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

3. 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

4. Global Organic Agriculture Area

5. The organic agriculture area in Taiwan
Source:

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

7. 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

8. Black Sheep

9. 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

10. Li-Ruhn

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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 NT(71%)
*Net income estimation
490K / 71%=690K

17. 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