The business venture is called “Organics For All”. The opportunity is around need to cater to organic vegetable & fruits demand to larger segment of consumers. Currently organic produce is considered to be very expensive and sparsely available in the market. There are valid reasons why price points are very high. In general a normal middle class / upper middle class consumer rely on highly unorganized market to buy vegetables. Organized retail sector has recently started catching up. Organic vegetable and fruits supply is a niche segment and usually is available via both organized retails and unorganized sectors depending on geographic area and market potential. It is apparent from market share that organic vegetable and fruits occupy very …show more content…
Even if it can cause life risk or some side effects, consumer usually ignores due to loosely connected messages from mass media. There is very few people who will relate them with organic produce consumption. It provides fair idea on penetration level of organics in the consumer’s mind
In addition, problem area also lies in perception on organic produce. It’s considered to be more of fad and due to high price point and lack of freshness (large inventory cycle time), there is very less mass pull created towards consumer. So in nutshell, all these factors contribute to creating barrier and maintaining niche position for organic produce. Much can change if such barriers are broken and new stream of demand gets created. Solving this problem will be one of the key towards opening doors and converting it to mass market.
Lastly there is known issue of supply chain in Indian context. There is very high share of waste due to lack of proper transportation, rough and harsh weather condition prevailing at different time of the year. All these challenges hit the bottom line and put the pressure on pricing. There are ways and means to achieve efficiency to get unique advantage on this aspect. This problem will also be attempted when produce will be sourced from the farms directly.
How are we solving the problem and fulfilling unsatisfying need?
First of all consumer perception need to change.
The organic food industry has seen a huge spike in growth that is expected to continue into the future due to an increase in consumption. This will provide Whole Foods Market with huge opportunities. In addition, a wave of ethical and responsible consumption has swept across America. Whole Foods’ decision to pursue sustainable activities will certainly give consumers an added incentive to purchase its organic products.
There is more and more demand in the market for organic food. Lots of educated people are going organic instead of buying the regular foods that are full of pesticides and chemicals that are hazardous for human consumption. Since my product is 100% organic it can easily enter that market and satisfy those demands. Even though there are some grocery stores selling organic products there aren’t many suppliers. Therefore, my products have very little competition and I need to expand statewide and nationwide.
Now, I would like to discuss the benefits that our organic-based business will offer to our target customers. First, as far as the functional benefits are concerned, one of the key factors is that organic produce offers the consumer a healthier option when it comes to one’s eating habits. In regards to chemicals, organic produce refrains from using any kind of synthetic pesticides, fertilizers, fungicides, herbicides or synthetic preservatives and additives. As such, the amounts of hazardous residues within organic foods are basically restricted to the lowest amount (“Organic”, n.d.).
Long time ago, the idea of organic food was something ridiculous, nobody cared. But after proved the nutritional benefits and better taste of organic food, many farmers become interest in grown organic food. The article Beyond Organic by Eliot Coleman said that “Now that the food-buying public has become enthusiastic about organically grown foods, the food industry wants to take over.”
Since 2006, the demand and market for organic food and drinks has been increasing exponentially. The demand for these organic products is growing much faster than the supply. Consumers are more interested in where their food is coming from and how it was made. “The latest data shows organic sales in Canada have tripled since 2006 to 3.7 billion dollars a year.” (Global News). There are not enough farms in Canada that produce and supply organic products to meet the high demand. It takes approximately three years for an average farm to convert to an organic farm. However, the whole farm does not have to be organic, a portion of the farm can be converted to organic while the rest operates the way it was previously. The demand curve has shifted
Organics on The Go is an innovative start-up company that offers high quality, fairly priced, 100 percent all organic products for the on the go individual. These products are crafted to meet the specific needs and wants of a carefully selected target market. The demand for organics at large is strong and growing providing an excellent opportunity for success with a business that relies on a carefully crafted holistic marketing plan. Organics on The Go has developed an intricate holistic marketing plan that incorporates a comprehensive IMC approach to ensure success
Another problem with selling organic food is that producers are often small-scale producers and “are not entitled to the subsidies and disaster assistance in the same fashion as registered farmers” (Janssen 2010). Therefore, they cannot sell as much.
The organic foods industry is one that shows consistent growth. From year to year, they are undergoing an increase in demand. There are a number of factors that contribute to the industry’s growth. These factors include more consumers being educated, and conscious of health concerns of processed foods having a negative impact on their body and the environment. Trends in the retailing of organic foods would include the ups and downs in the
Technology has influenced the availability and selection of foods today compared to foods in the past. Organic Food have become popular in the United States.Many people have switch to organic food, because it's a lot healthier to eat. With most things there is always a catch, this one is that it cost twice as much to buy and get less.But nevertheless demand for organic food is growing so fast that consumer demand is outstripping some domestic supplies.The United States now spends more than $1 billion a year to import organic food, according to the USDA, and the ratio of imported to exported products is now about 8 to 1. About 10,000 American farmers have made the transition to organic food production on about 2.3 million acres of land. American
Since organic products are very popular nowadays, many stores want to carry organic products from the well-known food distributor.
Currently, the majority of the organic food market is run by small business owners and small family-run operation. These businesses have a harder time producing organic foods through cost effective methods because they usually do not have high distribution costs and other expenses that could be cut as demand rises. Small organic businesses usually rely on local farms and local agriculture that produce their crops at a slower rate and volume than mass produced name brands. Therefore, since organic food production is still in its preliminary stages in the world economy, (about 1% of the food industry is organic food) the best solution would be to let organic food companies acquire a bigger chunk of the
1. The food industry is one of the business sectors that are in full development process. This development can be mostly attributed to fast food chains that have expanded in number of locations, types of products provided, and number of customers. An important trend that influences the food industry is represented by organic foods. It seems that in increased number of customers is interested in developing a healthy lifestyle. This also refers to food. Therefore, certain customer segments are interested in purchasing organic foods and beverages.
USA: According to the Organic Trade Association’s 2016 Organic Industry Survey, U.S Organic Industry has set new heights of $43.3 billion in 2015. Which means $43.3 Billion is spent on organic food every year. According to Tech Sci Research every 3 out of 4 grocery stores sell organic food. Therefore, in total USA have around 20,000 stores that sell organic products. Key competitors in US markets are Whole foods, Kroger, Sprouts, Trader Joe Stores, Wal-Mart; Costco etc. Top key players would be Kroger’s and Whole foods. According to Kroger’s investor conference in Oct 2015Kroger’s has estimated to have sales worth $ 11 billion organic product surpassed only by Whole Foods Market. According to Transparency Market Research, the U.S market is expected to grow at brilliant rate of 15.5% CAGR and rise from a valuation of US$70.70 bn in 2012 to US$187.85 bn by 2019.
The amalgamation of organic foods with an online selling platform is highly fascinating since there is no/very little competition, an ever-present online market, increasing number of buyers and good profit margins.
As the Indian population is increasing, the demand for fresh fruits and vegetables is also increasing. Owing to the perishable nature and very short shelf life, these items require storage and transportation facilities in order to reach to the customer in fresh state. This requires a considerable amount of effort from the involved parties. The entire chain is fraught with issues like lack of transparency in pricing (at the farmers' end), dominance of traders, weak links in supply chain, etc. This leads to loss of revenue to the farmer and increased additional costs to the other supply chain partners, which ultimately enforces the final consumer to bear extra burden on his