An Introspection

of
Organic Food Value Chain

COMPANY: MENTOR: PREPARED BY:

MORARKA ORGANIC Dr. ALOK KR RAI NITENDRA SINGH
FOODS PVT. LTD. FMS-BHU MBA-MKT.
Data Analysis
Business
Company
Objectives,
DataChain
and
Value
Processes
SWOT
Sampling
Value
Profile,
Research
Analysis
Business
Methodology,
Company
Objectives, Analysis,
Profile,
Methodology,
Processes
Research
Analysis
and ChainPlan.
Analysis,
Interpretation
SWOT Analysis
Sampling Plan.
Interpretation
Presentation Flow
K
ey
Fi
n
di
n
gs
,
I
m
pl
ic
at
io
n
s,
Li
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at
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Company Profile
 Morarka Foundation: established 15 years ago by GDC Ltd.
 Headed by Sh. Kamal M. Morarka
 Morarka Organic Foods Pvt. Ltd. was set up 10 yrs. ago to market the
Organic produce of farmers. BRANDS

Down to Earth Back to Basics

PRODUCT LIST

Bulk-Field Horticulture Animal Husbandry Processed &

Non-Food
Crops-Farm Crops & Controlled Products Specialty Food
Crops - Products
Produce Climate Produce & Livestock Products
Value Chain Analysis
Value Chain analysis refers to analysis of the full range of activities
which are required to be undertaken to bring the product from
conception, to the different phases of production(This involves
Physical conversion of the product) and finally to the end consumer.
>Cost of Production
>Products are not made readily
available in the city
>Demand assessment is not proper
>All the procurement is done at
one time.
>Weak Marketing.
Research Objectives
PRIMARY OBJECTIVE
To seek alternate channels as a medium of promotion and
awareness of organic foods.
SECONDARY OBJECTIVES
o To know about the satisfaction level of Morarka farmers
and the problems faced by them, if any.
To assess the demand of organic foods in Jaipur.
To study the sales model of the company.
 Research Methodology
 Population = Farmers [Organic, Conventional]; Consumers; Potential
Customers; Hotels; Restaurants/Bakeries

• Primary data collection: Sampling Units Sample Size

 Face to Face interview with the Farmers 25
Key Stake holders in the Chain Consumers 20
 In depth interviews were Potential 50
conducted to get insight of Future Customers
of Organic food in institutions. Hotels 20
 Market Survey been done for
interviewing the individual Restaurants/Baker 10
consumers and filling the ies
Questionnaires. Retailers 15
Total 140
• Secondary data collection:
Company documents, ,
observation and internet.
•The research conducted is exploratory
Supply Chain of the Company
Business Processes
Value Addition is done in all the Business Processes to provide the end
consumer with Pure and Quality Food.

Morarka has following major processes:

•Procurement
•Processing
•Quality Control
•Sales

Procurement
Processing
Quality Control
RESIDUAL TESTING is the
most important one for
Organic Food. In this the
sample is checked for any
kind of pesticides,
chemicals present.
 Given utmost importance
as the company is known
for the quality of the
products.
 At each stage of the
supply chain quality of the
product to be delivered is
kept in compliance with
the standards.
Sales
Done in two ways: Bulk, Retail
 International sales of the company is more than the
domestic one.
 Various institutions also buy directly from the company
like Surya Mahal, Bake Hut, Indian Spice etc.
 Talking about Jaipur, Franchise Model of Sales is also
adopted.
Farmer [Conventional]
 Mind Set of Conventional Farmers
 Produce and Price Perspective
 Problems Faced in conventional Farming
 Amount of chemicals increases day by day, this increases the cost
 Water consumption increases
 Price compared to organic produce is less
 Problems in Organic Farming-Their Perspective
 Yield is low for a long time.
 Problem of authenticity of the produce is there.
 Few pests, insects does not get removed by Organic methods, so chemicals become
mandatory to be used.
 Late payment for the product supplied.
 There is no proper channel of selling the Produce if somebody wants to sell it in the
market rather than to the company.
 There is not much demand of Organic food in the market.
 Retailer Analysis
Product type being sold

Conventiona
40% l
Both
60%
Organic

Inference Inference
•Wide range of Organic food products •Interest to keep Morarka
is absent, majorly conventional products is high due to its
products are being sold. authenticity and wide range.
 Challenges faced while Factors affecting buying of
buying organic foods organic foods

Lack of Unawarene
supply ss
20% 20% 40%
less variety High price
20% 60% Both 40% Both

Inference
•There is lack of suppliers for Organic
food in the city.
•Retailers willing to keep Organic food
products don’t find full range of the
same.
Inference
•Accd to retailer perspective,
unawareness is seen as major factor
stopping the customers from buying
Organic food.
•High price is yet another factor.
 Interpretation
 Customer Demand is highly
important in pitching Retailers to
keep Organic Products.
 Another problem is lack of Supply
of Organic food products and less
players of it in the market.
 Awareness level of customers and
Price is to be considered while
making strategies to pitch
Retailers for Keeping Organic
food products.
Potential Customer Analysis
Organic food/farming Source of information
awareness
30% Magazine
yes 20%
40% Internet
no
20% Dietician
60% 30% Nieghbour

Inference
•Organic food awareness is there
but respondents don’t know
about the brands of Organic
foods.
•They don’t have in depth
knowledge about it.
Inference
•Use of mass media for the publicity of
Organic foods is majorly absent.
•Word of Mouth has been an important
source of information about Organic
foods.
 Place of purchase
Who purchases food in the
Local family
grocery
20%
Departmt Lady of the parents
50% store house
10%
30% Super servant husband
market 20% 50%
20%

Inference
•People in Jaipur prefer to buy
grocery items from local stores.
•Though Departmental stores and
are becoming popular.
Inference
•It is majorly the Lady of the House
who purchases Grocery items.
•She is the main decision maker
Motivates to buy organic food Type of organic food prefer to
buy

25% Health Veg & Fruits Pulses

50% Quality 10% Spice & Cereals
Taste factor 20% 40% condiments
25%
30%

Inference Inference
•Health is the major factor on •Vegetables and fruits section caters the
which respondents count on maximum attention of the respondents.
for choosing a food item.
Interpretation
Awareness level of Organic
food is satisfactory but not up
to the mark among potential
customers.
Challenges expected to be
Faced:
 High Price
 Availability
 Awareness
Current Customer Analysis
Source of information abt
Morarka
Morarka
30% 35% employee
Friend
relative
35%

Inference
•Self motivation has played an
important role in making the
respondents as Morarka customers.
Inference
•Mouth publicity has played a major role.
•Mr. Rakesh, sales manager of Morarka
has played a significant role in spreading
awareness about Morarka.

Inference
•High satisfaction level.
•Few problems regarding the delivery of
goods is observed as the outlet is far
off.
•Problems in some products like Mirchi
[colour, taste not so good], Dhania
Powder [very thin] were also noticed.
Interpretation
Overall satisfaction level
was high.
Few problems in some of
the products.
Problems in Packaging
were also there
 Name of the Product is not
clear.
 Price is also not visible.
 Small packing of Products
is not available
Could become a Helping
hand in spreading
awareness about Morarka.
Hotel Analysis Awareness abt Morarka
Interest to introduce organic
menu
20%
45% yes
yes
no 55% no

80%

Inference
•Almost all the Hotels want to have
Organic menu except the one which
are theme based or are not at all
interested in Organic Food.
Inference
•Awareness about Morarka as a Supplier
of Organic Food is high but full range of
products is not known to respondents.
•Also there is less awareness about the
certification of the products.
 Willingness to try Morarka
products
30%
yes
no

70%

Inference Inference
•There is interest in trying Morarka •Quality, cost, and authenticity are
products after they get to know about all expected from Morarka as a supplier
the products and their prices. of Organic food.
•Price is playing imp. role while
making decision for buying Morarka
products.
Interpretation
 High interest level to introduce Morarka Organic Food
products.
 Challenges expected to be Faced:
 High Price
 Authenticity
 Areas to be Played on:
 Jaipur is a Tourist Place.
 Morarka is the only supplier of Organic food in Jaipur.
 It has Quality products
Bakery/Restaurant Analysis
awareness abt organic foods awareness abt morarka
20

yes 40
yes
no no
60
80

Inference
•Interest in introducing Organic
Food menu is high.
•Also, there are some restaurants
which already have Organic food
menu.
Inference
•Awareness about Morarka is very
low among the respondents.
•This calls in for the strategies to
increase the awareness level of
respondents about Morarka as a
company of Organic food.
 willingness to try morarka expectations from morarka
products
30% 10% quality
20% authenticity
yes
50% competitive
no cost
70% 20% timely delivery

Inference
•Morarka has wide range of quality
products so, respondents are
interested to try them.
•Price and quality has played an
important role in the decision
making of trying the products.
Inference
•Quality is the major factor to be
played on by Morarka for selling
making the respondents as its
customers. important thing
expected from Morarka.
 Interpretation
 High interest level to introduce Morarka Organic Food products.
 Challenges expected to be Faced could be:
 Quality
 Authenticity
 Areas to be Played on:
 There are few restaurants which serve Organic Food but facing
problem in getting the Organic Products.
 Morarka is only supplier of Organic food in Jaipur.
 It has Quality products
 Findings

•Raw material is taken from all over the country depending upon
the quality.
•At JAIPUR all the processing and quality testing is done.
•Timely payment to farmers is important and company is lacking
on this part.
•Customer is price sensitive.
•Poor awareness of the product as well as of the company.
•Lack of proper supply.
•Low demand due to unawareness.
•Lack of decentralisation .
•No sales force.
•Poor marketing of the products.
 PROD PRIC PROM PLA
UCT E OTION CE
●
MORARKA means Organic ●
ORGANIC food market
●
Buying Behavior of the ●
No presence of
and is promoted as Pure. is a price sensitive customers is mainly intermediaries is there
It is a product of good market. influenced by the Lady in the distribution
quality and lab tested. ●
Price of MORARKA of the house. So they channel.
●
Procurement is done at are to be targeted Selling of the
products is a bit higher ●

various places of the ●

Right positioning needs
than the conventional products is done in
country depending on the to be done in a
quality of the produce.
food products available three ways: through
aggressive way to make
●
Packaging of the product in the market. Down to Earth a retailers through
is satisfactory with some
●
Who will purchase the GENERIC BRAND. Franchise direct
minor problems. product at higher rate ●
Majorly mouth to mouth Selling
●
Quality testing of the when the consumers publicity is there, which ●
Availability of the
product is done at each doubt the product’s needs to be further product is not proper
point of the value chain. authenticity. developed. in the market. 
IMPLICATIONS
INTERNAL ENVIRONMENT
 Stream lining of Marketing and Sales Process is highly required.
 Decentralization of the processes should be there. This would
motivate the employees to work more efficiently.
 Training Modules has to be set for the Field Officers.

It is recommended to appoint a separate Distribution Manager.

 To ensure streamline flow of the goods in the market.
 To assess the demand of Organic products in the Market.
 To assess the preference of the end consumer.
PRICE and PACKAGING: SALES STRATEGY:
 It was observed that the current
Development
Planning for

customers are facing problems in theSales

of SalesTeam
Team

Tr
the combination of price and ai
packing. ni
 Huge difference in the price of a n
big and small packing. g
of
 Proportional increase in the
S
product price with the packing al
needs to be there. es
 Packing has to be changed in a way T
to increase clarity and visibility of ea
m
product name and price
 Combo packs could be introduced.
PROMOTIONAL STRATEGY:
 Promotion will be done preferably in the evening time.
 Canopies at various malls, Joggers Parks, Fitness Centres.
 Occasions like Melas and Celebrations
 There could be Food Stalls during occasions like Navratra time.

 Stalls could also be put at various fests in different colleges.

 Arranging of Organic Day/Organic Mela quarterly could be done. For this tie ups
with different hotels could be done.
 Print media promotion could also be used.
 Door to door Promotion has to be increased.
 Posters, Product Detailers could be used at various clinics and Hospitals.
 Promotion could be done at supermarkets, Kirana stores by:
 Provision of Point of Touch and pamphlets at the stores.

 Small packing could be put in the bulk purchases of the potential customers at
various retail stores.
 Small Banner could be Placed outside the house of current customers[major
ones] saying I USE ORGANIC-MORARKA products.
 Internet is yet another way to promote.
COMMUNICATION STRATEGY:
 Knowledge
about Organic
Food is the base of this
Business.
 Awareness of Organic Food,
its benefits etc is very low
among the customers.
 Every benefit is to be played
on to have a good
communication strategy
DISTRIBUTION NETWORK:
 Availability of the products is
important.
 It is proposed to set up retail shop
in the city at an appropriate
location like M.I. Road, JLN Road.
 This shop is to be opened with a
Big promotional campaign.
 Even a small restaurant can be
opened in G.T. Bazaar, as it caters
potential customers. Products
could be put there for sales also.
 Moreover, a small counter could be
taken outside Mc Donalds.

GO AHEAD.. GO ORGANIC..
 LIMITATIONS
1. Survey is limited to jaipur only( exception farmers)

2. Few improper responses due to lack of awareness about organic foods.

3. The chances of misinterpretation by consumers can not be ruled out.

 A NK YO U
TH