We have clearly defined our target markets and have differentiated ourselves by offering a unique solution to our customers' needs. The primary focus of our marketing strategy must be to increase sales and profitability business quickly. This can be achieved by face-to-face contact, and an effective publicity and promotion campaign.
Our value proposition is two-fold.
The competitive edges we have are summarized as follows.
The marketing strategy is the core of the main strategy:
Our promotional strategy will be two-fold: first phase promotion will focus on before, during, and six months following our opening; the second phase of promotion will deal with the long term. The purpose of the first phase is to assist with rapid market entry to ensure early and sustained profitability. The purpose of the second phase is to ensure long-term growth and help propel us toward achieving our goal of expanding state wide and across the Mid-Atlantic region.
First Phase Promotions
Second Phase Promotions
For municipalities seeking an answer to their waste disposal problems, Mid-Atlantic Recycling is the service of choice and trusted strategic ally who gives them a cost effective solution.
For users of fertilizer and soil amendment products, Mid-Atlantic Recycling is a dependable provider of low cost and consistent high quality compost products.
The going rate per ton for compost is $50 and up. This price is low enough to ensure rapid growth in the market yet still provide a very healthy profit, given that we have no direct competition and chemical fertilizer is much more expensive. This is possible because we are on the front end of the industry growth in this region.
However, according to the West Virginia University Cooperative Extension Service, we may be able to analyze and register our material as a fertilizer. In that case the price per ton will be in the $100 per ton range — still well below the rate of $250 per ton charged for manufactured chemical fertilizers; given this scenario, the sales figures below are very conservative.
Additionally, we will be priced at market rates for the waste disposal service we offer to municipalities. Tipping fees are generally $15 and up per ton. Additionally, we will charge competitive skid box rental fees and transportation costs.
Mid-Atlantic Recycling's sales strategy is relatively straightforward. Get the word out about our products and services to potential customers, educate them as to the value added by our products and services, and the product/service will sell itself.
Our present management team will become the main sales force when operations begin. Mid-Atlantic Recycling's sales force will increase as business demand permits. In the first six to twelve months of operations, our sales team will focus its efforts on municipalities, fertilizer manufacturers, farmers, small nurseries and other related companies. The team will promote the products based on their environmental strengths and extended duration. Mid-Atlantic Recycling will use other channels of selling after the first year. Face-to-face contact and direct mail selling are part of the selling plan.
The table below outlines the sales forecast and cost of goods sold. The forecast is based on reasonable sales projections within this very large market.
An additional revenue stream will be the collection and removal of sawdust, wood chip, and bark from the International Paper Company on a full time basis; the contract for this work has been won. The sawdust materials collected will be used in the composting process.
The high growth is based on our plans to expand by increasing operations in Monroe County and placing similar facilities in other areas of the West Virginia. We anticipate that by 2005 we will have two such facilities and by 2006 we anticipate having four. Thus our sales forecast doubles in each of those years.
The following table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.
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