Chemical Solutions Inc.

A Five Year Marketing Strategy

Benjamin Sanders

History

Chemical Solutions Inc. (CSI) was founded in 2009. It was

started by cofounders Benjamin Sanders and Dr. Joseph

Alchemy, a chemist, to develop and market NutriMax, a unique

compound placed in chewing gum to curb appetite through

nutritional supplementation, supply the consumer with energy,

and provide fresh breath at the same time. CSI is a limited

liability corporation owned and operated by Mr. Sanders and Dr.

Alchemy, assisted by a small team of dedicated employees.

History Continued… Mr. Sanders previously worked at an entry-level position for

Hershey’s. After collaborating with Dr. Alchemy on the

creation of an excellent nutritional additive

Ben approached his supervisor with the creation. Due to lack

of foresight, upper management did not see the value of the

nutritional substitute additive.

Consequently, Ben left the company and teamed with Dr.

Alchemy to patent their product and form their own enterprise

to pursue future business endeavors. They formed Chemical

Solutions Incorporated and NutriMax Chewing Gum was born.

Company Description- Chemical Solutions Inc.

The NutriMax line was initially launched in the Southeast

Wisconsin market.

It’s high-quality and small product size have gained

acceptance in their current markets. It is a high quality

product that has large growth potential.

CSI has implemented a high-quality, medium-price

strategy that has proven successful thus far.

Headquarters are located in a secret underground bunker

beneath Milwaukee. Facilities are largely automated,

requiring minimal human maintenance.

TechnologyTechnology- Technology is heavily used in

our secret underground production facility. With advanced robotics being utilized,

automated, precise, and efficient work takes place with minimal human supervision required.

Also, the recipe for the additive itself uses protein disbursement technology to create the sensation of the consumer feeling full, while still delivering the essential vitamins and minerals the body needs to sustain itself.

Mission Statement◦““The mission at Chemical Solutions Incorporated is to have fun revolutionizing additives for the benefit of all mankind, all the while honoring ourselves, our customers and our Savior.”

This mission will be achieved by incorporating these values-◦ Corporate & social responsibility◦ Unequivocal excellence in all aspects of the company◦ Science-based innovation◦ Honesty & integrity◦ Profit, but profit from work that benefits humanity

Keys To SuccessRefusal to accept anything less than

the absolute best from ourselves and from our product

Aggressive but tactful acquisition of government accounts

Positively acclimating the public to the idea of a nutrient supplemented gum additive

Build brand valueEstablish ourselves as an industry

leader in innovation and profitability

Goals For the coming five years, CSI seeks to achieve the following goals:

Refusal to accept anything less than the absolute best from ourselves and from our

product and retain our image as the leading innovator in gum-based supplements

Aggressive but tactful acquisition of government accounts, aiming for at least one

additional government contract per year for the next five years

Positively acclimating the public to the idea of a nutrient supplemented gum additive

Build brand value

Establish ourselves as an industry leader in innovation and profitability

Add a new product line by the end of the fifth year

Core Competency

In terms of core competency, CSI seeks to

(1) provide high quality, healthy

supplemental gum products to our

customer and

(2) expand past the chewing gum

market and segment into other health

food/beverage mediums.

Sustainable Competitive Advantage At this point, CSI has a rare monopolistic opportunity.

However, after patents expire, and other businesses

realize the products’ successes, imitators are sure to

follow.

The company will work closely with key suppliers and

distributors to build business relationships and foster

partnerships that will allow CSI to maintain its status as an

industry leader.

Dr. Alchemy is also diligently working on R&D to further

sustain CSI’s competitive advantage

SWOT Analysis•Strengths: Difficult barriers to entry, unique product, large target markets, cheap to produce, low storage and shipping costs, currently protected by patents

•Weaknesses: Public Skepticism, potential health questions, growth restrictions within company, new product hesitation, and high cost to the customer, equipment issues, patents will expire.

•Opportunities: Expansion into other food markets, buying our competitors, working with governments, and expansion into worldwide markets.

•Threats: Patent expiration, improvements on our product by rivals

Industry Analysis

Sales of energy drinks in the United States were $3.5 billion in 2005

The nutritional supplements market was valued at over $68 billion

worldwide and demand is expected to grow about 12 percent by

2011

The demand in the supplement category is driven by baby

boomers, the fastest-growing consumer demographic in the U.S.

market, now making up 60 percent of the supplements buyers.”

(Nutrition Business Journal)

However, there is a drastically high rate of new product entry in the

weight management segment which is requiring new industry

participants to adopt proactive strategies.

Bars

Shakes

Weight Loss Pills

Vitamins

Protein

Gum

Market Segmentation

Further AnalysisFrom an overall growth perspective,

U.S. consumer sales of dietary supplements lagged those of other nutrition industry categories.

Yet, of all the categories, supplements were the only one to actually grow more in 2008 than in 2007. Nutrition Business Journal estimates show that total U.S. consumer sales of dietary supplements expanded 6.2% to $25.2 billion last year.

Competitors in the Market

Our product is the only one like it in the market.

CSI holds the patent to NutriMax and is currently dominating this small niche market of health chewing gum.

Potential competitors in the dietary industry include health bars manufacturers, specifically Clif Bars, Odwalla Bars, and Power Bars Harvest due to their calorie, fat, sugar, and carbohydrates ratios.

Health shake products such as Myoplex, Slimfast, and Whey shakes could present competition due to their high nutritional value.

Company AnalysisTechnology is a heavily used

resource in CSI’s underground production facility.

With advanced robotics being utilized- automated, precise, and efficient work takes place with minimal human supervision required.

Customer Analysis Women are a significant consumer group for the supplements

market, because of their unique health needs and because they tend

to make most of the purchasing decisions in the home. In general

women tend to pay more attention to preventative health care.

The nutritional supplement needs of female consumers differ

depending on the stage in their lives. Women over 50 are consumers

of supplements for bone health, pre-menopause and menopause

symptoms, as well as products for heart health.

Consumers of both genders in the 18 – 29 year old age group are

major consumers of vitamin-fortified food and beverages, and

energy, sports and weight-loss supplements.

Product DescriptionNutriMax is a nutritional additive

administered to chewing gum composed of proteins, amino acids, minerals, and vitamins.

the recipe for the additive itself uses protein disbursement technology to create the sensation of the consumer feeling full, while still delivering the essential vitamins and minerals the body needs to sustain itself.

Product

Raw materials harvested to make our additive

include-

Gum Base - chicle, mastiche (organic), rubber

(synthetic)

Softeners - are added to maintain moisture

Sweeteners - xylitol, sorbitol, mannitol and

aspartame◦ It is worth noting that frequent gum swallowing may contribute to the formation

of a bezoar or enterolith, which is a sort of intestinal stone; however, this is not a

problem at CSI, as the elements that cause these symptoms have been removed

from our product.

Product Strategy

NutriMax chewing gum will be made available

in four flavors- bubble gum, spearmint,

peppermint, and cinnamon. Product strategy

is especially important at CSI because the

breath enhancement present in NutriMax is

one of the key points of difference.

One stick of gum is equivalent to a light meal

with 1.5 servings of fruits and vegetables

Location, Location, Location (Place)Company Location & Facilities-

Headquarters are located in secret underground bunker beneath Milwaukee, WI.

Facilities are largely automated, requiring minimal human maintenance.

Price Strategy

NutriMax will be priced competitively with traditional chewing gum. A pack of NutriMax chewing gum $1.50 for a 12 stick pack.

Five packs are also made available for $5.00. The added nutritional benefits of NutriMax should provide a competitive edge.

Promotion Strategy Mailer samplers will be sent out with direct mail marketing promotions.

Customers will also receive a coupon for .50 cents off a pack of NutriMax.

Coupons will be sent out in summer and winter. Also, samples will be

available at trade shows, specifically those related to health and fitness.

Print ads with the same .50 cent coupon in the mailer will also appear in

local newspapers within the target market.

CSI will set up demonstrations with samples at carnivals and concerts.

CSI will also advertise on the food network and during health shows to

reach our target market.

A celebrity endorsement is not financially responsible at this time.

Distribution Strategy-

NutriMax chewing gum is distributed in

current markets through a food

distributor.

If company expansion proceeds as

expected, negotiations will be made with

a broker to sell NutriMax to retail chains,

grocery stores, and convenience stores.

Competitive Comparison

Competitive Comparison- At this point we have a rare monopolistic opportunity. However, after patents expire, and other businesses realize our vast successes, imitators are sure to follow.

Competition (Potential)Health Bars: Buying pattern to

increase in next five yearsHealth Shakes: Consumption

based on fads.Protein/Supplement Powders:

Demand 18-30 year oldsWeight Loss Pills: Demand based

on regulation by FDA and FTA

Points of Difference CSI’s competitive edge is largely based on the fact that NutriMax is

the only product of its kind in the huge and still growing health

industry. No other company has the formula for NutriMax. CSI has

patents and other legal safeguards on the product. Additional

points of difference include-

- Breath Enhancement- Coffee or energy drinks makes breath taste

bad, NutriMax does the opposite

- Easily transportable, gum fits in your pocket, convenient, no

spilling

- NutriMax is a nutritional supplement, does not curb appetite (like

Hoodia for example), rather it satisfies appetite

Market NeedsThe Dietary Supplement Market’s

current needs are:• A product that is safe and all natural• A product that is easy (and fast) to

consume• A product that is affordable• A product with nutritional benefits• A product with low amounts in fat, sugar,

and carbs• A product that will encourage and aid in

weight loss

Market Trends

Current Market Trends include:◦Easily loosing weight◦Fitness accessories/supplements◦Multivitamins specifically designed

for: Baby Boomers Women Older women 18-29 year olds

Market Growth

Implementation Sales StrategyOur product will be able to ride the

ever-increasing health trend wave. What we need to do is sell our company.

In order to do that we need to be

available whenever our customers need us to answer any questions or address any concerns.

Our service and support is what will set our sales strategy apart along with our unique product.

Cash Flow (monthly)Description Amount (in

$) Totals

Cash Flow from Operations +57,869

Sales (paid in cash) +84,000

Supplies/Materials -416

Monthly Salaries -23,333

Ingredients -233

Operations -300

Shipping Expense -29

Legal Expenses -2,000

Cash Flow from Investments -4,000

Equipment Maintenance -1,667

Insurance -2,333

Cash Flow from Loan Repayments

-1,343

Bank Loan Repayment -1,343

Total: +52,526

Questions?