The Marketing Strategy for a Small Community-type Organic Food Store Instructor：Dr. Charles Trappey Students： 961002 Maggie Lai 961029 Harriet Ha 952011 Marten Tsai

Agenda 1. Introduction 1.1. Trend of the Organic Market 1.2. Research Goal 2. Interview Results 2.1 Black-Sheep 2.2 Li-Ruhn 2.3 Comparison 3. The Analysis of Black-Sheep 4. Conclusion

Global Organic Agriculture Area

The organic agriculture area in Taiwan Source: http://info.organic.org.tw/supergood

The Certification Organization in Taiwan Council of Agriculture Taiwan Accreditation Foundation (TAF)

Research Goal Find the survival way for a small community-type organic food store How to compete with a chain store How to keep high growth rate as the market share becomes high

Black Sheep

Black Sheep The boss is a mental consultant Emphasizing the importance of both physical, mental, and spirit health The store offered courses related to organic vegetable planting and organic food DIY The boss tries their products herself and gives their customers suggestions Put art in the store to enhance the space design

Li-Ruhn

Li-Ruhn The beauty of community Interaction with sincerity There are 53 stores after the foundation in 1998 Non-profit business Sponsoring conferences to popularize organic products Developing some products by themselves, such as steam instant noodles

Comparison Store Name Black-Sheep Li-Ruhn Location Type No. of stores Shin-Chu city Around Taiwan Type Community Chain No. of stores 1 54 No. of clerks 2 3 and some volunteers No. of customers per day About 40 About 100 Main customers Occupied females Conference members No. of suppliers More that 40

Business Process Organic store customer Certified oversea organic product Self-developed products import New product plan Return goods Delegated production Organic store customer supply Contracted co- op farm purchase Field survey Obtain certification in Taiwan

4P Analysis Promotion Place Price Product Li-Ruhn Black Sheep 12NT ~ 1,200NT (Jelly ~ organic tea) 25NT ~ 40,000NT (Beverages ~ water cleaner) Religious group Sponsor conferences Word of mouth Near NTHU campus Near old NCTU campus Organic commodity Organic cotton Facilities with health concept

SWOP Analysis of Black sheep - Well-experienced clerk Good in stock management Strengths - The product cost is high The variety of organic product is limited Weaknesses Environmental and healthy consciousness (breakfast) - Manual Delivery Opportunities - Big chain stores - Internet sales Threats

Income Statement 200K Net Income/Month 490K Subtotal 2,400K 690K* Unit: NT/Month 200K Net Income/Month 490K Subtotal 2,400K 690K* Expense Item 1K Miscellanea 0K Tax Net Income/year 50K Salary 6K Utilities 33K Rental 400K Purchasing cost Sales revenue ※Estimation A handful of vegetable Pricing 35NT (100%) Profit 10NT (29%) Cost 25NT(71%) *Net income estimation 490K / 71%=690K

Conclusion Environmental consciousness and healthy concept is very important in the organic food market Chain stores could help us to spread the two issues They may not be our competitor, but be our partner Manual delivery may help us service more male customers Customer loyalty is the key niche for a community-type store