presentation to ciwmb market development committee for waste diversion through e commerce burnet d...

RecycleStore.com

Delivering Waste DiversionResults through E-Commerce

$$RCPsContract Results for RFP IWM-C2041Prepared for the California Integrated

Waste Management Board

Presented to theMarket Development Committee

Tuesday, September 13, 2005Sacramento, California

Presenter: Burnet D. Brown, MIH

Tuesday, September 13, 2005 MIH - 2

What we’ll cover…

Outcomes and measures Objectives and measures of program effectiveness

Implications for waste diversion

Support for local government efforts

Outcomes Aggregate results

Results disaggregated by RecycleStore manufacturers and areas

Highlight program strategy and elements

Findings and recommendations


Success Criteria and Outcomes…

Key objectives and outcomes measures Increase RecycleStore.com traffic

Measured in hits

Deliver quality buyer referrals Measured by buyer click-throughs and emails to manufacturers

Target high priority buyers Retail mass merchandise buyers Government buyers Individual consumers Any other high value buyer opportunities


What RecycleStore.com does…

Attracts buyer referrals from all over the U.S.and… Delivers them to California manufacturers

…in participating local RMDZs.

Accelerates market penetration of Californiarecycled products... To markets and consumers all over the U.S. and

beyond


What implications for waste diversion?

Dramatically increases the potential opportunities for diverting waste.


How does it help local governments?

It enables the CIWMB to support localgovernments by: Stimulating demand for products made in their local

area

Providing technical assistance (e.g., SEO expertise) Providing free marketing assistance (PR, partnerships) Channeling sales revenues to California local markets Generating positive publicity by…

Recognizing and saluting thecontributions of local Green entrepreneurs


Local Impact: Top Ten Businesses Receiving Buyer Referrals

Rank Manufacturer Name RMDZBuyer

Referrals

1 Wooden Duck Oakland/Berkeley 5,714

2 Plastopan Industries, Inc. City of Los Angeles 3,800

3 Shasta Visions Siskiyou County 1,785

4 Planet Squared, Inc. Los Angeles County 1,766

5 Whit McLeod Arts & Crafts Furniture North Coast 1,763

6 Corrugated Art South San Diego 1,691

7 Fire and Light North Coast 1,435

8 G.T. Water Products, Inc. Ventura County 1,314

9 Signman Signs and More Shasta Metro 1,179

10 EcoWeave Environmental Apparel No. San Diego County 1,157

Total — 21,604

Data covering the period 2001 to June 2005.


Program results quantified…

241% increase in traffic over baseline starting point. From 10,000 hits/month to over 35,000 hits/month. Average of 22,000 hits per month.

Over 400,000 hits generated. Equivalent to 60% of the site's total recorded hits.

Set new record of 35,923 hits in a single month.Delivered 14,671 buyer referrals during contract period.First time expansion into mainstream markets. No longer limited to RCP niche markets.

From “recycled chair” to “Arts and crafts furniture” From “recycled trash bins” to “Lockable security documents containers”


Why mainstream?

Mainstream consumers are not searching for “recycled gifts”.Or “recycled furniture”.Orders of magnitude larger.Why mainstream? Much greater waste diversion opportunity.


Mainstreaming works…RecycleStore Marketing Results: 2003-2004 Hits Per Month

Performance Since Commencement of MIH Marketing Services Initiative

10,000

15,000

20,000

25,000

30,000

35,000

Jun-03

Jul-03

Aug-03

Sep-03

Oct-03

Nov-03

Dec-03

Jan-04

Feb-04

Mar-04

Apr-04

May-04

Jun-04

Jul-04

Aug-04

Sep-04

Oct-04

Nov-04

Dec-04

Hit

s P

er

Mo

nth

241% or 3.4 times increase over baseline starting point.

Earth Day

Campaign


The Wooden Duck

Based in Berkeley, Calif.Recycled wood furnitureOver 100 products inRecycleStore$4 million in annual sales150,000 pieces of furnitureproduced from reclaimedlumber since 1995.


Buy

er R

efer

rals Dramatic growth

#1 beneficiary ofRecycleStore buyerreferrals.

Buyer Referrals Delivered to Wooden Duck


Plastopan Industries, Inc.

Based in Los AngelesMakes waste containers out ofrecycled plastic. Minimum 25% post-consumer. 75% post-

consumer for municipalities (City ofBerkeley). Up to 100% PCR (indoorcontainers only)

30 Products in RecycleStore.Best-selling product is 64-gallonlockable container. $106 each.Only company in the country thatmakes differentiated lockablecontainers.


Buyer Referrals Delivered to Plastopan Industries

3000% increase in buyerreferrals over first year.

3,800 total buyer referrals.

Delivered to Plastopan byRecycleStoreB

uyer

Ref

erra

ls


RecycleStore Delivers Out-of-State Revenues

"In addition to our West Coast sales,RecycleStore.com was responsible

for sales of our recycled metal float-tube anchors in Texas and Alaska.”

— Will Tasto, PresidentSimple Castings

Orland, CaliforniaGlenn County RMDZ


Real sales…

“Last year RecycleStore.comgenerated over $9,000 in sales

for our recycled-contentpromotional items.”

— Sam Straub, PresidentSignman, Inc.

(Signs and Promotional Products)Shasta Metro RMDZ


40%Search

* U.S. Bancorp Piper Jaffray, New Methods in Search Marketing: Contextual Advertising and Other Evolutions (Safa Rashtchy), June 2004

Cost effective results…


Strategy…Mainstream RCPsReposition as high value added productsContinue to grow affinity marketsCategory-by-category phased approachCreate partnerships (specialty, mass, government)Celebrity endorsementPR campaignSearch engine optimization


Repositioning RCPs

High qualityHigh value addedFunctional artHandcraftedValue not commodity


Celebrity Endorsement

I went to theRecycleStore websitethinking I'd be lookingat good intentions, andfound gorgeous,artistic products…

— Actress Mimi Kennedy


PR Campaign…


Partnerships Created…

Retail mass merchandise buyers NMOA, 5000+ member wholesale buyers

QVC, HSN, infomercial and catalog companies RecycleStore portal built on NMOA website for member buyers

Government buyers Executive Orders 12873, 13101- EPA product list Air Force Center for Environmental Excellence

Region IX Environmental Finance CenterEnvironmental Media Association Story placement. Studios. Whole Foods (Celebrity cloth bag).

Green Restaurant Association


What remains to be done…

Complete SEO for remaining RecycleStorebusinesses

Create portal pages to meet professional buyerrequirements

Continue category-by-category phase-in

Qualify RecycleStore companies for EPA productdesignation Channel into GSA and other buyer databases

See final report for full list of recommendations

presentation to ciwmb market development committee for waste diversion through e commerce burnet d...

Documents

california local markets

program results

local area

local impact

quality buyer referrals

local governments

california manufacturers

contract results