P3: Explain how developments in the consumer market have impacted on food retailing

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P3: Explain how developments in the consumers market have impacted on food retailing

Developments in the consumer market

Radical developments in the consumer market

In the online dictionary radical refers to changes that have immediately occurred like a mutation or even changes in trends in society, in recent years relating it to business radical change has occurred in on online shopping where it has become a lot more acceptable, where many business including Tesco has released a click and collect service so that they can meet these changes to “stay on top of their game”. Other radical changes include changes that have occurred when there is a change that has occurred in products that are acceptable for instance product that are like food for instance chocolates are now acceptable to eat a breakfast, lunch, dinner, tea and supper so demand has increased in these specific products so business needs to meet these demands. 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.

Continuing changes in the consumer market

Continuing changes are about the changes that are continually happening this can be influenced by fashions, trends and awareness. A continuing change refers to a trend that is customers want value for money, because of the tight budgets that they have so they wish to save money wish is now sociable acceptable, businesses do this so that their shopping experience is more pleasant online or in store.

Customer expectations in the consumer market

Consumer expectation generally refers to the needs and wants. Consumers may also have high expectations for new products that have been given a lot of exposure. Consumers can be broken down into three groups: those who are expected to buy, those who are not expected to buy, and those who are undecided about making a purchase. What customers think and feel about a company and/or its products is a key aspect of business success also. 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.

Changing social and working patterns

Changes in social and environment include changes like working patterns that have occurred for instance more people are concerned about their health where they want to live healthier life style, Supermarkets for example Tesco’s can find information about what information they need through the club card system, where they pick up new trend that are occurring in society and 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 working people’s hours.

.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 for example people have high affluence on new ranges like Tesco finest. 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 ...

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.Affluence

Cultural and lifestyle expectations

Lifestyle food also impacts on the consumer market provides forced retailers to help stock and promote more of new food and dietary food with the consumers’ demands and also expectations. This is mainly because consumers are getting to be very aware of the kind of food they consume many consumers are getting very concerned of the place that the fresh food they purchase arises from. In fact the majority of food sold with superstores or every other retail stores will most likely be fresh food. Because of this specific, farmers’ shops have multiplied a whole lot during the modern times. Some consumers now rather buy their own product directly from these farm shops then going to their usual food markets. This is what exactly drove most suppliers to increase the quantity of fresh food and also dietary food within their stores to ensure they satisfy your wants of the consumers and also to adapt to most of these changes.

With all the radical changes came also increased mobility which is a chance to move freely wherever one wants. This refers simple fact of introducing a fresh cultural type regarding food from different countries. For case in point, people from most of Asia or Africa will take their types regarding food preference and according to these; food retailers begins supply this type of food. The UK food retail market have been influenced by this specific increased mobility food and is also still continuing to do so. Nowadays in Britain, we have various kinds of that are actually from other countries for example India, Pakistan and many others...

Two or much more cars household

Because having a car helps consumers to relocate more, they more you are able to move with the car the more having access to various and diverse food can be. Thanks to the technology of the car, customers can go wherever to obtain the food they want it doesn't matter how far it really is. Also having a car enables the shoppers/consumers to buy more food and products simply because they have more space within their cars. Retailers also must adapt to this specific change and to do so; they had to present more parking spaces to customers because of their cars. Giving more area to customers attracts shoppers since many people now do their shopping using their cars.

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. Also with all the radical changes came also increased mobility which is a chance to move freely wherever one wants. This refers simple fact of introducing a fresh cultural type regarding food from different countries. For case in point, people from Most of Asia or Africa will take their types regarding food preference and according to these; food retailers begins producing this type of food. The UK food retail market have been influenced by this specific increased mobility food and is also still continuing to do so. Nowadays in Britain, we have various kinds of that are actually from other countries for example India, Pakistan and many others...

Attitudes to environmental issues retailers had to start sell varied forms of food from these countries to ensure they keep updated with the client market of today as well as changes. This move is basically important for retailers who would like to be successful within their business

Retailers also must adapt to the change on the market about the means they sold their food because of attitudes to environment issues. Retailers had to gauge the recipients and also food containers they employed to sell their products with the effect it has on the environment. People have increasingly realize the types of containers as well as wrappers the have got around their food coming directly on the stores.

Climate change levies

Is a levy on energy delivered to non-domestic users in the United Kingdom. Its aim should be to provide an incentive to improve energy efficiency and also to reduce carbon emissions. This also refers to the fact that the production of all products nowadays consists of pollution, from good packaging towards actual food all of us consume and so that you can change that retailers ought to produce without making an excessive amount of pollution.

Technology

With all the radical changes, there were clearly new inventions such as technology. Some of most of these technologies includes clubhouse coding, scanning, devotion cards. All these new technologies have come to reshape the some aspects of the consumer current market.

Bar scanning appliance were invented within the 1950s and was introduced towards consumer market, from then it happens to be used to help the purchase of every product from meal to electrical. Within the modern days, we have bar scanning machines with big supermarkets wherever customers can directly scan and buy their products without needing to wait in large long queues to think about.

Loyalty card can be another new technology that affected the buyer market, these cards are offered to the majority of loyal customer’s intern of their faithfulness towards business or simply as a reward for becoming honest and loyal towards business. Retailers have must adapt to this specific change by giving loyalty card for their customers who haven’t proven any type of loyalty and perhaps it is employed to attract new buyers

Sustainable products

Sustainable products are those products that provide environmental, social and economic benefits while protecting public health and environment over their whole life cycle, from the extraction of raw materials until the final disposal. Customer satisfaction: any products or services that don’t meet customer needs will not survive in the market in a long term. A retail store must make the place a safer and healthier place and more connected to others (customers) also solving the needs of customers.

Customer service

Customer service is a vitally important differentiator across the retail industry. Regardless of whether the customer proposition is higher value or basic/simple, the challenge is to develop a retail service model that treats each customer as an individual and maintains satisfaction and loyalty levels.

Many organisations reflect the drive of an individual and their personal focus on the importance of customer service. If this individual is senior within the retail business, it will greatly impact the culture and the emphasis placed on the customer experience. In small companies this will tend to be driven by the owner. Customer service is a key competitive differentiator and should be seen as a long-term commitment and will not succeed if it is viewed only as a short-term tactic

Giving your customers a personalized loyalty card to keep in their wallets can be a simple and easy way to boost name recognition and sales for your business. Customer loyalty matters because selling more to existing customers is easier, and cheaper, than finding and selling to new ones. Loyal customers tend to buy more, more regularly. And they will frequently recommend your business to others.

Seasonal changes

When seasonal changes happen for example when summer comes, family’s mostly go out for barbeques or picnics maybe at the back garden or go somewhere far to enjoy a day out, retail stores make some money because some people might go to Asda or Tesco butchers to get meat for barbeque.

If supermarkets have different types of foods for festivals times such as Easter then that means customers are able to purchase whatever products they want, depending on their diet as well as their preferences in taste. The ways in which food retailers can adapt to having different types of product is to obtain information by researching what products people will mostly buy during the festival of Easter and what price they would buy them at. They should plan to provide suitable goods at Easter time by storing all the products that are going to be popular within a few months before, for example putting up posters or adverts so it attracts more customers when the festivals arrives not only that but more profit to the business.

During these seasonal changes food retailers have different kind of food for example the festival of Ramadan, Muslims love to go out and buy food to break their fast after so many hours for example sweetness foods that have been baked or dates because Muslims to break their fast they eat a date to end the fast and start eating. Another example the festival of Christmas. For people to celebrate Christmas they love eating Christmas dinner so food retailers need fresh turkeys to attract their customers.

Also people diets change or people are allergic to certain foods, food retailers should have certain foods for certain people for example someone who is on diet wants food that is not high in fat but high in protein to balance their diet. Another example some people are allergic to nuts that are in certain food products, food retailers should have different kind food products with different kind of ingredients to support the needs of people with allergies or diabetes.

Last year Trade doubler released data showing that during periods of sunny weather, online sales decreased. They reasoned that when the weather is nice, consumers are more likely to be outdoors, and less likely to shop online. The graph below shows the inverse relationship between sunshine hours and online sales. However, the data does not state what verticals they examined, or what locations the traffic was coming from.

What this graph doesn’t account for is sales of hot weather products such as BBQ’s and sunglasses – which will of course increase sunshine hours. However, for online retailers pleasant weather will result in a significant loss of business to high street stores

The source used for the graph-