Organicà: Feasibility report for our Trust

Final Year Project

BBA (Spring-2019)

Submitted by
Aqsa Shahzad Reg No: 150109
Muhammad Sayem Reg No: 150122

Faulty of Management Sciences

Air University School of Management (AUSOM)
Air University, Islamabad.

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 Final Year Project BBA (Spring-2019)

Organicà: Feasibility report for our Trust

Submitted By: Aqsa Shahzad (150109)

Muhammad Sayem (150122)

Supervisor: Dr. S. K. Shahzad

AIR UNIVERSITY SCHOOL OF MANAGEMENT, ISLAMABAD.

*This project is submitted to the Air University, Islamabad, as a pre-requisite for the degree of BBA.

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 Form 004B

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This is to certify that the BBA Project conducted by above mentioned students has been
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 Form 002C

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1. Cover/Title Page
2. Final Project Approval Sheet (Form 002-C) – duly signed
3. Candidate’s Declaration of Authenticity (Form 004-B)
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5. Executive Summary
6. Table of Contents
7. List of Figures
8. Mandate, Deliverables and Timeline
9. List of Chapters (Note: Chapter numbers and titles may alter based on type of project )
Chapter 1: Introduction and Broad Problem Definition
Chapter 2: External Analysis
Chapter 3: Internal Analysis
Chapter 4: Problem/Issue Analysis
Chapter 5: Solution
Chapter 6: Conclusion/Outcome: Declaration of the Extent of Mandate Achievement
10. References
11. Appendix
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13. CD – Softcopy of the document including data file

It is certified that the improvements (if any) identified during the defense have been made and
issues rectified to the satisfaction of Supervisor.

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Client Supervisor Internal Examiner Advisor Dean
 ACKNOWLEDGEMENT

First of all, we would like to thank Allah Almighty who has bestowed upon us this capability and
strength to complete this project to the best of our knowledge.

Moreover, we would like to extend our gratitude towards Dr. S.K. Shahzad who guided us and
helped us achieve our vision under his support and supervision.

We as researchers would like to acknowledge all the people of Pakistan suffering from deadly
diseases like cancer and people working towards a healthier solution.

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 ABSTRACT

The focus of this report is to create awareness amongst both the affluent as well as the
underprivileged classes of Pakistan about organic food. This report mainly deals with the
production and consumption of organic food and building the trust factor. We intend to bridge the
gap between two classes of Pakistan where the lower class will act as a supplier of organic food
and the upper class as the consumer, creating a win-win situation. This report talks of placing the
right amount of resources efficiently to set the best results. After spotting and fixing the pressing
problem relating organic food supply chain our trust will create a Pakistan where everyone will be
provided with ‘Khalis’ pure diets and good food.

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 Executive Summary:

Organica, a disease-free solution is a bridge between the rich and the poor. It’s a facility provided
to both parties creating a win-win situation. We will coordinate with the micro finance banks and
link them with the poor women as our main focus is on women empowerment so that they will get
financing and start working for us and more importantly for their better living.

People in Pakistan are suffering from numerous diseases at young age which were never heard of
before. These illnesses lead to unrest in the family life, as well as financial blows. Knowing how
expensive and time taking the medical procedures are, why not raise awareness for precautions.

Education and social media are making people aware about the drawbacks of organic food. They
do realize the implications of the kind of dietary intake they have. Organicà will act as a middle
party, providing people with authentic and certified pure organic food.

Organicà Laboratory

A place where different food products will be tested using state of the art technology equipment’s
ensuring that they’re 100% free of pesticides and other harmful chemicals. In Pakistan we have a
first mover advantage in starting this laboratory as no one is doing this already. Our relationship
with our customers is based on trust, consistency of being better and providing the best quality
products. Our mission is to alleviate poverty, the demand of organic food will be fulfilled by the
poor class of Pakistan. They produce basic products like eggs, milk or vegetables but don’t have a
proper distribution channel to reach the right parties. Organicà will provide them with a channel
and give them a source of permanent income. But, that solely depends on their food supplies and
how pure it is. As long as they keep providing pure food that is tested by Organicà and ensured
they’ll be a part of Organicà family.

Further, that food will be supplied to consumers who shop in supermarkets and farmers markets
making the healthy lifestyle very accessible for them. Although the price of organic food is almost
double than non-organic food, but the people should be willing pay more for it because if now they
will pay a bit more amount to get organic and healthy food, they will be safe from the expensive
treatments for deadly diseases in future.

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The production of organic food in both developed as well as developing countries had grown
surprisingly. Organic products share in Asia are continuously rising and the land that is contributed
for the production of organic food is approximately 4 million hectors. Pakistan Agriculture
Research Council (PARC) estimated that the overall area in organic agriculture enhanced from
35,000 acres in 2005 to 150,000 aces in 2010 which is a big increase and as the time is passing it
is increasing more is supposed to be double in coming years.

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 Table of Contents

List of figures

List of tables

1. Introduction ……………………………………………………………………………(15)

a. Background……………………………………………………………………...… (15)
b. Vision and Mission………………………………………………………………….(19)
c. Core competence……………………………………………………………………(20)
d. Objectives…………………………………………………………………………...(20)
e. Market gap analysis…………………………………………………………………(21)
2. Methodology …………………………………………………………………………..(22)
3. Description of Products and Services………………………………………………….(25)
4. Business Model………………………………………………………………………...(26)
5. Marketing Plan…………………………………………………………………………(28)
a. Marketing Mix……………………………………………………………………...(28)
b. Segmenting and Targeting ………………………………………………………...(30)
c. Attractiveness of the Market……………………………………………………….(33)
d. Positioning …………………………………………………………………………(33)
e. Points of Parity and differences……………………………………………………(34)
f. Brand equity………………………………………………………………………..(35)
6. Marketing techniques and Social media Plan………………………………………….(37)
7. Organizational Plan…………………………………………………………………….(40)
a. Board of Trustees (Hierarchy)……………………………………………………...(40)
b. Initiatives…………………………………………………………………………...(41)
c. Employee retention………………………………………………………………...(41)
d. Customer support…………………………………………………………………..(42)
8. Technology Consideration……………………………………………………………..(43)
9. Financial plan ………………………………………………………………………….(45)
10. Market Analysis ……………………………………………………………………….(49)

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 a. Internal Analysis…………………………………………………………………...(49)
b. External Analysis…………………………………………………………………..(50)
11. Survey analysis……………………………………………………………………..(55-61)
a. Questionnaires…………………………………………………………………….
b. Interview Analysis………………………………………………………………….(62)

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 List of Figures

Figure 1-Business Model Canvas ………………...…………………………… (26)

Figure 2-Positioning Map……………………………………………………… (34)

Figure 3-brand resonance Model……………………………………………… (36)

Figure 4-Organizational Structure…………………………………………….. (40)

Figure 5-Green Test Eco Device……………………………………………… (43)

Figure 6-Lacto mat Rapid Mini Device……………………………………..… (43)

Figure 7-Egg quality Analyzer………………………………………………... (44)

Figure 8-Survey Graph 1……………………………………………………... (55)

Figure 9-Survey Graph 2……………………………………………………… (56)

Figure 10-Survey Graph 3…………………………………………………….. (57)

Figure 11-Survey Graph 4…………………………………………………..… (58)

Figure 12-Survey Graph 5…………………………………………………….. (59)

Figure 13-Survey Graph 6…………………………………………………….. (60)

Figure 14-Survey Graph 7…………………………………………………….. (61)

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 List of Tables

Table 1-Seconday Research Links………………………………………....…... (23)

Table 2-Decription of Products………………………………………………… (25)

Table 3-Balance Sheet…………………………………………………………. (46)

Table 4-Depriciation of Capital………………………………………………... (47)

Table 5 –Income Statement……………………………………………………. (48)

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 1. Introduction
Background

The rich are dying because they are not having healthy food on the other hand
poor is dying because they don’t even have food.
History of Organic Farming:
Until the 1920’s people used the traditional farming methods, where all natural processes were
used to grow food. Things changed after the Second World War when research came out showing
that there were certain chemicals capable of killing insects. This was when the use of pesticides
began. (The History of Organic Farming, 30 Aug 2016,) Later, with an increased use to pests and
chemicals, people started looking for alternatives and healthier ways of growing food. Problems
started rising such as soil erosion, rural poverty and decline of crop varieties. So, they knew that
the soils health needed to be improved.
By late 1970’s awareness grew to a great extent. ‘J.I Rodale, founder of the Rodale Research
Institute and Organic Farming and Gardening magazine, is commonly regarded as the father of
the modern organic farming movement.’ (Maryland, 2012). Even though there was a rise in
awareness there were no set standards or rules for Organic farming and people had a hard time
adapting to the changes.

Growth process of organic food:

Organic agriculture is governed by strict rules and regulations from the government and the
environmental standards to be produced without the use of toxic chemicals and pesticides.
(Haumann, n.d.) Farmers are aware of the enrichment of soil and how to do so. Also, they knew
the result of this effort and how the plants they grow will be full of nutrients.
The process of growing organic food is totally different than non-organic food. For organic food
you do not adopt any artificial processes be it livestock, vegetables or dairy items etc.

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Health concerns in Pakistan:
Pakistan is the 7th populace country in the world that is estimated with cancer incidence of 148,041
new patients which means around 150,000 Pakistanis suffer from cancer each year and out of
which 100,000 people die each year. (Recorder, 4th feburary 2018)
Many Pakistanis suffer from deadly diseases due to the consumption of unhealthy diets. 90% of
the population doesn’t consume healthy vegetables and fruits per day. This also includes lack of
exercise and unhealthy lifestyle. 60% of deaths are caused due to diabetes and heart diseases.
While, 29% deaths occur due to cancer. (Tribune, April 7 2012)
More than 60 million people in Pakistan are living beyond the poverty line with limited finances
and no way of saving themselves from deadly diseases.

Women in Pakistan:
Out of total population of Pakistan 56,886,961 are women and the ones living in rural areas are
around 15 million. Pakistani women are almost 46% of the total population from which most of
them reside in rural areas, here they have minimal opportunities of growth and employment. Due
to lack of education and awareness only 12.51 million Pakistani women have decent jobs.
Although, in the recent years women have been becoming a bigger part of working class yet there
are very low job opportunities for the women living in rural areas. (Desk, August 18 2014)

Demand of Organic food:

The leading processors of Organic food are North America, Europe and Australia. While the
emerging parties are China, India and Brazil. (Jalan, 2014)
According to the Nutrition Business Journal the most highly demanded organic foods are fruits
and vegetables 41% followed by dairy and beverages. In Europe the demand is growing by day
and Multinational companies like Unilever is also incorporating this into their products like Lipton
Organic tea. The demand of organic food in Pakistan is growing, if we look at the global scale it
is expected to reach $323.09 billion (Monac, october 27 2018) This means the organic food and
beverages market will almost triple by 2024.
The total population of Pakistan is 203,389,398 and the demand of organic food in Pakistan had
10.6% percent growth in 2015. Pakistan has a potential to gain India’s $260million rise market as
the Europeans found chemicals in the grains. (Abduhu, November 2017)

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Organic food is the fastest growing sector of the food industry with global sales of $40 billion in
2006. Nowadays organic food cannot fulfill the evolving requirements of present era as it takes
longer time to grow and the yield of organic food is quite less as compared to inorganic food due
to which most of the countries are depending upon inorganic food.
Although people prefer to have organic food but unfortunately it is not available in abundance to
cater the sharply rising demand of food in the market and it is comparatively much expensive than
inorganic food which is beyond the buying power of majority of the people.
If we talk about Pakistan’s food industry, it’s one of the largest earning market. According to the
growing demand and preferences of people this market is developing day by day. Some of people
nowadays are becoming conscious about their diets and eating healthy food and realizing the
benefits of having organic food.

Pakistani farmers go Organic:

With the rising health problems and erratic weather Pakistani farmers are going Organic, but
without proper certification the quality of their produce becomes questionable. (Aamir Saeed, July
2, 2014). It is estimated that 33% of farmers in Pakistan have gone organic and more and more
acres of land is used for this every year. “The demand for organic products is high in the market
and I earned three times more just in six months,” said Khalid, who first cultivated organic
vegetables in 2011. Farmers say that this has a lot of environmental benefits too, it helped them
conserve water and save money that was spent of pesticides.
Small scale farmers are also encouraged to use bio fertilizers as they are safe and environment
friendly.
Pakistan has a great million-dollar export opportunity for organic products that can double in the
coming years.
Traditional food habits:
To bring back the trend of organic food in Pakistan we just have to make people understand a
simple concept of low cost and high maintenance. So, when they will eat organic food they won’t
feel the need to go to the gym for heavy workouts or going to the hospital for treatment of serious
diseases, because what they are eating is healthy and wouldn’t affect them in any way; unlike
inorganic food which is very harmful for their body.

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Organic food testing laboratories:
The increasing demand of Organic food has made people more sensitive towards the authenticity
of it. Certified organic food goes through a process of testing before it receives certification. This
guarantees that the food doesn’t contain any form of chemicals, pesticides or contaminants.
(TEAM, NOVEMBER 16, 2017 ). Different types of testing are carried out such as:
• Pesticide residue testing
• Antibiotics testing
• Mycotoxin testing
Around the world there are many labs present that provide services to different food producers and
suppliers and test food for them before it reaches the end users. One of them is Euro fins the test
for prohibited substances in food and follows industry standards.

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 Vision
Alleviate poverty and create a diseases free and healthy Pakistan

Mission
Provide healthy, certified, affordable and organic food to the people.

Our Vision is directly aligned to the vision of the Prime minister of Pakistan.

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Core competence

There are the resources and skills that a firm possesses which makes them stand out in the
marketplace. These are also the foundation of a company on top of which they build (Porter, 1990).
So, they need to be strong and concrete in nature. The Core competencies that Organicà will
possess are:
• Safe and healthy food
• Trust in nature
• Quality consciousness
• Pure food suppliers
These factors are further explained in the report

Objectives of Organicà:
• Organicà will create a disease-free Pakistan: Having organic food will save consumers
from cancer and other deadly diseases.
• To create awareness amongst people about the benefits of consuming organic foods, and
the implications of going with unhygienic substitutes.
• There will be a low indirect medical cost for rich: When they eat organic food, they will
be safe from different diseases plus save money from spending on expensive treatments.
• Organicà will work as an intermediary catering to both: rich and poor of Pakistan. By
providing employment to the poor and health for the rich.
• Will help the marginalized community to get connected to the high-end market under the
vision of Prime minister of Pakistan which is otherwise very difficult for them to do.
• The rich are dying because they are not having healthy food on the other hand poor is dying
because they don’t even have food, so we will help them as nobody else is thinking about
them.
• Pakistanis spend millions of dollars per year to import organic food. So, there is a huge
potential in Pakistan by producing organic food we can help Pakistan as an economy to
save the balance of payment, by producing organic food our export would increase which
would be favorable for foreign exchange. Our objective is to provide them with the real
and authentic solution in the country, so they don’t have to look for pricey alternatives.

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 • Export opportunities: As Pakistan is one of the richest agricultural economy in the world
so we can produce high quality organic food here and after fulfilling the demand in Pakistan
we can also export our goods and make good money.
• By providing micro financing to underprivileged women through NRSP one of the leading
micro finance banks in Pakistan, this is an initiative coordinating between micro finance
institute and the poor to empower the women who want to work but are unable to and
giving them a source of direct income. It will be a tripartite involving NRSP, Organicà and
the poor. Our director banking coordination will be handling this under his team there will
be a Chief financial officer and three financial officers all would be women. They will
make the women of villages to learn the process that how they can facilitate loans from
banks and get micro financing to work for Organicà. Our team of Chief financial officer
will coordinate with the microfinance business development officers. This will also help
the micro finance banks as their projects loans are misplaced many times and given to the
wrong people. So, their people will be trustworthy because our own selected persons from
union council will guide us that this is a local person and they have this much of land
available and they are the widows who can work for us. From the loan they will get from
micro finance banks they will buy land for organic food farming and buy hens. They will
process it and make it grow.

Market Gap Analysis

The market gap Organicá identified are:

• To make sure that the food customers are getting is actually pure and organic which will
be tested in our labs.
• Women have no source of earning so Organicá will provide employment to the women to
empower them, so they can earn for themselves.
• Healthy food is not available in the market due to which people have to spend a lot of
money on their treatments.

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 2. Methodology
Different methods were used to obtain data for our research. Primary as well as secondary
information was acquired from different sources. Observations, questionnaires and interviews
were conducted for primary research. For secondary research literary articles, sources, knowledge
of existing people in the business and consumers were used.
Primary:
• Questionnaires: Here we took a sample of 200 people and they answered questions that
helped us analyze their understanding of Organic food and purchasing behavior. The
detailed analysis is given at the end of the report.
• Interviews from consumers of inorganic food in the market and potential consumers of
Organicá.
• Interviews from people already in the business or claiming to deal with 100% organic food
• Observation
Secondary Information:
• Scholarly articles
• Magazines
• E-commerce websites
• Social media
• Facts and figures from credible government sources eg. Pakistan food authority, Pakistan
standards and quality control authority

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 Secondary Resources Table

Table 1
Name of Source Authors Name/ Link
Date
Organic Food Interek group http://www.intertek.com/food/organic-food-testing/
Testing
Food Testing NOVEMBER 16, https://testing-lab.com/2017/11/organic-food-testing/
Authenticates the 2017 BY
Food Products as TESTING-LAB
Being Organic TEAM
Pakistan farmers Aamir Saeed, July https://www.thethirdpole.net/en/
go organic 2, 2014
Future Looks Frank Giles. https://www.growingproduce.com/fruits/future-looks-bright-organic-produce-growth
Bright for Organic February 15, 2018
Produce Growth
How is organic Barbara Haumann https://ota.com/organic-101/how-organic-food-grown
food grown?
History of Organic University of https://www.sare.org/Learning-Center/Bulletins/Transitioning-to-Organic-Productio
Farming in the Maryland 2012 of-Organic-Farming-in-the-United-States
United States
Who Buys Organic Jennifer Chait: https://www.thebalancesmb.com/who-buys-organic-food-different-types-of-consum
Food: Different January 14, 2019
Business model Alexander https://canvanizer.com/new/business-model-canvas
canvas Osterwalder
Pakistan GDP Trading https://tradingeconomics.com/pakistan/gdp-growth-annual
Annual Growth Economics
Rate

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Government of March 2019 http://www.pbs.gov.pk/sites/default/files/press_releases/2019/Press%20release%20M
Pakistan Ministry
of Statistics
Willingness-to- Ullah Sana Waqas http://dpi-proceedings.com/index.php/dtem/article/download/23996/23630
pay for Organic Umar Latif Wasim
Food in Pakistan: Ahmad
The Effect of Muhammad
Motivational Sohail Jafar
Factors and MuhammadPervez
Mediated Role of NafeesAhmed
Attitude Xue-Rong
2018

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 3. Description of Products and Services
According to surveys carried out we have reached the conclusion that there are certain food
products that are demanded much more than others and more frequently too. To list them down in
categories we have compared the prices of Organic to Inorganic foods as follows:
Table 2

Food items Prices Non-Organic Food Prices Organic Food

Eggs Rs. 160/dozen Rs. 250/dozen

Chicken Rs. 170/kg Rs. 350/kg

Milk Rs. 78.96/liter Rs. 160/kg

Desi ghee/ Banaspati Ghee Rs. 200/kg Rs. 1500/kg

Tomatoes Rs. 150/kg Rs. 350/kg

Onions Rs. 90/kg Rs. 175/kg

Green chilies Rs. 99/kg Rs. 125/kg

Mint leaves Rs. 88/50 grams Rs. 200/40 grams

Garlic Rs. 150/ 500 grams Rs. 235/ 500 grams

Carrots Rs. 120/ dozen Rs. 235/ dozen

Organicá’s Services:
Organicá will be providing delivery services and a lab to test your organic food in order to ensure
that it is 100% authentic and pure. Also, Organicá will build a relationship of trust with their
consumers by ensuring that their needs are fulfilled to the max.
Delivery services.

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 4. Business Model Canvas
Figure 1

1. Customer segments: the segment mainly targeted by Organicá is middle to higher income
people. Who have an education of graduate or more and are doing a decent job. They should
be aware enough to understand the purpose of our business and pay extra for it.

Our most important customers will be the ones living in urban areas, shopping for food from malls
and stores. Mostly with a family and children.

2. Customer relationships: Organicá will have a strong relationship with their customers based on
trust and reliance. They will trust us for the work were doing and the 100% authentic food we are
providing them. Most importantly, they will join hands and help us grow to support this initiative
of human welfare in many more ways too.

2. Channels: Our customers will be reached through several channels but to begin with we
will distribute via super markets then later expanding to home delivery and online shopping.

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3. Value proposition: We are delivering a Cancer free solution to Pakistan, where we will
provide 100% authentic and tested organic food. It’s a building need amongst people facing
various diseases and spending millions on medical treatments. To build a healthier future for them
we help them take this step to save the cost of life.

4. Key resources: the resources that hold the utmost importance are our way of doing things
which can’t be easily replicated. The women who will be our suppliers, the lab we will set for
testing those products and relationship we will build with our customers.

5. Key activities: To have the best, hygienic and healthy food grown by reliable people, to
help the community by building a bridging between the rich and poor of Pakistan and to deliver
fresh organic production.

6. Key partners: for Organicá will be the women who supply, the banks who will help in
micro financing those producers and the importers of lab testing equipment.

7. Cost structure: the main costs are of the machines that will test the food, but they’re a very
important investment as they’ll ensure the quality standards.

8. Revenue streams: Our customers will be willing to pay for the safe and healthy organic
food we supply. They’ll pay directly as they purchase by cash on the spot and later once the food
home delivery starts they’ll either pay online or on delivery.

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 5. Marketing Plan

Marketing mix of Organic Products;

It’s important for organic food providers to not only position themselves as traditional food
providers but to make sure people know that the organic goods are a way of improving their health
and lifestyle. Therefore, Organicá refers to itself as a ‘desi’ food provider so people can resonate
with the cultural richness and natural purity the food holds.
• Product:
In Pakistan peoples know how of organic food depends on their education and exposure. For a fact
this cannot be called a new trend, it’s just a reemergence of an old one. People who had tried
organic food experience a difference in taste and believed it was much richer in flavor and less
plastic like.
The product is produced at its full age of growth which is a rather slow process. No form of
chemical is used to make the process quicker. Organic products have no pesticides, antibiotics,
artificial ingredients or synthetic hormones.
To start with, Organicá will be providing basic daily used food products and then maybe in the
future move into other delicacies. People will be properly trained to grow the product at the natural
pace, so it doesn't lose the essence of purity. Then Organicá will use their specialization to test the
good in their labs and hire professionals who can differentiate between pure and hazardous foods
by the look and feel of it to ensure quality.

• Pricing:
Organic food tends to cost more than traditional food. It requires much more time and energy to
produce hence costs are transferred.
• Almost 3 times more which made it difficult to consume
• Shelf life is less so harder to store
Consumers are price sensitive if we talk about majority
Producers think that people who realize the real worth of organic products are ready to purchase
at a premium.

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 • Promotion:
Based on trust- where Organicá will ensure quality and test food products.
In Pakistan word of mouth works more than certification ensuring quality. So credible people
whose word is trusted amongst many will be used to spread the word about Organicá and their
functions
Social media is a big resource for startups and companies who need to spread wide. It provides a
great platform for people to interact, engage and discover new brands.
Organic production is about ethics not only health; factors such as saving the environment, cruelty
to animals should also be highlighted
To remove the organic label and use (desi) to increase familiarity and make it feel more accessible
Putting up stalls and posters in super markets where people go for groceries, so they can see
alternatives available
Cook books and food magazines also nowadays cooking pages on Facebook with short videos
Permission marketing via email
Cooking shows and festivals e.g. Islamabad Eat and Coke fest
Giving back to the community via charity events
Place:
Organic food is a market for people who can understand this and afford it.
Metro, Carrefour and Al-Fatah
Online buying and selling via an app or website
Social media
Farmers markets like Kuch Khaas in Islamabad
Home delivery on phone calls
Packaging:
The Packaging of organic food is a very crucial factor and it’s a perishable item and can be spoilt
very easily if not handled with care. Also, many vegetables can’t be put in the same storage place
or packed together.
Stand-up pouches: several layers of barriers film laminated together, this not only protects but
stands on the shelf. These pouches have printed on the back labelling of what they contain all
nutritional facts that will be helpful for the customer in choosing.

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Organic food packaging sleeve roll: for meat, cheese, fish, fruits and vegetables. It’s transparent
and has a seal strength
Laminated material: this is a roll of film that can easily be used to cover food of any shape and
size wrapped around them 2-4 times to make it properly sealed. This ensures long shelf life, high
quality and strong sealing length

STP- Segmenting, Targeting and Positioning Organicá:

Segmentation:
This is the process of dividing people in specific groups according to similar attributes they
contain. These consumers tend to respond to marketing strategies similarly and a product like
Organic food can yet can’t be targeted for the mass market. To be precise about the customers
there are specific segments that need to be marketed.
In order to be more efficient with time, money and other resources it’s important to segment people
sensibly. Targeting specific consumers will enable us to market our products in a cost-effective
manner. There are different ways to segment consumers which include:

Psychographic Segmentation: here a market is divided into groups according to consumer’s

lifestyles or things they believe in. This may also include their habits, hobbies and spending
patterns. This form of segmentation is very important for Organicà as we aren't targeting the mass
market. We need a group of people who like to stay fit, workout and are health conscious.
This bunch will be highly aware of the toxic food they are in taking and want to change into a
healthier lifestyle or maybe they already have. Also, it's not necessary that all people in this group
already consume organic food, but they might have an inclination towards it.
Green products are said to be pricier as compared to normal food so we need to see if this specific
group is willing to pay that cost and they only will if they understand the long term benefits of it
and how it'll serve to the environment as well.
The kind of people in this segment will be THINKERS who will make rational decisions by clearly
choosing between alternatives. They are usually high-income groups who make sane decisions,

30
they are educated, well reputed and responsible individuals. These people are also well aware of
social changes and concerned about the society.

Demographic segmentation:
Age: 23-60 and above
Income: middle to higher income bracket
Gender: male and female. But most studies say that females have a more positive attitude towards
organic food and health benefits. As women in Pakistan usually make food and purchase it they
need to be targeted more than men. Also, woman act as a back driving force of most household
purchases.
Educational qualification: above high school, people who usually buy organic food are more
educated and tend to have a higher disposable income.
Also married people with families are most suitable for this segment as they have children and
their health to look out for. Also, these people tend to dine out less and prefer homemade meals
even in lunch when they're not at home.

There are said to be 3 key organic demographics:

• Periphery consumers: these people are just getting to know about organic food, they’re not
really aware or doing anything about it but getting a hang of it.
• Mid-level organic consumers: these are the majority types who are not only gaining
knowledge about organic food but trying to increase their buying too. They are bringing an
obvious change in their lifestyle.
• Core consumers: these are still a small group of people who are completely invested to the
idea of organic food and are hard core consumers of it. Their attitudes and behavior both
depict this activity.

Behavioral segmentation:
Divides consumer market into segments according to their buying patterns. Here consumers are
divided on the basis of their knowledge of organic food- as we know people in Pakistan are wholly
aware of it or can’t differentiate between both. Even if they can they have a lot of trust issues
regarding it.

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Consumer’s attitude towards organic food is important for us as this attitude will lead to the
purchase or not. The trend of purchasing organic food is growing and people are becoming more
accepting of this alternative. The environmental concern, health concern and changing lifestyle are
a core reason of this changing behavior.
New and potential consumers are a tricky segment and educating people and moving people from
one buying pattern to another isn’t easy in a country like Pakistan. Due to higher prices and the
slight confusion as to what organic means, here educating your consumers is key. So, the
advertisements made would be rather descriptive and explanatory.
• Give your customers a proper organic buying guide
• Tell them the advantages of going green
• Help them make sense of why it costs more than traditional food

Geographic Segmentation:
Is about where your potential customers are located in the geographical context. Organicá’s
customers are mostly residing in major cities of Pakistan such as Islamabad, Lahore and Karachi.
Also, in areas like Defense housing authority or sectors F, E and I. As these people are more
affluent and can afford to pay more for food.

Target Market for Organicá:

The poultry industry of Pakistan is worth 750 billion rupees. There are about 20,000 farms that
produce for the consumption of people. In Pakistan people are consuming 17 grams of protein
while stats show people should be consuming 27 grams of protein per day.
18000 million eggs are produced per year while 2250 million kg meat is consumed per annum.
This shows a humongous market opportunity and demand.
Segments that can be targeted for the organic food market are:
1. Age 20-40, Education: above middle school, income: above 50,000 per month. Lifestyle:
gym enthusiasts, health conscious and diet conscious. Particular about their healthy lifestyle and
follow a lot of diet plans.
2. Age 35-50 are more likely to pay a higher amount for this. These people in general would be
more financially stable and dine out less as compared to 20-30’s. The higher the income the more

32
people are willing to pay. Income about 25000 are 25% more likely to pay for organic food.
Education has a positive impact on willingness to pay. The more educated people are the more
aware they are. At this age parents are more concerned about their children’s wellbeing and diet,
so they can be targeted indirectly.
3. for the sick, terminal illnesses and old

Attractiveness of the Market

The attractiveness of the market is judged on the basis of:
• Growth potential: about $1.4billion are spent by Pakistanis on import of organic food items
that can easily be grown within the country. Only because of the lack of resources and trust
people choose to go out of their way and spend more for the same thing. Pakistan’s growing
demand of agricultural products imports rose to $21.3 billion in 2018. This shows there’s
great market growth potential in this sector and a huge gap lies.
• Competitive intensity: as for now there is no major threat in the market only small infant
businesses that are either online or on a very seasonal basis. This shows there isn’t a great
threat and a certified lab testing food products would be a unique idea.
• Profitability of the segment: we are expecting this idea to be a hit, as this is something that
people need, it’s a commodity yet a high involvement product as people will put in thought
to switch. Once they realize the benefits they’ll compromise on other things to buy our
products.

Positioning:
This concept usually revolves around how your consumers perceive or think about your brand or
products in relation to other competitors. To create the right brand image, it’s very important for
Organicá to position themselves in the right way. For the customer service to the pricing every
step will contribute in brand building and positioning.
It’s, important to listen to your customers, their needs and what they want. When it comes to our
brand most attributes that will be tapped are intangible this will include things like trust, emotions
and health. But the price is also a very important attribute which according to our research is a
pressing matter.
If Organicá is placed on a positioning map in regard to traditional suppliers of non-organic food:

33
 Figure 2

Points of Parity:
• Basic food
• Can be called a commodity for daily use
• Widely used in villages and growth can be done in Pakistan
• Replicable by others
• Already being provided
Points of Differences:
• Quality tested and assured
• Much more healthy and nutritional
• Ensures a natural growth process
• Building a trust-based relationship
• Hygienic and good taste
• Long term benefits

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Consumer based Brand Equity (CBBE) pyramid:

Brand salience:
The first step is about salience or awareness here you make sure that your brand stands out from
the rest and the customers are aware of it. Different market segments may have different relations
to your brand and different perceptions about it.
Organicá needs to create an image of selling high quality, organic and pure products.
Brand performance:
Revolves around how well your product meets your customer’s needs. So Organicá needs to base
their performance on reliability, empathy, effectiveness and authenticity.
Brand imagery:
Is about how well your brand meets your customers’ needs on a social and psychological level.
So, the image that we create will be about clean eating, healthy lifestyle and green.
Consumer feelings:
How your consumers feel about you, it’s very important that they feel secure and trust you as a
brand. Organicá has to be likeable and unique and needs to build a high self-esteem.
Consumer judgments:
Consumers constantly make judgments about brands that can be positive or negative. Organicá
needs to create a positive judgment in their consumers’ minds by providing them with a superior
value and a credible reputation
Brand resonance:
This is very hard to achieve that’s why it lies on the top of the pyramid. This is the level where
your customers start relating to you and feel connected to you. Organicá’s resonance should
revolve around trustworthiness, high standards and lifestyle. A lifestyle that resonates to your
customers.

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Figure 3

36
 6. Marketing techniques used by Organicá:

To build a brand community:

As Organicá is a human welfare project so it’s important to involve people to join hands and make
it a success. It’s a win-win for the rich and the poor, together as a community they can share
problems and build into a strong brand working towards a healthy and safe environment.
Brand communities can be made on social media or through meet and greets where people can talk
on a platform and have a productive interaction.
Training and education of customers:
Through our advertisements and social media Organicá intends to educate their customers about
real desi food and how to distinguish it. Also, to raise awareness about the prices so people know
who is selling things on fair prices. As these products aren't available in abundance so a familiarity
needs to be created amongst people. Our products too will speak for themselves with the packaging
and descriptive details on them.
Social media:
Is a very strong platform that can be of a great help. For starters it’ll help us go through peoples
evoked set and make an appearance. Then we will engage with customers and viewers by posting
videos and images of how we carry out our processes, so they understand the authenticity of it.
Also, we can hold lucky draws and winners will get prizes or get to spend a day with us and see
how we do everything. The more transparent we keep everything the better relationships can be
built.
Face to face:
Sales representatives can be a great help to raise awareness and interact with end users on a daily
basis. They can convince them on the spot to buy organic eggs rather than non-organic ones if they
give them a good enough reason to
Print media:
Is a very strong force to make people act instantly, if it conveys the right message at the right time
you might as well be attracting many people who had no intention to buy that food in the first
place.

37
Respect for the environment:
People these days are becoming highly sensitive to the environment so if advertisement ideas are
environmentally friendly people will automatically have a soft spot for the brand and would want
to go out of the way
Word of mouth

Social Media Plan

Our social media manager will be handling our Facebook account, Instagram account, Snap chat
and our Organicá website.
Facebook account:
Here we will do our advertisement by posting pictures of our products that would attract the
customers; we will show them the real products that we are producing. Prices of the products will
be mentioned along with them. People can even order their products through our Facebook account
very easily as the online delivery will also be given to our customers.

Instagram account:
Here we will also be posting pictures of our products with prices so that people who don't use
Facebook can reach us through Instagram and order their food.
Snap chat account:
Nowadays we have seen that Snap chat is very popular among everyone in our society. So we will
be posting the videos of our processes from where we are getting our products how we are getting
them and how we are testing them to make sure that we are giving the pure food to our valuable
customers. This will influence the customers a lot while they will see that the products are being
tested in our lab and other all processes, so they will be satisfied, and they will trust Organica is
fulfilling its promise of providing pure, organic food.
Website:
On our website there would be different sections

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Homepage:
Home page will show in detail about Organicá that what it is about, what our vision and what our
mission statements are.
Our products:
Description of our products in detail and their prices mentioned with them.
Our services:
We will be doing online delivery
Contact:
Contact number through which customers can get any type of information related to Organicá or
they can register any complaint or issue they are facing. Our customer services department will
help them out.

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 7. Organizational Plan

Board of Trustees

Figure 4

First of all, Organicá will have a decentralized system, everyone in the hierarchy will have the
authority to make their independent decisions and give suggestions. There will be no single
authority who will make decisions.
There are three main initiatives of organicá which will be handled by directors as mentioned in the
hierarchy.

1. Organic food Literacy Program (OFLP)

Under this we will have different trainers, speakers and a team of three women at the level of union
council to perform all the functions. We will identify at least three women so if any one of them
cannot work we will have two others on backup. One will be the Procurement officer and under
her there will be two assistant procurement officers.
• We will first train them. We will be bringing a master trainer in every union council so that
they will further train the people from villages for free and create awareness among them,
we will be paying them for this.

40
 • They will train all the people of village in organic products through awareness about
• What is organic food?
• Why it is important?
• How it helps preventing cancer and other deadly diseases?
• How will it be a way of earning for them? So they will basically tell them that they should
start producing it for their own benefit as well as the benefit of whole society.

2) Coordinating between microfinance institute and the poor

Director banking coordination will be handling this under his team there will be a Chief financial
officer and three financial officers.
They will make them learn the process that how they can facilitate loans from banks and get micro
financing from the banks for the people of village to work for Organicá.
Our team of Chief financial officer will coordinate with the microfinance business development
officers.
This will also help the micro finance banks as their projects loans are misplaced many times and
given to the wrong people.
So, their people will be trustworthy because our own selected persons from union council will
guide us that this is a local person and they have this much of land available and they are widows
who can work for us.
From the loan that they get from micro finance banks they’ll buy land for organic food farming
and buy hens. They will process it and grow.

3) Core Business operations (CBO)

Under this our Chief operating officer will have suppliers from who we will pick up the products
for that purpose we will have delivery personals we will identify the genuine product we will grade
it and provide it to the right customer.
Our representatives will also be women from the village who will be standing at our stalls at
different places like Metro, Carrefour etc.

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Employee retention

Employees are basically the asset of any organization, if they are satisfied and working in the right
direction the organization will be able to achieve its goal in more efficient manner so Organicá
will make sure
To pay right amount to all our employees according to their designation.
We will offer them flexible work schedules so that they will work efficiently and effectively.
Organicá will try to provide them best and comfortable working environment.
Will offer trainings to the employees to increase their performance.
Offer them the benefits, rewards and recognition for their work so that they will be motivated to
pull in the efforts in our long-term goals.

Customer support services department

This department will include a team of following people
1. Customer service director:
He will be responsible for the day to day management of customer services and will provide
leadership and direction to the supervisors and managers to ensure that quality customer service is
provided and maintained.
2) Customer service manager:
He will be responsible for the overall supervision and functionality of department, he will work
under the direction of customer service director.
3) Customer service representative:
He will be responsible for providing customer care. He will be directly linked with the customers
if they are facing any difficulty or have any complaint, they will contact the representatives.

42
 8. Technology Consideration
Organicá will be using state of the art technology in their food testing lab which will make sure
that the food which is Organicá certified is actually 100% pure and healthy.
The advanced technology machines that will be used in our lab are:

Green Test Eco Device

Figure 5

This is a very small and compact device having different options present on the device for example
fruits, vegetables and meat. You just have to select the one you want to test and there is a small
needle at the bottom; inject that needle in whatever you are testing, and it will tell you the number
of nitrates present in it. There is also a color indicator which shows that whether the food you are
testing is harmful or not.

Lacto mat rapid mini

Figure 6
This is a Milk analyzer, it takes only 18 seconds for the measurement of one sample. It can save a
memory of last 50 measurements having a waterproof keypad. It tells you about the amount of
Fats, proteins, temperature and how much water is added to the milk.

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Egg Quality Analyzer

Figure 7
This machine is used to measure the weight of eggs, it tells about the color of yolk and the quality
of egg whether it’s organic or not.

44
 9. Financial Plan

Balance Sheet Analysis:

The balance sheet we constructed is a five-year financial plan based on predictions and facts from
historical data. Most things that are purchased in the first year are a onetime thing and will survive
from 5 to 10 years. But as its capital so it will depreciate over the years, for that we used the straight
line method to show the same amount of depreciation each year by using the formula:
value/expected useful life.

Non-current assets will be a onetime investment and in the coming years we may purchase more
machines according to the rise in demand of Organic food.

The short-term loan taken from the bank will be returned on a standard interest rate of 10.75% per
year in equal monthly installments or annuity. In total the loan is of ten years and is equally divided
on that time period.

Linking the Balance Sheet to Income statement:

• In year 2021 the third year of the startup as we will be earning enough revenues to afford
another Green test Eco device we will purchase it for PKR. 22,000. Due to increase in
demand we will require more machinery, and this will be another investment as the old
ones will also be depreciating
• Furthermore, in 2022 we will purchase a Lacto mat Rapid mini as it’s pricier and we need
more income for it, which is worth PKR. 183,000. As previous one depreciated to Rs.73,
200 by then a new one will be added to the Balance Sheet and this will be balanced by
putting that into Owners equity as well.

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Table 3

46
The Depreciation of Capital

Table 4

Different machinery has a different life and durability, so their values depreciate over time and as
the usage of testing machines will be much more frequent due to sales we will predict a 5 year
depreciation.

Income statement

The income statement we made also consists of a five-year plan which consists of the sales, we
predicted sales by finding out the total population of Islamabad then finding out the percentage of
our segment which was 10% of the total population, we tried to keep the figures as real as possible.
Then we allotted weights to the products that will sell over the years, we allotted all organic food
products equal weights and calculated the revenues that way.

If the financial plan carries out this way clearly Organicà will be a success when it comes to net
income and revenues.

Our sales also depend on our ability to purchase, as we get cash back we will be able to buy more
supplies, test them and bring them into the market. It’s a loop process. Also sales increase each
year with the increase in GDP rate of Pakistan the growth of the economy 4.94% is directly linked
to the growth in our sales.

The wages and income of people were given on standard market rates and prices of products will
increase according to inflation rate which is 9.41%

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Table 5

48
 10. Market Analysis

Internal Analysis:

SWOT Analysis

Strengths:

• High nutritional value and provides a healthier lifestyle.

• Saves you from many hazardous illnesses
• Better taste
• Supporting the local economy in many ways, you are buying the organic food will help out
so many deserving poor households
• Saving the environment in many ways
• Can be great exporting opportunity once proper labs are made in Pakistan, could lead to a
much more prosperous economy
• Healthier lifestyle and happy household
• Increasing awareness and demand by customers
• A good distribution channel can create a well-organized exchange of goods

Weaknesses:

• Premium pricing or higher prices may take away a lot of price sensitive customers in a
country like Pakistan
• Shelf life is lower, and higher perishability of products will make it hard to store in case of
low sales
• Seasonality
• Accessibility is low in Pakistan, products aren’t easily found

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 • Trust issues about the authenticity
• Lack of awareness and knowledge about organic food
• Most people can’t afford this and consider it as a luxury
• Transportation issues
• Takes much longer to grow

Opportunities:

• Fast growing market

• Customers are becoming more aware of it by education and social media
• People are getting more diseases and concerned about health
• Environmental concerns are increasing
• If consumer trust is developed it’s a very successful idea

Threats:

• Highly dependent on weather conditions

• Consumers trust is very hard to build and very easy to break
• New entrants in the market can take over market share
• Consumers may shift due to higher prices
• Certification problems
• Non-organic food demand
• Other cheap alternatives available in the market
• Lower prices of non-organic food
• External Analysis

PESTLE:

This is a detailed PESTLE analysis of Organicá which discusses about the political economical
social technological and environmental factors which will be affecting the firm positively or
negatively, by determining these factors it will help the firm to make strategies to avail
opportunities and eliminate threats.

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Political

Keeping in view the present situation of Pakistan the vision of present government is what
Organicá aims to do that is to alleviate poverty from Pakistan. As Organicá will help empower
women and create jobs for them which would ultimately minimize unemployment and help them
living a better life and earn livelihood.

Organicá will also get connected with the union councils of different areas from where we will get
our products. They will help us identify and find women who can work for us and become the part
of Organicá family.

Organicá is also applying for the initial funding from USAID to help us start our trust and make
Pakistan healthy.

Economical:

The world of organic Agriculture says that the organic food products market has been growing at
the rate of 10 - 15% from the past 10 years.

Food is considered as the Pakistan’s second largest industry. As Pakistan is an agrarian society so
we have an advantage nobody is as good in agriculture as Pakistan. Organicá will also be providing
employment opportunities to lots of women who don't have any source of earning so in this way
they will have a better life to live. Organic food will also help economically if we start exporting
our food products in future which will contribute in the economy of Pakistan. In terms of price
stability some external factors can also affect the prices because the growth process of organic
food is slow and if the demand would be more so there may be increase in the prices of products.

Social:

Nowadays if we see that due to social media people’s preferences are changing in Pakistan. There
is a shift in the lifestyle and traditional eating habits. People are becoming aware and are more
health conscious. They can now figure out easily that whatever they are eating is good for their

51
health or not and the food they are eating is grown artificially which will affect their health, so
they prefer organic food. If we talk about 20 years back people always used to eat organic food,
then there came a shift and maybe due to more demand people started eating non-organic food but
now when they are facing the bad effects and health problems caused due to non-organic food they
are again going back to the organic food to remain healthy.

Technological:

Through the use of technology, we will make sure that we will not compromise on our quality and
provide the customers with the best quality. In Organicá state of the art technology machines will
be used to make sure that the products Organicá is providing are 100% pure and organic and good
for the health of consumers.

Different types of machines will be used for food testing in Organicá Lab. Using social media
Organicá will be advertising their products and give people awareness about the organic food
which will make them remain fit and healthy.

Organicá will also provide online delivery which will make easy for the customers to get their
products, they just must visit our website of any social media page to order their products and they
will get the product at their doorstep.

For packaging machines will be used to pack the products which will save the time and cost as
well and minimize the defects.

Legal:

Organicá will fulfill all the legal requirements of the trust to start. The main focus of Organicá
will be to follow the environment protection law and especially the labor law which is rarely
followed by anyone in Pakistan. The minimum wage of labor in Pakistan is 12000 PKR.

52
Environmental:

Growth of organic food doesn't use any type of chemicals or pesticides due to which the soil would
be safe and also there will be no water contamination underground.

Production of organic food also preserves the local wildlife.

Consumption of organic food also helps people to remain safe from deadly diseases on which they
had to spend a lot of money for the treatment.

It helps in conserving biodiversity to fight against global warming.

Porter Five Forces:

Threat of new entrants:

In this case threats of new entrants are high. As the demand of organic food is growing day by day
so people may be attracted to invest in this business. Although the technology is advance and the
equipment that will be used in the lab is expensive but it’s not above the reach of most of the
people in Pakistan. But on the other hand, the business model of Organicá is a bit different. It is
working for the welfare of the society to alleviate poverty from Pakistan, to make Pakistan cancer
free. So, anyone who may be coming in this business will come from the mindset of generating
revenue. Not to help the society like Organicá is doing.

Bargaining power of suppliers:

Bargaining power of suppliers is low. Because it's not a concentrated market as we know that
Pakistan is an agrarian economy and we have abundance of suppliers available in the market. If
someone refuses to give us we can buy it from other so many suppliers. Although the process of
growing is slow but it's not difficult to grow. When we will help the women in financing to grow

53
organic products, so we will not face any difficulty in bargaining with them and also, we are
providing them a way of earning.

Bargaining power of buyers:

The bargaining power of buyers in this case is low. As we will set prices by ourselves because the
food we are providing is not available everywhere. First of all it is organic and nobody gives the
guarantee that the organic food they are providing is actually pure which Organicá will make sure
by testing it in their lab .When they will know that whatever they are buying is healthy for them
and indirectly it will lower their medical cost so customers will be willing to pay higher prices for
these products So these all reasons will make the bargaining power of buyers low.

Competitive rivalry:

Competitive rivalry is low. There are firms who are doing organic food business in Pakistan but
what Organicá is doing is totally different as we test food in our laboratory and make sure that it
is organic and healthy. In other countries this is happening but not in Pakistan. So Organicá also
have a first mover advantage in this case. So Organicá doesn't have any competitors who are
executing the same business model as them.

Threat of substitutes:

Threat of substitutes are high. The biggest substitute of organic food is non-organic food which is
mostly consumed nowadays so in case organic food is not available they will shift towards non-
organic food. To handle this situation, we will give awareness to the people about the long term
benefits of organic food. If they are paying a bit more for organic food that is good rather than to
pay for expensive treatments, they have to face after eating non organic food produced with the
use of chemicals and artificial procedures.

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 11. Survey Analysis

Questionnaires

Q1.

Figure 8

The purpose of the first question was to see people from what kind of professional backgrounds
are filling the survey. As per our target market we need educated individuals who’d be interested
in purchasing the food and paying more for it.

So as per the results:

Students: 64.2%

Private Service: 17.9%

Business men: 6.5%

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Q2.

Figure 9

As we are selling a high priced product our target market was to be from a stable economic
background. People in Pakistan thrive, they don’t have the resources to afford expensive food even
if their health is on stake. So it’s important to recognize the cluster that can afford to purchase a
slightly pricier alternative keeping in mind the benefits. We got a much diversified lot.

So the majority of our respondents were:

Above PKR. 300,000/month: 15.4%

PKR. 40,000-60,000/month: 12.4%

PKR. 80,000-100,000/month: 9.5%

PKR. 100,000-120,000/month: 11.9%

PKR. 200,000-219,000/month: 6%

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Q3.

Figure 10

This was a very important question to be asked in the beginning. People all over the world have
their own assumptions about Organic food and that’s why are unable to differentiate it or really
know the benefits of it. In order to correctly target our market it was important to see what people
think and if they need a lot of learning about it. Apparently most of them think it’s a natural growth
process which is true but not the only thing about organic food.

According to the responses:

Natural growth process: 55.2%

Healthy and cancer free: 31.8%

Chemical and pest free: 31.3%

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The looking and tasting different weren't chosen by many although this option gave them the
liberty to choose more than one option which shows they most probably haven't tried or seen
organic foods as they do look and taste different than normal non organic food.

Q4.

Figure 11

In order to sell something, first we need to predict the demand. It’s very important to know how
many people have incorporated this food in their lives already. If they have, then how often do
they consume it

Our survey did give a favorable response as to users of Organic food

Ones consuming several times a week are the majority: 37.3%

Once a week: 21.9%

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This shows people are consuming Organic food in Pakistan and if within a small sample so many
do then shows there’s great demand for it.

Q5.

Figure 12

When initiating the idea of Organicá, the thing we were most skeptical about was the trust factor
amongst people. This clearly shows Pakistani people do not trust brands claiming to be green as
very pure and authentic. They can't be blamed for it, as huge brand names are using big words to
manipulate customers into buying their products by using terms as nourishing, fresh and healthy.
When they really aren't any of those. So, people have started questioning them and spending more
preferring imported food items that they trust.

83.1% people are doubtful about it so as Organicá’s core goal is to build that trust with solid facts
and transparency, we shall revive that faith.

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Q6.

Figure 13

As future sellers of Organic food we needed numbers to see what basic food items are consumed
more than others. This is important, so we don’t over produce goods that go to waste, as organic
products are highly perishable so we intent to sell them fresh and not store them.

Vegetables are the mostly highly consumed food item: 111/102 buy them often

While Milk is brought more by people in the very often category: 72/102

Followed by eggs which are also bought very often: 67/102

Meat is something that can be frozen (stored) and doesn’t need to be purchased repeatedly but
fruits do.

So, the most demanded items on a daily basis are milk, eggs and vegetables.

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Q7.

Figure 14

In order to sell things, it’s important to know what factors matter most to consumers while making
purchases.

Price is the number one factor that people have highlighted as very important. Then after that the
most significance is given to the organically produced goods or desi products. So, these factors
give us an insight into how people feel and think while choosing products.

A brand name is also highly important for them; hence, we plan on building a strong reputable
brand name that can reflect over our performance. Also, a lot of emphasis is paid on packaging
too, as that is the first impression that goes to the viewer.

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Interview:

We visited Carrefour for an interview with their operational manager and our focus was to know
about what business model they are using, how the products are delivered to Carrefour and the
process of getting cash back.

1. We asked them that if they keep inventory at their store or not?

They keep their inventory against the sales they have done which is 98% against their sales value.
They always have sufficient inventory available with them according to their sales.

2. Another question was how often do they restock?

They do their forecasting on time as in the start of the month people go for grocery for the whole
month, so they restock their products accordingly by keeping in view the historical data of past
sales. They also do seasonal forecasting that which products demand is more in which season, so
they manage their inventory accordingly. It also depends on how much are the average sales.

3. What is the cash back procedure and time?

When you place your products at Carrefour you just sell them, and the cash is collected by the
store and they give you the cash back after 90 days (3 months) and the date of getting cash is 15 th
of the ongoing month.

4. We asked them about their estimated sales per month?

Their sales vary from store to store in different cities but at Carrefour DHA sales are approximately
400 million according to them.

5. How much rent they charge for a stall?

There is no specific decided amount of rent, it all depends on the company’s working capital and
the rent is charge according to that. If the company is doing any specific promotion displays so for
that they charge fee according to the nature of promotion.

6. Sales representatives are paid by the company or the store?

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The store has nothing to do with the pay of the representatives as they are hired and paid by the
company whom they are representing. So, their pay is decided by the company they are working
with.

7. How much the profit is shared amongst the company and the store?

It is not necessary that every store located in different cities goes in profit each month, so to justify
the performance of country overall, each company share its profit at country level. The profit of
all the stores in the country is seen and then it is shared accordingly.

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References

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Available at: https://www.sare.org/Learning-Center/Bulletins/Transitioning-to-Organic-
Production/Text-Version/History-of-Organic-Farming-in-the-United-States [Accessed 18
Apr. 2019].https://ota.com/organic-101/how-organic-food-grown

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• Orgprints.org. (2019). [online] Available at: http://orgprints.org/10914/1/10914.pdf
[Accessed 18 Apr. 2019].https://www.thethirdpole.net/en/2014/07/02/pakistan-farmers-
go-organic/
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by 2024, According to New Report. [online] Available at:
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•
• ab.1.1.0i10l10.7794.12100..15678...0.0..0.322.4031.0j2j15j1......0....1..gws-
wiz.......0i71j35i39j0i131j0j0i67j0i131i67j0i10i67.hujwmrfOC-Y
• https://nation.com.pk/17-Nov-2017/pakistan-can-capture-india-s-260m-rice-share-in-eu
• https://tribune.com.pk/story/361020/world-health-day-pakistanis-afflicted-by-unhealthy-
diet/
• https://fp.brecorder.com/2018/02/20180204341138/
• https://www.pakistangendernews.org/womens-employment/
• http://www.pakistaneconomist.com/issue2003/issue29/f&m4.php

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Plagiarism Report

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