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

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This map illustrates a typical situation in an urban setting and denotes households, farmers, nurseries, and vegetable markets. The decentralised composting plant is located in an urban location surrounded by houses. The organic waste originates from households and a nearby vegetable market. Households buy the compost directly from the plant or from a truck, which drives through the neighbourhood once a month. However, household demand is limited. The nurseries, located along a main road around 2 km from the composting plant, require larger volumes of compost, often at short notice. Since many households buy plant seedlings directly from the nurseries, nurseries could act as retailers for your compost. The peri-urban farmers, located very close to each other along a stream, use its water for irrigation. As their demand is of seasonal nature, a fixed distribution date should be arranged with several farmers to significantly minimise distribution costs. Finally, the vegetable market could serve as a transfer point for compost; farmers who come to the market to sell their products could return from the market with trucks full of compost. Such a map portrays the combined customer profile sheets developed in Section 4.5 and provides them with a geographic context. Annex 5 contains a map developed for a compost market study in Nepal (full report: www.sandec.ch). 5.5 Distribution channels A market map can also help optimise transport routes, for example facilitating delivery to more than one household during a single trip. The distribution network should be marked on a separate map to keep the maps as simple as possible. Figure 5.5 illustrates three common distribution methods: direct distribution, through sales agents (in-house/external), indirect distribution. Sales agents may include nurseries, retailers at vegetable markets or shopkeepers. Bulk buyers include potting soil producers, fertiliser companies, mining industries, landscapers etc. Many compost producers claim that selling direct is important because contact with customers provides important feedback for the business and product development. However, retailers can offer benefits to your business because of their specialist knowledge of the agricultural and horticultural marketplace. Marketing Compost—Product, positioning and location 67
Direct distribution Indirect distribution Producer Producer Producer Sales Agent Bulk Buyer Fertiliser company with retail branches Customer Customer Customer Figure 5.5: Compost distribution models You need to consider whether retailing compost yourself or using another specialised company is the most appropriate option for your business. The following case study from Bangladesh illustrates some of the pros and cons of direct sales to individuals and distribution via bulk buyers. Distribution of compost in Bangladesh Waste Concern produces many tonnes of compost each week in central Dhaka. The market, however, is mostly based in rural areas far from Dhaka. The staff appreciate the importance of marketing in order to shift their product and generate profits. The market for Waste Concern’s compost falls into two main categories: Low-volume sales to individuals. These are often middle-class households purchasing compost for their gardens. Selling price: Tk10/kg. High-volume sales to MAP Agro, a private chemical fertiliser processing company. Selling price: Tk2/kg. MAP Agro buys around 300 tonnes of compost from the NGO every month. They blend some with chemical fertilisers and sell it to Alpha Industries, an agricultural distribution company. Although Waste Concern stands to make more net profit from sales to householders, there are various advantages to selling at low-price/highvolume to established agricultural companies. These include: 68 Marketing Compost—Product, positioning and location
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Sandec: Department of Water and San
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Impressum Publisher: Eawag, P.O. Bo
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7 Key principles of promotion 79 7.
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1 Introduction For many years, busi
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marketing is not a one-off task: it
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Create value for customers and buil
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Successful compost marketing in Sri
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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 40 and 41: 4 Market assessment So far, you hav
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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 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
Page 90 and 91: Packaging The main purpose of packa
Page 92 and 93: Consider developing a simple ‘vis
Page 94: Compost Associations Worldwide Comp
Page 97 and 98: Final comments We asked a number of
Page 99 and 100: This table compares compost quality
Page 101 and 102: Annex 3 Examples of market segment
Page 103 and 104: Template Customer Group: Geographic
Page 105 and 106: B. Questionnaire for Nurseries in N
Page 107 and 108: Acknowledgements The authors would
Page 109 and 110: Bibliography References Some of the
Page 111 and 112: Kotler, P., Armstrong, G. 2006. Pri
Page 113 and 114: The authors Jonathan Rouse is an in
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