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
Top Related