Executive Summary

At the forefront of the minds of many people today is the concept of nutrition.
Eating well and maintaining proper nutrition is an intrinsic need for a healthy lifestyle.
The nutrition industry has seen exponential growth within the past decade and it is in this
market that SuperStraws will look to make its mark. SuperStraws will ensure to provide
all the nutrients needed for a balanced healthy diet, in a fun and creative way.
With mainstream culture enraptured by the healthy living trend, the nutrition market has
been buoyed exponentially, attracting an ever-growing and wider audience of consumers.
According to an article published by the Canadian Research Data Centre Network in
2009, 40.1% of adults took vitamin supplements regularly3. According to Statistics
Canada, the direction of the nutrition market is now focused on providing consumers with
new sensory experiences, using the leverage of new technology and the development of
convenient, healthy and nutritional products3. This is where SuperStraws has an
unmatched advantage in the industry of childrens vitamins, putting us in a favourable
position for success.
SuperStraws, which can be flexibly used with any liquid, provides a delicious
boost of nutrients in an innovative fashion. The sturdy plastic and recyclable straws will
allow for easy usage with all forms of liquid as well as taking into account our
environmental impact. Engineered with a distinctive sieve that allows for easy sipping
and fluid mixing of the vitamins as well as the barring of any solid runoff, SuperStraws
will effectively and efficiently deliver a delicious mouthful of vitamin goodness.
An exceedingly flexible product, we at Super Straws work towards catering to our
exceptionally diverse market. With colourful designs and the flavours to match,

SuperStraws ensures that getting the right nutrients and vitamins will be a hassle free
task. SuperStraws will revolutionize the nutrition market, a market worth 5.9 Billion in
the US alone4. We at SuperStraws will prove to become a mainstream product and
household name. With product flexibility to accommodate a vast variety of consumers,
SuperStraws will prove to be a fulfilling investment and we invite you to join us as we
take the world by storm a Super storm.
Promotional Strategy
In the U.S. alone, the vitamin and supplement market is a $23 billion industry and
is growing at a 5% to 7% annual clip. 1 Currently, this market is primarily held by
Jamieson Laboratories with 22% of the market share with many other competitors
coming in with approximately 10% of the market each.2 Our goal is to break into the
industry and capture some of the market share not only from pre-existing firms, but also
dominate the expected growth in the years to come. We have an idea that combines the
popularity of cookie straws from chains and products such as Starbucks and Oreo cookies
all while meeting the growth in the market for those wishing to lead healthier lives and
increase efficiency for busy lifestyles.
We believe there is an opportunity to connect with both mothers and children in
our marketing campaigns. When looking at P&G and their successful ad campaigns
during the winter Olympics, they increased the profitability of their company by
1 Ng, Serena, and Jonathan Rockoff. "With Top Lines Drooping, Firms Reach for Vitamins." The Wall Street Journal 31 Mar. 2013.
Web. 12 Nov. 2015.

"Vitamins and Dietary Supplements in Canada." Euromonitor International (2015): 45. Web. 19 Nov. 2015.3Canada.
Agriculture and Foods. International Markets Burea. Overview of Global Sports Nutrition Markets. Agriculture Canada,
Aug. 2010. Web. Nov. 2015.
4
Hennessy, Maggie. "$5.9 Bn US Sports Nutrition Market Unlocking Mass Appeal:
Euromonitor." NutraIngredients-USA.com.
William Reed Business Media, 27 Mar. 2015. Web. 20 Nov. 2015.

connecting with the athletes mothers, because it has been proven that they influence
over 85% of household buying decisions.3 According to statistics Canada, todays
consumers are also seeking solutions that allow them to maximize their free time and
disposable income dollar, and spend more time doing the things they value. The
convenience trend is driven by this desire to create more leisure time.4 We want to run a
marketing campaign that appeals to mothers and highlights the efficiency of our product.
Instead of having to nag their child to take their daily vitamin every morning, they will be
receiving their healthy dose of vitamins all while sucking down their glass of orange juice
in the morning. We believe that by focusing on mothers in the household, we can
emphasize how buying our products will allow them to spend more time on what is
important, being with their family. We also want to highlight that they can be at piece of
mind when they send their child off to school, knowing they are well nourished and ready
to start the day off right. By purchasing our product, they are contributing to the well
being of their child, which can positively influence their school performance and give
them a bright future. We want mothers to see the big picture and how taking small steps,
like buying our product, can help to improve their childs quality of life.
On the other end, we also know that children aged 9 to 14 have influenced over
$20 billion in family purchases in Canada alone.5 We call this pester power, which is
the idea that children have the ability to influence their parents buying decisions through
nagging. As bad as this sounds, it is extremely effective and is something we want to
cater to and focus on in our marketing and promotional strategy. We believe a great way
3 Gordon, K. (2009, June 2). Target Moms' Buying Power. Retrieved October 12, 2014
4 "Consumer Trend Report." Agriculture and Agri-Food Canada (2010). International Markets Bureau. Web. 18 Nov. 2015.
5 Marwick, Robin. "Target Market: Children as Consumers." About Kids Health. Sick Kids, 30 Oct. 2010. Web. 18 Nov. 2015.

to do this is to come up with a contract or partnerships with highly popular Disney

animation or TV shows. We have seen how successful this has been for other companies,
with most vitamin brands affiliating themselves with the Flintstones and Winnie the
Pooh TV shows, Disney movies such as Frozen and Cars, and even superheroes and
princesses. All of these elements appeal to children and when they pick their
multivitamin, they will want the one with their favourite characters.
SWOT Analysis
Strengths: One of the many reasons why we believe our product will be successful is its
ability to appeal with both children and their parents. By making nutrition affordable and
fun for kids, we are appealing to a market that has not been targeted before. Children
love drinking through straws, and by combining this with nutrition, convenience and
many delicious flavours, we are confident in our products ability to succeed.
Weaknesses: We are aware that the vitamin industry is already very flooded with
competitors and many well-respected brands. This could pose risks in our ability to enter
the market and be successful among pre-existing firms. We have had to be very cognisant
of our pricing strategy to ensure that our product not only competes but is also provides
an incentive to choose a more creative and kid friendly option. Something we have had to
consider in our manufacturing process is the type of materials we use for our products.
We wanted to ensure that since our products are disposable, we have an ethical and
socially responsible way of decreasing our waste production. This is why we have
ensured that our straws are 100% recyclable, so that consumers can be reassured that they
are not contributing to a larger carbon footprint by purchasing our product.

Opportunities: In the future, we see many options in expanding our product line. We are
already researching and considering larger international markets to enter depending on
our domestic success. We plan to use our initial data to help grow and expand the flavour
options in our product line and also to look into finding more potential partnerships with
Disney characters and TV shows to ensure there is something to connect with every child.
As mentioned, although our product is 100% recyclable, we are also looking into finding
biodegradable options such as corn plastic to further our social responsibility and appeal
to the growing market for consumer responsibility. During the initial rollout phase of our
product, we would like to run small marketing campaigns with every supplier by offering
free samples/handouts of our product for children to try. We strongly believe in the
effectiveness and power of the free sample and that is something we would like to
maximize on. In Costco for example, data shows that a frozen pizza brand increased its
sales by 600% after being offered through free samples.6 We also believe that this would
be a great public relations opportunity because by having our own employers distribute
the samples, they will have the opportunity to personally connect with customers and
with the community as well.
Threats: With dealing with the food and vitamin industry, we develop many risks
regarding health standards and licensing. There is lots of room for error in quality
standards and these standards could also change over time, creating larger costs for our
company. We also run the threat of having other competitors adopt the straw idea, which
is why our patenting is so important. We need to ensure our product and intellectual

6 Pinsker, Joe. "The Psychology Behind Costco's Free Samples." The Atlantic. The Atlantic Monthly Group, 1 Oct. 2014. Web. 14
Nov. 2015.

property are protected; otherwise we will stand little chance amongst the big names
already established in the industry.
Mission Statement and Values
SuperStraws is committed to providing an innovative and creative nutrition
experience to both adults and children. We deliver healthy and balanced nutritional
supplements to promote healthy living for children, all while firmly holding strong
ethical values to deliver our commitments and operate with honesty, integrity, respect,
and confidence.
Proposed Business Venture
SuperStraws works to provide a creative and nutritious option for both parents
and children. Our goal is to effectively meet the growing consumer demand for health
products, all while providing a product that is fun for children and efficient for busy
lifestyles. Our vitamin infused straws are a unique and one of a kind product that we will
make available in local shopping malls, pharmacies, grocery stores, and wholesalers.
Taking a morning vitamin supplement can be an unpleasant hassle for both
parents and children. With our product, we want to help transform the way consumers
view nutrition. We want to make it fast and convenient so they do not need to think twice
about incorporating healthier choices into their lifestyles. At SuperStraws, we believe that
nutrition shouldnt have to come with inconvenience and a high price tag. It should be a
fun and positive experience for everyone involved. This is why we have a strong team of
passionate individuals dedicating our time to ensure that nutrition can be an efficient and
affordable option for everyone.
Operations Plan

Day-to-Day Operations
The SuperStraws plant will function mainly as an intermediary manufacturer as
well as a packaging facility for the finished product where the goods will be stored before
they are shipped to customers. Within these parameters there will also be the
manufacturing of the vitamins into straws. We will be receiving plastic in straw form
from R&M Plastic Products to offset higher production costs within our own factory, and
such operations will be run and managed within hours of 7am-11pm, leaving no
nightshift manufacturing to take place at least at the beginning stages when production
needs are not overly high. This will save the company in terms of the higher costs and
incentives associated with running a nightshift, such as higher wages or paid breaks that
would incur our labour costs7. Once demand increases this can be reassessed as our
production needs will have to be recalculated to determine an updated production plan
that would require an increase in labour to accommodate for higher production demands.
Due to the high consumption of plastic straws of over 500 million per year 8 and their use
in everyday life, the demand will not be seasonally based as in the case of certain
manufacturers, meaning that our suppliers, R&M Plastic Products, will be providing
inventory consistently throughout the year. This will ensure that our company is able to
produce vitamin straws year round.
Facility
The facility will be based in Waterloo, Ontario and within the walls of this plant
there will need to be designated areas for the production, packaging and storage of our
product. In the main production section there will be some sort of machine or conveyor

7 http://smallbusiness.chron.com/strategies-keeping-night-shift-staff-39177.html
8 https://simplystraws.com/plastic-facts/

process that implements the vitamins into the regular straws, it will then undergo
packaging before being shipped to retailers. Evidently, there will be a need for a shipping
and receiving dock as well as an office space to hold a call center that could also double
as a customer service outlet. Another aspect that requires a lot of space is a warehouse
that will be needed for the mass amounts of plastic being brought into the plant, but also
the finished vitamin straws awaiting transportation by truck drivers.
The relationship as represented by supply chain is as follows: R&M Plastic
Products (Barrie, Ont) & vitamin suppliers (ex: VitaKem)our companyretailers (ex:
Sobeys, Zehrs, Costco). Our facility will be designed to withstand a supply chain that
requires mass shipping of our products as well as the storage of said product until it
undergoes shipping. Once hitting retail the objective of the company is to not be very
selective in the carriers of the vitamin straw to make it accessible to consumers. The goal
is to eventually build up a partnership with Costco and sell in bulk, meaning that much of
our storage costs will be lowered, as higher quantities of bulk will be stored in the Costco
warehouses. Another impact in storage is the intention of exporting to companies from
the United States and that much of the product will have to be stored in the plant as it
awaits its shipping destination.
Information Systems
Having systems in place to ensure stock is properly accounted for and handled is
vital to ensure the quality and storage aspects of the business are better controlled.
Implementing monthly inventory counts will not only help assess the volumes and ratios
in terms of raw numbers of inventory turnover 9, but also help to account for and track
items that are damaged or deemed unusable. This is something that could be done while
9 http://www.gallina.com/assets/resources/MD_Cycle_Counts_of_Inventory.pdf

the plant is not running overnight that would allow the company insight into the
movement of product on a consistent basis.
In terms of quality it starts in the basis of the items we are receiving from our
suppliers, such as R&M Plastic Products, in their reputation of quality goods. Once
arriving in our plant, they will be placed on line with the machines for use and the rest in
a secure warehouse attached to the plant. Once the straws are fully manufactured, it is
essential to ensure routine batches are inspected in terms of damage and aesthetics to help
prevent product loss before it is shipped to retailers. The goal is to work with preventative
measures in hopes to retain the reputation of quality. Companies that can be hired to
assess the quality and safety of products and procedures will ensure not only the
consumers are dealing with a good product but the plant workers are as well10.
In order to manage inventory and stock, a subscription to a system will need to be
purchased that can effectively and efficiently deal with these counts as well as invoices
and transferring of goods. The FIFO rotation system being placed in this facility will
again help manage and understand turnover and warrant quality as being put first.
Information Technology (IT)
In order to manage computer systems, machine calibration and repairs, there will
be an IT and repairs team on staff to maintain the well-being of the equipment and the
software systems. Having updated and efficiently managed systems is important to the
company for ensuring quality service is upheld by minimizing technical difficulties or
production delays. Having repairs and maintenance workers scheduled on through nights
when the machines arent running allows for proper care and handling of production

10 http://www.qicinspections.com/quality-inspection.php

processes, although for start up this is an expense that can be lessened by reallocating
these employees to do this work during off-peak periods of production for the time being.

Financial Projections

Assumptions made in income projections:

$10,000 for research and development to develop manufacturing process

Sell 100 thousand pieces first year
Stock 150 thousand pieces first year
Sales double second year and triple third year
Cost of shipping to stores equals cost of shipping to our plant
Selling 60 pieces for $7

3636 straws per kg of vitamins ($65 per kg)

4 employees, paid $15 an hour
70/30 split first year with retailers because of high risk of a new product and
becomes 60/40 as sales increase

Sources of funding:
The Canada Small Business Financing Program offers up to 1 million (if gross revenues
are below 10 million) to purchase or improve land or to purchase equipment11

BDC funding for first 12 months12 of operations, as well as a small business loan of up to
50k for firms that have been in operation for at least 2 years13

CIBC small business loan of over $10,000 to improve or purchase capital assets14

I would strongly advise breaking into the American market as soon as we can, as it
provides access to many more customers than the Canadian market alone. On average,
Americans use approximately 500 million drinking straws per day and at an average rate
of 1.6 straws per person per day15 (for those who use them), while about half of
Americans take vitamins semi-regularly or regularly. Similar numbers for straws are
seemingly not to be found for Canada, but in 2009 40.1% of adults took vitamin
supplements regularly16 (showing a potential expansion market for adults in the future).
In order to do so, I would advise building up relations with retailers that sell in both
11 "Canada Small Business Financing Program ." Canada Small Business Financing Program. Government of Canada, 10 Oct. 2015.
Web. 22 Nov. 2015.
12 "Start-up Financing and Start-up Loans." Start a Business. BDC. Web. 22 Nov. 2015.
13 "Small Business Loans - Apply Online for up to $50,000." Small Business Loan. BDC. Web. 22 Nov. 2015.
14 "CIBC Business Loans and Lines of Credit." Small Business. Canadian Imperial Bank of Commerce Website. Web. 22 Nov. 2015.
15 Plastic Facts. Simply Straws, 2014. Web. 22 Nov. 2015.
16 Guo, X., N. Willows, S. Kuhle, and G. Jhangri. "Use of Vitamin and Mineral Supplements among Canadian Adults | Canadian
Research Data Centre Network." Use of Vitamin and Mineral Supplements among Canadian Adults | Canadian Research Data Centre
Network. CRDCN. Web. 22 Nov. 2015.

Canada and the USA, proving to them that our product can generate revenue by having
them sell in Canada, and then propose expanding sales of our products into the USA.
Alternative plan to enter the American market:
Companies like Walgreens in the USA are often looking to provide venture capital to
companies that align with their mission statement to "help people get, stay, and live
well"17. This would not only give us a boost in capital at the expense of equity, it would
also provide us access to an already established firm used to dealing in vitamin and health
products. On top of this, it would give us access to more stores to sell our products, as
well as a much-needed penetration into the American market. However, I would
recommend this as a secondary way to expand and enter new markets due to the loss of
equity, as well as many of these larger firms tend to attempt to aggressively buy out
companies that they own stocks in that serve as suppliers to them so they can reduce their
costs, and we as the owners and founders would miss out on any long term profit by
doing so.
Recruitment Plan
SuperStraws consists of 4 different departments, which include finance, production,
human resources, and marketing and sales. In order for Super Straws to run smoothly and
efficiently, an additional 21 employees must be hired. The recruiting methods the
company will be using include social media recruiting and the use of recruitment
agencies and head hunters. By using head hunters, we reduce the screening process and
ensure the company is hiring the best candidates for the job. Also, social media recruiting
helps with expanding the pool as well as getting the product name out in public. The
marketing employees are in charge of branding and analyzing market statistics. The
17 "Well Ventures | Walgreens." Well Ventures. Walgreens, 2015. Web. 22 Nov. 2015.

financial employees are in charge of bookkeeping, financial analysis and environmental

scanning. The operation employees are in charge of IT, shipping and receiving, repairs
and maintenance, and customer service. The production employees are in charge of dayto-day operations at the plant. The recruitment and operation of the business will be
organized in a specialized hierarchy that will help the plant run efficiently and effectively
by helping meet production quotas, ensure customer satisfaction and reach new profits in
the market.
The Management Team
SuperStraws is composed of 5 university students who continuously strive to achieve and
exceed the goals that the company sets. They utilize their strengths while improving on
their weaknesses. All employees are encouraged to be engaged throughout the assignment
by completing different section in the business plan. This requires constant
communication amongst all members thus building a strong foundation for the company.
SuperStraws holds five executive positions: President, VP Finance, VP Production, VP
Human Resources, and VP Marketing and Sales. All executive members are assigned
different roles to manage employees under their department. Each employee have
responsibilities that individuals are required to fulfill and report back to the VP. Although
President hold highest position in the company, company decisions are made based on a
majority vote by the Board of Directors.
SuperStraws operate with divided departments to share the workload while the hired
employees participate in the production.