Beatrice Teston
Professor Persily Lamel
September 26, 2012
Section 001
The Grocery Industry is one of the
most profitable industries in the world. According to the article “The Top 10 Snacks Companies,” the snack
industry has a forecast value of $89 billion in the year 2013. What had
fascinated me about this article was reading that the three companies that had
majority control of the global snacks industry were PepsiCo, Kraft Foods, and
P&G. You never really realize the global scale these companies have taken
on while eating your food at the kitchen table.
The most intriguing part of this article to me was how the actual top 10
snack companies had been chosen. It was more than just who had the most revenue
in the past decade or which company had the most innovations. The article had
stated that companies had been compared in terms of market size, competitive
positioning, key drivers and resistors, and trends.
While furthering my research on the
grocery store industry, I hope to go more in depth about the background
concerning the actual marketing and advertising of supermarkets and companies
that provide their products. Additionally, I want to examine how coupons and
discounts work and affect grocery stores without hurting the industry as a
whole.
One interesting fact is that PepsiCo
had formed a business alliance with Calbee Foods in 2009. They had let Calbee
Foods take full control of Frito-Lay Japan while they were able to obtain 20%
equity of Calbee Foods. I feel as if the grocery store industry has a very
steady future ahead of it filled with innovations in snacks, product flavors, marketing,
and customer quality. Grocery stores are the number one way to distribute
products directly to consumers.
http://360.datamonitor.com/Product?pid=BI00012-033&view=d0e11
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ReplyDeleteI know one reason how grocery stores use coupons without losing profit. It was in chapter 14 when we learned about pricing strategies. This circumstance is called the high-low pricing strategy, when prices are set higher than the "everyday low price" stores but have many sales where prices are lower than competitors.
ReplyDeleteIt also says however that the high-low pricing strategy urges consumers to wait for sales as opposed to buying their things on the spot. This cuts into the profit of the companies and the grocery stores. Places like the internet majority of the time offer better deals which is also competition for grocery stores.
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