Babe-ease

ENS 434
Final project
Axford, Jennifer
Bartholomae, Eric
Bien, Kacey
Cauble, Jessilyn
Dorfner, Tiffany
Sheridan, Kristina

Section A: Identification of the Challenge or Problem

1. Giving bad formula to infants, unaware when formula goes bad (increase in
bacteria growth - )
1. causes GI upset
2. possible death
Section B: Vision Statement and Rationale
1. VISION STATEMENT: To improve the lives, comfort, health and happiness
of families by providing a product which may help minimize the occurrence of bacterialinduced GI upset in babies.
1. We have created a color changing, heat sensitive bottle with an un-screwable
bottom, which contains disposable Cronobacter testing strips.
2. We created this because:
a. there is nothing else like this on the market
b. there is a need for a product like this
3. It will work because:
a. the pH strip will indicate when the formula has been contaminated with
high doses of bacteria
b. the temperature strip will indicate the favorable drinking temperature of
the formula
c. it is easy to use
1. use the cap on the bottom, and drop in a few drops of formula
through the nipple.
2. Wait for the indicator to change.
3. Toss away the used test strip
Section C: Program / Product Overview
1. What: bottle with an unscrewable bottom which contains disposable temperature
and pH testing strips
2. Who: mothers, sitters, daycare facilities
3. Where: home and on the go
4. how often: we estimate three times per day.
a. A 100 pack which is included with each bottle purchase is about a one
month supply.
b. A 250 refill pack lasts about two and a half months
c. facilities needed:
i. currently: a small warehouse
ii. future: a large production and packaging facility
Section D: S.W.O.T Analysis
i.
Unique:
a. nothing else like it on market
b. 3-in-1 product
i. bottle, temperature tester, Cronobacter tester
ii.
weaknesses:
a. purchasing of replaceable pH strips
b. cost of making the product

iii.

iv.

i. design a whole new bottle

c. Must be American Made
i. increased manufacturing costs
d. lack of awareness of issue of giving bad milk
i. uneducated audience - low perceived importance
e. will cause more waste of formula
i. formula is expensive - parents dont want to waste it
Opportunities
a. gain large portion of market share
i. why not buy this bottle over other bottles?
b. how will we advance this product in future?
i. use with water bottles, juice bottles
ii. Build-a-Bottle
1. changeable nipples - variable types and sizes
2. choice of testing criteria
3. changeable bottle size
c. saving babies / happy babies -> happy moms (time, stress)
i. lower health care expenses
Threats / obstacles
a. low awareness
b. cost of development/ funding
c. baby-proofing
d. other companies trying to steal idea/ buy us out
i. or trying to improve our idea
e. push for breastfeeding - WIC, healthy people 20/20
f. customer purchasing only the refills

Section E: Branding and Marketing Strategies, and Logistics

Provide brief overview of your branding and marketing strategy how you plan
to reach and connect with your audience
a. Primarily internet based: amazon, personal website
b. Educate the audience:
i. Interviews, Conventions, Roadshows (ie. Costco), Fair booth
ii. reach out to Hospitals samples
iii. Partner with infant formula manufacturers (ie. Enfamil)
c. Shelf space (ie. target, babies R us, buy buy baby)
ii.
How will you make your product / program appealing to use (sustained use)
a. Sustained use: disposable testing strips - have to buy over and over again
b. Appealing:
i. easy to use
ii. happy baby = happy mom
iii. Made in US
iii.
How will you communicate with your audience (i.e., to share, to collect feedback
on experiences and satisfaction)
a. 1-800 # - customer service line
iv. Provide brief overview of your plan to evaluate your products/programs efficacy.

v.

vi.

a. actually using the product

b. testing formula on strips at different times and testing for bacterial growth
c. Formula reconstituted with milk and water had initial pH of 6.0
i. decreased during microbial growth to pH 5.0
1. via acetic and lactic acid production of cronobacter
Financials (3-year Proforma):
a. Budget of total expenses - Start-up and operational expenses
i. cost of production: $1.50 from plastic thermoformer
1. bottle with nipple: $1.50
2. Cronobacter test strip 100 pack: $0.51
ii. packaging - $0.08 /pc.
iii. shipping: $5.95
iv. cost of mold: ~$8,000
v. CAD drawing - ~$600
vi. Research and Development $1,000,000
vii. attorney on retainer $175,000
1. licensing
2. patenting
a. $8k to file initially
b. $3k amendment costs: 14-16 months later
c. $2k issuance fees: 3 months later
viii. labor
1. first six months - $12,480
a. one person per day for six days a week
2. second six months - $124,800
3. year two - $499,200
4. year three - $1,248,000
ix. advertising
1. free bottles and coupons given to new mothers in hospitals
2. amazon fees - 15% per sale
3. search engine optimization - $750-5,000/mo
4. baby conventions / expositions - $525-1100 for booth
5. press release may lead to interviews
x. website start-up and maintenance - $2-3k to build + $100/mo
maint.
xi. distribution (cost of shipping)
1. USPS $5.95 per bottle
xii. Immunochromatographic strip for rapid detection of Cronobacter
Develop your estimate of revenues (if applicable) for the first 3-years.
a. first six months: 5,000 units
i. total profit = $216,600 - labor then tax = $124,513.20
1. 5,000 single units = $39,950 - our cost $10,450 = $29,500
2. 10,000 refill units = $199,900 - our cost $12,800 =
$187,100
b. second six months: 50,000 units
i. total profit = $2,166,000 - labor then tax = $1,314,192

1. 50,000 single units = $399,500 - our cost $104,500 =

$295,000
2. 100,000 refill units = $1,999,000 - our cost $128,000 =
$1,871,000
c. Year two: 200,000 units
i. Total profit = 16,148,000 - labor then tax = $9,702,256
1. 200,000 units = $1,598,000 - cost $418,000 = $1,180,000
2. 800,000 refill units = $15,992,00 - cost $1,024,000 =
$14,968,000
d. Year three: 500,000 units
i. total profit - $40,290,000 - labor then tax = $25,377,300
1. 500,000 single units = $3,995,000 - our cost $1,045,000 =
$2,950,000
2. 2 million refill units = $39,900,000 - our cost $2,560,000 =
$37,340,000
What we are asking for from the sharks
i.
Where we are now 1 year into production and distribution
a. Have attained less than 1% of the market share
i. Market as of 2001:
1. $203 million in sales
2. 60.5 million units sold
b. In three target stores
i. Contract ready to expand into 10 more stores (California)
c. Offer to enter Babies R Us on a trial run
ii.
Our goal
a. To reach 1% of the market share by the third year
b. To reach 5 % for the market share by the fifth year
i. 3,025,000 units
c. with seed capital and more shelf space in Target and Babies R Us
Revenues are expected to increase exponentially
iii.
Asking for $5 million for expansion
a. Establish new/larger manufacturing and distribution center
i. Need a new warehouse
ii. To buy thermoforming equipment to cut manufacturing cost by
25%
iii. To buy machine to manufacture the packaging
iv. To buy a truck for distribution to local stores
b. Hire new staff
i. Fifty employees
1. Run machines
2. Packaging
3. Distribution delivery and shipping