Ceres Gardening Essay

1629 Words Oct 6th, 2014 7 Pages
Ceres Gardening Company Case Study

1. How has the company grown? What is its basic strategy + how has it evolved? What have been the key factors in the company's growth?
The growth of the company has been fueled by the market demand growth in organic products. Ceres increased their revenues by over 75% in just five years, while growing profits by over 25% (based on Exhibits 2, 3 & 4).
Ceres’s basic strategy started with its founder, Jonathan Wydown, to promote sustainable organic gardens and landscapes to environmentally conscious consumers. Mr. Wydown has been a proponent of soil preservation, biodiversity, and natural fertilizers and pest control. Mr. Wydown was confident that the same principles behind organic farming
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These further strengthened Ceres’ production capability.
* Distribution Channel – In the early years, Ceres operated primarily as a mail-order catalog company. This was their main distribution channel. The operation was ran well and valued for its quality, reliability, and hands-on customer service. Moreover, Ceres provided a free bimonthly company newsletter, which included gardening tips, introduced new products, and created a sense of community among the expanding customer base. This alternative marketing expanded Ceres’ channel from one time purchase to future incremental (post-sale) revenues. Eventually, Ceres expanded its channels to include retail channels, and direct sale through a sales force model.
* GetCeres™ Program – enabled the average nursery or garden center to stock a sufficient inventory of Ceres’ products to meet the seasonal demands of the customer. If a retailer ran out of seasonal products, the customer would probably not return later, thus a potential loss of sale. Essentially the program meets the challenge of having the plenty of stock of the right product in the store at the right time based on consumer attitudes, behaviors, and preferences. The program also provided incentives to retail storeowners by offering deep discounts to carry inventory and extended payment plans.

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