Organic Products marketing

1. “A study of Customer Awareness for
Organic Food
Products:Opportunities and
Challenges for SME’s in Jaipur.”
By
Shraddha Sahay
Asst Professor
Poornima University

2. Introduction
• Organic foods are processed without any
artificial ingredients, preservatives or
chemicals. Organic food products are obtained
through environment friendly farming
techniques which contributes to the final
product and production method.

3. Review of Literature
Magistris,2007 et.al It has been empirically
investigated that socio-demograhic
profiles,food buying behaviour and Nutrional
knowledge of the consumers are most likely to
affect the awareness level and purchase
decision of organic food

4. Review of Literature Contd…
Stevens-Garmon,2007 The age factor does
not seem to play an important role however,
few studies have resulted that younger are
more aware of organic food and slightly more
willingly to pay for purchase the same

5. Review of Literature Contd…
A study by Ling (2013) has concluded that
environmental attitude and self-efficacy were
positively correlated to the green consumers’
purchasing behaviour of organic products.

6. Review of Literature Contd…
An earlier study by Tobler et al (2011) on
consumers in food was associated with
consumers’ beliefs, willingness and real
behaviours about green food and concern
towards contribution towards a safe
environment.

7. Research Objective
• To assess and evaluate the factors facilitating
the consumption of organic food products in
the defined area.
• To analyse the potential market for SME’s for
organic food products.
• To understand the consumer perception
towards organic food products.
• To analyze the Make in India concept for
organic food products marketers.

8. Research Methodology
• The study is based on primary survey of 96 respondents who are
residents of Jaipur using a structured questionnaire.
• The questionnaire was framed to understand the responses related
to food safety information and concern, awareness, attitude and
behaviours towards organic food.
• The socio-demographic profiles of the respondents had been
considered on parameters such as gender, age, education level,
occupation and household income.
• For data analysis techniques descriptive statistics, cross tabulation
and chi-square test using SPSS 15.0 has been used

9. Research Methodology Contd..
• The socio-demographic profiles of the
respondents had been considered on
parameters such as gender, age, education
level, occupation and household income.
• For data analysis techniques descriptive
statistics, cross tabulation and chi-square test
using SPSS 15.0 has been used

10. Data Analysis
Socio-
demographic
Aware Unaware Chi-square Significance
Gender
Male:32
Female:42
Male:21
Female:18
8.52 0.04
Age <25 -20
25-35-38
36-40-41
Overall 23 21.152 0.0
Educational
Respondents
Post Graduate: 36
Graduate:20
Secondary:10
Overall 38 38.72 0.00
Occupation Service:52
Business:21
Housewife:20
Retired:11
32.61 0.08
Monthly Income < Rs 25000p.m
25000-50000p.m
50000-10000 pm
<100000 p.m
12.61 0.00

11. Factor analysis
results for potential
organic consumers
Factors
Mean Factor Loading Variance Explained
(%)
F1: Humanists 27.12
Organic farming
leads towards
hunger & poverty
alleviation
2.83 0.675
Organic farming
offers more
employment
opportunities
2.67 0.239
Market demand for
organic food has
positive impacts on
rural economy
3.12 0.678

12. Socio-
demographic
Aware Unaware Chi-square Significance
F2: Food Phobics 12.38
Organic products
do not carry
pesticide residues
4.21 0.624
Consumption of
organic food
decreases the risk
of chronic diseases
3.12 0.623
Organic products
are produced
without using
chemical fertilizers
3.07 0.612
Organic food
products never
contain GMOs
2.49 0.712

13. Factor analysis
results for potential
organic consumers
Factors
Mean Factor Loading Variance Explained
(%)
F3: Healthy Eaters 12.71
Organic food richer in
vitamins
4.32 0.891
Organic food contains
more nutrients
4.31 0.884

14. Factor analysis
results for potential
organic consumers
Factors
Mean Factor Loading Variance Explained
(%)
F4: Environmentalists 7.14
Buying organic helps
to increase wildlife
4.22 0.813
Organic farming is
good for the
environment
4.25 0.713

15. Factor analysis
results for potential
organic consumers
Factors
Mean Factor Loading Variance Explained
(%)
F5: Hedonists 7.59
High prices of
organic food signals
better products
4.26 0.761

16. Conclusion
• The people were well aware of images and
availability, but not loyal entirely to organic
food products.
• Consumers are willing to pay price premium
• Vegetables followed by fruits and beans are
the most preferred and highly demanded the
commodities at present

17. Recommendations
• SME’s should make farmers aware about
organic farming
• SME’s should make consumers aware about
organic food products
• Certification agency should take the initiative
to introduce more of retail chains of organic
food products

18. Thank You