Business Relationships

To eat organic during a recession?

The organic food market is taking a hit from the impact of the recession. Sales dipped 17% according to the Organic Market Report of 2010. Many people have chosen to cut out organic products as a way to save. However, according to a UK supplier, Devonbased Riverford Organic, organic sales are still doing well primarily in the Southwest United States. This company has established itself as a company that values the flavor of the foods as well as ensuring that the products are organic. By having customers give feedback through an annual customer survey, the company is aware that the brand loyalty is found within the great flavor of the foods. This differentiation has kept sales up through the loyalty of the customers. Another strength in having a customer survey helps the company stay aware of what the customers value in a product. As a result, the Devonbased Riverford is in the position to better fulfill these needs. Although the company has high hopes for the future, they believe that organic products may become a thing of the past as government regulations tighten on local produce.  

 

 

http://findarticles.com/p/news-articles/western-morning-news-the/mi_8027/is_20100413/popularity-organic-food-falls-pinch/ai_n53144638/?tag=content;col1

Comments




  • I feel that what Devonbased Riverford Organic is doing to keep its customers happy is a very smart idea.  Allowing for their cutsomers to give feedback is showing their customers that they care about their preferences.  It will also help Devonbase to see what needs to be changed in their products.  Differentiation is a huge deal when in a competitive market.  Some things are better than others at different times, so differentiation will help you stay up even if some of your products are down.  I feel like seeing that Devonbased has such a great connection with its customers then when the government tighten the regulations they will be ready for the change.  They will know exactly what their customers are thinking about the new regulations and they will be able to alter their business as needed. 

    jbreitb2, 2 years ago | Flag
  • Differentiation is one of the keys to success in a competitive market and Devonbased seems to being doing a good job of this, but how effective is differentiation if the market for organic foods is dying.  This just goes to show that differentiation is not everything.  There are other factors that affect a company's success.  If a product does not fit into a consumer's bundle of goods it does not matter how it is different than the competition.  The producer needs to make the product fit, especially in times like these when incomes are limited.  This means lowering costs and unfortunately with stricter regulations this may be impossible.  

    sechter2, 2 years ago | Flag

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