Blue Ribbon Organics
Organic Shake Up
University of Wisconsin-Platteville
National Agri-Marketing Association
Executive Summary
INTRODUCTION
Millennials are the demographic cohort between the ages of 18 and 34. They are currently known for their trend-setting lifestyle and are in the
process of setting a new trend in the protein shake industry. This industry has actively responded to consumer demands for high-protein drinks,
accounting for 20% of the high protein snack product launched in the US in 2012. 1 As millennials’ demand for fluid milk has decreased,2 they are finding new
ways to consume dairy products and vital nutrients. Protein shakes have been a growing
millennial favorite, with great taste and on-the-go convenience attracting many buyers. Our
company, Blue Ribbon Organics, is at the forefront of this shift in demand with the
introduction of Organic Shake Up, a lactose- and gluten-free organic milk protein shake that
provides essential nutrients in an easy-to-drink bottle for the ambitious, trendy, and
on-the-go millennials.
Blue Ribbon Organics has created Organic Shake Up to have all the health
benefits of organic milk, but also has a composition richer in protein, fewer calories per
ounce, and a quick and easy on-the-go method for consumption. Organic Shake Up is
created through a unique process, beginning with organic milk from our customer’s USDA
Certified Organic dairy farms. The fat is then removed to obtain skim milk. Next, we filter
the skim milk through a thin membrane that reduces lactose and water components. The
resulting product is milk with a more concentrated protein and calcium content.
Currently available in Dark Chocolate and Vanilla Bean, Organic Shake Up is the perfect way for millennials to rethink their drink.
MARKET ANALYSIS
Market Trends
Organic Shake Up has only nine ingredients, all of which are identifiable, easy to
pronounce,
and can be researched using the names listed on the bottle. As a result, Organic Shake
Organic Shake Up satisfies four of the
Up satisfies the first Top Food Trends of 2015, as stated in Food Manufacturer Magazine.3
five Top Food Trends for 2015 on Food
The second of the top trends is “Convenience For Foodies.” Market research indicates
Manufacture Magazine’s list3:
that millennials are busy and have limited time to prepare a healthy and nutritious breakfast or
snack.
1. From clean to clear label
Blue Ribbon Organics is focusing on
marketing Organic Shake Up to millennials to satisfy
2. Convenience for foodies
the third trend. Constituting 33% of the entire
3. Marketing to millennials
population, millennials are a large portion of the
food-buying population in the United States. Meeting
4. Snacks rise to the occasion
the consumption demands of millennials has become a
top priority of many food companies, including Blue
5. Good fats, good carbs
Ribbon Organics. Educated and tech savvy, millennials
want to know more about the food they consume.
They want to consume healthier, more natural/organic,
less processed, better tasting foods and brands than
their parents’ generation. With wellness and health
goals, millennials are running to protein shakes to meet these expectations.
Millennials are currently looking for more convenient, on-the-go foods and beverages that provide
protein, thus satisfying the fourth trend. Everydayhealth.com recommends protein shakes as a great
protein-packed snack. Organic Shake Up is not only an excellent source of quick protein and calcium, but is also
easy to grab-and-go, making it a perfect snack for today’s millennial consumers.
In addition to meeting four out of the Top Five Food Trends of 2015, Organic Shake Up meets the
ever-growing trend of gluten- and lactose-free products. Gluten allergies (Celiac Disease) affect men and
women of all ages and races.4 According to the Mayo Clinic5, this allergy is becoming more common, four times
more common than 60 years ago. Much like gluten, lactose intolerance is also a growing issue in the United
States. For 30 to 50 million Americans, a large glass of milk can bring on distressing symptoms of lactose
intolerance.6 Individuals who suffer from these conditions will not have problem digesting Organic Shake Up
because it’s lactose- and gluten-free.
Primary Research
To analyze the demand for Organic Shake Up, Blue Ribbon Organics surveyed 300 people about their need for supplemental drinks in different
demographic areas throughout our five targeted areas. The surveys showed that four out of five consumers are looking for supplemental
drinks. Ninety percent of the respondents fell in Blue Ribbon Organics’ target market of ages 18-34. Blue Ribbon Organics also conducted a
focus group consisting of 80 participants fitting our customer profile. Each participant received a sample of Organic Shake Up and a sample of
Special K Protein Shake. Findings showed 46% preferred Organic Shake Up and 36% preferred Special K with 18% having no preference. This
primary research along with the trend of consumers looking for healthier food options and a rise in the consumption of organic products,
supports the launch of Organic Shake Up.
1."US Consumers Have a Healthy Appetite for High Protein Food. The US Leads the Way in Global Launches of High Protein Products."
US Consumers Have a Healthy Appetite for High Protein Food. The US Leads the Way in Global Launches of High Protein Products. Mintel, 19 Jan. 2013. Web. 11 Mar. 2015.
2."Dairy Beverage Reinvented." Dairy Beverage Reinvented (n.d.): n. pag. US Dairy. Web. 11 Mar. 2015.
3.Robinson, Nicholas. "Top Five Food and Beverage Trends for 2015." FoodManufacture.co.uk. William Reed Business Media, 20 Nov. 2014. Web. 11 Mar. 2015.
4.Center, University Of Chicago Medical. "Celiac Disease Facts and Figures." Celiac Disease Center: Celiac Disease Facts and Figures (n.d.): n. pag. Baking Business, Aug. 2005. Web. 11 Mar. 2015.
5."Discovery's Edge Mayo Clinic's Online Research Magazine." Celiac Disease: On the Rise. Mayo Clinic, July 2010. Web. 10 Mar. 2015.
6.Libov, Charlotte. "10 High-Protein Power Snacks." EverydayHealth.com. Everyday Health Media, 29 Oct. 2014. Web. 11 Mar. 2015.
1
Market Potential
Millennial
A report from The Nielsen Company (2014) indicates
Population per
Millennial
Consuming
Area
Area
Population
Organic
that millennials prefer to live in or around cities rather than in
Products (12%)
rural areas.7 Located in La Crosse, WI, Blue Ribbon Organics
has easy access to large cities in Wisconsin, Illinois, and
Madison
586,593
156,034
18,724
Minnesota. In year 1, Blue Ribbon Organics will target areas
Milwaukee
2,025,898
538,889
64,667
surrounding Madison, La Crosse, and Milwaukee-accounting
for 87,709 millennials. In year 2, Blue Ribbon Organics will
La Crosse
135,298
35,989
4,319
expand to Chicago with a population of 322,252 millennials. In
Chicago
9,729,825
2,685,432
322,252
year 3, Blue Ribbon Organics will add Minneapolis’ population
of 122,596 millennials. A total of 532,557 millennials in the five
Minneapolis
3,797,883
1,021,631
122,596
cities regularly consume organic products. Findings from our
TOTAL
532,557
primary research in these cities indicate that a millennial will
buy on average three bottles of Organic Shake Up per week. As
a result, the potential target market consists of 83,078,875 bottles of Organic Shake Up with a potential revenue of $171,973,306.
# of Units per
Year
2,920,952
10,088,000
673,719
50,271,281
19,124,923
83,078,875
Target Market
# Millennials
# Organic Shake
Up bottles per
week (average
of 3 per week)
# of Organic
Shake Up bottles
per year
Sales
$ per year
Year 1
4,385
13,156
684,134
$1,416,156
Year 2
26,506
79,518
4,134,960
$8,559,368
Year 3
60,817
182,451
9,487,445
$19,639,012
In the next three years, Blue Ribbon Organics will target
millennials in the five surrounding areas; La Crosse, WI, Milwaukee,
WI, Madison, WI, Chicago, IL, and Minneapolis, MN. These areas
were selected due to the availability of specialty stores and access
to these areas. Market research indicates that 27% of millennials
regularly shop in specialty stores, including Whole Foods, Hy-Vee
and Trader Joe’s.8 These stores offer a variety of organic and other
clean products and can be found in abundance in these cities.
Customer Profile
Jill Miller (25) Minneapolis, MN,
Marketing Assistant, $65,000/year
Jill tends to consume a diet rich in
leafy greens, grains, and fruits.
Organic Shake Up is helping Jill
supplement areas of her diet in
which she needs to improve her
protein and calcium needs
while being lactose-intolerant.
Frankie White (27) Madison, WI,
Teacher, $38,000/year
Frankie lives an organic life-style
from his drinking proteins to
vegetables. Frankie enjoys
Organic Shake Up. As a workout
protein, he fuels his way to
victory in preparation for
marathons.
Competitor Analysis
Organic Shake Up
Svelte Protein Shake
Special K
Organic Competitor
Taste Competitor
Serving Size
11 oz
15.9 oz
10 oz
Calories
190
260
190
Protein
16 g
16 g
10 g
# of Ingredients
9
19
47
Artificial Sweet-
No
No
Yes
Shelf-Life
6 months
4 months
12 months
Organic
Yes
Yes
No
Calcium
50%
35%
22%
Price-Per Bottle
$2.89
$2.99
$1.82
7. "Newswire ." Millennials Prefer Cities to Suburbs, Subways to Driveways. Nielsen Company, 04 Mar. 2014. Web. 11 Mar. 2015.
8. Cloud, Kristin. "Millennials Come In All Shapes And Sizes...And Have Varied Shopping Habits." Shelby Report. The Shelby Report, 29 Jan. 2015. Web. 11 Mar. 2015.
2
Blue Ribbon Organics broke down the main competitors
into two categories; an Organic Competitor and a Taste
Competitor. The direct competitors are Svelte Protein
Shake, an organic competitor, and Special K, a competitor
in taste. Organic Shake Up beats its competition when it
comes to the high levels of calcium and protein, and a
low-ingredient list, packed into an 11-oz bottle. Organic
Shake Up beats Special K in not only taste, but also in the
number of ingredients, and by using no artificial
sweeteners within the product. When being compared to
Svelte, our organic competitor, Organic Shake Up, has less
than half of the number of ingredients, and has 15% more
calcium per bottle.
SWOT
Strengths






Weaknesses




Milk from USDA Certified Organic Dairy
Farms
Low Ingredients List
Value Price
High Protein and Calcium Contents
Tracking Codes
Served at Room Temperature or Chilled
Only 2 Flavors
Fixed Amount of Organic Milk Production
Limitations on Selling Location
Milk Supply Dependent on Natural Factors
Opportunities



Threats

Healthy Eating Trends
High Demand for Organic Products

Product Enhancement
Pre-established Direct and Indirect
Competitors (Substitutes)
Emerging Competitors in the Market
BUSINESS PROPOSITION
Strategy Statement
Perfect for an on-the-go lifestyle, Organic Shake Up will be millennials’ first choice of protein shake that provides over 25% of the
recommended daily intake of protein and 50% of daily calcium, while maintaining a low ingredient list. Through media and public presence,
Blue Ribbon Organics will promote this USDA Certified Organic protein shake.
Key Planning Assumptions

The healthy, on-the-go trend will continue
to rise

Millennials will continue to be
trend-setters and look for the newest
items on the market

Organic producers will remain organic and
more producers will convert to producing
organic milk for premium prices

Millennials will consume at least 3 bottles
of Organic Shake Up per week
Benefits
Goals and Objectives

Consumption of protein and calcium
help regulate calorie intake, which
can aid in weight loss

Organic Shake Up contains both whey
and casein proteins, which are
naturally found in milk. This helps aid
in keeping you satisfied longer after
consumption




Capture 5% in year 1, 8% in year 2, and
10% of the total market share by the
end of year 3
Retain 85% customer base per year
Generate 65% product awareness
Lactose-free dairy products are softer
on the digestive system
ACTION PLAN
Product Positioning
Organic Shake Up is a low-ingredient, nutritious, and organic protein shake
that is complementary to a faster-paced lifestyle.
Place
- Manufacturing and bottling located in Lacrosse, WI
- Delivered bi-weekly by company trucks
- Organic Shake Up will be located throughout the store (refer to the
schematic on the left)
- Sold at:
3
Pricing
Packaging
Product Cost Per Unit
$1.43
Profit Mark-Up
15%
Selling Price to Stores
$2.07
Store Mark-Up
42%
Customer Price
$2.89
-11 oz bottles
-Easy to grab and go; convenience
-Bottle and wrapping is composed of 100% recycled materials
-Tracking codes on every bottle
Source: United State Department Interior, 2014
Promotion
Pre-launch and Awareness


Promotional Roll-Out Plan
State
Now
Rolled out three months prior to product release in each city
In-Store Taste Testing
 Individuals will be able to sample Organic Shake Up
 Focus Groups
 80 participants will taste test Organic Shake Up along with Special K,
our taste competitor
 Blue Ribbon Organics will collect data from this testing
 Attend World Dairy Expo
 Inform World Dairy Expo attendees on the organic industry and
products
 Distribute samples of product
 Sponsor one Ag Day on Campus per year in targeted states
 Educate future potential customers on organic products
 Sponsor one Marathon in each targeted state
Year 3
 South Shore Half Marathon – Milwaukee, WI
$ (39,996)
 Bank of America Chicago Marathon – Chicago, IL
$
 The Color Run – Twin Cities, MN
Year 1
Year 2
Year 3
Now
Year 1
Year 2
World Dairy Expo
$ (9,425)
$ (37,700)
$ (38,831)
Focus Group Testing
$ (260)
$ (268)
$ (276)
Free Samples In Stores
$ (600)
$ (2,400)
$ (2,472)
$ (2,546)
Sustainable Food Summit
$ (540)
$ (2,158)
$ (2,223)
$ (2,289)
Farm Tours
$ (143)
$ (572)
$ (1,147)
$ (1,728)
Headquarters Tours
$ (29)
$ (114)
$ (206)
$ (273)
Magazine Advertisement
$ (100,230)
$ (400,922)
$ (425,338)
$ (451,241)
YouTube Advertisements
$ (1,842)
$ (7,368)
$ (35,470)
$ (47,459)
FACEBOOK Advertisements
$ (2,796)
$ (11,183)
$ (53,838)
$ (72,036)
Coupons
$
$ (71,162)
$ (430,108)
$ (986,860)
Marathon Sponsorship
$ (1,250)
$ (5,000)
$ (5,000)
$ (5,000)
AG Day on Campus Sponsorship
$ (250)
$ (1,000)
$ (1,000)
$ (1,000)
$ (134,961)
$ (539,846)
$ (995,909)
$ (1,610,429)
Wisconsin
Illinois
Minnesota
Marketing Expenses
Total Marketing Expenses
-
Business to Consumer Campaign
Expos/Trade Shows: Blue Ribbon Organics will be attending World Dairy Expo. While there, Blue Ribbon Organics will focus on product
awareness and distribute samples for consumers to taste.
Social Media: Blue Ribbon Organics will utilize many different social media outlets to promote product awareness:
Print Publications: Women’s Heath and Men’s Health magazine will be used to create product awareness. These magazines are highly
purchased and read by millennials.
Tracking Codes: Tracking codes located on the side of the bottle, will direct individuals to the company website where they can enter their zip
code for organic farms near their area and find information about the dairy farms contracted with Blue Ribbon Organics.
Farm Tours: These tours will be held on Blue Ribbon Organics contracted farms and allow consumers to see where their food is coming from.
Retailers: Organic Shake Up will be sold in Whole Foods, Hy-Vee, and Trader Joe’s along with other local stores in the five targeted areas. The
stores will offer customer samples for tasting periodically.
4
Business to Business Campaign
Facility Tour: Blue Ribbon Organics will offer facility tours to potential retailers with product samples at the end of every tour.
Expos/Trade Shows: Blue Ribbon Organics will attend the Sustainable Food Summit annually to gain new retailers and
knowledge about current millennial trends.
Assistant Marketing Managers: Blue Ribbon Organics Assistant Marketing Managers will travel to
each store location and work directly with decision makers. They’ll be in charge of organizing
sampling schedules, developing and maintaining strong relationships with millennials and retailers are part of their job description.
Financials
Now
Year 1
Year 2
Year 3
Revenue
All production, packaging, and
distribution costs specific to Organic
Shake Up have been allocated in the
financial statement. We account for 3%
inflation rate in years two and three.
Due to an intense marketing
strategy, Blue Ribbon Organics
experiences a loss in year one, and
begins to generate a profit starting in
year two. Blue Ribbon Organics
marketing expenses continue to grow as
new markets are entered.
With Organic Shake Up’s high
market ability, Blue Ribbon Organics will
remain profitable.
Sales
$
-
$ 1,416,157 $ 8,559,367
$ 19,639,011
Incidental Sales
$
-
$ 7,081
$ 98,195
Total Revenue
$
-
$ 1,423,238 $ 8,602,164
$ 19,737,206
Cost of Goods Sold
$
-
$ 983,203
$ 5,942,558
$ 13,634,882
Gross Profit
$
-
$ 440,035
$ 2,659,606
$ 6,102,325
Total Marketing Expenses
$ (134,961)
$ (539,846)
$ (995,909)
$ (1,610,429)
Production Machines
$ (130,000)
$
$
$
Depreciation
Distribution
$
$
$ (13,000)
$ (43,137)
$ (13,000)
$ (100,876)
$ (13,000)
$ (126,294)
$ 42,797
Operating Expenses
-
-
-
Administrative Expenses
$ (62,250)
$ (249,000)
$ (305,910)
$ (366,011)
Total Operating Expenses
$ (192,250)
$ (305,137)
$ (419,786)
$ (505,304)
Total Expenses
$(327,211)
$ (844,983)
$ (1,415,695) $ (2,115,733)
EBIT (Earnings Before Interest & Taxes)
$ (327,211)
$ (404,948)
$ 1,243,911
Monitoring and Measuring
Market Share
-
Customer Retention
Product Awareness
Year 3: Obtain 65% Product
Year 3: Capture 10% of the
Total Market Share
- Analyze quarterly sales
reports and compare them
with the industry’s sales.
Year 3: 85% Customer
Retention
- Assess quarterly sales reports
of each retailer and survey
data from customer base.
More flavors will be
offered (Cookies and
Cream, Strawberry, Caramel),
enter Dubuque, IA, and
Indianapolis, IN.
Continue with current trial
Continue to promote
tactics and promotional
Organic Shake Up in
strategies, and sponsor additional
educational institutions
throughout the target market. health events.
Increase incentives, such
A specialized marketing
as coupons, and content
team will be established
marketing to inform
to evaluate the
customers.
effectiveness of
advertisements and analyze
communication between Blue
Ribbon Organics and retailers
to re-evaluate product
placement in stores.
Awareness
- Conduct taste trials regularly
throughout retail locations.
- Track analytics of social media
platforms and company website
usage; track tracking codes with
Google Analytics.
Re-evaluate marketing
strategies, and increase Blue
Ribbon Organics presence in
the media and the number of
advertisements being used.
#RETHINKYOURDRINK
5
$ 3,986,592
University of Wisconsin-Platteville
Abigail Fink
Cassondra Miller
Megan Carey
Alex Beaver
Dominique Breunig
Michael Long
Alex Noble
Erin O’Toole
Michelle Meinnert
Amy Silver
Josie Willett
Mitch Giebel
Ariel Hellenbrand
Kallie Kastenson
Rachel Gilson
Ashley Hurtz
Kelly Kowal
Valerie Harris
Advisors: Dr. Annie Kinwa-Muzinga and Dr. Swagata “Ban” Banerjee