1. SP54966563

2. 2
Executive Summary
Around the world, in recent time, the interest in organic food items seems to have extended
rapidly. It is empowered by buyer observations that organic items are preserved, perfect and
correct. The development rate was evaluated to be around 20% for every revoke in the following
couple of years, with deals achieving $US 50 billion in 2020. The greatest development in
utilization has happened in developed nations, for example, the UK, the US, and several Asian
countries (like Japan, Singapore, etc.). Those are likewise real merchants of organic food. It is
clear that Australia, customarily a noteworthy exporter of farming items, endures profiting by the
development in the search for organic food items. The target of this paper is to give a description
of the Australian organic food company (“Organic Origins”), including it formulation,
promotion, and accreditation of organic food. The paper is surveying the possibilities of this
organization in the world's business sector and will give some recommendation for its future
growth. Real issues confronting the “Organic Origins” are considered, and future analysis is
recognized. Marketing segment issues incorporate the inadequate production base and
transformation to organic sustaining while marketing mix issues concentrate on costs and item
probity.

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Table of Contents
Executive Summary........................................................................................................................ 2
Table of Contents............................................................................................................................ 3
Table of Figures .............................................................................................................................. 4
Introduction..................................................................................................................................... 5
The Organic Food Market............................................................................................................... 6
Marketing Environment .................................................................................................................. 7
Micro Environment ..................................................................................................................... 7
Producers ................................................................................................................................. 7
Retailers ................................................................................................................................... 8
Customers ................................................................................................................................ 8
Buyers ...................................................................................................................................... 8
Sectors...................................................................................................................................... 8
Macro Environment..................................................................................................................... 8
Political.................................................................................................................................... 9
Economic ............................................................................................................................... 10
Social ..................................................................................................................................... 10
Technological ........................................................................................................................ 10
Environmental........................................................................................................................ 10
Legal ...................................................................................................................................... 10
Market Segment ............................................................................................................................ 11
Customer’s Behaviour According to Market Segment................................................................. 13
Marketing Mix .............................................................................................................................. 16
Conclusion .................................................................................................................................... 19
Recommendation .......................................................................................................................... 20

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References..................................................................................................................................... 21
Table of Figures
Figure 1: Micro Environment of Organic Food Market, followed by Organic Origins ................. 7
Figure 2: Macro Environment in Organic Food Market, followed by Organic Origins ................. 9
Figure 3: Major Market Segment of Australian Organic Food Industry ...................................... 12
Figure 4: Market Segment Followed by Organic Origins ............................................................ 13
Figure 5: Market Segmentation Strategy of Organic Origins....................................................... 14
Figure 6: Product Mix Strategy followed by Organic Origins ..................................................... 16

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Introduction
Organic food in Australia has accepted expanding consideration from administrators,
government, and industry associated with the numerous parts of the globe. It is working since
last two decades due to the numerous apparent development that it gives. As per production
aspect, it is perceived to contribute a few solutions to the ecological concerns that have been
correlated with routine farming issues in the developed nations. A few governments have
assumed a dynamic part in supporting organic food items. Accordingly, the quantity of makers
changing over to organic farming generation has expanded essentially in a few nations,
especially in Australia “Organic Origins” is likewise seen to be conceivably advantageous to the
developing nations by extending several possibilities to the world business sector (Essoussi &
Zahaf, 2014).
For the promotion aspect, the interest for organic food has extended immediately worldwide. It is
supported by various improvements over the previous decades. The first of these is the uplifted
consciousness of the connection between eating habit and health consciousness. The second
component is the modern adaptation of extremely distributed food cautions, which incredibly
expanded buyer knowledge and attention for food quality. Another substantial contribution point
for organic food is the apparent ecological advantages. At last, the verbal confrontation over
"genetically modified (GM)" food has given further stimulus to organic food items. The organic
testimony blocks the utilization of GM substances. Other critical elements are the inexorably and
focused on advertising and advancement by the standard retailers and significant food makers.
So, they move into organic product libations. Nonetheless, regardless of the general uplifting
viewpoint, there are potential dangers that might thwart the future development of the organic
area (IBISWorld, 2016).
So, the “Organic Origins” administration is addressing whether the present reinforcement for
organic food is a prevailing fashion or a strong pattern that will proceed. The inquiry is being
raised due to the potential clashes between interest patterns for comfort and liberality. There are
worries over food wellness and nature. In light of these irreconcilable situations, customers are
not inexorably steady in their buying manner with regards to individual utilization. In reality,
they might say one thing however accomplish something different.

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The Organic Food Market
These days, sustainability is getting to be one of the primary social issues in the business field.
Authority from financial specialists, it is cuttings the product costs. It is having advancement of a
positive picture, and the capacity to charge the people mind towards organic food. “Organic
Origins” is the real world example. The issue of sustainability is additionally presuming that
corporate social obligation in the food retailing industry is deciphered to support the nearby food
makers. It also includes reasonable exchange, adhering to a good diet, and duty to organic items.
For some purchasers, neighborhood farmers support is viewed as a socially dependable conduct.
In this case, “Organic Origins” is privately developed in the market of organic food (Chang,
Griffith, & Zepeda, 2012). An expanding number of organic customers like to have local food
which comes from a sustainable company. Those are in direct connection with their inspiration
to purchase organic food from “Organic Origins”.”
Organic product frameworks are those who are cultivating the food without any utilization of
counterfeit manures and chemicals. Those are having a high level of eco-friendly substances. In
“Organic Origins”, organic cultivation is designated as management methods that form soils
enriched to produce quality organic food. It is always measured by the level of organic fertilizer,
morsel formation and feeder root advancement. The natural resources reinforce organic plants
and not fundamentally through solvent manures added to the soil. Organic plants take up
supplements that are released continuously from "humus colloids". In this framework, the
digestion system of the plant and its capacity to absorb supplements is not overemphasized by
unnecessary uptake of dissolvable salts in the water of soil (Chang, Griffith, & Zepeda, 2012).

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Marketing Environment
Micro Environment
It refers to the factors that influence organizations in a particular trade or industry. The factors of
microenvironment are those in which the firm can control and directly affect an organization's
prosperity (IBISWorld, 2016).
Figure 1: Micro Environment of Organic Food Market, followed by Organic Origins
(Source: http://www.organicvalley.coop/why-organic/organic-defined/evolving-organic-
lifestyle/)
Producers
The world's organic food generation has expanded considerably in the previous century, as has
calorie consumption per capita. Four billion metric tons amounts of organic food are delivered

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all around per year. Australia (including “Organic Origins”) right now creates enough organic
food for its residents.
Retailers
They incorporate an extensive variety of outlets, for example, general stores and expert
supermarkets. They are described by their managing the end client of the food item. Likewise,
they consider eateries and other food administration foundations like bistros, fast food outlets,
and cooking organizations.
Customers
They incorporate several food junctions, like bistros, cafes, restaurants and fast food corners.
This group of people is getting interested in buying organic food items that can change their bad
food habits.
Buyers
As everyone drinks and eats, they all are considered as buyers. Shockingly not all buyers have
sufficient access to organic food. Food security is worried about the progressing accessibility of
organic food.
Sectors
“The Australian Government Department of Agriculture (DAFF)” arranges divisions, or organic
food supply sectors and classifications in the residential business sector as dairy, protein,
agriculture, beverages and other basic food commodities.
Macro Environment
These factors are radical and “Organic Origins” should be arranged and situated to acknowledge
and adjust. Moreover, a significant number of these strengths are interrelated and affect the
smaller scale environment. Factors and forces shape opportunities and present difficulties.

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Factors are a heading or arrangement of incidents that have forced. Those uncover the state
without bounds, and, also, give several opportunities. The new increment in online shopping for
organic food is a pattern in which clients can helpfully do their general store shopping online
every minute of every day. And there, they have their basic needs conveyed to their gate. This
buyer pattern is changing the shopping for food scene. It has been affected by the majority of the
full-scale ecological strengths (Lyons, 2016).
Figure 2: Macro Environment in Organic Food Market, followed by Organic Origins
(Source: http://www.mdpi.com/2071-1050/7/6/6457/htm)
Political
It is a crucial force for advertisers to comprehend and screen, especially in the food business. The
characteristics are key components in molding tastes, decisions, assessments and information of
food.

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Economic
It is worried about the accessible acquiring power in an economy. Organic food is a crucial part
of ordinary life. This factor is influencing the buying force which can strongly affect unnecessary
food items that might be seen as misuse things. The key properties that merchants incorporate
salary budget and funds, obligation and credit accessibility.
Social
It impacts buyer tastes and inclinations towards food. Dietary patterns are reliant on the
convictions, qualities, and standards of the way of life. It can effect on essential elements, for
example, eating times, food portions and how a person eats his/her meals. The key perspective
properties that promoters incorporate are perspectives of themselves, society and nature, social
qualities and the presence of sub-societies.
Technological
It is a key factor in food production and the whole supply network of organic food. It likewise is
a sensitive power to form a person's life. It reinforces developments in the organic food business.
The key qualities that advertisers must consider are the quickening pace of progress, boundless
possibilities for development, fluctuating R&D plans and the expanded regulation of innovative
change.
Environmental
It is vital for food generation. It is also affecting the organic food. It persuades environmental
change, wastage of food, crude material deficiencies, landfill and contamination levels, water,
and expanded expense of vitality, food generation lifecycle, and ideas.
Legal
It can make both difficulties and possibilities for the organic food business. This environment
comprises of laws, government offices and food security groups. All of which can impact
associations (including “Organic Origins”), people, and organic food items. The key properties

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that merchants must consider incorporating the expansion in the business enactment and
development of specifically vested parties.
Market Segment
In any market, the market segmentation is one of the important parts of marketing strategy. The
success of any business or company in any industry is highly dependent on the choice of market
segment or target market to sell the product (Gil, Gracia, & Sa´nchez, 2014). Wedel &
Kamakura define the market segment as an appropriate strategy which must be followed and
applied by an entrepreneur understanding the customer need and their behavioral choice (Wedel
& Kamakura, 2010). The principal intention of this segment is to analyze the market segment
faced by “Organic Origins” to sell their organic products starting from body care products to
pantry products (Organic Why Organic, 2016).
The production and consumption trend of the organic products is continuously increasing in
Australia like other developed countries of the world. In Australia, the consumption of organic
products has touched the saturation point of the consumers both regarding quantity and quality
(Gil, Gracia, & Sa´nchez, 2014). Therefore, the marketing strategy of “Organic Origins” has to
be powerful to capture more customer base not only in the present but also for future. As per
Richter, in this situation, the organisation has to use several strategies like quality food
diversification, market environment study, changes in the distribution of channels, modified
marketing strategy to specify the market segment for the organisation to operate in the industry
(Richter, 2012).

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Figure 3: Major Market Segment of Australian Organic Food Industry
(Source: Mascitelli, Lobo, Phan, Bez, & Low, 2014)
The whole market of organic products of Australia is segregated into three types of consumption
of a product. As per the report of Mascitelli, Lobo, Phan, Bez, & Low, these three segments are
fruits and vegetables, home-cooking ingredients, and dairy (Organic Why Organic, 2016).
Therefore, the growth of this company is also dependent on the existing market condition of
organic products, and the company should work a lot to capture the maximum market segment.
The studies of (Mascitelli, Lobo, Phan, Bez, & Low, 2014) has explored that “Organic Origins”
has to apply different pricing for their different market segment of Australia, and this
differentiation is dependent upon the compliance of the buyers to spend for their products rather
than others. This willingness is more affected by the product quality and brand preferences of the
consumers rather than the income scale of the consumers (Mascitelli, Lobo, Phan, Bez, & Low,
2014).

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Figure 4: Market Segment Followed by Organic Origins
(Source: Mascitelli, Lobo, Phan, Bez, & Low, 2014)
Figure 4 shows the market segment of the major organic products sold by “Organic Origins” in
Australia. The comparative study of the two diagrams. Figure 3 and Figure 4 shows that the
organisation is following the market trend to derive their market segmentation of the product.
The organisation is following such kind of market segmentation strategy to retain the customer
base of the whole market as much as possible.
Customer’s Behaviour According to Market Segment
The market segment of any organisation in any industry is totally dependent on the existing
consumers in the market. Moreover, the marketing and advertising strategy of the company, the
product quality, branding, etc. are also some major factors to determine the market segment of
any company.
The demand for organically produced products is rising at a rapid speed in Australia. The reason
behind this is the concern about food safety and health issues of the consumers and the concern
related to the conventional agricultural commodities (Jolly, 2012). Another way of market
segmentation should be analysed in case of organic food market fo Australia. According to this
analysis, the whole market for organic foods should be categorised into two parts – Organised

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sector and Unorganised sector. In 2009, the demand for organic food was 450 tonnes which have
increased by more than 60% in 2014 as per the studies of Australian Organic Market Report of
2014 (Mascitelli, Lobo, Phan, Bez, & Low, 2014). Therefore, the market segmentation of this
product for “Organic Origins” should be measured not only based on demand but also depending
on other factors of consumers’ behaviour like demographic, geographic, psychographic, etc.
(Tanner & Raymond, 2012). The customers behaviour according to the market segment depends
on several factors related to the customers. These are – age, occupation, gender, expectation,
reason of purchase, etc. these parameters should be the primary focus of a single market segment
to analyse a customer’s behaviour in this section. Therefore, the market segmentation for the
organic products should be like following types. These are – geographic, demographic,
psychographic, and behavioural (Jolly, 2012). The geographic segmentation questions about
where to sell the products; the demographic segmentation talks about whom to sell the product,
the psychographic segmentation examine the reason behind the sale; and behavioural
segmentation talks about the process and strategy of selling (Tanner & Raymond, 2012). A
rigorous study on any industry explores that these questions have to be answered properly and
clearly to recognise and differentiate the consumer’s behaviour of different market segments.
Figure 5: Market Segmentation Strategy of Organic Origins
(Source: Wedel & Kamakura, 2010)

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As per Jolly, the consumer behaviour towards the organic products is reflected in the willingness
to pay for them. Therefore, the producers pricing strategy for these products is going to affect the
market segments. The differentiated pricing strategy can increase the customer base of “Organic
Origins” (Jolly, 2012). Expect the pricing strategy, the factors like product quality, diversified
production, etc. will be helpful to capture more of the market segment. In demographic
segmentation, the customer base can be segmented according to the age of the customers. It is
clear from the studies of (Aertsens, Mondelaers, & Huylenbroeck, 2014), the age group of 30 –
45 is containing the majority of organic product buyers in Australia. As per the gender
consideration, 55% of the Women of Australia like to consume Organic products. It is very much
interested to find out that the income profile of any family or person of Australia is not affecting
the market segmentation robustly. As per Aertsens, Mondelaers, & Huylenbroeck, the reason
behind this their education level. A maximum number of educated and health conscious people
of Australia is attracted to the organic food products in Australia (Aertsens, Mondelaers, &
Huylenbroeck, 2014).

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Marketing Mix
The marketing mix is defined as the combination of four factors related to the sale of a product in
the market. These are – description of the product, the price of the product in the market, the
promotional strategy of the product and place of the product to sale (Tanner & Raymond, 2012).
The products of “Organic Origins” like bakery products, stationery and cosmetics products,
fruits, vegetables, few chilled products and several pantry products also need the analysis of
perfect product mix depending on the market demand and market segmentation of the products.
Figure 6: Product Mix Strategy followed by Organic Origins
(Source: Dominici, 2014)
Product
The market for organic products of Australia is very much competitive. Therefore, both of the
new entrants and the existing customers has to be very much careful about the quality, materials
used, packaging, price setting, labelling, etc. of the product. All of these factors are the
determinants of the image of the product to the customers (Essoussi & Zahaf, 2014). Moreover,

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the organic product related issues are very health sensitive, and it is often found that any bad
image of the product can ruin the brand loyalty and survival possibility of any company in the
organic industry.
Price
The difference between price and other marketing-mix elements is price reflects the income
structure of the product while others reflect the cost structure. It is the basic of all the
characteristics of a product in the market. The pricing decision of the organic products of
Australia is a little bit less effective by the demand for organic commodities in the market. The
market research, conducted by Organic, has explored that 58% of the market demand for organic
products is dependent on the quality of the product whereas, 15% (approx.) of the market
demand is controlled by the pricing policy taken by the producers (Organic Why Organic, 2016).
Therefore, “Organic Origins” has to be more dependent on the quality of their product than a
proper pricing policy.
Promotion
The potential firms of the organic product industry require a huge promotion of their products to
face competitiveness of this industry of Australia in present days. Promotion of any product help
the customer to choose their products and in order to promote the products the producers use to
take strong advertising strategies using their presence in online and offline media (Essoussi &
Zahaf, 2014). Dominici has stated that the promotional policies of modern organic product
producers have brought a huge change in the style to reach the customers with their best quality
products and services (Dominici, 2014). Therefore, “Organic Origins” should be very active and
aware of applying their promotional strategy in the market.
Distribution
The distribution of the organic products is equally important to build a proper marketing strategy
of the product. There are two factors to concentrate. These are – distribution activities and the
distribution channels. To make the marketing of the organic products, “Organic Origins” should
use two distribution channels – direct and indirect (Luan, 2010). The organisation can sell their

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products directly to the customers using direct distribution channels and in the case of indirect
distribution, the organisation involves the mediators or the trade shops for selling purpose. The
success of a distribution strategy is related to the establishment of multi-layered connection with
the other activities related to distribution (Essoussi & Zahaf, 2014). Therefore, there are two
wings to concentrate in distribution. These are the distribution in the market (Direct) and
distribution to the whole sellers (Indirect).
Therefore, it is very much important for “Organic Origins” to apply an appropriate marketing
mix to be successful in the business of organic products.

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Conclusion
This report has concentrated the whole analysis on the marketing strategy applied in the organic
product industry of Australia. To give this analysis a clear view of reality about this industry,
“Organic Origins” is taken as the representative organisation of this industry. In the above
sections of this report, the clear description of the macro and micro environmental forces faced
by the organisation is described. This description has revealed that in one hand, the company can
grow in the industry and another hand, it has to face some hindrance too. The organization has to
face different market segments too depending on the competitive and growing opportunity in the
industry. Therefore, “Organic Origins” has to take a proper marketing mix strategy so that it can
target all the market segments of the industry and build the bigger loyal customer base. Most of
all, the company has to create a brand name within the industry, and it should take all the
necessary step to do it.

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Recommendation
The demand for organic products is expanding at a rapid rate in the world. Therefore, Australia is
also not lagging behind. The organic product industry of Australia is also growing leaps and
bounds. Along with this industry, “Organic Origins” is also expanding their product bundle and
bring revolution in producing and selling organic products. Therefore, a proper marketing
strategy is strongly recommended not only for “Organic Origins” but also other organisations in
this industry depending on the macro and micro environment of each firm. Australia is a major
exporter of agricultural products. Therefore, the government should take expansionary policy
and make trade more liberal for this economy to grow further. Except this, the government
should fix other macro environmental issues like legal, political, etc. related to the organisations
of organic product industry to clean the path of expansion of this industry. According to
Kneebone & Spencer, this industry can hike the GDP growth of Australia if and only if the
political and economic barriers can be washed out as much as possible. Each of the organisations
like "Organic Origin" should try to minimise the micro issues as discussed in a previous section
(Kneebone & Spencer, 2015). The market segment, faced by the organisation should be
redefined so that more customers can be taken to the targeted market. Hence, it can be concluded
that these recommendations on marketing strategy can bring revolution in the organic product
industry of Australia.

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