OTC – PROBIOTICS Market Entry Strategy
RESEARCH MADE FOR DIAGRAMMA S.A.
September 6th, 2013
GLOBAL COMPETITIVINESS PROGRAM
UNIVPM - UNL
• Country Selection
• SWOT Analysis • Product Selection
• Marketing Plan • Recommendation
Team: Melody Ferraro, Matteo Biagini, Stefano Pignotti, Cristián Knuttzen
Agenda
Team: Melody Ferraro, Matteo Biagini, Stefano Pignotti, Cristián Knuttzen
Direct Indicators - Market • Probiotics End Users as % of Total
population. • Percentage Breakdown of Revenue by
Country.
Indirect Indicators - Population • Total Population. • Average Age. • % over 60 yrs.
Indirect Indicators - Economic • GDP per Capita. • Total Health Expenditure per Capita. • Total Expenditure on Health as % Total
Government Expenditure. • Prepaid Plans Expenditure as %
Private Expenditure on Health.
Indirect Indicators – Health Awareness • Self Perceived Health. • % of Tobacco Smoker. • Vegetable Eating Among Adults. • Sales Organic Food and Drink per
Capita.
Germany and France the Most Attractive Country Selection
SelecciónPaís_2.xlsx
Team: Melody Ferraro, Matteo Biagini, Stefano Pignotti, Cristián Knuttzen
1. Germany
2. France
3. United Kingdom
4. Italy
5. Spain
Germany and France the Most Attractive Country Ranking
Total Population x 1000
82,800
63,937
62,788
60,885
46,755
Team: Melody Ferraro, Matteo Biagini, Stefano Pignotti, Cristián Knuttzen
Risky Business SWOT
Strengths • Experience in biotechnological R&D • Interaction with R&D centers • ISO 9001 and Kosher certifications
Team: Melody Ferraro, Matteo Biagini, Stefano Pignotti, Cristián Knuttzen
Risky Business SWOT
Weaknesses • Lack of experience in European
markets • Lack of experience with OTC
products. • Location geographically far from
Germany • Low installed production capacity
Team: Melody Ferraro, Matteo Biagini, Stefano Pignotti, Cristián Knuttzen
Risky Business SWOT
Opportunities • Probiotics market is growing • Functional food prices are high • Sizeable functional drink market in
Germany.
Team: Melody Ferraro, Matteo Biagini, Stefano Pignotti, Cristián Knuttzen
Risky Business SWOT
Threats • Economic growth at its lowest point • Developing functional products may
take too long • Market dominated by large
companies
Team: Melody Ferraro, Matteo Biagini, Stefano Pignotti, Cristián Knuttzen
Functional Fruit Juice the First Step Product Selection
SOLID
WELLNESSPRODUCT
LIQUID
powder pillsdrops
chewable tablets
strawyogurt
DRUG
Diagramma´s Fruit Juice
Team: Melody Ferraro, Matteo Biagini, Stefano Pignotti, Cristián Knuttzen
So we suggest…
Natural product for: healty digestion and balanced diet, no preservatives, dairy free, soy free, vegan. Niche market: no big competitors expected. Target consumers: people with health consciousness, attention to sustainability and natural way of living. Name: simple name, recognizable logo. Packaging: recyclable and natural material.
Team: Melody Ferraro, Matteo Biagini, Stefano Pignotti, Cristián Knuttzen
Profitable Price Price Study
COMPANY PRODUCT PLACE PRICE
GoodBelly USA 3.79 $/l 2.84 €/l
Naked USA 5.40 $/l 4.06 €/l
Golden Circle
Australia 4.99 $/l 3.75 €/l
Valio (Gefilus)
North & East Europe
2.83 $/l 2.12 €/
Kevita
USA (California) 20.12 $/l 15.12 €/
Source: self making from data obtained in companies' websites Germany Average Price of
Simple Fruit Juice 1.30 €/l
Recommended Price 4.0 to 5.0 €/l
Team: Melody Ferraro, Matteo Biagini, Stefano Pignotti, Cristián Knuttzen
Don´t Go Alone Market Penetration
Cares: • Exporting Finished Product isn´t Cost Efficient • Addition of Strain to Fruit Juice Needs Experience • Supply Chain Takes Time and Resources • Product Pipeline Restricted to Retail Stores or Shops with
Cooling Facilities
Partner, Join Venture or Co-packer Needed
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