Background

Local hemp products development company Quattro-Canna Holdings has signed a licence agreement with hemp processing equipment developer, Canadian Greenfield Technologies, to manufacture the HempTrain decorticator plant, designed for mass-processing of hemp straw- bales into bast fibre, hurd and green microfiber (GMF), in South Africa.

The HempTrain will be manufactured in Pondoland, near Mthatha, in the Eastern Cape, and service centres will be established throughout the country. The HempTrain produces high-valuebast fibre, hurd and GMF – the raw materials for various downstream industries, including textiles, construction materials, food, animal care, personal hygiene, cosmetics and pharmaceutics.

The HempTrain will also provide opportunities for entrepreneurs to set up facilities throughout South Africa and offer processing services to local farms.

For the hemp industry to grow in South Africa, downstream industry partners need assurance that there will be a reliable supply of quality raw materials that can be easily integratedinto their current manufacturing processes with minimal disruptions. The HempTrain will play an important role in the value chain by ensuring sufficient local processing capacity, giving farmers assurance that their production will have a market.

Along with the Eastern Cape Rural Development Agency, Quattro-Canna Holdings shares the view that South Africa needs to cultivate 250 000 ha of land to establish the required critical mass to persuade downstream industries to adopt hemp into their manufacturing processes. This acreage would yield nearly 1.5-million tonnes of biomass, requiring 278 processing plants for the South African market. In the new processing segment of the hemp value chain alone, about 3 000 new permanent, well-paying jobs could be created.

Quattro-Canna is headquartered in Sandton, Gauteng, and is involved in cultivation operations in partnership with Pondoland-based stakeholders who currently hold a hemp research permit and plan to cultivate 1 000 ha in 2021 once the new permits are issued by the Department of Agriculture, Land Reform and Rural Development. In partnership with Crafted Hemp Farms, Quattro-Canna has established Route 420 Holdings to offer extensive services to emerging hemp farms in the Eastern Cape. Route 420 will be able to provide seeds, hemp cultivation and harvesting expertise,

capital equipment, finance and access to processing capacity with the HempTrain and access to downstream markets.

Canadian Greenfield Technologies sold a HempTrain Technology & Business License to Quattro- Canna Holdings, which allowed the company to manufacture and distribute HempTrain technology and equipment within theirdelineated territories. The $5.35-million royalty-free licence covers South Africa, where the hemp industry initiative is rapidly gaining strength. Canadian Greenfield Technologies will provide technicalsupport to Quattro in establishing the base for growing the HempTrain business.

Source: adapted from: South African company to manufacture hemp product machinery in the Eastern Cape Date of access: 08/12/2021

INSTRUCTIONS

Using the above case study, you will be required, in this individual assignment, to undertake three different phases of marketing research. These phases include desktop research, qualitative research and quantitative research.

Kindly take note of the following:

• This is an individual assignment

• Your research project should be presented as a professional document. Please use the following technical guidelines:

• Font Arial 11

• 1.5 line spacing

• Page margins 2.5 cm left-hand sided and 2 cm all around

• The document must be justified (blocked).

• The different research phases must be clearly numbered.

• Please think critically and creatively during the different research phases.

• NB: Your assignment will be checked for plagiarism, and marks will be subtracted if thesimilarity index is too high.

●       The submission date is 14 NOVEMBER 2022 BEFORE 13:00. NO LATE SUBMISSIONSWILL BE ACCEPTED.

Phase 1: Desktop research                                                                                                                                 [25]

Gain a better understanding of Quattro-Canna Holdings and the HempTrain. Investigate the international hemp industry, explicitly referring to the African and South African hemp industries. Conduct desktop research using a variety of different sources to critically assess HempTrain, as well as the South African hemp market. You must write between four (4) to six (6) pages. Concerning HempTrain, the written section should contain the following information:

• A brief overview of Quattro-Canna Holdings, HempTrain and its business philosophy

• Different products manufactured by HempTrain (internationally and nationally)

• Overview of the marketing mix that HempTrain currently uses

Concerning the South African hemp market, the written section should contain the following information:

• Size and growth of the market

• Competitive landscape (major role players)

• Consumer trends

• Opportunities and challenges in the market

During this phase, you must quote the sources used correctly in text and the reference list. Include a reference list at the end of your assignment. Please use the Harvard style for references in the text and the reference list. For more guidelines, please consult the NWU Referencing Guide (available on the library’s webpage and uploaded on eFundi) or the library staff to help you in this regard.

Phase 2: Qualitative research                                                                                                                                 [40]

Quattro-Canna Holdings wants to generate deeper insight concerning downstream industries’ attitudes towards the marketing strategies used and their level of effectiveness concerning the HempTrain. Quattro-Canna Holdings also wants to determine whether downstream industriesare aware of the HempTrain, what consumers think about the quality of the local processing capacity, whether they are likely to adopt hemp into their manufacturing processes and why andhow to distribute their products in South Africa. You advise Quattro-Canna Holdings to use focusgroups.

• Plan how you would execute these focus groups by considering the following operational aspects:

• The number of focus groups you propose to conduct and why.

• The exact composition of participants for each focus group (number of participants, participants’ characteristics, etc.) and why you select these compositions.

• How you will recruit and select focus group participants.

• Where you plan for the focus groups to meet and why.

• Whether you plan to offer incentives to participants, and if so, which type(s).

For each of these operational aspects, clearly motivate your reasons for choosing a particular action.                                                                                                                             (20)

• Design a discussion guide for a moderator to use during the focus groups. When designing the discussion guide, pay attention to the following aspects:

• Instructions to the moderator explaining the purpose of the research and how to use the discussion guide (for example, different symbols and numbering used in the guide to indicate which questions can be asked directly to participants and when the moderator should probe).

• An introduction section that the moderator reads to participants (moderator’s name, why the research is being conducted, permission to audio record, rules during the discussion, and how long the discussion will last).

• Participant introduction.

• Warm-up questions.

• Different sections to address the objectives set during Phase 2. This should include projective technique(s) and clear instructions to the moderator on how to use these technique(s). Include visual aids you plan to use during projective technique(s).

• Indicate the time the moderator should spend on each section in the discussion guide.

Think practically when drafting the discussion guide, keeping in mind the type of information thatQuattro-Canna Holdings requires.

Phase 3: Questionnaire design                                                                                                                                 [35]

Quattro-Canna Holdings wishes to collect quantitative data from South African downstream industries.

• Identify a suitable target audience for this study and motivate your choice. Furthermore, explain how you would go about gathering the data. (5)

• Design a questionnaire for Quattro-Canna Holdings to use in a survey. Make sure that the questionnaire, its design and flow, the questions asked, response formats and types of measurescollect data that will achieve the following set objectives:                                                                                                                       (25)

• Compile a detailed demographic profile of the respondents.

• Measure South African downstream industries’ perceptions of the quality of the products produced by HempTrain.

• Measure South African downstream industries’ brand loyalty towards the HempTrain.

• Determine South African downstream industries’ preference for different advertising mediums used to market HempTrain.

• Determine the patronage habits of South African downstream industries’ (in terms of what raw materials they buy, where they currently purchase their raw materials, how much money they spend on raw materials, would they be willing to adopt hemp into their manufacturing processes, etc).

• Measure South African downstream industries’ likelihood of adopting hemp into their manufacturing processes.

• Determine South African downstream industries’ intention to purchase HepmTrain’s products on offer.

• Make sure that your questionnaire includes a cover letter. Keep in mind what the objectives are, and make sure that your questionnaire addresses these objectives.

END OF ASSIGNMENT

MARK ALLOCATION FOR THE PROJECT

• The assignment counts for 40% of your total participation mark

• The assignment counts a total of 100 marks, which are allocated as follows:

Phase	Marks	Assessment criteria
P1: Desktop Research	25 marks	It is between 4-6 pages long.   Contains all the information requested.   It is coherently written and well structured   Provides the reader with a clear understanding of the industry.   Provides the reader with a clear understanding of Quattro-Canna Holdings.   Integrates different topics seamlessly to read as a whole.   Demonstrates the ability of the student to critically reflect on different sources and formulate their own opinions and arguments.   Quotes a variety of different accredited sources and correctly referenced in the text, aswell as in the reference list.
P2: Qualitative research   Operational aspects	20 marks	The planning of the focus groups is clear and can be implemented practically.   The student provides sound reasoning for choosing a particular course of action in accordance to the operational aspects provided.
Discussion guide	20 marks	The discussion guide drafted is a professional document that is drafted in accordance with the guidelines provided.   The discussion guide addresses the research objectives set for Phase 2.   The discussion guide is practical and can be used by a moderator to conduct the focus groups.

P3: Quantitative   Data gathering	5 marks	Identified target audience and clear data gathering guidelines
Questionnaire design	25 marks	A variety of different response formats and scales are used.   The questions asked, response formats and scales used achieves the set objectives.   The flow of the questionnaire is appropriate and well structured.   The instructions and questions formulated are clear and simple.   Items adapted from other studies are clearly indicated at the end of the questionnaire and in the reference list.
Cover page	5 marks	Research introduction   Purpose of the survey   Sample (How did you select me)   Motivate to participate (incentive)   Guarantee anonymity and confidentiality

TOTAL 100 MARKS

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