Marketing Compost (EAWAG) - The Water, Sanitation and Hygiene

Successful compost marketing in Sri Lanka
In Sri Lanka three composting ventures (a business, a university and a
community project) have succeeded in securing good markets for compost
for different reasons:
the business invested heavily in a skilled marketing team, which worked
over many years to develop the market;
the university has come to an arrangement with an agricultural company,
which buys, handles, markets and transports all the compost.
communities found a local market, and generated demand by word of
mouth and demonstration projects.
An essential part of business planning
It is essential that any prospective investor (public or private-sector) considers
marketing as part of the feasibility assessment. Market research can help you
understand your position in the marketplace, your potential customers and
your competitors. A market analysis may reveal that you have a market ready
for your product as it is. It may identify that you need to make changes to your
strategy and production in order to secure a market. Sometimes, however, it
will reveal that there is no market for your product. Knowing this before investing
can save you the losses of a failed business.
Marketing should not be seen as a one-off activity or something just for new
businesses. Markets can change over time, and your business will need to
use marketing to keep abreast of (or better still, ahead of) changes and ensure
you are targeting the right people with the right product and promotion, at the
right price.
A particular need in low and middle-income countries
Revenue from sales of compost is particularly important in low and middle-income
countries where subsidy and tipping fees are much less readily available
than in Europe or the United States. In Europe, composting plants charge
a fee to all commercial enterprises dumping waste (e. g. tree surgeons and
gardeners), which is slightly lower than the cost of dumping waste in landfills.
This is backed up by legislation, which encourages (or makes compulsory) the
recycling of ‘green waste’. Therefore, in some cases compost can be given
away free because tipping fees cover all costs. Nevertheless, these composting
plants are increasingly selling their products, as the market for ‘eco compost’
develops. Few such situations exist in low and middle-income countries,
so costs need to be covered by sales, generated through marketing.
16 Marketing Compost—Background