PBG BioPharma: Cannabis Consumer Health Market Entry Preparation

The cannabis industry in Canada has experienced unprecedented growth since the Cannabis Act came into effect in 2018. It is widely expected that cannabidiol (CBD) will be classified as a food and natural health ingredient in Canada, the European Union, and other jurisdictions in the near future, which will open up a significant market. In 2023, Dr. Jacqueline Shan, the CEO of PBG BioPharma, made a long-term strategic decision to enter the cannabis consumer health market by launching a series of CBD consumer health products once the cannabis regulations in Canada are relaxed. In preparing to launch its own consumer product line, PBG BioPharma is developing its marketing strategy and analyzing potential challenges in managing its supply chain.

This case can be used in any marketing, supply chain management, or strategy course at the undergraduate or graduate level. It illustrates the following key concepts: target market selection; marketing distribution intensity strategies and marketing distribution channels; business-to-business (B2B) to business-to-consumer (B2C); challenges in supply chain management for a firm under transition; and supply chain considerations for manufacturers, suppliers, and retailers. After working through the case and assignment questions, students will be able to do the following:<ul><li>Use different criteria to evaluate and choose the suitable target market for a company’s new product.</li><li>Analyze the advantages and disadvantages of various marketing distribution intensity strategies.</li><li>Analyze the advantages and disadvantages of various marketing distribution channels.</li><li>Analyze challenges in supply chain management when launching a new product line.</li><li>Make suitable recommendations regarding distribution intensity strategies and marketing distribution channels.</li></ul>

• cannabis
• CBD
• pharmaceutical industry
• marketing strategy
• supply chain management
• transitional business model