Live Local Alberta and the

Good Food Box case

Leo Wong, MacEwan UniversityGordon Lucyk, MacEwan University

Case Summary

Live Local Alberta is a nonprofit organization, focusing on three areas (Eat Local, Dine Local and Shop Local)

Started in 2010 as a social enterprise, providing home local (and organic) food delivery ordered online

Competitors include farmer’s markets and The Organic Box

Case Summary

Product – large assortment including seasonal fruits/vegetables, meats, dairy products, non-perishables (sauces and jams)

Place – website including information about the product, producer, photo of food and online payment; delivery occurred between 3-6 days from time of order and delivery made by truck

Case Summary

Price – standard mark-up on wholesale prices (comparable to farmer’s market prices); sales revenue covered half of operating costs while the rest of the funds came from grants/loans

Promotions – mostly word-of-mouth and via other internal programs

Case Summary

Staffing included a project manager, warehouse operator and two truck drivers

Principal, Jessie Radies, maintained relationships with producers and filled in when needed

Case Summary

Two Key Issues for the principal of GFB, Jessie Radies, to consider:

Marketing – What additional market research activities should be taken to examine revenue growth potential?

Strategic Management – In what direction should the Good Food Box pursue growth?

Teaching Note – Case Level

Case is composed of primary and secondary research, conducted for the organization by the primary writer in 2011. Additional material on demographics and market trends provided by secondary writer.

No information is disguised.

Appropriate for undergraduate and graduate (MBA) courses.

Teaching Note – Suggested Courses

Marketing ResearchConsumer BehaviourMarketing Strategy

Strategic ManagementSustainability and Social ResponsibilityNonprofit Management

Teaching Note – Learning Objectives

1. Understand the importance of market research in decision-making and provide students with the opportunity to propose/assess the utilization of market research tools which can aid in the decision making of the organization.

Teaching Note – Learning Objectives

2. To examine strategy development and direction in a nonprofit social enterprise.

3. To provide students with the ability to propose and justify potential major shifts in the strategy of the organization with respect to its primary target market.

Teaching Note – Subject Areas and Concepts

Marketing Research:Research DesignExploratory and Descriptive ResearchWillingness-to-Pay

Teaching Note – Subject Areas and Concepts

Marketing:Branding (multiproduct branding vs multibranding)Pricing strategies, premiums and incentivesLogistics and Supply ChainSegmentation criteria

Strategic Management:PESTELMarket-Product Growth Matrix (Ansoff)

Teaching Note – Suggested Questions

Marketing Research:1. What type of research problems could a series of surveys focus on now?2. Are there any areas ignored by the research that needs to be addressed?3. How could you examine which type of incentive to offer at which food order amount level?

Teaching Note – Suggested Questions

Branding:1. What impact does the name The Good Food Box have for its customers? Do customers associate The Good Food Box with Live Local, and is it necessary to have this link? 2. Are there any issues with having the same name as the Toronto Good Food Box, which has a different target market and offering? How can The Good Food Box differentiate its model effectively when people are searching the Internet?

Teaching Note – Suggested Questions

Strategic Management:1. How is the Good Food Box going to expand their customer base?2. Should management look at a major shift in strategy or minor changes to improve their sales outlook?

Teaching Note – Flow

Suggested use: 75-80 minute class period

Open the case by providing a brief discussion of the food industry in Canada and some of the recent trends occurring in the supply of food, including Buy Local movements, organic food demand, and other market trends (10 minutes).

Start to discuss some of the questions which need to be addressed.

Any Questions?