Healthy D In Our New, Global Society,

Healthy D

In our new, global society, consumers the world over are increasingly besieged with food choices. The advent of processed foods and diet have had a negative effect on the developed world, and as those products increase in the developing world, similar negatives occur in the health of many. Scholars are all in agreement that what humans consume has a clear link to the consequences of our overall health; particularly for children. Eating right involves two things: A balanced approach to nutrition and the proper mindset to use foods in a health manner (freshness, portion size, condiments, etc.). Despite the trend towards highly refined products with heavy sugar content, sugary sodas, and snack foods with high carbohydrates and low nutritional value, there are alternatives.

Our company, Healthy D, is that alternative. Focused primarily on the Thai market, Healthy D. will produce a new and innovative snack bar that can be used as a breakfast alternative, a healthy snack, or a more appropriate energy burst throughout the day. Growing awareness of not only the importance of a healthy breakfast, but the need to cut down on sugary snacks has helped the health food market grow in Thailand between 20-30% annually. Lifestyle changes, more commute time, later dinners, and lack of access to fresh products also contribute to the need for alternative, yet healthy, snack foods.

Healthy D. Snack Bars will weigh 40 grams and have 95 kcal per bar. The product will be differentiated by using 7 types of premium quality wholegrain beans, which add protein and fiber, and have a host of positive health benefits. Initially, there will be four flavors: caramel, chocholate, honey and mix-berry, all containing glucose and other natural sugars and flavors. Healthy D. will be 100% organic, gluten free, and natural. Healthy D. Snack Bars will target a broad demographic and psychographic profile; men and women ages 15-50, mostly urban making about 15,000 Baht/Month. These individuals, particularly young professionals, college students, and health conscience individuals, need convenient, but healthy alternatives in their busy lives.

We feel confident that our target market is growing, and trending towards a more premium product that consumers can be confident in based on ingredients, processing, taste, nutritional value, and price. The two major competitors for the product are Nature Valley Granola Bars, an import from the United States; and Alpen, a fruit and nut bar made in England. Both of these products, however, are formulated to suit Western tastes (oats, dark chocholate, peanuts, raising, etc.). Healthy D's use of beans and natural flavors is more suited to the Thai palate. Both competitors' products sell between 25-29 Baht, making Healthy D's goal of 1,200,000 bars per annum at 25 Baht quite realistic. For instance, Thailand's urban population is about 46% of the total population, or 30 million. Further, if we assume that the snack bar market is approximately 8-10 billion Baht, then our market penetration would chart to:

Penetration of Healthy D. into marketplace

Total Consumers Average 4 Healthy D. per year

Total Baht

.05%

150,000 -- 600,000 bars

$15 million

.75%

225,000 -- 900,000 bars

$22.5 million

1%

300,000 = 1.2 million bars

$30 million

1.25%

375,000 = 1.5 million bars

$37.5 million

1.50%

450,000 = 1.8 million bars

$45 million

1.75%

525,000 = 2.1 million bars

$52.5 million

2%

600,000 = 2.4 million bars

$60 million

Thus, the goal of 2% market penetration would require only 600,000 people purchasing 4 times per year; more likely a larger number will at least try the product, and many should me multiple monthly purchasers.

We estimate initial advertising costs to be about $900,000 Baht, recoverable in sales of approximately 75,000 bars at a 47% margin. Initial launch with a sales goal of 75-150,000 bars would only require a 1/2% market share for the high end. Using Radio, Magazines, the Internet, Outdoor Advertising and Public Relations, however, we expect to reach far more than 150,000 bars during our first month of operation. In order to control costs and ensure the highest quality product, we have chosen to work with a Thai corporation, Thauyathip Organic and Healthy Food Company in Nonthaburi. This will keep transportation costs to a minimum, while providing our company with a way to retain high product standards and quality control.