Marketing Reasearch Essay

2064 words - 9 pages


When Farmingdale State College students are asked about Aramark, they simply associate it with the food that is served on campus. Little do they know that Aramark has a whole history and that there are many facets to this company. Not only does Aramark Corporation cater to different colleges around the country, they also have uniform services among other things.
Aramark was born because of two business owners who merged their two companies, Davre Davidson and Bill Fishman. These two men were the owners of two peanut vending businesses. In 1959, after merging, they incorporated their new company with the name Automatic Retailers of America, Inc. (ARA). In the first ...view middle of the document...

Due to this, ARA faced charges from the Federal Trade Commission (FTC). By the year 1977, ARA was stripped of almost all of its vending machine operations.
ARA’s name was changed to ARAMARK Corporation in 1994. It was after that year that they also entered into a new market – the hospital food services market. In 2000, Aramark bought Odgen Corp’s Entertainment division. This acquisition landed them a $700 million food service contract with Boeing Company ("History of Aramark Corporation – FundingUniverse"). As of February 25, 2014, ARAMARK’s net sales were $13,082,400,000 ("LexisNexis® Academic & Library Solutions").
Aramark Corporation now provides services to other businesses. These include sports, entertainment and recreational facilities; and educational, health care and governmental institutions. According to LexisNexis, Aramark’s food and support services group handles different interrelated services. These include “food, hospitality and facility services-for businesses, health care facilities, school districts, colleges and universities, sports, entertainment and recreational venues, conference and convention centers, national and state parks and correctional institutions”. The company even operates in 20 other countries outside the U.S. and Canada. They provide international food and support services in these countries.
Among their food services, Aramark also provides “uniforms, career and image apparel, safety equipment, work clothes and accessories to meet the needs of clients in a wide range of industries in the U.S., including manufacturing, transportation, construction, restaurants and hotels, public safety, health care and pharmaceuticals” ("LexisNexis® Academic & Library Solutions"). In 2013, ARAMARK “announced the pricing of its initial public offering of 36,250,000 shares of its common stock at a public offering price of $20.00 per share” (PR Newswire - ProQuest).
In terms of consumer satisfaction, according to the Journal of Marketing Research, Aramark began a customer loyalty program for some of the colleges and universities they serve. This program works like a regular points program. It gives students points for any purchases from the campus dining. The points they earn can then be used to redeem different items (Aramark's Customer Loyalty Program: EBSCOhost).


Aramark is very a large corporation. They are very powerful in the food service industry. They are so successful that they also operate outside of the United States. Because of their large size, they are making a high profit. They also seem to have a large market share.


Since they are such a big corporation, they could be viewed as being a monopoly and face more charges by the FTC.


Expanding further outside of the U.S. and Canada into more countries.


Aramark’s threats may include other food service companies who are expanding into the same markets.

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