*Not affiliated with the company GU. This was completed only for classroom teaching purposes, and is in no way indicative of GU or its business.* A group project created for the course MGMT 42300: New Product Development at Purdue University in the Spring of 2018. A final presentation outlining findings from a semester-long product development research project.

1. Matthew Dale
Josi Farmer
Kristene Faun
Brennan Todd

2. Hello!
We’re GU Natural’s
Product Launch Team
2

3. Agenda
⊷ Executive Summary
⊷ Industry & Business
⊷ Testing Results
⊷ Marketing Strategy
⊷ Competitor Analysis
⊷ Sales Forecast
⊷ Recommendation
3

4. 1.
Executive
Summary
A brief overview of our
product launch

5. 5
Executive Summary
Recommendation/Conclusion:
Based on feedback from concept and prototype testing, &
current market situation, we can move forward with the
product. Main focus should be on improving taste of product.
Marketing Strategy:
Target Market: Health conscious athletes
Positioning: All-organic endurance gel taken during workout,
with quicker activation than competition
Marketing 4 Ps:
Product: GU Natural, all organic endurance gel
Place: In-store (Fleet Feet, etc) and Online (GU Website, etc)
Promotion: Print ads, social media, & in-store promotions
Price: $1.60 per 1.1oz packet

6. 2.
Industry &
Business
Speciality sports nutritionals
& GU Energy Labs

7. Specialty Sports
Nutritionals
Growing industry due
to increases in:
⊷ Health
consciousness
⊷ Disposable
income
⊷ Interest in sports
Industry & Business
Analyses
GU Energy Labs
⊷ Started in 1980,
creating gooey
endurance gels
to combat dry
products on
market
⊷ Niche market
possibility for
all-natural
performance
products
7

8. So what’s
GU Natural?
An all-organic, natural preservative endurance gel with better
ingredients, better flavor, and better results when consumed
during workout
8

9. 3.
Testing
Results
Concept & prototype
testing & results

10. At the CoRec
⊷ Attempted to
survey athletes
before entering
CoRec
⊷ Minimal
engagement
from target
market
⊷ Decided to
reform questions
and do online
concept test
Concept Tests
Online Survey
⊷ Surveyed athletes
the team knew
⊷ Mostly positive
feedback
⊷ Findings support
recommendation
to move forward
with product
launch
10

11. Online Findings
⊷ 62.6% wished there were less or no
chemically processed ingredient
⊷ 65.4% willing to choose organic
substitute, if same results achieved
⊷ 37.4% willing to try GU Natural
⊷ 21.5% willing to pay more than
$2/packet (GU Natural: $1.60/packet)
Concept Tests
11

12. Prototype Test
⊷ Provided two flavor options:
⊶ Strawberry and Vanilla
⊶ Received varying responses on
preference
⊷ Other suggested flavors:
⊶ Blueberry (3)
⊶ Lemon (2)
⊶ Assortment of others
12

13. Key Findings
13
⊷ 58.8% would prefer to use an organic
product if it provided similar results
⊷ 62.5% enjoyed the flavor of the
prototype
⊷ 56.3% felt that the consistency was
good for a prototype

14. 4.
Marketing
Strategy
Market strategy,
4 P’s, branding

15. Target Market
⊷ Health conscious
athletes
⊷ Originally
targeting young
athletes
⊷ Concept test
proved all ages
interested in
product
Marketing Strategy
Positioning
⊷ GU Natural
⊷ All organic
endurance gel
⊷ Taken during
workout
⊷ Quicker
activation than
competition
15

16. 4 P’s
Product: GU Natural, all organic
endurance gel
Place:
In-Store: Fleet Feet, Road Runner,
Mike’s Bikes, etc
Online: GU website, Amazon, etc
Promotion: Print advertisements, social
media, in-store promotions
Price: $1.60 per 1.1 oz packet ($1.45/oz)
16

17. 17
Packaging and Branding

18. 5.
Competitor
Analysis
CLIF & Huma

19. Competitor Analysis
19
Huma: Veteran-owned, started in 2012, great tasting energy gels
Target Market: Athletes, specifically runners
Positioning: To provide alternative fuel source so that the
glycogen of athletes lasts longer & increases endurance
Product: All-natural, non-caffeinated energy gels; main
ingredient is Chia seeds
Place: Website, Walmart, & Amazon
Promotion: Advertise on social media & website
Price: $2.30 for 1.5oz packet ($1.53/oz)

20. Competitor Analysis
20
CLIF: Started in 1992, makes organic energy bars, protein drinks,
energy gels & more
Target Market: Athletes, health-conscious consumers
Positioning: To provide athletes quick energy & recovery
during racing & training
Product: Organic energy gels, specifically Shot Energy Gel
Place: Sports retailers, Amazon, website, Walmart, Target, etc
Promotion: Social media, TV commercials, promotional ad
banners, etc
Price: $1.39 per 1.2oz packet ($1.16/oz)

21. 6.
Sales
Forecast
ATR Model

22. ATR Model
Awareness
⊷ Ads on
Twitter &
Facebook
⊷ Instagram
sponsors
⊷ TV
commercials
⊷ Word of
mouth
⊷ Print ads
Trial
⊷ Saw high
percentage
of purchase
intent during
concept test
⊷ Will continue
concept &
prototype
testing
Repurchase
⊷ If product
trial is
achieved,
there is high
possibility of
repurchase
due to
nature of
product
22

23. ATR Model
23
Percentage Unit Sales Revenue
Population 84,180,497
Availability 80% 67,344,398
Awareness 51.25% 34,514,004
Trail 37.97% 13,104,967 $20,967,947.20
Repurchase 29.40% 3,852,860 $6,164,576.00
GU Natural has the ability to generate
$27,132,523.20 in revenue for GU Energy.

24. 7.
Recommendation
Conclusions of our project

25. Decision Factors
Pros
⊷ Extensive &
growing market
⊷ Great feedback
from concept &
prototype tests
⊷ Minimal
competition in
the market
⊷ Possibility to
expand product
flavors
25
Cons
⊷ Need to
implement more
prototype tests to
perfect taste
(most important
factor to
consumers)
⊷ Could be costly,
depending on
number of trials

26. Our
Recommendation
Based on feedback from concept
& prototype testing, & current
market situation, we recommend
GU Energy to move forward with
launching GU Natural. Main focus
before official launch should be
on improving taste of product.
26

27. 27
Thanks!
ANY QUESTIONS?

28. 8.
Appendices
Concept & prototype test
responses, product mockup,
print advertisement

29. Concept Test Results
29
18-24 43
25-34 5
35-44 9
45-54 30
55-64 9
65+ 11
Age
Yes, endurance 18
Yes, strength 12
Yes, both 31
No, neither 46
Do you engage in endurance
or strength workouts?
Yes, would choose organic 70
No, would choose non-organic 2
Neutral/I don’t care 30
Other response 5
Would you choose organic if it provided
same results?

30. Concept Test Results
30
Less
than $1
15
$1 17
$1.20 5
$1.40 18
$1.60 19
$1.80 8
$2.00+ 24
What is the max
price you’d pay
per serving?
Extremely Likely 14
Likely 23
Neither Likely nor
Unlikely
40
Unlikely 20
Extremely Unlikely 10
How likely are you to try this
product?
*One person said they
would not purchase

31. Prototype Test Results
31

32. 32
Prototype Test Results

33. 33
Product Mockup

34. 34
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