RPM Forest Keeling Nursery Growing Into The Future BA 4700 MARKETING MANAGEMENT L.P. CHEW
What is RMP? RPM is a method of growing trees that creates: –Faster Growth –An Increased Survival Rate –Faster Reproduction Cycle
Market Potential Seedlings are a 1.9 billion unit/year industry Container shipments represent 33% of the industry –Leaving a 627,000,000 unit/year industry for RPM to compete!!
Who’s in our Market? Cosmetic Users 58% Non-Cosmetic Users 42% (263,340,000 units) –Energy companies trying to counterbalance the effect of carbon dioxide –Real estate developers trying to offset the misplacement of wildlife –Phone companies needing trees that won’t go into their power lines –Reforestation from hurricane damage –Other Nursery’s and Nut Farmers
Competition Traditionally grown seedlings are cheaper Copywright is pending, still hard to enforce Other innovations could pose future threats
Where We’re Going With This? Forest Keeling Nursery currently has rights to RPM Lacks the resources to market effectively Must incorporate and take on a partner –RPM will become a separate entity –Will be marketed under the name RPM
Media Plan Website Direct Mail Presentations Educational Video Media Relations
Distribution Plan to open 7 nursery’s located geographically across the United States –Will grow plants that are native to the regions in which they are distributed –Will save time and money on delivery –Nursery’s Will be responsible only for production
Quantifiable Estimates Market Potential Market Potential 1.9 billion represents entire seedling market 627,000,000 (1.9 billion*33%) are contained 263,340,000 (627,000,000*42%) non- cosmetic WE WILL GET 10% OF THIS MARKET 26,334,000 in unit sales
Quantifiable Estimates (Continued) Profit Will sell product at weighted cost of $9.25/tree Variable Cost will be around $3.50/tree C.M. will be $5.75/tree Total C.M. $15,314,205(5.75* 26,334,000) Fixed Cost $5,741,200 Advertising $491,200 Nursery Fixed Cost $5,250,000 T.P. of $9,573,005 ($15,314,205-$5,741,200)