Organic Farming and Ceres
Ceres Gardening
Ceres Gardening Company Case Study
1. How has the company grown? What is its basic strategy + how has it evolved? What have been the key factors in the company's growth?
The growth of the company has been fueled by the market demand growth in organic products. Ceres increased their revenues by over 75% in just five years, while growing profits by over 25% (based on Exhibits 2, 3 & 4).
Ceres’s basic strategy started with its founder, Jonathan Wydown, to promote sustainable organic gardens and landscapes to environmentally conscious consumers. Mr. Wydown has been a proponent of soil preservation, biodiversity, and natural fertilizers and pest control. Mr. Wydown was confident that the same principles behind organic farming would eventually apply to home gardens and lawns. Mr. Wydown’ s vision evolved into the creation and development of a market niche of selected certified organic seeds and seedlings for vegetables, culinary herbs, and flowers – bringing the farm to the home per se. This market niche and products became the company’s differentiator and competitive edge. The key factors that drove the company’s growth are:
* Market demand and segmentation – Ceres developed a market niche for organic-conscious consumers who are concerned about the environment. Although products are priced at a higher premium, the value from the company’s environmentally conscious go-to-market strategy and segmentation allowed Ceres to develop a loyal consumer community.
* Product Offerings – Ceres expanded its products offerings to include open-pollinated, organically grown, and heirloom varieties of seeds and seedlings for vegetables, culinary herbs, and flowers. The company also added live plants, such as one-year-old trees.
* Production Strategy – Ceres’ principal farm was located in central California. As the demand for Ceres’ products increased, Ceres’s production capability was challenged. To keep up with the increased demand, Ceres developed
Ceres Gardening Company Case Study
1. How has the company grown? What is its basic strategy + how has it evolved? What have been the key factors in the company's growth?
The growth of the company has been fueled by the market demand growth in organic products. Ceres increased their revenues by over 75% in just five years, while growing profits by over 25% (based on Exhibits 2, 3 & 4).
Ceres’s basic strategy started with its founder, Jonathan Wydown, to promote sustainable organic gardens and landscapes to environmentally conscious consumers. Mr. Wydown has been a proponent of soil preservation, biodiversity, and natural fertilizers and pest control. Mr. Wydown was confident that the same principles behind organic farming would eventually apply to home gardens and lawns. Mr. Wydown’ s vision evolved into the creation and development of a market niche of selected certified organic seeds and seedlings for vegetables, culinary herbs, and flowers – bringing the farm to the home per se. This market niche and products became the company’s differentiator and competitive edge. The key factors that drove the company’s growth are:
* Market demand and segmentation – Ceres developed a market niche for organic-conscious consumers who are concerned about the environment. Although products are priced at a higher premium, the value from the company’s environmentally conscious go-to-market strategy and segmentation allowed Ceres to develop a loyal consumer community.
* Product Offerings – Ceres expanded its products offerings to include open-pollinated, organically grown, and heirloom varieties of seeds and seedlings for vegetables, culinary herbs, and flowers. The company also added live plants, such as one-year-old trees.
* Production Strategy – Ceres’ principal farm was located in central California. As the demand for Ceres’ products increased, Ceres’s production capability was challenged. To keep up with the increased demand, Ceres developed