated to spend 7-11% of their income on food, compared to 18% in Japan where food tends to be very expensive. This is because food prices are relatively low, compared to other products, here. Food outlets. Food, in the United States, is sell in a diversity of outlets.Supermarkets carry a giving assortment of safes and generally offer lower prices. Certain thingmajig productse. g. , beverages and snacksare provided in more outlets where consumers may be instinctive to pay higher prices for convenience. Distinctions between sell formats are increasingly blurrede. g. , supermarkets, convenience stores, and restaurants all sell prepared foods to go. A small number of online retailers now sell food that can be delivered to consumers base of operationss. This is commonly not a way to reduce costswith delivery, costs are unremarkably higher than in supermarketsbut instead a way to provide convenience to time-pressed consumers.Internationally, there are large variations. In developing countries, food is often sold in open markets or in small stores, typically with more locally produced and fewer put uped products available. Even in many industrialized countries, supermarkets are little common than they are in the U. S. In Japan, for example, many people show in local neighborhood stores because it is impractical to tote to a large supermarket. In some European countries, many people do not own cars, and t hus smaller local shops may be visited frequently. Food is increasingly being consumed away from the homein restaurants, cafeterias, or at food stands.Here, a large part of the cost is for preparation and other services such as ambiance. Consumers are often sort of ordain to pay these costs, however, in egress for convenience and enjoyment. presidency Food Programs. Government food programs, in addition to assist low income households, do increase demand for food to some extent. In fact, increasing demand for farm products was a great motivation than helping poor people for the formation of the U. S. food stamp program. The actual impact on food stamps on actual consumer demand is limited, however, due to the interchangeability of coin.It is estimated that atomic number 53 dollar in food stamps increases the demand for food by 20 cents, but when food stamps are available to cover some food costs, recipients are likely to divert much of the money they would otherwise have sp ent to other necessities. Food Marketing Issues. The food diligence faces numerous marketing decisions. Money can be invested in tell on mark (through advertising and other forms of promotion) to increase all quantities demanded or the price consumers are willing to pay for a product. Coca Cola, for example, spends a great deal of money both on perfecting its formula and on promoting the fool.This allows ascorbic acid to charge more for its product than can makers of regional and smaller smirchs. Manufacturers may be able to leverage their existing brand images by developing new product lines. For example, Heinz started out as a brand for pickles but branched out into ketchup. Some brand extensions may involve a risk of damage to the captain brand if the quality is not good enough. Coca Cola, for example, refused to apply the Coke name to a diet drink natural covering when artificial sweeteners had a significantly less attractive hold.Coke created Tab Cola, but only when aspartame (NutraSweet) was approved for use in soft drinks did Coca Cola come out with a Diet Coke. Manufacturers that have invested a great deal of money in brands may have developed a certain level of consumer brand loyaltythat is, a tendency for consumers to continue to buy a preferred brand even when an attractive offer is do by competitors. For loyalty to be present, it is not enough to merely observe that the consumer buys the equal brand consistently. The consumer, to be brand loyal, must be able to actively push promotional efforts by competitors.A brand loyal consumer will continue to buy the preferred brand even if a competing product is improved, offers a price promotion or premium, or receives preferred video display space. Some consumers how multi-brand loyalty. Here, a consumer switches between a few preferred brands. The consumer may both alternate for variety or may, as a rule of thumb, buy whichever one of the preferred brands are on sale. This consumer, howev er, would not switch to other brands on sale. inciter loyalty is, of course, a matter of degree.Some consumers will not switch for a moderate discount, but would switch for a large one or will occasionally buy another brand for convenience or variety. The Four Ps of Marketing. Marketers often refer to the Four Ps, or the marketing portfolio, as a way to describe resources available to market a product * Product. Firms can invest in the product by using high quality ingredients or doing extensive research and development to improve it. Both McDonalds and Burger King, for example, literally spend millions of dollars to perfect their French friesIn todays Western markets with varying smells and preferences, it has generally been frame that products that offer a specific bring ine. g. , a very tart taste in jamtend to occur correct than me, too products that merely imitate a competitors products. slight is known about Eastern and developing countries. * Price. Different strategi es may be interpreted with respect to price. Generically, there are two ways to make a breadsell a lot and make a small margin on each unit or make a large margin on each unit and settle for lesser volumes.Firms in most markets are better off if the market is balancedwhere some firms fence on price and others on other features (such as different taste preferences for different segments). The same idea applies at the retail level where some retailers compete on price (e. g. , Food-4-Less and Wal-Mart) while others (such as Vons Pavillion) compete on service while charging higher prices. * Distribution. Most supermarkets are offered more products than they have space for. Thus, many manufacturers will find it difficult to get their products into retail stores.