Marketing Environment Using AI Assignment

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University of Southern California *

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307

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Marketing

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Jan 9, 2024

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Question: What are some current events or ongoing trends that are likely to worry marketing managers for fast food restaurants and what are some expected changes to occur over the next decade? Links for the two articles I used: - https://www.foodbusinessnews.net/articles/22941-fast-foods-future#:~:text=According% 20to%20industry%20stakeholders%2C%20three,is%20making%20it%20easier%20for - https://www.globenewswire.com/news-release/2023/09/18/2744378/0/en/Online-Food-Deli very-Services-Market-in-an-Era-of-Rapid-Evolution-Future-Market-Insights-Inc.html AI: Black Font Non-AI: Blue Font Marketing managers for fast food restaurants are grappling with several current events and ongoing trends that are likely to pose challenges, while also preparing for anticipated changes over the next decade. Concerns include the increasing focus on health and wellness, with consumers seeking healthier options, and the need for marketing strategies that convey the improved nutritional value of menu items. Sustainability is another concern as environmental awareness rises, pushing fast food chains to reduce waste and adopt sustainable practices. The digital transformation of the industry is ongoing, requiring managers to stay abreast of digital marketing trends and user experience while addressing data privacy concerns. The growth of third-party delivery services has reshaped the landscape, necessitating optimized delivery options and partnerships. Food quality and transparency have become paramount, demanding marketing that aligns with these values and provides information on sourcing and quality.
Over the next decade, fast food marketing managers can expect significant changes. The rise of plant-based and alternative protein options will continue, requiring adaptation of menus and effective promotion to cater to the expanding demand. Virtual restaurants and ghost kitchens, dedicated to delivery, will likely become more prevalent, necessitating novel marketing approaches. Automation and AI will play an increasing role, from ordering kiosks to personalized marketing, requiring managers to understand and implement these technologies. Localized marketing efforts will gain importance, utilizing data analytics to tailor offerings to regional preferences. Health and safety concerns will persist, necessitating communication of safety protocols and cleanliness in marketing. Regulatory changes, such as food labeling and advertising restrictions, may evolve, requiring managers to adapt strategies accordingly. Emerging technologies like virtual reality and augmented reality may enhance the customer experience, while cultural sensitivity will be crucial in resonating with diverse consumer demographics. Overall, agility, innovation, and adaptability will be essential for marketing managers in the fast food industry over the coming decade. According to Food Business News, a current trend in the foodservice market is the growth of plant-based foods, including protein. Despite current setbacks in plant-based protein, owners of fast food restaurants believe the plant-based market will grow over the next eight or 10 years. As the population of vegetarian and vegan people greatly increases, it might be smart for some of these restaurants to add items in their menus which target this group of people. But even so, some of these fast food restaurants are so based on having “unhealthy” food that it would be very difficult to change. In addition, there has been an increase in demand around the type and quality of the raw material to be used and portioned muscle meat, as well as tightly defined weight, shape and dimensions of the products to be supplied. Fast food consumers want to be sure that what they are eating is healthy and convenient so products made from freshly portioned muscle meat are seen as being “healthier” than products made from formed meat. Another recent trend among fast food owners is the belief that increased investment in delivery channels, including direct digital
ordering, will bypass costly third-party partnerships. Supply chain and food supply problems will continue due to inflation and rising food costs, so fast food restaurants may have to reduce items on their menus to deal with these issues. As a result, “Ghost kitchen” restaurants will continue to grow because of their emphasis on takeout instead of dine-in and direct customer interaction. The automation and contactless services are also on the rise. During the pandemic, many fast food places embraced digitization to stay in business and connect better with customers. That trend is continuing, because it reduces the need for labor, and increases profit and customer satisfaction, all at the same time. Furthermore, Future Market Insights talks about customers now have access to an array of various applications, including online meal delivery services on their smartphones that allow them to easily make orders with their chosen eateries by browsing a list of establishments. This has caused an increase in the demand of online food delivery services in the fast food market due to the convenience, time savings, and different cuisine alternatives it provides customers. Overall, all these trends are likely to worry marketing managers for fast food restaurants since many of them would have to change their menus and the way their food is made due to increased health concerns and they will also have to be able to keep up with the increasing use of technology and mobile delivery services.
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