This is my market plan in Entrepreneurship class.
Please write about for Organization and Operations
-legal structure
-management and operations
-equipment, inventory, and costs
-suppliers.
Industry and outlook
The compost industry is on the rise with the 2008 recessionbehind us and not a lot of manufacturing companies in the compostmarket allows for less competition. As stated by USCC ExecutiveDirector Frank Franciosi “Our record results indicate that thecomposting industry is growing and interest in expanding it hasnever been greater,”. Also with the growth of urban gardening andthe need for more organic and healthy foods consumers have begun togrow their own fruits and vegetables. This bodes well for ourcompany since we promote organic materials with natural nutrientsfor soil development and to help grow organic and healthy foods.With consumers leaning more towards organic foods the need forusing natural fertilizer has increased and the market has not seenmuch new competition. To this end our company takes advantage oftwo critical needs. First using organic materials to increaserichness of soil and give better yields of crops. Secondly toreduce and reuse organic waste which helps better our environmentand eliminates food waste. Based on the interviews we conductedthis is a growing market with a lot of potential for entry andmarket share.
Now people have a stronger sense of protection of theenvironment and are aware of the impact of the environment onsociety and humanity. In agriculture, the most common chemicalfertilizer is inorganic fertilizer. The factory produces thesefertilizers. Relevant investigations have shown that theutilization rate of chemical fertilizers is low, and the loss rateis high, which not only leads to soil pollution in farmland, butalso causes organic infection to water bodies, eutrophicationpollution, and even groundwater pollution and air pollution. Ourcompany respects organic fertilizers. Raw materials for makingfertilizers are made of natural materials that are readilydecomposed. In this way, our products can meet the needs ofconsumers and protect our environment.
Target Market
Our company targets average consumers and gardeners who both canbenefit from our work. The average consumer can be satisfiedknowing that the grocery stores they shop at help to minimize foodwaste by working with us. The gardeners we sell our product to canbe content knowing they are using organic materials to helpfertilize the soil they use to grow fruits and vegetables withintheir gardens. Urban gardens or communal gardens where a group ofpeople use a plot of land to grow their crops can also requirelarge amounts of fertilizer. Our main targeting strategy is forconsumers who wish to grow organic produce that do not contain anychemical or synthetic materials. We pride ourselves in beingenvironmentally conscious and give an image of “environmentallyfriendly” towards grocers who work with us. We also saw a lot ofenthusiasm with the concept of recycling food waste and creatingorganic materials to use for soil enrichment most gardeners wespoke to seem to care about Eco-friendly products and being able tobe green on both sides of supply and chain appeals to them.
Market Share
Within the first year we would like to hold from 5-10% of themarket share. As we begin the first year we will have a slow startgetting our suppliers and materials kick started. Also, we willhave to build a manufacturing center where we can begin to makecompost. When we gain a foothold in the industry we will look toquickly increase capacity as well as promote our product. There islots of demand for our product and meeting that demand will requiremore output of compost. By our second year we look to double ourmarket share to 15-20% our goal being a market share of at least30% by the end of year 3. We will do this by expanding our marketfrom just Wisconsin to neighboring farm states such as Minnesota,Iowa, and Illinois. Being able to recreate deals with wastemanagement and grocers would be ideal before launching anyexpansion projects into these states.
