Post on 04-Jun-2018
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SUMMER INTERNSHIP PROJECT REPORT
On Training Undertaken at
MORARKA ORGANIC FOODS LIMITED
Project Title: AN ANALYSIS ON AWARENESS OF ORGANIC
FOOD AND STUDY ON EFFECTIVENESS OF EXISTING SALES
MODEL FOR MORARKA ORGANIC FOOD LTD.
Submitted in partial fulfillment for the award of degree of
Bachelor of Business Administration
Submitted By:-
ASHOK JANGID
Submitted To:-
Head of Department
Management Studies
MDS
University Ajmer
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ACKNOWLEDGEMENT
The Contentment that accompanies the successful completion of the task would be incomplete
without the mention of the people who made it possible. It is my privilege to express my gratitude
and respect to all those who helped me in completing this project.
I take immense pride in conveying thanks to my corporate guide Mr. Kumar Vaibhav, who gave me
complete freedom in doing my project. I am extremely indebted to him for his valuable support, help
and co-operation. He taught me practical dynamics of business and management tools. My further
value addition was done with productive feedback along with suggestions and motivation to
improve on those areas. He also stood by me in exploring every area of concern and provided me
with the information and document needed.
I am greatful to Mr. Rahul Chugh, Mr. Sorabh Mathur, Mr. Gourav, Mr. Rahul Yadav and other
employees of Morarka Organic Food Pvt. Ltd. for providing me the required support regarding the
project and other related activities. They were extremely helpful and cooperative.
I extend my heartiest thanks to, Prof. Anurag Jhanwar, for the direction he gave to this project
through his valuable insights, which constantly inspired me to think beyond the obvious.
ASHOK JANGID
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EXECUTIVE SUMMARY
Down to earth is an organic food brand from the house of Morarka organic. An enterprise that is the
outcome of more than 12 years of organic food research and development and is in accordance with
the most stringent organic certification in the industry. Down to earth is an attempt to provide
food that can bring harmony and wellness in life for all.
With a plethora of products that give you the organic substitute for all your food requirements, it is
indias contribution to the global organic revolution. Down to earth is striding ahead with the aim of
improving the quality of life by improving the quality of food.
Market research of organic food awareness and study different sales model for Morarka
organic food Ltd.
Marketing Research contributes as the drivers of company performance. Marketing research act as
the systematic design, collection, and reporting of the data and finding relevance to a specific
marketing conditions. whereas studying different business model of company helps in market
development and establishing dialogue between the company and the end customer. I was given the
project study of AN ANALYSIS ON AWARENESS OF ORGANIC FOOD AND STUDY ON
EFFECTIVENESS OF EXISTING SALES MODEL FOR MORARKA ORGANIC FOOD LTD.
BUSINESS MODELS OF MORARKA:-
Study of different sales model of company shows how these models are effective to cover all the
customer. Different models of morarka organic cover current as well as potential customer. The
study of these model helps company to develop new strategy for potential consumers as well as
current customers.
New users can be defined as: new geographic segments, new demographic segments, new
institutional segments or new psychographic segments. Another way is to expand sales through newuses for the product. So, I was required to study of effectiveness of the different models of Down to
earth brand.
Models of Down to Earth:-
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1. Franchise Model
solving , Reward loyal customers, Monthly customers meet)
haviour
2. General Trade
identification with potential)
decide such counters ( Location, Customer base, Interest in Organic, Reputation in
market )
t Organic
3. Modern Trade
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MARKET RESEARCH:-
Market researchis any organized effort to gather information about markets or customers. It is a
very important component of business strategy.
Market research is a key factor to get advantage over competitors. Market research provides
important information to identify and analyze the market need, market size and competition.
Market research, which includes social and opinion research, is the systematic gathering and
interpretation of information about individuals or organizations using statistical and analytical
methods and techniques of the applied social sciences to gain insight or support decision making.
In market research I was told to find out the awareness for organic food in jaipur city. Our area of
research is
Raja park, malviya nagar, mansarovar, durga pura, vidyadhar nagar and bani park .
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EXECUTIVE SUMMARY
TABLE OF CONTENT
CHAPTER 1
COMPANY PROFILE
Company History
Product Profile
Various Business Processes
CHAPTER 2
INTRODUCTION
PROFILING OF COMMODITIES
GROWTH AND FUTURE MARKET OF ORGANIC INDUSTRY
NEED FOR STUDY
JUSTIFICATION OF STUDY
CHAPTER 3
RESEARCH METHODOLGY
SAMPLE DESIGN AND SAMPLING TOOLS
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OBJECTIVE
TOOLS OF DATA COLLECTION
LIMITATIONS
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
CHAPTER 5
FINDINGS
SUGGESTIONS
CHAPTER 6
SWOT ANALYSIS
CONCLUSION
BIBLIOGRAPHY
ANNEXURE
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CHAPTER ONE
ABOUT COMPANY
COMPANY PROFILE
Company Name: MORARKA ORGANIC FOODS LTD
Business Type: Manufacturer, Trading Company, Distributor/Wholesaler,
Other
Product/Service All Cereals, Pulses, All Spices, Cooking Oils & Ghee,
Condiments, Organic Tea, Organic Coffee, Honey, Roasted
Snacks, All kind of Papad, Dry Fruits, Fresh Vegetables, Fresh
Fruits
Address: Vatika Road, Off Tonk Road
Brands: Down To Earth, Back To Basics
Company Website URL: http://www.morarkaorganic.com
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ORGANIZATIONAL HISTORY
Morarka Organic was started 15 years ago as a Voluntary Organization for Rural Development. It is
recognized as a leading resource agency for Organic Agriculture development in India and
internationally. It was set up as a Corporate Philanthropy by GDC Ltd. Headed by Sh. Kamal M.
Morarka, a leading thinker & philanthropist in India. It employs over 100 Professionals to deliver
quality services to the Stake Holders in Development of Value Chain in India & Internationally.
It is currently managing the single largest Organic Agriculture Development initiative in India,
covering over 300 Crops cultivated by over 100,000 Farmers in India.
Beginning from Nawalgarh, a small town located on the edge of great THAR-DESERT in
Rajasthan, in 1993-94, MOFPL now has presence in almost all the parts of the country.
Morarka Organic offers the single largest portfolio of Certified Organic Food Products
cultivated in over 100,000 Acres in India. It works with over 1000 entrepreneurs, associates,
partners & Farmers Groups in about 20 States in India.
Morarka Products are in compliances with International Quality Standards. They are as follows:
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EUREPGAP: - for Horticulture Production.
US-NOP, EU, INDIA-ORGANIC, JAS and Bio-Suisse:- for Organic Cultivation, Processing &
Handling. ISO 9000 / ISO 22000:- for Quality Processing of Organic Foods.
HACCP: - for Hygiene & Sanitation for Processing of Organic Foods.
GMP: - for Production of organic Foods.
GAP: - for Cultivation of organic Crops.
MRLs:- for Pesticides and Heavy Metals in Organic Foods
It also has various Indian Food Safety Standards like AGMARK, FPO, and PFAetc
All these international and national standards of quality have given Morarka an advantage to become
a truly World Class Company for Organic Food.
Down To Earth was introduced as a Retail Brand in India & Internationally by Morarka
Organic.
In a very short period, this brand has made its presence in over 300 outlets in Mumbai, Delhi, Pune,
Bangalore, Jaipur etc. and has become the most recognized brand offering value for money for
Organic consumers in India.
Apart from Food business, Morarka Organic also has a textile division under the brand name
Back to Basics
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Back to Basics brand has a range of Organic, Cotton and silk offerings. Here, again the raw material
used is free of any kind of chemicals.
PRODUCT RANGE
When the company was started, it had 10-15 basic products, but with the passing time the product
range has increased. At present there are around 320 products.
Everyday Cereal Grains
Healthy Grains and Dalia and atta
Everyday Dals
Chutneys
Everyday Spices
Edible oils and Ghee
Garam Masala
Tea, Coffee, Sugar and Jaggery
International Foods
Snacks and beverages
Heat and Eat Foods
Honey
Juices
SUPPLY CHAINSupply chain represents a value delivery system. When a company moves upstream or downstream,
the aim is to capture a higher percentage of supply chain value.
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A large portion of a companys success depends on a strong and reliable supply chain. This is even
more relevant for Morarka, since its competitive advantage and the bulk of its social benefit come
through the way it purchases, processes, and sells its products. A summary-level diagram of
Morarkas supply chain is provided below, followed by detailed descriptions of each step in theprocess
PROCUREMENT
The process of procurement starts at the time of harvesting of the crop. In this process there are field
officers of Morarka who go to the farmers and get their produce. This gives an advantage to the
farmer as his transportation cost is saved and he also get fair price of his produce. Process of
procurement starts with the selection of village and then the farmer. This selection is done on the
basis of kind of the produce in the village and requirement of the company.
Steps during procurement are:-
PROCESSING
The Processing of the Food Products is one of the main processes in the food industry which is the
base of any food based industry. Morarka owns its own processing unit which is lashed with all the
state of art and Hi- tech processing machines. Automatic Cleaner, Grader, Grinder, Pulvonizer,
sealing, inkjet barcode printer and all other related accessories are installed to aid the better
processing of the food commodities.
NOTE: Cold storage temperature is maintained at 8C. Product List along with their Lot No. Batch No. and Location is
put on the pillars of the Storage so as it to make is easy to find the material whenever it is required.
Purchasingof produce
Issuing ofPurchase
Order
PriceNegotiation
QualityTesting of
Sample
Field Officerget Sampleof Produce
Selection ofFarmer
Selection ofVillage
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QUALITY CONTROL
Quality is the most important thing in Organic Food. People pay extra price over the conventional
one for the quality of the food items. Since MORARKA markets its goods as high quality, quality
control at every point of the supply chain is critical.
In order to maintain a minimum level of product quality, Morarka agree on quality parameters
during the procurement process, then the storage, processing, packaging and dispatch of the final
product.
The most important part of the Quality Test in case of the Organic Food Business is The Pesticide
Residual Test is done from nationally accredited certified Labs like SGS, Delhi Test House, Euro
fins and other outside Testing Agencies to avoid any biasness. The test reports of these agencies are
acceptable to the certifying agencies, institutions and the end consumers.
SALES
The sale is the final step in a Morarka supply chain that stretches from the small rural farmers field
to the hands of consumer. Overall, Morarkas sales are fairly evenly split between Bulk,
Institutional, Retail and International sales.However, the sales process works quite differently in
all of them.Morarkas centralized sales and marketing team negotiates supply agreements with sales
channels.
Talking specifically about Indore, Franchise Model of sales is also being used. Morarka has 1
Franchise in the city. From them the customers buy the product
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CHAPTER TWO
INTRODUCTION
Food and clothing are the most basic needs of man. However, over the last one century man has
made it extremely complex. But with the passing time, health is again becoming the primary
concern for people, all over the world. Organic Farming has become that break by giving a healthier
and safer option.
Organic Farming also known as ecological farming is a form of agriculture that excludes the use of
synthetic fertilizers and pesticides, plant growth regulators and livestock feed additives, reflecting
the reliance on the ecosystem management instead of external inputs.
Its importance comes when the aim is to sustain and enhance the health of ecosystems and
organisms from the smallest soil to the human beings. Organic Farming is helpful in creating
integrated, humane, environmentally and economically sustainable agriculture production systems.
The maximum reliance is placed on locally or farm-derived renewable resources and the
management of self-regulating ecological and biological processes and interactions to provide the
acceptable levels of the crop, livestock and human nutrition, protection from the pests and diseases,
and an appropriate return to the human and other resources employed.
WHY ORGANIC??
ORGANIC: Environment-Farmer-Consumer FRIENDLY
There are compelling reasons to become an organic food convert. Most health experts claim that
organic food is natural and pure, highly nutritious, has a superior taste and is entirely safe. It lays
claim to several health benefits, as it has copious amounts vitamin C that the conventional food
cannot lay claim to. Raw organic food is also known to cleanse the blood stream by eliminating
toxic wastes. Besides, organic food farming is known to be entirely environment friendly. To be
more elaborative following reasons would justify a persons decision to switch to organic food.
Tastes better, feels better: Thanks to well balanced soils, the crop is strong and healthy,
giving it that keen taste, flavor and nutrition.
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Freedom from Additives: organic food is free from additives which can cause health
problems such as heart disease, osteoporosis, migraines and hyperactivity.
Boosts the system: With 50% more vitamins, minerals, enzymes and other micro nutrients
than intensively farmed produce, organic food gives human body the energy it needs to
manage daily hectic schedule.
Water for Thirst: Organic Farming means good riddance to water problems, because it
reduces toxic farming run off and pollutants that contaminates water, soil and air.
Protects Health of Future Generation: Organic food is the best way to make sure that
future generation remains healthy by not having the pesticide laden food.
Keeps the Rural Communities Healthy: nobody wants to spend their day in a field laden
with agricultural pesticides and fertilizers. It is possible for farming fraternity to breathe
easily by conducting organic farming.
Supports TRUE Economy: Billions of tax is spent on removing chemicals laden in water
and food. But organic food does away with the fear of food. And there by actually saving
money.
Keeping the Livestock healthy: Intensively-reared dairy cow and farm animals are given
drugs to increase their productivity. And these drugs are passed on to the consumers of dairy
produce, which is a contributing factor to diseases like coronaries and high blood pressure.
Organically reared live stock is the answer that medicine is seeking.
Topsoil Remains on Top: poor cultivation and cultural practices, worldwide have created a
topsoil crisis. Only with organic farming practices the soil can be enriched with essential
nutrients to ensure the same quality of food tomorrow.
Preserve Bio-diversity: To preserve the sanctity of the soil, organic farming includes crop
rotation, retain fence rows, wetlands and other natural areas to make sure that there is no
dearth of healthy crop all around the year.
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HISTORY AND DEVELOPMENT OF ORGANIC FOODS AND ITS
MARKET:
In the early era when human beings were born, they lived on fruits, grass, vegetables and animals
which grew on their own in their natural environment. Slowly and gradually they found out and
developed the awareness of growing these plants. With the passage of time, research and
experiments along with advanced technology helped them to grow vegetables faster than their
natural period of growth by using different kinds of fertilizers, pesticides, modifying their genes and
etc. They began to feed animals with different antibiotics and growth hormones so as to enable them
to produce more than what they would naturally produce. The ill-effects and hazards of the amount
of chemicals absorbed by the food were forgotten in the course of achievement by modern
technology and science, given out in the environment and finally consumed by humans., Theconsumption of this food and also by the environment which has been polluted by the use of the
chemicals has affected humans from two sides.
During the First Generation Green Revolution Organic farming an age old practice in India, got
disturbed. Since the Vedic times Organic manure has been in practice in Indian agriculture. A
British Agronomist Sir Albert Howard however had started the organic agriculture way back in
1900. In the early 1920s a group of practicing farmers in UK, to solve the problem of decline in the
quality of soil, and the general deterioration in crop and livestock and the resultant future of
agriculture, sought the advice of Dr. Rudolf Steiner (the founder of anthroposophy), who then, with
the help of a series of lectures and conversations held at the Koberwitz, Germany, in June 1924,
brought forward the fundamental principles of biodynamic farming and gardening . This was the
beginning of organic farming/agriculture. Biodynamic farming involves restoring to the soil a
balanced living condition through the application and use of the completely digested form of crude
organic matter known as stabilized humus. Crop rotation, correct compost and proper intercropping
can all contribute to a healthier biodynamic yield. (Saunders, 1999)
The term organic farming was first used by Lord Northbroune (Sharma, 2004 and Duram, 2005) in
his book, Look to the Lands which was published in 1940.
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Global Market for Organic Products
According to the Research Institute of Organic Agriculture (FiBL), and Organic Monitor, the global
market for organic products is as follow:-
2007-US $ 46 million 2014-US $ 96.5 million
2008-US $ 51 million 2015- US $ 104.7 million
2009-US $ 54 million 2016-US $ 112.8 million
2010-US $ 57.5 million
2011-US $ 67.2 million
((((2007 has been estimated at US$ 46 billion, growing at a CAGR of around 20 % since 1999.
Demand for organic products is concentrated mainly in North America (43%) and Europe (54%).
According to Organic Monitor, these two regions comprise 97 percent of global revenues from sales
of organic products. Asia, Latin America and Australia are important producers and exporters of
organic products. The countries with the largest markets for organic products are the United States,
followed by Germany and the UK. )))
Top ten countries with the largest markets for organic food 2007
Source: FiBL Survey 2009
USA
Despite the economic crisis organic market in the USA registered a steady growth of 17.1% in
2008 over 2007. Sales of organic products, both the food and non-food sector, amounted to US$
24.6 billion of which, sales of organic food products amounted to US$ 22.9 billion. Bread and
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grain products and beverages are the important organic products in the USA. The non-food
sector expanded by almost 40 % to more than US$ 1.6 billion in 2008.
Organic food sales in USA: 1997-2008
Source: Organic Trade Association (OTA), USA; FiBL 2009
Europe
In 2007, the European organic market was estimated at 16 billion Euros, which in 2008, grew by
12.5%, and estimated at over 18 billion Euros. The largest market for organic products was
Germany followed by UK, France and Italy. The Scandinavian countries, however, registered
highest growth: Denmark (33%), Sweden (26%), and Norway (24%). With around 5% share each of
organic food penetration, Austria, Denmark and Switzerland have the largest share of organic
products in the respective total food market.
The European Market: Countries with highest sales in organic products 2007
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Organic Farming Situation in India
Only 30 per cent of Indias total cultivable area is covered with fertilizers due to assured irrigation
and the balance 70 per cent of arable land is mainly rain-fed with little or no use of fertilizer hence
Indian farmers had an inborn understanding on how to work closely with the nature. In organic
farming the precondition is commitment to Mother Natures protection. In India major part of
countrys land can be instantly converted to organic farming and has comparative advantage over
other countries as its vast cultivated area, which has remained free of pollution from chemical
fertilizers, spread over distinctly varying agro climatic conditions, for example, large area in north-
east region, northern hills and rain fed regions with very low or zero use of agro chemicals
fertilizers. Readily available organic manure is often used by the farmers as a source of nutrients that
are either in their own farm or in their locality.
Nearly 70 per cent of organic agriculture products produced in India is being exported because of
the big bucks involved. In the world market Organic products do obtain a 20-30 % higher price than
inorganic products. Indian Competence Centre for Organic Agriculture study reveals the global
market for organically produced foods is roughly about $26 billion and is estimated to increase up to
$102 billion by 2020.
Development of Organic Farming in India 2002 to 2008
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National Initiatives to develop the Organic Sector
Many Asian countries have a high grassroots level involvement in the development of organic
agriculture and many NGOs have programmes to assist farmers in converting to organic agriculture,
to markets organic products or to lobby for organic agriculture. However, large-scale and national
programmes are still rare. The only country with a reported government programme to develop the
organic sector is India. However, this APEDA (Agricultural and Processed Food Products Export
Development Authority) programme is aimed primarily at building up the export market and not
much attention is being paid to build the markets domestically. APEDA is working along with the
Ministry of Agriculture for carrying out the following measures:
Training programmes for producers and certification agencies;
Improving quality of research and development;
Promoting certification programmes;
Developing national policies for organic production;
Improving quality of products, packaging, logistic infrastructure and technical support;
Promoting Indian organic products at international fairs.
Current Trend of Organic Product in India
As per the reports of the Indian Competence Centre for Organic Agriculture (ICCOA), the organicfood industry in India is estimated to be presently around Rs. 600 cores where about 60-70% is
being exported. The global market is estimated to increase by $102 billion by 2020 and currently the
market for organically produced foods is about $26 billion.
In the Indian consumer market it has been slow to catch up what has become a rage in the USA. The
industry here is still in an initial stage and when we look at the unhealthy lifestyles led by current
Indian professionals shall start be turning more heads.
The certification of organic produce and production centers are been carried out by primarily 10
agencies in India. Some of them are FKAL International, OneCert Asia, SGS, Indo Cert IMO
Control and Ecocert International. These organizations conduct through checks on farms and issue
USDA Organic and EUREP GAP certifications. Presently there are about 15,000 certified organic
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farmers in India. The demand for Organic foods is growing at 21% whereas supply is mounting at a
rate of only 15%.
Major products produced in India by organic farming
Export of Organic Products from India
In India there is great export prospective for many other organic products other than Organic tea and
coffee for which it is best known for. Other organic products are its spices and fruits for which India
has a market. There has been a little response for wheat, oil seed, cashew and pulses. From India
Mangos, Bananas and oranges are among the fruit crops that are most preferred as organic product.
Export Market:
Organic food exports from India are increasing with more farmers shifting to organic farming. With
the domestic consumption being low, the prime market for Indian organic food industry lies in the
Product Category Products
Commodity Tea, Coffee, Rice, Wheat
Spices Cardamom, Black pepper, white pepper, Ginger, Turmeric, Vanilla,
Tamarind, Clove, Cinnamon, Nutmeg, Mace, Chili
Pulses Red gram, Black gram
Fruits Mango, Banana, Pineapple, Passion fruit, Sugarcane, Orange, Cashew nut,
Walnut
Vegetables Okra, Brinjal, Garlic, Onion, Tomato, Potato
Oil seeds Mustard, Sesame, Castor, Sunflower
Others Cotton, Herbal extracts
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US and Europe. India has now become a leading supplier of organic herbs, organic spices, organic
basmati rice, etc
Organic crops current production of is around 14,000 tons. Out of which, fruits and vegetables
combine only makes 17% whereas 24% is contributed by tea and rice each, of this total production.
Around 11,925 tons of organic products are being exported, that makes approximately 85% of total
organic crop production is exported. France, Germany, South Africa, Saudi Arabia, Australia, Italy,
Belgium, Canada, Netherlands, Sweden, UAE, UK, Japan, USA and Singapore are the major
countries which form Indias major export market.
Estimated Quantity of various Organic Products in 2009
Commodity Export contribution (by volume) Export contribution (by value)
Cotton 43% 25%
Basmati rice 15% 13%
Honey 11% 10%
Tea 8% 20%
Dry fruits 7% 18%
Processed food 5% 45%
Sesame 4% 25%
Spices 3% 45%
Source: APEDA 2009
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Criticism of Organic Food
In addition to the higher price, there are two main criticisms of organic food. First, some people
argue that eating such products increases your exposure to biological contaminants, putting you at
greater risk for food borne illness. In particular, concerns have been raised about:
Manure - While manure is a well known carrier of human pathogens, when properly
treated it is both safe and efficient. Plus, certified organic farmers are restricted from
using untreated manure within 60 days before the harvest of a crop and are inspected to
make sure these standards and restrictions are met.
Mycotoxins from molds- Fungicides are not permitted in the production and processing
of organic foods. However, studies have not shown that consuming organic products
leads to a greater risk of mycotoxin contamination.
E. coli bacteria- Particularly the virulent strain O157:H7, found in the intestinal tract of
animals, is a concern. As it turns out, both conventional and organic foods are
susceptible to contamination byE. coli.
The second criticism of organic agriculture is that organic farmers can't produce enough to feed
everybody. Some experts contend that organic food production, and in particular the failure to
implement genetic engineering techniques, will condemn millions worldwide to hunger,
malnutrition and starvation because:
Yield (total harvest per unit area) for organic farming is lower than for conventional
farming.
Organic farming is not economically or socially viablein poorer countries.
Future of organic industry in India
In spite of the purchase of organic food product raises the current kitchen budget approx by 25% but
still the future is definitely one that we can have a high opinion of. Rising amount education and
awareness levels, disposable income and with growing health consciousness among consumers in
India promises a bright future for the new found industry. Organic market will help to change the
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current status of the Indian agriculture which will assist in making a better future for the organic
farmer. Popularity and the impact of organic food items will be mainly based on effective sales and
distribution of organic produce coupled with marketing and promotion which is a big challenge.
This can be certainly taken care by the industry as a whole (trade fairs being one such example) andalso by upcoming retail stores. The government will analyze the current state of the industry and
continue its efforts of accepting new ideas and aid the states to promote this kind of farming along
with the interests of the producer. Certain private organizations and NGOs are extending their help
in the promotion of both producing and distributing of organic produce which again act as
advantageous for the industry. Thus, we can anticipate for a fine growth in this industry in both
domestic and international (exports) market.
Growth forecast for specific organic products in the domestic market in the next five years
Spices (all) 14%
Rice 10%
Fruits (all) 8%
Cotton 7%
Tea, Coffee 10%
Oil seeds 5%
Honey 5%
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NEED FOR STUDY
Growth potential
Organic Commodities Market is a rapidly growing area of the food and beverage sector worldwide.
From an insignificant niche market as recently as the mid 1990s, organic commodities have leapt
into the mainstream. In US alone the sales is around $20 billion, despite the 20-35% price premium
of these items.
In India increasing number of urbanities confess buying organic products atleast occasionally. Total
Market Potential for Organic Foods in India is estimated at Rs. 2300 crore. Apart from the farmers
who are engaged in doing organic farming to sustain their livelihoods and eat organic food, there is
another organic consumer (real consumer) who buys food from market. Organic farming is an old
concept in India in terms of the extensive farming carried out in the country..
Need to work on the promotion of organic food
The line of demarcation between organic foods and the rest seems rather thin. Difference in product
is non-apparent. This calls for customer education. Educating the customer seems to be the single
largest requirement. Nothing could perhaps match this mandatory input.
While the awareness of Organic food is low, its usage is even lower. People have mostly accessedorganic out of curiosity or health problem. Theres great difference between what Organic is; what
the consumers think Organic is and what they expect Organic to be. Organic food, according to the
consumers, should be made more readily available even to spread awareness. Most of the customers
do not know where to get Organic Foods and among those exposed to a source there is a feeling that
variety is not available.
This survey is being conducted in Indore seeing the demography of the city which shows that there
is great market potential over here for organic food. In Indore, the typical organic consumer isurban, educated, could be from a middle or high income household and afford to maintain food
choice. The potential consumers here also include wealthy sections of society concerned about their
health and growing numbers of those who care for this environment.
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For sustainable agricultural development
The majority of the people who arechronically hungry in the world are small farmers and their
families who depend on the land to give them the food they need to survive. Use of pesticides and
fertilizers has degraded the quality of water in agricultural areas. In many regions where hunger is a
major problem, water for agriculture is also scarce.
In retrospect of environment and future perspective
Organic agriculture enhances soil structures, conserves water, mitigates climate change, and ensures
sustained biodiversity. Through its holistic nature, organic farming integrates wild biodiversity,
agro-biodiversity and soil conservation, and takes low-intensity farming one step further by
eliminating the use of chemical fertilizers, pesticides and genetically modified organisms (GMOs),which is not only an improvement for human health (food quality) and agro biodiversity, but also for
the associated off farm biotic communities.
If we talk about the kind of pesticides used then, many of them does not have any standards, and the
fact that mixtures of pesticides are commonly found in water supplies (as well as soil) increases the
possibility they will harm human health, especially that of infants, the elderly, and the chronically
ill, who are most susceptible to toxins. In many regions where hunger is a major problem, water for
agriculture is also scarce. Pesticides used in conventional farming get into bodies of water, suffocate
aquatic plants and animals, and accumulate in the food.
JUSTIFICATION OF THE STUDY
This study will give the company the required insights of Indore as a potential market for Organic
Food and there by guide the management to take the necessary steps to tap the market. Also, it will
give a fair idea to management about the potential customers, their expectations from an Organic
Food company. Facilitation will be provided by the study in defining the relevant communication
channels and strategy with the potential customers and the various channels of sales of Organic
Food in Indore.
Marketing Research and studying of the rural India are few areas of my interest. Working on this
project gave me practical experience of how the research process is carried out, what are the
communication tools that can be used to meet the company requirement
http://pubs.acs.org/cgi-bin/abstract.cgi/esthag/2006/40/i04/abs/es051670d.htmlhttp://pubs.acs.org/cgi-bin/abstract.cgi/esthag/2006/40/i04/abs/es051670d.html8/13/2019 morarka summer internship
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CHAPTER THREE
Questionnaire Filling
with the potential
customer
Internet
Company Documents
Secondary Research Primary Research
Research Methodology
Questionnaire Filling
with the Retailers
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SAMPLE DESIGN AND SAMPLE SIZE
Population = Potential Customers, Retailers,
Sampling Units Sample Size
Potential Customers 60
Retailers 30
Total 90
SAMPLING METHOD:
For valid results first, the Cluster sampling method is used where different zones are taken as
clusters and then in those zones Systematic Samplingtechnique is applied.
From each cluster, items are selected to get a valid sample. Even if 100% respondents do not reply
and a margin of 25% is taken it gives quite a good number for the study to be valid.
STUDY INSTRUMENTS:
Questionnaire
To get a meaningful data on topic, a set of structured questionnaire [close ended and open ended]
was repaired for each segment.
STATISTICAL TOOLS: Statistical tools used are pie charts.
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OBJECTIVES OF THE STUDY
To assess the demand of organic foods in Jaipur
Awareness about the organic food
In depth study of potential customers
Their interest level
Awareness about the organic food
Awareness about Morarka and preference to buy Morarka products
Factors affecting their buying behavior for organic food
Their consumption pattern of organic food
To study the effectiveness of sales model of the company.
Factor affecting for selling organic food.
Their interest to sell Morarka products.
Their motivation for selling organic food
Limitation of Research
Survey is limited to Jaipur only.
Few improper responses due to lack of awareness about Organic food.
The chances of misinterpretation by the consumers cannot be ruled out.
So the results during the study will be based completely on the assumption that respondents have
answered correctly.
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CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION.
CUSTOMERS DATAANALYSIS
1.
Inference/observation:-
The study found that more than half of the surveyed costumers had heard about the organic food
yes60%
no
40%
Have you heard about organic
food ?
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2.
Inference/observation:-.
By the survey we know that around 60% of the surveyed customers are aware about what
the organic food.
Only 55% of the surveyed customer are aware about the benefits of the organic food
3.
yes
55%
no
45%
Are you aware about the
benefits of organic food?
retail outlet
25%
promotional
activity
30%
radio
12%
news paper
20%
other
13%
source of information about
organic food
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Inference/observation:-.
Majority source of information is promotional activity which is 30% and lowest is other
which is 13%.
Other include word of mouth (relative ,friends etc.)and T.V
4.
Inference/observation:-.
Among the respondents those who are aware about organic food 60% are aware about down
to earth brands and 40% dont know about the brand.
yes
60%
No
40%
knowledge about down to earth
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5.
Inference/observation:-.
Among those 60% respondent who are aware about organic food only 39% have used
organic food where is majority of the respondent never used it.
So, we can say that 39% of respondent may be our consumer and 61% our customer.
6.
yes
39%
No
61%
Ever used any organic product
YES
30%
NO
70%
awareness about nearest retail outlet
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Inference/observation:-.
Only 30% people are aware about there nearest retail outlet and majority of respondent dont
know.
Low promotion efforts on the presence of retail outlet.
7.
Inference/observation:-.
Only 25% respondent recommend to other for using organic food.(25% out of 60%)
Word of mouth is less.
YES25%
NO
75%
Recommend to others
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8.
Inference/observation:-.
There are two major factor that affect buying behavior first is high price which is 42% and
second is unawareness which is 40%.
9.
42%
40%
10%8%
Factor affecting not buying organic food
high price Lack of awareness
not interested unavailability
supermarket
48%general store
40%
internet
8%
others
4%shopping generally
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Inference/observation:-.
Majority of people which is 48% generally buy grocery items from supermarket (big bazar,
reliance fresh, national handloom)
40% people buy from general store (dept. store) or kirana store.
10.
Inference/observation:-.
51% people yearly income is 3-5 lakh and 25% people income is more than 5 lakh.
below 3 lacs24%
3 to 5 lacs
51%
above 5 lacs25%
yearly income
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11.
Inference/observation:-.
40% people buy grocery items on monthly basis and 23% buy on biweekly basis.
12.
Inference/observation:-.
50% people spend 2500-4000 on monthly for grocery items
35% people spend more than 4000 per month for grocery items.
daily
10%weekly
22%
biweekly
23%
monthly
40%
Yearly
5%
frequently purchasing of grocery
items
4000
35%
monthly grocery spend
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13.
Inference/observation:-.
Preference of majority which is 35% is pulses, than oil & ghee (28%), after that grains and
flours .
Lowest in preference is spices which is 17%.
oil & ghee
28%
spices
17%grains and flours
20%
pulses
35%
product they prefer to purchase first
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RETAILERS DATAANALYSIS
Various Retailers were there in localities of Jaipur like Malviya Nagar, Vaishali Nagar ,Mansarover
,Vidhyadhar Nagar ,Bani park ,Raja park ,Durga pura who sold the organic products of morarka
1. Product Type being Sold
Obersvation
The kind of products being sold by the retailers is majorily of conventional type.
Organic products are also sold by some of the retailers but the product range is very
low.
Some retailers are selling both convebtional as well as organic.
60%17%
23%
Conventional
Organic
Both
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2.Customer visit for organic product
Observation Mostly retailers said 1 to 10 customer visiting per day for organic product.
3. Product range
63%
31%
6%
1 to 10
10 to 20
above 20
31%
25%
44%pulses,spices,oil&ghee
and cereals
roasted snacks and bakery
items
both
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Observation
Majority of the retailer are selling all type of product which is 44%
31% retailer are selling pulses, spices ,oil&ghee, cereals
4. No. of organic supplier
Observation
Majority of the organic supplier 1 to 2 which is 75%.
Than 19% retailer said 2 to 3 and only 6% retailer have more than 3 supplier of organic
product.
5. Organic brand keep on self
75%
19%
6%
1 to 2
2 to3
above 3
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Observation
Majority of the retailers keeping morarka organic products which is 63%.
31% retailers keeps vision fresh products.
6. Motivational Factors for Selling Organic Food Products
Observation
Most of the retailers selling organic product because they are getting high profit
which is 69%
12% retailers sell organic product because of taste/quality.
63%
31%
6%
morarka organic
vision fresh
others
69%
12%
19%
high profit
taste/quality
both
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7. challenges faced while selling organic foods
Observation
Two major challenges faced by retailer while selling of organic product are high price
(44%) and lach of awareness which is 37%
others include lack of demand and not interested etc. which is 19%.
8. Satisfied with the marketing of company for your retail outlet
37%
44%
19%
lack of awareness
high price
others
25%
75%
yes
no
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Observation
75% retailer are not satisfied with the marketing (promotion) for their retailing outlet.
25% retailers are satisfied.
9. Satisfied with the supply system of the company
Observation
62% retailers are satisfied with the supply system of the company.
While 38% are not satisfied with the supply system of the company.e.g no
consistancy of
supply of veg. and fruit
62%
38%
yes
no
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FINDINGS Less awareness about organic food and company among the people.
Low promotion efforts on the presence of retail outlet.
As compared to its competitors, the range of products offered by morarka organic is very
wide.
Price of morarka is a higher than the conventional food products and Customer is Price
Sensitive.
Majority of the retailers are selling conventional products.
In organic industry, morarka is a leading brand.
Selling of the products is done in three ways:
Through Retailers
Through Franchise
Through Modern Trade
Through Direct Selling
Majorly mouth to mouth publicity is there, which needs to be further developed on large
scale and to be taken ahead with Mass media
Availability of the product is not proper in the super market. There should be more productrange.
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SUGGESTIONS
As per the findings and observation of the project there are some recommendation/suggestions
which could be useful for increasing the market size of Morarka. Along with this there has to be
some improvements to be made in the Organization and its various business processes.
Following are the recommendations of the company.
Most of the people are not aware about DOWN TO EARTH STORE So company should
increase its marketing through:-
promotion of retailing outlet.
Advertising and use of mass media. Product demonstration should be conduct in big societys to make the people aware about
down to earth .
Promotion will be done preferably in the evening time as at that time majority of people are
found in the malls, shopping centres.
Company should conduct training program for retailers.
Company should provide some kind of discount schemes on occasion or at the end of month
or for a week. (Like big bazaar at the end of month scheme ).
CHAPTER SIX
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SWOT ANALYSIS
STRENGTH
Own processing and packaging unit.
Well Organized State of Art Lab for quality testings and R&D.
Have various kind of assurance of for the purity of the Products.
Wide range of products.
Products are of very high quality.
Varoius outlets all over the country.
WEAKNESS
People are unaware about organic food.
There is a rigid mentality of people to adapt to the change in their lifestyle.
Cost of production is high.
Demand assessment of various products is not proper.
All the procurement is done at one time. So this creates problem of the storage of raw
material and also leads to increase in cost.
Sales force is not there
OPPORTUNITIES
Food habits of people are changing. Especially health consciousness among people.
Standard of living is improving.So people are seeking out for pure and high quality food
products.
Few of the competitors.
Seeing the social and health benefits of Organic food, if communicated properly to target
group would be a great opportunity for the company.
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THREATS Cost: Since it is little more expensive than the other food items people may look back.
At times, it becomes difficult to prove the authenticity of the products as many of the
customers have less believe on certification etc and want some other proof of authentication
of the products.
Various competitors such as 24 letter mantra, organic india, ecofarms.etc.
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CONCLUSION
Talking specifically about exploring the future market of organic commodities, In jaipur the
awareness and knowledge about Organic food is very low as compared to the metropolitan cities of
the country. We have concluded that Organic Food has a very niche market consisting of high end
institutions and high class people as potential customers.
Everybody wants to consume superior quality, free from chemicals food. But due to lack of
awareness about Organic food this demand is not yet fulfilled. It has also been observed that there
are very less companies providing Organic food in the city. Vision fresh is the one known to
customers and also some of the petty godown owners are manufacturing few organic products
individually like quality king . So this is the appropriate time for the company to tap the market.
Retailers do not prefer to keep companys products as there is very less demand of the Organic food
products and reason of less demand is the lack of awareness among the potential customers. So in
total the problem is not that there is less demand for the companys products but low AWARENESS
level about Organic food is the issue to be worked on. If people given proper education about the
Organic food then they would surely buy it.
Talking about institutional sales, price is the major factor affecting the decision making of the
respondents to buy Morarka products. Quality and authenticity also play a significant role.
BIBLIOGRAPHY
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BOOKS
Kotler Philip, Keller K.L., Koshy Abraham, Mithileswar Jha, (ed.), 2007, Marketing
Management-A South Asian Perspective. Delhi: Dorling Kindersley (India) Pvt. Ltd.
WEBSITES
www.morarkaorganic.com
www.morarkango.com
www.organic.org
www.organicconsumers.com
Morarka @gri-Infotech (The seeds of technology, The fruits of Agriculture)
www.spiceworld.com
www.spiceindia.com
ANNEXURES
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QUESTIONAIRRE FOR CONSUMER
Name:-
Age:-
No. of family members:-
Address:-
Phone:-
Email id:-
Occupation?
Engineer & IT professional
Doctor
Government servant
Businessman
Service sector
1.) Are you aware about organic food / Organic farming?
Yes No
2.) Are you aware about the benefits of the organic food?
Yes No
3.) What are your sources of information about organic food?
News paper
Retail outlet
Radio
Promotion activity
Other
4.) Have you heard about organic food brands especially Down to earth (Morarka)?
Yes No
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5.) Have you ever used any organic product?
Yes No
6.) Are you know or aware your nearest retail outlet (Down to earth)?
Yes No
7.) Do you recommend others to use organic food?
Yes No
8.) What are the factors not affecting the buying of organic food?
High price
Unawareness
Not interested
Unavailability
9.) Where do you go for shopping generally?
Supermarket
General Store
Franchisee
Internet
Others
10.) Income Yearly?
Below 3 lacs
3 to 5 lacs
Above 5 lacs
11.) How frequently you purchase grocery?
Daily
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Weekly
Biweekly
Monthly
Yearly
12.) your monthly grocery spend ?
4000
13.) which product would you like to purchase first in organic foods ?
Oils and ghee
Spices
Grains and flours
Pulses
Other
14.) Who generally purchases food items in your family?
Servant
Lady of the house
Man of the house
Both
15.) What could be the motivational factor for buying organic food?
Health factor
Taste factor
Others
16.) Any suggestions ..
QUESTIONNAIRE FOR RETAILORS
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(b)Quality/test
(c)both
7. What challenges according to you are faced while selling the organic foods ?
(a)Lack of awareness(b)High price
(c)Others
8. Are you satisfied with the marketing of the company for your retail outlets ?
(a)Yes
(b)No
9. Are you satisfied with the supply of organic product of the company ?
(a)Yes
(b)No