Marketing And Strategy For A Cigarette Recycling Venture  10

Research Into Marketing And Strategy For A Cigarette Recycling Venture  10

Executive Summary

The research focuses on the ways that are viable during an introduction of a new venture in the market. In this case, the new venture is cigarette recycling which is to be introduced into the market. Background of the research on the topic of recycling of cigarettes is provided in details to enable the readers to understand the considerations that have been put in place. Strategies and methods used to capture the target group, which act as a supporting factor to the operation of the business, have also been discussed in details. The study goes ahead and explains the recommendations that should boost the venture or rather make it competitive or viable in the market as compared to other ventures. The venture could not only clean the environment but also boost the economy as this is a job creation venture. These strategies include advertisement and rewarding people who cooperate to attract more cooperation and boost the performance of the new venture.



For any new venture to survive in the market, research has to be undertaken to learn the basic details relating to competitors, target groups and the nature of the market itself. Marketing is an important aspect that should be put into great consideration when deciding to venture into a new business (Lavoie, 2015). For any business to be successful, strategic measures have to be adapted in a way that the new company does not come to closure upon initiation. Recycling products are beneficial both to the public and the shareholders in the business.

General Background Research on the Topic

Cigarette recycling turns cigarette butts into usable products such as ashtrays, railway ties, and shipping stacks. Cigarette smoking has significantly increased over the years resulting in increased sales. Advertisements and educational programs meant to discourage cigarette smoking have had little impact on the majority of the smokers. The increased cigarette consumption has, in turn, heightened its disposal rate which poses a threat to the environment (Mohajerani, Kadir & Larobina, 2016). Smoking has polluted the environment by contaminating water through toxins and poisoning animals that may confuse the disposed of butts with food. The increasing number of improperly disposed of butts has posed as an opportunity to conserve the environment and also generates income for recycling businesses in the field.

Operation of a Cigarette Recycling Business

Recycling begins by breaking down the cigarette butts into their constituent parts, that is, tobacco and paper. The organic material decays into fertilizer which may be used in nitrifying non-agricultural areas such as golfing grounds. The filter, on the other hand, is transformed into cellulose acetate; a plastic utilized in making shades. In the process, one must first sterilize and tear the butts into tiny pieces, mix them with other recycled products which allow them to melt into low standard plastic utilized in constructing railways ties and shipping stacks (Teixeira, Duarte, Garcez, Rubim, Gatti & Suarez, 2017).

Strategies That Will Boost the Cigarette Recycling Venture

For the cigarette recycling business to be a success, the following actions plans must be instituted:

Cooperation/Partnering With Tobacco Manufacturers

The recycling business should work hand in hand with the cigarette making companies to raise funds for the recycling program. The funds are meant to recompense individuals who assist in tobacco and butt clean-ups which are later utilized in manufacturing plastic shipping stacks and railway ties (Li, 2014).

The new venture can partner with the manufacturing firms in a way that the tobacco manufacturers will sponsor the receptacles that are placed by the new cigarette recycling firm. People will be easily attracted to a known firm than a new firm. Therefore, using a common brand in the bins may boost the ability to collect which will, in turn, keep the recycling business in operation for a long period.

Strategic Location of Receptacles

Receptacles refer to containers erected in specific points for disposal of cigarette butts. They are usually located in smoking zones to assure proper waste disposal and management (Smith, Lawson, Khangura & Johnson, 2015). Receptacles should be located in areas that are easily accessible to people for example along busy streets. People may smoke along streets and drop their leftover cigars on the road. As a method of reducing environmental pollution, the receptacles can be placed strategically where people can dispose of their used cigarettes.

.  The venture will be highly supported as the cigars collected in the receptacles will be recycled. In the long run, streets will be cigarette litter free, and the new venture will be supported.


Paying People to Deliver Their Cigarette Wastes

The strategy can be used to boost the new recycling business since more waste cigarettes will be collected. People will be willing to store up as much cigarette wastes keeping in mind that they will earn some amount upon collection. The new venture may be boosted since the collection of cigarettes for recycling will be easier (Wallace, 2015).

Marketing As a Strategy in Recycling Business/ Creating Awareness

Another strategy that could be adopted by the firm entering the cigarette manufacturing business is marketing. The new firm should make its intentions known to the general public (creating awareness). With such knowledge, the public may be more willing to participate and support the recycling company (Mee, Clewes, Phillips & Read, 2004). A new venture can create awareness through print media, social media, audio /visual media or through campaigns. Online marketing can be used in a way that, the new venture can create a website that contains all the activities it undertakes since some people find knowledge through the use of the internet.

Specific Implications of Cigarette Recycling Venture

A recycling business venture may encounter the following challenges:

Difficulty Accessing Capital

Many recycling firms require large amounts of capital to start up. For operations to begin, they need to have heavy machinery, latest upgradable technologies, funds to cater for risks associated with changing commodity prices and uncertainties in butt supply. All these difficulties pose to scare away investors as the risks associated seems too high (Lee, 2012). For the entrepreneurs, it becomes difficult to access adequate funding with the risk profile associated.

Electronic Cigarettes Pose a Threat to the Business Viability

The introduction of electronic cigarettes mainly was a way to help smokers slowly quit their addiction. Others smoke the electronic cigarettes for recreation, and others believe it to be less risky than smoking. The innovation poses a risk on the cigarette recycling venture as it possesses to reduce the butt collection amounts (Chang, 2014). If more electronic cigarettes are manufactured and sold in the market, this means a considerable amount of individuals will shift from traditional cigarette smoking to electronic smoking. The number of cigarette butts disposed of will significantly reduce and thus bring down the collections. The recycling business will thus manufacture fewer rail ties and shipping tracks which will increase their costs and reduce their income.

Cigarette Butt Collection

Massive butt collection may pose a challenge to the recycling business. To assure massive collection, the business needs to locate recycling bins at specific locales all over the major towns and cities (Barnes, 2011). Setting up the bins may require more funding which may limit the business to a certain extent. The collection bins may also be liable for vandalism which may incur unnecessary costs.


The recycling field has other players who have already established their dominance in the sector. For instance, the TerraCycle Company has over seven thousand receptacles in more than eight countries in the World including the major United States cities, the United Kingdom and in Australia. They have invested heavily in the recycling business and established strong affiliations to aid in generating funds and assuring continuity. Such dominance may pose a threat to an incoming entrant in the recycling business (Wallace, 2015).


The following recommendations can be implied to boost the viability of the venture.

Establishing Proper Networks

To solve the financial difficulty issue, the entrepreneur needs to establish proper networks and contacts. He or she should develop a good business plan and put into consideration different types of projects availed to him or her. He or she should ensure to get good enlightenment on the project through his or her lawyers, investment banks or accounting firms. Seeking information and advice from such parties will help determine the exact amount of capital needed for the investment and the possible risks associated with the venture. They give further possible sources of capital and advice on the best financing methods for the business, for instance, equity financing, debt financing or both. Networking will help the entrepreneur easily raise adequate funds to finance the business.

Operational Diversification

To curb the difficulty with electronic cigarette introduction, the entrepreneur should consider diversifying his or her operations. He or she should incorporate for instance plastic recycling as it is also a major field in the recycling sector. Every day millions of tons of plastic waste materials are disposed of by consumers which can pose an opportunity for a recycler. Diversifying will help reduce the investment risk and cater for downfalls associated with reduced butt amounts collected in case cigarette consumption falls in the future.

Linking With Various Stakeholders

To assure massive butt collections, the business needs to partner with the cigarette manufacturing firms and the local authorities to fund the recycling bins. Funding will assure adequate distribution of the collection points all over the major cities and towns. The local authorities will aid in securing the bins from vandalism and inhibiting irresponsible cigarette disposal from the members of the society. The rules against improper disposal will help increase the amounts of butt collections in all locales.

Adoption and Innovation

For the entrepreneur to survive the competition, he or she needs to keenly study the strategies utilized by TerraCycle from management to operations. The knowledge will help gain a better insight on the field on the probable ways of dealing with challenges already encountered by the firm. The entrepreneur will also be able to generate new ideas not used by TerraCycle to help gain a competitive advantage.


Venturing into the cigarette recycling business may seem risky and inappropriate to the majority of investors. The business is usually characterized by high capital requirements, fear of lack of continuity and dynamism in today’s market. Factors such as funding, investment level, competition, and networking also play a major role in assuring success for the business. To assure success and continuity for the cigarette recycling business, the entrepreneurs need to network fully with other partners such as banks, accounting firms, and lawyers to assure optimized capital utilization and funding. They also need to pay attention to the changes in the business by diversifying their operations. They should not only prioritize on recycling cigarettes but also on items such as mobile phone, chocolate wrappers, and plastics. They should also consider partnering with other stakeholders in the society such as the cigarette manufacturers, local authorities, and the public. Partnering will assure funding, security for their assets and massive collections of the cigarette butts. To gain a competitive advantage, they should study their opponent and come up with new ideas.


Barnes, R.L., 2011. Regulating the disposal of cigarette butts as toxic hazardous waste. Tobacco control, 20(Suppl 1), pp.i45-i48.

Chang, H., 2014. Research gaps related to the environmental impacts of electronic cigarettes. Tobacco control, 23(suppl 2), pp.ii54-ii58.

Lavoie, D., 2015. The discovery and interpretation of profit opportunities: Culture and the Kirznerian entrepreneur. Culture and economic action, 48.

Lee, J., 2012. Get Your Butt Off the Ground!: Consequences of Cigarette Waste and Litter-Reducing Methods.

Li, Y., 2014, August. The business model innovation of social entrepreneurship firm: A case study of TerraCycle. In Management Science & Engineering (ICMSE), 2014 International Conference on (pp. 507-514). IEEE.

Mee, N., Clewes, D., Phillips, P.S. and Read, A.D., 2004. Effective implementation of a marketing communications strategy for kerbside recycling: a case study from Rushcliffe, UK. Resources, Conservation and Recycling, 42(1), pp.1-26.

Mohajerani, A., Kadir, A.A. and Larobina, L., 2016. A practical proposal for solving the world’s cigarette butt problem: Recycling in fired clay bricks. Waste management, 52, pp.228-244.

Smith, N., Lawson, J., Khangura, A. and Johnson, B., 2015. Cigarette disposal investigation and assessment.

Teixeira, M.B.D.H., Duarte, M.A.B., Garcez, L.R., Rubim, J.C., Gatti, T.H. and Suarez, P.A.Z., 2017. Process development for cigarette butts recycling into cellulose pulp. Waste Management, 60, pp.140-150.

Wallace, P., 2015. TerraCycle recycling the’unrecyclable’. Waste Management and Environment, 26(3), p.20.



Place this order or similar order and get an amazing discount. USE Discount code “GWEXDDSRGCF10” for 10% discount