Try Recycling and Aggregates (Try) operates out of London, ON and receives waste unsuitable for landfill sites from the City of London and local businesses. Try’s research program recycles 90% of all material received, turning it into useful and innovative products. The majority of Try’s revenue is generated from tipping fees and 5% of revenue is earned through the sale of recycled products to end consumers. Approximately 65% of recycled products are sold locally. Try’s founder, Jim Graham, has a strong sense of social responsibility and is interested in selling Try’s recycled products through a fundraising event, “The Grow Green Program,” to raise awareness about Try in the local community and assist participating organizations raise funds for worthy causes. In order to meet the target profit of $ 35,000 through this initiative, Try must determine which organizations present the most profitable opportunities and put together an effective marketing strategy to encourage them to participate in the Grow Green Program. KEY ISSUES
1) Customer Generation
Graham could approach local schools and community groups encouraging them to participate in the Grow Green Program. There are over 80 elementary schools in London, ON and majority of these schools participate in external fundraising events. However, schools have stringent requirement for approval of fundraising initiatives in accordance with the local school board guidelines. Fundraisers are allowed after carefully assessing student safety, parental support, financial controls, and proposed use of funds. Community groups including church groups, sports teams, and other non-profit agencies have less stringent requirements for approval and usually require either board or committee approval depending on organization. With multitude of community groups, it is difficult to determine which group is best suited for this initiative despite the relative ease of obtaining approval. The right choice of customer is paramount to success of this initiative.
After determining the appropriate target customer, the next step is to promote the initiative to both the organization (schools or community group) and the end consumers who will purchase Try products at the fundraiser. As Try is a small company it cannot devote a large budget to advertising and may limit the financial viability of this initiative. Given that Try is a leader in sustainability and corporate social responsibly, it is also relevant to note the importance of maintaining the company’s brand awareness and reputation within the community. 3) Profitability
Try has already established that it would sell its gardening products to end customers at regular retail selling prices and to participating organizations at the wholesale selling prices. Try has set a target profit of $35,000 from the Grow Green Program. The participating organizations retain 30-50% of sales revenue as their profit margin and Try’s fixed costs are $ 500 per organization. Try has to reach an appropriate level of sales revenue to cover its fixed costs and commission paid to participating organizations and still earn target profit. 4) Speed of Implementation
As the gardening season is soon approaching, it is important that if Try decides to implement any sort of fundraising efforts, the plan is enacted swiftly. This ensures that the program is given the best chance of success possible. The relative weighting of each key issue, as they relate to the evaluation of alternatives is illustrated in Appendix A. ANALYSIS
To effectively understand how Try can achieve objectives of the Grow Green Program, the SWOT analysis model was utilized to examine internal and external factors related to Try’s environment. Foremost, the relationships Jim Graham has formed through his previous experience in the construction industry and his substantial involvement in the community illustrates a major strength that would support Try in...