Feasibility Study

The Nature Growth Project
Page 2 of 50
REFERENCES
Table of Contents
INTRODUCTION .......................................................................................................................................... 6
OBJECTIVES ................................................................................................................................................ 8
POPULATION AND SAMPLE ....................................................................................................................10
METHODOLOGY ........................................................................................................................................12
DATA COLLECTION ..................................................................................................................................12
PRIMARY DATA .........................................................................................................................................12
SECONDARY DATA...................................................................................................................................12
QUESTIONNAIRE DESIGN .......................................................................................................................12
DATA ANALYSIS, INTERPRETATION AND PRESENTATION ...........................................................13
Product Characteristics, Market Analysis, Sales Analysis, Customer Analysis, Promotion and Advertising,
Competition. ..................................................................................................................................................24
Product Characteristics ..................................................................................................................................25
Services and Benefits of Nature Growth .......................................................................................................26
Market Analysis ............................................................................................................................................28
Target Market ................................................................................................................................................29
Market Size....................................................................................................................................................30
Market Share .................................................................................................................................................31
Potential Growth Opportunities .....................................................................................................................31
Potential threats that might pose a risk ..........................................................................................................32
Other factors ..................................................................................................................................................32
Sales Analysis................................................................................................................................................34
Potential Yearly Sales....................................................................................................................................34
Customer Analysis ........................................................................................................................................35
Promotion and Advertising ............................................................................................................................37
Conclusion and Recommendations ...............................................................................................................40
Appendix .......................................................................................................................................................41
DATA GATHERING INSTRUMENT .........................................................................................................42
Instructions ....................................................................................................................................................43
Market Survey ...............................................................................................................................................45
1. Background .......................................................................................................................................45
2. Market .................................................................................................................................................46
3. Target Audience ...............................................................................................................................47
4. Competition .......................................................................................................................................48
References .....................................................................................................................................................49
Works Cited ...................................................................................................................................................49
Equipment Used.49
Page 3 of 50
GROUP
MEMBERS
NAME ID#
MO EA HIBBERT 0704459
LAMAR HEMMI GS 0701126
ROSE BACHA 0704821
OVLETTE JOH SO 0703558
GERRO THOMAS 0601486
FEASIBILITY STUDY
EBBA3
GROUP#1
SCHOOL OF BUSI ESS ADMI ISTRATIO
U IVERSITY OF TECH OLOGY
Page 4 of 50
INTRODUCTION
Page 5 of 50
INTRODUCTION
Agriculture largely depends on energy intensive inputs like chemical fertilizers, improved
seeds, and agrochemicals. Due to decontrol of phosphatic and potassic fertilizers, cost of
fertilizers have increased especially phosphatic and potassic fertilizers.
High cost of chemical fertilizers and a widening gap between supply and demand along
with low purchasing power of small and marginal farmers, focus has been directed to the
need for supplementing the supply of plant nutrients with inexpensive and less energy
intensive and renewable sources.
Among the renewable sources, organic fertilizers are identified as a major substitute for
chemical fertilizers. The availability of chemical fertilizer is limited to meet the needs of
intensive cropping due to the cost, environmental and health factors to be considered.
Therefore, organic fertilizers assume significance as they are cost effective,
environmentally friendly and a renewable source of supply of plant nutrients.
With the current economic depression facing Jamaica, the government has identified the
agricultural industry as one of its most potent source of production. This as therefore
prompted our group to consider a product needed by such a market that will be cost
effective, reliable, efficient, produces results and also meets the everyday need of not
only farmers but also domestic home users such as horticulturist and landscapers.
The business proposed is the production, packaging and distribution of organic fertilizers.
This business will operate under the name ature Growth and will initiate operations
with our self titled product ature Growth. The name Nature Growth was coined during
a brainstorming session where our group of entrepreneurs looked to determine a name
that will complement a product aimed at making commercial a product that has been
under utilized and under marketed.
The main idea behind this business is to target and offer a more commercialized fertilizer
product; produced, manufactured and branded in Jamaica to our potential market. An
attempt to commercialize such a product is heavily influenced by the potential customers
and the projected scope for growth in the agriculture industry. The location of the plant
and major distribution area/head office will be located at a government owned abandoned
building which is available for lease by the Factories Corporation of Jamaica.
Page 6 of 50
OBJECTIVES
Page 7 of 50
OBJECTIVES
Nature growth is aimed at offering the highest quality, most effective, natural and organic
products for the lawn, farming and garden industry. We will achieve this by sourcing the
finest and purest natural ingredients available; adhering to strict quality control standards
throughout the production process; and continually improving and testing our products so
they provide generations of farmers, gardeners and home users consistent and superior
results.
From the main objective stated we have derived the following minor objectives;
To determine the feasibility of manufacturing organic fertilizer in Jamaica for
local use and the export market.
To determine features that will advance the proposed product thus enhancing
consumer satisfaction.
To understand the Target Markets awareness of environment preservation via
usage of organic fertilizers.
To determine the potential competition in the market and understand customer
preferences and dislikes.
To identify niches within the fertilizer market and innovate ideas to widen the
fertilizer product line such as developing other forms of designing the end
product.
Page 8 of 50
POPULATIO A D SAMPLE
POPULATIO A D SAMPLE SIZE SELECTED FOR STATISTICAL DATA
Page 9 of 50
POPULATION AND SAMPLE
In our attempt to obtain the most fundamental data required to determine feasibility of
our project, the population selected was heavily dependent on the sampling method and
sample frame chosen.
The sample frame chosen was a list of champion farmers from the Sir Authur Farquarson
farming competition. This list assisted with gathering information from experienced
farmers which is essential in gathering technical data. The size of this sample was 30 and
was coupled with another 30 random selected participants at a local agriculture expo
which brought the overall sample size to 60.
We opted to use a probability sampling scheme which is one in which every unit in the
population has a chance (greater than zero) of being selected in the sample, and this
probability can be accurately determined. The combination of these traits makes it
possible to produce unbiased estimates of population totals, by weighting sampled units
according to their probability of selection.
The probability sampling method chosen is stratified sampling method and this is to
facilitate the separate stratas identified (farmers and participants).
Stratified sampling offers several advantages over other sampling methods.
A stratified sample can provide greater precision than a simple random sample of
the same size.
Because it provides greater precision, a stratified sample often requires a smaller
sample, which saves money.
A stratified sample can guard against an "unrepresentative" sample (e.g., an all-
male sample from a mixed-gender population).
We can ensure that we obtain sufficient sample points to support a separate
analysis of any subgroup.
The main disadvantage of a stratified sample is that it may require more
administrative effort than a simple random sample.
Page 10 of 50
METHODOLOGY
Methods of research used to gather data.
Page 11 of 50
METHODOLOGY
Methodology is a systematic way to solve the research problem. It may be understood as

a science of studying how research is done logically. The various steps that are generally
adopted by a research problem are also the main function of the research methodology.
DATA COLLECTION
The two types of data collection method used for the purpose and study are;
Primary data
Secondary data
PRIMARY DATA
This data reflects information that was originally sourced by the researchers relating to
the study and was collected from the respondents. It was collected through a
questionnaire method. The other methods such as observation, indirect oral interview,
email and product by value analysis where conducted for the purpose of information
support. We also conducted a site visit and performed an observation at another local
manufacturer of organic fertilizer.
SECONDARY DATA
Secondary data are those, which have already been collected. Secondary data for the
study has been compiled from the reports and official online publication of other
organizations, which have attempted to sell similar products thus giving an insight of the
present scenario existing in the operation of the company. Secondary information was
also supplied via short telephone interviews with affiliated companies (see appendix).
QUESTIONNAIRE DESIGN
The questionnaire used for data collection of the data is in a structured format. It was a
mixture of open ended, closed ended and multiple choice industry choices. The words
were simple and helped in avoiding confusing and misunderstanding among the
respondents.
10 Questions: Open & Closed-Ended/multiple choice

60 questionnaires was issued
30 issued: Face-to-Face
30 telephone interview
100% Response
Page 12 of 50
FI DI GS
DATA ANALYSIS, INTERPRETATION AND PRESENTATION
Page 13 of 50
Figure 1.1
Classification of age group of respondents
Age Group of Respondents
10%
15%
40%
18-25
26-40
35% 41-50
50 & above
Figure 1.1 depicts the variation in the age group of the respondents. 35%
% of the
respondents
ondents were between the age group 41 41-50; another15 % indicated
ated that their age
group was 26-40, 40%0% of the respondents were from the age of 50 upwards, while the
latter 10% was young farmers between the ages 18-25.
This identified our major demographic ttarget

arget which was farmers between the ages of 41-
50.
Page 14 of 50
Figure 1.2
People who use fertilizer

Yes o ot yet
80% 10% 10%
Fig 1.3
Figure 1.2 and 1.3 illustrates the number of respondents who use fertilizer. The majority
of the respondents
ents which is represented by an 80% total indicated that they use fertilizer,
while the other 20% was evenly split between people who indicated no and those who
have not yet tried fertilizer. The plethora of respondents indicated yes due to the
population selected.
Page 15 of 50
Fig 1.4
Uses of Fertilizer
Fig 1.4 depicts the different uses of fertilizer. 40% of the respondents indicated that there
main use of fertilizer
zer was for large scale farming; 30
30%
% indicated small scale farming was
the preferred area and another
other 15% identified domestic purposes sucsuch
h as horticulture
where they mainly use fertilizer. 10% of the respondents used fertilizers for plant nursery
while 5% indicated that they used fertilizer for other purposes.
Page 16 of 50
Fig 1.5
Factors considered
idered when purchasing a
specific type of fertilizer.
70
60
50
40
Percentage
30
20
10
0
TYPE QUALITY PACKAGING PRICE AVAILABILITY ECO-
FRIENDLINESS
Major factors
Fig 1.5 illustrates customers major consideration when purchasing fertilizer. The graphs
details that of the 60 respondents; 60% indicated that price was the major consideration
when purchasing fertilizer;
tilizer; 20% considered the quality; 5% considered the type of
fertilizer and also the packaged used; 7% considered the environmental effects while 3%
considered availability.
Page 17 of 50
Fig 1.6
People who buy local or imported

fertilizers
Fertilizer Purchases
No
30%
Yes
70%
Fig 1.6 illustrate that 70% of the respondents buy imported fertilizer as opposed to the
30% that used locally ly made fertilizer. The 30% who indicated that they used imported
fertilizer was because of the packaging, availability, price and consistency.
Page 18 of 50
Fig 1.7
Fertilizer brand ratings
Preferred Fertilizer Brand
Miracle Grow
Johnson
Pottinger
Fersand Good
Better
Spectrum
Best
0% 20% 40% 60% 80% 100%
Spectrum Fersand Pottinger Johnson Miracle Grow

Good 2 2 4 2 5
Better 3 4 3 2 3
Best 5 4 3 6 2
Figure 1.7 shows a rating scale graph where respondents were asked to rank each brand
of fertilizer from 1-10.
10. Of the 60 respondents the majority indicated that the Johnson
fertilizer was the best. Even though not commercia
commercialized
lized it was the only organic brand of
fertilizer which made it more consumer friendly than the other brands.
Page 19 of 50
Fig 1.8
Price comparison on the current fertilizer

market
5 lbs 10 lbs 15 lbs 50lbs 100 lbs or
more
$1000-$1500 70% 5% 25% 0 0
$1500-$2000 20% 60% 10% 0 0
$2000-$3000 10% 30% 55% 30% 0
$5000-$7000 0 5% 15% 70% 0
$8000 or more 0 0 0 0 100%
In the table above we attempted to gather data from the selected population the varying
prices charged by our competitors and asked them to indicate the preferred price they
would pay for each pound of fertilizer.
Of the 60 respondents we saw that 70% will pay between $1000-$1500 for a 5lbs bag of
fertilizer. 60% of the respondents in the 10lbs category preferred to pay between $2000-
$3000. The majority of the respondents also indicated that they will rather pay $5000-
$7000 for a 15 lb bag of fertilizer. For the 50lbs category 70% of the respondents
gravitated to a $5000-$7000 category while all the respondents detailed that for a 100lbs
bag of organic fertilizer they pay $8000 or more.
This table will prove to be the one of the major determinant behind pricing as it indicates
consumer preference as it relates to competitors prices.
Page 20 of 50
Fig 1.9
Organic is better than chemical fertili

ertilizer
5
4.5
4
3.5
3
2.5 Organic
2 Chemical
1.5 Neither
1
Neither
0.5
0 Chemical
Strongly Agree Organic

Agree
Disagree
Strongly
Disagree
In the chart above a comparison is been made between Organic and chemical fertilizers.
fer
At least 4 out of every 5 respondent agreed that organic fertilizer is both cheaper and
better than chemical fertilizer.
This table was a major determinant bbehind

ehind identifying possible market, competition,
position, and pricing strategies.
Page 21 of 50
Fig 1.10
Problems with current brands of fertilizer
PROBLEMS WITH CURRENT BRANDS OF

FERTILIZER
12%
29%
18%
Price
Variety
Scent
41% Other
Fig 1.10 depicts the varying problems the selected population has identified with the
current brands of fertilizer.. The data was grouped according to a best fit approach as the
data collected was qualitative.
Of the 60 respondents 41% suggested the current fertilizer brands lacked variety; 29%
indicated that price was a major problem; 18% identified the scent as their major problem
and the other 12% gave a variety of other problems.
This data is essential in identifying a strategy to gain the competitive advantage over our
competitors.
Page 22 of 50
Fig 1.11
How to improve product
Responce
RELIABILITY time to
deliveries
PRODUCT
IMPROVEME T Increase
Consistency product
availabilty
Provide
Variety
different
forms of
fertilizers
ovided suggestions on how to improve on the service and

In fig 1.11 respondents provided
production of fertilizer. The general response identified three key components to
consider; reliability, consistency and variety.
These suggestions will also assist in identifying the critical successs factors and core
competencies our brand of products should have in order to gain the absolute advantage.
Page 23 of 50
A ALYSIS
OF
RESULTS
Product Characteristics, Market Analysis, Sales Analysis, Customer Analysis,
Promotion and Advertising, Competition.
Page 24 of 50
Product Characteristics
Physical Features
After collating and analyzing the results of our survey we made attempts to correct our
competitors weakness and improve the product based on our target populations
suggestions.
Nature Growth is our premium general-purpose fertilizer that excels in every application.
Nature Growth is a high nutrient blend of natural ingredients that plants and trees respond
to with rapid and sustained growth which will make it the most popular blend for
nurserymen, landscapers, fruit and vegetable growers, and farmers.
The product will be in the form of Semi-Powdered Grains with future variations of liquid,
liquid mix and powder. This product is blended from the following list of natural
ingredients:
Natural Sulfate of Potash

Phosphate Rock
Colloidal Phosphate
Oyster Meal
Kelpmeal
Greensand
Natural Sulfate of Potash/Magnesia
Vegetable Protein Meals
Animal Protein Meals
Natural Nitrate of Soda
Compost
Dried Whey
Potash, Natural Nitrate, Colloidal Phosphate are formed from plant remains combined
with phosphate rock which is derived from sediments of sedimentary rocks.
Page 25 of 50
Services and Benefits of Nature Growth
On Lawns
Our lawn maintenance customers will experience spectacular results with as little as two
applications per year. The spring and fall combination builds thick and invasive root
systems and healthy soils which naturally crowd out many weeds, while cultivating
beneficial microorganisms that can decompose thatch and control harmful insects and
diseases; this is as a result of the combination of Phosphate and Kelpmeal.
On Trees
For plant Nurseries and orchards this relatively low analysis organic fertilizer grows their
trees faster and healthier. This is heavily due to the ingredients used (Natural Nitrate of
Soda and Kelpmeal).The notion that when the soil is nourished adequately, plants
respond with a natural health and vigor out-paces conventional methods of feeding.
On Vegetables And Small Fruit

Any growing plant produces better in healthy soils, no matter what kind or how much
nutrient it is fed. Nature Growth pays attention primarily to the needs of the soil,
providing the ideal conditions for productive crops. Ash tests suggest that organically fed
food crops have a higher mineral content and lower nitrate content-making them more
nutritious, better tasting, and giving them a better shelf life. Vegetables grown with
Nature Growth are spoon fed with the nutrient they need when they need it.
On Farm Fields
Using Nature Growth in fields will employ a much thicker look and an even better yield.
The eco-friendliness of this product will allow soil to be darker, richer and alive with
earthworms. When you feed the soil it responds with life in the form of microorganisms.
A handful of healthy soil contains more microorganisms than there are people on earth,
each of which has a function that provides immeasurable benefit to the farmer.
On Landscape Applications
Although Nature Growth is normally recommended for general maintenance, it works
best for landscapes. Its slow release, non-burning formula increases the quality of the job
long after the landscaper has left the site. For maintenance contracts, Nature Growth is
unmatched in its ability to push lush green growth on trees, shrubs and lawns. Perennial
and annual flowers grow stronger and with more blossoms with Nature Growth.
Quality and Uniqueness
Unlike other organic fertilizers which are manual produced, the equipment used to mix
nature growth creates a more effective product due to the consistent mixing processes
used. This creates a differentiated product as the form (Semi-Powdered Grains) is far
more user friendly than the regular cuboids or broken particles found in other fertilizers.
Nature Growth will display the following qualities and uniqueness;
Page 26 of 50
Semi-Powdered form.
Increased performance due to added earth nutrients.
Packaging- a ready to use sprinkle package.
Variety-different forms such as liquid, liquid mix etc.
Gradual release of nutrients which prevents trees from burning.
Page 27 of 50
Market Analysis
Marketplace Trends and Environment

Since 2007 the Ministry of Agriculture has stepped up its effort towards restoring the
agricultural industry. Consumers have become more reliant on fertilizers as they act as
great soil and plant enhancement agents.
According to the book Economic and Social Survey Jamaica 2008 published by the
Planning Institute of Jamaica; the implementation of the Agricultural Development
Strategy which began in 2006 is aimed at increasing productivity in the agriculture
industry and in support of this strategy the MOA has embarked on a $200.0 million
development project in 8 key areas which includes organic agriculture. (Hughes, Wesley.
(2008). Economic and Social Survey 2008. 50th Anniversary. Chapter 10.1).
According to the JIS websites agriculture section article which states Minister of
Agriculture, Dr. Christopher Tufton has informed that the first order of eight thousand
tons of fertilizer would be made this week, at a cost of $300 million. This highlights the
necessity of locally produced organic fertilizer as there is available market
This coupled with the 2009 non-existent hurricane season as created a lucrative market
for the fertilizer product as farmers and the government will be looking to make major
investment in one of the most important areas of agriculture.
Organic Fertilizer A Rising Trend
Median annual chemical manufactured fertilizer averaged 50000 tons between 2005-2006
while the average organic sales average just under 15000 tons. Since the development
strategy and the focus on investment by MOA, Organic Fertilizer is over 35000 tons.
Page 28 of 50
Target Market
Nature Growth
The socio-economic groupings targeted by nature growth are mainly small/large farmers
between the ages 41-50 and 50&above. We will look to venture niche markets such as
nursery bed farming, landscapers, horticulturist, and domestic users. Based on our market
analysis questionnaire we have opted to use a selective target market strategy which is a
multiple segment strategy also known as a differentiated strategy.
In selecting our target market we realized the following conditions;
Low brand loyalty

High growth rate of the segment
Minimum competition in the segment
Size of the segment
Sales potential for the firm
Attainable market share given promotional budget and competitors expenditure
Expected profit margins in the segment
Page 29 of 50
Market Size
The fertilizer market profile is analyzed taking fertilizer consumption in thousand metric
tons, of the manufactured
ured fertilizer containing nutrients nitrogen (N), potash (K2O), and
phosphate (P2O5) consumed in agricultural practices on annual basis. The market is
valued at farmer's retail price, taking into account any applicable tax and any subsidized
price reduction.
80% of the rural communities in Jamaica can be regarded as farming communities. The
urban areas also show a 20% of its population as domestic fertilizer users
users. This therefore
reflects an estimated market size of over 500,000 buyers and just about 1000 major
distributors of fertilizers. Of these 1000 major distributors only 30% distributes organic
fertilizers.
Increase in Fertilizer Usage by Parish 2007

60%
50%
40%
30%
20% Increase in Fertilizer Usage by

Parish 2007
10%
0%
Page 30 of 50
Market Share
The current fertilizer market is dominated by 5 major players such as Fersand, Pottinger,
Johnson, Miracle Grow and Spectr
Spectrum.
um. The table below depicts the how the market is
shared;
Market Share
15%
40%
Fersand
30% Pottinger
Spectrum
5% Johnson
10%
Miracle Grow
Fersand is currently the major importer of chemical fertilizer. With our attempt to enter
the fertilizer market which is rapidly changing from chemical fertilizer to organic our
estimated market share will be about 20% as we will use our competitive advantage
which includes price, variety, quality, availability and reliable production to compete
against Fersand which is our major competitor.
Potential Growth Opportunities
The quickest, most cost-effective

effective way to increase sales volume is to sell additional
products to the existing customer base. This avenue will be explored on an ongoing basis.
Expanding into new markets is more costly, requires significantly more research, and is a
considerably riskier
skier investment; however, expansion into new markets is a part of our
long-range marketing plans.
Changing or expanding distribution channels is another way to quickly increase sales

volume. Although changing distribution channels is difficult, as the li
life
fe cycle of the
product matures, change is inevitable. Planning for the change will make the transition
less traumatic
Page 31 of 50
Potential threats that might pose a risk
The potential threats that might pose a risk to Nature Growth are as follows;
Natural Disasters such as hurricane may damage the agriculture industry on a

yearly basis which may show consistent fluctuations in actual sales.
Processing period may be affected by the availability of raw materials.
Reduction in imported fertilizer prices may create har
harsh
sh competition.
Changes in interest rate may affect projected expansion.
Transportation
ion of raw material may be a huge expense.
Other factors
Access to Capital Brand

Brand Loyalty
Legal Cost Business
Business interruption
Start-up cost Promotion
Promotion and
Import prices Advertising
Globaliztaion
Globaliztaion
Financial Commercial
Reputational Legal
Customer Loyalty
Product
Product export
Investor Confidence
compliance
Public and consumer
Pirate
Pirate Goods
trust
Bribery
Bribery and Extortion
Market Brand
Environmentalist
Environmentalist
Page 32 of 50
Page 33 of 50
Sales Analysis
Potential Yearly Sales
In a pre analysis of the potential sales Nature Growth looked at calculating year 1-5 sales
based of the calculation number of potential customers times projected cost of sales.
The total estimated market size is 500,000 customers who purchased an average of
70,000 tons of fertilizer in 2008 with reference to the Social and Economic Survey done
by the Planning Institute of Jamaica. The table below depicts the Potential Sales by year;
Year Estimated Potential Annual Estimated Cost of

yearly Sales percentage Sales
increase in
sales
2010 3,360,000 nil 2,184,000
2011 5,880,000 15% 3,528,000
2012 6,720,000 5% 4,032,000
2013 14,700,000 9% 7,056,000
2014 16,200,000 10.20% 7,776,000
Sales Trend
18,000,000
16,000,000
14,000,000
12,000,000 Estimated Potential

yearly Sales
10,000,000
Annual percentage
8,000,000 increase in sales
6,000,000 Estimated Cost of

Sales
4,000,000
2,000,000
0
2010 2011 2012 2013 2014
Page 34 of 50
Customer Analysis
Nature Growth has developed a database of present customers who purchase fertilizer on
a regular basis from local distributors such as Agro-Grace and Johnson Rescue Organic
Farms. This coupled with extracted information from our customer survey (see appendix)
will be used as a basis to differentiate small farmers, large farmers, domestic users,
horticulturist and plant nursery farmers. Customer demographics show the current
customers are in an income range of $60,000 monthly, extended income families,
professionals, self employed, occupations concerned about the environment and located
primarily in rural areas.
Research also shows there is the opportunity to increase and improve supply chain via
the internet these customers are internet users and are willing to order product from our
business via the Internet. In an attempt to create a product more tailored to the mass of
the agriculture market we took a thorough look at the psychographics of the organic
fertilizer market. This segmentation presumes that consumers who have a similar social
class, lifestyle or personality should be marketed to as a group. Psychographic segment
and group, individuals who have similar attitudes, interests, or opinions.
Activities- The activities of this market segment range from industrial farming to
domestic farming.
Interest- The primary interest of these consumers is to enhance their crops average
growth rate via use of organic products.
Lifestyles- As stated, the rural area lifestyle is more of a traditional approach and
is a key component in determining buying behaviors, customer loyalty and pricing
strategy.
Opinions- The basis on which this market was targeted was due to the frequency
in opinions shared in the questionnaires as it relates to chemical fertilizers vs.
organic fertilizers. The understanding and general opinion of the target market is
Organic fertilizer is best for the earth and also economy.
Buying habits- More and farmers are interested in the cost factors surrounding
agricultural products. They are also concerned about traceability of the product
example where it was manufactured and how it has been treated in the process.
Farmers are now shifting to higher ethical standards which allow them to be
grouped as organic major market.
Research conducted by nature growth has verified that there is a market segment large
enough to justify the investment in the processing facility.
A significant number of consumers are concerned about where their meat products are
coming from and how these products are processed. The company will market directly to
that group. Since they are highly informed consumers, however, a major task will be to
establish credibility.
Page 35 of 50
In the farmers markets targeted for sales there are an estimated 100,000 potential
customers (based on census estimates). At present, Farmers Choice has reached only a
fraction of that customer base.
Based on data in our market survey, estimated customer potential is as follows:
Westmoreland 30,000
Trelawney 10,000
Manchester 30,000
Hanover 20,000
St. Elizabeth 30,000
How can we best satisfy their needs?
Our aggressive pricing policies and approach to quality, time based competition which
will foster rapid development in new products will make us the industry standard. Our
market analysis survey as identified 5 major customer satisfaction requirements;
Excellence- We will guarantee a quality product that meets or exceeds the

competition and customer expectations. We will measure our performance
against the "best in the business.
Timeliness- We will provide realistic delivery times based on the nature of the
request.
Responsiveness- We will respond promptly to all requests in accord with our
resources and capabilities.
Accessibility- We will provide you with choices for products, and reliable means
of delivery.
Consistency- We will ensure the product is available island wide and easily
accessible.
Page 36 of 50
Promotion and Advertising

Nature Growth plans to promote our product and services in various mediums which
includes:
Internet (Personal Website, Social Network- Facebook, Jamaica Yellow pages e-

commerce, newspaper.)
The Ministry of Agriculture
R.A.D.A
Jamaica Agriculture Society
Radio and Television Commercials Flyers, at Payment Agencies (Paymasters, Bill
Express, Jamaica National Money Shop, Banks, Post Office, Newspaper).
Supermarkets Information Booth at Agriculture Expos.
Competition
The Jamaican market for Fertilizer is concentrated because of the few producers of
fertilizer, Nature growth will basically be competing against the various small and large
organizations importing or producing the product to meet the demand of the Jamaican
Agricultural market. The major competitors are Newport-Fersand, Johnson, Spectrum,
Miracle growth, and Pottinger. Newport-Fersand is the largest producer of the product
taking an estimated 40% of the market, Johnson currently owns an estimated 30%,
Pottinger has an estimated 5%, Miracle grow has 15%, and spectrum 10%.
Fersand fertilizer (chemical fertilizer) has a competitive advantage of being a company

with an established and trusted brand, excellent packaging, conveniently located and
distributed over the island however they have the highest price in the market. Johnsons
competitive advantage over the market is that they have a low price because there product
is naturally grown (organic), convenient packaging in different sizes, and they are
centrally located and distributed in Jamaica. The weakness of Johnsons fertilizer is that
they are unable to the demand for their product. Spectrum fertilizer is a chemical
fertilizer that is well established around the world; however the drawback of the product
is the price. Pottinger produces organic fertilizer at a low cost, however the packaging
and promotion is of very poor quality.
Nature growth tends to compete by offering exceptional service to our customers, by

providing variety in our products and use the disadvantages of our competitors as our
strengths. This will be achieved by through delivering to the market organic fertilizer that
is of high quality, excellent standard, and customized to fit the needs of customers. Our
major competitive advantages will be our low introductory prices, liquid fertilizer that
will be introduced to the Jamaican market place by nature growth, the location of the
business to customers will facilitate a timely response to complete their orders, and
producing our fertilizer naturally made without any chemical mixtures.
Page 37 of 50
Fersand
Johnson
Pottinger
Spectrum
Miracle Grow
Page 38 of 50
Fersand Johnsons Pottinger Miracle Spectrum

Grow
Price Expensive Cheap Cheap Expensive Expensive
Product Quality Satisfactory Poor Satisfactory Quality

Chemical Organic Chemical
Place Conveniently Centrally Unknown Unavailable Available

Located Located
Promotion Excellent Not widely Poor Poor Promoted,

Packaging, available Packaging, Packaging, Advertised etc.
Promoted No No
and Promotion Promotion
Advertised
Page 39 of 50
Conclusion and Recommendations
In conclusion the feasibility study done on the production of organic fertilizer shows a
very lucrative business proposal. The major opportunities are provided due to the market
shift in preference for organic fertilizer. The disadvantages of our competitors will be our
major focus in attaining a formidable market share and the projections made must be
achieved based on the following recommendations:
Recommendations
Careful marketing Planning.

Communicate with government agencies to receive additional information.
Perform additional research.
Look at identifying possible counters for threats posed.
Focus on Advertising and Promotion which is the major downfall of other
competitors.
Look at possible product lines such as organic hair products.
Implement Organic Fertilizer Awareness Programs at agriculture universities and
expos.
Become a member of JAS so as to facilitate networking opportunities.
Page 40 of 50
Appendix
Customer Questionnaire
Market Survey
References
Equipment Used
Page 41 of 50
QUESTIO AIRE
DATA GATHERING INSTRUMENT
Page 42 of 50
QUESTIONNAIRE
ature Growth represents a group of third year students in the field of Production and
Operations Management at the University of Technology Jamaica. In fulfillment of the
requirements for completion of the business degree we are conducting a survey to gather
information on the viability of organic fertilizer and the overall benefits that can be
extended to users.
This survey will be evaluated based on the responses received with a view of determining
the prospective demand for use of such product within the farming and household
environment.
We are hereby soliciting your participation by way of this questionnaire, and we assure
you that the information gathered will be kept strictly confidential.
Instructions
Please tick [] appropriate answers. Do NOT write your name on this form.
1. Age
A.18-25 years
B. 26-40 years
C. 41-50 years
D. 50 & above
2. Do you use fertilizer?

Yes No Not Yet
3. Which of the following areas apply to your use of fertilizer?
Plant nursery Domestic Purposes Large Scale Farming

Small Scale Farming Other
4. What are the important factors considered when purchasing a specific type of
fertilizer?
A. Type
B. Quality
C. Packaging
D. Price
E. Availability
F. Eco-Friendly
G. Others (Please specify) ____________________________
Page 43 of 50
5. Do you buy imported or locally made fertilizer?

Yes
If no, what do use?

__________________________________________________________
6. On a rating scale of 1 to 10 indicate your preferred brand of fertilizer

a. Spectrum Brand ____________
b. Miracle Grow ____________
c. Fersand ____________
d. Johnson ____________
e. Pottinger ____________
7. Within what price range do you pay for the following magnitude of fertilizers
a. 5Lbs___________________
b. 10Lbs__________________
c. 15Lbs__________________
d. 50Lbs__________________
e. 100 or more_____________
8. How much do you agree with the following statements?

Strongly Agree Disagree Strongly
Agree Disagree
Organic
fertilizer is
better than
chemical
fertilizer.
Organic
fertilizer is
cheaper than
chemical
fertilizer.
Neither
9. What problems if any do you have with the current brands of fertilizer?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
10. What can we do to improve or enhance the product?

________________________________________________________________________
________________________________________________________________________
Page 44 of 50
Market Survey
1. Background
A. What business are we in? (What needs does our business meet in the
marketplace?)
(23 sentences)
B. What services and/or products do we provide?

(1 paragraph)
C. What are our business objectives over the next two years? Be as specific as
possible, and make sure to address the following goals:
Number of customers
Revenue
Profit
Market share
D. What compelled us to start this business?
Page 45 of 50
2. Market
A. What is the market opportunity? What is the market size? Be sure to look at
market size with respect to geography and to industry.
B. How can the market be segmented into logical customer groupings?
C. What are the key industry trends that are fueling our success? What industry
trends can inhibit our success?
D. What is the economic climate now and in the next couple of years? How will the
economic climate affect our business?
E. Is our business or market affected by business cycles or seasons? If so, describe

how it is affected.
Page 46 of 50
3. Target Audience
A. What market segments are we targeting (list segment name and characteristics)?
What segments are we not targeting?
B. What kind of audience are we targeting? What are its members' demographics
and psychographics (for example, what keeps them awake at night, including
both fears and opportunities)? List multiple audiences in order of priority.
C. What is our customers primary reason for buying or wanting to use our product
or service?
D. Why would someone prefer our offering versus that offered by the competition?
(You might want to answer the section on competition and then come back to this
question.)
E. Are there any issues or concerns that the target audience might have regarding
this type of product or service?
Page 47 of 50
4. Competition
A. What categories of competition threaten our success? Label each category, and
identify its key characteristics. Prioritize the categories from greatest to least
threatening.
B. Which companies pose the greatest threat, and how do they differentiate
themselves? What strategic or tactical elements do they use that threaten our
success? List the strengths and weaknesses for each of these elements.
C. Which competitors have the largest market share within our target market
segments? Which competitors have the greatest visibility with our target
audience?
D. How will we differentiate ourselves to best combat competition?
E. What barriers to entry into the marketplace are we creating for ourselves?
Page 48 of 50
References
Works Cited
Jamaica Information Service. (2009). Retrieved September 28, 2009, from
http://www.jis.gov.jm/agriculture/index.asp
Jamaica, T. P. (2008). Jamaica Economic and Social Survey. Kingston: Central Planning
Unit
.
James, F., & Thomas, H. (2008). Jamaica Agriculture Society. Retrieved October 10,
2009, from http://www.jas.org.jm/
PlantFood.com. (2007). Retrieved October 6, 2009, from

http://www.plantsfood.com/optimalsoil.htm
The_Organic_Gardener.Com. (2004). Retrieved October 5, 2009, from http://www.the-

organic-gardener.com/organic-fertilizer.html
Paul H. Selden (1997). Sales Process Engineering: A Personal Workshop. Milwaukee, WI:
ASQ Quality Press. p. 23.
The Concept of the Marketing Mix" from the Journal of Advertising Research, June 1964 pp 2-7
Shane, Scott "A General Theory of Entrepreneurship: the Individual-Opportunity Nexus",

Edward Elgar, 2003, ISBN-10: 1843769964
Page 49 of 50
EQUIPME T
PRODUCT DESIG , PROCESS, FI ISH
Page 50 of 50

Feasibility Study

Caricato da

Informazioni sul documento

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Feasibility Study

Caricato da

Copyright:

Formati disponibili

The Nature Growth Project

LAMAR HEMMI GS 0701126

ROSE BACHA 0704821

OVLETTE JOH SO 0703558

GERRO THOMAS 0601486

POPULATION AND SAMPLE

Stratified sampling offers several advantages over other sampling methods.

Methodology is a systematic way to solve the research problem. It may be understood as

10 Questions: Open & Closed-Ended/multiple choice

Classification of age group of respondents

Age Group of Respondents

This identified our major demographic ttarget

People who use fertilizer

People who buy local or imported

Fertilizer brand ratings

Preferred Fertilizer Brand

Spectrum Fersand Pottinger Johnson Miracle Grow

Price comparison on the current fertilizer

$1000-$1500 70% 5% 25% 0 0

$1500-$2000 20% 60% 10% 0 0

$2000-$3000 10% 30% 55% 30% 0

$5000-$7000 0 5% 15% 70% 0

$8000 or more 0 0 0 0 100%

Organic is better than chemical fertili

Strongly Agree Organic

This table was a major determinant bbehind

Problems with current brands of fertilizer

PROBLEMS WITH CURRENT BRANDS OF

How to improve product

ovided suggestions on how to improve on the service and

Natural Sulfate of Potash

Services and Benefits of Nature Growth

On Vegetables And Small Fruit

Quality and Uniqueness

Marketplace Trends and Environment

Organic Fertilizer A Rising Trend

In selecting our target market we realized the following conditions;

Low brand loyalty

Increase in Fertilizer Usage by Parish 2007

20% Increase in Fertilizer Usage by

Potential Growth Opportunities

The quickest, most cost-effective

Changing or expanding distribution channels is another way to quickly increase sales

Potential threats that might pose a risk

Natural Disasters such as hurricane may damage the agriculture industry on a

Access to Capital Brand

Potential Yearly Sales

Year Estimated Potential Annual Estimated Cost of

12,000,000 Estimated Potential

6,000,000 Estimated Cost of

Based on data in our market survey, estimated customer potential is as follows:

How can we best satisfy their needs?

Excellence- We will guarantee a quality product that meets or exceeds the

Promotion and Advertising

Internet (Personal Website, Social Network- Facebook, Jamaica Yellow pages e-

Fersand fertilizer (chemical fertilizer) has a competitive advantage of being a company

Nature growth tends to compete by offering exceptional service to our customers, by

Fersand Johnsons Pottinger Miracle Spectrum

Price Expensive Cheap Cheap Expensive Expensive

Product Quality Satisfactory Poor Satisfactory Quality

Place Conveniently Centrally Unknown Unavailable Available

Promotion Excellent Not widely Poor Poor Promoted,

Conclusion and Recommendations

Careful marketing Planning.