Terracycle 5 C's Model

Customer – the target of this fertilizer company are individual USA and Canada gardeners, with small gardens or plants within their homes. This individual could be segmented into two targets: 1) the segment that cares about environment and 2) the segment that do not want to harm their plants with chemical fertilizers. The main purpose of their buying is to enhance the plants’ growth.

In the last few years there has been a new trend, people pay more attention to the way the company and its products/services have an in impact on the environment. They are more aware and want to contribute to a better world and one way to do that is to buy products that have null or positive impact on the environment, and that is the case of TerraCycle.

This company follows a B2B2C model, that is, the company (business) sells to a retailer (business) that sells to an end consumer. The company is represented in seven different retailers across the USA and Canada. The total sales are higher in the USA.

Company – the main product of this company is a fertilizer made by organic waste, with a natural process (worms) and in a recycled package. It is 100% natural, so a natural product for a natural end, the plant. This type of product meets the green consumer’s needs and also those consumer that care about their plants. At first sight, TerraCycle seems to have a sustainable product line, the raw material is free, the process is natural (uses worms) and the packaging is cheap.

Competition – regarding the fertilizer industry, TerraCycle has two major business competitors, namely The Scotts Miracle-Gro Company and Spectrum Brands. These competitors are much larger in size than TerraCycle. The Scotts Miracle-Gro Company has the Miracle-Gro, a dominant plant food in this industry, because it uses the brand recognition. Despite of its strength in brand, it’s not a natural product. Then, there is Spectrum Brands that has a Garden Safe line, a natural fertilizer like All Purpose Plant...