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PURE - Essay Example

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Case Analysis: Pure Organic Food and Juice Bar BY YOU YOUR SCHOOL INFO HERE DATE HERE Case Analysis: Pure Organic Food and Juice Bar Objectives of Ownership Graham and Buob wanted to exploit the trends in the Canadian consumer market that was building higher demand for organic (natural) food products…
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Even demand was increasing for raw foods, those that were thermally processed at 120 degrees, which is representative of the planet’s ambient temperature, which was said to aid in digestion, sustain natural healthy bacteria levels, and ensure maximum nutritional content. The main objective was to establish an eatery that would have market-centric relevance, especially in relation to food availability on the menu and the internal decor. Utilizing a naturalistic environment consisting of woods, natural greenery, and a variety of displayed vegan and raw products, Graham and Buob wanted to create legitimate relationships with customers that valued these naturalistic elements supported through knowledge exchanges with consumers in an eco-sustainable environment. By promoting an environment where vegan and natural foods consumption lifestyles could merge with ownership and staff, the objective was to create a revolutionary type of restaurant that could cater to this expanding market niche. The Main Problems at Pure Problems with the foods regulatory environment posed reputational risks for the variety of products that were procured by Pure. The United States Department of Agriculture allowed or five percent of an organic product’s attributes to contain non-organic materials. ...
This meant that Pure might not be able to promote products to a holistic niche market since they maintained no control over procurement regulations and would likely not gain the attention of mainstream consumers either. Pure also had to promote a higher pricing model due to the high costs of procurement for organic and vegan products along the supply chain. Mainstream consumers were more attracted to fast food products and packaged/processed foods due to their lower pricing structure. The competitive environment provides many different lower-priced restaurants which would be a hindrance in attempting to appeal to the price-sensitive consumer market segments. Coupled with a mainstream sentiment that vegan and organic products are tasteless and boring related to flavor, it would be very difficult for Pure to attempt to market to the majority of consumer segments, thus being forced to cater to only the niche market segments that legitimately valued natural foods. Furthermore, the growth of availability of organic products at regional grocery stores represented a credible threat of substitutes on the market. Pure was unsure about how the ownership would effectively promote the motivation for dining out to consume natural products when grocery stores made these products widely available, especially important in a market with only 17,000 residents making an average of just under $22,000 annually; below the provincial earnings average. A market environment that is limited in terms of available consumers with legitimate resource restrictions posed a significant threat to the high price model necessary for Pure to remain profitable. These restrictions, coupled with the cultural characteristics in Collingwood to enjoy recreational activities that made ... Read More
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