Lifestraw chile pres

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This presentation is a mock report to the Board of Directors on bringing a new water filtration device, Lifestraw, to a new market, Chile.

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Lifestraw chile pres

  1. 1. Group 2 Patrick Donnelly, Meghan Gattas, Jasmine Williams, Elizabeth Duffey
  2. 2. Agenda  Recap from first presentation  Product Info, Chile, Target Market, Positioning Statement  Communication Strategy  Pricing Strategy  Distribution Strategy
  3. 3. Filters at least 1000L Removes 99.9% of waterborne parasites Requires no electrical power, batter ies or replacement parts Removes 99.999% of waterborne bacteria Contains no chemicals **Adding Spanish to instructions
  4. 4. Who’s Using the Product?  People without access to clean water source  Outdoor enthusiasts  Backpackers, hikers, tourists, campers, outdoorsmen, hu nters, safari, road trips, emergency preparedness 1
  5. 5. Why Chile…..    Most competitive and fundamentally sound economy in South America Maintained friendly relations with the United States since its transition back to civilian democratic rule in 1990 United States-Chile Free Trade Agreement (2004) 2, 4
  6. 6. Target Market  Primary Target Tourists -More than 3.6 million foreigners visit Chile spending nearly 2 billion USD/year -High income and high level of education Adventure Seekers -travelers who pursue outdoor activities 10
  7. 7. Position Statement For outdoor enthusiasts that need immediate and convenient access to drinkable, uncontaminated water. LifeStraw is a lightweight water filtration system that instantly provides pure, sterilized water in times of need. Unlike other water filtration systems, LifeStraw is the most effective and portable filtration system currently on the market.
  8. 8. Communication Strategy Focus Advertising on Transportation • The best way to reach our target market is to focus communications on transportation outlets including airports, subway, ferries. • Best condition, most commonly used methods of transportation in Chile for tourists. This is how our target market will get around when they are in Chile. • In Chile, cabs very expensive & sketchy, Bus’s crowded & limited routes, Train system out of date & most railroads out of commission • Use GlobalTransportation Advertising Agencies to place media, hire consultant from Chile to assist with translations/culture
  9. 9. Communication Strategy Increase Brand Awareness Through Social Media and Discounts   Facebook, Twitter, Instagram campaigns Point of Purchase Discounts and Product Trials in major retail stores Build Positive Brand Image “Profit with a Purpose”    Lifestraw’s mission is to create profit with purpose During slow tourism months, spend time working with UNICEF to get Lifestraw’s at discounted prices to people in disaster prone areas Work with local philanthropies & relief organizations volunteering & donating products
  10. 10. Airport Advertisements
  11. 11. Airport Advertisements
  12. 12. Airport Advertisements   -Majority of our Target Market will be entering the country by airplane. -Ads will be in all 7 major airports   Airports most common method of transportation Airport Advertisements offer very high ROI per square foot    Compared to Billboard or Print Advertisements Very effective use of Marketing budget because many people see ads and they only cost a reasonable monthly base fee 73% of frequent flyers take the time to read airport advertising messages
  13. 13. Subway & Ferry Advertisements      Chile has 2,700+ miles of coastline Ferry is common method of travel between cities Very popular tourist activity Subway is most efficient way to travel around Santiago Majority of travelers stay in/around Santiago and take excursions out their tourist destinations during 5,7 the day
  14. 14. Promotion • Offer 20% Discounts for “Likes” on Facebook • Monthly photo contests for travel/tourism prizes using #Lifestraw • Build Audience on Facebook • Run Facebook/Twitter Ad Campaigns – Target Adventure Seekers and people in our target market
  15. 15. Promotion Discounts & Product Trials  In Store Product Trials  Point of Purchase Discount Displays  Buy One Get One Free   For first 6 months in Chilean Market Offer 20% off discounts through travel blogs  Many people look to travel blogs to plan vacations/activities
  16. 16. Example: Travel Blog Ad 6
  17. 17. Example: Travel Blog Review 13
  18. 18. Profit with a Purpose
  19. 19. Pricing Strategy  Use market price strategy to benchmark our price off of North America price ($19.95) because foreign travelers to Chile typically have high income levels  19.95 USD = 9,965.42 CLP  Big Mac Index: $4.56 USD = 3.94 CLP  CLP is undervalued 13.6% in comparison to the dollar  Chile has a value added tax of 19%  Overall price = (9,965.42*.19) + 9,965.42= 11,858.85 CLP 8,9
  20. 20. Estimated Demand     7% of all foreign travelers to Chile are Adventure seekers Approximately 3.6 million foreign travelers to Chile/year .07*3.6 million = 252,000 is the target segment If 252,000 people purchase one LifeStraw at $19.95, we would gain $5.04 million in revenues
  21. 21. Retail Strategy: Falabella 10,14
  22. 22. Seasonal Pricing Strategy LifeStraw is a humanitarian enterprise, and giving back is a corporate objective  In the winter months (JuneSeptember), the majority of trails in Patagonia are closed; therefore, there are not any tourists  We want to focus on selling and distributing our products to humanitarian efforts, such as Unicef, for the unit price ($5 USD)  11,12
  23. 23.  Purchase order of 20,000 units to sell in 9 different locations in Santiago, Chile  2,222 units sold per store location  Market = 252,000 customers
  24. 24. 15
  25. 25. Costs of Ocean Freight Shipping  Lifestraw Display = 1 cubic ft. at 3lbs each and holds 15 units  1 container = 19,200 units = $384,000 value  Cost at Market Rate = $2,842.86 – $3,141.77 1
  26. 26. 3PL Services – APL Logistics  APL Logistics will take product from port of Valparaiso to Falabella DC’s where they will hold inventory and distribute to retail stores in Santiago, Chile. 16, 17
  27. 27. Perceived Difficulties        Communication – Lifestraw offices in Brazil 3PL - APL Logistics Lead times with Ocean Freight Customer Relations Language Barriers Reaching Target Market Substitute Water Filtration Systems
  28. 28. References                  1. http://www.vestergaard-frandsen.com/lifestraw 2.<http://www.chile.travel/en/about-chile/the-chilean-people.html 3. http://www.kpmg.de/docs/2012-01-kpmg-doing-business-in-chile.pdf 4.http://www.portal.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx 5. http://www.perceptivetravel.com/adrates.html 6. http://www.nomadicmatt.com/travel-blog/ 7. http://www.joeskitchen.com/chile/travel/airports.htm 8. http://www.economist.com/content/big-mac-index 9.http://www.pwc.com/es_CL/cl/publicaciones/assets/doingbusiness.pdf 10. http://www.falabella.com/falabella-cl/static/staticContent1.jsp?active=5&id=cat30063 11. http://www.buylifestraw.com/the-cause 12. http://bluelivingideas.com/2009/04/13/lifestraw-water-filter-provides-clean-water-year/ 13. http://www.survivalcommonsense.com/ 14. http://fashionbi.com/newspaper/growing-retail-companies-in-south-america 15. http://emerging-markets-research.hktdc.com/business-news/article/Chile/Sell-toSouth-America-sell-to-Chile/rp/en/1/1X4SR4ZP/1X09TRYT.htm 16. http://www.universalcargo.com/blog/bid/71724/4-Factors-for-Considering-Air-Freightvs-Ocean-Freight 17. http://worldfreightrates.com/en/freight

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