Diligent Consulting Group
Diligent Consulting Group
Dear Tom Mickey,
I am writing this letter representing my analysis of the consumer behavior in the organic food industry. The consumers have significant influence when it comes to a progress of any business organization. This analysis will be helpful in providing the best advice to the Loving Organic Foods Company on how it can use the collected data to adopt proper marketing strategies. The organic food features the foodstuffs that are breed or grown without the use of the artificial fertilizers, growth regulators, pesticides, and livestock additives. The trend in demand for the organic food has continued to increase over the last decade. This has continued in many parts of the world especially the United States. The US organic sector generated an average of $39 billion in 2016 which translates to 11% increase from its previous record of 2015. Compared to this annual growth, the US organic industry has grown by over 250% since its previous record in 2002. As a result, the organic food sector makes a contribution of 5% to the food sales in the US.
In 2004, the US enacted strict rules to control the organic labeling. This framework set a niche for the organic food producers hence, stood as a significant determinant of the rapid growth of the food giants such as Kellogg and General Mills. Similarly, many small companies have entered into this industry and grown into large enterprises supplying organic food. The organic food industry continues to grow and move beyond its market niche offering a wide range of organic products demanded by the market.
From the histogram of the data collected, there has been a high demand for the organic foods for the individuals aged within the range of 20-50 years especially among the people aged between 40 to 50 years. 27 of the respondents aged between 40 and 50 reported having used organic foods against 23 respondents aged in the range of 30-40 years. Upon reaching 50 years, the respondents showcase a decrease in the demand and use of the organic food. These data outcomes showcase that most of the consumers in the organic food industry are aged between 20-50 years.
There are multiple reasons inducing the consumer behavior towards a healthy lifestyle which calls for the use of the organic food. These factors provide an explanation for the trends in the collected data. For instance, the public is becoming highly concerned for their health which represents a significant factor in the trends in the consumer behavior. The consumers have become aware of the benefits of taking in a healthy nutrition given the multiple connections of the inorganic foods and the dangerous health conditions such as cancer and obesity.
Most of the consumers are demanding the inorganic foods given their low saturation in fats, sodium, and sugar meaning that the organic foods provide high nutrient content as needed by the consumers. Besides, the majority of the inorganic foods have a high content of preservatives which are a significant contributor to the health problems such as high blood pressure. This concern has been a guide to the change of lifestyle for the public who have adopted the use organic products only. Also, people have also become aware of the health effects of these inorganic foods and changed their lifestyle to use organic food as a means to control their weight and live a healthy lifestyle.
The environmental concern is also a major factor contributing to the transition in the consumer behavior and attitude towards a healthy lifestyle. The inorganic food production is the utmost cause for the increased soil contamination following the high use of pesticides and chemicals in their production. Therefore, the advocators for a sustainable environment have stood against the use of chemicals in the production of food. As a result, consumers have made a move to associate themselves with the organic food companies as a measure to protect the environment.
As an environmental concern, I also seek to bring to your attention on the increased interest among the consumers to protect the wildlife against destruction. The producers have avoided using the toxic chemicals in planting as a measure to provide a retreat to the wild animals by encouraging the growth of the natural habitat. As a result, this move has been linked to the facilitation of biodiversity where the natural balance in the ecosystem is encouraged. Organic food production has then been encouraged and embraced by the global society as a fight against global warming. This transition in the production and conservation practices has led to a major shift in the consumer behavior where most of them have been forced to consume the organic food. This transition has seen most of the organic foods to be highly demanded compared to the inorganic food. As a result, their prices have been hiked by the producers to counter the high demand in the market.
As the demand for the organic foods continues to increase, the Loving Organic Foods Company must consider understanding and using these trends to maximize their share in the market. From the data collected, the majority of the consumers of the organic food in the market are aged between 20 and 50 years. This market population features the learned and working population who are weary of their health condition, and also financially able to afford the organic food. This is the portion of the market that the Loving Organic Foods Company must focus on to expand their market base. The consumers of the Loving Organic Foods Company feature the individuals seeking to attain purely organic food that has been certified by the relevant bodies for sale in the market. The Loving Organic Foods Company has different options to winning out this market.
The Loving Organic Foods Company must begin by creating awareness among its customers through its social platforms as a means to introduce the organic products among the new users. This must be followed by educating their staff on the inorganic foods to help the company in spreading the word on the benefits of consuming the chemical-free foodstuff. For the returning customers, the Loving Organic Foods Company must consider establishing an in-store signage and communication strategy such as by using proper labeling and banners to provide the relevant information regarding the organic foods offered. By creating awareness, the Loving Organic Foods Company will be able to differentiate its products from the competitors.
Differentiation can be facilitated by branding and providing sufficient information on the certifying bodies which will allow the company to create credibility for its organic products. Besides, the company can ensure a successful differentiation through providing brand-based stories which will help in humanizing the firm and help the consumers to connect with it based on its ethical and health concern. By these strategies, I believe and hope that we shall be able to guide the Loving Organic Foods Company to use the data collected efficiently to widen its customer base and stand out in the market.