By: Anna Petriccione, Jerardo Jasso, Elisa Ruscitti, and Kristen Burke

Outline

1. Introduction

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• Current Situation
• Problem
• Solution
• Mission Statement & Company

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• Market & Strategy Analysis
1. Industry Analysis
2. Existing Markets
3. Health Trends
4. Consumer Behavior
5. Marketing Mix: 4 P’s
6. Strategy
7. SWOT Analysis

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• Financial Matters

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• Future Plans

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Problem

Do you ever wonder if some consumers’ eyes glaze over when they see the “Nutrition Facts” Panel on the back or side of a food package?

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Or do questions like, “How do I do the math…what does this mean?” pop into your head?

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Have you ever thought that a single serving of certain foods or beverages—as specified on the food label—isn’t realistic?

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Or do you just throw your hands up in frustration and eat the entire package anyway?

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Consumers report that the label is confusing in its terminology or language, and have a hard time locating the nutrition information. Consumers state that it takes too much time to read the label or it is even an “annoyance”

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Solution

Imagine if all these problems could be solved by simply scanning a product's barcode. Then within seconds you’d obtain all the listed ingredients of the desired product. You would know the exact portion size and nutritional information of the product. Also you will actually know what you bought at a foreign grocery store.

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• Simplification
• By scanning a product’s barcode you can obtain all nutritional information and ingredients in desired language
• By launching an app that translates food labels-- and tailors the labels to specific countries requirements-- it will be easier for food companies to internationalise and for expats to feel comfortable buying food at a foreign supermarket.

Our Mission

In today’s global world we must be aware of cultural differences, preferences, religions, backgrounds, languages, and the wants or needs of consumers

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Consumers around the world approach consumption differently, and these attitudes and behaviors require different strategies and approaches; there is no room for a “one-size-fits-all” mentality

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Manufacturers and retailers need to provide solutions that are compatible with the preferences and requirements of each region: There is a tremendous opportunity for food manufacturers and retailers to lead a healthy movement by providing the products and services that consumers want and need

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The Coast- to- Coast app is culture friendly and understands consumer differences based on the consumer's region, and we created the barcode scanner for that reason; to assist consumers with translation and health concerns, but to also assist companies to provide the correct and valued information the consumer desires in the correct formats and languages

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Company

Early Stage:

• One of ten startups to be accepted to blueprints incubators and accelerator program.
• Achieve Seed B funding of 500,000 - 600,000 USD dollars
• Free professional consulting, coding assistance, and mentorship
• Free office space and equipment for two years

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Growth Stage:

• Receive series A funding from Venture Capital Firm Warburg Pincus
• Begin preparation for expansion into the European Market

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Reasoning for Hong Kong:

• Top 10 touristic locations
• Abundant graduate level developers, designers, script writer
• Cheap office rental property
• Established tech and startup market
• Very relaxed on write-off expenses

Industry Analysis - Market Structure

Perfect Competition Market Structure

What does this mean?

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• HIgh number of mobile applications, mobile app developers and buyers in the market

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• Low market prices

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• Little to no barriers to entry and exit the market

Industry Analysis - Competition

Industry Analysis - Market Drivers

Industry Analysis - Market Trends

Industry Analysis - Market Trends

Trends That Will Impact the Future App Market:

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• Hybrid apps

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• Creating apps that further enhance the usability of wearable devices

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• Fewer platforms

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• Mobile security

Existing Markets - Food Apps

Apps related to food are relevant and successful as they continue to grow, which shows Coast- to- Coast will develop well in this existing market, since food apps are continually growing

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In fact, 84% of smartphone shoppers turn to their mobile phone to help them shop while in a store

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One-third of shoppers use their smartphones to find information instead of asking store employees

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Health is Going Mainstream

Health and Nutrition influences Consumer Behavior:

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• 49% of global respondents believe they are overweight
• 50% are trying to lose weight
• Consumers seek fresh, natural and minimally processed foods with ingredients that help fight disease and promote good health
• More than half of all Europeans and 64% of Americans looking critically at Labels when shopping
• In Asia, 84% look at labels
• 68% of all consumers globally said that they would buy different products or try new things, and also buy healthier options if such options were easy to find based on the clarity of labels

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SOLUTION: The Coast-to-Coast app will guide shoppers by showing all valuable information after scanning the barcode

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Consumer Nutritional Values by Region & Language

Data: 59 % of consumers around the world have difficulty understanding nutritional labels

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• Travelers who want to have comfort abroad by knowing what they are consuming
• Those who are cautious due to dietary restrictions or allergies
• Those attempting to take charge of their health and watch their diet
• Those who cannot understand the labels
• Major food/ beverage brands that want to grow internationally

Target Audience

The 4 P’s

Product

The “Coast- to -Coast” App

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• Mobile friendly (Apple, Android, Samsung)
• Usability - Easy and quick/convenient
• Tested not to crash/ good quality
• Setting options

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When the consumer first opens the app, they will see each language we offer for translation, and they will select the one that best applies to them. Then, they could use the app freely to scan, or they can create a username and password so that they can choose their primary language setting and items they scan can be saved in a personal folder. Each time they open the app, the app selects their current location language, but asks if they would like to switch to another language. After that, they can simply see the folder tab and barcode tab, which they would open to scan products

It is a simple as that...

Price

• Consumers can purchase the app for 1 euro, 8.3 Hong Kong Dollars, or 1.05 dollars

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• We will Charge companies or major brands 235 Hong Kong dollars, or 30 USD

Place: Hong Kong, China

• Population : 7.3 million people = more consumers
• Hong Kong is Asia's premier international city for all visitors
• Tourism is a main source of income; In July 2011 more than 3.8 million visitors arrived in Hong Kong
• Consumers not originally from Hong Kong or not natives of the area (331,000 people are foreign born, many of whom do not speak Chinese or Cantonese)
• Consumers are concerned with health, and nutritional information is not common
• Food label confusion is highest in the Chinese-speaking world
• Technologically advanced
• Great Market for Mobile Apps

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4) Promotion/Positioning

How we will reach our target audience:

• Coast - to - Coast means exactly what it says; we will provide services coast- to-coast and consumers will easily understand this message
• Advertisements within grocery stores, convenience stores, and airports for consumers
• Paid location marketing advertisements to pop up while people are shopping
• Social Media advertisements (Twitter, Facebook, Instagram)
• Reach out to online newspapers
• Contact bloggers or health celebrities to promote
• Allow companies to have an advertisement banner on the app which gives consumers a discount from time to time

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The Strategy

Begin in Hong Kong → Asia/Pacific(1)

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Expand to France & Germany →

All of Europe (2)

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Expand to the U.S →

North America (3)

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Latin America - Mexico (4)

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South America - Buenos Aires, Rio (5)

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Middle East →

Africa -Dubai, Cape Town, Lagos (6)

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SWOT ANALYSIS

Key Financial Assumptions

In order to reach our projected budget we have made the following assumptions based on thorough research

1. The app will be sold for 1 Euro (€) ~ 8.3 Hong Kong Dollar (HK$)
2. Our revenue will grow at the same rate as the industry average of 4.5%
3. In our first year we will reach 1% of the population, or 72,000 people
4. The app market maintains 82% of revenue from app sales
5. We will offer food products on our app for 235 HK$ and will begin with 500 SKU
6. In line with similar companies Selling and Administrative expenses will be 71% of revenue
7. The average cost to launch an app is 270,000 USD ~ 2,094,471 HK$
8. We will be taxed in the US at a corporate rate of $7,500 + 25% of the amount over $50,000
9. The price of the app increases with inflation (3%) + two percent

Financials

Financial Summary

What does all of this mean??

• The break even point is between years three and four
• We will start earning exponentially more profit between year four and five (~1200% more)
• Turning a big profit in year five will enable us to explore expansion into other markets

Future Plans:

• Work with Restaurants to add Menus to our app
• Offering of more languages
• Translation of Pharmaceuticals
• Translation of nutritional facts
• 24/7 customer care service
• Mutually beneficial agreements with 3rd parties who advertise via app
• Further develop the app

Conclusion

Overall we believe this app is going to be a huge success and a necessity for a wide range of people; from world travelers, to those with dietary restriction, and those who are simply trying to live a healthy lifestyle. It will also help brand companies promote their product overseas and increase brand awareness.