I’m doing a group paper for my Entrepreneurship class on starting a cannabis del
ID: 358020 • Letter: I
Question
I’m doing a group paper for my Entrepreneurship class on starting a cannabis delivery service company that delivers cannabis from only growers to dispensaries in the state of California. In other words, we are only delivering from Business to Business and not to consumers. We also own our own fleet of trucks. I really need help addressing and answering the Product strategy and Channels of distribution parts of the marketing plan for our cannabis delivery service company because since we are only delivering cannabis we actually don’t have a product, so how can I address the product strategy and the channels of distribution for the cannabis delivery business. I’m doing a group paper for my Entrepreneurship class on starting a cannabis delivery service company that delivers cannabis from only growers to dispensaries in the state of California. In other words, we are only delivering from Business to Business and not to consumers. We also own our own fleet of trucks. I really need help addressing and answering the Product strategy and Channels of distribution parts of the marketing plan for our cannabis delivery service company because since we are only delivering cannabis we actually don’t have a product, so how can I address the product strategy and the channels of distribution for the cannabis delivery business.Explanation / Answer
The type of business is B2B and dispensaries are the customers (as business customers). So, regarding the product strategy, the first step is to take the details of the nature, type and specification of the cannabis, required by the dispensaries and their requirement quantity. On the basis of these inputs regarding the type and packet size of cannabis, cannabis will be refined or processed or modified as per the dispensaries requirements as a second step. In third step, the processed or refined cannabis will be packaged into the different weight size. Besides, these cannabis should be duly sampled, tested and approved by the competent laboratories to make it as per the specifications, prescribed by the dispensaries. Now, the price is put on each package of cannabis and the product is ready for the business to be delivered to the dispensaries. So, the product strategy will be to produce the cannabis as per the specification, package them into the different packaging with pricing details with approved quality credentials. The dispensaries will be categorized into the different categories as target audience and they will be served with different sizes of the product cannabis. Collectively, the market of cannabis is created to be served by the product readied by the business as a part of product strategy.
Regarding the distribution channel decision, the entrepreneurial business can go with different channels. The first channel is the direct channel. Under the direct channel, the business can deliver the product directly to the dispensaries. The fleet of the trucks owned by the company will help in doing so. The second channel will be the indirect distribution channel where the business can set up distribution centers as distributors in different parts of the state. Here, each distribution will have the specific area and the distributor in that area, will deliver the cannabis to the dispensaries. The business can also establish for the web-shop to take orders and distribute the product using either direct or indirect channels. Therefore, the business can start with the direct channel and later on, expand with the indirect channels in the state of California.
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