FAST FOOD MARKET ANALYSIS

Fast Food Market Analysis

Fast Food Market Analysis

Introduction

The practice of bundling in the Fast Food industry has proved to be a huge business success. The concept of bundling refers to the value added meals offered by different fast food restaurants, which include a complete package of different value added food products such as French fries, drinks etc, in addition to the core product. The success of this concept of selling fast food is primarily based on the concept of “value marketing”. The value marketing approach allows the fast food companies to make higher profits along with pleasing the customer. The customer is persuaded to spend a little higher amount of money for a “larger” size of the foodstuff. This lets the customer feel that he or she has benefited from the “deal” or discount offering of the company. Such an offering has many benefits for the customer, which is the primary reason for its success. It offers a convenient food product at a reasonable, price and in a clean environment.

Fast Food Retailing Industry Practices: Overview

The concept of the fast food industry in this report is primarily limited to the concept of bundled fast food marketed by the fast food retail chains in the United States. It is concerned with the fast food products prepared in fast food restaurants and are sold to the customers as ready-to-eat or take-away products. Despite of the fact that the fast food retailing industry is considered to be one of the most important sectors of the United States' economy, a meaningful definition of the concept of fast food has proved to be a little difficult job. Some experts believe that the primary driver of the fast food business has been the developments in its business practices, such as new methods for preparing food in lesser time span and advancements in technology such as the development of a microwave. On the other hand, some other experts argue that the basis of the business has been its take away style of food retail outlets, its wide presence in almost every locality and franchising and large retail chain operations managed by firms like McDonalds, Kentucky Fried Chicken, Pizza Hut, Domino's, Burger King etc. (Ritzer, 2002) However, it appears that both the approaches to consider the fast food retailing industry are inadequate, as they primarily focus on the methodology and norms of doing business instead of placing its focus on the products itself. The most important aspect to be considered is therefore the product itself as it gives a differential advantage to a firm in comparison to its competitors. This helps one understand to study the factors, which differentiate one offering from the other. (Jakle & Sculle, 2002)

Challenges Faced By the Industry

It is also interesting to note that despite of the immense popularity of the fast food products, fast food retailers have received a significant level of criticism from healthcare professionals. They accuse these firms of providing unhygienic and junk food, which is severely ...