February, 1999
By Thomas Murphy
Penn State University
Of course you want to be on the winning edge of the food marketing equation,
but how do you know which way to go? John Lord from the Food Marketing Dept.
at St. Joseph’s University had some intriguing insights at a related
conference this past year. Based on researching restaurants, supermarkets,
food processors and other industry sources, he offered a number of trends
in the industry that could have a profound effect on your business if you
plan to thrive in the future. And although every area of the state and nation
has its differences in customer preferences and acceptance of trends, they
still will have a measurable impact that you could profit from either now
or in the very near future. So how about a few of his facts.
Approximately 60% of women in the U.S. are employed outside the home and
60% of kids under age 12 have mothers who work. No big surprise here. And
although the fact seems very straightforward, its implications are sometimes
hidden. What’s obvious is there is less time at home for meal preparation
(and clean-up) and more time spent doing other things. Household tasks of
all types are thought of as something to get through quickly so important
goals of kids’ homework, soccer games and dad’s night classes
can be accomplished. Speed in meal preparation is a key. Currently, the
average time spent preparing meals is 30 minutes and is projected to fall
below 15 minutes in the near future. Convenience is a sales opportunity
and it is now a bigger part of our culture then ever. It’s important
because it saves time and time is becoming a commodity that a substantial
portion of the consuming public is willing to pay for.
Another glimpse at our lifestyles shows additional points worth considering:
• 30% of households have both parents working;
• 30% of households have a single parent;
• 2.5 people is now the average size of a household;
• 25% of the population lives alone;
• 8% of homes with kids have mom at home and dad at work.
Analyzing the data backs up earlier points and illustrates some others.
More working couples create more additional income which could have pricing
opportunities in your area. Large numbers of single mothers could adversely
affect your pricing intentions. Do you ever analyze the family structure,
ethnicity, or income levels of your customer base or the community around
you? Often this information is available free from state agencies if you
ask. Smaller families, tired parent(s), more people alone - all the numbers
above, except the last, point to the idea that on the average little time
is or will be spent in the kitchen. There are fewer “all family”
meals and fewer eaten at home - now only 21% are prepared and eaten there.
So where are we likely to be getting our meals in the near future? Out and
from a variety of venues. Seventy percent of consumers don’t decide
what to have for dinner until that day and 42% decide within four hours
of the meal, with a similar number making the decision while shopping. Savvy
marketers will use these facts to determine their offerings as do most successful
supermarkets and restaurant chains.
In 1996, Lord points out that 51% carried out more meals from restaurants
than ate there, which makes restaurants a “prepared foods supermarket”
with most consumers going home to consume the items. (Interestingly, 71%
said they would like to eat more of their meals at home.) Microwave use
is up, stove use is down (69% in 1985 to 57% in 1997). And this is not lost
on supermarket managers. Pre-cooked meals including Thanksgiving and Christmas
dinners (is nothing sacred) are offered by many leading chains. Perkins
offers “homemade” pies to go (I never saw one that looked that
fancy at home though), and the delivery service will bring it all to your
doorstep for a small fee. Much of their advertising is now devoted to this
area of marketing, especially radio spots reaching commuters in the morning
and afternoon. More items are being offered and purchased as frozen entrees
with fewer homemade dishes served. Fewer side dishes are being eaten including
vegetables (fewer dishes to wash).
More food manufacturers are offering dishes that come in a box or can, look
homemade, take 10 minutes to prepare, and just use a few simple additional
ingredients you would normally have in the pantry. Meat departments offer
uncooked meats with stuffing - prepackaged two to an aluminum cooking container.
The cooking temperature and time are clearly marked on the label. Place
in the oven and set the timer, put on the minute rice, open the precut salad
greens, and find Suzy to help her with those math problems. About the time
the mental light comes on for Suzy, dinner is ready.
Although other facts from the survey suggest we would like meal scenarios
similar to our past, the facts show trends where convenience is king and
time savings are the norm. Any grower/marketer will tell you PYO is declining,
container sizes of items purchased are getting smaller and people more commonly
ask how to prepare something they are look at. Although the trends may be
disturbing in many respects, they are fact. Marketing opportunities abound
for those willing to sort through them to see where they can make changes
and reap rewards. Those who only look at change as something to avoid will
lose market share and customers. The farm market down the road probably
isn’t your biggest competitor - the restaurant next door probably is.
The Fruit Growers
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