A in depth look at Canopy Growth and their business strategy.

1. BILLY, ANTHONY, ALEX, BENNY, NICK

2. Canopy Growth History
•In April 2014, Canopy Growth became the first cannabis company in North America to be federally
regulated and publicly traded
•First Operated out of the Hershey Chocolate Factory in Smith Falls, Ontario
•Renamed to Canopy Growth Corp in 2015, with only two established brands at the time
•Followed this by being the first firm to include both greenhouse and indoor growing, to acquire a
major competitor, and the first to be listed on the Toronto stock exchange.
•Tweed, one of Canopy Growth’s subsidiaries was the first to introduce compassionate pricing for
patients who can’t afford some of the higher priced products

3. Canopy Growth History
• In May 2018, became the first cannabis-producing company on the NYSE
•In August 2018, Constellation Brands (Corona is a subsidiary, producer of other wine and spirits)
announced it would invest $3.8 billion dollars in Canopy Growth, giving the company a 38%
stake in the company.
•Will expand operations further after the recent legislation to legalize marijuana in Canada

4. Canopy Growth Vision
“Our vision is to be the number one
cannabis company in the world. From
product and process innovation to
market execution and everything in
between, we are driven by a passion for
leadership, a commitment to drive the
industry forward, and above all else,
providing medical and recreational
cannabis consumers the best possible
experience”

5. Leadership Team
Bruce Linton
Founder,
Chairman,
and Co-CEO
Mark Zekulin
President and
Co-CEO
Tim Saunders
Executive Vice
President and
Chief Financial
Officer
Dave Pryce
Vice President,
International
Government
Expansion &
Government Relations
Rade Kovacevic
Senior VP &
Managing Director,
Canada
Ru Wadasinghe
Chief Information
Growth
Ingrid Johansson
VP, Financial
Administration
Ana Gordon
VP, Corporate
Finance
Phil Shaer
Chief Legal
Officer
David Bigioni
Chief Commercial
Officer,
Recreational
Cannabis
Tom Shipley
VP, Quality
Assurance &
Regulatory Affairs
Amanda Daley
Vice President,
Medical

6. Stock Price & Market Cap
•Market capitalization of 11.36 billion
•Revenue: 70.47 million
•Total Cash: 336 million
•Total debt: 684 million

7. Trends and Trend Analysis
•In recent years, there has been many studies involving the health benefits of marijuana in both
the THC chemical and CBD as well.
• THC can help patients have a better outlook on life (depression can be assisted with this)
• CBD reduces inflammation in people who are injured (joint inflammation, joint pain, muscle injuries,
etc).
•It has also been politically more accepting as well as socially
• Many states and countries have legalized the recreational use of marijuana
• More people are accepting of the drug as well.
•Many marijuana companies are also looking to combine their products with soft drinks, alcoholic
beverages, etc.

8. BCG Portfolio
Star ($) - Cannabis
•The cannabis plant is one of their stars, since
it is the plant itself is a well known commodity
with any cannabis company.
? - Alcoholic infusions -
•Constellation Brands (company that owns
Corona) invested $5 billion into the company. In
a recent interview, Bruce Linton expressed
interest in creating alcoholic infusions with
potential partners.
Cash Cow - Oils and gel capsules
•Convenient oils and gel capsules will be used
for medicinal and recreational use - for
anyone that doesn’t want to inhale any type
of vapor or smoke.
Dog - None
•The company is too young and having many
successful products. The current mindset of the
company is that they don’t have any products
they’re looking to “divest” in.

9. SWOT: Recreational Target Segment (THC)

10. SWOT: Medicinal Target Segment (CBD)

11. Product Description- Tweed
•Tweed is one of the most recognized and
celebrated cannabis brands in the world
•Tweed has over ten different strains of pot
including names such as Bakerstreet and Boaty
McBoatface
•Consumers can buy these products in flower, oil,
or capsule form.

12. Product Description- Spectrum Cannabis
•Spectrum Cannabis is an international
medical company
•Simplifies the entire process and make
medicinal marijuana easy to use
•Provides safe doses and ratios for patient’s
needs

13. Competitors
•Aurora Cannabis
• Revenue 18 million CAD v 40 million CAD (Canopy)
• Operates in 18 countries v Canopy’s 8 countries
•GW Pharmaceuticals
• Based in Britain
• Sativex: Mouth spray with world’s first regulatory approval of the medicine
•Aphria
• One of the top cannabis firms in the world
• Market capitalization of $2.63 billion v Canopy’s $11.36 billion

14. Competitors
Tilray
◦ Based in Canada
◦ Highest stock price of any cannabis company with $102.94 (12/3/18) v. Canopy’s
$33.33
◦ Serves in seven countries v. Canopy’s 8 countries
◦ First cannabis company to go public on NASDAQ
◦ Reason why stock shot up:
◦ Partnership with U.S Drug Enforcement Administration for medical research
◦ Tilray will work with the University of California San Diego’s cannabis research center
◦ Tumors

15. What Makes Canopy Growth Better
•Offers different strains of marijuana that customers can take in different
forms
•Offers different doses of marijuana to combat specific medical problems
•Innovative and looking to get bigger and better

16. What Makes Canopy Growth Better
Some of the best infrastructure in the cannabis
industry
◦ 2.4 million square feet of licensed growing
capacity
◦ Appears to be on its way to 5.7 million square
feet in aggregate grow space
◦ Predicted to have 500,000 kilograms of annual
capacity when fully licensed

17. Target Segmentation: Tweed
•The target segment for Tweed products is predominantly males
between the ages of 18-32
•Would appeal mostly to those who are financially stable and have a
decent amount of disposable income
•This segment are not first time users, but rather have some experience
with using marijuana recreationally
•This segment would be early adopters

18. Target Segmentation: Spectrum
•The target segment for Spectrum products is both males and females
for ages 45-65
•Would appeal mostly to those who are financially stable and have a
decent amount of disposable income
•This segment would typically be weary of the product at first but can be
persuaded with more information
•This segment would be late majority

19. Personas: Chad
College student at the University of South Carolina studying
business
Is a good student who receives A’s and B’s in class
Is very social and likes to go out with friends
No longer likes to drink alcohol after because he indulged too
much his freshman year
Prefers using marijuana because it’s more fun and has less
negative side effects
Uses it mostly on the weekends
Feels that there are some health benefits as well as it relieves
stress

20. Perceptual Map (Recreational)

21. Personas: Debbie
Single mom with 2 boys
Works 50 hours a week at a consulting firm in NYC
Enjoys running and used to run track in college
Suffers from joint pain her ankle
Wants to find a something that will relieve the pain and let her
keep “super mom” status
Was recommended CBD tablets by a younger co-worker
Loves the fact that it can be ingested in pill form

22. Perceptual Map (Medicinal)

23. Product Life Cycle
•Growth Phase
•Enormous potential for growth
•Legalization only helps with exposure
•Fusion products can branch into new markets

24. Advertising Funnel

25. Creative Strategy (Branding)
•Health benefits associated with the various strains
and different medical offerings
•The products are used for different purposes, some
are sativa-based while some are indica-based
•Two different brands we concentrated on
• Tweed
• Spectrum Cannabis

26. Customer Journey Mapping Tweed
•Awareness: Chad sees an Instagram post advertising Tweed products
•Consideration: Chad goes to the Tweed website and looks at the various strains
•Trial: Chad decides to buy the variety pack to test out different strains
•Purchase: Chad decides he likes Boaty Mcboatface the most and buys an 1/8 ounce
•Post Purchase: Chad is happy with his purchase because he got exactly what he
wanted

27. Customer Journey Mapping Spectrum
•Awareness: Debbie is told by a young Co-worker about Spectrum products
•Consideration: Debbie goes home and researches CBD and Spectrum
•Trial: Debbie purchases CBD water at the store because she’s interested
•Purchase: Debbie decides to buy Spectrum products because its stronger and more
specialized
•Post Purchase: Debbie’s ankle feels significantly better and she starts recommending
it to her fellow moms

28. Media
•Much of their social media content is not centered around their product
but their brand, in that they concentrate more on what they’re doing
business wise and not the product
•Twitter and facebook strategy is the same, subtle advertising about weed
•Social Media
◦ Twitter
◦ Instagram
◦ Light Facebook

29. Voice Integration
•Create partnerships with leaders in the voice technology market
• Amazon Echo and Alexa
• Siri by Apple
• Google Home and Assistant
• Ex. “Hey Alexa, I need CBD oil”
• Directs the potential customer to Canopy Growth
• Make sure people’s awareness of Canopy Growth brand is high
• Become the #1 medical marijuana company in people’s minds through these strategic
partnerships

30. 4 Zones: Social Entertainment
Canopy can branch out into eSports/Twitch
◦ Weedmaps - online cannabis community for reviewing strains/dispensaries
◦ Weedmaps has sponsored professional Super Smash Bros. Melee
players/tourneys
Paid product placement in advertisements/movies/shows
◦ Boaty McBoatface can make an appearance
◦ Partnership with Netflix

31. 4 Zones: Social E-Commerce
•E-Commerce is an essential part of Canopy Growth’s structure
•Their e-commerce model relies on people enjoying their product and going
to their website to purchase the product
•Could potentially be ethically hazardous to advertise e-commerce options
on social platforms
•Also difficult to advertise the e-commerce options available considering
the product

32. 4 Zones: Social Publishing
•The current Tweed and Spectrum website must be updated to make the
products and availability more clear
•Tweed should also consider utilizing influencers to help advertise their
products
•Youtuber CustomGrow420 has over 1.5 million subscribers
•Partnering with him will spread the word about the Tweed Brand

33. 4 Zones: Social Community
•Get people talking on various social platforms
•Reddit has a page of devout cannabis users and people who like to discuss
the intricacies of weed
•Youtube has a huge amount of followers as well
•Tweed should also keep track of those who have purchased their products
and start a way to advertise and appeal to them

34. Conclusion
•Canopy Growth has two brands Tweed and Spectrum
Health. With these products, Canopy Growth hopes to
target consumers of all ages with their recreational and
medicinal products. Canopy Growth is currently in the
growth stage and it remains to be seen what the
company can accomplish.

35. Questions?