Marketing strategies of organic food producers

Modern food production technology represents a major issue in today’s world, primarily due to the numerous negative economic, social and primarily ecological consequences which it causes. They in turn adversely affect the very survival of human society. As a result, the fact that more and more producers are turning to organic farming is understandable, as is the need that people feel to voluntarily change their dietary habits so as to consume more organic products. Organic production completely supports the concept of sustainable development. It is the only type of production which merges the traditional and the modern, relying primarily on natural products which originate from farms, and at the same time contributing to the ecological balance of natural systems. Considering that organic production takes place with strict adherence to the prescribed legal guidelines, the transitioning into this type of production is not an easy or short-term process. However, the patience and effort invested by the producers are negligibly small in comparison to all the benefits which are provided not only for the producers but for the entire community. Over the last two decades, the organic food market has continually been expanding. Even though the USA, EU and Japan have exhibited the strongest demand for organic food products, the wave of the demand for these products is spreading into other parts of the world as well. It is precisely this kind of market trend that represents a clear invitation to all producers to offer a suitable response to the demands of the current consumers, which also includes the effective application of marketing concepts in their business transactions. Deciding on adequate marketing strategies for organic food producers is the focus of this research. The dissertation will offer a detailed account of the development of a marketing strategy based on four phases, including: strategic analysis, choice of strategy, implementation and evaluation, and the control of the marketing strategy. Strategic analysis, as the first phase, should offer an overview of the opportunities and threats which originate from the external environment, but should also identify the strengths and weakness within the production units themselves. In phase two, an attempt will be made to select possible strategies in the production of organic food, which will enable these producers to respond to the challenges of their environment in a timely and proper manner. However, even the most suitably designed strategy will be prove to be unsuccessful if it is used incorrectly. This means that implementation is a critical phase in this process, and as such it requires the proper implementation of strategies involving certain instruments in the marketing mix, as well as the design of an organizational structure which is in accordance with the selected strategy. The results of the previous phases can be monitored and evaluated within the control and evaluation phase. As a result of this phase, a system of possible measures of marketing activities will be proposed, since the quality of marketing decisions depends on the quality of the measuring, as does the success of the overall process of marketing strategy development. The analysis of the existing research results points to the fact that most of the information related to marketing in the field of organic food production originates from sources which are not based on any adequate empirical data and research. Most of the studies that have been carried out to date have focused solely on organic food consumers, while there is a lack of any more significant studies which would focus on the producers of these goods. Thus, within this doctoral dissertation, we will present the results of an empirical study which simultaneously included both the consumers and producers of organic food in Serbia. The aim of this research is to obtain a more clear and precise understanding of the attitudes, motives and behavior of consumers on the one hand, and to study the effectiveness of the application of marketing concepts in the business transactions of the producers on the other. Thus, this will enablethe subsequent identification of the key factors in the development of an adequate marketing strategy. Another contribution of the research is that it offers proof of the decisive importance of the value that producers place on the extent of market orientation, with the aim of enhancing business success and competitiveness