I.

TARGET MARKET(S)
A. Primary market: Industry users of charcoal includes restaurants and
fast food stores who offer grilled products like Mang Inasal, Chick-Boy, B

B. Secondary market: Household dominates the whole population, price

conscious population segment due to priorities and expenditures prefer
buying in retail than in bulk.

C. Metal Industry
 Price sensitive
 Profit oriented
 Uses charcoal for electroplating and metal purification processes

D. Environmental sector
 Service oriented
 Environmental sensitive
 Aims to promote green environment
 Uses charcoal in spill cleanings, air and water purification, ground
water treatment and large-scale water filtration system.

II. MARKETING MIX

1. Product
Charcoal briquette made from water lilies. Charcoal liliy when burned,
emit a steady heat with low clean flame and therefore environment
friendly fuel alternative for cooking and other industrial uses. It is also
easy to ignite and burns completely in at least 50 minutes
2. Price
The company will use market penetration as a pricing strategy and
retail pricing strategy to satisfy the customer in buying charcoal lily in
lower price and at the same time to maximize the company’s profit.
1.3 1.3.1 Market structure and Analysis Target Market and Customer Base Uganda’s
national development objective is an accelerated, economic growth through increased
productivity and enhanced agricultural and industrial production which will result in
increasing employment opportunities, an equitable distribution of income, and a reduction
of poverty. The realization of this objective requires, amongst others, that quality energy
services be made available to people in a sustainable, cost-effective, and affordable
manner. In Uganda, wood Kamuli, Luweero Wakiso, Jinja and and urban centres charcoal
is supplied by charcoal dealers from Nakasongola, Kayunga, and Masindi districts to semi-
urban and urban centres of Kampala, Mukono districts. 1 The charcoal is sold through
vendors in semi-urban who sell the charcoal to households, restraurant and hotels. 1
National Biomass Study 2002; National Environment Management Authority of 2001.
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I will select ten wood charcoal vendors in Owino, Nakawa, Banda, Kibuye, Kamwokya,
Kalerwe, and Namasuba; these are all markets around Kampala. They will be asked to try
my briquettes. The selected charcoal vendors will then sell the briquettes to households,
chapati businesses, restaurants, and hotels. The changeover from wood charcoal to
briquettes requires little behavioral change. This is because there is a direct substitution
of wood charcoal to briquettes which eliminates the need to modify the stoves. Target
markets are; • Households, chapati businesses, restaurants, and hotels in urban centres.
These are the highest consumers of charcoal. Natural Uganda, Ltd. also intends to
approach tourist lodges in the national parks because they are very keen to see an
alternative to wood charcoal, especially the JGI (Jane Goodall Institute), Wild Fronties,
Ndali Lodge (Fort Portal), Mihingo Lodge (Lake Mburo), and those lodges adjacent to
Bwindi and Budongo. Future opportunities exist, especially if the Government and local
authorities decide to enforce the restriction on cutting down trees. 1.3.2 Market size and
potential Uganda’s population is estimated at 31 million people and is growing at a rate of
3.5% per year. Of Uganda's population, 28.8 million people use firewood and charcoal as
a fuel for cooking. This is a sizable market for charcoal briquettes. Table 1, shows
household energy consumption. Electricty was consumed by a small percentage who uses
it for lighting purposes. The majoring of households used firewood and charcoal for
cooking. Table 1: Household Energy Consumption H He ne rg ycon s u m ptioninp erce
nta g e(% ) Y ear Ty p e 1991 20 02 Electricity for lighting 5.60 7.70 Taddoba for lighting
NA 74.80 Firewood for cooking 88.20 81.80 Charcoal for cooking 10.20 15.20 Average HH
has 4.7 mem bers Source: Uganda Bureau of Statistics, 2002 According to the 2002
population census, the proportion of people using firewood decreased from 88.2% to
81.8%. During the same period, the percentage of those using charcoal rose from 10.2%
to 15.2%. Confidential & Copyrights © 2009 – Request permission to share or copy
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Firewood and charcoal consumption in Uganda, is shown in table 2. Table 2: Consumption
of Firewood and Charcoal in Uganda Source: UBOS2, 2003 Table 2, shows the biomass
residential consumption of Uganda. Kampala district consumed 245,000 tons of charcoal
in 2003. The demand for charcoal is expected to increase because of increasing
population. Wood charcoal production, on the other hand, is slowly decreasing because
trees are being depleted. Therefore, manufactured briquettes are an alternative to wood
charcoal.