Consumers’ preferences and marketing of organic products

The competitive situation for organic products has become tougher on the Swedish market and they now have to compete with conventional products, where the retailer’s own private brands are gaining ground. The early market growth was largely driven by an interest by major retailer chains to offer organic food as part of their image building strategies. The consumers’ decision-making and choice take place at the point of purchase, and the grocery store is crucial as a marketing place of organic products. Not only the overall strategy of supermarkets but also the activity and interest of the managers and staff in the stores are important. Our studies indicate that there is a difference in attitude of buyers and non-buyers of organic products in that the former seem more health oriented and the latter more inclined toward the planning of a meal, in a social context. In our conjoint analysis the respondents have greater utility of product origin (Swedish) than of production method (organic), with price being the most important attribute. Similar quality associations were stated for Swedish and for organic product. The implication for marketing should be carefully considered