Part 1 - Executive Summary
Most people are in need of organic foods which do not have any chemicals. Establishing an organic food supermarket will be able to provide the fresh fruits and vegetables to the people. The business will be hoping to offer best-quality feeds to the people which will promote their wellness. The venture is hoping to make profit through distributing the organic food and promote the environmental wellness. The potential growth of the business is diversifying through providing the food material, producing their own suppliers and manufacturing natural products such as creams (Canavari and Olson, 2007).
When carrying out organic food business, it is necessary to first analyze the customers. These foods are very perishable and cannot be stored for long. While considering starting a business on selling the organic foods, a ready market is necessary to avoid total loss. Organic food supermarket is the name of the business whose mission is the provision of high-quality, natural, fresh and healthy food. The staff members of the business are friendly, ready to educate and eager to serve the clients. There are objectives which guide the business such as offering the clients with the organic grown and freshest vegetables and fruits; the foods should be with no additives such, colors and flavours; and supporting organic farming practices which promote water and earth purity.
The examples of the organic foods available in the supermarket are the fruits, vegetables, grains, legumes, meats, poultry, dairy products and eggs. There is also another small section where ready to eat food is provided. The market is easily accessible and the prices are affordable.
Part 2 - Market Analysis
Inorganic foods have been associated with health issues thus making people to result to organic suppliers. Bearing in mind that there is a ready market, the organic food supermarket will be successful. There might be barriers from the government since production has be to approved as some chemicals used in production causes health problems.
SWAT Analysis
The opportunity is the availability of a ready market and the strength is that the organic feeds are rarely associated with health problems.
The threat is production using some chemicals which have adverse effects and the weakness is the competition from the grocery stores.
Organic food supermarket aims to distribute the food using main methods which are delivery to the customers and direct-to-consumer distribution, where the customer visit the market and get their supplies, which is a strength.
For the business to be successful, the management carried out research on the consumer preferences over time. Consumers’ requirements are known to change over time, and there is a need for the venture to be updated to make sure that the customers are satisfied. The market analysis is comprised of the suppliers and the buyers.
Organic food production is not an easy process as the manufacturing company. It is, therefore, necessary for the organic food supermarket to make sure that they are always updated on the best producers. The suppliers should be able to provide the required organic foods all through, in the correct amount to satisfy the clients and produce high-quality foods which will keep the customers keep coming for more. The marketing team is in charge of carrying out the market analysis to help determine the competitors the supermarket has to face and methods which can be carried out to improve customer satisfaction. It as well helps determine the best suppliers (Wiswall, 2014).
Part 3 - Market Area Characteristics
There are various characteristics found in the organic food supermarket. They are competition, technology, and the socio-political environment. The socio-political environment describes the changes in trends and attitudes of consumption. Some of the vegetables and fruits can be substituted for others. There are times when people prefer the cabbages, and they can consume them in large amount for about two months. The clients then shift to spinach and kales and abandoned the cabbages. There are those who would prefer to use the green or the red tomatoes depending on their tastes.
SWAT Analysis
The opportunity in the supermarket is the use of technology has improved the entire business at the organic food supermarket. The clients who are far can book and pay for the fruits and vegetables they require using the internet. It eases the entire process where the customers are expected to queue for the transaction. The venture can adapt to the technological changes through educating the staff members and educating them about the importance of adopting the improved technology.
The primary competitors of the organic food supermarket are the grocery shops located in the same geographical area and they are the threats to the business. They are able to offer the same services to customers and operate much faster since clients do not have to queue for the transaction. It is estimated that on daily activities, there will be about 150 customers who will be buying their supplies from the supermarket.
Part 4 - Competition Analysis
The major direct competitions are the Monoprix which is located in the west bay, grocery stores which can offer almost all foods and fruits to the customers. There are also other suppliers who produce their own organic foods and are thus cheaper compared to the supermarket. They are located near the supermarket and theses suppliers are able to keep their products fresh since they do not get too many products for selling. Competition is also got indirectly from the canning industries. There are other markets which are distribution centers which offer competition. They can produce fruits and vegetables and prepare them in a way that they are ready for consumption without preparation or cooking. There the customers who would prefer the canned food to the fresh organic food since they do not have the time to prepare and cook it (Wiswall, 2014).
With the major competitors, the quality of the organic food supermarket is much higher since they guide the production of the vegetables and fruits they will be offering the people. The size of the supermarket is also high and has built its own reputation of being the best distribution center of organic foods in the region. From watching the competitors, the supermarket has been able to determine that most clients prefer the grocery stores since the transaction is faster, thus creating a chance to determine improvement methods.
Part 5 - Target Market
Homes, small grocery stores and school around the area where the supermarket is located are the target market. There are the homes where the members are vegetarians, and it is the duty of the supermarket to determine those families so that they can keep them satisfied always. The owners of the small groceries at times find it hard to get their suppliers which are a fresh ad of high-quality (Wyshak, 2014).
The supermarket has made different business deals with several small grocery owners and able to get their supplies from the organic food supermarket. Schools, both primary and high schools which provide food for the students require green vegetables and fruits get their supplies from the supermarket. The organic food supermarket is involved in its production of these foods, and they produce in lots of amounts. To avoid spoilage, they can distribute some to the supermarket itself, different homes, small grocery owners, and schools.
Demand Analysis
Demand will be created by the homes, small grocery stores and school around the area. The weakness of the demand analysis is that the consumer tastes change over time and if the business is not aware, they may experience a loss. The buying decision is influenced by the occupation of the buyers that is those who have the time to prepare their organic food and those who would prefer the inorganic foods. For the people to buy from the company, they need convincing of the benefits they will get, such as health benefits.
Part 6 - Marketing Plan
The marketing plan of the organic food supermarket analyzes how the activities are carried out and the guidelines to increasing profitability. The objectives the business hopes to achieve are the offering foods to their clients which do not contain ant artificial additives, flavours or color. The venture aims at supporting the organic farms in the duties of keeping the water and earth pure. The business hopes to sell natural, pure supplements, earth-friendly cleansers and body care product without negative effects. Offering the customers the most fresh and organically grown vegetables and fruits is the priority of the supermarket.
The mission statement of the supermarket is the friendliness and eagerness expressed by the staff as they offer the high-quality, natural, wellness, health and fresh foods and products. The vision of the business is promoting environmental friendliness through production without the use of chemicals that might destroy the water and the surrounding. The business hopes to get as many people as possible in the area to consume the green products since they will be beneficial to their health more than the canned foods. It will not increase the profits but promote the wellness of the people.
Part 7 - Supply Situation
Organic food supply is got from the farmers who deal with the production of the organic material. Before buying any distribution material, the organic food supermarket should be able to carry out research on the producers and the methods they used. Organic food should not contain any chemicals, and it should be produced using organic fertilizers. It is necessary to carry out research on the producers before deciding on the best to choose. The producers should have chosen the best production materials and used methods without chemicals use thus the yields will be healthy, fresh and of high-quality (Wyshak, 2014).
Without the suppliers, the organic food supermarket cannot function, since it will not be able to provide the required foods to its customers. It is necessary for the business to think of producing their organic foods and be their own suppliers since they are assured of high-quality products and never lacking distribution fruits and vegetables.
Part 8 - Project Site/Area Location
The location area will be in a town near a farming community, in the mini markets in different areas of Doha such as in Al Dafna and Al Tumama. The strategic location is supposed to ensure the suppliers can access the supermarket easily, from the community and the buyers in the town areas can get their supplies faster. Establishing the supermarket in the town is meant to attract most customers, since in the community; most people grow their organic foods and are not likely to buy from the supermarket. Transport is known to be most improved in the town areas thus making the business operations much easier. Placing the organic food supermarket strategically will increase profitability.
Part 9 - Operations and Human Resources
Organic food supermarket will mostly be dealing with people. It is necessary to manage the human resources wisely so that they can satisfy the clients and maintain them. It is necessary to take the staff members through proper customer treatment. The customers are known to bring the profit to the venture, and they should be treated right. The team members should be engaging and encouraging interactive relationships to make sure that all the clients get what they want without any complaints. There should be ethics which guides all the staff in the supermarket, such as being honest on the prices of the fruits and vegetables and reliable, to guide the customers and direct them throughout the shopping period.
Part 10 - Financials
Financial analysis is paramount in the business as it will help determine the assets and the liabilities the business has initially and the improvements over time. The income statement and balance sheet will be necessary for the analysis and show the business where it stands financially. Financial analysis is as well helpful since it will assist in establishing the sources of financing in case of need, the economic assumptions, and the return on investment. At organic food supermarket, a financial analysis team should be established and always consulted before making any decision in relation to funds (Gitman and McDaniel, 2008).
Part 11 - Risk Assessment
Production is very uncertain. The crops can be attacked by pests, diseases or lack of rain thus failing the entire planted green materials. Before planting, it is necessary to look into the and prepare it in the right way, while choosing the materials for planting, it is critical to making sure that they are certified, resistant to pests and diseases and can grow faster due to changes in seasons. The organic materials are very perishable, and on producing, it is important to be sure that there is a ready market (Canavari and Olson, 2007).
These goods have to be consumed immediately so that they do not go to waste. It is necessary to consider transportation methods which will be fast and ensure the organic materials get to the market as fast as possible. Production should not use any chemicals such as fertilizers since they are known to destroy the organic nature of the feed. Therefore, it is necessary to determine the best natural production measures which will not have any adverse effects on the consumers after they take the organic foods.
Part 12 - Conclusions & Implementation
There are various parts that need to be looked into to make sure that the business does not lose its customers. Starting with the measures of the transaction, where there should be the implementation of methods which does not include customers waiting for long to be served. Diversifying the business should be implemented as well. The supermarket should not only deal with food materials but also green products such as creams. It will attract more customers, even those who prefer the canned foods (Gitman and McDaniel, 2008).
In conclusion, the success of the organic food supermarket is dependent on how it carries out its duties. The most important part is the market analysis which will determine the position of the business in the market and comparison to the competitors, the suppliers, and the buyers. It will help acknowledge the measures which can be adapted such as improved technology to gain a competitive advantage in the organic food market. The entire planning of the business should consider finances which are being put in the venture and the risks which might be encountered. For the organic food supermarket to achieve its objectives, planning wisely will be necessary, considering the market, suppliers, and buyers, who are considered the most crucial part of business.
Appendices
Appendices A: Supporting Documents
Shaffer, E. (2016, September 19). Food Business News. Retrieved January 16, 2017, from Certified organic food gaining ground: http://www.foodbusinessnews.net/articles/news_home/Consumer_Trends/2016/09/Certified_organic_food_gaining.aspx?ID=%7B5D80508E-BF84-4B6D-880B-E7E9C5409B90%7D&cck=1
Watrous, M. (2016, March 14). Food Business News. Retrieved January 16, 2017, from Four trends driving growth in organic: http://www.foodbusinessnews.net/articles/news_home/Business_News/2016/03/Four_trends_driving_growth_in.aspx?ID=%7BA97BA0C1-E1AA-408E-AF06-297C080DC834%7D
Watrous, M. (2016, May 19). Food Business News. Retrieved January 16, 2017, from Organic market reaching new heights: http://www.foodbusinessnews.net/articles/news_home/Business_News/2016/05/Organic_market_reaching_new_he.aspx?ID=%7B080CBB95-C025-424D-9E0E-C8EF94DA910B%7D
Appendices B: Reference Sources
Canavari, M., & Olson, K. D. (2007). Organic food: Consumers' choices and farmers' opportunities. New York: Springer Science+Business Media.
Gitman, L. J., & McDaniel, C. D. (2008). The future of business: The essentials. Mason, OH: Thomson South-Western.
Wiswall, R. (2014). The organic farmer's business handbook: A complete guide to managing finances, crops, and staff - and making a profit.
Wyshak, S. (2014). Good food, great business. San Francisco, Calif: Chronicle Books LLC.
Appendices C: Visuals and Pictures
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Appendices D: Plans and Layouts
Plans
Research on improved farming methods with least use of chemicals in production
Research on the market preferences and changes in consumer trends
Layouts
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