Download - Prodieta Ltd Business Presentation
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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
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Contents of Presentation Product Description Why Develop the Product Marketing Strategy Prodieta Ltd. Strengths/Weakness Distribution/Pricing Strategy Finance Future Plans
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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
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Production Facility
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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
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Why develop the product?
New research Niche in market Rise in Obesity Novel product Ability to assist those struggling with weight loss/
obesity
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The Market
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Target Market 1% of men and women aged 20-65 Health conscious people Fitness enthusiasts Overweight People generally prone to unhealthy food cravings
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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.
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Marketing Strategy Media Campaigns
Print Media
Radio Advertisements
Social Media
Promotions
Radio Competitions
Free In-Store Samples
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Company Strengths
Novel product based on new research Reduces cravings Helps reduce obesity Target multiple, large market Irish made products
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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
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Distribution & Pricing
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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
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Pricing Strategy
Market penetration – lower prices It compares favourably with competitors
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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
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Pricing Survey Feedback
• 66% - Ideal• 28% - Too Expensive• 6% - Cheap
• 69% - Ideal• 24% - Too Expensive• 7% - Cheap
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Finance
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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
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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
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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
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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
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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
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Future Plans
New flavours New products Bigger premises Distribute to UK and Europe Eventually export internationally
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Thank You