lifestraw chile pres

Group 2Patrick Donnelly, Meghan Gattas, Jasmine Williams,

Elizabeth Duffey

Agenda

Recap from first presentation Product Info, Chile, Target Market, Positioning

Statement

Communication Strategy

Pricing Strategy

Distribution Strategy

Filters at least 1000L

Removes 99.999% of waterborne bacteria

Removes 99.9% of waterborne parasites

Contains no chemicals

Requires no electrical power, batteries or replacement parts

**Adding Spanish to instructions

1

Who’s Using the Product? People without access to clean water source

Outdoor enthusiasts Backpackers, hikers, tourists, campers,

outdoorsmen, hunters, safari, road trips, emergency preparedness 1

Why Chile…..

2, 4

Most competitive and fundamentally sound economy in South America

Maintained friendly relations with the United States since its transition back to civilian democratic rule in 1990

United States-Chile Free Trade Agreement (2004)

Target Market

10

Primary TargetTourists

-More than 3.6 million foreigners visit Chile spending nearly 2 billion USD/year

-High income and high level of education

Adventure Seekers-travelers who pursue outdoor activities

Position StatementFor outdoor enthusiasts that need immediate and convenient access to drinkable, uncontaminated water. LifeStraw is a lightweight water filtration system that instantly provides pure, sterilized water in times of need. Unlike other water filtration systems, LifeStraw is the most effective and portable filtration system currently on the market.


Focus Advertising on Transportation• The best way to reach our target market is to focus

communications on transportation outlets including airports, subway, ferries.

• Best condition, most commonly used methods of transportation in Chile for tourists. This is how our target market will get around when they are in Chile.

• In Chile, cabs very expensive & sketchy, Bus’s crowded & limited routes, Train system out of date & most railroads out of commission

• Use GlobalTransportation Advertising Agencies to place media, hire consultant from Chile to assist with translations/culture issues

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=8ofZJFig1Pmm-M&tbnid=GBbQz_LBB2M8eM:&ved=0CAUQjRw&url=http://www.tripadvisor.com/Attraction_Review-g41565-d2067453-Reviews-Island_Queen_Ferry-Falmouth_Cape_Cod_Massachusetts.html&ei=7cqAUsPcCqbi4AOayYGACw&bvm=bv.56146854,d.dmg&psig=AFQjCNFsqwbl9Ozu_r3x4QtVFXyco4r-nw&ust=1384258644240752


Increase Brand Awareness Through Social Media and Discounts Facebook, Twitter, Instagram campaigns Point of Purchase Discounts and Product Trials in major retail

storesBuild Positive Brand Image “Profit with a Purpose” Lifestraw’s mission is to create profit with purpose During slow tourism months, spend time working with

UNICEF to get Lifestraw’s at discounted prices to people in disaster prone areas

Work with local philanthropies & relief organizations volunteering & donating products

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=muvtxGEoFwAABM&tbnid=0wzQhmO5W646nM:&ved=0CAUQjRw&url=http://loadoutroom.com/6998/lifestraw-cant-go-without-water/&ei=GdyAUuuQEpan4APX6IBo&bvm=bv.56146854,d.dmg&psig=AFQjCNH0GHtnJJ9dPojplWEXadUU-eNFJA&ust=1384263054288267

Airport Advertisements

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=JImT-mhuB1nZRM&tbnid=IwRK031gW6ZOEM:&ved=0CAUQjRw&url=http://totalprepare.ca/product/lifestraw-personal-water-filter/&ei=GkWAUr_kDeT84AOmyIDwDg&bvm=bv.56146854,d.dmg&psig=AFQjCNGrmVmxgfjgoDlEP2N5FekR6qJ2hg&ust=1384224084453912


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=-gmRqPY7-9lnQM&tbnid=h7mLpolO9l5yDM:&ved=0CAUQjRw&url=http://www.jcdecauxna.com/airport/property/william-p-hobby-airport&ei=a0OAUu2LLJGo4AP-gYHIBQ&bvm=bv.56146854,d.dmg&psig=AFQjCNHZB3_dcBxhiNGJdWF23_R83mnlHg&ust=1384223911916954

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=8a9sZNcPCNRDEM&tbnid=L8GA-73Q2QnK4M:&ved=0CAUQjRw&url=http://www.instash.com/lifestraw&ei=fkWAUqnyKfap4AOawoH4Bg&bvm=bv.56146854,d.dmg&psig=AFQjCNGrmVmxgfjgoDlEP2N5FekR6qJ2hg&ust=1384224084453912


Airports most common method of transportation

Airport Advertisements offer very high ROI per square foot Compared to Billboard or Print

Advertisements Very effective use of

Marketing budget because many people see ads and they only cost a reasonable monthly base fee

73% of frequent flyers take the time to read airport advertising messages

-Majority of our Target Market will be entering the country by airplane.

-Ads will be in all 7 major airports

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=wA5wtt4CuYvWMM&tbnid=GujEWzTOWyewWM:&ved=0CAUQjRw&url=http://www.dynamicsns.com/advertising.html&ei=T0iAUqvwF-7-4AO4-ICICQ&bvm=bv.56146854,d.dmg&psig=AFQjCNEg4t_xxMhG5LRlazoj8XOl-kiTzg&ust=1384225222706165

Subway & Ferry Advertisements

Chile has 2,700+ miles of coastline

Ferry is common method of travel between cities

Very popular tourist activity

Subway is most efficient way to travel around Santiago

Majority of travelers stay in/around Santiago and take excursions out their tourist destinations during the day

5,7

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=4Xv8WlkeZ84i8M&tbnid=4yY9NbKDY8IOUM:&ved=0CAUQjRw&url=http://www.moneygram.com/MGICorp/MediaRelations/Multi-mediaGallery/Advertising/index.htm&ei=h9yAUpD8D8XJ4AP2woHgCw&bvm=bv.56146854,d.dmg&psig=AFQjCNEcBBTezI2aADNcmHEPhH9TkJg0TA&ust=1384263152134716

Promotion

• Offer 20% Discounts for “Likes” on Facebook• Monthly photo contests for travel/tourism prizes using

#Lifestraw • Build Audience on Facebook

• Run Facebook/Twitter Ad Campaigns – Target Adventure Seekers and people in our target market

Promotion

Discounts & Product Trials In Store Product Trials Point of Purchase

Discount Displays Buy One Get One Free

For first 6 months in Chilean Market

Offer 20% off discounts through travel blogs Many people look to

travel blogs to plan vacations/activities

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=crVtY0QLqCfy-M&tbnid=icDpQooM3j81sM:&ved=0CAUQjRw&url=http://www.newcastlenow.org/index.php/article/new_eeew_._._._whats_that_youre_drinking_water_from_a_fish_tank&ei=C0SAUsmaJs-34AP33IC4Dg&bvm=bv.56146854,d.dmg&psig=AFQjCNGrmVmxgfjgoDlEP2N5FekR6qJ2hg&ust=1384224084453912

Example: Travel Blog Ad

6

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=wL4N0e2kYgtDwM&tbnid=HMf0libhNrL5AM:&ved=0CAUQjRw&url=http://www.prep-blog.com/2013/10/25/weekly-survival-reader-oct-21-to-25/&ei=SdGAUs3aJ8W14AOJlICwDA&bvm=bv.56146854,d.dmg&psig=AFQjCNEPgW1HCclZrODl9peKQc70CzKnoA&ust=1384260292470048

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=wL4N0e2kYgtDwM&tbnid=HMf0libhNrL5AM:&ved=0CAUQjRw&url=http://www.prep-blog.com/2013/10/25/weekly-survival-reader-oct-21-to-25/&ei=SdGAUs3aJ8W14AOJlICwDA&bvm=bv.56146854,d.dmg&psig=AFQjCNEPgW1HCclZrODl9peKQc70CzKnoA&ust=1384260292470048

Example: Travel Blog Review

13

Profit with a Purpose

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=ggbwSkHN2OvqaM&tbnid=X69Os4l6KcqwrM:&ved=0CAUQjRw&url=http://www.marketplace.org/topics/tech/seeing-crisis-opportunity&ei=n9WAUu3xN7Dk4AO0qYDIDQ&bvm=bv.56146854,d.dmg&psig=AFQjCNGNoVAJL3krwDNNFAzAgRfWOx2gAQ&ust=1384261372112095

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=N0RUcoB-ywwpRM&tbnid=wW834bTyi87IsM:&ved=0CAUQjRw&url=http://lifestraw-products.co.uk/lifestraw-products-lifestraw-family-go/&ei=19WAUpDoDvW14APlrYGAAQ&bvm=bv.56146854,d.dmg&psig=AFQjCNGNoVAJL3krwDNNFAzAgRfWOx2gAQ&ust=1384261372112095

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=y6TK8aDcDROtmM&tbnid=Gh_ajCQ5cFKV-M:&ved=0CAUQjRw&url=http://www.amazon.com/Vestergaard-Frandsen-527950-LifeStraw-Personal-Filter/dp/B006QF3TW4&ei=-tWAUua2LPX84APuh4GYAw&bvm=bv.56146854,d.dmg&psig=AFQjCNGNoVAJL3krwDNNFAzAgRfWOx2gAQ&ust=1384261372112095

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=y-e5MZ2jmxt1bM&tbnid=2ZcdTw6eBWrOLM:&ved=0CAUQjRw&url=http://www.medgadget.com/2011/12/lifestraw-saving-lives-sometimes-by-saving-the-environment.html&ei=M9aAUpeAM9Lk4AOL24DwDA&bvm=bv.56146854,d.dmg&psig=AFQjCNGNoVAJL3krwDNNFAzAgRfWOx2gAQ&ust=1384261372112095

Pricing Strategy Use market price

strategy to benchmark our price off of North America price ($19.95) because foreign travelers to Chile typically have high income levels

19.95 USD = 9,965.42 CLP

Big Mac Index: $4.56 USD = 3.94 CLP

CLP is undervalued 13.6% in comparison to the dollar

Chile has a value added tax of 19%

Overall price = (9,965.42*.19) + 9,965.42= 11,858.85 CLP

8,9

Estimated Demand 7% of all foreign

travelers to Chile are Adventure seekers

Approximately 3.6 million foreign travelers to Chile/year

.07*3.6 million = 252,000 is the target segment

If 252,000 people purchase one LifeStraw at $19.95, we would gain $5.04 million in revenues

Retail Strategy: Falabella

10,14

Seasonal Pricing Strategy LifeStraw is a humanitarian enterprise,

and giving back is a corporate objective In the winter months (June-September),

the majority of trails in Patagonia are closed; therefore, there are not any tourists

We want to focus on selling and distributing our products to humanitarian efforts, such as Unicef, for the unit price ($5 USD)

11,12

Purchase order of 20,000 units to sell in 9 different locations in Santiago, Chile

2,222 units sold per store location

Market = 252,000 customers

Costs of Ocean Freight Shipping Lifestraw Display = 1

cubic ft. at 3lbs each and holds 15 units

1 container = 19,200 units = $384,000 value

Cost at Market Rate

= $2,842.86 – $3,141.77

1

3PL Services – APL Logistics APL Logistics will take product from port of

Valparaiso to Falabella DC’s where they will hold inventory and distribute to retail stores in Santiago, Chile.

16, 17

Perceived Difficulties Communication – Lifestraw offices in Brazil 3PL - APL Logistics Lead times with Ocean Freight Customer Relations Language Barriers Reaching Target Market Substitute Water Filtration Systems

References 1. http://www.vestergaard-frandsen.com/lifestraw 2.<http://www.chile.travel/en/about-chile/the-chilean-people.html 3. http://www.kpmg.de/docs/2012-01-kpmg-doing-business-in-chile.pdf 4.http://www.portal.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx 5. http://www.perceptivetravel.com/adrates.html 6. http://www.nomadicmatt.com/travel-blog/ 7. http://www.joeskitchen.com/chile/travel/airports.htm 8. http://www.economist.com/content/big-mac-index 9.http://www.pwc.com/es_CL/cl/publicaciones/assets/doingbusiness.pdf 10. http://www.falabella.com/falabella-cl/static/staticContent1.jsp?

active=5&id=cat30063 11. http://www.buylifestraw.com/the-cause 12. http://bluelivingideas.com/2009/04/13/lifestraw-water-filter-provides-clean-water-

year/ 13. http://www.survivalcommonsense.com/ 14. http://fashionbi.com/newspaper/growing-retail-companies-in-south-america 15. http://emerging-markets-research.hktdc.com/business-news/article/Chile/Sell-to-

South-America-sell-to-Chile/rp/en/1/1X4SR4ZP/1X09TRYT.htm 16. http://www.universalcargo.com/blog/bid/71724/4-Factors-for-Considering-Air-

Freight-vs-Ocean-Freight 17. http://worldfreightrates.com/en/freight

http://www.universalcargo.com/blog/bid/71724/4-Factors-for-Considering-Air-Freight-vs-Ocean-Freight