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Organic Food Project Final
Organic Food Project Final
On
NEAR 2 NATURE
Submitted by
Ashish Kumar Singh Chauhan
Roll No: PG20095343
Batch: 2009-2011
for the fulfilment of the requirement for any course of study. I also
lifted and incorporated in this report from any earlier / other work
done by me or others.
Date : 10.07.2010
Last but not the least, I will always remain indebted to the
organization and the helpful suggestions and advice provided to
me by its members.
EXECUTIVE SUMMARY
My summer internship was divided into two halves: In the first half, I
had to analyze consumer behaviour towards Organic food products i.e.
what they perceive about organic food products. In the second half, I
was engaged in selling of Near 2 Nature products .This is followed by a
survey and its analysis and at the end the recommendations that could
make Near 2 Nature more effective in the Organic food market.
Project Objectives:
Learning:
I learnt a lot during my project. It helped me giving a basic idea of how
organic food company caters to the need of its customers. I learnt about
how the organic food company sells its products in the market and what
are the customer’s preferences in terms of the services provided by the
bank. I also learnt how to deal with the customers while engaged in
marketing and selling of the products and services.
SIP also helped me to get used to the corporate environment & also
helped me to improve my soft skills and business communication.
Achievements:
My evaluation regarding the products and services offered by various
organic food companies would help the organization- Near 2 Nature in
better understanding of their competitors in terms of the services
provided by them, presence of the organizations, industry segments
catered by the organizations, market share of different organizations etc.
PART ‘A’
COMPANY STUDY
INDUSTRY SNAPSHOT
The global demand for organic food products is growing at a very
rapid rate. Ever since the environmentalists raised their concern
regarding harmful effect of increasing use of chemicals in farming,
the consumers are getting conscious and selective about edible
products. This increasing awareness has caused shifts in
consumers’ tastes and preferences which have led to the
domestic as well as global rise in demand for organic products.
The organic food industry in the world is worth US $ 35 billion with
a growth rate of 15 percent with most of the growth concentrated
mainly in U.S.A, U.K. and Japan (Willer, 2004). To supplement
this demand, farmers have taken to organic farming for getting
price premiums which resulted in around 3.5 million hectare land
across the globe under organic farming .In India, the farmers
have followed the path for organic food production, but the share
of India in the world organic market is less than one percent. In
order to boost trade in Indian agricultural products and capture
significant share in global market, it is an imperative that India
focuses on organic products which give it competitive edge in
global market, namely organic cotton, spices, essential oils,
medicinal and aromatic plants and fresh fruits and vegetables.
Organic farming in irrigated and intensive farming areas holds
another kind of promise, a source of sustainable and value added
commercial farming.
An Overview of Current Organic food market in India
The organic farming is an old concept in India in terms of the
extensive farming carried out in the country. The organic food
market is worth USD 129.3 mn and shows huge potential for
growth in future. The increasing export market coupled with
government’s support has driven the market.
The most important reason for buying organic food was the
concern for the health of children, with over 66 percent parents
preferring organic food to non organic food. Though organic food
is priced over 25 percent more than conventional food in India,
many parents are willing to pay this higher premium due to the
perceived health benefits of organic food.
As with all great pioneers, there is more than one unique way of
describing the true genius of Vinod Goel .The corporate visionary,
the unmatched strategist, the proud patriot, the leader of men, the
architect of India’s organic food markets.
The fresh food from all kind of pesticides fertilizers & chemical
preservatives to gives you a healthy, longer & quality life.
CORPORATE OBJECTIVE
At Near2nature Company, we strongly believe that as life is
different at every stage, organic foods must offer health and brand
trust to organic foods. We are fully prepared and committed to
guide the consumers on organic foods through survey and people
awareness. It advised to competent the market and customers in
the best possible way.
CORPORATE MISSION
“To be an ethical and innovative global leader in providing
genuine organic products and solutions for conscious and healthy
living.”
OBJECTIVE
We at near 2 nature need to create awareness among the people
regarding the benefits of organic foods and their advantages over
the conventional foods we are eating nowadays.
To bring people back to pre green revolution era food that is our
basics, which justify our saying of “BACK TO BASICS”.
NEAR 2 NATURE PRODUCTS
Pulses
uradh whole
uradh chilka
uradh dhuli
moong whole
moong chilka
moong dhuli
chana dal
kabuli chana
arhar dal
pahdi moat
Lobiya
rajma red
kala chana
Spices
chilly powder
dhaniya powder
haldi powder
jeera whole
black peper
Elachi
meethi seed
meethi leaf
Laung
tej patta
Azwain
Pickle and Murabba
amla muaraaba
lemon sweet pickle
lemon salty pickle
mixed pickle
Sweetner's
Bura
brown sugar
rose squash
bhel squash
Flour's
whole wheat atta
sugand basmati rice
mustard oil
Daliya
Besan
ragi flour
ghee
sunflower oil
tea leaves
amla candy
COMPETITORS LIST
Address: D-144 Shankar Rd. Mkt. New Rajinder Nr. New Delhi-60
Value plus (J.p.chauhan)
INTRODUCTION
2. Sampling:
Finally, the information thus obtained from the survey was used to
discover the potential segment for generating new business for the
organization and thereby devise strategies to generate new business from
that potential segment.
QUESTIONNAIRE
Name: Mobile:
e-mail: Occupation:
Yes No
2. If YES, then what do you perceive/think about organic food?
Yes No
4. What types of organic food do you purchase? (You can tick more than
one)
0 to 6 Months Never
6. How did you first hear about organic foods?
Internet Friends
7. In your opinion, what are the most important motivations that will
persuade you to buy organic foods instead of non-organic foods?
Benefits
Packaging
Price
Taste/quality
Friends
High price
Low availability
Low trust
Poor appearance
9. How would you describe your overall opinion of organic food brands?
AGE GROUP
Above 50
15%
Between 21-50
85%
OCCUPATION
WORKING
HOUSE-WIFE 49%
51%
PART B: Information about Organic food
Characteristics of organic food as a product
Organic food as a product is the most important marketing-mix
variable. Before organic food producers enter the organic product
market, they should be prepared to correspond best to the wishes of
their consumers by the design, purpose and function. What organic
food consumers are most interested in are the following items:
production program, product quality, packaging material, packing,
product labeling, and price setting. This is closely related to the
product image that implies everything a consumer creates about the
product as an image, atmosphere or a feeling. Orientation towards
consumers intensifies problems regarding relevant factors in the
design of the production program as a means to satisfy consumers in
a demanding and competitive battle on the market and achieve goals
in that way.
• 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
• 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
• Place
– No standard store design. Layout customized for site
and product mix.
– Presentation
• Highly regarded food displays, cleanliness, wide
aisles
• 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
Industry Analysis of Organic food
Force
Forces Description strength
Bargaining power For the most part, buyer can switch to other
High
Buyers high quality products
STRENGTHS
Highest Quality Organic Foods Seller
Huge selection/variety
Free Home delivery
First Mover in organic products
Eco-Friendly
WEAKNESSES
Price – up to 75% higher
Locations – only in affluent areas
Advertising Budget very low (WOM approach)
Promotional Offers – no coupons
Certification
THREATS
Conventional Supermarkets
Bad Economy
Local Farmers Markets/Independent Retail Chains
PART ‘C’
CONCLUSION
And
RECOMMENDATIONS
RECOMMENDATIONS
• Catering
– Offer catering to local businesses & events
BIBLIOGRAPHY
Internet Sites:
www.google.com
www.economictimes.com
www.near2nature.com
www.thedailygreen.com
www.dmoz.org/Business/Food_and_Related.../Organic/
www.naturalnews.com