An Introspection of Organic Food Value Chain

Prepared By : Monika Bishnoi [FMS-IRM] Shweta Singhal [FMS-IRM]

PRESENTATION FLOW

Company Profile, Supply Chain, Project Brief

Objectives, Research Methodology

Business Processes

Data Analysis

Key Findings, Recommendations, SWOT Analysis

ABOUT COMPANY Morarka Foundation: established in August 1993 by

GDC Ltd. Headed by Sh. Kamal M. Morarka Morarka Organic Foods Pvt. Ltd. was set up in 2004 to

market the Organic produce of farmers.

PRODUCT CATEGORIES

BRANDS

Down to Earth

Back to Basics

Bulk-FieldCrops-Farm

Produce

HorticultureCrops &

Controlled Climate Produce

Animal Husbandry Products

& Livestock

Processed & Specialty Food

Products

Non-FoodCrops - Products

Supply Chain of Company

Production of Raw Material by

Farmers

Purchase of Raw Material

Storage of Raw Material

Processing Packaging

Sales

BRIEF ABOUT PROJECT

Study of the complete Value Chain of Organic food from three perspectives:

Company Perspective:

Consumer Perspective:

Farmer Perspective:

STUDY OBJECTIVES

To assess the demand of organic foods in Jaipur.

To study the sales model of the company and seek alternate channels as a medium of promotion and awareness of organic foods.

To assess the satisfaction level of Morarka farmers and to inquire into the problems faced by them, if any.

RESEARCH METHODOLOGYSECONDARY RESEARCH- To understand the present scenario of organic food and Pros and Cons there on.

Type of Sampling:CLUSTER SAMPLINGFollowed by RANDOM SAMPLING

POPULATION

Farmers

Consumers Potential Customers

Channel Analysis

Retailers

Target Segment Research Tools Sample Size

Company Employees Depth Interviews, e mails

-

Farmers [Organic/Conventional]

Depth Interviews, Telephonic

40

Hotels Depth Interviews 20

Bakeries/Restaurants Depth Interviews 15

Retailers Questionnaire Filling 25

Current Customers Depth Interviews, e mails

20

Potential Customers Questionnaire Filling 50

Hospitals Schedule Filling 4

Primary Research

BUSINESS PROCESSESValue Addition is done in all the Business Processes.

Morarka has following major processes:• Procurement• Processing• Quality Control • Sales

Procurement

Quality Testing

Physical Test

Chemical Test

Microbiological

Test

RESIDUAL TESTING is the most important Test in the Organic Food Business.

Processing and Sales

Current Customer Analysis <

1 y

r.

> 1

yr.

> 2

yr.

Fri

end

Rela

tive

Em

plo

yee

Yes

No

TIME SOURCE OF INFOR-MATION

SATISFACTION WITH

MORARKA

12%

50%

38% 37%

25%

38%

75%

25%

Potential Customer Analysis

Yes56%

No44%

Awareness

Magazines/pamphlets

21%

Tv/Radio2%

Dieticians/ doctors14%

Friends/Neighbour

11%

Internet18%

Any other34%

Source of informa-tion of organic food

Supermarkets19%

Departmentalstores29%

Local grocery45%

all7%

Place of purchase of Grocery items

Lady of the house48%

Husband5%

Both26%

Parents9%

Servant/Driver12%

Buyer of food items in family

Cntd..

Vegetables and Fruits

37%

Cereals 13%

Pulses11%

Beans6%

Spices 8%

Processed food3%

All22%

Preferred type of organic food

Cntd..

Taste factor23%

Health factor50%

Quality27%

Motivational Factors

Cntd..

5-10%39%

10-15%19%

15-20%6%

Cant say36%

Premium Amount over Conventional

Channel AnalysisYes

No

Yes

No

Hotels Bakery/Restaurant

Interest to Introduce Organic Menu

84%

16%

87%

13%

Yes No Yes NoHotels Bakery/

RestaurantAwareness about Morarka

58%42% 37%

63%

Yes

No

Yes

No

Hotels Bakery/Restaurant

Willingness to use Morarka Products

68%

32%62%

38%

Com

peti

tive C

ost

Auth

enti

city

Tim

ely

Delivery

Quality

Can't

Say

Com

peti

tive C

ost

Auth

enti

city

Tim

ely

Delivery

Quality

Can't

Say

Hotels Bakery/RestaurantExpectations From Morarka

20% 20%15%

25% 20% 15%23%

0%

54%

8%

Cntd..

Retailer Analysis

0-5%36%

5-10%50%

10-15%14%

Benefit On Selling Conventional Products

lack of supply50%

less variety

21%

all29%

Challenges faced while Getting Organic

Products

high price35%

unawareness41%

not in-terested

6%

low dis-count struc-

ture6%

all12%

Challenges faced while selling Organic Food

Products

YES71%

NO29%

Interest to keep Morarka Food

Products

Cntd..

Organic Farmer AnalysisCase Study of one of the successful

Organic Farmers:

Name of the Farmer: Om Prakash Sharma Occupation: Farming. Also working as Krishak Scientist Village: Kolida District: Sikar Land: 35 Bheega Crops grown: RABI SEASON-Millet, Sprouts, Sorghum, Green Gram

KHARIF SEASON-Wheat, Barley, Chick Pea, Fenugreek

Yield of Crops: Yield of Wheat: 4 Quintal/Bheega

Problems Faced when Shifted to Organic Farming

Present Scenario

Customers

Price

Marketing

Innovations being done

Cntd..

Conventional Farmer Analysis Mind Set of Conventional Farmers

Problems Faced in conventional Farming

Problems in Organic Farming-Their Perspective

Interest Level to Conduct Organic Farming

Procurement ProspectsLack of proper Supply Demand Analysis

Customer Analysis:•Three types of Channels for Sales: HORECA, DTC, FRANCHISE/DISTRIBUTORS/RETAILERS•Poor awareness of Organic Food as well as of the company.•Customers are price sensitive.•High interest in trying Organic food.

Analysis of Internal Environment•Lack of decentralization.•No sales Force.•Poor marketing of the products.

1. Proper training of the Field officers

2. Proper analysis of market demand.

•Price and Promotion aspect of Marketing are to be focused.

•Sales force is highly required.•Promotional and communication strategies need to be worked on.

VALUE

CHAIN

ANALYSIS

Implications for Morarka

KEY FINDINGS

Marketing Mix

PRODUCT•MORARKA means Organic and is promoted as CHEMICAL FREE. •Procurement is done at various places•Packaging of the product is good•Quality testing of the product is done at each point of the value chain.

PRICE•ORGANIC food market is a price sensitive market.

PROMOTION

•Buying Behavior of the customers is mainly influenced by the Lady of the house. So they are to be targeted.•Majorly mouth publicity is there.

PLACE•Selling of the products is done BY TWO CHANNELS•Availability of the product is not proper in the market. 

RECOMMENDATIONSINTERNAL ENVIRONMENT

Stream lining of Company Processes. Training Module for the Field Officers. Separate Distribution Manager.

DISTRIBUTION NETWORK: Set up retail shop in the city. Even a small restaurant can be opened. Moreover, a small counter could be taken.

Sales TeamBusiness

Development Team

COMMUNICATION STRATEGY: Knowledge about Organic Food is the base of this

Business. BTL activities are required here.

PACKAGING: Packing has to be changed in a way to increase clarity and

visibility of product name and price. Combo packs could be introduced in which we can

have all the ingredients put together to make that food.

GO AHEAD.. GO ORGANIC..

Cntd..

PROMOTIONAL STRATEGY Canopies at various malls, Joggers Parks, schools, Fitness

Centres. Occasions like exhibitions and Celebrations Arranging of Organic Day/Organic Fests quarterly could

be done. Print media, Internet Posters, Product Detailers could be used at various

clinics and Hospitals. Promotion could be done at supermarkets, Kirana stores I USE ORGANIC-MORARKA products banners.

Cntd..

SWOT ANALYSIS

>Cost of Production

>Products are not made readily available in the city

>Demand assessment is not proper

>Weak Marketing.

ST

RE

NG

TH

WE

AK

NE

SS

Cntd.. OP

PO

RT

UN

ITY

TH

RE

AT

THANK

YOU