Gateway to Rethinking Organic Waste Business Plan
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1 National Academy of Engineering Grand Challenge Scholars Program Gateway to Rethinking Organic Waste Business Plan NAE GCSP Candidate: Kristina Macro GROW Design Team: Grace Belisle, Kristina Macro, Mark Tepper, Denali Trimble, & Julia Woznicki SUNY College of Environmental Science and Forestry Syracuse, NY May 24, 2017
2 1. EXECUTIVE SUMMARY 1.1 Product Many people in the world do not see food waste as a valuable resource. Even those that do think food should not be thrown away still do not compost their food waste because they find the process inconvenient, time-consuming, and/or unpleasant. Our team set out to change this way of thinking while making composting accessible to people of all ages. GROW, Gateway to Rethinking Organic Waste, is a personal compost container that exceeds the capabilities of those already on the market by widening the scope of usage and functionality. GROW kits provide the right conditions and mechanisms for optimal composting while eliminating issues such as smell and inconvenience. Nature-inspired mechanisms prevent odors from escaping while allowing food and air in. The kit includes compost starter and seeds so that once full it can become a garden planter. Over the course of filling more and more containers, the unique hexagon shape of the individual containers allows them to be pieced together to make a raised garden bed. This creates the opportunity to grow food or other plants in schoolyards, residential backyards, or city rooftops/balconies. GROW kits are made of all biodegradable materials, ensuring that no waste is created from our design. 1.2 Customers GROW kits are perfect for household, classroom, or office use. Our target customers are urban residents that would not have space for a composting pile or are interested in starting a community garden. Other customers include offices and college campuses that are seeking ways to be more sustainable. 1.3 What Drives Us The goal of GROW beyond its physical functionality is to spark interest and increase knowledge about composting, sustainability, and food waste, whether in the classroom, urban areas, or wherever food waste is located. Our team seeks to use biomimicry concepts and sustainable practices at every stage of a GROW kit's life cycle, from the materials used to disposal/reuse of the kit. Our team also seeks to address the National Academy of Engineering's Grand Challenges through our products. GROW kits address the challenges of carbon sequestration and managing the nitrogen cycle by using food waste as a nutrient source for plants that can sequester carbon in urban environments. If GROW kits can inspire the public to rethink how food waste cycles through society, lessons learned through the kits may become integrated in solutions for the grand challenge of restoring and improving urban infrastructure. Although it is not an officially designated grand challenge, the management of food waste is a major issue in society that GROW kits seek to address.
3 2. COMPANY DESCRIPTION 2.1 Mission Statement GROW seeks to use sustainable materials, create a line of products rooted in biomimicry design, and educate consumers of all ages about composting and the value of food waste as a resource. 2.2 Principal Members Design Team members: Grace Belisle, EIT, Kristina Macro, EIT, & Denali Trimble, EIT - Environmental Engineering Mark Tepper - Landscape Architecture Julia Woznicki - Conservation Biology 2.3 Legal Structure GROW is a general partnership between the five design team members and is based in Syracuse, NY. 3. MARKET RESEARCH 3.1 Industry GROW kits will be a part of the sustainable products/green business industry. This can be seen as a niche market because it generally targets people that are already environmentally conscious. However, GROW seeks to sell kits to people that are still trying to learn about how to have a more sustainable lifestyle. Since they can serve as planters, GROW kits can also be a part of the home and garden industry. This category has a much larger consumer market and could provide more potential for educating people that are not already environmentally conscious. The home and garden industry is largely affected by the housing market. As this market continues to recover, sales have increased for the past seven years, with a growth of 3% in 2016 (Euromonitor, 2017). This growth was evenly distributed between gardening, home improvement, home furnishings, and homewares. Like many other industries, the home and garden industry has seen accelerating growth in online sales. This trend will be kept in consideration while planning how GROW kits will be sold. 3.2 Customers The main target customers for GROW kits are urban residents that are seeking easy ways to garden and incorporate sustainable practices into their daily lives. GROW kits could also be sold to suburban residents that want to try composting, but don't have the time or resources to have their own composting pile.
4 Other target customers include institutions such as schools, where GROW kits could be used as learning tools in the classroom. GROW kits could also be used on college campuses in offices, lecture halls, and dorm rooms. These kits could help universities meet their sustainability goals while providing the potential to create community gardens on campus. In addition to these institutions, GROW kits could be used in commercial spaces to educate the public about composting, or in office buildings to promote a company's sustainability values. 3.3 Competitors There are many companies that currently sell kitchen compost bins and/or electric compost bins that turn food waste into usable compost quickly. Some examples of these products can be found below: 1. Full Circle Fresh Air Countertop Compost Collector- this kitchen compost bin allows air into the bin to reduce odors and clean up time and is made of eco-friendly materials (Bringetto 2015). Cost: $ {POST}MODERN Compostable Compost Bin Starter Kit- this kit uses recycled cardboard to create containers that can be composted along with food scraps. Users report no noticeable odors (Bringetto 2015). Cost: $11 for a set of four 3. Zera Food Recycler- This freestanding appliance automatically converts food scraps into fertilizer that can be collected from the bottom of the bin (Markham 2016). It can reduce the volume of the food scraps by two thirds in 24 hours. Cost: $ Competitive Advantage GROW kits are different from other composting kits because no other kit turns directly into a garden planter that can be fit together with other kits. Most kitchen compost bins are designed for consumers that can take their food waste that is collected in the bin to their compost pile. Our kits are designed for people that don't have a compost pile or don't even have a backyard. Although there are other products that directly convert food waste into fertilizer, our system does not use electricity to speed up that process. Our kits also minimize contact between the consumer and their food scraps, which may be more appealing for some people that may not like how food waste looks and smells. 3.5 Regulation GROW products must meet all Federal and state regulations concerning the home and garden industry. We will also seek to prove our commitment to sustainability by obtaining designations such as Cradle to Cradle Certified, Green Seal, or Sustainable Forest Initiative (SFI) certified. Our products will follow the guidelines established by these third-party certifications.
5 4. PRODUCT/SERVICE LINE 4.1 Product Our team will provide GROW kits and associated educational materials through an online platform. GROW kits will be made with a wood hexagonal structure, a custom compostable liner, activated charcoal, compost starter mix, and seeds. The company may eventually expand to sell similar products, but for now the sole focus will be on selling GROW kits and improving the consumer experience with the kits. 4.2 Pricing Structure GROW kits will be sold for about $20, which is comparable to the prices of market competitors. This price is subject to change as the design is further developed and raw material sources are chosen. 4.3 Product/Service Life Cycle Stage GROW kits are in the research and development and beginning production stages. 4.4 Intellectual Property Rights Our design team plans to apply for a patent for the GROW kit design once the prototype is further developed. 4.5 Research & Development The following research and development activities are planned for the future: Establishing design life span and cycle Designing "compost tea" runoff collection or diversion Developing a custom biodegradable plastic/activated charcoal lining Conducting surveys and product tests Experimenting with different compost starter proportions Creating a guidebook and educational materials Adjusting design for vertical stacking Improving aeration Sourcing sustainable materials
6 5. MARKETING & SALES 5.1 Growth Strategy To grow the company, we will do the following: Do content marketing through a blog about GROW kits, composting tips, food waste/food system issues, etc. Advertise/be featured in newspapers/magazines Go to trade shows for home and garden products and green businesses As the business grows, expand the product line 5.2 Communication GROW will communicate to customers through: Company website and blog, where company contact info can be found newsletter with tips on how to use the kit, blog articles, and educational materials Targeted Google and Facebook advertisements Social media such as Facebook, Pinterest, and Instagram 5.3 Prospects Currently, there is not enough inventory of GROW kits to begin sales. Once our inventory has grown, GROW kits will be sold through our company's website and other online shopping sites such as Amazon.com. Once awareness of the company grows, GROW kits could be distributed to and sold in grocery stores and home and garden centers. There is currently no designated person on the design team who oversees sales, but once GROW kits are ready for sale, an experienced sales manager will be hired. 6. Conclusion GROW kits have the potential to change the way consumers think about food waste, and will address important challenges within the food system. As a unique product, GROW kits will provide a new alternative for people that want to learn how to compost or want to have a better composting experience. Since the GROW kit is still in the product development phase, a full financial projection will be completed once a final design and materials are chosen. As they grow in popularity, GROW kits
7 will be able to turn local actions into a global impact on the food system. 7. References Bringetto, C. Feb. 26, Top 20 Best Kitchen Compost Bins. Heavy. Retrieved from: Euromonitor Home and Garden in the US. Euromonitor International. Retrieved from: Markham, D. Nov. 16, This new gadget promises to transform food scraps into fertilizer in 24 hours. Treehugger. Retrieved from:
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