MPI Marketing Plan FINAL

WOOI TEIK LIM EDDIE WONG

EUNICE WONG ANGELA SUGIARTO

CHRISTINE LIM

URCOMMUNITY

MARKETING PLAN 2015-2016

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TABLE OF CONTENTS

EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i i i

1 . MISSION AND VALUES STATEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 BUSINESS SCOPE AND DEFINITION ..................................................................................................................................................................................................................................................... 1

2. S ITUATION ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2.1 INDUSTRY ANALYSIS ............................................................................................................................................................................................................................................................................ 2

2.1.1 MACRO ENVIRONMENT ......................................................................................................................................................................................................................................................... 2 2.1.2 AGGREGATED MARKET FACTORS .......................................................................................................................................................................................................................................... 3 2.1.3 INDUSTRY LIFE CYCLE ........................................................................................................................................................................................................................................................... 4 2.1.4 CRITICAL SUCCESS FACTORS ................................................................................................................................................................................................................................................. 4 2.1.5 OVERSEAS TREND ................................................................................................................................................................................................................................................................ 5 2.2 CUSTOMER ANALYSIS .......................................................................................................................................................................................................................................................................... 6 2.2.1 SEGMENT CHARACTERISTICS ................................................................................................................................................................................................................................................ 6

2.2.2 JUSTIFICATION ....................................................................................................................................................................................................................................................................... 6 2.2.3 CURRENT SEGMENTS ............................................................................................................................................................................................................................................................ 7!

2.3 COMPETITOR ANALYSIS ....................................................................................................................................................................................................................................................................... 8 2.3.1 DIRECT COMPETITORS .......................................................................................................................................................................................................................................................... 8 2.3.2 INDIRECT COMPETITORS ....................................................................................................................................................................................................................................................... 9

2.3.3 IMPACT ON URCOMMUNITY ................................................................................................................................................................................................................................................. 10

3. INTERNAL ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.1 DIRECTORS’ PROFILES ...................................................................................................................................................................................................................................................................... 11 3.2 FINANCIAL ANALYSIS ......................................................................................................................................................................................................................................................................... 11 3.3 MARKETING MIX ANALYSIS .......................................................................................................................................................................................................................................................... 12-13

4. SWOT AND OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 4.1 SWOT ANALYSIS ................................................................................................................................................................................................................................................................................. 14 4.2 OBJECTIVES ....................................................................................................................................................................................................................................................................................... 15

5. TARGETING AND POSITIONING STATEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 5.1 TARGET SEGMENTS ...................................................................................................................................................................................................................................................................................................... 15 5.1.1 JUSTIFICATION OF TARGET SEGMENTS ............................................................................................................................................................................................................................... 16 5.2 POSITIONING STATEMENT ................................................................................................................................................................................................................................................................. 17 5.2.1 JUSTIFICATION OF POSITIONING ......................................................................................................................................................................................................................................... 17

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6 . STRATEGIES AND TACTICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 6.1 STRATEGIC SUMMARY .................................................................................................................................................................................................................................................................. 18-19 6.2 DETAILS OF TACTICS ................................................................................................................................................................................................................................................................... 20-23

7. BUDGET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 7.1 JUSTIFICATION ............................................................................................................................................................................................................................................................................................................... 24 7.2 BREAKDOWN OF BUDGET ............................................................................................................................................................................................................................................................ 25-26

8. MONITORING AND CONTROL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 8.1 CONTINGENCY PLAN .......................................................................................................................................................................................................................................................................... 28 8.1.1 JUSTIFICATION OF CONTINGENCY PLAN .............................................................................................................................................................................................................................. 28

9. REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29-30

10. APPENDICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 10.1 APPENDIX A ..................................................................................................................................................................................................................................................................................... 31 10.2 APPENDIX B .................................................................................................................................................................................................................................................................................... 32

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EXECUTIVE SUMMARY This report was prepared to assess UrCommunity’s Backyard Food Forest project, in a bid to create strategies, which can generate sales of hothouse kits in Hoppers Crossing, within the operational

periods of 2015 and 2016. UrCommunity is a not-for-profit organisation with aspirations to promote self-sufficiency, communal living and community exchange. Through its hothouse project, the company aims to encourage urban sustainability by improving dietary intake and overall health, increasing access to fresh produce and lessening household food costs among consumers. In order to create a successful marketing plan, situation analysis was implemented to evaluate the internal and external environments of UrCommunity.

Current trends in the macroenvironment have positive implications towards growth of UrCommunity as a social enterprise and not-for-profit organisation. The company is involved in food production, hothouse kits, community welfare and knowledge sectors, all of which were found to be rapidly growing industries, as consumers are becoming increasingly health conscious and companies are becoming more community oriented. Customer analysis has uncovered young families, middle-life families and retirees as potential segments in the market. Middle-life families with children were deemed to be the most suitable target as they value self-sufficiency, good health and community engagement. The hothouse kits serve as a leisure activity for these consumers, who spend much of their free time gardening, and generate additional earnings for these middle-income families through sales of excess produce.

UrCommunity faces direct competition from Just Hydroponics, Simply Hydroponics, Dome Garden Supplies and Autopot Systems, who provide sales of hothouse kits and products, which complement these systems. Indirect competitors include supermarkets such as Coles, Woolworths and Aldi as these businesses sell identical food produce, which can alternatively be grown by hothouse kits. It was discovered through internal analysis that UrCommunity is supported by highly experienced principals and financially backed by UrCommunity Initiatives. Relative to its competitors, the company provides valuable benefits through its turnkey solution and heightened community involvement. However, it was found that UrCommunity is lacking in certain aspects as competitors offer more product choices and extensive support at lower prices. Awareness is low due to lack of communication and promotion but it holds vast potential with a campaignable brand identity.

On the whole, SWOT analysis on the Backyard Food Forest revealed that its all-in-one turnkey solution, high level of community orientation, strong profiles of experienced directors and stable financial support establish the strong points of this project. These strengths allow UrCommunity to capitalize on opportunities, which are available in the growing industries. The company could develop strategic coopetition with other organisations and build digital engagement with potential customer bases. From the analysis, it was also found that direct competition from hothouse kits sellers and indirect competition from food retailers form major threats to the project. Weaknesses of UrCommunity, which include lack of customer benefits, limited consumer knowledge about hothouse kits, high prices of products and low brand awareness will also be addressed in the following report.

Based on the analysis, a marketing plan was structured, with the aim to sell 50 hothouse kits by the year ended 31st December 2015 and another 100 hothouse kits by the year ended 31st December 2016 in Hoppers Crossing. To achieve these objectives, marketing mix strategies were formulated to overcome relevant weaknesses and threats. Product strategies include giving out complimentary packets of seeds and implementing workshop sessions. Recommendations to build a community garden and establish a distribution channel for excess produce were proposed as place strategies. Furthermore, price strategies including monthly installment plans were put forward. Last but not least, it was suggested that UrCommunity adopt promotional strategies, which consist of memberships and other promotional tools, such as social media marketing, personal selling, advertising and collaborations or sponsorships.

A budget, which details estimated revenues and expenses of the aforementioned strategies illustrated that UrCommunity, will suffer a loss in both years of the marketing plan, however it is common for not-for-profit organisations such as UrCommunity to incur minor losses in the start-up phase of business. Methods to monitor and control the marketing tactics were formed to ensure their efficiency and effectiveness. To reduce the impact of any unforeseen disruptions, a contingency plan was provided in the report with regards to developing a community garden. Due to the likelihood of being unable to procure land in Hoppers Crossing, it was proposed that the community garden can be built on rooftops of middle to high rise buildings.

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1 . MISSION AND VALUES STATEMENT

1.1 BUSINESS SCOPE AND DEFINIT ION

UrCommunity is a not-for-profit organisation, aspiring to promote the rights of an appropriate standard of living for all Australians, regardless of gender, age or ethnicity which reflects Article 25.1 in the Universal Declaration of Human Rights that everyone has the right to a standard of living. This goal is achieved through the creation of the UrCommunity café as a hub allowing people to interact and learn how to become more self-sufficient, practise communal living, and encourage community exchange through the UrCommunity Exchange System (UES). A range of inter-related projects are conceptualised aimed at ensuring greater participation, access, linkages and inclusiveness as well as promoting self-sufficiency and food security. It includes volunteering where UrCommunity believe it is important for people from all walks of life to respect one another, encourage one another and relate to one another in terms of the sharing aspect within a community.

UrCommunity operates within the City of Wyndham. It is the largest and fastest growing area in all Victorian local government areas

(LGAs) and home to a diversity of sectors, i.e. intensive vegetables growing area (Wyndham City Council, 2014). The café, UES and self-sufficiency are the bits and pieces that make up UrCommunity brand mantra, which is ‘Cultivating community exchange’. The context of this marketing plan focuses on one of the community self-sufficiency projects, Food Forest Systems© Hothouse. The idea of food production aims to promote greater self-sufficiency among community members, improving dietary intake of fresh produce and overall health, increasing fresh food access, lessening household food costs and hopefully promoting this to future generations by involving all ages in the program. It runs adjacent to the organisation overall mission as it ultimately stimulate higher standard of living for all Australians.

The nature of competition in the scope of this plan varies. The traditional competitors like local hydroponics retailers and non-

traditional competitors like Coles and Woolworths form the basis of competition in the hothouse and food production industry. In response to that, UrCommunity strives to communicate with the potential customers on their competitive advantage, which revolves around community involvement and values. They cater to both home-gardeners and businesses but the marketing plan emphasises the basis of business-to-consumer (B2C), where UrCommunity promotes their Backyard Food Forest ©. Residential owners or NEIS recipients are the target markets as UrCommunity is fostering self-sufficiency in terms of growing their own food.

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2. S ITUATION ANALYSIS 2 .1 INDUSTRY ANALYSIS

2.1.1 MACRO ENVIRONMENT The table below illustrates the effects of macro environment factors towards the growth of UrCommunity as a social enterprise and not-for-profit business.

MACRO ENVIRONMENT

FACTORS TREND IMPLICAT IONS ON

URCOMMUNITY

TECHNOLOGY THE EASE OF USE OF THE

HOTHOUSE K IT

The technology of the hothouse kits allows minimum maintenance level from the growers to make sure the system is working. -The provider will do the setup of hothouse kits and only growers will only need to ensure clean exterior and interior environment of the greenhouse for plants to grow (BBC, 2014).

Customers do not need to worry about acquiring any specialised or sophisticated skills for the usage and maintenance of the hothouse kits.

POL IT ICAL PERMIT TO USE HOTHOUSE K ITS

There is no legal issue in constructing a hothouse kit in the backyard of the house (Aquaponics, 2006). -No permits are required to build a backyard food forest for residential uses. Hothouse kits for commercial uses will need to apply for permit to build.

The hassle-free legal process to build a hothouse kit in the backyard of a house could reduce barrier for household to use the hothouse kit.

SOC IOCULTURAL HEALTH

PROBLEMS

Health statistics shows that more than half of the adult population in Wyndham is overweight (Wyndham City Council, 2014). Lack of recreational infrastructure and access to nutritious and affordable foods are the main factors of these health problems (Wyndham City Council, 2011). -Increase recreational infrastructure and making healthy food accessible to the community could help in addressing the social cause, solving the health problems faced by the community.

The hothouse kit produces organic food for the community, which is deemed healthy and fresh. The horticulture process also can be seen as a recreational activity for the community.

DEMOGRAPHIC KNOWLEDGE OF

CH ILDREN

65.48% of the families in Wyndham, consisting of 89,366 households, have one or more children in their family (Wyndham City Council, 2014). Food that children consume is often a concern for the parents. -Children have to be taught the knowledge of balanced nutrition through the production of organic food in addition to involve in more recreational activities that is community-centric.

The use of hothouse kits is a good educational tool for children to demonstrate the importance of food nutrition to encourage healthy lifestyle.

ECONOMIC TAX ADVANTAGE

FOR SOCIAL ENTERPRISE

Tax advantage like tax exemption and concession tax rates are available for social enterprise and not-for profit organisation (Jarvis, 2009) -Social enterprises can take advantage of the government initiative to generate tax savings in order to increase investment into the business to support the social cause.

UrCommunity as a social enterprise could apply for the tax benefits from the Australian Taxation Office. The savings generated could be used to reinvest into the business to support growth and development.

POL IT ICAL GOVERNMENT

GRANTS

The local government is aware of the health problems faced by the community. Support will be given to appropriate partners to tackle the problems (Wyndham City Council, 2014) -A grant up to $5,000 is available to application. Applications will be evaluated and shortlisted. Mentor will be assign to assist successful applicants to help in developing the project.

The financial support and mentorship from local government could help to give a boost to the business operation.


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2.1.2 AGGREGATED MARKET FACTORS

UrCommunity is involving in four industries: Food production, hothouse kits, community and knowledge. The table below explains how the industries are defined, the current market size and industry performance. FOOD PRODUCTION HOTHOUSE K ITS COMMUNITY KNOWLEDGE

INDUSTRY DEFIN IT ION

- Food production means the growing, raising, cultivating, picking, harvesting, collection or catching of food (New South Wales Legislation, 2011) - Includes transportation, packing, storage, sales and other food production activity.

- The hothouse kits consist of Aquaponics, Hydroponic, Permaculture systems and technologies. - Effective and efficient solution to farming as a resulted of controlled farming environment and higher harvesting yield (UrCommunity BFF)

Not-for-profit organisation (NFP) - Established for community welfare and are sustained by philanthropies from various sources (Evalueserve, 2011) - Most of them are community-focused and operate locally. - It is not operated for financial benefits for its stakeholders, officers or directors. - Paid skilled professionals and free labour by volunteer are both available (IBIS, 2012).

- Education on how to operate and maintain the aquaponics and hydroponics systems

MARKET S IZE

- The market is worth $42.6 billion at year 2011/2012 and growing each year (Australian Trade Commission, 2013).

- Food production from the Protected Cropping Industry accounts for $1.3billion farm-gate value per annum. - Protected Cropping Industry is known as the fastest growing industry in food production sector in Australia.

- Statistics on small scale or house yard hothouse owners are hardly available as authorities are mostly unaware of the industry’s growing strength (Wilson, 2013). - Experienced author estimate that 400 to 500 of Australian Families have Aquaponics system for food production. - This might be a potential market as it is estimated that around 10,000 of Australians have been considering home-based Aquaponics before. This estimation is based on the sales of home-based Aquaponics promotional CDs (Wilson, 2013).

- The industry is worth $105b in 2011-12, with an estimate of 600,000 organisations in Australia.

- Victoria ranked second in tems of total industry size, standing at 22.3%.

- Industry revenue has increased 3.5% in average during 5 years through 2011-12 despite enduring the financial crisis in 08-09. - Consistent rate of government funding assists many organisations to continue their vital operation of services (IBIS, 2012).

- There is no definitive market for the knowledge industry as it is abstract. - However, it can be seen that educational workshops are continuously offered by different organisations that offer aquaponics and hydroponics. E.g. Practical Aquaponics (Practical Aquaponics, 2014) - Schools are investing in aquaponics system for children’s education and understanding of the world (ABC Australia, 2012). - Universities at a regional level introduce courses and conduct research on horticulture. E.g. Melbourne University and RMIT University (Melbourne University, 2012).

INDUSTRY PERFOR-MANCE

- Industry has been growing due to improved productivity, and consistent output as a result of controlled growing environment (IBIS, 2013). - Consumers’ preferences and spending habits are heavily influenced by price, household income levels, health consciousness, consumer sentiment, and availability of substitutes (IBIS, 2014).

- Major retailers increase their demand for greenhouse farming products, which eventually create demand for hothouse kit (IBIS, 2014). - Lack of demonstration unit and centralised training facilities are some of the industry constraints.

- Increasing number of not-for-profit organisations that reinvest yearly surpluses for the benefits of subsequent years. - Half of the sector's income is self-generated with one third from the government and 10% from philanthropies. - Wage costs are curbed using a greater degree of volunteer labour - According to IBIS (2012), it is estimated that 6.1 million volunteers are providing free labour to the not-for-profit entities in Australia.

- The level of education within a community is somewhat contributing to the community willingness to buy products grown through aquaponics. - The supply of knowledge on the operations and maintenance of these hothouse kits have shifted focus to the technological platform. Information is widely available in the form of text, image and video tutorials online.


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2.1.3 INDUSTRY LIFE CYCLE Due to increasing demand and higher social awareness, the overall industry life cycle of UrCommunity is at growth phase.

2 .1.4 CRIT ICAL SUCCESS FACTORS According to the study, commercial success of the sectors discussed is linked to (hydroponics, world and Australia trend): 1) Establishment of the venture in a realistic economic framework - Organisation needs long term commitments and process, allowing 3-4 years before a social enterprise can cover its own cost (Benevolent, 2013) - UrCommunity will need to have realistic expectations and contingency plan on getting sufficient start-up capital and the continuing resources to support the growth of the business 2) Comprehensive business and marketing planning. - A well-structured business and marketing including market research and growth planning is crucial to an organization (Benevolent, 2013). - UrCommunity need to put in effort to plan and observe the industry performance as the dynamic business environment make social enterprises vulnerable to failure (Social Ventures Australia, 2010). 3) Platform to distribute excess supply from hothouse kit: - Residential hothouse kit owners will need to have a platform to distribute and get rewards from their excess crops from the hothouse kit. - Ideally, UrCommunity will need to have an established supply contract with a wholesaler, a retail chain or a vegetable processor will ensure that the produce from household is sold quickly and receives high prices. 4) Availability of highly-skilled workforces - Consultation, planning, and installing hothouse facilities requires staff with the appropriate technical skills and knowledge. - The uses of hothouse kits required more skills to manage than conventional soil-based systems, and sometimes generating technical problems. (Randwick Community Organic Garden, 2014) - UrCommunity will need to have a team who has good technical knowledge of the hothouse farming system to support the need of their future client base. 5) Partnerships/Alliances/Network - Developing partnership enables business to leverage on each other’s strength to help them grow (Social Ventures Australia, 2010). - Forming partnerships, alliances and network with the local social enterprises, governments or organizations can increase brand awareness and trust from the local community. It might be a good initial plan for a social enterprise start-up like UrCommunity.

What does a growing industry means for UrCommunity? There is a vast amount of room for rapid industry growth. The increasing trend of growing own food and having a hothouse kit at home presents an opportunity for UrCommunity to grow and expand. UrCommunity will be able to approach the market by just simply making themselves aware to the target market and communicate the competitive advantage being a social enterprise. Hence, the community aspect that UrCommunity included in their mission fills the undiscovered gap in the market since most companies in the City of Wyndham are for-profit organisations that compete in product, pricing and distribution. The broader Australian trend of involving private sector and not-for-profit organisations in the service industry has made coopetition readily available. Hence, UrCommunity will be able to work with cafés and restaurants primarily in place and promotional strategies. On the other hand, technology advancement may increase the presence of free knowledge on the Internet, but UrCommunity is offering hands-on workshops that educate the public on the operations of the hydroponics and aquaponics. Conclusively, brands in the growth stage in the industry life cycle can grow by tapping the market potential. Industries like food production, hothouse kit, community and knowledge are proven to be in favour of UrCommunity as they are all growing.


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2.1.5 OVERSEAS TREND

To gain better understanding of the four industries (i.e. food production, hothouse kit, community and knowledge) and view it from another perspective, the overseas trends of these industries are researched and shown in the table below.

ORGANIC FOOD PRODUCTION HOTHOUSE K ITS (HYDROPONICS & AQUAPONICS) - The world organic sector is reported to grow between 20-25% a year. - UK has reported consistent growth in the consumption of organic foods at 40% per year. The increase in organic food production at 25% a year fails to keep pace with the country’s demand. - In recent years, New Zealand has been a skyrocketing growth in the organic food industry. Exports are reported to have increased from $1.1 million in 1990 to over $60 million in 2003. - There is also a distinct and growing market for fresh and frozen organic vegetables in the United Kingdom, Germany, Japan and France. Food safety, genetically modified organisms, and environmental concerns are among the factors promoting this growing demand (Rural Industries Research and Development Corporation (RIRDC), 2007). - Steady growth rate in the Asian market for organic food is coping with the rising awareness of organic production methods which fuels demand for organic food (FIBL, 2014). - In Latin America, the most developed domestic market is in Brazil. Farmers’ street markets and cooperatives have existed for 30 years. They put emphasis on exports to Europe, United States and Japan. - The historic organic equivalency arrangement between the United States and European Union (EU) made both countries recognise each other’s organic products which allows domestic producers to have a higher level of production (Organic Trade Association, n.d.)

- There is increased consumer concern regarding the quality of the food they consume. In recent years, this concern has been fuelled by contamination scandals everywhere from Europe (meat) to India (dairy products) (Euromonitor, 2014). - The world area of hydroponic production has increased 4-5 fold from 2004-2013. - Major commercial producers of hydroponic products are Holland (10,000 ha), Spain (4,000 ha), Canada (2,000 ha), then followed by Japan, New Zealand, UK, US and Italy. Current Australian production is estimated at over 500 ha. - There is a steady movement away from open systems towards closed or ‘recirculating’ systems that UrCommunity is introducing. - The efficient industry model of Netherlands in terms of infrastructure and marketing is a good reference for Australia to emulate. - In Germany, there is a poor consumer perception of hydroponics being unnatural and chemical reliant production system. - All New Zealand greenhouses are hydroponic. As the government backs them, it may penetrate the Australian domestic markets within 5 years (RIRDC, 2011). - In Asia, predominantly China, average living space is shrinking as population density increases. It discourages them to invest the time and money in the hydroponic system (Euromonitor, 2014).

COMMUNITY - NFP KNOWLEDGE - There is a shift in wealth taking place in the world toward developing nations and the BRIC (Brazil, Russia, India and China) countries. Hence not-for-profit companies have a higher chance of engaging the customers (Blackbaud, 2013). - More community organisations are also recognising the benefits of long-term business partnerships. In the United Kingdom, a 2002 study by Business in the Community (BITC) found half of 1091 community organisations surveyed described long-term business support as crucial. 80% of those groups also expected private sector involvement to increase over the next decade. - Australia and the United Kingdom are moving their community investment activities from philanthropy and sponsorships to fully established partnerships. Engagement via a partnership will frequently give a corporation a clear view of the governance challenges and opportunities of their community partner (NAB, 2007). - Funding is the major issue for 76% of NFPs in New Zealand and 68% in Australia. In New Zealand, finding volunteers is next major issue for New Zealand, accounting for 14% (Evalueserve, 2011).

- Universities primarily in the US conduct research on Integrated Technology for Fish and Vegetable Production in Recirculating Systems. - E.g. The North Carolina State University System (Speraneo System), The University of the Virgin Islands System (The Freshwater Institute System) - There are not-for-profit organisations in US (i.e. Cabbage Hill Farm, The New Alchemy Institute) that promote education on aquaponics and hosts greenhouse interns (ATTRA, 2006). - Free knowledge is also available widely on the internet without boundaries.


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2.2 CUSTOMER ANALYSIS 2.2.1 SEGMENT CHARACTERISTICS

SEGMENT 1 S INGLES

SEGMENT 2 FAMIL IES W ITH CH ILDREN

SEGMENT 3 RET IREES

WHAT Self-sufficient Sense of belonging

Self-sufficient Health Awareness Family activities

Community engagement

Self-sufficient Additional income (long-run)

Socialisation

WHERE Decision: Online Ad.

Purchase: Home (telephone), Community center and workshop

Decision: Media advertising (television), Community Events, On Site

Purchase: Home (Website, Telephone) and Café

Decision: On Site, Via Paper Ad., Community Event.

Purchase: Home (Telephone) and Café.

WHEN Promotion Personal Selling Promotion

WHY Social influence Leisure time

Social connection Accessibility to organic foods

Leisure surplus Social connection

Accessibility to organic foods

WHY NOT Price concern Time poor

Mortgage burden Kid’s education expenses

Price concern

HOW Via Telephone, On Site Via Internet, Via Telephone, On Site Via Telephone, On Site

WHO

Singles Low priced housing, Low income

Technological advanced

Families with children Long-term residents

Average income White-collar, clerical and sales jobs

High access to Internet

Single adults, aged parents, retirees Low qualifications and low income

High unemployment rate

2 .2.2 JUSTIF ICATION What research and ins ight lead to these segments? • Helix Personas is a one of a kind consumer segmentation tool introduced by Roy Morgan Research. It shows the projection of sophisticated psychographics and behavioural data of every household in Australia.

Ultimately, the Australian population is classified into 56 personas and 7 communities with the integration of consumer databases, transactional systems, third party data and surveys.

• Helix Personas was primarily used to build a better understanding towards the customers in the designated location of Hoppers Crossing and also within the City of Wyndham. It was engaged to generate aggregated profiles of customers with regards to UrCommunity self-sufficiency programme.

• As a result, analysis were undertaken to determine which segment is best suited for UrCommunity in the self-sufficiency initiative as reflected in the hothouse kit project.


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2.2.3 CURRENT SEGMENTS

The analysis of consumer behaviour within the area of Hoppers Crossing and City of Wyndham proposed three different customer segments for the hothouse kit project.

• Singles do not earn much and they tend to have low priced housing or a small unit of apartment that is just enough for one or two. Even though prices are they primarily concerned, it does not stop them to purchase clothes or things that will get them noticed. Although, social influence is a lot on them, they tend to follow the trends so that they can get a sense of belonging to their society. However, singles are heavy users of the Internet and their smartphones. They are more likely to read news online, rather than reading the paper. In other words, this segment is more technological advanced.

• Families with Children are long-term residents who earn average income. These people who live at Hoppers Crossing suburb of Melbourne, loves to spend their leisure time at home doing gardening, playing computer games and watching DVDs. Since families with children love to do gardening at home, it shows that they are health conscious. Therefore, by purchasing hothouse kits, this opens the opportunity for this family to have an access to organic foods, while at the same time becoming more self-sufficient. Moreover, this could also be a weekly family activity; where every week, the families spend their time to take care of the kits or maybe visiting the café in order to engage with the community. In addition, families with children also like being online, thus, they have high access to Internet to find out more information about the hothouse kits if they are interested to purchase one.

• Retirees are those single adults or parents and retirees who have lower income and sometimes are struggling financially. This segment prefers to shop at discounted stores or when there are promotions have been offered. However, since they are not interested in any technological items, retirees prefer to read paper. However, since the numbers of unemployment rate are quite high, that means they have more leisure time and interested in making new friends or becoming socially-involved. In this case, when the retirees could save up their money to purchase the kits, they might be able to resell their food produce back to the café and therefore, they could generate additional income in the long run even though it takes time.

(Source: Helix Personas by Roy Morgan (n.d.))


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2.3 COMPETITOR ANALYSIS 2.3.1 DIRECT COMPETITORS Direct competitors consist of well-known businesses located both in Hoppers Crossing and in Melbourne, Victoria. Although most of these businesses are for-profit organisations, they still provide direct competition in terms of the sale of hothouse kits and products that complement these systems. As such, they may affect the sales and market share of UrCommunity in the industry of hothouse kits. Just Hydroponics, Simply Hydroponics, Dome Garden Supplies and Autopot Systems are the businesses identified that are applicable under the direct competitors category. The analysis of these businesses may offer strengths and weaknesses that UrCommunity can apply as well as improve on.

JUST HYDROPONICS S IMPLY HYDROPONICS DOME GARDEN SUPPLIES AUTOPOT SYSTEMS

BUSINESS POSIT IONING

“We only stock quality world leading brand names and thrive on customer satisfaction.”

“If you find it cheaper elsewhere, contact us.”

“A leading international supplier of wholesale hydroponics and traditional horticultural products.”

“It is so simple and yet so effective in solving food production problems around the world.”

LOCATION

- 8 Motto Court, Hoppers Crossing, VIC 3029 - 29/39 Westwood Drive, Deer Park (Ravenhall), VIC 3023

- 411-413 Old Geelong Road, Hoppers Crossing, VIC 3029

- 12 Pinnacle Road, Altona North, VIC 3025

- 810 Springvale Road, Braeside, VIC 3195

PR ICE RANGE $1500-$4800 -Not available on website- -Not available on website- Estimated $1000-$2000

PURCHASING OPTIONS

Online, in store (www.justhydroponics.com.au)

Online, in store (www.simplyhydroponics.com.au)

Online, in store (www.domegarden.com.au)

Direct through email, in store (www.autopot.com.au)

STRENGTHS

- Customers are able to purchase products online - Offers set-up kits for customers - Located in two different areas

- Customers are able to purchase products online - Products are available at cheaper prices - Website explains what hydroponics is and how it is set up - Provides tips and frequently asked questions on their website

- Customers are able to purchase products online - Wide range of products and the business is an international supplier (14 main suppliers/ over 1500 different products) - Exclusive Australasian distributer of North American ‘Grotek’ and a local range of products from ‘Nutrifield’

- Can products by requesting via email - Offers set-up kits for customers - Free and detailed information available on website (e.g.: step-by-step guides, brochures, tips and FAQs) - Business carries out projects overseas (e.g.: Maldives, Paraguay, etc.) - Self-made/developed technology

WEAKNESSES

- Does not give information on hydroponics on their websites - No tips or frequently asked questions for customers to reference to

- Does not offer a set-up kit for customers (I.e.: Only individual components available) - Does not have an overall price indication for the hothouse kits

- Does not offer a set-up kit for customers (I.e.: Only individual components available) - Price of components not available - Does not give information on hydroponics on their websites - No tips or frequently asked questions for customers to reference to

- Despite being involved in projects overseas, Autopot Systems is not involved in the local community


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2.3.2 INDIRECT COMPETITORS Indirect competitors consist of supermarkets located in and surrounding the Hoppers Crossing area that offer both organic and nonorganic produce for sale. Despite Coles, Woolworths and Aldi existing as

for-profit organisations, they fall under the indirect competitors category as these businesses sell identical food produce that can alternatively be grown by the hothouse kits sold by UrCommunity. Thus, these businesses may affect the sales and market share in both the organic food produce and hothouse kits industry indirectly.

COLES WOOLWORTHS ALDI

BUSINESS POSIT IONING “Working towards a sustainable future, forming lasting relationships with Aussie farmers, and supporting local jobs in the food industry.”

“The fresh food people.” “ALDI. Like brands. Only cheaper.”

LOCATION

- Derrimut Road, Hoppers Crossing, VIC 3030

- Corner Old Geelong and Morris Road, Hoppers Crossing, VIC 3029 - Corner Hogan and Derrimut Road, Hoppers Crossing, VIC 3029

- 77-83 Synott Street, Werribee, VIC 3030 - Boardwalk Boulevard, Point Cook, VIC 3030

ORGANIC PRODUCTS Coles Organic Woolworth’s Macro Wholefoods Market Specific organic products – butter, olive oil and milk

PURCHASING OPTIONS Online, In store Online, in store In store

STRENGTHS

- Wide range of both organic and non-organic products - Well-known around Australia - Offers both online and in store purchase options - Convenient for customers as stores are open seven days a week - Offers cheaper alternatives through products developed under the Coles brand - Offers other brands under Coles such as Coles Brand, Finest, Simply Gluten Free, Less, Green Choice, Smart Buy

- Wide range of both organic and non-organic products - Well-known around Australia - Offers both online and in store purchase options - Convenient for customers as stores are open seven days a week - Offers cheaper alternatives through products developed under the Woolworths brand - Offers other brands under Woolworths such as Woolworths Free From (Gluten), Gold, Select, Homebrand, Fresh

- Cheaper quality alternatives that are identical to well-known brands

WEAKNESSES

- High priced organic products - Cheaper, nonorganic products are available as alternatives

- High priced organic products - Cheaper, nonorganic products are available as alternatives

- Less range of products - Only offers minimal organic products, in which are not fresh produce - Offers only a few well-known brands


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2.3.3 IMPACT ON URCOMMUNITY D IRECT COMPETITORS - In terms of hothouse kits, this analysis shows that Simply Hydroponics is one of the main direct competitors that offer similar products. This may affect the market share and sales of UrCommunity’s own hothouse kits, as the business’s position is to offer products at a cheaper rate as compared to other businesses. Consumers may choose to purchase these kits from Simply Hydroponics, as it may be available at a much cheaper price. The store is also located in Hoppers Crossing, which is where the target segment is located. Thus, making it easily accessible and convenient for UrCommunity’s target segment to visit the store. - In addition, Simply Hydroponics also gives the option for customers to purchase the hothouse kits online via their website (www.simplyhydroponics.com.au) – something that UrCommunity has not made available. This gives them a competitive advantage, as customers need not physically visit the store to purchase any goods, as they can be bought online and delivered to their homes. Simply Hydroponics also provides information as to what hydroponics is, how it is set up or ensembled, and offers tips and frequently asked questions for their customers who may have any enquiries on their website. - However, unlike UrCommunity, these businesses do not partake in the other industries that UrCommunity is entering in, such as food produce. Furthermore, they exist as for-profit organisations that do not have a vision in helping the community socially. - Through the analysis of these different businesses, UrCommunity can benefit from ensuring that they improve on the areas in which these other businesses lack strength in, as well as learn from the areas that they excel in as they provide their products to their customers efficiently. INDIRECT COMPETITORS - In terms of the food produce industry, this analysis shows that the supermarkets, Coles and Woolworths, are the two main indirect competitors that offer similar or identical organicly grown produce that the hothouse kits sold by UrCommunity will produce. This may ultimately affect UrCommunity’s sale of hothouse kits as consumers may feel that it is more efficient and easy to purchase the organic produce from these supermarkets, rather than to grow them themselves. In addition, Coles and Woolworths are widely known brands that exist around Australia, and are known for their fresh produce and quality products. - Additionally, these supermarket brands also allow consumers to purchase their groceries online, which like Simply Hydroponics mentioned above, removes the burden of customers having to visit the physical stores to acquire the food produce or other products. These supermarkets also carry their own organic brand of products, as well as other widely known brands of organic foods. This would allow customers to have a wider variety of goods to choose from, and despite the higher prices, they may feel as though it is much more efficient to purchase these products. - As such, through the analysis of these businesses, UrCommunity should take note to ensure that they inform their potential and existing customers about the cost-benefit analysis and benefits of purchasing a hothouse kit. These benefits include being able to grow their own organic produce at a lower cost in the long run, to be a part of a self-sufficient community where members can learn from one another and to gain knowledge on the basics and benefits of organic growing.


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3. INTERNAL ANALYSIS 3.1 DIRECTORS’ PROFILES The principals behind UrCommunity have extensive experience across a number of sectors which includes:

PETER MALL IAROS

• Owner of the system who devised its original concept • Responsibilities include café operations, urban sustainability and marketing activities • Has 20 years of experience in management and running small and medium enterprises • Possess not for profit and community business experience • Experienced in operating a café from start up over a three year period • Possess knowledge of urban farming • Devised and conducted a six month research project • Professor from Adelaide University in profit drivers of cafes and developing appropriate models • Achieved success rate of 10 to 30 percent for grants applied in the past three years •

ROSS JOYCE

• Responsibilities include arts and communication • Has 30 years of experience in management and community development • Worked in a number of industries ranging from not-for-profit, government, small to medium enterprises • Has operated at Board, CEO, Senior Executive and Consultant roles • Operated his own retail business concurrently with other commitments for over 14 years inclusive of a Central Business District café operation • Principal of Verve Consulting and Recruitment which is participating in this project • Offers strong community service program development skill as well as extensive operational and management expertise

PAULA HALL • Responsibilities include UrCommunity Exchange System IT help desk, administration and UrPotential

3.2 F INANCIAL ANALYSIS

Finances are limited as UrCommunity is a not-for-profit organization. It has yet to begin trading as the company is still in the startup phase. The hothouse project has been in development for two years and an approximate amount of $30,000 has been invested to date (UrCommunity, 2014). Currently, the company is incurring expenses without making any sales. Funding is obtained from director contributions and future financial requirements will be supported by commercial activities of UrCommunity Initiatives. Operations are set to commence on the 1st of January in 2015. The company aims to attain a sales volume of one to two units per week, though it is prospected that they will not have many sales from January to March. Hence, the sales target is envisaged to be achieved by the month of April. Subsequently, kits will be sold for $5,000 at an average of one or two units per week with a margin of 30 percent.


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3.3 MARKETING MIX ANALYSIS ELEMENT EV IDENCE SOURCE

PRODUCT

• UrCommunity provides their customers: 1. Components to create their own backyard food forest system ! Australian made hothouses with commercial greenhouse film Hortiplus, sturdy steel frames and automated vents which are temperature sensitive. The

hothouses are available in dimensions of 2.74 metres in width and 4, 6, 8 or 10 metres in length. ! Vertical aquaponics towers with removable hangers and reusable matrix growing media made from recycled bottles ! 1,000 litre water tanks which can house up to 35 trout and silver perch at a time ! Capillary watering beds with automatic watering valve system 2. Installation and setup of the hothouse kit 3. Training and knowledge required to operate the system 4. Complimentary backup and support for five weeks 5. Distribution channels to appropriate food businesses

• Compared with its competitors, UrCommunity does not: 1. Carry a wide range of products ! Dome Garden Supplies offers over 1500 products from international suppliers

2. Provide variety in terms of growing kits ! Autopot Systems provides a choice of starter kits and extension kits for its customers

UrCommuni ty (2014) Dome Garden Supp l ies (2014) Autopot Sys tems (2014)

PR ICE

• The price of a kit is $5,000 and a monthly fee is charged for training and support provided five weeks after installation • UrCommunity’s price for hothouse kits is relatively higher compared to Just Hydroponics’ price range of $1,400 to $4,800 • UrCommunity may not be competitive as it offers support services for a fee when additional information regarding techniques to manage a hothouse are available free

of charge on its competitors website. UrCommunity does not offer: 1. Detailed guides and brochures which are available on Autopot Systems website 2. Images and easy directions shown in Just Hydroponics website 3. Tips and solutions which are provided on Simply Hydroponics website

UrCommuni ty (2014) Autopot Sys tems (2014) Jus t Hydropon ics (2014) S imp ly Hydropon ics (2014)

PLACE

• Customers can place orders for kits at the UrCommunity Café though this is not stated on their website • UrCommunity can also be contacted through their email address provided on their website • The company is currently working with RMIT to develop a smartphone application to improve communication with customers • To simplify the process of making orders and enquiries, it would be helpful to provide a contact number on the website • Customers may be uncertain of how they can place orders or make payments as it is not specified clearly • Dome Garden Supplies provides a downloadable order form on their website • Autopot Systems has a “How to Order” page which details order and payment methods

UrCommuni ty (2014) Dome Garden Supp l ies (2014) Autopot Sys tems (2014)


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PROMOTION

• UrCommunity is not executing any promotional activities at the moment. This includes: 1. Engagement with any form of online social media ! Autopot Systems and Just Hydroponics have Facebook pages whereas Simply Hydroponics has a Twitter account

2. Implementation of direct marketing activities ! Dome Garden Supplies publishes an online catalogue which highlights clearance items and popular products

3. Execution of any sales promotions and discounts ! Dome Garden Supplies provides membership registration and priorities such as receiving updates and special offers ! Dome Garden Supplies is organising a competition which offers customers the opportunity to win products, cash prizes, travel vouchers and electronics ! Simply Hydroponics offer products at discounted prices

• Currently the only place to find out about UrCommunity is through the website

UrCommuni ty (2014) Dome Garden Supp l ies (2014) Autopot Sys tems (2014) Jus t Hydropon ics (2014) S imp ly Hydropon ics (2014)

Although UrCommunity does provide a number of valuable benefits through its turnkey solution, it is still lacking in certain aspects as competitors offer more product choices and extensive support at lower

prices. The company has not generated much awareness due to lack of promotional activities but it holds vast potential as a successful social enterprise. With aspirations to create urban sustainability, UrCommunity has a campaignable and meaningful brand identity, which revolves around community orientation and strategic coopetition. This is reflected in its commitment to cultivate self-sufficiency, encourage participation in cultural activities and promote community exchange through collaborations with the community and other business organisations (UrCommunity, 2013). These core values inherently convey a memorable and compelling brand personality of strong ethical character, which creates an impact in the minds of consumers.


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4. SWOT AND OBJECTIVES

4.1 SWOT ANALYSIS STRENGTHS WEAKNESSES

A l l - in -one se tup - The hothouse kit is an all-in-one package that includes a 1,000 litre water fish tank and vertical

aquaponics towers placed in a commercial Hortiplus film greenhouse

H igh in tended leve l o f communi ty or ienta t ion - Operates as a not-for-profit company or a social enterprise that engages highly with the

community - Emphasises the sharing aspect of the community - Volunteerism also heavily involves the community

S t rong and exper ienced pro f i les

- Peter Malliaros and Ross Joyce being the masterminds of the self-sufficiency project - Both have experiences in running SMEs and the related industries: Food production, hothouse

kits, community and knowledge

F inanc ia l suppor t - The presence of a private company, UrCommunity Initiatives set up by Peter Malliaros contributed

financially to the hothouse project

Lack o f customers benef i ts - Although the hothouse kit is an all-in-one package, customers are seeking for more augmented benefits of

the hothouse they purchase to decrease the perceived risks

L im i ted know ledge - Lack of prior knowledge on the operation of hothouse and organic food production

- With the current information available, customers find it difficult to understand the vision presented by the principals on self-sufficiency

H igh ly -pr iced

- $5,000 is a heavy price to pay for the customers who are still new to the concept of organic growing

Lack o f awareness - Promotional activities are currently offline since UrCommunity is not trading

- The UrCommunity website only offers limited amount of information

OPPORTUNIT IES THREATS

Grow ing indust ry - Referring to the industry analysis, the industries involved (food production, hothouse kits,

community) are in the growth stages of their respective industry life cycles

Coopet i t ion w i th bus inesses or organ isa t ions - Collaboration with local cafes and restaurants to provide them with the excess supply of the

organic produce - Being certified by Organic Federation of Australia enhances the value of the hothouse kits

D ig i ta l engagement

- Technology advancement has made the digital platform a necessity to engage the target market. - Although the target market is of middle-aged groups, it is reported that they form the majority

percentage of active Facebook users (Business Insider Australia, 2013).

D i rec t compet i t ion

- Example: Just Hydroponics, Simply Hydroponics, Dome Garden Supplies, Autopot System

Ind i rec t compet i t ion - Example: Coles, Woolworth, Aldi


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4.2 OBJECTIVES Year 1: To achieve a sa le of 50 uni ts o f hothouse k i ts in Hoppers Cross ing by year end 31 Dec 2015. Year 2: To achieve a sa le of 100 uni ts o f hothouse k i ts in Hoppers Cross ing by year end 31 Dec 2016.

The table below exhibits the predicted sale units in each period of the year 2015 and 2016. Further explanations are given in the lower part of the table to illustrate the background and importance of the objectives.

YEAR 1 (2015) YEAR 2 (2016) January-March Zero sale

January-December 2 units per week April-September 1 unit per week October-December 1-2 units per week

Tota l : 50 un i ts per year Tota l : 100 un i ts per year Jus t i f i ca t ion : In the first three months of operation, it is assumed that there will be no sale since the hothouse is a newly introduced concept and UrCommunity needs time to communicate effectively with the target market. April will be a turning point for UrCommunity as sale starts coming in one by one each week that runs through 6 months till September. Due to the increased awareness, it is expected that the sale of hothouse might reach 2 units per week during the last three months of the year.

Jus t i f i ca t ion : The consistency of sales activities in Year 1 (2015) set a benchmark for Year 2 (2016). Hence, it is predicted that throughout the whole year of 2016, there will be an average of 2 units of sale per week which totals up to an estimated 100 units of sale in Year 2. A higher estimate figure of sales is not proposed due to couple of reasons. The first reason being the slow adaptation process of customers to the culture of self-grown food. Customers perceive backyard food forest as being time and money consuming. Secondly, the limited financial resource within UrCommunity restricts the social enterprise from hiring more sales staff and management team to handle the increasing number of sales. Hence, an optimum amount of 100 units of sale per year is stated in the objectives.

5 . TARGETING AND POSIT IONING STATEMENT

5.1 TARGET SEGMENTS SEGMENT 1

S INGLE/YOUNG FAMIL IES SEGMENT 2

FAMIL IES WITH CHILDREN SEGMENT 3 RET IREES

CHIEF CHARACTERIST ICS

Singles Low priced housing, Low income

Self-sufficient Sense of belonging

Technological advanced

Families with children Average income Leisure surplus Self-sufficient

Health Awareness Family activities Socially aware

Community engagement High access to Internet

Single adults, aged parents, retirees

Low qualifications and low income Self-sufficient

Additional income (long-run) Socialisation

*URCOMMUNITY IS CURRENTLY FOCUSING ON THIS SEGMENT


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5.1.1 JUSTIF ICATION OF TARGET SEGMENTS Target groups are defined as the characteristics to be used as a basis of determining the attractiveness of each segment and choosing which groups(s) that the company will sell their product to (Alsem, 2007). The market segments in the customer analysis are singles, families with children and retirees. However, from the three market segments, only fam i l ies w i th ch i ld ren (segment 2) are deemed most suitable for UrCommunity. It is most likely that the families with children segment would give a high potential market for UrCommunity to sell their hothouse kits. Thus, the target market of UrCommunity is families with children who live in the Hoppers Crossing suburb. According to Helix Personas by Roy Morgan (n.d.), there are 37,598 people who live in Hoppers Crossings, with a percentage population of 3.5 per cent. Families with children are classified as people who tend to live in households of three to four people (Helix Personas by Roy Morgan, n.d.). Further mentioned on the website that families who live in this suburb, love to spend their leisure time at home by doing gardening. Also, food is just a means to an end and they seldom eat out. It is reported that 46 per cent of the people, who live in this area, try to keep day-to-day living costs as low as possible, hence grocery shopping does not excite them. Therefore, families with children who live in this area prefer growing their own vegetables, cook their own meal, in order to be cost-effective. Moreover, since this segment love gardening, it shows that they are geared towards a greener lifestyle. When families with children have their own backyard food forest, not only that they are able to grow their own foods and vegetables, but they are also becoming more self-sufficient. Families with children could also learn to take care of the systems every week, as a part of family activities, as well as to educate their children on how to grow their own plants. As a result, they could live in a healthy lifestyle since the growing foods are organic and full of nutrients. Hence, they are looking something better that can definitely change their lives. At the same time, this target segment can be classified as ‘socially aware’. According to Roy Morgan Company, ‘socially aware’ refers to people who are community minded and socially active. They are always searching for something new and different and new things to learn. The people who are ‘socially aware’ also have a strong sense of social responsibility and often become involved in pressure groups. These people believe that “they can change the world or save the world” (Levine & Benjamin, 1997). In the context of the marketing plan, being socially aware is what UrCommunity is striving to achieve. The want for community engagement by this target segment suits UrCommunity vision, and hence, it is one of the main reasons families with children is chosen as the target market. In addition, people who live in this area are concerned in keeping up with the latest home improvement trends, especially with the things that they can do it by themselves without involving too much money to spend (Helix Personas by Roy Morgan, n.d.). In this case, the hothouse kits can be installed in the backyard and can be considered as part of home improvement. Although the cost of the hothouse kits are relatively expensive and families with children who live in this area earn average income, but in comparison to the benefits that the customers are able to get back in return, the price of the kits are quite reasonable and can be afforded with an attractive payment methods as discussed in the marketing strategies later. Furthermore, once the plants grow and there are excess supplies of food produce, customers are able to sell it and this could generate more income in long run. Also, since families with children like being online (Helix Personas by Roy Morgan, n.d.) with a total Internet connection of 75.8 per cent in 2011 (ABS, 2014), it would not be a problem for this target segment to find more information about the hothouse kits online and the basic techniques on how to use them.


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5.2 POSIT IONING STATEMENT Within the category of organic food production with respect to hydroponics and aquaponics, UrCommunity Backyard Food Forests will be better for families with children in Hoppers Crossing area than Just Hydroponics and Simply Hydroponics (direct competitors) and Coles and Woolworths (indirect competitors) for home consumption and self-sufficiency because it offers a system that produces organic food that cultivates self-sufficiency and at the same time, community-oriented.

5 .2.1 JUSTIF ICATION OF POSIT IONING The industry analysis in the marketing plan suggested four industries: food production, hothouse kits (including aquaponics, hydroponics and water systems), community and also knowledge. Based on the four industries, strategies such as complimentary packet of seeds, complimentary workshop sessions, community garden, distribution channel for excess supply of products and attractive payment methods are positioned to target Families with Children. The seeds strategy is positioned for food production, as well as knowledge. For example, when the family receives the free packet of seeds, they are able to try a variety of the organic produce using the hydroponics system. At the same time, the organic element enhances their knowledge on overall organic growing. When the target market needs more information on how to grow produce with the hothouse kits, they can join by signing up the workshop sessions. Therefore, not only that the workshop sessions will help to educate the family, but it could also help the community to engage and interact with each other. Moreover, a community garden has been introduced as part of the strategy to target families with children who live in unit or apartment, but are interested in buying these kits; as it will help the customers who do not have the sufficient land to install hothouse kits. With the excess supply that the systems are able to produce, the families might want to sell their produce in return for money or other produce grown by other community members; works as an exchange system. Also, attractive payment methods have been offered in order to ease the burden of a one-off payment, as not all customers are able to afford the kits. By marketing to specific segment (families with children), UrCommunity is able to position itself as a strong brand, which introduces and instills the self-sufficiency concept among the target market in Hoppers Crossing. Although the presence of competitors like Just Hydroponics and Simply Hydroponics in the same suburb may pose direct threats, UrCommunity may still stay a cut above them as the foundation of UrCommunity that revolves around the community is distinct, unique and hard to imitate. With the knowledge being effectively delivered to customers through sessions of workshops, UrCommunity manages to capture and address all the industries that they are involving. Through database mining and online resources, intensive research in all industries especially the customers segments are possible and deemed critical to successfully formulate the strategies and tactics discussed on the next page.


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6. STRATEGIES AND TACTICS

6.1 STRATEGIC SUMMARY

OBJECT IVE STRATEGY TACT IC WHY HOW WHERE WHEN WHO COST

To achieve a sale of 50 and 100 units of hothouse kits in Hoppers Crossing by year end 31 Dec 2015 and 31 Dec 2016, respectively

Product Compl imentary Packet o f Seeds Customers are given a sample of Buttercrunch Lettuce, Thyme and Cucumber seeds upon purchasing a hothouse kit. (See Appendix A)

To promote and instill knowledge on overall organic growing, and to receive a variety of different seeds to experience growing different types of produce.

Seeds are purchased in bulk from seed savers or companies who stand by the safe seed pledge, guaranteeing that they are not genetically modified or scientifically engineered.

Collection done in person

Year 1 (2015)

Year 2 (2016)

By : Sales team

For : All customers

Year 1 (2015): $260

Year 2 (2016): $520


Product Compl imentary Workshop Sess ions Customers are given 4-5 free workshop vouchers upon purchasing a hothouse kit. Additional fees will be charged for additional workshops.

To educate the customers on the basics on how to grow produce with the hothouse kits effectively and efficiently.

Year 1 (2015) : A venue will be rented to hold the workshops that will operate once a fortnight.

I.e.: Yerambooee Community Centre, Grange Community Centre

Year 2 (2016) : Workshops to be held once a fortnight at the UrCommunity Community Garden.

Vouchers : Collection done in person

Workshop: Rented venue and Community Garden

Year 1 (2015): April onwards

Year 2 (2016)

By : Volunteers or staff

For : All customers

Year 1 (2015): $1,200

Year 2 (2016): -

To achieve a sale of 100 units of hothouse kits in Hoppers Crossing by year end 31 Dec 2016

Place Communi ty Garden Provide a common area for customers to rent a space to set up their hothouse kits, as well as to hold workshops at.

- Serves as a hub for hothouse kits and a secondary hub for UrCommunity Cafe - Provides land for customers who do not have the sufficient land to install hothouse kits - Fosters interaction between community members, building a more self-sufficient community

Rent a plot of land to build Community Garden that comprises hothouse kits.

I.e.: Near the UrCommunity Café

Hoppers Crossing, Victoria

Year 2 (2016)

By : UrCommunity

For : All customers

Year 2 (2016): $76,000


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To achieve a sale of 100 units of hothouse kits in Hoppers Crossing by year end 31 Dec 2016

Place D is t r ibut ion Channe l fo r Excess Supp ly o f Produce Provide an area for customers to sell their food produce every first Sunday of each month.

To allow customers to sell their excess food produce in return for money or other produce grown by other community members.

Customers can sell their excess food produce through the UrCommunity Café or Community Garden, or a rented space at a local farmers’ market.

Collection of the excess food produce will be held every first and third Saturday of each month at the UrCommunity Café or Community Garden. The crops will be redirected to sales location the next day.

UrCommunity Café, Community Garden or rented space at a local farmers’ market

Year 2 (2016)

By : UrCommunity

For : All customers

Year 2 (2016): $390


Price A t t rac t ive Payment Methods Provide customers with various methods in which they can make payments for the hothouse kits.

To ease the burden of a one-off payment.

- Month installments (6 months/ 12 months) - Special installment schemes are given to the first 5 customers of UrCommunity where they only have to pay half the interest for the 12 month installment plan - Free financial consultation on the cost-benefit analysis of the hothouse kits

Online or in person

Year 1 (2015)

Year 2 (2016)

By : UrCommunity

For : All customers

Year 1 (2015) & Year 2 (2016): -


Promotion Membersh ips : Customers can sign up as a member for a price of $50 per year to receive certain exclusive members’ benefits.

To gain benefits such as 10% discounts and bi-weekly updates on events, community, and information on hothouse kits and cultivation techniques through online newsletters.

Customers can sign up through the UrCommunity website or in person upon purchase or the UrCommunity Café.

A membership card (See Appendix B) will be issued and customers will then be able to use the card for the mentioned benefits.

S ign ing Up: In person or online

Updates : Mail or Email

Year 1 (2015)

Year 2 (2016)

By : UrCommunity

For : All customers

Year 1 (2015): $50

Year 2 (2016): $130


Promotion Other Promot iona l Too ls Other promotional methods will be used to attract, inform and advertise UrCommunity.

To increase awareness and educate people about UrCommunity, its cause and products.

Soc ia l Med ia : Facebook page and forums

Persona l Se l l ing : Demos at UrCommunity café/community garden by paid sales team that will be on site

Adver t is ing : Flyers and brochures

Co l laborat ion/Sponsors : - To be Certified by Organic Federation of Australia - B2B: Cafes and Restaurants

All platforms Year 1 (2015)

Year 2 (2016)

By : Sales team

For : All residents in the area of Hoppers Crossing

Year 1: $1,025 Year 2: $1,105

Sales team: Year 1: $73,496 Year 2: $73,496


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6.2 DETAILS OF TACTICS This section outlines the details of the strategies and tactics aforementioned in the strategic summary table. It included detailed elements in the activities carried out within the tactic itself as well as the justification on the suitability of strategy on the target market. The increase in revenue, costs and monitoring strategies are also within the context of this section. It is assumed that the principals are aware that UrCommunity website (www.urcommunity.com.au) is online and necessary website tweaks have to be done to accommodate the primary strategies and tactics discussed below. Besides having time-to-time updates on the ongoing events (e.g. workshops, launch of community garden, membership information etc), plug-ins also have to be integrated to the website for activities like memberships signups and technological communication like UrCommunity app discussed in the internal analysis. It is not included in the detailed explanation of tactics and but it is understood that the UrCommunity website is a crucial asset of the company and serves as the only medium of information as of October 2014. Besides that, it is highlighted that a paid sales team is critical in meeting the sales objectives of the marketing plan. The fact that the presence of sales people during the purchase decision of customers is discussed in several tactics, as shown in the next few pages.

Complimentary Packet of Seeds

Overview This product strategy encourages consumer to explore the potential of hothouse kits to generate a variety of organic produce. The complimentary packs of seed give cues to customers on the variety of fruits, vegetable and herbs that could be grown in the hothouse kits. This is relatively important as the strategy gives guidance to the customers on the choice of crops typically grown when operating the hothouse kits. The seeds provided to the customer are purchased from organic farmers that reassure the quality of the seeds. Purchasing seeds from these organic farmers ensure that customers are able to experience the overall organic farming and consume the produce in a healthy manner. This strategy further instills knowledge of protected farming and organic food production, and act as an educational tool for the parents to teach their children about self-sufficiency and healthy eating habits, fulfilling the objectives of UrCommunity. Appeal to target market Families with children who are health conscious are able to enjoy organic crops. The idea on giving out a variety of crops seeds minimises the risk of unsuitable choices of crops due to the lack of experience in organic farming. Predicted Increase in Revenue Study has shown that increase in simplicity of decision making during sales will increase the likelihood of purchase from consumer (Spenner, 2012). It is predicted that this strategy will increase decision simplicity and therefore contribute to form 5% of the sales, which consist of 2 units in the first year, and increase customer loyalty among customers. Cost The purchase of organic seedlings from the organic seed savers is expected to be $260 in Year 1 and $520 in Year 2. Monitoring This strategy will be monitored through the number of repurchase of organic seeds from UrCommunity. !

Complimentary Workshop Sessions

Overview Purchasing customers will be able to redeem 4 sessions of workshop of their choice upon receiving the complimentary vouchers. The workshops will be classified into different classes (i.e. beginner, intermediate and experienced) to accommodate different customers with different levels of knowledge on the efficient and effective methods on the operations of the hothouse kits. The workshops will be held once a fortnight in the first year, once per week in the second year. These workshop sessions are crucial as UrCommunity strives to deliver the knowledge to customers and at the same time, encourage community engagement, which can be realized through the interactions during the workshops. Customers might even want to share extra knowledge (i.e. homemade remedies) with fellow participants as well as the whole community. Appeal to target market This tactic specifically targets Segment 2, Families with children. The vouchers distributed to these working adults of the family allow them the freedom to select suitable workshop sessions that they could attend. Predicted increase in revenue Study has shown that interaction between consumers or word-of-mouth marketing are very likely to drive website visits and the power of a firm (Luo & Zhang, 2013). Therefore the interaction for the customers during and after the workshop will be expect to form 10% of the sales or 5 units in the first year of operation and 10 units in the second year. Cost This tactic costs $1,200 on community center rental expenses for the first year operation. As workshops will be held in community garden in second year, no additional cost will be incurred to community garden strategy (place strategy). Monitoring The tactic will be monitored via the number of customers who attended the workshops. !


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Community Garden

Overview The community garden will serve as a hub for all events held in the future by UrCommunity in relation to community self-sufficiency. There will be multiple hothouse kits built within the community garden. According to Ben (2013), land availability could be a problem to potential customers when the sizes of houses are increasing, taking up the space for backyard and garden shed in residential area. Therefore, plots will be rented to customers who do not have sufficient land to install the hothouse kit in their backyard. Besides, having a community brand formed through the community garden increases brand trust and therefore brand loyalty (Won-Moo, Kwang-Ho, Minsung, 2011). Client’s relationship to UrCommunity will be shaped and deepened by social interactions amongst members of the community brand when people in the community and customers interact with each other in the self-sustained urban garden. Appeal to target market Families can spend their weekends in the community garden with their children, having recreational, educational and social activities in the community garden. Predicted Increase in Revenue By solving main problems faced by the potential customers and forming strong brand loyalty, this strategy is expected to generate 10% or 5 units of sales in short term. The existence of community garden is expected to generate long-term benefits towards UrCommunity. Cost Rental of Land cost $50,000. Construction and maintenance cost approximately $26,000. Monitoring The effectiveness of this strategy will be measured through 2 indicators, a. The number of visitors to the community garden b. The space of rented hothouse in community garden.

Distribution Channel for Excess Supply of Produce

Overview This tactic provides a platform for customers to trade their excess produce in exchange for additional income or produce grown by other members. It will only be implemented in the second year of operation, as customers require time to grow sufficient volumes of crops with consistent quality. Customers can drop off the fruits and vegetables they wish to sell at UrCommunity Café on the first and third Saturdays of each month. UrCommunity will then sell produce that has been collected on subsequent Sundays. This will initially be carried out at a Local Farmers’ Market to capitalize on the market’s traffic flow. As the café and community garden starts to gain traction among consumers, UrCommunity can sell the collected produce at these places instead. This strategy indirectly promotes awareness of the hothouse kits and consequently increases their sales volume. Appeal to target segment This tactic is well suited for the target segment as they seek for alternative ways to earn extra income. Furthermore, these consumers generally have white-collar occupations with hectic schedules (Roy Morgan Research, 2014), hence they might lack the spare time to dispose of the excess produce themselves. The strategy offers a convenient method to overcome this issue. Predicted increase to revenue Sales of hothouse kits is expected to improve as the sales of aquaponics grown produce will indirectly promote UrCommunity’s hothouse kits. According to past research (Doyle, 2000) awareness is found to raise sales volume, hence it is forecasted that the boost in awareness will lead to a minimum sales increase of 15 units, which is equivalent to $75,000 in revenue. Cost Booth rental at the farmers’ market costs $15 for each day, amounting to a maximum of $390 for a year. Selling excess produce at the café and community garden will not incur additional costs. Monitoring Keeping track of the sales volumes of excess produce at the café, community garden and farmers’ market booth will monitor this tactic.


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Attractive Payment Methods

Overview This tactic offers alternative payment methods for hothouse kits to alleviate consumers from the burden of an upfront payment. Customers can make monthly installments over a 6 month or 12 month period, with an interest of 2 percent per annum and 4 percent per annum respectively. A special 12-month installment scheme with lower interest of 2 percent per annum will be available to the first five customers who sign up after UrCommunity’s official launch. According to Larson (2014), the option of installment plans can boost sales without lowering actual prices. Customers will also be provided with complimentary financial consultation through cost-benefit analysis of the hothouse kits. This will instill consumer confidence in the product and strengthen their purchase intention of the kits. Appeal to target segment The option for flexible payment methods will attract the target segment as they mostly earn average incomes, which they must stretch to cover mortgages and education expenses for their children (Roy Morgan Research, 2014). This tactic will ease their burden of having multiple financial obligations. Predicted increase to revenue UrCommunity will receive interest revenue of 2 percent per annum for the 6-month plan and 4 percent per annum for the 12-month plan. Hence it is predicted that there will be a revenue increase of $1,250 and $2,500 in the first and second year respectively. Most importantly, revenue from the sale of the hothouse kits is expected to improve as consumers are provided with flexible payment options. It is forecasted that this tactic will contribute to a minimum sales volume of 5 units in the first year and 10 units in the second year. Cost This tactic will not incur any actual expenditure for UrCommunity. Monitoring It will be monitored based on the number of customers who enrol in the 6 month and 12 month instalment plans. The tactic will also be evaluated by recording the number of consumers who purchase the kits after receiving financial consultation.

Membership Program

Overview This tactic involves membership subscription, which allows customers to sign up at an annual rate of $50 to be eligible for its benefits. Apart from receiving bi-weekly or monthly notifications of promotions and community events, members are informed about the latest technology regarding hothouse kits and cultivation techniques through emails and online newsletters. The continuous updates serve as a constant reminder, which increases customer touchpoints and creates top-of-mind awareness. Members are also rewarded with a 10 percent discount on organic seeds and individual components of hothouse kits, which are needed for maintenance. This tactic creates a sense of entitlement and builds consumer loyalty by providing an added value for members (Kim, Lee & Hiemstra, 2004). This will in turn increase sales volume of the kits as positive word of mouth is generated. Appeal to target segment As the target audience mostly works in an office environment, they are constantly exposed to computers and Internet access. Furthermore, this specific group of consumers likes being online (Roy Morgan Research, 2014). Hence the tactic reaches out to them effectively through the use of emails and online newsletters. Predicted increase to revenue It is predicted that there will be a minimum of 25 membership signups in the first year and 65 membership signups in the second year, resulting in a revenue increase of $1,250 and $3,250 respectively from the receipt of membership fees. It is also prospected that this tactic will produce sales of at least 5 units and 10 units in the first and second year, resulting in a minimum revenue of $25,000 and $50,000 respectively. This is caused by enhanced awareness and loyalty generated by the membership which leads to a rise in sales volume of the kits. Cost There is a $2 printing expense for each membership card. Hence the cost of this tactic amounts to $50 in Year 1 and $130 in Year 2. Monitoring This tactic will be monitored through the use of UrCommunity databases to measure signup numbers and review members’ activities.


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Other Promotional Tools

Overview This tactic is designed to fulfill the communication objectives in order to meet the sales objectives. The competitive advantage of UrCommunity will be made aware to the community through these promotional tools like social media, personal selling, direct marketing and collaboration or sponsors. Each tool is carefully planned to increase the knowledge of customers on the hothouse kits and gain interests from them. Facebook page will be established as the main online platform with forums running simultaneously that serves as an online discussion area for customers. Existing customers can share the knowledge and experience in the forum as a reference for potential customers and non-customers. In personal selling, demos of small-size hydroponics system will be set up within the proximity of UrCommunity Café and in community garden. Sales team will be present to enhance the purchase decisions of the customers. Flyers and brochures are primary tools of direct marketing flyers will be distributed to homes in Hoppers Crossings and brochures will be placed in UrCommunity Café to communicate with the public. UrCommunity could also seek for collaborations and sponsors from the community or private sector. Appeal to target market As the target market consists of both mature adults and children, information can be made accessible to them through various online platforms effectively and cost-efficient. Sales people are present to persuade the price-sensitive parents on the benefits of having a hothouse kit. Collaborations with café make healthy food available to the health conscious community. Predicted Increase in Revenue It is predicted that through the usage of these promotional tools, the benefits and concepts of UrCommunity will be widely communicated to the target market. The brand awareness generated is expected to form 20% of the sales, which is about 10 units in year 1 and 20 units in year 2. Cost The printing cost for brochures and flyers are expected to cost $975. No cost will be incurred in using the social media as free public Facebook pages are created. The sales department put on a heavy financial burden on UrCommunity, which totaled $73,496. Monitoring This strategy will be measured through a. Page hits and signup members in Facebook Page and forums. b. Sales achieve through personal selling


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7. BUDGET

Year 1 (2015) Year 2 (2016) Revenue Hothouse kits revenue ($) $5,000 per kit 250,000 500,000 Community garden plot revenue ($) $50 per year with $100 joining fee - 3,000 Membership revenue ($) $50 per year per subscriber 1,250 4,500 Interest revenue ($) 2% pa (6 months), 4% pa (12 months) 2,500 5,000 Minus : Cost o f goods so ld ($) 30% margin (192,308) (384,615) Gross Profit $62,942 $128,385 Expenses Product s t ra tegy Organic seeds Prices varied in lettuce, thyme and cucumber 260 520 Rent on workshop $30 per hour, 2 hour session, once per fortnight 1,200 - P lace s t ra tegy Community garden Estimated land rental cost - 50,000 - Design and construction cost Estimated design and construction cost - 20,000 - Maintenance costs $500 per month - 6,000 Farmer’s market booth rental $15 per day, Every 1st and 3rd Sundays - 390 Promot ion s t ra tegy Membership cards Quantity 90 for $180 50 130 Flyers Quantity 1000 for $330 660 660 Brochures Quantity 500 for $315 315 315 Peop le s t ra tegy Sales team 2 sales person per year @ $36,748 per year per person 73,496 73,496 Total expenses $(75,981) $(151,511) PROFIT/LOSS $(13,039) $(23,126)

7 .1 JUSTIF ICATION

In year 1, the revenue mostly comprises the sales of the hothouse kits with side income from the membership and interest revenue. The expense budget primarily focused on the product, promotional and people strategy. Rent on the rented space in the community centre amounts to $1,200 and promotional strategies consume a total of $1,025. The need for skilled professional in the sales department cost UrCommunity $73,496 per year for hiring 2 sales staff. In year 2, almost all the individual revenue sections double as the awareness grows and more customers are purchasing the hothouse kits. The expenditure shifted focus to building a community garden in the place strategy. The land rental cost, design and construction cost as well as the maintenance costs amount to an estimated $76,000, which is almost equivalent to the hefty pay rates of the sales team ($73,496 in year 2). Conclusively, with the implementation of this marketing plan, UrCommunity will suffer a loss of $13,039 in Year 1 and $23,126 in Year 2. It is common to see red figures in the first couples of years for a not-for-profit organisation and social enterprise like UrCommunity but the director’s contribution of $30,000 may ease the negative balance of $36,165 in the 2-year marketing plan.


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7.2 BREAKDOWN OF BUDGET REVENUE 1) Hothouse kits revenue

Estimated sales units Estimated kit price Estimated revenue Year 1 50 $5,000 $250,000 Year 2 100 $5,000 $500,000

2) Community garden plot revenue

Estimated plot rental customers Plot rent Estimated revenue ($) Year 2 20 $50 per year with $100 joining fee $3,000

3) Membership revenue

Estimated memberships sign up Membership price Estimated revenue Continuing revenue from previous year

Total revenue

Year 1 25 $50 per year $1,250 - $1 ,250 Year 2 65 $50 per year $3,250 $1,250 $4,500

4) Interest revenue

Estimated signups Available installment plans Estimated revenue Year 1 10 6 months (2% pa), 12 months (4% pa) $2,500 Year 2 20 6 months (2% pa), 12 months (4% pa) $5,000

EXPENSES 1) Product strategy Year 1 & 2: Complimentary packet of seeds (2g for each crop)

Organic Seeds Per 100g

Year 1 Year 2 Total weight

given Total cost Total weight given Total cost

Category Crops Type Leafy Greens Lettuce Buttercrunch $45 100g $45 200g $90

Herb Thyme Common type $180 100g $180 200g $360 Fruiting crops Cucumber Straight eight $35 100g $35 200g $70

Tota l cos t : $260 $520

Year 1: Rent on workshop Rate Length of workshop Frequency Tota l cos t

$30 per hour 2 hours per session Once per fortnight starting April $1 ,200 *There is no labour cost involved, as the directors themselves, or volunteers who have been trained to deliver the knowledge conduct the workshops.


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2) Place strategy Year 2: Community garden

Estimated land rental cost $50,000 Estimated design and construction cost $20,000 Estimated utility bills per year $6,000

Year 2: Distribution Channel for Excess Supply of Produce

Average cost of booth rental Frequency of sale Tota l cos t $15 per day Every first and third Sundays $390

3) Promotion strategy Year 1 & 2: Membership cards: Exclusive member’s card printed front and back will be given to customers who subscribe the membership programme Flyers: A4 flat flyers, with both sides printed in full colour will be distributed to homes in Hoppers Crossing. Brochures: 4 panels folded brochures, printed both sides in full colour will be placed in UrCommunity café and restaurants in collaboration with UrCommunity.

Membership cards Flyers Brochures Cost per unit Quantity Tota l cos t Cost per unit Quantity Tota l cos t Cost per unit Quantity Tota l cos t

Year 1 $2

25 $50 $0.33

2000 $660 $0.63

500 $315 Year 2 65 $130 2000 $660 500 $315

4) People strategy

Number of sales person hired Minimum wage per year Total cost Year 1 2 $36,748 $73,496 Year 2 2 $36,748 $73,496


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8. MONITORING AND CONTROL

The table below shows the monitoring strategies of the tactics mentioned in previous pages with the frequency of review and the aggregation of responsibilities within the UrCommunity organisation.

TACT ICS MONITORING STRATEGY FREQUENCY OF REVIEW

RESPONSIB IL ITY

COMPLIMENTARY PACKETS OF SEEDS

Monitor through the repurchase behaviour of revisiting customers since small sample of organic seeds are given

Every 6 months UrCommunity Marketing team

COMPLIMENTARY WORKSHOP SESS ION

Monitor through: -Number of free workshops given to customers

-Number of attendees in each workshop -Number of customers signing up for additional workshop sessions

Once per month

Once per fortnight Every month

UrCommunity Management team

COMMUNITY GARDEN

Monitor through: -Number of garden plots rented

-Number of visitors in the community garden -Community surveys to test the awareness of community garden and its value

Every month

Every day Every 6 months

UrCommunity Community Garden project team

D ISTR IBUT ION CHANNEL FOR EXCESS SUPPLY OF PRODUCE

Monitor through: -Sales in UrCommunity café -Sales in Community Garden

-Sales in the rented farmer’s market booth

Every month Every month

Every first and third Sundays UrCommunity Management team

ATTRACT IVE PAYMENT METHODS Monitor through the number of customers who sign up for the different types of

installments plans

Every month UrCommunity Financial team

MEMBERSHIPS Review the member’s activity through the UrCommunity Database

Every week UrCommunity Marketing team

OTHER PROMOTIONAL TOOLS

Monitor through: -Number of Facebook page fans and view of posts

-Number of customers attending the demos -Number of redemption of discount vouchers

-Number of brochures left in café and restaurants

Every week Every month Every month Every week

UrCommunity Marketing and Sales team


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8.1 CONTINGENCY PLAN Contingency plan plays a vital role to reduce the impact of any unforeseen threat and respond quickly to recover the business from disruption to their normal operating routine (Shrivastava, Payal, Kumar & Tiwari, 2012). One of the main tactics discussed in the strategies recommendations is the community garden. The likelihood of having insufficient budget is very high since the overall budget of the community garden is estimated to be $76,000. With the possibility of unable to procure a land in Hoppers Crossing and considering the high impact of the community garden on the overall marketing plan, contingency plan(s) is/are developed to ensure that UrCommunity can still be fully-operational and most important of all, profitable. The summary of the contingency plan is shown as below:

8 .1.1 JUSTIF ICATION OF CONTINGENCY PLAN

With the emergence of rooftop gardening in Mexico, Cuba, Senegal and Morocco, UrCommunity aims to relocate the ground community garden to rooftops of shopping complexes and high-rise buildings if funding is not in favour of UrCommunity. The mission was to transform the unclaimed space on rooftops into productive green space that acts as a rooftop community garden. Rental plots will also be made available to customers who are lack of backyard land at home or simply chose not to operate the hydroponics system at home. They systems will be maintained and regulated by volunteers from time to time to ensure produce growth. The rooftop community garden will also serve as a secondary hub to UrCommunity café where customers including families with children are able to visit the garden. It will only be implemented in Year 2 after sales are becoming more consistent. Sales person will be available on site every Saturday and Sunday to provide potential customers with details and information from the purchase stage to the usage stage. The cost being $30,000 will be used to build safety railing on the ample but open rooftop, the construction and design cost of the community garden and general garden supplies (tools and soil). It is then concluded that even without the resources to have the community garden on ground, UrCommunity will still be able to create a model of community-involvement and sustainable urban horticulture through rooftop gardening.



Place Roof top garden Instead of having a community garden on ground, it is opted to utilise the unused space of building rooftops.

To demonstrate the efficient usage of space, money and time into building a community garden.

The same concept of community garden will be implemented but it is positioned on the rooftop of buildings like shopping complexes and middle to high-rise buildings.

Primary location: Hoppers Crossing Shopping Centre

Year 2 (2016)

By : Sales persons

For : All customers

$30,000


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http://www.emeraldinsight.com.ezproxy.lib.monash.edu.au

Wyndham City Council. (2011). Inquiry Into Liveability Options In Outer Suburban Melbourne. Retrieved October 9, 2014 from http://www.wyndham.vic.gov.au

Wyndham City Council. (2014, August 20). Wyndham Residents Encouraged to Live Lighter. Retrived October 9, 2014 from https://www.wyndham.vic.gov.au

Wyndham City Council. (2014, October 2). Media Release, A New Grants Program To Boost Health In Wyndham. Retrieved October 9,2014 from http://www.wyndham.vic.gov.au/aboutwyndham


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10. APPENDICES

10.1 APPENDIX A

BUTTERCRUNCH LETTUCE

2"g$ams"

www.urcommunity.com.au-


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10.2 APPENDIX B

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MPI Marketing Plan FINAL

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