Organic Food Subscription Schemes in Germany, Denmark, The Netherlands and The United Kingdom. Definitions and Patterns of Development in an International Context.

Summary

This research investigates the phenomenon of organic food subscription schemes in four European countries. It aims to provide an international developmental framework for Organic Food Subscription Schemes (OFFS). It identifies driving forces of the organic food subscription markets and describes and defines different types of OFSS by their development and by their most important operational features.
Based on a database of 800 OFSS companies, twenty in-depth, semi-structured interviews and company visits have been conducted during January and March 2004 in Germany, Denmark, The Netherlands and The United Kingdom. Market information from experts, strategic suppliers, consumers and consultants has been gathered through interviews. The outcomes were analysed in four national case studies, arriving at important conclusions for the national markets and the development of the OFSS. Common patterns have been identified through an international cross-case analysis. The outcome has been threefold:
(1)Firstly, distinctive definitions of the organic food subscription schemes, distinguishing OFSS from shops, and the diversification of OFSS into boxschemes, bag-schemes and supportive-schemes
(2)Secondly, three clusters of OFSS with common features have been identified as
- OFSS with up to 2.000 orders per week
- OFSS with more than 10.000 orders weekly
- OFSS, which operate a B2B system
(3)Thirdly, a Development Model for the first group, representing more than 80% of the OFSS companies has been suggested.
The Box-Scheme Development Model describes how companies will develop their movement towards individualisation of the subscription through five sequential stages indicated by issues of marketing and operations. The most important aspect is seen as the benefit to the customer. It has been identified and discussed from a consumer perspective by the added value concept, and was supplemented by an operational perspective. The product and service features were analysed according to their tangible and intangible parts, their importance for purchase (Order winner & Qualifier) and the perception of customers (Quality).
This paper enables practitioners to anticipate their company’s position in the stage of market development by their operational features and their customer demands, and to predict likely future developments.
Gaps of knowledge and have been found and further research is suggested in order to:
-Understand the growth of OFSS companies with more than 10.000 orders weekly
-Decide on the success factors of bag-schemes and new developments in an international context
-Extend the Box-Scheme Development Model towards supportive OFSS in emerging markets
-Collect basic quantitative data of the OFFS companies, customers and market figures.