BUISNESS RESEARCH MANAGEMENT

PROJECT
(A Project on Organic food)

Under the guidance of: Prof. Piyusha Pritiparnna Das

Prepared By: Group-12, MBA-I, Cs

SUBMITTE
D BY: -

Biswajit Pati (20202323)

Sahil Murarka (20202152)
Tara Shankar Pradhan (20202313)
Chittaranjan swain (20202128)
 ACKNOWLEDGEMENT

Apart from our efforts, the success of this project depends largely on the
encouragement and guidelines of many others. We take this opportunity to express
our gratitude to the people who have been instrumental in the successful
completion of this project. We take immense pleasure in thanking and warmly
acknowledging the continuous encouragement, invaluable supervision, timely
suggestions and inspired guidance offered by our project mentor, Prof. Piyusha
Pritiparnna Das, School of Management, KIIT University, in bringing this report to
a successful completion. We also express our sincere thanks to all our friends who
have patiently extended all sorts of help for accomplishing this undertaking. Also,
we would like to express our heartfelt thanks to each of our beloved parents for
their blessings, for their help and wishes. Finally, we extend our gratefulness to
one and all who are directly or indirectly involved in the successful completion of
this project work.
 INDEX

S.NO CONTENT PAGE NO.

1. EXECUTIVE SUMMARY

2. INTRODUCTION

3. RESEARCH/PROJECT OBJECTIVES

4. RESEARCH DESIGN & METHODOLOGY

5. RESEARCH FRAMEWORK

6. DATA COLLECTION PLAN, TIMELINE

AND BRIEF DESCRIPTION ON SAMPLES

7. DATA ANALYSIS & FINDINGS

8. CONCLUSION

9. REFERENCES
 EXECUTIVE SUMMARY

In the market full of homogeneous products, we are going to work on

the understanding of organic products customers & their preference on
the basis of that in the BHUBANESWAR market. We will also conduct
research & understand the consumers also their willingness, it will give
us an understanding of the change in the preference of the market based
on the data findings.
After complete research using the proper frameworks also with the
analysis of the data we will get we will reach to a conclusion of the
recent demographics of the market. We will thoroughly do the research
based on the questionnaire that we made & will circulate in the market
among the customers to get the idea about the recent demographics.
As we are working to understand the preferences of
organic food products in the Bhubaneswar market we have to go deep in
the consumer psychology with different questions which will also break
the consumer insights to us. We have framed the questionnaire which
will give us the consumer income, their buying frequency, modes of
purchase & the money they are willing to pay. Here will also get the idea
that if they prefer organic food products or ordinary food products that
are available for sale in the market. The detailed works will be there in
the report available for the further understandings related to this.
We are going to work with 75 samples we got from
the market as a part of research & the insights are collected from there
for more understandings & analysis to made.
 INTRODUCTION

A. Research problem-

To eat is a necessity but to make it healthy is our choice. Organic and

Vegan food items are what is trending today in the food market, where
people are looking for various options to buy which is healthy and safe
for them. People are now more educated and know what food is good for
not only their health but they are also giving their concern to the
ecosystem back by buying organic.
People of India are now choosing a life with better advance technologies
and are concerned in what they eat. Food habits are changing, people are
maintaining a diet and are now more conscious and look for more
organic, vegan food options in the market. Organic food is very healthy
and have higher nutritional value.
Our research problem is aligned with the decisions regarding organic
food items available in the city of Bhubaneshwar, Odisha. The key
attributes which they are looking for while choosing an organic food in
the market and how much they are willing to pay; as organic food items
are charged high as they are processed without chemical fertilizers as
compared to inorganic food items and also they tend to take a lot of
time. Which mode they are more comfortable at while buying organic
either offline or online.
As a concerned individual and an entrepreneur, it is important to think
what the near future holds and what will be the future demand of the
products that the people will be concerned to buy. We have prepared a
survey questionnaire form in which we are considering the age, the
gender, the income of an individual how it is affecting their buying
behavior for an organic food. Most importantly, is there a shop nearby
where organic food is available or not. If YES, then where, the location?
Because availability plays a key factor after the price of the product.

Certain times, it is seen that people don’t buy it because it is expensive

and not easily available even if they wish to buy. There are also
constraints which we have to look into is low shelf life but with the help
of new advance technology and soil adaptability we can make some
improvements. We are to look forward to in the dimensions of
availability, price and also educating them with the benefits and guiding
people to buy organic products more.
B. Lliterature review-
10 articles:s
 Indian Organic Food industry trend 2019: in this article we got an
insight of the demand of organic food, pharmaceutical companies
and FMCG rising due to the forecast of GDP growth earlier in
FY2019. Organic Food industry is rising in double digits. Major
factors will induce in the growth of this industry such as e-
commerce which facilitating the organic food industry reaching out
to the Tier-2 and Tier-3 cities for our potential customers.
Secondly, with the help of internet which is now of such low cost
is helping more and more people to know about the benefits of
organic food. Demand is there predicted a lot for the year FY2020.

 Five factors contributing to the growth of organic market in India:

the government of India and the state government are trying to
improve the administrative system of natural items alongside
revealing numerous plans to boost organic farming industry. India
presently holds the ninth position among 178nations in practicing
effectively the organic agriculture and marketing them. A
significant pattern which is being shown is that the majority of the
population is developing and adapting their basic everyday diet.
Rising well being of the white-collar people in the urban cities is
adding up to the market. Health awareness, to financial experts
investing in their profits and taking the risk to boost this market,
rise in working population and urbanization, support from the
Government and growth in online marketing channels which is
growing the purchaser base.

 Organic foods-what you need to know:

 is organic food really healthier? What are the expense? What does
the labels mean?
A detailed insight of the meaning of organic to the purpose of this
agriculture. Differences of organic food to inorganic. Benefits and
organic food vs the locally grown food and its benefits with respect
to transportation, finances and freshness. If organic food is really
worth in regards to which fruits and vegetables labeled as organic
matters the most such as Apples, peaches, potatoes, spinach, etc.

 Keep the cost within your budget: Organic era:

This article helped in telling us how to cut the cost. With shopping
at farmer’s market where they sell at open market if the organic
food is available there. Like hosting a weekly market.
Joining a food co-operation or opening a cooperative grocery store
will help in offering lower prices to members, who pay an annual
fee to belong. Also, by joining a community supported agriculture
farm in which individuals and families together purchase shares
and buy local organic food from the farm.

 Organic food and beverages market overview: the global organic

market is expected to reach $327,600 by the year 2022 from
$115984 million in 2015. An estimated notable grown is seen in
the near future, with unique advantages such as eco-friendly,
pesticides and chemical free and healthier compared to inorganic.
Restraints like low shelf life and high cost still playing in around
with this industry, but with the advancement of near future the cost
might further cut down with the increase in soil adaptability.

Top winning strategies for organic marketing: organic food market

analysis predicts that after revelation of the product launch playing as
their key growth strategy adopted by the market players, followed by
mergers and acquisition, business expansion, partnership and joint
ventures. At present organic coffee and tea have witnessed a hike in
demand which is providing the potential customers who are adopting
organic beverages like coffee and tea have the benefit of weight loss by
drinking organic. Several companies have developed innovative
products in their portfolio to increase their market reach and serve their
customers.

 Top investment pockets for emerging Organic industry: the rapid

growth of demand in healthy and fresh food is taking a hike.
Increase in adoption of organic groceries, and organic baby food
has made it a lucrative target market for investment. The organic
frozen and processed food items are transpiring new segment
which are expected to fetch good revenue in future.

 The organic snacks market with global opportunity analysis&

Industry Forecast to 2025:
Driven by increase in health consciousness and importance of
consumption of organic foods by the people due to harmful side
effects of conventional snacks such as increase in obesity, rise in
calorie content of the body, and less nutritional benefits. Increase
in adoption of organic farming, growth of retail network especially
in the emerging economies and increase in consumption of
convenient goods drive the global organic snacks market growth.

Based on product type, the salty snacks segment was the highest
contributor to the organic snacks market and is expected to grow.
Based on distribution channel, the retail stores segment was the
highest contributor to the market in terms of value in 2017 and is
estimated to grow at a CAGR of 11.7% from 2018 to 2025.
Based on generation, the millennial segment is expected to grow.
 E-commerce segment accounted for 16% of the total organic
snacks market share.
 The new food factories: inside India’s organic trade- of an
emerging class of relatively affluent customers who have
increasingly stayed to prefer grocery items and are safe and
healthy. The market is niche, and most Indians are price conscious.
Given the term “organic” attracts premium pricing but a lot of
incentives are to game the strategy and sell pretty much anything
under the umbrella term.
Whereas, no person other than the manufacturer will able to
market, distribute or import any organic food unless they label the
package will full information regarding the organic status of the
product. Products should carry a government assurance mark on it
and the new “Jaivik Bharat” Logo on it so as to distinguish
between the organic and inorganic.

RESEARCH/PROJECT OBJECTIVES:

Followings are the main objectives of organic foods-:

i. It enhances the soil and quality of water.
ii. It helps to reduce the environmental pollution.
iii. It's good for the consumer's health.
iv. It has more nutrients than other products

In recent years, the Government of India has come up with policy

initiatives to promote organic food for domestic market and
exports. Such measures are expected to increase investment in
organic food manufacturing and retailing, and create employment.
Indian entrepreneurs have responded positively to these
initiatives and a number of start-ups have come up in this sector.
Many conventional food manufacturers, retailers, and exporters
have diversified their businesses to include organic food products.
India’s trade in organic food products has also increased.
A primary survey of companies engaged in organic food business
in India, analyses their reasons for entering the organic business,
their business models and sourcing process, how they work with
organic farmers, what opportunities and risks they perceive, and
what they want from the Indian government in terms of policies
and incentives. It also examines the companies’ perception about
the growth of this sector, and makes policy recommendations on
how organic food can attract investment across the food supply
chain and continue on a high growth trajectory

RESEARCH DESIGN & METHODOLOGY

Research methodology provides the path through which research can be

conducted.

A) DATA SOURCES-
For the collection of data there are two sources available for the
researcher i.e. primary and secondary source. For primary collection of
data, we have issued a quantitative tool which in our case is
questionnaire floated online to understand how aware people are about
organic food, have they ever tried it and what is the price they are
willing to pay. And for secondary data we have referred to blogs and
literature review available online to come up with more conclusive
findings. The secondary data shows us how exactly people are aware
across the country, how frequently they buy and use it, what is the
current market price and what will be the future demand.

B) RESEARCH APPROACH-
We will use a quantitative approach to analyze the data. Quantitative
approach is helpful to define a relationship between what is known and
what is unknown. And to further analyses the quantitative data we will
use deductive approach.

C) SAMPLING- The sample size for our research is 81. For sampling
we have used
Non- probability sampling where in every member in the sample do not
have an equal chance of being selected and we have used convenience
and voluntary sampling, where we have asked people from our known
ones to conduct the research. In our sample there are mixture of people
like student, self-employed and salary earning people.

D) RESEARCH INSTRUMENT-
The research instrument that we have used to collect primary data is
questionnaire. This tool is one of the main tools to conduct research
because the researcher can decide on the number of samples, sampling
type and the type of questions to bring out the best possible results.
Questionnaire are best tool because this reduces biasness as each
respondent will reply the same question. In our questionnaire we are
having close ended questions as well as open ended questions.
E) Contact Methods-

Here mostly personal, face to face interviews are to be conducted

RESEARCH FRAMEWORK

Here we have used the qualitative tool & qualitative tool for the analysis
of our topic “organic food products buyers & consumers in
Bhubaneswar”. We have chosen a sample size of 75 where through
online medium we have conducted one survey for getting to know the
customers & also about their buying behaviour.

We also used “questionnaire” as a tool for the purpose of our research by

which data can be collected for the customers, we have also chosen the
online medium for the way to reach to the customers who got their
different preferences regarding food products available in the market&
also on their purchase behaviour.

For the analysis of our data we have chosen the regression analysis &
here we have used possible factors to gain the result for our analysis.
We have also taken the confidence interval as 95%, as we have used the
quantitative approach for analysis of the data that we have collected
through survey. It is the best way as it defines to defines the relationship
among the known factors & the unknown variables. After analysis of the
data we got the R-square value as 10% which is not a good factor for our
research benefits
After the perfect analysis of the raw data that we got, we reached to a
conclusion that price which customers/buyers are willing to pay is
majorly driven by income, as we have kept different price
ranges for our customers willingness, we got hat maximum people like
to pay between the range of 100-300 &we also got that 55% of the
consumers are aware so by raising more awareness we can increase the
frequency on a monthly basis.
DATA COLLECTION PLAN, TIMELINE AND BRIEF
DESCRIPTION ON SAMPLES
DATA COLLECTION PLAN

We, as a team thought that the best way to collect the responses would
be using the Google Forms as a questionnaire survey and send it across
through our social media channels.

TIMELINE
At first, we spend our time collecting the major attributes and factors
which influences the buyers to buy. We went through a lot of articles
and pdf files to get a major idea about the growth, demand of organic
industry in India.
Then we prepared the Google Form and sent it across to the people
around us through Mails, WhatsApp, Facebook.
It took all and all three days to collect the data from the Google forms.
BRIEF DESCRIPTION OF SAMPLES
We have collected 75 responses which is our sample size. And the
people are either student, self-employed, salaried employees and few
unemployed.
 Income group starting from 2,50,000 to 10,00,000 and above.
 If they have visited a store or not in Bhubaneshwar and which area
they have visited an organic store.
 Price range in which they have bought the products from Rs. 50-
500
 Frequency of visit to the organic store and which mode they prefer
to either offline or online.
We have done a Convenient, Voluntary sampling.
 DATA ANALYSIS & FINDINGS

For our primary data analysis, we are using regression analysis.

For our regression analysis our dependent variable we are using the price
the customers are willing to pay and the independent variable is income,
frequency of purchase and awareness about it.
For our analysis we have taken our confidence interval to be 95%
So, from the regression model we can interpret the following output
R Square- which is used as an indicator of the goodness of fit. It shows
how many points fall on the regression line.
In our case the r square is 10% which is not that good. This means that
only 10% of the variable fits in the regression analysis model. This
means that only 10% of the dependent variable are explained by the
independent variable.
Observations – The number of observations in our case is 75.
Significance F- shows how statistically significant the model is. It can be
considered a significant model because the significance f is 0.044, which
is just below 0.05.
P Value- denotes how accurately these independent values can predict
the dependent variable which also in this case should be less than 0.05.
In this model only, income can accurately predict the price preference,
whereas the frequency of purchase and awareness do not predict it
accurately.
Coefficient- These are the slope of the equation. Which means for every
1-unit increase in income there would mean people will be willing to
pay more. There is appositive relationship between price willing to be
paid and income earned. Whereas frequency of purchase and awareness
will have negative impact on the price preference.
So, from our survey we can conclude that the price which people would
be willing to pay is majorly driven by the income they earn. The survey
shows that maximum people are willing to pay a price range between
100-300. The survey also shows that only 55% people are aware so,
awareness should be increased by running awareness campaign. For this
reason, the frequency of purchase is on a monthly basis.
 CONCLUSION

In the modern market economy, the system of organic agriculture,

especially the system of organic food production, becomes more
and more important factor of national and international economic
system development. The importance of organic food marketing
is conditioned by the fact that it enables producers for better
understanding of customers’ needs, serving the purpose of better
meeting their needs and it also enables consumers to realise
better organic products supply. Defining the main feature of
organic agriculture and its importance is the starting point for
conceptual establishment of organic agriculture.

A quality guarantee of organic food products directly influences

consumption intensity, absorption power of the market, packaging
material design, advertising messages, choice of the distribution
channel, and distinguishing organic from conventional products
according to their market characteristics makes the fundamental
factor of the product differentiation and diversification with the aim
of producing such organic food that would certainly find its way to
the consumer.

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