Download - 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
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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…..
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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
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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.
Communication Strategy
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• In Chile, cabs very expensive & sketchy, Bus’s crowded & limited routes, Train system out of date & most railroads out of commission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
Communication Strategy
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
Airport Advertisements
Airport Advertisements
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
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
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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
Example: Travel Blog Ad
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Example: Travel Blog Review
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Profit with a Purpose
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
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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
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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)
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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
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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
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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.
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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