Sip Presentation on

Consumer behavior towards Organic food

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BY: ASHISH CHAUHAN

PG20095343
 INDUSTRY BACKGROUND
• Organic food industry is an opportunity in India.
• Organic food industry is growing at 30% annually.
• It contributes 18%-20% in annual GDP.
• India has 4% market share of organic foods.
• The global organic food market grew by 9.7% in 2009
to reach a value of $60 billion.
• In 2014, the global organic food market is forecast to
have a value of $96.5 billion, an increase of 60.7%
since 2009.
• The fruit and vegetables segment generated 31.5% of
the global organic food market's overall revenues.
 COMPANY PROFILE
• A part of B.S. Associates.
• FOUNDER- Mr. Vinod Goel
• Near2Nature means “Close To Nature”.
• Believes in quality, purity & eco-friendly organic product.
• To bring people “BACK TO BASICS”.

OBJECTIVE
• Near 2 nature has been established with the essence of
purity and belief that the right of every individual to EAT
HEALTHY and LIVE HEALTHY is accomplished.
 COMPANY PROFILE Contd…
CORPORATE OBJECTIVE
“It is our aim to become one of the top organic
food companies in India and to become a
cornerstone of B.S. associates In India.”

CORPORATE MISSION
“To be an ethical and innovative global leader in
providing genuine organic products and
solutions for conscious and healthy living.”
 Consumer Buying Behavior
• Study of consumer preferences
• Based on their past experience
• Related to the segmentation, target and
positioning of the customer
• Consumer plays 3 distinct role- user, payer and
buyer.
• It concern with action, needs and satisfaction.
 RESEARCH OBJECTIVE

• To study the consumer buying behaviour for

organic foods in the Indian domestic market.

• To analyze the potential for organic products in

the Indian domestic market.

• To study the marketing mix of organic foods in

India.
 RESEARCH METHODOLOGY
• Study the consumer behavior for the organic foods and their
feedbacks through the market survey-

DATA SOURCE- Primary & Secondary data

RESEARCH APPROACH- Survey Approach

RESEARCH METHODOLOGY- Descriptive method

RESEARCH INSTRUMENT- Questionnaire

 SAMPLING PLAN
• POPULATION DEFINITION- Mostly House-wives &
Working Ladies

• SAMPLING METHOD- Random Sampling Method

• SAMPLE SIZE- 100

• PRIMARY DATA- Questionnaire Survey

QUESTIONNAIRE USED
FINDINGS & ANALYSIS
 AGE GROUP

Above 50
15%

Between 21-50
85%

OCCUPATION

HOUSE-WIFE WORKING
51% 49%
PART B: Information about Organic food
 Porter’s Five Forces
Substit Suppli
utes ers

Competiti
Buyers ve
Rivalry

Heating Up Potential
Entrants
Cool To Warm
 Porter’s 5 Forces – Near2Nature Market
Forces Description Strength of Force

Threat of Substitute Easy switch to the conventional retailers. Specialty

High
Products stores built right in to their strategies.

Bargaining Power of Largest food processors acquiring organic food

Medium to High
Suppliers producers. Only 1% of farmland used for organics.

Bargaining Power of For the most part, buyer can switch to other high
High
Buyers quality products

Intensity of Degree of commitment by the conventional retailers will

High
Competition determine the intensity.

Threat of New Entrants are already there. Their intensity of their

Low – Medium
Entrants pursuit of the natural/organic market is the question.
Marketing mix
 Marketing Mix
• 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
 Marketing Mix
• 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
 Marketing Mix
• Place
– No standard store design. Layout customized for
site and product mix.

– Presentation
• Highly regarded food displays, cleanliness, wide aisles
 Marketing Mix
• 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
 SWOT Analysis
Near2Nature Foods
STRENGTHS WEAKNESSES
Highest Quality Organic Foods Seller Price – up to 75% higher
Huge selection/variety Locations – only in affluent areas
Free Home delivery Advertising Budget very low (WOM approach)
First Mover in organic products Promotional Offers – no coupons
Eco-Friendly Certification

OPPORTUNITIES THREATS
Expand private label selection – lower price for Conventional Supermarkets
customers
Bad Economy
Advertise more, create coupons and promotions to get
people in the store Local Farmers’ Markets/Independent Retail
Hype right now is to eat healthier and protect the Chains
environment
Rewards program – frequent buyer cards
Back to Basics – buy more local products that people
will pay more for
What are the future challenges for
Near2Nature?
 Future Challenges
• Pricing – being able to compete against the
conventional grocery chains

• Getting more people in the store to buy

organic food

• Convince new customers to shop at

Near2Nature rather than more convenient
stores
 LIMITATIONS
• The sample size for the analysis of the satisfaction level of
the customers and testing the perceptions of the people
towards organic food was restricted to 100 due to time
factor constraint involved.

• Support from customers.

• Sometimes people may not provide us with the correct

information.

• Restricted to one area i.e. Delhi and NCR.

 CONCLUSION
• Focus on consumer preferences.
• Create awareness about the organic foods and
their availability.
• Advertisement and promotion of the
products.
• Maintain a trust & brand name.
Recommendations for
Near2Nature
 Recommendations
• Lower Price to Compete with Grocery Stores
– Add a customer rewards program for frequent
buyers
– Coupons to customers

• Catering
– Offer catering to local businesses & events

• Expand Private Label Selection

– Lowers manufacturing costs, could offer discounts to
customer for using Near2Nature brand products
 Reference
• Mr. Abhishek Singla
Manager (Operations)
Near 2 Nature Pvt. Ltd.
Sec-21, Rohini, New Delhi