S123 MKT204: Consumer Behavior and Organic Valley Case Study

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This case study, prepared for the MKT204 Consumer Behaviour module, examines consumer perceptions of organic food and analyzes Organic Valley's marketing campaign. The study begins with an executive summary and introduction to organic food, defining its characteristics and highlighting its growing popularity due to increased consumer awareness of health and environmental impacts. Part A delves into consumer perceptions, exploring factors influencing organic food consumption, such as health, environmental concerns, and price. It discusses marketing strategies to communicate organic food benefits, including targeting markets, emphasizing health benefits, using visuals, providing information, offering samples, and utilizing certification labeling. Part B analyzes Organic Valley's marketing campaign, "Call me crazy, but it's working!", identifying how it addressed consumer perceptions. The campaign's focus on health, animal welfare, and environmental sustainability is evaluated, including its use of humor and emotional engagement. The study concludes with an evaluation of Organic Valley's marketing approach, highlighting its strengths in promoting health benefits and addressing negative perceptions, while also suggesting areas for improvement, such as emphasizing taste and quality. The reference section provides supporting sources for the analysis.
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S123 MKT204 Consumer Behaviour and Joint Value Creation
Assessment 2 – Case Study
Consumer perceptions of organic food and Organic Valley’s
marketing campaign
Jafar Chowdhury Rifat
364106
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Table of Contents
Executive summary ....................................................................................................................................... 2
Introduction .................................................................................................................................................. 3
Part A............................................................................................................................................................. 3
Consumer perception of organic food ...................................................................................................... 3
How marketing helps to communicate organic foods to consumers ....................................................... 4
Targeting market ................................................................................................................................... 4
Organic food benefits ........................................................................................................................... 4
Visuals ................................................................................................................................................... 5
Information and Education ................................................................................................................... 5
Sample offering ..................................................................................................................................... 5
Certification labeling ............................................................................................................................. 5
Part B ............................................................................................................................................................. 6
Analyzing Organic valley’s campaign to identify how they addressed consumer perception in their
video marketing campaign. ....................................................................................................................... 6
My overall evaluation on Organic Valley’s marketing approach and how can they improve. ................. 7
Reference ...................................................................................................................................................... 8
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Executive summary
Organic food refers to food produced using agricultural methods that prioritize the use of natural
resources and prohibit synthetic pesticides, fertilizers, or genetically modified organisms. In
recent years, as consumers have become more conscious of health and the environment, organic
foods have become more popular. The organic food market is expected to grow as consumers
become more concerned about food production's environmental and health impacts. However,
organic food can be more expensive than conventionally produced food due to the high cost of
production. Additionally, the health benefits of organic and conventionally produced foods are
still being debated in the scientific community. Overall, organic foods represent a growing
segment of the food industry driven by increasing consumer demand for healthier and more
sustainable food options.
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Introduction
The term organic food means naturally grown food. Basically, the way food is grown. In this case,
without the use of any artificial chemicals, Hormones, antibiotics, or bioengineered genes
(genetically modified organisms). Organic in terms of livestock means organic meat and organic
dairy. This livestock is to be maintained by natural methods. Such as clean housing, rotational
grazing, and a healthy diet. Another point to Add is that livestock must have access to the
outdoors. This type of food product has a more demanding market than usual. The biggest
advantage of organic food is being chemical-free and environmentally friendly. As, a matter of
fact that Australia is the home to the largest area of certified organic land with more than 50%
global total and the total value of the organic market here is AU$2.6 billion. people are now
focusing more on organic foods because of their health benefits and being environmentally
friendly. people’s perceptions are changing day by day. Awareness and health consciousness are
more important to the upcoming generation in the context of food consumption.
Part A
Consumer perception of organic food
In recent years organic food has gained a lot of popularity. And, people are showing a lot of
interest in food that is certified. According to (Rana and Paul, 2017) organic foods are grown,
produced, and processed without using fertilizers, pesticides, animal growth, hormones,
antibiotics, genetically modified organisms, and irradiation. Though most people agree with this,
there are differences in the perception when it comes to consuming organics.
there are some factors on which organic consumption depends. Starting a healthier lifestyle,
being environmentally friendly, and the price are some of the major factors in consuming organic
foods. None less, even the consumer perception of consuming organics varies from country to
country.
People are now more environmentally, socially, and economically oriented. not only people but
also some countries try to follow this trend as a part of being green. And, the most recent
misfortuned example is Sri Lanka where the country made a decision to go green by growing
organic food. Some countries try to follow the trend and even some countries have their own
point of view. Like Greece, compared to other European Countries Greece has a notably lower
food market when it comes to organic foods. And they only purchase organic foods because of
the freshness and appearance alongside thinking of human health, animal welfare, and the
environment. Besides, compared to conventional food consumers are willing to pay 40% more
to buy organic foods.
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There are a lot of reasons for people to buy and consume organic foods. However, there are a
few reasons for not consuming these foods. The limitation of organic foods in the market, the
trust issue in labeling organic food, and even the lack of marketing in organic food. The price is
also a big deal in this case. Among these reasons the main reason is price. comparing to
traditional food.
How marketing helps to communicate organic foods to consumers
It is extremely important to make the products aware to the consumers. And, Marketing plays
can address these types of products to the proper consumers. Different consumers want
different benefits and have different concerns. And, marketing has the capability to provide the
proper information in the proper way.
Making the target audience aware of how the products being sold to them will suit their
requirements while simultaneously solving economic, social, and/or environmental challenges
helps with sustainability communication. Understanding your consumers are most important in
this case. As there are not all customers like to buy organic food and do not have knowledge of
organic food. However, effective marketing can increase the consumer’s understanding of
organic food and enhance their thinking of the quality and benefits of health. Here Are some
effective promotional strategies-
Targeting market
To do that, first of all, one has to understand and find out who are the consumers and who are
the potential consumers. Targeting the right consumer will be more effective. Compared to
conventional food organic foods are a little expensive. Everyone will not pay a premium price in
exchange for high quality and high health benefits.
And, for potential consumers, marketers have to reach them. To make sure that they are aware
of the products. So, they exactly know what to expect and what are they getting by switching
from conventional products to organic food products. Social media, Email marketing can be used
to reach those potential consumers who are interested in organic foods.
Organic food benefits
Organic foods certainly have more health benefits than traditional foods. Mainly because of not
using synthetic pesticides and fertilizers. This is the most powerful selling point for consumers.
Especially for those who are more health cautious and also concerned about the environment.
As food production is accounted for more than 25% of global greenhouse gas emissions. This
Chemical free food production can be a great marketing theme and can be highlighted.
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Visuals
Strong visuals are powerful attractors. it can draw consumers faster than normal advertising. So,
it is highly recommended to use a good quality image to highlight organic foods. Images or videos
that create concern or have a story to make a connection with consumers are appropriate in this
case. Marketers can use this to convey the natural process of organic food products. Encourage
conversation by using social media posts to solicit feedback from consumers and pose questions.
Information and Education
A lot of consumers are not aware of these types of products and even the process of food
production. Marketers have to make sure that the consumers know what are they getting in
exchange for the higher price, what are organic foods, and how can it be beneficial to the
consumer’s health and environment as well. The proper information and knowledge are far more
important to know. Social media is a way to convey this message. However, a more traditional
way to do this is through campaigns. Proper campaigns can enhance proper knowledge.
Sample offering
Sample products are one of the powerful ways to make sure that the consumers are having taste
of the products. How do the products feel, how does the product taste? It also encourages the
consumers to buy the product in the future.
Certification labeling
Labeling a product creates more opportunities for consumers to buy the product. For example,
Halal-labeling products are more sold in comparison to not halal labeled. The same goes for
organic foods. Certified labeling creates more chances of making the consumers aware and
noticing the products more. And, an Authorized body is a fact when it comes to labeling.
In general, the technique to successfully promote organic food goods is to highlight its all-natural,
nutritious, and eco-friendly advantages while selecting the appropriate audience and
utilizing powerful graphics and language.
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Part B
Analyzing Organic valleys campaign to identify how they addressed consumer perception
in their video marketing campaign.
Call me crazy, but it’s working!” is the marketing campaign for organic valley. Which mainly
focuses on promoting food. However, the promotion is mainly focused on health of both human
and animals as well as environment. Keeping all in mind Organic valley used a negative marketing
strategy by focusing on the expense and time consuming. They used those as a promotional way
that why the organic foods are expensive. And, they created a sense in the mind of the customers
that in the exchange of health benefit, environmental fact and the animal health organic foods
are affordable and accessible.
Another major factor is that the way they used to explain those negative factors are actually
humorous. They also tried to show the real deal the farmers, the food packaging all of that.
Started from 5 dollars an hour they used that reference to show how hard they struggle to start
what they believe was no matter what the success was. They showed the chain of command who
are the decision makers of the company. They tried to communicate by engaging in the videos
making fun showing humor.
None the less, a name of a company can represents a lot of things. An easy name with the proper
meaning is typically another best marketing strategy which was also seen in their marketing
campaign.
Emotion is one of the best ways to get the trust and loyalty of a customer. And, in the video
campaign which can be noticed at the very end. They are showing how they care about the health
of the people not only that they are also showing how the animals are being treated and how
cautious they are about their health are. And, the most important thing they are focusing is on
the environment.
Overall, organic valley’s campaign has successfully followed every possible marketing strategy.
Starting from the consumer perception to engaging with them and even the visual images and
videos are also enough to create emotional attachment with the consumer and gain their trust
and loyalty.
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My overall evaluation on Organic Valleys marketing approach and how can they improve.
Organic valley’s marketing campaign was effective in terms of promoting health benefit of
organic food and answering negative perceptions. one of the main focus of promotion was the
negative sides of the organic foods. like expensive, time consuming which they counterfeited
brilliantly by the value of the product and in the cost of the nature as well as the environment.
Creating consumer value was another approach which the campaign also deals very well by
gaining trust using the visual image and video. the real farmers and the food packaging was also
well executed. Brand value is also plays a major role in this case. Organic valley gained a lot of
Brand value after the campaign.
However, there was some noticeable negativity from the campaign which they could have done
better. For example the taste the quality. Conventional food not only have the affordability but
also has the taste as well as has the quality and accessibility. The campaign mainly focused on
the health, environment, visual effects even real farmers and products but they did not show
how the taste will be or even how the quality will be. Considering the consumers this was an
important task to do so.
Overall, Organic Valley's marketing campaign successfully dispels a variety of widespread
consumer misconceptions about organic food while highlighting the firm's dedication to
sustainability and moral business conduct. To win over consumers' trust, the campaign could
benefit from a stronger focus on the environmental and health advantages of eating organic food
as well as more specific details about the company's certifications and business practices.
A way that businesses can enhance their marketing strategy is by putting a strong emphasis on
the customer experience. Businesses can increase customer satisfaction, loyalty, and advocacy
by focusing on delivering a positive customer experience. This can be accomplished in a number
of ways, including by offering excellent customer service, creating engaging content that speaks
to customer needs and preferences, and offering personalized experiences.
Utilizing digital technologies to reach customers is another way for businesses to enhance their
marketing strategies. Businesses now have more opportunities than ever to engage with
customers in meaningful ways thanks to the growth of social media, mobile technology, and
other digital channels. Companies can develop targeted campaigns that reach customers where
they are most likely to interact by utilizing these technologies.
In conclusion, effective marketing strategies involve understanding customer needs and
preferences, creating a strong brand identity, developing compelling messaging, and leveraging
multiple channels to reach customers. Companies that focus on customer experience and
leverage digital technologies are likely to see positive results in terms of increased brand
awareness, customer engagement, and sales.
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Reference
ELeni Malissiova, Konstantina Tsokana, Georgia Soultani, Maria Alexandraki, Antonios Katsioulis,
Athanasios Manouras, Organic food: A Study of consumer perception and preferences in Greece.,
Applied Food Research, Volume 2, Issue 1, 2022, 100129, ISSN 2772-5022,
https://doi.org/10.1016/j.afres.2022.100129.
(https://www.sciencedirect.com/science/article/pii/S2772502222000890)
Mohamed Bilal Basha, Cordelia Mason, Mohd Farid Shamsudin, Hafezali Iqbal Hussain, Milad Abdelnabi
Salem, Consumers Attitude Towards Organic Food, Procedia Economics and Finance, Volume 31, 2015,
Pages444-452,ISSN2212-5671,https://doi.org/10.1016/S2212-5671(15)01219-8.
(https://www.sciencedirect.com/science/article/pii/S2212567115012198)
Rosa Schleenbecker, Ulrich Hamm, Consumers’ perception of organic product characteristics. A review,
Appetite, Volume71,2013, Pages 420-429, ISSN 0195-6663, https://doi.org/10.1016/j.appet.2013.08.020.
(https://www.sciencedirect.com/science/article/pii/S0195666313003784)
Shafie, F. A., & Rennie, D. (2012). Consumer Perceptions towards Organic Food. Procedia - Social and
Behavioral Sciences, 49, 360-367. ISSN 1877-0428, (https://doi.org/10.1016/j.sbspro.2012.07.034.)
(https://www.sciencedirect.com/science/article/pii/S1877042812031308)
Sandile Mkhize, Debbie Ellis, Creativity in marketing communication to overcome barriers to organic
produce purchases: The case of a developing nation, Journal of Cleaner Production, Volume 242, 2020,
118415, ISSN 0959-6526, (https://doi.org/10.1016/j.jclepro.2019.118415).
(https://www.sciencedirect.com/science/article/pii/S0959652619332858)
Badgley, C., Moghtader, J., Quintero, E., Zakem, E., Chappell, M. J., Avilés-Vázquez, K., … Perfecto, I. (2007).
Organic agriculture and the global food supply. Renewable Agriculture and Food Systems, 22(2), 86–108.
http://doi.org/10.1017/S1742170507001640
The Food Company Crazy Enough To Change Everything | Organic Valley. (n.d.). Www.youtube.com.
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We Put Fitness Trackers on Cows | Organic Valley. (n.d.). Www.youtube.com. Retrieved April 23, 2023,
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2
Milk made from Sun, Soil, Rain and Grass | Organic Valley Grassmilk. (n.d.). Www.youtube.com. Retrieve
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6
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7
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ex=8
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Why Organic Food Costs More | Organic Valley. (n.d.). Www.youtube.com. Retrieved April 23, 2023, from
https://www.youtube.com/watch?v=111jhH8qo0k&list=PLJFVenNAkRyz3DetTaDsDfiKJV9JWNlTy&index
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