By: Anna Petriccione, Jerardo Jasso, Elisa Ruscitti, and Kristen Burke
Outline 1. Introduction
2. Current Situation a. Problem b. Solution c. Mission Statement & Company
1. Market & Strategy Analysisa. Industry Analysis b. Existing Markets c. Health Trends d. Consumer Behavior e. Marketing Mix: 4 P’s f. Strategy g. SWOT Analysis
2. Financial Matters
3. Future Plans
Problem
Do you ever wonder if some consumers’ eyes glaze over when they see the “Nutrition Facts” Panel on the back or side of a food package?
Or do questions like, “How do I do the math…what does this mean?” pop into your head?
Have you ever thought that a single serving of certain foods or beverages—as specified on the food label—isn’t realistic?
Or do you just throw your hands up in frustration and eat the entire package anyway?
Consumers report that the label is confusing in its terminology or language, and have a hard time locating the nutrition information. Consumers state that it takes too much time to read the label or it is even an “annoyance”
Solution Imagine if all these problems could be solved by simply scanning a product's barcode. Then within
seconds you’d obtain all the listed ingredients of the desired product. You would know the exact
portion size and nutritional information of the product. Also you will actually know what you bought
at a foreign grocery store.
● Simplification○ By scanning a product’s barcode you can obtain all nutritional information and
ingredients in desired language ○ By launching an app that translates food labels-- and tailors the labels to specific
countries requirements-- it will be easier for food companies to internationalise and for expats to feel comfortable buying food at a foreign supermarket.
Our Mission In today’s global world we must be aware of cultural differences, preferences, religions, backgrounds, languages, and the wants or needs of consumers
Consumers around the world approach consumption differently, and these attitudes and behaviors require different strategies and approaches; there is no room for a “one-size-fits-all” mentality
Manufacturers and retailers need to provide solutions that are compatible with the preferences and requirements of each region: There is a tremendous opportunity for food manufacturers and retailers to lead a healthy movement by providing the products and services that consumers want and need
The Coast- to- Coast app is culture friendly and understands consumer differences based on the consumer's region, and we created the barcode scanner for that reason; to assist consumers with translation and health concerns, but to also assist companies to provide the correct and valued information the consumer desires in the correct formats and languages
CompanyEarly Stage:
● One of ten startups to be accepted to blueprints incubators and accelerator program. ● Achieve Seed B funding of 500,000 - 600,000 USD dollars● Free professional consulting, coding assistance, and mentorship● Free office space and equipment for two years
Growth Stage:● Receive series A funding from Venture Capital Firm Warburg Pincus● Begin preparation for expansion into the European Market
Reasoning for Hong Kong:● Top 10 touristic locations● Abundant graduate level developers, designers, script writer● Cheap office rental property● Established tech and startup market● Very relaxed on write-off expenses
Industry Analysis - Market Structure Perfect Competition Market Structure
What does this mean?
● HIgh number of mobile applications, mobile app developers and buyers in the market
● Low market prices
● Little to no barriers to entry and exit the market
Industry Analysis - Competition
Industry Analysis - Market Drivers
Industry Analysis - Market Trends
Industry Analysis - Market TrendsTrends That Will Impact the Future
App Market:
● Hybrid apps
● Creating apps that further enhance the usability of wearable devices
● Fewer platforms
● Mobile security
Existing Markets - Food AppsApps related to food are relevant and successful as they continue to grow, which shows Coast- to- Coast will develop well in this existing market, since food apps are continually growing
In fact, 84% of smartphone shoppers turn to their mobile phone to help them shop while in a store
One-third of shoppers use their smartphones to find information instead of asking store employees
Health is Going Mainstream Health and Nutrition influences Consumer Behavior:
● 49% of global respondents believe they are overweight● 50% are trying to lose weight● Consumers seek fresh, natural and minimally processed foods with ingredients that help fight
disease and promote good health ● More than half of all Europeans and 64% of Americans looking critically at Labels when
shopping● In Asia, 84% look at labels● 68% of all consumers globally said that they would buy different products or try new things, and
also buy healthier options if such options were easy to find based on the clarity of labels
SOLUTION: The Coast-to-Coast app will guide shoppers by showing all valuable information after scanning the barcode
Consumer Nutritional Values by Region & Language
Data: 59 % of consumers around the world have difficulty understanding nutritional labels
Travelers who want to have comfort abroad by knowing what they are consuming
Those who are cautious due to dietary restrictions or allergies
Those attempting to take charge of their health and watch their diet
Those who cannot understand the labels
Major food/ beverage brands that want to grow internationally Target Audience
The 4 P’s
Product
The “Coast- to -Coast” App
● Mobile friendly (Apple, Android, Samsung) ● Usability - Easy and quick/convenient ● Tested not to crash/ good quality ● Setting options
When the consumer first opens the app, they will see each language we offer for translation, and they will select the one that best applies to them. Then, they could use the app freely to scan, or they can create a username and password so that they can choose their primary language setting and items they scan can be saved in a personal folder. Each time they open the app, the app selects their current location language, but asks if they would like to switch to another language. After that, they can simply see the folder tab and barcode tab, which they would open to scan products It is a simple as that...
Price
● Consumers can purchase the app for 1 euro, 8.3 Hong Kong Dollars, or 1.05 dollars
● We will Charge companies or major brands 235 Hong Kong dollars, or 30 USD
Place: Hong Kong, China ● Population : 7.3 million people = more consumers ● Hong Kong is Asia's premier international city for all visitors● Tourism is a main source of income; In July 2011 more than 3.8 million visitors
arrived in Hong Kong ● Consumers not originally from Hong Kong or not natives of the area (331,000
people are foreign born, many of whom do not speak Chinese or Cantonese) ● Consumers are concerned with health, and nutritional information is not common ● Food label confusion is highest in the Chinese-speaking world ● Technologically advanced ● Great Market for Mobile Apps
4) Promotion/Positioning
How we will reach our target audience:
Coast - to - Coast means exactly what it says; we will provide services coast- to-coast and consumers will easily understand this message
Advertisements within grocery stores, convenience stores, and airports for consumers
Paid location marketing advertisements to pop up while people are shopping
Social Media advertisements (Twitter, Facebook, Instagram)
Reach out to online newspapers
Contact bloggers or health celebrities to promote
Allow companies to have an advertisement banner on the app which gives consumers a discount from time to time
The Strategy Begin in Hong Kong →
Asia/Pacific(1)
Expand to France & Germany →All of Europe (2)
Expand to the U.S →North America (3)
Latin America - Mexico (4)
South America - Buenos Aires, Rio (5)
Middle East →Africa -Dubai, Cape Town, Lagos
(6)
SWOT ANALYSIS
Key Financial Assumptions
In order to reach our projected budget we have made the following assumptions based on thorough research
1. The app will be sold for 1 Euro (€) ~ 8.3 Hong Kong Dollar (HK$)2. Our revenue will grow at the same rate as the industry average of 4.5%3. In our first year we will reach 1% of the population, or 72,000 people4. The app market maintains 82% of revenue from app sales5. We will offer food products on our app for 235 HK$ and will begin with 500 SKU6. In line with similar companies Selling and Administrative expenses will be 71% of
revenue7. The average cost to launch an app is 270,000 USD ~ 2,094,471 HK$8. We will be taxed in the US at a corporate rate of $7,500 + 25% of the amount over
$50,0009. The price of the app increases with inflation (3%) + two percent
Financials
Financial SummaryWhat does all of this mean??
● The break even point is between years three and four
● We will start earning exponentially more profit between year four and five (~1200% more)
● Turning a big profit in year five will enable us to explore expansion into other markets
Future Plans:
Work with Restaurants to add Menus to our app
Offering of more languages
Translation of Pharmaceuticals
Translation of nutritional facts
24/7 customer care service
Mutually beneficial agreements with 3rd parties who advertise via app
Further develop the app
Conclusion
Overall we believe this app is going to be a huge success and a necessity for a wide range of people; from world travelers, to those with dietary restriction, and those who are simply trying to live a healthy lifestyle. It will also help brand companies promote their product overseas and increase brand awareness.