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Arvind ltd@ organic staple business mts 01 presentation
- 1. Arvind Company LtdAkola,Maharashtra MTS -1 Project title Market Research for Organic Staple Business in Domestic and Global for Arvind ltd. Presented by:Anjaney Kumar(10201006) Sunil Kumar(10201055) 1
- 2. Organization Overviews ArvindLtd.wasestablished in 1931,company of Lalbhai Group
- 3. It is India'slargest Denim manufacturer apart from being world’s fourth-largest producer and exporter of Denim .
- 4. Today it notonly retails its own brands like Flying Machine, Newport and Excalibur but also licensed international brands like Arrow, Lee, Wrangler and Tommy Hilfiger, through its nationwide retail network.
- 5. Arvind also runsa value retail chain, Mega mart, which stocks company brands.
- 6. Recently it haslaunched BCI and Organic Staple food projects in Akola district. Arvind is working closely with the farmers of the Vidarbha region in Akola to grow organic cotton and staple food like Moong, Pigeon pea, Black gram, Soybean, sunflower, Sorghum, Ajwain etc
- 7. ORGANOGRAM : ARVINDORGANIC LTD.Organogram final.docx2
- 8. OObjective of the Study:Estimation of production potential of organic staple food in Akola district of Maharashtra under ARVIND LTD.
- 9. Current scenario oforganic staple business in domestic and global markets.
- 10. Strategy formulation forthis business Significance of the study:The significance of the study is to find the suitable market for organic food and to make strategic formulation for the business of organic food so that marketing of the organic food can run in a sustainable manner and producer can get better return through the business 3
- 11. MethodologyMethodologyPhase 2Objective 2Phase4Phase 1Objective 1Phase 3Objective 3Secondary dataInternet
- 12. Personal interviews(questionnaire, convenience sampling)
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- 18. Objective :01Total areaof organic staple food production under ARVIND organic project. Sources: field survey5
- 19. Seasonality ofOrganic Crop6
- 20. Center wise SHGs & farmers Classification of farmers ARVIND ORGANIC PROJECTEXTERNAL CERTIFICATE(CUC)EXTENSION SERVICE INTERNAL MONITORING FARMERSFARMERSFARMERSSource: field survey Organic (ICS) Structure & Certification All 3538 farmers have been in organic statusfield survey ,primary data collection.xlsx7
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- 22. Global Scenario Source: IFOAM9
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- 24. USAEU countries TheUnited States organic food market grew by 15% in 2010 to reach a value of $28,513.1 million . In 2015, the United States organic food market is forecast to have a value of $ 42,531.8 million, an increase of 49.2% since 2010 The European organic food market grew by 9.9% in 2010 to reach a value of $25,040.3 million. In 2015, the European organic food market is forecast to have a value of $36,382 million, an increase of 45.3% since 2010. 11
- 25. Objective :3 MarketingStrategy Value chain Harvesting Selling at farm Procuring /collecting StoringPackagingStoring in warehouse Cleaning ,Grading and Storing Stretching /Labeling Domestic :Distributor /wholesaler Organic Retail outlet /Mall DomesticSellingGlobalGlobal :Exporter/Export 12
- 26. Marketing StrategyChannelProducerProcurement CenterProcessingWarehouseExportExporterDistributor/SupplierOrganic retail/mallDomestic Global 13
- 27. 4ps Model ForMarketing Strategy PRODUCT STRATEGY PRICE STRATEGY Offering Vast range of organic food products with high qualities .Purely organic certified under internal inspection with control union certification (NETHARLAND)..The quality control systems are such that the products are checked and rechecked right from the field, grading and packing and during shipment, which makes it possible to meet the high quality standards of Europe and other developed nations Producer: small holder associated with SHGsCountry of origin : India Packaging: 50 kg wrapped in jute bag, labeled with private organic logo.provision for Cost plus price: total cost from farm to the market plus 10%profit margin for export market, and for domestic business we work through market penetration by offering minimum price of the product for long term business growth .and also for market sustainability. Competitive price at highest quality .Price differentiation discount based on volumes,rediness to inter long term partnership.14
- 28. CONTI….PLACEPROMOTION Direct shipping to the EUs and USA countries to the wholesaler & distributor .Or via exporter At Domestic level business, Small as well as big volume directly sold to the distributor ,organic retail outlet and mall .Personal selling :getting in contact with potentially interested final distributor /wholesalerParticipation in organic and fair-trade fair Inviting potential client to the field visitPromotional material(pamphlet) for clients and consumer After sales follow-up client satisfaction and distributor satisfaction For domestic level promotion we will use electronic media and print media.We also promote mouth to mouth promotion by offering best quality of products at low price. 15
- 29. Export procedure EXPORT.docxCostanalysis of organic staple for Domestic and Global costing final.xlsx16
- 30. SWOT ANALYSIS OFORGANIC STAPLE BUSINESS 17
- 31. CONCLUSION Organic projectis as an important livelihood option for small, resource-poor farmers with low-input costs and quality food production through sustainable environmentFair trade practices Social justice Organic project is certified by CUC, Netherlands equivalent to standard of EUs countries having 54% market share.
- 32. Lack of awarenessamong people about organic food at domestic level.
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- 34. Lack of universalcertifying standard are the major problems for business at global level
- 35. Organic demand inIndia in year 2010 8,423.843 US $ million forecasted to reach 12,192.130 US $ million in year 2014.
- 36. The European organicfood market grew by 9.9% in 2010 to reach a value of $25,040.3 million. In 2015, the European organic food market is forecast to have a value of $36,382 million, an increase of 45.3% since 2010.
- 37. The United Statesorganic food market grew by 15% in 2010 to reach a value of $28,513.1 million . In 2015, the United States organic food market is forecast to have a value of $ 42,531.8 million, an increase of 49.2% since 2010
- 38. Business is viablein sense of profitability for the company18
- 39. RECOMENDATION Lowers operationalcosts, could offer discounts to customer for using Arvind organic food brand products.SHGs should be registered Warehouse registration is necessary and location of warehouse should be near by market and pure hygienic storage condition should be maintained.Advertisement through print as well as electronic media is important.Market linkage for domestic as well as global business through third parties (distributor and exporter).19
- 40. LESSON LEARNT Focusof the project was to link the export as well as domestic market through Middlemen ( exporter and distributor).Government should act like facilitator and promoter of organic agriculture.Capacity Building of farmers at farm level is major success factor for organic farming.Farmers market linkage during IC1 and IC2WIN – WIN situation should be there for every stakeholders.Evaluation of any organic project should be based on:Benefit goes to end user
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- 42. Sustainability in agricultureStrictinternal as well as external certification monitoring are necessary to ensure 100% organic.For storing organic staple food in warehouse optimal conditions are required depending upon the staple food. For organic staple Business quality and certification standard should be assured.Corporate work culture .20
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