SUMMER INTERNSHIP PROJECT REPORT

On Training Undertaken at

MORARKA ORGANIC FOODS LIMITED

Project Title: AN ANALYSIS ON AWARENESS OF ORGANIC FOOD AND STUDY ON EFFECTIVENESS OF EXISTING SALES MODEL FOR MORARKA ORGANIC FOOD LTD.
Submitted in partial fulfillment for the award of degree of Bachelor of Business Administration

Submitted By:ASHOK JANGID

Submitted To:Head of Department Management Studies MDS University Ajmer

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ACKNOWLEDGEMENT
The Contentment that accompanies the successful completion of the task would be incomplete without the mention of the people who made it possible. It is my privilege to express my gratitude and respect to all those who helped me in completing this project. I take immense pride in conveying thanks to my corporate guide Mr. Kumar Vaibhav, who gave me complete freedom in doing my project. I am extremely indebted to him for his valuable support, help and co-operation. He taught me practical dynamics of business and management tools. My further value addition was done with productive feedback along with suggestions and motivation to improve on those areas. He also stood by me in exploring every area of concern and provided me with the information and document needed. I am greatful to Mr. Rahul Chugh, Mr. Sorabh Mathur, Mr. Gourav, Mr. Rahul Yadav and other employees of Morarka Organic Food Pvt. Ltd. for providing me the required support regarding the project and other related activities. They were extremely helpful and cooperative. I extend my heartiest thanks to, Prof. Anurag Jhanwar, for the direction he gave to this project through his valuable insights, which constantly inspired me to think beyond the obvious.

ASHOK JANGID

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EXECUTIVE SUMMARY
Down to earth is an organic food brand from the house of Morarka organic. An enterprise that is the outcome of more than 12 years of organic food research and development and is in accordance with the most stringent organic certification in the industry. Down to earth is an attempt to provide food that can bring harmony and wellness in life for all. With a plethora of products that give you the organic substitute for all your food requirements, it is indias contribution to the global organic revolution. Down to earth is striding ahead with the aim of improving the quality of life by improving the quality of food. Market research of organic food awareness and study different sales model for Morarka organic food Ltd. Marketing Research contributes as the drivers of company performance. Marketing research act as the systematic design, collection, and reporting of the data and finding relevance to a specific marketing conditions. whereas studying different business model of company helps in market development and establishing dialogue between the company and the end customer. I was given the project study of AN ANALYSIS ON AWARENESS OF ORGANIC FOOD AND STUDY ON EFFECTIVENESS OF EXISTING SALES MODEL FOR MORARKA ORGANIC FOOD LTD.

BUSINESS MODELS OF MORARKA:Study of different sales model of company shows how these models are effective to cover all the customer. Different models of morarka organic cover current as well as potential customer. The study of these model helps company to develop new strategy for potential consumers as well as current customers. New users can be defined as: new geographic segments, new demographic segments, new institutional segments or new psychographic segments. Another way is to expand sales through new uses for the product. So, I was required to study of effectiveness of the different models of Down to earth brand. Models of Down to Earth:-

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1. Franchise Model

solving , Reward loyal customers, Monthly customers meet) haviour

2. General Trade

identification with potential) decide such counters ( Location, Customer base, Interest in Organic, Reputation in market )

t Organic

3. Modern Trade

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MARKET RESEARCH:Market research is any organized effort to gather information about markets or customers. It is a very important component of business strategy. Market research is a key factor to get advantage over competitors. Market research provides important information to identify and analyze the market need, market size and competition. Market research, which includes social and opinion research, is the systematic gathering and interpretation of information about individuals or organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision making. In market research I was told to find out the awareness for organic food in jaipur city. Our area of research is Raja park, malviya nagar, mansarovar, durga pura, vidyadhar nagar and bani park .

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EXECUTIVE SUMMARY TABLE OF CONTENT

CHAPTER 1 COMPANY PROFILE Company History Product Profile Various Business Processes

CHAPTER 2 INTRODUCTION PROFILING OF COMMODITIES GROWTH AND FUTURE MARKET OF ORGANIC INDUSTRY NEED FOR STUDY JUSTIFICATION OF STUDY

CHAPTER 3 RESEARCH METHODOLGY SAMPLE DESIGN AND SAMPLING TOOLS

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OBJECTIVE TOOLS OF DATA COLLECTION LIMITATIONS

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION

CHAPTER 5 FINDINGS SUGGESTIONS

CHAPTER 6 SWOT ANALYSIS CONCLUSION

BIBLIOGRAPHY ANNEXURE

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CHAPTER ONE

ABOUT COMPANY
COMPANY PROFILE
Company Name: Business Type: MORARKA ORGANIC FOODS LTD Manufacturer, Other Product/Service All Cereals, Pulses, All Spices, Cooking Oils & Ghee, Condiments, Organic Tea, Organic Coffee, Honey, Roasted Snacks, All kind of Papad, Dry Fruits, Fresh Vegetables, Fresh Fruits Address: Brands: Company Website URL: Vatika Road, Off Tonk Road Down To Earth, Back To Basics http://www.morarkaorganic.com Trading Company, Distributor/Wholesaler,

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ORGANIZATIONAL HISTORY
Morarka Organic was started 15 years ago as a Voluntary Organization for Rural Development. It is recognized as a leading resource agency for Organic Agriculture development in India and internationally. It was set up as a Corporate Philanthropy by GDC Ltd. Headed by Sh. Kamal M. Morarka, a leading thinker & philanthropist in India. It employs over 100 Professionals to deliver quality services to the Stake Holders in Development of Value Chain in India & Internationally.

It is currently managing the single largest Organic Agriculture Development initiative in India, covering over 300 Crops cultivated by over 100,000 Farmers in India. Beginning from Nawalgarh, a small town located on the edge of great THAR-DESERT in Rajasthan, in 1993-94, MOFPL now has presence in almost all the parts of the country.

Morarka Organic offers the single largest portfolio of Certified Organic Food Products cultivated in over 100,000 Acres in India. It works with over 1000 entrepreneurs, associates, partners & Farmers Groups in about 20 States in India. Morarka Products are in compliances with International Quality Standards. They are as follows:

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EUREPGAP: - for Horticulture Production. US-NOP, EU, INDIA-ORGANIC, JAS and Bio-Suisse:- for Organic Cultivation, Processing &

Handling.
ISO 9000 / ISO 22000:- for Quality Processing of Organic Foods. HACCP: - for Hygiene & Sanitation for Processing of Organic Foods. GMP: - for Production of organic Foods. GAP: - for Cultivation of organic Crops. MRLs:- for Pesticides and Heavy Metals in Organic Foods

It also has various Indian Food Safety Standards like AGMARK, FPO, and PFA etc

All these international and national standards of quality have given Morarka an advantage to become a truly World Class Company for Organic Food.

Down To Earth was introduced as a Retail Brand in India & Internationally by Morarka
Organic. In a very short period, this brand has made its presence in over 300 outlets in Mumbai, Delhi, Pune, Bangalore, Jaipur etc. and has become the most recognized brand offering value for money for Organic consumers in India.

Apart from Food business, Morarka Organic also has a textile division under the brand name

Back to Basics

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Back to Basics brand has a range of Organic, Cotton and silk offerings. Here, again the raw material used is free of any kind of chemicals.

PRODUCT RANGE When the company was started, it had 10-15 basic products, but with the passing time the product range has increased. At present there are around 320 products. Everyday Cereal Grains Healthy Grains and Dalia and atta Everyday Dals Chutneys Everyday Spices Edible oils and Ghee Garam Masala Tea, Coffee, Sugar and Jaggery International Foods Snacks and beverages Heat and Eat Foods Honey Juices

SUPPLY CHAIN
Supply chain represents a value delivery system. When a company moves upstream or downstream, the aim is to capture a higher percentage of supply chain value.

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A large portion of a companys success depends on a strong and reliable supply chain. This is even more relevant for Morarka, since its competitive advantage and the bulk of its social benefit come through the way it purchases, processes, and sells its products. A summary-level diagram of Morarkas supply chain is provided below, followed by detailed descriptions of each step in the process

PROCUREMENT
The process of procurement starts at the time of harvesting of the crop. In this process there are field officers of Morarka who go to the farmers and get their produce. This gives an advantage to the farmer as his transportation cost is saved and he also get fair price of his produce. Process of procurement starts with the selection of village and then the farmer. This selection is done on the basis of kind of the produce in the village and requirement of the company. Steps during procurement are:-

Selection of Village

Selection of Farmer

Field Officer get Sample of Produce

Quality Testing of Sample

Price Negotiation

Issuing of Purchase Order

Purchasing of produce

PROCESSING
The Processing of the Food Products is one of the main processes in the food industry which is the base of any food based industry. Morarka owns its own processing unit which is lashed with all the state of art and Hi- tech processing machines. Automatic Cleaner, Grader, Grinder, Pulvonizer, sealing, inkjet barcode printer and all other related accessories are installed to aid the better processing of the food commodities.

NOTE: Cold storage temperature is maintained at 8C. Product List along with their Lot No. Batch No. and Location is put on the pillars of the Storage so as it to make is easy to find the material whenever it is required.

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QUALITY CONTROL
Quality is the most important thing in Organic Food. People pay extra price over the conventional one for the quality of the food items. Since MORARKA markets its goods as high quality, quality control at every point of the supply chain is critical. In order to maintain a minimum level of product quality, Morarka agree on quality parameters during the procurement process, then the storage, processing, packaging and dispatch of the final product. The most important part of the Quality Test in case of the Organic Food Business is The Pesticide Residual Test is done from nationally accredited certified Labs like SGS, Delhi Test House, Euro fins and other outside Testing Agencies to avoid any biasness. The test reports of these agencies are acceptable to the certifying agencies, institutions and the end consumers.

SALES
The sale is the final step in a Morarka supply chain that stretches from the small rural farmers field to the hands of consumer. Overall, Morarkas sales are fairly evenly split between Bulk, Institutional, Retail and International sales. However, the sales process works quite differently in all of them. Morarkas centralized sales and marketing team negotiates supply agreements with sales channels. Talking specifically about Indore, Franchise Model of sales is also being used. Morarka has 1 Franchise in the city. From them the customers buy the product

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CHAPTER TWO
INTRODUCTION
Food and clothing are the most basic needs of man. However, over the last one century man has made it extremely complex. But with the passing time, health is again becoming the primary concern for people, all over the world. Organic Farming has become that break by giving a healthier and safer option. Organic Farming also known as ecological farming is a form of agriculture that excludes the use of synthetic fertilizers and pesticides, plant growth regulators and livestock feed additives, reflecting the reliance on the ecosystem management instead of external inputs. Its importance comes when the aim is to sustain and enhance the health of ecosystems and organisms from the smallest soil to the human beings. Organic Farming is helpful in creating integrated, humane, environmentally and economically sustainable agriculture production systems. The maximum reliance is placed on locally or farm-derived renewable resources and the management of self-regulating ecological and biological processes and interactions to provide the acceptable levels of the crop, livestock and human nutrition, protection from the pests and diseases, and an appropriate return to the human and other resources employed. WHY ORGANIC?? ORGANIC: Environment-Farmer-Consumer FRIENDLY There are compelling reasons to become an organic food convert. Most health experts claim that organic food is natural and pure, highly nutritious, has a superior taste and is entirely safe. It lays claim to several health benefits, as it has copious amounts vitamin C that the conventional food cannot lay claim to. Raw organic food is also known to cleanse the blood stream by eliminating toxic wastes. Besides, organic food farming is known to be entirely environment friendly. To be more elaborative following reasons would justify a persons decision to switch to organic food.

Tastes better, feels better: Thanks to well balanced soils, the crop is strong and healthy, giving it that keen taste, flavor and nutrition.

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Freedom from Additives: organic food is free from additives which can cause health problems such as heart disease, osteoporosis, migraines and hyperactivity.

Boosts the system: With 50% more vitamins, minerals, enzymes and other micro nutrients than intensively farmed produce, organic food gives human body the energy it needs to manage daily hectic schedule.

Water for Thirst: Organic Farming means good riddance to water problems, because it reduces toxic farming run off and pollutants that contaminates water, soil and air.

Protects Health of Future Generation: Organic food is the best way to make sure that future generation remains healthy by not having the pesticide laden food.

Keeps the Rural Communities Healthy: nobody wants to spend their day in a field laden with agricultural pesticides and fertilizers. It is possible for farming fraternity to breathe easily by conducting organic farming.

Supports TRUE Economy: Billions of tax is spent on removing chemicals laden in water and food. But organic food does away with the fear of food. And there by actually saving money.

Keeping the Livestock healthy: Intensively-reared dairy cow and farm animals are given drugs to increase their productivity. And these drugs are passed on to the consumers of dairy produce, which is a contributing factor to diseases like coronaries and high blood pressure. Organically reared live stock is the answer that medicine is seeking.

Topsoil Remains on Top: poor cultivation and cultural practices, worldwide have created a topsoil crisis. Only with organic farming practices the soil can be enriched with essential nutrients to ensure the same quality of food tomorrow.

Preserve Bio-diversity: To preserve the sanctity of the soil, organic farming includes crop rotation, retain fence rows, wetlands and other natural areas to make sure that there is no dearth of healthy crop all around the year.

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HISTORY AND DEVELOPMENT OF ORGANIC FOODS AND ITS MARKET:

In the early era when human beings were born, they lived on fruits, grass, vegetables and animals which grew on their own in their natural environment. Slowly and gradually they found out and developed the awareness of growing these plants. With the passage of time, research and experiments along with advanced technology helped them to grow vegetables faster than their natural period of growth by using different kinds of fertilizers, pesticides, modifying their genes and etc. They began to feed animals with different antibiotics and growth hormones so as to enable them to produce more than what they would naturally produce. The ill-effects and hazards of the amount of chemicals absorbed by the food were forgotten in the course of achievement by modern technology and science, given out in the environment and finally consumed by humans., The consumption of this food and also by the environment which has been polluted by the use of the chemicals has affected humans from two sides. During the First Generation Green Revolution Organic farming an age old practice in India, got disturbed. Since the Vedic times Organic manure has been in practice in Indian agriculture. A British Agronomist Sir Albert Howard however had started the organic agriculture way back in 1900. In the early 1920s a group of practicing farmers in UK, to solve the problem of decline in the quality of soil, and the general deterioration in crop and livestock and the resultant future of agriculture, sought the advice of Dr. Rudolf Steiner (the founder of anthroposophy), who then, with the help of a series of lectures and conversations held at the Koberwitz, Germany, in June 1924, brought forward the fundamental principles of biodynamic farming and gardening . This was the beginning of organic farming/agriculture. Biodynamic farming involves restoring to the soil a balanced living condition through the application and use of the completely digested form of crude organic matter known as stabilized humus. Crop rotation, correct compost and proper intercropping can all contribute to a healthier biodynamic yield. (Saunders, 1999) The term organic farming was first used by Lord Northbroune (Sharma, 2004 and Duram, 2005) in his book, Look to the Lands which was published in 1940.

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Global Market for Organic Products

According to the Research Institute of Organic Agriculture (FiBL), and Organic Monitor, the global market for organic products is as follow:2007-US $ 46 million 2008-US $ 51 million 2009-US $ 54 million 2010-US $ 57.5 million 2011-US $ 67.2 million 2014-US $ 96.5 million 2015- US $ 104.7 million 2016-US $ 112.8 million

((((2007 has been estimated at US$ 46 billion, growing at a CAGR of around 20 % since 1999. Demand for organic products is concentrated mainly in North America (43%) and Europe (54%). According to Organic Monitor, these two regions comprise 97 percent of global revenues from sales of organic products. Asia, Latin America and Australia are important producers and exporters of organic products. The countries with the largest markets for organic products are the United States, followed by Germany and the UK. )))

Top ten countries with the largest markets for organic food 2007

Source: FiBL Survey 2009 USA Despite the economic crisis organic market in the USA registered a steady growth of 17.1% in 2008 over 2007. Sales of organic products, both the food and non-food sector, amounted to US$ 24.6 billion of which, sales of organic food products amounted to US$ 22.9 billion. Bread and
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grain products and beverages are the important organic products in the USA. The non-food sector expanded by almost 40 % to more than US$ 1.6 billion in 2008. Organic food sales in USA: 1997-2008

Source: Organic Trade Association (OTA), USA; FiBL 2009

Europe In 2007, the European organic market was estimated at 16 billion Euros, which in 2008, grew by 12.5%, and estimated at over 18 billion Euros. The largest market for organic products was Germany followed by UK, France and Italy. The Scandinavian countries, however, registered highest growth: Denmark (33%), Sweden (26%), and Norway (24%). With around 5% share each of organic food penetration, Austria, Denmark and Switzerland have the largest share of organic products in the respective total food market.

The European Market: Countries with highest sales in organic products 2007

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Organic Farming Situation in India

Only 30 per cent of Indias total cultivable area is covered with fertilizers due to assured irrigation and the balance 70 per cent of arable land is mainly rain-fed with little or no use of fertilizer hence Indian farmers had an inborn understanding on how to work closely with the nature. In organic farming the precondition is commitment to Mother Natures protection. In India major part of countrys land can be instantly converted to organic farming and has comparative advantage over other countries as its vast cultivated area, which has remained free of pollution from chemical fertilizers, spread over distinctly varying agro climatic conditions, for example, large area in northeast region, northern hills and rain fed regions with very low or zero use of agro chemicals fertilizers. Readily available organic manure is often used by the farmers as a source of nutrients that are either in their own farm or in their locality. Nearly 70 per cent of organic agriculture products produced in India is being exported because of the big bucks involved. In the world market Organic products do obtain a 20-30 % higher price than inorganic products. Indian Competence Centre for Organic Agriculture study reveals the global market for organically produced foods is roughly about $26 billion and is estimated to increase up to $102 billion by 2020.

Development of Organic Farming in India 2002 to 2008

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National Initiatives to develop the Organic Sector

Many Asian countries have a high grassroots level involvement in the development of organic agriculture and many NGOs have programmes to assist farmers in converting to organic agriculture, to markets organic products or to lobby for organic agriculture. However, large-scale and national programmes are still rare. The only country with a reported government programme to develop the organic sector is India. However, this APEDA (Agricultural and Processed Food Products Export Development Authority) programme is aimed primarily at building up the export market and not much attention is being paid to build the markets domestically. APEDA is working along with the Ministry of Agriculture for carrying out the following measures: Training programmes for producers and certification agencies; Improving quality of research and development; Promoting certification programmes; Developing national policies for organic production; Improving quality of products, packaging, logistic infrastructure and technical support; Promoting Indian organic products at international fairs.

Current Trend of Organic Product in India

As per the reports of the Indian Competence Centre for Organic Agriculture (ICCOA), the organic food industry in India is estimated to be presently around Rs. 600 cores where about 60-70% is being exported. The global market is estimated to increase by $102 billion by 2020 and currently the market for organically produced foods is about $26 billion. In the Indian consumer market it has been slow to catch up what has become a rage in the USA. The industry here is still in an initial stage and when we look at the unhealthy lifestyles led by current Indian professionals shall start be turning more heads.

The certification of organic produce and production centers are been carried out by primarily 10 agencies in India. Some of them are FKAL International, OneCert Asia, SGS, Indo Cert IMO Control and Ecocert International. These organizations conduct through checks on farms and issue USDA Organic and EUREP GAP certifications. Presently there are about 15,000 certified organic

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farmers in India. The demand for Organic foods is growing at 21% whereas supply is mounting at a rate of only 15%. Product Category Commodity Spices Products Tea, Coffee, Rice, Wheat Cardamom, Black pepper, white pepper, Ginger, Turmeric, Vanilla, Tamarind, Clove, Cinnamon, Nutmeg, Mace, Chili Pulses Fruits Red gram, Black gram Mango, Banana, Pineapple, Passion fruit, Sugarcane, Orange, Cashew nut, Walnut Vegetables Oil seeds Others Okra, Brinjal, Garlic, Onion, Tomato, Potato Mustard, Sesame, Castor, Sunflower Cotton, Herbal extracts

Major products produced in India by organic farming

Export of Organic Products from India

In India there is great export prospective for many other organic products other than Organic tea and coffee for which it is best known for. Other organic products are its spices and fruits for which India has a market. There has been a little response for wheat, oil seed, cashew and pulses. From India Mangos, Bananas and oranges are among the fruit crops that are most preferred as organic product.

Export Market: Organic food exports from India are increasing with more farmers shifting to organic farming. With the domestic consumption being low, the prime market for Indian organic food industry lies in the

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US and Europe. India has now become a leading supplier of organic herbs, organic spices, organic basmati rice, etc Organic crops current production of is around 14,000 tons. Out of which, fruits and vegetables combine only makes 17% whereas 24% is contributed by tea and rice each, of this total production. Around 11,925 tons of organic products are being exported, that makes approximately 85% of total organic crop production is exported. France, Germany, South Africa, Saudi Arabia, Australia, Italy, Belgium, Canada, Netherlands, Sweden, UAE, UK, Japan, USA and Singapore are the major countries which form Indias major export market.

Estimated Quantity of various Organic Products in 2009 Commodity Cotton Basmati rice Honey Tea Dry fruits Processed food Sesame Spices Export contribution (by volume) 43% 15% 11% 8% 7% 5% 4% 3% Export contribution (by value) 25% 13% 10% 20% 18% 45% 25% 45%

Source: APEDA 2009

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Criticism of Organic Food

In addition to the higher price, there are two main criticisms of organic food. First, some people argue that eating such products increases your exposure to biological contaminants, putting you at greater risk for food borne illness. In particular, concerns have been raised about: Manure - While manure is a well known carrier of human pathogens, when properly treated it is both safe and efficient. Plus, certified organic farmers are restricted from using untreated manure within 60 days before the harvest of a crop and are inspected to make sure these standards and restrictions are met.

Mycotoxins from molds - Fungicides are not permitted in the production and processing of organic foods. However, studies have not shown that consuming organic products leads to a greater risk of mycotoxin contamination.

E. coli bacteria - Particularly the virulent strain O157:H7, found in the intestinal tract of animals, is a concern. As it turns out, both conventional and organic foods are susceptible to contamination by E. coli.

The second criticism of organic agriculture is that organic farmers can't produce enough to feed everybody. Some experts contend that organic food production, and in particular the failure to implement genetic engineering techniques, will condemn millions worldwide to hunger, malnutrition and starvation because:

Yield (total harvest per unit area) for organic farming is lower than for conventional farming.

Organic farming is not economically or socially viable in poorer countries.

Future of organic industry in India

In spite of the purchase of organic food product raises the current kitchen budget approx by 25% but still the future is definitely one that we can have a high opinion of. Rising amount education and awareness levels, disposable income and with growing health consciousness among consumers in India promises a bright future for the new found industry. Organic market will help to change the
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current status of the Indian agriculture which will assist in making a better future for the organic farmer. Popularity and the impact of organic food items will be mainly based on effective sales and distribution of organic produce coupled with marketing and promotion which is a big challenge. This can be certainly taken care by the industry as a whole (trade fairs being one such example) and also by upcoming retail stores. The government will analyze the current state of the industry and continue its efforts of accepting new ideas and aid the states to promote this kind of farming along with the interests of the producer. Certain private organizations and NGOs are extending their help in the promotion of both producing and distributing of organic produce which again act as advantageous for the industry. Thus, we can anticipate for a fine growth in this industry in both domestic and international (exports) market.

Growth forecast for specific organic products in the domestic market in the next five years Spices (all) Rice Fruits (all) Cotton Tea, Coffee Oil seeds Honey 14% 10% 8% 7% 10% 5% 5%

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NEED FOR STUDY

Growth potential Organic Commodities Market is a rapidly growing area of the food and beverage sector worldwide. From an insignificant niche market as recently as the mid 1990s, organic commodities have leapt into the mainstream. In US alone the sales is around $20 billion, despite the 20-35% price premium of these items. In India increasing number of urbanities confess buying organic products atleast occasionally. Total Market Potential for Organic Foods in India is estimated at Rs. 2300 crore. Apart from the farmers who are engaged in doing organic farming to sustain their livelihoods and eat organic food, there is another organic consumer (real consumer) who buys food from market. Organic farming is an old concept in India in terms of the extensive farming carried out in the country.. Need to work on the promotion of organic food The line of demarcation between organic foods and the rest seems rather thin. Difference in product is non-apparent. This calls for customer education. Educating the customer seems to be the single largest requirement. Nothing could perhaps match this mandatory input. While the awareness of Organic food is low, its usage is even lower. People have mostly accessed organic out of curiosity or health problem. Theres great difference between what Organic is; what the consumers think Organic is and what they expect Organic to be. Organic food, according to the consumers, should be made more readily available even to spread awareness. Most of the customers do not know where to get Organic Foods and among those exposed to a source there is a feeling that variety is not available. This survey is being conducted in Indore seeing the demography of the city which shows that there is great market potential over here for organic food. In Indore, the typical organic consumer is urban, educated, could be from a middle or high income household and afford to maintain food choice. The potential consumers here also include wealthy sections of society concerned about their health and growing numbers of those who care for this environment.

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For sustainable agricultural development The majority of the people who are chronically hungry in the world are small farmers and their families who depend on the land to give them the food they need to survive. Use of pesticides and fertilizers has degraded the quality of water in agricultural areas. In many regions where hunger is a major problem, water for agriculture is also scarce. In retrospect of environment and future perspective Organic agriculture enhances soil structures, conserves water, mitigates climate change, and ensures sustained biodiversity. Through its holistic nature, organic farming integrates wild biodiversity, agro-biodiversity and soil conservation, and takes low-intensity farming one step further by eliminating the use of chemical fertilizers, pesticides and genetically modified organisms (GMOs), which is not only an improvement for human health (food quality) and agro biodiversity, but also for the associated off farm biotic communities. If we talk about the kind of pesticides used then, many of them does not have any standards, and the fact that mixtures of pesticides are commonly found in water supplies (as well as soil) increases the possibility they will harm human health, especially that of infants, the elderly, and the chronically ill, who are most susceptible to toxins. In many regions where hunger is a major problem, water for agriculture is also scarce. Pesticides used in conventional farming get into bodies of water, suffocate aquatic plants and animals, and accumulate in the food.

JUSTIFICATION OF THE STUDY

This study will give the company the required insights of Indore as a potential market for Organic Food and there by guide the management to take the necessary steps to tap the market. Also, it will give a fair idea to management about the potential customers, their expectations from an Organic Food company. Facilitation will be provided by the study in defining the relevant communication channels and strategy with the potential customers and the various channels of sales of Organic Food in Indore. Marketing Research and studying of the rural India are few areas of my interest. Working on this project gave me practical experience of how the research process is carried out, what are the communication tools that can be used to meet the company requirement
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CHAPTER THREE

Research Methodology
Secondary Research Primary Research

Internet

Questionnaire Filling with the potential customer

Company Documents

Questionnaire Filling with the Retailers

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SAMPLE DESIGN AND SAMPLE SIZE

Population

= Potential Customers, Retailers,

Sample Size 60 30 90

Sampling Units Potential Customers Retailers Total

SAMPLING METHOD:
For valid results first, the Cluster sampling method is used where different zones are taken as clusters and then in those zones Systematic Sampling technique is applied.

From each cluster, items are selected to get a valid sample. Even if 100% respondents do not reply and a margin of 25% is taken it gives quite a good number for the study to be valid.

STUDY INSTRUMENTS:
Questionnaire To get a meaningful data on topic, a set of structured questionnaire [close ended and open ended] was repaired for each segment.

STATISTICAL TOOLS: Statistical tools used are pie charts.

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OBJECTIVES OF THE STUDY

To assess the demand of organic foods in Jaipur Awareness about the organic food In depth study of potential customers Their interest level Awareness about the organic food Awareness about Morarka and preference to buy Morarka products Factors affecting their buying behavior for organic food Their consumption pattern of organic food

To study the effectiveness of sales model of the company. Factor affecting for selling organic food. Their interest to sell Morarka products. Their motivation for selling organic food

Limitation of Research
Survey is limited to Jaipur only. Few improper responses due to lack of awareness about Organic food. The chances of misinterpretation by the consumers cannot be ruled out.

So the results during the study will be based completely on the assumption that respondents have answered correctly.

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CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATION

.

CUSTOMERS DATA ANALYSIS

1.

Have you heard about organic food ?

no 40% yes 60%

Inference/observation:The study found that more than half of the surveyed costumers had heard about the organic food

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2.

Are you aware about the benefits of organic food?

no 45% yes 55%

Inference/observation:-.
By the survey we know that around 60% of the surveyed customers are aware about what the organic food. Only 55% of the surveyed customer are aware about the benefits of the organic food

3.

source of information about organic food

other 13% news paper 20% radio 12% retail outlet 25% promotional activity 30%

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Inference/observation:-.
Majority source of information is promotional activity which is 30% and lowest is other which is 13%. Other include word of mouth (relative ,friends etc.)and T.V

4. knowledge about down to earth

No 40%

yes 60%

Inference/observation:-. Among the respondents those who are aware about organic food 60% are aware about down
to earth brands and 40% dont know about the brand.

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5.

Ever used any organic product

yes 39% No 61%

Inference/observation:-. Among those 60% respondent who are aware about organic food only 39% have used
organic food where is majority of the respondent never used it.

So, we can say that 39% of respondent may be our consumer and 61% our customer.

6.

awareness about nearest retail outlet

YES 30% NO 70%

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Inference/observation:-.
Only 30% people are aware about there nearest retail outlet and majority of respondent dont know. Low promotion efforts on the presence of retail outlet.

7.

Recommend to others
YES 25%

NO 75%

Inference/observation:-.
Only 25% respondent recommend to other for using organic food.(25% out of 60%) Word of mouth is less.

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8.

Factor affecting not buying organic food

high price not interested 8% 42% 40% Lack of awareness unavailability

10%

Inference/observation:-.

There are two major factor that affect buying behavior first is high price which is 42% and second is unawareness which is 40%.

9.
others 4%

shopping generally
internet 8% supermarket 48%

general store 40%

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Inference/observation:-.

Majority of people which is 48% generally buy grocery items from supermarket (big bazar, reliance fresh, national handloom)

40% people buy from general store (dept. store) or kirana store.

10.

yearly income
above 5 lacs 25% below 3 lacs 24%

3 to 5 lacs 51%

Inference/observation:-.
51% people yearly income is 3-5 lakh and 25% people income is more than 5 lakh.

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11.

frequently purchasing of grocery items

Yearly 5% daily 10% monthly 40% biweekly 23% weekly 22%

Inference/observation:-.
40% people buy grocery items on monthly basis and 23% buy on biweekly basis.

12.

monthly grocery spend

>4000 35% <1500 5% 1500-2500 10%

2500-4000 50%

Inference/observation:-.
50% people spend 2500-4000 on monthly for grocery items 35% people spend more than 4000 per month for grocery items.

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13.

product they prefer to purchase first

pulses 35% oil & ghee 28%

grains and flours 20%

spices 17%

Inference/observation:-.
Preference of majority which is 35% is pulses, than oil & ghee (28%), after that grains and flours .

Lowest in preference is spices which is 17%.

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RETAILERS DATA ANALYSIS

Various Retailers were there in localities of Jaipur like Malviya Nagar, Vaishali Nagar ,Mansarover ,Vidhyadhar Nagar ,Bani park ,Raja park ,Durga pura who sold the organic products of morarka

1. Product Type being Sold

23% Conventional 17% 60% Organic Both

Obersvation The kind of products being sold by the retailers is majorily of conventional type. Organic products are also sold by some of the retailers but the product range is very low. Some retailers are selling both convebtional as well as organic.

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2.Customer visit for organic product

6% 31% 1 to 10 63% 10 to 20 above 20

Observation Mostly retailers said 1 to 10 customer visiting per day for organic product.

3. Product range

44%

31%

pulses,spices,oil&ghee and cereals roasted snacks and bakery items

25%

both

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Observation Majority of the retailer are selling all type of product which is 44% 31% retailer are selling pulses, spices ,oil&ghee, cereals

4. No. of organic supplier

6% 19% 1 to 2 2 to3 75% above 3

Observation Majority of the organic supplier 1 to 2 which is 75%. Than 19% retailer said 2 to 3 and only 6% retailer have more than 3 supplier of organic product.

5. Organic brand keep on self

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6% 31% morarka organic 63% vision fresh others

Observation

Majority of the retailers keeping morarka organic products which is 63%. 31% retailers keeps vision fresh products.

6. Motivational Factors for Selling Organic Food Products

19% 12% 69% high profit taste/quality both

Observation Most of the retailers selling organic product because they are getting high profit which is 69% 12% retailers sell organic product because of taste/quality.
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7. challenges faced while selling organic foods

19% 37% lack of awareness high price 44% others

Observation Two major challenges faced by retailer while selling of organic product are high price (44%) and lach of awareness which is 37% others include lack of demand and not interested etc. which is 19%.

8. Satisfied with the marketing of company for your retail outlet

25%

yes 75% no

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Observation 75% retailer are not satisfied with the marketing (promotion) for their retailing outlet. 25% retailers are satisfied.

9. Satisfied with the supply system of the company

38% yes 62% no

Observation 62% retailers are satisfied with the supply system of the company. While 38% are not satisfied with the supply system of the company.e.g no consistancy of supply of veg. and fruit

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FINDINGS
Less awareness about organic food and company among the people. Low promotion efforts on the presence of retail outlet. As compared to its competitors, the range of products offered by morarka organic is very wide. Price of morarka is a higher than the conventional food products and Customer is Price Sensitive. Majority of the retailers are selling conventional products. In organic industry, morarka is a leading brand. Selling of the products is done in three ways: Through Retailers Through Franchise Through Modern Trade Through Direct Selling

Majorly mouth to mouth publicity is there, which needs to be further developed on large scale and to be taken ahead with Mass media Availability of the product is not proper in the super market. There should be more product range.

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SUGGESTIONS
As per the findings and observation of the project there are some recommendation/suggestions which could be useful for increasing the market size of Morarka. Along with this there has to be some improvements to be made in the Organization and its various business processes. Following are the recommendations of the company. Most of the people are not aware about DOWN TO EARTH STORE So company should increase its marketing through: promotion of retailing outlet. Advertising and use of mass media.

Product demonstration should be conduct in big societys to make the people aware about down to earth . Promotion will be done preferably in the evening time as at that time majority of people are found in the malls, shopping centres. Company should conduct training program for retailers. Company should provide some kind of discount schemes on occasion or at the end of month or for a week. (Like big bazaar at the end of month scheme ).

CHAPTER SIX
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SWOT ANALYSIS

STRENGTH
Own processing and packaging unit. Well Organized State of Art Lab for quality testings and R&D. Have various kind of assurance of for the purity of the Products. Wide range of products. Products are of very high quality. Varoius outlets all over the country.

WEAKNESS
People are unaware about organic food. There is a rigid mentality of people to adapt to the change in their lifestyle. Cost of production is high. Demand assessment of various products is not proper. All the procurement is done at one time. So this creates problem of the storage of raw material and also leads to increase in cost. Sales force is not there

OPPORTUNITIES Food habits of people are changing. Especially health consciousness among people. Standard of living is improving. So people are seeking out for pure and high quality food
products.
Few of the competitors.

Seeing the social and health benefits of Organic food, if communicated properly to target
group would be a great opportunity for the company.

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THREATS
Cost: Since it is little more expensive than the other food items people may look back. At times, it becomes difficult to prove the authenticity of the products as many of the customers have less believe on certification etc and want some other proof of authentication of the products. Various competitors such as 24 letter mantra, organic india, ecofarms.etc.

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CONCLUSION
Talking specifically about exploring the future market of organic commodities, In jaipur the awareness and knowledge about Organic food is very low as compared to the metropolitan cities of the country. We have concluded that Organic Food has a very niche market consisting of high end institutions and high class people as potential customers. Everybody wants to consume superior quality, free from chemicals food. But due to lack of awareness about Organic food this demand is not yet fulfilled. It has also been observed that there are very less companies providing Organic food in the city. Vision fresh is the one known to customers and also some of the petty godown owners are manufacturing few organic products individually like quality king . So this is the appropriate time for the company to tap the market. Retailers do not prefer to keep companys products as there is very less demand of the Organic food products and reason of less demand is the lack of awareness among the potential customers. So in total the problem is not that there is less demand for the companys products but low AWARENESS level about Organic food is the issue to be worked on. If people given proper education about the Organic food then they would surely buy it. Talking about institutional sales, price is the major factor affecting the decision making of the respondents to buy Morarka products. Quality and authenticity also play a significant role.

BIBLIOGRAPHY
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BOOKS
Kotler Philip, Keller K.L., Koshy Abraham, Mithileswar Jha, (ed.), 2007, Marketing Management-A South Asian Perspective. Delhi: Dorling Kindersley (India) Pvt. Ltd.

WEBSITES
www.morarkaorganic.com www.morarkango.com www.organic.org www.organicconsumers.com Morarka @gri-Infotech (The seeds of technology, The fruits of Agriculture) www.spiceworld.com www.spiceindia.com

ANNEXURES
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QUESTIONAIRRE FOR CONSUMER

Name:Age:No. of family members:Address:Phone:Email id:-

Occupation? Engineer & IT professional Doctor Government servant Businessman Service sector

1.) Are you aware about organic food / Organic farming? Yes No

2.) Are you aware about the benefits of the organic food? Yes No

3.) What are your sources of information about organic food? News paper Retail outlet Radio Promotion activity Other

4.) Have you heard about organic food brands especially Down to earth (Morarka)? Yes No
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5.) Have you ever used any organic product? Yes No

6.) Are you know or aware your nearest retail outlet (Down to earth)? Yes No

7.) Do you recommend others to use organic food? Yes No

8.) What are the factors not affecting the buying of organic food? High price Unawareness Not interested Unavailability

9.) Where do you go for shopping generally? Supermarket General Store Franchisee Internet Others

10.) Income Yearly? Below 3 lacs 3 to 5 lacs Above 5 lacs

11.) How frequently you purchase grocery? Daily

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Weekly Biweekly Monthly Yearly

12.) your monthly grocery spend ? <1500 1500-2500 2500-4000 >4000

13.) which product would you like to purchase first in organic foods ? Oils and ghee Spices Grains and flours Pulses Other

14.) Who generally purchases food items in your family? Servant Lady of the house Man of the house Both

15.) What could be the motivational factor for buying organic food? Health factor Taste factor Others 16.) Any suggestions ..

QUESTIONNAIRE FOR RETAILORS

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NAME OF THE STORE: NAME OF THE OWNER: ADDRESS: 1. What type of products are you selling ? (a) Organic (b) Conventional (c) Both 2. How many organic customers visits on an average per day ? (a) 1 to 10 (b) 10 to 20 (c) 20 to 30 (d) Above 30 3. What in your product range ? (a) Pulses, spices, oils and ghee (b) Rosted snakes and bakery items (c) Both 4. How many supplier do you have few organic product ? (a) 1 -2 (b) 2 3 (c) Above 3 5. Which brand of organic product you keep on self ? (a) Morarks organic (b) Vision fresh (c) Others(fabindia and unorganized) TELEPHONE NO. :

6. What motivate to sale organic foods ? (a) High margin

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(b) Quality/test (c) both 7. What challenges according to you are faced while selling the organic foods ? (a) Lack of awareness (b) High price (c) Others 8. Are you satisfied with the marketing of the company for your retail outlets ? (a) Yes (b) No 9. Are you satisfied with the supply of organic product of the company ? (a) Yes (b) No

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