Question

Background

Plastic packaging for products first became available in the 1950s, and its use has grown exponentially over the last 65 years. Over the past few years people around the world have become increasingly aware of the impact of plastic waste on the environment. Large quantities of plastic waste in waterways, discoveries of plastics ingested by sea animals and microplastics in the food web motivated many consumers to look more carefully at how their consumption contributes to plastic waste.

Over the last 12 months, the major supermarket chains have stopped offering “single use” plastic bags for customers’ groceries. However, these plastic bags are one small form of global plastic pollution. Plastic packaging exists on the bulk of consumer products. It facilitates transportation and reduces waste, by keeping the products free from damage, and, in the case of food products, reduces the risk of contamination and spoilage in the journey from manufacturer to the retailer’s shelf.

Question :Consider the costs and benefits to the major retailers of food products (the supermarket chains) of voluntarily moving away from plastic packaging in response to consumer demand. What strategic considerations do these retailers face? How might retailers use their buyer power to influence manufacturers (their suppliers) to use more sustainable packaging solutions?

Thank you so much!!! No more time due

Answer 1

1. The concentration of retailers related to food products have raised over many decades. This ability of them controlled prices which are to be bought by the consumer.

2. Not only the prices to the consumers, they also procured power to fix prices which are to be bought from the suppliers.

3. They introduce experience of plastic free shopping where price is incurred on the packaging of the groceries which is quite ignored by the consumers practically as proven in many countries as they tend to know the effects of plastic on the environment.

4. Bio-degradable bags are introduced into the market by the retailers as per the demand of the consumers which are formed from potatoes or corn starch blends.

5. They don't incur any costs as they charge the packaging costs directly on the customer. They also benefit from gaining more customers if they tend to responsible towards the environment.

6. Some retailers introduce plastic recycling machines in their stores offering discounts or vouchers for disposed bottles which forms a strategy for procuring more customers and saving the environment.

7. They even influence manufacturers to provide for the same through their buying power for profit maximisation and more customer acquisition.