RPMRPMForest Keeling NurseryForest Keeling Nursery

Growing Into The FutureGrowing Into The Future

BA 4700BA 4700

MARKETING MANAGEMENTMARKETING MANAGEMENT

L.P. CHEWL.P. CHEW

What is RMP?What is RMP?

RPM is a method of growing trees that RPM is a method of growing trees that creates:creates:– Faster GrowthFaster Growth– An Increased Survival RateAn Increased Survival Rate– Faster Reproduction CycleFaster Reproduction Cycle

Market PotentialMarket Potential

Seedlings are a 1.9 billion unit/year Seedlings are a 1.9 billion unit/year industryindustry

Container shipments represent 33% of the Container shipments represent 33% of the industryindustry– Leaving a 627,000,000 unit/year industry for Leaving a 627,000,000 unit/year industry for

RPM to compete!!RPM to compete!!

Who’s in our Market?Who’s in our Market?

Cosmetic Users 58%Cosmetic Users 58%

Non-Cosmetic Users 42% (263,340,000 units)Non-Cosmetic Users 42% (263,340,000 units)– Energy companies trying to counterbalance the effect Energy companies trying to counterbalance the effect

of carbon dioxideof carbon dioxide– Real estate developers trying to offset the Real estate developers trying to offset the

misplacement of wildlifemisplacement of wildlife– Phone companies needing trees that won’t go into Phone companies needing trees that won’t go into

their power linestheir power lines– Reforestation from hurricane damageReforestation from hurricane damage– Other Nursery’s and Nut FarmersOther Nursery’s and Nut Farmers

CompetitionCompetition

Traditionally grown seedlings are cheaperTraditionally grown seedlings are cheaper

Copywright is pending, still hard to enforceCopywright is pending, still hard to enforce

Other innovations could pose future Other innovations could pose future threatsthreats

Where We’re Going With This?Where We’re Going With This?

Forest Keeling Nursery currently has rights Forest Keeling Nursery currently has rights to RPMto RPM

Lacks the resources to market effectivelyLacks the resources to market effectively

Must incorporate and take on a partnerMust incorporate and take on a partner– RPM will become a separate entityRPM will become a separate entity– Will be marketed under the name RPMWill be marketed under the name RPM

Media PlanMedia Plan

Website Website

Direct Mail Direct Mail

Presentations Presentations

Educational Video Educational Video

Media Relations Media Relations

DistributionDistribution

Plan to open 7 nursery’s located Plan to open 7 nursery’s located geographically across the United Statesgeographically across the United States– Will grow plants that are native to the regions Will grow plants that are native to the regions

in which they are distributedin which they are distributed– Will save time and money on delivery Will save time and money on delivery – Nursery’s Will be responsible only for Nursery’s Will be responsible only for

productionproduction

Quantifiable EstimatesQuantifiable Estimates

• Market PotentialMarket Potential1.9 billion represents entire seedling market1.9 billion represents entire seedling market627,000,000 (1.9 billion*33%) are contained627,000,000 (1.9 billion*33%) are contained263,340,000 (627,000,000*42%) non-263,340,000 (627,000,000*42%) non-

cosmeticcosmeticWE WILL GET 10% OF THIS MARKETWE WILL GET 10% OF THIS MARKET26,334,000 in unit sales26,334,000 in unit sales

Quantifiable EstimatesQuantifiable Estimates (Continued)(Continued)

ProfitProfitWill sell product at weighted cost of $9.25/treeWill sell product at weighted cost of $9.25/treeVariable Cost will be around $3.50/treeVariable Cost will be around $3.50/treeC.M. will be $5.75/treeC.M. will be $5.75/treeTotal C.M. $15,314,205(5.75* 26,334,000)Total C.M. $15,314,205(5.75* 26,334,000)Fixed Cost $5,741,200Fixed Cost $5,741,200

Advertising $491,200Advertising $491,200Nursery Fixed Cost $5,250,000Nursery Fixed Cost $5,250,000

T.P. of T.P. of $9,573,005$9,573,005 ($15,314,205-$5,741,200)($15,314,205-$5,741,200)