presentation on organic food - copy
TRANSCRIPT
Sip Presentation on Consumer behavior towards Organic food
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BY: ASHISH CHAUHAN PG20095343
INDUSTRY BACKGROUND• Organic food industry is an opportunity in India.• Organic food industry is growing at 30% annually.• It contributes 18%-20% in annual GDP.• India has 4% market share of organic foods.• The global organic food market grew by 9.7% in 2009
to reach a value of $60 billion. • In 2014, the global organic food market is forecast to
have a value of $96.5 billion, an increase of 60.7% since 2009.
• The fruit and vegetables segment generated 31.5% of the global organic food market's overall revenues.
COMPANY PROFILE• A part of B.S. Associates.• FOUNDER- Mr. Vinod Goel• Near2Nature means “Close To Nature”.• Believes in quality, purity & eco-friendly organic
product.• To bring people “BACK TO BASICS”.
OBJECTIVE • Near 2 nature has been established with the essence
of purity and belief that the right of every individual to EAT HEALTHY and LIVE HEALTHY is accomplished.
COMPANY PROFILE Contd…
CORPORATE OBJECTIVE
“It is our aim to become one of the top organic food companies in India and to become a cornerstone of B.S. associates In India.”
CORPORATE MISSION
“To be an ethical and innovative global leader in providing genuine organic products and solutions for conscious and healthy living.”
Consumer Buying Behavior• Study of consumer preferences• Based on their past experience• Related to the segmentation, target and
positioning of the customer• Consumer plays 3 distinct role- user, payer and
buyer.• It concern with action, needs and satisfaction.
RESEARCH OBJECTIVE
• To study the consumer buying behaviour for organic foods in the Indian domestic market.
• To analyze the potential for organic products in the Indian domestic market.
• To study the marketing mix of organic foods in India.
RESEARCH METHODOLOGY
• Study the consumer behavior for the organic foods and their feedbacks through the market survey-
DATA SOURCE- Primary & Secondary data
RESEARCH APPROACH- Survey Approach
RESEARCH METHODOLOGY- Descriptive method RESEARCH INSTRUMENT- Questionnaire
SAMPLING PLAN• POPULATION DEFINITION- Mostly House-wives &
Working Ladies • SAMPLING METHOD- Random Sampling Method
• SAMPLE SIZE- 100
• PRIMARY DATA- Questionnaire Survey
QUESTIONNAIRE USED
FINDINGS & ANALYSIS
Above 5015%
Between 21-50
85%
AGE GROUP
WORKING49%
HOUSE-WIFE51%
OCCUPATION
PART B: Information about Organic food
Porter’s Five Forces
Competitive
Rivalry
Potential Entrants
BuyersSubstitut
es
Suppliers
Heating Up
Cool To Warm
Porter’s 5 Forces – Near2Nature Market
Forces Description Strength of Force
Threat of Substitute Products
Easy switch to the conventional retailers. Specialty stores built right in to their strategies.
High
Bargaining Power of Suppliers
Largest food processors acquiring organic food producers. Only 1% of farmland used for organics.
Medium to High
Bargaining Power of Buyers
For the most part, buyer can switch to other high quality products
High
Intensity of Competition
Degree of commitment by the conventional retailers will determine the intensity.
High
Threat of New Entrants
Entrants are already there. Their intensity of their pursuit of the natural/organic market is the question.
Low – Medium
Marketing mix
Marketing Mix
• Product– High Quality Natural and Organic Food – Offerings vary based on store size and tastes of
local clientele– Private label products– Emphasis on daily foods
Marketing Mix
• Price– Goal is competitive price at highest quality– Organic foods are 25 – 75% more costly to grow
and market– Price and Quality are competing forces
• Near2Nature chooses to focus on Quality, therefore prices are higher than conventional grocers
Marketing Mix
• Place– No standard store design. Layout customized for
site and product mix.
– Presentation• Highly regarded food displays, cleanliness, wide aisles
Marketing Mix
• Promotion– Primarily rely on word-of-mouth
recommendations– 0.5% of revenue spent on advertising– Most marketing spend is for in-store signage and
events– Store personnel is knowledgeable and
personable
SWOT AnalysisNear2Nature Foods
STRENGTHSHighest Quality Organic Foods SellerHuge selection/varietyFree Home deliveryFirst Mover in organic productsEco-Friendly
WEAKNESSESPrice – up to 75% higherLocations – only in affluent areasAdvertising Budget very low (WOM approach)Promotional Offers – no couponsCertification
OPPORTUNITIESExpand private label selection – lower price for customersAdvertise more, create coupons and promotions to get people in the storeHype right now is to eat healthier and protect the environmentRewards program – frequent buyer cards Back to Basics – buy more local products that people will pay more for
THREATSConventional Supermarkets Bad EconomyLocal Farmers’ Markets/Independent Retail Chains
What are the future challenges for Near2Nature?
Future Challenges• Pricing – being able to compete against the
conventional grocery chains
• Getting more people in the store to buy organic food
• Convince new customers to shop at Near2Nature rather than more convenient stores
LIMITATIONS
• The sample size for the analysis of the satisfaction level of the customers and testing the perceptions of the people towards organic food was restricted to 100 due to time factor constraint involved.
• Support from customers.
• Sometimes people may not provide us with the correct information.
• Restricted to one area i.e. Delhi and NCR.
CONCLUSION
• Focus on consumer preferences.• Create awareness about the organic foods and
their availability.• Advertisement and promotion of the
products.• Maintain a trust & brand name.
Recommendations for Near2Nature
Recommendations• Lower Price to Compete with Grocery Stores
– Add a customer rewards program for frequent buyers
– Coupons to customers
• Catering– Offer catering to local businesses & events
• Expand Private Label Selection– Lowers manufacturing costs, could offer discounts
to customer for using Near2Nature brand products
Reference
• Mr. Abhishek Singla Manager (Operations) Near 2 Nature Pvt. Ltd. Sec-21, Rohini, New Delhi