Sano Organico Cafe Harvard Case Solution & Analysis

Product Proposal

The proposed product portfolio includes beverages and other food items that are consumed in daily intakes, such as coffee, drinks and fast food items. However, the beverages are further divided into standard and seasonal drinks, where seasonal drinks are offered for a period of three months, meanwhile, the standard drinks are all time favorite drinks which are in daily routine sales. Further, the beverages offered by the Organic Café differ from other beverages in the market in a way that they were offered on a seasonal basis and were introduced on different occasion and festivals which attracted people from different cultures, additionally, the people from other nations and cultures were also attracted to taste the innovative drinks. Meanwhile, other food is offered at breakfast, lunch and dinner.

Further, the product of Sano Organico Café is featured with all organic ingredients and café offerings ensures that it acquires fresh and organically grown coffee beans, therefore, they procure coffee beans only from those suppliers who are certified by the government authorities. Additionally, the products are developed in order to provide the consumer with healthy lifestyle and includes such ingredients that are better suited for man, women and children of different age groups. However, since all the products are made of organic ingredients which are expensive to procure, therefore, the prices of these product offerings will be higher than the average market price of similar goods, because the premium will reflect the higher price paid for the procurement of organic raw material used in the products. Additionally, the product will be offered in thermal packaging bags for the food items for home delivery, which will maintain the quality and temperature of the food items.

Meanwhile, the products are certified by the government authorities for the proof that they organically processed and contain organically grown ingredients. Further, the certification is used to in outlets to create customers’ awareness of the organic food.

Moreover, the products differ from the other products that are claimed to have organic ingredients, do not include 100% organic ingredients, but Sano Organico Café will offer products that are organically processed and include 100% organic ingredients which is a unique feature of Sano Organico Café offerings. Meanwhile, the products of Sano Organico Café differ from the competitors’ products in term of healthy intake included in the food and beverage items.

Market Structure

Major Supplier of Organic Food Products

However, the organic food market is in the development phase where all the companies who have entered into the organic food market during the 1990s or later. Further, the major suppliers of organic food products are as follows;

FMC Greenland

FMC Greenland launched their first organic outlet during 1997 in Subang Jaya, Selangor and now it has grown to all the major cities of Malaysia. Meanwhile, it has 33 chain stores and 10 dedicated vegetarian outlets and it provides support to the organic farmer in order to increase the organic production and the supply of organic raw material for production of its organic food products. Further, the famous brands of FMC Greenland include Biogreen, O’Clean, O’Choice, O’Forest and Healthy Kitchen

BMS Organics

BMS Organics were launched in 2002 in Subang Jaya in Selangor, Malaysia and started its operation from an organic shop and now they have expanded their operation in different cities of Malaysia. Moreover, it serves the nation through its 37 outlets and 9 organic food outlets and BMS Organics also sells through online stores. Additionally, BMS have won several brand awards, which include the Malaysian Book of Record 2014 and MRCA 2014.

Just Life

Just Life Shop started the provision of organic food products during the year 1999 when the organic food industry was in the introduction phase. Further, Just Life Shops are operated under the brand name of Justlife™, with 7 Justlife ™ stores in Malaysia, meanwhile, Just Life also sells its organic food product through its online outlets and its product portfolio include several products such as Organic Cooking Ingredients, Organic Fruits & Vegetables, Organic Wholefood Nutrition and so on.

Barriers to Entry

Low Consumer Awareness of the Organic Food Products

Since the consumer has low awareness of the organic food and they are not fully aware of the benefits they can gain from using the organic food, therefore, they are not willing to pay the high cost for 100% organic food items. Hence, the customers’ low awareness discourages the new entrants to enter into the organic food market................

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