Name: Roderick Smart
Course Title: New Ventures and Entrepreneurship
Course Code: SBCO 6190
Lecturer: Dr. K’adamawe K’Nife
Topic: Profile of an Entrepreneur
Profile of an Entrepreneur
Entrepreneur Mr. Earl Martin CEO and founder of Island Products Manufacturers
Start Date 1992
Industry Manufacturing of Chemical Products
Innovation Sale of household cleaners in bulk quantities
Mr. Martin started his company island products Manufacturers in 1992, with the idea to sell house hold cleaners in bulk, at the time these cleaners could only be purchased in retail amounts no larger than 1 gallon.
Mr. Martin realized that when you buy a gallon ...view middle of the document...
Mr. Martin purchased an idle factory on Ken Hill Drive in 1994 and started manufacturing his own line of household cleaners which he still sells in bulk today.
Mr. Martin through his innovative thinking has revolutionized the household chemical sales business in jamaica, in 1992 no one would sell chemicals in bulk quantities at a tap, today in 2014 bulk chemical sales is a part of most wholesale’s range of products.
Mr. Martin’s motivation to start Island Products Manufacturing Company Limited came from the following:
* The desire to save on his personal purchase of household cleaners.
* A desire to own his own business and be his own boss.
* In 1992 the household chemicals market was operated by few players and prices were not competitive, there existed a need for a lower cost household chemicals provider and Mr. Martin identified and filled that need.
* The need for a lower cost product created the need for a lower cost way of distributing the cost to the retail client, this was identified by Mr. Martin and was fulfilled by selling household chemicals in bulk to people who brought their own containers and recycled them allowing both Mr. Martin and the customers to save on the cost of containers.
Procurement of resources
* Mr. Martin Financed his new venture totally through personal equity.
* A truck was borrowed from a family friend to use to transport the drums of cleaners and within a matter of months the business was earning enough that mr martin could buy a truck of his own.
Challenges Faced and Overcome
The major challenge faced by Mr. Martin was convincing the wholesale shops that he was selling to, that there would be a market for bleach and cleaners from a tap, IE. That the customers would bring their own containers to the wholesales and purchase the cleaners by refilling there used containers.
* Sensitizing the market to this bulk purchase and container recycling method of purchasing household cleaners.
* Cultural reticence is another challenge faced by Mr. Martin when he actually started manufacturing from scratch his own line of cleaning chemicals.
* Mr. Martins bulk chemical sales venture was the first of it’s kind in jamaica and as a market innovator it experienced double and triple digit growth in sales revenue and profits year over year for the first six to eight years of the business.
* As the bulk concept of the business took root in communities, competition entered the market and sales and profit growth have steadily declined since the first ten years.
* Over the last five years the company has averaged six percent growth but Mr. Martin proudly says that he knows that he now produces over Fifty percent of the bleach produced in Jamaica.
Customer Perception of the Business
* On inception Mr. Martins customers which were the wholesale stores, they had a low perception of the business idea.