[COMPANY]

[Address] Office [Phone] Fax [Phone]

[City], [State] [ZIP] e-mail: [email@example.com]

[Date]

[COMPANY] Wood Ash

Preliminary Product Development and Market Research Study

Introduction

[COMPANY] manages wood ash generated at its [City] fiberboard manufacturing facility. Approximately 1,000 tons are generated annually, which are disposed of at a local [COMPANY] landfill.Having tested the product, it is understood to contain some nutritional and liming value. Although the product is somewhat coarse, [COMPANY] is willing to refine the product if viable markets could be developed for it.

Possessing unique experience in recycling organic by-products, [COMPANY] has requested that [COMPANY] ([COMPANY]) prepare a proposal for completing preliminary product development and market research efforts. The enclosed proposal outlines the tasks necessary to provide [COMPANY] with the data it requires to further evaluate the marketability of its ash product.

Task 1 - Facility Tour Visit / Product Evaluation

At the onset of the project, [COMPANY]’s project manager will meet the [COMPANY] staff and complete a facility tour. The meeting will allow [COMPANY] staff to meet personnel involved in the ash management program. It will allow the parties to further discuss program goals and plans, potential processing options (e.g., crushing, screeening, etc.), as well as obtain relevant test data pertaining to the ash product. [COMPANY] may also request the completion of additional product testing. These steps will allow [COMPANY] to provide [COMPANY] with optimum project results. Parties involved in the program will also discuss relevant issues regarding program development, financial and market development goals, etc. It will also allow [COMPANY]’s project manager to tour the facility and identify equipment already owned by [COMPANY].

TASK 2 Product Development / Marketing Concepts

Using the data obtained in Task 1, as well as in-house expertise and some preliminary market research, [COMPANY] will provide the [COMPANY] with a list of realistic product distribution/marketing and/or product development options. These options may include sales to farmers, sod farms, turf mangers, topsoil bending, etc., as well as creative environmental uses (e.g., de-odorizer). Once [COMPANY] approves the list of potential ash options/products, [COMPANY] will complete more in-depth market research (Task 3) to better determine successful implementation and related economic requirements. [COMPANY] will also propose a list of market sectors in which it suggests evaluating. As part of this Task, [COMPANY] will also determine any registration (e.g., registering with [COMPANY] as a liming agent of fertilizer) related requirements necessary before distribution, as well as likely equipment requirements.