Protein-Energy Malnutrition (PEM) Aka…Protein Calorie Malnutrition (PCM)
A Venture to Combat Childhood Malnutrition
Transcript of A Venture to Combat Childhood Malnutrition
Our TeamName Qualifications
Megha Gahlot MBA, Bachelors in Engineering (Information Technology)
Soo Kang Lee Bachelors in Industrial Design
Michael Notton Bachelors in Finance & Accountancy
Murali Venkatesan
Ph.D in Electrical Engineering, Bachelors in Electrical Engineering
Nicholas Watkins
Ph.D in Electrical Engineering, Bachelors in Computer Engineering
1,375,000
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Worldwide India
Childhood Deaths in 2008
All sourcesMalnutrition
The Problem
Source: UNICEF, 2008
60% of children of lower socioeconomic status suffer from malnutrition in rural India
Mission
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To sustainably combat child malnutrition for subsistence consumers by:
• Educating children and parents on the importance of proper nutrition• Providing a daily multivitamin to every primary school child
…to serve the people in a sustainable manner
Q30. Protein helps you:(A) Grow stronger (C) See better(B) Sleep less (D) Hear betterMy answer is: _
Q30. Protein helps you:(A) Grow stronger (C) See better(B) Sleep less (D) Hear betterMy answer is: A
Marketing Strategy
• “Bottom-up” approach– Local Production– Self Help Groups– Local Entrepreneurs– Local NGOs– Local knowledge
• Endorsements– Doctors– Teachers
Competition
• Indian nutraceuticals market worth Rs 18.75 billion [2007]
• Projected market size of Rs 27 billion in 2009
What Differentiates Us?
• Emphasis on Education
• Product targets specifically schools
• Designed for the subsistence market
Pro forma Income
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Revenues Net Income Annual Dispenser Sales
Highlights• Gross Margin = 60%• Net Profit Margin = 32%
Competitive Advantage• “Bottom-up” approach• Relationships • Trust• Differentiated product
– Taste– Education
Growth Opportunities• Universal platform• Large market with stable dynamics
• Over 641,095 primary schools in India
$0 $20 $40 $60 $80
Cost to provide $.05 daily vitamin to every citizen
Indirect Costs
Billions
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Sources: 1. Horton, Kim, Mahal, Popkin, and Shuigao. Nutritional Review. “Trends in Diet, Nutritional Status, and DR-NCD in India and China.” Dec 2001. 2. World Bank publication, August 2005.3. Population from CIA World Factbook
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Economic Savings from
Why invest?
• Profitable• Growth opportunities• Universal platform• Large existing market with good dynamics• Local partners• Ecologically friendly• Improve the quality of life for millions
Links
• http://www.yummyearth.com/wholesale.html• http://www.indg.in/health/diseases/nutritional-
deficiencies
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Trends in Diet, Nutritional Status, and Diet-relatedNoncommunicable Diseases in China and India: The EconomicCosts of the Nutrition TransitionBarry M. Popkin, Ph.D., Susan Horton, Ph.D., Soowon Kim, M.S., Ajay Mahal, Ph.D., and Jin Shuigao,Ph.D.
December 2001, Nutrition Review
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Assumptions
Revenue:Primary Schools in India1 641,095
Primary Schools in Tamil Nadu 31,052 Penetration Rate 5%
Classrooms per school 5
Students per Classroom 40
Weeks students are in school 36
Selling Price per dispenser $ 100.00 Percent of Dispensers sold at cost 35%Selling Price per vitamin candy $ 0.05 Candies sold through other channels (% of school sales) 50%
Cost of Good SoldDispenser Component costs:Total component costs: $ 48.20
Labor costs per dispenser $ 10.00
Total Cost per unit $ 58.20
Miles traveled to refill Dispenser at school 5Miles per gallon 20Fuel cost per gallon $ 2.00 Fuel cost per delivery $ 0.50 Deliveries per dispenser per year 12Annual delivery costs per dispenser $ 6.00
Shipping & Handling per dispenser $ 20.00 Training expense per entreprenuer: $100 Commission Percentage 25%
Multivitamin unit cost: $ 0.02
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Start-up Timeline
Month0-6 6-12 12-24 24-36 36-48 48-60 60-72 72-84
● Develop nutritional requirements for candies
● Schedule sales & delivery with pilot schools
● Roll out 100 school pilot in Tamil Nadu
● Scale to 5% of schools in Tamil Nadu
● Scale to 10% of schools in Tamil Nadu
● Expand into 2000 more schools. Enter new states if necessary.
● Expand into 3000 more schools. Enter new states if necessary.
● Expand into 4000 more schools. Enter new states if necessary.
● Contact custom nutraceutical manufacturers, obtain price quotes
● Place candy orders with nutraceutical manufacturers
● Collect feedback and customize dispenser, vitamin, and delivery specifications accordingly
● Hire and train additional staff as necessary
● Hire and train additional staff as necessary
● Hire and train additional staff as necessary
● Hire and train additional staff as necessary
● Hire and train additional staff as necessary
● Form LLC ● Hire and train staff (1 sales manager, 2 engineers for product assembly)
● Hire and train additional staff as necessary
● Begin hiring and training local entrepreneur ("commission-only") sales force to expand into communities
● Continue training entrepreneur sales force at rate of 1 per 10 schools
● Continue training entrepreneur sales force at rate of 1 per 10 schools
● Continue training entrepreneur sales force at rate of 1 per 10 schools
● Continue training entrepreneur sales force at rate of 1 per 10 schools
● Begin approval process with regulatory agencies
● Begin assembly of dispensers
● Patent dispenser technology
● Contact material suppliers for price & delivery information
● Test prototype dispenser with sample group
New schools reached: 100 1,443 1,553 2,000 3,000 4,000 Total schools: 1,543 3,096 5,096 8,096 12,096
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2009 2010 2011 2012 2013 2014 2015 2016No. of Dispensers Sold 0 100 1443 1553 2000 3000 4000
- - 278,537 5,909,439 11,742,580 19,280,740 30,616,110 45,701,480 Less: COGS - - 113,820 2,398,483 4,734,385 7,760,400 12,318,600 18,376,800
- - 164,717 3,510,956 7,008,195 11,520,340 18,297,510 27,324,680 160,000 160,000 216,100 724,736 1,282,666 1,973,076 2,999,576 4,375,676
Earnings before taxes (160,000) (160,000) (51,383) 2,786,221 5,725,529 9,547,264 15,297,934 22,949,004 Taxes - - - 975,177 2,003,935 3,341,542 5,354,277 8,032,151
(160,000) (160,000) (51,383) 1,811,044 3,721,594 6,205,722 9,943,657 14,916,853
Year Ended December 31,
Revenues
Gross Margin
Net Income
Other expenses
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VitaXplosion Dispenser• Education + Nutrition = Complete solution
• Education– Interactive Q&A (visual/audio)– Supplemental handbook– Enthusiasm from friendly competition
• Nutrition– Daily multivitamin candy– Regulates intake
• Solution– Meets immediate need of providing nutrition– Embeds importance of proper nutrition into society through the children and
into next generations
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Nature of the ProblemMajor Causes: Overpopulation, poverty, destruction of the environment,lack of education, gender inequality, and inaccessible medical care.
Poverty:
• Average monthly income for lower middle class is 3000-7000 Rs (equivalent to $3 a day)• More than 40% of the population is living off one dollar a day • 25% of the population cannot afford sufficient food for their families
Lack of Education:
• The illiteracy rate is 31.6% of males and 54.6% of females.• No government measures coupling nutrition with education• Integrated Child Development Services
Value Proposition
• 1 dispenser per classroom- $100 full price or at cost to schools in need
• Schools will purchase candy at $.05 (Rs. 2) per unit
• 1 entrepreneur will refill dispensers for 10 schools and sell candy in the surrounding community for a 25% commission
• Local production of candies customized to meet the dietary needs of at-risk children
• Local sourcing of dispensers
• Education + customized multivitamins = healthy children!
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Marketing Strategy
• Clear market need for a product that addresses nutritional problems in India
• Position the product by emphasizing on
- Health benefits will be provided to a large number of children in a non-intrusive manner
- It will create awareness about general health and hygiene
- The product will be an element of fun for the children and is designed insuch a way that it will promote healthy competition among thesechildren
- The dispenser will monitor daily dosage for each kid, besides the factthat it will be operated under the supervision of a teacher/administrator,and thus over consumption will not be an issue
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