Prodieta Ltd.Probiotic Yogurt Drink

‘Put Your Cravings To Rest With Prodieta’

Kevin O’ Dowd - Finance Director Karen Duffy – Quality DirectorFrancis Higgins - Production DirectorChyrl Coen – Sales and Marketing Director

Contents of Presentation Product Description Why Develop the Product Marketing Strategy Prodieta Ltd. Strengths/Weakness Distribution/Pricing Strategy Finance Future Plans

Product Description

100ml Probiotic yogurt drink Cocktail of 8 bacterial strains 2 Lactobacillus brevis strains – produce tyrosine Tyrosine Dopamine in body Reduces food cravings and boosts mood Additional bacteria - intestines

converted to

Production Facility

Production of Product

Two special strains of Lactobacillus brevis Banana extract added L. brevis uses this to produce tyrosine Pasteurisation- product cannot be imitated by

competitors Six live bacterial cultures added

Yogurt culture L. brevis + Banana extract Production of tyrosine occurs

PasteurisationAdditional live bacterial culturesadded

Why develop the product?

New research Niche in market Rise in Obesity Novel product Ability to assist those struggling with weight loss/

obesity

The Market

Target Market 1% of men and women aged 20-65 Health conscious people Fitness enthusiasts Overweight People generally prone to unhealthy food cravings

Irish Yogurt Market trends

25%

13%

21%

5%

11%

10%

15%

natural health segment diet segment

childrens yogurt products yogurt drinks

desserts full taste

fruit yogurts• The natural health

segment 25% of the Irish yogurt market.

• In the diet segment, contain low fat, or fat free. This segment accounts for 13%

• Yogurt drinks, constitute 5% of the market.

• We will be marketing our product as a natural healthy product, a diet product and also a yogurt drink.

Marketing Strategy Media Campaigns

Print Media

Radio Advertisements

Social Media

Promotions

Radio Competitions

Free In-Store Samples

Company Strengths

Novel product based on new research Reduces cravings Helps reduce obesity Target multiple, large market Irish made products

Company Weaknesses

New product; hard to break into an established market

Better known products already exist Must gain trust of customers as product is new Increased cost of raw materials

Distribution & Pricing

Distribution Challenge for small food and drink producers

in developing a business Knowledge and expertise of a distributor Distributor choice – Pallas Foods

Experienced in dairy products Increase in sales

Pricing Strategy

Market penetration – lower prices It compares favourably with competitors

Pricing Strategy – Market Penetration PricingProduct Company Price Description

Prodieta Probiotic Yogurt Drink

Prodieta Ltd. €1.80 - 4 x 100ml€3.50 – 8 x 100ml

8 bacterial strainsReduces cravings

Actimel Original Probiotic Yogurt Drink

Danone €1.99 - 4 x 100g €3.89 -8 x 100g €4.99 - 12 x 100g

L. casei Boosts immune system

Yakult Fermented Milk Drink

Yakult €3.65 - 7 x 65ml

L. casei shirotaAids digestion

Pricing Survey Feedback

• 66% - Ideal• 28% - Too Expensive• 6% - Cheap

• 69% - Ideal• 24% - Too Expensive• 7% - Cheap

Finance

Product Funding

Capital: €80,000 loan, repaid over 5 years

Grants : €50,000 High Potential Start-up (HPSU) grant from Enterprise Ireland

Income: Revenue generation from sale of product

Purchases & Sales Projections

Costs (€) Revenue (€) Profit (€)

2015 690,381.69 715,750.00 25,368.31

2016 1,120,603.61 1,278,000.00 157,396.39

2017 1,389,493.51 1,917,000.00 527,506.49

Sources of Income

Year 1 Capital €80,000.00

HPSU Grant €50,000.00

Sales €585,750.00

€715,750.00

Year 2 Sales €1,278,000.00

€1,278,000.00

Year 3 Sales €1,917,000.00

€1,917,000.00

Break-Even Analysis

Projected No. of Customers

Projected Break-Even Point (Units)

Projected Sales (Units)

Difference (Units)

Year 1 3000 1,076,022 1,560,000 483,978

Year 2 5000 1,549,562 3,120,000 1,570,438

Year 3 8000 1,550,958 4,680,000 3,129,042

Total 16000 4,176,542 9,360,000 5,183,458

Financial Status Bank balance at 31st of December 2017 is €710,271.19

Loan Repayments outstanding €34,411.92

Interest on Loan Repayments €1820.85

€36,232.77

Other likely costs in 2018

Extra Equipment for expansion

Company Vehicle

Rent & Rates for a larger premises

Increase in salaries due to the creation of 3-5 extra positions

Future Plans

New flavours New products Bigger premises Distribute to UK and Europe Eventually export internationally

Thank You