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Spartan Bars presentation deck final
- 2. The Downsides to Taking Protein Poor Taste • “Awful” flavor • Doesn’t dissolve Inconvenience • Prep Time • Clean up is a pain
- 3. Our Solution
- 4. Phase 1: Local Contract Manufacturing Wholesale Distribution Retail Point of Sale Recipe Development Contract Manufacturing Direct Sales Phase 2: Regional
- 5. IC Men’s Lacrosse Team (40 players) 27 g Median Consumption 55% Would use regularly $3.50 Avg. Price IC Fitness Center Survey (25 people) 33 g Median Consumption 61% Only Post-workout 27% Pre & Post Workout
- 6. Marketing & Sales • Lacrosse Tournaments • Branded Fridges • Gyms and Athletic Facilities
- 9. Competition
- 10. Doug Levy • Nerd: wants to gain muscle mass • Hates taste of protein shakes • Marketing Communications Major • Ice Cream Connoisseur Kyle Dammeyer • Former Ithaca Lacrosse Player • Dislikes messy clean-up • Business Administration – ’17 • Past Marketing Experience
- 11. 1st $10,000 2nd $10,000 Incorporation Costs: $400 Trademark: $400 Recipe Development: $2200 Regulation: $800 Package Design: $1000 Inventory: $3600 (2000 units) Cold Warehouse: $500 (1 mo.) Discretionary: $1000 Inventory: $4500 Promotion: $4000 Discretionary: $1500
- 12. Retail: $3.60 Distributor: $2.52 Wholesale: $2.02 Mfg. Cost $1.35 w/ Marketing Costs (15%) $1.55 w/ R&D (7.5%) $1.67 Gross Margin: 33% Net Margin: 17%
- 13. $0 $2 $4 $6 $8 1 2 3 4 5 Millions Revenue Profit Projections
- 14. Milestones: February 2015: 2nd Process Prototyped April 2015: 3rd Process Prototyped Anticipated Milestones: May 2015: Limited Rate Production July 2015: Launch in Fairfield County, Connecticut 6-Feb 26-Feb18-Mar 7-Apr 27-Apr17-May 6-Jun 26-Jun 2nd Process Prototype Identify Initial Manufacturer Perfect Final Process Launch in Ithaca Contract Manufacturer in CT/NY Lease Frozen Storage Solidify Distribution Launch in CT / NYC
- 15. How you can help… •Mentor •Strategic Partners •Feedback •Customer Interest Email: SpartanBars@yahoo.com
Editor's Notes
- K: Hi guys, I’m Kyle. D: And I’m Doug K: And we’re here to tell you about SpartanBars, our protein fortified ice cream bars.
- D: SpartanBars were first conceptualized in September in our Entrepreneurial Innovation course here at IC. K: Doug brought me the idea as someone who would like to gain muscle, but hated the taste of protein supplements. This resonated with me because as a former IC lacrosse player, I drank protein shakes 3-4 times a week, and had long been frustrated with the poor taste and inconvenience of my shakes.
- Our solution to those pr
- Initially, we have 2 phases to our business model. Phase 1 is local distribution, launching this summer in Fairfield County, CT. We are currently in the recipe development stage and are in the process of finding a contract manufacturer to meet our geography and volume needs for our summer launch. By mid-July, we plan to begin selling direct to gyms and athletic facilities, and as vendors at summer lacrosse tournaments. We have interest from multiple athletic facilities who would like to carry our product upon our launch, as well as from Fairfield University lacrosse coaches who run lacrosse programs and a tournament over the summer. In our first year, we plan to begin expanding throughout the tri-state area, selling direct to gyms, independent retailers, and college athletic programs. In year 3, we hope to begin introducing SpartanBars in the L.A., Miami, and Austin, Texas areas, selling in gyms, and broadening our retail points of sale through wholesale distribution in grocery chains, health food chains (Whole Foods), and health specialty stores (GNC).
- To verify our customer interest, we’ve conducted some surveys – one with the IC Men’s Lacrosse Team and one at the IC Fitness Center. Of the 40 players on the lacrosse team, the median protein consumption after working out was 27 g, more than half said they would use SpartanBars regularly as long as they did, in fact taste good, and they average price price they’d pay was $3.50 a bar. In our survey at the IC Fitness Center, the median amount of protein consumed was 33 g, with the majority of respondents consuming protein post-workout, and only 27% taking it prior, as well.
- Initially, in Fairfield County, our sales will be direct to gyms, as well as from vending at summer lacrosse events. Many athletic facilities already have nutritional “snack bars” where gym-goers can buy various dry bars, shakes, and other products after they finish their workout. Given these facilities have refrigerated and frozen products, they could carry SpartanBars, too. In smaller, independent gyms without snack bars, we plan to use a branded freezer (think Red Bull fridge) as the point of sale and for advertising. In larger athletic facilities, with fields or courts, there is significant advertising space in addition to these snack bars. Marketing and sales will be done simultaneously at lacrosse tournaments. Branded tents and coolers are the point of sale at these events, and vendor’s flags, tents, and banners are seen by thousands of lacrosse players and their parents of the course of a weekend. Lacrosse players are an ideal niche market, as they are close-knit community who thrive on sharing “the next cool thing” with laxers across the country. Upon our expansion the warmer areas, we plan to market towards athletes, but focusing on football players, as they work out year-round and are always looking to gain mass. Top players in some areas can be very influential in their local communities, so the customers will also be indirectly advertising. In year three, with our retail expansion, we also plan to break into the general health markets, marketing towards active men and women who may not be looking for muscle mass. We plan to introduce a product with a lower amount of protein that can support recovery from lighter athletic activities, and that also have anti-ageing and other health benefits.
- We have 3 main areas of competition, powdered and pre-made protein shakes, dry protein bars, and protein enhanced ice cream.
- Enlightened is marketed as “the good for you ice cream”, but is actually the leanest offering, with 8 grams of protein. With only 10 grams, Strongbody isn’t much better. We don’t consider powdered protein mix a competitor, as it’s not pre-made. Though protein content in ice cream is marketed, it is wholly inadequate for gaining mass. There are not currently ice cream products with enough protein for mass gaining marketed in US.
- We believe our other most direct competitors are pre-packaged shakes, as they have both the convenience factor and the protein requisite for gains. However, they have the aforementioned issue of poor taste.
- D: Hi, I’m Doug. I’ve always had to work extra hard to put on weight in the gym and I personally can’t stomach the taste or consistency of protein shakes. K: As a former college Lacrosse player, I grew up drinking protein shakes and eventually got used to the bad taste, but I still can’t stand the messy clean-up.
- Our start-up Van: > $2750 > $1000/mo. (6 yr. note)
- Year
- D: We made our first prototype in September and developed a process by October. Our second formulation and process was prototyped in February. K: We are already in limited production. We anticipate breaking even on ________. After this we intend to launch in Fairfield County at first, and then the NYC Metro area.
- Spartan Bars
- K: Hi guys, I’m Kyle. D: And I’m Doug K: And we’re here to tell you about SpartanBars, our protein fortified ice cream bars.