S119 MKT210: Organic Food Consumer Behavior Case Study Analysis

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Case Study
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This case study delves into the evolving landscape of consumer behavior within the organic food market, examining the factors that influence consumer perceptions and purchasing decisions. It explores the importance of marketing strategies in shaping these perceptions and driving demand for organic products. The assignment includes an analysis of Organic Valley's marketing campaign, evaluating its effectiveness in reaching consumers and promoting organic food choices. The analysis considers the company's approach to branding, advertising, and its overall message, assessing its strengths and weaknesses in relation to consumer behavior principles. The study also evaluates the campaign's alignment with consumer motivations, emotions, and comprehension processes. The report also provides recommendations for improving the campaign's impact and effectiveness in a competitive market.
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Running Head: ORGANIC FOOD CONSUMER BEHAVIOUR
ORGANIC FOOD CONSUMER BEHAVIOUR
Name of the Student:
Name of University:
Author Note:
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1ORGANIC FOOD CONSUMER BEHAVIOUR
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Consumer perception...................................................................................................................2
Importance of organic food marketing........................................................................................3
Organic Valley’s campaign.........................................................................................................5
Evaluation....................................................................................................................................5
Conclusion.......................................................................................................................................6
Reference.........................................................................................................................................8
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2ORGANIC FOOD CONSUMER BEHAVIOUR
Introduction
The growing demand of the organic foods in the international market creates a great
value for the food manufacturing farms to pose great deal of focus on the organic food
manufacturing. As per the report of Chang et al. (2015)b the organic food market will expand at
a rate of CAGR of 14.8% within the year 2022. One of the major concern is of course related to
the health consciousness of the customers. Therefore, people are not bothered about the price of
the food products. They are more interested to buy good and best quality products. The Asia-
Pacific region is considered to be a best example of such transformation into the buyers’
behaviour that forced the food manufacturing and distributing companies to change the direction
of the business towards organic food products. Based on this understanding, this research is
going to take a great deal of investigation on the changing buyers’ perception and the importance
of the organic food market. The discussion further carries out the analysis of the Organic
Valley’s campaign on organic food products and evaluate the campaign with highlighting the
pros and cons of the campaign.
Discussion
Consumer perception
According to the research of Tiago and Veríssimo (2914) it can be stated that there are
some expectations of the consumers that push them to buy organic products. For an instance, the
safety of the product, price and the environmental production process are the primary concern for
the customers before buying organic food products. In the research of Dahnil et al. (2014) the
safety issue of the organic food products was illustrated clearly. The research found that the
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3ORGANIC FOOD CONSUMER BEHAVIOUR
highly health consciousness and the religious factors are playing significant role in order to push
the customers to buy organic products. Most of the consumers are willing to buy food products
that have less chemical preservatives, pesticides and genetically modified ingredients.
Moreover, price is also considered to be an important aspect that also influences the
customers. Therefore, opting for high price can lead to the disruption in purchasing the products.
The same thing happens with the organic food products where the price of the foods is
comparatively high. Through the research of Ashley, C. and Tuten (2015) it can be stated that the
purpose of the organic products creates a totally different consumer behaviour where the people
are interested to buy organic products despite of having high price. Moreover, the high price of
the organic food products is justified because of its enormous food safety, tasted and the natural
conservation
In addition to this, Connolly and Klaiber (2014) opined that the high nutrition value of
the organic products is helpful to keep a track on the healthcare check up. In fact, an amicable
relationship between the environmental and animal welfare factors are also played important part
in the process of making organic food products.. The friendliness between the customers and the
organic food products create a big opportunity for the organic products. The practice of
environmentalism, alter native medicine and the prevalence of vegetarianism attracts more
customers.
Importance of organic food marketing
It can be argued that due to huge market demand and the opportunity of further
profitability the giant business organisations are trying to capitalise the market with their own
organic food products. Nuttavuthisit, K. and Thøgersen (2017) opined that previously the organic
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4ORGANIC FOOD CONSUMER BEHAVIOUR
food products were used for the substantial purposes. It means the farmers are using the less
pesticide used products for their own needs. Therefore, there were least chances for the
customers to get the organic products on a regular basis. Moreover, the customers were
stigmatised with the impure and less healthy food value of the organic food products (Meas et al.
2014 ). Therefore, they were more concerned to buy products with high use of pesticides and
other materials. In course of the growing trend of the diseases and health related issues made the
consumers to shift their gaze from the traditional food products and they are now highly
convinced to buy products that are organic. Therefore, it is important for the business
organisations to create an exposure of the organic food market through the effective channels of
marketing.
On the other hand, the big companies are started to grab the advantage of the new market
opportunity of the organic food products. As a result of that, domination of the big companies
over organic products has been a growing nature. Despite of that many of the customers are
sceptical about the intervention of the giant foods companies in the organic market (Willer,
Lernoud and Kemper 2018). It questioned the authenticity of the organisation to offer organic
food products. As a result of that it becomes pertinent for the business organisation to conduct
effective marketing so that it will be able tio convince the customers to buy products. (Buder,
Feldmann and Hamm 2014) Besides this, the elderly people are not convinced yet to buy
organic products as they though those are rotten and less healthy value. Simultaneously, the
youths are also incapable to buy organic products because of the high price feature of the organic
food products. Henceforth, it is the responsibility of the business organisations to set up
marketing effectively in order to maximise more and more customers.
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5ORGANIC FOOD CONSUMER BEHAVIOUR
Organic Valley’s campaign
Organic Valley is pledged to offer only the organic products to the customers. It means
there is no use of harmful chemical pesticides or the genetic use in the products. The sustainable
approach with a high quality of food is the sole purpose of the organisation. As a matter of fact,
the organisation also pays respect to the US government regulations or the USDA organic rules
firmly. The company was initiated its business in the 1980s and gradually expanding its business
and profitability as well. on the backdrop of its success story, Organic Valley portrays a social
message to the consumers that environment is the most crucial part in human life. Therefore, it is
important to prevent it from further degradation. (Burns 2019) This benevolent approach of the
company was also depicted in its marketing campaign. Organic Valley is highly believed in
tradition and therefore using traditional advertisement through television. The purpose of the
organisation with its aims and objectives are reflected with the advertisement where all the
member farmers are sharing their experience clearly. In fact, the company does not have any
specific organisational structure (Organicvalley.coop 2019). It is more of a organisation that puts
more stress on its quality and sustainability of the products rather than earning profitability. The
dress up of the farmers was also normal and they are intended to bring more sustainability
measures in their performances. From that point of view, the advertisement is very simple but
gave a message of sustainable business practice that can easily attract the customers and
maximise the number of customer rapidly.
Evaluation
The advertisement is highly effective and put a great blow to the use of artificial
chemicals that can bring health issues positively. One of the major feature of the advertisement is
that the approach to the rest of the world how beautiful is the world and it is important to save
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6ORGANIC FOOD CONSUMER BEHAVIOUR
the greens by using organic products. The long shots of the valley covered with green grass and
pastures made it more soothing and comfortable enough to get convinced that the organisation is
doing so well. A confident and effective approach that Organic Valley is trying to establish in
order to bring more realistic touch in their product by showing the CEO sat on a bench and
describing the history and agenda of the company. Through the advertisement the company also
mentioned that there is no corporate hierarchy within the organisation and all of them were only
partners. It brings them more close to the customers that they can feel to buy products direct
from the farmers rather than eating the processed foods. Showing the large cattle hard and the
green backdrop was showing a clear threat to the non-organic companies who are alleged to use
poor quality of chemicals in the foods and vegetables that are never good for health.
However, there are some cliché shots that advertisement was projecting like the use of
car and documentation. In fact, using the social sites are also going to be effective for Organic
Valley to establish its market within a short span of time. As per the research of Chang, Yu and
Lu (2015) the social media advertising has become the most effective tool for achieving success
in the high competitive market. Therefore, Organic Valley can also use their social media
platforms for this advertisement and could try more unique portrayal of their day to day business
activities.
Conclusion
From the above discussion, it can be argued that the organic food market is highly
significant for the business organisation to shift its business orientation towards developing a
sustainable development. However, the process is firmly based on the customer behaviour and
for this effective marketing and advertising is also required. In this context, the report analysed
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the marketing strategy of Organic Valley and tried to make better penetration into the market for
organic food sales. Henceforth, it can be argued that the report is highly relevant and significant
enough to describe the important of suitable business in highly competitive market.
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8ORGANIC FOOD CONSUMER BEHAVIOUR
Reference
Ashley, C. and Tuten, T., 2015. Creative strategies in social media marketing: An exploratory
study of branded social content and consumer engagement. Psychology & Marketing, 32(1),
pp.15-27.
Buder, F., Feldmann, C. and Hamm, U., 2014. Why regular buyers of organic food still buy
many conventional products: Product-specific purchase barriers for organic food
consumers. British Food Journal, 116(3), pp.390-404.
Burns, W. 2019. Organic Valley's New Ad Campaign Is As Wonderfully Organic As The Foods
They Produce. [online] Forbes.com. Available at:
https://www.forbes.com/sites/willburns/2017/09/20/organic-valleys-new-ad-campaign-is-as-
wonderfully-organic-as-the-foods-they-produce/#953a86046cb6 [Accessed 11 Apr. 2019].
Chang, Y.T., Yu, H. and Lu, H.P., 2015. Persuasive messages, popularity cohesion, and message
diffusion in social media marketing. Journal of Business Research, 68(4), pp.777-782.
Connolly, C. and Klaiber, H.A., 2014. Does organic command a premium when the food is
already local?. American Journal of Agricultural Economics, 96(4), pp.1102-1116.
Dahnil, M.I., Marzuki, K.M., Langgat, J. and Fabeil, N.F., 2014. Factors influencing SMEs
adoption of social media marketing. Procedia-social and behavioral sciences, 148, pp.119-126.
Meas, T., Hu, W., Batte, M.T., Woods, T.A. and Ernst, S., 2014. Substitutes or complements?
Consumer preference for local and organic food attributes. American Journal of Agricultural
Economics, 97(4), pp.1044-1071.
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9ORGANIC FOOD CONSUMER BEHAVIOUR
Nuttavuthisit, K. and Thøgersen, J., 2017. The importance of consumer trust for the emergence
of a market for green products: The case of organic food. Journal of Business Ethics, 140(2),
pp.323-337.
Organicvalley.coop, 2019. Our Humble History | Organic Valley. [online] Organicvalley.coop.
Available at: https://www.organicvalley.coop/about-us/our-humble-history/ [Accessed 11 Apr.
2019].
Tiago, M.T.P.M.B. and Veríssimo, J.M.C., 2014. Digital marketing and social media: Why
bother?. Business horizons, 57(6), pp.703-708.
Willer, H., Lernoud, J. and Kemper, L., 2018. The world of organic agriculture 2018: Summary.
In The World of Organic Agriculture. Statistics and Emerging Trends 2018 (pp. 22-31).
Research Institute of Organic Agriculture FiBL and IFOAM-Organics International.
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