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Gogi Boost: “Your new go-to”
An InovActiv Beverages Ltd. product
By James Ford, Sophia Herbst, Jessica Quiroz -Cupil, Maryam Taghikhani, Joel Taillefer




                                                   G
                                                   B
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
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
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
Perceptual Map
        SSSSSSSSSSSSSSSSSSSSSSSSS
        SSSSSSSSSSSSSSSS

G
B
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
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
Competitor Analysis
       Energy Drinks Brand Shares, Canadian
                   Market, 2010


                           Others
                                           Red Bull
                            26%              34%
          Private label
GURU           5%
 1%
       Red Rain
         2%     Rockstar                 SoBe
                  3%                      9%     Full Throttle
                 Beaver Buzz   Monster
                     3%                                11%
                                 6%
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
          benefits
G
B
         Fair trade certified
         Organic
         Sold in single 355 ml (12 fluid oz)
          cans and packs of 4
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
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)
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
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
Sample Print Advertisement




           They do now. GB
SWOT Analysis-Strengths
Internal Factors      Strengths
Offering              •Superior quality product with multiple
                      health benefits
Marketing             •A structured marketing plan
                      •Focus on brand awareness and
                      promotional activities
Finance               •Healthy financial start (2011)

Manufacturing         •Contract signed with berry producers in
                      Asia
Product Development   •Final prototype of the product up to
                      the standards and ready to be marketed
Swot Analysis-Weaknesses
Internal factors      Weaknesses
Offering              •Uncommon product has a bitter taste
                      before mixing
Marketing             •May be costly to effectively increase
                      brand awareness
Finance               •May encounter losses for the 1st
                      months of launch
                      •May be difficult to break even
Manufacturing         •High cost of transport

Product Development   •May need some fine-tuning to adjust
                      to customer tastes
SWOT-Opportunities
External Factors   Opportunities
Consumers          •Increased demand for vitamin-fortified
                   energy drinks fortified
Social             •Fast-paced N. American way of life greatly
                   values benefits of energy drinks
Competitive        •Goji Boost is the first to target the niche
                   market of health-energy drinks in Canada
Technological      •Breakthrough health benefits in this
                   market
Economic           •No economic barrier to consumption

Legal              •Energy drink sales are unregulated in
                   Canada
SWOT- Threats
External Factors   Threats
Consumers          •Competing with brands that have high
                   consumer-loyalty

Competitive        •Well-established competitors’ will not
                   give away their market shares easily

Technological      •Mass production and economies of scale
                   of competitors may harm initial launch
Economic           •Energy drinks not an ‘essential’ consumer
                   product
Legal              •May be issues with future regulations of
                   energy drinks due to potential health risks
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
Contribution Income Statement
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
Implementation
            • Start viral marketing campaign on YouTube and Twitter
3 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 Facebook
3 Months
  after
            • Sponsor university Frosh events


             • Sponsor a sports team
             • Advertise videos on social media websites
             • If the budget permits, launch TV ads
1 Year After
             • Launch the product in Japan
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

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Goji boost final presentation

  • 1. Gogi Boost: “Your new go-to” An InovActiv Beverages Ltd. product By James Ford, Sophia Herbst, Jessica Quiroz -Cupil, Maryam Taghikhani, Joel Taillefer G B
  • 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. 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. 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
  • 5. Perceptual Map SSSSSSSSSSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSS G B
  • 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. 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. Competitor Analysis Energy Drinks Brand Shares, Canadian Market, 2010 Others Red Bull 26% 34% Private label GURU 5% 1% Red Rain 2% Rockstar SoBe 3% 9% Full Throttle Beaver Buzz Monster 3% 11% 6%
  • 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 benefits G B  Fair trade certified  Organic  Sold in single 355 ml (12 fluid oz) cans and packs of 4
  • 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. 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. 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. 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. Sample Print Advertisement They do now. GB
  • 15. SWOT Analysis-Strengths Internal Factors Strengths Offering •Superior quality product with multiple health benefits Marketing •A structured marketing plan •Focus on brand awareness and promotional activities Finance •Healthy financial start (2011) Manufacturing •Contract signed with berry producers in Asia Product Development •Final prototype of the product up to the standards and ready to be marketed
  • 16. Swot Analysis-Weaknesses Internal factors Weaknesses Offering •Uncommon product has a bitter taste before mixing Marketing •May be costly to effectively increase brand awareness Finance •May encounter losses for the 1st months of launch •May be difficult to break even Manufacturing •High cost of transport Product Development •May need some fine-tuning to adjust to customer tastes
  • 17. SWOT-Opportunities External Factors Opportunities Consumers •Increased demand for vitamin-fortified energy drinks fortified Social •Fast-paced N. American way of life greatly values benefits of energy drinks Competitive •Goji Boost is the first to target the niche market of health-energy drinks in Canada Technological •Breakthrough health benefits in this market Economic •No economic barrier to consumption Legal •Energy drink sales are unregulated in Canada
  • 18. SWOT- Threats External Factors Threats Consumers •Competing with brands that have high consumer-loyalty Competitive •Well-established competitors’ will not give away their market shares easily Technological •Mass production and economies of scale of competitors may harm initial launch Economic •Energy drinks not an ‘essential’ consumer product Legal •May be issues with future regulations of energy drinks due to potential health risks
  • 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
  • 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. Implementation • Start viral marketing campaign on YouTube and Twitter 3 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 Facebook 3 Months after • Sponsor university Frosh events • Sponsor a sports team • Advertise videos on social media websites • If the budget permits, launch TV ads 1 Year After • Launch the product in Japan
  • 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