Aerofarms Sustainability Strategy Analysis
Aerofarms faces challenges related to branding, talent acquisition, and customer perception. The company aims to grow sustainably by expanding globally and providing healthy food worldwide. Market and internal analyses reveal strengths, weaknesses, opportunities, and threats, prompting consideration of alternatives such as revenue diversification and regional growth strategies. The ultimate recommendation is to focus on global expansion.
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Presentation Transcript
AEROFARMS FIA CONSULTING AMANDA, HARUKA, MAURICIO AND RODRIGO
KEY ISSUE How do we grow sustainably?
KEY ISSUE Lack of branding Talent Issue Customer Perception
AGENDA Recommendation Market Analysis Strategy Risk + Mitigation Implementation Plan Finance Conclusion
RECOMMENDATION To expand globally to have healthy food for everybody s table in the world.
Internal Analysis STRENGTH WEAKNESS Environment o Climate change Technology o Patents Quality and nutrition Convenience o Transportation Lack of Branding Talent Acquisition Carbon Emission perception Lack of calorie and proteins
External Analysis THREATS OPPORTUNITY Regulation + Legislation Trade War Government subsidies Urbanization o Population o Food Crisis Consciousness of sustainability o Vegan, Vegetarian Global Warming o Transportation
Alternatives Revenue Risk Customer Perception M&A in Unites States and focus on North America Market Grow inside the United States Grow globally
Alternatives Revenue Risk Customer Perception M&A in Unites States and focus on North America Market Grow inside the United States Grow globally
Alternatives Revenue Risk Customer Perception M&A in Unites States and focus on North America Market Grow inside the United States Grow globally
STRATEGY Expand global presence + Customers + Products
STRATEGY + CUSTOMERS + PRODUCTS 1. + COUNTRIES USA, China, Europe and INDIA New urban centers -> + people Vegetarian and vegans in India and Europe Food crisis in China
STRATEGY + CUSTOMERS 2. + B2B Food industry -> Green companies (NotCo, Beyond burguer) Restaurants, hospitals and hotels -> new demands Faster Cheaper Healthier Less transportation cost Availability
STRATEGY + PRODUCTS 3. R&D new developments with Universities and Institutes New crops -> More nutrients Other source of proteins -> Insects i. e.: The good Food Institute + Nutrients
MARKETING + CUSTOMERS 1.Association with e commerce and Social Media Millennials and Z gen CSR: 3% of bills to NGO 2.Health and Yummy kit distribution 3.Farm tour
MARKETING + CUSTOMERS B2B: Expo Sales representative
Risk 1 Consumers don t know what is vertical farming. Consumers don t know what is vertical farming. Probability: High Risk: Moderate Mitigation: Communicate with our customers by 1. Using social media 2. Sales representative in supermarket 3. Vertical Farm Tour
Risk 2 Products are not reaching our final customers. Products are not reaching our final customers. Probability: Moderate Risk: Moderate Mitigation: Increase 1. B2B portfolio 2. Number of countries to be present
Risk 3 Limited profile of products to sustain our growth globally. Limited profile of products to sustain our growth globally. Probability: High Risk: High Mitigation: Work closely with partnered universities to develop new products. (i.e using insects)
5 YEAR PLAN Presence World Wide Consumer Perception via Marketing Plan Increase the number of clients who purchase our goods via Partnerships
YEAR 1 The start Final consumer Marketing Plan Healthy and Yummy Kit Invest in improving our relationship with Clients (B2B) Expo Sales Team Expand partnership with hotels, restaurants, flight company
YEAR 2 The Road Open Aerofarm in India Partner with Amazon in India Hire Marketing Agency in India Hire Sales Team in India Invest in opening India and China new buildings Keep investing in Marketing Investment in R&D
YEAR 3 The Road Open Aerofarm in India and China Maintain partnership with Amazon Invest in opening new buildings in India, Europe and China Keep investing in Marketing Investment in R&D
YEAR 4 New plan Open AEROFARM in Europe, India and China Partner with Amazon in Europe Hire Marketing Agency in Europe Hire Sales Team in Europe Revisit the Strategy and start a long-term plan Keep investing in Marketing Investment in R&D
YEAR 5 New Plan Launch the new AEROFARM Protein Hamburger made by insects Analyze Marketing Strategy
Good Financial scenario - Revenue increase 7x more in year 7 - Net Margin of 12% by year 7
Assumptions based on the scenario - Funds E raising 100 MM USD in 2019 - Profit achieved by end of 2019 considering revenue zero for 2019 - Better Energy Efficiency reducing costs - Real Estate effort to identify cheaper buildings in neighbor areas
We know we need to make some investments Investments MM USD 34 34 34 29 29 24 19 0 1 2 3 4 5 6 7 Year
To increase revenues with our expansion and MKT plan Revenue (MM USD) 366 287 213 180 127 70 56 50 0 1 2 3 4 5 6 7 Year
To increase revenues with our expansion and Marketing plan Revenue (MM USD) 366 287 213 180 127 70 56 50 0 1 2 3 4 5 6 7 Year
What will impact our EBITDA at the beginning EBITDA MMUSD 44 25 7 4 0 1 2 3 4 5 6 7 (9) (18) (18) Year
But will worth in year 7, with an amazing market base acquired EBITDA MMUSD 44 25 7 4 0 1 2 3 4 5 6 7 (9) (18) (18) Year
KEY ISSUE 7 Time Reven ue Lack of branding Talent Issue Customer Perception
