The Grocery Market And Natural Food Retail Chain Essay

John Mackey and Renee Lawson Hardy, the co-founders of the current Whole Foods Market, simply wanted to provide quality healthy food to the American consumer. This was about three decades ago when the first store opened. According to Mackey, making money was not the first priory, but helping people to eat better was. Happily for Mackey and Lawson, the residents of Austin Texas were hungry, no pun intended, for just this type of product. At the time, though there were several small independent healthy food stores, there was not a full sized grocery store. This is what set Mackey and Lawson apart from their competitors, their enormous sized health food grocery store was a huge success and now Whole Foods Market (WFM) is not only a

We have all been to a supermarket or store at some point in our lives. Have we found ourselves placing items in the cart that we did not come to buy? Is there a reason the products we really need are located in the back of the store? This article, “The Supermarket: Prime Real Estate,” was written by Marion Nestle. She teaches in the department of nutrition and food studies at New York University. Nestle writes a column regarding food for the San Francisco Chronicle. Shortly after reading the title, one can determine Nestle opposes supermarkets. “Prime Real Estate,” indicates that large supermarkets are feeding grounds for them against unsuspecting customers. Supermarkets can determine what a person will buy on impulse. The general argument made by Nestle in her work, “The Supermarket: Prime Real Estate, is that supermarkets are taking advantage of our unconscious mind and we are purchasing products on impulse.

Stiff competition within the industry would be one of the key threats that Whole Foods will face. Strong competitors, coupled with grocery stores that have incorporated natural food sections into the stores, have made it more challenging for Whole Foods to maintain its pole position in the market. As the market for organic foods expands rapidly, mainstream supermarkets are also competing for a slice of the pie. Strict government regulations and the lack of prime locations have made it more

A major criticism of organic foods is the obvious price increase included with purchasing organic products. While there are numerous reasons for the price premium associated with organic foods, the most obvious reasons are the cost of organic supplies such as feed and fertilizer to make a profit. George Siemon, CEO of the Organic Valley co-op, states that “A ton of organic cattle feed can cost from $350 to $400 a ton versus $220 or less for a ton of conventional feed,” illustrating a major price difference for simply fertilizing a crop (Simon). With access to more resources than organic farmers, conventional farmers will often spend less in the overall farming of a crop than organic farmers, increasing their profits. Conventional farmers often use materials such as “sewage sludge, which is cheap to buy, and chemical fertilizers, which are both cheap to buy and cheap to transport” (Simon). Using these potentially hazardous chemicals for crop production runs the major risk of chemical runoff and contamination of local water supplies or reservoirs, which will directly affect

Another economic factor in organic farming, in general, is that organic food is typically more expensive that its non-organic counterpart. This observation goes along with both large and small organic farms. When people go shopping, they often look for the cheapest item. Since

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.”

The main competitors in the industry are all small to medium and large sized purveyors of organic foods. The major threat comes from Whole Foods Market. This firm is best positioned to compete and control a sizable market share due to its growth strategy. Much of Whole Foods Market inventory is a result of mergers and acquisitions of small, independent retailers of organic foods and specialty products (Whole Foods Market History, n.d.). Our competitors that we must pay the closest attention are Whole Foods Market and Trader Joe’s. Although Whole Foods Market has a merger and acquisitions growth strategy; Trader Joe’s surpasses Whole Foods Market in sales—$1,734 versus $934 per square foot respectively; due to higher product costs and failure

Organic farming began in the late 1940’s in the United States, and in recent years it has seen a dramatic increase in popularity (Rubin 1). The sales of organic food have been increasing by about 20 percent a year over the past decade (Marcus 1). That is over ten times the rate of their conventional counterparts (Harris 1). There are 10 million consumers of organic food in the United States, yet organic food represents only one percent of the nation’s food supply. This year organic food sales are expected to rise to six billion dollars (Rubin 1). So what is organic food? Organic food is that which are grown without hormones, pesticides, or synthetic fertilizers. Also, the soil in which organic food

The grocery and supermarket industry is a highly competitive and congested industry. In the face of serious obstacles, Trader Joe’s has managed to separate itself from its closest competitors within the industry. This case study aims to explain how Trader Joes has created its competitive advantage as well to examine the company’s future prospects. We will do this through analysis of four key factors related to the success of the company; Trader Joe’s external environment, the generic strategies used by TJ’s and its competitors, sources of the company’s competitive advantages, and TJ’s strategies going forward.

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

Rachael L. Dettman in her presentation to the USDA wrote: “Organic produce: Who’s Eating it? A Demographic Profile of Organic Produce Consumers” research suggested that in the post-recession period, organic produce, which is the largest organic sector, is now growing at 15% and the demand for organic foods at large is sharply increasing. (Dettmann, pg. 1). Matt Townsend in his article: “Whole Foods Profit jumps on Demand for Organic Foods” cited Merideth Adler, analyst for Barclays Plc that for the organic market: “sales trends remain strong as it appears that the growth of the natural and organic industry has continued to exceed expectations” (Townsend, pg. 1)

The food industry allows consumers to choose from a wide variety of products. However, most food corporations fail to tell the story behind their food. Is this secrecy due to their methods in creating their products? Conventional farming is America’s leading source of food production. Yet, the controversial practices used in conventional farming, may lead American’s to question if this is the only farming source that can feed our nation. Since 1972, organic farming has been creeping up the success ladder and demonstrating the methods involved can withstand the food demands of our nation. With the rising popularity of organic farming, U.S. citizens now have the option to purchase wholesome food. Consumers curious about purchasing organic goods should be aware of the notable differences between organic and conventional practices. The significant differences between organic and conventional farming include; animal welfare, health, and environmental. With the given information, consumers will be able to make informed decisions about their food purchases.

Organic farming is becoming an increasingly popular market throughout the world. (Adam, 2004, p. 666). The aims of organic farming are, to decrease pollution, maintain soil fertility and biodiversity, be more sustainable, and have increased nutritional benefits than conventionally grown foods (Yaping et. al., 2003, p. 298). While the aim of conventional farming is to provide safe, proficient supplies of food, in abundance and at low prices (Trewavas, 2001, p.409). Since 1996, the amount of land in the UK dedicated to organic farming has risen tenfold (Adam, 2004, p. 666). As well, from 1992 to 1997, the amount of certified organic cropland in the US more than doubled (Tafel et al, 2007, p.182 ). The main difference between organic and

     Porter’s five forces of competition framework can be a valuable tool in analyzing an industry. Porter’s five forces of competition include: competition from substitutes, entrants, rivals, supplier power, and buyer power. We will now analyze the retail grocery industry according to Porter’s five forces. (this is straight out of the Barnes and Noble report I wasn’t sure if we should cite this or not)