Riverford Organic Farmers Company

Riverford Organic Farmers Company

Riverford Organic Farmers Company is an organic vegetable box delivery company in the United Kingdom. It is a country-wide producer of organic farm produce in the UK and serves both the local restaurants in Devon, along with the consumer markets. For Riverford Company to successfully develop a lucrative business, it will need to pay attention to two competitive marketing edges, that is flexibility and quality, among other strategies. The need for high-quality organic produce by the consumers is, undoubtedly, more significant than the business supplies. Riverford’s aspiration towards ensuring quality goods and services, as well as incorporating flexibility in their day to day operations, would be a significant step towards taking advantage of this fortuity presented by the market. The company’s stakeholders need to be adamant in the chase for high quality. Invaluable experience in this line of business and determination will, unequivocally, enhance the remunerative success of the company.

Organizational Structure

The company has several divisions and departments that mainly need to co-ordinate and partner with the marketing department towards achieving the targets, in line with the corporate goals and objectives. The principal departments that will work together to ensure this include the finance department, production department, and the human resource department. Below is a basic framework of how these departments fall in place within the company.

Figure 1.1: Organizational Structure Source Author (2020)

Marketing Relations with the Other Departments

The marketing department relates to other departments in numerous various ways. We will discuss, in brief, just a few departments at Riverford Company, below.

The relationship with the Finance Department

Finances are normally considered to be of great significance at any given organization for its processes to run flawlessly. The finance department holds a lot of financial information that is useful in making decisions as far as marketing is concerned. It, therefore, furnishes the marketing department with plenty of crucial statistical data and other useful information such as the production costs for a particular product that will help determine the average price that the consumer anticipates to pay for the product. Additionally, the finance department provides the financial resources needed by the marketing department for promotional and advertising purposes. These may very well include producing commercials, printing posters, designing attractive packaging, and all the things that will surely promote a good company image and increase demand for the product. The Finance department is, thus, believed to be the cornerstone of the organization, in accord with all marketeers (Shawareb 2012). With the required finances, the marketing department at Riverford will be able to come up with the best means through which it will attract the consumers through media and other means.

The relationship with the Human Resource Department

The Human Resource Department is concerned with the recruitment and development of effective and efficient staff for all the departments at the company and asserts that the departments gain relevant knowledge and experience through training programs. Therefore, it is essential that the relationship between both marketing and HR departments is solid and substantial in order for them to have a strong team. With the right marketers at hand, Riverford will be able to display a strong and competitive front to its clients and its competitors as well. The marketing department thus represents the company in front of their clients and potential customers.

The relationship with the Production Department

It is the role of the marketing department to acquire the necessary vital information concerning the demands and requirements of the clients and to observe them closely. Information about the customers’ perception of product quality, pricing, and durability is then provided as feedback to the production department with the aim of improving the product and making it more appealing based on the customers’ preferences.

By observing and taking note of the customer requirements, the marketing department will be able to find out about the current market trends and what the customers did not find pleasant about the particular product. This will ensure that the production department enhances the quality of the product as necessary. It is also up to the marketing department to determine which location has more potential customers for the product and the target consumers of the product, which will rely on the quality as produced by the production department.

In summary, our marketing department at Riverford Organic will be responsible for studying the market and target population, observe and carry out surveys on customer preferences, in order to ensure the production department is well updated, evaluating the effects of the product on the consumers and lastly working together with the other departments to ensure we satisfy our clients’ needs.

The Relationship with the Organization as a Whole

Many times, people have lacked conviction when it comes to marketing since its return on investment is seldom noticeable. Moreover, company executives are left trying to figure out how important marketing is to their firms and its significance in relation to their company goals and objectives, many when it comes to cutting costs. Marketing, as a function, however, can accomplish several objectives if the right marketing strategies and tactics are put in place. Synonymously to accounting, or other different functions within the company, if marketing strategies are not properly implemented, then the organization incurs losses instead of gaining more profit and customers. The following are some of the responsibilities that are of the great significance of the marketing function to the entire company.

1. a) Competitive Edge Over Contenders

Normally, many organization executives make the blunder of assuming that their customers already recognize that they are dissimilar in one way or another from their competitors and seldom communicate these differentiating factors to them (ProfitWorks). Marketing is, therefore, the only sure way of ensuring that the customers know the difference between your products and the others in the marketplace. Marketing, therefore, helps the company focus on the target population that the specific product brand or type of service resonates with. For organizations looking to attract trendy and lifestyle clientele, design, brand, and experience all matter.

Marketing, therefore, has a great influence on purchasing based on past experiences, the prices of the commodities, and the customers’ perception. There are countless agricultural companies that produce the same commodities that we do at Riverford. Thus, the choice of a customer searching for organic products online or from the supermarket with be determined by their past experiences, the price of the organic products, and their perception, either personal or influenced. By influence, I mean, the perception created by other brands through their own marketing strategies.

1. b) Communication

Many corporations use marketing as a communication tool between them and target consumers. Despite the fact that more established organizations may sometimes decide to isolate the corporate functions as time goes by, still, various companies consider marketing as the team able to perform the duty of presenting announcements to the public, informing the external stakeholders on any organizational updates or merely creating public awareness on corporate matters. Companies will always avail the necessary counsel for its clientele, taking into account the variety of products and services an organization may be offering as well as enlightening them on the latest products or services or that may be upcoming. Hence, for our products at Riverford Company to be able to satisfy the needs of our targeted customers, then marketing strategies have to be put in place, as one of the top company priorities, as a means of informing our customers as well as getting the necessary feedback on the products from them.

Nowadays, the marketing function has transformed and progressed such that organizations are able to make use of the latest technological innovations to convey information and also give feedback in case of any customer complaints. Several companies globally utilize social media to create awareness, advertise and promote their latest products and services as well as to provide customer services. Riverford, for example, has been using Facebook, Pinterest, Facebook, and Instagram to communicate with customers for online purchase and booking and delivery services, among other online services.

1. c) Faster and Easier Accessibility of Products and Services

Proper marketing strategy implementation ensures that companies can obtain their targeted clients faster and easier. Additionally, it makes the products and services easily accessible as the customer only needs to narrow down to a specific need or matter bothering them. Regardless, successful marketing is concerned with helping the customers access whatever they need. In the same way, Riverford Organic Farmers uses marketing to achieve this.

1. d) Promoting Quality Customer Service

Marketing plans and strategies are aiming at creating public awareness and informing the customers to act as a forerunner to quality service to customers. Providing customers with useful, educative information about the products and services and how they would affect them will undoubtedly enhance good relationships between the organization and its customers, also aiding it to develop resolute confidence with them. Companies that provide the most useful information to their preferred customers during marketing have the upper hand against their competitors when they need to purchase commodities. Riverford ascertains that it can easily be reached by its customers in matters where they may need clarification and also have their website, which is very informative and is meant to educate the consumers. More marketing strategies will be implemented; however, with the company’s new marketing plan.

Elements of Marketing Mix (7p’s)

The marketing mix refers to an integration of 7 elements that are implemented by an organization to help it satisfy the demands and preferences of their customers (tutor2u 2018).

Figure 1.2: Marketing Mix Source: tutor2u 2018

Comparison of Organizational Marketing Strategies

Riverford Organic Farms

The marketing mix for Riverford Organic Farm, therefore, comprises the following elements:

Product

These are the goods and services that are available to the consumers for purchase. Riverford company creates more product awareness for the consumers concerning the improvement of quality of the products and also the services rendered.

Price

This refers to the intrinsic value of the products offered by the company. Riverford puts various strategies in place to ensure that the business minimizes production and manufacturing costs in order to reduce the pricing of the commodities it offers to the consumers and to make them more affordable.

Place

This refers to how the product is distributed to the buyers. Riverford ensures that the customers will be able to buy their products at their stands at the grocery stores and supermarkets. The commercial customers will have their orders delivered twice or thrice a week.

Promotion

This refers to the process of persuading and convincing a customer to purchase a particular product. Riverford uses a combination of promotional offers, advertising, and networking through social media channels to enhance customer knowledge of the organization.

People

This marketing strategy involves the staff members who will be tasked with making contact with the consumers with the aim of advertising, promoting, or selling the product. The business offers to offer adequate training to the employees and development of the key personnel so as to increase their productivity and hence the performance of the company by the end of the second year.

Process

These are the processes and systems that have been put in place to ensure that the products are delivered to the customers and in time. The company came up with better delivery services that will ensure that the boxes reach their destinations in due time and also on-demand.

Physical

This simply refers to the physical components of the environment that has some sort of influence on the customer. The company had set up more outlets to enable its customers to access the products, especially the individual customers easily. The physical proximity of these outlets will be crucial towards attracting and maintaining the customers.

Abel & Cole Organic Delivery

On the other hand, the marketing mix strategies for Abel and Cole Delivery, therefore, comprises the following elements:

Product

These are the goods and services that are available to the consumers for purchase. Abel & Cole Delivery is offering more consumer consciousness of their products and also concerning why their products are better than the rest.

Price

This refers to the intrinsic value of the products offered by the company. Abel & Cole Delivery has ensured that strategies are implemented to assert that their organization offers its products and services at a more affordable yet still competitive price. It is vital for the company that, in this process, it does not compromise on the quality of its products.

Place

This refers to how the product is distributed to the buyers. Abel & Cole Delivery has also made their stands available so that their loyal customers can easily access their products from grocery stores or supermarkets near their places of residence.

Promotion

This refers to the process of persuading and convincing a customer to purchase a particular product. Abel & Cole Delivery has gone to great lengths to ensure that it offers fast and efficient delivery services to its customers as a means of promoting good customer service and maintaining good relationships with them as well.

People

This marketing strategy involves the staff members who will be tasked with making contact with the consumers with the aim of advertising, promoting, or selling the product. Abel & Cole also provides ample training for its staff members, just like its rivals, in order to enhance their levels of productivity and performance.

Process

These are the processes and systems that have been put in place to ensure that the products are delivered to the customers and in time. As mentioned earlier, Abel & Cole have made it their life’s mission to provide their customers with the best delivery services they can offer as a strategy then hope will maintain them.

Physical

This simply refers to the physical components of the environment that has some sort of influence on the customer. Abel & Cole has put up more outlets to enable its customers to access the products, especially the individual customers easily. The physical proximity of these outlets will be crucial towards attracting and maintaining the customers.

Summary

According to the information above, both Riverford and Abel& Cole Delivery have closely synonymous marketing strategies, although they incorporate dissimilar implementation tactics or techniques. Both organizations rely heavily on the modern means of advertising and promotion of their products as they strive to attract more customers through online marketing. Riverford’s main consumers are from Buckfast leigh whilst Abel & Cole Company focuses on the Wimbledon market where it is situated. Both companies focus on the United Kingdom as their main market source. Abel & Cole Delivery does not have larger farms as compared to the ones that Riverford Organic Farms has, therefore, it does not produce nor deliver as much produce as the latter. On the contrary, Riverford carries out large scale production of organic farm produce, making it more profitable than Abel & Cole and also other competitors.

RIVERFORD ORGANIC FARMERS

MARKETING PLAN

Executive Summary

Riverford Organic Farmers is an organic vegetable box delivery company in the United Kingdom. It is a country-wide producer of organic farm produce in the UK and serves both the local restaurants in Devon, along with the consumer markets. For Riverford Company to successfully develop a lucrative business, it will need to pay attention to two competitive marketing edges, that is flexibility and quality, among other strategies. Riverford’s aspiration towards ensuring quality goods and services, as well as incorporating flexibility in their day to day operations, would be a great step towards taking advantage of this fortuity presented by the market. Invaluable experience in this line of business and determination will enhance the remunerative success of the business.

Market Overview – Market Trends and Target Markets

Target Markets

The business has the following customers;

Institutional Customers

This category of customers includes schools, hospitals, and other institutions that use the products around the company’s environs. These customers may purchase the products on a monthly or seasonal basis.

Commercial Customers

These are the customers who buy the products to reproduce other products or for resale. This includes grocery retailers, local shops and supermarkets, and other retailers around the business environment. These customers may purchase the products on a weekly or monthly basis, depending on their sales. These are majorly other business owners.

Individual consumers:

These are the domestic customers who buy the products for their personal use at home. These customers may purchase the products on a daily basis. They include consumers who have a higher preference for a healthier diet and lifestyle in general. Most of them have a high appreciation for healthy foods and are mostly from the middle and higher classes. They do not mind taking orders online for deliveries. Most of them are 28 years of age and above.

Market Trends

Demand

The need to maintain a healthier lifestyle is what drives the demand for these commodities. Many people across the country have become more concerned about their health based on what they eat in order to stay healthy and fit. Riverford, therefore, helps to ensure that their customers get whatever they want in order to achieve these objectives. The business also aims to provide not only healthier food products but also tastier ones as well.

Supply

The increased supply of a greater variety of agricultural produce has ensured that the level of demand over the previous years. This is due to the fact that plenty of farmers who used only to produce a few samples of vegetables have joined in to produce more variety of vegetables to satisfy the rising demand for them.

Sales Projection

The company sales for the products that it produces is estimated to increase by almost 15% from that of the previous year due to the increasing demand for high-quality vegetables.

Competitive review

Riverford Organic Farmers basically has three main types of competitors;

Well established distributors

These are the companies that acquire large and diverse sorts of products from the local farmers in order to retail them to the market. Their product prices are, more or less, similar to that of the local farmers, slightly higher; however, there is a difference in the freshness and perishability of their products. These distributors also seem to miss the flexibility of local farmers to satisfy their customers’ demands fully.

Other local farmers

Although they may not have farms that are as big as Riverford farms, the local farmers have fairly large parcels of farms, which means they also produce a lot of the same products that Riverford does.

Grocery Stores and Supermarkets

They are more convenient for the customers because they are nearer and quickly accessible as compared to Riverford. They also operate for longer hours. Nonetheless, their major demerit is the quality of their products in terms of freshness as well as their pricing.

Strengths, weaknesses, opportunities, and threats

Strengths

Weaknesses.

• Large target population
• Nearness to the target population
• Availability of ready market
• Higher margins as compared to other companies in the industries

• Inadequate marketing budget
• Inflexibility in production f products in order to suit consumer needs.

Opportunities.

Threats.

• The innovation of a unique product
• Demand for healthier foods by the market
• Demand for more affordable foods by the market

• Customers are opting for alternatives to the product, such as inorganic foodstuffs.
• Very high demand for the products even during low produce seasons.

Figure 1.3: Swot Analysis Source: Author 2020

Sales goals & marketing objectives

Main Objective

The main objective of the company is to ensure that Riverford Organic Farmers Company produces the best quality products and services to its customers.

The business also aims at controlling the majority share of the market within the next three years. This should be made possible by implementing the financial and marketing objectives mentioned below

Marketing Objectives:

• To increase the value of the brand through successful promotional campaigns. The value should be increased to 75% by the end of the second quarter of the next financial year.
• To fix production incidents and complaints from customers more quickly through the escalation of the troubleshooting process. Meantime to repair or correct the errors should be 10 minutes or less by the fourth quarter.
• To improve employee communication skills with the customers through on the job training and guidance. All the employees should be able to communicate with the customers properly and assist them effectively by the end of the second quarter of the first year.
• To increase company profits through marketing and advertising strategies and also offering quality products and services. The profit margin of the products should increase to 40% by the end of the fourth quarter of the current budget year.

Financial Objectives:

• The entrepreneur wants to widen the range of products manufactured by the end of the third year in business since their demand will have risen and also to have a greater competitive edge.
• Have an increase in sales by 40% within the fourth year of operation, which will be achieved by the new branches we intend to open as we produce soaps in the next four years.
• When we increase our sales by 40% within the first four years in business, we will also have an increase in our profit margin, which is good for business continuity and better quality of the products within the next three years onwards.

Marketing Strategies

Product

These are the goods and services that are available to the consumers for purchase. Riverford company intends to create more product awareness to the consumers concerning improvement of quality of the products and also the services rendered.

Price

This refers to the intrinsic value of the products offered by the company. Riverford will put various strategies in place to ensure that the business minimizes production and manufacturing costs in order to reduce the pricing of the commodities it offers to the consumers and to make them more affordable.

Place

This refers to how the product is distributed to the buyers. Riverford will ensure that the customers will be able to buy their products at their stands at the grocery stores and supermarkets. The commercial customers will have their orders delivered twice or thrice a week.

Promotion

This refers to the process of persuading and convincing a customer to purchase a particular product. Riverford intends to use a combination of promotional offers, advertising, and networking through social media channels to enhance customer knowledge of the organization.

People

This marketing strategy involves the staff members who will be tasked with making contact with the consumers with the aim of advertising, promoting, or selling the product. The business intends to offer adequate training to the employees and development of the key personnel so as to increase their productivity and hence the performance of the company by the end of the second year.

Process

These are the processes and systems that have been put in place to ensure that the products are delivered to the customers and in time. The company intends to come up with better delivery services that will ensure that the boxes reach their destinations in due time and also on-demand.

Physical

This simply refers to the physical components of the environment that has some sort of influence on the customer. The company intends to set up more outlets to enable its customers to access the products, especially the individual customers easily. The physical proximity of these outlets will be crucial towards attracting and maintaining the customers.

3-Year Financial Projection

%age Increment

Year 1

Year 2

Year 3

Beginning Cash

0

-$3,000.00

-$5,595.00

Revenues:

Sales

5.0%

$18,000.00

$18,900.00

$19,845.00

Other

5.0%

$3,000.00

$3,150.00

$3,307.50

Total Revenues

$21,000.00

$22,050.00

$23,152.50

Expenses:

Salary and Benefits

2.00%

$18,500.00

$18,870.00

$19,247.40

Supplies

5.00%

$2,000.00

$2,100.00

$2,205.00

Maintenance

$1,500.00

$1,575.00

$1,653.75

Machinery

$2,000.00

$2,100.00

$2,205.00

Total Expenses

$24,000.00

$24,645.00

$25,311.15

Ending Fund Balance

-$3,000.00

-$5,595.00

-$7,753.65

Figure 1.4: Financial Projection Source: Author 2020

Marketing Evaluation

Evaluation of the implementation process will be carried out based on;

• Customer satisfaction
• Repeat business with the customers
• Annual and Monthly Revenue
• Annual and Monthly Expenses