Organic Valley Farms
Team 2
Calfon, Daphne
Javeri, Manisha
Iroh, Daniel
Lara, Liana
Sanchez, Veronica
Nov 1, 2007
Table of Contents
I.
II.
III.
Executive Background Summary
Company Description
Strategic Focus and Plan
A. Mission
B. Goals
IV. Situation Analysis
A. SWOT Analysis
B. Industry Analysis: Trends in the Food Industry Analysis
C. Competitors in the Organic Food Market
D. Company Analysis
E. Customer/Consumer Analysis
V.
Market Product Focus
A. Marketing and Product Objectives
B. Target Markets
C. Points of Difference
D. Positioning
VI. Marketing Program
A. Product Strategy
B. Price Strategy
C. Promotion Strategy
D. Place (Distribution Strategy)
VII. Bibliography
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I.
Executive Background Summary
This marketing plan outlines a brief history of Organic Valley Family
Farms and their mission to provide consumers with sustainable organic food
products. The primary goal of this marketing plan is to introduce a plan for cobranding a new ice cream.
II.
Company Description
Organic Valley farm began in 1988 as a small, organic farming
cooperative, the Coulee Region Organic Produce Pool (CROPP). CROPP began
with just seven farmers who shared a love of the land and a belief that a new,
sustainable approach to agriculture was needed if family farms and rural
communities were to survive. With more and more family farms threatened with
extinction, these farmers set out to create a solution. That solution has grown into
the largest farmers' cooperative today in North America that contributes
organically grown dairy, meat and soy products to the consumer in America and
overseas. Together, the cooperative voice of over 1100 farmers represents
approximately 10% of the organic farming community in America with a growth
rate of 20% per year. Organic valley farms defines organic as “a philosophy and a
system of production that mirrors the natural laws of living organisms with an
emphasis on interdependence of all life”.
Organic Valley farms will continue to bring new products to the organic
marketplace and to build a future for sustainable family farming. This marketing
plan outlines how the company will extend its market to consumers within the
U.S. More specifically this plan outlines how Organic Valley can use co-branding
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strategy with Ben and Jerry’s Homemade, Inc. to expand their line of existing
organic ice cream.
III.
Strategic Focus and Plan
This section will provide three aspects of the company that shapes and defines the
marketing plan. A) the mission, B) the goals, and C) core
competencies/sustainable competitive advantage.
A. Mission: The mission of the Organic family farm Cooperative Regions of Organic
Producer Pools is to create and operate a marketing cooperative that promotes
regional farm diversity and economic stability by the means of organic agricultural
methods and the sale of certified organic products. The company’s mission stands for
the health and wellbeing of the people, animals, and the environment.
B. Goals: As an organic farmer-owned and farmer-operated cooperative dedicated to
protecting and strengthening practices that respect the interdependence of all life, the
company has developed a pyramid to illustrate the belief that the future is organic and
sustainable. The following goals of the Organic family farms are mirrored in this
pyramid (See Figure 1)
 COOPERATIVELY market certified organic products produced by
our members.
 MARKET the best tasting, most nutritious and wholesome food as
possible.
 ESTABLISH farmer determined food prices to reflect fair return and
to use these prices to guide the cooperative marketing.
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 ENCOURAGE a farming future emphasizing ecological and
economic sustainability.
 ENABLE a healthy human livelihood by providing quality
employment, cooperation, organic education and community growth.
 PRACTICE environmental awareness and cooperative principles in
all aspects of production, handling, marketing and operations.
 PROMOTE a respect for the diversity, dignity, and interdependence
of human, animal, plant, soil, and global life.
Figure 1: Organic Lifestyle Pyramid
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IV.
Situation Analysis
A. SWOT Analysis: Table 1 shows the external factors the organic valley farm marketing.
Table 1: SWOT Analysis for Organic Valley Farms
Environmental Forces
Strengths
Social
Nutritious for your health:
 Organic milk has higher levels of vitamin E, omega 3 essential fatty acids
and antioxidants, which help beat infections.
 Cows farmed organically produced milk which was, on average, 50% higher
in Vitamin E than conventionally produced milk.
 Higher levels of omega 3 essential fatty acids, which are believed to help
provide protection from coronary heart disease, were also found in organic
milk.
Competitive
Organic labels attract customers to the product:
 “100% Organic.” No synthetic ingredients are allowed by law. Also,
production processes must meet federal organic standards and must have
been independently verified by accredited inspectors.
 “Organic.” At least 95 percent of ingredients are organically produced. The
remainder can be non-organic or synthetic ingredients. One exception:
Organic labels on seafood are meaningless because the U.S. Department of
Agriculture has no standards to back them up.
 “Made with Organic Ingredients.” At least 70 percent of ingredients are
organic. The remaining 30 percent must come from the USDA’s approved
list
 Avoidance of synthetic chemical inputs (e.g. fertilizer, pesticides, antibiotics,
food additives, etc) and genetically modified
organisms
 Offer Pasteurized, Non-homogenized and homogenized products
Technological
Economic
Regulatory
Must have periodic USDA on-site inspections to insure organic quality
Weaknesses
Not all customers are concerned with food quality
and nutrition
Some synthetics substances are still used allowable
by the National Organic Standards Board
Half the product for the same price as non-organic
milk
 Timely to convert to organic, min. of 3 years
 Conventional methods use lawful methods to
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ensure health of animals/produce
Environmental Forces
Opportunities
Social
May aid in reducing the risk of Alzheimer’s in elderly
Competitive
Co-branding with other competitive markets that have the same
philosophy/values as organic valley
Technological
Conservation of the environment and animals
Economic


Regulatory
Consumer spending toward health is growing creating and expanding the
market.
Organic dairy is expected to be a 3.5 billion dollar business by 2010 and 1.8
billion dollars will come from organic milk sales.
The green and organic movement could create policies that would provide tax
benefits to companies
Threats
Lactose intolerant individuals hesitant to eating
dairy foods
Extending the product with already existing
branded products could result into several barriers
to market penetration
Use of artificial hormones and other antibiotics to
increase milk production.
 Price conscientious consumers will not go
organic due price
 Women, Infants and Children (WIC) does not
allow consumers to buy organic products
Other competitors do not have to follow the same
organic standards
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B. Industry Analysis: Trends in Organic Foods
A. Organic Food Industry
 Organic Food Defined by USDA Standards: The U.S.
Department of Agriculture has revised the National Organic
Program (NOP) guidelines on the submission of petitions of
substances for inclusion on or removal from the National List
of Substances Allowed and Prohibited (National List) in
Organic Production and Handling. The updated guidelines
include modifications for information to be included in a
petition to review a non-organic agricultural product for
inclusion in the National List. The National List identifies
the synthetic substances that may be used and the nonsynthetic substances that may not be used in organic
production and handling.
B. Industry Size: 3% of the milk sold in the USA is organic
 The organic industry today represents $14.5 billion dollars
(just over 2% of America's food sales) in 2005
 Independent organic farms represent only 0.3%
 1183 farmer-owners belong to Organic Valley Farms
C. Industry Growth: Several small dairies are growing in popularity:
Organic food sales within the United States have grown by 17 to
20 percent a year for the past few years while sales of
conventional food have grown at only about 2 to 3 percent a year.
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This large growth is predicted to continue, and many companies
are jumping into the market.
C. Competitors in the Organic Food Market
A. How do they choose? : The organic minded consumers have limited
number choices of organic ice creams. For example, Stonyfield’s,
Breyer’s (their organic line ice creams) and other small organic
ice cream producers. The egg diagram represents the process
taken to deliver a co-branded product to the consumer Figure 1.
The competitors are also outlined in the egg diagram.
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Figure 1. Organic Valley/ Ben and Jerry’s Ice Cream
Basking Robbins
Häagen-Dazs
Kroger
Breyer’s Organic Line
Horizon
Raise organic cattle
Process milk
Pasteurize milk
Sell to specialty market like Whole
Organic Valley of Farms
Foods, Gelsons, etc.
Ice cream
Dreyer's
Stonyfield
Baskin Robbins
Package ice cream
Direct
Competition
Indirect
Competition
Transport milk to factory
for ice cream process
Mix organic products to
create new ice cream
Local Organic Producers
Dairy Queen
Swensen's Ice Cream
Cold Stone
Creamery
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D. Company Analysis of Organic Valley Farm co-branding with Ben and Jerry’s
Homemade, Inc.
Organic Valley is a cooperative of family owned farms that contribute
organically grown dairy, meat and soy products to the consumer. Ben and Jerry’s is
good match to co-brand with due to their similarity in their philosophy of providing
wholesome tasty products. Ben and Jerry’s popular brand and expertise in the ice
cream industry will help promote Organic Valley new product class of organic ice
creams. While, Ben and Jerry has already established a organic product class of ice
creams we feel that Organic Valley can capitalize on this already established brand
name in this product class (ice cream).
E. Customer/Consumer Analysis
 Who are the consumers: In order to get a vivid picture of our consumers, we
interviewed, Sara Tadesky from the Educational Outreach program at Organic
Valley. According to the company’s beliefs, the typical core organic
consumer whom they refer to as “citizen partner” have the following
characteristics:
 Health conscientious consumer who have already made a
choice to eat organic.
 Environmental conscientious consumer who are
mission/cause/issue driven
D. Health/Nutrition Concerns: Because most of the consumers that choose organic
foods would like an option to buy a popular dessert which is organic. Organic Valley
consumers are not necessarily concerned with calories but with a sensitivity to an
organic lifestyle.
E. Where do they buy? Organic minded consumers buy mostly from specialty food
stores, such as Whole Foods, Gelsons, Trader Joes, Wild Oats and small mom and
pop stores.
V.
Market Product Focus
A. Marketing and Product Objectives
A. Increase the current market: Current markets will be grown by
increasing consumer awareness of organic ice cream by
publishing in a wide variety of popular magazines and periodicals
such as, Time, Newsweek, NY Times, Cooking, etc.
B. New Products: Organic Valley ice cream, co-branded with Ben and
Jerry’s, will be added to the existing ice cream products already
sold at the current retail and specialty stores.
B. Target Markets
The primary target for Organic Valley products will be consumers who
live and believe in an organic lifestyle. These consumers will be interested in
a healthy lifestyle and supporting the environment.
C. Points of Difference: Uniqueness
Why they prefer a product: Organic Valley organic ice cream will be
unique relative to other competitors because of the following reasons:

Produced without antibiotics

Produced without synthetic hormones

Produced without harmful pesticides

High in conjugated linoleic acids

Excellent source of calcium

Humane treatment of animals
D. Positioning
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Along with Ben and Jerry’s established creative ice cream brand name,
Organic Valley hopes to position their co-branded organic ice cream in the
consumer’s mind as a healthy hormone free indulgence.
VI.
Marketing Program
A. Product Strategy
A. Product line: The new product line of organic ice cream will consist
of two new flavors that Ben and Jerry’s existing (strawberry,
chocolate fudge/brownie, vanilla, and sweet cream/cookies)
organic product line does not have. These two new flavors will
be chocolate chip and mocha cappuccino.
B. Uniqueness and quality are introduced through the two new flavors
and the organic aspect of the ice cream.
C. Packaging will be keep in sync with the Ben and Jerry’s ice cream
brand.
B. Price Strategy
Organic Valley’s price strategy is to keep the same prices as Ben and
Jerry’s existing line of organic ice creams which is approximately $9.00 a pint.
C. Promotion Strategy
Online and in-pack coupons will be offered in order to entice consumers to
try the new flavors of organic ice cream. To increase awareness and trial
purchases Organic Valley would conduct in store demonstrations and free sample
distributions.
D. Place (Distribution Strategy)
The co-branded organic ice cream will be offered at the following existing
marketed locations:

Retail Ben and Jerry’s parlors
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 Specialty chains: Whole Foods Market, Gelsons, Wild Oats
 Large chains: Albertsons, Vons and Ralphs
 Limited distribution to natural health food stores
VII. Bibliography
1. American Journal of Agricultural Economics, By Tirtha Dhar & Jeremy D.
Foltz, February 1, 2005
2. Ben & Jerry’s Homemade, Inc. http://www.benjerry.com
3. Bravo Co-Branding; http://finance.dailyherald.com
4. Fortune Magazine, “An Organic Milk War Turns Sour”, By Marc Gunter,
October 3, 2007
5. Organic Valley
A. Interview with Sara Tedesky of Organic Valley Educational Outreach
Program, LaSarge, Wisconsin; October 31, 2001
B. Organic Valley Family Farms website: www.organicvalley.coop
C. Organic Valley Family Farms at the Green Festival; website Google
video:
http://video.google.com/videosearch?q=Organic+Valley&sitesear
ch
6. Unites States Department of Agriculture website: www.ams.usda.gov/nop
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