daily king final

RESVERATROL PRODUCT

Angela Chang ‧ Stella Wang ‧ Peter Hsieh ‧ Milton Hsieh ‧ Amy Wang ‧ Bank Santatipak

Practical New Product Development and Marketing

DAILY KING

Content 1.Background & Objective

2.Research Design

3.Questionnaire-Concept Test

4.Consumer Survey Data

5.Marketing Plans

6.Analysis & Forecast

7.Conclusion

1.Background & Objective

BackGround-Found

The English summary, established by Prof. Ebizuka: He isolated a phenolic compound, by crystallization alone!!, from an ether soluble and non-basic fraction of EtOH extracts of Veratrum grandiflorum Loes fil.

collected in Hokkaido Island.(Takaok, 1939)

Practical New Product Development and Marketing Team 1 － Resveratrol Product Daily King

• Trans-resveratrol (4,3′,5′-trihydroxy stilbene)

• Phytoalexins are antimicrobial and often antioxidative substances synthesized de novo by plants that accumulate rapidly at areas of pathogen infection.

(Langcake P. and R.J. Pryve., 1976)

BackGround- Function in Plant


‧ Anti-cancer (Shukla and Singh, 2011),

‧ Extension Yeasts lifespan (Howitz et al.),

‧ Anti-aging (Gruber et al., 2007; Valenzano et al., 2006; Bass et

al., 2007;Agarwal and Baur, 2011 ; Bauer et al., 2004,2006)

BackGround- Function in others


• Animal experiments (Bauer et al., 2008)

• The past five years, Obesity, Diabetes and Metabolic syndrome(Jimenez-Gomex et al., 2013)

BackGround- Function in Animal experiments


U.S.A

New Zealand

Romania

Mexico

Argentina

Canada

Australia

BackGround- Search intensity


GRAPE KING BIO• Start in Taiwan

• Grow up in China

• Revenue $462million NTD

• Last 5 year average grow up 20% over

• Zhongli City, Taoyuan County , TaiwanTechnology Health Hope

BackGround- Our Company


• In 1992, Almost People drink wine, and Found in Wine with more phenolic compounds.

• In 1993, Many paper found drink Red Wine can reduce low density Cholesterol.

BackGround- Conclusion


Why we don’t drink Red wine but use Resveratrol?

2.Research Design

DAILY KING PRODUCT

NT$40 /unit

30 Packets per box

SIZE: 30 mL

Price: NTD 1,200

30Days

“We are REDEFINING YOUTH “


DAILY KING PRODUCT


Target consumer

• Males & females

• Aged 35-75

• Internet

respondents 30-55

• Face-to-face 56-75

Face-to-face

• Central location

• Respondents aged

56-75

Test Concept

• Our new product

• n=310

• With a botanical blend of antioxidants

• DAILY KING is a naturally sweet supplement bursting with exotic fruit juices.

• It contains a host of powerful ingredients that repair free radical damage and protect cells against future harm.

• Your cells stay healthier, live longer, and leave you looking and feeling great.

DAILY KING Feature


Formulated to provide you with all the protection you need, this delicious and nutritious

gel will infuse your body with youthful vitality and a feeling of overall good health.

DAILY KING superstar ingredient, resveratrol, is accompanied by a supporting cast of other

powerful antioxidants like , grapeseed .

DAILY KING Feature


This incredible supplement will jump-start your day!

1. Antioxidants resist oxidative stress and premature aging2. Anthocyanins support healthy cardiovascular function3. Essential fatty acids assist in digestive tract function4. Reinforces a healthy immune system5. Helps maintain a healthy metabolism6. Helps boost energy7. Supports healthy joint function8. Positive cap-e test results indicate that DAILY KING

penetrates and protects live cells from oxidative damage

DAILY KING BENEFITS


• Contains a unique , youth-enhancing combination of tioxidants,

anthocyanins, and essential fatty acids.

• Highly bio-available gel from increases absorbability more than

encapsulated products.

• Fresh fruits are flash frozen to lock in nutrients.

• Low in carbohydrates and sugar; only 13 calories.

• Independent lab tests confirm each packet of DAILY KING

contains a total of over 185mg of resveratrol.

DAILY KING FEATURES


Tablets 10%

Pills 20%

Capsule 30%

Patch 45%

Drinks 50%

Intramuscular 90%

Ionization liquid

drinks

90%

Sublingual

absorption

95%

Suspension Gel

Technology

over 95%

Intravenous 100%

ABSORPTION RATE


3.Questionnaire-Concept Test

Questionnaire-concept test

(1) Yes (2) No

1.How interested would you be in buying the new product you just read?(1) Definitely would buy (2) Probably would buy (3) Might would buy (4) Probably not buy (5) Definitely not buy

2.Which statement describes how much you “like” or “dislike” the product?(1)Like extremely (2) Like very well (3)Like quite well (4)Like slightly (5) Do not like at all

3.Considering the price of product as shown, which statement best describes how you feel about

(1)very good value (2) Fairly good value (3)Average value (4)Somewhat poor value (5) Very poor value

4.Dose this product can solve problems or fulfill needs you have now?

the value of money of this product?

(1) Extremely believe (2) Very believe

(3) Somewhat believe (4) Slightly believe (5) Not at all believe

Questionnaire-concept test cont’d

5. Assuming this product was available in your area, which statement best describes how soon after you become aware that it is available would you make the decision(1) Within one month (2) Between one to 3 months

6. How does this product compare to other offerings now on the market?

(1) Better than other products now on the market

7. How believable, in general, do you think the product offering is?

(3)Between 3 to 6 months (4) Between 6 to 9 months

(5) Between 9 to12 months (6) Between 1 to 2 years

(2) The same as other products now on the market

(3) Worse than other products now on the market

(1) Definitely would recommend (2) Probably would recommend

Questionnaire-concept test cont’d

8.At what types of stores would you expect this new product would be sold?

(1)Supermarket (2) Pharmacy/Drugstore (3) Watson

(4) Convenience store (5) Online

9. How likely would you recommend this product to friends?

(1) Definitely would recommend (2) Probably would recommend

10.If friends recommend this product to you, how you likely would you but it?

(3) Might or might not recommend (4) Probably would not recommend (5) Definitely would not recommend

(3) Might or might not recommend (4) Probably would not recommend (5) Definitely would not recommend

4.Consumer Survey Data

Consumer survey dataConcept Data: Total Sample (after adjusting for)Data collection method – Internet vs. Face to Face

Brand Leader Test Product(n=296) (n=310)

Unit Price (30-Days Supply NT$1,200 NT$1,200

Concept Purchase IntentDefinitely would buy 13.50% 15.90%Probably would buy 30.5 31.4Might/Might not buy 34 33Probably would not buy 18.0 15.1Definitely would not buy 4.0 5.6Overall Liking Mean 3.8 4.1Price/Value 3.4 3.3Uniqueness 3.1 3.6

Compared to other Similar Products

Better 45% 52%Same 21 20Not as good 34 28


5. Marketing Plan

Marketing Plan-Distribution

Special Store Chain Drugstore Pro-Drugstore Hypermarket Internet

North 30 150 150 45 3 30

Middle 4 50 52 25 1 11

South 6 50 51 25 2 12

East 5 1 12 0 3

Distribution/Total 40/47 255/370 254/473 107/167 6/10 56/69

%channel

weighted20% 12.5% 12.5% 10% 15% 17.5% 12.5%

%EoY ACV 87% 75% 75% 70% 65% 90% 100%

channel

weighted* ACV

17.4% 9.375% 9.375% 7% 9.75% 15.75% 12.5%


Media type 35-75 (Age Range)% Weighted

TV 19.1 22.05

News papers 18.5 21.36

Magazine 11.7 13.51

Broadcast 19.7 22.74

Outdoor 17.6 20.32

Internet 8.8

Movie 4.4

Data Resource ：2013 Taiwan Media Agency Association 1GRP=7000NT


Marketing Plan-Distribution

CHANNEL MARKET SHARE % LENGTH COST

TTV 3.18 15seconds commercial

(p.m2000-2100)

45,000

FTV 6.78 37,500

SETTV 3.47 37,500

ETTV 3.32 40,500

Total 160,500

28

Marketing Plan-Media&GRP-TV


Year 2014 2015

Month 10 11 12 1 2 3 4 5 6 7 8 9

Times 30 30 30 20 20 20 20 20 20 20 20 20

GRP (160,500*270)/7000=43,335,000/7000=6190

PAPER SIZE COST

Apple Daily 十全批(全十批) 600,000

China Times 280,000

Liberty Times 480,000

273,000United Daily News

Total 1,633,000

29

Marketing Plan-Media&GRP-Paper


Year 2014 2015

Month 10 11 12 1 2 3 4 5 6 7 8 9

Times 4 4 4 4 4 4 2 2 2 2 2 2

GRP (1,633,000*36)/7000=58,788,000/7000=8398

PAPER Reading Rate% SIZE COST

CW Magazine 4.2 (Full page/NTD) 260,000

Business Weekly 6.5 265,000

Common health 3.1 140,000

Evergreen N/A 120,000

Total 785,000

30

Year 2014 2015

Month 10 11 12 1 2 3 4 5 6 7 8 9

Times 4 4 4 4 4 4 2 2 2 2 2 2

GRP (785,000*36)/7000=28,260,000/7000=4037

Marketing Plan-Media&GRP-Magazine


CHANNEL AREA Percentage LENTH COST

News98 16.8%

KL,TP (Weighted=1,419 thousand p)

3,200-6,000/wave 4,800

Hit Fm 20.1%

TC,CH,NT (Weighted=1,337 thousand p)

3,000-13,500/wave 8,000

KISSRADIO 52.0%

KH,PT (Weighted=1,084 thousand p)

1,400-4,800/wave 3,000

Uforadio 7.3%

Taiwan (Weighted=6,057 thousand p)

4,000-14,000/wave/MON-SAT

4,000-6,000/wave/SUN

9,000

Total 24,800

31

Year 2014 2015

Month 10 11 12 1 2 3 4 5 6 7 8 9

Times 20 20 20 20 20 20 20 20 20 20 20 20

GRP (24,800*240)/7000=5,952,000/7000=850

Marketing Plan-Media&GRP-Broadcast


MODE SIZE COST

Taipei MRT

Light box

150,000~220,000

Times/Face/19,000

Visible size 116(W)*176(H)cm

200,000

Kaohsiung MRT

Light box

160,000 +25,000 Class A stations

(S small Light box/1face)

185,000

Total 385,000

32

Year 2014 2015

Month 10 11 12 1 2 3 4 5 6 7 8 9

Times 1 1 1 1 1 1 1 1 1 1 1 1

GRP (385,000*12)/7000=4,620,000/7000=660


Marketing Plan-Media&GRP- Transportation

MEDIA MODE GRP

TV TTV, FTV, SETTV, ETTV 6190

News Paper Apple Daily, China Times

Liberty Times, United Daily News

8398

Magazine CW Magazine, Business Weekly

Common health, Evergreen

4037

Broadcast News98, Hit Fm

KISSRADIO, Uforadio

850

Transportation Taipei MRT

Kaohsiung MRT

660

Total 20135

Marketing Plan-Media&GRP- Total GRP


TV

31%

News Paper

42%

Magazine

20%

Broadcast

4%Transportation

3%

Media CostTV 43,335,000

News Paper 58,788,000Magazine 28,260,000Broadcast 5,952,000

Transportation 4,620,000Total cost 140,955,000

Marketing Expenses


Marketing Sales Promotion

1 Year Package ,

give you 10%

discount

Buy 1 Year Package ,

give you other month


6.Analysis & Forecast

Consumer survey dataConcept Data: Total Sample (after adjusting for)Data collection method – Internet vs. Face to Face

Brand Leader Test Product(n=296) (n=310)

Unit Price (30-Days Supply NT$1,200 NT$1,200

Concept Purchase IntentDefinitely would buy 13.50% 15.90%Probably would buy 30.5 31.4Might/Might not buy 34 33Probably would not buy 18.0 15.1

Definitely would not buy 4.0 5.6WPI 15.8 16.9Overall Liking Mean 3.8 4.1Price/Value 3.4 3.3Uniqueness 3.1 3.6

Compared to other Similar Products

Better 45% 52%Same 21 20Not as good 34 28

Conversion rate

44.8%18.38.85.45.5

WPI

7.1232%5.74622.9040.81540.308

16.9%


11,997,962 * 6.24% * 1.1 823,540.1 * 36% * 4 * 1.2

=823,540.1 =1,423,077.3

※Trail Rate = WPI * avg Y1 weighted ACV * AW = 16.9% *56.81%*65%=6.24%

Total

volume

Trial volume Repeat volume

Target universe Trial rate Trial unit Triers Repeat rate Repeat unitRepeats / reapter

Analysis & Forecast


Analysis & Forecast -Result

Target universe 11,997,962

Trial volume 823,540

Repeat volume 1,423,077

Analysis & Forecast

Sales Revenue

•(823,540.1+1,423,077.3)*$1200*65%=1,752,361,572

Profit

•1,752,361,572*(1-40%-5%) = 963,798,864.6

•963,798,864.6 – 140,955,000 = 822,843,864.6


7.Conclusion

1. Have Resveratrol better than other fruit

2. 35-75 people got more ad in Broadcast

3. Marketing Total cost $ 140,955,000 NTD

4. Sales Revenue $1,752,361,572 NTD

5. Profit $822,843,864 NTD

6. Should get more track in 56-76 age

Conclusion


Thank for your listening !