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-equipment, inventory, and costs

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Industry and outlook

The compost industry is on the rise with the 2008 recession behind us and not a lot of manufacturing companies in the compost market allows for less competition. As stated by USCC Executive Director Frank Franciosi “Our record results indicate that the composting industry is growing and interest in expanding it has never been greater,”. Also with the growth of urban gardening and the need for more organic and healthy foods consumers have begun to grow their own fruits and vegetables. This bodes well for our company since we promote organic materials with natural nutrients for soil development and to help grow organic and healthy foods. With consumers leaning more towards organic foods the need for using natural fertilizer has increased and the market has not seen much new competition. To this end our company takes advantage of two critical needs. First using organic materials to increase richness of soil and give better yields of crops. Secondly to reduce and reuse organic waste which helps better our environment and eliminates food waste. Based on the interviews we conducted this is a growing market with a lot of potential for entry and market share.

Now people have a stronger sense of protection of the environment and are aware of the impact of the environment on society and humanity. In agriculture, the most common chemical fertilizer is inorganic fertilizer. The factory produces these fertilizers. Relevant investigations have shown that the utilization rate of chemical fertilizers is low, and the loss rate is high, which not only leads to soil pollution in farmland, but also causes organic infection to water bodies, eutrophication pollution, and even groundwater pollution and air pollution. Our company respects organic fertilizers. Raw materials for making fertilizers are made of natural materials that are readily decomposed. In this way, our products can meet the needs of consumers and protect our environment.

Target Market

Our company targets average consumers and gardeners who both can benefit from our work. The average consumer can be satisfied knowing that the grocery stores they shop at help to minimize food waste by working with us. The gardeners we sell our product to can be content knowing they are using organic materials to help fertilize the soil they use to grow fruits and vegetables within their gardens. Urban gardens or communal gardens where a group of people use a plot of land to grow their crops can also require large amounts of fertilizer. Our main targeting strategy is for consumers who wish to grow organic produce that do not contain any chemical or synthetic materials. We pride ourselves in being environmentally conscious and give an image of “environmentally friendly” towards grocers who work with us. We also saw a lot of enthusiasm with the concept of recycling food waste and creating organic materials to use for soil enrichment most gardeners we spoke to seem to care about Eco-friendly products and being able to be green on both sides of supply and chain appeals to them.

Market Share

Within the first year we would like to hold from 5-10% of the market share. As we begin the first year we will have a slow start getting our suppliers and materials kick started. Also, we will have to build a manufacturing center where we can begin to make compost. When we gain a foothold in the industry we will look to quickly increase capacity as well as promote our product. There is lots of demand for our product and meeting that demand will require more output of compost. By our second year we look to double our market share to 15-20% our goal being a market share of at least 30% by the end of year 3. We will do this by expanding our market from just Wisconsin to neighboring farm states such as Minnesota, Iowa, and Illinois. Being able to recreate deals with waste management and grocers would be ideal before launching any expansion projects into these states.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93121090

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