Running Head: C212-Task One

C212-Task One

Patrick Gump

Western Governors University

Running Head: C212-Task One

In 2017, after losing a contract with a major manufacturer, United Hemp’s leadership

took a risk and decided to manufacture hemp-based paper and construction products. The paper

proved to be a hit in the cannabis industry, leading the company to add industry specific hemp-

made products to their portfolio.

Recently, United Hemp has begun to set its eyes on the global market. Fueled by a

cannabis legalization in Canada, a loosening of hemp restrictions in Europe and the US, and a

recent purchase of a production center, United Hemp feels prepared to take its brand to the next

level. In order to fuel this expansion, United Hemp is seeking to expand its production business

globally.

The purpose of this paper to propose a viable marketing strategy for United Hemp. This

been on manufacturing paper and construction products, this ultimately leads to a limited

portfolio of offerings. United Hemp would be best served by introducing two new products for

the global market, hemp-based fabric and hemp-based bioplastics.

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research methods were used. During the exploratory research phase, the marketing team traveled

to Canada to directly observe the commercial hemp market. The team met with six companies that

processes hemp into consumer products, each of which demonstrated profitability and rising

demand for affordable hemp fabric and bioplastics. Then, the marketing team ran series of focus

groups, discussing the hemp market with customers, retail businesses, and suppliers. These groups

reinforced the conclusions from the direct observations. Finally, the team ran a series of

experiments, comparing the effectiveness of several product offerings in business-to-business and

business-to-consumer markets. It was determined that supplying raw fabric and bioplastics to

suppliers will be the most likely to be profitable and effective.

United Hemp’s main competitor is American Hemp, which supplies raw textiles and raw

intimacy with customers in our target environment. By introducing bioplastics to the portfolio of

affordable product offerings, United Hemp can utilize their operational excellence to grow their

global market share.

When launching these products in Canada, there are two risks to be aware of. First, there

are risks of regulatory barriers with the Canadian Government. Hemp and marijuana come from

the same species of plant, with hemp being classified in Canada as having less than 0.3%

Running Head: C212-Task One

oils, Canadian hemp prices remain high. If United Hemp can keep shipping costs low enough,

they can drive demand for their products.

provides sales data and forecasting, allowing United Health to monitor and adjust for market

trends. This functionality will also be key to monitoring performance of product offerings as they

are introduced into new markets. Salesforce offers a mobile app, allowing sales teams to enter

and update information in real time. This will provide marketing teams real time information,

allowing them to adjust CRM strategies for each client. Finally, Salesforce offers Multi-Currency

support, allowing for seamless integration of foreign currencies.

Effective use of CRM will be vital for driving customer satisfaction. Ferrell and Harltine

(2014) noted that “Customer satisfaction is the key to customer retention. Fully satisfied

customers are more likely to become loyal customers, or even advocates for the firm and its

products. Satisfied customers are less likely to explore alternative suppliers and they are less

Running Head: C212-Task One

needs or to share feedback, increasing ability for the firm to respond appropriately. By utilizing

this information effectively, United Hemp can continuously keep its customers satisfied, driving

customer retention.

United Hemp must consider Canada’s laws and regulations surrounding industrial hemp and its

importation. If raw American Hemp does not meet Canada’s regulatory standards, United Hemp

may be forced to produce its products locally, or risk supply issues. Second, since both nations

are in the North American Free Trade Agreement, United Hemp must weigh the costs and

benefits of importing finished fabric and bioplastics from the United States against

manufacturing from inside Canada.

With these considerations in mind, United Hemp should consider using industrial

distributors to market its product to the Canadian market. In their book “Marketing”, Pride and

relatively low cost to a manufacturer and reduce a producer's financial burden by providing

customers with credit services. Also, because industrial distributors usually maintain close

relationships with their customers, they are aware of local needs and can pass on market

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· Supply Chain.

our products to businesses, it could disrupt demand for our products and negatively impact sales.

A4 . Pricing Strategy

United Hemp will be best served by employing a Competition based pricing strategy.

Since United Hemp sells relatively homogenous materials, they must consider the prices of the

products they are intending to replace as well as their own competitors. In business markets,

where price is a key consideration, United Hemp must be competitive to survive. For these

reasons, the following prices should be set for its new product offerings:

• Hemp Fabric: $15.01/yard

• Hemp Bioplastics: $0.30/pound

· Costs.

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The distributors noted that competitor hemp fabric averaged $15.20/yard. Bioplastics

averaged $0.33/lb or more. While most distributors were sensitive with competitors’ prices, the

lowest competitor’s price for fabric was reported to be $14.99/yard and $0.34 for bioplastics.

The proposed prices will be competitive in the market and will drive demand.

A5. Promotional Strategy.

United Hemp should continue using a Push Policy for its promotional strategy. United

Hemp’s global promotional strategy should be focused its sole target market, distributors and

wholesalers. For this reason, most of the promotional mix should be focused on Personal Selling

and Sales Promotion activities to attract and retain clients.

· Media Channels

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to be shared via social networks. This will drive traffic to the blog and will also drive the website

to the top of search listings, therefore benefiting SEO.

brand has multiple opportunities create awareness with distributors. The social media strategy

will focus on general awareness of the brand, while traditional mass media will specifically

target the market. If done effectively, United Hemp will present itself as a viable alternative and

an opportunity to drive profitability. This will drive interest, which will give the sales teams

more opportunities to secure deals.

· Sales Promotion.

Sales Promotions should focus on giving the sales teams tools to success. One effective

promotion activity is to offer a buying allowance for purchasing specified quantities of the firm’s

products. This will encourage distributors to carry United Hemp’s products and will drive market

penetration. Another activity would be to provide deal loaders, or specialized displays, for new

distributors. These displays will make it easier for distributors to promote the brand to its

Running Head: C212-Task One

By following the marketing strategy provided in this proposal, United Hemp can expect an

effective market penetration, competitive prices, customer retention, and enhanced growth. This

will set up United Hemp for long-term success.