Planet Organic Marketing Report Essay Example
Planet Organic Marketing Report Essay Example

Planet Organic Marketing Report Essay Example

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  • Pages: 12 (3129 words)
  • Published: March 22, 2018
  • Type: Case Study
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We will conduct primary research by utilizing interviews, questionnaires, and in-store visits to analyze Planet Organic's marketing strategy. For our final marketing report, we have scheduled an interview with the Store Manager of the Westbound Grove branch. The questionnaire will assist us in examining the demographics of our selected retailer. In addition to primary research, we will also conduct secondary research through Planet Organic's newsletter, the Internet, and their website. To gather information on retail competitors and general articles on organic farming, we will analyze newspapers such as The Daily Telegraph and The Guardian. A spokesperson from Planet Organic will provide valuable insight into their marketing techniques and environment. Our report will include a SWOT analysis that outlines the strengths, weaknesses, opportunities, and threats facing Planet Organic to enhance our understanding of the micro/macro environment. Furthermore, thei

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r natural ethos extends to their beliefs about health and how implementing therapies and remedies can prevent and cure illness. In 2000, Renee Elliott emphasized the significance of nourishing our families with wholesome homemade meals and promoting overall well-being as a foundation for a healthy and vibrant life for future generations. Planet Organic is committed to providing unique supermarket products that are both organic and ethically sourced.
Founded in 1995 by Renee Elliott, a former American wine journalist, Planet Organic operates four stores located in affluent areas of London. These stores specifically cater to individuals who prioritize chemical-free, fresh, or minimally processed food. The company's main goal is to support British farming and promote organic options while opposing genetically modified foods.

Each Planet Organic store features designated seating areas where customers can purchase items from the deli counter, including a variet

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of fresh organic produce. Additionally, the shelves are organized into different categories such as Meat, Dairy Products, Confectionery, and Health and Beauty.

Upon entering any Planet Organic store, customers immediately experience a vibrant atmosphere reminiscent of a bustling market stall with neatly stacked shelves showcasing an array of colorful fruits and vegetables. The enticing aroma wafting from the deli counter enhances the shopping experience at Planet Organic by turning it into an enjoyable outing rather than the usual chaotic trip encountered at other supermarkets like Testes and Kingsbury.Planet Organic, the UK's first organic and natural supermarket, is celebrating its 15th anniversary this year. This strong emphasis on customer satisfaction has helped establish a loyal customer base for Planet Organic as they strive to create a stress-free and enjoyable food shopping experience for all patrons. The text also highlights the growing popularity of organic food as people increasingly seek transparency about their diet and a commitment to environmental sustainability.

In 1995, Planet Organic became the country's first Soil Association certified organic supermarket and introduced an organic British meat and fish counter. Their initiative to replace plastic bags with biodegradable ones has been adopted by major retailers like Waitrose, Tesco, and Kingsbury.

To cater to their loyal customers' needs, Planet Organic has launched their own website (www.Planetarium.Com) which allows for convenient online purchasing and home delivery. This is particularly useful considering limited in-store access compared to larger supermarkets such as Waitrose and Marks & Spencer. The website features a "gift ideas" section as well as Renee Elliott's blog - written by the company's director - which showcases new recipes like 'Soaked Cinnamon and Apricot Porridge' and 'Parmesan Baked Asparagus'. Additionally,

it provides lunch ideas that are appealing to both adults and children alike, making it ideal for mothers with young kids.The blog is updated regularly and provides entertaining news articles along with valuable information. Planet Organic not only has a website with informative content but also sends out a monthly newsletter to its customers, including updates on the latest products, environmental issues, health topics, and "Planet Organic News". This shows their commitment to maintaining strong relationships with their customers and fostering brand loyalty.

One of Planet Organic's core beliefs is in the body's natural ability to heal itself. They offer natural remedies that support the healing process instead of relying solely on medications that only suppress or mask symptoms. Their wide range of products includes herbal remedies, vitamins, minerals, organic cosmetics (such as makeup and body lotions), as well as books and supplements. This diverse selection contributes significantly to the company's success.

Planet Organic is renowned for its dedication to selling natural and free-range organic products. They provide organic free-range eggs and meat from vegetarian-fed animals. As pioneers in this field, they were the first business in the UK to be part of the Soil Association Organic Standard. They share this charity's mission of promoting planet-friendly food and farming practices. The company recognizes how crucial it is to maintain a healthy connection between food, soil, and human health.Planet Organic is committed to promoting new products and supporting conventional farming methods, locally grown produce, and health initiatives. They actively strive to minimize their environmental impact by sourcing organic food from sustainable producers. Additionally, Planet Organic emphasizes purchasing meat from British suppliers and prioritizing British fruits and vegetables while

supporting local businesses in London by sourcing from nearby suppliers. They also sell seasonal produce to reduce transportation and carbon emissions. Maintaining strong relationships with British farmers, bakers, producers, and manufacturers is crucial for ensuring the highest quality offerings. As a Fair-Trade member, Planet Organic places importance on fair wages, proper working conditions, local sustainability, and equitable trade terms for individuals in developing countries while maintaining sustainable prices at or above market value.Fair-Trade seeks to address past unfair trade practices that have disproportionately impacted vulnerable producers and empower workers to improve their situations. Intermediaries, such as wholesalers or distributors like Planet Organic, play a crucial role in bridging the gap between production and sales by resolving compatibility issues and reducing distribution costs for all parties involved. The organization considers various factors, such as size and trust in producers' resources and abilities to meet consumer needs, when involving intermediaries. The Health Store and The Tree of Life are two important intermediaries for organizations like Planet Organic that effectively connect producers' goods with the distribution channel while understanding their target market. Approximately 60% of Planet Organic's products are supplied through these intermediaries, with the remaining 40% coming from direct deliveries by suppliers. The Health Store has been operating for over 76 years in Nottingham, serving the UK, Ireland, and Europe. On the other hand, The Tree of Life is owned by Royal Wesson NV, a Dutch company that distributes food products across North America and Europe from its base in the Netherlands. Planet Organic heavily relies on their Newcastle branch for supplies. In addition to these major consolidators, Marigold health foods and Lingering Organic also serve as

intermediaries for Planet Organic.
Marigold health foods utilizes refrigerated vehicles to deliver their products within a 60-mile radius from their Kings Cross warehouse. Although Marigold's product lines are not organic, they play an important role for Planet Organic. On the other hand, Lingering Organic specializes in distributing organic products and operates from New Covent Garden in London. They collaborate with growers across Europe and other regions to offer organic products to customers through their website. Lingering Organic's Westbound grove branch distributes goods purchased via their website using their own van, specifically within London. For non-fresh items or deliveries outside of the UK, Parcel Force is primarily used as a carbon-neutral delivery service. All packaging materials employed by Lingering Organic are eco-friendly and made from sustainable materials. The cardboard boxes are manufactured in the UK using 100% post-consumer recycled materials and printed with vegetable-based ink. Starch-based gummed paper tape and biodegradable bubble wrap that decomposes quickly without harming the environment are used instead of regular tape and Styrofoam. To ensure secure transportation for delicate items, expanded corn replaces Styrofoam.Parcel Force, as part of the Royal Mail Group, has been providing express delivery services to 27 million addresses in the UK for over 14 years. Recently, Lingering Organic conducted a customer survey at their Westbound grove branch located at Planet Organics to gain insights into their customer base. The goal of this survey was to determine the types of customers who shop there and understand their motivations. To collect primary data, customers inside the store were given a questionnaire consisting of 15 closed questions with predetermined answer options. Within a two-hour time slot, convenience sampling was used to

collect a total of 36 questionnaires. The sample size for this study was determined based on available resources and time constraints. Lingering Organic approached customers in various sections and aisles of the largest branch among four Planet Organic stores, including those seated for lunch, to ensure a diverse range of participants. Results presented in Figure 1 and 2 show that there is a clear majority among respondents. It is worth noting that many customers expressed surprise when they learned about Lingering Organic's website's online shopping and home delivery options. According to Figure 3, only 5% of respondents discovered Planet Organic online, while word-of-mouth accounted for 31%, and the majority (61%) noticed the store while passing by. Among male customers surveyed, it was found that 19% primarily shopped with their families.
One male participant jokingly stated that he was only at the store because his wife had given him a shopping list, emphasizing her passion for organic products. However, there were some men who were vegetarians or had specific dietary needs (Figure 1). The results in Figure 4 reveal that the majority of customers lived locally (58%), with an additional 17% working nearby. Among those visiting, 8% were accompanied by another customer who also lived in the area. Tourists accounted for just 6% of the total customer base. Nevertheless, a small group of tourists actively sought out organic products either through recommendations for Planet Organic or their own online searches.

Moving on to Figures 5 and 6 below, it is evident that most customers (69%) walk to the store, with nearly half taking no more than five minutes to get there. Only a mere 3% of customers use

private vehicles or motorbikes. This data suggests that they likely reside nearby as reaffirmed in Figure 4 where customers with longer travel times constituted only 19%, none exceeding thirty minutes. Figures 5 and 6 illustrate a diverse range of customers aged twenty-five to forty-four comprising slightly over sixty percent of Planet Organic's customer base. Within this group, individuals aged between twenty-five and thirty-four make up approximately28%, while those aged between thirty-five and forty-four account for about33%.The small number of customers aged 18-24 may be due to factors such as being students or facing financial constraints, lacking awareness about the benefits of organic food, or simply visiting or passing by. On the other hand, for customers aged 65 and over, proximity is the main reason for shopping at Planet Organic. When it comes to timing, the majority of shoppers (36%) visit in the afternoon or later after finishing work. Visits before 1pm only attract 11% of customers, while different times attract 17%. Between 1pm and the afternoon sees 14% of shoppers, while between the afternoon and evening increases that number to 22%.

The figures indicate that Planet Organic has a loyal customer base. About 36% of customers shop once a week and another 25% shop more than once a week. A small portion (3%) visit as one-time occurrences. When asked about visiting other Planet Organic stores in London, most customers (67%) mentioned only going to their local Westbound grove branch in Backwater. However, some have also been to other branches including Touring place Camden (25%), Slotting branch (5%), and Mussels Hill (3%).

In addition, the data shows that 33% of Planet Organic customers also shop at Marks and

Spencer's due to similar price ranges and quality food options like free-range and organic foods. A minority of customers (6%) mentioned shopping at Tesco. Kingsbury and Waitress were chosen as second and third preferred supermarkets by 19% and 22%, respectively mainly because they are conveniently located near Planet Organic.Moreover, according to Figure 11, Planet Organic's diverse product offerings of organic, gluten-free, dairy-free, wheat-free, vegan, and vegetarian options prompted us to inquire about customers' dietary preferences. Out of the respondents surveyed, 28% identified as vegetarian, 8% as vegan, and 58% stated they had no specific dietary restrictions. The remaining 6%, who selected "other," had special dietary needs such as lactose or wheat intolerance. As a result of this finding, we further investigated the types of products these individuals regularly purchased from Planet Organic.

Figure 13 indicates that the majority of customers (47%) primarily bought general groceries at Planet Organic. This category includes beverages, home essentials, and household products. Bakery items were not popular among customers with only a mere 6% selecting them. Fruits and vegetables appealed to approximately 8% of shoppers while health and body care products attracted an audience of around 11%. Furthermore, one-fifth (22%) sought lunch/dinner or on-the-go food options from the store. Additionally shown in Figure 12 is a small group (6%) that came in for a variety of everything.

One intriguing aspect we explored was why people choose to purchase organic food at Planet Organic. Approximately half of the customers expressed their belief that organic food is healthier because it lacks man-made chemicals compared to conventional produce. They also thought that organic meat is free from antibiotics and hormones commonly found in conventionally raised

animals. Another factor influencing their choice was the perception that organic fruits and vegetables are not affected by harmful fungicides or pesticides commonly used in non-organic farming practices

Organic foods are generally unprocessed and remain unchanged from when they are grown until they are sold in stores. This belief led 22% of customers to perceive organic food as tasting better and being associated with quality. Another 9% shopped at Planet Organic to support environmental sustainability by purchasing organic produce, aware that organic animals are treated better than conventional animals. Additionally, 8% of Planet Organic's customers had a primary need for dietary products such as gluten-free, dairy-free, or wheat-free items. However, 11% of the customers chose to shop at Planet Organic simply due to convenience as it was their closest option. This group mainly consisted of individuals aged 60 or over (Figure 45). According to Figure 14, overall, Planet Organic's customers were sociable and welcoming individuals who frequently expressed their opinions openly.

The text also provides information about the occupation of these customers and the competition faced by Planet Organic. The occupation data was gathered through a box question format rather than closed questions. Interestingly, none of the surveyed customers shared the same occupation as another.

The range of professions represented at Planet Organic includes lecturers, site managers, antique dealers, individuals in the entertainment or fashion industry, unemployed individuals, retired individuals, and workers in creative fields such as architects. Female customers who visit during midday often mention being unemployed or charity workers, suggesting they may be housewives or have no employment commitments. Despite a challenging and unpredictable business environment, Planet Organic remains committed to ethical and sustainable farming practices.

The main competitors for Planet Organic are larger supermarkets that have recently expanded their companies to include organic products. Recent statistics show that supermarkets are responding to customer demands by stocking organic and locally-grown produce. This increasing demand has intensified competition between supermarkets as they strive to meet growing consumer interest in premium foods. Fruits and vegetables make up the largest sector of organic foods and serve as the primary entry point into the market. From 2002 to 2008, retail sales for organic dairy products more than doubled with projected market growth of over 54% from 2007 to 2012. Three major UK retail chains - Waitress, Kingsbury, and Marks and Spencer - directly compete with Planet OrganicAll three supermarket chains, Waitress, Planet Organic, and Kingsbury, have received grade B ratings from the National Consumer Council (NC) for their environmentally friendly food and goods offerings. In recent years, Waitress has made significant efforts to expand their organic range, resulting in a dramatic increase in business sales due to the quality of their fresh produce. Both Waitress and Planet Organic compete for the same middle-class consumer demographic. Waitress focuses on fair trade products to ensure fair treatment and wages for workers in less developed countries. Similarly, Planet Organic also sells fair trade products, intensifying the competition between the two businesses. Waitress is recognized as a leading retailer with ethical trading practices and sourcing from UK farmers. They prioritize smaller suppliers, which allows them to offer a wide range of organic fresh produce at significantly cheaper prices than what Planet Organic offers. Despite this price difference, many customers still choose Waitress over Planet Organic. It is worth considering

whether these unique products offered by Planet Organic are truly necessary or if Kingsbury's variety of organic products such as fruit, vegetables, dairy items, and meat cater well enough to their target market's increasing concerns about food safety and reassurance regarding meat quality.Kingsbury, a top organic food retailer in the UK, can boost profits and customer loyalty by stocking organic meats. Consumers appreciate receiving fresh produce, which has led to significant sales growth for Kingsbury's popular organic and premium food ranges. This success has made larger chains like Kingsbury strong contenders in the market, impacting smaller competitors like Planet Organic. For example, Marks and Spencer (M&S) has experienced a 48% increase in sales this year alone by expanding their range of nearly 500 new organic products. Both M&S and Planet Organic cater to the middle class with high-standard organic food options. While both offer free-range products sourced from farms, Planet Organic is considered too expensive during difficult economic times like recessions. As a result, consumers turn to more affordable yet satisfying options at M&S, which places importance on sustainable farming practices since 2009.However, the increasing sales of organic products by larger supermarkets pose a threat to smaller stores like Planet Organic. In order to compete with these supermarkets, smaller suppliers must develop new strategies. The success of Planet Organic relies on the support of both the general public and its employees, as their attitudes can impact the company's reputation and profitability. Other UK retail chains that offer similar supplies are seen as physical threats to Planet Organic.

Organizations such as Fair trade, Erie sign, and Organic Standards also have an influence on Planet Organic. The Soil

Association, Green Providers Directory, I-J Organic Directory, Organic Food, Cycle Lifestyle, and Fair Trade are six main groups that greatly influence Planet Organic. To support these companies, Planet Organic stocks and promotes their goods in their store and provides leaflets and information about them to consumers.

This partnership is beneficial for both parties as they share concerns regarding health implications and it gives great publicity for the companies to be associated with Planet Organic. For instance, Soil Association relies on donations and member support since it doesn't receive government funding. The Food Ethic Council plays a significant role in selling over 80% of organic food in the I-J while educating the public about the benefits of organic food and farming - aligning with Planet Organic's mission statement.

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