COMPOST MARKETING

Vincent Tye

Recology Grover Environmental Products

General Manager

Organics Sales Manager

March 7, 2013

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Recology Grover Site

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Initial Observations

Marketing and Sales . . . • Necessary to facility success• Important to approach systematically• Separate but related functions• Integrate with other facility functions• May be separate departments . . . • Or done by one person/team

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Marketing and Sales

• Marketing Defined• The Marketing Mix• The Marketing Plan• Sales Defined• Sales Strategy• Sales Force• Customer Service• Sales Evaluation• Conclusions

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Definition of Marketing

Marketing is the strategic process of bringing products and services to market that fulfill a customer’s value requirements.

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Components of the Definition

Marketing is …

• Integral to strategy• A dynamic process• Customer oriented• Value focused

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The Basic Marketing Mix

• The Four P’s of the Marketing Mix:

Product – products and services offered Place – distribution of products/services Price – adoption of pricing strategies Promotion – marketplace awareness

• Framework for Marketing Plan

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The Marketing Plan

Elements of a successful plan:

• Built on the Marketing Mix framework• Strategically integrated with business plan• Interdepartmental involvement• Addresses the appropriate timeframe• Based on objective market research

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Sample Marketing Mix

Product Place Price PromotionProducts Offered Process Type Pricing Strategies Advertising Strategy

Product Research Inventory Control Volume Discounts Trade Shows

Field Trials/Testing Facility Location Published Prices Product Displays

Product Branding Market Proximity Quantity Discounts Product Give-aways

Bagged v. Bulk Distribution Channels Seasonal Pricing Discount Coupons

Markets Served Specifier Education

Market Research Technical Assistance

Market Segments

Market Share

Customer Share

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The Marketing Plan

Structuring the Marketing Plan:

• Current market analysis• SWOT analysis of current conditions• Long/Short-term marketing objectives• Specific achievement goals• Financial analysis• Evaluation mechanisms

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The Marketing Plan

• Current Market Analysis:

Describe current market conditions: Products/Services Offered Who are your customers Who are your competitors Where are your markets Identify regulatory challenges

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The Marketing Plan

• Current Market Analysis:

Describe current market conditions: Products/Services Offered Branded products Generic vs. Custom Products Wholesale or Retail Products Bagged vs. Bulk

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The Marketing Plan

Branded products . . .o Establish a unique product identityo Connects the product to your companyo Brand name equates to quality producto Assures satisfaction of value perceptionso Name/Logo related to product value

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The Marketing Plan

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Branding Examples

The Marketing Plan

• Current Market Analysis:

Describe current market conditions: Who are your customers What business are we in? What constitutes value? Where are your markets Understand market segmentation

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Custom Blending

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Custom Spreading

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The Marketing Plan

Market Share . . . The percentage of a given market area’s total compost

sales earned by your company over a specified time period. (Breadth)

Customer Share . . .The percentage of a given customer’s total compost sales

earned by your company over a specified time period.(Depth)

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The Marketing Plan

• SWOT Analysis of Current Conditions:

Analyze each market condition:

STRENGTH

WEAKNESSESS

OPPORTUNITY

THREAT

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The Marketing Plan

• Long/Short-term Marketing Objectives:

Broadly define strategic objectives: Briefly describe 2 – 5 year context Specifically define short-term objectives Use qualitative and quantitative terms Utilize the Marketing Mix framework

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The Marketing Plan

• Long/Short-term Marketing Objectives:

Broadly define strategic objectives: Briefly describe 2 – 5 year contextTo establish a marketing and sales presence in the

Willamette Valley wine grape market by the end of calendar year 2014

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The Marketing Plan

• Long/Short-term Marketing Objectives:

Broadly define strategic objectives: Specifically define short-term objectivesTo increase compost sales in Butte County by 5%

by the end of 2014.

Add two major accounts in each sales territory by the end of 2013.

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The Marketing Plan

• Specific Achievement Goals:

Clearly define SMART goals: S – specific goal statements M – measurable goals A – attainable goals R – realistic goals T – timely goals

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The Marketing Plan

• Financial Analysis:

Develop a marketing budget: Must be consistent with business plan Involves input from other departments Include allocations for all activities Create a living budget (reforecasting)

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The Marketing Plan

• Evaluation Mechanisms:

Process for tracking goal achievement: You can manage what you measure Examine progress on broad objectives Primary focus is SMART goals Import sales reports Include mechanisms for correction

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What is Sales?

• Definition of Sales• Essential elements of the Sales process• Focus on specific elements: Developing a sales strategy Deploying the sales force Servicing the customer Evaluating performance

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Definition of Sales

Sales is the integrated process of developing, managing, and executing a mutually beneficial exchange of goods and/or services for value

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Sales Strategy

• Developing a sales strategy . . . Strategy complements marketing plan Emphasizes critical market approach: Market share Customer share Addresses customers’ value perceptions Utilizes Brand identity Promotes benefits of quality compost

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Sales Force Deployment

• Deploying the sales force . . . Knowledge of product and industry Clearly define sales territories Determine methods of deployment Understanding of strategic approach: Focus on strategic target markets Emphasize market or customer share

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Sales Force Deployment

Knowledge of product and industry . . .

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Product/Industry Knowledge Personal Characteristics

Composting Process Honesty/Integrity

Compost Uses and Benefits Confidence

Product Quality Enthusiasm

Regulatory and Safety Issues Acceptance of rejection

Competitors and products/pricing Initiative

Customer’s Industry Persistence

Passion

Eagerness

Servicing the Customer

• Servicing the Customer . . . Prompt responses to inquiries/complaints Accurate and timely proposals Consistent product quality Realistic and accurate scheduling Reliable and courteous delivery system Consistent “after-sale” follow through

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Evaluating Performance

• Evaluating sales performance . . . Initiate sales reporting procedures Develop meaningful metrics Establish regular review meetings Encourage customer feedback

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ANY QUESTIONS?

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Contact Information:Vince Tye

209.830.3001vtye@recology.com