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RPM Forest Keeling Nursery

RPM Forest Keeling Nursery. Growing Into The Future BA 4700 MARKETING MANAGEMENT L.P. CHEW. What is RMP?. RPM is a method of growing trees that creates: Faster Growth An Increased Survival Rate Faster Reproduction Cycle. Market Potential. Seedlings are a 1.9 billion unit/year industry

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RPM Forest Keeling Nursery

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  1. RPMForest Keeling Nursery Growing Into The Future BA 4700 MARKETING MANAGEMENT L.P. CHEW

  2. What is RMP? • RPM is a method of growing trees that creates: • Faster Growth • An Increased Survival Rate • Faster Reproduction Cycle

  3. Market Potential • Seedlings are a 1.9 billion unit/year industry • Container shipments represent 33% of the industry • Leaving a 627,000,000 unit/year industry for RPM to compete!!

  4. Who’s in our Market? • Cosmetic Users 58% • Non-Cosmetic Users 42% (263,340,000 units) • Energy companies trying to counterbalance the effect of carbon dioxide • Real estate developers trying to offset the misplacement of wildlife • Phone companies needing trees that won’t go into their power lines • Reforestation from hurricane damage • Other Nursery’s and Nut Farmers

  5. Competition • Traditionally grown seedlings are cheaper • Copywright is pending, still hard to enforce • Other innovations could pose future threats

  6. Where We’re Going With This? • Forest Keeling Nursery currently has rights to RPM • Lacks the resources to market effectively • Must incorporate and take on a partner • RPM will become a separate entity • Will be marketed under the name RPM

  7. Website Direct Mail Presentations Educational Video Media Relations Media Plan

  8. Distribution • Plan to open 7 nursery’s located geographically across the United States • Will grow plants that are native to the regions in which they are distributed • Will save time and money on delivery • Nursery’s Will be responsible only for production

  9. Quantifiable Estimates • Market Potential • 1.9 billion represents entire seedling market • 627,000,000 (1.9 billion*33%) are contained • 263,340,000 (627,000,000*42%) non-cosmetic • WE WILL GET 10% OF THIS MARKET • 26,334,000 in unit sales

  10. Quantifiable Estimates(Continued) • Profit • Will sell product at weighted cost of $9.25/tree • Variable Cost will be around $3.50/tree • C.M. will be $5.75/tree • Total C.M. $15,314,205(5.75* 26,334,000) • Fixed Cost $5,741,200 • Advertising $491,200 • Nursery Fixed Cost $5,250,000 • T.P. of $9,573,005($15,314,205-$5,741,200)

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