A) Executive Summary

NOVA, was started by co-founders Angelic Matus, Jennifer Lam, Gloria Quartey, and
Malik Wilson to develop, distribute, and sell a signature line of long-lasting flavored caffeinated
gum that will help meet the growing demand for a quick energy boost. NOVA chewing gum was
first introduced into the Dallas, Texas market in 2014.
The primary target market is college students. NOVA gum will reinvent the experience of
quick energy boosts for young adults and college students with discretionary income by selling a
high quality, original and flavorful caffeinated gum at a reasonable price.
NOVA will come in three different long-lasting flavors such as Mint NOVA, Watermelon
NOVA, and Cinnamon NOVA. Each packet will contain eighteen pieces of gum. NOVA plans to
enhance the existing line in the future by adding more flavors such as Cherry NOVA, Strawberry
NOVA, and Blueberry NOVA.
NOVA plans to participate in the energy drink and chewing gum market. The energy
drink industry has a reported market worth of $12.2 billion in sales while the leading chewing
gum has a reported $657.3 million in sales in the US. The main competitor for NOVA in the
chewing gum industry is Wrigley whose sales came up to $524.8 million in the US. The main
competitor for NOVA in the energy drink market is Red Bull which generated sales of about
$3.43 million in the US.
NOVA will use both pull and push strategy, but will primarily use the pull strategy to gain
awareness for its product. It will be positioned as a product that is affordable and long-lasting.
There will be different types of advertising through the marketing campaign to bring awareness
of the product and its benefits. NOVAs promotion strategy will include television advertising, instore samples, and discounts in both convenience stores and retail stores. Coupons will also at
times be included in the products packaging. NOVA chewing gum will be available in retail
stores such as Wal-Mart and convenience stores located on and off college campuses.
NOVA chewing gum has an initial startup cost of approximately $401,928. The expected
revenue for the chewing gum is $388,632. NOVA will evaluate its progress by running surveys
on college campus and by reviewing sales monthly.
NOVA is the newest caffeinated gum in a growing market eager for new caffeine infused
products. The mission of the NOVA Company is to provide its customers with an affordable
portable energy product that will boost his energy levels. The company believes its high quality
and low price strategy will prove to be successful.
B)

Situation and Environmental Analysis

a.) Competitors
NOVAs competitors include two types of products, energy drinks, and chewing gum.
Both the energy drink and chewing gum industries are highly competitive. Price is one of the
most important factors affecting a buying decision in these markets. There are many large name
brand companies in the energy drink and chewing gum industry that NOVA will have to compete
with. As a result, NOVA is focused on creating a more affordable caffeine infused product to
compete with the most popular name brands in both industries.
Energy Drinks. The energy drink market has a market worth of $12.2 billion in sales for the US.
The leading energy brands worldwide based on 2013 sales include Red bull, Monster Energy,
and Rockstar Energy. In fact, in 2013, Red Bull generated the most sales among the most popular
energy drinks with 10.9 in billion US dollars worldwide and $3.43 million in the US. Monster
energy generated 3.8 in billion US dollars worldwide while it sold $3.147 million worth in the
US. As for Rockstar Energy, its sales accumulated up to 1.1 billion US dollars worldwide and
$821 million in the US. One of the major disadvantages of energy drinks is that they are too
expensive for most individuals (especially college students) to buy every single day. According
to Food Navigator, 35% of consumers see them as too expensive.
Chewing gum. According to Confectionery News, The global sugar free chewing gum category
registered a compound annual growth rate (CAGR) of 3% between 2009 and 2013 to reach
$10.6bn. As for functional chewing gum, it registered a compound annual growth rate of 4%
and is said to have reached $2.6bn in 2013 which represents about 13% of the overall gum
market ($19.7bn). In the US, the leading chewing gum had a reported $657.3 million in sales in
2013. The chewing gum industry in the US continues to be dominated by Wrigley. Currently,
competitors do not have an available caffeinated chewing gum.
b.) Economic Factors
The target market for chewing gum consists mostly of young adults. Since the disposable
income of young adults have decreased, the sales in chewing gum have also decreased in 2013.
As for energy drinks, IBIS World stated that The Energy Drink Production industry has
experienced robust growth over the five years to 2014, primarily thanks to rising disposable
income following the recession and consistent demand from core demographic markets.
Because of this recession, it is expected that sales (including NOVA) will decrease in the future.
Due to the trending decreases in sales, NOVA will be priced at a low price (lower than the price
of a typical energy drink and other chewing gum brands) that is affordable for college students.

c.) Cultural/Social Trends

The consumption of energy drinks has quickly risen in the past few years especially
among young adults. Heavy consumers of energy drinks, those who consume energy drinks 5-7
times per month, tend to be adults between the ages of 18-34. About 300 mg of caffeine are
consumed by the Average American in a single work day.
A study done on college students at the University of New Hampshire found that the
average caffeine consumption frequency ranged from 2-6 times per week, depending on their
schedule, amount of work they had. Students tend to find a few advantages of caffeine such as
staying awake to study and finishing assignments to get good grades, and being able to focus.
Although college students enjoy the benefits of caffeine, college students find purchasing
caffeinated beverages everyday can be expensive. As for chewing gum, demographic trends are
affecting the chewing gum industry. Initially, gum relied most on younger consumers.
d.) Impact of Technological Changes
The technology today has the ability to encapsulate any stimulant into a capsule.
Therefore, it is possible to incorporate caffeine into chewing gum. With a water-soluble matrix,
the chewing gum can be incorporated with different milligrams of caffeine. Caffeine is a wellknown stimulant, "used to alleviate the effects of sleep deprivation and combat headache and
fatigue" (Lakkis 185).
With the increasing technology of modifying the hepatic enzyme activity of caffeine,
caffeine can be delivered in chewing gum form. It can even "increase the plasma caffeine levels
and provide a convenient and effect mean of maintaining alertness and performance" (Lakkis
185). The caffeine can be absorbed both in saliva and bloodstream. Because gum itself already
provides the benefits such as the delivery of vitamins and antimicrobial agents, an added amount
of caffeine can truly revolutionize gum.
e.) Political/Legal Factors
Currently in the United States, the legal limit for per 12 liquid ounce in beverages is 65
mg of caffeine. There is also a regulation of 200mg in pills. In recent years surrounding the
controversy of energy drinks, and deaths related to 5Hour Energy and Monster, the FDA has
been notified of effects of overconsumption of caffeine.
Wrigley's withdrew their Alert Energy Caffeine Gum in respect of the FDA. The FDA
may influence NOVA in regarding the proliferation of caffeine in the nation's food supply.
However, if NOVA chooses to incorporate a non-life-threatening amount of caffeine in its
product, approval from the FDA is highly successful. Because NOVA is not an energy drink that
contains massive amounts of caffeine, the risks and deaths from consuming NOVA is very low.

f.) Natural Environment

NOVA will utilize recyclable fiber for its rectangular packaging to help protect the
environment. NOVA will follow the Federal Trade Commission guidelines in regards of its use
for environmental marketing claims, such as degradability, compostability, recyclability, and
ozone safety. The wrappers (of the gum itself) within the packaging will also be made of
recycled content (particularly thin sheets of paper) to help divert from wasting supplies and
materials. Consumers can also recycle NOVA packaging (as indicated on the back of the package
with the FTC approved recycle symbol) instead of discarding it as waste.
C. SWOT Analysis
Table 1 shows the external (opportunities and threats) and internal (strengths and
weaknesses) factors affecting the market opportunities for NOVA.
Internal Factors
Management

Strengths
Board has a solid mission
statement, values, and actions

Offerings

High-quality, low-price products;

Affordable, convenient, and
portable

Marketing

Board are students amongst

primary target market, therefore
can market easily on campus
Tightly-knitted workforce

Personnel
R&D

Efforts (by the board) to ensure

quality in delivered products (by
surveys/asking students'
opinions)

External Factors
Consumer/Social

Opportunities
Stable market, Upscale market
(worth billions in sales)

Competitive

Can be the first successful

popular gum brand that has
caffeine

Technological

Modern technology allows easy

additions of caffeine to gum
(allows potential additions as
well)

Weaknesses
Needs experienced managers and
an experienced board to help
with growth
Many different competitors for
such as energy drinks (Monster)
and chewing Gum (Wrigley's)
companies
No prior awareness (because of
new brand)
Risky if employees leave since
the company is still new
Lack of gum and caffeine
expertise as a staff

Threats
Consumers value a strong brand
name they are familiar with,
consumers might assume product
is not high-quality for its lowprice
Lots of Caffeinated/Energy
Competitors (Monster, Redbull)
Lots of Gum competitors
(Wrigley's, Trident)
Other competitors can utilize the
same technology

Economic
Legal & Regulatory

Convenience and affordable to

all consumers in the U.S.
Can patent the "caffeinated" gum

Gum sales are dropped from last

year; it can continue dropping
FDA can regulate how much
caffeine is allowed in our product
(unforeseen regulations)

Strength Analysis
The main strength of NOVA is a high-quality, low-price caffeine chewing gum. NOVA's strengths
are within its tightly-knitted board and workforce. In addition to a board with a solid mission
statement of satisfying consumers with a more affordable and efficient energy consumption,
NOVA' strengths also lie within the board's environment. Being students themselves, the board
is amongst the primary target market: college students. The board will be able to ensure quality
feedback by this.
Weakness Analysis
In regards to personnel weaknesses, NOVA's board and employees are inexperienced.
Considering NOVA is a new brand, the marketing weakness is that there is no prior awareness
for consumers.
Opportunities Analysis
Threats Analysis

D. Marketing Objectives
NOVA's specific marketing intent is to raise awareness of the next big product in caffeine
consumption - all packed into a convenient, affordable, and long-lasting chewing gum. The
marketing intent is also to build a popular brand in caffeine chewing gum in retail stores. The
measurable marketing objectives are listed below.
Current markets. By the expansion of flavors and brand name, the current market will grow at
the retail level. By having the products in retail stores, consumers can become aware and will
hopefully purchase NOVA repeatedly in future purchases. In addition, primary target consumers
are also exposed with the product also being available on college campuses.
New Markets. By the end of 2015, NOVA will be expanded to a total of three (University of
North Texas, University of Texas at Arlington, and University of Texas at Dallas) universities and
the Dallas & Fort Worth Metropolitan area. Majority of the gum sales will be from these U.S.
(specifically Texas) retailers and universities.
New Products. NOVA will expand at the retail level through the addition of new flavors. The
board will come to an agreement on which new flavors to release to help increase revenue. By
the beginning of 2016, a new flavor should be introduced to help attract consumers. By mid-year
of 2016, the new flavor will be on store shelves for consumer purchases.
E. Target Market
Explain why you chose target market here
Basis of Segmentation
Geographic

Demographic

Segmentation
Variables
Region
City Size
Statistical Area
Density
Gender
Age
Race
Life Stage
Birth Era
Household size
Marital
Income
Education

Typical Breakdowns
Southern
50,000-100,000
Metropolitan
Urban
Both
18-30
All races
Collegiate, Adult
1975-1995
1-3
Never married, Newly married
$0-$70,000
In college, college graduate

Psychographic

Behavioral

Occupation
Personality
Values
Needs
Retail Store Type
Intentions
Current Habits

Professional, student, managerial

Ambitious, hardworking,
compulsive
Strivers, Achievers
Convenience, price, effectiveness
Convenience, supermarket
Awareness, Interested
Mid-to-Heavy coffee and energy
booster consumption

F. Positioning
NOVAs value proposition is affordable, long-lasting, caffeinated chewing gum.
NOVAs penetration pricing supports the positioning objective. By selling NOVA at a low
price compared to its competitors, consumers would purchase NOVA over other brands. NOVAs
TV ads will communicate to consumers about its long-lasting and energetic chewing gum by
mentioning our slogan Chew more, Work less. In addition, TV ads will mention how cheap
and affordable it is for college students and young adults. NOVA will choose retail stores like
Wal-Mart to help sell our products because of Wal-Mart's representation of low prices. This will
help support NOVAs proposition. In addition, NOVA will also be sold at college campuses to
students who always seek low prices.
G. Product
NOVA is the cheaper alternative for quick energy and alertness, all with the freshness and
tastiness of fruity flavors. The three flavors available are Mint, Watermelon, and Cinnamon.
NOVA is package in a rectangular, recyclable package that is portable for carry and easy access.
The package is contains the brand's name, the flavor, and how many pieces are within.
NOVA is unique from other gum competitors in that NOVA is the only gum to be infused
with caffeine and have long-lasting flavors. Current competitors do not have a caffeinated gum.
Currently, there is no substitute for NOVA.
H. Price
NOVA gum is priced at $1.99 (for a 13.6 grams package). The main driver for this low
price is to bring awareness that NOVA is the best alternative for caffeine consumption. Not only
is it cheap, but also it is effective. In addition to its affordability, consumers will want a more
effective gum that serves a better purpose than just flavorful taste.

NOVA is marginally priced lower and is comparatively cheaper than all other gum
brands. NOVA will be using penetration pricing as its stance in competitive positioning. NOVA
will be affordable for its consumers be considering its primary target's values. Because
consumers value how much they spend and their pockets, setting NOVA at low price will help
attract these consumers.
I. Promotion
NOVA will be using both pull and push strategies. Out of the two strategies, NOVA will
be using primarily pull strategy because it is easier to bring awareness to a larger population
NOVA by TV ads, radio advertisement, and coupons over promotional events on university
campuses. NOVA's advertising slogan will be "Chew more, Work Less." NOVA's advertisements
will be geared towards promoting a caffeine gum that is affordable and effective - the best
alternative to any other caffeine consumption.
Television advertisement. Advertising NOVA gum on a large forum such as TV commercials
would be our major marketing strategy by reaching a larger option of the population around the
country. Through this, the mention of our striking slogan Chew More, Work Less would bring
awareness to this alternative way of energy boost to our advantage.
Coupons. Packaging of products would come with coupons so customers are compelled to use
the coupons in buy more of the NOVA. (Shown in Appendix).
Sampling. Samples would be available at check desks for the first week of distribution to the
retail stores. Samples will also be handed out at universities on promotional days.
Radio advertisement. NOVA plans to use pre-recorded commercials especially at the University
radio stations. These will inform the students about when NOVA is on the campus for sale and
promotional days.
Bookmarks. These will be exclusive to college bookstores and libraries. These are only to help
with the college-specific promotions. It will help great a campus culture of caffeine gum chewing
and remind students of NOVAs benefit of alertness for maximum study.
Facebook. A link to the NOVA Facebook page will be included in each box. We expect that
satisfied customers will like our page and share their experiences.
For the first 12 months, NOVA will have a promotion budget of $15,800, which is based
on expected costs for radio advertisements, promotional bookmarks, promotional stands, and for
surveys used on promotional days. NOVA expects to only use these 4 advertisement outlets
during its time promoting at the universities, which comprise its 12-month implementation plan.

The calculations of the budget are listed under Promotion in the cost/revenue projection tables
in the Financial Projections section.
J. Place
NOVA will be distributed by our distributors to retail store such as Wal-Mart and also to
convenience store and bookstore in colleges. NOVA is utilizing this channel distribution because
it is most effective in bringing awareness to NOVA. By having NOVA in retail store shelves,
consumers can consider purchasing NOVA over other gum brands.
The main drivers for motivating these channels to give NOVA shelf-space is the
uniqueness of the brand and the hype of the brand. With a cheaper and new alternative to
caffeine consumptions, consumers will want to purchase NOVA over any other alternative
because it is affordable and effective. It would help with generating revenues in retail stores as
more and more younger consumers would want to purchase the next best caffeine gum product.
K. Implementation Plan
NOVA plans to introduce its product to three Texas universities in the Dallas-Fort Worth
metroplex in 2015. NOVA plans to start off with UTD in the spring and open up to UNT and
UTA in the fall. NOVA believes that these locations will allow it to test the market for its product
and perfect its operations in the most cost effective way. NOVA plans to start with UTD because
it expects UTD to be the most cost effective location. NOVA will use its status as a UTD-student
company for cost advantages and a promotional edge. Successfully introducing NOVA to three
universities will require a dutiful and creative implementation. NOVA plans to primarily use
interactive promotion, radio broadcasting and advertising posters. The dated implementation plan
follows below.
December 2014:
Sign a 12-month lease for the factory for the year 2015.
Request permission to host product at the UTD campus bookstore, coffee shop and
convenience stores.
Make 20 UTD-specific advertisement posters informing students that the product will be
introduced in early spring of 2015.
Ask for the Universitys permission to post advertising posters around the school for free.
Develop 20 posters to promote NOVA at UTD.
Purchase 3 stands for use on promotional days.
January 2015:
Record two 12-second, UTD-specific radio commercials. One (called Tape A) should ask
students to support NOVA and expect its arrival; it should emphasize that the product was

developed by UTDs Jindal students. Another (called Tape B) should ask students to
continue support for NOVA.
Purchase and letter 2 delivery trucks.
Post 20 advertisement posters around UTD. Try to post in near the library, bookstores,
coffee shops, and activity centers.
Send the recording to the UTD radio station and request that it plays Tape A once weekly
from January to March Tape B once weekly from March until the end of the year.
Request a mailing list of all UTD students.
Develop a UTD/NOVA Facebook page.
Send an email to all UTD students informing them of the new product and providing
them a link to the Facebook page.
Purchase and install machines in factory.
Purchase ingredients for gum to cover a third of the 12-month projections.
Develop 300 surveys small sheets of paper.
February:
Prepare factory for production. Hire 10 full-time factory and shipment workers.
Resend the email to all of the UTD students.
Purchase 2 stands for use at a promotional sampling event.
Request permission to host a promotional sampling event in front of the UTD library and
in the UTD activity center.
Produce 1,000 units NOVA for use at a promotional sampling event on campus.
Host one stand outside the library and another inside the activity center for the UTD
promotional sampling event. Give one unit of NOVA gum to the each of the first 500
students that show up to each stand. Emphasize that it is the special secret to more
productive all-nighters. Inform students that it will be fully available for sale in. Invite
students to like the Facebook page.
March:
Start factory for full production and shipment to UTD market.
Ensure that the UTD radio station has switched from Tape A to Tape B.
April:
Develop 1000 NOVA bookmarks that emphasize that NOVA helps give energy for
maximum study.
Sell advertisement space on the Facebook page.
Purchase ingredients for a third of the 12-month projects, or respond to demand.
May:
Ask for permission to host a NOVA Finals Day for two consecutive days in front of the
UTD library.

Develop and send an email to UTD students asking the to join NOVA for the NOVA
Finals Day.
Host two stands for NOVA Finals Day. Give out free NOVA bookmarks to the first
1000 students who show up to the stands. Sell NOVA at the stands for a 20% discount.
Ask 300 students to fill out the paper survey.
Develop and post 20 posters around UTA campus and 20 around UNT campus informing
students the introduction of NOVA in the start of the coming fall semester. Try posting
near the cafeteria, bookstores, coffee shops and activity centers.

June:
Develop 3000 NOVA bookmarks for promotional days at the three campuses.
Create a college-neutral NOVA Facebook page.
July:
Record one 12-second radio commercial (called Tape C) stating that NOVA is on campus,
ready to help students in school.
Request permission to play radio recording once a week for two months, starting on the
first week of classes. Request that NOVA can paster posters around the UTA and UNT
campuses.
Purchase a third of the ingredients to meet the 12-month projections, or respond to
demand.
August:
Ensure that the radio stations are playing the recording.
Start full production and shipment for UTD, UTA and UNT for the semester.
September:
Set aside 3 consecutive days for promotional days at the campuses. One campus per day.
Hand out 1000 free NOVA bookmarks at each school. Encourage students to buy NOVA
at the designated locations on campus. Encourage students to like the Facebook page.
October:
Contact advertising companies and sell more advertising space on the NOVA page.
November:
Look for more markets and cheaper suppliers.
I. Financial Projections
Financial projections were made by first compiling fixed costs incurred to start
production--rent, machines and trucks. NOVA plans to rent small factory space and machines.
The combined cost of factory and machine costs is titled Factory in the tables. The next set of
cost incurred are promotional costs. NOVA has a tentative number of posters and radio
commercials to record; NOVA will use what is planned if it earns a desired sales of 200,000. The

last set of costs were the variable costs of supplies, which NOVA bases on both estimations of
expected sales and sales needed to offset costs. NOVA based the cost of its ingredients on
reported manufacturer prices and the percentage weight of each ingredient--which was based off
of various gum brands and its desired taste and effect.
NOVA expects that gums sales will be its only source of revenue. It can be seen in the
sales revenue chart that sales have a pretty general trend upward throughout the year. The sharp
spike downwards mark the summer months, for which few students are on campus to purchase
NOVA. NOVA expects to reach between 8,000-12,000 students at each campus who will buy 1-3
packages of gum per month. NOVA expects irregular purchases from 5,000-10,000 students at
each campus. If its sales are too low, NOVA will respond with more promotion. The following
charts display revenues and costs. NOVA will incur a loss for the stated period. But the less will
be turned into a gain as December of 2015 comes. Students be on campus preparing for finals.

M. Evaluation and Control

NOVA will evaluate progress by keeping track of monthly sales. In addition, NOVA will
review its progress by surveys by promotional days and Facebook. Progress will be reviewed
annually at the least. Listed below are more specific details.
Sales. Total units sold will be accounted at the end of each month as a method to keep up with
revenue and growth. These figures will be compared with our expected and desired sales rate and
will help NOVA determine if it is on track for a profit, even break or a loss. These numbers will
also be compared with the closest competitors to see how well NOVA is penetrating into the
market.
Surveys. NOVA will host a Facebook page dedicated to the caffeinated gum. Customers will be
allowed to give feedback on the product. NOVA expects to hear about the desirability of the taste
and the effectiveness of the caffeine. It will also posts satisfaction surveys onto the Facebook
page. It plans to use this data to improve the consumer experience. NOVA also plans to conduct
in-person surveys on the college campuses during its promotional days. This activity doubles as a
promotional strategy and an evaluation procedure.