morarka summer internship

8/13/2019 morarka summer internship

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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.html


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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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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.


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.


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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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.


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.


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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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.


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.


40% people buy grocery items on monthly basis and 23% buy on biweekly basis.

12.


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.


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

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