Assignment TakenProduct Design, Marketing Research, Marketing Strategy, Marketing Brochure

Case UnderstandingThe company wants to expand its waste management services to commercial and domestic sources. The volume of waste created by small cities like Bhopal isn’t sufficient for the waste management process to be efficient and financially viable which is leading to overflowing bins and stressed traditional waste management system under the municipal corporation of Bhopal. Therefore, the government has decided to invite under "Waste to Wealth" Scheme and support these companies until they become self-sufficient. In order to break even, waste must be collected efficiently and converted into high utility products which will benefit the society and create a circular economy. The marketing department will have to forge a strong relationship with the customers by creating awareness and making them feel involved in the process. An effective supply chain and innovative products will provide high-value, high-quality products which will improve the quality of life of the society while encouraging sustainable development.

BCS Solution SummaryAccording to market research, Bhopal is developing at a high pace and as a result, the waste generated by the city is skyrocketing which has made the current waste management system inefficient. Many housing and infrastructural projects have been planned in the city which will lead to the high demand for construction material, food, and energy in the future. Keeping in mind the limited land availability in Bhopal and the hazards of landfills, 2 Bin 1 Bag system will be introduced which will lead to segregation at the source which will lead to faster processing of waste. Waste will be converted into bricks, pavers, compost, and refused-derived fuel which will be used in construction projects, farms, powerplants, and kilns. The company will emphasize high-value, high-quality products and services to create a relationship-oriented business that maximizes resource value while minimizing the environmental impact for sustainable development of the society. A two-fold promotion strategy will be employed in which the prior will focus on creating awareness about the need for efficient waste management and creating brand name while the latter will focus on teaching how to segregate and, marketing the product & changes that the company has brought. The marketing strategy at the introduction stage will focus on reliance on existing brand name and trust the company has, keeping prices low by maintaining lean cost structure and selective distribution while promotions build enough awareness that the product enters into growth stage and will be aimed towards the households. In the growth stage, the strategy will evolve to increasing product utility, maintaining high demand, and decreasing lead time. Promotions will more product preference specific and will be aimed towards businesses and institutions. Adaption and innovation of product according to customer needs will extend the growth stage of the product and allow the company to provide maximum utility. The app will be used to maintain transparency with the customer and other stakeholders and improve their quality of life with features like a notification when the garbage collector is at the door, optimized route for garbage collection van, option to buy products made by the company, and to donate to NGOs which are working with us to uplift the marginalized communities. This in turn will make the consumer feel like a vital stakeholder and an integral part of the process and therefore will positively reinforce him/her to adhere to segregation guidelines for the welfare of the society and environment.

Solution

MARKETING STRATEGY

The company’s marketing strategy should be focused on creating awareness and making the customer a key stakeholder by exercising transparency and rewarding the relationship with the help of in-app live tracking of waste and discounts on finished products and amenities.

 

1. Emphasize high value, high-quality products, and services
2. Build a relationship-oriented business.
3. Focus on sustainable development and giving back to the society

 

Mission

Sustainable Waste Management to ensure Economic Growth and Well-being of all Stakeholders by fostering strong institution and strategic collaborations

 

 

Positioning

Green Wealth Pvt. Ltd will position itself as an organization THAT maximizes resource value while minimizing the environmental impact for sustainable development of the society.

Marketing Mix

The company’s marketing mix consists of the following approaches to pricing, collection and distribution, advertising and promotion, and customer service. 

1. Pricing- Creating products from waste is generally more economical than the traditional method and delivers higher value to customers. Therefore, the customer will find it more lucrative and long-lasting.
2. Collection and Distribution- Door service for waste collection by waste picker executive who will deliver it to the regional Waste collection point. The manufactured product can be bought by customers through our app which will be delivered by the executive who visits for collecting the waste.
3. Awareness campaigns and Promotion- A combination of commercials and systems administration will be utilized to expand awareness and permeability for the company
4. Customer Service- Exceptional customer service, reward system, and minimum lead time will be necessary to develop long-term, mutually beneficial relationships with customers.

 

 

Marketing Research

1.     Demographics of Bhopal- Bhopal is one of the growing cities in Madhya Pradesh. Although comparatively small in size, it has a population density with 855 people living in every square kilometer and a total population of 2,390,000 of which 80.37% are literate. The city has a young population that resides in societies managed by resident welfare associations. The ragpicker community in Bhopal lives in slums and work in a hazardous environment for low pay.

2.     Waste produced by the city- As per data released by the Department of Energy Technology, RGTU Bhopal, India, the waste produced by the city consists mainly of a large organic fraction (40–60%), ash, and fine earth (20–30%), paper (9–12%) plastic (12-15%), glass and metals (each less than 1%)

 

3.     Current Waste Disposal and treatment system- Bhopal creates 300 tonnes of waste every day of which 1.8% is segregated. The city has been ranked the second cleanest city in India in 2017 and 2018 by the government but has slipped back in recent years due to the increasing waste produced by the growing city and ineffective waste management strategies. The landfills in Bhopal are overflowing and this has severely impacted the waste collection system.

4.     Current needs of the market- The population of Bhopal is dependent on the major lakes in the city for its water supply and the waste gets into these lakes during rainfall thus causing health and sanitation problems. Bhopal is a rapidly growing city with a number of housing infrastructure projects lined up which has skyrocketed the demand for bricks and energy which is not being able to be fulfilled by the domestic suppliers. The farmers around Bhopal will also enjoy an increased demand as the city grows but the lack of rivers in the vicinity has forced these farmers to use fertilizers to enrich their farmlands which isn’t a sustainable method and deteriorates the soil in the long run.

 

 

Marketing Plan Formulation

Deploy an efficient waste collection and segregation system

The city of Bhopal will be divided into four regions mainly North Bhopal, South Bhopal, East Bhopal, and West Bhopal. Each region will have its own waste collection and segregation system installed thus negating the need of one common landfill by employing segregation at the source where the customer will follow the 2 Bin 1 Bag system under which he/she will beforehand dispose of the waste in the right color-coded bin or bag which they can put in front of their door for collection thus promoting no-contact and safe collection system.

 

The collected waste will then be transferred to the garbage collection point where with the use of machines further segregation takes place if needed and then sent to the prescribed processing plant

 

 

Determine which products can be manufactured from the waste generated and best meet the needs of the market

1. Bricks and paver

The high amount of inert waste (construction & demolition waste, cement, etc) and the increase of spending on housing and infrastructure projects means there will be a high demand for bricks and paver. Sludge produced in sewage treatment plants can be mixed with construction waste to make bricks that are stronger, easier to manufacture, and have more plasticity.

A joint venture can be taken up with the local brick kiln for the production of these materials which can be then used to build civic amenities and new projects.

Sludge can be transferred from the sewage treatment plants which will reduce the load on the burdened sewage treatment plants in Bhopal.

 

1. Compost

The lack of flowing water in Bhopal means that the soil doesn’t get naturally enriched with the nutrients, on the contrary rain sweeps the fertile top layer into the lakes every season which forces the farmer to use fertilizers to meet rising demand.

The organic waste can be converted into compost which can be made available to farmers under subsidy with the help of the government.

Later farmers can also be incentivized to deliver their agricultural waste to composting plants which will lead to economies of scale and hence even lower prices for the farmers.

 

1. Refuse derived fuel (RDF)

The energy needs of Bhopal are increasing as the city grows. Refuse-derived fuel has a calorific value of 3,700 Kcal/Kg which is almost equal to that of coal and releases fewer pollutants upon combustion. Combustible waste like light metal, paper, mops, etc. can be converted into RDF. This RDF can be used in brick and cement kilns.

The government can further boost the production of RDF by passing the directive to make builders send all their construction waste to RDF plants in order to get building permits.

 

1. E-Waste for cash scheme

Under this scheme, households will be incentivized to give their e-waste to us for cash. This scheme will be mainly focused at low- income households. The waste collected will be recycled. Since E-waste is difficult to segregate from other metal scraps, this scheme will incentivize individuals to carry out the segregation at source.

 

 

Promotion and awareness strategy

 The company will employ a two-fold promotion strategy where after opening the first awareness-based promotion strategy will last for 6 months after which we will switch to a blend of awareness and product-based promotion strategy which will ensure long term sustainable growth

 

Awareness-based promotion strategy

• Publicity

News releases to all of the major newspapers will be published and the particular page will be made of recycled paper. This will get high attention and hence lend great credibility and be an excellent way to let all target markets know about this new, innovative business and the solutions it provides.

We will similarly seek publicity on radio, blogs, and television stations with deconstructed advertisements that pokes the viewer’s interest and compels them to search and read more about the company.

 

• Advertising

We will send direct mail and hold awareness campaigns about the hazards of landfills, the need for waste management and sustainable growth, and instructions to segregate waste at source will be shared.

Art pieces made from waste will be made in public places which will indirectly convey the mission of the company and create brand hype.

Collaborations with influencers and NGOs will be undertaken to spread awareness through creative methods like street shows, flash mobs, etc.

 

• Internet

Environmental activists and local influencers will be invited to sensitize the masses about the current situation of waste management in the city. They will hold interviews of communities that segregate waste as a livelihood. The company will utilize its social handles to interact with the masses and periodically hold Q&A sessions.

 

Awareness cum product-based promotion strategy

 

In this phase, we will continue to raise awareness but also reinforce the concept of segregation at source by holding workshops at schools, societies, and offices. The teachers, Residents Welfare Associations, and HR will look after that this is followed through. Organizations that were best able to stick with segregation will gain recognition and certain rewards.

Discussions will be held every month to discuss the AI-driven analytics which will be streamed on all handles and healthy competition between all the four regions will be held and with the help of the government, it will be ensured that these regions undergo proportional sustainable development which would improve the quality of life of the citizens and motivate them to spread awareness themselves.

The promotional strategies in this phase will be:

• Publicity

The company will continue to raise awareness about the need for better waste management and segregation at the source. Benefits of our more innovative products over traditional products and how it is affecting the environment will be talked about. Brands using products made from processed waste will be rooted for which will attract brands to do business with us, not just for the environmental benefits but the customer base that comes with us due to added promotions and word of mouth.

• Advertising

The company will focus on its product differentiation and its USP while highlighting the overall impact it is making on the triple bottom line which will answer questions like:

Social:

1. How effective waste management has uplifted the marginalized communities and has ensured their well-being?
2. How are the stakeholders benefiting?
3. What are the new assets that have been created for society?

Environmental:

a.     How pollution levels have decreased?

b.     How landfills are being depleted and new land is being created?

 

Economic:

a.     Amount of wealth generated from waste?

b.     How much increase in economic growth has taken place due to effective waste management?

c.     How is everyone benefitting from the circular economy?

 

This will be perceived by the viewer that the company is answerable to the public and that he is a vital stakeholder whose efforts are appreciated. This level of transparency and accountability will reinforce citizens to follow segregation guidelines and they will ensure that others around them do the same.

• Internet:

We will continue to have a comprehensive social presence, focus on brand activism, and generating awareness in allied fields of innovation, development, and sustainability.

We will hold Q&A sessions and brainstorming sessions on our handles in order to receive new ideas and come up with innovative solutions while making the followers a part of the process.

• Strong Partnerships:

We will continue to seek and foster mutually beneficial and complementary alliances with manufacturers and businesses where applicable. Target clients who have maintained strong relationships with us will get to advertise on our handles, and conversely, we will be advertising on their handles which will lead to the collective growth of all partners.

 

Marketing manufactured products to stakeholders and other businesses

 

Since every product has a limited life and product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller. Thus, the product life cycle will play a vital role in the marketing strategy.

Introduction Stage: At the introduction stage the sales growth will be slower as it takes time to roll out a new product. Profits will be low or negative. The marketing strategies in this stage will be:

• Reliance on existing brand name and trust while introducing the products.
• Low pricing as the company will maintain a lean cost structure. Focus on disposal of waste in large quantities in order to enjoy lower costs and economies of scale.
• Selective distribution until production is increased and market shows acceptance
• Promotion will be aimed at building awareness of the product as well as hazards of landfills and environmental pollution. Promotions will be more household-focused.

Growth Stage: The growth stage will be achieved when the products are accepted by the early adaptors. At this point will modify our strategies as:

• Maintaining product quality while the research and development department will try to increase the utility of the product.
• Lower pricing will be introduced to maintain steady demand as the supply of waste is ever increasing. Introduction of discounts during the off-season to maintain demand. Lead time will be decreased by maintaining inventory.
• The brand name will have gained a strong recall as one of the most efficient waste management companies. Hence, we will shift to product preference advertising. We will focus more on businesses and institutions in our promotional activities to get bulk demand.

Continuous surveys and feedback- The expectations and needs of the consumer are ever-evolving. Adapting and creating products to their needs ensures an extended growth stage and switching to new products before they enter into the decline stage which ensures that the company and stakeholders enjoy high growth.

 

Using app and technology for quality-of-life improvements

The app will be introduced to maintain transparency where not only will the user be able to track how the waste is being converted into wealth, but also where the wealth is being utilized which will instill a feeling of achievement and of being an integral part of the process.

Users will be able to register and also refer other entities which will increase our reach and will receive data-driven analytics of the impact made by their efforts which will act as positive reinforcement.

The users will be able to track the garbage picker and when the executive reaches their door, they will receive a notification. This will be a quality-of-life improvement for both the user and the garbage collecting executive as the executive won’t have to ring the bell which disturbs all the members of the house.

The garbage collector will put the waste in the right-colored garbage bin which will be installed on the society premises. The bin will have a sensor that will notify the collection van when the bin is full and the van will come to collect the garbage from the bins. This will lead allow the company to maintain a lean fleet of collection vehicles and cause minimum discomfort to citizens while providing high-quality service.

The users will receive reward points for correctly segregation their household waste and will be able to redeem them to buy our products or to donate them to a Non-Government Organization working for the upliftment of the ragpickers’ community. The NGO will receive an equivalent financial donation as to the number of points donated. Areas that have low-income households will also have the E-waste for cash scheme where they can request a collection van to visit them when it comes to waste collection and the collection executive will give them cash for their waste thus incentivizing the low-income groups to personally ensure no E-waste is disposed of incorrectly.

All products manufactured will be sold online on the app itself to avoid unnecessary costs and have a lean cost structure. Industries and projects will have the option to directly chat with our sales executive on the app and thus improving the ease of doing business.

 

Marketing Brochure

 

 

ConclusionGreen Waste Pvt. Ltd. must focus on providing high-quality service and products that lead to the growth of its stakeholders. It must use out-of-the-box marketing techniques to interact with citizens and know what they want and how can the company improve. It is vital that Green Waste build a strong relationship-based business model and ensure that the change brought in Bhopal is highlighted and acknowledged by the stakeholders. It is empirical to be always on the toes and employ new innovations and technology to create maximum wealth from waste in an even shorter period of time. The marketing team must focus on keeping the customer in the loop which will ensure organic growth as the stakeholders will personally take the responsibility to market the services. Healthy competitions at the residency, organization, and regional level to treat the most percentage of waste produced for acknowledgment and rewards by the government will act as positive reinforcement and inculcate the habit of segregation among the masses without external force.