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The company's numerous small local suppliers will help Green Delight to benefit from efficient production costs, which will further allow the company to introduce available prices.
Green Delight intends to offer a diversified range of prepared and packaged organic foods. The main categories of products that will be manufactured and commercialized by Green Delight include: frozen entrees, sauces, salad dressings, soups, desserts, and snacks.
The ingredients used in preparing the company's products will be supplied by small local farms able to provide organic ingredients. These farms are located in the region where Green Delight will produce and sell its products in order to reduce transportation costs.
Green Delight must take into consideration the fact that the main problem that affects organic foods producers is represented by frequent shortages in the supplied provided by small farms. Therefore, it is recommended for the company to establish a relationship with a higher number of suppliers, rather than to rely on a small number of suppliers that can suffer a series of supply shortages, affecting the company's activity.
The company's product range must cove all the prepared foods categories. Otherwise, consumers will turn to conventional foods for satisfying their needs. In this case, it will be difficult to create a loyal customer base that the company can count on.
The packaging of the company's products is also important in attracting customers. The product design must stand out among competitors' products. Also, the product design must show the consumer that these products are natural, organic products.
Given the name of the company, the packaging color will be a natural green. The size of the products is important also. Green Delight products will be commercialized in sizes suitable for one person, and in sizes for the entire family, with a better pricing.
As mentioned above, organic products can be significantly costlier than conventional products. Many of Green Delight's potential customers are price sensitive. Although they want to purchase such products, it is quite unlikely that they will allocate a higher budget for such products, especially during the economic and financial crisis that has affected consumers' incomes.
The fact that Green Delight is able to purchase its ingredients from small local suppliers that practice lower prices in comparison with larger suppliers, will allow the company to introduce smaller prices for its products.
Practicing lower prices than those of competitors' will help the company gain an important number of customers, although the company's profits in the beginning will not be significant, given the lower prices and the reduced number of customers. But the number of buyers will constantly increase, the company being able to create a loyal customer base.
The company's products are differentiated from conventional ones from the beginning. The promotional challenge consists in differentiating Green Delight's products from those of direct competitors'. Given the fact that organic foods present similar trends, like the fact that they are all natural, pesticides were not used in their production, and they are not genetically modified.
Therefore, it is necessary to implement a price differentiation strategy. Green Delight will commercialize its products on local level initially, in order to reduce distribution costs. This economy can be used in practicing lower prices in comparison with prices practiced by the company's competitors.
The company should participate in organic products fairs in order to promote its products. In addition to this, Green Delight should sponsor certain events that take place in the region where the company will commercialize its products.
Green Delight will also have a website where consumers can find information on the company's products and where they can purchase the products they want. The website will also offer a series of recipes that can be prepared using the company's products.
Green Delight's products will be sold in small neighborhood stores specialized in commercializing conventional or organic foods. The company will also try to sell its products large, national organic foods stores.
Large supermarket chains could represent a great opportunity for Green Delight. This is because supermarkets represent customers' favorite shopping locations. Also, the targeted consumers are interested in the availability of Green Delight's products. They want to do most of their shopping in one place, which means that most of them are unlikely of making the extra effort of purchasing Green Delight's products from other locations.
1. Industry Statistics and Projected Growth (2010). Organic Trade Association. Retrieved August 25, 2010 from http://www.ota.com/organic/mt/business.html.
2. Goodchild, S. (2009). Organic food no healthier blow. London Evening Standard. Retrieved August 25, 2010 from http://www.thisislondon.co.uk/standard/article-23725592-organic-food-no-healthier-blow.do.
3. Warner, M. (2005). What Is Organic? Powerful Players Want a Say. The New York Times. Retrieved August 25, 2010 from http://www.nytimes.com/2005/11/01/business/01organic.html?_r=1&hp&ex=1130907600&en=1a66fec0344c8870&ei=5094&partner=homepage.
4. Dimitri, C. & Richman, N. (2000). Organic Foods: Niche Marketers Venture into the Mainstream. Agricultural Outlook. Retrieved August 26, 2010 from http://www.ers.usda.gov/publications/agoutlook/jun2000/ao272f.pdf.
5. Knudson, W. (2007). The Organic Food Market. The Strategic Marketing Institute Working Paper. Retrieved August 26, 2010 from http://www.productcenter.msu.edu/documents/Working/organicfood1.pdf.[continue]
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