What is the Calorie Plate - Research Paper Example

A BUSINESS PLAN FOR CALORIE CALCULATOR Table of Contents Executive Summary 3 Business Profile Description of the Industry 4 Description Of The Business Products Or Services 5 Description of the Location 6 The Legal Structure 6 SWOT Analysis of the Business 6 Description of the Business Objectives 7 Marketing Plan Features And Benefits Of The Products And Services 8 Customer Profiles Competitor Analysis 10 Competitive Advantage 10 Advertising And Promotional Activities 11 Pricing Method 13 Selling And Distribution Method 13 Operations Plan Operating Processes 15 Management Team 15 Staff 15 Financial Plan 16 I. Executive Summary Calorie Plate is an innovative answer to health and weight-conscious individuals who wish to undertake weight management solutions and be able to measure outright their efforts in terms of the number of calories they take in. Simply put, Calorie Plate is a calorie calculator which gives the user an accurate measure of his caloric intake, thereby giving him full control over his weight gain, in direct proportion to his food ingestion. This new product tells the user how much food he should eat, when he should stop eating and when to continue eating. Calorie Plate is a new product in the market. In fact, the concept has never been introduced before. It uses state-of-the art technology which digitally shows the number of calories the calorie plate contains. Calorie Plate has recently just been patented, with the concept coming from a group of students in Brisbane Australia. The emergence of this new product prompted the individuals involved in its invention to create a business unit that would market, sell and distribute the product in various locations within the country, and other major parts of the globe. The company behind Calorie Plate is named C-Med, Inc. Due to the nature of the product and the forecasted demand for its distribution in key sales channels for medical products, C-Med, Inc. will primarily take on a direct-selling approach to the product. This method shall be supported by both above-the-line and below-the-line advertising efforts, with specific emphasis on merchandising and web-based promotional and marketing activities. C-Med, Inc. will handle all aspects of the business – from manufacturing, operations, distribution and marketing. The management will carry these out through partnerships with third party suppliers and distributors to ensure that it reaches the right channels and the right market. As primarily a corporate type of business, all incorporators have invested an equal sum to make launch and operate the business. As support to the current investments, C-Med, Inc. will open shares to other individuals who believe in the marketability of the product. II. Business Profile A. Description Of The Industry Weight management is both of wellness and aesthetic concern. Due to competitive nature of the society we live in, people are now more conscious of their looks and their health. The first area of concern is ones health. As such, there are countless weight-management program and supplements in the market today. In Australia, there is a need to address the growing concern on the increasing number of people who may be considered obese. In the report “Australia’s Future ‘Fat Bomb’, Australia is now considered the country with the highest number of over weight persons in the world “overtaking the Americans in the obesity explosion” (ABC). The nation now has more than 9 million adults that are overweight. This is due to the decrease in exercise and increase in eating fast food (Australia’s Future Fat Bomb. 2009). Considering this factor, health-related campaigns now stresses utmost importance in managing ones diet. Government entities such as the Australian Institute for Health and Welfare are now committed to conducting information dissemination on this issue. Among the most popular fitness regimens are activities such as yoga, pilates among others. Fitness Gyms are also rising in number, and health equipments now cost relatively lower than how they were 10 years ago. Moreover, food supplements that contain fat burners such as L Carnetene are becoming popular in the market. The demand for these products is evident due to the emergence of innovations in this field. As such, C-Med, Inc. sees a promising opportunity for its product. B. Description Of The Business Products Or Services The Calorie Plate is a digital device being attached to plates that computes for the number of calories present in the amount of food loaded to it. It tells the user how much calories he is already loading into his body. The user must load the necessary information to the device prior to use – his body type, his current weight program and other pertinent details, to be able to allow the device to calculate the maximum tolerable amount of calories that he could take in one sitting. C-Med, Inc. aims to make Calorie Plate the leading weight management tool in the market, dominating not only Australia but most major cities in the whole world. It further takes on the challenge to continuously innovate the product for a more user-friendly and much more accurate tool in weight management. C. Description of the Location C-Med, Inc., Inc. will have two operational units: the manufacturing plant and its headquarters which will hold the sales and marketing teams. Both plant and headquarter shall be located along Grey St. at South Brisbane. Its proximity from the Central Business District only signifies the company’s thrust, which to primarily target wholesale and retail distribution. D. The Legal Structure C-Med, Inc., Inc. is a corporation owned by five investors, who also happen to be the brains behind Calorie Plate. On top of the incorporators, C-Med, Inc. will also open its doors to potential stock holders who could provide significant contribution to the start up finances of the company. E. SWOT Analysis of the Business Strength – Calorie Plate is the first and only of its kind in the market. The uniqueness of the product is definitely its strength as it does not compete heads on with any other brand. The structure of the product only shows that it has a captive group of target market. This means that it Calorie Plate has specific benefits for specific people. And this is what makes it attractive to the market. Weakness – Calorie Plate, being new to the market, may be viewed as an experimental product, and may not win the same market as the already existing weigh management programs. It may not initially posses the marketability of the existing products. Threats – Competition is the primary threat for Calorie Plate. Although it does not have any direct competitor, some weight management programs are already considered to be tried and tested, and have the credibility as far as effectiveness is concerned. Therefore, loyal followers of these products may become somewhat skeptic of this new product. Opportunity – As described, the increasing number of people who are conscious of their weight and health proves that there is still a growing market for other weight management-related products. People are now looking for all natural solutions to their weight management concerns. Calorie Plate emphasizes on prevention, thus would appeal to both those who wish to maintain and those who wish to manage their weight. There would plenty of opportunities for this product to succeed. F. Description of the Business Objectives Calorie Plate targets to be the product of choice among its target market, gaining approximately 1,000 users for the first 6 months of operations. It further aims to capture those who are currently enrolled in weight management programs in the various fitness gyms in the city, encouraging them to use Calorie Plate simultaneous with their work out regimens. It particularly targets to sell to 60% of the gym users. C-Med, Inc targets to sell the product in other key cities In Australia by the end of the first year by utilizing various sales channels such as distributors of medical supplies and facilities. Using these channels would ensure that the company would reach its target market. By the end of the first year, C-Med should already have attained a break-even in the investments and should start earning net profits by the 13th month. III. Marketing Plan A. Features And Benefits Of The Products And Services Calorie Plate is all about prevention of one’s weight gain. By carefully calculating the number of calories in the food loaded into it, it gives the user a fair idea of how much he should be taking in so that he could manage his weight. This is the basic benefit being offered by the product. He no longer needs to sweat it out in fitness gyms or working out using expensive equipments. Neither does he need to undergo cosmetic procedures to eliminate his excess weight. He only needs to monitor carefully and accurately the kind of food he eats and he gets the most natural and most precise results. C-Med, Inc. will market this product by retail and distributorship. It will make Calorie Plate available in most medical supply stores, even drug stores and supermarkets in Brisbane. It will also sell in fitness gyms and sports supplies stores as a perfect supplement for those already engaged in fitness activities. B. Customer Profiles Calorie Plate targets to win the interest and patronage primarily of those who are already into any weight-management program. These individuals have already researched and understood their goals, and have already identified their action plans towards the achievement of their goals. These people are interested in supplementary activities that would help them achieve their desired weight. Secondary target market is those who are just beginners in the weight-management program processes. These are people who wish to reduce their weight but do not have any idea how to start. Calorie Plate is self-explanatory and it functions basically as information tool as to the number of calories loaded into it. Because of this, the secondary target market would not need to delve into the subject any much further. Calorie Plate may be used by anyone who has a basic idea on the dietary requirements as far as caloric intake is concerned. Calorie Calculator targets primarily professionals who could afford to spend additional costs on equipments, and other tools designed for weight management. They are from the age range of 21 to 45 who are employed, currently enjoying a fast-paced lifestyle accompanied by a lot of concerns on health care. They are exposed to as much stress and eat from fast food chains, drinks and engages in other less healthy activities such as partying. They could afford gadgets and equipments that would make them lose weight and attain their health-related objectives. C. Competitor Analysis Calorie Calculator is a break through product and is truly unique in terms of product benefits. It does not have direct competitors in Australia and anywhere in the world. Though it does not have an specific niche market for its products, it does not compete heads on with any of the weight-management products or courses in the market today. D. Competitive Advantage When compared to other weight-management programs and products, Calorie Calculator is very easy to use, and is the most quantitative way of addressing weight problems. This is the product’s main advantage over the other products. It does not promise anything but a factual run down of the number of calories that one intends to take in. Whatever consequence is of course, dependent on the user. As such, Calorie Calculator can be considered accurate and produced the most precise results. Furthermore, the product costs about 50% of an average gym registration and enrollment fee. At this cost, it will surely entice the target market and with the benefits that the product promises, it will surely provide value-for-money. C-Med also plans to further innovate the product to evolve in other weight-management products. Calare Calculator does not stop where it is right now. In fact, the company plans to integrate the product in other programs to ensure that the benefits are maximized and also for them to be able to take advantage of the market potential as well. E. Advertising And Promotional Activities C-Med, Inc. plans to undertake the following marketing strategies to help launch and sustain the promotions of the product: 1. Above the Line Advertising A successful launch is always accompanied by a tri-media campaign to ensure that the target market is reached. However, due to the limited advertising and promotions budget, it chooses to advertise mainly via radio plugs in local radio stations in Brisbane. Repeat exposure via radio advertisements would spark interest among listeners. Among the three mainstream media, radio is considered to be the most cost efficient as it requires the advertiser a fixed advertising cost, yet it allows the product to be continuously stimulating the consciousness of its listeners. 2. Below the Line Advertising To maximize the costs allotted for advertising, Computers Express will utilize more below-the-line media to reach its target market, which are as follows: a. Merchandising Strategic merchandising is the key to promote the new business. Billboards and signage, announcements in key points within the city play a vital role in the company’s promotions plan. Computers Express will ensure that the store name and location is displayed in two major billboard sites in two main entry points to the city. It will also display mini billboards and signage in public places such as shopping centers, supermarkets, subways, train stations and bus stations. There will be leafleting activities in areas where applicable. Target areas are central business districts where offices and corporations are located, and also places with high foot traffic. C-Med, Inc. also aims to display posters in the universities, particularly in dormitories. b. Promotional Activities Computers Express will partner with student organizations to support various school events and activities with the interest to plug and advertise the products and services. The management will allot appropriate funds for sponsorships of student projects that would enable them to advertise Computers Express among the target market. c. Internet Marketing Internet Marketing has become popular because Internet access is becoming more widely available and used. Well over one-third of consumers who have Internet access at home report to using the Internet to make purchases (What is Internet marketing 2004). Moreover, statistics show that internet users increase at a rapid rate that in five years’ time, it is predicted that 80% of United Kingdom’s population will have a computer with Internet access at home (Advertising 2007). With this, Computers Express sees an opportunity thru Internet Marketing. Since target market is students and employees who are heavy internet users, Computers Express finds the potential of offering their products and services through a company website which lists down the product lines, and other pertinent details regarding their service. Computers Express will also tie up with other complementing brands such as book shops and magazine stands, and maximize co-branding and cross advertising in these companies’ websites. F. Pricing Method As a start up company, a competitive pricing is always vital for product to be able to penetrate the target market. Calorie Plate will be priced at about 50% lower than an average bi-annual gym enrollment/ registration fee. G. Selling And Distribution Method There will be a company store that would sell the Calorie Plate at a retail level, but chunk of the company sales would come from distributorship to be implemented by accredited distributors. C-Med targets suppliers and distributors of medical equipment to do this for the company. Getting these suppliers will ensure product positioning in hospitals and health-care centers. It will also open opportunities in major drugstores and pharmacies in the city. The company will also be distributed at a retail level, e.g. local stores and fitness gyms, and shall be marketed directly by selected freelance sales agents who could sell the product at their own pace and strategy. IV. Operations Plan A. Operating Processes The company will have two business units – manufacturing and operations. The Manufacturing Unit will be in charge of the production of the Calorie Plate. This includes creation and preparation, as well as quality control check. The Operations Department, on the other hand, is in charge of the sales and distribution, as well as inventory and customer service for the product. B. Management Team There will be one Chief Executive Officer who would act as the over all managing personnel for the company. C. Staff There will be several departments taking part in the operations of the company. The Product Development team is tasked to manage and develop the product even more to be able to create more products of this type. They are in charge of research and experiments to achieve these objectives. The team is composed of Medical Technology and Engineering graduates, whose expertise is aligned with the product. The Business Development Team is in charge of identifying the distribution points of the product. The company targets at least one Retail Store to sell the product. It also wishes to penetrate local drugstores and leading supermarkets as distribution points of the product. The Business Development Team will take care of identifying the market segments and the right places to sell the product. The Advertising, Promotions and Merchandising Team is in charge of conceptualizing advertisements and creating partnerships with other companies with products that complement Calorie Plate. It will take care of promotions in TV, Radio and Print, and will be in charge of creating below-the-line advertising materials such as information pamphlets and brochures, posters and billboards. The team would also forge partnerships with medical groups to gain their support and endorsement of the product. This way, word of mouth promotions would also be utilized. This team would also need to organize events that would highlight Calorie Plate and promote weight management as a whole. The Business Support Team will be consisting of the Administrative and Human Resource Department, the Purchasing Department, Training and Quality Control Department and Calorie Plate Production Team. The Administrative and Human Resource will provide all logistical needs of the company, including the administrative requirements in the head office, production office and operations –distribution channels. The Human Resource Section should ensure that only the best people are considered for the various positions. The Logistics Team is in charge of the acquisition of raw materials for the production of the product. It should establish international connections to ensure that the raw materials are sourced from the best distributors at the best price. Meanwhile, the Production Team’s job is to create quality products of the market. They provide the actual product for selling, and should employ only the best engineers and production crew to ensure maximum product quality. i. Financial Plan D. Detail your current financial status. Each incorporator will invest $ 200,000 each. The company will also sell stocks at $ 1 each. $ 200,000 will be used to start up and operate the two business units. This includes the construction of the manufacturing and operations units. The costs will also cover for Advertising and Promotions, as well as other operations including manpower and equipments for the company’s capital expenditures. The incorporators will not consider loaning from banks unless absolutely necessary. It will strive to work on the current resources available and will set its targets to accommodate the operational and capital expenditures being anticipated in the first year of operations. Return of Investment and profits are expected to arrive on the second month of operations. E. Budgeted Cash Flow a. Budgeted Profit And Loss b. Budgeted Balance Sheet REFERENCES Advertising 2007. Retrieved March 10, 2007 from http://www.weblinx.biz/advertising.htm Australian Bureau of Statistics. March 21, 2009. http://www.abs.gov.au/ausstats/abs@.nsf/Products/3235.0~2007~Main+Features~Main+Features?OpenDocument Australian’s Future Fat Bomb. March 22, 2009. http://www.bakeridi.edu.au/Assets/Files/fatBomb_report.pdf Healthcare Intelligence Network. March 21, 2009. http://www.pitchengine.com/healthcareintelligencenetwork/benchmarks-for-obesity--weight-management-programs/5308/ Weight Management Code of Practice. March 21, 2009. http://www.weightcouncil.org/ What is Internet Marketing 2004. Retrieved March 9, 2007 from http://www.what-is-net.info/what-is-internet-marketing.html?gclid=COCs9JiE5YoCFQQeTAod5w7UyA Read More