Diagramma business plan

OTC – PROBIOTICS Market Entry Strategy

RESEARCH MADE FOR DIAGRAMMA S.A.

September 6th, 2013

GLOBAL COMPETITIVINESS PROGRAM

UNIVPM - UNL

• Country Selection

• SWOT Analysis • Product Selection

• Marketing Plan • Recommendation

Team: Melody Ferraro, Matteo Biagini, Stefano Pignotti, Cristián Knuttzen

Agenda


Direct Indicators - Market •  Probiotics End Users as % of Total

population. •  Percentage Breakdown of Revenue by

Country.

Indirect Indicators - Population •  Total Population. •  Average Age. •  % over 60 yrs.

Indirect Indicators - Economic •  GDP per Capita. •  Total Health Expenditure per Capita. •  Total Expenditure on Health as % Total

Government Expenditure. •  Prepaid Plans Expenditure as %

Private Expenditure on Health.

Indirect Indicators – Health Awareness •  Self Perceived Health. •  % of Tobacco Smoker. •  Vegetable Eating Among Adults. •  Sales Organic Food and Drink per

Capita.

Germany and France the Most Attractive Country Selection

SelecciónPaís_2.xlsx


1. Germany

2. France

3. United Kingdom

4. Italy

5. Spain

Germany and France the Most Attractive Country Ranking

Total Population x 1000

82,800

63,937

62,788

60,885

46,755


Risky Business SWOT

Strengths •  Experience in biotechnological R&D •  Interaction with R&D centers •  ISO 9001 and Kosher certifications


Risky Business SWOT

Weaknesses •  Lack of experience in European

markets •  Lack of experience with OTC

products. •  Location geographically far from

Germany •  Low installed production capacity


Risky Business SWOT

Opportunities •  Probiotics market is growing •  Functional food prices are high •  Sizeable functional drink market in

Germany.


Risky Business SWOT

Threats •  Economic growth at its lowest point •  Developing functional products may

take too long •  Market dominated by large

companies


Functional Fruit Juice the First Step Product Selection

SOLID

WELLNESSPRODUCT

LIQUID

powder pillsdrops

chewable tablets

strawyogurt

DRUG

Diagramma´s Fruit Juice


So we suggest…

Natural product for: healty digestion and balanced diet, no preservatives, dairy free, soy free, vegan. Niche market: no big competitors expected. Target consumers: people with health consciousness, attention to sustainability and natural way of living. Name: simple name, recognizable logo. Packaging: recyclable and natural material.


Profitable Price Price Study

COMPANY PRODUCT PLACE PRICE

GoodBelly USA 3.79 $/l 2.84 €/l

Naked USA 5.40 $/l 4.06 €/l

Golden Circle

Australia 4.99 $/l 3.75 €/l

Valio (Gefilus)

North & East Europe

2.83 $/l 2.12 €/

Kevita

USA (California) 20.12 $/l 15.12 €/

Source: self making from data obtained in companies' websites Germany Average Price of

Simple Fruit Juice 1.30 €/l

Recommended Price 4.0 to 5.0 €/l


Don´t Go Alone Market Penetration

Cares: •  Exporting Finished Product isn´t Cost Efficient •  Addition of Strain to Fruit Juice Needs Experience •  Supply Chain Takes Time and Resources •  Product Pipeline Restricted to Retail Stores or Shops with

Cooling Facilities

Partner, Join Venture or Co-packer Needed


Get Ready to Start Recommendation Summary

• Germany is the Market • Probiotic Fruit Juice - Niche to Exploit • Suggested Price 4 to 5 €/l • Partner or Join Venture Required