REPORT
On
NEAR 2 NATURE
TO STUDY THE CONSUMER BUYING
BEHAVIOUR AND MARKETING MIX OF
ORGANIC FOOD IN
DOMESTIC MARKET
Submitted by
Ashish Kumar Singh Chauhan
Roll No: PG20095343
Batch: 2009-2011
DECLARATION FORM
I hereby declare that the Project work entitled,
TO STUDY CONSUMER BUYING BEHAVIOUR AND
MARKETING MIX OF ORGANIC FOOD IN DOMESTIC
MARKET submitted by me for the partial fulfillment of the Post
Graduate Program (PGP) to IILM Institute for Higher
Education, is my own original work and has not been submitted
earlier either to IILM or to any other Institution for the fulfilment of
the requirement for any course of study. I also declare that no
chapter of this manuscript in whole or in part is lifted and
incorporated in this report from any earlier / other work done by
me or others.
Name of Student:
ACKNOWLEDGEMENT
This report bears imprint of many people who have directly or
indirectly made a significant contribution towards my project. I
thank for kindness shown and contribution made by various
people in this endeavor.
I am very pleased to acknowledge the help and guidance which I
received from the members of Near 2 Nature.
I would like to thank my company mentor, Mr. Abhishek
Singla, Operations Manager to grant me an opportunity to
undertake my Management Research Project with this company.
I owe my sincere gratitude to Ms.Monica Mor , my faculty
guide, with whose support this project could not have been
possible for me.
I am also grateful to the respondents who filled my
questionnaires and helped me in gaining an insight of Near 2
Nature as a brand in the Indian market. Their enthusiastic
feedback has given my project a direction.
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
At IILM Business School, the PGP programme has been designed
keeping in mind the requirement of a company in the World at large. We,
as students of IILM, are required to undergo two months company
project study after completing the fourth trimester.
The objective of the training module is to help the students to understand
the business environment well and equip themselves with the work
culture of the companies in the present era.
I, Ashish Kumar Singh Chauhan, take the opportunity to introduce the
reader the outlines of my Management Research Project. I have
completed my Summer Internship from Near 2 Nature, Delhi.
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:
To analyze the potential for organic products in the Indian domestic
market.
Reporting:
I reported to Operations Manager (Mr. Abhishek Singla) who kept
guiding me during the SIP as and when required.
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 customers 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.
HISTORICAL PROSPECTIVE
In 1939, Lord North borne coined the term organic farming in
his book Look to the Land (1940), out of his conception of
"the farm as organism.
This is different from the scientific use of the term "organic,"
to refer to a class of molecules that contain carbon,
especially those involved in the chemistry of life.
COMPANY PROFILE
FOUNDER- Mr. Vinod Goel
Few men in history made as dramatic a contribution to their
countrys economic fortunes as did the founder of B.S. associates
Mr. Vinod Goel. Fewer still have left behind a legacy that is more
enduring and timeless.
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 Indias 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.
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
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
Fabindia Overseas Ltd.
Address: New Delhi, Gurgaon
Sapthsathi organic agriculture project (Surendra Kumar Tiwari)
Manufacturers of Organic Food Grains
Address: 414, 5th Floor Onam Plaza A.b. Road Old Palasiya, Indore,
Madhya Pradesh
PART B
MARKET RESEARCH
Analysis and Findings
INTRODUCTION
Organic agriculture offers trade opportunities for farmers in the
developing and developed countries. This market of organic
products is expected to grow globally in the coming years and
high growth rates over the medium term (from 10-15 to 25-30%)
are expected.
The organic market expansion makes it possible for farmers to
reap the benefits of a trade with relatively high price premiums.
RESEARCH METHODOLOGY
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:
Age:
Below
21yrs-50yrs
50yrs above
20yrs
Monthly Household
Income:
Up to Rs.20,000
Rs.20,001Rs.50,000
Yes
No
Rs.50,000
above
Pesticides/Chemical free
No Adulteration
More Nutritious
Eco-Friendly
Costly
No
4. What types of organic food do you purchase? (You can tick more than
one)
Produce
Processed foods (cereal, etc.)
Meats, Eggs, poultry, seafood
Vegetables
1 to 3 years
6 to 12
Never
Advertisement
Newspaper
Internet
Magazine
Friends
7. In your opinion, what are the most important motivations that will
persuade you to buy organic foods instead of non-organic foods?
1(Most Important)
5(Leastimportant)
Benefits
Packaging
Price
Taste/quality
Friends
Concern about health
8. Primary reasons you do not purchase organic foods.
1(Most important)
4 5(Less importat)
High price
Taste is not good
Low availability
Low trust
Poor appearance
9. How would you describe your overall opinion of organic food brands ?
Very favourable
Somewhat favourable
Somewhat Unfavourable
Neutral
Very Unfavourable
Probably
Probably not
Definitely not
Not sure
AGE GROUP
OCCUPATION
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
Forces
Description
Force
strength
Threat of
Substitute
products
Bargaining Power
of Suppliers
Bargaining power
Buyers
Intensity of
Competition
Threat of New
Entrants
SWOT ANALYSIS
Near2Nature Foods
STRENGTHS
WEAKNESSES
OPPORTUNITIES
Expand private label selection lower price for customers
Advertise more, create coupons and promotions to get
people in the store
Hype right now is to eat healthier and protect the
environment
Rewards program frequent buyer cards
THREATS
Conventional Supermarkets
Bad Economy
Local Farmers Markets/Independent Retail Chains
Some of the major threats are really dangerous. The awareness
about pesticide residues is to be considered as strength.
However, a bigger threat is that all kind of products are offered
under declarations like without pesticides, eco-friendly or even
organic.
PART C
CONCLUSION
And
RECOMMENDATIONS
RECOMMENDATIONS
CONCLUSION
PART D
BIBLIOGRAPHY
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