4. Mission Statement
• To enter the market of portable health drinks
and to become market leader by 2015.
• To help the underdeveloped countries get rid
of malnutrition.
• To promote an easier and healthier lifestyle.
5. Strategy
The heart and soul of our business lies in our customers. As long as
they are satisfied , it ensures our growth. So our basic strategy is to
continuously innovate in order to meet the ever-changing demands.
We will always try to maximize value for our customers. The
aforementioned strategy will help us maintain an upper hand in the
market.
7. • Product (unique selling points)
1. Portable.
2. Nutritious.
3. Easy-to-make.
4. Tasty.
The main USP is that you get all of these
features in one single product.
8. Product Life Cycle
• The product according to us is in the market
introduction stage. So there is minimal competition
and high initial costs and the demand has to be
created by us primararily.
9. • Packaging
Packaging is of prime importance
as it is an edible product and no
deterioration can be tolerated.
Also proper information about
ingredients and all other
important stuff such as expiry date
needs to be there on the
packaging as people have to
consume the product.
In the underdeveloping markets
less fancy packing will be used in
order to provide those product at
the lowest possible cost.
10. Eco friendly plastic
• Green Plastics, sometimes also called Bioplastics,
are plastics that are biodegradable and are usually
made mostly or entirely from renewable resources.
• We will be using green plastic for our packaging in
order to reduce the social costs of our operations.
11. Price (pricing strategies)
1. Low per unit cost.
2. Easily affordable.
3. Pricing objective is profit maximization as this is a
relatively new market and competition is minimal.
12. 4. The pricing method used will be cost-plus pricing.
5. Price floor will be the cost of variable inputs and
price ceiling will be determined according to the
demand.
6. Discounts to be given on bulk purchases.
13. • Price discrimination:-
We will follow price discrimination as our products are going
into two very different markets.
For the developed markets we will follow price discrimination
and charge higher profits as people in such markets care
much about there health than money whereas in the lesser
developed markets prices will be lower in order to attract
more and more customers and to take advantage of
economies of scale.
14. • Place
1. Three level distribution will be used through
distributors, wholesalers and retailers as
these are low priced consumer goods which
need to be distributed through convenience
stores .
15. 2) Target Markets
We have divided our markets
into two separate segments:-
a)Underdeveloped markets:- In
these markets we will be
concentrating on selling this
product as a health drink so as to
control the widespread
malnutrition in these areas.
16. b) Developed markets:- For these markets we
will target the constantly busy working class
who do not get time for maintaining a healthy
lifestyles.
17. Promotion
• Advertising
Large scale advertising is needed as this is a consumer good
and should be on the tip of everybody’s tongue. Also this is a
new product and market so extensive advertising through
newspapers, internet and television is needed.
18. • Endorsements
The product needs to be associated with a sports person as it will
increase its value as a health drink. A bunch of sports persons
from various fields will increase the goodwill of the product which
is needed in the earlier stages. As we are the first mover we don’t
have the luxury of taking advantage of others advertising. Here
we have to advertise for the whole market not only our company.
19. • Free Samples
Large scale sampling needs
to be done as the taste is
one of the important
attribute of the produce and
for this we have come out
with the concepts of vita
girls who will go around with
samples and take feedback.
20. SWOT
Strength
•High profit margins.
•Easy production techniques.
•Less labour required.
•Healthy, affordable and easy
to make.
Weakness
•High quality expectations.
•Continuous R&D required in
order to remain market leaders.
•Large scale advertising requires.
Opportunities
•It’s a new market and opportunity
to become market leader.
•Easy growth opportunities by
developing new tastes.
•Easy backward and forward
Threats
•Product can be easily copied.
•Entering a new market, risk of non
acceptance.
•Threats from existing companies
such as bournvita.
21. Growth
• In order to survive we need to grow, we plan
to integrate backwards by doing our own
packaging and trying to produce as much raw
material as possible which in the long run
should save us 80% of our costs. We also plan
to internationalize as and when opportunities
arise.
22. Going Global
• We have wide international
prospects. We can expand to
modern busy cities such as
Tokyo and New York and also
to the lesser developed parts
of the world where nutrition
lacks. Our product is so
versatile that we can enter
any market we want two.
23. • We have come out with a two stage internationalization
strategy:-
• First step is to export into countries with similar tastes and
preferences like India such as our neighboring countries,
• The second step is to go beyond our neighbors and make
country specific product for different market i.e localize our
products.
Further down the line we plan to make investment in the
foreign countries and continue production there instead of
exporting. This will help us to reduce costs greatly by
producing more in countries where production cost ios less.
24. Financials
Expenditure Amount
1 Large packet everyday milk powder
2 500 grams sugar powder
3 Packaging material
4 Packaging cost
5 Our secret ingredient
6 Research and Development (tasting and all)
TOTAL
Units produced-80
Per unit cost- Rs 5.075
Loss – Rs 0.075 per unit
63
28
10
5
100
200
406
25. • We expect a 80%
reduction in our costs
50% from R&D which is
an one time expenditure ,
30% from purchasing raw
material in bulk. So we
can operate on a 100%
margin within 1 batch o
production
26. Projections
• As we see from our financials we are almost breakeven
from the start and as we grow owing to economies of scale
and reduced capital and one time deferred revenue
expenditure we look to achieve a gross margin of around
100% in the first year along with a net margin of 65%.
• Down the line as we integrate and globalize we see our
gross margins rising to around 200 % in the next 5 years.
27. Corporate Social Responsibility
• As our commitment to the society we plan to
donate one in every 1000 units produced to
the UNFP (United Nations Food Program ) in
order to help curb malnutrition.
