Individual Report MIS Executive Edibles
tyroneolivemehel
MISExecutiveEdibles1.pptxExecutive Edibles
Concept
Long Beach based marijuana company providing high quality edibles for the best possible taste in the Los Angeles area.
-Legal liability - Legal statewide yet illegal federally, lending to complications selling
state to state
-County to county regulations vary as well as city to city
-Possible crack down by federal law enforcement because of federal illegitimacy
-Branding and marketing - Relatively new product in the market, not very well known
-Customer relations - Customers trust products that they love and new products are
sometimes met with skepticism.
-Better inventory control - Product stocking based on real-time sales information
Challenges
The competition
-Started in 2009
-Owned by Mike Plomgren and Katie Devoe
-One of the first edible companies in California
-Cannabis enthusiast turned business people
Operates heavily in the Southern California area has product in shops from Los Angeles to San Diego
-Wide variety of strains: Indica, Sativa and Hybrid strains.
-Product includes hard candies, gummy bears and caramel bars
-Future: planning to branch out into vapes and joints
-Started in 2011
-Operates heavily in the bay area, but has product in shops all over California
-Product comes in milk chocolate, dark chocolate and white chocolate
-Strains in product: Indica
-One of the largest Edible companies in California
-Won 1st Place in 2nd Annual Marijuana Edible Sesh
Porter’s Model
US
Them
New Market
Entrants -
Substitute Products +
Suppliers +
Customers -
Sells Business to Business and Business to Consumer
Use of MIS to track sales of both B2B and B2C
Advertising
This is the plan
-Implement new MIS database to keep track of customers and sales in order to facilitate marketing and branding strategies as well as better maintain supply.
-Emails will be sent out to customers when a new shipment of their preferred product is in stock. This will allow customers to get the freshest products possible.
-Logo stickers will be placed on bags and containers as well as email correspondence for branding purposes.
-Based on customer preferences and sale dates, products will be restocked appropriately to reduce wastage and increase freshness.
-Legal information will be distributed at the bottom of email correspondences. Customers violating legal procedure will be recorded in MIS system and banned to reduce legal liability.
MIS SYSTEM COST
Microsoft Access database
Estimated cost for building and implementation: $2000
Easily updatable
Estimated maintenance cost of less than $500 per year
Simple to use and maintain without the use of special hardware or software
Financial Data
| 12T | 12 month Pro Forma (Post MIS Implementation) | 5th Year Post Implementation Projection | ||
| Revenue | 29760 | 45000 | 200000 | |
| Expenses | ||||
| COGS | 10423 | 15800 | 35000 | |
| Facility | 1044 | 1300 | 3100 | |
| Inventory Loss | 625 | 150 | 500 | |
| Advertising | 0 | 1200 | 6500 | |
| MIS System/Maintenance | 2000 | 500 | ||
| Transportation | 564 | 850 | 2000 | |
| Total Expenses | 12656 | 21300 | 47600 | |
| Net Gain (Loss) | 17104 | 23700 | 152400 |
Financial Projections
SUMMARY
First and foremost, an MIS system will increase sales by facilitating improved marketing strategies. Customers will be able to get fresh products that they want. Operating costs will also be lowered via better inventory controls. Legal liability will also be reduced by not catering to known violators of new government regulations.
