NEW MARKET AND STRATEGIES

NEW MARKET AND STRATEGIES CHALLENGE

ANALYSIS STUDY ANNA DI NARDO ANNE-CLAIRE LAMY FORUM SHAH

MASTER IN RETAIL DESIGN - 2020

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NEW MARKET AND STRATEGIES CHALLENGE

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EATING ORGANIC IS A TR TAKEN MORE AND MORE IMPORTANCE THE LAST D

NEW MARKET AND STRATEGIES CHALLENGE

REND WHICH HAS E DECADE.

ANALYSIS STUDY

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¨COVID-19 IS RAISING CO OF THE RELATIONSHIP B AND HEALTH. THIS HAS R IN INTEREST IN PRODUCTS HEALTH HALO¨.

ONSUMER AWARENESS BETWEEN NUTRITION RESULTED IN A SURGE

S THAT BENEFIT FROM A

ANALYSIS STUDY

https://www.foodnavigator.com/Article/2020/05/06/Organic-food-gets-coronavirus-boost

NEW MARKET AND STRATEGIES CHALLENGE

¨ORGANIC FOODS ARE V THIER AND SAFER THAN TERNATIVES. (…) ¨ 6

FO SPEC

NEW MARKET AND STRATEGIES CHALLENGE

ANALYSIS STUDY

AMARJIT SAHOTA

OUNDER AND CEO OF ECOVIA INTELLIGENCE IALIST RESEARCH, CONSULTING & TRAINING FIRM THAT FOCUSES ON GLOBAL ETHICAL PRODUCT INDUSTRIES

https://www.foodnavigator.com/Article/2020/05/06/Organic-food-gets-coronavirus-boost

VIEWED AS BEING HEALN CONVENTIONAL AL-

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NEW MARKET AND STRATEGIES CHALLENGE

ANALYSIS STUDY

INTRODUCTION Bjorg is one of the brand owned by the group Bjorg Bonneterre et Compagnie. Founded in 1970 by Régis Pelen, under the name Distriborg, the company was built around a distribution activity and then developed through the creation of its own brands and products.

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ORGANIC FOOD

DIETETIC FOOD

WORLD FOOD

Bjorg, Bonneterre,

Gayelord Hauser

Tanoshi

Alter Eco, Clipper,

Vivis

Tien Shan

Evernat, Tartex, Allos, Nature-

Yunnan Tuocha

Krisprolls

la, Le Sillon,

Kara

Destination, Abbot

Skippy

Kinney’s

Patak’s

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ORIGIN

MISSION

SUSTAINIBILITY

A pioneer in organic farming

Provide as many people as

Behind the products, there

since 1988, we have always

possible access to healthier,

is also a company and em-

challenged this method of

more balanced and quality

ployees committed to pro-

cultivation that respects the

organic food. Simple recipes,

mote a more sustainable and

earth, animals and people.

good quality oils, unrefined

healthy food model.

or slightly refined sugars,

Their conviction: their res-

whole grains, or even limited

ponsibility goes far beyond

sugar and salt levels…

food!

* Created in 2006 in the United States, the B-Corp label (Benefit Corporation) is a certification granted to commercial companies meeting societal and environmental governance requirements and in line with the required accounting and transparency criteria.

The philosophy of this label is reflected perfectly in its slogan: “Not to seek to be the best company in the world but the best for the world.“

1st organic brand to be present in mass distribution in France, in 2017, Bjorg was also the 1st French food company certified B-corp* (Benefit Corporation), one of the most demanding certifications in sustainable development.

Source: https://www.bjorg.fr/nos-engagements/

THE BRAND

NEW MARKET AND STRATEGIES CHALLENGE

200 PRODUCTS ˜

Products: 0rganic teas and coffees, organic cookies, pancakes, cereals, jams and sandwiches, desserts and cakes, soups, sauces and vegetables, organic drinks.

Services: ready-made solutions, ideas of recipes (website).

Average french consumer persona: Urban, who don’t have time to cook, who can afford ready-made solutions offered by Bjorg.

ANALYSIS STUDY

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NEW MARKET AND STRATEGIES CHALLENGE

FROM FRANCE TO INDIA

ANALYSIS STUDY

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COUNTRIES WHERE THE BRAND IS DISTRIBUTED

Gabon Ghana Greece Hong Kong* Italy Jordan Kuwait Lebanon Morocco Mauritania Niger Nigeria Poland

Portugal Qatar Senegal Switzerland Runisia Turkey Vietnam* Bulgaria Romania Malaysia*

Source: https://www.bjorg.com

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Algeria Saudi Arabia Benin Burkina Faso Cameroon Canada Cyprus Congo Ivory Coast United Arab Emirates Spain France

NEW MARKET AND STRATEGIES CHALLENGE

ANALYSIS STUDY

WHY INDIA? A big producer, a small consuming country India’s MY 2018-19 organic area accounted for 1.08% of total agricultural land and reached 1.93 million hectares, an 8.8% increase from 2017.

Sikkim, a north-eastern province in India declared itself the first “organic state” of the world, as all its farmland (76,000 ha) has been certified organic since 2015. Within next 5 years, the government plans to increase the organic area by 100% making 4% of the total agricultural land in the

New consumers, new channels for distribution and promotion The organic industry in India used to be mostly exported, it is now the domestic sales that are in the lead. A growing demographic of young, educated individuals that are increasingly concerned about chemicals andpesticide residue in food products will grow demand and consumption of organic products.

country.

Modern retail outlets like supermarkets, conve-

For MY 2020, total market size for

nience stores, or hypermarkets remain the most

organic packaged food and beverages in India

visible distribution channels for these products,

is estimated at $77 million, making it the 30th

the retail industry has been providing increased

largest market in the world by value.

shelf space for the organic category to fuel demand.

Nutricereals, health foods and organic foods are the new focus areas for our consumers

Relatively new trends in organic retailing em-

Indian government has declared 2023 as the

select hotels and restaurants…

Year of Nutricereals and is trying to promote this

Two other emerging trends for marketing orga-

sector very heavily.

nic products: social media channels via influen-

merge: specialty organic stores catering to highincome neighborhoods in metropolitan cities, specially curated artisan organic menus in

cers, brand engagements and unique product placements (on Instagram, Facebook, etc.) and e-commerce companies (Big-basket, Amazon India, Jaivik Haat, Nourish Organics,…), create brand awareness and increasing sales of organic products.

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ACTIVITIES

*

INTENT

Occasional consumers (at least once a month) are over-represented among the categories higher socio-professional groups (83%, of which 60% use it once a week).

• 59% HEALTH particularly among those 65 years of age and older (70%), among 50-64 year olds (67%) and women (63%)

As for the under 35s, the first generation to have grown up with the development of organic farming in France, they spontaneously integrated organic food into their diet (72% of 18-24 year olds and 78% of 25-34 year olds regularly use them).

• 51% QUALITY AND TASTE more significantly among those aged 50-64 (60%) and those aged inactive (55%).

• 45% RESPECT ENVIRONMENT women (51%) and the inactive are significantly concerned about this issue.(49 %).

• 34% ANIMALS WELL-BEING • 34% ACCESIBILITY

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Note: 18-24 year olds give the same level of reasons for the ethical and/or social.

Well educated individuals with secondary and higher education having a good financial background.

•80% HEALTH

Wealthy, upper middle class and middle class – economy

•50% RESPECT OF THE ENVIRONMENT

Health conscious, Yoga, Fitness

•20% ANIMALS WELL-BEING

More than half of the target market were Women with children.

• 5% ACCESIBILITY

•25% QUALITY AND TASTE

ANALYSIS STUDY

PLACES

TIMES

• 20% DIRECT PRODUCERS

• 71% ONCE A MONTH

• 27% MARKETS

• 14% ONCE A DAY

• 23% ARTISANS

• 33% AT LEAST ONCE A WEEK

• 19% PROXIMITY TRADE/ LOCAL SHOPS/ LOCAL TRADE

• 24% ONCE A MONTH

• 24% SPECIALIZED MAGAZINE

• 11% NEVER

• 77% MEDIUM-SIZE SURFACES

Nearly 75% of organic consumers have been organic for less than 6 years.

The share of new consumers of organic products (for less than a year) has increased significantly in the last two years (16% in 2019 vs. 9% in 2017).

Neo-consumers are naturally over represented among the younger generations (28% of 1824 year olds and 21% of 25-34 year olds).

f

• ONLINE CHANNELS • GROCERY STORES • PREMIUM SUPERMARKETS

• 18% LESS THAN ONCE A MONTH

• ORGANIC FRUITS AND VEGETABLES: ONCE OR TWICE A WEEK • ORGANIC BEVERAGES: ONCE A MONTH

• LOCAL FARMS • ORGANIC DAIRY: TWICE A WEEK • ORGANIC CEREALS AND FOOD GRAINS: ONCE A MONTH • MAJORITY OF CONSUMERS BUYS AN ORGANIC FOOD PRODUCT ONCE A MONTH

Survey of 2,000 French people 18+, a representative sample of the national population. Stratified according to national quotas: gender of the respondent, socio-professional category in 3 bands (CSP+ /CSP - / inactive).

NEW MARKET AND STRATEGIES CHALLENGE

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TOOLS

INTER

• 52% ADVERTISING The main communication vector and in clear progression driven upwards by women (55%)

• FRIENDS

• 42% DOCUMENTARIES/REPORTS (more among those aged 65 and over - 50%)

• COLLEAGUES

• FAMILY

• EDUCATIONAL PROGRAM • 35% FAMILY AND FRIENDS

*

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• JOB CREATION • 24% SOCIAL NETWORKS not surprisingly among the youngest targets, the preferred channel (43% of 18-24 year olds, 36% of 25-34 year olds) Documentaries/reports is in the lead, with 87% of those who have memorised it finding it interesting. Advertising, the most memorised information vector, does not trigger great interest in half of the cases. Even less interest in information at the point of sale, which shows a decrease in the rate of interested parties, as well as social networks even if they are more memorised.

• ADVERTISING

• FRIENDS

• SOCIAL MEDIA INFLUENCERS

• FAMILY

• BOLLYWOOD CELEBRITIES

• COLLEAGUES

RACTIONS

MS

ANALYSIS STUDY

RESPONSES The French know how to identify an organic product, know the the main lines and principles of this agriculture.

Confidence inthe information provided on the products is mixed and their level of information requirements is increasing.

They want more transparency on product regulation and control.

As organic food is becoming very popular, we have had a major challenge in controlling fraudulent activities in the whole system.

There are several farmers and manufacturers of food items that claim to be selling organic products. This has been a totally unregulated area in India.

Apart from price, trust has been a major factor for people to be able to decide

Survey of 2,000 French people 18+, a representative sample of the national population. Stratified according to national quotas: gender of the respondent, socio-professional category in 3 bands (CSP+ /CSP - / inactive).

NEW MARKET AND STRATEGIES CHALLENGE

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INTERVIEW OF A SAMPL OF INDIAN PEOPLE ABO THEIR HABITS AS CONSU OF ORGANIC PRODUCTS

NEW MARKET AND STRATEGIES CHALLENGE

LE OUT UMERS S

ANALYSIS STUDY

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NEW MARKET AND STRATEGIES CHALLENGE

ANALYSIS STUDY

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NEW MARKET AND STRATEGIES CHALLENGE

< Usual places and platform to buy grocery, fruits and vegetables

ANALYSIS STUDY

^ Kirana store to buy everyday grocery.

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CONCLUSION OF THE SURVEY Today, the consumers in India are willing to buy organic food keeping health in mind along with the environmental concerns and are ready to pay more price for the same. However, it is not the main criteria due to availability, lack of trust, price and other such reasons.

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People normally buy food from local vendors, markets and streets, especially fruits and vegetables and kirana stores for grocery items.

Having said that, India’s ever growing organic food production will not only be exported but will see a significant rise in domestic consumption.

NEW MARKET AND STRATEGIES CHALLENGE

ANALYSIS STUDY

The analysis show that the mindset of the people in India is quite similar to the French consumers but the situation of Organic food and Organic brands are very different in both the countries.

This does gives a niche for the brand with a good reputation to enter the Indian market and provide the best quality organic food to the people.

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EXAMPLE OF POTENTIAL COMPETITOR

Organic India has a holistic, social and even spiritual approach of organic farming/food.

It’s an organic e-commerce brand.

https://www.organicindia.com/about-the-company

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NEW MARKET AND STRATEGIES CHALLENGE

ANALYSIS STUDY

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NEW MARKETS

NEW MARKET

NEW INDUSTRY

Existing

venture/across

business units,

new business units

(possibly

(possibly

new brand)

new brand)

NEW PRODUCT

NEW BUSINESS

Existing business units,

venture/across new bu-

brands (sustain current

siness units (possibly new

game)

brand)

EXISTING CAPABILITIES

NEW CAPABILTIES

EXISTING MARKETS

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NEW MARKET AND STRATEGIES CHALLENGE

ANALYSIS STUDY

SYNTHESIS OF THE ANALYSIS RESULTS & OPPORTUNITIES India is home to 30% of total certified organic producers in the world,

The Indian domestic organic food sector is still at an emerging stage yet rapidly developing due to increased consumer demand.

As a pioneer in organic farming and organic processed food solutions, Bjorg’s expertise is an asset which can be highly valued on this emerging market.

Average indian consumer persona: • Urban, young and educated who can afford ready-made solutions offered by Bjorg.

• Family mothers concerned by alimentation.

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STRATEGY PROPOSAL

LOCAL PRODUCTION (IF NO ABOUT NORMS OF IMPORTED PR IN ANY CASE THE BRAND INTO LOCAL PRODUCTI

INTEGRATE SUPERMARKETS AND PREMI STARTING WITH THE R FOCUSED ON 32

START TO DIFUSE BJORG’S PRODUCTS TH THE VISIBILITY OF THE BRAND (SNACKS, SMALL PAC

PARTICIPATE TO EDUCATIONAL PROG WITH SCHOOL TO EDUCATE YOU THE SPECIFIC BJORG’S RANGE OF

EXPAND THE RANGE OF P (BISCUITS FOR TEA, PAC

NEW MARKET AND STRATEGIES CHALLENGE

ANALYSIS STUDY

O CHANGES IN LEGISLATION ROCESSED ORGANIC PRODUCTS), D HAS TO INVOLVE ITSELF ION SOONER OR LATER.

IUM STORES, E-COMMERCE PLATFORMS RANGE OF PRODUCTS N BREAKFAST

HROUGH THE KIRANA STORES TO BOOST D, WITH LOW COST SOLUTIONS CKS OF BISCUITS… )

GRAMS AND CREATE PARTNERSHIPS UNGER GENERATIONS THROUGH PRODUCTS DESTINATED TO KIDS.

PRODUCTS DISTRIBUTED CKAGED PRODUCTS,… )

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THANK YOU!