The Industry, Company, and its Products or Service
The produce industry has undergone a series of major changes in the last 10 years. Historically, produce entered into the market through wholesale distributors who sold the goods to retailers around the country. This system allowed for economies of scale to be reached as large produce operations contracted their services out to wholesale distributors who then transfer the produce to area retailers. This system has been effective and cost efficient but is no longer meeting the needs of the customer in our ever changing society. Following the growing trend of “green” living many customers are now searching for produce that is fresh, locally grown, and environmentally friendly. Many consumers have questioned the quality of produce sold at retail giants such as Wal-Mart and Kroger. In response, the mass merchandisers have begun to “cut out” the produce wholesale services and have begun to directly deal with large production operations. While this move was necessary, mass merchandisers have still not been able to combat their reputation of offering low quality produce. Origins of this reputation can be attributed to their “low cost” and highly efficient operations. The “high quality, locally grown” image that consumers now desire in their produce is lost within most retail stores. Many retail stores that offer produce promote a store image that is counterproductive in their efforts to sell high quality produce.
As retail stores continue to struggle to offer high quality, local produce there lies a window of opportunity to provide the end consumer with the produce they desire. By introducing roadside produce stands into the market, the consumer wou ...