Prodieta Ltd. Probiotic Yogurt Drink ‘Put Your Cravings To Rest With Prodieta’ Kevin O’ Dowd - Finance Directo Karen Duffy – Quality Director Francis Higgins - Production Dir Chyrl Coen – Sales and Marketing Director
Aug 17, 2015
Prodieta Ltd.Probiotic Yogurt Drink
‘Put Your Cravings To Rest With Prodieta’
Kevin O’ Dowd - Finance Director Karen Duffy – Quality DirectorFrancis Higgins - Production DirectorChyrl Coen – Sales and Marketing Director
Contents of Presentation Product Description Why Develop the Product Marketing Strategy Prodieta Ltd. Strengths/Weakness Distribution/Pricing Strategy Finance Future Plans
Product Description
100ml Probiotic yogurt drink Cocktail of 8 bacterial strains 2 Lactobacillus brevis strains – produce tyrosine Tyrosine Dopamine in body Reduces food cravings and boosts mood Additional bacteria - intestines
converted to
Production Facility
Production of Product
Two special strains of Lactobacillus brevis Banana extract added L. brevis uses this to produce tyrosine Pasteurisation- product cannot be imitated by
competitors Six live bacterial cultures added
Yogurt culture L. brevis + Banana extract Production of tyrosine occurs
PasteurisationAdditional live bacterial culturesadded
Why develop the product?
New research Niche in market Rise in Obesity Novel product Ability to assist those struggling with weight loss/
obesity
The Market
Target Market 1% of men and women aged 20-65 Health conscious people Fitness enthusiasts Overweight People generally prone to unhealthy food cravings
Irish Yogurt Market trends
25%
13%
21%
5%
11%
10%
15%
natural health segment diet segment
childrens yogurt products yogurt drinks
desserts full taste
fruit yogurts• The natural health
segment 25% of the Irish yogurt market.
• In the diet segment, contain low fat, or fat free. This segment accounts for 13%
• Yogurt drinks, constitute 5% of the market.
• We will be marketing our product as a natural healthy product, a diet product and also a yogurt drink.
Marketing Strategy Media Campaigns
Print Media
Radio Advertisements
Social Media
Promotions
Radio Competitions
Free In-Store Samples
Company Strengths
Novel product based on new research Reduces cravings Helps reduce obesity Target multiple, large market Irish made products
Company Weaknesses
New product; hard to break into an established market
Better known products already exist Must gain trust of customers as product is new Increased cost of raw materials
Distribution & Pricing
Distribution Challenge for small food and drink producers
in developing a business Knowledge and expertise of a distributor Distributor choice – Pallas Foods
Experienced in dairy products Increase in sales
Pricing Strategy
Market penetration – lower prices It compares favourably with competitors
Pricing Strategy – Market Penetration PricingProduct Company Price Description
Prodieta Probiotic Yogurt Drink
Prodieta Ltd. €1.80 - 4 x 100ml€3.50 – 8 x 100ml
8 bacterial strainsReduces cravings
Actimel Original Probiotic Yogurt Drink
Danone €1.99 - 4 x 100g €3.89 -8 x 100g €4.99 - 12 x 100g
L. casei Boosts immune system
Yakult Fermented Milk Drink
Yakult €3.65 - 7 x 65ml
L. casei shirotaAids digestion
Pricing Survey Feedback
• 66% - Ideal• 28% - Too Expensive• 6% - Cheap
• 69% - Ideal• 24% - Too Expensive• 7% - Cheap
Finance
Product Funding
Capital: €80,000 loan, repaid over 5 years
Grants : €50,000 High Potential Start-up (HPSU) grant from Enterprise Ireland
Income: Revenue generation from sale of product
Purchases & Sales Projections
Costs (€) Revenue (€) Profit (€)
2015 690,381.69 715,750.00 25,368.31
2016 1,120,603.61 1,278,000.00 157,396.39
2017 1,389,493.51 1,917,000.00 527,506.49
Sources of Income
Year 1 Capital €80,000.00
HPSU Grant €50,000.00
Sales €585,750.00
€715,750.00
Year 2 Sales €1,278,000.00
€1,278,000.00
Year 3 Sales €1,917,000.00
€1,917,000.00
Break-Even Analysis
Projected No. of Customers
Projected Break-Even Point (Units)
Projected Sales (Units)
Difference (Units)
Year 1 3000 1,076,022 1,560,000 483,978
Year 2 5000 1,549,562 3,120,000 1,570,438
Year 3 8000 1,550,958 4,680,000 3,129,042
Total 16000 4,176,542 9,360,000 5,183,458
Financial Status Bank balance at 31st of December 2017 is €710,271.19
Loan Repayments outstanding €34,411.92
Interest on Loan Repayments €1820.85
€36,232.77
Other likely costs in 2018
Extra Equipment for expansion
Company Vehicle
Rent & Rates for a larger premises
Increase in salaries due to the creation of 3-5 extra positions
Future Plans
New flavours New products Bigger premises Distribute to UK and Europe Eventually export internationally
Thank You