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Convenient, Tasty Snacks, Without an Epi-Pen
AllerGanic Convenient, Tasty Snacks, Without an Epi-Pen
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AllerGanic Granola Bars
Allergen Free Granola Bars Omit 8 most common food allergens, including nuts, gluten, soy 15 million American with food allergies 2010 granola bar sales were $1.7 billion Sold in supermarkets, organic grocers, and online retailers Diverse team with a common passion for organic foods
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Why AllerGanic? For consumers with food allergies Food processing makes many foods uneatable Most allergen afflicted individuals spend more time preparing food, and value convenience more
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Potential Market Limiting distribution to the western US Potential market size is 2.8 million consumers Market will grow faster than population due to 3% growth in food allergy population Organic foods growing at 15% annually
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Market Segmentation Primary Segment: Allergen Afflicted individuals Conduct extensive research Spend more time preparing food Shop at organic establishments Sub Segments Parents Young adults
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Market Segmentation Secondary Segment: Gluten-free consumers Similar psychographics to primary segment Shop at chain retailers
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Competition Allergen Free Competitors Brands such as Nonuttin’, Angie’s and Orgran that offer snacks such as trail mix, muffins, crackers, and chips Enjoy Life offers similar products Home made granola bars, fruits and vegetables Established producers exist, but none with a commanding market share Most are regional and local producers
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Competition Organic granola bar competitors Kashi, Nature Valley Have large market share and substantial brand equity Unlikely to compete due to cross contamination
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Product Development Basic product is developed Need to refine exact formula Requires flavor specialist and a month Equipping facilities for production 4-6 weeks
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Marketing Plan Focus on awareness, information, trial use Advertising Banner ads on food websites Full page ads on food articles State excellent taste and allergen free Emphasize convenience
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Marketing Plan Sales Promotions Advertisements direct consumers to website Offer free coupon in exchange for consumer information Spur trial use, build consumer database, and inform expansion decisions
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Marketing Plan Personal Selling Focus on increasing distribution to supermarkets, organic grocers, and online retailers Search Engine Optimization Include many words that consumers will use in search engines
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Administration Staff CFO- Jesse Fisker COO- Zack Hood Marketing and personal selling Phil Howard and Jason Perry
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Industry NAICS: Granola bars and clusters RMA industry averages
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Income Statement 2013 2014 2015 Net Sales 250,000 100% 317,500 403,225
Gross Margin 112,500 45% 169,875 54% 242,741 60% Operating Income (Loss) -20,000 -8% 19,875 6% 61,141 15%
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Selected Balance Sheet
Cash 200,000 Net Fixed Assets 172,000 Total Assets 462,200 Equity 209,400
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Our Needs What: $200,000 Why: Purchase machinery, pay bills
When: 2013, for first 18 months How: 40% of stock, buyback within 10 years for $1,000,000 Or else, what: personal debt by 2014
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Questions?
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