Energy Recycling Marketing Plan

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Energy Recycling Marketing Plan Powered By Docstoc
					        Copyright © Palo Alto Software, Inc., 1995-2010




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                              Table Of Contents


1.0   Executive Summary      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

2.0   Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
         2.1    Market Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
                    2.1.1 Market Demographics . . . . . . . . . . . . . . . . . . . . 4
                    2.1.2 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . 5
                    2.1.3 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . 5
                    2.1.4 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . 6
         2.2    Service Business Analysis . . . . . . . . . . . . . . . . . . . . . . . 7
         2.3    SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
                    2.3.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . 8
                    2.3.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . 8
                    2.3.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . 8
                    2.3.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
         2.4    Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
         2.5    Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
         2.6    Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
         2.7    Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

3.0   Marketing Strategy . . . . .       .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 11
        3.1    Mission . . . . . . .    .    .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 12
        3.2    Marketing Objectives     .    .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 12
        3.3    Financial Objectives .   .    .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 12
        3.4    Target Markets . . .     .    .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 12
        3.5    Positioning . . . . .    .    .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 12
        3.6    Strategy Pyramids .      .    .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 13
        3.7    Marketing Mix . . .      .    .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 13
        3.8    Marketing Research .     .    .    .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 13

4.0   Financials                                                                       15
         4.1    Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . 15
         4.2    Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
         4.3    Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

5.0   Controls                                                                        17
         5.1   Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
         5.2   Marketing Organization . . . . . . . . . . . . . . . . . . . . . . . . 18
         5.3   Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . 19
                                    Good Earth Resources


1.0 Executive Summary

  Objective
  Nationwide, many landfills are closing or exhausting their remaining capacity, yet due to
  environmental restrictions, zoning laws, and other regulatory and bureaucratic delays, pitifully
  few new landfills are opening to offset the looming space crisis. Meanwhile municipal waste
  continues to flow in greater volume. Handling the nation's waste stream has become a major
  problem for most municipalities. With more waste created daily, landfills nationwide are rapidly
  facing a capacity crisis. Landfills are akin to owning a reverse gold mine.

  Good Earth Resources, Inc. (GER) has been formed to provide a solution for municipal waste
  problem in the St. Louis, Missouri area and capitalize on the lucrative benefits of possessing fully
  permitted landfills.

  The Operation
  There are four components in this operation: purchase two landfills; sort and recycle incoming
  waste; import an out-of-state waste stream; and convert landfill gas to either electricity or a fuel
  alternative.

  GER will purchase the landfills, one in Eastern Missouri (Martin Creek Landfill) and one in
  Southern Illinois (Barton Sanitary Landfill). Both landfills are near St. Louis, Missouri and the
  initial waste stream for both landfills will emanate from the St. Louis area.

  At both landfills, all waste will be sorted and recyclables removed. The remainder will be
  compacted, baled, and buried in the landfills. Today, only 10% of the landfills nationwide perform
  these functions, the remainder preferring to dump raw waste into their landfills, thereby ignoring
  a substantial source of income.

  GER will accept direct delivery of waste to its landfills, dispatch its own road tractors to bring
  more distant waste, and rail-haul waste from New York City and Chicago. Hauling Missouri waste
  assures GER a steady waste stream, independent of other sources, to meet its income projections
  in the first month of operations. Initially, GER expects to accept as much as 1,540 tons to its
  landfills daily.

  Unique Features
  At the landfills incoming waste will be dumped into receiving facilities designed to contain waste
  vapors, control vectors, and house machinery. The waste is moved onto conveyers from which
  employee-sorters remove all paper, cardboard, glass, plastic, and metals. These will be sold for a
  substantial profit, and the remainder compressed into two-thirds cubic yard bales. Bales will be
  stacked in a large, PVC-wrapped cell in the landfill that allows efficient capture of the methane
  gas. Most landfills do none of this.

  Removing recyclable materials and baling the remaining organic waste adds considerable value to
  GER's asset base, the permitted property, by reducing the volume thereby adding to the life of
  the landfill. Further, recyclable sales add to gross revenues.

  Landfill Valuation
  Landfills are valued by the volume of waste in cubic yards ("air yards") that can be deposited into
  the permitted area. By compacting, the deposited volume is increased five-fold. For instance, the
  Martin Creek landfill permit covers an area of 42 acres to accept 3,612,000 cubic yards. 2,000
  cubic yards of loose waste buried daily without compaction would fill the landfill in 6+ years. By
  recycling, compacting and baling, 2,000 yards is reduced to 220 cubic yards and the life of the
  landfill is extended to 32 years. This increases both value and gross income.

  The current fee per cubic yard of waste is $11.33 ($34.00 per ton) in the St. Louis area. 2,000
  cubic yards/day of loose waste for 42 acres generates $35,328,000 in 6+ years. By recycling,
  compacting and baling, the same area can be used for 32 years and generates $176,640,000 or
  daily volume can be increased. Sorting and compacting costs are minor in comparison to the


                                                                                                  Page 1
                                 Good Earth Resources


valuation increase, and recyclables offset these expenses.

Company Objectives
Anticipating agreements from waste haulers, GER expects to collect 940 tons daily for Barton in
the first months of operations. This generates in excess of $5,500,000 revenues per year. An
additional 600 tons/day for Martin Creek, transported to Barton during Martin Creek's
construction, adds $4,000,000 more. Investors can expect an outstanding annual return as well
as ownership in a profitable business with dividends in the first year.

GER principals will seek other sources of waste to augment this projected waste stream, such as
New York City, Chicago, and other large municipalities. Rail spurs are part of this plan and, once
operational, will facilitate the incoming flow of waste from distant cities.

Within twelve months of commencing operations, GER will collect the methane gas and convert it
to saleable energy in the form of either electricity sold into the national grid or methanol for sale
as a gasoline alternative. This will augment annual revenues.

Management
The principals of GER are experienced in every aspect of this business and are founding this
company to meet the growing need for sought-after landfills in the St. Louis area, as well as to
operate a profitable business.

Don Smith, co-founder of GER, has extensive experience in waste collection, landfill operation,
and waste handling. He operated three of Chicago’s major landfills during the mid 1980s, as well
as one in Gary, Indiana. Later he managed a hazardous waste facility in Scott City, Missouri. His
expertise in working with the Department of Natural Resources resulted in the landfill permit that
the property now possesses. He constructed and operated a municipal waste transfer station in
Wellston, Missouri in 1984.

John App, co-founder of GER, has a strong background in finance and marketing and will
concentrate on developing the out-of-state waste stream sources from New York City and
Chicago. Mr. App has owned and operated several businesses over the years as well as serving as
a founding board member of Capital Bank of Carlsbad, California, being elected to the Orange
County California Board of Education in 1974, and being a founding member of the Orange
County California Marine Institute at Dana Point, California.

G. Calvin Rathbone, Esq. serves as corporate counsel to GER and with a strong sales background,
will also assist in developing out of state waste stream sources. Mr. Rathbone's previous
experience includes manager of sales and marketing for a company providing equipment for the
exploration and production of oil and gas.

General Plan of Action
At this time, the principals of GER are seeking a $16,469,951 net investment to:

   1.   Purchase both the Martin Creek and Barton landfills.
   2.   Augment the daily waste stream to Barton landfill by hauling waste.
   3.   Install sorting and compacting machinery at Barton to maximize landfill life.
   4.   Complete the construction of Martin Creek landfill.
   5.   Lease or purchase machinery and vehicles needed for operations.
   6.   Build two transfer stations to collect waste in Missouri cities.
   7.   Utilize methane generated to augment revenues.




                                                                                               Page 2
                                    Good Earth Resources



                                   Annual Sales Forecast


  $4,000,000

  $3,500,000

  $3,000,000

  $2,500,000
                                                                                Small Haulers
  $2,000,000                                                                    Big Three Haulers

  $1,500,000                                                                    Private

  $1,000,000

   $500,000

         $0
                    2003              2004             2005




2.0 Situation Analysis

   Good Earth is entering their first year of operations. Good Earth is expected to close on their first
   round of funding with 21 days. The company has been well received and marketing will be critical
   to grow the company to fully utilize all of their pending facility purchases. The basic market need
   is for a clean, convenient landfill serving the St. Louis metr
				
DOCUMENT INFO
Description: This marketing plan is for Good Earth Resources, which will build and operate facilities for energy generation from garbage processing and recycling.
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