That particular analysis may essentially relate the above discussed predicament of PCI CEO Strauss, to restate that “challenging framework of expanding PCI ventures to define the variety of organic perishable goods, and determining the business-policy environment of the industry to specify the categories of goods, market segmentation, supply and distribution, status of production and market, and the competitive advantages of PCI business model” (2).
As cited from the case study, it defined that “organic” is a given term for agricultural products that are under strict commercial production and marketing under the authorization of the Federal Organic Foods Production Act of 1990 (FOFPA) that regulates the export and import distribution or supply (4).
As quoted in verbatim from Title 7 in Chapter 94 of FOFPA 1990, otherwise known as US Federal Code 6505, the statute states that “imported agricultural products may be sold or labeled as organically produced if the Secretary of the US Department of Agriculture or its authorized entity has determined that organic products have been produced and handled under an organic certification program that provides safeguards and guidelines governing the production and handling of such products” (1).
Therefore, PCI must look into the “business-policy environment” adherent to promulgating the restrictions of law in marketing of organic perishable goods. It may be further analyzed that the expansive modality of PCI in categorizing and identifying the product and target market consumer could have been developed or encouraged in the indicated data on organic foods consumption in the US alone.
According to the 2004 Whole Foods Market data that has been indicated in the case study, 69 percent of American consumers are organic food eaters, but the industry growth in organic food production do not meet the existing consumer demand. Hence, the 69 percent of consumer market composes the group of children and senior citizens as majority consumers, in which unmistakably the PCI’s target market segment. The illustration below shows the categories of organic goods and the percentage consumers’ purchases (5):
Indicative of the above illustration of data, the case study pointed out the market segment in which the industry players [like PCI] must look into the basic fundamentals of organic foods production. As cited, organic food production needs the relevant know-how and economic orientation of farmers in organic cultivation, wherein the traditional farming method must be advocated in order to ensure organically grown agricultural products, such as in livestock, aquaculture, flower and ornamental plants, vegetables and plantation crops of fruit bearing trees (6).
Essentially, organic farming is not only the traditional farming method but coupled with technology that eliminates the use of pesticides and synthetic fertilizers. As previously discussed, the category of market and identified target market consumers challenges the expansion modalities of PCI. In so doing, the case study has indicated the situation wherein analyzed.
The illustration below may further determine the framing of resolution, formulate, synthesize and indicate the adaptable measures: Source: Case Study, Onwugbenu et al. (2005) The structure of the Organic Perishable Goods Industry indicates a vast market opportunity for PCI. However, it may be noticed that the four (4) segments of the industry, such as (1) regulation, (2) marketing, (3) advertising and promotion, and (4) technology segments, are needing due attention.
Therefore PCI must redefine, reassess and reinvent its business operational framework within the confines of the above mentioned segments of industry (7). Firstly, with regard to regulation, PCI must determine the business-policy environment affecting the mandate of FOFPA 1990 in order to formulate organizational policy measures that complies with the existing regulatory law in production, selling or marketing, distribution of organic perishable goods.
Relevant to this, the study-research conducted by Fabien Tondel and Timothy Woods entitled: ‘Supply Chain Management and the Changing Structure of US Organic Produce Markets’ which was published by the Department of Agricultural Economics at the University of Kentucky in 2006 has implied the critical role of commercial traders in examining and realigning their organizational policies in the market distribution of organic perishable goods.
In which case, PCI must adopt an organizational framework that addresses its role in organic perishable goods industry. Secondly on marketing, PCI can categorically pursue its marketing expansion [with the specialty product specified consumers] by reconsidering the fact that organic perishable goods has a potential market, although marketing of organic products finds relevance in the existing Federal statutes that may somehow restrict the overall marketing venture.