Retailing Proposal Htc 610 Essay

1425 words - 6 pages

CHALLENGES OF FOOD RETAILERS IN FRESH FOOD INNOVATION
Food is any substance consumed to provide nutritional support for the body. It is usually of plant or animal origin, and contains essential nutrients, such as carbohydrates, fats, proteins, vitamins, or minerals. The substance is ingested by an organism and assimilated by the organism's cells in an effort to produce energy, maintain life, or stimulate growth. Historically, people gather food through two methods, hunting and gathering, and agriculture. Food production has become an important issue in most countries. It has become even more critical in the case of developing countries where population growth is sometimes higher than the ...view middle of the document...

On top of that, food retailers have to deal with the intense competition in the food industry itself. Basically there are several factors that become challenges to the food retailer in dealing with fresh food product such as the seasonality and perishability of the fresh fruits and vegetables, the need for frequent deliveries and physical inspections to verify quality, the availability of the products, distance and so on. Global warming also can affect the food production. On the whole, agriculture depends very heavily on a stable climate. Crops are very precise about the soil, moisture, temperature, carbon dioxide and other materials they require. With global warming occurring, the patterns of agricultural production are certainly going to change. Global warming will also lead to more intense weather conditions like heavy rains and floods resulting in more and more crop destruction. These changing rainfall patterns could also shift crop diseases and pests and create water shortages in some areas. How this issue can affect the fresh food retailer? In short, when there are decreases in fresh food production which cause by global warming, this will cause fresh food retailers having difficulties in obtaining fresh food sources. Therefore, when the retailer is hard to obtain fresh food sources, the fresh food prices tends to increase. Due to this matter, the consumer demands of fresh food will decrease because consumers might change their demands to other types of food such as instant food. And finally, this will cause loss for the fresh food retailers.
Another challenge that have to faced by fresh food retailers is the changing of consumer liabilities and demands in fresh food. This is because consumers always want something new and different in their daily life. Sometimes, the consumers’ household income also may affect their purchases of food products in the market. This is because consumers demand tends to be change over the time. In consumer demand, the factors of demographics such as age of the customer, their lifestyle and also their purchasing power has affected the consumer demands toward certain items or products in the market itself. While in marketing environment, several characteristics that gives affect in this matter are based on market structure and power, the increasing number of competition, the aspect political and legal and also the uses and application of new technologies. Before the innovation in food technology, consumers are likely consumed fresh food because there are not many choices in food and it also depends on their area of living. But nowadays, since the technology extends day by day, the food innovation also becomes wider. Canned food is one of the examples of food innovation. Lots of consumers prefer the canned food than the fresh food because it is instant in preparation and save more time in cooking. Meanwhile, fresh food takes more time to cook it such as meats. And because of the high demands of instant food...

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