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MARKETING PROJECT - Research Paper Example

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Running Head: MARKETING PROJECT Name: Tutor: Course: Date: University: The US nationals’ expenditure on fast food as at 2009 stood at USD140 billion on averages per annum. There were about 25,000 chains of fast food in this nation as at 2009 and this reflected a 1,000% rise since year 1970…
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Download file to see previous pages Clients of fast foods usually make orders at a given counter and proceed to pay prior to eating. The industry of fast food in the US had approximately 300,000 units in year 2009 and the franchises attached to them were in above 100 other global nations. The revenue generated from the industry was about USD154.7 billion in year 2008. The industry of fast foods was prospected to record about USD157.2 billion in sales in year 2009, which would translate to a 4.2% rise from the amounts posted in 2008. Since year 2007, the industry was experiencing a continual type of growth rate, while the industry of fast food continued to escalate in value by 4% over the same period. The forecasts state that the industry of fast foods would grow by around 4% per year in the next three years. Consumers of fast foods as well continue to want value for their invested money in terms of healthier options as well as the responsibility of the company in picture to the environment. (, 2009) (a) Global Economic Situation The rise in the number of chains of fast food chains in the US has also been witnessed elsewhere in the foreign countries. As Allen and Albala wrote their book the companies of fast food in the US formed what the entire globe had. This phenomenon of chains of fast food companies has been seen to saturate in the regions of North America and Western Europe alike and as a result they have been spread to other areas of the world which are witnessing high rates of economic growth like Asia and Eastern Europe. The two authors also continue in their study to point out the fact that, if these fast food chains are aiming at surviving in the foreign, then they ought to adjust their menus to suit the tastes of local people. An example at hand is that of the sale of duck soup in Beijing. Despite the high levels of growth, restaurants of fast foods have been facing the cynics’ wrath, where sometimes they have been blamed for the rise in malnutrition negative impacts like obesity, though. (Allen and Albala, 2007 p160) (b) Business life cycles As economic cycles of booms and recessions continue being a phenomenon of business environment setting in during the days Mercantilists, these cycles have become for frequent and shorter in time durations. The explosion of information technology and the following boom in the recent past periods reflect the high speed at which global economies can rise. Various organizations like in the industry of fast foods, which have moved in the direction of consumer preferences to maturation of their products’ life cycle, have as well experienced a boom. Due to this, it has reached its peak and now the trend is that of approaching a trough as the consciousness of consumers with regards to health escalates. (Secord, 2003 pp221, 222) (c) Rates of Interest Interest rates affect consumer expenditure trends. If the rates of interest are reducing, then there is an easier accessibility to funds in turn increasing the demand for various products. The products for which demand is affected are especially fixed assets like homes, cars and capital investments. On the other hand, if the rates of interest are on the rise, there will be slower economic growth and this affects investment levels. Socially, there is a change in ...Download file to see next pagesRead More
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