Root & Revive Case Study

1 Root & Revive Case Study Individual Case Study Project BADM 4100 (01) Aziz Memon By Franklyn.M (1161758)

2 Executive Summary Key Problems and Issues with R&R: ● Balancing Teaching and Business : Michelle Brown's dual role as a full-time primary school teacher and entrepreneur would be challenging. The demands of both roles may limit her time and energy for business growth and ideas. ● Competitive Landscape : R&R faces competition from local producers, such as Hear Me Raw, which offer drastically similar products, as well as in-house brands such as loblaws who can simply replicate the type of item at a larger scale, for a cheaper price . The need to stand out whilst maintaining profitability is a concern. ● Distribution Strategy : Decisions related to distribution channels, such as expanding to retailers like Farm Boy, require careful consideration. Lower pricing and the use of preservatives for longer shelf life can impact the business model. ● Marketing and Online Presence : R&R has not invested significantly in social media advertising. The need for expert help in digital marketing, while promising, comes with a requirement to trust recommendations from specialists. This analysis emphasizes the necessity of a carefully considered expansion strategy for R&R. A major problem is finding a way to balance the responsibilities of a teaching profession and an expanding business. Distribution, pricing, and marketing choices must take the company's long-term goals into account while also taking the competitive environment into consideration; For R&R to expand and succeed sustainably, specific evaluation and strategic planning are both mandatory. Key Facts Product Focus: R&R specializes in making vegan, naturally sweetened, gluten-free protein balls that are sold to those who are health conscious and have dietary intolerances. Background of the Founder: Michelle Brown, who is the founder and a full-time teacher, has a sizable community following. She is the main manufacturer of R&R goods. Target Audience: R&R's end consumer primarily consists of active individuals aged eighteen to thirty-five. Low Capital Investment: R&R requires no debt funding and little to no capital investment to operate effectively. Three flavors are included in the standard product portfolio, and R&R also offers seasonal flavors and co-branded labels. Community Support: Michelle's contacts from her teaching career, teaching yoga, and long-term residence have helped R&R receive a lot of support from the local community.

4 and satiating snack alternative. For R&R to expand and be successful, it is essential to comprehend and successfully serve this target demographic. Business Analysis PEST Political (P): ● Regulations: The health and wellness food industry is subject to various regulations regarding food safety and labeling, which affect R&R's production and marketing as a whole . ● Government Policies: Government initiatives promoting healthy food choices, such as Canada's "healthy choice" strategy, can create and support growth opportunities for businesses like R&R. Implications: R&R must ensure strict adherence to food safety regulations and stay informed about evolving government policies that could impact its product claims and marketing. Economic (E): ● Economic Trends: Economic fluctuations can affect consumer spending on premium, health-focused food products. ● Income Levels: As an upmarket product, R&R may be sensitive to changes in disposable income among its target demographic. ● Pricing and Cost Pressures: R&R's cost structure and pricing strategy may need adjustment in response to economic conditions. Implications: R&R should maintain flexibility in pricing and production to adapt to economic shifts and consider offering value-added products to address different income segments. Social (S): ● Health and Wellness Trends: The growing trend toward healthier lifestyles and dietary choices is driving demand for health-focused snacks like R&R's products. ● Food Allergies and Intolerances: Increased awareness of food intolerances supports the growth of gluten-free and vegan food products. ● Changing Consumer Preferences: As consumers seek nutritious, convenient snacks, R&R's product positioning aligns well with these preferences. Implications: R&R should continue to position itself as a solution for health-conscious consumers and emphasize its gluten-free and vegan attributes. Technological (T):

5 ● E-commerce Growth: The growth of e-commerce provides opportunities for R&R to expand its online sales rather than simply using social media . ● Data Analytics: Leveraging data analytics for targeted marketing can help R&R reach a wider audience. ● Production Technology: Advancements in production technology may enable R&R to streamline operations and reduce costs. Implications: R&R should invest in improving its online presence and e-commerce capabilities. Exploring data-driven marketing strategies and adopting efficient production technology can enhance competitiveness. Overall, the health and wellness food industry presents favorable conditions for R&R, considering the alignment with health trends and changing consumer preferences. To thrive, R&R should stay attuned to regulatory and economic shifts, leverage technology, market towards trends and adapt its strategies consistently to remain competitive. Five Forces Analysis Competitive Rivalry (High) Bargaining Power of Suppliers (Low) Bargaining Power of buyers (Avg) Threat Of substitutes (Low) Threat of New entrants (Low) -Number of Competitors: R&R faces competition from local producers and health-focused snack businesses, including Hear Me Raw, which offers similar products. - R&R emphasizes gluten-free, vegan, and naturally sweetened attributes as differentiators, but pricing and packaging can be similar to competitors. -Competitive Pressure: Intense competition can lead -Local Ingredient Sourcing: R&R sources sustainable packaging and labeling locally, which may limit the number of suppliers. - Low Switching Costs: The nature of the business allows for relatively low switching costs among suppliers. -Supplier Importance: Suppliers of basic ingredients like -Target Audience: R&R's target audience consists of health-conscious individuals aged eighteen to thirty-five with specific dietary preferences. -Buyer Volume: Buyers are individual consumers, local retailers, and potential retail partners like Farm Boy. -Price -Unique Products: R&R's gluten-free, vegan protein balls offer a unique combination that reduces the availability of direct substitutes. -Health Focus: The growing trend toward health and wellness limits the appeal of traditional, less healthy snacks -Barriers to Entry: Established customer loyalty, community support, and the need for specialized production facilities present barriers to new entrants. -Regulations: The food industry is subject to regulations regarding

7 Factors R&R Hear Me Raw Competitor A Possible Competitor B Product Differentiation Unique Unique Moderate Moderate Target Audience Health-focused Health-focused General Health-focused Local Sourcing Yes No No No Community Support Strong Moderate Moderate Moderate Dietary Options (Gluten-free) Yes Yes Yes Yes Dietary Options (Vegan) Yes Yes Yes Yes Pricing Competitive Competitive Competitive Premium Packaging Sustainable Thin Plastic Regular Regular Flavor Variety Moderate Wide Range Limited Wide Range Online Presence Yes Yes Yes Limited Marketing Efforts Minimal Minimal Minimal Extensive Based on the analysis the main Key problems in the company are:

8 Founder being overwhelmed : The founder, Michelle Brown, struggles to balance the obligations of running R&R with her full-time teaching career. Her capacity to concentrate on business development, marketing, and strategic planning may be hampered by this circumstance. Intense Competitive Rivalry: R&R faces fierce competition from both local and regional businesses in its industry. Pricing pressures and higher marketing costs could result from this rivalry, which would put R&R's market position and profitability at risk. Pricing and Cost Pressures: R&R may need to modify its pricing strategy and cost structure in order to be competitive as a result of economic changes and competitive challenges. It takes skill to balance maintaining quality while controlling expenditures. Need for Online Expansion: R&R is aware of the potential for increased online sales, but it also needs to make investments to strengthen its web presence and e-commerce capabilities. This takes time and money, especially for a founder who is already overburdened. Addressing these issues is crucial for R&R's continued growth and success. Solutions may involve strategic hiring, more efficient time management, competitive pricing strategies, and focused investments in online sales and marketing. Alternative Plan Alternative: Hire a Part-Time Marketing Specialist Rationale: Hiring a part-time marketing specialist is a strategic move that can help R&R address several challenges simultaneously: Marketing and Growth: The part-time marketing specialist can take over the marketing efforts for R&R, including online marketing, social media management, and advertising campaigns. This would help boost the brand's visibility and reach a wider audience, which is essential for growth.

10 1 Case study Root & Revive: to grow or go By Ivey Publishing 2 Walls, P. (2023, January 18). 35 Pros & Cons of starting a health and Wellness Products (2023) - starter story . Starter Story RSS. https://www.starterstory.com/ideas/health-and-wellness-products/pros-and-cons