Organigram Navigating the Cannabis Industry with ‘grey Knowledge’

Executive Summary of the Situation Analysis

Organigram Navigating the Cannabis Industry with ‘Grey Knowledge’

Along with the legalization of recreational cannabis in Canada, Organigram is facing challenges in order to enter this tempting ($5 billion in the base case and up to $22,6 billion if include the ancillary market) but mysterious market and at the same time to maintain a balance between its medical and recreational business.

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However, based on the research of Canadians’ opinion on the legalization of recreational cannabis done by Deloitte in 2016, about 36% of the population was still opposing on that as they were concerned for the health impact. This indicates that Organigram or even the whole new industry may face resistance from the public, so caution and careful tactics for entering the market is very essential to acquire public acceptance and remove their misconception on the unhealthy image of cannabis. Once the industry is accepted by the majority, it will favor all the firms, including Organigram.

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Besides, within the people who desire to

Buy recreational cannabis, according to

Deloitte 2016 research, most Canadians are

still preferred to purchase cannabis in

pharmacies. This illustrates that their

perceptions on recreational cannabis is actually

not much different compare to those medical,

and not to say being identical to alcohols or other leisure consumptions. [pic 3]

As a result, when all other market competitors are focusing on scaling up by M&A and based on the potential

customers’ preferences research done by EY, it would be great for us to take some different things, be it focusing more on promotion or more effort on designs of derivative products. On

one hand, this can tackle the demand for education of this immature recreational cannabis market, of which a positive brand image can help us to gain the market share. On the other hand, this can utilize Organigram’s differentiator which is organic production to have a clear positioning. Therefore, the key question here is ‘How can Organigram construct a positive image in the recreational cannabis market by promotion and products?’