Goji boost final presentation


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Goji boost final presentation

  1. 1. Gogi Boost: “Your new go-to”An InovActiv Beverages Ltd. productBy James Ford, Sophia Herbst, Jessica Quiroz -Cupil, Maryam Taghikhani, Joel Taillefer G B
  2. 2. Table of Contents  Company Profile & Product Overview  Consumer Profile  The Energy Drink Market  Competitor Analysis  Marketing Mix:  Product  Price  Distribution  Promotion  SWOT Analysis  Financial Analysis  Implementation
  3. 3. InovActiv Beverages Ltd.  An innovative beverage company looking to introduce it’s energy drink in Canada  Mission Statement:  “InovActiv Beverages understands its customer’s lifestyles and develops innovative beverages, creative health solutions and dynamic product to meet all expectations of the health-conscious Canadian of today and tomorrow.”  Believes in corporate responsibility and ethical business practices  Certified organic ingredients and Fair-trade goji berry suppliers  100% recyclable packaging
  4. 4. Product Overview Goji Boost: “Your new go- to” Combines attributes of health and energy drinks Utilizes the power of superfruits; The goji berry Market towards young Canadian students First energy drink to be good for your health
  6. 6. Target Market Students aged 15-24 31% of 12- to 17-year-olds and 34% of 18- to 24-year-olds drink energy drinks  = 1.494 million potential consumers  Living a fast-paced life  Only 7% of Canadian teenagers get 60 minutes of physical activity daily  Goji Boost as a tasty-yet-functional drink; the perfect assistant for studying, partying, and/or working
  7. 7. The Energy Drink Market  Increase in consumption of energy drinks from 18% in 2001 to 31% in 2006 •“Energy drinks are projected to lead the beverage sector in growth in per capita purchases, volume consumption and total value through 2011.” •2010: Canadian soft drink market was worth $7,386.4 million
  8. 8. Competitor Analysis Energy Drinks Brand Shares, Canadian Market, 2010 Others Red Bull 26% 34% Private labelGURU 5% 1% Red Rain 2% Rockstar SoBe 3% 9% Full Throttle Beaver Buzz Monster 3% 11% 6%
  9. 9. Product: Goji Boost  Energy drink made with Goji berries  A health and energy drink hybrid  The first energy in Canada to have both nutritional and energy benefitsGB  Fair trade certified  Organic  Sold in single 355 ml (12 fluid oz) cans and packs of 4
  10. 10. Points of Differentiation: The Goji Berry Antioxidants in Goji Body Functions Berries Supported Vitamin C Heart Beta-carotene Immunity Cystine Immunity, Stomach lining B2 (riboflavin) Metabolism Manganese Skin, bones, cartilage Zinc Fertility, vision, immunity Copper Energy, hormonal function, skin Selenium Liver, thyroid, immunity, cancer prevention
  11. 11. Price Retail Price : $ 3.49 External Factors Internal Factors •Hard to match our competitors prices •Premium ingredients and health •Targeting a niche market, unlike benefits competitors •Certified organic and fair trade •Less price sensitive consumers •Berry naturally grows in China (exportation costs)
  12. 12. Place & Distribution Manufactured in China  Low labour costs and proximity to producers Retail in Vancouver, Toronto, Montreal  Loblaws, Sobey’s, Metro, Safeway, and Jean Coutu Low cost structure, few intermediaries Intensive distribution Sponsor Frosh and university events  Strong presence on university campuses
  13. 13. Promotion Product in introduction stage of life cycle Marketing objectives:  Gain awareness  Differentiate from competitors  Communicate brand personality “Boost Yourself Contest” Radio advertisement during Celebration of Light Sponsor frosh at McGill, UBC, UWO, U of T Transit advertisements Viral marketing campaign on YouTube Twitter promotional codes
  14. 14. Sample Print Advertisement They do now. GB
  15. 15. SWOT Analysis-StrengthsInternal Factors StrengthsOffering •Superior quality product with multiple health benefitsMarketing •A structured marketing plan •Focus on brand awareness and promotional activitiesFinance •Healthy financial start (2011)Manufacturing •Contract signed with berry producers in AsiaProduct Development •Final prototype of the product up to the standards and ready to be marketed
  16. 16. Swot Analysis-WeaknessesInternal factors WeaknessesOffering •Uncommon product has a bitter taste before mixingMarketing •May be costly to effectively increase brand awarenessFinance •May encounter losses for the 1st months of launch •May be difficult to break evenManufacturing •High cost of transportProduct Development •May need some fine-tuning to adjust to customer tastes
  17. 17. SWOT-OpportunitiesExternal Factors OpportunitiesConsumers •Increased demand for vitamin-fortified energy drinks fortifiedSocial •Fast-paced N. American way of life greatly values benefits of energy drinksCompetitive •Goji Boost is the first to target the niche market of health-energy drinks in CanadaTechnological •Breakthrough health benefits in this marketEconomic •No economic barrier to consumptionLegal •Energy drink sales are unregulated in Canada
  18. 18. SWOT- ThreatsExternal Factors ThreatsConsumers •Competing with brands that have high consumer-loyaltyCompetitive •Well-established competitors’ will not give away their market shares easilyTechnological •Mass production and economies of scale of competitors may harm initial launchEconomic •Energy drinks not an ‘essential’ consumer productLegal •May be issues with future regulations of energy drinks due to potential health risks
  19. 19. Financial Analysis Break even units : 497,501 units/year  With a 0.55% market share Target units : 637,822 units/year  With a 0.7% market share Seizing the target market share would yield income of $ 99,627.94 Each year, decrease capital expenditures to increase advertising expenditures
  20. 20. Contribution Income Statement
  21. 21. Foreign Market Expansion: Japan  Economically & physically active population of age 15-24: 5.6 million individuals =8.36% of total population (2010) •Energy drinks consumption: 201 million litres • 5 times more than Canada’s consumption
  22. 22. Implementation • Start viral marketing campaign on YouTube and Twitter3 Months • Contact distributors and prepare the launch before • Launch “Boost Yourself” contest • Participate in various festivals such as the Celebration of Light 1 Month after • Sponsorship with radio stations , and new radio promotion • Launch public transit ad campaign • Start internet advertising campaign on sites such as Facebook3 Months after • Sponsor university Frosh events • Sponsor a sports team • Advertise videos on social media websites • If the budget permits, launch TV ads1 Year After • Launch the product in Japan
  23. 23. Conclusion Goji Boost exploits  Offers numerous an undeveloped health benefits to niche in the energy Canadian youth that drink market other energy drinks The superfruit, goji don’t berry, is an exotic and unique selling G B  Positive future prospects point  International expansion  Breakeven after 1 year