Thursday, December 19, 2013

Chapter 5 INDUSTRY AND MARKETPLACE

5.1 The Industry

5.1.1 Definition of the Industry



Pepperidge Farm is a food industry that makes cookies and crackers that supply to over 45 countries. Any industry that involves processing of food can consider as a food industry. Food industry is one the largest industry out there because the demand of food is continuous since human need food to survive. Therefore, food industry is consistently growing industry. Food industry is one of the competitive industries, because there are so many food industries selling similar product out there. It is very subjective when come to selecting which product from which company is better because individual flavor is very depending. Hence, different company selling similar product will always have their own supporter.
Food industry also no longer new industry, it already come to a mature state that less fluctuation will happen in this industry. But continuous growth of this industry is ensured.

5.1.2 Shape of the Industry

Food industries are high volume and high demand industry. Most food industries are running mass production since the product they have might not change even for hundred years and the demand is high. Food industries have very wide market because food needed all over the world and no matter how old you are, all human needed food. The only way to expand food industries’ business is to make the product available to as many people as the company can. Even food industries are quite saturated, but if a new company with a product that is more favorable by most of the consumer out there, the potential for the company to growth bigger is possible. Therefore the potential for this industry are still high and the huge market is always there.
Besides that, the government control of the food process has increased with the passage of the new laws. From the research shown, consumers do not trust their food suppliers as much as they used to.

5.1.3 Development of the Industry

Food industry produce daily consuming product for the consumer, the growth and the sustainability of this industry is never ending. Food has been processed for a nearly as long as it has been used. As long as there is human out there, this industry is needed. To increase the business in this industry is to let the company’s product available to as many people as possible. The future of this industry is directly affected by the population of human being. As the population of human increase, most probably this industry will increase. The growth of this industry may not very high, but this industry is sustainable.
Even this industry is sustainable, but develop of new product are still required in order to attract more customer and to stay competitive. Currently the change of packaging in this industry seems to be more happening due to the change of life style of the community. Hence, the development in this industry is not only in the food itself, but also the way it being sold.

5.2 The Marketplace

5.2.1 Current condition of the marketplace

Current marketplace condition for food industries is quite optimistic. Human needed food no matter how poor they are. So there surely is a marketplace for food industries. Snack food is not a very expensive type of food. Targeting medium income personnel, which is majority at the market. Therefore, the targeting market is wide compare to other industry. Also the targeting age group also one of the widest, targeting people from age of 3 to possibly 80.
With that kind of market available, the potential growth of the industry seems to be better than most other industry. With the habit of human tends to looking for convenient available food and also type of food that easy to carry. Snack food market seem to have the good future and correct direction, which serve the exact purpose of easy to carry’s food to the consumers.
Current condition for food industries is not only competes against the food that they selling. Even the packaging of the food also becomes one of the competing factors. Compare to 10 years back, packaging of cookies only available in tin container or big plastic bag. But now, most cookies manufacturer start to pack their food into a small plastic bag which is easy to carry and for one time consume. This also reflects the habit of human as mention before.
Compare to last 10 years, nowadays most food manufacturer also will provide more than 1 variety of food to the market, they not able to survive with only one type and flavor of food. The strategy of producing different type of food to attract more and different consumer is always the direction of food industries.



5.2.2 Change in Marketplace

Positive:
- Development of the new target markets
- There will be more competition in markets bring the growth of the industry


Negative:
- There will be changing in lifestyle
- More competition will cause low price, that affect lee income profit. 

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