Harvard Case - Back to the Roots
"Back to the Roots" Harvard business case study is written by Elizabeth A. Keenan, Leslie K. John. It deals with the challenges in the field of Marketing. The case study is 18 page(s) long and it was first published on : Jun 5, 2018
At Fern Fort University, we recommend that Back to the Roots implement a multi-pronged strategy to capitalize on the growing demand for sustainable and healthy food options. This strategy involves: * Expanding product lines: Introducing new, innovative products that leverage the company's expertise in urban farming and sustainable practices. * Strengthening brand positioning: Focusing on the emotional connection with consumers by highlighting the benefits of urban farming and the positive impact on the environment and community. * Optimizing distribution channels: Expanding into new markets through strategic partnerships and online platforms to reach a wider audience. * Investing in digital marketing: Utilizing social media, content marketing, and influencer collaborations to build brand awareness and drive sales.
2. Background
Back to the Roots is a social enterprise focused on bringing urban farming to the masses. They have successfully developed innovative products like mushroom kits and self-watering herb gardens, attracting a niche market of environmentally conscious consumers. However, the company faces challenges in scaling its operations and expanding its reach beyond its initial target market.The case study focuses on the company's founder, Nikhil Arora, who is grappling with the decision to prioritize growth and profitability or maintain the company's social mission. The case study highlights the tension between scaling the business and staying true to the company's core values.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Unique Value Proposition: Back to the Roots offers innovative products that promote sustainable living and connect consumers with nature.
- Strong Brand Identity: The company has a strong brand image associated with environmental consciousness and social responsibility.
- Passionate Team: Back to the Roots is driven by a passionate team committed to their mission.
- Early Market Entry: The company has established a strong foothold in the emerging urban farming market.
Weaknesses:
- Limited Distribution: Back to the Roots relies heavily on retail partnerships, limiting its reach and market penetration.
- High Production Costs: The company's production processes are labor-intensive, leading to higher production costs.
- Limited Marketing Budget: The company has a limited marketing budget, hindering its ability to reach a wider audience.
- Scaling Challenges: Back to the Roots faces challenges in scaling its operations to meet increasing demand.
Opportunities:
- Growing Demand for Sustainable Products: Consumers are increasingly seeking sustainable and healthy food options.
- Expanding into New Markets: Back to the Roots can expand into new markets, both domestically and internationally.
- Digital Marketing Opportunities: The company can leverage digital marketing channels to reach a wider audience and build brand awareness.
- Partnerships and Collaborations: Back to the Roots can partner with other businesses and organizations to expand its reach and market share.
Threats:
- Competition: The urban farming market is becoming increasingly competitive, with new entrants and established players vying for market share.
- Economic Downturn: An economic downturn could negatively impact consumer spending on non-essential products like urban farming kits.
- Supply Chain Disruptions: Disruptions in the supply chain could impact the company's production and distribution.
- Changing Consumer Preferences: Consumer preferences are constantly evolving, and Back to the Roots needs to adapt to stay relevant.
Competitive Analysis:
Back to the Roots faces competition from both established players in the gardening and home improvement industry and new entrants in the urban farming space. Key competitors include:
- Traditional gardening companies: Companies like Scotts Miracle-Gro and Miracle-Gro offer a wide range of gardening products, but lack the focus on sustainability and urban farming that Back to the Roots provides.
- Vertical farming companies: Companies like AeroFarms and Bowery Farming are developing innovative vertical farming technologies, but primarily focus on commercial production rather than consumer products.
- Other urban farming startups: Several startups are emerging in the urban farming space, offering similar products and services to Back to the Roots.
Market Segmentation:
Back to the Roots can target multiple market segments, including:
- Eco-conscious consumers: Consumers who are environmentally aware and willing to pay a premium for sustainable products.
- Urban dwellers: Consumers living in urban areas who lack access to traditional gardening spaces.
- Health-conscious consumers: Consumers who prioritize healthy eating and are interested in growing their own food.
- Families with children: Families who want to teach their children about sustainability and healthy eating.
Brand Positioning:
Back to the Roots should position itself as a leader in the sustainable urban farming movement. The company should emphasize its commitment to environmental responsibility, community engagement, and empowering consumers to grow their own food.
4. Recommendations
1. Expand Product Lines:
- Develop new product categories: Back to the Roots can expand into new product categories that leverage its expertise in urban farming, such as indoor hydroponic systems, edible plant starter kits, and vertical gardening solutions.
- Focus on innovation: The company should invest in research and development to create innovative products that meet the evolving needs of consumers.
- Offer product bundles: Back to the Roots can create product bundles that cater to specific needs and interests, such as a 'starter kit' for new urban farmers or a 'family gardening pack' for families with children.
2. Strengthen Brand Positioning:
- Emphasize emotional connection: Back to the Roots should focus on the emotional connection with consumers by highlighting the benefits of urban farming beyond just food production. This includes promoting the sense of community, connection with nature, and personal satisfaction that comes with growing your own food.
- Tell compelling stories: The company should tell compelling stories about its mission, its impact on the community, and the stories of its customers.
- Leverage social media: Back to the Roots can utilize social media platforms to share its story, engage with customers, and build a community around urban farming.
3. Optimize Distribution Channels:
- Expand online presence: Back to the Roots should expand its online presence through its own website, e-commerce platforms, and online marketplaces.
- Strategic partnerships: The company should seek strategic partnerships with retailers, restaurants, and other businesses that align with its mission.
- Direct-to-consumer sales: Back to the Roots can explore direct-to-consumer sales through subscription boxes, pop-up shops, and farmers' markets.
4. Invest in Digital Marketing:
- Content marketing: Back to the Roots can create valuable content, such as blog posts, videos, and infographics, that educates consumers about urban farming and its benefits.
- Social media marketing: The company should leverage social media platforms to build brand awareness, engage with customers, and drive sales.
- Influencer marketing: Back to the Roots can partner with relevant influencers to promote its products and reach a wider audience.
- Search engine optimization (SEO): The company should optimize its website and content for search engines to improve organic traffic and visibility.
- Paid advertising: Back to the Roots can utilize paid advertising platforms like Google Ads and Facebook Ads to reach specific target audiences.
5. Basis of Recommendations
These recommendations are based on a comprehensive analysis of the company's strengths, weaknesses, opportunities, and threats. They are also aligned with the company's core values and mission to promote sustainable living and empower consumers to grow their own food. The recommendations are designed to address the company's challenges in scaling its operations, expanding its reach, and building a stronger brand.
Quantitative Measures:
- Increased sales: The recommendations are expected to lead to increased sales by expanding product lines, strengthening brand positioning, and optimizing distribution channels.
- Improved brand awareness: The digital marketing strategies are expected to improve brand awareness and reach a wider audience.
- Enhanced customer engagement: The focus on storytelling and community building is expected to enhance customer engagement and loyalty.
Assumptions:
- Continued growth of the urban farming market: The recommendations are based on the assumption that the urban farming market will continue to grow in the coming years.
- Consumer willingness to pay a premium for sustainable products: The recommendations assume that consumers are willing to pay a premium for products that are sustainable and environmentally friendly.
- Effective implementation of the recommendations: The success of the recommendations depends on their effective implementation and the company's ability to adapt to changing market conditions.
6. Conclusion
Back to the Roots has the potential to become a leading player in the sustainable urban farming movement. By expanding its product lines, strengthening its brand positioning, optimizing its distribution channels, and investing in digital marketing, the company can capitalize on the growing demand for sustainable and healthy food options. The company's commitment to its mission and its ability to adapt to changing market conditions will be key to its success.
7. Discussion
Alternatives:
- Focus solely on profitability: Back to the Roots could choose to prioritize profitability over its social mission, potentially leading to lower-cost products and a more aggressive marketing strategy. However, this approach could alienate its core customer base and damage its brand image.
- Maintain the status quo: Back to the Roots could choose to maintain its current business model and focus on its existing niche market. However, this approach would limit its growth potential and make it more vulnerable to competition.
Risks:
- Competition: The urban farming market is becoming increasingly competitive, and Back to the Roots may face challenges in competing with established players and new entrants.
- Economic downturn: An economic downturn could negatively impact consumer spending on non-essential products like urban farming kits.
- Changing consumer preferences: Consumer preferences are constantly evolving, and Back to the Roots needs to adapt to stay relevant.
Key Assumptions:
- Continued growth of the urban farming market: The recommendations are based on the assumption that the urban farming market will continue to grow in the coming years.
- Consumer willingness to pay a premium for sustainable products: The recommendations assume that consumers are willing to pay a premium for products that are sustainable and environmentally friendly.
- Effective implementation of the recommendations: The success of the recommendations depends on their effective implementation and the company's ability to adapt to changing market conditions.
8. Next Steps
- Develop a detailed marketing plan: This plan should outline the company's target markets, marketing objectives, strategies, tactics, and budget.
- Conduct market research: Back to the Roots should conduct market research to better understand consumer preferences and identify potential new product categories.
- Build relationships with key partners: The company should build relationships with retailers, restaurants, and other businesses that align with its mission.
- Invest in technology: Back to the Roots should invest in technology to improve its production processes, distribution channels, and customer relationship management.
- Monitor progress and adjust strategies: The company should regularly monitor the progress of its initiatives and adjust its strategies as needed.
By taking these steps, Back to the Roots can position itself for continued growth and success in the sustainable urban farming market.
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Case Description
Back to the Roots (BTTR) is a start-up with a social mission to "undo food"-to reconnect people to where their food comes from. In late 2017, Back to the Roots cofounders Nikhil Arora and Alex Velez were contemplating their next move. The company had an eclectic portfolio of products, including ready-to-grow products, which included gardens in a can, and ready-to-eat products, which included cereals, and was being courted by two major players in each category. With an award-winning cereal-based snack bar in their hands, the duo was debating whether they should delve further into the ready-to-eat category. But it was a competitive space. They wondered whether they were ready to launch yet another new product and, if so, what this move would mean for their ready-to-grow product line. Which path would enable them to best achieve their growth goals? This case provides a vehicle to teach a variety of marketing topics, including mission-driven marketing and branding, new product introduction, and product line extensions. First and foremost, the case allows students to contrast traditional marketing strategy with novel approaches that capitalize on recent shifts in consumer culture. In so doing, the case allows students to identify some of the risks and rewards of such a strategy. The case also prompts students to consider the benefits and risks of extending product lines, the strategic roles of new product introduction, and the importance of defining a firm's core business. The case can be used with undergraduates, MBA students, and executives. It can be used in survey marketing courses, as well as in more specialized courses, including marketing management, brand management, and entrepreneurial marketing.
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