Create the Value – Organic Farm Concept

Keller Graduate School of Management

January 25, 2015

Create the Value – Organic Farm Concept

Overview

Daylesford is a specialty provider of specialty organic products, made locally with self-sustainable methods allowing Daylesford products to be of supreme quality from a trustworthy source. All of Daylesford’s products are sourced directly from their organic farms to their retailing outlets, allowing consumers to consume products that are extremely fresh and healthy. For the production of Daylesford’s pre-cooked products, their highly skilled/trained chefs with multiple years of experience use solely the freshest ingredients, combined with unpretentious techniques to highlight natural flavors of Daylesford’s award-winning organic products. In addition to Daylesford’s production methods, another aspect of their business that gained tremendous respect from their loyal consumers is their long-run commitment to transparency. Consumers could freely visit Daylesford’s organic farms and production plants to ensure that products sold are genuinely “organic”, winning more than sixty awards in the past three years for Daylesford’s organic farm concept. As the lifestyle changes in the United States of America are shifting towards the “healthier” trend and “Many companies are responding to consumer demands with more environmentally responsible products. Others are developing recyclable or biodegradable packaging, recycled materials and components, better pollution controls, and more energy-efficient operations.” (Kotler, 2013, p. 83), it would be an extremely shrewd business decision to create similar “organic farm” concept in the United States of America for a highly anticipated success rate.

Potential Market Segment

As the concept of an “organic farm” still is relatively innovative in terms of exposure in the United States of America, a potential marketing segment and preferred target market must be accurately established in order to increase the probability of brand launch success. Lamb (2011) states “a target market is a group of individuals or organizations for which a company designs, implements, and maintains a marketing mix to meet the needs of that group.” (p. 35). For this specific “organic farm” concept, an adequate and accurate market segment could be formed/estimated using these criteria: Age, Gender, Income, Education, and Social Class. In terms of the age criteria, a suitable age distribution range for the target market for specialty organic products in the United States of America would be in the approximate range of 35 – 65+. The aforementioned age range reflects a stage of the consumer lifecycle where consumers are more concerned about health issues and are careful of their intake. Therefore, this range is more likely to be interested in the organic farm concept. For the criteria of gender, Women are still most likely to be the people who manage households in terms of shopping. Therefore, marketing efforts should be more leant towards women in an attempt to change their purchasing pattern. For the criteria of income, since organic farm concept products are certainly vastly more expensive than normal house brands, a proposed yearly household income of at least $70,000+ per household should be targeted. Having mentioned a high range of income, social class in also closely correlated, the target market should have at least a middle-high social class in order to be interested and have suitable spending capabilities to suit their lifestyle needs. In terms of potential revenue, all operations should be started on a small scale and estimating from the aforementioned selected potential target market segmented previously, an average of twenty five million dollars in revenue could be expected within the first year of operations.

The Value Proposition

Barnes (2009) states “a Value Proposition is not what a company does, but it is the Value Experience that it offers.” (p. 29). Indeed the value proposition is not as single dimensional as merely what the company/product offers, it is the combination of three main elements: functional, emotional, and self-expressive benefits. Firstly, discussing the functional benefits of the organic farm concept, one of the main benefits that this concept offers to consumers is their superior quality of consumable products and ingredients from a local and trustworthy source. Coupled, with a unique and fresh taste, the organic farm concept offers a special solution for people who are looking to shift towards the healthier and safer trends of consumer’s intake lifestyle. For the emotional benefits, when consumers know first handedly that products that they consume are of highest quality and most of all organic, they would feel a sense of being healthy and increase good feelings of satisfaction knowing that they are eating the correct types of food and are starting to take better care of themselves. The main emotional benefit is certainly heightened self-esteem and satisfaction via the correct intake of organic products. In terms of self-expressive benefits, when people see the consumption of clearly organic products by another individual, it would certainly create a reaction of impression and respect as it is apparent to all of society that by having the correct and adequate intake of organic and lean products with the correct combination of exercise, that is the best way to take care of oneself. The consumption of organic farm products is certainly a method of self-expression because it creates the vision and perception of being healthy. To put this concept into perspective, compare the effects of two individuals, person A and person B. Person A is consuming a cup of organic farm yoghurt, and on the other hand Person B is consuming a bag of fried potato chips, the perception of character is clear that Person A would be perceived as the healthier person merely based on basic and logical reasoning and perception.

Conclusion

In the midst of the apparent shift in lifestyle trends in the United States of America, from consume quick and simple fast-food into the more selective habits of consuming organic and healthier options, the concept of an organic farm to be launched is a clear opportunity for success. Given the of establishment of operations and implementation marketing strategies follows and pursues the target market mentioned previously, alongside the work of excellent customer loyalty and retention, the organic farm concept will help change and shift the lifestyles of consumers in the United States of America towards the benefits of both the consumers, and the imminent success of the organic farm concept.
References
Kotler, P., & Armstrong, G. (2013). Principles of Marketing, 15th Edition. [VitalSource Bookshelf version], 83.
Barnes, C., & Blake, H. (2009). Creating and Delivering Your Value Proposition: Managing Customer Experience for Profit, 29.
Lamb, J., & Drew, H. (2011). Essentials of Marketing: Achieving Marketing Success Through Selective Targeting, 35.