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Arvind ltd@ organic staple business mts 01 presentation

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  • 1. Arvind Company LtdAkola, Maharashtra
    MTS -1
    Project title
    Market Research for Organic Staple Business in Domestic and Global for Arvind ltd.
    Presented by:
    Anjaney Kumar(10201006)
    Sunil Kumar(10201055)
    1
  • 2. Organization Overviews
    • Arvind Ltd.wasestablished in 1931,company of Lalbhai Group
    • 3. It is India's largest Denim manufacturer apart from being world’s fourth-largest producer and exporter of Denim .
    • 4. Today it not only retails its own brands like Flying Machine, Newport and Excalibur but also licensed international brands like Arrow, Lee, Wrangler and Tommy Hilfiger, through its nationwide retail network.
    • 5. Arvind also runs a value retail chain, Mega mart, which stocks company brands.
    • 6. Recently it has launched BCI and Organic Staple food projects in Akola district. Arvind is working closely with the farmers of the Vidarbha region in Akola to grow organic cotton and staple food like Moong, Pigeon pea, Black gram, Soybean, sunflower, Sorghum, Ajwain etc
    • 7. ORGANOGRAM : ARVIND ORGANIC LTD.
    Organogram final.docx
    2
  • 8. O
    Objective of the Study:
    • Estimation of production potential of organic staple food in Akola district of Maharashtra under ARVIND LTD.
    • 9. Current scenario of organic staple business in domestic and global markets.
    • 10. Strategy formulation for this business
    Significance of the study:
    The significance of the study is to find the suitable market for organic food and to make strategic formulation for the business of organic food so that marketing of the organic food can run in a sustainable manner and producer can get better return through the business
    3
  • 11. Methodology
    Methodology
    Phase 2
    Objective 2
    Phase 4
    Phase 1
    Objective 1
    Phase 3
    Objective 3
    Secondary data
    • Internet
    • 12. Personal interviews (questionnaire, convenience sampling)
    • 13. Focused group discussions
    • 14. Draft writing
    • 15. Report writing
    • 16. Data interpretation
    • 17. Strategy formulation
    4
  • 18. Objective :01
    Total area of organic staple food production under ARVIND organic project.
    Sources: field survey
    5
  • 19. Seasonality of Organic Crop
    6
  • 20. Center wise SHGs & farmers
    Classification of farmers
    ARVIND ORGANIC PROJECT
    EXTERNAL
    CERTIFICATE
    (CUC)
    EXTENSION SERVICE
    INTERNAL MONITORING
    FARMERS
    FARMERS
    FARMERS
    Source: field survey
    Organic (ICS) Structure & Certification
    All 3538 farmers have been in organic status
    • field survey ,primary data collection.xlsx
    7
  • 21. Objective 02 Domestic and Global Scenario Domestic
    Demand of organic food in India
    8
    Source: APEDA
  • 22. Global Scenario
    Source: IFOAM
    9
  • 23. Conti…
    Distribution of organic land world wide(2009)*
    Development of organic land from 1999-2009(M .Hac.) *
    World Market for Organic Foods: 2001 – 2011 US $ mln
    Source *: FiBL
    Source: USDA
    10
  • 24. USA
    EU countries
    The United States organic food market grew by 15% in 2010 to reach a value of $28,513.1 million . In 2015, the United States organic food market is forecast to have a value of $ 42,531.8 million, an increase of 49.2% since 2010
    The European organic food market grew by 9.9% in 2010 to reach a value of $25,040.3 million. In 2015, the European organic food market is forecast to have a value of $36,382 million, an increase of 45.3% since 2010.
    11
  • 25. Objective :3 Marketing Strategy
    Value chain
    Harvesting
    Selling at farm
    Procuring /collecting
    Storing
    Packaging
    Storing in warehouse
    Cleaning ,Grading and Storing
    Stretching /Labeling
    Domestic :
    Distributor /wholesaler Organic Retail outlet /Mall
    Domestic
    Selling
    Global
    Global :
    Exporter/Export
    12
  • 26. Marketing StrategyChannel
    Producer
    Procurement Center
    Processing
    Warehouse
    Export
    Exporter
    Distributor/Supplier
    Organic retail/mall
    Domestic
    Global
    13
  • 27. 4ps Model For Marketing Strategy
    PRODUCT STRATEGY
    PRICE STRATEGY
    Offering Vast range of organic food products with high qualities .
    Purely organic certified under internal inspection with control union certification (NETHARLAND).
    .The quality control systems are such that the products are checked and rechecked right from the field, grading and packing and during shipment, which makes it possible to meet the high quality standards of Europe and other developed nations
    Producer: small holder associated with SHGs
    Country of origin : India
    Packaging: 50 kg wrapped in jute bag, labeled with private organic logo.
    provision for Cost plus price: total cost from farm to the market plus 10%profit margin for export market, and for domestic business we work through market penetration by offering minimum price of the product for long term business growth .and also for market sustainability.
    Competitive price at highest quality .
    Price differentiation discount based on volumes,rediness to inter long term partnership.
    14
  • 28. CONTI….
    PLACE
    PROMOTION
    Direct shipping to the EUs and USA countries to the wholesaler & distributor .
    Or via exporter
    At Domestic level business, Small as well as big volume directly sold to the distributor ,organic retail outlet and mall .
    Personal selling :getting in contact with potentially interested final distributor /wholesaler
    Participation in organic and fair-trade fair
    Inviting potential client to the field visit
    Promotional material(pamphlet) for clients and consumer
    After sales follow-up client satisfaction and distributor satisfaction
    For domestic level promotion we will use electronic media and print media.
    We also promote mouth to mouth promotion by offering best quality of products at low price.
    15
  • 29.
    • Export procedure
    EXPORT.docx
    • Cost analysis of organic staple for Domestic and Global
    costing final.xlsx
    16
  • 30. SWOT ANALYSIS OF ORGANIC STAPLE BUSINESS
    17
  • 31. CONCLUSION
    • Organic project is as an important livelihood option for small, resource-poor farmers with low-input costs and quality food production through
    sustainable environment
    Fair trade practices
    Social justice
    • Organic project is certified by CUC, Netherlands equivalent to standard of EUs countries having 54% market share.
    • 32. Lack of awareness among people about organic food at domestic level.
    • 33. Favorable government vision
    • 34. Lack of universal certifying standard are the major problems for business at global level
    • 35. Organic demand in India in year 2010 8,423.843 US $ million forecasted to reach 12,192.130 US $ million in year 2014.
    • 36. The European organic food market grew by 9.9% in 2010 to reach a value of $25,040.3 million. In 2015, the European organic food market is forecast to have a value of $36,382 million, an increase of 45.3% since 2010.
    • 37. The United States organic food market grew by 15% in 2010 to reach a value of $28,513.1 million . In 2015, the United States organic food market is forecast to have a value of $ 42,531.8 million, an increase of 49.2% since 2010
    • 38. Business is viable in sense of profitability for the company
    18
  • 39. RECOMENDATION
    • Lowers operational costs, could offer discounts to customer for using Arvind organic food brand products.
    SHGs should be registered
    Warehouse registration is necessary and location of warehouse should be near by market and pure hygienic storage condition should be maintained.
    Advertisement through print as well as electronic media is important.
    Market linkage for domestic as well as global business through third parties (distributor and exporter).
    19
  • 40. LESSON LEARNT
    Focus of the project was to link the export as well as domestic market through Middlemen ( exporter and distributor).
    Government should act like facilitator and promoter of organic agriculture.
    Capacity Building of farmers at farm level is major success factor for organic farming.
    Farmers market linkage during IC1 and IC2
    WIN – WIN situation should be there for every stakeholders.
    Evaluation of any organic project should be based on:
    • Benefit goes to end user
    • 41. Consistency and
    • 42. Sustainability in agriculture
    Strict internal as well as external certification monitoring are necessary to ensure 100% organic.
    For storing organic staple food in warehouse optimal conditions are required depending upon the staple food.
    For organic staple Business quality and certification standard should be assured.
    Corporate work culture .
    20
  • 43. Thank you