Are Ready Meal Manufacturers Ready to Respond to a Changing Market Environment - Essay Example

Ready Meal Manufacturers ready to respond to a Changing Market Environment Introduction Ready meal consists of food that has been prepared or processed and packaged in a way that they can be used for a long period of time (Anita & Mark 2005, p. 69). To achieve this manufactures uses preservatives before packaging the food so that it can last for a long period. Globally, the market for the processed food has generally continuously grown. There has been significant effort by this industry to understand the needs of the customer and consequently come up with products that the customers appreciate. Food markets have been continuously evolving over time. This evulsion has not only been driven by the consumer preferences but also the business environments, prevailing food policies and the linkage that exist between the members of the food supply chains. This report seeks to explain the effects of political, economic, social and technological changes have influenced the sale of ready meals. It also looks on the possible factors that might affect market for ready meal in Saudi Arabia in the next five years. Political Influence Politics can positively or negatively influence the sale of ready-made foods. Most of the food that is processed and packaged as ready-made food is regulated jointly through health organizations and government policies (Mathew, Tilor & Ann 2004, p. 660). A research on new direction for global market showed that, local politics plays a center role in determination of market for the readymade meals. In most countries, there are regulations and legal aspects that determine the how a company dealing with ready-made food operates. These authorities ensure that the commodities that the consumer buys are of high standard and it does not bring possible negative effects in the consumer. Food quality is one issue that has been argued in this case. In most cases, there are chemicals added to preserve these foods during processing. This in a way reduces the quality of the food and makes the consumers have a higher risk of getting diseases associated with these chemicals. These arguments would be keenly looked at by the law makers in cause of making the decisions on to the extent and how ready-made food would be allowed in the market. Political influences also go to the extent of looking into whether the presence of these foods brings any effects to the environment (Forsgren, & Hagstrom 2007, p. 296). Some foods may be environmental hazardous conditions brought about by the industries that do the food processing. The packaging and disposal of the waste generated by the industry after processing or after the consumer uses these products also becomes an issue. As a result of the complicated processes associated with this process, the prices of these commodities are very high. According to Mathew, Tilor & Ann (2004, p. 649), genetically modified foods are another critical issue that has greatly influenced the market of ready-made food. It has been argued that most of the genetically modified foods lack some of the basic and natural nutrients that are important for the overall health of human being. Most of the ready-made foods are in a way related to this since these nutrients are either removed during processing or the foods that are processed are genetically modified. However on the other hand, it has been argued that the genetically modified foods contribute positively to the living standards since there would be vast production of food on small plantations. This greatly helps to save the highly populated countries to have food security. Where genetically modified foods are positively taken, there is ready-made food would be taken positively. Economic Changes Economic changes also have a very significant role in the marketing environment of ready-made foods. Some parts of the world have high economic growth and therefore people in these areas can be able to afford any form of food. Anita & Mark (2005, p. 71) observes that though most of the ready-made food is more expensive when compared to other forms, when the people have large incomes due to good economy, then these people would prefer to buy this form of food. It is lifestyle that such people can adapt in order to distinguish them from the rest. In other situations, people are very busy contributing to economy of the country therefore being unable to allocate enough time to cook. Ready-made food would definitely be a relief to these kinds of people. Change in economic status is driving more and more people are adapting a lifestyle that would ensure that where they would want to get any form of food any time in any place. Ready-made food is the only reliable way that can help these consumers to achieve this goal. As a result, growth in economies would result to high increase in market for ready-made food. The industry of the ready-made food has advanced to a level whereby it is able to cater for as many people as possible. The research carried by Mintel shows that there is progressive increase in market for the ready meal over the past few years. One of the major factors that have led to this is the fact that players are able to understand the customer’s needs. Different people have different taste and players in this industry are well aware of this fact. Due to economic changes, the industry has positioned itself in a state where it produces a variety of products so that the consumers have a variety of choices to make. It for this reason there are new customers are being identified and at the same time old customers being maintained. Technological Change Changes in technology have brought about new and fresh inputs which have significantly contributed to positive development of the food industry. Issues of packaging, preservations and blending are being developed technologically every day with the aim of ensuring the products meets the highest standards. The industry is continuously carrying research on the interests of the customer (Forsgren, & Hagstrom 2007, p. 295). Every day, the industry is coming up with new products that satisfy the customers in a better way while at the same time coming up with new products. The field of food science research is have is significantly contributing to the sales of ready-made food. Professionals and research institutions are engaging in coming up of new compositions that would help in making of either new products or new products that are more appealing to the customers. There are also technological efforts to come up with products that are of low cost and high quality. Change in Social Life Social life also does play a very significant role in the industry of ready-made foods. The lifestyle of people is periodically changing to that of people living in a busy environment. Competition in every social life has brought about tough measures of managing time Rogers, T 2010, p. 130). As a result of this, many people are tending to allocating more time to activities that bring income and less time to activities that do not bring income like cooking and washing of utensils. As a result, many people tend to consider ready-made foods in contrast to prepared food. Issues like occupations, leisure activities, and attitudes to work, living standards and lifestyle changes are making more and more people adapt to the lifestyle of spending wanting to have instant food that can be eaten at any place. The current trend where every person tends to be busy in a way is what has been contributing to family members eating at different times therefore read- made food being the preferred to cooking. Factors that might affect sales of ready meals in Saudi Arabia over the next five years In the next five years, the sales of ready-meals in Saudi Arabia are likely not to take any growth. The social status in our country varies very much from most of the western countries. Socially, unity and family bonds are highly promoted both religiously and politically. Political changes would only be those that are in align with the traditions of the people of Saudi Arabia. The traditions highly promote unity and therefore anything that is likely to bring about independency or division is not going to work. Ready-made foods do not promote bonds among the family members since some of the cores associated with the family set up are not promoted. Eating together and doing the family chores is what strengthens the relationship among members of the family. Activities that promote different form of lifestyle to this are not promoted and are negatively perceived. Where the families are busy, the traditions have always been that such families employ maids to ensure that the family sticks together. Saudi Arabia is among the countries that have low economic rate and low rate of development (Rogers 2010, p. 128. There is likely to be low rate of development in the next five years meaning that most of the people might not be able to afford the high cost of ready-made foods. Change in technology is likely to bring about better ways of making food in Saudi Arabia rather than promoting ready-made foods. In Middle East societies, the focal points of economic prospect, social status and identity is the family. Therefore, technology would only be encouraged if it promotes these. References Anita R & Mark, G, 2005, ‘New Directions in Global Food Markets’, International Journal of Trade, Economics and Finance, Vol. 1, no.1, pp. 68-73. Forsgren, M & Hagstrom, P 2007, ‘Ignorant and impatient internationalization? The Uppsala model and internationalization patterns for Internet-related firms’, Critical Perspectives on International Business,Vol. 3, no. 3, pp. 291-305. Mathew, K, Tilor, M & Ann, S 2004, ‘Restructuring the Food Industry,’ The Global Food Industry: Strategic Directions, Vol. 21, no. 6, pp. 645-665. Rogers, T 2010, ‘Structural Change in the Saudi Arabia Food Manufacturing,” Agribusiness, Vol. 2, no. 7, pp. 128-131. Read More