Samples Agriculture Micro-Market Of Underground Farming

Micro-Market Of Underground Farming

802 words 3 page(s)

Introduction

There is no doubt that all business entities are looking for new opportunities in order to increase business efficiency and add competitive advantages to the product offering. One of the recent trends that are implemented nowadays is underground farming (Dockrill, 2015). The Growing Underground Company is the first one that used the World War II of London in order to develop eco-friendly farming business. The company grows, packs, and distributes different types of vegetables and herbs (Growing Underground, n.d.). The company is aiming to deliver fresh high quality products to local customers (Rodionova, 2017). Considering the success of the Growing Underground Company, it is efficient to follow the trend of underground farming and start an enterprise that is engaged in growing rare vegetables such as pink lettuce, artichokes on the basis of tube stations. The paper is aiming the micro market analysis of the underground farming company.

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Market Size
Considering the fact that the products are grown at the underground farming based in Central London, it is beneficial to offer vegetables and greens to local restaurants. In addition, it is important to lay the stress on the fact that restaurants of all cuisines use vegetables and greens for their dishes. That is why the demand on the production is planned to be high. Moreover, there are 24,360 restaurants and cafes in London (World Cities Culture Forum, n.d.). Consequently, the market size of the underground farming company in London is more than 20,000 target customers.

In addition, it is important to lay the stress on the fact that the market size of the underground farming is supposed to grow. It deals with the fact that number of restaurants in the Western Europe and market value of the industry is constantly growing. It increased from 412440.9 million Euros in 2012 to 437 780, 1 million Euros in 2017 (Statista, n.d.). Thus, the company has positive prospects of sales amount increase in the future.

Segmentation Analysis
As for the geographic segmentation criterion, the primary target audience is restaurants and cafes that are located in the urban London area. Moreover, the company should also target the restaurants and cafes from rural areas in order to increase the market share and market size. However, the final consumers of the underground growing products will be restaurants visitors. From demographic criterion, the company is to target business entities of different price level from economic cafes to luxury restaurants. It deals with the fact that the low distribution cost gives an opportunity to settle competitive price on the products of underground farming company. The psychographic criterion is based on the increasing popularity of running healthy way of life and consuming ecological products by restaurant customers. The underground farming company fulfills its requirements delivering ecological and fresh vegetables and greens for a small period of time to the target audience. Due to behavioral criterion of analysis, the underground farming company offers vegetables and greens for cooking salads, soups and other dishes and restaurants.

Target Audience
The target audience of underground farming company is restaurants and cafes of different sizes and price category that are located in urban and rural area of the London City. The target audience uses the product of underground farming for development their product offerings, namely cooking and serving dishes. The target audience can be reached through direct marketing or online communication. The underground farming company also has the online presence in order to increase customers’ awareness.

Positioning
The underground farming company is positioning itself as an ecological producer of rare vegetables and greens such as pink lettuce, artichokes. The company provides beneficial product range. In addition, the company is laying the stress on natural and eco-friendly growing process that is very valued nowadays. The third competitive advantage of the underground farming company is fast delivery. Due to the fact that the enterprise is based on tube stations in Central London. The distance of delivery to target audience is rather small. Consequently, the company has an opportunity to deliver products fast with small distribution expenses.

Conclusion
Thus, taking everything into account the conclusion can be done that the underground farming company is running a promising business strategy. The micro market conditions of London are rather beneficial for the underground farming company development. The market size is large. In addition, the business strategy of the company gives an opportunity to target wide range of target audience. Moreover, the company has effective positioning strategy that includes three competitive advantages.

    References
  • Growing Underground. Retail. n.d. viewed 27 February 2018, < http://growing-underground.com/retail/>
  • Dockrill, P. World’s First Underground Urban Farm Opens For Business in London. 30 June 2015, viewed 27 February 2018,
  • Rodionova, Z. Inside London’s first underground farm. 3 February 2017, viewed 27 February 2018,
  • Statista. Market value of consumer foodservice in Western Europe from 2012 to 2017 (in million euros). n.d. viewed 27 February 2018,
  • World Cities Culture Forum. Number of Restaurants. n.d. viewed 27 February 2018,