Download BUSINESS PLAN and MARKET ANALYSIS

BUSINESS PLAN
and
MARKET ANALYSIS
for
Nutri-Kake and Frozen Juice
In cooperation with Fresh Farm Ltd.
and
Quick Snaks
Chikako Omaru
Nobue Kitanaka
In
Food Product Development, Spring 2005
Company Description
Farm Fresh Ltd.
Farmers Market PO Box 1807
Belize, Central America
Produce agricultural products.
Company Description
Relationship with Rutgers Product
Development Team:

Development of frozen snack for small
school children:
Nutri-pak – combination of vegetable and fruit
juice with stronger fruit note.
Company Description





Quick Snaks
Processing company owned by Mrs. Fox
Produce consumer items for the resorts
and restaurants.
Prepare lunches for the staff of a local
hospital and several deli.
Breaded shrimps, finger foods, buffets.
Recently purchased a juicing machinery.
Current Situation



Mr. Fox daughter attends private school in
Belize.
She brings healthy lunch made at her
mother’s processing facility.
Mothers of her classmates requested for
supply of healthy lunch.
Current Situation
Parents complain that children refuse to eat
vegetables/fruits regularly.
Development of nutritious cupcakes made
with fruits and vegetables with
acceptable sensory attributes (visual and
flavor).
Current Situation


Mr. Fox wants to supply school lunch at
charitable effort (low price) - $2.50/lunch.
He wants to sell his “nutritious” cupcakes in the
supermarket to fund for school lunch program.
PROBLEM:
High content of vegetables and fruits result in
microbial spoilage in just few hours, which is not
acceptable for sales in the market.
AIM
To make existing products shelf stable for
sales in supermarkets to create positive
cash flow to provide healthy lunch for local
school children at low price.
Objectives



Determine nutritional requirements for
children between the age of 7 and 14.
Maintain nutritional integrity of the
products.
Find effective preservative(s) for desired
shelf-life.
Constraints
Product
 May need to be fortified to attain
recommended nutritional requirement.
 Product needs to be sugar-free (a touch of
artificial sweetener is permissible).
 Need to be shelf stable
Constraints
Processing
 Number of product that can be produced
per day.
 Number of employee.
Marketing
 May not have enough fund for product
advertisement in supermarkets.
Constraints
Financial
 Limited fund
Company
 Lack of Food Scientist/Nutritionist within the
company.
Environmental
 Lack of help from organizations and other
companies.
Product Description
Nutri-Kake
Ingredients (3 flavors):
1.
Carrot, Papaya, Raisin, Cinnamon
2.
Sweet Potato, Banana, Peanut, Allspice
3.
Squash, Mango, Dried Fruits, Cloves
Common ingredients:
Whole wheat flour, vegetable oil, eggs, nutri-sweet,
vanilla extract, salt, baking soda
Nutri-Kake




The cakes are baked at 325F for 25-39
minutes.
Weight of each cupcake: ~110-120grams
No artificial color, flavoring and
concentrate.
Possibility of nutritional fortification.
Frozen Juice

Vegetable juice whose flavor is masked by
strong fruit flavor.
**no other information is available
regarding this product at this point.
World Trend
http://www.ifpri.org/pubs/fpr/fpr30.pdf
Food Trend in US




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Only 1/3 of dinners prepared from
scratch.
Food preparers want to reduce their
cooking time from 30 to 15 minutes.
Frozen entrees and meals reached
retail sales of $9.3 billion, up 5.8% in
supermarkets.
Two out of ten suppers used more
than one cooking appliance – the
lowest level in NPD’s 20-year database.
One dish meal – half of dinners
Food Technology, April 2003
Food Trend in US
Food Technology, April 2003
World and US Population


Current
World: 6,418,638,812
US:
295,462,659
Projected (2050)
World: 9,190,252,532
http://www.census.gov/
US and NJ Demographics
NJ
US
White
71.1%
74.0%
African American
13.6%
12.4%
Native American
0.3%
0.9%
Asian
6.5%
4.0%
$30,434
$24,733
Earning<$35,000
28.5%
37.3%
Earning>$75,000
39.4%
27.5%
% Below Poverty
14.9%
19.8%
Ethnic Diversity
Income
Per Capita
http://www.locationnj.com/Demog_NJ_General.asp
Belize



Population
Economy
Other General
Information
Population in Belize
Year
1950
2002
2025

Total Population
69,000
236,000
324,000
Ethnic Groups: mestizo 44%, Creole 30%,
Maya 11%, Garifuna 7%, other 8%
School Population

Primary Education Enrolment (2002-2003)
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
59,367
Secondary Education Enrolment (20022003)
14,525
 education is compulsory for 6 to 14 year-old
children.
 about 36% children do not complete primary
school.

Belizean Economy

GDP per Capita: 3,250 USD (36,000USD in
U.S.)

GDP of Agriculture: 18%


GDP of Industry: 24%

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Bananas, coca, citrus, sugarcane; lumber
Garment production, food processing, tourism
GDP of Services: 58%
Health Issues


According to the information from Mr. Fox,
over 65% low income children are anemic.
51.7% of pregnant women who attending
health clinics were anemia (WHO).

For pregnant women, 20% of all maternal
death is caused by anemia
Nutrition
Vitamin
Deficiency
Syndrome
Good Food
Source
Folic Acid
(Folate)
Anemia, diarrhea,
fatigue, depression
Spinach, asparagus,
lima beans, beef liver
Vitamin B12
(cobalamin)
Anemia, skin
hypersensitivity
Meat, fish, shellfish,
poultry, milk
Iron
Anemia, fatigue, sore Organmeants, nuts,
tongue, decreased
legumes, dried fruits
resistance to infection
Source: Advanced nutrition and Human Metabolism, 3rd Edition
Nutritional Needs
age
Wt.
(lb)
Ht.
(in)
Protein (g)
Iron
(mg)
Children
7-10
62
52
28
10
Folate
(μg DFE)
7-10
1.2
200
1.8
300
1.8
300
Male
99
62
45
12
Female
11-14
Vitamin B12
(μg)
Children
Male
11-14
age
11-14
Female
101 62
46
12
11-14
Source:
Food and Nutrition Board, National Academy of Sciences – National Research Council 1989 Recommended Dietary Allowances
Anemia


9 out of 10 anemia patients live in
developing countries
20% of American children and 80% of
children in developing countries become
anemic

Iron deficiency is the main cause in children
Solutions to Anemia

Increase iron intake


iron supplements, iron-rich diets, increasing
iron absorption and fortification
Improve nutritional status.

Control of major nutrient deficiencies, diet
diversification and infection prevention
Additional Information on Belize
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40% of family income is dedicated to food
purchases.
Total imports of food in 2003 totaled $46.6
million.
Has a very small food processing industry,
accounting for less than $15 million.
The only food sectors that have processing are
juices, deli meats and some dairy products.
0% migration rate.
USDA Foreign Agricultural Service
Market Evaluation

Marketing Objective



Educate parents and promote healthy lunch program
Seek help from organizations such as UNICEF –
School Health and Physical Education Services
(SHAPES)
Financial Objective

Distribute products at local store and make profit to
be able to provide lunch at lower price to the school
Target Consumers
1.
2.
School children – who actually consume
the products
Parents – who decide to buy the
products for their children
Projected Sales

Price of lunch: $2.50
($2.00 revenue + $0.50 to school)

Assumed average sales per school: $400

Assumed sales from two schools: $800
Keys for expansion
If company has:
 Ability to produce more products


Positive cash flow from supermarket sales
Demand from other schools for supply of
its healthy lunch
ADVANTAGES
DISADVANTAGES
Government is protective: restricts Large number of people live on
and limits imports – less
islands (part of Belize): extra cost
competition from foreign countries for distribution
Poor health condition of locals and Limited infrastructure such as cold
help from organization such as
storage and cold transport
UNICEF to improve the current
condition
Few players in the food sector
Few players in the food sector
USDA Foreign Agricultural Service
Any Question?