Preliminary Research Proposal
BUSINESS PLAN PROPOSAL
INDUSTRY- ORGANIC FOOD INDUSTRY
The Organic food industry is a growing market in India cause consumers in India are becoming increasingly health conscious because of which there has been a change in their preferences. To avoid adverse health effects of chemical preservatives/ residues present in non-organic food, consumers are moving towards consumption of organic food instead of conventional food. There has been a projected growth at a CAGR of over 25% during 2015-2020 as per (India Organic Food Market Forecast & Opportunities, 2020). Organic farming is that the style of agriculture that depends on techniques like crop rotation, manure, compost and biological blighter management to take care of soil productivity and management pests on a farm. Organic farming excludes or strictly limits the employment of factory-made fertilizers and pesticides, plant growth regulators like hormones, eutherian mammal antibiotics, food additives, and genetically changed organisms. Organic farming typically involves mechanical weed management (via cultivating or hoeing) instead of herbicidal weed management. ((Libraryjunction.net))
My objective is to promote the use of organic food in the country and I will do so by putting up organic farmland all over India in order to ensure that all my products will be safe and without the use of factory-made fertilizers and pesticides. We will be setting up our own company who will own farmlands for the production of organic foods. My vision is to educate consumers the benefits of organic food and I intend to do so sharing a lot of information through packaging and excessive marketing from both primary and secondary marketing techniques.
Unlike the current players in the organic food industry like Sanjeevani Organics, Hindustan Unilever Limited, Godrej Consumer Products Limited, who sell high quality organic products at a very high cost, my aim is to exceed or to at least deliver the same quality, and deliver at a cost where consumers would not hesitate to buy organic products over chemically infused food products. However these companies are my direct competitors and I would not be able to compete with these industries because of their large scale productions however I would be able to compete with the smaller industries like Avani Food Products, Nitisha Impex, Evergreen Organic Foods.
The organic food industry is a perishable business, as well has a lot of competitors. Therefore, I believe that the best research methodology would be a competitor analysis, in order to help me analyse the strengths and weaknesses of the other players. This will help me shape my strategy and help me create a USP for my brand. Moreover, since the organic food industry has a lot of subsidies and other government grants, its essential to also do a Porters 5 Forces and a PESTEL analysis in order to understand the internal and the external environment of the industry. These analysis will help me determine the threat of various stakeholders on my business, and to understand the economic, legislative impacts on it. I will complete these analysis by using both primary and secondary data, as well as quantitative and qualitative methodologies. Since India has various cultures, my sample will cover various people from wide range of cultures in order to see their reactions to organic food products as well as their current knowledge on the adverse effects on the current food they eat. This will help and give me an idea of India as a whole, as it is difficult to do it state wise.
Research, TechSci. ‘India Organic Food Market To Grow At Over 25% Through 2020, Says Techsci Research’. Prnewswire.com. N.p., 2015. Web. 22 Nov. 2015.
Libraryjunction.net,. ‘Organic Farming In India | Wiki | Library Junction’. N.p., 2015. Web. 22 Nov. 2015.
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