Overview of the Organic Food Market in the US
In the US, the organic food market has evolved rapidly. From being a niche market segment to a mainstream market, the sales of organic food in the US have skyrocketed over the past few years and were estimated to be approximately $45 billion in 2017 alone. This has made the organic food market the fastest growing food market segment in the US. The annual double-digit growth in organic food sales has outstripped the growth rate of the overall food industry. Also, with several unprecedented conclusive studies linking economic health to the use of organic food, leading food industry players are now looking at capitalizing on new opportunities within this segment.
Organic Food Store Challenges
- New food trends gaining momentum: New food movements in the form of the vegan food trend, gluten-free, non-GMO, and flexitarian diets have severely impacted the market. With such trends gaining momentum in the market, companies in the organic food store segment are poised to face challenges in establishing their presence and attracting consumers.
- Navigating industry nuances: The certifications on food labels are generally easy to understand and include GMO, gluten-free, preservative-free, and so on. Unlike general food labels, organic food labels are not so easy to interpret in detail, though we know it revolves around terms like pesticide-free, antibiotic-free, and GMOs. The challenge for players in this segment is to identify ways to fit the nuances of the organic certification, which is one of the most stringent in the industry.
Engagement Summary:
The key decisions makers of the organic food store wanted to gain a broad understanding of the global competition. Hence, they approached Infiniti Research to leverage competitive intelligence insights to develop a competitor analysis framework and develop a future-proofed business plan. The competitor analysis template helped them develop the core competencies that are required to sustain a competitive advantage.
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Client’s Background:
The client is a certified organic food retailer in the US.
Client’s Challenge:
The client, who runs an organic food store, wanted to gain in-depth insights into their competitor’s future business plans, actions, and strategies. A majority of the challenges faced by the client revolved around analyzing and monitoring the competition in the market on an ongoing basis. Hence, they wanted to develop a competitor analysis template to keep track of the competition.
Business Impact:
The main rationale of this competitor analysis engagement was to offer a detailed outlook of the global organic food market from a competitor’s point of view. This helped reveal the competitive advantage and disadvantages of the organic food store in relation to its competitors. Using the devised competitor analysis template, the client was able to predict their competitor’s intentions and accordingly develop future competitive strategies to establish advantages over their peers. Increased sales by 13%.
Why should you create a competitor analysis template?
A competitor analysis template helps organizations outsmart the global competition by capturing and keep track of the current state of the market. If developed and implemented correctly, the competitor analysis framework acts as a tool that helps businesses to figure out gaps in their competitor’s strategies; thereby, helping them adjust their own business strategies to take advantage of new market opportunities.
Competitor Analysis Framework Insights
A competitor analysis framework not only helps to identify potential threats from the industry’s competitors but also evaluates and prioritizes them based on the level of threat. This would be used as benchmarks to identify the potential threats that need to be addressed.
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