Expansion Strategy For Mary's Poop: X-Culture Project
Expansion Strategy For Mary's Poop: X-Culture Project
Aiste Sadauskaite
Suzzie Owiredua Aidoo
Maximilian von Lonski
Sopiko Minadze
Karan Bakulesh Trivedi
1.Market
In US, the organic fertilizer industry is fast gaining ground and popularity in light of the
growing health and environmental concerns all over the world further deepened by the
Weather report read this November by President Donald Trump.
INDUSTRY
This industry is a relatively blue ocean with a healthy number of competitors for Mary’s
Poop. Some of the key players in the Organic Fertilizers Market include The Scotts Miracle-
Gro Company, National Fertilizers Limited, Midwestern Bioag, ILSA S.P.A, Sustane Natural
Fertilizer, Inc., Biostar Systems, LLC. Perfect Blend, LLC, Italpollina SPA, Krishak Bharati
Cooperative Limited, Coromandel International Limited, Tata Chemicals Limited, Nature
Safe, Agrocare Canada, Inc., Bio Nature Technology PTE Ltd., Uniflor, Fertikal N.V.,
Italpollina spa.
MAIN COMPETITORS
There is one family owned company in USA that grows alpaca; Alpaca Grow. It was
established in 2014, and focuses on producing natural products. These products have great
results in all growing climates which has proven to be a strong differentiator for the company.
They have a pretty good website which showcases memorable pictures of their alpacas and
the fertilizers produced. It has a main page contains all the important information about their
products and their consumption. One very important factor of success to this business is its
positioning strategy, encapsulated in their slogan which reads “From our farm, to your
garden, to your table”.
Another company Alpacas of Montana started it business as a little farm, and has now grown
to become a big business producing not only fertilizers but including numerous services like
clothes and fabric manufacturing, various different kinds of accessories, with everything
being made from alpacas. With its strong selling point being its 100% organic qualities. They
also have alpacas for sale, shearing alpacas as well as interesting facts a person might like to
know about alpacas and its uses.
The business boasts of a well-resourced website, with a well-structured blog where important
information is provided to further enrich the planting experience in addition to the application
of their organic fertilizer. It also provides the platform for users to share their experiences,
give advice and encourage other users. This has contributed immensely to their success and
growth since this is in itself a good marketing strategy. No form of marketing surpasses
referrals, word of mouth or experience based evaluations.
Irrespective of the presence of these formidable competitors, Mary’s poop has successfully
ensured its differentiation in numerous ways to sustain its place in the market; one being the
soon to be granted patent of its innovative product composition with other differentiators
being the raw materials and packaging material involved in the production as well as the
production process itself and environmental friendliness.
SWOT ANALYSIS
As with every company, Mary’s Poop is endowed with certain unique characteristics that
encourage its unique stance and successful operations. This notwithstanding it also has its
weaknesses which in a way contribute to its uniqueness and success which well combined
with the market opportunities will positively impact the company and help to increase its
market share.
STRENGTHS
Owing to deep research that went into the creation of this product, Mary’s poop has
qualities special which most fertilizers fall short of. These include its easy application
and simple dosage that prevents wastage of resources or excessive strain on the plants in
terms of over feeding. Its odourless and 100% organic nature of the product in addition
to the added benefits of certain beneficial plants like Yucca, as well as the complete
absence of pathogens that harm the plant, owner and environment all contribute to make
Mary’s Poop pods an extremely innovative, environmentally safe and highly preferred
product among its customers
.
WEAKNESS
The company is a small business with limited resources coupled with an almost non-
existent marketing strategy contributing to low brand recognition and resulting in a low
market share. This fact has contributed to Mary’s Poop low market share and almost
low brand recognition statistics even with its high quality product with very quality
differentiators.
OPPORTUNITY
The US market is a huge market of untapped possibility in the fertilizer industry. Taking
a skilful advantage of its characteristics and size in consonance with the highly
developed marketing and distribution vehicles in the country will not only increase
market share in the US but will also be a bridge to enable easy and cheaper introduction
of Mary’s Poop products to the European market which contributes a very significant
percentage of the potted plants market who patronise organic fertilizers.
THREAT
In light of fast paced innovation, highly developed marketing strategies and tools as
well as the fast-paced nature of growing inter-connect ability of the world in the global
village, if Mary’s poop fails to expand and develop its marketing strategies its
incredible product will cease to be enough to encourage and ensure productivity,
business continuity and profitability.
These factors that differentiate Mary’s Poop from its competitors have been simplified in a
SWOT analysis diagram to enable for easy identification.
The markets: The markets available to Mary’s Poop for expansion are countless with
promising potential. These include European markets with the leading being France followed
by Germany. However these markets are not devoid of its challenges including market
penetration, regulatory and legal restrictions and conformities, as well as import and export
logistics and resultant issues. This is not in any way to say that Mary’s Poop should not
consider market expansion into Europe, it certainly must, however timing is everything and
once done strategically can prove to be extremely cost efficient and will even be caused by a
demand pull which is the most ideal way of expansion for any business, local or international.
The said it is important to consider the next largest and cost effective consumer of fertilizer.
US is the second largest fertilizer consumer and leading fertilizer importer (according to the
fertilizer-machine.net). It records a population of 325 million as at 2017 with an average
income of $60,000.00, the purchasing power of Americans is quite high making them a
suitable target for market expansion and penetration. Mary’s Poop originally being produced
in the US means shipping costs are at the lowest level possible and would not contribute to
increased cost when expansion efforts are undertaken.
In addition, the company at first must build up its brand recognition in the home country to
facilitate easier expansion in foreign countries later when internationalization is profitable
and that next logical step after attaining a high market share in its home country of USA.
It is for this reason in addition to the relatively low investment costs in comparison with
venturing into new markets that we recommend that Mary’s Poop focuses on the US market
and increases efforts to increase its recognition and market share where return on investment
will be shorter and higher for a start until such a point where its natural progression after
dominating the American market will be to expand overseas.
Marketing and cost: Business in the US leverage the success of the Amazon platform and its
successful brand to market and sell their products to a wider market than they would hitherto
have had access to with limited resources and efforts, thereby reducing cost of marketing and
increasing their potential market size since they ride on Amazons extensive marketing brand
and business process and structures.
Packaging: Their packaging of the product in smaller vials to encourage easy use, and
maximize profit contributes to making them worthy competitors with higher market shares.
Requirements: Mary's poop manufactures its products in the USA meaning it has already
adhered to regulatory and political factors of sources and all other requirements of the
industry. This therefore eliminates costs and risk associated with compliance should they
decide to focus on a European expansion in its initial formative stages.
Customer segment: Wealthy to middle income households and individuals who keep plants or
small gardens in their homes. This demographic has further widened following the increased
awareness to climate change and chemicals and its resultant effects on our health as well as th
importance and impact of inhaling clean air and oxygen. This heightened awareness ha
instantly increased the prospective customer base of Mary’s Poop.
For non-digital marketing purposes, it is beneficial to find the most suitable states for
promotion.
Highest GDP per capita: Massachusetts, New York, North Dakota, Delaware, Alaska,
Connecticut.
Highest temperature: Florida, Hawaii, Louisiana, Texas, Georgia, Mississippi.
Lowest temperature: Alaska, North Dakota, Maine.
Biggest population: California, Texas, Florida, New York, Pennsylvania, Illinois
Lowest population: Wyoming, Vermont, District of Columbia, Alaska, North Dakota.
To sum up, according to statistics of the US states, the most suitable states for physical
promotion would be: Texas, Florida, New York. Others that would be suitable:
Massachusetts, Delaware, Connecticut, California, Pennsylvania, Illinois.
In light of the increasing dependence on technology and the power of the internet, these
promotions can very easily be done and targeted to reach a wider audience at a lower cost
than a traditional advertisement and promotion through flyers and newspapers. The use of
social media platforms like Facebook, Instagram, blogs as well as websites will prove a fool-
proof strategy to encourage a higher penetration and brand recognition.
2. Marketing
Marketing is a big differentiator of successful products and companies no matter how good or
bad the product itself is. This is the only way the market can be made aware of your
existence, which creates interest in the products and drives sales. A good product without
strategic sales is like a lit candle under a bowl-useless and unknown.
Marketing involves numerous components including visibility, access among others. In the
global world today visibility and accessibility can be efficiently provided in the promotion
and sales channels once used and combined properly
Promotion Channels
Affiliate marketing – This channel includes coming to arrangements with plant and fertilizer
bloggers to advertise the products on their blogs and websites through links to the Mary’s
Poop website and remunerating them for each successful sale. This method immediately puts
your products in the view of all customers of the blogger and increases the audience market
in effect. With this strategy you rely on the traffic of other websites and blogs, including
those possibly selling complementary products to market its products to prospective
customers as well as yours as a bundle discounted deal.
Using this marketing model, commissions may be paid to websites through whom successful
sales were made. This arrangement can be made with as many websites, blogs and retailers
since costs are only incurred per-sale. These arrangements can be had with all kinds of
websites including blogs, agricultural shops among others.
In the same vain, this arrangement can be had with physical shops, who may distribute our
products or brochures to their customers either at a fee or in exchange for the same favour, to
encourage cross selling by also selling and advertising their products on our website.
Amazon - another marketing tool is the use of the Amazon platform to market and sell.
Using Amazon would help to reach more clients since this platform already has thousands of
customers at its disposal. Therefore such an association will allow the expertise, capability
and popularity of Amazon to be leveraged at a comparatively small fee to have instant access
to a wider market than possible should Mary’s Poop have relied on its efforts entirely
It enables the company take advantage of the large market base Amazon has and will increase
sales and revenue at a relatively lower cost and shorter than if it had to drive traffic and
increase customer base all by itself on its website.
The emphasis should be on key values that the product provides: organic odourless fertilizer.
Also, the precise information about products and prices should be provided in a manner that
appeals to the specific target demographic. It would be beneficial, if previous customers
could share their stories with Mary’s Alpacas Poop Fertilizers through providing reviews;
how did it help to grow a plant, what are they happy about and where the company/the
product must improve, how easy was it to use especially on the Amazon shop page to
increase trust among shoppers.
Videos highlighting the organic nature of this type of fertilizer could be uploaded on their
social media pages with the use of infographics and should be major and well monitored
advertising tool since perception and image is an important determiner of action. That means
the look of the product online and its advertising qualities can impact to large extent its
business and sales success or failure.
Website - The company already has a website. We suggest improving it with the same
features that its Facebook page will have, having in mind: previous customers could share
their stories with Mary’s Alpacas Poop Fertilizers by way of client reviews, and encouraging
them to do so with next sale and referral discounts.
In addition, the website can provide helpful tips to grow plants as well as benefits of keeping
plants in-house (which can be in the form of blogs written periodically to increase, and
maintain customer interest and eventually drive sale) which will keep customers returning to
the website for valuable information generally related to plants growing, maintenance,
pruning, right fertilizer usage effectively and efficiently among others.
The platform of social media can also be used with time to connect alumni and experts of
this field having knowledge of demographics, soil and fertilizers. These alumni’s can be
helpful in increasing the brand image.
2.2. Message
While for instance in the month of February its 100% organic characters can be focused on as
being a great gift with a plant to buy for loved ones to encourage healthier lives by ensuring
they have quality air in their homes with the presence of these plants and the right fertilizers
to sustain and nourish them
The brand name may be changed to portray more universal name which may be a marketing
tool since the current name Mary's Alpaca poop may be a turn off for people whose senses
may be offended by the brand name and will cause them to have a negative impression of the
product even before they have tried it. Therefore, the main company may maintain the name
however it would be advisable if the product name is modified to encourage acceptability or
perhaps if it’s revised to encourage a comical allure to it. Another strategy could be to
downplay Mary’s Poop on the packaging and include an endearing name; for instance Eden.
Promotional material that can be used include Business cards, logo of the company, pictures
of Alpacas in the farm, pictures of plants that have been grown using the fertilizer.
All these may be provided in newsletters which can be sent out to customers once a month or
other preferred intervals to all customers on their email list which will be expertly gotten
from the website and will promote and encourage brand and product loyalty among customer.
This would be a cheaper option to printing however, over time when resources in the form of
money isn't so scarce Mary's poop may consider printing out flyers, complementary cards and
gift cards to give out at fairs and trade shows.
3. Management
3.1. Capital
T. Elliot Young, in his book (2012) he mentions, that a good way for raising funds for a small
business is crowdfunding. That is a way of funding that does not involve the sale of
ownership in the business (or a project) that is crowdfunded. Also, this way of funding
provides another benefit - the validation of your business idea, because the people who will
provide funding, as well they share their own ideas and thoughts. Anyway, this way of raising
money is the best for new-businesses, while in our case this business is not at the introduction
phase.
More suitable way for getting the money is using the grants. There are a special grants for
Start-Up Organic Farmers for Women: SARE grants, Federal USDA grants, State and
Extension grants.
SARE grants - are the grants provided by Sustainable Agriculture Research and Education
(SARE), to help sustainable framing US businesses. SARE mission is closely related to
advance innovation in agriculture. SARE believes that the grants it gives to organic farmers
will help other farmers run their own organic farming businesses: in this specific area Mary’s
Poop would be a great applicant and has a high chance to get the grant. Basic steps are to visit
their official website, press apply for the grant, choose to which US region the farm belongs
(western, southern, north-central or northeast) and then fill in the application and submit it
online.
As above mentioned, The main source of capital for small businesses like Mary's Poop
include investors and grants awarded to several organisations or businesses. An example of
one such grant is National Association for the Self-employed, where applicants are awarded
grants towards marketing ,advertising, expanding facilities should they meet the
requirements, and this cost an annual subscription of $120. There are also grants targeted at
female business owners, called “Amber grant for women” which is relatively less
cumbersome to apply for and attain.
There is another way of getting money: United States Department of Agriculture provide
special Farm Loan Programs. They emphasize that access to credit is given to farmers, and
some of the required features are just as Mary’s Poop is: business ran by a woman, direct
sale, organic product. The interest rates of loans there vary from 1,5% to 4,125%, while at a
regular bank those interest rates would be higher. The company should consider this option.
These options outlined will become necessary should Mary’s Poop be unable to afford the
basic marketing strategies listed earlier of website optimisation, Facebook advertising as well
as Amazon FBA seller activities.
These activities have low initial costs and are usually incurred per response: for instance, a
Facebook advertisement charges per click and Amazon FBA charges per order, which means
initial costs is reduced to the barest minimum as compared to having to invest so much
initially with no assurance of success. Under this model the level of progression is directly
related to costs incurred meaning there will be lower initial costs which only grow as sale
grows thereby reducing risk of losses and increasing turn over and return on investment.
Many authors suggest different entry modes for companies to expand their activities.
Anyhow, our initial idea does not require a lot of information about entry modes, due to the
choice of staying in the same market, just strengthening the position.
It is our recommendation that Mary’s Poop continues to focus on the large untapped
American market but changes its advertising and product visibility by taking advantage of the
internet and social media platforms which account for large quantities of business sales. In
America 85% of people have purchased a product online at least once a year. Facebook ads
and optimising the already existing website will drive more traffic which will increase sales
and boost revenue at a relatively lower cost than setting up shop in a new market which
requires far greater investment that take longer period to become profitable. This strategy will
eventually cause Mary’s poop to be known in other countries even before it expands to those
markets as a result of the brand visibility online, Facebook and amazon which are all
international platforms. This strategy presents an opportunity to scale internationally at a
lower cost and with lower to no risks of failure since the preliminary uncertainty and
marketing activities would have already been successfully done and optimised
As previously stated, it would be highly profitable for Mary’s Poop to register as an Amazon
FBA seller to immediately gain access to the platform’s millions of already existing
customers, being one of the largest online retail platforms across the States as well as Canada.
Amazon is big advocate of highlighting diversity: in the profile section of the shop on
Amazon, Mary’s Poop can inform its clients that it is a female owned company in the
business of providing 100% organic fertilizer for the wellbeing of all house plants as well as
the ease of use by the plant owners.
The organic niche of Mary’s Poop will make it a preferred alternative to the highly
chemicalized options currently on sale on Amazon.
In addition, the presence of Amazon in other European markets makes it easy for Mary’s
Poop to expand to those jurisdictions after a successful brand and product recognition and
loyalty strategy executed in USA to expand its market base locally.
Target Customer:- Mary’s Poop should focus on selling its products to big clients in the best
way they ca, so that company can add to its tally list of renowned clients working with them.
This will be increased brand image and helps in luring other customers, thereby helping in the
expansion of business.
3.3. Logistics
The strategy in place is twofold and therefore both requires different logistics.
1. Optimised website and Facebook ad selling: this will follow the shipping and delivery
trajectory already in place, which means very little will change by way of logistics in
this section. Since Mary’s Poop already ships out products bought online from its
website to customers.
2. Amazon FBA: the basis of Amazon FBA is that Amazon stores your products in their
warehouse and delivers under Amazon Prime standards (fulfilled by Amazon) when
customers place orders from your Amazon store. This means that a certain quantity of
the product (at the discretion of the seller) will have to be delivered to an Amazon
warehouse before any selling can be done on Amazon. This will incur some moving
costs especially depending on the warehouse Amazon selects for your product. A
warehouse in the same state at Mary’s Poop will mean lower moving charges as
compared to another state, however these costs will still be a relatively lower cost or
investment to shipping to a completely different country whereas under Amazon FBA
deliveries are assured using Amazon standards of two-day shipping and careful
handling of products.
3.4. Pricing
Mary's Alpaca Poop should have several different pricing models in order to optimize order
quantity, frequency, size, profit and predictability.
One option would be a subscription option where customers automatically receive a chosen
amount of fertilizer every month or pre-agreed monthly interval for at least 1 year (with an
automatic renewal). A discount would of course be given the customer who chooses that
option because of the cross selling and repeat customer nature of this sale which reduces
costs and overheads. It would allow to plan and project demand and revenues with some
amount of accuracy while also binding customers for a long period of time and creating a
deeper relationship with them which increases loyalty and reduces the risk of switching to a
competitor because of the relationship and greatly discounted prices.
Another option should be discounts on bulk orders - potentially attracting the interest of big
retailers interested in the product. This could lead to another source of company growth.
While reducing the percentage of profitability it could highly increase absolute sales and
profits and increase turnover which is a very important indicator of profitability in any
organisation’s financial analysis. This will increase production and encourage production
efficiencies by reducing costs of production and raw material encouraged by economies of
scale.
Also, to be kept in mind is the pricing strategy on Amazon. Even though Amazon deducts a
certain percentage of the product price Mary's Alpaca Poop, pricing should be the same as on
the individual orders on the company's website since the Amazon charges will be the
equivalent of the shipping costs incurred from a purchase on the website. As above-
mentioned (part 7) it could lead to increased visibility, demand, growth - thus potentially
resulting in increased profits. This will however entail similar costs since with the website
Mary’s Poops incurs higher or similar cost of delivery and sale as compared costs incurred
from Amazon.
Another step to take may be to repackage the product to a similar size as that of its
competitors as well as its price; the 100% organic nature of the product and its patented
qualities will be a strong marketing point to attract customers, increase market share and
hopefully capture majority of the market in the USA and with that success, profitability and
brand recognition and loyalty begin to capture other markets without the scarcity of funds and
the issue of venturing into a market where it is not known. Resizing the product and resetting
its price would create cost efficiencies while its 100% organic and highly nutritious qualities
and composition would serve as a great differentiator.
It is well known that these two (cost efficiencies and differentiation) are essential contributors
of product success and increased market share after proper and strategic marketing and brand
positioning has increased the awareness of the existence of this product to the general public.
If Mary’s Poop is able to strategically adapt these key activities and focus on local
recognition and penetration it will in a short time be pulled by demand to international
markets and increase profitability rather than venturing into those markets by supply factors
which almost always require too much investment and initial cost to record even a modest
amount of success.
The most successful product with little initial cost is that product that was determined by the
demand pull rather than a supply push, especially in the world today of a wide range of
choices; a knowledge of the brand and desire for it creates a huge demand (organically
generated) and encourages success than the supply of products which customers now need to
be convinced to purchase or try.
Conclusions
Mary’s Poop - is a great US company, that provides innovative organic product - alpaca poop
as a fertilizer. The market of organic fertilizers is growing fast, so there is an opportunity for
this company to expand and increase its sales, although, the competition is getting more
intense as well. SWOT analysis of the company showed that the product that company
produces has many strengths, while the main weakness is low brand recognition and it leads
to a threat - to be forgotten in the market.
In this work it was proposed not to expand to foreign markets, due to low brand recognition
in the market it is functioning already and small resources, but to strengthen the positions in
the current market - in the US. Moreover, for physical promotions, the best markets would be
in Texas, Florida, New York.
As main promotional channels it was chosen to have affiliate marketing, Amazon, Facebook,
Instagram and Twitter page, in addition it was suggested to improve the website, that
company already has.
The main message that we suggest delivering - is odourless organic fertilizer, because it sums
up the main strengths of the product.
In this work it was suggested to get money by applying for grants and also considering
joining farm loan program.
Entry mode was not discussed deeply in this paper work, due to the decision not to expand
internationally.
Another option should be discounts on bulk orders - potentially attracting the interest of big
retailers interested in the product. This could lead to another source of company growth.
Another step to take may be to repackage the product to a similar size as that of its
competitors as well as its price; the 100% organic nature of the product and its patented
qualities will be a strong marketing point to attract customers, increase market share and
hopefully capture majority of the market in the USA.
In the work it was suggested to use several pricing strategies to optimize quantity,
profitability and planning. One option would be a subscription option where customers
automatically receive a chosen amount of fertilizer every month for at least 1 year, another
option should be discounts on bulk orders, also it should be kept in mind - the pricing strategy
on Amazon.
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