KOHLS

1
KOHLS UHL CHAPTER 4
FOOD CONSUMPTION MARKETING
2
REVIEW
KOHLS UHL CHAPTER 3 AGRICULTURAL PRODUCTION

• A. Agricultural Resources
• 1. Substitute Capital

For Labor
2. Increase Use Of Science
B. Agriculture Structure 1. Fewer But Larger
Farmers
2. Majority Still Proprietorships
C. Characteristics Of Agricultural Products--
Bulky, Perishable, Raw Materials,
D. Characteristics Of Ag Production-- Variation
In Quantity And Quality
E. Marketing Problems Created-- Difficult To
Control Production -- Different Goals Of
Producers
3
FOOD MARKETING CONCEPTS
Wk 1-2 Kohls Ch 1 Intro To Food Marketing Wk
2-1 Kohls Ch 2 Analyzing Food Mkt Wk 2-2 Kohls
Ch 3 Ag Prod Marketing Wk 3-1 Kohls Ch 4 Food
Consumption Wk 3-3 Kohls Ch 5 Food
Processing Wk 4-1 Kohls Ch 6 Food Marketing Wk
4-3 Kohls Ch 7 International Marketing Wk 5-1
Kohls Ch 8 Price Analysis Wk 5-3 Kohls Ch 9
Mkt Competition Wk 5-5 Friday Midterm
4
KOHLS UHL CHAPTER 4 FOOD CONSUMPTION MKTING
LEARNING OBJECTIVES AFTER THIS LESSON, THE
STUDENT SHOULD BE ABLE TO

• Discuss The Concept Of Consumer Sovereignty
• Define Food Ways And Discuss What Factors
  Influence Them
• Explain The Trends In Food Expenditures And
  Analyze The Causes
• Analyze How Changing Population Demographics
  Effect Agricultural Markets

5
I. Consumer Sovereignty
Learning Objective
Discuss The Concept Of Consumer Sovereignty
1

• A. Customer Is King/Queen!

B. Successful Companies Understand Consumers
Focus On Their Needs
C. Marketing Is The Process Of Matching The Right
Product _at_ Right Place Time To A Group of
Buyers
D. I.E., Discover Bundle Of Attributes Will
Appeal To, Profitability, To Consumers
6
Learning Objective
Discuss The Concept Of Consumer Sovereignty
1

• Who is your boss?

The Consumer
Consumers Are More Educated, Demanding And
Discerning Than Ever Before. Despite The Fact
That They Know Less About Ag Than Their Parents,
You Need To Know Everything About Them
The Consumer is the final decision maker.
Dairy Herd Management June 2005 Pg 34
7
Learning Objective
Discuss The Concept Of Consumer Sovereignty
1

• Who is your boss?

In order to remain competitive,, you must
identify, interpret and respond to changing
consumer demands.
It used to be that farmers produced what they
wanted told consumers to shut up and eat it.
Those days are long gone. Consumers now vote with
their pocket books.
Dairy Herd Management June 2005 Pg 34
8
Learning Objective
Discuss The Concept Of Consumer Sovereignty
1

• D. It doesnt matter what you produce or where
  you are on the food chain, consumers direct
  change. Examples

1. Fast food demand for chicken nuggets
strips led poultry producers to breed chickens
for more white meat
2. The popularity of single service grab go
beverages has reached the dairy case
-- the choices consumers make drive all changes
in the food industry. Stay well informed about
consumer tastes and trends. It could have a
dramatic impact on your future success.
Laura McPhail. Consumer Trends Drive Changes
Dairy Herd Management. January 2004
9
II. Food Preferences
Learning Objective
DEFINE FOOD WAYS AND DISCUSS WHAT FACTORS
INFLUENCE THEM
2

• A. Consumer Tastes Drive Food System
• B. Choices Satisfy Needs Wants
• C. Quantity Quality Both Count
• D. Diet Consistent Over Time
• E. Culturally Bound, Socially Influenced

Swiss Wurstsalat (Sausage Salad)
German
Sauerkraut
10
Learning Objective
Define Food Ways And Discuss What Factors
Influence Them
2
F. FOODWAYS

• 1. Patterns Of Dealing With Food
• 2. Unique To Each Society
• 3. Foodways Results In Stable Food Preferences
  Within A Society
• 4. Add Social Significance To Diet
• 5. Adapt To Socioeconomic Changes

11
Learning Objective
Define Food Ways And Discuss What Factors
Influence Them
2
6. INFLUENCES ON FOOD WAYS

• A. Physiological Values (Health )
• 1). Decreased Red Meat Because Of ?
• 2). More Diet Drinks Because ....
• 3). More Fruit Veggies Because..
• 4) Functional Satisfaction
• 5). Hunger
• 6). New Food Pyramid

Cholesterol
Calories
Fiber
Taste Good
12
B. Sociological Values
Learning Objective
Define Food Ways And Discuss What Factors
Influence Them
2
1) Status

• Grey Poupon

Vegetarians
2). Life Style
Kosher
3). Culture
4). Hindu Religion
C. Economic Values
Hamburger
1). Cheapest Meat
2). Most Expensive Meat
Steak
13
Learning Objective
Define Food Ways And Discuss What Factors
Influence Them
2
D. Ethnic Values
1). Polish
Sausage
2). Danish
Pastries
3). German
Sauerkraut
Pasta, Pizza
4). Italian

• E. Availability

1). Fresh Fish Eaten The Most?
2). Christmas Tree Bought?
3). Fresh Strawberries?
14
III. Food Expenditures
Learning Objective
Explain Trends In Food Expenditures Analyze The
Causes
3

• A. Total Food Expenditure Is ..

Increasing
Increasing
1. Population Is ......
Increasing
2. Food Consumption Is.
Increasing
3. Food Prices Are ....
4. Demand For Expensive Food Is
Increasing
A. More Processing
B. More Packaging
C. Eat Out More Often
15
B. Food As A Of Disposal Income Is ?
Learning Objective
Explain Trends In Food Expenditures Analyze The
Causes
3

• Yr Tot Of
• Bil Inc

Total Food Expenditure
1930 18 24
1940 17 22
1950 44 23
1960 70 20
1970 111 17
1980 264 16
1990 450 12
1995 520 11
2005 Xxx 10
16
C. Food Items Per Cap Cons 1970-93)
Learning Objective
Explain Trends In Food Expenditures Analyze The
Causes
3

• Item Direction Change

167
Chicken
Up
58
Down
Whole Milk
185
Up
Skim Milk
1
Unchanged
Pork
Down
21
Eggs
200
Turkey
Up
1
Fish
Unchanged
192
Cheese
Up
17
D. Turning Points In The U.S. Diet
Learning Objective
Explain Trends In Food Expenditures Analyze The
Causes
3

• Before Date Now

1950
Pork
Beef
Fresh Fruit
1955
Fresh Veggies
Poultry
1964
Eggs
Milk
1967
Soft Drinks
Pork
1982
Poultry
18
IV. Food Demographics
Learning Objective
Analyze How Changing Demographics Effect
Agricultural Markets
4

• A. Population Trends
• 1. Slow Population Growth

2. Migration
A. North To The
South
West
B. East To The
C. History
1.From
Rural Farms
To Cities
To Suburbs
2. From Cities
3. From Suburbs
To Rural Areas
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3. Immigration
Learning Objective
Analyze How Changing Demographics Effect
Agricultural Markets
4
A. Nationality Is Perhaps The Greatest Influence
In Food Choice
B. Fastest Growing Groups
1. Hispanics 2. Asians
Source Dairy Herd Management July 2001. Food
SystemInsider. Pg 10. Used With Permission
20
Learning Objective
Analyze How Changing Demographics Effect
Agricultural Markets
4
C. New Foods D. New Purchasing Patterns
Source Dairy Herd Management July 2001. Food
SystemInsider. Pg 10. Used With Permission
Moving From Low To High Income
Blacks
5 More On Poultry
5 More On Beef
116 More On Poultry
Hispanic
37 More On Beef
21
Learning Objective
Analyze How Changing Demographics Effect
Agricultural Markets
4

• B. Regional Preferences

1. Lamb On The Coasts Why?
2. Eggs
NY Or Boston
3. South
Hominy
Grits
C. Age
Decreasing
1. Under 18 Is
2. Over 50 Is
Increasing
3. Median Age Will Increase From 32 In 1990
To 36 In 2000
4. People Over 65 Will Double In 50 Yr
5. 1.4 Million People Over 100 In 2040
22
D. Family Dynamics
Learning Objective
Analyze How Changing Demographics Effect
Agricultural Markets
4
1950
1970
1990
40
93
63
Households (M)
46
67
39
W/ 1-2 People
8.9
11.7
8.8
Female Head
Both Work
24
41
58
In Cities
56
78
69
1. Less Time
More Money Chgs Habits
Convenience Food
2. More
Meals Away From Home
3. More
4. More
Grazing
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5. Frequent Diner Characteristics
Learning Objective
Analyze How Changing Demographics Effect
Agricultural Markets
4
Abusy Parents
D Too Tired To Cook
Bcare Seekers
Eurban Sophicates
Cflavor Savorers
People
Services

• __1. Career Climbers
• __2. Professionals
• __3. Children Pleasers
• __4. Empty Nesters
• __5. Particular Taste

D
D
__1. Quick Healthy Meals __2. Fast Food, Low
Cost __3. Good Flavor, Mod Cost __4. High Class
Rest __5. Comfort, Familiar
E
A
A
C
B
E
C
B
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E. Income
Learning Objective
Analyze How Changing Demographics Effect
Agricultural Markets
4

• 1. "Effective Demand"
• A. Willing Able
• B. Developing Countries Cant Buy
• 2. Sensitivity To Inc Changes Elasticity
• A. Norm Good Increased Income gt Increased
  Quant
• Ex Meat
• B. Inferior Good Inc Income gt Decrease
  Quantity
• Ex Fresh Potatoes, Lard
• 3. People With Low Income More Concerned About
  Price

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Learning Objective
Analyze How Changing Demographics Effect
Agricultural Markets
4

• 4. More Income Results In

A. Demand For More Services
B. Eat Better Rather Than More
C. Reduces Share Of Income Going To Food.
D. Consumption Of More Convenience Foods.
E. Eating Out More Often
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IV. Summary
Kohls Uhl Chapter 4 Food Consumption
Marketing

• A. Food Choices Reach Back To Farm Gate

B. Food Outlays Are Increasing, But Decreasing As
A Percent Of Income
C. Changing Demographics Will Change Food System
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Vii. Self Test Fd Consumption Mkt Ch 4

• __ 1. Consumer Soveignity
• __2. No Of Households
• __3. Food Patterns
• __4. Effective Demand
• __5. Physiological Value
• __6. Spending On Poultry
• __7. Sociological Value
• __8. Food Exp As Of Inc
• __9. Tot Food Expenditure
• __10. More Inc More Meat

A. African- Americans B. Decreasing C.
Foodways D. Health Concerns E. Hispanic F. Life
Style G. Increasing H. Royal Wants I. Willing
Able J. None Of Above
H
G
C
I
D
G
F
B
G
E
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