126 marketing ecoreco

8/8/2019 126 Marketing Ecoreco

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Marketing Research on

- Rahul N. KotakeMBA C

R.No: 10126


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What is it?

Established in the year 2007

It has a turnover of `10 crores

Profit making since inception (2007)

Is in the process of gold digging.


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Company Profile

Started by entrepreneur B. K. Soni

It is an e waste management company.

Office in Mumbai and recycling plant in Vasai.

Has a pan India presence.

Focus only on the B2B segment.


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Products

Electronic waste recycling

Secure data destruction

Refurbishing and selling of electronic equipments

Charity and donation of electronics

Safe disposal of electronic waste.


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E waste???

E waste or Waste Electric or Electronic EquipmentWEEE, is waste consisting of any broken or unwantedelectrical or electronic appliance.

It is a concern because it includes many toxins andchemicals which are harmful to the environment and arenon - biodegradable

E waste includes discarded computers, mobile phones,telephones, servers, refrigerators, microwave ovens etc.


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Sources IT & Telecom Equipments

Large Household Appliances

Small Household Appliances

Lighting Equipments

Electrical and electronic tools

Medical Devices

Monitoring Tools


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Why the industry exists??

A typical computer weighingapprox 27kgs may contain:

Plastic 22% 6 kg

Lead 6% 1.7 kg

Iron 20% 5.6 kg

Copper 6% 1.9kg

Gold 0.01%


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E waste concerns

India generates about 5,00,000 tonnes of e- wasteannually.

It is growing at 36% annually

India is expected to generate about triple the currentamount of e - waste by 2015.

Thus, there is a need of a proper mechanism to takecare of the nuisance.


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E waste concerns (contd.)


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CurrentScenario

Informal sector accounts for nearly 95% processing of

the e waste generated.

They follow primitive methods and recovery of metals isminimal by their approach.

Their processes result in the release of hazardous toxins

& non bio degradable chemicals in the environment.


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(contd.)

The organised sector has a huge potential for growth in

this rapidly growing sector

There are only about 10 certified recyclers in the country

The investment is huge for setting up a proper e waste

recycling plant.

As people get convinced, there is likely to be more

investment in this sector.


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Current MarketingStrategy

The company does not sell anything!

Instead, it buys electronic waste from corporate

organisations.

It collects e waste from offices on a regular basis and

compensates them appropriately.

Ecoreco receives clients due to its sister concern Infotrek

Systems


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The company has been growing by word of mouth

publicity.

They advertise only in Economic Times.

They have tie ups with about 30 NGOs and close

relations with MPCB.

The companys sole brand ambassador is founder Mr. B.

K. Soni

(contd.)


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Observations of Market Research

The company relied heavily on its sister concern for

initial business and continues to do so.

It has primary interests in the B2B segment.

It does not advertise much.

It aims to increase business but has no clear targetsector in mind.


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The company has an existing clientele of 350companies.

It has over 600 collection points across India

Recycles 12,000 tonnes of e waste annually.

Only company to operate in Mumbai.

The company is solely driven under the leadership of

Mr. B. K. Soni

(contd.)


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Positives

The company had a ready client base thanks to its sister

company.

It faces no competition in Mumbai.

It has an established network all over India.

It has strong presence in Mumbai, Delhi & Hyderabad.


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Mistakes

The company has not established itself as a brand in 6yrs.

Ecoreco has not capitalized much on the first moveradvantage.

The company has no growth strategy & is simply reapingthe benefits of the growing industry.

It only has big MNCs and established companies underits belt.


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It has concentrated only on the recycling aspect of the

business.

It has not realised the benefit of NGOs and CSR that itcan use to its advantage.

The company does not have a business development

team or a customer relationship department.

(contd.)


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ProposedStrategy

Ecoreco needs to work on building its brand value.

It needs to establish itself as a beneficial partner to the

corporate sector.

It needs to position itself better to both the B2B &

Consumer segment.

It needs to develop strategic partnerships across the

industry.


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Spread more awareness about the importance of safe /

secure data disposal.

The company needs to start awareness campaignsespecially in business parks and SEZs.

Ecoreco needs to set up more visible collection points

and outlets.

Slowing start involving with the consumers themselves.

1. Awareness & Goals


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(contd.)

Needs to set a ambitious but realistic targets, like

achieving 2% market share in 2years.

It has tremendous potential to increase business withexisting clients.

It need business development managers to increase its

reach.


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It needs to highlight the advantages it can offer in termsof CSR practices and environmental help.

Assess and develop ways to increase benefits of its

relation with NGOs and gov. organisations

Act as facilitator between organisations desiring todonate electronics and those in need of it.

It needs to improve its refurbishing business whichaccounts for less than 10% of its revenues

2. CSR


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3. Integrate

It needs to absorb elements of the informal sector.

It can try to work with rag pickers or refurbishers

scattered across the city and the country.

They would help Ecoreco provide a direct supply &

demand source.

Ecoreco can eventually absorb the refurbishers and use

them to market Ecoreco stamped electronics.


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4. Partner

It can collaborate with manufacturers of electronic

products as the preferred recycler.

It can establish Ecoreco as a symbol of environmentcare & market the brand aggressively in the industry.

The company also needs to tie up with electronic retail

chains e.g. VijayS

ales, e Zone

The company can seek technology sharing deals with

groups like EMPA and GTZ.


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5. Future

Focus on backward and forward integration.

Set up collection points in malls or strategic areas of the city.

Establish its own logistics network as the business expands.

Focus on improving technology rather than just volumes.

Ecoreco could also venture into carbon credits.


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TH ANK Y OU

126 marketing ecoreco

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