Composting Systems 2nd presentation

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Composting systems:
 
Which one is the best to have at home?
Agenda
Home Composting Systems
Interview
Marketing plan
Target segment
Positioning of the product
Marketing Mix
Home Composting Systems
Worms
Biogas
Electrical
Composting Systems use a biologic process to decompose and recycle the organic material from animal and vegetal residues, generating a compost rich in nutrients and humic substances. This compost can be used to fertilize gardens and plants and reduces the amount of organic trash that goes to land fields.
Home Composting Systems
System
Advantages
Disadvantages
Worms
- Very good quality fertilizer;
- Low costs;
- Little place needed;
- Need a proper temperature range ;
- Air circulation needed;
-Some products worms don't like (meat, oils, fats, etc.).
Biogas
-Producesbiogas:electricity
- Does not need oxygen conserving resources;
- Large scale = business and jobs;
-To big for the interior of the house;
- Current models adapts better just to rural properties.
- Viable only in large scale
Electrical
- Smallrestrictiontoresidues
-Transformationoforganicwasteintocompostinjust24h
-Lowoperationcost
-Easyinstallationandoperation.
-Doesnotattractsbugsorinsects
- Expensive compared to other composting system models (avarageof R$ 5.000,00);
- Constant attention is necessary to the level of the material in thereservatory.
Interview
OptionbeforeCost
OptionafterCost
Worms
4
Worms
6
Biogas
2
Biogas
1
Electrical
6
Electrical
2
None
2
None
5
We interviewed 14 people (family and friends)
Age : 20 – 60 years old.
Type of houses : apartments and houses with yards
Results
Which one is the best?
We chose Worms, because it had the biggest number of choices in the interviews after people saw the cost. 
The price the interviewers wanted was too little. The majority wanted a price smaller than R$ 500!
In this context it’s better to sell the Worms. 
We are going to sell 2 versions of it: 
 
 For individual houses
To be shared between houses (like a collaborative/condominium worms 
Target Segment
High consciousness for environment, including composting
House/Apartment Owner/Renter
25/30 years and older
Upper middle class
Position of the Product
What do our target public wants?
 Low prices;
 Clean house;
 Do something for the environment;
 Don´t want to spend lots of time for cleaning the composting system.
What are our advantages in comparison with competitors?
 2 families of products: collaborative houses and single houses/apartments;
 Nice and Intuitive design of our system;
 Guide on how to compost;
 Online support;
 Home delivery;
Marketing Mix - Product
Design
- It is compact. 
 Made of plastic and piled.
 Allows to collect the composting 
 Holes for air.
Place to have at home
 Somewhere airy and with 
 No sun incidence 
 Balcony and backyard with some shadows.
Functionalities and equipment
Comes with the boxes, the faucet and the cover.
 The bottom box is the storage bin with the worm tea collections; 
 The middle box consists on the worm casting (compost);
 The top box is the area with garbage and worms and bedding material;
 Composting guide
 Composting holder
9
Marketing Mix - Product
Models and sizes 
- For individual houses or apartments 
- Small (1-2 people); 
- Medium (3-4 people);
- Large (5-6 people).
 For condominiums and collaborative composting
 Simple (10-15 people);
 Full ( 16-20 people).
 5 different colors: green, blue, black, yellow and red.
 The condos and collaborative bins are bigger and hold more composting than the individual houses ones.
Marketing Mix - Price
Costs
Global price around R$60 (but need tools like a drill) 
3 boxes: Around R$100 in stores
200 Worms: Between R$40 and R$50
Sawdust: 20L around R$13
 
Existing competitors’ prices on the Brazilian market 
Kits between R$ 170,00 and R$ 1.000,00
Selling price
 For individual houses or apartments 
- Small (1-2 people): R$ 150
- Medium (3-4 people): R$ 250
- Large (5-6 people): R$ 300
For condominiums and collaborative composting
 Simple (10-15 people): R$ 550
 Full ( 16-20 people): R$ 850
* based on competition analyses and customer expectations -
 
Marketing Mix - Place
Places to sell
- Full Kit (Boxes, sawdust, worms and guide):
- Specialized gardening stores.
- E-commerce: website owned by the company. 
Why: They can properly cultivate the worms and deliver them to the consumer’s house/apartment according to demand.
- Retail Kit (boxes, sawdust and guide + Worms exchange coupon):
- Supermarkets
- House construction stores
Why: the consumer can buy the retail kit with a coupon with a code number giving him the right to receive the worms at home from the companie’s delivery.
Marketing Mix - Promotion
Communication actions
-Demonstrations: POS and schools.
Wobblers and Stoppers – POS Material
 Digital media communication: facebook page, website with sustainable articles, news, videos, tutorials, guides and e-commerce.
 Partnership with green movements and companies: MovimentoSouResíduo Zero.
 Obtain Certificates: ISO 14001 (given by ABNT).
Marketing Mix - Promotion
How to engage new consumers to begin composting?
First objective: awareness
 - Create a brand associated with a person, place or thing to leverage the recognition and perception, fortifying the brand associated with the cause
 
Final objective: Affect/influence the behavior
- It is a culture issue
It is a long-term investment
Some suggestions: 
-Partnership with government
	Example: “COMPOSTA SÃO PAULO” 
- Online community 
- Experimental programs
- Successful CIM 
- Sampling
- Proactive PR (Public Relations)
- “Opinion leaders” 
	Example: Find bloggers as partners
- Buzz marketing 
THANKS!
Ana Beatriz França
Bruna Carvalho
Camila Torralbo Miningroni
Guilherme Collet
Jan-Hendrik Homburg
Laura Garrone