John Beckett enjoys vegetables, so much so that he has given up his full-time job as a lawyer to

concentrate on growing and marketing organic vegetables. He started growing vegetables 20

years ago in his back garden and eventually became fully self-sufficient in supplying vegetables
for the family. Partly bored with his legal job and tempted by an attractive severance package,
John decided he would try to establish his own vegetable supply business. Eighteen months ago
he looked around for two fields to lease in which he could grow organic vegetables . Organic
products including vegetables, is a growth market in the UK. Growers must adhere to strict
guidelines in order to gain organic certification. Increasing awareness of the problems
associated with many pesticides and fertilizers, coupled with an increased interest in healthy
eating habits and ‘wholesome’ food, has meant that many consumers are now either purchasing
or interested in purchasing organic vegetables. This is true not only of household customers, but
in addition, many restaurants are using the lure of organic produce to give them a distinctive
edge in the market place. All this has meant that many of the larger supermarkets in the UK
have begun to stock more and more organic produce from what was a relatively specialized
market in the 1990s; the market has grown to where overall organic produce accounts for some
12% of the total UK grocery market and in worldwide terms as of January 2010 it accounts for
approximately 3% of all food sales. The market for organic vegetables has grown more rapidly
than other organic products. This growth has been sustained at a rate of around 20% per year in
developed countries. However, organic yields are between 10% and 20% lower than
conventional agriculture, with crops like potatoes some 40% lower. Unsurprisingly, this makes
organic produce on average around 40% more expensive than non-organic produce . A.C.Nielsen
Co. cite the case of the United States where organic sales eased in the second half of 2009 as
middle- and upper-income families have felt the strain of layoffs and declining investment
portfolios. Sales in December 2009 were up 5.6 percent, year on year, against a 25.6 percent rise
a year earlier . Organic vegetables offer several advantages over their non-organic counterparts:

• They are generally tastier, and because they are not treated in the same way, are usually
fresher than non-organic products.

• They are good for a healthy lifestyle as they contain no pesticides and chemicals.

• The fact that no pesticides or herbicides are used in their production means that they are
much ‘greener’. For example, they help to reduce the problems associated with nitrates in the
soil and water supplies .

• On the downside, organic vegetables are generally less uniform, and as far as some
consumers are concerned, are less attractive in appearance. This lack of uniformity has also
been a problem in the past with supermarket buyers who have traditionally looked for
uniformity in fresh products to aid merchandising and marketing in retail outlets .

• Generally, organic vegetables are more expensive than their non-organic counterparts.
Currently, on average they are somewhere in the region of 40% more expensive .

In the UK, anyone wishing to claim that their produce is organic, and market it in this way,
needs to obtain the approval of the Soil Association, which checks the organic credentials of a
supplier. For example in this case, they check the conditions under which the produce is grown
and how the seeds used. Two interesting developments are taking place in the organic produce
market. One is the growth of home supplies. This is where the producer supplies direct to the
householder. There are a variety of ways of doing this. Some smaller growers use mail-shots and
leafleting to build up a client base. They then deliver locally to customers who order from a list.
Very often the supplier will simply make up a box of a pre-determined value or weight
containing a selection of vegetables which are in season and ready for picking. Other suppliers
are using a similar system, but take their orders via the Internet. This is particularly suitable for
this type of product as customers can check on a regular basis what is available and order from
home. The produce is then delivered at a pre-arranged time. The second development in the
organic produce market is the growth of farmers’ markets. These markets are usually run by
local authorities, often on Saturdays or Sundays. Local and other producers attend these
markets, paying a small fee for a stall and then sell their produce direct to the consumer. These
farmers’ markets partly came about as a result of the frustration felt by many farmers and
growers at the way they were being treated by retailers and at the margins they were receiving.
In addition, such markets have been successful because consumers feel they are getting fresh
produce at lower prices than they might be able to obtain through supermarkets . Despite the
growth in the market for organic vegetables, after 18 months in his business, John is worried.
Quite simply, his business has not been as successful as he envisaged it would be, and as a result
he is not earning enough to make a living. The real worry is that he is not sure why this is the
case. His produce, he believes, is as good as anything in the business. He is a very good grower
and the land he has leased is perfect for the range of produce he wishes to grow. Starting with
organic potatoes he now produces a range of organic vegetables including beans, sprouts,
carrots, lettuce and his latest venture organic tomatoes and corn grown in poly-tunnels.
Although customers he currently supplies are very loyal to John, indeed many are friends and
acquaintances he has known over the years when he grew vegetables in his back garden, there
are simply not enough of them. As a result, his turnover which increased rapidly over the first
year of the business has for the last six months has stagnated. He mainly supplies locally and has
tried to increase his customer base by taking leaflets out and posting them through letterboxes
in the area. He has done this by dividing up the housing areas in a ten mile radius around his
growing area and dropping leaflets throughout the area to as many houses as he can cover on a
systematic basis. Only some 2% of customers have responded with an order, usually contacting
by telephone. These customers seem to come from the middle class areas. He has considered
taking a stall at one of the farmers’ markets, the nearest of which is some 40 miles away and
operates one day per month, but he realizes this would not be enough to reach the turnover
levels he requires. He has in the past supplied one or two local restaurants and hotels, but
usually only when they have contacted him because they have had a problem with their existing
supplier. He has never followed these up. His growing area is currently too small to supply a
major retailer, although he has been approached on an informal basis by the buyer of a
voluntary chain of local grocers representing some 40 retail outlets in the county. John is
wondering where he goes from here. He cannot understand why his superior products are not
selling well. A friend has suggested that John needs a more strategic approach to marketing.
John is not convinced. He feels his business is too small to warrant any kind of marketing, never
mind strategic marketing, and he has always felt that a good product should sell itself. He is,
however, anxious to grow the business and become a leading organic vegetable supplier.
Questions:
1. Briefly identify and explain the internal factors (strengths/weaknesses) and the external
factors (opportunities/threats) that are facing John's business?

Strengths:

1. High-quality products: John believes his organic vegetables are as good as anything in the
business, indicating a strength in product quality.

2. Self-sufficiency: John has successfully become fully self-sufficient in supplying vegetables for
his family, demonstrating his ability to grow and manage organic produce.

3. Loyal customer base: Many of John's current customers are friends and acquaintances who
have known him for years, indicating a level of loyalty and satisfaction with his products.

4. Organic certification: John adheres to strict guidelines to gain organic certification, which can
be a valuable selling point for health-conscious consumers.

Weaknesses:

1. Limited customer base: John's business has not been as successful as he expected, and he
struggles to attract new customers beyond his existing network.

2. Small growing area: The current size of John's growing area restricts his ability to supply larger
retailers, potentially limiting his market reach.

3. Lack of marketing strategy: John has not embraced marketing, believing that a good product
should sell itself. This approach may hinder his ability to reach a wider audience and promote his
products effectively.

Opportunities:

1. Farmers' markets: Participating in local farmers' markets can provide an opportunity for direct
customer interaction and exposure to a broader customer base.

2. Supplying local restaurants and hotels: Actively pursuing partnerships with local restaurants
and hotels can lead to consistent orders and increased brand visibility.

3. Collaboration with local grocers: Supplying a voluntary chain of local grocers can facilitate
access to a larger market and potentially increase sales.

Threats:

1. Competition: The market for organic vegetables is growing, which means increased
competition from other growers and suppliers.
2. Price differential: Organic produce tends to be more expensive than non-organic options,
which may deter price-sensitive consumers.

3. Perception of uniformity: Some consumers and supermarket buyers prefer visually uniform
produce, which can pose a challenge for organic vegetables that may exhibit natural variations
in appearance.

By considering these factors and addressing the weaknesses and threats, John can leverage his
strengths and seize opportunities to improve the performance of his organic vegetable business.

2. What type of marketing research is most applicable in this case? And why?

In this case, the most applicable type of marketing research would be both qualitative and
quantitative research.

Qualitative research would provide insights into the attitudes, preferences, and behaviors of
potential customers and help understand their motivations for purchasing organic vegetables.
This can be done through methods such as focus groups or in-depth interviews with consumers.
Qualitative research would be beneficial to gain a deeper understanding of consumer
perceptions of organic vegetables, their preferences regarding product attributes, and their
buying habits. It would also help identify any barriers or concerns that consumers may have
regarding organic products.

Quantitative research, on the other hand, would provide statistical data and measurable insights
about the market and consumers. Surveys or questionnaires can be conducted to gather
quantitative data on consumer preferences, purchasing habits, and awareness of organic
vegetables. This type of research can help determine the size of the target market, assess
demand, and identify potential market segments. It can also help in analyzing pricing strategies,
evaluating the effectiveness of marketing campaigns, and tracking changes in consumer
behavior over time.

By combining qualitative and quantitative research methods, John can gain a comprehensive
understanding of his target market, including consumer preferences, buying behavior, and
market trends. This would enable him to make informed decisions about product development,
pricing, promotion, and distribution strategies. It would also help him identify potential
opportunities for growth and address any weaknesses or challenges in his current marketing
approach.
To create value throughout the marketing mix components, also known as the 7Ps (Product,
Price, Place, Promotion, People, Process, and Physical Evidence), John can consider the following
strategies:

Describe how John can create value throughout the marketing mix components (7Ps)?

1. Product:

- Emphasize the unique selling points and benefits of his organic vegetables, such as superior
taste, freshness, and health benefits.

- Expand the product range to include a variety of organic vegetables, catering to different
customer preferences and needs.

- Continuously improve the quality of his products and ensure consistency.

2. Price:

- Conduct market research to determine the optimal pricing strategy for his organic
vegetables, considering factors such as production costs, competitors' pricing, and customer
willingness to pay.

- Consider offering competitive prices while still maintaining a margin that sustains the
business.

- Communicate the value proposition of organic vegetables to justify any price premium.

3. Place:

- Participate in farmers' markets to directly connect with consumers and provide a convenient
location for them to purchase his organic vegetables.

- Collaborate with local restaurants, hotels, and grocers to expand distribution channels and
increase accessibility for customers.

- Consider establishing an online presence, such as a website or e-commerce platform, to

reach a wider audience.

4. Promotion:

- Develop a strong brand identity that communicates the values and benefits of his organic
vegetables.

- Utilize various promotional channels, such as social media, local newspapers, and community
events, to raise awareness of his products and engage with potential customers.
 - Highlight the organic certification and sustainable farming practices to differentiate his
products from non-organic alternatives.

5. People:

- Train and educate employees about the unique aspects and benefits of organic vegetables to
provide excellent customer service.

- Foster a customer-centric culture where employees are knowledgeable, friendly, and

passionate about organic produce.

- Encourage customer feedback and address concerns promptly to build trust and loyalty.

6. Process:

- Streamline the production and distribution processes to ensure efficiency and timely delivery
of organic vegetables.

- Implement quality control procedures to maintain consistency and meet customer

expectations.

- Offer convenient ordering and payment options to enhance the customer experience.

7. Physical Evidence:

- Ensure that the physical presentation of the organic vegetables is appealing and visually
attractive to customers.

- Use sustainable packaging materials that align with the values of organic farming.

- Display certifications, testimonials, and awards prominently to provide evidence of product

quality and customer satisfaction.

By considering and optimizing each component of the marketing mix, John can create value for
customers, differentiate his organic vegetable business from competitors, and build a strong
brand presence in the market. These efforts will help attract new customers, retain existing
ones, and ultimately drive business growth.

4. What are the marketing strategies you will suggest to help John flourishes his business?

To help John flourish his organic vegetable business, here are some marketing strategies that
can be implemented:
1. Targeted Marketing Campaigns:

- Identify and define specific target markets for John's organic vegetables, such as health-
conscious individuals, environmentally conscious consumers, or those seeking locally sourced
produce.

- Develop tailored marketing campaigns that highlight the unique benefits and value
propositions of his organic vegetables to resonate with the identified target markets.

- Utilize various marketing channels, including social media, email marketing, content
marketing, and local advertising, to reach and engage with the target audience effectively.

2. Brand Building:

- Create a strong and compelling brand identity for John's organic vegetable business that
reflects its values, quality, and commitment to sustainability.

- Develop a memorable and visually appealing brand logo, packaging, and overall visual
identity to stand out in the market.

- Consistently communicate the brand message and story through various marketing channels
to build brand recognition and establish an emotional connection with customers.

3. Partnership and Collaboration:

- Collaborate with local restaurants, hotels, and cafes to supply them with organic vegetables,
positioning John's products as premium and locally sourced.

- Partner with local community organizations, health and wellness influencers, or nutritionists
to promote the benefits of organic vegetables and increase brand visibility.

- Explore partnerships with other local farmers or organic producers to create a network that
supports and promotes each other's products.

4. Online Presence and E-commerce:

- Develop a user-friendly and visually appealing website that showcases John's organic
vegetables, provides information about the products, and allows customers to place orders
online.

- Optimize the website for search engines to improve online visibility and attract organic
traffic.

- Leverage social media platforms to share engaging content, such as recipes, cooking tips, and
behind-the-scenes glimpses of the organic farming process, to build an online community and
engage with customers.
5. Customer Loyalty and Referral Programs:

- Implement a customer loyalty program that rewards repeat purchases or referrals with
exclusive discounts, special offers, or free samples.

- Encourage satisfied customers to leave reviews and testimonials on platforms like Google My
Business, Yelp, or social media, which can boost brand credibility and attract new customers.

- Prioritize exceptional customer service, addressing any concerns or issues promptly and going
the extra mile to exceed customer expectations.

6. Market Research and Analysis:

- Conduct regular market research to stay updated on consumer trends, preferences, and
demands related to organic vegetables.

- Analyze customer feedback, sales data, and market trends to identify opportunities for
product improvement, expansion, or diversification.

- Monitor competitors' strategies and pricing to ensure competitiveness and differentiation.

7. Sustainability and Community Involvement:

- Highlight the sustainable farming practices employed in John's organic vegetable business
and communicate the positive environmental impact to resonate with eco-conscious
consumers.

- Engage in community events, farmer's markets, or local food festivals to increase brand
visibility and connect with potential customers.

- Support local initiatives or charitable organizations aligned with organic farming,

sustainability, or community welfare, demonstrating John's commitment to social responsibility.

By implementing these marketing strategies, John can enhance brand awareness, attract new
customers, retain existing ones, and ultimately flourish his organic vegetable business. It is
essential to continuously evaluate and adapt these strategies based on market dynamics,
customer feedback, and business goals.

5. Has John identified the best market segment for Beckett? What other market segments might
Beckett target?
Based on the information provided, it is not explicitly mentioned whether John has identified
the best market segment for Beckett's organic vegetable business. However, we can explore
some potential market segments that he could target in addition to his existing customer base.
Here are a few examples:

1. Health-conscious individuals: Targeting consumers who prioritize their well-being and seek
out organic, nutritious food options. This segment may include fitness enthusiasts, individuals
with specific dietary requirements, or those focused on maintaining a healthy lifestyle.

2. Locavores: Catering to consumers who prioritize locally sourced and sustainable products.
This segment values supporting local farmers and reducing the carbon footprint associated with
long-distance food transportation.

3. Families with young children: Focusing on parents who are concerned about the quality and
safety of the food they provide to their children. This segment may appreciate the organic
certification and the absence of harmful pesticides in Beckett's vegetables.

4. Eco-conscious consumers: Targeting individuals who are passionate about environmental

sustainability and seek out products that align with their values. This segment may be attracted
to Beckett's sustainable farming practices and commitment to reducing chemical usage.

5. Restaurants and caterers: Expanding into the B2B market by supplying organic vegetables to
local restaurants, catering companies, and other foodservice businesses. This segment offers the
opportunity for larger volume sales and consistent orders.

6. Online shoppers: Targeting consumers who prefer the convenience of online shopping.
Establishing an e-commerce platform can attract customers who prefer to order groceries online
and have them delivered to their doorstep.

It is important for John to conduct market research and analyze the potential demand,
competition, and profitability of each market segment. By understanding the unique needs and
preferences of these segments, John can tailor his marketing strategies and product offerings to
effectively target and serve these customer groups.