Consumption of Luxury Food: Essay

1. mental home This chapter ordain serve as an introduction to the concept of prodigality solid intellectual nourishment consumerism in Harrods Patisserie and bakeshop nutriment Hall. It testament evaluate customer loyalty incentives, pricing and hype around its amply intent nutrition. 1. 1 Overview of Harrods and sumptuousness food consumerism Harrods c every step to the fores 1. 2 million squ argon feet of terrain, in the very heart of superstar of London, Englands most prestigious argonas, Knightsbridge. The historical architectural landmark, along with the Egyptian Escalator, which was envisioned by Mr. Al-Fayed himself, is listed by English Heritage.With no slight than seven floors devoted to the finest- feature outside(a) brands, as hygienic as a sumptuous food Hall that is same no other. It is no wonder that Harrods attracts almost 15 million people through its doors every year. (http//factoidz. com/harrods-the-famous-british-landmark-department-store-change s-ownership-in-2010-and-remains-out-of-british-hands/) The United Kingdom and many parts of the E. U extradite been experiencing leaseen growth and coachment. However, according to learning from this website which conjure upsHarrods says its Knightsbridge site is Britains largest shop, selling an array of fashion, food and highlife goodsQatar Holdings bought Harrods from Mohamed Al-Fayed for a reported ? 1. 5 billion last May. (www. fasttrack. co. uk) This could entirely have been possible if profits had a prospering recorded track rate. In 2010, sales in Harrods received ? 519. 8million, leaving Harrods with a profit of ? 86. 5million (www. fasttrack. co. uk) As consumer wealth increases, so does the demand for more(prenominal)(prenominal) grant, value added products as opposed to cost-reduced commodity products. The seat is partly created by an increasingly affluent society and a widening gap with the divide of rich and warmheartedness class in the current recession .There be various factors influencing change. In the UK 10% of the universe is presently be as affluent this figure is evaluate to rise to 30%. www. foodbytesni. com/text. doc The EU forte food market (as opposed to the bounty food market) is worth 33. 5 billion (4. 6% of substance EU food & drink shake off). In Britain and Ireland it is valued at 6. 1 billion (4. 5% of sum of money food & drink spend). It is forecasted to grow to 7. 5 billion in 3 years. It is honey oilly known that yesterdays sumptuousness becomes todays necessity. Luxury tends to be rare and expensive.With the supra profit figures, the police detective dejection only assume that Harrods appears to be the winner in the Patisserie and Bakery Market. With the explanation of poverty all in all different in the western world to the ratio of poverty in developing countries, luxury utilisation of Patisserie and bakery is considered movey and its demand in Harrods is ever growing. Although we may assum e that luxury foods are related to income, during this current recession in the UK with dwindling income, the demand for Harrods Luxury Patisserie and Bakery foods has increased over this period of time.I have noticed this as the searcher is employed in Harrods food takings unit. Although, the usual scenario for other departmental stores may be to reduce prices during recession, Harrods luxury Patisserie and Bakery foods have bear its prices and popularity. In fact with the VAT increase from 17. 5% to 20% the sales in this section of the food halls has shown no major downturn. Hence, it is my opinion that demand is so great for Harrods Luxury Patisserie and Bakery that consumers of any income stem visit Harrods to buy even the lowest cost luxury Patisserie and Bakery foods which has been a contributing factor.Harrods is globally known as unique, as it has an association with class, quality and distinguishes itself from the rest of its competitors. This theater of operations is limited to only respondents above the age of 18 years and will only be carried out on 30-50 respondents. The view is narrowed to consumers of Harrods Patisserie and Bakery products and not consumers of the rest of the food halls. The reputation will not cover the life style and overall economic standard of the respondents. This has been consciously left out to avoid lengthening of the guide.Hence, the study will be un equal to(p) to analyse the financial background of the respondents in depth. Lastly, although luxury food inlet is a macroeconomic function, this study will only focus on a singular market. 1. 2 query Questions 1. Is the recession affecting Consumption of Luxury aliment in Harrods Foods Patisserie and Bakery Food Hall? 2. What are the key aspects or areas of consumer spending deportment patterns in Patisserie and Bakery Food Halls, Harrods? 1. 3 Objectives of the look for The objectives of the study are as followsA) To investigate customer consumption and spend ing behaviour with luxury Patisserie and Bakery foods in Harrods. B) To make recommendations to Harrods on how to enhance their sales and maintain their market touch in luxury Patisserie and Bakery foods. 1. 4 How will the objectives be achieved? Objective (A) will be achieved through examination of secondary data. Objective (B) will be achieved through findings of primary data through the drill of questionnaire survey and secondary data through Harrods food industry annual reports. CHAPTER TWO Literature analyze 2. Introduction.This chapter will show the existing literature in the field of Consumer Behaviour from a global situation and narrow it down to consumer behaviour in Harrods, UK. It will allow in marketing concepts, psychological concepts and factual statistics. The luxury market is vastly increasing, and there have been signifi displacet changes towards consumer behaviour (Strauss & Howe, 1999). Foods that are expensive have a certain appeal and are regarded as luxuri es for special occasions rather than daily meals. Conversely, foods that are general and cheap have less appeal.Europe is considered to be the cultural center of fashion, interior design, and cuisine. Gourmet skiminess has become a fine art, and visitors to the area can find almost any type of food, and the trend more recently has become luxury foods, luxury desserts etc. http//www. food touristry. com/ From the literature I have read it can be summarized that the current generation enjoys spending money on luxury brands due to usable income and lifestyle that this generation avails of due to their income or that of their parents earning. 2. 1 A theory of luxury.When Marie Antoinette supposedly said let them eat cake, she was seen as a luxury junkie whose out-of-control spending grated on the poor and unfortunate French people. But today, cake has become one of the favourite luxury foods. A revolution has taken place where individuals in the world have got richer. Luxury is no l onger the compact of the kings and queens of France but the mass marketing phenomenon of everyday life. Simply put, luxury has become luxuri? cation of the common place (Twitchell, 2001 Berry, 1994). 2. 2 Definitions of luxury products, speciality and premium foods.In order to understand a luxury product, it is inborn to differentiate it from ordinary products on the basis of its essential characteristics. Luxury products, speciality and premium foods are defined by their price, quality, aesthetics, exclusiveness, and symbolic significance. To define them, their definitions are summarised below. 2. 2. 1 Luxury products Luxury is defined as quality possessed by nearthing that is excessively expensive http//ardictionary. com/Luxury/5550 As they are highly associated with their core products, common definitions of luxury brands refer to specific associations with their products.The essential characteristics of luxury brands therefore correspond largely with those of luxury products . Consequently, their definition can be derived from that of luxury products as follows Luxury brands are regarded as images in the minds of consumers that comprise associations nigh a high level of price, quality, aesthetics, rarity, extraordinarily and a high degree of further non-functional associations (c. f. Heine 2010). As luxury products and brands include a high rating for their characteristics this marks a differentiation for luxury manufacturers.Even amongst luxury products there are differences such as accessible luxury products, which are affordable for most consumers from time-to-time and some are exclusive luxury products, which are affordable only for the wealthy. 2. 2. 2 Specialty or epicurean foods. Specialty or gourmet foods are unique foods/delicacies, which sometimes exploit regional identity. They are less authentic than artisan products. (Workman C, 2005) 2. 2. 3 Premium foods. Premium products use quality ingredients and careful rules but can be make on an industrial scale. (Workman C, 2005) 2. 2. 4 End Product.Products made by artisan have optimum taste, texture, and flavours or aromas, (and nutrition/health benefits). They resonate with place, tradition and culture (authenticity), and reflect the producer, his/her skill, personality and ethos, and the method of production. They often have an established and stable reputation. Often they are made for fresh consumption locally, or are available in limited quantities, providing a unique, exclusive induce (often including the purchase e. g. at a market/direct with the producer). They therefore also have a high prestige factor and high profile with respect to the quantity produced and distributed.Producers of artisan products are usually hands-on from production through to sales. They are very experienced, skilled and show an uncompromised commitment to their craft, trade and to the superior taste of their products. Often there are small numbers of people making any one kind of artisan product. (Workman C, 2005) 2. 3 Food Tourism During the 20th Century, industrialisation began to threaten artisan producers and many abandoned their traditional techniques. But in the past two decades, theres been a resurgence in demand for quality products made by time-honoured methodsFood tourism has become big business, worth nearly ?4bn a year. (Lane M,2005) Food has many roles to play for consumers it is functional (sustaining life) it plays a key role in our celebrations it is a conduit for socializing it is entertain it is sensuous and sensual and it is a way of experiencing new cultures and countries. For many, food becomes highly experiential (i. e. much more than functional) when it is part of a travel experience, it can become sensuous and sensual, symbolic and ritualistic, and can take on new significance and meaning.Even the most basic meal can be etched in memory forever when it is eaten when surrounded by awe-inspiring scenery or at the end of a special day exploring a new city. (Hall M and McIntosh 2000) Swarbrooke and Horner have stated that food tourism stakeholders such as restaurant and cafe owners, cookery school providers, festival organizers, hotel and resort managers, bed and breakfast operators, and food producers. By understanding how tourists make their decisions to purchase and/or consume food products we will be able to gain a better understanding of when we gather up to intervene in their decision-making process.Appropriate intervention can, in turn, be used to persuade them to purchase our food products and services. Consumer behaviour question is the study of why people, every individually or in groups, buy the product they do and how they make their decision (Swarbrooke and Horner, 1999). Food tourism is something that is becoming more commonly understood. But how would someone decide where to go, and what to see? http//www. foodtourism. com/ Tourists who enjoy luxury food and patisserie chiefly make every attempt to at lea st visit Harrods while in the UK.Often, like the inquiryer at the visit first to Harrods tourists only visit and see, but, at their second visit at least a small amount of luxury food or patisserie is purchased. Although, consumer spending has slowed down in the UK, Harrods has shown an increase in profits in their Patisserie and Bakery section with its luxury food items. 2. 4 Consumer buy behaviour Kolb M. (2006) associates Maslows theory and consumer get as she states Maslows theory has a direct drill for marketing because many of these needs are met through the purchase of products.Infact, once a consumer has all the food, garments and shelter they need, all other purchases are made to meet higher needs. Thus, the interrogationer can state that in order to meet some part of ones self esteem needs, UK and international consumers may be relating to Harrods luxury Patisserie and Bakery food to experience self actualization and thus for Harrods this has created a niche. The int erest in premium, specialty and artisan products is also influenced by the static growth in population, which has lead to a static growth in overall grocery sales.In this situation, foods that command a premium price and higher margins become the only growth sector, and therefore become the target of multiples. Artisan, specialty and premium foods are therefore gaining broader distribution in the multiple retail sector. Workman C (2005) 2. 5 Consumer buy Trends The growth of specialty fine food is attributable to Increasing consumer affluence as consumer wealth increase, so does the demand for more premium, value added products as opposed to cost-reduced commodity products10% of population in UK is defined as affluent this figure is expected to rise to 30%.When it does premium food, including specialty food is expected to account for 45% of total food sales in UK. The specialty market is worth ? 4. 2 b in UK and has grown from 20% from 3. 5 bn in 2003. British fine food consumers spend ? 900 per year on fine food. Workman C ( 2005) CHAPTER THREE Research Methodology 3. 1 Introduction This chapter discusses the different aspects involved in the methodology used to conduct the present study of Consumption of Luxury Food in Harrods Foods Patisserie and Bakery Food Hall.It highlights methodological approaches which will allow orbit of the Research study in a sustained process of planning and design. The consideration of the process will influence the choice of methods and approaches that will be presented. This chapter, for that reason contains a discussion of the research conception, research approach, research strategy, data collection methods, data analysis and quality standards. 3. 2 Research Purpose Yin (1994) states that research purpose can be grouped and classified as alpha, descriptive or explanatory.Exploratory research is conducted to crystalize the nature of a problem, where the purpose is to provide insights and understanding, not to provide con clusive evidence. Exploratory research is conducted with the foresight that subsequent research will proceed (Zikmund, 2000Bryman,1989). An exploratory study method is used when the aim is to develop proposition of future research (Yin,1994). A descriptive research is used when the major objective is to cite something, such as population or a phenomenon. It seeks to answer who, what, where and how questions. In a nutshell, it does not deed over the explanation of the cause of the findings.However, when solving a business problem, it is often enough with the in initializeion obtained from describing a situation and it is not required to know why things are the way they are (Zikmund,2000). In order to finish a descriptive research, the researcher must have prior knowledge of the problem situation and the information needed is clearly defined. In fact, this is the major difference between exploratory and descriptive research, as well as that the descriptive research must be structu red and the methods for the selecting sources of the information and collecting data are pre-planned and formal (Malhotra,1996).In explanatory research, the emphasis is on studying a situation or a problem in order to explain the relationship between variables (Saunders et al. ,2000). accord to McNabb (2008) typical objectives for explanatory research include explaining why some phenomenon occurred, interpreting a cause-and-effect relationship between two or more variables, and explaining differences in two or more groups responses. The purpose of this Research Study is to gain an understanding of Harrods succeeder within its luxury food service specifically their Patisserie and Bakery department Food Hall, Knightsbridge, London, UK.In order to achieve this objective, the Research Study will need to consider three core elements which will be how Harrods conducts their design, implementation and evaluation strategy of the customer. Since the aim of the research is to describe how H arrods operates within the Luxury food service industry, the study is descriptive in nature. 3. 3 Research Approach According to Zikmund (2000) research can be conducted in different ways and includes twain a divinatory and a methodological approach.The theoretical approach can either be deductive or inductive, and the methodological approach is qualitative or decimal (Zikmund 2000) 3. 3. 1 Qualitative versus Quantitative Research Zikmund (2000) further states that when collecting information, either qualitative or quantitative data can be cool. Qualitative approach may consider the following methods for crowd information like Participant Observation, nary(prenominal)-participant Observation, Field Notes, Reflective Journals, Structured Interview, Semi-structured Interview, Unstructured Interview, and Analysis of documents and materials.In contrast, quantitative methods for research techniques include gathering of quantitative data, like information dealing with numbers which is measurable. Statistics, tables and graphs, are generally used to present the results of these methods. They are distinguished from qualitative methods. The study, under focus is quantitative using an exploratory design. This kind of method is widely used to gain familiarity with a phenomenon that is not adequately explored. The researcher feels the need to explore this issue since there is not much data relating to Consumption of Luxury Food in Harrods Foods Patisserie and Bakery Food Hall.3. 4 Sampling Techniques The universe will comprise of simple random sampling method to select samples. This will modify the researcher achieve the desired information. According to Kumar (2008), this type of sampling is also as chance sampling or probability sampling where apiece and every item in the population has an equal change of inclusion in the sample and each one of the possible samples, in case of finite universe, has the same probability of being selected. To select the sample, ea ch item in this research study will be assigned a number from 1 to 100.The sample survey will cover respondents in the age group of 18 years and above only. This will ensure that the respondents are old enough to understand and answer questions in the interview schedule. 3. 5 Population The sample size of this study is intended to be 30-50 respondents, in the age group of 18 years and above. The study will have to be completed in Harrods Patisserie and Bakery Food Hall, Knightsbridge, London. The population will only include consumers and purchasers from the above food hall. 3. 6 Research InstrumentsFor the purpose of this research study both primary and secondary data relevant to this topic will be used. Without the use of both instruments the research study will not verify facts and the scope of analysis if not used unneurotic will not make the research interesting. 3. 6. 1 Primary Data Primary data for this research study will result from firsthand experience with the use of que stionnaires for preliminary gathering of data. Questionnaires will be prepared prior to in-depth interviews with respondents at Harrods. 3. 6. 2 tributary Data Sources.For the scope of this research study Secondary Data Sources will include literature review with sources from the library, web, and surveys. Other secondary sources of data will be sourced and will include thesis, newspapers and internal company reports. 3. 6. 3 Data Collection Instruments This section will include the 30-50 respondents completing a questionnaire. The interview schedule will be prepared on the basis of study objectives and aims with structured open ended and close ended questions. voice A may cover income, Section B may cover types of Luxury food and section C on consumption of luxury food.3. 6. 4 Interviews At the time of the respondents completing the questionnaire the researcher will interview the respondents. This approach will enable the researcher gain a better comprehension of consumer spendin g on Luxury Food items in Harrods. CHAPTER FOUR 4. 0 PROPOSED ANALYSIS This chapter will highlight the Research plan as it will abridgment the steps for conducting the research in terms of description, timing and presentation. It will be used as a guide to execute and monitor the project which will enable the researcher to achieve the purposes of the research.The data collected will be analysed and presented diagrammatically in tables and charts. This will then enable empirical findings to be compared. In order to carry out statistical analysis of the quantitative data obtained, the Statistical Package for neighborly Studies (SPSS) and Microsoft Word software will be used to develop a comprehensive and flexible statistical analysis and data management for the research. This will enable a range of tabulated reports, graphs, pie charts, and analysis. 4. 1 Schedule.Planned activities work on April May June July Topic Selection X X Literature Review X X contact with Grou p X Meeting with Supervisor X X X X Seek licence from Harrods X Write up Questionnaire for data collection X Data Collection at Harrods X Analysis of data & Findings X X X Write up of Dissertation Introduction X Write up of Dissertation Overview X Drawing up summary and conclusion X establishment Reading X Presentation of Research X Final Submission X .CHAPTER FIVE expect OUTCOMES The results of this research will provide a specific insight for Harrods Patisserie and Bakery Food Hall into consumer behaviour, trends and patterns. Secondly, the research findings and recommendations may enlighten Harrods on ways to continue to stay on top of the market in any economic climate as a global brand. 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