HerbaCure - A Clinically Proven Herbal Supplement with Multiple Benefits Iris Hoag Julee Jenkins Dewi Prasetia Evelyn Yang About NaturaCure and HerbaCure 5Cs Summary Market Concentration Decisions 4 Ps Why Invest in us Metrics Company: NaturaCure  Mission Statement - To improve peoples lives through nature  New company dedicated to the “green revolution”  Single product focus  Imported from Indonesia  Multiple benefits  Clinically proven  Sachet package Cs (cont.) Customer: Health conscious, looking for a natural cure Context: Increasing demand for natural and green products Competition: No other company offers same benefit bundle Main direct competitor: Nature’s Way Collaborator: Production Company – exclusive contract Retailers (health foods stores and airport stores) High retail profit margins (46% and 54%)  Build strong relationships/”Push”  Receive priority placement SWOT Analysis Strengths:  Increasing interest in herbal products  Multiple benefits  Unique product  Low price  TSA approved Weaknesses:  New brand  Low control over the production  Low trust for herbal products Opportunities:  Product Extensions  Moderate entry barriers  Innovative sachet package Threats:  Competition from new companies  FDA regulations could change Market concentration decisions  Health food retail shopper  19-35  Health-conscious  Educated  Urban  Affluent  Female  Long distance travelers  Travel related illness  TSA approved packaging 4Ps Segment 1: 19-35 healthconscious, educated, urban, affluent, female Segment 2: Long distance travelers Product Unique product made from Indonesian herbs, clinically proven, multiple benefits, TSA approved packaging Price Retails at $9.50 (35% profit margin) Free samples, print ads, website, online marketing Promotion and coupon, PR, POP displays Place Health food stores such as Whole Foods and Sprouts, Priority shelf placement Retails at $12.00 (40% profit margin) Skymall Magazine print ad, online marketing, POP displays Convenience stores at airports (LAX, SFO, SAN) Why Invest in Us? HerbaCure Appeal to Investors  High profit margins (35% and 40%)  Unique product, no direct competition  High growth industry  Large potential customer base, 85% retention  Minimal governmental regulations  Inelastic demand for product  High retail profit margins will create “push” Growth in the Herbal Dietary Supplement Industry 6,000 5,000 Sales ($ in million) 4,000 3,000 2,000 1,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: HerbalGram Projected Profit for the Next Five Year 2014 Health Food Retail Shoppers $ (165,285) 2015 $ (61,055) 2016 $ 69,562 Long Distance Travelers $ $ 918,394 $ 1,245,294 1,662,091 Total Profitability $ 753,109 $ 1,184,239 2017 $ 237,375 2018 $ 433,337 $ $ 2,871,067 2,193,509 $ $ 2,430,883 $ 3,304,404 1,731,654 Any questions? Thank you!