Beruflich Dokumente
Kultur Dokumente
Educate environmental and financial benefits Create national standards Multi-channel messaging
Underlying assumptions: Public and private entities are motivated to create progressive recycling programs Retailers will adopt recycling center programs if they prove to be profitable
December 4th, 2010
Partner with large national grocery chain retailers to build in-store deposit refund recycling drop-off centers
Key Recommendation Partner with national grocery chains such as Safeway to build in-store recycling drop-off locations. These retailers provide wide reach with locations close to customers Build small 150 250 sq ft in-store drop-off depots, similar in size to Customer Service booths. They will give deposit refunds and/or loyalty points for recycled goods This operating model has been successful in Canada where recycling depots have been built in large grocery chains and collect cans, bottles, plastics & cardboards1 Sample Store Layout
Wine & Spirits Refrigerated Items Frozen Items
Bakery
Produce
Recycling Drop-Off
Customer Service
Deli
Source 1 http://www.changesrecyclingcentre.com/
Targeting large grocery retailers benefits both customers and retailers: Consumers would find it convenient to recycle since they already frequent grocery stores regularly Retailers would increase positive public relations and customer loyalty by becoming the central location in the community to shop and recycle
First Round Submission
Breakeven analysis for individual store location show positive NPV within 2 years and on-going net income of $60,408 per year
Estimated Annual Revenues Revenue / lb assuming stores collect aluminum cans, PET bottles, and HDPE bottles with current national weighted averages1 x Average large grocery store customer visits / year2 x Expected % of customer visits with recycling x Average lbs of recycled goods / visitor / year = Total annual revenues + Additional spillover spending of customers coming in store with more cash in pockets & choosing grocery retailer with recycling drop-off center over other retailers / year = Total combined revenues Estimated Annual Costs One-time construction & setup costs + Labor costs / year + Marketing & education costs / year3 + Distributor fees and misc. costs / year4 + Loyalty program costs / year = Total one time cost = Total annual cost
1 ww.epa.gov 2http://wiki.answers.com/Q/How_many_supermarkets_are_there_in_each_state_in_the_U.S. 3 http://environment.about.com/od/recycling/a/benefit_vs_cost.htm 4 http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTY1NnxDaGlsZElEPS0xfFR5cGU9Mw==&t=1
Units $0.36/ lb 183,000 10% 16 lbs $105,408 $20,000 $125,408 Units $70,000 $35,000 $10,000 $10,000 $10,000 $70,000 $65,000
1. Incentives Encourage higher rates of consumer recycling by providing incentives that matter to them
Major Challenges
Some consumers do not care about small $ return Some recyclables do not have monetary payback1 Retailers can provide cash, bonus points or 3rd party rewards program points for recycling (e.g. Save-OnFoods)2 Tiered incentives (silver, gold levels) to encourage loyalty and continued recycling behavior Provide community recognition of top recyclers in store and in other marketing material Change consumer perception recycling is desirable Inculcate mentality of yes, that s what we do Provides economic incentive to consumers for recycling
Recommendations
Impacts
2. Convenience Make it as easy as possible for consumers to take packaging to retailers for recycling
Consumers lack space and worry about cleanliness of storing recyclables1 Consumers do not have an easy way to transport recyclables to drop-off centers Encourage use of sealable recycling bags provided by retailers Devise different storage solutions for different living situations and share best practices with consumers Encourage trash compactors for apartment buildings and high density high rise buildings to simplify process of getting recyclables out of homes Customizable recyclable storage solutions for different living situations can create greater user adoption rates Decrease barriers to transporting recyclables
Major Challenges
Recommendations
Impacts
Sources 1. http://earth911.com/news/2010/10/25/why-people-dont-recycle/
Major Challenges
Recommendations
Impacts
3. Awareness - Increasing consumer recycling behavior requires education and simplification of programs
Consumers do not know what and where to recycle Consumers are not aware or are confused about the environmental benefits of recycling Leverage partners to create new national recycling campaign Use barcode labeling program that users can scan to find the right recycling center for that product (extend existing Earth911 locater App1) Educate consumers through collateral marketing materials at local recycling centers Potential for labeling program to be easily adopted for other recyclable materials Reduce confusion and misinformation about programs
Major Challenges
Recommendations
Impacts
Sources 1. http://earth911.com/iphone/
Convenience / Execution
1. Non-uniform recycling networks across different geographies 2. Lack of critical mass to make depot worthwhile 3. Certain municipalities do not prioritize recycling 4. Execution errors and possible bad press 1. Unable to change recycling mindset
Incentives
December 4th, 2010
Description
A successful program should be budgeted based on the earlier financial model. Expected $70k initial cost and $65k annual cost This is a rate of increase of 3.1% in recycling rates per year for ten years From 1990-95, the rate of increase was 11% per year, so we think this gain is achievable Each pound of unrecovered recyclables incurs a cost of $.03/lb, so this results in savings of $600 million USD per year There will be significant job growth and carbon emissions reduction as well
First Round Submission
Cost
Adoption
Environmental
Phase I
2015 - 2018
2014 2015 2016 2017 2018
Phase II
2019 - 2021
2019 2020 2021
Timeline
Project Management Pilot Phase Phase I (50% of sites) Phase II (100% of sites)
Partner with large national retailer like Safeway Identify 3 -5 favorable pilot locations Create marketing messages with EPA, Earth911 Open pilot locations and monitor progress
2011
2012
2013
Partner with CPG s to create recycling labels Review operating models and profits/ losses
Complete rollout for remaining locations Review overall program and measure changes