Consumerism
It is possible to identify several trends related to the consumerism in the United States. In particular, one should mention that American people have increased their expenditures on food. For instance, during the period between 1997 and 2007, the sales of food products grew from $ 551 million to $ 1.2 billion (Wilde, 2013, p. 54). This growth rate remains significant even if one takes into account the inflation rate.
Moreover, the consumption level continued to grow even during the economic recession (Wilde, 2013, p. 54). Therefore, this tendency can be a positive factor for such companies as the ABC Candy Shop. It is also vital to mention that online consumption becomes more popular in the United States (Garlough, 2011, p. 53).
For instance, in the United States, approximately 94 percent of Internet users make online purchases (Black, 2011, p. 349). Furthermore, at least 50 percent of American adults have bought products or services on the Internet. Therefore, the ABC candy shop can benefit from these trends by distributing its products online.
Nevertheless, one should take into account that many customers are extremely concerned about the risks of obesity or diabetes. Moreover, they try to reduce their consumption of food products that are rich in fat or sugar (Counihan, 2008, p. 28). Some of them may try to eliminate candies from their daily diet (Counihan, 2008, p. 28).
These are some of the main factors that should be considered by entrepreneurs who want to retail new products. Therefore, the sellers should focus on the nutritional value of their products and their effects on health; otherwise, it may be difficult for them to secure the loyalty of customers. This is one of the main points that can be made.
Demographic trends
There are several demographic trends that should be taken into account. First of all, according to the findings gathered in 2012, the population of the United States numbers 316, 668, 567 people, while the average growth rate is about 0.9 percent (Central Intelligence Agency, 2013). It is projected that this growth rate will not decline in the near future. Therefore, small businesses can expect to find a great number of potential clients.
It should be noted that the main consumers of the ABC candy shop will be people whose age ranges from 6 to 15. This group constitutes approximately 15 percent of the total population (The United States Census Bureau, 2013). Yet, the products of the ABC Candy shop can be purchased by the representatives of other age groups, for instance, one can mention females aged between 25 and 40.
Overall, people living in the United States represent various cultures, ethnicities, or religions. They accept candies or other sweets as a part of their cuisine. This is one of the issues that should be considered. Moreover, it is vital to mention that in every age group, the number of females is larger than the number of males (The United States Census Bureau, 2013).
This tendency is also beneficial for a business like the ABC candy shop because women purchase food products more frequently. This is one of the main aspects that can be identified. It is possible to say that demographic trends will support the development of businesses like the ABC candy shop.
However, one should forget about such a criterion as the purchasing power of the population, and it can fluctuate significantly with time passing. Therefore, it is possible to argue that the understanding of demographic tendencies can be of great value to entrepreneurs who launch a new business.
Geographic mobility and growth areas
One should also pay attention to such aspects as mobility of the population. At the moment, the United States is one of the most urbanized countries in the world. In 2010, approximately 82 percent of the population lived in cities (Central Intelligence Agency, 2013). In 2012, more than fifty percent of American people lived in southern and western regions of the country (The United States Census Bureau, 2013).
On the whole, one can speak about the movement of population in westward and southward directions. This trend has been observed during the last decade, and to a large extent, this tendency reflects the economic development of the United States. This is one of the main details that can be identified.
This information is important because it can suggest where the company should open new stores. Still, one should keep in mind that there are very populous areas in the eastern and northern parts of the country. In particular, one should speak about such states as New York and Pennsylvania (The United States Census Bureau, 2013).
Therefore, the management of the ABC candy shop should pay attention to these regions while developing their marketing strategies. As it has been said before, the company will also operate on the Internet, and it will be less dependent on demographic changes. This is one of the main arguments that can be put forward.
Reference List
Black, K. (2011). Business Statistics: For Contemporary Decision Making. New York, NY: John Wiley & Sons.
Central Intelligence Agency. (2013). The World Factbook: The United States. Retrieved from https://www.cia.gov/the-world-factbook/countries/united-states/
Counihan, C. (2008). Food And Culture: A Reader. Boston, MA: Routledge.
Garlough, R. (2011). Modern Food Service Purchasing: Business Essentials to Procurement. New York, New: Cengage Learning.
The United States Census Bureau. (2013). U.S. and World Population Clock. Web.
Wilde, P. (2013). Food Policy in the United States: An Introduction. New York, NY: Routledge.