Marketing Strategy - Reed Based Biofuel Briquette Introduction This reports sets out to explain the Marketing Strategy in support of the production of a Biofuel Briquette produced from reed that has been cut and removed from nature reserves as part of their management cycle to manage the habitat and maintain and enhance biodiversity. The report is structured into five sections as detailed below 1. Unique Selling Point 2. Competition Analysis 3. Target audience 4. Branding 5. Suggested price point 1. Unique Selling Point (USP) The key benefit of a reed briquette is that the reed has no other use, indeed, it requires resources to dispose of. This presents a number of USPs around which this marketing strategy has been built. These are: Does not impact on other land use (food or fuel debate) Support for wildlife conservation and biodiversity Support wildlife management that reduces the effects of climate change Is a product that has value to the consumer in terms of heat production Does not contribute to an ‘up the line’ carbon foot print Does not contribute to a ‘down the line’ waste issue Given the USPs of the product, the marketing strategy focuses on how these can be exploited given the key reasons that consumers choose to buy green products. These are: Good value Social status - being seen to purchase and seen to consume Good for us Moral licence – They can use more if the product is better for us/the environment The importance of a ‘trusted’ brand plays a key role in perceptions of whether a product is actually green 2. Competition Analysis There are a number of biofuel briquettes on the market for sale on locations ranging from large DIY stores, local convenient shops, fireplace and stove specialists and online retailers. Brands range from locally produced, cheaply packaged to highly professional mass produced products. Most of these products claim to be ‘green’ by the simple fact that they are biofuels and some are produced from waste. However, little information is provided as to the true environmental characteristics of these brands. Nearly all are made from wood. 1 The Reed Briquette has a number of immediate advantages over the competition: Genuine, evidence based and traceable feedstock supply Made from reed, it has a faster return on the carbon cycle than wood based products Waste produced from habitat management, 2nd highest on the hierarchy of sustainable biomass for energy Association with trusted brands: RSPB and Wildlife Trusts Social status of supporting charities and the environment Competitive pricing As an alternative to other purchases in store (for example a reserve shop), the reed briquette has a value to the consumer as a provider of heat and does not contribute to climate change or waste Table 1: Competing brands Manufacturer Straws Ltd Product Straw based briquette Costs £7.50 for 6 Comments Produced form straw Bulk discount available Homefire fire log Retailer Online and through network of small retail e.g. petrol stations Poundstretcher B&Q Home Fire Fuels £2 each £4 each or 5 for £15 Liverpool Wood Pellets Hard wood briquette Volcano Wood Fuels Online Store £2.16 each pack of 6 £1.66 each pack of 12 Recycling Resources Hot Blocks Recycling resources online store Maisemore Apiaries Ltd BeeKind Wooden Briquettes Bobs Blox Wooden briquettes online store £0.42 each (£5) pack of 12 £4.75 for 10kg bag wood fines and fibers and slack wax* 20% moisture content Designed to create instant fires not for sustained heat production 6 briquettes = 10kg Free delivery Bulk discount available Waste (hard)wood from Furniture making Pallet (soft) wood Discount for bulk purchases Costcutter, Walkington £5 for 12 Bobs Blox Firewood £90 tonne Made from wood chip. No origin given Bulk discount available 8-10% moisture content Wood based, no origin given. Local producer (potentially reseller) Average value provided by the Small Wood Association. In reality, Wood fuel values and quality are highly variable * ‘Slack waxes are minimally refined high oil products derived from [dewaxing] lubrication oil’ (http://irmwax.com/wax/slack/index.asp) 2 3. Target Audience The product’s key point of sale will be reserve shops and through the partners’ online presence. In these locations, competing briquette brands will not be present but firewood sales may take place. The ideal customer will be those who already support nature conservation and are happy to spend money when they can see a return on their purchase, i.e. do not want to spend money on souvenirs or membership (less visible and/or deferred gratification) but would be happy to buy something to enjoy, share and/or show off. The customer will have already bought into consumption of wood fuel and live in a house with an open fire, log burner, possibly have a chimenea and may be interested in an alternative fuel for a BBQ. 4. Branding Briquettes will be individually wrapped providing an opportunity for branding. Briquettes will be band tied in packs of six with a label slipped under the band. The label will include lighting instructions, product information and a membership application form. The briquettes are something that will be highly visible, for example, as a feature on fireplace and a talking point for guests due to their unusual (not a log) appearance. They will also provide heat and not be significantly more expensive than alternatives. Through producing the briquettes, customers will see that the organisation is innovative and up for a challenge: an organisation that is not complacent and trying to do its upmost for nature in a way that gives something tangible back to visitor/customer rather than simply asking for donations and support all the time. To increase the opportunity to reach the target customer, the product could be branded using the Humberhead Levels Partnership logo so that it can be sold throughout the project area and beyond through Partners’ shops. There is an opportunity to include partner specific information in the pack at point of sale such as a membership form but further additional literature should not be included in the trial to enable comparable analysis across the trial. A website should be created to provide information about the product and the NIA Biofuels Project with links to partner sites. A QR code should also be printed on the label and/or individual briquettes providing a link to the website. 5. Suggested Price Point Considering the competition pricing structure highlighted above and the business plan outlined in Part 2 of this report, a price point of £10 per pack would demonstrate good value against in person purchasing at large national retailers. This would be a higher price point than online bulk purchasing from products made from biomass of unknown origin but this is a normal differential between in person and online purchasing. This price point should appeal to the purchasing behaviour of green consumers that products should also represent good value for money. 3 Depending on supply capabilities and demand for the product, opportunities for bulk purchase discount and online sales will need to be investigated further 6. Future considerations The premise of the biofuels project was that the raw biomass could be supplied by multiple organisations and that a market could be developed whereby new sites or undermanaged areas within existing sites could be taken on and managed for nature conservation, funded through the sale of the product. Given this aspiration, consideration needs to be had as to: how organisations collaborate to secure new areas; how and where work programmes can be aligned with the manufacturing process so as to least compromise delivery for nature conservation and maximise the economic sustainability of the product; and how any residual profits (if any) are distributed between the contributing organisations. These above issues highlight the importance of collaboration between the conservation organisations through the Humberhead Levels partnership and where commercial partners will also need to be brought along the journey 4
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