Marketing strategy for innovative start-up in plastic waste recycling

Abstract

The growth of population, development of technologies and economies prompt plastic production, but pollution associated with plastic waste and with the primary plastic production a serious global concern. (Kaza et al. 2018) According to the report of European Commission issued in 2016 `optimal recycling solutions which produce high quality recycled plastic that is on par with virgin plastic will therefore be essential`. (European Comission 2016) Blue Plastics is a start-up company that is taking an innovative approach on recycling, implementing the technology, that allows Blue Plastic`s product to be significantly better than the product of the competitors. According to the conducted tests, the recycled granulate is 99.5% close to virgin plastic, has no odour and has good processability, and according to the laboratory testing does not require adding virgin plastics during film processing. (Moalin et al. 2015) The first facility of Blue Plastics with a minimum output capacity of 6.000 tons per year will be built in the second quarter of 2022 and will focus on producing recycled Low Density Polyethylene granulate. (Blue Plastics, 2019) In this work, author explores how Blue Plastics can benefit from the current market situation in plastics production and recycling industries; circular economy and sustainability goals, that plastic converters must achieve; and national and European legislations. This paper also provides the company`s shareholders and management with information necessary for making strategic decisions: information about creating value for the target customers on identified market, quantified value proposition and marketing mix, and recommendations on the best marketing strategy for Blue Plastics` product. By delivering high quality product to plastic converter industry, that can substitute virgin plastics in majority of non-food applications, Blue Plastics will be leading the radical innovation in plastic recycling industry. Is successful, this company has the potential to improve the overall image of recycled material for the whole plastic recycling industry, stimulate further usage of its innovative technology worldwide and urge other companies to invest in advanced recycling technologies.