Hello, everyone. Today I will be discussing the prospect of an organic farm-based business that I feel would be very beneficial for our company. To begin, I would like to talk about an already successful business based on the organic farm concept that is present in the United Kingdom. The name of this business is Daylesford and its purpose for this discussion is to look at it as somewhat of a template as to what our eventual business can be.
First, we should take a look at a brief overview of the Daylesford Organic Farm concept. According to author Gwenda Brophy (2004), Daylesford Farm was first opened in 2002 by Sir Anthony and Lady Bamford with the purpose of selling different kinds of produce that had come from their estate (para. 13). The Bamford’s farm had already been growing organic produce for a good while prior to the opening of the business and had been selling it on the open market. As time went on, it only made sense to progress this on to a more direct outlet (para. 14). Brophy (2004) stated that it is very important for many people to know where their food comes from and as such the level of quality control is closely monitored by the Bamfords as they are directly involved in the entire organic process.
Some of the examples of what is done by the Bamfords include growing their own wheat, carrying out the milling process and baking much of their own bread (para. 14). In addition to the organic produce that is offered by Daylesford, the shop also has a café where customers can enjoy anything from a cup of tea to an organic steak. The Bamfords’ plan has been to continue to introduce new products as often as possible and although organic products are what Daylesford is known for, not every product is organic. Above all, the most important element to Daylesford’s products, organic or non-organic, is that they all maintain the same high level of quality (para. 19).
Brophy (2004) notes that Daylesford is a traditional farm shop at its core but with both its non-wealthy and wealthy customers, catering to customers’ needs and the way the shop is styled is critical to its success (para. 16). In marketing the Daylesford concept, the shop has generally relied on word of mouth but has also been a presence with many charitable and community events (para. 17).
Potential Market Segment
Next, it is important that the target market for our organic-based business is identified. There are many factors here to consider when marketing our organic products to the consumer. Authors Bellows, Diamond, Hallman and Onyango (2008) noted that studies have linked organic purchases to consumers with perceived attributes that include taste, freshness, quality, safety and health (para. 7). In terms of the socio-economic characteristics of the organic consumer, research has shown that they are likely to have had a high education of college or above, are urban dwellers, have a high income, are younger consumers in age and predominantly female. The research on what motivates the organic consumer to purchase organic products reveals that the private benefits relating to food consumption are more important than the knowledge of the public benefits regarding organic farming. Essentially, it is more important to the consumer to purchase these products for the taste, freshness, convenience and health than out of concern for the environment as organic farming helps in reducing water pollution and protecting natural habitats (para. 8).
In addition to the variables just mentioned, Dr. Deacue Fields also states that in determining the target market for organic produce and products, approximately 72% of consumers are classified as Generation X and Y while 69% of them are classified as Baby Boomers. In regards to income, more specifically, 35% of people considered as organic consumers earn more than $50,000 as opposed to the non-organic consumer which comprises a total of 30%. Finally, taking into account the geographic location of the common organic consumer, the majority of them are concentrated in the Western and Midwestern regions of the United States (“Marketing”, 2011). I think you will find that all of these elements combined will be of great help in targeting our potential market for organic products.
The Value Proposition
Now, I would like to discuss the benefits that our organic-based business will offer to our target customers. First, as far as the functional benefits are concerned, one of the key factors is that organic produce offers the consumer a healthier option when it comes to one’s eating habits. In regards to chemicals, organic produce refrains from using any kind of synthetic pesticides, fertilizers, fungicides, herbicides or synthetic preservatives and additives. As such, the amounts of hazardous residues within organic foods are basically restricted to the lowest amount (“Organic”, n.d.).
In terms of emotional benefits, our organic business can provide the good feeling that customers will have knowing they are choosing a much healthier alternative when consuming our foods. Studies and research that included a series of scientific experiments have shown that many organic foods such as dairy, fruits and vegetables contain a higher level of antioxidants, approximately up to 40% more than non-organic foods. These antioxidants help greatly in minimizing the rates of natural chemical oxidation of body cells therefore supporting healthier organs. Further studies have also confirmed that these antioxidants are very effective regarding heart-promotion (“Organic”, n.d.). All of these factors combined will contribute to the emotional feeling that our customers will have about themselves and the choices that they are making.
Finally, I would like to address the self-expressive benefits of what our business can provide. These benefits can come about as a result of the image that our consumers display of themselves to others including friends, family, co-workers and acquaintances. The good feeling that our consumers already have regarding their health choices and purchasing our products can be reflected upon these other individuals. This will potentially allow us to draw in more customers as they are introduced to our business and the healthier and tastier products that we provide.
In summary, I think you will find the potential of an organic business in the vein of Daylesford to be very beneficial to our company. With the increase that has occurred in the number of individuals opting for a healthier lifestyle within recent years, now is the perfect opportunity for our company to take part in this venture. As we have seen, the market for this type of business is large and growing and with our unique skills and techniques, we can provide a service that is equally as successful here in the United States.
Bellows, A. C., Diamond, A., Hallman, W. K., & Onyango, B. (2008). Understanding consumer interest in organics: Production values vs. purchasing behavior. Journal of Agricultural & Food Industrial Organization, 6(1), 1-31. Retrieved from http://eds.b.ebscohost.com.proxy.devry.edu/eds/pdfviewer/pdfviewer?sid=af0e28a8-a1aa-4bea-b2d5-41190f879738%40sessionmgr112&vid=15&hid=120
Brophy, G. (2004, Mar 27). Down on the farm shop: Country living: Gwenda brophy visits two very different variations on a rural staple and finds common ground. Financial Times. Retrieved from http://search.proquest.com/docview/249488024?accountid=44759
Fields, D. (2011). Marketing organic products. [Data file]. Retrieved from http://www.tuskegee.edu/sites/www/Uploads/files/About%20US/TUCEP/Organic%20Farming%20Training/Marketing%20of%20Organic%20farming.pdf
Organic food and benefits. (n.d.). [Data file]. Retrieved from http://www.english.umd.edu/sites/default/files/interpolations/pdf/dong.pdf
Courtney from Study Moose