True Earth Paper: Round 2

After introducing True Earth Paper (TEP) in my latest post, a great questions was asked by one of my peers: Does TEP patent their processes or product, and are their costs higher, thus creating a barrier for competing companies to follow suit and use bamboo?

I emailed TEP, and heard back from CEO Brad Kornelson, who graciously took the time to answer my questions. Here are some highlights from the correspondence:

  • TEC has no patents and welcomes competition
  • There are other brands of bamboo bathroom tissue in North America
  • The product is targeted to consumers looking for alternatives to regular paper
  • 80% of toilet paper is bought on sale
  • As Silk n’ Soft grows, established firms may begin to enter the market, which should help to solidify Silk n’ Softs position and brand awareness

The main point I drew from the email was how TEP is targeting consumers. Right now, the company is focused on those who are actively searching for sustainable alternative, rather than focus on changing behaviours of regular consumers. The only way they attract new consumers is when their product goes on sale at the stores.

Wow.

Here is a company that understands how challenging changing behaviours is, particularly when there is a higher cost associated with the product. They focus on making themselves available to consumers who shop green and care about where their products come from.

So, how does TEP grow its target audience? Well, they have a solid position as a leader in the Canadian market with regards to sustainable bathroom tissues, and are working to raise awareness of their brand. Most importantly, the company is using sales promotions as a way to penetrate the market and grow product share. This strategy makes sense because of the cost-driven marketplace that the product competes in, as well as makes it easier to find new customers instead of direct marketing to them individually.

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