Executive Summary
Mission Statement:
To establish post-work out fitness bars on
campuses that provides a positive social atmosphere and promotion of healthy
dietary supplements.
The Product:
Cold Fusion: Campus Edition is an independent
distributor for Herbalife International. Cold Fusion is a nutrition club where
customers can enjoy a healthy meal, nutritional advice, and socialization. The
facility provides a coffee shop type atmosphere where customers can stop in for
a healthy meal on the go. Cold Fusion: Campus Edition provides a quick healthy
alternative to a meal, which includes herbal aloe, an herbal tea, and a meal
replacement protein smoothie. This three-step process is a post-work out
replenishment that conditions the muscles. The shot of aloe vera helps with
digestion. The tea, which comes in a variety of flavors, provides a boost of
energy. The protein shake provides a healthy meal with up to 19 essential
vitamins, minerals, and nutrients in several delicious flavors including Peanut
Butter Cup, Apple Pie, and Chocolate Raspberry. Cold Fusion also provides a
social atmosphere that promotes a positive and healthy well being for college
students.
Financials:
These are the costs we have estimated Cold
Fusion to have:
·
$50,000 estimation to make
tenant improvements to part of the current Franks Lounge into our Cold Fusion
·
$5,000 Advertisement Fees
in order to put our strategy in motion.
·
$ 10,000 start-up fees
for food, utensils, getting labeled products, etc.
To pay the Venture Capitalists back, we will
charge add an additional $5 to every student’s tuition. With 7,500
students, this minimal cost would generate $37,500 a year. This, along with
sales we make from our $6 meals, will be able to cover out costs in a short
amount of time. After they are covered, be generating a profit for the
university every year.
Strategies:
Currently, there is an extensive training and
research structure in place to allow for sharing of successful business
marketing strategies in the Nutrition Club. Members of the Nutrition Club hold
weekly regional and local conference calls to allow for the exchange of
marketing and advertising ideas in the personal wellness category. Business
generation will come from: Personal invitations, pre-open sampling of products
for faculty, referrals by existing customers, business-to-business marketing,
new member coupons, placement of a "Senior Day" with free products to
promote upper-classmen popularity, word-of-mouth marketing, posting
advertisements in public places like the gym, on campus eateries, and computer
labs. We understand that to stimulate word-of-mouth marketing the Cold Fusion
brand needs customer loyalty; we plan to provide incentives to customers with
product samples at on-campus farmers markets and coupons.
Background and Situational Analysis
Need:
It is easy for students to turn to unhealthy
food choices with such busy schedules, especially during midterms and finals.
USD does not currently provide a facility in which students can indulge in a
healthy meal in the short time frame that they have available for eating. Cold
Fusion will provide students a place to get a healthy meal on the go as well as
promote a healthy lifestyle and encourage students to work out and keep in
shape. This product is perfect for a college campus because of its on-the-go
nature. Students can grab a shake on the run and even bring them to class. This
ensures that students are getting all of the nutrients and vitamins that they
need through eating all meals of the day. Movements today are towards leading a
healthy life through eating habits and personal fitness as well as minimizing
negative impact on the environment. Cold Fusion: Campus Edition to USD as a way
to promote a healthy lifestyle and to cater to those who contribute to the “Be
Blue, Go Green” movement we already have in place.
Environmental Analysis:
This project will have little impact on the
environment. The major operations of the facility consist of running a blender
and a refrigerator. This does not require a lot of energy and at the same time
will not cost very much. Also all of the cups that will be used for the
three-step process will be biodegradable. We will use glass shot glasses for
the aloe shots to avoid using more plastic. Not only will the actual operations
of Cold Fusion have little impact on the environment but also the proposed
location of the facility is in a currently standing building that will require minimal
interior reconstruction.
Competitive Analysis
Competitors:
Competition against Cold Fusion: Campus Edition
is found both on and off campus grounds. Major on-campus competitors are
Missions Cafe, Aromas, La Paloma, and SLP Dining. Off-campus competitors are
Jamba Juice and Starbucks. We feel that Missions Cafe has the majority market
share of our target market on campus.
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SWOT Analysis on Major Competitors:
Missions Café
· Strength-
Located directly beneath the Fitness Center, so they are able to penetrate that
market of customers as well; They have a vast variety of both food and drink
offerings;
Conveniently located in the Valley so they are able to grab the people who live
in that area (freshmen)
· Weakness-
Do not offer any nutritional advice; Do not cater to those who use the Fitness
Center by providing post-workout replenishment
· Opportunities-
Being located directly beneath the fitness center, Missions Café has a great
opportunity to correlate some of their promotions or activities with the
fitness center, such as a post-workout routine or somehow catering to those who
use the facility.
· Threats-
On-campus dining locations
Jamba Juice
· Strengths-
Healthy niche in the product market; Great customer service: the people behind
the counter are always extremely helpful and kind
· Weaknesses-
Marketing is heavily focused on smoothies: they even offer sandwiches, salads,
and oatmeal for breakfast
· Opportunities-
Jamba has an opportunity to promote healthy nutrition along with promoting
their products.
· Threats-
Other nutritional clubs emerging, especially in the growing industry they must
be very aware to keep up with changing times.
Overcoming the Competition:
Cold Fusion: Campus Edition plans to use the
weaknesses of our competitors to our advantage. Both Missions Cafe and Jamba
Juice are focused on serving healthy food options in a nutritional setting, but
do not offer supplementary nutrition advice. Cold Fusion, however, does offer
nutrition consultations as well as our 3-step post-workout replenishment
program. Missions Cafe has an enormous opportunity to partner up with the
Fitness Center located directly above them. Cold Fusion will correlate
activities with the Fitness Center to target persons who use the facility, as
well as using advertising within the facility to our advantage. Cold Fusion
will also be set apart from the competition by providing a unique atmosphere
which combines a coffee-house type feel with the benefits of a nutrition club
where all customers will feel comfortable. We plan to overcome the
threats of other companies similar to ours by staying up to date on new
developments in the wellness industry. It is currently one of the fastest
growing industries in America, and by taking advantage of this we can stay one
step ahead of our competition both on campus and off.
Marketing Mix
Our product is a simple three-step process for
post workout body replenishment. It will include:
Aloe Shot
Tea (hot or iced)
Protein shake (in a variety of flavors)
Product Need: USD does not currently provide a
facility in which students can indulge in a healthy meal in the short time
frame that they have available for eating. Cold Fusion will provide students a
place to get a healthy meal on the go as well as promote a healthy lifestyle
and encourage students to work out and keep in shape. This product is perfect
for a college campus because of its on-the-go nature. Students can grab a shake
on the run and even bring them to class. This ensures that students are getting
all the nutrients and vitamins that they need through eating all meals of the
day.
Product Positioning and Brand Name:
We aim to position this product as the healthy
substitute that it is. We want students to understand that it is a “healthy”
meal replacement and that the product does not promote any type unhealthy
eating habits. The Cold Fusion name is a trendy and hip spin on the average
juice bar (i.e. Jamba Juice, Juice It Up). We believe that the name will be
appealing to the USD student body and provide a positive environment for them
to hang out in.
Target Market:
• Our primary customers are projected to be USD
students (specifically students who live on campus and/or workout in USD
facilities)
• Other customers may also include: faculty
members, visitors, and alumni.
With USD permission we would like to incorporate
off-campus advertisements and gain a market share from our local San Diego
community
Product Features:
• Nutrition club where customers can enjoy a
healthy meal, nutritional advice, and socialization
• Coffee shop type atmosphere where customers
can stop in for a healthy meal on the go
• We will also sell Herbalife Products
Promotional Strategies will include:
• Personal Invitations
• Pre-Open sampling of products for faculty and
alumni
• Referrals from existing customers
• "Senior Day" to promote
upper-classman popularity
Advertisements on gym equipment, campus
eateries, and computer labs
Personnel Requirements
The personnel requirements for Cold Fusion:
Campus Edition are fairly minimal. As the workspace encompasses a relatively
smaller location, Cold Fusion only requires two employees working per shift,
three shifts per day. This will allow us to cut down on costs as well. As the
location is on the USD campus, we will also implement the Federal Work Study
program in accordance with the University. In this way we will be able to
provide employment to the students themselves and better allow our target
market to become familiar with the product.
