Case 3 ENTOMO Questions 1020 2024W

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1020 Management Decision Making Case 3 Entomo Farms: Are Canadians Ready to Eat Insects? W26996 (15 marks) Instructions: 1. Your written response is due Saturday, January 27, end of day. 2. Please file your response on Brightspace. Note: Late Assignments: 20% of an assignment mark will be deducted for late submissions. Submissions later than one day after the original submission date will not be marked. 1 Allan Wilson
1020 Management Decision Making Note: Please use point form in your answers. Please use the grid provided. Analysis 1. (1 mark) What is the major hurdle in introducing insect-based CPGs in Canada? The major hurdle is the cultural perception and acceptance of eating insects in Canada. Historically, people in North America have had a strong distaste for insects, described as a “yuck” factor, so consuming them as food was challenging for many consumers. 2. (4marks) We use the PESTEL analysis to identify macro factors that might have an impact on a company’s strategy. For Entomo, which two or three of the PESTEL elements require the company’s attention in conducting its planning? PESTEL element Why do you select this element? - Social - Technological - Environmental - Social acceptance is important due to the cultural distaste for eating insects. Entomo must address the “yuck” factor and shift perceptions towards consuming insects as a sustainable and nutritious food source. - World’s largest food-grade automated farming technology - Given the sustainability benefits of insect farming, i.e., lower land and water usage compared to traditional livestock, highlighting these aspects can support growing environmental concerns and the demand for sustainable products. 3. (4 marks) Who are Entomo’s potential customers, what needs, or interests, do they have that might lead to sales of insect food products? Potential customers Needs or Interests that might lead to the use of insect food products? - LOHAS consumers - Generation Z group - LOHAS consumers value health and sustainability, making them potential customers for insect-based products due to their environmental benefits and nutritional profile. - Generation Z is young, sustainability-conscious, and open to new food experiences, so these consumers are more willing to try insect-based products. Conclusions 4. (4 marks) What do you conclude from your reading of the case and your analysis? Conclusion What case information supports this conclusion - Cultural acceptance is important - Need for targeting niche markets - The historical lack of an insect-eating tradition in North America shows overcoming the cultural barriers 2 Allan Wilson
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