Professional Documents
Culture Documents
Overo Flower Tea
Overo Flower Tea
Overo Flower Tea
Claudia Durand
Alejandra Roncagliolo
Omar Rueda
Stefany Salcedo
Table of Contents
1. Product description and
characteristics
2. Market description
3. Value proposition
4. External analysis
5. Objectives
6. Financial analysis
7. Marketing plan
8. Marketing mix
9. Channels of distribution
Product
1 description
Origin: Ecuador,
Polinesia, Perú (La
Libertad)
Medical properties:
treatment of liver
problems,
gastrointestinal
disorders, among
others
Way of consumption:
place a tea bug in a cup Boxes of 50 filter sachets
with boiling wáter and each.
stand for 2 minutes.
Characteristics: Intense
yellow color, with a sui Weight of filter sachets: 8
generis odor, slightly bitter grams each
taste, smooth texture
Market
description
01 04
Thanks to the Free Trade Growth of older population (60 at 01
Agreement between Peru and older age).
Chile, the liberalization of 100% of Euromonitor (2018) notes that the
exports facilitates all trade aging society in Chile will increase the
between both countries. demand for tea that offers health 06 02
benefits and functional attributes.
02 05
Health and wellness trends and the According to Euromonitor (2018), in 2017
the size of the infusions market was
CHILE
willingness of Chilean customers to
pay more for a Premium product, estimated at 649.7 million dollars,
encouraging the launch of products presenting a growth of 3.72% compared
with greater benefits and different to previous years and a weighted annual
growth of 1.053% for the period of 2012-
attributes.
2017.
05 03
03 06
The increase in purchasing power According to all these factors, chile 04
allows Chilean consumers to invest is chosen as our potential market.
more in health and education.
Consumer profile
DEMOGRAPHIC BEHAVIORAL
• Age: Between 35+ • Expectation: Inclination
• Gender: Male and for health care, welfare
female and image. Concern
• Socioeconomic level: for good nutrition.
A and B
GEOGRAPHICAL PSYCHOGRAPHIC
• Country: Chile • Interests: In search of
• Points of sale: innovative products,
Supermarkets, health with superior benefits
food stores and quality.
(biomarkets), naturist • Preference for natural
fairs products, organic
CUSTOMER EMPATHY MAP
Competitors
market
Directed to a small group of
Best-Cost people with special
Provider Strategy requirements as it is the old
Overo population that presents
Flower tea liver problems and also
A Narrow Buyer bag people that takes care of
Segment(or their health and that are
Market Niche) Focused Low-Cost Focused Differentiation willing to pay a higher price
Strategy Strategy for a premium product.
Growth strategies
Customer Benefits
Use
Natural and organic product for
people who has health It is consumed at any time of
problems (liver). the year, and any time of the
day. Also can be use for
consumers who have stomach
pains.
Easier to prepare than
traditional overo flower infusion.
Value
3 proposition
Value proposition canvas
• Time Saving
• Easier to obtain (accessibility)
• More properties than usual teas
• No added sugar • Health benefits and
• Innovative flavor healthy lifestyles
• Reduce liver problems • Novelty
• Overo
• Functional utility.
flower tea
• Reduction of time
bag
when preparing
overo flower tea.
• Make the product
more accesible and
• Natural and easy to find.
Organic • Reduce/eliminate • Takes a long time to prepare de
traditional overo flower tea.
liver problems • Other infusions don´t have the
properties they are looking for
• Affordable Price • Same as other teas.
• Quality product • Difficult to find this medicinal herb
• No side effects
• Easier to prepare
External
analysis
F
e Conventional
The no use of chemicals and
% e nutritional value of our
O d product are what
F i differentiate us from our
C n competitors.
H g
E
R
M
I e
C s
A o
L u
S r
c
Organic
e
s
Nutritional Value Low to High
PEST analysis
PIC (Product Innovation Charter)
PIC (Product Innovation Charter)
Our Company recognize a high potential consumption of filters in Chile. This
country has a positive attitude of buying Peruvian products in the healthy
Background trend. Also it is well known for having one of the bigger PIB per capita in the
region. (15,346.45 USD).
Our Company select and process a medicinal plant and turn in into a filter,
FOCUS The added value we offer is an easy product to consume with potential benefits for
the final consumer.
Care will be taken to check out all the process of selection of the
GUIDELINES products to offer the best products to our consumers in order to make a
difference with other companies that use and produce any kind of plant.
Hofstede Insights: Country comparison
Power distance
Organizational
arrangements show
taller pyramids and
The extent to which the less low degrees of
powerful members of institutions delegation. Status
and organizations within a Score symbols are used to Actions
country expect and accept that underline power
power is distributed unequally. differences
63 We have to
negotiate only with
the people that are
in the top of the
pyramids.
Definition CHILE
Uncertainty Avoidance
DEFINITION CHILE
The extent to which the These societies show a strong
members of a culture feel need for rules and elaborate
threatened by ambiguous or legal systems in order to
unknown situations and have structure life. Contrary to
created beliefs and institutions general practice in other Latin
that try to avoid these is American countries, Chile
reflected in the score on shows rather low corruption
Uncertainty Avoidance. indices
SCORE ACTIONS
86 Legal system in Chile is really
strict about the products that
arrives to this country so we
need to follow all the policies
or rules that allow us to sell
the product.
Indulgence
Definition
This dimension is defined as the extent to which people try to control their desires and
impulses
Score: 68 score in Indulgence generally exhibit a willingness to realize their impulses and
desires with regard to enjoying life and having fun.
Actions
Quantitative
• Start the sales with a minimum of 70,000 boxes in a year.
• Achieve a stable growth of 10% in first 5 years.
• Reach at least 2% of the market on the first 5 years.
Qualitative
• Be a TOM Company for consumers in the next 10 years.
• Increase the quality of our product mainly in the presentation.
Financial
Analysis
6
Overo flower tea bags financial analysis
List Price: $8
Distributor discounts: $3
Net to Factory: $5
Other discounts:
Promotion:$ 0.5
Quantity : $ 1
Average dollars per unit sold: $4
Production costs:
Explanation of any unique costing procedures being used:
COST OF PRODUCTION
PRICE USD QUANTITY
OVERO FLOWER 21.28 1 KG
PROCESS (grinding, packaging and labeling) 20 13 BOXES
PRICE PER BOX $3.18
Financial Projection
Operational costs
Our operational
costs consists on
selling and
administrative
expenses.
7
Marketing plan
Third phase:
• Strengthening of the • Socialization of the • Search for customer
Realization of the brand product satisfaction
objectives
Marketing mix
8
Marketing mix
4P´s
9
$3.18 PRODUCER
42.18% $5.5
FINAL CONSUMER $8
Intermediary Profit
PRODUCERS
MODERN CHANNELS RETAILERS
Cost:
$3.18 Price to supermarkets &
FINAL CONSUMER
Conveniences Stores
Price with discounts: List Price:
MARGIN: $5.5
To distributors: $8
42.18% MARGIN:
To final consumers:
31.25%
39
Distribution Channel
Why? Because in the process we can focus on the 2 intermediaries, the wholesalers and the convenience store
¿Why we need intermediaries? Because the chilean market it is very competitive in the sector of filters and
we need to find an easy access to this market at the beginining
This channel is one of the most used channels for products wich demand is really big and the
sellers dont have the logistics to sell it in the market
40
Next step
10
Next step fot the NPD
More Presence of
combinations our product in
Offer new of medicinal More the other cities
flavors plants to bring presentations of Chile, and
healthy other potential
benefits. countries
THANK YOU