2.

0 Situation Analysis
“Organic” has now becomes the buzz word for living heathy and many articles, features and
studies has created the awareness among people about organic diet and holistic health.so,
People are becoming more aware of the health hazards posed by pesticides and harmful
chemical additives in food. As a result, people are seeking the organic food. The propensity of
consuming organic food is increased day by day. Besides, people are concerned about the
source, availability, feasibility of the organic food.

Analysing the current market demand for organic food, I introduce my organic shop “Food for
Thought”. Its marketing will be providing the highest quality of natural and organic products,
and creating market opportunity for those farmers who are starting organic farming.

Food for thought offers organic vegetables, honey, molasses made from dates, molasses made
from sugarcane, and varieties of rice-based products.

2.1 Market Summary

Food for thought possesses good information about the market and knows how to do great deal
with the customers. This information will be leverage to better understand who is served, what
is their specific needs are and how Food for thought can better communicate with them.

Target Markets

 Cognizant about Healthy lifestyle: people are now acquainted with different health
related issues which are occurring for the excessive use of artificial chemicals,
pesticides, hormone and antibiotics in food. So, people prone towards organic food
which are cultivated by using different kinds of organic livestock and without using any
kinds of hormone or antibiotic.
 Conscious about environment: soil is composed of 17 nutrients and 5 percent of organic
materials. Excessive use of chemical fertilizers causes depletion of natural elements in
soil.
Besides, use of pesticides and herbicides kills many microbes and insects as well as
animals like dragonflies, frog which eats different harmful pests and earthworms and
these chemicals get into food chain and causes serious damage to human being. By
understanding the consequences of using pesticides and chemicals, people who are
concerned about environment are diverted towards organic food.

1 
 
  Income level is high and live in Dhaka city: organic product is quite expensive
comparatively from inorganic product. So, consumers who have great source of income
and also concern about health as well as live in Dhaka city, Food for thought are the
right place for these types of people

2.1.1 Market Demographics

The profile for the Food for thought consists of following population, education and level of
income.

 Population: The population growth of Bangladesh is explosive. So, it is a great

opportunity to capture and expand the market by convincing the future generation about
advantage of buying organic foods. Food for thought has strategy to motivate them to
purchase organic food and cover the widest range of potential market.
 Education: Educated people have great influence on other people, they can inspire
people about the effectiveness of consuming and buying organic food. Food for
Thought will use this factor to dominant the market.
 Level of income: As organic produce is a little bit expensive so, Food for Thought
focuses on the affluent consumers who are not price concerned, who want quality
products.

2.1.2 Market Needs

Food for Thought will provide the community a wide range of organic products. It seeks to
fulfil the following benefits that are important to its customers.

 Quality: The customers work hard for their and do not want to spend it on buying
contaminated and adulterated food. They want to consume the products that is worthy
to consume.
 Authenticity: now-a-days many shops claim that they are providing authentic organic
food. To prove the authenticity is very important in this circumstance so, Food for
Thought decides to it will highly involve their consumer so that they get the assurance
and faith on the products, they are bought.
 Customer service: exemplary service is required to build a sustainable business that has
a loyal customer base and Food for thought will create this among customers.

2 
 
2.1.3. Market Trends

Food for Thought will distinguish itself by providing a wide array of organic products with
satisfactory customer service. consumer can find many other organic shops easily in the market
so, Food for thought will try for high involvement of their customer. By arranging fair where
consumer can meet with the producers, uploading pictures on websites or social networking
site or doing live which is very popular stream for today’s people, while collecting products.

Another trend is group awareness. People are now making groups who have same opinion and
interest in some common things. Food for Thought will concentrate on these groups and will
direct marketing towards them who are seeking organic products, conscious about healthy
lifestyle.

The market trends are showing continued growth in all directions of organic food.

2.1.4. Market Growth

The market of organic products is increasing day by day in spite of being quite expensive.
Because people experienced the gruesomeness of inorganic products. Different disease such as
cancer, pulmonary disease, skin disease, lung disorder etc. are pushing human towards death
and the main reason is excessive use of chemicals and adulteries in foods. So, people are now
discovering and, in many cases, rediscovering the health benefits of consuming organic foods.

2.2 SWOT Analysis

The following SWOT analysis capturers the key strengths and weakness within the company
and describes the opportunities and threats facing Food for thought.

2.2.1. Strength

 Good quality and standard of products

 High demand for organic products
 Certified product by Bangladesh Council of Scientific and Industrial Research
 Limited competition
 Ability to sell products in online and offline both.

2.2.2 Weakness

 Highly priced products

 No subsidies for organic farming

3 
 
  Competitors can imitate the product quickly
 Limited network of suppliers
 High transportation cost

2.2.3 Opportunity

 Continued expansion for online sale

 Competitive pricing
 Affiliated with related vendor

2.2.4 Threat

 Low-cost competition
 Rise of GMO products
 Global warming

2.3 Competition

Food for Thought is forming its own market. Although there are few companies that are also
selling organic products. But Food for Thought is only organic shop which is fully designed
for and by authentic organic products. The few competitors’ offer organic products but they
don’t make sure the authenticity of organic product. On the other hand, Food for thought team
monitor and inspect the product in the time of cultivating to ensure that farmers use organic
livestock and fertilizer, so that Food for Thought can give assurance that their product is
hundred percent authentic.

2.4 Product Offering

Food for Thought offers several products:

 The first product that it offers are organic vegetables. The vegetables are collected from
keraniganj, here are some local people who do farming on their own land. To think
about the distance the place is selected as Food for Thought targeted the consumer who
live in Dhaka city.
 The second product is honey, molasses made from dates. Food for Thought team collect
honey from Sundarban and the molasses from Jessore. Honey has great demand in
market, specially who are avoid sugar they use it as a substitute of sugar.
 The third product is various rice and rice-based products, such as red rice, aushed puffed
rice etc. Food for Thought has plan to sell other products also.

4 
 
2.5 Keys to Success

The key to success is designing and producing products that meet market demand. In addition,
Food for Thought will ensure total customer satisfaction. If these keys to success are achieved,
it will become a profitable, sustainable company.

2.6 Critical Issues

As a start-up business, Food for Thought is still in the early stage. The critical issues are for
food for thought to:

 Establish itself as the premier organic products company.

 Pursue controlled growth that dictates that payroll expense will never exceed the
revenue base. This will help protect against recessions.
 Constantly monitor customer satisfaction and the quality, ensuring that the growth
strategy will never compromise service and satisfaction levels.

3.0 Marketing Strategy

The key to the marketing strategy is focusing on the consumer who are conscious about healthy
lifestyle, environment and affluent. Food for Thought want to cover the niche market of organic
products where consumer is seeking for authentic organic product. As, Food for Thought team
collect products from various places of the country and it inspects, monitors the products from
the time of producing, so it adds higher operational cost and the product is quite expensive.
For this reason, Food for thought targeted people whose income level is high. But, Food for
Thought has plan to start their own farm that will reduce the operational and transportation
cost, so that it can servers all level of customer.

3.1 Mission

Food for Thought’s mission is to provide the customer products which are rich in quality and
help them to lead a healthy lifestyle. “salubrious lifestyle and enhance vitality of all individual
by providing and supplying highest quality of natural and organic products with excellence
customer service.”

3.2 Marketing Objectives

 Maintain the quality and standard.

 Achieve a steady increase in product development
 Decrease operational and transportation cost

5 
 
3.3 Financial Objectives

 Increase the profit margin by 1 percent through efficiency and economy of scale gain.
 Maintain a significant research and development budget for organic seeds preservation
and organic fertilizers.
 Achieve a double to triple digit growth rate for the first three years.

3.4 Target Markets

The organic food market is growing day by day and the niche market is created. Food for
thought’s aim is to expand its market by promoting and serving quality product. Food for
Thought are targeting the people are conscious about healthy lifestyle, environment and higher
income. In addition, it targets that consumer who are lived in Dhaka city specially in
Dhanmondi, Mohammadpur, Rayer Bazar areas as it collects vegetables from Keraniganj.
These groups are growing fastest and gearing themselves towards healthy lifestyle.

3.5 Positioning

Food for Thought will position itself as the best source for healthiest, natural and organic foods
among its competitors and will be the first organic shop where all products will be certified by
Bangladesh Council of Scientific and Industrial Research. Food for Thought will differentiate
itself by providing stringent high-quality products and its name will influence consumer that
what they are consuming, they should think about it. It procures its product from local farmers
and maintain the standard from the time of cultivation by strict inspection.

4.0 Market Tactics

The single objective of marketing program is to position. Food for Thought serves the domestic
market but is has plan to expand internationally by sending organic seeds, fertilizers. The
marketing program will first try to meet up consumer demand for organic products and then
develop the customer base. Specifically, the marketing programme of Food for Thought is
composed of the following approaches to product, pricing, distribution and promotion.

4.1 Product

Food for Thought now offers a limited number of organic products such as vegetables, honey,
molasses from dates, rice, rice-based products. It will try to serve some exotic organic products
which are not available to others. The main principle of Food for Thought is to offer high

6 
 
quality of natural and organic products. Its products are free from artificial chemicals,
fertilizers, hormones and antibiotics.

4.2 Pricing

The product of Food for Thought is premium product and expensive. As the team of Food for
Thought inspect, monitor and check the products while farming so, it adds extra operational
cost. In addition, the fertilizer and seeds are using in producing the food that are certified by
Bangladesh Council of Scientific and Industrial Research, which also add some cost. That’s
why the price is quite high, but it makes sure that the product is hundred percent organic.

4.3 Distribution

Food for Thoughts will sell its product both in store and online, but majority of products will
be in store. When consumer will come to the store it helps Food for Thought to build and
maintain a close relationship with customers. The stores will be located in affluent residential
area where live most the people whose income are well above and well-educated.

Furthermore, Food for Thought will always be updating their customer about their product and
also aware them about the unavailability of the product and storage. Such as on Thursday it
announces about some new products and also the amount, so that consumer comes to store or
order online to get the fresh products.

4.4 Promotion

Food for Thought will promote its product in print and visual media, internet. In print, it will
publish advertisements on newspaper, leaflet etc. and it will give ads on social networking
sites. In addition, it will be arranging various fair where consumer can interact with the
producers. It will help to create brand awareness among consumer and the word of mouth will
attract another customer alongside it will give confident the farmers that they get great platform
and their effort is not unavailing and the consumer’s appreciation will inspire them. Moreover,
Food for Thought will always ensure that the shopping experience entices the customer to come
back to there and do shopping from here physically or virtually.

4.5 Marketing Research

Since Food for Thought is located in affluent where people are well-educated and have well-
income so, it is a great advantage for Food for Thoughts. because it will be easy to convince

7 
 
the people and they will not bother much about the price. It can easily expand its business by
serving quality product.

Not only the area beside the store, its target is to cover all the area where people are concerned
about healthy lifestyle and have demand for organic food and it will cover it through online
also.

5.0 Financial

This section will offer the financial overview of Food for Thought related to marketing
activities. Food for Thought will address sales forecast and expense forecast and indicate how
these activities link to the marketing strategy.

5.1 Sales Forecast

Food for Thought feels that the sales forecast figures are conservative. It will steadily increase
sales as the advertising budget allow. Although the potential customers are divided into
separate groups, the sales forecast groups customers into two categories: health conscious and
income level is high. Reducing the number of categories allows the reader to quickly discern
information, making the chart more functional.

Table 1: Monthly Sales Forecast

Sales 2019 2020
Health Conscious 70,000 /- 1,05,000 /-
Higher income 1,00,000 /- 1,25,000/-
Total sales 1,70,000/- 2,30,000/-
Direct cost of sales
Health Conscious 25,000 /- 45,000/-
Higher income 17,000 /- 10,000/-
Subtotal cost of sales 42,000 /- 55,000/-

5.2 Expense Forecast

The expense forecast will be used as a tool to keep the department on target and provide
indicators when corrections and modifications are needed for the proper implementation of the
market plan.

8 
 
 Table 2: Milestones
Milestones Start date End date Budget Department
Marketing plan completion 1/1/19 2/1/19 0 Marketing
Website Completion 1/1/19 3/15/19 40,000/- Marketing
Advertising Campaign #1 1/1/19 6/30/19 60,500/- Marketing
Advertising Campaign #2 3/1/19 12/30/19 50,500/- Marketing
Total 1,50,000/-

Table 3: Marketing Expense Budget

2019 2020
Web Site 25,000 /- 10,000/-
Advertisements 60,000/- 40,000/-
Printed Materials 15,000/- 10,000/-
Total Sales and Marketing 1,00,000/- 60,000/-

6.0 Control

The purpose of Food for Thought’s marketing plan is to serve as guide for the business. The
following area will be monitored to gauge performance:

 Revenue: monthly and annual

 Expenses: monthly and annual
 Customer Satisfaction
 New Product development

6.1 Implementation

The milestone identifies the key marketing programs (table 2). It is important to accomplish
each one on time and on budget (table 3)

6.2 contingency plan

Difficulties and risks

 Problems generating visibility, a function of being an internet base start up organization

9 
 
  An entry into the market by an already established market competitors.

Worst case risks

 The suppliers deny to supply products.

10 
 
 11