GreenMatMattress Recycling Solutions

Strategic Marketing Plan Presentation

MKT640 Unit 5 IPEric Braatz

AIUDr. Frank Nolan

4/24/2011

Intro: The Problem

Over 40 million mattresses are disposed of each year in the U.S. (Professional Safety, 2007).

In Los Angeles, many of them end up on the street like this!

Mission Statement

“GreenMat is dedicated to the timely and efficient removal and recycling of unwanted

mattresses, providing the highest convenience to the customer and minimizing

environmental hazards.”

Mattresses cause significant problems in landfills. They• Take up too much space• Are poorly compactable• Do not degrade well• Create dangerous soft-

spots

There is a need for a solution to this problem on a national level (Urethanes Technology International, 2008). GreenMat can help!

This Problem is Extensive

Objectives

Initial year:• Achieve the processing of 500 mattresses per

week• Budget and revenues will be focused on

marketing and expansion• Establish 2 new processing facilities in the Los

Angeles area during the first year• Establish GreenMat as the de-facto mattress

recycling authority

GreenMat is Eco-Friendly

• Springs can be recycled as steel scrap metal

• Polyurethane can be recycled into items such as carpet-backing

• Cotton and wood can be used in recycled paper products

Customer Targets

Los Angeles County which comprises 9.7 million people and 3.4 million housing units (US Census Data, 2009)

The daily turnover rate is still over 1300 units in the county!

Estimated market purchasing power is over $14 million annualy

Organizations: Hospitals, charity and donation centers, junk-hauling companies, and mattress retailers are also viable customers

Competition

GreenMat will seek to enhance awareness about the detrimental effects of irresponsible mattress disposal

No comparable direct competitorsIndirect competitors:• Waste Management• Eco-Haul• Junk-Be-Gone The US waste management

industry has an annual revenue of around $75 billion

Service Features

The components of an average mattress or box-spring are 90% recyclable (White, 2008):• Polyurethane foam• Cotton • Steel• Wood

GreenMat will pick up your old mattress and process it at our recycling facility.

You get the convenience of quick and efficient home pickup.

Your can rest easy knowing that you’ve made a green contribution!

Core Marketing Strategy

Raise consumer awareness and education about the need for this service

Obtain the targeted market share

Not to convince people that our company is the best mattress-recycler, but to convince them that they need to start recycling their mattresses

Marketing MixCommunications & Promotion

The rationale

Television and print advertising, as well as public relations efforts

Increasing public awareness of the environmental hazards and dangers or improper mattress disposal

Television and radio ad campaign will aim to educate and raise awareness and at the same time, associate GreenMat with being the solution to this problem

Articles and editorials in newspapers, magazines, and on the web will discuss the environmental implications of this problem and address how GreenMat can provide the answer

Marketing MixCommunications & Promotion

The message

GreenMat will be positioned as the solution to this environmental and civic problem

The problem has been ignored for so long, simply because there was no good solution

We will be linked with and affiliated with mattress retailers, environmental initiatives, recycling organizations, and civic authorities through our website

Marketing MixCommunications & Promotion

Strategy to measure campaign effectiveness• Tracking studies will be used to measure the

effectiveness of the GreenMat advertising campaigns

• We can ask questions to gauge consumer awareness of the environmental problem mattresses pose in our county dumps and landfills

• The amount of business we experience should be closely related to the success of our integrated marketing communications strategy

Marketing mix: Price

Primary pricing objective will market share oriented

Market share growth and penetration will be of high importance

The mattress recycling service needs to have adequate perceived value in the eyes of the customer• The secondary pricing objective will be

market share stability

GreenMat’s service is primarily transaction-oriented, it will aspire to be a relatively fixed-cost service

Marketing MixChannels of Distribution

Distribution Channel Concerns:• Facilitation of customer contact• Mattress retrieval• Transportation to processing locations• Transportation of salvaged materials to

the appropriate recycling centers

Mid-range goal within the first few years will be to incorporate indirect channels of distribution:• Hauling or moving companies’ fleets

Mattress delivery services• Municipal resources

Marketing MixCustomer Relationship Management

Marketing and communications must be coordinated with a real and perceived reputation of simple, efficient service:• Robust network of distribution

channels• Web presence tied to a customer

database will be maintained• Analysis of customer requests, activity,

and feedback will assist in ongoing planning

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