Our goal is to provide urban areas of Paris with an innovative service that connects recycling with community involvement, encouraging consumers to clean their surrounding by bringing personal or randomly collected waste to specific bins that are capable of identifying and weighing the waste and associating the quantity submitted with our “eco point reward system”
Our company main objective within the next two years in terms of notoriety is to be well known in Paris as one of the most dynamic Eco friendly start up. In terms of relationships, we want to strengthen our connections the eco friendly stores present on our mobile application and increase our stores network to offer more incentives to the customers to rely on our service. Also, we need to built a trustworthy relation with the city hall, Tomra and Sitcom by showing them how pertinent our service is for the city and to what extend we encourage more responsible behaviours from our customer base, in exchange, we will negotiate a financial backup especially in the initial investments. In terms of product deployment we want to grow progressively in order to make sure that we are not missing steps. Indeed, we first want to deploy our product in a specific area, especially a neighbourhood. To achieve this, we plan to install our bins in the first place in the area of Belleville in Paris, and then accordingly to how the company will grow in terms of notoriety and network we will expand to more places in the city.
Distribution channels:
To achieve these objectives, we plan to built an offline and online presence. First of all, concerning our offline presence, we need to targets crowed areas where there is a high people traffic and thus more garbages. Indeed, a neighbourhood like Belleville answers to our criteria because it is one of the most popular in Paris, and the third most crowded borough of the city and well served by the transports. Installing one of our bins there would certainly increase our reach comparing to others areas of Paris and it would also be easier to meet people and do some promotions by giving advertising flyers for example. Secondly, regarding the online activities, it mainly concern the fact that we want to use mobile applications to distribute our services across our consumers. Using the internet and the digital innovations as a commercial tool seems to be the best fit for our young company because it is less costly than any other distribution mean, it allow us to constantly update our service and it is easily accessible to the customers. Also, we want to leverage on social medias like Facebook or Snapchat, especially in terms of promotions and brand building.
Customers targets:
In terms of customers targets, taking into consideration that our platform is mainly digital, we target a rather young and urban population because they are the one who use more often mobile applications. Furthermore, the younger generations are often targeted for some of their negative behaviours regarding the environment, indeed, our service would be the only one designed to educate and influence the youth to be more eco friendly by offering a service that answers to their needs in terms of accessibility and usability.
Sources of revenues:
Our company will leverage on three main sources of revenues : Commissions, advertising service and publicity.
Commissions: This first source of revenue include three mains actors : the city hall, Tomra our bins furnisher and Sitcom the recycling company that will use the garbage collected. The point here is that our company, by creating a network of customers using our service, will benefits to these three entities mentioned before. The city will benefits because the population is encouraged to be cleaner and it would help the city in his preparation for events like the olympics in 2024. The company Tomra will take advantage from the fact that their bins will be more used and gain in notoriety. And finally, the company Sitcom will benefit from the amount of garbage that we will bring every month for recycling. Indeed, we plan to negotiate a 15% commission on the garbage sales.
Publicity: The publicity revenue concerns the announcements that will appear regularly on the application, in others words, we offer to companies that are looking for recognition to have a space on our application so that our users can see them, in exchange of fees from these companies. We will use for more safety and certainty the Mobile Pub model, meaning that we negotiate deals with companies that will be included in the creation of our application for a determined period of time.
Advertising: And finally, we offer an advertising service to the Eco stores that will figures on the application, in fact, one of our incentive to customers to be cleaner is that we offer them reductions in these stores. Indeed, the more our company will grow and the more customers we will bring to these stores. To be in our system, we will negotiate fees from the stores.
Pricing strategy:
Concerning our pricing strategy, we decided to go for a penetration strategy. Indeed, to easily enter in this market and taking into account our level of experience we need to be able to achieve competitive prices compared to our competitions in order to strengthen our market share. The penetration pricing strategy consists in practice of offering a low price for a new product or service during its initial offering in order to lure customers away from competitors.
In our case, we want to offers a free service for customers and thus, offer a free mobile application. It may seem counterintuitive to think about making money from a free app, but some businesses use free apps to drive interest and traffic to a website or a store. There’s no way to make purchases or directly generate revenue from the app, but by providing in-store promotions, sale notices, and free items, the application become a part of a wider revenue strategy.