Principles of Marketing: Organic Food Market Analysis

Principles of Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAINBODY...................................................................................................................................3
Product Description.....................................................................................................................3
Market Analysis...........................................................................................................................4
Key market trends........................................................................................................................5
Current customer attitudes...........................................................................................................5
Key competitors and their positioned..........................................................................................6
STP Analysis...............................................................................................................................6
Recommended marketing mix..................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing can be defined as the activities of a business undertakes to influence the
purchasing or selling of a goods or services. It includes commercialization, selling and supplying
products to users or other companies. It is important because it supports to sell goods or services.
It gives high contribution in the development of economy and influence it’s living standard of
living. It follows different functions such as advertising, direct selling, packaging, transportation
etc. enhance job opportunities for the large group of people and stimulates growth of business.
To understand significance of marketing has an example Tesco company. It is a British
multinational grocery company which is famous as a general merchandise retailer across the
world. the brief study provides understanding aboutnew products and it’s scope in the market in
this report.
MAINBODY
Product Description
Tesco company has wide products line such as clothing, financial service, mobile
services, home furniture, ready-made food items, groceries and others and trades it’s product
across the world to the customer. It operates in wide number of markets such as supermarket,
hypermarket, conventional shop and retail stores. Due to high availability of it’s stores around
the world easy to retail large number of products by the Tesco in the global market. To capture
large market share of the product has planned to launch new product. The new product is organic
product that has wide scope in upcoming years (Amaral, 2017). There has a reason that causes it
decides tom launch this new product such as young generation becomes health concern so they
avoid to take fatty food. So, it has made plan to launch this new product which has pure
nourishments and minerals. Organic foods farms without using of artificial chemical, hormones
and antibiotics as result impacts on user’s health positively. This food comprises artificial
sweeteners, preservatives, colouring, flavouring and monosodium glutamate that reduces fatness
in users’ body as well as improves immunity power of them. It contains more nutrient as
compared non-organic foods. It contains 58% more antioxidant and up to 52% higher amount of
vitamin that is quite high as compared non-organic foods. (Cagalj, Haas and Morawetz,
2016)Overall, it has full enrichment of proteins, minerals, antibiotics and others which gives

positive impact on consumer’s health. Organization keeps wide range variety in organic products
such as organic groceries, organic ingredients/spices, ready-made organic food items and others.
such kind organic food varieties help company to gain competitive advantage in the business
market and builds sustainable brand image between customers.
Market Analysis
Opportunities for the new product in the market
Currently, organic product is highly demanded product in the global market and has wide
scope in upcoming years. There are some other factors such as demographical changes, political
stability, unemployment rate, education level, disposable income, foreign exchange rate,
environmental factors and legal factors etc. these factors can impact on Tesco’s new products
positively and negatively. For example, political stability in UKfrom past few years that explores
opportunities for the Tesco because it can expand itsnew products in the different market at a
time. It has made plan to launch organic products which is promoted by UK’s government as
well because it is effective initiativeto overcome pollution and improves quality of customer’s
life. It includes recession period, tax rate and unemployment rate etc. are economic factors that
impacts on organization’s operation. For example, High unemployment rate gives positive
impacts on organization’s new products because Tesco gets chance to strong supply chain by
recruiting large group of people in the workplace (Chong, Han and Park, 2017). Additionally,
there has high unemployment rate so people has willing to work on lower wages. Thus, company
easy to enhance demand of the organic products in the UK market effectively. Government is
highly concerned for the environment issues and climate change so it has imposed sustainable
product or services policies. It proves beneficial opportunity for the organization because it is
going to launch organic products. therefore, government also supports Tesco by offering
distribution facilities. With new product Tesco comply with health and safety policy which is
imposed by FDA to keep people safe from unsafe or contaminated foods. Such kind
characteristic of organic foods helps to build brand image in the business market and impacts
customer’s choice positively. These are the major opportunity of organic food which can get in
the UK market to the company.
Issues for the new products in the market