Team 2 Fuad - Strategy Lab

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NutriBlast Revitalize, Rejuvenate, Refresh Team 2 ~ StrategyLab

Transcript of Team 2 Fuad - Strategy Lab

NutriBlast Revitalize, Rejuvenate, Refresh

Team 2 ~ StrategyLab

01LOCAL

02HEALTHY

0304BENEVOLENT

NUTRIBLAST

SUPPLE-MENTARY

Structure Introduction

Engagement Model Value Proposition Operation Model

Revenue Stream Cost Structure

01Customer Segments1. Who are our customers?2. What do our customers desire?3. What are their preferences?

02 Distribution Channels1. How do our customers prefer to get the

product?2. Why they prefer to achieve in this way?3. Other options?03Customer Relationship

1. Online Services2. Other Services

Engagement Model

01Customer Segments

02 Distribution Channels1. How do our customers prefer to get the

product?2. Why they prefer to achieve in this way?3. Other options?03Customer Relationship

1. Online Services2. Other Services

Engagement Model

Our Customers are Adults of Age 25-44 with an Income Higher than $83k

● Median age is 40 years old● 52% is between the age of 25 -

64● Median household income per

age group:○ Under 25 yo: $49k ○ 25-44 yo: $83k 24% of population○ 45-64 yo: $110k 28% of population○ Over 65: $78k 15% of population

● Increasing population

Team 2 ~ StrategyLab

People are Shifting Towards Healthier Beverages

● Decrease in carbonated drink consumption

● Increase in health focused stores

● Product size shifting towards smaller packaging

● Target age range for NutriBlast is 18-45

The Supplement Industry is Growing in the US● Aging population: number of

American over the age of 65 has increased at an annualized 3.6%

● 74% of adults over the age of 55 took dietary supplements on a regular basis

● Sports nutrition and herbal supplements are expected to account for 48% of the industry

● Becoming popular among the average American because of higher costs of healthcare Team 2 ~ StrategyLab

Preferences: Vitamins and Proteins in an Apple or Orange Juice

01Customer Segments1. Who are our customers?2. What do our customers desire?3. What are their preferences?

02Distribution

Channels

03Customer Relationship1. Online Services2. Other Services

Engagement Model

86% of Customers Expect the Product to be found in Big Supermarkets and/or in Local Grocery Stores

● Most people expect to find the product in big supermarkets (Whole Foods, Star Market) or in local grocery stores

● We believe we should also sell our product through farmer’s markets○ There are many in the

Hudson Valley○ Customers would trust us

more because they would buy the juice directly from fruit providers

01Customer Segments1. Who are our customers?2. What do our customers desire?3. What are their preferences?

02 Distribution Channels1. How do our customers prefer to get the

product?2. Why they prefer to achieve in this way?3. Other options?03Customer

Relationship

Engagement Model

NutriBlast’s Website: Available to Customers Whenever they Want

Product Order

After-sale services

Charity Program

- Fruit and Vegetables

- Supplements

- “One for All”- Recycle- 100K Grant

Suppliers Partners

-Brand Establishment

-CRM

KeyFactor

Operation Model

KeyActivities

- “One for All”- Recycle- 100K Grant

Suppliers Partners

-Brand Establishment

-CRM

KeyFactor

Operation Model

KeyActivities

B

A Providers: Local farms of Hudson Valley

Partnership: Hudson Valley Fruit Distributors

Fresh Fruit and Vegetable will be from the Hudson Valley

- The soils, climate, and topography of the Hudson Valley are well suited for fruit production. Despite increasing urbanization, the Hudson Valley supports more than 500 fruit and vegetable farms that occupy more than 18,000 acres

- Apples in Hudson Valley grow year round. They have most of the year all fruits and vegetables we need

- Represent over 50 New York State and New England growers in the marketing and sales of their fruit.

Text

Your text

TextVitamin World is based in the U.S. They source the most unique ingredients from all over the world.

Vitamin World

Partner

We get Vitamins and Sources from Vitamin World

- Fruit and Vegetables

- Supplements

Suppliers Partners

-Brand Establishment

-CRM

KeyFactor

Operation Model

KeyActivities

Marketing Strategy: “One for All” Project makes Buyers more Inclined to Buy our Product

One for All Project

- 83% of people would be more willing to buy the product if they knew part of the proceeds are donated

- 5% of sales will be used to produce supplement juice that will be donated to charity

- Partnership with Community Foundations of The Hudson Valley. The juices will be given to the homeless shelters in the Hudson Valley or devoluted to the low income pre-schools present in the area.

Would you be more willing to purchase this product if you knew we were donating part of the proceeds to charity?

Marketing Strategy: Reducing Plastic Waste will Increase Number of Buyers

Recycling Activities

- 89% of buyers would be more willing to buy a product if the company is trying to reduce its plastic waste

- Improve the facility to reduce plastic waste from bottling

- Put advertisement on trash bins around the Hudson Valley stressing the importance of recycling

- “Throw your delicious NutriBlast here. Protect the environment”

- Put on the labeling of the product “We are trying to cut our plastic waste by 50%”

Would you be more willing to purchase this product if you knew we were working on cutting our plastic waste?

- With $10,000, buy the first batch of supplement powder

- With $20,000, buy the first batch of fresh fruits and vegetables.

- With $50,000, buy new machinery needed to product the juice, such as juice extractor, fruit refining and mixer machines.

- With $20,000, improve the recycling facilities at the plant and start the “One for All” project

The Grant from the Government will help get the Business Started

- Fruit and Vegetables

- Supplements

- “One for All”- Recycle- 100K Grant

Suppliers Partners

KeyFactor

Operation Model

KeyActivities

The Motto: Revitalize, Rejuvenate, RefreshLong-term brand building:

- Connect the benefit of the product to the meaning of its charity program: Nutriblast encourages a healthy lifestyle by promoting nutritious drink, a refreshing drink that revitalizes people for their body. Also, the idea of its One for All charity program is consistent with the product. By offering help to people in need, we help them “rejuvenate” their life to an improved life quality.

Customer Relations Management:

- Build an official website for Nutriblast. Offer services such as product order, after-sale services and information for the charity program

Financial Model

Revenue Stream

● Volume of juices that will be sold

● Pricing we think is effective

Cost Composition

● Costs we will incur● Profit margin

Annual Volume will be around 3,152,304 Bottles of Juice if we Capture only 10% of Target Market

● 52% of the population is in the target age○ 698,651 people fall in our target

market● Survey showed that on average people

will purchase the product 3.76 times a month

● We believe we will capture 10% of our target market○ 69,865 people

● Monthly volume○ 262,692 bottles

● Yearly volume○ 3,152,304 bottles

Based on Customer Feelings, the Pricing would be $3.50

● 43% of people would not pay more than $4 for a product like ours (graph 1)

● Average answer for what price would be too low was $1.97

● $3.50 would be perfect price:○ Only 16% thought more than $3 would be too high

(graph 2)

○ Our target market has annual income of more than $83k

○ Would give a safe profit margin

At what price would you consider NutriBlast too expensive?

At what price would you start considering not to buy NutriBlast?

Financial Model

Revenue Stream

● Volume of juices that will be sold

● Pricing we think is effective

Cost Composition

● What are the costs we will incur?

● How much profit margin?

Per Unit Cost is Estimated to be $1.85, with a Profit Margin of $1.50 per Bottle

- Profit margin: $1.50

- Transportation: $0.20

- Fruits and vegetables: $1

- Production: $0.30

- Vitamin or protein powder: $0.50

Value Proposition ● Product Summary● The Nature of Our Product

○ What?○ Why?

● Uniquenesses that Differentiate Our Product● Risk

○ Indirect Competitors (Substitutes) ○ Direct Competitors

■ Competitor Concentrations■ Competitor Behaviors■ Barriers to Entry

The Nature of Our Product: Give People Healthy Choices

● What does our product do?○ Help people keep diet○ Arm people with nutritious supplements

● Why customers buy our product?○ Demands for a substitution for water○ Keep a healthy lifestyle○ They need to change life quality

● Nice-to-have or Must-have product?○ There are substitutions

○ A better life if they have it

The Uniqueness of Our Product

Uniqueness Raw Material

Ingredients

Supplement

Health

Nutrition

Price

Coffee and Tea Are Major Substitutes● Most people tend to buy coffee and

tea if they don’t buy our product.○ They pursue to enjoy the taste○ A symbol of high quality of life○ A lower price

● How our product is differentiated from the major substitutions

○ A better taste with pure fruit○ Healthier choice than every other one

○ Increases energy and feeling of well-being

○ Benefits the whole community

DirectCompetition

BIBLIOGRAPHY- https://glynwood.org/wp-content/uploads/2015/02/State-of-Agriculture-2010.pdf- https://www.emicosta.com- http://www.hvedc.com/economic-data/- http://holmquestfarms.com/fruits-and-vegetables/- http://www.jmscollective.com/farms-in-the-hudson-valley/organic-farms-of-hudson-vall

ey/- http://clients1.ibisworld.com/reports/us/industry/default.aspx?entid=490- http://clients1.ibisworld.com/repor- ts/us/industry/default.aspx?entid=287- http://pattern-for-progress.org/aging-healthcare/demographic-changes-in-the-hudson-

valley/- http://communityfoundationshv.org- http://www.cdc.gov/nchs/fastats/nursing-home-care.htm- https://www.bcorporation.net/what-are-b-corps- https://sites.google.com/site/softdrinkindustrysaranalysis/porter-s-five-forcesTeam 2 ~ StrategyLab