1 Marketing Strategy - Reed Based Biofuel

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.
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The Reed Briquette has a number of immediate advantages over the competition:
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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)
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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.
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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
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