Business Plan – Tfbg Essay
Business Plan – Tfbg
The Functional Beverage Group, Inc. has designed and is now developing a line of enhanced water products using a micro-targeting strategy. Consumers will be able to choose from a diverse, yet highly specific product offering based on their supplemental dietary or hydration needs. Each product will be optimized for vitamin content, electrolyte content, caloric content, and
energy boost. We are currently in the process of developing three (3) of the targeted formulations.
What makes our enhanced water products so unique is that all of these products will contain levels of Vitamin D3. Our major competitors – from Sobe, to VitaminWater, to Propel, and the rest – do not have enhanced waters that contain Vitamin D3. Because of the amounts of research data available, we may be able to make health claims concerning our formulations – claims that the other functional waters can’t make. Currently, there is no major marketer of a functional water product containing Vitamin D3.
Why Vitamin D3? – Over the last two years, there has been a rash of research emerging concerning the lack of Vitamin D in our diets. Many physicians agree that the levels of Vitamin D suggested by current U.S. guidelines are insufficient. The lack of Vitamin D in the diet is beginning to gain notoriety by obstetricians, gynecologists, oncologists, pediatricians, and orthopedists across the country giving rise to what is being labeled as a new “epidemic” – Vitamin D deficiency.
Our Technology – Vitamin D has chemical properties which causes it to be virtually insoluble in water. Therefore, a beverage company would need to develop the technology to dissolve Vitamin D3 into a water product using food grade ingredients while at the same time making a product that is pleasing in both taste and appearance. The Research and Development Team of The Functional Beverage Group has developed the technology to accomplish these goals.
We are now seeking raise capital in order to finalize our formulation development and bring these product formulations to market.
A $500,000 initial investment (available in units of $10,000 each) provides an equity position in The Functional Beverage Group, Inc. This funding will allow the FBG to complete initial development of its product line, develop
informational web-site, and cover the legal fees and other expenses related to the completion of the second round of funding for the development of the operating company – Functional Foods & Beverages, Inc.
Our research has shown that most beverage companies are in the acquisition and/or partnering mode. Recently, many small beverage makers have been purchased by larger entities such as Coke, Pepsi, and Dr. Pepper/Snapple. Some of the more recent purchases include Coca-Cola’s purchases of Glaceau’s VitaminWater and SmartWater brands ($4.1 billion), Fuze Beverage ($327 million), Agua Brisa ($92 million), and Jugos del Valle ($456 million). Of more interest to The Functional Beverage Group is the recent investment of approximately $5 million the Dr. Pepper/Snapple Group made into Hydrive Energy, LLC. The Functional Beverage Group believes that our functional waters containing D3 will be a good fit for any of those organizations and therefore we can offer an attractive exit plan for our investors.
In an otherwise sluggish merger-and-acquisitions market, successful beverage firms are still the darlings of Wall Street deal makers. According to the December 9, 2009 edition of the Wall Street Journal, November was the biggest month in over a year for deals involving consumer products and food and drinks firms with $12.54 billion in acquisitions. One of those companies for sale is Cliffstar Corp., a New York based fruit-juice and sports-drink maker. Cliffstar has hired Morgan Stanley to conduct an auction and has entered a second round of bidding, said several people familiar with the matter. Closely held Cliffstar has annual earnings around $75 million and is seeking seven to eight times earnings, which would put it a sales price at $500 million to $600 million, according to the article.
Our revenue and expense projections are based on exhaustive industry research based on the cost to manufacture and market a new beverage product. In estimating revenues, we look at three products currently on the market: 1)
Wal-Mart’s Acai-based Energy Drink, 2) Hy-Drive Energy Drink, and 3) DRANK Relaxation drink. These products are thought to be some of the most innovative products at the time of their introduction. Our revenue projections are conservative. If we can achieve early adoption into the major retailers like Wal-Mart or Target, we can far exceed those revenue projections.
Our initial investors will become members of The Functional Beverage Group, Inc – an intellectual property development organization. Because The Functional Beverage Group, Inc will have few expenses and we expect to become profitable by Year 2. Most of these profits will be distributed as dividends to our shareholders.
Figure 1. The Functional Beverage Group, Inc – 5 Yr Revenue Projections
The Functional Beverage Group, Inc will maintain an approximate 40% stake in Functional Foods & Beverages, Inc (FFBI). FFBI will have the primary responsibility of manufacturing and market products licensed from The Functional Beverage Group, Inc.
Figure 2. Functional Foods & Beverages, Inc – 5 Yr Sales Projections
2. The Functional Beverage Group, Inc.
The Functional Beverage Group, Inc (The FBG), an Illinois Corporation was established in 2009 with a one core purpose – to become the preeminent supplier of functional or enhanced water products. The FBG is developing a line of functional water products based on the diverse needs of the functional water consumer. The consumer will be able to choose from a diverse yet highly specific product offering for their supplemental dietary or hydration needs. Each product is optimized for vitamin content,
electrolyte content, caloric content, and energy boost. Our marketing will focus on grass roots efforts as well as forming alliances, partnerships, and promotional agreements with A-List celebrities to produce other unique marketing angles. Our business model will be split into three separate entities: 1) The Functional Beverage Group, Inc – an intellectual property organization responsible for the development and licensing of proprietary enhanced water products and other beverages to be produced and marketed by its subsidiary operating company, Functional Foods & Beverages, Inc.
2) Functional Foods & Beverages, Inc – the operating company responsible for the manufacturing of products developed by The Functional Beverage Group, Inc. Functional Foods & Beverages, Inc will have the exclusive right to manufacture and market products developed by The Functional Beverage Group, Inc. Functional Foods & Beverages will be managed by individuals with food and beverage industry experience. Although this organization will be managed by beverage industry professionals, selected members of the Functional Beverage Group, Inc will act as consultants to the organization.
3) Functional Beverage Real Estate Holdings, LLC – a real estate holding company responsible for acquiring any land and buildings associated with the manufacturing and distribution of products sold by Functional Foods & Beverages, Inc. The Functional Real Estate Holdings, LLC will seek to locate facilities in areas where they can take advantage of incentives such as TIF financing, property tax concessions, and vacant or unused property incentives.
Figure 3. Proposed Operating Structure
3. Management Team
Our core management team consists of:
Shelby Parchman, President – MS Chemistry, Illinois Institute of Technology. Mr. Parchman has worked in new product development in the pharmaceutical and nutrition arenas for both Baxter Healthcare Corporation and the Amoco Corporation (Now BP). Mr. Parchman has years of experience working in the manufacture and formulation of analogs of Vitamin D3. In addition, he has a 15-year track record of success in working with start-up and entrepreneurial organizations. Mr. Parchman’s background in product development and nutrition has been instrumental in developing the unique features and formulations of our product mix.
Edward A. Williams, Corporate Treasurer – JD, DePaul University School of Law, CPA (Licensed in IL & IN). Mr. Williams specializes in legal matters in the following practice areas: Tax Law, Tax Planning, Tax Litigation, Civil Practice, and Federal Taxation. Mr. Williams has represented several notable clients including the late Bernie Mac.
Marvin Rux, Business Organization and Management Consultant – JD North Carolina Central University School of Law, MBA University of Chicago Booth School of Business, Mr. Rux practiced law for more than 20 years, specializing in the following practice areas: Real Estate Law and Taxation, Business Law & Development, and Estate Planning. Mr. Rux, no longer actively practicing law, provides consulting services to business development and real estate investment clients.
Christopher McGruder, VP of Marketing – BA Business Administration, Barrington University. Mr. McGruder has extensive Marketing, Public Relations and Executive Assistance experience via Edelman PR Worldwide, Merck & Company Pharmaceuticals and Morgan Stanley. His clients’ list includes several Fortune 100 Companies such as: Micro-Soft, Sears, Wrigley’s, KFC, Unilever, Kobel Champaign, Mike’s Hard Lemonade, Cub-Cadet, and Axe Body Spray. He was instrumental in the capabilities development and promotions, and execution of product initiatives and national campaigns.
Charles Moss, Marketing and Promotions – BA Communications, Southern Illinois University, Mr. Moss has years of experience in the entertainment and
recording industries. Through his organization, Chuck Moss Presents, he has worked with various recording artists in all aspects of management, marketing and promotions. Because his reach stretched from Los Angeles to New York, he has been able to develop a valuable network of celebrities in both the music and sports industry.
Terrence Seaphus, Marketing Consultant – MS Marketing/Advertising, Northwestern University Medill School of Journalism. Mr. Seaphus is an individual who can conceptualize a project and follow through to completion. His experience at M&M Mars along with his Northwestern University Graduate School tenure set the foundation that gave him the tools to succeed in marketing, advertising, diversity training and sales. His understanding of how to take new products through different channels including distributors, retailers, wholesalers, and finally, the end-consumer requires a 21st Century integrated marketing effort which happens to be his background.
Michael Vick, Marketing Consultant – Pro Football Player, Virginia Tech (College), Atlanta Falcons, Philadelphia Eagles. In addition to being an outstanding football player, Mr. Vick has a keen sense of marketing and salesmanship. In addition to being a partner, Mr. Vick has expressed interest in being our first signed celebrity endorser. In addition, Mr. Vick has a list of contacts who have expressed an interest in investing in our endeavor. Mr. Vick still has numerous fans and followers. His jersey is still a best seller in the NFL – a good testament to his marketing potential.
Pamela Williams, Manufacturing Consultant – MS Chemical Engineering, Washington University. Ms. Williams is a dynamic leader with extensive experience in project management, process and mechanical equipment design, and manufacturing start-up. Her broad technical expertise and demonstrated ability to learn technology quickly will enable us to complete project milestones at a fast pace. Additionally, Ms. Williams has over 12 years of experience working in global manufacturing at Proctor and Gamble.
Larry Williford, Project Management – MBA, MPM, Keller Graduate School of Business. Mr. Williford has extensive experience in project management. He
is skilled at working with business units to create sound business strategies, as well as supporting technology strategies. Mr. Williford worked in the IT departments of the McDonald’s Corporation, CNA Financial Services, and the Motorola Corporation before starting his own IT Consulting Business – Premier Project Management, Inc.
The bottled water industry has experienced phenomenal growth over the last ten years. Although low cost tap water is readily available, there is still 71 million bottles of water consumed per day. In 2007, bottled water sales reached $15 billion. What’s fueling the demand for bottled water? Bottled water demand is powered by the health and fitness craze. Consumers are being told that drinking bottled water is healthy and they have responded to the call by increasing their consumption of bottled water on a year over year basis.
As the consumer becomes even more health conscious, there is an increased demand for enhanced and functional waters. These enhanced and functional waters contain added ingredients such as vitamins and minerals that allow the manufacturer to claim health benefits related to these waters. Therefore, functional waters have a greater product distinction. Demographically, these enhanced waters are especially popular with 18-35 year olds.
According to beverage industry experts, the beverage industry has been trending towards lighter, lower calorie beverages with an emphasis on taste, refreshment, and function. Functional or enhanced beverages have seen phenomenal growth for the years 2006-2009 where the industry saw sales of enhanced waters and sports drinks up by 36% and 16% respectively for the period. Sales growth has been modest (approximately 3% from Jan 2009 to May
2010) during the current recession. However, according to Coca-Cola and Pepsi, sales of the enhanced waters have kept overall beverage sales in the black.
Figure 4. Beverage Industry Growth
Source – Beverage Spectrum, June 23, 2010
Factors for Success of the Product
According to Michael Bellas of the trade publication Beverage World (www.beverageworld.com), there are some key factors in making a new beverage product successful. These factors are:
1) Make product exciting for the younger consumer,
2) Let the label tell a good story – convince the consumer,
3) Create great and exciting flavors, and
4) Create added value and credibility.
We took these factors into account as we designed our initial product offerings.
5. Product Plan
Our initial product line is designed to address three relevant issues concerning vitamin supplements, obesity, and water quality. The three main product qualities are:
1) Fortified with Vitamin D3,
2) Natural, no-calorie natural sweeteners, and
3) Certified pharmaceutical free.
1. Fortified With Vitamin D3
Over the last two years, there has been a rash of research emerging concerning the lack of Vitamin D in our diets. Many physicians agree that the levels of Vitamin D suggested by current U.S. guidelines are insufficient. The lack of Vitamin D in the diet is beginning to gain notoriety by pediatricians and bone doctors across the country giving rise to a new “epidemic” – Vitamin D deficiency.
The Functional Beverage group has designed a line of “Health Waters” that include levels of Vitamin D3. We will design our marketing campaign around the concerns for the lack of Vitamin D in the diet along with the health benefits of supplementing Vitamin D in the diet. Because there is not a “one-size-fits-all” recommendation for the amount of Vitamin D that should be supplemented in the diet, we have designed different formulations for targeted groups. This keeps in line with our strategy of micro-targeted waters. Therefore, in addition to optimizing our formulations for taste, other vitamins, sugar content, etc, we will also optimize for the levels of Vitamin D suggested for our targeted groups.
2. Stevia – The Natural, No-Calorie Sweetener
The Functional Beverage Group has chosen an extract of the Stevia plant as the primary sweetener in our enhanced water products. A recent article in the Wall Street Journal highlighted Pepsi’s and Coke’s development of products using the Stevia plant (see WSJ, July 31, 2008 – Beverage Wars Take on New Flavor). Massimo d’Amore, chief executive of PepsiCo’s beverage business in the Americas states that – “This is probably the biggest change in the formulation of beverages since the initial days of artificial sweeteners.”
3. Certified Pharmaceutical Free
As evidence mounts of contaminants in some public water systems, unease about the water supply is growing. As detection technology improves, utilities are finding more contaminants in water systems. In early 2008, media reports of trace amounts of pharmaceuticals in water across the country drew attention from U.S. Senators and environmental groups, who are now pushing for regulations of these substances in water systems. Health concerns extend to bottled waters according to the National Defense Research Council. A lot of bottled water is actually tap water. Consequently, there is no assurance that what is coming from the bottle is any safer than what is coming from the tap, according to their studies. The Functional Beverage Group will certify each lot of water to be free of all pharmaceutical compounds. These results will be verified and/or tested by independent testing laboratories. In order to insure water of the highest purity, we will start with purified spring water. If necessary, we will process/polish our feed water to a level of high purity utilizing industry standard methods.
6. Initial Product Design
“…beverage marketers may be best served – and this is the key point – by classifying products according to the new evolving need states that define our consumer.” – Michael Bellas
“Barrington’s [School District 202] dairy dilemma is an example of a discussion playing out across the country, as educators try to reconcile two concerns: childhood obesity and insufficient calcium intake. Even some experts have trouble coming up with a satisfying answer.” – Chicago Tribune, Nov. 19, 2009
We will formulate and bottle our products using purified Wisconsin spring water. Our initially proposed products are:
1) Infant Water, Certified Pharmaceutical Free (CPF) – This product is the same as any nursery water sold on the store shelves today. However, each bottle will contain a CPF label stating that we have tested the water and certified it to be free of any detectable levels of pharmaceuticals. What concerned mother wouldn’t choose our product over one that has not been certified?
2) X-Y-Teen (Young G) Formula – The target market for this formula will be children in grades K-12. This formula, containing Calcium, Vitamin D3, protein, and natural sweeteners will be marketed directly to school nutritionists/dieticians as a suitable alternative to milk. According to an article in the November 12, 2009 edition of the Chicago Tribune, there is a discussion playing out across the country as educators try to reconcile two concerns: childhood obesity and insufficient calcium and Vitamin D intake. According to the article, even some experts have trouble coming up with a satisfying answer. This product is the satisfying answer.
3) Women’s Formula – Designed to supplement nutritional requirements of women especially those of childbearing age. Our formulation will contain Calcium, Vitamin D3, and other vitamins and minerals important to women’s health. In addition, emerging research suggests the daily consumption of 1,000 IU of Vitamin D3 is associated with the support of breast health. A claim we can make in the marketing of our product.
4) General (Active Adult) Formula – A formula for the masses that contain low levels of Vitamin D3, Calcium, and other electrolytes. This formula is designed for the consumer to drink multiple bottles per day, hence the lower levels of vitamins and minerals. This formula will compete with the more mainstream “vitamin enhanced” water products and is targeted to replace the ever decreasing carbonated soft drink market.
5) Extreme Sports Formula – This product is designed for professional athletes and amateurs who participate in endurance sports or multiple bouts of intense exercise. The product contains Calcium and Vitamin D3 for stronger bones as well as increased amounts of electrolytes for more
complete hydration. This formula is designed for the rigors of professional sports and can have variations for other professional sports endorsers. The target market consists of professional athletes and amateurs who participate in endurance sports or multiple bouts of intense exercise. We are designing an MV-7 formulation of the Extreme Sports formula for Michael Vick’s comeback to the NFL. This formulation is to be sold in markets where Michael Vick has a strong marketing and brand recognition presence. Additionally, we are in discussions with Pierre Thomas of the New Orleans Saints to come aboard as an endorser.
Our future product offerings may include:
1) Winter Formula – This formulation will include higher levels of vitamin D for the winter months to address the lack of sunlight available in winter months.
2) Acai Berry Formula – Acai berries, found in the Amazon, are believed to have some very healthy qualities. Wal-Mart has recently entered the market for Acai Berry Juice and sold approximately $40 million worth of the juice within the first 90 days.
3) Baby Boomer’s Formula – A formulation designed for active adults who are ages 45 and older. The target demographic has a keen awareness of health related issues and an above average amount of disposable income.
4) Other Formulas – These can include energy drinks, other enhanced water formulations, natural juices, and alcohol based beverages.
Because Vitamin D is sensitive to both light and oxygen (air), the traditional plastic bottle is not suitable for our formulation designs. We look at that being an added bonus because it forces us to use a newer, up-scale, and more hip package design – the aluminum bottle. The use of this packaging further differentiates our beverages from the typical bottled
water and vitamin waters. An added advantage to using the aluminum bottle is the ability to added extremely artistic graphics to the outside of the packaging – adding even more product distinction – without the expense of a separate label. According to CCL Container, manufacturer of an aluminum bottle product, the aluminum bottle offers distinct advantages, including the ability of top-to-bottom shaping, chill-retention, re-sealability and durability.
The use of the aluminum bottle has added significance over the plastic bottle as well when it comes to the environment. Because there are more “green” initiatives implement by both federal and local environmental concerns, it is important that product packaging is forward looking in terms of meeting any new environmental regulations. According to the Recycling Revolution web site (www.recycling-revolution.com/recycling-facts.html), these facts, among others, are worth considering about the use of aluminum for packaging:
1. A used aluminum can is recycled and back on the grocery shelf as a new can, in as little as 60 days – a process known a closed-loop recycling.
2. Because so many of them are recycled, aluminum cans account for less than 1% of the total U.S. waste stream – according to EPA estimates.
3. Americans use 2,500,000 plastic bottles every hour with most of them being thrown away.
After considering product stability, costs, and environmental issues, we have concluded that the aluminum bottle is the perfect packing for our product design.
7. Trademarks, Patents, Copyrights, Licenses, Royalties
We will seek trademark protection for all of our product brand names, designs, logos, and relevant phrases. In addition, we may patent some of our formulas and processes. However, we feel that keeping our formulations and processes a trade secret will offer better protection that securing a patent
for the these items. We will review each situation on a case-by-case basis, in consultation with our legal team, as we make decisions on whether or not to pursue patent protection for any of our formulations or processes.
8. Government Approvals
The United States Food and Drug Administration (FDA) regulates bottled water as a food product. The FDA has established specific rules for bottled water, including Standard of Identity Regulations that define different types of bottled water, and Standard of Quality Regulations that establish minimum levels for contaminant (microbial, chemical, and radiological).
The FDA has also established Good Manufacturing Practices (cGMP) regulations for the processing and bottling of drinking water. These rules require that bottled water must be safe as well as processed, bottled, held and transported under sanitary conditions. Processing practices addressed in the cGMP regulations include protection of the water source from contamination, sanitation at the bottling facility, quality control to assure the bacteriological and chemical safety of source water, and sampling and testing of source water and the final product for microbiological, chemical, and radiological contaminants. Our bottling group will be required to maintain source approval and testing records in the event of any government inspection.
Our bottling group may be subject to additional inspection by state and local licensing agency, health agencies, and/or environmental agencies. Procedures and protocols will be in place to ensure full compliance with all federal, state, and local rules and ordinances.
In addition, all of our ingredients, including Vitamin D3, are on the FDA list of ingredients that are approved as GRAS (Generally Recognized as Safe). Consequently, no approvals are required for adding these ingredients to bottled water. However, there may some restrictions on how much can be added to the bottled water product. Our formulations will be well below those limits.
9. Product Liability
We will purchase product liability insurance and/or an umbrella policy in addition to the product liability insurance coverage that is held by any of our suppliers. We are depending on our legal team to give us further guidance on the types and amounts of insurance we should obtain in order to protect the organization from any product liability or other claims.
All production will be performed by our subsidiary operating company Functional Foods & Beverages, Inc. In addition, we will qualify contract bottlers to ensure a continuum of production in the event our primary production facility is out of service or in the event we would need excess production capacity in order to meet unanticipated product demand.
11. Marketing Plan – Fortified Beverages
“…beverage marketers will open new vistas for growth. Their size and growth opportunities will be different; their product positioning will be more specific.” – Michael Bellas (Beverage World)
Three simple goals
As we market our products and create brand awareness, we have three simple goals we look to accomplish:
1) Convert non-bottled water drinkers to enhanced bottled water drinkers,
2) Convert bottled water drinkers to enhanced bottled water drinkers, and
3) Convert others from competitor’s products.
Our marketing plan is designed to efficiently accomplish these goals.
A multi-prong approach
We are devising a multi-prong approach to our marketing efforts. We will develop a sales force to create relationships and alliances with people and organizations of influence in our target markets.
Figure 6. Marketing Plan
Target Market – School Districts Across the Nation
One of the first formulations the FBG will design and develop will be the Young G formulation. This formulation which contains Calcium, Vitamin D3, protein, and reduced sugars, is an excellent alternative to milk. Children need about 32 ounces of milk daily just to get the recommended allotment of vitamin D. It is difficult getting children to drink eight ounces of milk, let alone 32 ounces. Our Vitamin D3 fortified Young G formulation is the drink for them. Having no fat and fewer calories than 2% milk also makes this an attractive product to highlight in First Lady Michelle Obama’s new Childhood Obesity Initiative. The size of this market is enormous. If we count only the children receiving subsidized lunches in the school system, we have a market that is 31 million children strong in more than 100,000 schools.
Target Market – Sports Fans
We are very fortunate to have professional football player Michael Vick as a member of our founding group. Mr. Vick immediately saw the potential of our proposed formulations and did not hesitate to come on board. Another formulation in the stages of development is our MV-7 formulation. This formulation will be marketed as the drink developed for his return to the NFL. Having Mr. Vick on board establishes immediate brand recognition and credibility for our products. Currently, he is receiving tons of media
attention every time he hiccups. This media attention is invaluable. For example, experts estimate that last year’s giveaway of free Grand Slam breakfasts by Denny’s generated roughly $50 million through free advertising. We look forward to cashing in on this media attention as well.
Additionally, we are looking to sign additional celebrity endorsers from both the sports and entertainment arenas. We are currently in discussions with Pierre Thomas of the New Orleans Saints to bring him aboard as another celebrity endorser from the sports world.
12. Competition Profile
There are numerous competitors in the market for enhanced water products. Even with numerous products on the market, new brands can be highly successful. It is a matter of carving out a position in the market where your product has the perception that it does something the others are not doing. As shown in Figure 6 below, there is no huge product distinction from the major functional water brands. Propel Fitness Water includes calcium for “stronger bones,” however Vitamin D is required in order for the human body to absorb calcium.
While it may be obvious to consider our major competitors to be other “vitamin” water products, we beg to differ. We feel that our major competitors and target market would be those who drink milk or use some other form of Vitamin D fortified consumer product. These products include cereals, cereal bars, and yogurts. Because of extensive research into Vitamin D deficiency, these products can make specific claims on their labels – claims that the vitamin water products cannot make. Because our products are fortified with Vitamin D, we can make these same health claims. As a result, we can make this product stand well above the vitamin water products on the market.
In the article Chocolate Milk Lovers Have a Cow About Bans, Chicago Tribune, November 12, 2009, it has been noted that children are not drinking white milk and that chocolate and strawberry milk products are too high in
calories. The article goes on to express parents’ concerns that children are not getting enough Calcium because they are not drinking milk. The conclusion is that there is no suitable alternative to milk in the schools. We conclude then that milk is indeed our main competitor because we have designed the suitable alternative.
Table 1. Competitive Comparison
|Advantages |Drawbacks | |Milk | | |Well known source of Vitamin D & Calcium |Lactose intolerance in many individuals | |Source of Protein and essential fats |Not very portable – needs refrigeration | |Strong marketing campaign USDA subsidized in schools |Concerns about hormones | |$0.50 per 8 oz. serving |Flavors are high in calories | | |Limited shelf life | |Vitamin Waters | | |Brand recognition |Flavors are weak or medicine-like | |Large marketing budgets |No true “function” | |Moving towards healthier product lines |Product choices can be overwhelming | |Lower calories |Some have high sugar content | |Natural flavors |Not directly marketed to younger generation (target 18-35 year olds) | |$0.60 per 8 oz. serving | | |Functional
Foods | | |Alternative sources of Vitamin D & Calcium |Some products are dairy ( lactose | |Contained in mainstream food items |Usually breakfast specific | |Some are portable |Some are not portable | |Brand recognition |Perishable | |Cost per serving varies | | |Aqua-D from the FBG, Inc | | |Designed as a great tasting, low calorie direct replacement for milk |No product history | |Vitamin D and Calcium containing alternative to more popular enhanced |Major competition from Coke and Pepsi Products | |waters e.g. Vitaminwater |Limited marketing budget | |Smaller bottles w/ lower price point (