Business Situation
The Looma Project was started in 2015 by Cole Johnson. The Looma project successfully ran an pilot of its in-store video storytelling service with Chapel Hill Toffee in Southern Season.
Now, the Looma project needs to increase the number of specialty retailers (ex. Whole Foods) and specialty food vendors (ex. Loco Pops, Big Spoon) to sign with Looma for in-store video advertising. In order to do this, Looma needs to first build awareness. Then they needs to convince producers to trust them in telling their business story and need supermarkets to trust them in placing displays in their stores that will bring in more revenue for the store and the brand.
Why this Matters
The Looma Project lacks brand awareness as a startup company. It is placed in a small, niche B2B market with a limited target audience. Because The Looma Project’s category is small, it has the potential to place itself as the leading brand of in-store displays. The Looma Project needs to convince producers and stores that their business model does drive sales of targeted products, and they are the brand with the best ability and resources to tell their story. To attract new customers, The Looma Project needs to focus on the value of their product: the increase in sales their product can generate for both producers and stores.
What are the Gaps
One of the gaps is the lack of companies that provide video storytelling services for in-store displays. The market has many companies that can shoot and edit commercials, but little to no companies that are able to tell the story of a company to sit beside the product in-stores.
Traditionally, small businesses are left underserved in the field of advertising agencies. Most advertising agencies are equipped to handle the needs of large brands with large advertising spend budgets. Furthermore, There are especially few companies that work best with specialty food vendors.
What are the Barriers
The Looma Project’s product is a high commitment product for both producers and stores. They are trusting them with their brand image and in-store displays. The Looma Project’s product category of in-store displays is also not a very well-known or established category. It has not been embraced by many brands or stores. The consumers are more likely to deliberate over the buying process and will need to be provided with greater informational content and data that proves The Looma Project’s business model.