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Revolutionizing Tree Growth with RPM Method

Learn how the RPM method enhances tree growth, survival rates, and reproduction cycles. Explore the market potential and competition in the industry, along with the strategic direction Forest Keeling Nursery is taking with RPM. Discover the quantifiable estimates, including profit projections and cost breakdowns.

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Revolutionizing Tree Growth with RPM Method

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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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