The Challenge

Prepare a Go-To-Market Strategy for Stone Paper

The matter of packaging is a huge dilemma in our modern society. Although plastic packaging is what might come to mind, cardboard and paperboard account for 41% of solid waste, and in 2018, cardboard and paperboard consumption reached 74.2 million metric tons. Nearly all consumer goods are packaged and shipped in cardboard, and in the age of e-commerce, that means a massive quantity of shipments.

The issue of cardboard consumption opens the door for innovative solutions like Stone Paper. Over the fall 2021 semester, I led a team that consulted Jurriaan Kamp, founder of Kamp Solutions, to analyze potential US market entry for Stone Paper. Stone Paper is made of 80% calcium carbonate and 20% high-density polyethylene (HDPE). Calcium carbonate is a common compound found in rocks. HDPE is a non-toxic and recyclable compound that is used as a binding agent for calcium carbonate. Unlike pulp paper and traditional cardboard, Stone Paper is infinitely recyclable and photodegradable.

After meeting with Jurriaan, my team put together the scope of the project that would be delivered to Kamp Solutions:

• Research
  • Different industries that use large quantities of cardboard
  • Costs of cardboard at respective quantities
  • Production process of cardboard
  • Traditional cardboard recyclability
  • Which cardboard companies hold the most market share (ie. future competitors)
• Primary Source Interview Insight
  • 1 agricultural worker
  • 2 grocery stores
  • 1 other, more obscure, source
• Comprehensive market recommendation of our findings

The Work

Identifying the Need

In the research portion of the project, we looked into the production of pulp paper and cardboard and it’s impacts on the environment. Over 4 billion trees are cut down annually for the production of pulp paper, making deforestation the greatest concern. The trees that are used are fast-growing pines that are grown on plantations. These plantations account for biodiversity loss and the disruption of the natural environment. The next greatest concern is that of water. It takes over 3 gallons of water to produce one sheet of paper, and the pulp paper manufacturing industry is the largest consumer of water in developed countries.

The next area of research was waste and recycling. Globally, more than 800 million tons of cardboard are thrown away annually and for each ton of cardboard that goes un-recycled, 2.11 tons of CO2 is released into the atmosphere. Like many other recyclable goods, cardboard must be in a certain condition to be recycled. If wet or dirty, cardboard must be thrown away in the recycling process. However, recycling cardboard is impactful, recycling just 1 ton of cardboard saves 700 gallons of water and 24% of the energy needed to make virgin cardboard.

Because the goal of our project was to determine market entry, we interviewed primary sources in the industry. Initially, we tried to contact International Paper Company, which is America’s largest manufacturer of paper products. After multiple attempts and no responses, we concluded that multi-billion dollar companies aren’t interested in answering college students’ questions. We had similar dead ends with other companies. Our most helpful source was Mike Massimino with Alberson’s and Kroger. From Mike’s numbers we concluded that just one Albertson’s store bales 2.5 tons of cardboard per week.

The Results

Brining Sustainable Solutions to the US Packaging Industry

With the research concluded, we formulated our market entry recommendations to present to Kamp Solutions.

1. Locate investors to finance Stone Paper factory in the US
2. Enter market starting with small progressive businesses
3. Prove successes with small businesses and develop strategy to scale
4. Enter e-commerce market

Much more went into this project than what is outlined in this post. If you’re interested in more of my team’s research and what went into our recommendations, see the formal report.