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

Promotion strategy in Saonar, India
The manager of a composting plant in Saonar had to overcome several
barriers before he could establish his product in the market. For many
years, farmers in the area had been making excessive use of chemical
fertilisers and struggle to afford the initial capital required to switch
to organic practices. Furthermore, he faced competition from another
well-known brand.
The manager used a number of strategies to overcome these difficulties.
He sells his compost at the very competitive price of $ 40 per tonne.
This is just $ 5 more than its production cost, but less than half the price of
his main competitor.
The compost is marketed locally in convenient 40 kg bags.
About 20 per cent of the total sales are made direct to farmers by Mr
Bhalarao himself. He personally visited the farmers and personally explained
to them the disadvantages of chemical fertilisers and the longterm
damage they can do to soils.
The remaining 80 per cent of sales are made via agents and agricultural
retailers. They distribute pamphlets and receive 20 % sales commission.
The retailing company offers free home delivery and cash discounts for
prompt payment.
Finally, the compost is also sold to farming co-operatives, agricultural
universities, government agencies, and plant nurseries.
The manager plans to work in partnership with larger companies in the
agricultural supplies market to benefit from their extensive and effective
marketing networks and direct contacts with farmers.
Adapted from Harper in Ali, 2004
7.1 Communication: The key to promotion
This section is about how information and positive messages about compost
can be communicated to customers to stimulate demand.
Communication channels
There are many ways to communicate with customers, each suited to different
segments and marketing budgets. Table 7.1 describes a selection of methods.
80 Marketing Compost—Key principles of promotion