April 28, Cesar Argueta Jr. Kyle Gati Rahul Keswani Jack Rosenberg
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1 April 28, 2008 Cesar Argueta Jr. Kyle Gati Rahul Keswani Jack Rosenberg
2 Agenda Background Product development Packaging design Marketing plan Financial plan Conclusion
3 Background
4 India One of the largest emerging markets Considered to be the largest democracy Largest reservoir of skilled/semi-skilled manpower High growth rate consistent GDP growth Population of approximately 1.12 billion Close to million people in Bottom of the Pyramid (BOP) 78% live in rural areas
5 Malnutrition in India
6 Critical Deficiencies
7 Objectives Understand the conditions and habits of BOP consumers Asses the nutritional needs of BOP consumers Develop a compound (solid, liquid or powder) that address one or many of the nutritional problems Design a delivery method that can be incorporated into daily food consumption practices Communicate to shoppers the benefit of the product
8 Mission To develop a nutritional product that seeks to alleviate the mal-nourishment of people living in subsistence marketplaces at an affordable price
9 Product Development
10 Decision Process Understanding the market Brainstorming Correlating Needs with Products Existing Product Ideas Market Feedback
11 ActivEdge Additive Nutrition Label for ActivEdge
12 ActivEdge Mix Add water 100g flour Chapatis + Add water 100g flour 10g ActivEdge Enriched Chapatis
13 Additive Blending Buy Ingredients Soy Flour Fiber Assorted Vitamins Assorted Minerals Dry Blending Final Additive Powder Packaging/Labeling
14 Packaging Design
15 Packaging Components Container cap Additive Container Mixer cap Mixing Container Mixing screen Container base Mixer base
16 Manufacturing Plan Injection molding container cap mixing screen Extrusion blow molding container base mixing cap mixing base Polypropylene tough flexible
17 Mixing Add 100g + 10g ActivEdge then shake Three shakes is all it takes!
18 Packaging Design
19 Labeling Machine applied labels Eye-catching graphics Create a perception of children strong, healthy, and smart Happy energetic children Competitive products: Nutritional benefit Special advantage Front Back
20 Marketing Plan
21 Who are we targeting? Mass market approach Families in BOP conditions (rural and urban) Mothers Consumers of wheat flour
22 What makes us different? Positioning Provides strength for the body and mind Delivers nutritional health and wellness Supplies an efficient mixing container Offers an affordable price for BOP consumers
23 Marketing Mix Product ActivEdge, Healthy mix for wheat flour Full bottle with shaker Replacement bottles Placement Retail Direct
24 Marketing Mix Price Approximately 12 INR (30 USD) Promotion WOM Sampling Self Help Groups NGO s
25 Financial Plan
26 Financial Overview Five-year project, with 6-mo set-up Initial investment of $1,000 Used discounted cash flow approach Estimated WACC of 10% Hugely valuable process for our team
27 Basic Assumptions Most cost data taken from supplier quotes Other estimates made conservatively Selling price: Market can bear INR 6.00 per 1 kg flour 100 g of ActivEdge per 1 kg flour 200 g units = INR per unit Roughly 30 per unit
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32 Formula Optimization Utilized Excel to determine optimal formula Set +/- tolerances for each ingredient Used Solver function to maximize NPV Increased NPV from $219 to $7,114 Can be utilized in the future Changing commodity prices Shifting economic cycles Account for changes in local diet/needs
33 Green Light! NPV $7,114 CAGR 24.28% IRR 38.77% NPV $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $ ($1,000) ($2,000)
34 Conclusion Offering strength for the body and mind at an affordable price A healthy India for the better future
35 Appendix Powder with rice Powder with flour Curry Powder Fruit tablet Plumpy Coco Powder for milk/water Pop Rock Nutritional Candy Nutritious Cater 2 Children Low cost Sustainable packaging Longer shelf life Locally sourced Perception of nutrition Create entrepreneurship Total Scale of 1 to 5 5 is the best 1 is the worst
36 Appendix Products consumed Principle Elements contained Rice Wheat (less) carbohydrates, insolube fiber, vitamin B Bananas Potassium, vitamin B, Coconut sambar rasam local vegetables lentils Greens milk spices pickles coffee yoghurt salt tamarind complex carbohydrates, iron, zinc and other elements LDL cholestrol, lauric acid, various nutrients depending on age of coconut and form used anti-oxidants anti-oxidants depends proteins except methionine, iron iron Vitamin B12, proteins antioxidants unsaturated fats, oils caffeine, anti-oxidants, trace elements iodine, calcium, vitamin B iodine calcium, carbohydrates, vitamin A, B1, B2, C
37 Appendix Nutrient Daily Requirement % in product Mass in packet per serving mg mg Vitamin A % 0.25 Vitamin C 90 33% 30 Zinc 11 27% 3 Iron 8 25% 2 Biotin % Calcium % 100 Selenium % 0 Potassium % 500 ALA % 252 DHA % 110 Thiamin % 0.12 Riboflavin % 0.13 Niacin 16 10% 1.6 Vit B % 0.13 Folic Acid % 0.04 Vit B E-03 33% 8.00E-04 Soy Flour Fiber Mix Total
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