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Convenience Food To Generation Y Term Paper

" (Guelph Food Technology Centre, 2008) This report additionally relates four "meta trends" in the packing industry which are those of: 1) Convenience;

2) Health and wellness;

3) Upscale experiences; and 4) Sustainability. (Guelph Food Technology Centre, 2008)

The work entitled: "Generational Change and Marketing Indicators" states that five decades ago "when supermarkets were 'stores of the future' retailers and manufacturers pretty much knew where to find their customers. Food came from food stores; drugs from drug stores and cooked meals were consumed at drive-in or sit-down restaurants." (Mogelonsky, nd) it is important to know where shoppers intend to buy their food today. Generation Y, at a total population of 72 million, is an important consideration for marketers. Potato chip shopping including tortilla chips and pretzels are stated to "round out the top three snack categories, with household penetration rates of 76 and 62% respectively." (Mogelonsky, nd)) Also noted is that Generation Y buys health bars and health sticks.

The report states that Generation Y consumers know both "where and how to get reliable food information, understand the importance of healthy eating, and will demand cutting edge convenient, exotic, vegetarian, and organic food options. By 2020, many Generation Y consumers will be forming households and starting families-purchasing food not only for themselves, but also for their spouses and young children." (Agriculture and Agri-Food Canada, 2008)

The Generation Y individual holds a perspective of cooking and dining at home as "a hobby or social even rather than an everyday occurrence." (Agriculture and Agri-Food Canada, 2008) it is predicted that meal planning cycles of Generation Y will be shorter than the meal planning cycles of their parents and that Generation Y will shop more frequently at the grocery store than did their parents. It is stated that Food product development by 2020 is expected to fulfill these consumers' desires for adventurous, ethnic, and ready-to-eat food products." (Agriculture and Agri-Food Canada, 2008)

The work entitled: "A Second Look at the Cold Food Chain...and its Implications" states that two basic consumer trends in the food industry which are long-lasting in nature are:

1) an expectation of freshness; and 2) the demand for convenience. (ProMar International, 2001)

Freshness expectations are that the ingredients will be fresh, freshly prepared, and preservative free and "even organic." (ProMar International, 2001) the demand for convenience is simply a demand that the food is "ready now." (ProMar International, 2001) the meals decision is stated to made "closer to the time of consumption" than ever before and that the "coming generation does not cook, they assemble." (ProMar International, 2001)

Implications to manufacturing, logistics and retail operations will therefore focus on:

1) Maintaining and shortening the cold food chain from farm to table to preserve quality;

2) Food safety; and 3) a different economic model. (ProMar International, 2001)

The work entitled: "Gen Y's Snack Behavior and Brand Preferences" states that:

Gen Yers are snacking machines;

Frequent visits to C-stores, among a wide range of points-of-sale;

Taste for quick fast food;

Want products that are for people of their age;

Fun and entertainment key;

Friends and Internet two main sources of purchasing information;

Non-traditional marketing, bold images, cutting edge music, emphasis on quality and uniqueness. (ProMar International, 2001)

Stated additionally is the fact that the:.." interplay between the various drivers for change will lead to a shift in the overall bases of competition, as well as in the overall distribution of power between the industry player types. The following table lists the bases of competition today as compared to the bases of competition by 2010.

Bases of Competition: Today vs. 2010

Source: ProMar International (2001)

The following chart shows the consumer segmentation filter for Individual Generation Y consumers.

Figure Consumer Segmentation Filter: Generation Y Individual Consumer

Source: ProMar International (2001)

The hotel industry is reporting that those marketing to members of Generation Y consumers need to keep in mind that "the traditional hotel dining room is no longer appealing...service is too slow, and the check is too high." (Strauss, 2005) Hoteliers are reported to be responding...

Their tastes are equally diverse with Gen Y showing farm more interested in ethnic foods than any other group." (Sansole, 2005)
Generation Y however, "is not interested in cooking..." (Sansole, 2005) Sansole (2005) reports that Generation Y "...eats out more than any other group" and are "interested in eating healthier, even though much of their eating out is concentrated in quick-serve restaurants." (Sansole, 2005) Ten percent of Generation Y individuals frequent gourmet coffee shops three or more times per week as compared to only two percent of the previous Generation X (Sansole, 2005; paraphrased)

Bibliography

Ramierz, Andrea (2008)Leveraging Consumer Megatrends National Association of College & University Food Services. Online available at http://www.nacufs.org/i4a/pages/Index.cfm?pageID=4425

Sloan, a. Elizabeth (2005) Top 10 Global Food Trends. Food Technology April 2005 Vol. 59 No. 4.

How to Connect with Generation Y (2007) Times Online. 20 May 2007. Online available at http://www.timesonline.co.uk/tol/life_and_style/career_and_jobs/recruiter_forum/article1813031.ece

Generation Y: Graduates Who Dare to Demand More (2008) University of Liverpool. Online available at http://www.liv.ac.uk/news/features/generation-y.htm

In 2007, There Are an Estimated 9.7 Million Generation Y Adults in the UK, Representing 15.9% of the Total Population and 19.6% of the UK Adult Population (2008). Business Wire. June 11, 2007. FindArticles.com. 22 Jun. 2008. http://findarticles.com/p/articles/mi_m0EIN/is_2007_June_11/ai_n19207168

Large, Elizabeth (2005) a Generation on the Go. 30 Mar 2005. Fast Food Source.

The Exotic Goes Mainstream: Emerging Consumer Trends in the Food & Beverage Industry. Guelph Food Technology Centre GFTC Online Newsletter. June 2007. Online available at http://www.gftc.ca/newslett/2007-06/emerging-consumer-trends.cfm

Mogelonsky, Marcia (nd) Generational Change and Marketing Indicators From: It's Almost the New Millennium. Do You Know Where Your Shoppers Are? A FAST-U.S.-7 United States Popular Culture Reference File Department of Translation Studies, University of Tampere Online available at http://www.uta.fi/FAST/US7/REF/nielgens.html

Changing Diets Present Opportunities to Dairy Industry (2008) Consumption Trends. Agriculture and Agri-Food Canada. Online available at http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1201554109150&lang=e

Generation Y: Graduates Who Dare to Demand More (2008) University of Liverpool. Online available at http://www.liv.ac.uk/news/features/generation-y.htm

Second Look at the Food Chain (2008) 12 Feb Logistics 2008 Retail Industry Leaders Association February 10-13 2008 Gaylord Palms Resort & Convention Center, Kissimmee, Florida.

Generation Y: Winning Snack Strategies - Management Summary (2001) ProMar International June 2001, Alexandria VA.

Convenience Addresses Lifestyle Changes (2005) Hotels. 1 Jan 2005. Online available at http://www.hotelsmag.com/article/CA6484728.html

Putting Generation Y in Focus (2005) Facts, Figures and the Future 15 May 2005. AC Nielsen Facts, Figures and the Future. Online available at http://www.factsfiguresfuture.com/archive/may_2005.htm.

Stamp, Jeffrey a. (2006) Creating a Culture of Opportunity - the Entrepreneur Code. University of North Dakota MRAC 26 Oct 2006.

Demographic Directions: Mixing up the Market (2005) Food Technology July 2005.

Huxley, Ruth (2005) Review of the UK Food Market" Online available at http://www.cornwalltasteofthewest.co.uk/idupload/images/review_of_uk_food_market_06.pdf.

Sansole Mike (2005) Putting Generation Y in Focus. 16 May, Facts Figures and the Future. Online available at http://www.factsfiguresfuture.com/archive/may_2005.htm

Sources used in this document:
Bibliography

Ramierz, Andrea (2008)Leveraging Consumer Megatrends National Association of College & University Food Services. Online available at http://www.nacufs.org/i4a/pages/Index.cfm?pageID=4425

Sloan, a. Elizabeth (2005) Top 10 Global Food Trends. Food Technology April 2005 Vol. 59 No. 4.

How to Connect with Generation Y (2007) Times Online. 20 May 2007. Online available at http://www.timesonline.co.uk/tol/life_and_style/career_and_jobs/recruiter_forum/article1813031.ece

Generation Y: Graduates Who Dare to Demand More (2008) University of Liverpool. Online available at http://www.liv.ac.uk/news/features/generation-y.htm
In 2007, There Are an Estimated 9.7 Million Generation Y Adults in the UK, Representing 15.9% of the Total Population and 19.6% of the UK Adult Population (2008). Business Wire. June 11, 2007. FindArticles.com. 22 Jun. 2008. http://findarticles.com/p/articles/mi_m0EIN/is_2007_June_11/ai_n19207168
The Exotic Goes Mainstream: Emerging Consumer Trends in the Food & Beverage Industry. Guelph Food Technology Centre GFTC Online Newsletter. June 2007. Online available at http://www.gftc.ca/newslett/2007-06/emerging-consumer-trends.cfm
Mogelonsky, Marcia (nd) Generational Change and Marketing Indicators From: It's Almost the New Millennium. Do You Know Where Your Shoppers Are? A FAST-U.S.-7 United States Popular Culture Reference File Department of Translation Studies, University of Tampere Online available at http://www.uta.fi/FAST/US7/REF/nielgens.html
Changing Diets Present Opportunities to Dairy Industry (2008) Consumption Trends. Agriculture and Agri-Food Canada. Online available at http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1201554109150&lang=e
Generation Y: Graduates Who Dare to Demand More (2008) University of Liverpool. Online available at http://www.liv.ac.uk/news/features/generation-y.htm
Convenience Addresses Lifestyle Changes (2005) Hotels. 1 Jan 2005. Online available at http://www.hotelsmag.com/article/CA6484728.html
Putting Generation Y in Focus (2005) Facts, Figures and the Future 15 May 2005. AC Nielsen Facts, Figures and the Future. Online available at http://www.factsfiguresfuture.com/archive/may_2005.htm.
Huxley, Ruth (2005) Review of the UK Food Market" Online available at http://www.cornwalltasteofthewest.co.uk/idupload/images/review_of_uk_food_market_06.pdf.
Sansole Mike (2005) Putting Generation Y in Focus. 16 May, Facts Figures and the Future. Online available at http://www.factsfiguresfuture.com/archive/may_2005.htm
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