MKG701: Market Analysis Case Study of Doorstep Organics

This case study provides an external analysis of Doorstep Organics, an Australian e-commerce marketplace for organic food delivery. The report examines various environmental factors, including political, economic, social, technological, legal, and ecological aspects, and their impact on the company. It explores the company's background, target customers, and the competitive landscape. The analysis highlights the opportunities and threats faced by Doorstep Organics, particularly focusing on the growing demand for organic food and the challenges posed by government policies and regulations. The study concludes with an overview of the company's market position and its ability to adapt to environmental changes.

Market Analysis
Case study of Doorstep Organics
1

Table of Contents
Introduction....................................................................................................................................3
1.1 Industry/ Business Background..............................................................................................3
1.2 Company background..............................................................................................................3
1.3 Local Area Background...........................................................................................................3
2. Environmental Analysis.............................................................................................................3
2.1 Political Environment..............................................................................................................3
2.2 Economic Environment...........................................................................................................4
2.3 Social and Cultural Environment............................................................................................4
2.4 Technological Environment....................................................................................................4
2.5 Legal Environment...................................................................................................................5
2.6 Ecological Environment..........................................................................................................5
3. Target Customers and related demographics...........................................................................5
4. Conclusion - Opportunities and Threats...................................................................................5
References.......................................................................................................................................7
2

Introduction
1.1 Industry/ Business Background
The main purpose of the assignment is to conduct a report on the external analysis of the
Doorstep organics. The company started its business in the year 2013. It is an e-commerce
market place for fruits, vegetables, and groceries in Sydney. License to the doorstep
organics is given by the food community of Australia for delivering goods and services.
1.2 Company background
Doorstep organics is an Australian company that deals in the online business of organic food
delivery. The company has its own mobile application and website on which orders are
placed by the customers. The main mission of the company is to provide a wide range of
organic foods and the convenience of online ordering and front door delivery. It is a more
sustainable food supply chain due to support farming practices that have a favourable
impact on the environment (Rödiger and Hamm, 2015).
1.3 Local Area Background
There is flowing exterior pressure on the Doorstep organics which affects the contribution
and production of the company, to facilitate a deal with consumers successfully. This creates
organisational threats and opportunities on the basis of which the organisation accumulates
and interprets information so that the business can successfully adapt to the environmental
changes (Bernzen and Kristiansen, 2016).
2. Environmental Analysis
2.1 Political Environment
There are various kinds of pressure on the food industry because of the increasing pressure
of government policies. The government wants to make the people aware of the food
products and services as they want to make the population healthy and make many kinds of
policies for the agriculture sector (Grubor and Djokic, 2016). If the government of Australia
3

has the motto of the health policy in the country, then it will help in encouraging the
agriculture sector to grow healthy food products in the country. The doorstep is following all
rules and regulations of the government. There is much legislation the doorstep organics
have to face for the smooth trade agreements.
2.2 Economic Environment
There are various kinds of economic factors that have affected the Doorstep organics such
as inflation, an income of the people, the rate of interest, disposable income, monetary
issues, taxation, unemployment, etc. The Doorstep organics use various channels for
distributing the food products such as they deliver food at the doorstep but along with it
they also sell their products in supermarkets. There is a consistent change in the economic
policies of the government of Australia for economic stability. Sometimes the government
increases the labor cost and the company has to comply with the rules and regulations
(Ueasangkomsate and Santiteerakul, 2016).
2.3 Social and Cultural Environment
There are various kinds of social factors that have an impact on the Doorstep organics such
as eating habits of the people along with it the local food trends. The behavior is a consumer
is complex in respect of the organic food. The behavior of the people is directly linked with
identity, consciousness, environment, and ethics about the food The doorstep organics have
to diversify their product mix to get the cultural diversity of the population and they have to
touch the middle-class people for increasing their sales and profits (Hemmerling et. al.,
2015).
2.4 Technological Environment
The main reason why companies use advanced technology is to get a competitive advantage.
The company has to face various kinds of technological issues from the time of production
to the packing of the final product. Due to advancement in the technology online business is
getting popularity. There are various food delivering companies that use automation
technology for the enhancement of their sales (Hasselbach and Roosen, 2015).
4

2.5 Legal Environment
Each and every company has to comply with the legal requirements to continue the
business. The company can only run the business within the legal boundaries. The Doorstep
has to focus on the company law, environmental law and other necessary regulations for the
smooth running of the business. The company has to check the necessary regulations
regarding the production, livestock products, processing and marketing of the food products.
If Doorstep follows these rules and regulations properly their brand image will increase
(Baudry et. al., 2017).
2.6 Ecological Environment
Factors such as food safety, human health, pollution all kings are kept in mind by the
Doorstep organics. Due to various kinds of regulations and policies of the Australian
government organic food is becoming popular in the country. People now a day prefer a
healthy lifestyle and the top priority of the people is to take healthy food to stay fit and
healthy. Due to global warming, the production capacity of the farmers is also affected but
the Doorstep organics is still trying to provide organic food to the people (Bernzen and
Kristiansen, 2016).
3. Target Customers and related demographics
The main target product of the industry is a grocery. The target of the company is to provide
quality organic food to the customers at the doorstep. As there is a growing demand for
organic food, the company is performing well in this sector. The packing of the food product
is always at the top priority (Willer et al., 2018).
4. Conclusion - Opportunities and Threats
As the organic product sector is catching up the vision of the masses with its dietary benefits
it would contribute towards binging a transformation in the mind set of the consumers
towards consumption of nutritional alternatives over the available market products.
5

As with every thriving business Doorstep Organics would also have to face the scrutinising
eye of the complex policies of the government that could pose as a barrier to the brand’s fast
paced growth.
It is concluded from the above report that Doorstep organics is very famous is delivering
online food at the doorstep to the people of Australia. The company is becoming very
famous as the main mission of the company is to provide organic food. The company
performs within the legal framework formed by the government.
6

References
Baudry, J., Allès, B., Péneau, S., Touvier, M., Méjean, C., Hercberg, S., Galan, P., Lairon, D.
and Kesse-Guyot, E., 2017. Dietary intakes and diet quality according to levels of organic
food consumption by French adults: cross-sectional findings from the NutriNet-Santé cohort
study. Public health nutrition, 20(4), pp.638-648.
Bernzen, A. and Kristiansen, P., 2016. Challenges for Organic Agriculture in Australia:
Getting a ‘Fair Go’. In Postcolonial Justice in Australia: Reassessing the'Fair Go' .
Wissenschaftlicher Verlag Trier.
Grubor, A. and Djokic, N., 2016. Organic food consumer profile in the Republic of
Serbia. British Food Journal, 118(1), pp.164-182.
Hasselbach, J.L. and Roosen, J., 2015. Motivations behind preferences for local or organic
food. Journal of International Consumer Marketing, 27(4), pp.295-306.
Hemmerling, S., Hamm, U. and Spiller, A., 2015. Consumption behaviour regarding organic
food from a marketing perspective—a literature review. Organic Agriculture, 5(4), pp.277-
313.
Rödiger, M. and Hamm, U., 2015. How are organic food prices affecting consumer
behaviour? A review. Food Quality and Preference, 43, pp.10-20.
Ueasangkomsate, P. and Santiteerakul, S., 2016. A study of consumers’ attitudes and
intention to buy organic foods for sustainability. Procedia Environmental Sciences, 34,
pp.423-430.
Willer, H., Lernoud, J., Huber, B. and Sahota, A., 2018, February. The world of organic
agriculture.
7

8