Describe this innovative idea
Currently, people are encouraged to recycle most of the disposable materials such as plastics, tires, and papers. These materials contribute to most of our domestic and industrial litters. After conducting market research, I have decided to start up a plastic recycling business in my neighborhood. In my research, I identified that the increase in the use of plastics, together with augmented awareness in waste management, had increased the demand for recycled plastic products.
Other than filling our landfills with plastics, I will make an effort to recycle these products with the aim of safeguarding our environment and creating job opportunities. My business will comprise collection centers, refining plants, and distribution centers. It will be able to process up to 6 million pounds of waste plastics. The plastics will be collected from around our region. The diverse recycled products will be sold to the residents, local companies, and international companies.
Which segmentation technique you would be used to segment the market? And why?
My business acknowledges the role the marketing team will contribute to its success. I recognize that my market is not homogenous. Therefore, there is a need for me to divide my potential market into several segments. In my initiatives, I will make use of psychographic segmentation.
Through this segmentation technique, I will be able to analyze the state of mind issues such as lifestyles, personality characteristics, interests, attitudes, and motives of my customers. Because the business is going to come up with recycled plastic products such as ornaments, chairs, flower sculptures, and phone cases, psychographic segmentation will come in handy. Both in the local and international market, different consumers have distinct lifestyle patterns.
Thus, I will be able to come up with different products that will meet the expectation of the old and the young consumers in the market. By identifying our potential consumers’ opinions, personality characters, and hobbies, I will be able to determine their impact on our products. Consequently, an understanding of these attributes will enable me to monitor their changes in the future. Through this, I will be able to come up with our consumer profiles.
Which targeting strategy would you be following? And why?
For my business to be successful in our marketing planning, I must choose an appropriate targeting strategy. I must analyze with caution and exact the consumers I wish to influence in our marketing programs. Our target market should share a common need, large enough, be reachable, be responsive, have the means to purchase our products, and should have authority to enter into binding agreements.
Because I will adopt a single segmentation technique, a concentration strategy will be ideal for my business. This strategy will enable me to concentrate all efforts on the identified segment. I will be able to assess the needs of the identified segment and ensure that they are satisfied. This strategy is ideal for my firm because it is a start-up business with limited resources. The use of mass advertising or mass distribution will be eliminated with this strategy. Other targeting strategies are costly for my kind of business.
Who would be your main competitors?
My main competitors will be the established plastic recycling companies and other firms that export un-recycled plastics. These companies include Waste Recycling Group Limited, Veolia Environmental Services, Biffa, DS Smith Recycling, and many more. Likewise, companies that sell products that are not made from plastic but similar to our products will be among our major competitors.
Which differentiation and positioning strategy would you be following? And why?
Because my business will face stiff competition from already established firms, I will be required to adopt ideal differentiation and position strategies. It will be necessary to distinguish my products from my competitors’ products. With the use of price and quality differentiation quality, I will be able to progress in the sector dominated by large firms. I will ensure that my business comes up with quality-recycled products. These products will be sold at a fair price. Through this, I will be able to promote calculative behavior among my customers. In the long term, I will enhance the customer mix and boost acquisition costs.
Currently, marketers have come up with several market positioning strategies. These strategies are meant to enhance the manner in which businesses convey important messages to their consumers. With respect to my business, a competitive pricing strategy will be employed. Because my business will be able to create quality goods, this strategy will be appropriate as I will be able to command better pricing.
What would be your positioning statement?
In every business, a positioning statement is considered as the basis of any marketing plan. In this regard, my positioning statement should be able to identify the target markets and persuade them to have loyalty to my products. As such, my positioning statement will be as detailed below.
EnviroTech is a plastic recycling firm that seeks to create superior, robust, and environmentally friendly plastic goods for industrial and domestic use. Our products are made using 100%-recycled plastics and are not chemically treated. Through our products and services, we aim at enhancing environmental conservation awareness.