HEALTH

MIX
Group 4

Shrey Jauhari
Kunjan Chachan
Shalinee Kumari
Parthasarthy Sinha Chaudhary
Kshitij Verma
Priya Pahwa
Aditya Gangwar
Core product attributes:
• Balance taste and nutrition by choosing healthy ingredients that don’t sacrifice flavour
• Portion-controlled snacks and calorie-limited snack packs
• Gluten free
• Creative flavours
• GMO (Genetically modified Organisms)-free
• Have no artificial colouring/flavours and all natural.
• Including foods high in fibre (36%), protein (32%), whole grains (30%) or fortified with
calcium (30%), vitamins (30%) or minerals (29%)
• Sweetener options-coconut flour, agave nectar, cacao nibs

























Designing of the Product lines and product mix
PRODUCT MIX

The product life cycle for our Health snack are:

• Introduction into the market: When the snack enters the market for the first time. The
demand for the product needs to be increased; this will done, by giving the customer
some samples so that they can try before they purchase the product. This stage will help
the company to identify potential issues the product might have, from the consumer’s
point of view.
• Growth Stage: After the snack is introduced into the marker the sales increase, people
will start to buy the product when required, the public is aware of the products features
and benefits at this stage.
• Maturation stage: Production costs will reduce at this point as the product would have
sold several times during the growth stage. Price of the product may or may not drops
 down and the sales peek at this time. During this stage competitors will introduce their
own products, which have, are off similar characteristics.
• Decline Stage: Sales would drop down significantly, price of the product may or may not
increases and consumers tend to buy other products. Getting profits becomes very hard
at this stage. The product is then stopped when it reaches this stage.

At times we may rebrand the products and release it so that their sales can increase, the
product life cycle begins again soon after this.

Branding strategies

• At the introductory stage we will be advertising our products through Youtube

advertisements, google adwords, SEO, TV commercials and print media. We will be
using selective distributors keeping the visibility of product in mind.
• At the growth stage we will be using exhaustive distribution for seamless market
penetration.
• At the maturity stage we will be diversifying the products and will also be doing
rebranding in case if we need
• At the declining stage we will be doing rebranding and will also focus on sales and
marketing of the products and also look for the target groups and redefine our target
groups If needed.

Product Launch Marketing:

1. Target Audience : Our target audiences are

• Health Conscious People : “health Conscious people” are obvious target market
but it is also a broad one can be further sub targeted with effective marketing
strategy. With our product line of
Savoury Snacks – Targeting munchies segment and casual healthy eater.
Dairy Products - Breakfast Conscious , New Parenthood, Refreshing drink.
Energy Bars : Gym freaks, On the go executives and college students.
• Weight Conscious People
• People on Special Diets
• Active People
2. Media & Influencer Databases:
 • With well identified target audience its important to adopt the perfect media
and influencer partnership and strategy.
• We would go for collaboration and promotion with leading store chain in cities
with a SAMPLING launch strategy.
• We would go in collaboration with GYMs, SPAs, HOSPITALS, COMMUNITY
HEALTH CLUBS, with GRASS ROOT and PLAYMATE STRATEGY where I have we
have our motivated customers at this place and the places acting as playmate
towards the goal
• We would initially be aggressive with BTL marketing targeting these customers
with personalized options and optimal ATL.
3. Content Marketing activity
• The long-term goal is to build a brand community and eco system of healthy
living consumers with short term target being this would be used in line with
RIPPLE launch strategy where key influencers cans hare their stories to potential
and unaware customers who watches it as a part of pre-launch and post launch
activity .

Pricing

Before beginning with pricing it is important to analyse the variable costs and fixed costs so that
the prices covers that . The short run objective of our firm is survival followed by adding value.

Picking chips as a product for pricing .

Fixed Costs:

* Firm Infrastructure - Rs. 1,80,00,000 for 5 years so for One year = 16,00,000

* Human Resource Management - Rs. 20,00,000

* Research and Development - Rs. 30,00,000

* Procurement - Rs. 8,00,000

* Total Fixed Cost - Rs. 2,38,00,000

VARIABLE COST (Assuming 2 million products to be produced)

* Inbound Logistics - Rs. 30,00,000

* Operations - Rs. 60,00,000

* Outbound Logistics - Rs. 50,00,000

* Marketing and Sales - Rs.1,00,00,000

Total Variable Cost - Rs. 2,40,00,000

Total costs = Rs 7,87,00,000

Total Units Produced = 2000000 units

Price per unit = Rs 15.7 per unit

A) Cost Plus Pricing :

The average profit for Healthy snacking business has been = 12.4 %

Considering that the price for the product = Rs 17.65

B) Premium Pricing :

The healthy diet segment charges a premium of 20-100 rupees per product in different
product categories. For snacking charging a premium of Rs 20 makes my price = Rs 35.7

B) Perceived Value Pricing :

 The customers’ perception is to be influenced by several factors, such as advertising, sales
on techniques, effective sales force and after-sale-service staff. If customers perceive a
higher value, then the price fixed will be high and vice versa. Market research is needed to
establish the customers’ perceived value as a guide to effective pricing. But, considering our
target customer group, the perceived value pricing will be Rs. 40

Deciding, which strategy to go with??

The objective for our pricing was survival initially, so we will have to make sure that the price of
the product is neither too high or too low. Therefore, the Premium Pricing is the most
optimum.

Distribution

We would employ an intensive distribution strategy which would place our products in many
locations and regions. Since our products are such which can be consumed daily we need to
place our products near to the consumers for their convenience so that they don’t have any
problems in access to our products. Also the intensive distribution would enable us to reach a
wider audience, enhance our brand awareness. Since the product will be available in many
outlets, it would increase our sales which in turn would raise our revenues.

We would use a 2-tier distribution network as follows:


Health Mix

Wholesaler Agent

Modern Retail
Mom n Pop stores
outlets like D-Mart

By using the two-tiered distribution, we would save on our costs to develop new distribution networks.
Wholesalers are sales and distribution organizations that specialize in the development of efficient retail
distribution networks. For example, one wholesaler may have developed a comprehensive retail
distribution channel throughout a particular region for a certain type of product. Manufacturers who
make such products may be able to greatly expand their market reach in a single point of contact by
contracting with the wholesaler, rather than trying to develop the supply chain on their own.

Channel

The entire value chain begins at the factory, where the products are produced according to the demand
estimated by data gathered through intensive distribution. These products are stored at a Carrying and
Forwarding Agent. CFA forms an important part of the value chain as it is solely responsible for
distributing the right products to the right market. The sorting of product mix is performed by CFA who
then transports the products to the distributor based on their respective requirements. The retailer
places an order with the distributor according to the demands in his region. If the product is in stock, the
distributor transports the order to the retailer; else it in turn places an order with the CFA for the
products. Once the retailer receives the products, he stacks the products in the shelves based on the
dealing done with the sales representative of the company. Finally, the consumer initiates the
transaction with the retailer and completes the purchase by buying the products.

 Promotion Strategy for Health Mix

Positioning Statement :

To health & diet conscious people looking for healthy food on the go , “Health mix” provides
dietary solutions that gives you the perfect healthy and balanced lifestyle to stay fit even on the
go.

Reach ( R ) – The number of different persons or households exposed to a particular meadia

schedule at least once during a specified time period.

Frequency- The number of times that an average household is exposed to the message

Impact – The qualitative value of exposre

Total Number of Exposure – E= RxF

Weighted exposure WE= RxFxI

Promotion Options

1)Public Spaces – Our target audience and consumer profile will get our customer to
Movie halls, Gym, sports arena , office, Transit bus stands, metro bill boards and jogging
tracks/ public parks.
My product promotion can aslo happen in form of stickers on fruits at super
markets/hyper market.

2) TV advertisement- Based upon our target audience . We would advertise on Sports
and Lifestyle channels .
Reach for Star Sports – 16.13 crore/ week reach = 13.5%
Reach for TLC , NDTV goodtimes, Food Food combined = 12 .25/crore
Doing an analysis for star sports
 Frequency = 3 /day
GRP= E= 13.5 * 3 = 40.5
Minimum Billing per week = 5000 *7 = 35000 INR ( source official website)

3) Magazines - Will promote the product on leading fitness and sports magazines ,
leading national dailies with Pulsing promotion strategy.

4) Product Placement - Placing my product on web episodes by TVF will come for RS
2,00,000 per series.

Promotional appeals used

For advertisements, we will be showing why it is essential for us to imbibe healthy eating
habits through influencer partenership. It will be a rational appeal with proper reasoning as to
why it is necessary.

We will also sponsor it within web series where the characters are shown using it.

Special attention will go for packaging. Sky blue and Pink-colored packaging will be used
showing lightness and activeness with the product