Introduction
A company called Passionate About Food is developing a food product called Simply
Us and Ours, which are ready- made meals that need to be heated up and served in
a matter of minutes. Not only that the company specializes in producing authentic
national dishes from different countries. Lastly they plan to retail it using different
retail outlets in order to make sure it reaches their target audience.
Competitors
The largest retail food industry has many large competitors that are already
dominating the industry. A few of them are Walmart, Carrefour and Tesco. The
largest food retailer in the world Is Walmart, with a total of 4700 stores and available
in 15 countries, Walmart made $520 billion in sales in 2020. Second in largest food
retailers is Carrefour with a revenue of $82 million in 2020, with over 321,000
employees. Carrefour also has around 12,000 store locations across 30 countries.
Lastly Tesco which is mainly based in the UK, made a sales revenue of $54 million in
2020, with around 7,000 stores and over 400,000 employees and present in 13
countries. This goes to show how large the retail food industry is and how much they
are making each year due to the large demand in items such as ready-made meals.
By being able to distribute their product through these retail outlets there would be a
high chance that it would be exposed to the public and people would start trying it if
they say a new item on the shelf for an affordable price.
Market size, share and structure
The Size of global retail food industry is a whopping $11.7 trillion dollars, while the
size of retail food industry in just U.s alone in 2019 is $653 billion. This goes to show
how large the demand in the food retail industry is and that people would be willing
to try something new and unique. The market structure of the retail industry is an
oligopoly structure, which describes a small group of companies that collude to raise
prices on products because of excess demand. For example, the market structure of
restaurants are a monopolistic competition, there are a lot of restaurants, they all
serve food but it varies and they control their brand and their price. From the market
structure many companies are able to find the characteristic of that particular market
and find a suitable price to charge that is most suitable.
Target Market
The target market for the product can be anyone who is independent in bringing in
their own income or a family who is providing the food for their kids. The target
, market for food in this scenario would be anyone above the age of 18 as children or
teens are not going to be going to the supermarket to buy ready-made meals as that
is the job of a parent or individual living by himself. Aiming for the right target market
is extremely important for a business to succeed and develop their business further It
is important for the business to make sure they are charging the right amount and
make sure it’s affordable for everyone. Appealing to the right audience can hugely
impact the business in a positive way in terms of sales and profits.
Trends
Some trends in the retail food industry are the rise of healthy food, single living
through food, diversity infood, cost pressure etc. The rise of healthy food means that
every now and then people have a change intaste and want to start eating healthy
food due to various reason concerning health or that they heard some facts about
why healthy food is good for your body, that’s why it’s important for the company to
incorporate vegetables and healthy ingredients in most of their meals .Single living
through food means that it is an individual who does not have times to cook
something luxurious so he just requires something cheap, tasty and quick and a
ready- made meal like this could possibly check all those boxes. lastly diversity
through food could possibly mean that sometimes people normally want to stay true
to their roots and eat the food of their country whilst other times most people living in
U.S. or U.k want to try something new and get the feeling of trying food that they
would get around the world and that instead of travelling to that country they can
enjoy the experience it at their local retail store. While trends are important for a
business to follow and predict, in the food retail industry it does not change a lot and
mostly remains the same so whilst it is important it may not be as important as
compared to a clothing store.
External influences
External factors affecting the food industry are government policies, regulation on
food packaging, food safety, economic determinants such as unemployment and
income, all these factors impact the consumer’s choice on whether he wants to buy
the product or not. Focusing mainly on economic determinants, if a person if
unemployed or has a minimum wage job he needs to keep track of how he spends
his money. Even though the price of the product being $4.99 may seem low to a
person who is unemployed or earning minimum wage that may still be high and may
think twice if that really is the cheapest product he can find, whilst that not be the
case for most people it does affect sales even in the smallest manner. Not only that
but if there was a pandemic were to occur, depending on how serious it is shops and
supermarkets would shut down and all income coming from those products would be
cut off immediately, again affecting the business based on something that they had
no part in doing or nor can they control anything in a situation like that. Lastly if a
food product does not clearly mention the ingredients that it contains and someone
A company called Passionate About Food is developing a food product called Simply
Us and Ours, which are ready- made meals that need to be heated up and served in
a matter of minutes. Not only that the company specializes in producing authentic
national dishes from different countries. Lastly they plan to retail it using different
retail outlets in order to make sure it reaches their target audience.
Competitors
The largest retail food industry has many large competitors that are already
dominating the industry. A few of them are Walmart, Carrefour and Tesco. The
largest food retailer in the world Is Walmart, with a total of 4700 stores and available
in 15 countries, Walmart made $520 billion in sales in 2020. Second in largest food
retailers is Carrefour with a revenue of $82 million in 2020, with over 321,000
employees. Carrefour also has around 12,000 store locations across 30 countries.
Lastly Tesco which is mainly based in the UK, made a sales revenue of $54 million in
2020, with around 7,000 stores and over 400,000 employees and present in 13
countries. This goes to show how large the retail food industry is and how much they
are making each year due to the large demand in items such as ready-made meals.
By being able to distribute their product through these retail outlets there would be a
high chance that it would be exposed to the public and people would start trying it if
they say a new item on the shelf for an affordable price.
Market size, share and structure
The Size of global retail food industry is a whopping $11.7 trillion dollars, while the
size of retail food industry in just U.s alone in 2019 is $653 billion. This goes to show
how large the demand in the food retail industry is and that people would be willing
to try something new and unique. The market structure of the retail industry is an
oligopoly structure, which describes a small group of companies that collude to raise
prices on products because of excess demand. For example, the market structure of
restaurants are a monopolistic competition, there are a lot of restaurants, they all
serve food but it varies and they control their brand and their price. From the market
structure many companies are able to find the characteristic of that particular market
and find a suitable price to charge that is most suitable.
Target Market
The target market for the product can be anyone who is independent in bringing in
their own income or a family who is providing the food for their kids. The target
, market for food in this scenario would be anyone above the age of 18 as children or
teens are not going to be going to the supermarket to buy ready-made meals as that
is the job of a parent or individual living by himself. Aiming for the right target market
is extremely important for a business to succeed and develop their business further It
is important for the business to make sure they are charging the right amount and
make sure it’s affordable for everyone. Appealing to the right audience can hugely
impact the business in a positive way in terms of sales and profits.
Trends
Some trends in the retail food industry are the rise of healthy food, single living
through food, diversity infood, cost pressure etc. The rise of healthy food means that
every now and then people have a change intaste and want to start eating healthy
food due to various reason concerning health or that they heard some facts about
why healthy food is good for your body, that’s why it’s important for the company to
incorporate vegetables and healthy ingredients in most of their meals .Single living
through food means that it is an individual who does not have times to cook
something luxurious so he just requires something cheap, tasty and quick and a
ready- made meal like this could possibly check all those boxes. lastly diversity
through food could possibly mean that sometimes people normally want to stay true
to their roots and eat the food of their country whilst other times most people living in
U.S. or U.k want to try something new and get the feeling of trying food that they
would get around the world and that instead of travelling to that country they can
enjoy the experience it at their local retail store. While trends are important for a
business to follow and predict, in the food retail industry it does not change a lot and
mostly remains the same so whilst it is important it may not be as important as
compared to a clothing store.
External influences
External factors affecting the food industry are government policies, regulation on
food packaging, food safety, economic determinants such as unemployment and
income, all these factors impact the consumer’s choice on whether he wants to buy
the product or not. Focusing mainly on economic determinants, if a person if
unemployed or has a minimum wage job he needs to keep track of how he spends
his money. Even though the price of the product being $4.99 may seem low to a
person who is unemployed or earning minimum wage that may still be high and may
think twice if that really is the cheapest product he can find, whilst that not be the
case for most people it does affect sales even in the smallest manner. Not only that
but if there was a pandemic were to occur, depending on how serious it is shops and
supermarkets would shut down and all income coming from those products would be
cut off immediately, again affecting the business based on something that they had
no part in doing or nor can they control anything in a situation like that. Lastly if a
food product does not clearly mention the ingredients that it contains and someone
