Essay on ready to eat food

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Essay on ready to eat food

Hire Writer There is high competition existing among RTE cereal companies; the Big Three companies had strong position and market share in the industry and are continuously introducing new brands and products causing increased competition in the industry. The high entry barrier in the RTE cereal industry was another factor that contributed to its high profitability and made the industry even more concentrated over time.

The cost to manufacture RTE cereal was high to achieve a minimum efficient scale.

Essay on ready to eat food

The high cost for building a cereal plant and labor requirement made the capital requirements enormous for a new entry, contributing to our argument that the entry barriers are high. Existing Big Three companies were believed to restrain competition and new entry among themselves.

They owned strong distribution channels and focused on the proper stocking, display, and promotion with supermarket chains and food stores, leaving little room for new companies to enter the industry.

By guaranteeing their products maintain at the most valued center-aisle positions, providing discounts and cash payments to retailers, major companies made new entry to the industry unprofitable.

In addition, existing major companies promoted coupons and in-pack premiums such as free toys and gifts to increase product sales and build brand loyalty. They also offered discounts to retailers for special treatment and promotions.

Existing major companies also introduced a majority of new products and brands, making potential companies unable to enter the industry. The industry crisis began when consumers started buying natural cereals.

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The Big Three did not prepare for this consumer demand, allowing other competitors to gain part of the market share. The threat of a substitute product, natural cereals, was increasing rivalry among competing firms in the RTE Cereal Industry.

Although it was hard to imitate the Big Three, competitors found a way around this and found substitutes that consumers were interested in. Private labels also had a better relationship with the grocers because of the better margins they offered to them.

This was a bargaining tool Private Labels used to their advantage. In addition to allowing competitors into the industry, the Big Three hurt themselves by spending millions of dollars on coupons and advertising.

There was little to no results that proved these methods were effective in gaining market share. Another factor of the industry crisis was due to the fact that the Big Three stopped their united front of raising prices together.

The Big Three no longer made strategic moves together and in return made it easier for others to enter the industry. At the start of the RTE Cereal Industry the Big Three offered value to their customers, however over time their capabilities were possessed by many competitors, not making their organizations rare.

This hurt their competitive advantage among the market. In the end the Big Three were not able to compete on cost and the willingness to pay from the consumer was declining as more substitutes came into play.

Private labels faced relatively few entry barriers to become a potential threat to the branded manufacturers within the industry. The lack of product differentiation between the products of branded cereal manufacturers and private labels and the ability of private labels to offer their product at a cheaper price contributed to much of their success, Private labels success can also be attributed to the declining brand loyalty of popular branded manufacturers.

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Branded manufacturers relied heavily upon the distribution of promotional coupons to their consumer base, but as a result this tactic forced many customers to become price switching and brand switching sensitive that ultimately worked to the private labels favor. The cost structures of private labels and branded cereal manufacturers have distinct differences, which has given private labels a strong competitive advantage in the industry.

A typical cost breakdown per pound of cereal product for the Big Three cereal firms shows that Private labels also relied on third-party distributors to deliver their product to stores.Projects - write an essay about ethical consumption. Malc Prentice. Home ; Projects ; Contact ; About ; Schedules ; Site Map ; Discussion; Background Listening.

The value chain, Appendix B, in the RTE cereal industry consists of branded manufactures and private labels that receive their raw materials from suppliers and then distribute their product to food stores, drug stores, and mass merchandisers where the end consumer can eventually purchase the cereal product.

India's Ready-To-Eat Food - Introduction India has made lot of progress in agriculture & food sectors since independence in terms of growth in output, yields and processing. It has gone through a green revolution, a white revolution, a yellow revolution and a blue revolution.

A Ready-To-Eat food item is any food which does not need cooking or has already been cooked. For example, raw ground meat is not ready to eat because it still needs cooking, although a cooked ground meat patty is ready to eat.

The Meal Ready-to-Eat Essay example; The Meal Ready-to-Eat Essay example. Words 8 Pages. The MRE (Meal - Ready to Eat) Retort Pouch and Component Packaging OUTLINE Here we have done a project on a READY TO EAT FOOD INDUSTRY as a part of MARKETING RESEARCH INFORMATION SYSTEM course.

The current situation is made known to the students. Where to Find ’Em. Many grocery stores have a natural- or health-food section, where many vegan items can be found.

Some products are located in other areas, though.

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