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Please use the information in the attached files to finish up Channel and Key resources parts in the Hempcrete Recommendations doc.

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Overall, it can be seen that Hempcrete has various pain points throughout the Business Model Canvas, but some areas can be capitalized on and ca
ied out to help create a successful and fluid business. The customer segment portion has a lot of potentials where Hempcrete can start to do more research and really target/dive into catering to specific demographics. Right now, Hempcrete is aware of the groups that need to be targeted, but it has yet to do so, thus why much of the Customer Segment portion is "red' (pink).
The vital areas in the Customer Segment are where Hempcrete has already ca
ied out first-party data through Lisa's work with Indigenous communities, but the rest of the potential segments have yet to be researched. Customer relationships and Channels are also an underdeveloped and under-researched area of the Business Model Canvas. Hempcrete needs to create solid relationships with renovation companies in order for the potential customer segments to be satisfied. Channels also need to be used, for example, to create a platform that can connect customers and their businesses, if customers can reach their businesses easier, that will be helpful for developing a stronger relationship.
However, as of right now, the only channels being used are not impactful to the customer segments. Hempcrete needs to push its ideas and facts to its customers so they know what the potential possibilities are. The strong area of this Business Model Canvas is the value proposition. Hempcrete has many favorable qualities that would appeal to its renovation segment, it simply needs to let its potential customer segments know about its many attributes and benefit-added values. If Hempcrete does not better utilize channels and customer relationships, it will not be able to either market itself to potential customer segments or trigger more revenue.

Hempcrete Recommendations
Residential Retrofit Renovation
Situation Analysis
Residential retrofit end-user customers differ from other types of customers who would be interested in the usage of Hempcrete. Particularly when it comes to the level of caution needed to renovate their homes whether it is due to historical status or simply age and the weathering that comes with living on the West Coast. Ultimately, this group wants to pursue upgrades and is looking for a product that will complete the “job” of updating their residential home in a sustainable, cost-effective manner (Appendix A). However, the critical ba
iers that stand in the way of this segment adopting the Hempcrete product are the lack of consumer-focused knowledge and awareness su
ounding the material. This is further compounded by issues regarding proper compliance with regulations such as building codes or builder certification status in addition to the cu
ent non-load-bearing applications that are not as common.
The market application of Hempcrete would solve this customer segment’s issues they are experiencing with retrofitting their home to modern standards which they could achieve through the use of Hempcrete panels and/or Hempcrete in place of concretes. Product adoption would be increased with more campaigns designed to develop awareness su
ounding their ease and protection of them in the renovation. Many of the customers who fit this segment along the West Coast are considerably focused on protecting the environment and care about sustainability. An option is to raise awareness in those consumers that can be found through the amount of ca
on its use will actually take out of the environment, therefore benefiting the environment over the use of concrete. By focusing on the positives of Hempcrete, there is the possibility to overcome this customer segment’s critical ba
iers through the focus on the product’s ability to solve their problems.
Overall, these customers are likely to be middle-aged adults who are invested in sustainability due to their care for the environment and have a strong desire to protect their homes from natural disasters and keep their authenticity (Appendix A). There is a contextual issue that can occur which is hindering the potential for Hempcrete to become widely accepted and used in residential construction and renovation. Many consumers confuse Hemp with THC which can lead to them believing that they will get “high” when there is no possibility for that to occur with the use of Hempcrete products. There is also some fear su
ounding the idea that it could be weaker structurally, have less weight-bearing potential, and it will harm the historicness or “charm” of their home. Therefore, creating a good awareness campaign with a focus on increasing usage across the West Coast will help with the segment’s product adoption as they learn the truth about Hempcrete. This can be achieved by appearing at trade shows in the region and targeting well-known “influencers”, end-consumers, in the renovation community of the region.
According to a recent report, the Hempcrete market is expected to increase at an average rate of 8.5% every year between 2021 and 2030 (“Rising Demand and Sustainable Properties," XXXXXXXXXXThis growth is driven by several factors, including increasing attention to the environmental benefits of Hempcrete construction and continuing discussion of relevant government regulations.
One of the primary competitors in the US hemp building industry is named "Hempitecture". They have close cooperative relationships with experienced teams. Furthermore, "Hempitecture" is the "Limestrong Build Hemp Binder” exclusive US distribution (a lime binder formulated for hempcrete construction). The partnership shows that Hempitecture has a reliable and mature commitment to sustainable building materials. From a customer perspective, if this company is the exclusive agency for related materials, it would help increase customer interest, especially when Hempcrete is still in the introduction stage. To differentiate effectively within the industry, Peter and Lisa should focus on highlighting their experience and professional background. For example, developing a well-structured official contact platform, such as a website that emphasizes Peter’s identity as the co-founder of the Nordic hemp building school, a strong
and identity will help him become more trustworthy.
Since people are not familiar with Hempcrete, Peter and Lisa need to market their product to reach the end-consumer segment, as previously described. For instance, they should emphasize the benefits that are most valuable to consumers. According to “The Elusive Green Consumer” (Harvard business review), 94% of people would prefer to choose green buildings compared to others, which means that people are willing to adopt sustainable purchases. As a result, Peter and Lisa could infer that the new trend of being environmentally friendly would be extremely helpful for their implementation of Hempcrete in the renovation segment. Hold a Hemprete demonstration in the building exhibition and
ing up catalogs or videos that explain how this material actually serves a purpose in construction, Peter can highlight its special qualities. These activities could effectively clear up concerns with the renovation, especially stand out their professionalism and advantages, which are perfect for customizing requirements for reflecting the traditional condition of old houses. By boosting
and recognition and revealing the advantages of Hempcrete by holding product demonstrations, Peter and Lisa would not only differentiate themself in the Hempcrete industry but also foster a more profitable business in the long term.
Lisa and Peter are entrepreneurs that are aiming to build a comprehensive system that provides hempcrete building products. Hempcrete is made up of hemp hurds, a binder, and water. Hempcrete can be made on-site by mixing the ingredients at the building located in a fa
ication facility that can include custom sizes and standard sizes. Lisa and Peter's organization has several strengths that include a wealth of knowledge relevant to establishing a business in the hempcrete market. Both Peter ad Lisa has cultural backgrounds that convey credibility and access to stakeholders. The organization has some weaknesses that include not having a large organizational talent infrastructure, weakening the potential growth of the business. Hempcrete offers many functional advantages over competing building materials, such as concrete, and is also environmentally sustainable. Awareness and knowledge of this building material are low in the United States and only a few companies are selling hempcrete products. This is relatively small for the operations with niche markets.
Since hempcrete is an emerging market in the United States, Lisa and Peter need to attract potential customers and demonstrate the advantages of hempcrete over traditional building materials. Lisa and Peter should recruit experienced marketing professionals who have expertise skills in marketing, selling, and operating. As hemp is still a regulated crop to grow in the United States, Lisa and Peter should pay attention to all relevant laws and regulations. A legal counsel can help them to understand and follow all state and federal laws to avoid potential illegal behavior. Lisa and Peter’s cultural background and experience would be a strong advantage to associating with stakeholders, which can be beneficial to develop indigenous communities and European markets, and now must be utilized to implement in the United States renovation market.
In order to ensure a reliable and sustainable supply chain for hempcrete and hemp hurds, Lisa and Peter could collaborate with local farmers to help them produce the raw materials. Also, they can search for some hemp-based companies, then partner with those organizations to maintain a steady supply of raw materials. The organization can take advantage of the opportunities presented by the emerging hempcrete market in the United States. It will help in overcoming the threats and challenges that exist.
Macro-level factors in the market will heavily influence Hempcrete’s diffusion on the West Coast. In addition, climate implications, customer perceptions, and the housing market as a whole will impact Hempcrete. Hempcrete is sustainable and positively contributes to the environment, helping reduce greenhouse gas emissions. This is a favorable climate attribute and can help position Hempcrete positively in the residential retrofit West Coast market. The hemp plant requires less water, fertilizer, and even pesticides to grow, and hempcrete requires less water than traditional concrete to make; making the totality of the production more environmentally friendly. The environmentally friendly aspect plays into the sustainability socioeconomic factor that many West Coast homeowners would be sensitive to, giving Hempcrete a competitive advantage over other renovation construction materials; if marketed properly. As the hemp plant grows, it takes in CO2, Hempcrete can also abso
CO2 from the air, due to its binding agents; both the inputs and outputs create a ca
on-negative product. What is not used of the hemp plant can be used after cultivation as a nutrient for any other crops the farmer wants to produce on the same land, making it a positive contributor to future agricultural growth. The Hempcrete itself can be reused and recycled, helping eliminate waste. These environmentally friendly strengths help Hempcrete position itself in the building and renovation industry. Hempcrete is also much lighter than concrete due to its air pockets and is fire-resistant, helping reduce the risk of smoke inhalation. The light product makes it a favorable material to work with in renovation. The air pockets in the Hempcrete particles help Hempcrete be both earthquake resistant and a thermal insulator, contributing to the fire-resistance attribute; which could be extremely beneficial to homes in wildfire-prone areas that want protection (Schires, 2021) It is also vapor-permeable, creating a healthy indoor environment, also an appealing attribute to renovating homeowners who do not want their renovated home to cause health distress.
In addition to these beneficial factors, Hempcrete is already prominent in the United Kingdom market and has a positive image, helping guide the diffusion of Hempcrete to the states. Hempcrete is approved to be used in the United States for up to two-story buildings. These hemp-material buildings can be produced quickly when the Hempcrete is already cultivated and it takes fewer men to do the job, making renovation fast. In promoting Hempcrete, Lia, and Peter should focus on the sustainability aspects Hempcrete obtains. As noted, Hempcrete is a sustainable product and can promise a “better future”. The United States pledged to reduce 50-52% of greenhouse gas emissions from XXXXXXXXXX, and with Hempcrete being a ca
on-negative product, Lisa and Peter should emphasize its sustainable contribution (Mondaq Business Briefing, XXXXXXXXXXIn addition, President Joe Biden rejoined the Paris Agreement, pledging to reach zero emissions by 2050. Lisa and Peter should also take note of the Green Building Materials Global Market 2023 Report, which reveals that the sector will reach $562.7 billion by 2028; making Hempcrete an incredible product to contribute to this market. (MENAFN, 2023).
The market size is an important socioeconomic factor that Lisa and Peter should be aware of when establishing Hempcrete on the West Coast. The Hempcrete industry is smaller than the concrete industry and the materials are incrementally more expensive; Hemp blocks are 30-40% more than traditional cinder blocks (Peter Presentation). In an already established market that has been functioning for hundreds of years using concrete, Lisa and Peter will need to be aware of the climate weaknesses Hempcrete has. There are multiple aspects that need to align in order to produce Hempcrete, such as; processors, growers, manufacturers, and companies using Hempcrete (The New York Times, XXXXXXXXXXWith Hempcrete already being a small market, the acceptance and diffusion of Hempcrete could be hard to obtain, especially due to the building industry being a conservative market. Increasing interest rates and increased insurance could also halt the acceptance of Hempcrete, many homeowners are not wanting to renovate their homes due to the economic climate (Census Gov, 2023).
Unique Value Proposition
As our initial value proposition, we believe Hempcrete should be marketed as a sustainable, lightweight, and thermal insulator material. This material can satisfy all renovation needs by providing a new sustainable material that ensures protection from natural disaters. Through its dual-purpose qualities, Hempcrete not only will create a long-lasting home but will contribute positively to the cu
ent climate crisis, making it the best alternative to concrete and
ick solutions.
Decision Model
The Center for Marketing and Consumer Insights, CMCI, decision model uses a
Answered 1 days After May 31, 2023


Deblina answered on Jun 01 2023
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