Hills Organic Farm: Business Plan for Malaysian Organic Market

This report presents a comprehensive business plan for Hills Organic Farm, targeting the organic food market in Malaysia. It begins with an introduction highlighting the importance of planning and innovation. The industry analysis reveals the nascent stage of the organic food sector in Malaysia, with a significant portion of demand met by imports. The plan analyzes political, economic, social, technological, environmental, and legal factors, identifying strengths, weaknesses, opportunities, and threats (SWOT). Competitor analysis examines key players like Zenxin Organic Park. Market research focuses on segmentation, targeting strategies (cost leadership), and positioning. Product, pricing, and distribution strategies are outlined, including an Omni-Channel approach. Promotion strategies and a strategic manpower plan are also detailed. The report concludes with financial projections and a discussion of business sustainability, emphasizing the triple bottom line. The report discusses how Hills Organic Farm can gain a competitive advantage by analyzing the market, creating a business plan, and establishing financial projections.

Business management
Hills Organic farm

Introduction
• Effectiveness of the planning process is important to ensure
the long term viability.
• Entrepreneurship ideas should also be innovative enough in
order to gain competitive advantages.
• Organic farming sector of Malaysia will be targeted and the
new venture will be Hills Organic Farm.

Industry analysis
• Organic food industry in Malaysia is still in their nascent stage.
• More than 60 percent of the demand of organic food is met
by importing.
• Competitive pricing of Hills Organic Farm can help in gaining
competitive advantages by the means of cost leadership.
• Total valuation of the organic farming industry of Malaysia is
worth of RM 800 million.

Political factors  Malaysia is having stable political environment with low risks of political instability
 Business friendly political regimes.
 Favorable diplomatic relations with other major economies
Economical factors  Malaysia is one of the most developed economies in the South East Asian regions.
 Market potentiality is increasing
 However, entry of new competitors due to globalization will pose challenge for Hills
Organic Farm.
Social factors  Social globalization is high in Malaysia.
 Customer preference towards the newer and
Technological factors  Being a developed economy, Malaysia is having improved technological infrastructure.
 However, the organic farming sector of Malaysia is not developed and will be challenging
for Hills Organic Farm.
Environmental factors  Malaysia is following stringent regulations regarding environmental protection.
 Hills Organic Farm will face low challenges for having organic approach.
Legal factors  It is important for Hills Organic Farm to follow the legal elements in relation to the
employee management and customer factors.
 Amendments in the legal state will pose challenges for Hills Organic Farm.

Strengths  Hills Organic Farm will be the first domestic producer of organic food
products.
 Cost advantage of Hills Organic Farm over their competitors.
Weaknesses  Being a new entrant, Hills Organic Farm is having lack of expertise in the
market.
 Lack of brand value and identity compared to their competitors.
Opportunities  Increase in the preference for the organic products.
 Opportunity to tap the other neighboring countries.
Threats  Emergence of new competitors.
 Emergence of economic recession.

Competitor analysis
• Some of the major competitors for Hills Organic Farm are
Zenxin Organic Park, TM farms and Titi eco farm resorts.
• The major advantage of them is the brand value and market
presence.
• The economies of scale will also be limited for Hills Organic
Farm due to the high investment involved.

Market research and analysis
• Market segmentation
• Customers aged between 25 and 55 will be targeted.
• On the other hand, customers at the age above 50 will also
prefer the healthy alternatives.
• In the later stage, middle income segment will also be
targeted

Cont.
• In terms of the geographic segmentation, tier I and II cities of
Malaysia will be targeted.
• Tier II cities will also pose higher level of opportunities
• Customers seeking organic products at more competitive
price will be targeted.
• Loyal customer segment will be more targeted.

Targeting strategy
• Cost leadership strategy will be the most effective for Hills
Organic Farm.
• With the help of the cost leadership strategy, they will be able
to attract the larger sections.
• They should also follow the product and service
differentiation strategy.
• It is recommended that the differentiations should be on the
basis of products.

Positioning strategy
• Hills Organic Farm should position their products based on the
price and customer benefits.
• Positioning on the basis of customer benefits will also be
beneficial for Hills Organic Farm.
• This will ensure that distinctiveness for Hills Organic Farm will
be more compared to their competitors.

Product strategy
• Core product level to be offered by Hills Organic Farm is the
nutritional benefits of fruits and vegetables.
• The added benefits to be gained by the customers should get
included as augmented products.
• Market adaptable approach should be followed in offering the
products.
• Initiation of the market adaptable approach will enable them
in offering the products according to the local taste and
preference pattern.

Pricing strategy
• Hills Organic Farm should follow economic or market
penetration pricing strategy in operating in Malaysia.
• Market penetration pricing strategy of them will be
economical in comparison with their close competitors in the
same industry, but it will be premium compared to the
conventional items.
• Offering the maximum value proposition even with premium
pricing will be effective in attracting new sets of customers.