business research essay

CA E ANAL I B : CA LINE CHANG

IN D C I N & C EN I A I N Woodchuck USA is a ood products manufacturer speciali ing in customi able gifts such as notebooks, phone cases, and flasks. Their mission, as stated on their ebsite, is to put nature back into people s li es (Woodchuck USA, 2018). The pursue this mission b producing qualit ood products that are made in the United States.

Woodchuck further fulfills this mission ith their Bu One. Plant One. program. Through this initiati e, Woodchuck plants one tree some here around the orld for e er one of their products sold. Since 2015, the compan has planted 1.3 million trees orld ide, and the ha e recentl pledged to plant o er 10 million trees b the ear 2020 (Woodchuck USA, 2018).

Though Woodchuck USA has gro n tremendousl as a compan since its founding, the ant to increase their market share. In this anal sis, I ill outline their business model and discuss direct competitors. Furthermore, I ill address a s that Woodchuck can strengthen their connection ith customers and target a more profitable audience, thus differentiating Woodchuck in this niche, competiti e market.

HE B NE. LAN NE. M DEL The bu one, gi e one model rose to prominence ith the popularit of TOMS Shoes. Since then, man companies ha e adopted the model in attempt to increase the commercial and social alue of their business. This model has helped companies like TOMS Shoes and Warb Parker gro e tensi el , as consumers care about the impact their shopping habits are making on the orld. This concept is

represented b the statistics in the bo to the left. The Bu One. Plant One. model is superior

to comparable models, not onl because it is more unique, but also because of its lo cost. Marquis and Park (2014) assert that ith a bu one, gi e one business model, each compan must charge a premium for their product, find a a to reduce cost, or accept a lo er profit margin in order to co er their additional costs. Ho e er, Woodchuck s campaign is

ell-concei ed; its lo -cost structure has not resulted in price increase or cost cut measures. Trees for the Future (2018), an organi ation that orks to plant trees around the orld, sa s that the cost of planting a tree is onl ten cents. This allo s Woodchuck to maintain its social impact ithout incurring e cessi e costs.

Critics of the t pical bu one, gi e one model suggest that e en though it has helped man companies gro in the past, there is a problem ith long-term iabilit . As more and more companies adopt this business model or something similar, the must find et another a to differentiate themsel es from each other.

T e f g a c c e f a d c d c ed b M e (2010) f 2000

c e ab e e age e g ee .

21% of consumers are interested in a compan s global outreach 3% of consumers feel

that bu ing products made in the USA is a responsible step 2% of consumers

agreed that the strongl support bo cotting companies that act irresponsibl

CA E ANAL I B : CA LINE CHANG

H EA & C M E I The most significant issue Woodchuck faces is that the are in an e tremel niche market ith lo barriers to entr and thus, high competition. The market for indi iduals purchasing customi able

ood products is not large. Ho e er, rising per capita disposable income has pro ided opportunities for small-scale, high-qualit manufacturers, as consumers ha e had greater resources to spend on discretionar items, such as decorati e ood products. (IBISWorld, 2018) A gro ing market for these products also means gro ing participation in the industr . Indi idual consumers can e en turn to ebsites such as Ets to find customi able, ood products. T o e amples of Woodchuck s direct competitors are Autumn Summer Co. and The Wood Reser e. Both of these companies offer a similar product selection to Woodchuck as ell as similar ser ices (e.g. corporate gifting). Additionall , both of these companies plant a tree for e er product sold through their partnerships ith Trees for the Future.

F E GEN INE C NNEC I N I H C N ME Strong competition in Woodchuck s industr ill require them to differentiate themsel es. Though Bu One. Plant One. is a solid start, the increasing number of companies adopting similar models makes it less unique. Thus, Woodchuck must focus on fostering genuine connections ith their consumers in order to attract ne business and inspire lo alt . Generall , bu one, gi e one models succeed b ha ing an authentic stor , choosing the right market, and creating effecting messaging (Marquis & Park, 2014). Woodchuck alread has qualit products and compelling stories, so the should focus on creating effecti e messaging. In the same article, Marquis and Park (2014) also conclude that all the successful companies ith a bu one, gi e one model that the studied ha e an in ol ed, attracti e social media presence. M opinion based on a re ie of Woodchuck s Instagram and Facebook is that their social media platforms are acti e, but not engaging. Social media is an eas , ine pensi e a for Woodchuck to increase its outreach and foster a genuine connection ith its customers. This can be done b de eloping posts that encourage consumers to share the post ith their friends and comment ith personal e periences and stories. Woodchuck could also further this effort b indi iduall responding to some customer s comments, turning social media into a con ersation.

EACHING A C A E A DIENCE Woodchuck should also focus on the business-to-business channel appealing to companies as an option for corporate gifting. Since corporate gifting orders are significantl higher in olume than indi idual orders, this ill increase re enue as ell as get their products into the hands of man people

ho ma not other ise be customers. Woodchuck can start b reaching out to companies that it alread has a connection to, as these companies ould probabl be e cited about supporting them. An e ample of this ould be targeting local businesses or companies ith a connection to the Uni ersit of Minnesota, as Woodchuck has proud, strong roots in Minneapolis and as founded on the Uni ersit of Minnesota campus. Additionall , Woodchuck could reach out to companies that are also passionate about social impact, specificall en ironmental conser ation (e.g. Patagonia).

One thing that is undeniable is Woodchuck s abilit to gro hat as initiall just a craft is no a successful business. No , Woodchuck has the opportunit to gro its market share and reach more consumers b emplo ing more engaging social media strategies and prioriti ing efforts to reach a corporate audience. These recommendations ill inspire customer lo alt and increase re enue, thus setting up Woodchuck USA to continue gro ing and putting nature back into more people s li es.

References

About Us. (2018). Woodchuck USA. Retrie ed from https://go. oodchuckusa.com/about-us

Attitudes To ards Corporate Responsibilit US. (September 2010). Mintel Academic. Retrie ed from http://academic.mintel.com/displa /548107/?__cc=1&highlight

Bu One Plant One. (2018). Woodchuck USA. Retrie ed from https://go. oodchuckusa.com/bu -one- plant-one

Marquis, C., & Park, A. (2014). Inside the BUY-ONE GIVE-ONE Model. Stanford Social Innovation Revie , 12(1), 28-33

One Product One Tree. (2018). The Wood Reserve. Retrie ed from https:// .the oodreser e.com/pages/one-product-one-tree

Promotional Products in the US. (Ma 2018). IBISWorld. Retrie ed from http://clients1.ibis orld.com/reports/us/ie pert/default.asp ?entid=1440

We Plant a Tree for E er Product Sold. (26 Jul 2018). Autumn Summer Co. Retrie ed from https:// .autumnsummerco.com/blogs/autumn-summer-blog/1-product-sold-1-tree-planted

Wood Product Manufacturing in the US. (June 2018). IBISWorld. Retrie ed from https://clients1.ibis orld.com/reports/us/ie pert/default.asp ?entid=396