Explain how developments in the consumer market have impacted on food retailing Essay Example

Explain how developments in the consumer market have impacted on food retailing Essay Example Explain how developments in the consumer market have impacted on food retailing Essay Explain how developments in the consumer market have impacted on food retailing Essay Essay Topic: Marketing Developments in the consumer markets have impacted on food retailing whether it is regarding the changes in technology or changes in customer expectations or environmental issues. These changes can affect many different food retailing operations such as; superstores, limited range, discount food stores, petrol stations, home essential stores, city stores, mail order, online stores, farmer’s markets, home delivery. Radical Radical changes are largely to do with technology and how it’s evolved over time and the impact it has had upon food retailing. Radical changes have affected superstores in terms of the 4 large super markets, which are Tesco, Asda, Morrisons and Sainsbury’s. The food retailers have adapted to meet developments by installing self-scan checkouts to reduce queues in stores, this new type of technology that supermarkets have invested in to keep their customers happy, by reducing the time standing in queues. They also have websites where their customers can view the products and services they require to make it easier for their customers and more convenient. Also stock management to ensure supermarkets do not run out of the goods consumers want because % of customer like stores that have products that are in stock. Limited range retailers such as Aldi and Lidl have also been influenced. This is because there are a number of people that use technology. Aldi have produced a website where potential customers can visit in order to see what is available in store and whether the products they require are available for them to purchase. Lidl have also produced a website for their customers to view products which are sold at the stores along with other information about where their produce originates from. They do this in order to make it easier for their customers and to adapt to the changes in the developments in consumer market. Unfortunately they do not have self-scan services or in terms of their technology as they are limited range retailers and only have a limited range of products that customers may require regularly, for example, products such as milk, bread, water etc. Customer markets have also influenced on petrol stations due to technology; it has become more advanced and within the 21st Century things can be purchased from consumer’s mobile phones, computer, tablet etc. Therefore petrol stations have now installed tills which are computerized in which the petrol owner can quickly swipe all food products within seconds instead of having to put in the price in of all the products by pressing numbers. The products are all loaded into a system so the products just need to be swiped, which reduces time for people in queues as it takes less time than typing the prices in on the old tills. Top up/ home essential stores are also influenced by customer market. Because technology have become advanced which means that people are able to find cheap broadband for their technological items, which makes it more simple as they can receive their product in store. It has also impacted on food city stores. Customer market has also influenced mail order as they have allowed customers to order online and get the mail posted to their house. People use mail order to get goods, specialist goods as well as ordering from food specialist such as organic foods, and small producers who are direct to consumers. There has been a massive impact on online stores as People in the UK are now often purchasing product online because every has internet access, people are easily accessible to technology. People are busy at work so they do not have the time to go shopping therefore shopping from online stores is convenient and easier for them, as they can have it delivered to wherever they require online store. They have adapted to this by producing an on-going service where employees at the warehouse fill individual trolleys for each order that needs to be sent out the correct person. Specialist farm producers have been influenced by taking away their business what they got from their city people who used to visit for the fresh produce, therefore have introduced an online ordering service where people can order what they like and pick up after or get their items delivered far, a price the farmers have to travel far into city in order to deliver. Home delivery has also been impacted. This is because many people are working and are really busy to do their shopping so by ordering over the technological devices makes it easier for them to just order over the phone, for it to be delivered at their doorstep. This indicates that thwy had to improve their service with the number of people increasing the usage of technology. Continuing changes are about the changes that are continually happening this can be influenced by fashions, trends and awareness. Customer expectations and demand Customer expectations and demand must be met if a business will want their customers to return and purchase from their business again. They must guarantee their demands and expectations are met in order to gain customer loyalty and enhance relationship with their consumers. Superstores have been impacted because they introduced 24 hour opening for the convenience of customers. This is because as superstores are very big, customers expect that they have every single item of products as they are the biggest buildings where all food products can be found, meaning that businesses must keep to customers’ expectations and respond to their every appropriate demands. This indicates that business with superstores must guarantee they have all the stock within the superstore to be purchased by customers. Limited range and discount food retailers have also been influenced positively, as there has been a demand in the increase of these stores for the reason of the recession. Home essential stores have also been influenced because they are known as convenient stores/top up stores. Meaning, once a person has purchased products from that store they will want the same quality of products again, if customers’ demands enhances then they must achieve this by purchasing more from suppliers. They must also keep to customers’ expectations of service as well as availability. This indicates that having these have increased because customers want convenience. Mail order has also been impacted. This is because customers are ordering food mail, the food retailer must ensure that the package if delivered in its correct form which no product damaged on the way, as customers’ expectations will be increased, since they are getting their order delivered, this means if the package is delivered in the correct state it will increase demand in future and ensure that the customers’ expectations are in the mind. There are lots of specialist’s food available, which is direct online from the producer which includes farm goods, fishing goods, ready-made meals and organic veg etc. Online stores have also been impacted. This is because it is harder for them to persuade people to use their service as they are an online store where people have to order online instead of visiting a store. This means that the online store ensure that the packages are delivered in the correct form in order to respect customer’s expectations and please them as well as increase demand for future. This also links to superstores as Morrison’s now offer online shopping for the first time due to customer expectations/ demand. Customer expectations and demand have influenced farmers markets. More towns and councils offer farmers market on a regular basis due to demand from local communities. home delivery has also been influnced by customer market this is because like online store people shop from home and so therefore expect that their shopping arrives in a perfect condition. Meaning that home delivery food services deliver the food products in a perfect form in order to please their customers and work up to their expectations, as well as increase demand for service in future. This also links to online delivery via supermarkets. Changing Social and working patterns. In the 21st Century there is now a variety of different food ranges depending on how different people live their lives. Also some stores now remain open for 24 hours to work around every ones hours. This has impacted on superstores. This is because people have different tastes and lifestyles, some live fast food where other are health conscious. This means that big superstores must keep a variety of food to match all. Superstores ensure this now by putting on the amount of calories on each product they sell for those who are health conscious to limit how much they eat according to their lifestyle. Also working patterns have affected super stores. Superstores have adapted to this by opening 24 hours for those who either work days so can do their shopping at night or those who work nights can do day shopping so it can fit around everyone’s schedule. Changing social and working patterns have influenced discount food stores have expanded because of those who have a low incomes end after the recession to help them get the same quality of food but at an affordable price. They do this by providing discounted affordable food with quality to those who cannot afford high prices of superstores. Their working pattern does not consist of 24 hours as they may be independent opened stores. Petrol stations have been influenced because many have expanded upon the range of products they sell. They have also introduced coffee machines and partnerships with Subways, Spar shops etc. The change in working pattern for this is that petrol stations have adapted to stay open 24 hours as at the middle of the night some may require food and drink as well as fuel so having small stores open within the petrol stations is cheaper to run as they hold the same variety of products in a normal superstore and more convenient if it’s a popular petrol station. Home essential stores have also been influenced. This is because people have different lifestyles and ways of living so they ensure they have every different type of product. This can be dependent on region for example in Bradford a lot of home essential stores sell spices to use in Asian food. Mail order has also been impacted. This is because busy people may order their food via mail making it easier for them to collect as they may require a special type of food products. Customers can also order 24 hours a day. This also means it means to purchase specialist food products. Consumers use online methods as they want better quality goods. This has also impacted on online stores. This is because online store have been introduced to help those with a busy lifestyles. They adapted to this by allowing the customers to order online and the either picking it up or delivering. They hold a variety of foods depending on a person’s taste or lifestyles. Their working pattern however is not 24 hours therefore the deliveries are made through the day but the order can be made any time. If at night the delivery is made then it will be ready the next day. Farmers markets have also been impacted by changing Social and working patterns, this is because some people like freshly grown produce and therefore go to the farmers markets. This means farmers ensure that the produce is fresh from the day before for the customers to purchase. Because of this more towns and cities are organising famers markets. Home deliveries have also been influence by Changing Social and working patterns, this is because of people with busy lifestyles. Supermarkets have adapted to home delivery for those with busy lifestyles. They have adapted to do home delivery for those with busy life styles and other reasons. However their working patterns are not 24 hours. As such services often allow the customer to have food products delivered on a particular day at a particular time. Affluence Affluence is how much money a person earns in a household. This is central to the food industry because the higher the persons income they higher quality they will purchase and vice versa. People can have high levels of affluence and low levels of affluence. Depending on the income people get in their household, can influence the food industry in terms of them providing their customers with products that they are able to afford for those who have a low income. However people who have high affluence are people who have a high income of money within the household. Meaning those people with higher incomes will purchase products that have a better quality in terms of ingredients. There will be those who will pay the price of premium good such as luxury cuts of meat, expensive cheese, and expensive fish such as caviar. Also those who have a higher affluence are those who will want more organic goods than those of less affluence. This is because they are more health conscious and know more about organics goods and how they are doing well by consuming them. Also those who have specialist diets will be those from the high affluence category where they are purchasing the high end quality products which are included in their diet and will look for products which have low calories and less chemicals in order to help their specialist diet to progress. This means that business must ensure that the goods must be available in order to provide the goods that people will higher affluence require. Those who are less affluent have impacted the food industry in terms of the increase in food discount stores and the economy ranges. Therefore this has impacted the food industry to increase stores that store low price food for those who have a less household income in order for them to get the same helpful service as those with affluence. Increased Mobility Increased mobility has made a massive development. This is because there are a number of ways people can get to a store without walking. This can be done by getting the bus, taxi, tram, car, train etc. Increased mobility is about increase in people being able to move around via cars that many have purchase as there has been an increase in people being able to move around. The overall influence it has on the food retailers is that they have had to adjust by increasing car parking space in order for their customers to park their car in the safe car park whilst they go shopping. This means that the more people who are purchasing cars and using cars means that the food retailers must find a place where they can park the cars this means either the businesses investing in a plot of land that’s available next to their stores or either when buying land look for a place that has the potential to become a car parking space. This means that businesses must allow the access for cars to come due to the increase in people with cars because customers will not come to a business where there is not facility for cars, therefore a business must have access for cars if they want their business to work and attract more customers. As there has been an increase in people using cars it means food retailers have not only had to provide more parking for them but an easy in and out access so cars are not stopping the entrance. This also has meant for them to introduce drop off and pick up bays for those who travel by taxi cars. Therefore food retailers have been impacted by increased mobility a lot as they have had to increase their service in many different areas to do with car mobility. Environmental Issues Environmental issues consist of waste and carbon emission. Environmental issues have influenced superstore. This is because they are big and produce more waste and as their deliveries are quite regular to the store, this means their carbon emission is high if little orders are placed and a big truck delivers it. Therefore superstores have adapted to reducing waste by only using the amount of packaging they require and recycling those that are not useful to use again and reducing their carbon emissions by switching off unnecessary lights at the end of the day and by making a delivery all in one to save Tesco’s depot coming backwards and forwards with small delivered in a big truck. Limited range retailers been influenced by environmental as this is exactly like superstores however less of the waste as they are a smaller limited retailer, however their carbon emission is high as they are transporting good from Europe to England as this will burn a lot of fuel. Discount food stores have been impacted in terms of waste when food goes off due to short shelf life and an overload of stock leading to waste. This means that the have adapted to just buying the correct amount of short shelf life stock in order to reduce their percentage of waste. Petrol stations have been impacted in terms of plastic waste and carbon emissions. They have adapted to reducing the amount of unnecessary time fuel is refilled ad are recycling plastic instead of burning it with coal and creating carbon dioxide. Home essential stores have been influenced in terms of topping up too much stock and having to throw it away due to the slow sales at time. They have adapted to reducing waste by keeping things that are more commonly demanded for everyday use. Environmental issues have influenced city stores. This is due to the wastage they gather in terms of packaging as well as food which doesn’t sell especially those with short life. Although they may be busy they will still have some waste so they have adapted this by only getting a certain amount of stock in order to reduce waste per week. Mail order has also been impacted. This is due to carbon emissions. Therefore they have adapted this development by having the parcels sent to the owner by region/ city so the vehicles don’t have to travel far and won’t produce a lot of carbon emission. Online stores have also been impacted. This is due to them delivering the package which makes carbon emissions along with packaging waste. Therefor they have adapted their thinking in delivering just like mail order from the closest city or region. Farmers markets have been influenced such as the carbon emission from the machinery. In order to adapt to avoiding carbon emissions they have started to hand pick veg and fruit which do not require machinery to avoid producing Co2 as they do that when travelling to markets to sell. Home delivery has been impacted in the obvious state of producing carbon emissions. Therefore they have adapted to use small vans instead of big trucks to reduce carbon emissions but also sending the orders out from local stores so fuel isn’t used up quickly and carbon emissions are lowered. In conclusion, developments in consumer markets have impacted on food retailing whether it is a big development or small, they are influence. Many retailers have had to change plans in the way they transport goods and well as how they would meet customer expectations and adapt to changing society. This all has to be done to match everyone’s taste in order to make customers happy. Also they must always be aware of such developments if food retailers are to give the customer what they want and remain successful.