Aeroframs
Aerofarms consulting presentation in January 2020 addresses the lack of consumer awareness and high CO2 footprint in vertical farming. Recommendations include educating consumers, reducing CO2 footprint, and improving production efficiency. The presentation covers situation analysis, strategic alternatives, implementation, and financials. It also compares traditional and vertical farming, highlighting the advantages of vertical farming. Strengths, weaknesses, and target consumer groups are outlined for improvement.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
hhu. Aeroframs Thriving in Faming 4.0 Presented to: Management Board of Aerofarms Presented by HHU Consulting: Laura Schaefer Johannes Klein-Peters Dario Foese Sven Wauschkuhn January 2020
hhu. Problem Statement No consumer awareness for vertical faming High CO2-footprint Capital intensive business model What to tackle? January 2020 HHU Consulting 2
hhu. Recommendation No consumer awareness for vertical faming High CO2-footprint Capital intensive business model What to tackle? Educate the consumers about the potential and advantages of farming 4.0 Reduce footprint by microgrids and more efficient technology Reduce costs by improving the production efficiency How to solve? January 2020 HHU Consulting 3
hhu. Agenda 01 Situation Analysis Subtitle 02 Strategic Alternatives Subtitle 03 Implementation Subtitle 04 Financials Subtitle January 2020 HHU Consulting 4
hhu. Situation Analysis January 2020 HHU Consulting 5
hhu. Differences between traditional and vertical farming Your business The traditional farming World s largest vertical farming company (Farming 4.0) Urban areas Nutrient-rich water and LED Aeroponics Soil and sunlight Advantages: Less carbon emissions More product offers like high- calorie grains Advantages: 95% less water No pesticides Reduced transportation costs Shortened product-to market cycle January 2020 HHU Consulting 6
hhu. What are we here for? Strengths Weaknesses Innovative business model that solves a global need Strong partnerships in IT (DELL) Intellectual Property (trade secrets, patents) Capital intensive business model High energy consumption Lack of talent Need to increase production and product portfolio Consumers are not attracted to your product January 2020 HHU Consulting 7
hhu. Get to know your target group The elderly couple Grocery shopping in supermarkets Traditional, don t like changes Peter and Olivia Grocery shopping online with delivery Interested in new things Healthy and sustainable lifestyle The hipsters Liza and Tom The LOHAS Seeking for sustainable options for the family (weekly grocery shopping) Willingness to pay more Sarah Seeking the easiest and cheapest option Daily grocery shopping The lonesome Pierre January 2020 HHU Consulting 8
hhu. Key issues to convince consumers and recruit the right talent to contribute to solving the global food problem to satisfy the investors People Planet Profit January 2020 HHU Consulting 9
hhu. Strategic Alternatives January 2020 HHU Consulting 10
hhu. Three possible ways forward technology new The Diversification existing The global expansion The stabilization existing new markets January 2020 HHU Consulting 11
hhu. 1. The global expansion Cons Pro Markets - Seek growth - Expansion in Europe & Asia Technology - Focus & develop core technology Aeroponic January 2020 HHU Consulting 12
hhu. 2. The diversification Cons Pro Markets - - Expand to rural areas Expand in other regions (Europe & Asia) Technology - Engage in new partnerships for developing new systems Aeroponic Hydroponic Aquaponic January 2020 HHU Consulting 13
hhu. 3. The stabilization Cons Pro Markets - - - Stabilize current markets Bring customers to acknowledge product Clear customer focus on existing markets Technology - Focus & develop core technology Aeroponic January 2020 HHU Consulting 14
hhu. Decision matrix recommends to stabilize your business before expanding Investment & fix cost Market growth Customer focus risk 1. The global expansion 2. The diversification 3. The stabilization January 2020 HHU Consulting 15
hhu. Decision matrix recommends to stabilize your business before expanding Investment & fix cost Market growth Customer focus risk 1. The global expansion 2. The diversification 3. The stabilization January 2020 HHU Consulting 16
hhu. Decision matrix recommends to stabilize your business before expanding Investment & fix cost Market growth Customer focus risk 1. The global expansion 2. The diversification 3. The stabilization January 2020 HHU Consulting 17
hhu. Implementation January 2020 HHU Consulting 18
hhu. The stabilization satisfies your key issues People The stabilization for the future Planet Profit January 2020 HHU Consulting 19
hhu. The stabilization satisfies your key issues People The stabilization for the future Planet Profit January 2020 HHU Consulting 20
hhu. Get to know your target group The elderly couple Grocery shopping in supermarkets Traditional, don t like changes Peter and Olivia Grocery shopping online with delivery Interested in new things Healthy and sustainable lifestyle The Hipsters Liza and Tom The sustainable Seeking for sustainable options for the family (weekly grocery shopping) Willingness to pay more Sarah Seeking the easiest and cheapest option Daily grocery shopping The lonesome Pierre January 2020 HHU Consulting 21
hhu. Tailor your products and the distribution to your core customers Grocery shopping online with delivery Interested in new things Healthy and sustainable lifestyle The Hipsters Liza and Tom The sustainable Seeking for sustainable options for the family (weekly grocery shopping) Willingness to pay more Sarah Use different channels to attract Sarah, Liza and Tom January 2020 HHU Consulting 22
hhu. Expand your channels to attract your core customers Local Supermarkets Already existing Nearby Convenient Cooking shows How to use your products for delicious meals Street Food Markets Local Hip Online Shops Short dilivery Convenient Attractive Netflix Documentation Awareness about your production sites Certification Influencer, Youtuber Star cooks (Marcus Samuelson January 2020 HHU Consulting 23
hhu. Recruit new employees and keep them by attractive programs Recruitment Keep your workforce Introduce cooperation with universities that are specialized in vertical farming Internship programs Incentive programs LinkedIn Crowdsourcing Flexible work times Remote working Home Office Hire well, train better Create a employee value proposition (EVP) The real Fridays for Future happen at Aerofarms January 2020 HHU Consulting 24
hhu. The stabilization satisfies your key issues People The stabilization for the future Profit Planet January 2020 HHU Consulting 25
hhu. Microgrids will be a future solution for an increasing energy demand Reduce footprint Ensure electricity security More efficient No long distance distribution LED Technology will be more efficient in future January 2020 HHU Consulting 26
hhu. Establish new production facilities to expand and test new products USA Rest of the world 8 more facilities 2 on new products (protein) 6 conventional 3 in China as experiments for future expansion Get to know the Asian market 1 in Canada Quite similar to the US Locations close to sunny states Growth potential cities Close to universities for recruitment January 2020 HHU Consulting 27
hhu. The stabilization satisfies your key issues Peopl e The stabilization for the future Plan et Profit January 2020 HHU Consulting 28
hhu. Use VC to finance the stabilizing strategy Profits, environmental and social impact Aerofarms DBL Partners Funding and network January 2020 HHU Consulting 29
hhu. Financials January 2020 HHU Consulting 30
hhu. Timetable and costs 2020 2021 2022 2023 2024 Costs (mil USD) Customers New channels Promotions Employees Cooperations EVP and marketing Others Production facilites 25 15 10 15 20 80 165 2 4 3 2 1 SUM 40 Mil USD financed by Series E funding and 125 Mil USD by Series F January 2020 HHU Consulting 31
hhu. Revenue with a CAGR of 35% Revenue (Mil USD) 171 180 160 140 120 120 Assumptions 88 100 Aeroponics market increases by 25% p.a Your market share increases from 18% to 25% 70 80 50 60 40 20 0 2019 2020 2021 2022 2023 January 2020 HHU Consulting 32
hhu. Risks and contingencies Risks Impact Customers do not accept your products New legal regulations III. Asian market becomes increasingly important I. III. II. I. Mitigation II. I. Increase market research and marketing activities Increase legal budget III. Expand earlier to the Asian market II. Likelihood January 2020 HHU Consulting 33
hhu. Wrap-Up People Planet Profit January 2020 HHU Consulting 34
