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Strategic Marketing Plan Green Mat Presentation


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  • 1. GreenMat Mattress Recycling Solutions Strategic Marketing Plan Presentation MKT640 Unit 5 IP Eric Braatz AIU Dr. Frank Nolan 4/24/2011
  • 2. 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!
  • 3. 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.”
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. Competition GreenMat will seek to enhance awareness about the detrimental effects of irresponsible mattress disposal No comparable direct competitors Indirect competitors: • Waste Management • Eco-Haul • Junk-Be-Gone The US waste management industry has an annual revenue of around $75 billion
  • 9. 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!
  • 10. 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
  • 11. Marketing Mix Communications & 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
  • 12. Marketing Mix Communications & 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
  • 13. Marketing Mix Communications & 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
  • 14. 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
  • 15. Marketing Mix Channels 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
  • 16. Marketing Mix Customer 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
  • 17. References Ailawadi, K. L., Lehmann, D. R., & Neslin, S. A. (2001). Market response to a major policy change in the marketing mix: Learning from Procter & Gamble's value pricing strategy. Journal of Marketing, 65(1), 44-61. Retrieved from EBSCOhost. Connors, M. M., Coray, C., Cuccaro, C. J., Green, W. K., Low, D. W., & Markowitz, H. M. (1972). The distribution system simulator. Management Science, 18(8), B-425-B-453. Retrieved from EBSCOhost. Hall, B. F. (2002). A new model for measuring advertising effectiveness. Journal of Advertising Research, 42(2), 23-31. Retrieved from EBSCOhost. Hoover’s Pro (2011). Industry Profile: Waste Management. Retrieved from Hoover’s Pro. International Sleep Products Association (2011). Sustainability. Retrieved from http://www. ISPA Moves on Sustainability. (2008). Urethanes Technology International, 25(6), 33. Retrieved from Business Source Premier. Labus, M., & Stone, M. (2010). The CRM behaviour theory - Managing corporate customer relationships in service industries. Journal of Database Marketing & Customer Strategy Management, 17(3/4), 155-173. doi:10.1057/dbm.2010.17 Mattress-Recycling Program Reduces Waste. (2007). Professional Safety, 52(12), 22. Retrieved from Business Source Premier. McIntosh, J. (2009). ISPA mattress recycling test proves successful. Furniture/Today, 34(2), 38. Retrieved from Business Source Premier. Mukherjee, S., Pawar, B., Saripalli, A., & Tolia, S. (2009). Get ready to take advantage of green agenda. International Tax Review, (51), 22-26. Retrieved from Business Source Premier. Peelen, E., van Montfort, K., Beltman, R., & Klerkx, A. (2009). An empirical study into the foundations of CRM success. Journal of Strategic Marketing, 17(6), 453-471. doi:10.1080/09652540903371695 Rahimi, I., & Berman, U. (2009). Building a CSF framework for CRM implementation. Journal of Database Marketing & Customer Strategy Management, 16(4), 253-265. doi:10.1057/dbm.2009.29 Recycling Versus Landfill. (2008). Urethanes Technology International, 25(6), 32. Retrieved from EBSCOhost. Schary, P. B. (1970). The dimensions of physical distribution. Transportation Journal, 10(1), 5-16. Retrieved from EBSCOhost. Schwartz, D. A. (1969). Measuring the effectiveness of your company's advertising. Journal of Marketing, 33(2), 20-25. Retrieved from EBSCOhost. Stock, J. R. (1988). The maturing of transportation: an expanded role for freight carriers. Journal of Business Logistics, 9(2), 15. Retrieved from Business Source Premier. U.S. Census Bureau (2009). 2005-2009 American Community Survey: Los Angeles County [Data set]. Retrieved from GeoContext&geo_id=05000US06037&_geoContext=&_street=&_county=Los+Angeles&_cityTown=Los+Angeles&_state=04000US06&_zip=&_lang =en&_sse=on&ActiveGeoDiv=&_useEV=&pctxt=fph&pgsl=010&_submenuId=factsheet_1&ds_name=ACS_2009_5YR_SAFF&_ci_nbr=null&qr_nam e=null&reg=null%3Anull&_keyword=&_industry= White, L. (2008). What happens to your mattress when you've finished with it?. Urethanes Technology International, 25(6), 31-33. Retrieved from Business Source Premier. Winer, R. S., & Dhar, R. (2011). Marketing management (4th ed.). Upper Saddle River, New Jersey: Pearson Prentice Hall. Zikmund, W. G., & Stanton, W. J. (1971). Recycling solid wastes: A channels-of-distribution problem. Journal of Marketing, 35(3), 34-39. Retrieved from EBSCOhost.