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

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4 Market assessment So far, you have studied the marketing environment and should have acquired a better understanding of how competition, legislation, standards, and subsidies influence your business. Now we turn attention to target customers. What do you need to know about them Since customers make or break any business, satisfying them is central to marketing. This section deals with developing a detailed understanding of markets and customers in order to target them and win them in the long-term for your business. It describes what makes a customer; how to categorise them; and how customer attitudes, perceptions and willingness and ability to pay affect your business. Market assessment demands gathering information from current and potential customers on a range of topics. 4.1 Segmenting your market The market for compost is diverse, ranging from farmers with seasonal bulk requirements to domestic gardeners wishing to purchase a small but steady supply of compost year-round. Segmenting provides a way to categorise your customers into groups with similar characteristics and requirements. Markets can be segmented according to: occupation (farmers, nurseries, estate developers, gardeners etc.); location (rural / urban); purchasing power / ability to pay (large cash crop farms vs poor rural farmers); crop type (food, non-food); frequency of compost purchase (frequent, perennial, seasonal); scale of demand: – ‘bulk’ or ‘volume’ markets demanding large quantities but not willing to pay high prices; and – ‘cash’ or ‘value’ markets paying higher prices but requiring less compost. Marketing Compost—Market assessment 39
‘Scale of demand’ can be a useful first step in categorising the market segments. Some examples relating to each market are given in Table 4.1 below. This list is not exhaustive and your research may reveal many more. Bulk/Volume market urban and peri-urban agriculture nurseries rural agriculture viticulture (wine) green space management (parks, zoos, sport arenas) forestry landfill rehabilitation, mining rehabilitation fertilisers/distribution company municipalities Cash/Value market horticulture (flowers and trees) home gardening vegetable gardening hotels and company premises landscaping, land development fertiliser companies (retailers) industrial use (biofilters) Table 4.1: Typical bulk and cash markets for compost or products containing compost Beware of treating segments as homogenous when they are actually diverse. For example, the segment of ‘farmers’ may need to be further divided into: large-scale cash crop farmers; smallholders; and organic farmers. Each may have very different characteristics, needs, attitudes, knowledge, and financial status. Market segments in Karachi, Pakistan Over the years, Waste Busters have developed a niche in three market segments. 50 per cent of the compost market goes to high-value crop growers, such as vegetable and fruit farmers, horticulturists, flower growers, and landscapers. Compost is considered more environmentally friendly than raw cow dung or other manure. 30 per cent of the compost market is home gardens where the compost is sold through nurseries in small bags. 40 Marketing Compost—Market assessment
Page 1 and 2: Sandec: Department of Water and San
Page 3 and 4: Impressum Publisher: Eawag, P.O. Bo
Page 5 and 6: 7 Key principles of promotion 79 7.
Page 8 and 9: 1 Introduction For many years, busi
Page 10: marketing is not a one-off task: it
Page 13 and 14: Create value for customers and buil
Page 15 and 16: Successful compost marketing in Sri
Page 17 and 18: Successful compost marketing in Sri
Page 19 and 20: Chemical fertilisers usually consis
Page 21 and 22: Composting methods Photograph: Jona
Page 23 and 24: 2.4 Basics of market research and m
Page 25 and 26: Data collection in the Palestinian
Page 27 and 28: epresent those of the population at
Page 29 and 30: Choosing appropriate respondents A
Page 31 and 32: 30 Marketing Compost—Background P
Page 33 and 34: 3.1 Competition Competitors are the
Page 35 and 36: Enforced environmental laws as an o
Page 37 and 38: an awareness of the need for organi
Page 42 and 43: 20 per cent of the compost market i
Page 44 and 45: Potential market The potential mark
Page 46 and 47: Willingness and ability to pay A co
Page 48 and 49: Farmers’ willingness but inabilit
Page 50 and 51: 4.4 Quantifying market demand We ar
Page 52 and 53: 4.5 Profiles of market segments You
Page 54 and 55: 5 Product, positioning and location
Page 56 and 57: Various compost brands Photograph:
Page 58 and 59: 5.2 Quality A satisfied customer wi
Page 60 and 61: Photograph: PWEG Quality depends mo
Page 62 and 63: 5.3 Meeting demand through producti
Page 64 and 65: 5.4 Business location Many factors
Page 66 and 67: The farmers pay $ 2.80 per truckloa
Page 68 and 69: This map illustrates a typical situ
Page 70: Once the business relationship with
Page 73 and 74: Production costs include variable c
Page 75 and 76: quality products. You may also find
Page 77 and 78: Terms of payment depend on the impo
Page 80 and 81: 7 Key principles of promotion So fa
Page 82 and 83: Marketing communication methods Wor
Page 84 and 85: 7.2 Promotion in practice Budgeting
Page 86 and 87: use of compost. They can also corre
Page 88 and 89: Getting the wording right The words
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Packaging The main purpose of packa
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Consider developing a simple ‘vis
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Compost Associations Worldwide Comp
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Final comments We asked a number of
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This table compares compost quality
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Annex 3 Examples of market segment
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Template Customer Group: Geographic
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B. Questionnaire for Nurseries in N
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Acknowledgements The authors would
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Bibliography References Some of the
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Kotler, P., Armstrong, G. 2006. Pri
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The authors Jonathan Rouse is an in
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