Marketing Plan for Compost in Nepal

INTERNATIONAL Ameri washstand UNIVERSITY PRESIDENTIAL BUSINESS SCHOOL Buddhanagar, Kathmandu A Report on Marketing Plan of Nepal Recycling Company Ltd. In partial fulfillment of the MBA IInd semester project submission requirement Submitted to Submitted by Mr. Sujan Raja ShresthaAshim Shrestha Lecturer, Marketing reduceing Gyanman Bade Niranjan P. Bajracharya Sangeeta Ghale Shreya Joshi As on 21 March 20, 2013 Table of contents I. Executive Summary A. Summary of situation analysis B. Summary of merchandise objectives C.Summary of food marting strategies D. Bud pay summary II. Situation Analysis A. The Industry 1. floor of the perseverance III. Executive Summary Summary of Situational Analysis In create countries, the main motivations for gaga reduction argon frequently related to legislation, environmental protection, the scarcity of sites for landfills, and the risks associated with toxic materials. The same considerations apply in maturement countries to titanic met ropolitan theaters that atomic number 18 subject to many frugal and environmental pressures.Urban centres which do not move over good accruement and disposal systems should not ordinate resources to developing pine away reduction measures until adequate decamp lie withment systems ar in place. For this, or different(a) reasons, solid furious managers in developing countries tend to pay low attention to the issue of reducing entire burn outs which make up from 50 per cent to 90 per cent of the nitty-gritty decamp product generated. Management of solid waste is a emergence commercial enterprise in Nepal as urban population densities increase and flat in operation(p) land is in short supply.Although niggling urban centres were declared to be municipalities2, they suffer from a miss of infrastructural and technical resources to tackle the problem of waste management. With increasing public conscious(predicate)ness about good health and a clean environment, solid w aste management has now come to the moderate of the priorities of the municipalities in Nepal. When the environmental impacts of proposed landfills are being investigated, it is often found that residents discl up issuance up to accept landfill sites near their homes and local leaders from various political parties are often involved in protests against proposed landfill locations.Though the Local Self Governance figure of 1999 has empowered municipalities to take of all timey necessary action at the local level, the absence of elected representatives3 since 1998 has been ca utilize difficulties in its implementation. Even though collection systems are still not in place, most of the municipalities are expressing their propensity to develop final disposal systems. They are excessively promoting waste reduction, utilise and recycle among local communities.Some of the 58 municipalities in various parts of the state of matter of matter are providing effective ho go for-to- p reindication waste collection services and rough are making good progress towards final disposal. For this review, communities and private arena service providers deal been selected according to their present performance in waste reduction. Priority is given to those community- groupd organizations (CBOs) and non- administrational organisations (nongovernmental organizations) that are playing effective roles in waste reduction at source, collection, processing and cycle.Table 1 provides details of the regions and municipalities in Nepal. Where do we stand ? Nepal Recycling Companys area of credit line bequeath be to collect, recycle/ convert, and commercialize waste from municipality waste processing plant lifes for enforce handling as a consumer good. This recycled reaping go out meet twain critical needs 1. It will attend to raft to better manage their constituent(a) fertiliser wastes. 2. It will give municipalities a feasible and cost effective alternative to lan dfilling the waste, and 3. It will dish up meet the exploitation demand for organic foulness enhancers and fertilizers.The material that will be recycled is human waste sludge. Our recycled waste will be targeted toward fertilizer manufacturers, nurseries, landscapers, farthermostmers, government agencies, play courses, and others. All of these potential drop clients will benefit from the converts numerous soil enhancing characteristics. Landfills are filling up and costs of disposal are travel. Also in that location are a lot of problem in managing human sludge. This is a unique and possible concept that addresses the needs of various customers and reaches anuntapped market with tremendous offset potential.One of the most attractive aspects is that the patronage is projected to attain a fuddled c modify position and achieve bring inability in the third grade of operation. Due to a tumid need for these point of intersections and services, and a lack of run competi tion, our projection of quick positiveness is attainable. Research will be an ongoing process for the smart set one particular area of interest is the hazard of qualifying the product as a fertilizer. In this case, the profitability of the product would n primordial double A. Summary of marketing objectives SpecificOur goal of the smart set is to initially promote recycled product as for now compost to the customers bringing about awareness about the use of recycled product in focus the compost against the use of chemical substance fertilizers. We are to capture the market of the compost industry at heart the next two years by providing gamy quality organic composts at the rate lower or imprint to the local rate but cheaper than the chemical fertilizers. We aim to trade our products to large segments local farmers, industrial farmers, golf course and ultimately export the products.We aim at irksome ascend in the profit curve instead than a rapid one. Measurable We aim to take 20% of the market share within the first year and slowly increase to 30%. With the availability of input using human sludge and other organic waste, we are less in operating cost that merits us to sell our product at low cost. We are in collaboration with the government so we dont save to incur any of the patronage line taxes as the industry is currently targeted to social social welfare with a little union of profit. AchievableWe ensure to possess the latest cycle plant and quality assurance team in the industry. We similarly have the trounce marketing professionals to increase our sales event. We currently are running our industry with the check of government assistance as well as different NGO working for the environment welfare, so we have sufficient funds as well are free from different taxes helping us to move at optimal level bringing about profit which is to be reinvested in the same. Also our customers, as Nepal being an agricultural country , we have eas y customers.The only thing our marketing team has to do is to aware the customers about the use of compost and its advantages against the other chemical fertilizers. We are overly in collaboration with government and other NGOs that are working for the environement and the development of the agriculture segment in the country. Summary of marketing strategies. Nepal Recycling bon ton aims to provide composts to customers at a price far way cheaper than the chemical fertilizers being exchange in the local market. Mission Nepal Recycling companys mission is to provide the mellowest quality composts .WE exist to attract and wield local farmers and agro-industrialist. When we attain the most of the market share, we tend to move towards profit maximization and go towards globalization of our product through brand. Marketing Objectives * improve the local farmers perception on compost uses and its advantages * Increase the substance of compost market share in the country * Maintain a slow ascend profit margin * To educate the country about waste management and the advantages of organic wastes Target Markets * Local farmers * fertilizer manufacturers * nurseries * landscapers * government agencies * golf coursesMarketing Mix Nepal Recycling Company is comprised of the following approaches to pricing. ,distribution, advertising and promotion and customer services. * Pricing The cheapest high quality compost in comparison to other chemical fertilizers * Distribution The products will be fabricate in the recycling plant while the selling will be done with the help of agriculture retailers and government aids. * Advertising and promotion We will require advertisements , gross sales promotions and government references to local farmers through different agricultural banks and NGOS working for the welfare of the agriculture. Customer Service The customer service in the context of our product will be to educate sight different learning regarding the use of compos ts against the chemical fertilizers . And as well educate about different agriculture information II Situational Analysis The Recycling Industry 1. History Recycling has been a common practice for most of human history, with recorded advocates as far back as Plato in 400BC. During periods when resources were scarce, archaeological studies of ancient waste dumps show less household waste (such as ash, rugged tools and pottery)implying more waste was being recycled in the absence of new material.In pre-industrial times, there is evidence of scrap bronze and other metals being collected in Europe and melted down for perpetual reuse. 4 In Britain dust and ash from wood and coal fires was collected by dustmen and downcycled as a base material utilize in brick making. The main driver for these types of recycling was the economic advantage of obtaining recycled feedstock instead of acquiring virtuous material, as well as a lack of public waste removal in ever more densely populated are as. In 1813, Benjamin Law actual the process of turning rags into shoddy and mungo wool in Batley, Yorkshire.This material combined recycled fibres with saturated wool. The West Yorkshire shoddy industry in towns such as Batley and Dewsbury, lasted from the early 19th century to at least 1914. Industrialization spurred demand for inexpensive materials aside from rags, ferrous scrap metals were coveted as they were cheaper to acquire than was virgin ore. Railroads both purchased and sold scrap metal in the 19th century, and the growing steel and automobile industries purchased scrap in the early 20th century.Many substitute(prenominal) goods were collected, processed, and sold by peddlers who combed dumps, city streets, and went door to door looking for discarded machinery, pots, pans, and other sources of metal. By World War I, thousands of such peddlers roamed the streets of Ameri bottomland cities, taking advantage of market forces to recycle post-consumer materials back into industrial production. 5 drunkenness bottles were recycled with a refundable deposit at some drink manufacturers in capital Britain and Ireland around 1800, notably Schweppes.An official recycling system with refundable deposits was establish in Sweden for bottles in 1884 and aluminium beverage senss in 1982, by law, leading to a recycling rate for beverage containers of 8499 percent depending on type, and average use of a glass bottle is over 20 refills. (The above mentioned details are abstract from wikipedia. com ) Current Scenario Some people dump their organic wastes into farm so that they get some fertilizers for their agriculture. eyepatch the papers, plastics are burnt and metal scraps are stored.But people have started selling the papers ,glass , plastics and metal scraps to the people coming to house doors collecting for it. The so called khaali sisi bottle wallas pay a small amount for the wastes they take in. They collect wastes in Brobdingnagian quantity and are exported to India where they get recycled and new products are produced in turn and sold to Nepal again in expensive prices. As population is soring up in the urban areas with the amount of human sludge and other wastes such as papers, glass, plastics and metal scraps.As the area for land fills are being filled up and there are no more places . The human sludge is instantaneously dumped into rivers and ponds. The organic wastes from homes are also located into nearby open places. The country has not go towards the concept of recycling and very few companies are into the Go parkland concept and use recycled products from other sources. Also there are small companies who collect waste materials such as paper, glass, plastics and metals , but are taken to India for recycling. The products are then distributed from India only. Growth PotentialThe potential for the growth of the recycling industry is very high and flexible. With the availability of waste materials as input, the ind ustry can grow soon and the products as well can be sold easily as the nation is also moving towards Go jet plane concept. As products such as fertilizers are becoming very very expensive, the compost produced from the industry can be of a great use viz price and quality. As chemical fertilizers are also continuous depleting the soil quality, the organic fertilizer or compost can help the farmers into their productivity. So there is a great potential for growth.Also with the growing number of other industry such as plastic, glass(esp. bottlers companies, brewery and distillery ), metal industries, the availability of mad materials can reduce their operation cost and provide the people of Nepal with cheaper products and also help the economy of the country by exporting recycled products because the whole population is using recycled products. Nepal Recycling Company History Nepal Recycling Company was established in 2012 AD . Its aim is to help the country in rising the economy a s well as the management of waste materials.It recycles waste materials and helps manage the wastes and puts the country to a cleaner environment. While producing recycled products, it can help boom countrys manufacturing industries roviding products in the form of raw matireials or finished goods. Scope of business There is a big eye socket of this business to bloom. The products for the company for now compost and recycled papers have a easily reachable market. It would take some years to capture the market for both the compost and the paper industry.Compost can be packed as a branded fertilizer and papers can be manufactured as high quality materials and sold in the same brand. The compost is readily required for every farmers so there is a huge probability for it to flourish in the market. While paper products markets can be made to the same organization from where the waste papers were brought from. Current state and growth The company so far is in its growth stage. It is stre ssful to capture the market share providing the highest quality compost in the country.There is a grasp for the company to grow to earn huge amount of earnings and also establish itself as a brand product and also mark up as an international quality product. Due to the growing concept of organic products, there is a huge amount of market sustainability . Profitability The company currently is operating at low profitability rate . Its capital has been gained from government funds and other donors. So, the main scope right now of the company is social awareness and to capture the market. merely the company will focus on increasing the profitability within the next 4 years.Competenece in various areas Strengths Starting a business in the recycling industry proves to be a profitable business because the potentials still remain untapped and it is an evergreen niche. recycling itself is a ample niche and making substantial profits from a recycling business in a country like Nepal wher e waste management is a impossible thing. We have plenty of waste materials that can be used as input for our plants. The human sludge which at present is dumped directly into the rivers can be directed directly to our recycling plants.We can also charge money from the home consumers for taking in their organic wastes. The recycling business will prove profitable because there is a high demand for recycled products from manufacturing companies who are looking to drive down production costs, since using recycled packaging materials is cheaper than acquiring new ones. Challenges * It is capital intensive but can be started on a small scale. * High cost of recycling equipments and machines. * It takes massive amount of effort to gather waste local sites and other places.However, you can choose to outsource this process while concentrating on your message competence which is recycling. SWOT Analysis Strengths Weakness 1. subaltern price2. Environment Friendly3. Low resource consumpti on4. Less garbage in the society 1. Unavailability of Machinery2. omit of Human expertise in recycling 3. People may not accept this product if we do not rightly market it. 4. lack of markets for collected materials5. lack of funding for recycling6. poor participation by residents in material collection. Opportunities Threats 1. Employment Opportunities2. Demand Supply Gap, creates a room for our business3. buy power of the people will be increased so they will favour our products. 1. Firms may react on this establishmentand may negatively affect ourprofitability and sustainability Potential Marketing Problems The country has 90% of the population making up a living on agriculture. With increased demand and competition, people have started using their productivity using chemical fertilizers.Educating people on the use of organic fertilizers such as compost on the current scenario can be difficult. With people wanting more productivity, it can be a hefty task to make the people sw ift over to composts. With people into traditional farming, they have their own methods of organic composts and which is free of costs to them. making them buy the same feature products with a price will take a heavy amount of risks. As well, the government is providing chemical fertilizers at very subsidized rate . The government itself can resist the sale of our product .