How Environmental Forces

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How Environmental Forces (Social, Economic, Technological, Competitive, Political Factors) influence the Marketing done by Lufa Farms in Canada

How Environmental Forces (Social, Economic, Technological, Competitive, Political Factors) influence the Marketing done by Lufa Farms in Canada

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  • 1. How Environmental Forces (Social, Economic, Technological, Compe titive, Political Factors) influence the Marketing done by Lufa Farms in Canada
  • 2. Sameer Mathur BuddingMarkets.com Ph.D. and M.S. (Marketing) 2003 – 2009 Indian Institute of Management, Lucknow Marketing Professor 2013 – Marketing Professor 2009 – 2013
  • 3. What is Lufa Farms? • Rooftop greenhouses – Produce • Founder: Mohamed Hage (P) – Co-founder: Kurt Lynn (V-P) • Montreal • Founded in 2011
  • 4. What is Lufa Farms? • Greenhouse prototype – 31,000 ft2 – Ahuntsic-Cartierville • Reached breakeven point after 1st harvest • Vision: “A city full of rooftop farms”
  • 5. What is Lufa Farms?
  • 6. “This type of agriculture, this is agriculture for geeks…” –Kurt Lynn
  • 7. The Question & Objective • What external environmental trends can affect the success of the Lufa Farms as it expands across Canada and USA? – Which trend is most important? • Recommend a target market for Lufa Farms. – How should the marketing mix be altered in mind of this new target market?
  • 8. External Environmental Trends Social Economic Technological Competitive Regulatory
  • 9. Social Emerging Trends: • Health consciousness • Eco-friendly lifestyles • “You are what you eat” • Time convenience
  • 10. Economic • Expensive to produce – Increase in cost of natural gas – Equipment & technologies • US organic food sales – In 2010: $11.9 billion
  • 11. Technological • Infrastructure – Greenhouse engineering • Resources – Water circulation systems – Pesticide & herbicide alternatives • Expensive technology with skilled labor
  • 12. Competitive • Competition from – Local food markets – Grocery stores • Major threats: – Verticrop in Vancouver – FreshDirect in New York (convenience)
  • 13. Regulatory • Financière Agricole (Montreal) • Doesn‟t recognize Lufa as a „real‟ agricultural producer • Insurance & financing restrictions
  • 14. Most Important Trend • Capitalize on interest in living healthier, more eco-friendly lives, which involves consuming… – Fresh food – Organic food – Locally grown food Social
  • 15. Recommended Target Market Segments Geographic Demographic Psychographic Behavioral
  • 16. Geographic • Canada • USA – West Coast – North East • Large concentration of buildings – Cities • Densely populated
  • 17. Demographic • “Settled down” v.s. “on the road” • Families • Young singles • Middle to upper class • Baby boomers & generation X – Born between 1965 & 1990
  • 18. Psychographic • Health-conscious • Environmentally aware • „Status conscious‟ – It‟s „the trend‟ • Value quality
  • 19. Behavioral • Local production • Environmentally-friendly production • Not price-sensitive • Loyal • Frequent consumption of produce • Value the highest quality produce
  • 20. Current Marketing Mix Product Price Place Promotion
  • 21. Product • Fresh, organic produce • Free of pesticides & herbicides • Grown on local rooftop year-round • Weekly basket delivery
  • 22. Place = Drop-off location = Greenhouse
  • 23. Price * Payment every 12 weeks
  • 24. Promotion • Holiday Gift Certificate • Business Program – Discount for employees – Group drop-off locations • Featured in magazines & newspapers – New York Times – Maclean‟s
  • 25. Modified Marketing Mix Product Place No change • Local farmers markets • Place • New York City • Toronto • Chicago • Vancouver • Los Angeles • San Francisco Price Promotion No change • Get your 12th basket free • Seasonal baskets
  • 26. Place City Country Buildings Population New York City United States 6,504 8,310,212 Toronto Canada 2,506 2,615,060 Chicago United States 1,125 2,836,658 Vancouver Canada 631 578,041 Los Angeles United States 504 4,234,340 Montreal Canada 475 1,620,693 San Francisco United States 417 799,185 Houston United States 360 2,208,180 Ottawa Canada 351 812,129 Philadelphia United States 330 1,449,634 Washington United States 330 588,292 Miami United States 295 424,662 Calgary Canada 260 988,193 Dallas United States 246 1,266,372 Edmonton Canada 244 730,372 Boston United States 237 608,352 Atlanta United States 231 420,003 !
  • 27. Conclusion • Has flourished in Montreal – “If you can make it [in Montreal], then any place south of there just gets better and better.” –City Farmer News • $11.9 billion in organic food sales in USA in 2010 • Rooftop space “Conquer Our Roofs!”
  • 28. “I can imagine a future in which the cities are exquisitely adapted to climate, the surrounding landscape and wildlife, and the natural rhythms of the seasons, in which every building captures all of the sunlight and water falling from the heavens, where food is grown on rooftops…” –David Suzuki
  • 29. Over 600,000 views from more than 100 countries http://www.BuddingMarkets.com/ Sameer Mathur BuddingMarkets .com http://www.facebook.com/BuddingMarkets/