Recycled glass insulation uses up to 85% recycled glass material. Building materials are a primary contributor to pollution and destruction of natural resources. Glass wool insulation is a major building component, particularly in colder climates. Using recycled glass is an excellent way to create more sustainable building systems. This marketing plan outlines the major internal and external factors that affect the feasibility of the recycled glass business. This marketing plan explores the marketing of glass at a proposed glass wool factory called Navi Mumbai and will be located in India.
The Challenge
Situation Analysis
The challenge will be to build a production operation that provides glass wool for the construction industry on a global basis. The production facility will be located in India due to low taxes and operation costs. It will be a largely automated process, but will also draw from the local labor force. The challenge will be to product a product that meets international specifications and that will be competitive on the global market.
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Company Analysis
The product will be marketed under the name Isowool. Isowool will be modeled to be sustainable and to provide a cost effective and sustainable alternative to other products on the market. Its key advantage over competitors will be that it will be sustainable and low cost. All raw materials will be obtained locally to help keep costs low. This will also help to reduce the carbon footprint by cutting transportation costs. The plan is to become the number one manufacturer and distributor of glass wool in the world and to expand to China and South American within five years. It will provide direct shipping to customers to streamline transportation, further increasing the sustainability of the product.
Macroenvironment
The focus of the marketing plan will be the sustainability of the product and the reduction in carbon footprint. Sustainability will be a part of the company culture in every aspect of the working environment. Workers can feel good not only about the product that they make, but also about their contribution to that they are making towards environmental sustainability.
Strengths
The key strengths of the company are that is it an eco-friendly company. Another key strength will be their low operational costs. They will keep operational costs low through low local wages, location, low tax rates, and close access to major transportation hubs. These factors will give them a competitive advantage over their major competitors. Isowool will meet the requirements for green building certification under LEEDS guidelines. As more buildings are built to LEEDS certifications, Isowool’s market will build.
Weaknesses
Isowool will be a new product on the market and will have to establish itself as a trusted brand. It will also have to work to be ISO compliant, which will be a lengthy and costly procedure. Many building codes require ISO compliance. The main challenge will be to get the word out and to convince customers to switch. In the beginning, Isowool will be smaller than many of their competitors, already established in the marketplace.
Customer Analysis
On a global basis, the glass wool market is approximately $7 billion USD (Maghard Insulators, 2014). It is the most popular type of insulation used in building applications. As the global population increases, the need for additional housing and structures will increase too. This means the demand will be on the rise in proportion to the human population. This is particularly the case in colder climates. The customer decision process depends on a balance of price, reputation, and the ability to meet the building specifications. As more markets are developed that employ green building techniques, the purchasing decision will depend on finding a company that is sustainable as well. This is where Isowool will differentiate itself from its competitors.
Competitor Analysis
Competition for glass wool products is stiff, with companies in Malaysia and China currently leading the industry. Poly Glass Fibre of Malaysia represents a major competitor in the marketplace. They produce products for residential applications, such as batt insulation, insulation for duct work, and insulation for the automobile industry (Businessweek, 2014). The company exports internationally and represent a major competitor. Their products are formaldehyde free, which is their key advantage. Isowool will have several key advantages over this product in terms of sustainability in production practices.
The second biggest competitor is the Wahlee Company located in China. This company makes a high quality product using a proprietary process. Their products are preferred because they have superior insulating and sound baffling qualities. They have been a major competitor in the United States since the 1960s (Tradekey, 2014). Their major advantage is that China has few environmental laws, cutting down on compliance costs. As environmental laws continue to tighten on a global basis, Isowool will be able to compete and overtake Wahlee and similar established brands.
PEST Analysis
The political and legal environment are favorable for the growth of the Isowool brand. As the number of buildings seeking LEEDS certification and environmental laws tighten, the demand for products to meet those demands will grow. Increased need for residential buildings will continue to increase. The industry could be effected by several shocks to the global economy that cause a slowdown of new construction. The social and cultural environment is favorable, as consumers continue to demand increasing sustainability in their products. Technology and improvements in production efficiency will make production costs lower in the future, but will also lower barriers to entry.
Marketing Strategy
Isowool will be packaged and marketed for the residential construction industry and according to ISO protocols. It will be priced slightly lower than the moderately priced competitor. This will allow the company to achieve position based on price and the idea that it is the most sustainably produced. The main channels for marketing will be through presenting the product at trade conventions and in major publications that target the residential construction trade.
- Businessweek. (2014). Poly Glass Fibre [online]. Available. http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=PGF:MK
- Maghard Insulators. (2014). Glass Wool Insulation. [online] Available: http://www.maghardinsulators.com/glasswool.html
- Tradekey, (2014). Wahlee Glasswool. [online]. Available: http://www.tradekey.com/company/Wahlee-Glasswool-Shanghai-Co-Ltd-1046908.html
