Running head: WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
STRAYER UNIVERSITY
MKT500027VA016-1186-001: Marketing Management
PROFESSOR: Dr. James W. Fraser, Ph.D.
WEEK 03: Assignment 1, Part A: Marketing Plan
(Hawaiian Highbiscuits)
STUDENT: Anthony W. McCloud
22 July 2018
1
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
2
1. Write an introduction to your company. Describe your hypothetical company, its
location, and the product it makes or the service it provides, and introduce the contents of
your marketing plan.
Introduction
Hawaiian Highbiscuits is a Canadian company that has been in existence for five years as
a marijuana grower, as well as manufacturer of cannabis infused products such as cookies scones
and brownies. The company integrates the best of both the technological and natural world to
produce the best quality cannabis products. The firm has capable teams in the various
departments to cater with plant research and development, production, extraction, and supply.
The firm’s marketing plan entails a one-year plan (short term) and a five-year plan (long term).
The plan covers the following metrics; tracking website visitors and downloads to enhance their
experience, increase new product adoption and retention rates, and expanding the market share.
The company’s vision is to establish the best cannabis across the global cannabis
community that comprises of passionate and daring people. The company is driven by the
virtues of quality and integrity in undertaking all activities. The mission of the company is to set
the best practices by becoming the industry leader; thus, change the perception of cannabis
positively and raise consumer experience. The values of the company include maintaining trust
among its customers as a measure of its success and generating an iconic portfolio of high
quality and enjoyable products while maintaining affordability (Vara, 2016).
The firm's short-term goals include; increasing new product adoption and retention rates,
and tracking website visitors and most common website purchases to capitalize on the product.
On the other hand, the company has long term goals which include; increasing the growth rate
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
3
compared to its competitors, expanding the market share as well as the profit margin, and
maintaining positive customer engagement. The company has undertaken an in-depth analysis
of the market, financial capability, and the situation at hand to draw an action plan that will see
them achieve both their short term and long-term goals.
2. Develop your company’s mission statement.
Hawaiian Highbiscuits’ mission is to be the industry leader in quality, affordability, and
accessibility to the world’s growing marijuana market; thereby, changing the perception of
cannabis to one of high potential, while we work jointly with industry partners to bang the gong
for safe and responsible consumption.
3. Decide the main goals that you would like to achieve within the next year (short term)
and the mains goals that you would like to achieve within the next five years (long term).
Determine the most appropriate ways to measure both short- and long-term goals.
Short term goals
Website analytics
Website analytics is essential for business growth as it provides information on how
visitors behave when using the website. It gives actual reports on the age, gender, and location
of most visitors. It also helps to know the most popular content on one's website and the total
conversions. The directors can also get to know the most popular materials which enable them
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
4
to make informed business strategies. For this reason, the directors have set tracking website
downloads as one of their primary goals in the next three years citing the following importance:
•
Getting more knowledge on customers and enhancing their experience
Business decisions, whether big or small can hurt customers, thereby, creating a negative
image and decreased sales. Website analytics are critical for the managers when it comes to
making business decisions. The directors want to enhance user experience with every decision
that the company will take. The analysis will help them to know the geographical location, age,
and gender of their customers and their interests. For instance, young customers aged between
eighteen and twenty-five years would prefer to smoke marijuana as opposed to the older
generation, which would opt to consume the product in the form of scones. Also, the analytics
will help them gain knowledge of the technology (device, browsers and operating systems) that
most customers use to access their site. For instance, if the device analytics shows that most
customers use mobile to visit the company’s site, the developers can try to make the website
more mobile-friendlier. Research by Maccoun (2015) shows that interests vary across the
various age groups, this is important in customizing a website that will be popular among users
making them take more time in the site and ultimately buy.
•
Knowing and focusing on the best content
Website analytics will help the company to know which content gets the most visits, the
duration each customer spends and bounce rates for individual pagers. The information will help
the firm sort its site for better engagement. The IT department can add purchase links or call to
action links on the top of the pages of the firm to increase sales. Similarly, the site developers
can update their pages with the latest information or reconstruct the page design and structure to
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
5
make them more appealing. Moreover, the firm will know which content works and which does
not work and as a result, focus on what gets more visits to boost site engagement. For example,
the company can choose to focus on the health benefits of taking cannabis.
•
Search engine optimization (SEO)
The company ought to optimize on its search engine because it gives a reflection of the
business growth. Businesses with more organic traffic on their sites often have higher turnover
compared to businesses with lesser site visits. The website analytics will help the company’s
SEO in various ways; first, knowledge on visitor’s demographics and interests will help generate
customized content that will get more views. Besides, the company may gain more insights on
backlinks by tracking its referrals. The company can also connect its account with Google
search console which will enable them to search queries that send the most traffic. Moreover,
the company will benefit from actual data on total clicks impressions and average click-through
rate.
Increasing product adoption
Hawaiian Highbiscuits has recently sold over $50 million dollars of product to the 9
million active users who log in to their account every week. The directors understand the
importance of product adoption as a prerequisite for every significant metric, that is; customer
retention, user engagement and revenue generation. For this reason, the managers work hard to
popularize their ‘aha!’ movement which targets making the product a staple of the customer’s
routine rather than just being nice. The directors target weekly sales revenue of $100 million in
the next the six months. This goal highly depends on their product adoption and retention by
customers; consequently, the directors have laid down the following strategies.
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
•
6
Creating an unforgettable first user experience
The company seeks to enhance the first user experience as a means of increasing product
adoption by customers. The directors have suggested the use of welcome messages, tooltips and
in-app tutorials that will help generate a clear path to value. For many buyers, the product
importance may not be vivid until one gets a clear insight; for example, one has to inform
patients the health benefits that come from the products for them to purchase it.
•
Treating every new feature as a new product launch
The company's product has been evolving; the company has been learning parts of their
product that boosts engagement as well as elements that customers overlook. The company
frequently updates old features and releases new brand functionality using the information. This
move helps to increase customer adoption, especially with new users. The management has
decided to treat a new feature like a mini-product launch. This way, even veteran users of the
company's product become utterly inexperienced and intrigued with every release.
•
Supporting in-app experience with behavioral emails
The ‘aha' movement is the quest for habitual user experience; it aims at people using the
product consistently and automatically. For a social media management tool, the company wants
users to log in every time it shares a post on Facebook or LinkedIn. The company wants
customers to use their SEO tool every time they have queries regarding search performance. The
company is considering the use of email to leverage on mere exposure effect and achieve
repetition. The firm will be sending emails that will echo the advice in their app tutorials; this
way, it will increase the likelihood of the target user acting on it or trying new features of the
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
7
product. Also, emails can be used to relay other messages such as urging users to finish their
social media accounts.
•
Use of hyper-targeted onboarding
This approach will help Hawaiian Highbiscuits to fix its ‘weak spots’ and drive
engagement with the whole product regardless of how complicated the feature might be. The
firm will use segmentation because of the varying customer preferences.
•
Find, fix, and repeat
The firm’s goal of product adoption has been hindered in the past by specific acute
problems. For instance, some features have been too complicated for the customers to use. In
other cases, in-app navigation has been a problem for some customers. The company has
resorted to finding and sorting this problem. The company will use product analytics that will be
useful in; providing aggregated user data that provides insight into macro-level issues such as the
decline in customers' retention rates or drop in daily active users. Also, the analysis will help
shed light on micro-level problems such as features going unused. More importantly, the
company will focus on fixing the issues rather than just understanding the cause. The company
will use live chats, user sessions and surveys to collect data. Using the information, the company
will create a flywheel of continuous improvements. The process will be repetitive- collecting
data, feeding it into the flywheel and undertaking improvements.
Long term goals
•
Increasing the company’s market share
The company is considering innovation as a way of increasing its market share in the
long term. The company seeks to be pioneering in technology adoption especially in the growth
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
8
of marijuana in greenhouses. Also, the company will optimize technology when it comes to
customer relationship management (CRM). By investing heavily in CRM, the company will
protect its market share mainly by preventing a customer from migrating when competitors offer
new deals. Similarly, the approach can help retain customers, since satisfied customers
continuously speak of positive experience gained to their friends and relatives. Furthermore,
word of mouth is far better as it involves no marketing expenses to a company.
•
Increasing customer engagement
Hawaiian Highbiscuits seeks to enhance customer engagement within the next five years.
Customer engagement involves encouraging customers to share their experiences that the firm
creates for them. As a result, the firm will benefit brand growth and loyalty. The company has
set customer experience as the number one priority. The directors are keen on creating a support
team that is empowered and shares in the company's dream. For instance, giving customers
more call time as opposed to enforcing call time. Research conducted by marketing students of
Harvard University shows that 80 percent of customers will pay more for a product just because
of customer experience. The company also wants to humanize its brand which is natural
considering the firm's nature as a fun consumer brand. The directors will select one employee
who is passionate about the company's product. Consequently, they will grow the persona into a
leader and give them an opportunity to engage with consumers. Lastly, the company’s managers
focus on personalizing customer engagement mainly by use of a sophisticated algorithm that
generates product recommendation based on a customer's browsing history.
4. Develop an environmental analysis that includes competitive, economic, political, legal,
technological, and sociocultural forces.
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
9
Environmental analysis
Hawaiian Highbiscuits has undertaken an ecological study to identify all of its internal
and external elements that affect its overall performance. The managers know that the industry
is dynamic with new changes every day. Some factors are beyond their control however most
factors can be controlled. The directors used the PESTLE analysis model to analyze their
environment.
•
Political situation
The directors sought to know the country’s political situation; they also conducted a
detailed analysis of the global conditions. Currently, the government leadership is supportive
with most leaders embracing growth and sale of marijuana products but subject to some
refinements to remove some addictive substances. As a Nation, Canada (where the company is
headquartered) has voted to legalize the production, use, and distribution of both medical and
recreational cannabis. This bodes very well for the company’s future growth. Also, many states
in the US have legalized marijuana and will provide subsidies in the form of fertilizers for
marijuana growers thus the company may consider expanding to the United States. The
legislators are planning to introduce a motion that will see cannabis products be tax-free due to
the health benefits that people stand to gain. However, the government regulates the new
entrants to the industry by formulating stringent requirements. Nevertheless, the move might
work positively towards promoting the company's growth since it is already in existence.
•
Economic factors
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
10
The managers have conducted an in-depth analysis of the economic factors. The
managers expect a small decline of the economy in the next six months followed by a gradual
rise of at least 2 percent annually. The country's inflation rate is 6 percent which the directors
consider as favorable, especially, to maximize exports. The bank's interest rate will drop but
subject to a bill that is yet to be passed. However, this move might make the banks stricter when
it comes to issuing of loans. The unemployment rate, especially among the youth, is expected to
decline which is a positive message for the company since most of its customers are young.
•
Social factors
Social factors vary from one region of the country to another; generally, people's attitudes
have been positive, which has impacted the business positively. The population has been openminded and easygoing with matters of accepting marijuana and marijuana products. Somewhat
surprising, people with higher education levels readily take marijuana compared to those with a
lower level of education. Further, studies show that men are more interested in cannabis
compared to women. The managers do not worry much about wealth distribution since their
products are affordable even to low income earners (Caucins, 2015).
•
Technological factors
Technology advances every day and continues to impact businesses significantly. Thus,
managers have to continually scan the technical environment to stay updated on any changes.
Furthermore, it is not an option for the managers, because they risk being kicked out of business
by their competitors. Hawaiian Highbiscuits has experienced high technological obsolesce
recently and this continues to be a big problem since it loses millions every financial year. For
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
11
this reason, the directors have resorted to employing an IT expert that will help the company
make informed technological decisions. The firm has also been on the forefront of creating
innovative technology platforms when compared to other firms in the industry.
•
Legal factors
There have been many legislative changes that have taken place in the country over the
decade. The business onset started seven years ago with the legalization of marijuana for certain
reasons, and in certain locations. However, there have been several product regulations mostly
affecting the chemical components of the products. Employment regulations require any
marijuana company to employ people over twenty-five years of age since they are considered
more mature. Also, many health and safety regulations continue to be formulated every day
(Baum, 2016).
•
Environmental factors
An environmental analysis shows that the business has a favorable location. The
geographical area of the firm allows it to quickly access its customers as well as get supplies
without difficulty. Though the firm highly depends on controlled greenhouse conditions, the
climate and weather are also conducive.
5. Develop both a SWOT analysis and needs analysis for your product / service. Each
analysis should examine three strengths, weaknesses, opportunities, and threats for your
company.
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
12
SWOT analysis
The company directors have adopted the use of SWOT analysis as a technique of
analyzing the firm's internal strengths and weaknesses and external opportunities and threats.
This analysis in turn has been helping the managers curve a sustainable niche for the company.
•
Strengths
This is an analysis of what the firm does better than everyone else in the industry. The
firm has an active research and development team that has enabled the company develops
products pioneering for the whole industry. Also, the company has a strong marketing
department that has allowed the company to create a lasting customer experience and increase
turnover as a result. The company has identified the human resource in the IT department as a
core strength meaning that it has been able to perform more than all other departments.
•
Weaknesses
Despite the firm being the industry leader, it still has many things to improve. The firm
has a weak finance department majorly depending on bank loans to finance even minor
operations which have seen the company incur significantly in repaying the debts. Secondly, the
firm identified its technology obsolescence as a weakness; the company spends up to $10,000.00
annually. The firm has also experienced high staff turnover which questions the ability of the
HR department.
•
Opportunities
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
13
A market survey has shown several opportunities that the company could utilize to
increase sales. For instance, many people prefer cakes compared to scones, the firm, as a result
is considering preparing cannabis-infused cakes. Also, the firm is to adopt, the new technology
that comprises systems that control the environment. The main benefit will be the production of
marijuana that is accurate to standards. The firm has identified marijuana consumption is
becoming more popular with celebrities. Consequently, the managers plan on contracting with a
local musician to be their brand ambassador.
•
Threats
The company is facing several obstacles that hinder the realization of its goals. The
primary challenge is the issue of government policies, which define the quality standards of the
products. At times, companies have to dig deep into their accounts to achieve the abrupt
changes. The company has also identified production of counterfeit products branded with the
company's name as a significant threat. The company has to deal with counterfeits by
continually changing the packaging and disseminating information to its customers. Lastly, the
company is at risk of experiencing cash flow problems mainly due to the increasing rate of bad
debts by its customers as well as the rise in loans and bank overdrafts.
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
14
References
Baum, D. (2016). Legalize it all. Harper’s magazine, 24.
Caulkins, J. P., Kilmer, B., Kleiman, M. A., MacCoun, R. J., Midgette, G., Oglesby, P., ... &
Reuter, P. H. (2015). Options and issues regarding marijuana legalization. Rand
Corporation.
Kotler, P., Cunningham, M. H., & Keller, K. L. (2008). A framework for marketing management.
Toronto: Pearson Prentice Hall.
MacCoun, R. J., & Mello, M. M. (2015). Half-baked—the retail promotion of marijuana
edibles. New England Journal of Medicine, 372(11), 989-991
Vara, V. (2016). The Art of Marketing Marijuana. The Atlantic.
Running head: WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
1
1. Write an introduction to your company. Describe your hypothetical company, its
location, and the product it makes or the service it provides, and introduce the contents of
your marketing plan.
Introduction
(INSERT A ONE PAGE DETAILED INTRODUCTION HERE)
(GENERIC INTRODUCTION IS ON THE NEXT PAGE)
Hawaiian Highbiscuits
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
2
Hawaiian Highbiscuits is a Canadian company that has been in existence for five years as
a marijuana grower, as well as manufacturer of cannabis infused products such as cookies scones
and brownies. The company integrates the best of both the technological and natural world to
produce the best quality cannabis products. The firm has capable teams in the various
departments to cater with plant research and development, production, extraction, and supply.
The firm’s marketing plan entails a one-year plan (short term) and a five-year plan (long term).
The plan covers the following metrics; tracking website visitors and downloads to enhance their
experience, increase new product adoption and retention rates, and expanding the market share.
The company’s vision is to establish the best cannabis across the global cannabis
community that comprises of passionate and daring people. The company is driven by the
virtues of quality and integrity in undertaking all activities. The mission of the company is to set
the best practices by becoming the industry leader; thus, change the perception of cannabis
positively and raise consumer experience. The values of the company include maintaining trust
among its customers as a measure of its success and generating an iconic portfolio of high
quality and enjoyable products while maintaining affordability (Vara, 2016).
The firm's short-term goals include; increasing new product adoption and retention rates,
and tracking website visitors and most common website purchases to capitalize on the product.
On the other hand, the company has long term goals which include; increasing the growth rate
compared to its competitors, expanding the market share as well as the profit margin, and
maintaining positive customer engagement. The company has undertaken an in-depth analysis
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
3
of the market, financial capability, and the situation at hand to draw an action plan that will see
them achieve both their short term and long-term goals.
2. Develop your company’s mission statement.
Hawaiian Highbiscuits’ mission is to be the industry leader in quality, affordability, and
accessibility to the world’s growing marijuana market; thereby, changing the perception of
cannabis to one of high potential, while we work jointly with industry partners to bang the gong
for safe and responsible consumption.
3. Decide the main goals that you would like to achieve within the next year (short term)
and the mains goals that you would like to achieve within the next five years (long term).
Determine the most appropriate ways to measure both short- and long-term goals.
Short term goals
(INSERT ONE PAGE DETAILED SHORT TERM GOALS HERE)
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
Long term goals
(INSERT ONE PAGE DETAILED LONG TERM GOALS HERE)
Website analytics
Website analytics is essential for business growth as it provides information on how
visitors behave when using the website. It gives actual reports on the age, gender, and location
of most visitors. It also helps to know the most popular content on one's website and the total
conversions. The directors can also get to know the most popular materials which enable them
to make informed business strategies. For this reason, the directors have set tracking website
downloads as one of their primary goals in the next three years citing the following importance:
•
Getting more knowledge on customers and enhancing their experience
4
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
5
Business decisions, whether big or small can hurt customers, thereby, creating a negative
image and decreased sales. Website analytics are critical for the managers when it comes to
making business decisions. The directors want to enhance user experience with every decision
that the company will take. The analysis will help them to know the geographical location, age,
and gender of their customers and their interests. For instance, young customers aged between
eighteen and twenty-five years would prefer to smoke marijuana as opposed to the older
generation, which would opt to consume the product in the form of scones. Also, the analytics
will help them gain knowledge of the technology (device, browsers and operating systems) that
most customers use to access their site. For instance, if the device analytics shows that most
customers use mobile to visit the company’s site, the developers can try to make the website
more mobile-friendlier. Research by Maccoun (2015) shows that interests vary across the
various age groups, this is important in customizing a website that will be popular among users
making them take more time in the site and ultimately buy.
•
Knowing and focusing on the best content
Website analytics will help the company to know which content gets the most visits, the
duration each customer spends and bounce rates for individual pagers. The information will help
the firm sort its site for better engagement. The IT department can add purchase links or call to
action links on the top of the pages of the firm to increase sales. Similarly, the site developers
can update their pages with the latest information or reconstruct the page design and structure to
make them more appealing. Moreover, the firm will know which content works and which does
not work and as a result, focus on what gets more visits to boost site engagement. For example,
the company can choose to focus on the health benefits of taking cannabis.
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
•
6
Search engine optimization (SEO)
The company ought to optimize on its search engine because it gives a reflection of the
business growth. Businesses with more organic traffic on their sites often have higher turnover
compared to businesses with lesser site visits. The website analytics will help the company’s
SEO in various ways; first, knowledge on visitor’s demographics and interests will help generate
customized content that will get more views. Besides, the company may gain more insights on
backlinks by tracking its referrals. The company can also connect its account with Google
search console which will enable them to search queries that send the most traffic. Moreover,
the company will benefit from actual data on total clicks impressions and average click-through
rate.
Increasing product adoption
Hawaiian Highbiscuits has recently sold over $50 million dollars of product to the 9
million active users who log in to their account every week. The directors understand the
importance of product adoption as a prerequisite for every significant metric, that is; customer
retention, user engagement and revenue generation. For this reason, the managers work hard to
popularize their ‘aha!’ movement which targets making the product a staple of the customer’s
routine rather than just being nice. The directors target weekly sales revenue of $100 million in
the next the six months. This goal highly depends on their product adoption and retention by
customers; consequently, the directors have laid down the following strategies.
•
Creating an unforgettable first user experience
The company seeks to enhance the first user experience as a means of increasing product
adoption by customers. The directors have suggested the use of welcome messages, tooltips and
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
7
in-app tutorials that will help generate a clear path to value. For many buyers, the product
importance may not be vivid until one gets a clear insight; for example, one has to inform
patients the health benefits that come from the products for them to purchase it.
•
Treating every new feature as a new product launch
The company's product has been evolving; the company has been learning parts of their
product that boosts engagement as well as elements that customers overlook. The company
frequently updates old features and releases new brand functionality using the information. This
move helps to increase customer adoption, especially with new users. The management has
decided to treat a new feature like a mini-product launch. This way, even veteran users of the
company's product become utterly inexperienced and intrigued with every release.
•
Supporting in-app experience with behavioral emails
The ‘aha' movement is the quest for habitual user experience; it aims at people using the
product consistently and automatically. For a social media management tool, the company wants
users to log in every time it shares a post on Facebook or LinkedIn. The company wants
customers to use their SEO tool every time they have queries regarding search performance. The
company is considering the use of email to leverage on mere exposure effect and achieve
repetition. The firm will be sending emails that will echo the advice in their app tutorials; this
way, it will increase the likelihood of the target user acting on it or trying new features of the
product. Also, emails can be used to relay other messages such as urging users to finish their
social media accounts.
•
Use of hyper-targeted onboarding
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
8
This approach will help Hawaiian Highbiscuits to fix its ‘weak spots’ and drive
engagement with the whole product regardless of how complicated the feature might be. The
firm will use segmentation because of the varying customer preferences.
•
Find, fix, and repeat
The firm’s goal of product adoption has been hindered in the past by specific acute
problems. For instance, some features have been too complicated for the customers to use. In
other cases, in-app navigation has been a problem for some customers. The company has
resorted to finding and sorting this problem. The company will use product analytics that will be
useful in; providing aggregated user data that provides insight into macro-level issues such as the
decline in customers' retention rates or drop in daily active users. Also, the analysis will help
shed light on micro-level problems such as features going unused. More importantly, the
company will focus on fixing the issues rather than just understanding the cause. The company
will use live chats, user sessions and surveys to collect data. Using the information, the company
will create a flywheel of continuous improvements. The process will be repetitive- collecting
data, feeding it into the flywheel and undertaking improvements.
Long term goals
•
Increasing the company’s market share
The company is considering innovation as a way of increasing its market share in the
long term. The company seeks to be pioneering in technology adoption especially in the growth
of marijuana in greenhouses. Also, the company will optimize technology when it comes to
customer relationship management (CRM). By investing heavily in CRM, the company will
protect its market share mainly by preventing a customer from migrating when competitors offer
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
9
new deals. Similarly, the approach can help retain customers, since satisfied customers
continuously speak of positive experience gained to their friends and relatives. Furthermore,
word of mouth is far better as it involves no marketing expenses to a company.
•
Increasing customer engagement
Hawaiian Highbiscuits seeks to enhance customer engagement within the next five years.
Customer engagement involves encouraging customers to share their experiences that the firm
creates for them. As a result, the firm will benefit brand growth and loyalty. The company has
set customer experience as the number one priority. The directors are keen on creating a support
team that is empowered and shares in the company's dream. For instance, giving customers
more call time as opposed to enforcing call time. Research conducted by marketing students of
Harvard University shows that 80 percent of customers will pay more for a product just because
of customer experience. The company also wants to humanize its brand which is natural
considering the firm's nature as a fun consumer brand. The directors will select one employee
who is passionate about the company's product. Consequently, they will grow the persona into a
leader and give them an opportunity to engage with consumers. Lastly, the company’s managers
focus on personalizing customer engagement mainly by use of a sophisticated algorithm that
generates product recommendation based on a customer's browsing history.
4. Develop an environmental analysis that includes competitive, economic, political, legal,
technological, and sociocultural forces.
Environmental analysis
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
10
Hawaiian Highbiscuits has undertaken an ecological study to identify all of its internal
and external elements that affect its overall performance. The managers know that the industry
is dynamic with new changes every day. Some factors are beyond their control however most
factors can be controlled. The directors used the PESTLE analysis model to analyze their
environment.
•
Political situation
The directors sought to know the country’s political situation; they also conducted a
detailed analysis of the global conditions. Currently, the government leadership is supportive
with most leaders embracing growth and sale of marijuana products but subject to some
refinements to remove some addictive substances. As a Nation, Canada (where the company is
headquartered) has voted to legalize the production, use, and distribution of both medical and
recreational cannabis. This bodes very well for the company’s future growth. Also, many states
in the US have legalized marijuana and will provide subsidies in the form of fertilizers for
marijuana growers thus the company may consider expanding to the United States. The
legislators are planning to introduce a motion that will see cannabis products be tax-free due to
the health benefits that people stand to gain. However, the government regulates the new
entrants to the industry by formulating stringent requirements. Nevertheless, the move might
work positively towards promoting the company's growth since it is already in existence.
•
Economic factors
The managers have conducted an in-depth analysis of the economic factors. The
managers expect a small decline of the economy in the next six months followed by a gradual
WEEK 3: ASSIGNMENT 1, PART A: MARKETING PLAN
11
rise of at least 2 percent annually. The country's inflation rate is 6 percent which the directors
consider as favorable, especially, to maximize exports. The bank's interest rate will drop but
subject to a bill that is yet to be passed. However, this move might make the banks stricter when
it comes to issuing of loans. The unemployment rate, especially among the youth, is expected to
decline which is a positive message for the company since most of its customers are young.
•
Social factors
Social factors vary from one region of the country to another; generally, people's attitudes
have been positive, which has impacted the business positively. The population has been openminded and easygoing with matters of accepting marijuana and marijuana products. Somewhat
surprising, people with higher education levels readily take marijuana compared to those with a
lower level of education. Further, studies show that men are more interested in cannabis
compared to women. The managers do not worry much about wealth distribution since their
products are affordable even to low income earners (Caucins, 2015).
•
Technological factors
Technology advances every day and continues to impact businesses significantly. Thus,
managers have to continually scan the technical environment to stay updated on any changes.
Furthermore, it is not an option for the managers, because they risk being kicked out of business
by their competitors. Hawaiian Highbiscuits has experienced high technological obsolesce
recently and this continues to be a big problem since it loses millions every financial year. For
this reason, the directors have resorted to employing an IT expert that will help the company
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make informed technological decisions. The firm has also been on the forefront of creating
innovative technology platforms when compared to other firms in the industry.
•
Legal factors
There have been many legislative changes that have taken place in the country over the
decade. The business onset started seven years ago with the legalization of marijuana for certain
reasons, and in certain locations. However, there have been several product regulations mostly
affecting the chemical components of the products. Employment regulations require any
marijuana company to employ people over twenty-five years of age since they are considered
more mature. Also, many health and safety regulations continue to be formulated every day
(Baum, 2016).
•
Environmental factors
An environmental analysis shows that the business has a favorable location. The
geographical area of the firm allows it to quickly access its customers as well as get supplies
without difficulty. Though the firm highly depends on controlled greenhouse conditions, the
climate and weather are also conducive.
5. Develop both a SWOT analysis and needs analysis for your product / service. Each
analysis should examine three strengths, weaknesses, opportunities, and threats for your
company.
SWOT analysis
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The company directors have adopted the use of SWOT analysis as a technique of
analyzing the firm's internal strengths and weaknesses and external opportunities and threats.
This analysis in turn has been helping the managers curve a sustainable niche for the company.
•
Strengths
This is an analysis of what the firm does better than everyone else in the industry. The
firm has an active research and development team that has enabled the company develops
products pioneering for the whole industry. Also, the company has a strong marketing
department that has allowed the company to create a lasting customer experience and increase
turnover as a result. The company has identified the human resource in the IT department as a
core strength meaning that it has been able to perform more than all other departments.
•
Weaknesses
Despite the firm being the industry leader, it still has many things to improve. The firm
has a weak finance department majorly depending on bank loans to finance even minor
operations which have seen the company incur significantly in repaying the debts. Secondly, the
firm identified its technology obsolescence as a weakness; the company spends up to $10,000.00
annually. The firm has also experienced high staff turnover which questions the ability of the
HR department.
•
Opportunities
A market survey has shown several opportunities that the company could utilize to
increase sales. For instance, many people prefer cakes compared to scones, the firm, as a result
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is considering preparing cannabis-infused cakes. Also, the firm is to adopt, the new technology
that comprises systems that control the environment. The main benefit will be the production of
marijuana that is accurate to standards. The firm has identified marijuana consumption is
becoming more popular with celebrities. Consequently, the managers plan on contracting with a
local musician to be their brand ambassador.
•
Threats
The company is facing several obstacles that hinder the realization of its goals. The
primary challenge is the issue of government policies, which define the quality standards of the
products. At times, companies have to dig deep into their accounts to achieve the abrupt
changes. The company has also identified production of counterfeit products branded with the
company's name as a significant threat. The company has to deal with counterfeits by
continually changing the packaging and disseminating information to its customers. Lastly, the
company is at risk of experiencing cash flow problems mainly due to the increasing rate of bad
debts by its customers as well as the rise in loans and bank overdrafts.
References
Baum, D. (2016). Legalize it all. Harper’s magazine, 24.
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Caulkins, J. P., Kilmer, B., Kleiman, M. A., MacCoun, R. J., Midgette, G., Oglesby, P., ... &
Reuter, P. H. (2015). Options and issues regarding marijuana legalization. Rand
Corporation.
Kotler, P., Cunningham, M. H., & Keller, K. L. (2008). A framework for marketing management.
Toronto: Pearson Prentice Hall.
MacCoun, R. J., & Mello, M. M. (2015). Half-baked—the retail promotion of marijuana
edibles. New England Journal of Medicine, 372(11), 989-991
Vara, V. (2016). The Art of Marketing Marijuana. The Atlantic.
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