Organic Livestock Marketing Cooperative Assignment

Organic Livestock Marketing Cooperative - Assignment Example OLYMCO is driven by the mission to become the largest marketer of organic beef and lamb in the UK. The key to achieving this mission lies in the desire to provide the customer with value in terms of the quality of the product coupled with highly competitive prices and to ensure complete transparency in their operations. "We exist to attract and retain customers". Statistics of the market and competition have been collected. A detailed survey of customer preferences and loyalty drivers was also carried out (Section 9.6). This information will help enhance growth and sustain profitability and growth. Red meat is a primary food market in which sales have recorded marginal growth (DEFRA, 2006); values have risen, as consumers have been willing to trade up to more convenient cuts (Cooper, 2006). "The Organic Market Report 2006 reveals the biggest increase in sales to be in organic meat and poultry. In 2005, the farm gate value of organic meat and poultry was an estimated 129m, a 59% increase on 2004" (Watts, 2006). The demand is projected to grow in the near future especially as healthier and more reasonably priced product becomes available, the fear of the 'mad-cow' disease abates and with threats of avian flu reducing sales of poultry (Poultry World, 2006).This is despite predictions to the contrary a couple of years earlier (see Buss, 2004). Although British retailers are under pressure to source more organic foods indigenously, it is found that imported organic meats comprise almost 20% of total sales volume (Research and Markets).The balance between supply and demand remains t ight (Davies, 2006). Apart from the retail trade, there is high demand for organic meats from food processors and the catering sector. There is also rising demand from restaurants, schools, hospitals and government organisations (Research and Markets). 4.1 Market Demographics The profile of OLYMCO's customer consists of the following geographic, demographic, and behaviour factors. Geographic: The immediate target is the populace residing within the UK - a population of nearly 61 million. Of this, roughly 25 percent are vegans and others who do not eat one or the other type of meat. The boundaries of the country define the geographical area to be covered. Demographic: All people over 20 years old, representing over 70 percent of the total population. Customers belonging to the A and AB categories, i.e. having an annual household income above 25,000. Behavioural Factors: From the results of the consumer survey conducted, the customers are: Willing to pay a premium for higher quality, tastier meats, Tend to patronize higher-quality restaurants, and are Cognizant about their health 4.2 Customer