PROFESSOR: MIWA MERZ
NAME: MINH BUI (008413691)
MARKETING ENVIRONMENT ANALYSIS
FAST FOOD INDUSTRY
TABLE OF CONTENT
II. Micro environment Description:
III. Macro environment Description:
IV. Additional Application of Core Marketing Concepts
As an international student who is studying abroad in the US, fast food is one of my new favorite meals because it saves time and has cheap price. I am not the only one who loves fast food, American and people all over the world also huge fans of it. Fast food industry or also know as quick service restaurant (QSK) is one of the largest segments of the food industry. In the US, there are over 200,000 fast food restaurants and $120 billion in sales. In this paper, I will provide the reader a marketing environment analysis about the external forces and trends that affect this industry including micro environment and macro environment of this one of the largest industry. Besides, this paper also points out the opportunities and threats for fast food companies and helps the companies that intend to join or joined this industry to develop a strategic plan.
In 2009, in the market share, the top 20 fast food restaurant’s total sale is $117 billion. It occupies 85% of the sales of the top 50 restaurants and the sale for 12 restaurants in full analysis is $98 billion which present 71% of sales. McDonald’s is the market leader which has $30 billion in sales and %22 share of the top 50 restaurant. The next four are Subway, Burger Kings, Starbuck and Wendy’s. Each has $8 to $10 billion in sales and occupy %6 to %7 of the market. The next three are Taco Bell, Pizza Hut and KFC. Their sales are %16.7 billion totally and occupy 12% in the market. Customers’ trends include functional or healthy fast food, low calorie food, the TV dinner, fresh foods and regional food keeps the fast food industry developing. This become the downside of this industry because people is changing their eating habit. Some researchers say that fast food is unhealthy because it can lead to obesity. Some customers will find other types of food to prevent obesity.  Today, fast food is losing its market share because of the development of its competition fast casual dining restaurant. Today, the main competitors of fast food industry are fast casual restaurants such as Chipotle, Cosi or Panera. This kind of restaurant includes fast food restaurant and casual dining. It threatens to occupy the market in the market share of fast food industry. However, the fast food industry is still the dominate type of restaurant in the market. The customers prefer fast food because the fast casual restaurants are quite costly. To face with this competition, from 2002 to 2010, fast food industry offers healthier menu options in their distributions and promotions. By 2018 to 2025, fast food industry have larger internal and external business decision. The food will have reasonable level of nutrition. By 2025, fast food industry will change from food provider and health benefits. It will focus on health nutrition. One way to achieve this is vitamin burger. With the development of technology, scientist will find way to replace unhealthy ingredient but will keep the taste. Besides, new formats such as McCafe or Wifi Internet also attract customers. Children’s play part help to educate customers about health and fitness. Macro environment
Understanding the demographic environment is very important to every marketer because it is the studying of people and markets are made up of people. There are four major demographic developments and trends that pose opportunities and threats to firms doing business in this industry. The first one...
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