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Circa Company’s Marketing Strategy Essay

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Updated: May 7th, 2019

Introduction

Circa majorly deals with proprietary processing of waste cellulose into products that can add value to the economy. The developments were from small scale to full continuous operational processes. Biotechnology industry deals with the use of technologies to convert living materials into usable products and services.

Mostly biotechnology is applied in human and plant for purposes rendered towards agricultural use. In the global market today, biotechnology plays an important role in developments of products across diverse industries (State of victoria, 2009).

Circa

Circa is a company that deals with the conversion of waste cellulose into value added products. Circa has a technology called Furacell, which combine inexpensive industrial catalyst with heat, in a continuous reactor to convert cellulose waste into char, water, and a platform chemical. Later on in the process, there is conversion of the produced chemical into solvents and agrichemicals.

Circa uses, feedstock ranging from paper mill waste, straw, forestry residue and recovered paper. Through this technology circa produces three products, one is a C6 liquid chemical, which is at 15 percent. Secondly is agri char, which yields 40 percent and lastly is water, which takes 45 percent of the total yield (Circa, 2009).

Marketing objectives

One objective of circa is to specialize in chemical niches where sustainable raw materials are a necessity as they are used in the process. Another market objective of circa is to reach a market pricing of not less than 2,500 Australian Dollars per tonne.

Circa has a long time objective of developing fifty and above plants in Australia, and 300 and above plants in china and India in order to capture the global markets with their products. Lastly, circa has a focus on small or medium cellulose opportunities that can easily reach their target market (Circa, 2009).

Marketing strategy

Due to the low density of cellulosic waste and high cost of transportation involved, circa’s market strategy is to use the mobile furacell reactors in the feedstock locations. This helps in conversion of cellulose waste into high energy density liquid chemicals products that are more cost effective in transportation to centralized refineries.

This makes it easy for other manufacturers to get their products easily. Another market strategy circa is developing is partnership with other companies who can develop levoglucosenone derivatives for commercial purposes. Then again, they are looking to collaborate with suppliers of agricultural equipment who can sell and maintain their plants.

Another strategy that circa uses is offering In-market products that are readily available in the market and are customized on research projects. Circa has a research and development philosophy focusing on renewable products that will replace petrochemicals thus lowering the cost of production (Circa, 2009).

Carbon tax issued in Australia

Carbon tax is pricing based on the content of carbon in fuels and forms part of environmental taxes levied on companies in Australia. A carbon tax gives advantage to industries by reducing amount of gas that the industries emit from the greenhouses. The Australian carbon market has a target of between five to 15 billion Australian dollars by the year 2015.

The Australian Carbon Pollution Reduction Scheme is in place to enforce the Australian government’s commitment to reduction by 60 percent by 2050 in emissions (Ellis, 2011).

Discussion

In Australia, Victoria was the first state to make their electricity and gas industry privately owned. Due to this, Australia has made energy exchange a more important activity in their development. Energy innovations and technological advances support startup businesses in provision of mass for the growing carbon market.

Another benefit of the carbon tax issue in Australia is that it supports business environments in expansion of opportunities in the renewable energy. This is possible due to strong potential of the available markets and resource availability. Lastly, there is the strategic location advantage brought about by the diverse multicultural workforce (Ellis, 2011).

Australian market

One of the major products of the Australian market is bio-ethanol. This product is still developing in Australia. In Australia, three facilities are for production of bio-ethanol. The largest facility in production of bio-ethanol is called Manildra and is located in Nowra. The second facility is called CSR distilleries located in Queensland. The main feeders for this bio-ethanol production in Australia are majorly wheat, sorghum, and molasses.

Bio-ethanol production categories are into two generations. The first generation mainly consists of sugar or starch that is used in the production of bio-ethanol. Second generation bio-ethanol is comprised of cellulose or hemicellulose and are inclusive of undesired materials such as woody plants and forestry waste. The benefit of this second-generation technology is that they produce higher yields in bio-ethanol (State of victoria, 2009).

Global market

The global carbon market has a target of having the size of global communities market. Another goal of the global market is to create opportunities for carbon market services and invest in low emission technologies (Ellis, 2011).

Conclusion

The location of Australia is a major contributing factor in its carbon market. This advantage helps in establishing international links with multinational corporations and professional service companies (State of victoria, 2009).

References

Ellis, S., 2011. Growing potential: Industry revenue expands with the return of research funding. Melbourne: IBIS World Pty.

State of Victoria, 2009. Carbon Market Opportunities. Melbourne: Invest Victoria.

Circa, 2009. VCAMM Innovation Centre. Burwood: Knoxfield Victoria.

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IvyPanda. 2019. "Circa Company's Marketing Strategy." May 7, 2019. https://ivypanda.com/essays/circa/.

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IvyPanda. (2019) 'Circa Company's Marketing Strategy'. 7 May.

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