Go Green With The Blue.
Cloud 9 is launching an energy saving, low cost product called Cellulose Insulation. We will enter into the Home Improvement market, specifically towards the department of Heating and Cooling. Specifically, our target market would be who are homeowners, professional builders/contractor. Cellulose Insulation is made from post-consumer recycled newspapers, treated with nontoxic fire retardants. Our competitors are fiberglass and foam products, which neither of these products is recyclable.
Our target markets include homeowners, professional builders/contractors. Specifically who want to save money on their utility bills and do their part of making a better environment. The marketing table identifies our two major target markets, their needs and corresponding features/benefits
HOMEOWNERS PROFESSIONAL BUILDERS/CONTRACTOR
Lower utility bills Fire safety Controlled temperatures Buyers want insulated homes Improves value (especially if energy efficient installation)
Tax credit under Emergency Economic Stabilization Act of 2008 Fire retardant Creates a 36% tighter seal than fiberglass materials Easy to install Tax credit under Emergency Economic Stabilization Act of 2008 Easy to install
Cellulose Insulation benefits/features include: Money saving Easy to install with a rented our bought blowing machine Takes less energy to make Breaks down after its life use (able to decompose) Cellulose insulation provides a thermal barrier 40% better than conventional insulation Fire retardant material Vapor retardant High R-value Has a tighter seal making it air retardant Sound absorbing
Our product is part of a vast market of home improvement companies going “green”. Even though Cellulose Insulation is one-of-a-kind, products like Owens Corning PINK FIBERGLAS Insulator is popular among our target consumers. Some of our other top competitors include CertainTeed Corporations, Johns Manville Corporation, and PPG Industries Owens Corning. Named “Supplier of the Year” by Lowe’s, Owens Corning has been the top competitor. With an overall $1,776 million in the insulating segment, Corning’s popular product the Pink Fiberglass, has been around since 1938 and inside several homes across the country. CertainTeed Corporations. CertainTeed features a thermally and energy efficient and lightweight insulator. Nonetheless, a major advantage with CertainTeed products, is that it comes in different packages such as the popular batts and fiberglass rolls, premium blowing wool, and spray foam. Johns Manville Corporation. Sold at major lumber companies and Menards® stores, Johns Mansville products offer an “environmental satisfaction with more post consumer recycled content”. A benefit that environment conscious consumers are looking for. JM spray in product does not decay and can provide a R-value from R-11 to R-60.
Home Department Stores. Home Depot, Menards, and Lowes will carry Cellulose Insualtion products both in their stores and online. Customers will also be able to rent a blowing machine for installation purposes for an amount of time Lumber companies. Certain lumber companies will carry Cellulose Insulation products We will promote the product in the United States to our target consumers, and if we do well, we plan to branch off into other countries around the world (Europe, Canada, China, etc.)
Opportunities: Already being used: If homeowners make efficient improvements such as this, tax credit is given under Emergency Economic Stabilization Act of 2008 Partner with other energy efficient companies or organizations to push usage Run advertisements in newspapers in major cities for re-using papers Make deal with landfill/garbage/recycling companies to sort paper from waste if possible, and use for insulation Threats: Increased competition: Other companies trying to go green and other insulation may be less expensive People may not believe benefits
The marketing strategy is based on helping the environment, and passing on savings to the consumer. The target market for cellulose insulation would be homeowners and business owners that are interested in upgrading their current insulation to a more efficient and environmentally friendly alternative. The secondary target market would be contractors or construction companies that could recommend and use cellulose insulation instead of fiberglass or foam insulation.
Positioning Cellulose insulation is positioned as a more environmentally friendly alternative to both foam and fiberglass insulation. Being that cellulose insulation is made from recycled newspaper that means that it doesn’t use up new resources, preserving the environment a little better. The cellulose insulation is also chemically treated to repel insects, rodents, and mold, which gives it a competitive advantage (Carter 1). Price The average price of cellulose insulation is about twenty-five cents a square foot for material only (not including installation). It can be installed by the homeowner or it can be installed professionally by a contractor whose prices vary.
Distribution Cellulose insulation can be purchased in many ways. Most large home improvement stores such as Menards, Home Depot, and Lowes all carry cellulose insulation in store or can special order it to be delivered to the store. Some of the stores also install the insulation. There are also ways to buy and order cellulose insulation online through different distributors. Promotion Promotion and advertisement for cellulose insulation is most efficiently done through home improvement stores, websites, and magazines. Advertisement for the product is also found on other websites concerned with the energy crisis.
The future of cellulose insulation is to make the world aware of its presence as a cheaper, safer, more environmentally friendly alternative to standard insulation. The action that needs to be taken is to promote, advertise and get the word out about cellulose insulation and its many benefits. This needs to be done now and can be done now. Once the world learns about cellulose insulation and actually utilizes it. People will then take advantage of its benefits and be helping the environment and the world simultaneously.
(2008). Blown In Insulation. Retrieved December 05, 2008, from Johns Manville Web site: http://www.specjm.com/residential/insulation/blownin.asp Corp, CertainTeed (2008). Insulation. Retrieved December 05, 2008, from CertainTeed Web site: http://www.certainteed.com/CertainTeed/Homeowner/Homeowner/Insulation/ Corning, Owens (2008, December, 02). Owens Corning Named Supplier of the Year by Lowe's. Retrieved December 05 2008, from http://owenscorning.mediaroom.com/index.php?s=press_releases&item=375 Corning, Owens (2008). Residential Insulation. Retrieved December 05, 2008, from PINK FIBERGLAS Insulation R-19 Web site: http://insulation.owenscorning.com/professionals/insulation-products/r-19-fiberglass-insulation.aspx Marketline, (2008, November, 28). Revenue Analysis. Retrieved December 05, 2008, from Marketline Web site: http://library.marketlineinfo.com/library/iProduct_product.aspx?R=8FC40DC8-6A8A-484E-883F-E75D1A7FA145&s=IDAYQMH Menards, (2008). Home Page. Retrieved December 05, 2008, from Menards Web site: http://www.menards.com/ Star, Energy (2008). FAQ: Are there any consumer tax credits for energy efficient home improvements?. Retrieved December 05, 2008, from Energy Star Web site: http://energystar.custhelp.com/cgi-bin/energystar.cfg/php/enduser/std_adp.php?p_faqid=3863&p_created=1196360838&p_sid=moR6NPkj&p_accessibility=0&p_redirect=&p_lva=&p_sp=cF9zcmNoPSZwX3NvcnRfYnk9JnBfZ3JpZHNvcnQ9JnBfcm93X2NudD0zMDIsMzAyJnBfcHJvZHM9JnBfY2F0cz0mcF9wdj0mcF9jdj0mcF9zZWFyY2hfdHlwZT1hbnN3ZXJzLnNlYXJjaF9ubCZwX3BhZ2U9MQ**&p_li=&p_topview=1
Cellulose Insulation Manufacturers Association Home Owners. Retrieved December 5, 2008, from CIMA Web site: http://www.cellulose.org/HomeOwners/InsulationEnvironment.php