Subsistence Marketplaces Initiative

Transcription

1 * This case is based on a comprehensive business plan developed by a student group in the course entitled Sustainable Product and Market Development for Subsistence Marketplaces under the supervision of the instructor, Madhu Viswanathan. The case was prepared by Madhu Viswanathan, John Clarke and Srinivas Venugopal and copyedited by Tom Hanlon. We gratefully acknowledge the organizational sponsor of the project and the students who contributed to it. Subsistence Marketplaces Initiative Page 1

2 I. Executive Summary Tear Sheet... 4 II. Mission and Objectives... 5 III. Situational Analysis... 6 A. Internal Strengths and Weaknesses... 6 B. External Opportunities and Threats The Power of Soy in Subsistence Marketplaces Ecological Opportunities and Challenges Challenges in Subsistence Context Macroeconomic Challenges and Opportunities Market Opportunities Competition Customer Information IV. Field Research and Product Development A. Understanding of the Subsistence Marketplaces B. Learning and Reflection from Field Trip C. Idea Generation and Screening Before the Field Trip Concept Related Takeaways from the Field Trip After the Field Trip Final Product Concept: SoyChoyce D. Technical Specifications and Detailed Drawings V. Marketing Strategy A. Target Market Selection B. Sustainable Marketing Mix VI. Action Plans A. Targeting and Positioning Statement Subsistence Marketplaces Initiative Page 2

3 1. Targeting Positioning B. Product Design C. Sustainable Value Chain Bidding Process Soy Laabh Facility D. Value Proposition to our Consumers E. Communication of the Value Proposition What to communicate How to communicate F. Manufacturing Plan, Product Forecast, and Launch Schedule Manufacturing Plan Product Forecast Launch Schedule G. Financial Forecast H. Ecological (Planet) Impact Forecast I. Societal (People) Impact Forecast VII. Implementation, Controls, and Evaluation VIII. Conclusion IX. Exhibits Exhibit 1- FAO Requirements for Energy and Protein Exhibit 2- Concept Testing Questionnaire Responses X. Other Appendices A. Appendix for Beer Bottling XI. Sources Subsistence Marketplaces Initiative Page 3

4 I. Executive Summary Tear Sheet Recall the face of the poorest and the weakest man whom you may have seen, and ask yourself, if the step you contemplate is going to be of any use to him. - Mahatma Gandhi Our venture, Soy Laabh Ltd., is committed to harnessing the nutritional power of soy to profitably make a positive impact in subsistence marketplaces starting with Tamil Nadu, India. Through our new product concept SoyChoyce, investors have the opportunity to contribute to the development of a unique and scalable solution to a preventable disease protein-energy malnutrition. Your involvement in our venture would not only generate financial returns, but also social and environment returns, thanks to a win-win-win relationship involving investors, customers in subsistence marketplaces, and Soy Laabh. Urgent Market Need The alarming level of protein deficiency in Indian subsistence communities shows an urgent need for an affordable, easy-to-use, and versatile product addressing this issue. According to UNICEF statistics, one-third of the malnourished children in the world come from India, and 50 percent of the Indian childhood deaths are due to malnutrition. When focusing on Tamil Nadu only, more than 40 percent of the state population suffers from both protein and energy deficiency. This preventable health issue has negative impacts on the education, productivity, and health of the individual supposed to build the country. Our Solution: SoyChoyce The SoyChoyce concept combines with nutritional power of some defatted soy flour with a reusable and easy-to-use container sold with an education component focusing on the importance of protein and calories in the daily diet. Due to its 52 percent protein-defatted soy flour, Soy Laabh has the opportunity to harvest the power of soy to make a positive impact on society. The program will be implemented by women entrepreneurs among the Women Self Help Group networks, as our company will mainly rely on existing trust and word of mouth as our main promotion strategy. SoyLaabh: Company Background Our venture team is composed of excited, committed, and knowledgeable managing partners. Its members come from the business, communications, industrial design, engineering, and biology fields. Moreover, our team members have had the opportunity to see firsthand the need for such a product in India, thanks to a field trip. In addition, Soy Laabh has the privilege of working with the National Soybean Research Laboratory (NSRL), a national leader in soybean research with special expertise in the use of soybeans in education and outreach in production, nutrition, and international development. Subsistence Marketplaces Initiative Page 4

5 II. Mission and Objectives As mentioned in our executive summary, Soy Laabh s mission is to sustainably and profitably harvest the nutritional power of soybeans to make a positive impact in subsistence marketplaces. In addition to addressing the protein-energy malnutrition issue in these communities, our company is committed to apply sustainable business practices. The People, Planet, Profit dimensions are not just part of our mission statement they are integral elements of our implementation strategies. Mission Harvest the power of soy to develop consumer products, benefiting people, society, and environment Objectives A significant number of people in India are suffering from protein deficiency. It is a very urgent call in that the negative impacts of the deficiency on India are far-reaching and deeply felt. Given its impact on health, education, and productivity, persistent protein deficiency is a major obstacle to human development and economic growth in the country, especially among the poor and the vulnerable. Nonmarket (nonprofit) and organizational approaches have been dominant initiatives to address the problem in India, in forms of subsidiaries operated by governments, NGOs, IOs, and so on. However, the chunk of population in need has been too large to be fully supported. More recently, although many multinational companies and domestic companies have jumped into nutrition and health market, they have also failed to deliver the nutrient value to the end consumers, especially in the subsistence context. Due to poor quality with unaffordable prices and to deficiencies in several areas in mutual understanding, dialogue within the culture, infrastructure for distribution or communication channels, and awareness all business initiatives are faced with daunting challenges. With the innovation and diffusion of technologies and the introduction of a culturally compatible product (thus overcoming cultural barriers), we are now trying to tap the problem in more holistic ways. In the long term, these efforts can give a great opportunity for both business and society to achieve healthy growth and improvement. Imagine how much better India could make economic and social progress, if the protein deficiency and malnutrition is eradicated or remarkably reduced. Therefore, our objectives are: Understand the needs and characteristics of BOP consumers through deep-listening and dialogue Develop and introduce a culturally compatible quality product with an affordable price Build sustainable communication and distribution channels Alleviate protein deficiency, thus improving human development, both physical and cognitive Help children and adults to do better in schools and workplaces, thus improving the potential for growth Help society decrease social costs related to protein deficiency in medical care and productivity loss, thus increasing investments for human development with saved money Subsistence Marketplaces Initiative Page 5

6 Improve public awareness and knowledge on health and nutrition through comprehensive health/nutrition education initiatives, thus helping them to gain health/nutrition literacy in the long term Build a new sustainable business paragon that eradicates or alleviates malnutrition with profits, thus facilitating more business initiatives and participations in the nutrition sector III. Situational Analysis A. Internal Strengths and Weaknesses As a new and one-product company, our company, Soy Laabh, will be facing potential challenges when developing business in India, particularly with the added complexity of the subsistence marketplaces. As mentioned later in our report, trust and relationships are key in these markets. Being a newcomer with networks only through the NSRL existing network, we will have the task of developing trust in the industry and ensuring a good understanding of the potential consumers. On the other hand, we do have the partnership with the NSRL, a leader in soybean research. Their support will be invaluable in the improvement of our current concept, but also in the development of potential future concepts based on the nutritional power of soy. In addition, the NSRL indeed already has programs and networks in India, which Soy Laabh will try to leverage. Finally, in addition to our excitement for our venture and our commitment to servicing subsistence marketplaces, out team is made of a unique mix of backgrounds in business, industrial design, engineering, and biology, which would be key for the strategic development of the company. All of our members also received a Certificate of Excellence in Sustainable Management and Technology, which further confirms our commitment to global citizenship. B. External Opportunities and Threats The mission of our company is to harness the power of soy to make a positive impact on subsistence marketplaces, starting with India, while using sustainable economically, socially, and environmentally sound practices. The following sections will give more details as to why Soy Laabh is so passionate and trusting about the power of soy, and also how soy can fulfill the company s mission. The section will also address some of the challenges we will be facing when trying to fulfill our mission: - The ecological challenges and opportunities of growing soy in India - The challenges faced by subsistence marketplaces Subsistence Marketplaces Initiative Page 6

7 - The macroeconomic challenges and opportunities in India - The meaningful definition of our potential target market - The good understanding of the competition for our product concept 1. The Power of Soy in Subsistence Marketplaces Why focus on one single raw material? Why rely on the sole power of the soybean? Our partnership with the National Soybean Research Laboratory (NSRL) has made us privy to the nutritional power that soy can provide. The NSRL is a national leader in soybean research in the United States, and their work extends to the fields of production, nutrition, and international development. The following key information confirmed our confidence in the power of soy. Nutritional Power According to NSRL, [t]he soybean is an excellent source of high quality protein and compares well with other protein foods i. It contains all three macronutrients needed for good nutrition: complete protein, carbohydrate and fat, as well as vitamins and minerals, including calcium, folic acid and iron. ii In addition, soybeans are the only common plant food that contain complete protein. iii Their benefit in terms of amino acid profile is equivalent to meat, egg, or milk protein. Table 1 below gives a better understanding of how soy compares to foods well known for their relatively important protein content. When comparing items such as soymilk, soy nuts, chicken meat, eggs, and chick peas, the table shows that soy products are at the top of the list in terms of calorie and protein content. On a per cup basis, soy nuts and soy flour are even on top of the list, beating relatively expensive items such as chicken meat or eggs. Protein vs. Calorie Content Food Comparison Food Item Calories Protein (g) Other units per cup Raw sprouted lentils - 77g g Soymilk - 245g g Whole milk (3.25%) - 245g g Chickpeas - 240g g Soybeans, green (edamame) - 180g g Mature Soybeans (yellow), cooked - 172g g Egg - about 5 large eggs ~5 eggs Tofu, firm - 252g g Chicken Breast- 140g g Soy flour, defatted - 200g g Soy nuts - 172g g Table 1: Comparison on Food Items per Calorie and Protein Content Subsistence Marketplaces Initiative Page 7

8 When focusing on some of these food items, Figure 1 gives a clearer picture on how soy products could be great alternatives to more expensive items such as meat or eggs. 80 Protein vs. Calorie Content (per cup of food item) High calorie content / High protein content for soy nuts Chicken Breast - 140g Proteins (in grams) per cup Egg - about 5 large eggs Chickpeas - 240g Soynuts - 172g Tofu, firm - 252g Soymilk - 245g Whole milk (3.25%) - 245g Calorie Count per cup Close nutritional value between soy milk and whole milk Figure 2: Comparison on Food Items per Calorie and Protein Content Soy could therefore have a quick and large impact in subsistence marketplaces where the low purchasing power of the community members does not allow enough healthy and nutritious meals on a regular basis. Potential Impact in Subsistence Marketplaces When developing our Soy Laabh venture, especially through the emersion and immersion phases including the field trip to India, we have seen firsthand how low purchasing power and low literacy can have a negative impact on health. Community members of subsistence marketplaces are hit the strongest by this double challenge. Our previous section has shown the nutritional power of soy, both in terms of calorie and protein content. This mix of health benefits can prevent illnesses such the Kwashiorkor disease, primarily caused by inadequate protein intake. Short-term consequences of this disease include growth failure and loss of Subsistence Marketplaces Initiative Page 8

9 muscle mass, generalized swelling, and decreased immune system. Longer-term consequences include low final weight and height, and lower permanent physical and mental abilities. iv Indeed, according to the UNICEF nutrition profile of India v : - One in every three malnourished children in the world lives in India. - About 50 percent of all childhood deaths are attributed to malnutrition. From that point on, our team s goal has been to develop a viable concept that would address the high protein/good nutrition needs in subsistence marketplaces, while making sure that such a concept would have the key attributes demanded in these communities. At that point we had, for example, identified that at least price, taste, and ease of use would be key attributes requested by the consumers. 2. Ecological Opportunities and Challenges One of the main ecological threats in India for producing Soy over the next few years could be irrigation: India has the largest total water footprint of any country in the world. This is essentially due to the size of its population, as its water use per capita is less than that in many countries with similar or higher incomes. In addition, 40 years after the Green Revolution, many experts argue that India s population is growing faster than its ability to produce staples such as wheat and rice. Some attribute the lag to the fact that irrigation and agricultural research have not expanded since the 1980s, and groundwater has also been depleted at an alarming rate. In Punjab, for example, more than 75 percent of districts extract more groundwater than is replenished by nature. As a result, consumers and government are weighing the environmental impact of everyday products and practices against new greener alternatives. As a result, our product concept and packaging will be ecologically sustainable and green, and thus have an edge over other products. 3. Challenges in Subsistence Context Soy is not part of the traditional diet in India. It is considered as farm food by most people who are aware of it, as it is primarily used in the poultry sector. There is, therefore, a possibility that people in our target market might not adopt the product. In addition, low literacy levels in communities we are targeting might create barriers in communicating the importance of protein in the daily diet. This gives us, however, the opportunity to educate people about protein, and how soy can fulfill the protein deficiency in India. Subsistence Marketplaces Initiative Page 9

10 India is one of the top producers of soybeans in the world, and Indian climate is compatible for soy production. India is Asia's biggest exporter of soya bean meal. Output for the harvest starting in October 2008 was expected to surpass the 9.99 million tons estimated by the government for the previous season. But the current land and labor available to grow soy crops in India might not be able to fulfill the needs of the ever-growing population of India. So, it might be necessary to involve government efforts to train farmers and get land and state-of-the-art equipment for soy production and manufacturing, to decrease waste and increase productivity. The fact that most Indians are vegetarians is an opportunity for soy-based products: Soy can act as a substitute for meat products in terms of texture and appearance and can also provide the useful protein that is required in the daily diet. 4. Macroeconomic Challenges and Opportunities Similarly to the challenges regarding ecological characteristics of India, or the issues facing consumers in subsistence marketplaces, our start-up company Soy Laabh - will also have to face the same types of macroeconomic challenges that other established domestic or multinational companies are dealing with in India. These challenges mainly include the legal dimension of working in the food industry in India, the economic context of the country, as well as the overall Indian soybean industry and its links to the global market. Legal Dimension As Soy Laabh will be evolving in the food industry, our team had to be aware of the Indian legal regulations regarding processed food. Indian food regulatory laws are lax compared to US standards, so we anticipate quick approval for marketing. Perhaps more pressing legal issues are those related to potential product spoilage during storage. To preempt these issues we must institute vigorous purchasing and quality assurance measures to make sure our product and packaging meet the required specifications. Our product is vulnerable to excessive heat, moisture, and pests, so we must take care to prevent damage due to these factors. Economic Dimension With a growth rate of 6.6 percent in 2008 and an APR of 7 percent since 1997, vi India has one of the fastest-growing economies in the world. Growth is primarily in manufacturing and services, with emphasis on information technology. What this means in terms of demographics is a growing middle class, although that growth is hampered by insufficient healthcare and education infrastructures. Thus there is still a large low-income population that is unable to afford commercial health supplements at adequate quantities. Urban population centers are growing, as is the proportion of the population living in these centers. However, India boasts one of the largest rural populations in the world, with the majority working in agriculture. This makes distribution on a national level a very interesting problem that few companies have been able to implement successfully. Problems encountered are low levels of transportation Subsistence Marketplaces Initiative Page 10

11 infrastructure, communication networks, and a sparse population with low levels of disposable income. We have decided to concentrate first on the Tamil Nadu region. If we find our business plan there to be successful, our second priority would be to expand to other population centers in India, and then finally to expand to the rural populace. Agriculture Dimension India boasts the world s 5 th -largest production of soy. Soy is farmed primarily for oil production, and the defatted soy byproduct is sold cheaply for animal feed. India is currently largely self sufficient, as its grain and food and agricultural output generally matches population growth. Farmers rely mainly on manual labor, with a slow movement towards mechanized agriculture. Soy production in India is performed primarily in large plantations, with relatively high levels of mechanization. India is slowly moving towards the high-energy input, low manpower agricultural model of industrialized countries, but is not expected to reach the mechanization levels of the US in the foreseeable future. However, as mentioned above, there is a slow but sure movement of the populace to urban centers. 5. Market Opportunities As previously mentioned, Soy Laabh s mission is to leverage the nutritional power of soy in subsistence marketplaces and address health, social, economic, and environmental needs in the communities we evolve in. UNICEF, for example, mentioned that [o]ne in every three malnourished children in the world lives in India. vii In addition, a 2006 report from the World Bank viii explained that: - One of the reasons why malnutrition persisted, even in food-secured households, was because pregnant and nursing women eat too few calories and too little protein - [t]hough food is available, because of inappropriate household food allocation, women and young children s needs are not met and their diets often do not contain enough of the right micronutrients or protein. This protein-energy form of malnutrition described by the World Bank report confirmed the important value that soy can bring to both women and children. Beyond the geography and purchasing power markets we already identified, we further defined our target market, taking into account specific nutritional needs across ages and genders. However, in the short term, the family household living on Rs or less in Tamil Nadu constitutes almost 18 million people. And for the long-term strategy of all of India, this same market of all of India is approximately 309 million people (according to the CIA s The World Factbook). Geography According to The World Factbook, the Indian population is about 1.1 billion people. As of a July 2009 estimate, the population is estimated to grow at about 1.55 percent ix, which is in line with the Subsistence Marketplaces Initiative Page 11

12 compounded annual growth rate of 1.5 percent between 2003 and 2008 estimated by the Euromonitor International database x. Our medium to long-term objective being to expand throughout the Indian market, our potential broad target market would therefore be this 1.1 billion people community. Our initial focus, however, will be the Tamil Nadu area. Our preliminary research has indeed shown that Tamil Nadu is one of the Indian states with the highest level of protein and energy deficiency (41.4 percent - compared to 2.5 percent in Gujarat) xi. According to the Indian Department of Economics and Statistics xii, the Tamil Nadu area counted about 62.4 million people as of Assuming the 1.5 percent compounded annual growth rate, we could therefore estimate that the area counted about 69.5 million people in Our initial extended target market would therefore be about 6 percent of the country population. Subsistence As explained in our mission statement, our consumer base will focus on households living in subsistence conditions, and more specifically community members living with Rs. 5,000 or less on a monthly basis. According to the 2005 World Bank Data on Global Purchasing Power Parity Indicators xiii, $1 corresponds to 44 Rupees in terms of purchasing power parity. Keeping this exchange rate constant, our Rs or less per month approximately corresponds to the BOP1500 segment defined in The Next 4 Billion: Market Size and Business Strategy at the Base of the Pyramid xiv : this BOP1500 segment represents 309 million people in India, or 31.8 percent of the total population (as of 2005). Keeping our product concept in mind, it is also interesting to note that, on a countrywide basis, households living at the base of the pyramid spend 70.5 percent of their household expenditure on food and 2.9 percent on health xv. Based on the above analysis, our initial target market would therefore be about million people, or about 4.6 million households (considering that the 31.8 percent of the population belonging to the BOP1500 remains constant across states). Protein Deficiency The main goal of our SoyChoyce product concept is to address the protein deficiency issue in low-income communities of India by leveraging the natural power of soy. According to the National Soybean Research Institute (NSRL), Soybeans contain all three of the macronutrients required for good nutrition: complete protein, carbohydrate, and fat, as well as vitamins and minerals, including calcium, folic acid, and iron. Soybeans are the only common plant food that contains complete protein. Soybean protein provides all the essential amino acids in the amounts needed for human health. The amino acid profile of soy protein is nearly equivalent in quality to meat, milk, and egg protein. xvi According to the World Bank statistics, however, 44 percent of children under 5 years old were suffering from malnutrition in India (as of 2007) xvii. Despite the fact that the average supply of protein per day Subsistence Marketplaces Initiative Page 12

13 averaged about 58 grams xviii between 2003 and 2008, important differences seem to exist per income level, age, and potentially gender. The differences in the FAO recommendations of protein intake per age and gender, as shown on Exhibit 1 (see page 62) give a better understanding of the importance of developing a good quality and flexible product xix. Age and Gender According to The World Factbook, almost million people are 14 and under. The population growth rate is 1.55 percent, which means million children are born every year in India. If the health of these newborns were positively impacted through better nutrition, this would account for billion years of life affected (please refer to Table 2 for further details). India Description Female Male Total ,799, ,075, ,874, ,802, ,446, ,248, and over 32,591,030 29,364,920 61,955,950 Total 565,192, ,886,425 1,147,995,904 Total Fertility rate (children born/woman) 2.72 Median age (Years) 25.3 Population growth rate 1.55% 17,770,977 Life expectancy at birth (Years) Years affected of children (0-14) alone 1,242,013,554 Resource: CIA World Factbook Website Table 2: Summary of Populations Statistics in India Upon our launch in Tamil Nadu, if we decide to launch our product campaign through women, our initial target market would then be approximately 32.9 million without taking into account any income distribution (please refer to Table 3 for further details). Tamil Nadu Description Female Male Total Total 32,903,000 33,203,000 66,106,000 Rural 16,033,000 16,155,000 32,188,000 Urban 16,870,000 17,048,000 33,918,000 Resource: Tamil Nadu Government Website Table 3: Summary of Populations Statistics in India (by Age and Region) However, as stated previously: However, in the short term the family household living on Rs or less in Tamil Nadu constitutes almost 18 million people. So, when income distribution is taken into account, our target market in Tamil Nadu comprises 18 million people. Subsistence Marketplaces Initiative Page 13

14 6. Competition Our preliminary field research as well as our concept-testing questionnaire helped us identify key competitors to keep in mind as an organization, and also for SoyChoyce. Exhibit 2, for example (see page 66), shows the answers from Mrs. Tamilselvi, a 29-year-old woman who gave us feedback regarding our project. Her responses gave us great insight on potential food perceptions in subsistence communities: - Fruit, fish, and eggs were considered as full of energy; - vegetables such as carrots, drumsticks, and green leaves were considered healthy; - milk, eggs, and fruit were considered good to increase smartness; - products such as Horlicks and Boost are used for strength. Based on this data, we realized that competition for Soy Laabh could come both from natural products (such as dairies, fruits, and vegetables), and from bigger organizations such GlaxoSmithKline (with Horlicks), or Nestle (for Boost). When going more into details with the protein supplements, both our primary and secondary competitive scanning research allowed identifying five key potential competitors xx : - Complan, an H.J. Heinz company health drink mix, sold for 319 INR per 1 kilogram boxes, and advertised to contain 100 percent protein - Sri Matha, a Sri Matha Soy Food Products company soybean flour, sold for 25 INR per 500 grams packets, and advertised to have 50 percent protein content - Horlicks, a GloxoSmithKline company malt drink, sold for 100 INR per 200 grams or 190 INR per 500 grams, and advertised to be rich in protein - Protinex, a Wockhardt company protein supplement, sold for 140 INR per 200 grams, and advertised to be a diabetic protein supplement - Soylife, a Coolex Industries company protein powder, sold for 250 INR per 100 grams, and advertised to be high in protein These products would be SoyChoyce s prime competitors in terms of their protein content, their brand image, their ease of use, and price. There is therefore a great deal of heterogeneity with the competitors, from global drug companies or food companies such as GlaxoSmithKline or Nestle, to local companies such as Sri Matha. As a result, we have decided to focus on our competitive advantage to best compete with these companies. We will leverage our partnership with NSRL and our soybean industry knowledge to come up Subsistence Marketplaces Initiative Page 14

15 with the best product in terms of price, ease of use, protein content, and social compatibility, while applying sustainable practices. 7. Customer Information The population of India is estimated to be 1.17 billion as of 2009, making it the second most populous country in the world. Its population growth rate of 1.3 percent per annum ranks high as well. Although a large majority of India s population resides in rural areas (about 70 percent), there is a slow movement towards urban and suburban areas, concurrent with the rising prominence of industrial and service-related industries. Yet, despite recent economic growth, India still has about 941 million of its residents living at the Bottom of the Pyramid (BoP) conditions (defined in US terms, living on less than $2 per day; Prahalad 2004, Hart 2007). With extremely limited disposable income, they always pursue smart buys and are value seekers. Our primary market is households of less than Rs 5000 living in urban centers in and around Tamil Nadu, an estimated 18 million. The further market research would be able to accurately identify segments within this market, but from the field research, we have short-listed the following non-exclusive segments: Health conscious, family oriented, organized. This segment is concerned with the upward mobility of their children. They are concerned that their current diet does not meet the requirements for their children. They are involved in organizations such as self-help groups to maximize the utility of their small income. Non-health conscious, non-organized. This segment is not concerned that their current diet does not meet the nutritional requirements for their household. They are uninvolved in groups and believe that no special steps are needed to adequately provide for their households. Upwardly mobile, non-family oriented. This segment is either single or has a small household. They are primarily focused on their own upward mobility, and not their children. They may or may not be involved in social groups, and they may or may not be health conscious. What we provide is an affordable, high protein, high-energy food supplement with high versatility, meant to be used in high volume. SoyChoyce is approximately 50 percent protein, with the remainder comprised of high-energy carbohydrates, mineral nutrients, and fiber. Because the main ingredient is the industrial leftovers from soy oil production, and because we are in control of distribution, we can offer this product at a low price. With such a high value product, our main concern is marketing and education. Subsistence Marketplaces Initiative Page 15

16 IV. Field Research and Product Development A. Understanding of the Subsistence Marketplaces The first step leading our Soy Laabh team toward the creation of the SoyChoyce concept was a five-week immersion into the context of subsistence marketplaces. This period included the analysis of cases, interviews from members evolving in this unique Indian context, and findings from research already developed on this market. In addition to interviews from members of the Indian subsistence marketplace, this immersion phase also included a poverty simulation to offer a better feel for what individuals and families currently face in terms of financial, social, and health challenges when living under the poverty threshold in the United States. The immersion phase also included the reading of Barbara Ehrenreich s Nickel and Dime novel, which further confirmed and elaborated on the nature of the challenges identified. This immersion phase eventually opened our team s eyes to the fact that the subsistence marketplaces in South India and the functionally illiterate communities in the United States had similar challenges. For example, both markets had to deal with negative emotional experiences attached to shopping or ordering food in contexts where literacy was considered as a given. The change in the composition of the households expenditures when moving from one level of the subsistence ladder to another was also very similar. The five-week immersion phase was then followed by an eight-week emersion phase. This phase focused on extracting the key pieces of our immersion phase and applying it to our project assignment, to help us develop product ideas to support our project sponsor the National Soybean Research Laboratory (NSRL). At this time, our team had met representatives from the NSRL. The main objective of this partnership was to develop a new product concept that could benefit the Indian subsistence community, using soy as the primary medium. Upon further external and internal research, it was concluded that the best opportunity to penetrate our target market the subsistence market in South India - was through a vessel that is easily incorporated into the already existing behavior patterns of the desired consumer. It was also found that beyond other attributes, price and taste were the most important to market barriers. These findings, and other key ones, were confirmed during the field trip to India, as explained below. B. Learning and Reflection from Field Trip The immersion field trip to India provided an eye-opening experience. By talking directly with our target consumer and understanding their needs and wants, we have now been better able to finalize our product design. Upon arrival, we heard the new sounds of crowded streets, smelled the strong Indian cuisine, and felt the power of a billion-strong nation. On our first-day visit to a village outside Chennai, we had the opportunity to talk with a young mother of an 18-month-old baby. She discussed the rice and dals that were regular meals for her family. She talked about her family structure living in her home and told us about purchasing Cerelac - a critical element to Subsistence Marketplaces Initiative Page 16

17 her child s diet. She discussed the cost of Cerelac, the physician s recommendation, and the typical length one container would last. Understanding the typical income of all the people we interviewed was critical to help us understand their purchasing power and their ability to afford supplements - our main area of interest. Also critical to our study was evaluating the level of education and nutritional understanding. By understanding our interviewees conceptual understanding of nutrition, we can better develop a product that meets their needs and conveys the value of a soy protein supplement. By talking with villagers, we learned about Ragi, a traditional Indian high-protein flour used in a variety of dishes. We learned about government programs utilizing Ragi and soy. The programs were for children or pregnant mothers. These widespread government programs helped in the nutritional education, promoting certain products that were respected for aiding in a healthy lifestyle. Other common programs included providing eggs to children or mothers during pregnancy. In a specific area, Ragi balls were also provided in a school. After many interviews, we decided to focus on a target market earning less than Rs.5000 per month for a family of four. This family typically spends a large portion of their income on staples, food, rent, utilities, and medical care. Food was prepared the same day it was to be eaten as most people in this target market do not afford refrigerators for storing leftover food. More in-depth probing of soy and its use in the Indian cuisine helped us understand the lack of awareness for the product and its high protein content. Only one out of over a dozen interviewees claimed using soy in her diet, but purchasing it only when able to shop at a high-end grocery store if she had additional funds for the month. A schoolteacher we talked with also discussed soy oil used in governmentsponsored school lunch programs. She indicated that at one point soy flour was used, but later substituted for the more accepted soy oil. The educated teacher living above our target market s income cutoff was aware of the value of soy and consumed soy granules in her typical diet. The two shopkeepers we talked with were not very aware of soy, and neither kept supplies of soy products in his shop. Both said they would be willing to keep soy in their shops if there was a consumer demand for the product. The doctor we talked with had a thorough understanding of soy, but was unfamiliar with some of the newer highly-used soy products in the US. He tasted a sample of the soy milk we provided, and commented that the most important aspect for adoption in the Indian cuisine would be taste. Second to taste would be price, a major concern for our market. The doctor felt that certain nutritional recommendations were not followed if there was a taste aversion or price point inhibitor. Our interviews indicated however, that the most important opinion when considering nutrition and health was that of their local physician. It was then clear that there must be a median where the doctors orders were followed but sometimes loosely interpreted. Several mothers and grandmothers discussed the use of formal supplement powders they purchased to supplement the nutrition of their families. These included branded products of Horlicks, Complan, and Boost. These products were purchased and mixed with milk daily, when people could afford them. Many mothers struggled to purchase the products regularly because of the high associated cost. A two-week Subsistence Marketplaces Initiative Page 17

18 supply was between Rs.110 to Rs.150 for a family of four with two children. One mother mentioned that if money was tight this would be one of the first items forgone, although her children were persistent in their want for the product. Another mother of meager means discussed a homemade supplement made of Ragi that came at a less expensive price point than the commercially available supplements listed above. Ragi has been used for a long time in the Indian cuisine mothers have been familiar with it and comfortable preparing it. The staple cuisine was comprised of rice and different pals. Tiffin was the choice for most families at least once a day. Most people purchased non-vegetarian products up to two times per week. The cost of meat was a hindrance to some, which reduced the consumption of meat. Mothers of children discussed the infrequent purchase of snack products for their family. Most mothers were reluctant to spend much of their income on this sort of food. Many of the women we talked with were members of different self-help groups. All the women were very conscious of their income, budgeting, spending, and saving. The self-help group provided a great resource for education, information sharing, and financial aid. There was an observable level of trust within the self-help groups, and confidence in the process and the peer pressure-supported network. In summary, the field trip immersion experience provided us with observations of real life for many rural and urban people living in subsistence. The key takeaways from this experience have been helping us narrow our product design, develop a truly useable product, and determine the best way to communicate our product s benefits to our target market. Subsistence Marketplaces Initiative Page 18

19 C. Idea Generation and Screening The concept generation and evaluation process has been iterative, both before and after the field trip. Key stakeholders such as the project sponsors the National Soybean Research Laboratory (NSRL) - and team members have been involved in the process of narrowing down the concepts and elaborating new key concepts. You will find below a summary walking you through our progression. 1. Before the Field Trip Process and outcomes The team brainstormed and came up with various possible product concepts in categories including snacks, drinks, ingredients, meals, and medical. These products were then ranked by each of the team members, based on equally-weighted criteria that are discussed below. Finally, 10 product ideas were short-listed based on the quantitative scores that the product ideas were given. These product ideas and criteria were further screened based on the qualitative information that we obtained from the field trip. This is discussed in the After the Field Trip section. Concepts As shown below on Figure 3, a total of 29 product ideas were obtained in categories snacks, drinks, ingredients, meals, and medical. We came up with these product ideas by brainstorming within the group and also through our discussions with soy experts from the NSRL at UIUC. Subsistence Marketplaces Initiative Page 19

20 Figure 3: Ideas Shortlisted after Initial Team Evaluation Subsistence Marketplaces Initiative Page 20

21 Criteria and Rationale We came up with the below criteria, which we weighted equally. These criteria were arrived at after discussing the possible needs that should be addressed by the soy product in our target market: Versatility: the extent to which the product would be useable in different contexts Perceived affordability: the extent to which the product seemed cheap to manufacture and thus to sell Logistical efficiency: the extent to which the product would be easily produced Local sourcing opportunity: the extent to which the components of the product could be locally sourced Familiarity: the extent to which the product could easily fit in the Indian diet Nutritional benefit: the extent to which the product would be high or low in proteins and other nutrients per serving Convenience: the extent to which the product would be easily used and consumed on a regular basis Entrepreneurial revenue generating opportunity: the extent to which the product could be a social entrepreneurship project for a local community member Durability in harsh environments: the extent to which the product could last in the household before being consumed Geographic location: the extent to which the product would have a very localized vs. a more international appeal, with the opportunity to use with low-income communities around the world Potential protein content: the extent to which the protein content per serving could be high or low Meeting needs: the ability to respond to the target audience needs Ranking As shown in Table 4, points were assigned to the products by each team member, based on his or her perception of the product s importance. Then rankings were assigned based on summation of points that were obtained for each of the product ideas. Table 4: Team Attributes Rating Criteria Weighted Average Price 29 Taste 24 Cultural Compatibility 21 Usage Adoptability 16 Subsistence Marketplaces Initiative Page 21

22 Shelf Life/Storage 10 Total 100 Finally, 10 product ideas were short-listed based on the points that were obtained (as shown with the highlighted ideas on Figure 3 on page 22). 2. Concept-related Takeaways from the Field Trip As explained in an earlier section, after interviewing various people during our field trip to India, we concluded that price and taste are the two main criteria for our target consumers while selecting a product. Also, people seemed to have a lot of misconceptions about protein, and most of them did not know that soy is a high-protein food. In fact, there is a notion among a large population that soy is merely poultry feed. So, along with working on developing a soy product that could help address the nutritional issues in India, we thought that it was equally important to focus on educating and creating awareness about soy and debunk misconceptions about it. Using women self-help groups for educating, marketing, and distributing soy would be most effective, since most of our target customers are people living in subsistence in Tamil Nadu. 3. After the Field Trip Process and outcomes After the field trip, we came up with five product concepts that would be the most appropriate for our target market, based on various weighted criteria that are discussed below. These products were then ranked by each team member, and the product with the highest number of points the unflavored soy powder was picked as our product. Concepts Flavored Soy Powder: Sweetened/flavored soy powder that can be used to mix in milk or water. Comparable to products like Complan, Horlicks, Rasna, etc., which are popular in India. Unflavored Soy Powder: More versatile than flavored soy powder, since this could be mixed in a wide variety of food products, including milk, curries, lentil soup, dal, etc. It can be processed to remove the beany flavor that unprocessed unflavored soy powder generally has. Unflavored soy powder with additional non-soy flavor packets: Flavored powder can be mixed with unflavored soy powder when used with milk, water, or sweet products. Subsistence Marketplaces Initiative Page 22

23 Soy liquid: This is a mild-flavored high-protein soy additive. It is flavored mildly as to not interfere with seasoning of Indian recipes. Soy balls: These provide texturized, unflavored soy protein in ball form. They are similar to Nutri-Nuggets. Criteria and Rationale The above soy products were ranked by the team based on criteria including price, taste, cultural compatibility, usage adoptability, and shelf/storage life of the product. These criteria were arrived at by matching the needs of our target market that were identified during our trip: affordability in terms of protein intake, emotional satisfaction, ease of use, and safety and trust in the product. Moreover, a weight was given to each criteria based on the importance that we perceived they had from our field trip. The criteria-need mapping and weight of each criterion can be seen in Tables 4 and 5. IDEA TOTAL Soy Powder (Flavored/Sweetened) 2917 Soy Powder (Unflavored) 2810 Soy Mini-packages (Small individually packaged) 2784 Soy Balls 2701 Soy Liquid 1684 Table 5: Team Criteria Evaluation after Field Trip Objective 4. Final Product Concept: SoyChoyce As explained in previous sections, there is a lack of readily available, affordable protein in subsistence markets in Tamil Nadu, India. The objective of our final product concept is therefore to provide a low-cost option for parents to supplement the diet of their children with a versatile soy product. This supplement could also benefit adults in the family. Choice Explanation The choice for an unflavored soy powder over other soy forms is the versatility of the powder. By processing the soy with high heat before it is grounded, we are able to remove the beany flavor in the soy and make it almost flavorless to incorporate into many different food preparations. The soy powder has a long shelf life (one year) and is soluble, which provides many opportunities for use. Instead of producing a specific food made of soy, we have chosen the soy powder because it can meet the needs of our consumers protein deficiency in many ways. This helps increase adoption and accommodates a range of users. After considering many forms of high protein soy products (as explained in the previous Subsistence Marketplaces Initiative Page 23

24 section), we decided on a soy powder made of soluble soy flour that contains 52 percent protein. This choice is best because it the most economical for soy per 100 grams. Additionally, it provides flexibility in usage in drinks, sauces, baked good products, and snack food. By providing an unflavored soy powder that is soluble and flavorless, we allow for endless flexibility to incorporate our powder into traditional Indian cuisine. SoyChoyce: Strengths and Weaknesses SoyChoyce has inherent internal strengths and weaknesses. We are confident, however, that the overall value that the product will be creating will outweigh the potential obstacles to the launch of our concept. Soy is available in most parts of India, which makes producing a soy product for subsistence consumption very attractive. SoyChoyce has extreme flexibility for easy adoption. SoyChoyce can be mixed into sauces, curries, milk, water, and even substituted in baking for traditional flour. SoyChoyce is priced right, making it a great value for people in subsistence markets to increase protein consumption without significant sacrifice. SoyChoyce is a sustainable and renewable product, because it grows from the earth and does not have byproducts that are harsh or harmful. SoyChoyce optimizes the use of the whole soya bean: The oil is extracted and the remaining byproduct is ground and processed into a soluble flour powder. There could be issues with SoyChoyce regarding the farming methods utilized by farms in regards to irrigation, fertilization, and farming equipment emission releases. These issues could be mitigated by utilizing safe and sustainable farming practices. Additional sustainability concerns might arise in the manufacturing process of the soy. There are, however, good manufacturing processes using sustainable processing, such as through the thoughtful use of materials, no land filling, byproduct mitigation, and reprocessing of water used in the manufacturing system. Hurdles that SoyChoyce will face include: storage, price, lack of a branding partner, and adoption concerns related to unfamiliarity with soy powder use. The shelf life and storage issues relative to high humidity could present problems if consumers are not well educated on how to best store and use SoyChoyce. Price will be an issue because the subsistence market we are targeting rations money to meet critical needs daily, while our product has the potential to be seen by some as superfluous or unnecessary. This weakness can be overcome by educating consumers on the benefit of soy protein, the opportunities high protein diets provide, and the value that SoyChoyce offers over competitors. The lack of a branding partner in this new introduction will be difficult to overcome in an ever-increasing consumer society that is the subsistence market in India; but utilizing self-help groups effectively will provide an alternative through word of mouth. The final hurdle will be to convince subsistence consumers to change how they cook by incorporating SoyChoyce in their diet. SoyChoyce has multiple uses and should in and of itself provide many alternatives, but this will have to be well communicated and demonstrated in the introduction at self-help group meetings. The major hurdles are mitigated by the benefits we can offer subsistence markets. SoyChoyce is an alternate, cost-effective protein source that can be consumed by many in various manners. The flexibility Subsistence Marketplaces Initiative Page 24

25 that SoyChoyce offers allows parents to introduce SoyChoyce and convey the benefits of high protein diets to their children. The value SoyChoyce provides will be demonstrated in the change in opportunity that a healthier balanced diet provides. Core Product Component Specifics The components of the core products include the soy powder and the container packaging the powder. You will find below the specifics of each of these components based on the research, interviews with soy experts from the NSRL, and decisions made thus far. Soy Powder The soy powder will be a soluble powder with a 50 percent protein concentration per gram of soy flour. It will be unflavored, thanks to a heating process to remove the beany flavor, and appropriately ground to reach the desired solubility level to meet the versatility need. The complete list of the attributes we envision for the soy powder so far is as follows: Unflavored Soluble Versatile Low cost Long shelf life The soy powder can be mixed with milk, curry, water, sauces, and powder. Packaging To compete with branded mainstream supplements, we are going to provide customers with a onetime storage container that is durable and reusable. Figure 4 shows the concept generation process around the packaging component of the product. Subsistence Marketplaces Initiative Page 25

26 Figure 4: Product Concept Generation after Field Trip We finally decided that this container will have a metering device for a 20-gram portion control and a shaker section for casual use as a sauce thickener, a sprinkled supplement, or as a substitute for flour when baking (dusting before rolling dough or covering pans, etc.), as shown in the figure below. The package will be very attractive to entice consumers and compete with branded colorful but nonsustainable packages. It will contain the SoyChoyce logo in raised plastic textures form and a simple visual indicator of the amount to be consumed per person per day. This will help overcome language barriers and lower literacy rates. This is following some of the tactics physicians indicated using for prescriptions in communicating the dosage. Subsistence Marketplaces Initiative Page 26

27 The second part of our packaging will be to transport the product from manufacturing to entrepreneur to consumer, ultimately to replenish the durable container. This package will be made from plastic film that is sealable, has a high puncture resistance, and a strong moisture and oxygen barrier. The package will contain two weeks supply of 1000 kg. This will roughly be enough for a family of four to have the suggested portion once daily. The metering portion control device will be key to helping people understand how to use the product. This plastic packaging allows for easy, hygienic, low-cost transferring of material. Unlike competitors products, we will not be utilizing a disposable cardboard box for storage. We will rely solely on the plastic bags for transport and the durable container for more permanent storage within the home. The complete list of the attributes we envision for the packaging so far is as follows: Air-tight/sealable Sized to hold a two-week supply (1000 grams) Metering device in container for portion control Durable Easily washable Subsistence Marketplaces Initiative Page 27

28 Education Component Specifics As explained in our summary findings from the field trip, we have realized that the Indian consumers have been skeptical and reluctant in their acceptance of soy protein products. This is attributed mainly to a lack of awareness, partly due to the lack of business efforts to increase the awareness of benefits from soybean. Soybean has been used in a limited number of Indian cuisines, and a negative perception of soybean stills exists, partly due to unfamiliarity with soy flavor. Therefore, a key to our success is to increase awareness of benefits of soy through our product, and change the negative perception to a positive one. Potential Method With our limited marketing budget, the poor condition of communication sources, and econocultural limitations such as illiteracy and lack of purchasing power, it would be more important to carefully allocate available marketing resources to appropriate places in timely ways. In addition, we should utilize communication channels that have been well-built by other stakeholders, such as self-help groups (SHGs), nongovernmental organizations (NGOs), government agencies, international organizations, and so on. Furthermore, we also need to employ a mass-appeal approach to get enough reach to the market, using mass media such as television, radio, newspaper, mobile, and so on. To sum up, face-to-face communication with SHGs, experts such as doctors or retailers, and NGOs, along with mass communication efforts such as advertising, should be well integrated to reach the end users and to change their attitudes and behaviors. We should investigate and utilize both informal channels and formal channels of communication, and the information that consumers will obtain from both channels should be clear and consistent to prevent information distortion and distraction. Face-to-Face Approach General education sessions about soy protein will be held in villages, SHGs, or local health centers with doctors present. To promote participation, free samples will be distributed after the sessions. These education sessions with samples of foods baked with our soy powder would help us raise awareness of the benefits of our product, as well as promote its initial trial. We have indeed learned that consumers in the subsistence marketplaces prefer to personally witness the benefits of a product before making purchasing decisions. SHGs will play a pivotal role in distributing products and communicating benefits, because they are tightly built on personal relationships and frequent interactions among the members. That is, SHGs will be a more reliable and accessible source of information and a potential distribution channel. Subsistence Marketplaces Initiative Page 28

29 Figure 5: Educational Pamphlet (Side A) Figure 6: Educational Pamphlet (Side B) Subsistence Marketplaces Initiative Page 29

30 D. Technical Specifications and Detailed Drawings Subsistence Marketplaces Initiative Page 30

31 V. Marketing Strategy The following marketing strategy is the result of our primary and secondary research performed on subsistence marketplace consumers in India. The analysis of the unique context of this subsistence marketplace helped us identify two key attributes to consider when defining this market: purchasing power and literacy. Short- to long-term strategies were developed, based on the unique benefits that SoyChoyce will offer to the unique market in Tamil Nadu for the short run, other subsistence marketplaces in India for the middle term, and the rest of the world for the long term. A. Target Market Selection As previously mentioned, one of the key characteristics of the subsistence marketplace is the low purchasing power of the consumers. Our research has shown that households living with Rs or less which corresponds to the BoP1500 segment of the Indian community would best benefit from our product. This segment corresponds to about 31.8 percent of the population. In addition, one of the key units defining the subsistence market consumer is the household. Despite the fact that the food purchases are usually the task of the woman, and especially the mother, in the households, the end consumers are the members of the family unit. We have therefore decided to focus on household units rather than individual consumers to market our product. Finally, the choice of the Tamil Nadu area stems from the fact that most of our primary data has been developed in this particular state. It is also interesting to note that according to the Food Insecurity Atlas of India, Tamil Nadu is one of the Indian states with the highest level of protein and energy deficiency (41.4 percent - compared to 2.5 percent in Gujarat) xxi. Considering the fact that soy is a great source of both calories (to address the energy issue), and protein (to address the protein deficiency issue), SoyChoyce has the potential to make a significant impact on subsistence households in Tamil Nadu. In the medium term, as shown in Figure 7, we plan on using Tamil Nadu as a launching for SoyChoyce to the rest of the Indian states, with a priority on Assam (with 27.9 percent of both protein and energy deficiency), Orissa (with 24.1 percent of both protein and energy deficiency), Maharashtra (with 19.7 percent of both protein and energy deficiency), Madhya Pradesh (with 19.7 percent of both protein and energy deficiency), and Rajasthan (with 15 percent of both protein and energy deficiency) xxii. Subsistence Marketplaces Initiative Page 31

32 Figure 7: Potential Geographic Launch Schedule ( In the long run, we plan on expanding outside of India and target other regions of the world (especially third world countries) dealing with protein and energy deficiency issues. B. Sustainable Marketing Mix In addition to the social mission to improve nutrition in India through soy-based products such as SoyChoyce, our goal is to develop a product that is sustainable in terms of design, value chain, and communication of the value proposition. As previously mentioned, our product concept is based on a reusable container that end consumers would use for their daily powder intake. The powder refills would come in plastic bags, with minimal use of plastic, to make the soy powder package as efficient as possible. We are also considering using recycled plastic for the container to further increase our efficient and sustainable use of raw materials. In addition, we are thinking about applying our sustainability mission further by developing a waste management system on the consumers ends and collecting their empty SoyChoyce powder plastic bags in exchange for points. These points would then lead to discounts on future SoyChoyce powder purchase after a specific number of plastic bags have been returned to our local office for recycling. Subsistence Marketplaces Initiative Page 32

33 In terms of the whole supply chain, we are planning to connect only with local suppliers, which would limit our carbon footprint in terms of raw materials transportation. The focus on local suppliers would also support the development of the local economy. Moreover, the production of soy is a process that does not have detrimental byproducts for the environment. These dimensions of our supply chain would address the people and planet aspirations of our mission. At the end of our supply chain, the focus on women entrepreneurs to serve as ambassadors for our company, as sellers of SoyChoyce, and as advocates of the benefits of soy to their community members, would reinforce the people dimension of our mission. Our pledge for sustainability therefore goes beyond the respectful use of soy a natural raw material to develop our product. It also includes a social and economic dimension that would benefit the communities where SoyChoyce would be marketed. One of the challenges our project will face is the effective and convincing communication of SoyChoyce s value proposition. Based on the choice of our target market, the advertising of our product s value proposition will revolve around the following: - Healthy food choice showing the benefits of soy as a source of protein and energy - Tasty and natural product being attributes that our market finds very important - Product that brings nourishment an attribute that our market finds important, especially when most of our target market members cannot afford three meals a day - Helps children be smart especially important when targeting parents during the education period - Cheap highlighting the fact that, even with their low income level, they could afford SoyChoyce We believe that these attributes would be best conveyed through public media. We will develop education booklets to highlight the long-term benefits in terms of children s education and health. The subsequent section will give more details regarding the implementation of this strategy. Subsistence Marketplaces Initiative Page 33

34 VI. Action Plans A. Targeting and Positioning Statement 1. Targeting Based on external and internal primary/secondary market research, we will be setting our target market as the family unit focusing specifically on the mother-child dynamic. Our purpose is to ensure the mother (the head of the household that maintains the purchasing power) will be our primary focus (as she will be our ultimate decision-maker). On the other hand, we will strive to gain a mixture of communication that simultaneously speaks to the child portion of our target market. This target market, based on geographic location, will be Tamil Nadu, India with expectations to expand further into the Indian regions stated in the Target Market Selection section. 2. Positioning Recall the face of the poorest and the weakest man whom you may have seen, and ask yourself, if the step you contemplate is going to be of any use to him. Will he gain anything by it? Will it restore him to a control over his own life and destiny? In other words, will it lead to Swaraj for the hungry and spiritually starving millions? -Mahatma Gandhi As stated before, 44 percent of children under 5 years old were suffering from malnutrition in India (as of 2007). The children of India are suffering needlessly by this protein deficiency crisis. This is our ultimate agenda: to be a part of the end of this needless suffering. Let us choose SoyChoyce and choose a happy and healthy life. B. Product Design As previously explained, the components of our core product include the SoyChoyce powder and the SoyChoyce container: - The SoyChoyce powder will be a soluble powder with a 50 percent protein concentration per gram of soy flour. It will be unflavored, thanks to a heating process to remove the beany flavor, and appropriately ground to reach the desired solubility level to meet the versatility need. It will be packaged with plastic bags made of sealable plastic films, with a high puncture resistance and a strong barrier to moisture and oxygen. - To compete with branded mainstream supplements, we are going to provide customers with a onetime SoyChoyce container that is durable and reusable. The package will contain the SoyChoyce logo in raised plastic textures to form a simple visual indicator of the amount to be consumed per person per day. Subsistence Marketplaces Initiative Page 34

35 Figure 8 details the container prototype. The container serves the following purposes. It is designed to increase the shelf life of the soy powder contained within by being resistant to moisture and invasion by pests. Portion control is integrated within the design, as shown below: Figure 8: Product Prototype By rotating the cap and flipping the container upside down, the upper portion is filled with the appropriate amount of soy flour for one serving. By rotating the cap back, the soy flour is trapped in the upper portion, and then can be either sprinkled or poured using the dispensing holes. Subsistence Marketplaces Initiative Page 35

36 C. Sustainable Value Chain Soy Laabh is concerned with the sustainability of its value chain, and has thoughtfully prepared a strategy for introducing SoyChoyce to consumers without major adverse environmental, social, or market implications. SoyChoyce will be served in the reusable plastic bottle detailed above. The product refills will be packaged in minimal plastic liner bags, and consumers are encouraged to refill the plastic bottle and join SoyChoyce in reusing containers instead of creating more refuse, as is the case with our competitors disposable packaging. 1. Bidding Process The bottle will be locally sourced, and a formal bidding process will be conducted. The design, bottle requirements, and post-consumer material (PCM) requirements will be issued to producers. A bidding period will be provided for producers to return with design modifications and capability specifications, along with pricing, to Soy Laabh. After consideration of the benefits, quality, price, and overall manufacturing capability, Soy Laabh will determine a producer for the first set of bottles. A major consideration will be the producer s PCM experience, material supply stream, and success at producing food-grade products using post-consumer material. The beer bottles used in the US in stadiums will be benchmarks for PCM usage in food-grade products (see APPENDIX 1 for benchmarking). The supplier of choice will have bottles delivered directly to the Soy Laabh facility. The choice to have a regional company produce the bottles is deliberate, to reduce the carbon footprint associated with transportation costs and to be closer to the process. Likewise, the soybean flour processing for SoyChoyce will also be outsourced, and a similar bidding process will be conducted. Material specifications will be set and provided to the suppliers. Certificate of Authorization and other quality metrics for food processing standards in India will be mandated to ensure quality and food safety. As part of the soybean flour processing, local soy farmers will be considered for soybean sourcing. This will again help reduce contribution to CO 2 emissions in transporting raw soybeans. 2. Soy Laabh Facility The Soy Laabh facility will house corporate offices in addition to providing warehousing space for shipments directly from suppliers, to be dispersed to the entrepreneurs. This will be the major fixed overhead cost for Soy Laabh to begin and maintain distribution. The facility will have an education center where entrepreneurs can come for training and to create custom educational materials with the help of the Soy Laabh communications team. This will help entrepreneurs have targeted messages that resonate with their consumers. A key component of the sustainable value chain will be the coordinator assigned for directing incoming material shipments and helping entrepreneurs coordinate the most cost-effective and environmentally responsible manner in which to get their product from the Soy Laabh facility to their distribution points. Subsistence Marketplaces Initiative Page 36

37 The first distribution will take place with the Soy Laabh facility coordinator, so that entrepreneurs have the support and resource needed to answer difficult questions. The Soy Laabh coordinator will then correspond and have regular meetings with entrepreneurs to support their micro businesses. From working with local farmers to seeking local sources for processing and packaging, Soy Laabh will do its part to maintain a sustainable value and share this message with its entrepreneurs. Soy Laabh s commitment to provide a low cost product in a conscientious manner will help the company become a leader in sustainable corporate behavior and lead the way for entrepreneurs to be diligent in delivering the SoyChoyce message to consumers. D. Value Proposition to our Consumers The value proposition that we give our target subsistence market is a product that helps the wellbeing of consumers and is cheap enough for them to purchase regularly. The high protein content of SoyChoyce will give our consumers, both adults and children, enough protein content per day to keep them healthy. Adequate protein intake will make our consumers, especially children, smart and active, due to improved nourishment and reduced illness. This in turn implies reduced spending on healthcare in the long run. This also means children doing well in school and adults doing better at work and other activities, thus improving the quality of life overall. Also, since SoyChoyce is made from natural ingredients, it is safe for consumption and can be easily adapted by the Indian population, which mostly consumes a natural organic diet. Further, unlike our competitors products, SoyChoyce is versatile, allowing our customers to add it to any of their meals or just use it as a stand-alone product along with water or milk. The table below (Table 6) compares the price and protein percentage of rice and SoyChoyce. It shows that the price per gram of protein in SoyChoyce is less than one-fifth of the price per gram of protein in rice. Also, since Soy absorbs a lot of water, it replaces the same quantity of rice in a meal - or even more, depending on the consumer. Product Price/ Kg (in Indian Rupees) Protein/ Kg (in Grams) Price/ gram of protein (in Indian Rupees) SoyChoyce Rice Table 6: Protein Concentration - SoyChoyce vs. Competition (Source: USDA Nutrient Database, Times Of India, April edition) SoyChoyce will be priced at Rs 27 per 500 grams, which is much less compared to other milk protein powders that are currently available in India. Though there is one soy powder product that already is sold in India for Rs 25 per 500 grams, we believe our product will still have a competitive advantage in terms of the education that we provide to our market using our self-help groups. Also, since this product will be Subsistence Marketplaces Initiative Page 37

38 taken directly to the homes of the customers and sold, we believe they can save on transportation costs to the wholesale or retail store. Further, the money that will be paid by our customers for SoyChoyce bottles will be refunded to them after six refills of 500 grams of SoyChoyce. So, our customers will get the bottle effectively free of cost while enjoying the benefits of our low-priced, high-protein SoyChoyce. E. Communication of the Value Proposition Many products have been introduced in hopes of helping to reduce malnourishment in India. Goods such as Boost, Horlicks, and Complan have been introduced into the Indian marketplace. However, the main problem with current products is that they are too highly priced for BoP consumers. Furthermore, they also failed to reach consumers and deliver value to them, due to lack of understanding of the marketplace and poor communication strategies. As a result, many Indians are unable to supply themselves with the essential and proper nutrients that could help them to fight off common diseases and infections, and stay healthy as they go to school or work. For this product to be successful in its initial entrance into the Indian marketplace, Soychoyce must first focus on customizing communication contents and managing communication channels. In customizing communication contents (what to communicate), Soychoyce needs to effectively communicate to the end consumers the product s affordability, its very competitive end cost, and its tangible nutritional benefits. Particularly, it will be most challenging to communicate intangible nutritional benefits, because health growth or improved health cannot be directly detected with the naked eye. Thus, we must make an effort to elaborate on the nutritional benefits, particularly the more tangible ones, with visual benefits or heuristic learning processes (like a participation-based education session). In addition, good nutrition is not intuitive. People do not always know what food or what food practices are best for their children and family. Uncertainty and chaos are a given in the informal economy that supports the majority of the target audience. With extremely limited disposable income, they always pursue smart buy and value seekers. Therefore, the product appeals also tend to be hard sell rather than soft sell appeals, which means purchasing patterns are based on careful planning and research to avoid uncertainty. Our first communication challenge will be to put our product and our communication efforts on the radar of consumers planning and research. The communication efforts must be confirmed and endorsed by multiple sources of information to reduce the uncertainty of their purchasing decision. In other words, along with the effort to customize communication content, it will be our marketing imperative to build effective communication channels through which we can effectively deliver the communication content and the end value to the end consumers. 1. What to communicate We should understand the price sensitivity of consumers living in subsistence contexts. With technological innovation and by removing middlemen, we can competitively price Soychoyce. Thus we need to aggressively communicate this competitive edge. This can be done comparing competitors prices to household budgets. That is, the core value of Soychoyce will be presented as a comparative affordability as well as an absolute affordability. The edge is expected to drive the initial trial or purchasing of Soychoyce as well as maintain the consumption. Subsistence Marketplaces Initiative Page 38

39 Soychoyce has more to propose to consumers than the price-advantage we must communicate the cultural compatibility of Soychoyce. Soychoyce does not conflict with Indian dietary cultures, and can be easily accultured into its food customs by customizing its taste, smell, and so on. We will communicate its compatibility via education sessions, on-site cooking demonstration, cook books, brochures, advertising, and publicity. Last but not least, we must make the undetectable health benefits more visible and tangible while incorporating the advantages, based on price and compatibility, into the entire communication strategy. Through our collaboration with other stakeholders who have expertise in health and who are trusted by consumers stakeholders such as NGOs, SHGs, government organizations, and other voluntary local organizations we will hold comprehensive nutrition education sessions across communities. These sessions will feature both general health information and specific usage of Soychoyce and its benefits. In addition to the face-to-face communication, mass communication appeals will be also utilized in forms of both public service advertising and infomercial. 2. How to communicate To build the optimal communication channels for our value proposition, we conducted a communication channel analysis (as shown in Figures 9, 10, and 11). The possible communication channels were categorized into formal (e.g., television and newspapers) and informal channels (e.g., friends and relatives), and then each channel was analyzed and measured by its frequency, quality, and reliability. Finally, proximity of each channel to consumer, both physical and psychological, was also measured. Formal Channels Informal Channels 1) Government Organizations 2) International Organizations 3) Local and International NGOs 4) Broadcastings 5) Radios 6) Newspapers 7) Experts such as Doctors and Community Leaders 8) Retailers 9) SHGs 1) Relatives 2) Friends 3) Co-Villagers and Neighbors 4) Colleagues and Employers 5) Members of the Same Caste 6) Retailers 7) SHGs 8) Experts such as Community Leaders 10) Religious Organization Figure 9: Possible Communication Channels for SoyChoyce Subsistence Marketplaces Initiative Page 39

40 Figure 10: Frequency, Quality, and Reliability of Channels Proximity to Consumers Web LHM Index Formal Informal Ra MMM GO MHH RO MMH Rel HLH SHG HHH Doc MHH Nei HLH C CL HHH Coll HLH Fr HLH LN MHH Br MMM NP MMM IO LHH H High M Mid L Low Ex) HHH High Frequency, High quality, and High Reliability MHM Mid Frequency, High Quality, and Mid Reliability IN LHH Figure 11: Proximity of Channels to Consumers Subsistence Marketplaces Initiative Page 40

41 The key findings of the communication channel analysis is as follows: 1) Most informal channels are high in frequency, mid to low in quality, high to mid in reliability, and approximate sources of information. Most formal channels are low to mid in frequency, high in quality, and not too far but not too near sources of information. Although informality is the nature of our target market, formal channels of communication have become more and more available at an unprecedented pace, and their impacts on communication strategy have also increased. In other words, a wide set of mass communication channels can play a role in addressing our value proposition. However, considering the relative limitations of mass communication in Tamil Nadu, we must embrace both mass communication approaches and face-to-face communication approaches. 2) Face-to-face approaches such as Word-of-Mouth (WoM) will be our primary communication tools, and mass communication approaches such as advertisements and publicities will be secondary communication tools. Both will make up for the other s weak points in frequency, quality, and reliability, while maintaining the congruency of communication messages. For example, WoM and free sampling are extremely important, as many Indians rely heavily on feedback and interactions from friends, family, and trusted members of the community before trying a product. However, when investigating the mass diffusion or contagious mechanism in WoM, the initial information tends to come from formal channels, such as mass media and organizations, and the rapid diffusion and dissemination of information heavily depend on both mass-mediated communication and face-to-face, interaction-based communication. 3) Mass media such as television, local newspaper, billboard, placard, etc., will play a catalytic role in improving brand awareness and delivering credible quality information about Soychoyce. Visual information, more appropriate for the low-literate consumers, and endorsements from trusted opinion leaders such as doctors and cricket stars, will frequently appear. The existence of a readymade network of SHGs will be a great opportunity not only for building distribution channels, but also for building communication channels. Soychoyce brand representatives from SHGs will regularly meet and be educated about health, nutrition, and Soychoyce. We will change the mindset of our brand representatives while giving an opportunity for sizable income generation. And by introducing Soychoyce to their neighbors, they will change a mindset of their neighbors, who are the end consumers of Soychoyce. Furthermore, they are densely interwoven within their micro-level communities, and they share valued information and advice from women and peers, generating buzz. Subsistence Marketplaces Initiative Page 41

42 F. Manufacturing Plan, Product Forecast, and Launch Schedule 1. Manufacturing Plan Soy Laabh plans to outsource its manufacturing (including soy flour and container as independent stages) to local sites within India, preferably in the Tamil Nadu region. This will provide three outstanding major benefits. One, it will reduce transportation and distribution costs. Two, it will be more environmentally friendly; reducing the previous costs will effectively reduce its carbon footprint as well. And finally, it will create a positive impact on the local economy by creating jobs and a surplus of new money supply. This also creates another benefit, making the company less susceptible to political risk by being an integrated asset into the Indian economy. As stated previously, before manufacturing will occur, a formal bidding process will take place, locally of course. In this bidding, the supplier with the highest quality, best price, and highest capability in terms of design and capability specifications will win. Also considered will be experience, supply chain connections, and previous success within this industry. Soy flour process will be in a similar framework, but with a context that includes soybean flour processing centers and local soy farmers. 2. Product Forecast SoyChoyce product forecast is based on its target market analysis. The target market of SoyChoyce is the family household living with Rs or less, focusing specifically on the mother-child dynamic. As stated before, this target market in Tamil Nadu is about 18 million people. And all of India, which is our long-term goal, equates to about 309 million people. Thus, this is the target market figure that Soy Laabh will focus intensely on and should base its initial production towards. The production cycle will be phased so that Year 0 (one full business year) will include the setup of the central office, the advertising, training, and education programs, the establishment of supply, manufacturing and distribution networks, and the finalization of the prototype product. Subsequently, in Year 1 of production, 15,000 units are estimated to be sold. This is projected to increase by 15 percent annually until by Year 5 of production, 26,000 units will be sold annually. Along this production progression, the objective will be to determine where and how success is best achieved, meaning in terms of zoned region, distribution method, etc. For example, if one region reveals itself to be most successful, then the focus may shift to this region to gain a solid market base. As each stage progresses, production levels will adjust respectively, according to market success. 3. Launch Schedule The Launch Schedule will evolve parallel to the production progress. The Launch Schedule for SoyChoyce, as stated above, will be based on market success. Time Table Subsistence Marketplaces Initiative Page 42

43 Year 0 Setup Central Office, Advertising, Education & Training Establish Supply, Manufacturing & Distribution Networks. Finalize Prototype Years 1-5 Year 1: Projected Units Sold 15,000 Year 2 Projected Units Sold 17,000 Year 3: Projected Units Sold 20,000 Year 4: Projected Units Sold 23,000 Year 5: Projected Units Sold 26,000 Subsistence Marketplaces Initiative Page 43

44 G. Financial Forecast The table below shows our preliminary financial forecast, including some of our current assumptions. Year 1 Year 2 Year 3 Year 4 Year 5 Revenues 405, , , , ,348 Soy flour 225, , , , ,526 Bottle 7,500 8,625 9,919 11,407 13,118 Polythene packets 14,500 16,675 19,176 22,053 25,361 Total Cost of materials 247, , , , ,005 Rent 100, , , , ,000 Education & Marketing 30,000 10,000 10,500 11,025 11,576 Personnel 72,000 79,200 87,120 95, ,415 Commission for SHGs 15,000 16,500 18,150 19,965 21,962 EBIT (59,000) (24,000) (6,815) 13,476 37,390 Tax payable (19,470) (7,920) (2,249) 4,447 12,339 After-tax income (39,530) (16,080) (4,566) 9,029 25,051 Financial Forecast Assumptions and Calculations: Each packet of SoyChoyce is 500 grams, which can be used over a period of one week by a family of four. Assumed 14 refills on an average per household in one year. In Year 1, we plan to sell SoyChoyce in 10 villages. In each village, SoyChoyce will be sold to 100 households in the first year. Total units that can be sold in Year 1= 15*10*100= ({14 refills+ first purchase with the bottle}*# of villages* # of households/village) Cost: 15 INR/ 500 grams of SoyChoyce 15 INR/ Bottle 1 INR/Polythene bag Tax rate= 33 percent Subsistence Marketplaces Initiative Page 44

45 Personnel: Salary per year per person= 36,000 INR (Minimum wage in India is Rs 80 per day on average. But in the food processing industry, it is Rs 44) Subsistence Marketplaces Initiative Page 45

46 H. Ecological (Planet) Impact Forecast The major ecological issue concerning Soy Laabh will be the sourcing of the soy that will be used to produce SoyChoyce. The soy will be locally grown, which will have the impact of reducing the impact of India importing soy from South America. It has the distinct advantage of not being genetically modified, which is unique to India. The United States and Brazil, the two largest producers of soy, both produce genetically-modified soy. This will fall in line with World Wildlife Federation s goals for India to increase soy xxiii. This is a metric that will help lessen the impact on South American forests being destroyed for increased soy farming. Additionally, this can be supported because India has a price advantage, which is a natural incentive to contribute positively to the world ecological impact, not just that of India. Because in some areas of India soy can be planted and grown twice in a year, there will be additional opportunities for sourcing soy than in other regions that do not have this benefit xxiv. The second impact that Soy Laabh will choose to focus on will be responsible waste management and water usage when partnering with a manufacturer. Soy Laabh will focus on reducing waste products by utilizing the byproduct of soy used for oil production. Water usage in processing the soy will be recycled, filtered, and reused in the process again to reduce the impact. Soy Laabh will have a minor ecological impact and will provide far more benefits to the community at large. By monitoring how our company impacts farming, waste production, and water, it will reduce its ecological footprint. I. Societal (People) Impact Forecast A significant number of people in India are suffering from malnutrition and protein deficiency. It is an urgent call in that the negative impacts of malnutrition on India are far-reaching. Given its impact on health, education, and productivity, persistent malnutrition is a major obstacle to human development and economic growth in the country, especially among the poor and the vulnerable. In the absence of appropriate interventions, one estimate suggests that the productivity losses in India, associated with malnutrition, protein deficiency, iron deficiency anemia, and iodine deficiency disorder, will amount to about $114 billion between 2003 and 2012 (Development Economics LDB, 2006). Moreover, although economic growth in India has facilitated access to food for the poor, it has failed to help the poor have a balanced nutrient intake (Gragnolati et al., 2005) xxv. Due to culturally embedded eating habits, and poor awareness and poor education about malnutrition and protein deficiency, the problem of malnutrition has not been effectively tapped. Protein deficiency directly affects many aspects of human development, especially for children: It retards their physical and cognitive growth and increases their susceptibility to infection and diseases, further increasing the probability of being malnourished. For example, malnourished children, having weakened immune systems, are more vulnerable to major diseases such as malaria, diarrhea, pneumonia, and measles. In India, child malnutrition is responsible for 22 percent of the country s burden of disease Subsistence Marketplaces Initiative Page 46

47 (World Bank 2006). xxvi How can malnourished children perform well in school and become healthy, contributing members of society? Non-market (nonprofit) and organizational approaches have been dominant initiatives to take on the problem of malnutrition in India, in forms of subsidiaries operated by governments, NGOs, IOs, and so on. However, the chunk of the population in need has been too large to fully be supported. More recently, although many multinational and domestic companies have jumped into the nutrient and health market, they have also failed to deliver the nutrient value to the end consumers, especially in the subsistence context. Due to lack of mutual understanding and dialogue within the culture, lack of infrastructure for distribution and communication channels, lack of awareness, and poor quality with unaffordable prices, all business initiatives are faced with daunting challenges (Viswanathan et al., 2008) xxvii. Considering the problems and challenges that India and its members face, SoyChoyce aims to help the society and people living in the society to overcome the problems and move forward via: - Alleviating protein deficiency, thus improving human development, both physical and cognitive - Helping children and adults to do better in schools and workplaces, and thus improving the potential for growth - Helping society decrease social costs related to protein deficiency in medical care and productivity loss, thus increasing investments for human development with saved money - Improving public awareness and knowledge on health and nutrition through comprehensive health and nutrition education initiatives, thus helping them to gain health and nutrition literacy in the long term - Building a new sustainable business paragon that eradicates or alleviates malnutrition with profits, thus facilitating more business initiatives and participations in the nutrition sector VII. Implementation, Controls, and Evaluation As explained through our mission statement, Soy Laabh s main goal is to make a positive impact on society at environmental, societal, and economic levels, by harvesting the power of soy. We have therefore defined performance goals, metrics, time lines, and evaluation methods along this triple bottom line and sustainability approach to business. To commit to these goals on a short-, medium-, and long-term perspective, we have identified objectives, targets, and specific indicators, along with specific action plans and evaluation methods. It also needs to be noted that to be in line with the most recent development in the sustainability field, we will be applying metrics suggested from Mr. William Blackburn s guide: The Sustainability Handbook xxviii. Subsistence Marketplaces Initiative Page 47

48 Environmental Goals Through both Soy Laabh, our company, and SoyChoyce, our initial product concept, we have set a longterm objective: limit and if possible eliminate any negative impact of the environment at each of our value chain steps. Table 7 below shows the framework of our company-wide balanced scorecard along each of the sustainability dimensions previously identified. Subsistence Marketplaces Initiative Page 48

49 Sustainability Goals Environmental Societal / Governance Economic Stakeholders Company Soy Laabh Suppliers Customers Limit the environmental impact from our product concepts from sourcing, to transportation, to waste management Support the life improvement of people living in subsistence, from an increase in awareness of healthy practices to the application of basic human rights with our employees Application of rules and procedures in line with basic human rights, with a special focus on: - the soy industry for the soy powder production such as from the Task Force on Sustainable Soy xxix - the plastic production industry for the soy container such as from the Plastic Industry Trade Association (SPI) xxx Create products with low or nonexistent negative impact on consumers environment (especially through production of consumption byproducts) Create products with high potential to support the social upward progression of customers - Support the economic development of the communities we will evolve in from the creation of jobs (through the company offices and female entrepreneurs) to local sourcing - Work toward the sustainable growth of our company profits Ensure that the prices agreed upon with the suppliers would be high enough for them to live while being low enough for the company to make enough margins Create affordable products with a potential to develop savings for customers Investors Ensure that our business practices are in line with investors environmental policies Table 7: Soy Laabh Balanced Scorecard Framework - Create satisfactory social returns from investors standards - Ensure that our business practices are in line with investors social and governance policies Create satisfactory financial returns for our investors Subsistence Marketplaces Initiative Page 49

50 Table 8 below goes into detail with the application of the company-wide scorecard to our current product: SoyChoyce. Performance Goal Metrics and Time Line Evaluation Method SoyChoyce container and bags created from recyclable materials SoyChoyce powder created from environmentally-sound production process Limit and/or continuously decrease the company carbon footprint 100 percent of all container and bag materials made from recyclable materials by the first year of production 100 percent of the soy powder produced sourced from suppliers applying the principles for sustainable soy production within 5 years Continuous decrease in the carbon footprint from the transportation of raw materials to the company headquarters - Evaluation of materials used by suppliers on a quarterly basis by a company representative - Third party monitoring of the progress towards the application of the sustainable soy production principles - Internal monitoring of the progression of the greenhouse gas emissions on a yearly basis (through internal software tracking system such as Climate Earth xxxi ) Table 8: SoyChoyce Environmental Goals On a company level, we have identified the following metrics to fulfill the environmental goals mentioned (as shown in Table 9): Performance Goal Metrics and Time Line Evaluation Method Waste Management and Resource Conservation - Continuous decrease in the metric tons of materials recycled, reused, andrecovered on a yearly basis (as percent of total waste) - Continuous decrease in the metric tons of waste disposed on a yearly basis (as percent of total waste) Internal monitoring of the progression of the metrics on a yearly basis (through internal software tracking system)

51 Environmental Sourcing - Continuous decreases in greenhouse gas emissions from company transportation on a yearly basis Internal monitoring of the progression of the metrics on a yearly basis (through internal software tracking system) Energy Usage Greenhouse Gas Emissions - Liters of gasoline or fuel oil burned through transportation on a yearly basis - Number of joules of electricity consumed through company quarters on a yearly basis - Metric tons of greenhouse gas emitted by the company (in CO 2 equivalents) on a yearly basis Internal monitoring of the progression of the metrics on a yearly basis (through internal software tracking system) Internal monitoring of the progression of the metrics on a yearly basis (through internal software tracking system) Water - Cubic meters of water used by the company on a yearly basis Internal monitoring of the progression of the metrics on a yearly basis Table 9: Company-wide Environmental Goals 51

52 Societal and Governance Goals Table 10 below goes in detail with the application of the company-wide scorecard to our current product: SoyChoyce on a social/governance level. Performance Goal Metrics and Time Line Evaluation Method Entrepreneur success and satisfaction Customer satisfaction Entrepreneurs are receiving enough support from central office and have an acceptable level of income. Customers are satisfied with SoyChoyce and are significantly increasing their protein intake using our SoyChoyce. Conduct an entrepreneur evaluation survey asking sales income and satisfaction level once a year Conduct a customer satisfaction survey once a year Table 10: SoyChoyce Societal and Governance Goals On a company level, we have identified the following metrics to fulfill the societal and governance goals mentioned in our firm-wide balanced scorecard framework (as shown on Table 11): Performance Goal Education on the benefits of soy Metrics and Time Line - percent of consumers aware of the key benefits of soy on a yearly basis - percent of community members (including consumers and non-consumers of SoyChoyce) aware of the benefits of soy on a yearly basis Evaluation Method - Internal monitoring through yearly community and consumer survey (performed by company representative) - Number of educational events performed on a yearly basis Application of human rights along the value chain - Application of the principles from the Roundtable on Sustainable Soy Production within the first five years of operation - Application of basic human rights for company employees from first year of operations using the International Labor Standards as a guide - Internal monitoring of the number of principles from the Roundtable on Sustainable Soy Production on a yearly basis until full compliance; third party monitoring on a yearly basis after full compliance

53 Contribution to economic growth in the company communities - Amount of taxes and other financial contributions given out to local and national governments (on a yearly basis) - Amount of financial or in-kind donations made to the local communities (on a yearly basis) - Third party monitoring of the application of the International Labor Standards on a yearly basis - Internal monitoring from company representative; third-party audit within five years of operations - Number of suppliers from subsistence communities (as a percent of total suppliers) - Number of local interns, employees, and ambassadors on payroll on a yearly basis Employee Satisfaction - Percent of employees, ambassadors, and other company representatives satisfied with their involvement in the company on a yearly basis Table 11: Company-wide Societal/Governance Goals - Internal monitoring through internal yearly employee survey Economic Goals Table 12 below goes in detail with the application of the company-wide scorecard to our current product SoyChoyce on the economic dimension. Performance Goal Metrics and Time Line Evaluation Method Follow through on our financial responsibility to investors Maintain pristine quality in our product Gain market share Reach a positive return on investment within the first three years of operations Maintain zero health-related claims at all times Reach 10 percent of our target market (households < Rs. 5000) within the first three years Accurate financial reporting every quarter (evaluated through external audits) Strict QC guidelines for our suppliers, biannual manufacturer inspections Calculated based on sales and census reports, independent demographics reports 53

54 Gain brand recognition 10 percent unassisted recall by our target market within the first year Random sample surveys of our target population every two months Table 12: SoyChoyce Economic Goals 54

55 VIII. Conclusion A significant number of people in India are suffering from malnutrition. It is a very urgent call in that the negative impacts of malnutrition on India are far-reaching. Given its impact on health, education, and productivity, persistent malnutrition is a major obstacle to human development and economic growth in the country, especially among the poor and the vulnerable. In addition, protein deficiency, compared to other types of malnutrition problems, has been the most neglected area by organizations and governments, because it is less cost efficient; the cost of protein production is much higher than that of vitamins and other micronutrients. With the diffusion and innovation of technologies (quality product with affordable price), utilization of social networks (making dialogue and trust, and building communication and distribution channels), and introduction of a culturally compatible product (overcoming cultural barriers), we aim to deal with the most neglected problem in more holistic ways. In the long term, these efforts can give a great opportunity for both business and society to achieve healthy growth and improvement. Imagine how much more economic and social progress India could make if malnutrition is eradicated or remarkably reduced. We look forward to witnessing a healthier India with SoyChoyce. 55

56 IX. Exhibits Exhibit 1- FAO Requirements for Energy and Protein Source: FAO, Energy and protein requirements. 2009, 4/4/2009. < Weight (kg) Table 42. Daily average energy requirement and safe level of protein intake for men aged years BMR/kg a Daily energy requirement b according to BMR factor indicated: Safe level 1.4 BMR 1.6 BMR 1.8 BMR 2.0 BMR 2.2 BMR of protein (kcal th) (kj) intake c (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (g/day) a Values of BMR/kg are presented for ease of calculation by those who wish to use different BMR factors. b Calculated for each weight from the equations in Table 5 (rounded values). c At 0.75 g per kg of protein with the quality and digestibility of milk or egg. Weight (kg) Table 43. Daily average energy requirement and safe level of protein intake for men aged years BMR/kg a Daily energy requirement b according to BMR factor indicated: Safe level (kcal th) (kj) 1.4 BMR 1.6 BMR 1.8 BMR 2.0 BMR 2.2 BMR of protein intake c (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (g/day) a Values of BMR/kg are presented for ease of calculation by those who wish to use different BMR factors. b Calculated for each weight from the equations in Table 5 (rounded values). c At 0.75 g per kg of protein with the quality and digestibility of milk or egg. Weight (kg) Table 44. Daily average energy requirement and safe level of protein intake for men over the age of 60 years BMR/kg a Daily energy requirement b according to BMR factor indicated: Safe level (kcal th) (kj) 1.4 BMR 1.6 BMR 1.8 BMR 2.0 BMR 2.2 BMR of protein intake c (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (g/day)

57 a Values of BMR/kg are presented for ease of calculation by those who wish to use different BMR factors. b Calculated for each weight from the equations in Table 5 (rounded values). c At 0.75 g per kg of protein with the quality and digestibility of milk or egg. Weight (kg) Table 45. Daily average energy requirement and safe level of protein intake for women aged years BMR/kg a Daily energy requirement b according to BMR factor indicated: Safe level (kcal th) (kj) 1.4 BMR 1.6 BMR 1.8 BMR 2.0 BMR 2.2 BMR of protein intake c (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (g/day) a Values of BMR/kg are presented for ease of calculation by those who wish to use different BMR factors. b Calculated for each weight from the equations in Table 5 (rounded values). c At 0.75 g per kg of protein with the quality and digestibility of milk or egg. Table 46. Daily average energy requirement and safe level of protein intake for women aged years Weight BMR/kg a Daily energy requirement b according to BMR factor indicated: Safe level (kg) (kcal th) (kj) 1.4 BMR 1.6 BMR 1.8 BMR 2.0 BMR 2.2 BMR of protein intake c (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (g/day)

58 a Values of BMR/kg are presented for ease of calculation by those who wish to use different BMR factors. b Calculated for each weight from the equations in Table 5 (rounded values). c At 0.75 g per kg of protein with the quality and digestibility of milk or egg. Table 47. Daily average energy requirement and safe level of protein intake for women over the age of 60 years Weight (kg) BMR/kg a Daily energy requirement b according to BMR factor indicated: Safe level (kcal th) (kj) 1.4 BMR 1.6 BMR 1.8 BMR 2.0 BMR 2.2 BMR of protein intake c (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (kcal th) (kj) (g/day) a Values of BMR/kg are presented for ease of calculation by those who wish to use different BMR factors. b Calculated for each weight from the equations in Table 5 (rounded values). c At 0.75 g per kg of protein with the quality and digestibility of milk or egg. Table 48. Daily average energy requirement and safe level of protein intake for adolescents aged years Age Median weight Median height BMR/kg a Daily energy requirement b Safe level of protein (years) (kg) (cm) intake c (kcal th) (kj) (BMR factor) (kcal th) (kj) (g/kg) (g/day) Boys Girls a, b, c See notes to Tables Table 49. Daily average energy requirements and safe level of protein intake for infants and children aged 3 months to 10 years (sexes combined up to 5 years) Age Median weight a Energy requirement Safe level of protein c intake (kg) (kcal th/kg) b (kj/kg) b (kcal th/day) (kj/day) Months: (g/kg) d (g/day) e 58

59 Years: Boys Girls Boys Girls a From NCHS, average of boys and girls at mid-point of age range. b From Table 21 up to 1 year; from Table 23 for 1 10 years. c In terms of protein with the digestibility and quality of milk or egg. d From Table 33, rounded to nearest 0.05 g. e Rounded to nearest 0.5 g. 59

60 Exhibit 2- Concept Testing Questionnaire Responses Dear Respondent, Thank you very much for agreeing to respond to our survey. Your input is greatly appreciated. As you know, we are students from a class supervised by Professor Madhu Viswanathan and Professor John Clarke from the University of Illinois. Our intent is to address the protein deficiency issues in Tamil Nadu, India. We would like to help you understand the importance of nutrition and the benefits of using soy in your diet. We would like to introduce a low cost soy powder product that can be easily mixed into a variety of your common food items, such as dahl, sambar, milk, and curry. Please respond to the following questions. Thank you! Respondent Name: Mrs.Tamilselvi, 29 years old and studied up to 10 th standard A. Food and Nutrition 1. What type of products or food items do you purchase to keep your family members: a. Energetic (to stay active all day): Fruits, fish, eggs b. Healthy (to prevent illnesses): Vegetables such as carrots, drumsticks, and green leaves c. Smart: Milk, eggs, talcum powder, facial creams, fruits such as apples, oranges, and grapes d. Strong (to be able to lift water or work in the fields easily): Horlics and Boost 2. Would you be willing to add a couple of spoons of powder to your main meals if you knew it would make you more energetic, healthier, smarter, or stronger? 3. Yes Maybe No 60

61 4. Nutritional supplements are commercial products you can purchase and consume to enhance the sources of energy, health, smartness, and strength in your regular diet. How often do you buy nutritional supplements for your family? Please check the appropriate option: Less than once a year 1 2 times a year 3 6 times a year 7 11 times a year Once a month More than once a month 5. If you have bought nutritional supplements for your family within the past year, please specify which family member(s) actually consumed the product. (Please check all that apply.) Father Mother Children Grandparents Other (please specify) 6. If you have bought nutritional supplements for your family within the past year, which type of product did you choose? (Please note all that apply.) Powder (such as Complan, Protinex, Cerelac) Cerelac, Junior Horlics, Promix Tablets (such as B-Complex) - No Liquids (such as Raagi Malt) Tonics, Zincovit Other (please specify) 7. If you have bought nutritional supplements for your family within the past year, which brand(s) did you choose? (Please list all that apply). - Cerelac, Horlics, Promix, Zincovit 8. If you answered the previous question (question 7), please explain why you chose the specific brand(s) you bought. Please check all that apply: Price Brand Name Taste Referral/Recommendation Ease of use Safety Other (please specify) Children like it. More quantity within the affordable price so we can use it for more times 9. Soya is a protein and oil-rich bean that is farmed in India. It can be made into products such as soya milk, Meal Maker, and soya powder. Are you aware of any soya bean products? Please check the appropriate choice: 61

62 I was not aware of soya bean products until now. I was aware of soya bean products, but I had never seen them. I was aware of soya bean products and I have seen them, but never tried them I was aware of soya bean products and I have tried them, but not purchased them. I was aware of soya bean products and I have purchased them I used to buy an item made from soy that is available in the market called Meal Maker whenever we wish to prepare vegetable briyani/vegetable rice. Prepared Meal Maker would look and taste like pseudo meat. 10. Regardless of whether or not you have purchased these products, what is your impression of soya bean products? Please check the appropriate choice: I have no impression/i do not know about soya bean products I dislike soya bean products I slightly dislike soya bean products I am ambivalent about soya bean products I slightly like soya bean products I like soya bean products 11. Please briefly explain your answer in the previous question (question 10): The Meal Maker would look and taste like meat. So, we can eat more quantity of vegetable rice/briyani that is added with Meal Maker. As our family members like it, we used to buy it whenever we wish to make vegetable briyani. 62

63 B. SoyChoyce Product Description SoyChoyce is a new type of cheap nutritional supplement that any of your family members would be able to use to improve energy, health, strength, and smartness. SoyChoyce is a soy powder with no flavor that can be added to any type of your favorite food items (such as milk, rice, chikki, dahl, sambar, curry etc.). The soy powder would be sold in plastic bags containing enough product for two weeks for a family of four with two parents and two children. You would be able to buy SoyChoyce through one of your neighbors. This entrepreneur might come from one of your local Self Help Groups. At your first soy powder purchase, you would receive a reusable container to hold the soy product. Whenever necessary, you would be able to buy additional soy powder from the local entrepreneur. Some recipe booklets and sample foods would also be given out for free during educational sessions with the local entrepreneur whenever you purchase the powder. As shown in the diagram below, the container would be used as a big salt/pepper shaker. One shake would give enough soy powder for one family member for a day. 63

64 64

65 C. Purchase Intent Which price would you expect for one two-week supply of SoyChoyce? Please check the appropriate range. Rs Rs Rs Rs Rs Less than Rs. 13. If SoyChoyce was sold at your expected price (mentioned in the previous question), would you like to try this product? Please note the appropriate option. Definitely Not Probably Not Maybe/Maybe Not It would depend on the taste, if all our family members liked to eat it, we were Probably Definitely convinced that it is good for health, etc. 14. If you would buy this product, how often would you purchase it? Please check the appropriate range. Less than once a month 1-2 times a month 3-4 times a month More than 4 times a month 15. How much would you expect to pay for the SoyChoyce reusable container? Please circle the appropriate range. Rs Rs Rs Rs Less than 50 rupee I would prefer to get it at free of cost. I would feel it safe if it is sold in container (preventing adulteration, spoiling, safety, etc.). 16. If the SoyChoyce reusable container was sold at your expected price, how likely would you buy this product? Please circle the appropriate option. Definitely Not Probably Not Maybe/Maybe Not Probably Definitely Prefer to get it free D. Other Comments

66 17. Have you ever attended any health or nutrition-related educational sessions? Please check the appropriate option. I have never attended one I attended one within the last six months I attended one within the last three months I attended one within the last month 18. If you did attend one of these sessions, what was the key reason? Please circle all that apply. To get information To get free samples or any other compensations for participation To meet new people Other (please specify) NA 19. If you didn t attend any educational sessions, what was your reason? Too busy to attend Too far to attend I don t like these types of events There was not enough compensation Other (please specify) I don t know about these sessions 20. Where do you get information about new nutritional supplement products? Please check all that apply. TV Newspaper Radio Neighbors Retailers Doctors Others (please specify) 21. Would you be willing to recommend our product to your friends, neighbors, or others? Please check all that apply. Definitely Not Probably Not Maybe/Maybe Not : - First I must have opportunity to test it. If it is good, I would recommend it; otherwise, no. Probably Definitely 22. Can you make any suggestions for improving our product? I would prefer to buy it subject to the following: 1. It should be with taste 2. Good for health and strong 3. ssued with free container 66

67 4. Affordable price 5. Easy to use 6. With media/tv ad to attract the children and others to recommend or prefer it 7. Free or samples to attract the children 67

68 E. About You 23. How many children do you have? Please check the appropriate range: Please check the age range(s) in which your child or children belong to: 0-1 Year old 2-5 years old 6-10 years old years old 16+ years old 25. How much income can your household generate on a monthly basis? Please check the appropriate option: Rs Rs Rs Rs Rs Rs What is the highest level of education in your family? Please specify below. 10 th standard 27. Do you have women self-help groups in your village? Please check one. Yes No 28. Does a member of your household belong to a women self-help group? Please check one. Yes No 29. How much influence do women self-help groups have in your purchasing habits? Please check the appropriate option: High Medium Low 30. What other groups or types of information influence your purchasing decisions? Please list below: Local friends/peer groups, neighbors, relatives Thank you for your time. Your input is very helpful to us. Goodbye! 68

69 Brief Cases X. Other Appendices A. Appendix for Beer Bottling Source: Bucklow, Ian; and Paul Butler. Materials World Vol 8, No.8, pp 14-17, August The Institute of Materials. April < Advantages The development of a clear, plastic, cost-effective consumer package for oxygen-sensitive beverages has long been a technical and manufacturing goal of the packaging industry. PET bottles are typically oneseventh the weight of an equivalent glass container, do not break or smash, and are already well established for carbonated soft drinks, particularly in the larger two and three liter sizes. PET has also, over recent years, taken a significant market share from glass and metal containers in the single serving size. Disadvantages The principal obstacle to the introduction of a PET container for beer is that PET is a bit of a gas sieve when it comes to the permeation of oxygen and carbon dioxide. The shelf life of a beer depends on how long it keeps its flavor, which is limited by exposure to oxygen, particularly for light beers with subtle flavor characteristics. These delicate flavors are also adversely affected as levels of carbonation decrease. The focus of recent materials developments has therefore been to improve the barrier properties of PET to these two gases, to achieve the longer shelf life needed to meet both consumer and retail requirements. Technical Considerations As with all packaging, the PET container has to deliver its contents to the consumer in a user-friendly way, while maintaining the freshness and distinguishing characteristics of the product. Ultimately the performance of a filled container is judged on the basis of what the product tastes like after a certain period of time, and the point at which this becomes unacceptable is generally taken as the shelf life of the product. Commercially viable shelf lives are not difficult to achieve for PET containers carrying products that are not particularly oxygen-sensitive. Such products include water and carbonated soft drinks, and even some beers and ciders, whose shelf lives are typically three to four months. After that time carbonation loss together with increasing taste (organoleptic) degradation due to oxygen staling results in a tired a degraded product. Plastic Beer Bottles The approaches to PET barrier improvement fall in two main categories, either the blown PET bottle coated (inside or out) with a barrier material (figure 1), or a multilayer plastic bottle is blown containing barrier or oxygen-scavenging layers. Subsistence Marketplaces Initiative Brief Cases Page 69

70 Brief Cases Figure 1. Spray coating of external PET bottles. Plastic Beer Bottles with Barrier Coatings Coating technologies can be broadly divided into two categories, those that use vacuum or plasma routes to deposit very thin films of materials, such as carbon or silica, and those that rely on the atomized spraying of liquid organic materials onto the external surfaces of the bottle. Ideally all coating materials must not interfere with the economics of recycling, nor detract from the bottle's appearance, but a significant further consideration with thin film internal deposits is the need for the materials to be approved for food contact. External Organic Coatings External organic coatings have been around since the early 1980s, when PVdC was used to improve the shelf life of large two liter PET bottles, but only marginal improvements were made. In the mid 1990s, barrier-coating solutions based on two component epoxyamine chemistry (Bairocade) were developed by PPG, first to lengthen the shelf life of the smaller soft drink sizes in hotter climates, and then for beer. The transparent, glossy, external spray coating provides an excellent barrier to migration of C0 2 and O 2, and is unaffected by humidity. The low temperature thermoset cure is compatible with PET bottles and provides a tough film, robust to filling and handling conditions. Coatings are designed to be applied to conventional bottles at thicknesses between 6µm and 10µm, and allow the use of standard resins and preforms with existing injection and blow molding equipment. The performance improvement that barrier coatings offer for PET beer containers is significant around 19 times better than uncoated PET and translates into a retail shelf life of at least nine months. Inorganic Coatings The alternative inorganic coatings can be applied either to the inside or outside of the bottle after blowing. The latest developments are in plasma-applied coatings, using carbon or silicon, where methods have now been developed to allow the coherent coating of three-dimensional shapes, such as bottles. The Sidel Actis and Kirin DLC coating technologies produce a thin layer of amorphous carbon, typically 100 to 200nm thick, on the inside surface of the bottle. This is deposited from a high-energy plasma of acetylene gas within a high vacuum environment. The coating provides an excellent barrier to both O 2 and CO 2, Subsistence Marketplaces Initiative Brief Cases Page 70

71 Brief Cases and, because it is on the inside of the bottle, prevents the O 2 dissolved in the PET matrix from migrating into the beer during the first few weeks of storage. Because the deposited layers are fundamentally brittle, they have to be extremely thin in order not to flake off under container stresses, caused by bottle expansion and creep when the bottle is filled, and under pressure from the contents. Other factors include damage and scuffing due to bottle handling, but these clearly do not affect the integrity of the coating if it is on the inside. The down side of these carbon-based coatings is their yellow-brown appearance. While this is not an issue for the typical amber-colored beer bottle, it can detract from the appearance of clear PET bottles. The barrier performance improvements of carbon coatings are similar to those achieved by organic coatings, again giving a potential retail shelf life of nine months. Silica technologies such as Glaskin and BestPet rely on the application of a SiO X vacuum plasma coating, to give a barrier layer between 40 and 60nm thick. While the Glaskin process applies the glass clear coating to the inside of the bottle, the BestPet technique applies it to the outside. SiO X provides a better barrier than amorphous carbon, at least in principal, but is more brittle and must be applied in thinner layers than the carbon coatings, making the achievement of coherent crack-free layers difficult in a carbonated bottle. The three to four months shelf life offered by SiO X coatings is acceptable for carbonated soft drinks and certain alcoholic beverages, but does not meet the criteria of most European brewers. Plastic Beer Bottles with Multilayer Structures The alternative approach to using coatings to improve the gas permeation properties of PET is to use multilayer technologies. These rely on the production of a co-extruded or co-injected preform made from a multilayer structure of PET and other polymers (see figures 2a and 2b). Final shape blowing produces a bottle with up to seven different polymer layers, which either act as a physical barrier to gas permeation, or are chemically active in scavenging oxygen from the PET and intercepting oxygen diffusing in from outside. Figure 2. Schematic of a (a) 3-layer structure, (b) 5-layer structure and (c) a multilayer structure with reactive layer. In 1997 a multilayer PET bottle aimed at replacing the plastic cup at music and sports events was the first Subsistence Marketplaces Initiative Brief Cases Page 71

72 Brief Cases entry into the single serving beer market. The enhanced shelf life was achieved by blowing a co-extruded preform into a three-layer bottle wall, with outer skins of PET and an encapsulated inner barrier (between 5 percent and 10 percent of the bottle weight) of the high barrier polymers ethylene vinyl alcohol (EVOH) or nylon MXD6. Later developments allowed the incorporation of postconsumer recyclate (PCR) material in the inner layer of a five-layer structure, an important positive dimension to the issue of recyclability of plastic containers. Up to 25 percent recycled PET resin can be incorporated in this layer. This type of package gives around a six times improvement in barrier properties over a monolayer PET bottle, enabling oxygen-sensitive light beers to reach a shelf life of around four months before noticeable degradation. The Sealica process offers an alternative approach using Blox, an epoxy-based barrier material injected as an overlay on the preform, at thicknesses up to 40 percent of the preform. Smart Packaging While the above technologies are effective to a greater or lesser degree, probably the most effective way to deal with the problem of permeability is to create smarter packaging that can respond chemically to gas permeation. Oxygen scavenging materials can be incorporated into polymer layers to react with the gas before it reaches the beer (see figure 2c). These active barrier bottles are generally of a three-layer composition, with the outer PET layers surrounding a functional barrier layer. The foremost such active barrier technology is Oxbar, which employs a scavenger of MXD6 nylon with patented metal catalysed oxygen reduction chemistry. This system reacts very quickly with oxygen in the bottle system and has a high oxygen capacity, ensuring a long active life. Similar active barrier technologies use the X-312 scavenger in MXD6 nylon, or the all polyester Amosorb 3000 as the active constituent in either a five or three-layer multilayer bottle construction. With these types of active oxygen scavenging packages for beer, shelf life performance is determined solely by the rate of carbonation loss. C0 2 loss is reduced by the presence of the MXD6 as a physical barrier, but it still limits the bottle's performance. With MXD6 as the functional barrier, a beer shelf life of around four months is achieved, although the oxygen capacity of the barrier layer may be as much as 24 months for a single-serving bottle. A trained taste tester can identify changes in the characteristics of atypical light beer once the oxygen level in the product reaches around 1ppm. Over a period of six months (a typical shelf life), a conventional PET container allows the beer to exceed this value by a factor of 30. Only the amorphous carbon, organic coating, and Oxbar technologies achieve the 1ppm specification (see figure 3a). The specification for carbonation loss is typically defined as the shelf life at which the product has lost 10 percent CO 2. Here coatings generally outperform multilayer structures (see figure 3b), and give a barrier performance that translates as a shelf life in the order of nine months, an important target for European brewers. Subsistence Marketplaces Initiative Brief Cases Page 72

73 Brief Cases Figure 3. (a) Relative oxygen ingress for different barrier technologies and (b) relative carbonation performance for different barrier technologies. Summary Overall then, it is clear that these developments have resulted in a number of technical solutions to a viable PET beer bottle that meets the needs of brewers and consumers alike, but that no single technology will ideally satisfy the entire spectrum of applications. Different products and markets require different solutions, with products being market rather than technology driven. Barrier coating technologies provide the longest carbonation shelf life and good oxygen barrier characteristics, whereas the active multilayer bottle offers manufacturing flexibility and outstanding oxygen barrier performance, but a shorter carbonation shelf life. In the end, the essential indicator for product shelf-life performance is taste, and a significant part of this work involves taste performance assessment, using a trained taste panel to compare the product against a control. Needless to say, membership of these panels is generally greatly oversubscribed. Public opinion on using plastic for beer bottles has been investigated, and consumer studies show that acceptance is, not surprisingly, highest in the 18 to 25 age group, and lowest in the 50+ age group. The generation that has grown up with soft drinks packed in PET doesn't think twice about beer in a plastic bottle, and so it is likely that it will not be long before beer packed in PET will become commonplace in Subsistence Marketplaces Initiative Brief Cases Page 73