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Arvind ltd@ organic staple business mts 01 presentation
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
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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
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
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
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
42. Sustainability in agricultureStrict 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
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