Final Presentation 4.22
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Transcript of Final Presentation 4.22
B2 Team 5: Veronica Cadavid, Matthew Fineberg, Michael Gates, Catherine Gatto,
Richard Marine, Kinnery Patel, Andrew Reiter, Justina Sung, and Shangjiu Yang
BasilThymeOregano
Basil
Thyme
Oregano
BasilThymeOregano
Shang’s Simple Seasonings
What is Shang’s Simple Seasonings?
3 popular herbs with
innovative packaging
Competition:● Traditional Dried Seasoning
● Pre-portioned Seasoning Mixes
● Fresh Herbs
Funding
Fixed Assets: $43,179
Cash: $102,907
Operating Expenses: $155,474
Raw Materials and WIP: $18,727
Finished Goods: $929
We are requesting: $321,216
Market Segmentation
“Busy
Young
Adults”
“Middle-Aged
Convenience
Seekers”
Always Fresh. Always Simple.
Events Cost: $55,545
Awareness:
Segment 1: 2.22%
Segment 2: 1.11%
Consumer Events:
● Philadelphia TASTE (Celebrity Chef)
● NYC Food and Wine Festival
● Green Festival (4 cities)
● Boston Marathon Sport & Fitness Expo
Trade Expos:
● Natural Products Expo
○ East and West
Online Cost: Year 1: $63,036
Year 5: $134,184
Google Adwords
Sponsored Social Media
Featured Blog Posts
Costs and Awareness
Total Cost
Year 1 $308,416
Year 5 $665,795
Awareness Segment 1 Segment 2
Year 1 8.13% 6.83%
Year 5 20.32% 14.77%
Distribution Channels
Independent Grocery
StoresChain Stores Mass Merchandisers Online
California
Washington
Massachusetts
New York
Pennsylvania
*Channel Conflict starting in Yr 3.
ACV Year 1 Year 2 Year 3 Year 4 Year 5
Independent Grocery Stores 2.40% 4.22% 4.49% 3.49% 3.03%
Chain Stores 7.70% 10.78% 10.78%
Mass Merchandisers 12.85% 17.99%
Online 12.00% 12.00% 12.00% 12.00% 12.00%
Overall 14.40% 16.22% 24.19% 39.12% 42.59%
Pricing Strategy
● Competition Orientation: o McCormick: $2.48 per 0.75 oz bottle → $12.40
Distribution Channel Discount Price
Online & Independent
Grocery Stores
N/A $9.99
Chain Stores 15% $8.50
Mass Merchandisers 20% $7.99
Factory Location
● Mound House, Nevada
○ 5,400 Square Feet
○ Rental Cost $22,680/Year
○ Benefits:■ No State Corporate Income Tax
■ No Personal Income Tax
■ Close to raw materials
Materials/Suppliers
Quality Control
Inspect Raw Materials
Process control
Monitor finished goods
Continuous improvement
Costs/Margins
Financial Results
Terminal Value
● CAGR: 4.8%
● CAPM Discount Rate: 12.24%o 1.14 Beta
o 1.920% Risk Free (10-Yr Treasury)
o Excess of 9%
● Declining Perpetuity after Year 8
● Terminal Value of $2,008,489
Comparables
Sensitivity Analysis
Risks
Why Invest?
Healthy NPV/IRR
Excel off growing health and convenience trends
Company Culture
Differentiated product in a homogenous industry
Thank You!
Questions?
Agenda1. Necessary Funding
2. Macro Environmental Trends
3. Description of the Product
a. Competitors/Why we are better
4. Marketing
a. Segmentation
b. IMC
c. Creative Strategy
d. Pricing
e. Distribution
5. Operations
6. Materials/suppliers (supply chain)
i. Location of Factory
a. Quality Control
b. Costs/Margins
7. Finance
a. Financial Results
b. Comparables
c. Sensitivity Analysis
8. Risks (QM)
a. what they are
b. how to mitigate them
9. Why Invest
Back-Up Slides
Income Statement
Statement of Cash Flows
Balance Sheet
Foreign Supply Chain
Domestic Supply Chain
Year 1 IMC Schedule
Year 5 IMC Schedule
Switchover Point
Demand Curve – Seg. 1
Demand Curve – Seg. 2
Base Case – Seg. 1
Base Case – Seg. 2