ProSup Protein Supplement Business Plan for Terry White Chemmart

This business plan focuses on the introduction of ProSup, a protein supplement designed for children under five, within the Australian market. It begins with a situation analysis, highlighting the growing demand for protein supplements and the gap in the market for products tailored to young children. The plan outlines market objectives, aiming for a 3% market share and break-even by 2020. The marketing strategies include penetration pricing, competitive positioning, and brand strategy, emphasizing product differentiation through unique features such as appealing packaging and flavors. A SWOT analysis identifies strengths, weaknesses, opportunities, and threats, while the pricing strategy considers cost-oriented, demand-oriented, and competition-oriented approaches. Distribution channels will primarily utilize company retail outlets. The plan also addresses customer needs, brand architecture, and positioning, aiming to provide high-quality protein concentrate with great taste and flavor at a competitive price. The document analyzes the competitive landscape, emphasizing ProSup's niche market and innovative features to gain a competitive advantage.

Terry White Chemmart Business Plan 1
TERRY WHITE CHEMMART BUSINESS PLAN
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ProSup Marketing Strategy
Based on an evaluation of the protein powder market and our strengths, our company will
introduce the ProSup protein supplement in the Australian market.
Situation Analysis
Decades ago, the contemporary global market for protein supplements has witnessed a rise in
demand. This phenomenon is attributed to increasing concerns and awareness of customers’
health concerns and the realization that food alone cannot provide complete dietary proteins
required in their body normal functioning. Healthcare services provided by mushrooming fitness
centers, health clubs, and gymnasiums across the world contribute significantly to the growth of
this market (Paddon-Jones et al., 2008). Due to competition, the players need to introduce new
and innovative products to the market which are appealing to the consumers and serve this health
concerns.
According to Transparency Market Research – “the impact of the augmenting awareness level
among them regarding the benefits of protein is substantially high on this market and is
anticipated to continue driving the growth of this market over the next few years. The
opportunity in the worldwide market for a protein supplement is anticipated to attain a value of
2.20 billion by the end of 2017. Researchers expect the market to further rise at a CAGR 5.30%
between 2017 and 2022, reaching 2.84 billion by 2022
Most of the protein supplements produced today doesn’t focus more on children under the age 5
years, who require special nutritional values due to the fact that they are growing and developing
neurologically at a very rapid rate (Venne et al., 2013). Also is at this age children are more
active in playing and other outdoor activities which require more protein intake. ProSup has been
produced to fill this market gap.
What makes ProSup one of the most appealing product to the customers is the active ingredient
which is easily ingested into the body of the user. The ProSup packaging and labeling designs
will be creative and captivating to attract the interest of consumption by children.
Market Objectives
Having a superior brand with a unique niche in the marketplace, we are in a position to establish
a three percent market share in the first years after ProSup launch. ProSup supplement will
break-even by the year 2020.
Marketing Strategies and implementation
The company will introduce ProSup as a new product in the market, using penetration pricing,
competitive positioning, brand strategy, and distribution channels in order to increase our
revenues and growth rate (Marketing Strategy, 2013).
Action Plan
Competitive Positioning

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Generally, ProSup does not enjoy first entry advantage as there are already players in the market
and the company is aware of that fact. The market is at the growth stage. All that is required is
positioning in terms of product differentiation, targeting, and segmentation (Marketing Strategy,
2013). The already players in the market largely targeted customers with more than six years of
age. ProSup target children of less than 5 years as its unique market niche, therefore it is not
anticipating much competition in the market.
The major product competitors in the Australian market are:
i. Whey protein
ii. Platinum kids
iii. Swanson
iv. Myotein
v. Syntha-6
vi. Naked whey
Product Analysis
For ProSup to be competitive in the market, it has the following innovative features:
 Well, blended blue and pink color.
 Comes with a specially sculpted child drinker to entice children.
 Protein powder especially make for children
 The package is re-usable for other purposes.
 Extremely high biological value
 Fortified with glutamine peptides to further support muscle tissue integrity and immune
system efficiency
 Aspartame free
 Rich in Branch chain amino acids and Glutamine
 Rich in immune system enhancing protein fractions
 Come flavors such as; chocolate, strawberry, vanilla, cinnamon bun etc
The above feature position ProSup as a superior product in that niche relative to other similar
supplements. Provided that the contemporary Australian market is growing and changing,
especially the need for protein supplements, the demand is becoming insatiable. ProSup is
certified, safe and efficiently suited for consumption.
Company Analysis
We are looking forward and focus on customer intimacy as it competitive market strategy. This
is because the protein powder market is flooded with products at all points of the pricing
spectrum, yet the prospective customers want more than a product off the shelf; they want
customized solutions. So, ProSup’s entry strategy is to know their customers’ needs requirements
and try to deliver the correct solutions over time.
The company will work to achieve market leadership by strategically providing the best quality
supplement in the market. We have noted that our customers care most about the quality and
safety of the products they consume especially the prescription products. As the forward-looking

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target, the company aims at investment in market innovations and product quality for the
achievement of market leadership after three years of operation (Marketing Strategy, 2013).
Brand Strategy
What is the brand architecture?
ProSup powder will come in different colors and tastes. ProSup has a mix of taste, flavor, and
color which will be consistent and look appealing to the users, in our case children under the age
of five years. It will be packed in a reusable container with a well-sculpted drinker for children.
This will not only touch the emotional part of the user but also serve in easier and convenient
usability.
What is the brand experience?
ProSup seeks to give excellent customer experience after usage. They also have a variety of
choices to make with regard to their taste and preferences ranging from vanilla, strawberry,
chocolate, groundnuts etc. Our customers will be sure of value for their money because they will
always get the desired health results. This is true because ProSup has concentrates that a child
requires for proper growth and development.
Positioning Statement
For children under the age of 5 years and are running under low protein due to an imbalanced
diet, who want protein powder supplement, the ProSup is the product that provides them with
tastes, colors, and flavors uniquely blended to offer them a variety of choices depending on their
preferences while retaining the same product quality and performance. Unlike Naked Whey, the
ProSup offers high-quality protein concentrate, great taste, and flavor all in one at a good price.
SWOT Analysis

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This is the study that will identify the company internal strengths and weaknesses, as well as its
external opportunities and threats (SWOT & PESTLE.com, 2017).
Strengths – Though there are competitors in the market, ProSup will provide a unique branding,
coloring, taste, and flavors for the children under the age of five years. Most of the protein
powders generally target a wide range of customers, whereas ProSup target a specific segment.
These innovations give a comparative advantage to ProSup in the market. We will also offer
value and quality product coupled with fair pricing.
Weaknesses – A new product like ProSup need extensive marketing and promotion to position it
in the selected market segment. The costs can cause cash flow problems which result in cash
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drains. Though ProSup may become a strong brand in the market, the capacity of the company
may not be able to bridge the gap in the competition. Still, in the market segment there are
reputable businesses well establish and known by the customers, and for ProSup to bridge the
gap need invest a lot of resources in marketing and promotions prior to product rollout in the
market.
Opportunities – the ProSup market is expected to grow over time owing to people’s
appreciation of the need for supplements in modern day healthcare. Industry trends are studied to
make forecasts in the market. The study includes trends related to consumer conduct, occupation,
industrial developments, new inventions, government norms and other factors that impact the
industry. Positive changes to these trends provide an opportunity for ProSup.
Threats – However, ProSup is not immune to threats in the market. Such threats like political
and economic negative changes. Changes in government and government policies like the new
tax system have an impact on ProSup. In addition, companies come together to enjoy economies
of scale, production cost and response to completion.
ProSup Pricing
Being a new entrant in the market, in the short-run ProSup will face the challenge of marketing
due to already established products in the markets. The major task here will be our capacity to
communicate product value to the prospective customers (Keller, 2009). We will be required to
explicitly make them appreciate the uniqueness and value accompanying ProSup. Though there
are different pricing strategies, pricing ProSup will consider post-marketing evaluation report.
However, ProSup will use a mixture of three strategies, namely:
 Cost-oriented pricing
 Demand-oriented pricing
 Competition-oriented pricing
The above-mentioned strategies will be applied accordingly depending on the ProSup market
cycle in both short-run and long-run. At the early stage, ProSup will be priced depending on the
level of competition during product launch and the cost of production. The pricing approach will
be penetration pricing to encourage high distribution of ProSup and customer exposed to the
product in the midst of competing substitutes. In short-run, flexible pricing policy per the market
segment needs and buying behaviors of the customers will be applicable, in the context of the
prevailing product market cycle. In long-run other pricing methods and strategies will be used
depending on the prevailing market needs and changes.
Evaluation of end users need
It is important to understand the prospective customers of ProSup and how they want it to reach
them. To understand this we need to conduct marketing research prior to actual distribution. To
choose the most appropriate channel we consider whether end users need personalized services
or whether they want training on the use of the product. In this regard, ProSup doesn’t as it is
easy to follow instructions for usage by the adult caretaker of the children in need of protein
supplements.

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Distribution Channels
In our case, the channel of distribution is how we intend to reach our target customers who are
the end users of ProSup. Conventionally, there is traditional distribution as shown
(Source: Thom, H. (2012). How to Create a Distribution Strategy That Actually Makes Money.
Management, Leadership, and Technology. http://www.thomholland.com/distribution-strategy.
ProSup Distribution Strategy
Buying process of ProSup is straightforward and doesn’t require expert directives or special
training. And also being a new entrant in the market, it is prudent enough to take the most cost-
efficient channel. Therefore, the sale process of ProSup will be through the company retail
outlets. Our outlets do marketing and promotions of products, have direct contact with the users,
and are able to respond directly to customers’ reactions and also report back to the manufacturer.
As a result, the company is able to add more profit margins to the product.
ProSup will build a natural relationship with all the stakeholders in the distribution channel. This
relationship will not only last but also will create a way of information sharing for mutual co-
existence.
ProSup will have a systematic way of trickling profit margins down the selling system. The
system carefully maps out the prices for each step in the channel and includes a fair pricing for
each type of partner. The pricing system will eliminate pricing conflicts, which are common, and
can threaten the success of the entire strategy.

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Product Marketing
Marketing objectives
ProSup is at the conceptual stage as a viable innovative idea. Before the actual introduction to
the market from the manufacturer, a research on the market will be conducted for a better
understanding of the target segment and other market dynamics.
For the main marketing objectives of ProSup are:
 Positioning ProSup versus other similar products
 Maintaining high customer satisfaction
 Introducing ProSup in the selected market segment
 Building customers awareness about ProSup
 To create a cost-effective marketing plan
Marketing mix
4Ps of Marketing
The 4Ps of marketing is a model for studying components of ‘marketing mix’. Marketing mix
studies the ways the new product is introduced into the market using a different kind of choices
available to the organization. It helps in examining market options in the context of the product,
price, promotion, and place so that the product addresses the customers’ expectations and needs
(Jobber and Ellis-Chadwick, 2016).
Product – ProSup protein powder is made for children under the age of five years. It will be
used to supplement their low protein intake. ProSup will have different packaging, tastes, colors,
and flavors at the same time retain its quality ingredients and value.
PROMOTIONPLACE
PRICEPRODUCT
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Price – We will use penetration pricing at the entry into the market. In the short-run, the mix of
different pricing strategies will be used, like segment pricing and competitive pricing. ProSup
offers the value for money given the great features, and value combined.
Promotion – ProSup is a straightforward product, with clear usage instructions. Therefore, for
convenience, cost factors and pricing, selling process used to distribute our website selling,
through our retail outlets. Our franchise partners are regarded for their close contact with the
actual users of ProSup.
To increase market coverage, brand awareness, and increase sales of ProSup the company will
integrate the following promotional methods (Keller, 2009).
 Detailed Aid
 Clinical papers
 CME programs
 Symposia
 Personal selling
 International events
Place – ProSup will be available in all our major shop stores and other retail outlets through
company franchise partners.
PEST Analysis
Political factors – ProSup being a nutritional supplement is highly regulated by the World
Health Organization (WHO). This makes governments focus more on regulating ProSup to meet
the required standards (SWOT & PESTLE.com, 2017).
Economic factors – Customers buying habits depend on their economic power. They tend to be
more sensitive to price fluctuations, and due to prevailing market conditions becomes a tricky
decision to make in ProSup product pricing (SWOT & PESTLE.com, 2017).
Social factors – ProSup will be faced with social-cultural changes in the market. The market
may change demographically, culturally, religiously, employment and attitude which may impact
positively or negatively on ProSup (SWOT & PESTLE.com, 2017).
Technological factors – Technology advancements are making something possible that never,
like internet selling and online shopping. Infrastructural needs of the company can be met by
technology improvements. Also the levels of technology our competitor are using affect decision
making for ProSup (SWOT & PESTLE.com, 2017).

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References
SWOT & PESTLE.com. (2017). Dell SWOT & PESTLE Analysis - SWOT & PESTLE.com.
[online] Available at: https://www.swotandpestle.com/dell/ [Accessed 23 July 2018].
Marketing Strategy. (2013). 2nd ed. The University of Sutherland.
Jobber, D. and Ellis-Chadwick, F. (2016). Principles and practice of marketing. 8th ed.
Maidenhead: McGraw-Hill Education, p.791.
Venne, C., CH, M., TM, L. and SM, P. (2013). Role of protein and amino acids in promoting
lean mass accretion with resistance exercise and attenuating lean mass loss during energy
deficit in h... - PubMed - NCBI. [online] Ncbi.nlm.nih.gov. Available at:
http://www.ncbi.nlm.nih.gov/pubmed/23645387 [Accessed 23 July 2018].
Thom, H. (2012). How to Create a Distribution Strategy That Actually Makes Money.
Management, Leadership, and Technology. http://www.thomholland.com/distribution-
strategy
Keller, K. (2009). Building strong brands in a modern marketing communications environment.
Journal of Marketing Communications, 15(2-3), pp.139-155.
Paddon-Jones, D., Westman, E., Mattes, R., Wolfe, R., Astrup, A. and Westerterp-Plantenga, M.
(2008). Protein, weight management, and satiety. The American Journal of Clinical
Nutrition, [online] 87(5), pp.1558S-1561S. Available at:
http://ajcn.nutrition.org/content/87/5/1558S.full [Accessed 23 July 2018].