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Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter13: Services Marketing

Section: Chapter Questions

Problem 1DYMP

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Transcribed Image Text:Read the case study below and answer the following questions. Ready Meal Manufacturers Ready to Respond to a Changing Marketing Environment. It is often said that 'we are what we eat', but it can also be said that what is on our dinner plate reflects the broader marketing environment. One big change in recent years has been the growing demand for ready-prepared meals bought from a supermarket. Previously, dismissed as unpalatable and a poor substitute for 'real' cooking, their sales have grown rapidly in recent years in many western developed countries. An analysis of the reasons for the growth in the ready-prepared meals markets indicates the effect of broader factors in the marketing environment on the size of a particular market. The research company, Mintel reported in 2007 that the market for ready meals in the five largest European countries increased by 5 percent between 2006 and 2007 alone to reach 8.4 billion euros. Furthermore, it predicted a further 18 percent growth to reach the 10-billion-euro mark by 2011. In the UK, the market was worth a total of 2 billion euro, with a much higher level of sales per head of population than in France or Germany. Mintel predicted that between 2006 and 2011, UK ready meal sales would reach 3.7 billion euro, with about a quarter of all Brits likely to eat a ready meal at least once a week. It seemed that the appetite for ready meals would go more slowly in other European countries, for example, Mintel predicted that by 2011, only 9 percent of Germans would eat a ready meal each week. What has driven the growth in the ready meals market in recent years, and why there should be differences in market potential between countries? Technology has played a big role in the growing take up of ready meals. A report by the research body Leatherhead Food International described how new techniques have allowed companies to develop ready meals that preserve taste and texture, while still making them easy to use by the consumer. Furthermore, great advances in distribution management, in particular the use of information technology to control inventories, has allowed fresh, chilled ready meals to be effectively and efficiently distributed without the need for freezing or added preservatives. The structure and values of society have contributed to the growth of the UK ready meal market and may explain why the growth here is greater than in France or Germany. Ready meals particularly appeal to single households and those 'cellular' families in which individual family members tend to eat at different times. Mintel reported that the tradition of family meals together remains stronger in many continental European countries than in the UK, which may help to explain the greater popularity of individual meals in the UK. Some social commentators have reported that young people have lost the ability to cook creatively, as cookery has been reduced in importance in the school curriculum. Furthermore, many UK consumers no longer feel a social stigma attached to eating a ready meal, something which would be anathema to many French people, a country that takes great pride in its national cuisine. Any remaining stigma has been reduced by the number of 'celebrity chefs' who have endorsed ready meals with their own brand image. The impact of the economic environment on sales of ready meals is slightly more ambiguous. As individuals get richer, they can afford to buy ready-prepared food, rather than spend time and effort preparing it themselves. With a tempting range of ready meals now available, from duck à l'orange to beef bourguignon. The consumer with money in his or her pocket will be tempted to splash out on a ready meal, rather than persevere at home with a 'quick' jacket potato or pizza. Although rising income has been associated with rising consumption of ready meals, increased sales have also been attributed to a deteriorating economic environment. As recession bit the UK in 2008, the manufacturer Northern Foods reported resilient sales. It seemed that consumers were trading down from expensive restaurant meals to the alternative of relatively cheap, gourmet, ready-prepared meals. a major supplier of ready-prepared meals to Mark and Spencer Of course, marketers should be more interested in predicting future effects of environmental change on consumption, rather than merely charting historical trends. So, what do current trends hold for future sales of ready meals? The growing pressure on individuals' available time, match with long-term rising disposable income, will doubtless continue to fuel the growth in UK ready meal sales. In a market that is in its maturity stage, more attention will need to be paid to competitive differentiation and understanding the way in which customers attribute value to a product. Many consumers have become increasingly concerned about the health implications of the food they eat, and ready meal manufacturers will need to continue responding to such concerns. For example, they have responded with a range of low-calorie meals and addressed specific, sometimes transient, health fads, with respect to trans-fatty acids and omega-3 supplements. Many consumers have also become concerned about the ecological environment, and some suppliers, such as Marks and Spencer have incorporated sustainability agendas into their ready meals, for example by reducing packaging and sourcing supplies from sustainable sources,

As other countries develop cellular household structures, with more professional, single people living alone, export
opportunities may grow, many companies in the sector have their eyes set on the Chinese and Indian markets,
among others.
Answer the following questions
1. Identify and briefly explain any TWO (2) changes in a global environment that lead to the growth of the
ready meal business.
Sales of ready meals has higher growth in the UK compared to France. Discuss the differences in the
context of social environment between UK and France that contributed to the different rate of growth in
ready meals sales.
2.
3.
Discuss the link between the economic environment and sales of ready meals. Give your answer in TWO
(2) points.
4.
Ready meals are also a growing trend here in Malaysia. Discuss any THREE (3) elements in the
marketing environment that contributed to the growth of the industry in Malaysia.

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