Pet’ove Pet Store in China Business Plan Assignment I’ve come up with idea of my business plan idea I need it to be finished based on my idea and table of

Pet’ove Pet Store in China Business Plan Assignment I’ve come up with idea of my business plan idea

I need it to be finished based on my idea and table of contents

the financials are forecasting based on the current markets, just one page of financial report is enough

attach a report sample and my propsal NEW YORK UNIVERISTY
SCHOOL OF CONTINUING AND PROFESSIONAL STUDIES
MASTER OF SCIENCE IN INTEGRATED MARKETING
PROFESSORS JOHN MITTNACHT AND BRIAN MARTIN
FALL 2012
Natura Vita
Capstone: The Business Plan
Student:
Bruna Maria Raposo Soares Braga Polizzi
12/13/2012
Table of Contents
1.
Executive Summary………………………………………………………………… 2
2.
Management Team ………………………………………………………………… 3
3.
Business Description ……………………………………………………………….. 4
4.
Operations …………………………………………………………………………. 6
5.
In-depth Market and Target Analysis ……………………………………………..14
5.1 Market Analysis ……………………………………………………………………14
5.2 Target Analysis …………………………………………………………………….19
6.
Competitor Analysis ……………………………………………………………….23
7.
SWOT Analysis ……………………………………………………………………..27
8.
Marketing Plan …………………………………………………………………….29
8.1 Overview …………………………………………………………………………..29
8.2 Brand Positioning Statement and Ladder …………………………………………29
8.3 Creative Plan ………………………………………………………………………30
8.4 Marketing Acquisition & Paid Media Plan …………………………………………32
8.5 Social Media ……………………………………………………………………….42
8.6 Public Relations ……………………………………………………………………43
8.7 Marketing Budget ………………………………………………………………….45
9.
Financial Plan ……………………………………………………………………..46
9.1 Profit & Loss Statement …………………………………………………………..46
9.2 Projected Cashflow………………………………………………………………..48
9.3 Break Even …………………………………………………………………………49
10. Supporting Documents …………………………………………………………….50
1
1.
Executive Summary
In the past few years juice cleanse, which consists of a dietary program that
entails drinking only natural fruit and vegetable juices for a few days in order to detox
the body, has grown in popularity in the United States and other countries due to its
several health benefits (e.g. physical glow, clear skin, stamina, and weight loss). In
Brazil, on the other hand, the juice cleanse frenzy has yet to catch. Although the
consumption of natural juice is ingrained in Brazilian’s eating habits and the fact that
body image is an extremely important issue in the country, no juice cleanse brand has
established itself in that market yet.
With the goal of exploring this huge untapped market opportunity, Natura Vita
is a new organic juice cleanse company that will be based in São Paulo, Brazil, and
that will make and sell via e-commerce three different types of juice cleanse kits to
women 20-50 years old who live in the Greater São Paulo area and who are part of the
growing upper middle class and upper classes.
The company is currently seeking working capital in the amount of
$1,200,000.00 for the purpose of start-up operations and to cover estimated operating
expenses in the first year.
The loan will enable Natura Vita to successfully implement the marketing plan,
make and deliver the products it will sell.
Natura Vita is going to take advantage of the critical circumstances that have
transformed Brazil in a market of strong opportunities for beauty and health-related
products. Additionally, the recent economic boom in that country has created a strong
demand for premium and lifestyle brands, such as Natura Vita.
Some of the key factors that will allow Natura Vita to thrive are:
?
Pioneering business model in Brazil, which has already proven to be a success
in the American market
?
Growing demand for beauty and personal care, health & wellness, and weight
management products
2
?
Aggressive marketing initiatives that will be implemented with a well-rounded
marketing plan
?
2.
Management and advisory board with solid experience
Management Team
Bruna Polizzi
CEO and CMO
Max Miller
Serena Takaji
Elias Franco
CFO
Kitchen and Nutrition
Manager
Operations Manager
(After Year 2)
Bruna Polizzi – CEO and CMO. Bruna is a M.S. in Integrated Marketing candidate at
New York University with five years of experience in marketing. She holds a BBA from
FGV- EAESP (Fundação Getulio Vargas), the top business school in Latin America. Her
broad experience ranges from marketing research, new products development, and
sales in the pharmaceutical industry (Aché Pharmaceuticals, Eli Lilly) to creative roles
in advertising (SOAP Presentations, Kraftworks) and fundraising for nonprofits
(BrazilFoundation).
Max Miller – CFO. Max has a BA in Accounting from São Paulo University. He worked as
a controller for Do Bem for four years, a successful beverage start-up in Rio de Janeiro
before relocating back to São Paulo.
3
Serena Takaji – Kitchen and Nutrition Manager. Serena holds a BS in Nutrition from
Unicamp (University of Campinas) and worked at a private nutrition practice in São
Paulo for over 10 years. She is a certified functional nutritionist and a member of the
Regional Nutrition Council of São Paulo.
Strategic Partners
?
CRN-3 (Regional Nutrition Council of São Paulo): www.crn3.org.br/home.php
?
CEAGESP (General Warehouse Company of São Paulo) – linked to the Ministry of
Agriculture, CEAGESP is a warehouse complex that receives and distributes fruits,
vegetables, and grains to the whole country: http://www.ceagesp.gov.br/
?
São Paulo Organic Gastronomy Festival: annual festival whose goal is to create
awareness on the importance of having healthy diet and on sustainable food
agriculture: http://festgastronomiaorganica.com.br/
Advisory Board
In order to fill the gaps in Natura Vita’s management team and to further
facilitate new opportunities and business ventures for the company, the following
professionals will be part of the advisory board:
?
Priscila DiCiero, experienced nutritionist specialized in organic foods
?
Cristiana Arcangeli, beauty and food entrepreneur. Founder of Phytoervas
Cosmetics, Eh Cosmetics, and beauty’in
?
3.
Eduardo Cassarini, founder of Flores Online, a pioneering online store in Brazil
Business Description
Concept
Natura Vita is a Brazilian company located in São Paulo that will make, sell
online, and deliver organic juices for 3-day cleanses made from the best and freshest
4
local fruits and vegetables packed with nutrients and vitamins to support and promote
a healthy and balanced life to consumers.
Products
Three cleanse packages with different overall health goals containing 18
bottles of juice each will be offered:
?
Basic Cleanse – This cleanse is the most gentle and is recommended for
customers who are doing a juice cleanse for the first time. It helps to control the
desire to eat fatty and sugary foods and improves body functions. Price: $155
?
Anti-Aging Cleanse – Offers all benefits from the Basic cleanse, in addition to
giving consumers an energy boost and improved skin appearance. Price: $170
?
Intense Cleanse – Designed to restore alkaline balance and to provide a deep
cleanse to fully detox the body. Price: $200
All products will be developed by a professional nutritionist using the best local
organic fruits and vegetables available, including celery, coconut, cucumber, cupuacu,
jabuticaba, kale, lemon, parsley, pineapple, soursop (graviola), spinach, and starfruit
(carambola), among others.
Target Audience
The brand will primarily target women 20-50 years old with weight and health
concerns in the growing Brazilian upper classes.
Value proposition
To offer consumers the first premium juice cleanse program in the market,
conveniently sold online and delivered to their doorstep.
5
4.
Operations
Location
Natura Vita will be based in São Paulo, the country’s biggest and richest city
and where the majority of the affluent population lives. The office and a juice
production facility will be located in a 2500-3000 square feet rented commercial space
in the city outskirts, where real estate is significantly cheaper. The monthly rental fee
is $7,500.00.
Due to the nature of the products offered by Natura Vita, (highly perishable
juices that need to be consumed within few days) the delivery area will be the São
Paulo Greater area. As the business grows and the brand increases its market share,
Natura Vita will expand its operations to São Paulo state, Rio de Janeiro, Curitiba and
Florianopolis. These regions concentrate the majority of the country’s wealth and
Natura Vita’s target audience and will enable the company’s sustained growth.
Legal Structure
The company will be designated as “limited” (ltda.), which corresponds to the
American incorporated. Natura Vita then will go through a bureaucratic list of required
deeds to be able to legally function as a company.
Natura Vita will be registered with different commercial boards, receive tax
inspection, apply and obtain digital certification for the use of e-invoice, apply for an
operations permit, hire and register the employees in the social integration program
(PIS), open a special fund for unemployment (FGTS) in the bank, notify the Ministry of
Labor, and register with the employees union1. A detailed list of these requirements,
in addition to the estimated time to complete them and the associated costs, is in the
end of this document.
1
DoingBusiness.org, June 2011. Starting a Business in Brazil.
http://www.doingbusiness.org/data/exploreeconomies/brazil/starting-a-business/
6
Personnel
Natura Vita recognizes that the key to success, especially when it comes to a
start-up, is the quality and dedication of its employees. Hence, independent and
motivated professionals with proven record of success will be hired. We will hire more
juicers, packers and shippers in proportion to sales growth. The following staff
positions will be needed in the company’s first three years of operations:
Payroll
Monthly
Salary
Non-salary
Expenses*
Quantity
Subtotal
Yearly Payroll
Expenses
$3,063
$36,750
Year 1
Client
Representative
Production
(juicers,
packers,
shippers)
Admin Assistant
Marketing
Intern
Kitchen and
Nutrition
Manager
CFO
$1,750
$1,313
1
$800
$600
3
$4,200
$50,400
$1,750
$1,313
1
$3,063
$36,750
$300
$0
2
$600
$7,200
$3,000
$2,250
1
$5,250
$63,000
$5,000
$3,750
1
$8,750
$105,000
Total
$299,100
Year 2
Client
Representative
Production
(juicers,
packers,
shippers)
Admin Assistant
Marketing
Intern
Kitchen and
Nutrition
Manager
CFO
Operations
Manager
Total
$1,750
$1,313
2
$6,125
$73,500
$800
$600
5
$7,000
$84,000
$1,750
$1,313
1
$3,063
$36,750
$300
$0
4
$1,200
$14,400
$3,000
$2,250
1
$5,250
$63,000
$5,000
$3,750
1
$8,750
$105,000
$6,000
$4,500
1
$10,500
$126,000
$502,650
7
Year 3
Client
Representative
Production
(juicers,
packers,
shippers)
Admin Assistant
Marketing
Intern
Kitchen and
Nutrition
Manager
CFO
Operations
Manager
Total
$1,750
$1,313
2
$6,125
$73,500
$800
$600
9
$12,600
$151,200
$1,750
$1,313
1
$3,063
$36,750
$300
$0
4
$1,200
$14,400
$3,000
$2,250
1
$5,250
$63,000
$5,000
$3,750
1
$8,750
$105,000
$6,000
$4,500
1
$10,500
$126,000
$569,850
Source: Based on average salaries in São Paulo as seen at www.empregos.com.br and
exame.abril.com.br/carreira/ferramentas/tabela-de-salarios-rh
* Based on Brazlian Labor Legislation, who require businesses to pay up to 80% of salaries in
taxes and benefits to employees
Product Formula and Manufacturing
Each juice cleanse kit will be developed by Ms. Takaji, Natura Vita’s Kitchen
and Nutrition Manager in order to provide all the nutrients required to accomplish a
successful cleanse experience according to the three different products offered (Basic
Cleanse, Anti-Aging, and Intensive). Once all formulas are developed and approved, all
fruit and vegetables will be sourced from CEAGESP, a warehouse complex that sells
fresh produce from several local farmers in São Paulo State. As the production volume
increases, Natura Vita will negotiate with farmers to source directly from them. All
juice bottles and bottle caps will be sourced by Paulitec Plastics, a bottle company
located in the outskirts of the city and specialized in recycled packaging for the food
industry.
Sales Projections
Natura Vita will start Year 1 with a conservative sales projection of 1,000
cleansing kits on Q1. The sales were projected based on the estimated response rate
8
of the media channels that will be part of the marketing plan. Since marketing and
public relations investments will be aggressive on Year 1, the growth rate is projected
to be approximately 50% on Q2, 75% in Q3 and 100% in Q4. Because many people tend
to make weight-loss New Year resolutions, committing to diets and healthier lifestyles,
and also to prepare for swimsuit season (summer begins in late December in the
Southern hemisphere), some seasonality is expected on Q4. Therefore, growth rates
should increase in that quarter. In addition, we assumed that 30% of customers will
purchase the product again on the same year.
Because each product has a difference price, it is expected that the
Basic Cleanse makes up most of sales. The sales volume breakdown among the three
products offered are:
Basic Cleanse
50%
Anti-Aging Cleanse
25%
Intensive Cleanse
25%
The total sales volume projected for Years 1, 2, and 3 is:
Year 1
Q1
Q2
Q3
Q4
Total
Basic
500
750
1,318
2,713
5,280
Anti-Aging
250
375
659
1,356
2,640
Intensive
250
375
659
1,356
2,640
1,000
1,500
2,635
5,425
10,560
Total
9
Year 2
Q1
Basic
Q2
Q3
Q4
Total
1,581
1,897
2,277
3,187
8,942
Anti-Aging
791
949
1,138
1,594
4,471
Intensive
791
949
1,138
1,594
4,471
3,162
3,794
4,553
6,375
17,884
Total
Year 3
Q1
Q2
Q3
Q4
Total
Basic
2,618
3,011
3,462
4,501
13,593
Anti-Aging
1,309
1,505
1,731
2,251
6,796
Intensive
1,309
1,505
1,731
2,251
6,796
Total
2,618
3,011
3,462
4,501
27,185
10
The chart above represents quarterly sales volume from Year 1 through Year 3.
It is important to note that there is seasonality on Q4 in anticipation of the summer
season and New Year’s resolutions.
Equipment
The equipment required to make the projected volume of juice bottles that
will be sold on Year 1 is:
1 Tank With Pump Motor (200 Liters Capacity)
2 Stirring Tanks (200 Liters Capacity Each)
1 Pasteurizer Tank (150 Liters Capacity)
1 Juice Filler Machine
1 L-Sealer
1 Manual Date Stamper
1 Electric Sealing Machine
2 Fiber Tanks With 100 Liter Capacity
1 Oxygen Cylinder With Pressure Gauge Of C02
1 Manual Bottle Packing Machine
Charcoal Filter 200 Liters 2 Hours
Assorted Stainless Steel Accessories
1 Digital Thermometer
1 Hand Held Refract Meter
1 Air Compressor 8.7 24L 1500w 2 Hp 120psi
1precision Scale
1 Date Stamp Machine
2 3-Meter Stainless Steel Tables
The cost of the equipment, according to research with local B2B vendors, is
approximately $42,500.00. 2
Milestones
Natura Vita’s milestones are listed in the following table:
Milestone
Start Date
End Date
Budget
Present Business Plan to Investors at NYU
Sept 14th 2012
Sept 14th 2012
$0
Funding Obtained
Nov 1st 2013
TBD
$0
Apply for an operations permit
Nov 1st 2013
Jan 1st 2013
$0
Register company with all required City and
Nov 2nd 2013
Nov 27th 2013
$275.20
Nov 2nd 2013
Nov 4th 2013
$300.00
Open fund for unemployment account
Nov 2nd 2013
Nov 3rd 2013
$0
Hire Ms. Takaji, develop juice formula
Nov 3rd 2013
Dec 28th 2013
$70,000.00
Developing website, visual identity
Nov 4th 2013
Dec 28th 2013
$15,000.00
Hire and train employees (CFO, Customer
Jan 4th 2013
Dec 28st 2013
$236,100.00
Federal Agencies (See Section 8.1)
Apply and obtain digital certification for the
use of ecommerce
2
Mercado Livre. http://produto.mercadolivre.com.br/MLB-440154149-vendo-fabrica-bebidaenergetico-suco-iogurte-etc-_JM; Technopet. http://www.technopet.com.br/
12
Rep, Production team, Admin Assistant,
Marketing Intern)
Order equipment from vendor
Nov 5th 2013
Dec 5th 2013
$42,500.00
Order packaging
Jan 1st 2013
Jan 15th 2013
$42,636.00
Roll Out Website
Jan 15th 2013
NA
13
5.
5.1
In-depth Market and Target Analysis
Market Analysis
5.1.1 Weight and Health Concerns
In Brazil, people place a great importance on appearance, investing time and
money to constantly improve their looks by buying beauty products, undergoing beauty
treatments and surgeries and purchasing weight management products.3 Brazilians
enjoy to look and feel beautiful and even in the poorest neighborhoods, there seems
to be a beauty parlor on every corner. The country ranks first in the world in number
of liposuctions performed and second in number of plastic surgeries.4
Given this strong cultural trait, a recent study from the Brazilian Ministry of
Health in association with the University of São Paulo published last April came as a
surprise and left many Brazilians revaluating their health choices.
According to this study, obesity levels have increased in the country in the past
six years. The percentage of people overweight in Brazil jumped from 42.7% in 2006 to
48.5% in 2011. Over the same period, the percentage of obese people increased from
11.4% to alarming 15.8%.5 In 1985, only 29% of men and a meager 18% of women were
overweight.6
3
Euromonitor International, May 2012. Weight Management in Brazil.
4
McKinsey&Company, November 2010. The Beauty of Brazil.
http://csi.mckinsey.com/knowledge_by_region/americas/brazilbeauty
5
Brazilian Ministry of Health, April 2012. http://www.blog.saude.gov.br/obesidade-atingequase-metade-da-populacao-brasileira/
6
Executive Travel Magazine, October 2012. Brazil’s New Frontiers.
The study, which was used to help develop public policies aimed at fighting
obesity in the country, also revealed that the percentage of men overweight is 52.6%
while 44.7% of women are overweight.
Obesity is also found among children. According to IBGE (National Statistics
Office), one in every three children aged 5-9 was overweight in 2010 representing 34%
of the total population in this age group. Moreover, another research conducted by
IBGE in 2009 reported that 61% of population eats sugar excessively, while 82% eats
saturated fat excessively.7
Obesity is a huge health risk factor and is associated with numerous diseases
and medical conditions, including heart disease, stroke, diabetes, cancer, high blood
pressure, osteoarthritis, gout, breathing problems, depression, and reproductive
problems in women.8 In addition, simply being overweight can shorten lifespan. The
American Diabetes Association noted that studies analyzed by the National Cancer
Institute showed that those who were classified as overweight were 13% more likely to
die during the study period than people with lower BMI (body mass index). People
7
IBGE, 2010 http://www.ibge.gov.br/home/
8
Weight-control Informational Network, 2008.
http://win.niddk.nih.gov/publications/understanding.htm
15
classified as obese, with a BMI of 30 and above, were 44% more likely to die during the
study period.9
Because of the higher incidence of diseases associated with weight, the
Brazilian government launched a national pr…
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