Our mission is to establish FlaBlaster, as the most effective topical solution available to free the body of fat and cellulite instantly in the stomach, legs, arms, and buttocks of potential customers across the globe. In clinical trials, the product has been tested and proven to be safe and effective for users of all ages. Our manufacturer, Johnson & Johnson, has over 125 years in the same business environment, and strong business ethics (Our Company n.d.). We intend to use ethical manufacturing practices along with robust distribution channels to bring FlaBlaster to market.
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Product Description: Features, Size, Shape & Design
FlaBlaster cream is a product that targets people who are looking for a quick and safe way to reshape and tone their bodies without undergoing dangerous and costly procedures. Our product provides the quickest and safest way of toning and reshaping bodies because it is a topical cream: non-invasive and have no toxins or chemical side effects. This cream is unlike any other cream on the market; customers will experience instant visible results within one use. It is the most cost-effective non-invasive method to reduce fat in the body and is comparable to liposuction because it reduces the amounts of lipids in the adipose tissue. As soon as it is applied to the affecting area, a warming effect is experienced, which signals it’s immediately processing of emulsifying fat. Customers, who utilize the cream, will visibly see a reduction in cellulite and fat within 30- 45 minutes after application.
The original 32 ounce cream is packaged in a jar with a round open lid. The trial size will come in a pump jar. The common sizes are convenient for shelving and handling. The cream is available in two sizes, 32 ounces and 24 ounces during the trial stage. A package of 24 ounces is for a week’s supply, while a package of 32 ounces is for a month’s supply.
The cream is packaged in brown plastic PET opaque bottles. The opaqueness preserves and extends the shelf life of the cream. It also has a “green” refillable bag that is environmentally friendly. Moreover, the packing is colourful for shelf attraction.
FlaBlaster is a white, non-greasy, fast-absorbing, and non-comedogenic cream. The whiteness of the cream symbolizes purity because the cream has no colouring agent added to it. As a design, the bottle has a wide opening, which enhances the use and accessibility of the cream. The cream package, Boston brown PET bottle, has a very attractive sleek design that appeals to customers.
How It Works
Deep in the Amazon Rainforest Forest, a group of scientist discovered an English Ivy plant. When the plant was tested, the active ingredients SAP emulsified fat on contact (mdidea.com, 2013). According to Ramsey (2013), saponins have therapeutic activity as they help in the absorption of lipids in adipocytes into the bloodstream and thus, speed their metabolism. Along with some of the best-proven fat burning extracts such as cayenne pepper (Capsicum) and Raspberry Ketones, a cream was developed, that transports these toning ingredients into the walls of the adipocytes through the skin. When the active ingredients touch the adipocytes, they generate heat and cause adipocytes to heat up, rupture, and shrink. Eventually, the cream causes loss of fats in the adipocytes and contributes to weight loss (PrWeb.com 2013). There has never been any other product in the market like this cream.
Johnson & Johnson has a strong commitment to customers and professionals who use its products and employees by providing them with security, hygiene, fair compensation, and recognition of their merit. We believe that giving back to the community promotes a better place to live, as well as supporting charities. Also, protecting the environment is a must as we have to maintain the place that we are privileged to use. Last, our stockholders deserve to have a business that is profitable through research, acquiring new equipment, creating reserves, and launching new products (JNJ.com, 2014).
Before the launch of our latest product, the FlaBlaster, research had been conducted to create a product that customers of different backgrounds, age, and power have desired for the best results at a reasonable price. Not only is it proven to work well, but it also provides options for usage and acquisition. Our trial size offers the possibility of testing the product before purchasing the full size yet within an affordable price range. Our deluxe option is not only offered by our distributors but is also offered in spas as a part of treatment packages. The FlaBlaster is a must-have for all the reasons stated above. We assure the high quality of the product that helps in improving the lives of all consumers. Also, the natural ingredients composing FlaBlaster complies with Johnson & Johnson’s commitment to protecting the environment.
|Strengths ||Weaknesses |
|Opportunities ||Threats |
There are several factors that can affect performance and decision-making when it comes to FlaBaster. The ingredients are simple yet complex. The product is made up of SAP, which comes from an English Ivy plant, cayenne pepper, and raspberry ketones. One problem that can affect our decision making is the limitations of raw material supplies. Two of the main ingredients are SAP and ketones; which could become extinct because these ingredients are natural and exotic. If the environment changes, these ingredients may no longer exist. In addition, some of our competitors used ketones, making the supply limited as well. As of right now, there are no government regulations that interfere with the sell or use of our main ingredients (Food and Drug Administration, 2013).
As for competition, GNC sells 249 weight-loss items, which many come from vendors, and 0 weight loss or fat burning creams. To penetrate the weight loss market include stiff competition. However; the advantage for our item would be that this is the first item sold in GNC that is not considered a supplement, but a cream that works instantly. The other advantage is that according to the Food and Drug Administration (FDA) all dietary supplements do not have to be FDA approved, yet if there are complaints, the FDA investigates these items and decides the outcome (GNCincholdings.2013). Lastly, according to Princeton University, the patent law, Article 57, explains that in order to consider a product “state-of-the-art” the product has to be a new invention. Although the product is not completely new, our technology delivery system to instantly shrink is, in fact, state-of-the-art (Princeton University 2013)
Market Size and Growth
One of the important things that we are focusing on is the consumer’s expectations when purchasing the FlaBlaster. The main focus for the customer when purchasing our product is to lose weight. When taking this approach customer would be willing to purchase even if the cost would be a little higher than what they usually spend. We benchmark our product by analyzing the marketing strategies of the company strategy, which uses this approach. Their strategy will help marketing our product by sizing the market in a new way and investing in high-growth markets (strategyn.com, n.d).
In our research, we do several foreseeable future environmental and demographic changes that would have an impact on our product in the next five years. We find that the needs of the customer are changing over time, needing advance, and more improved formulas. According to health and beauty experts, there are evolutional physical changes in human beings every decade or so. Therefore, FlaBlaster must keep updates with those changes. In addition, we also foresee changes in the trend of enhancement beauty products may have great market potential for 2014, and the next consecutive five years.
Although, we intend to target the age group 25 years and over, in the next few years there is a trend targeting towards enhancement beauty products for 50 something-year-olds. Beauty experts speculate 50-something-year-olds will become a big market. This will exist, because of their need to stay in the workforce longer, and will need to use of beauty enhancement products, in order to keep competitive in the workforce (cosmeticdesign.com 2014). Second, natural or naturally based products are extremely popular right now, and seem to be the ‘wave of the future’. Ingredients such as Raspberry Ketones, Garcina Cambogia, and Green Coffee will continue to be the rave in the fat loss industry.
Lastly, we will target the highest obesity countries, such as Mexico which is now the leading United States, with a 32.8% obesity rate; with the United States running close at 31%. Right now, Mexico is a good future market, with 70% of Mexico’s population, either overweight or obese (nydailynews.com 2013). However, on the opposite end, our research shows Japan is one of the thinnest countries in the world, with only 3.2% obesity. This opens up great future market potential because Japan is such a weight conscientious country and will find FlaBlaster of great interest (nationmaster.com 2003-14).
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Target Market Segmentation
The demographics for FlaBlaster’s market may initially and historically appear to be women, but the large number of potential customers who need fat burning products are diverse. We expect to serve two segments of our target market, individual consumers and retailers. According to Markets and Markets (2011), a consumer research firm, obesity and weight gain is on the rise as evidenced by the increase of available products and devices on the market.
The individual consumer segment will consist of men and women between the ages of 18 to 60. They are active and very busy professionals with a mean income of $45,000 – $65,000. It is presumed that these consumers are concerned with appearance, but they don’t have the time or the funds for surgical removal of fat. Results of a survey on a study to determine the prevalence of non-prescription use of some form of weight lost supplements revealed that many adults were long term users and that race/ethnicity and education level were equal (National Center for Biotechnology Information, U.S. National Library of Medicine [NCBI], 2007). The survey revealed the following additional demographics about non-prescription supplement users: 15.2% of adults had used; highest use by women between the ages of 18 to 34 (16.7%). According to data collected by the World Health Organization (2013), more than 1.4 billion adults, 20 and over are overweight in 2008″ (“Obesity,” 2013). Of these over 200 million men and nearly 300 million women” had body mass indexes that indicated they had “excessive fat accumulation” (“Obesity,” 2013).
Considering the data, we can assume that the consumer will buy products that help reduce or eliminate fat that as a means of fulfilling a desire to lose body fat. The generate connection has become wider, with parents, teens and grandparents all working out together and attempting to lose the body fat together. The younger segment has much less income; however, the older segment understands the importance that society places on body image, so the parents will support the teens. As such, the price is important, as these consumers are looking for value-added products. Using a strategy of multi-channels to distribute FlaBlaster will target consumers who identify with these groups.
In the events of self-image and health comes to concern, customers want a product that will supplement their efforts on exercising and eating healthy. They are looking for a product that is easy to use, reasonable price, have a good feeling sensation and with visible results within the shortest possible time.
The target customers for the FlaBlaster are men and women between the ages of 25 and 50, with the lower age range (18-25) possibly choosing a trial option and/or the regular option mainly and with the higher age range (25-50) possibly utilizing the spa option in addition to the trial and regular options.
Our target customers can vary slightly from these guidelines, depending on the area that the FlaBlaster is being marketed. Also, for many of the consumers that would prefer not to take a pill, the cream will be a better option. Advertising should include all our target customers in order to build the desired impact for the product, meaning a mother and a daughter in a spa receiving the treatment including the FlaBlaster, or a couple deciding to live a healthier life and include the FlaBlaster in the weight loss plan (eHow Money, 2014).
FlaBlaster’s unique ability to be used by men and women of all ages determines its target market to be just that, men and women of all ages. Men and women of all ages have sought out the ultimate weight loss solution. That solution has arrived.
FlaBlaster is perfect for the modern-day man who wishes there were more hours in a day. It can be used at the customers’ leisure by simply taking a few minutes to apply the cream to the desired areas and proceeding on with normal activities without the hassle of going to the gym or counting calories. It is also extremely affordable, considering other weight loss products on the market today.
FlaBlaster has the ability to benefit women customers in multiple ways. Not only does the topical solution rid the body of cellulite instantly, it actually burns the fat cells with a relaxing warming sensation great for spa relaxation or therapeutic massage therapy.
Unlike any other weight loss pill, wrap, cream etc., FlaBaster is designed to provide results within 45 minutes, burning approximately 17% of the fat in the area desired to burn. Given that this unique fat burning cream is heavily concentrated with ingredients that burn fat within minutes of using the product, however, there are some competitors that may possibly have an advantage when it comes to marketing and sells. Examples of direct and indirect competition are provided below:
The product Cutting Gel is our closest direct competitor. It specifically targets problem areas where fat pockets are found. It claims to have noticed dramatic results in reducing fat, and transport through skin layers, to where fat is stored. It also claims to help prevent the development of new fat-storing cells. However, the results are not immediate. It can take up to 2 weeks or longer to be seen. There is no proven scientific or medical data to support its statements. Its main active ingredient which claims to reduce fat called Epridril; when researched is which a mysterious substance that has not scientific is finding. Cutting Gel is also very expensive, costing $79.00 dollars per bottle and offers no money-back guarantee (novexbiotech.com 2014).
The fat and cellulite burning product market has strong competition not only from those businesses that compete directly but from businesses that offer alternatives to giving the customers what they need. Some examples are liposuction, weight loss programs, body wraps. Liposuction reshapes and slims certain areas of the body by removing fat. Liposuction is considered plastic surgery and has certain risks involved. While there are other non-invasive procedures like Weight-loss programs that include wellness programs to help clients lose weight and burn fat through aerobic-type activities, and health clubs like Gold’s Gym and LA Fitness are other indirect competitors. Their weakness, however, is the fact that the average overweight person has not successfully availed themselves of the products, because according to the Centers for Disease Control and Prevention, 69% of adults in the United States are still overweight and that number is increasing (“Obesity,” 2013).
Lastly, Body Wraps such as It Works Inc. is another indirect competitor offering body contouring applicator wrap that contains an all-natural plant-based formula that is created to tone and firm the skin with a few days. It is to be applied for 45 minutes at a time, and results are shown within 72 hours of the application. However, the weakness of this method of weight loss is this product is mainly consisting of water loss. In addition, unlike Flablaster, this product is not advertised in stores, ads or television. It is only sold through networking or word-of-mouth and online.
One of the most important goals is to increase sales and drive business among women and men between the ages of 25 and over. By the end of 2018, we hope to increase sales by 5% each year from the number of people that initially purchased from our promotional launch. FlaBlaster is a trademark company. It also has a patent on its proprietary blend of active ingredients: Ivy, Capsicum, and Raspberry Ketones. This mix helps it create product differentiation (Kaho 2014).
To become the only known beauty product that instantly shrinks fat cells upon topical application worldwide. In addition, they also become a household name synonymous with manufacturing exceptionally high-quality products that actually live up to their claims. This will be accomplished by consistently running stimulating ads in high-profile magazines; such as Cosmopolitan, TV ads, using “word-of-mouth” and online advertising.
Market Share, Growth and Continuity
Our company intends to obtain a majority market share (75%) of the health and beauty industry. This will be accomplished by creating a strong marketing mix, product branding, and continuously standardizing product internationally. The product will be priced relatively low, to quickly gain more of the market share (Kotler & Keller 2012).
Trademark and Patent
FlaBlaster has obtained a patent for its proprietary blend of natural ingredients Ivy, cayenne pepper, and ketones. Once having this patent has allowed the company to have a unique advantage on their competitors.
Johnson & Johnson expects to launch FlaBlaster in the 3rd quarter of 2014 in GNC stores. We expect profitability to start in the 3rd quarter of the year 2015. The first year will be financed by funds budgeted for new product development funds. In year double-digit growth rate for the first three years. We expect 5% incremental sales growth in years 3 through 5.
Fitness is a goal that has many health and beauty benefits. FlaBlaster has the ability to shrink fat cells, resulting in weight loss. It reduces cellulite and tightens skin. The warming sensation during application is therapeutic during application. FlaBlaster’s only competitors are laser surgery and liposuction. Although both competitors are effective, FlaBlaster is the most convenient and safe procedure to get immediate results at a fraction of the cost.
FlaBlaster cream is a fat-burning product that has the ability to reshape the body instantly by shrinking fat cells upon application. FlaBlaster is an all-natural, non-toxic, and fragrance-free weight loss product. It is a cream that is offered in two sizes, a 24 ounce trail size white squeezable bottle for $24.00 and a one month supply 32 ounce white open lid jar. Both containers are labeled with identical natural colored labels with easy to read dark brown print. All containers and paper used in packaging are made from recycled plastic and paper. There is a 1-year warranty and a toll-free 24 hour customer service number listed just below the ingredients on each rear label. FlaBlaster is distributed at GNC, The Vitamin Shoppe and at some participating spas that have trained technicians that specialize in the application FlaBlaster will take advantage of social media, word-of-mouth, location, and mobile marketing strategies to reach its target market.
FlaBlaster intends to use Penetration Pricing Strategy primarily because we really want to dominate the market. Our pricing goal is set to achieve 50% of the market share. The product unique Liposome22 Patent will give us the edge in doing so. We have carefully priced each ingredient used, to figure out the total cost figure out our margin profit. The item is marketed at a moderate low- end, in order to gain volume sales and keep customers buying. Therefore, it is priced at $40.00 and trail size $24.99. This price will attract price sensitive customers. This also considers our target customers which are: housewives (18-50+), young adults 18-24) and men (18-50). Overall, we feel this is ideal pricing for FlaBlaster, because it is not underpriced and recovers our cost; thus it is not over-priced which may drive customers away into the hands of our competitors (marketingplan.net 2012).
Distribution Strategy (Direct and Indirect)
FlaBlaster intentions are to have direct store front available exclusively at GNC, Vitamin Shoppe and FlaBlaster.com. Indirect distribution will be available at selected spas.
Integrated marketing Communication Strategy
The objective of the integrated communications strategy is to bring awareness of our product to the target audience and to increase the purchases of FlaBlaster by 5% in year three through five. The use of integrated communications will allow us to reach our target customers by promoting our product through the use of the most common promotional mix: print, media and internet. Magazine ads will be placed in the most common publications, like Good Housekeeping, Glamour, People and Healthy Eating.
Discount coupons will be inserted in the magazines, which will also be promoted on the television commercials by directing viewers to a specific issue of any of the magazines listed. Television commercials will be used to increase awareness in two ways. First, the commercials will drive customers to the company website, Facebook and internet social media sites. Secondly, the commercials will imprint the message of the product in the minds of the targeted consumer. The commercials will be placed on the most watched television channels: ABC, NBC, Fox, ESPN and TBN during the hours of the most watched television programs, like Scandal, Game of Thrones, Monday and Thursday night Football and NBA’s Allstar Game programs. The use of internet based advertisements and social media like Facebook, YouTube and Google, we expect to reach a large percent of our target audience.
FlaBaster is the brand of the fat burning cream. The logo is the name of the product itself, in all capitalized letters in the color red for the purpose of catching consumers’ attention. FlaBaster’s slogan is “Fat here today, gone by tomorrow.” We chose this slogan because it is true to our product. FlaBaster burns fat instantly. This slogan was also chosen because it is catchy, simple and easy to remember. The design scheme consists of a 24oz white bottle with bold red capitalized letters, which is the title. The white background keeps it simple, yet directing the focus straight to the bottle and title itself. The slogan is located directly under the name of the product is red letters as well. This way, the slogans describes the product without having the customers’ second guess or even considers another fat burning product. It subliminally convinces and persuades the consumer to purchase the product.
The proper research has to be done to inform the target market of FlaBlaster’s benefits and existence. Consumer research: Consumer research will be conducted by online surveys accessible at partnering distributors GNC, The Vitamin Shoppe, and participating spas websites. Our distributor’s website, Johnson & Johnson, has also agreed to post our online survey. Industry reports will be studied of competing weight loss products such as supplements and offered at our distributors to take note of market trends over the past five years. These trends will then be used to determine decisions made on distribution and marketing tactics for FlaBlaster.
Break Even Analysis
The break-even analysis indicates that $957,540 is needed in monthly revenue to break-even. The break-even date is projected to be February 2015. In order to make a profit, product sales count will need to exceed 122,460 per month, with revenue exceeding the break-even point of $122,460. (Refer to Appendices Table I and piechart ).
We are projecting the FlaBlaster sales for the next three years starting on June 2014, followed by the next two calendar years (2015 and 2016). Starting with 500 units at the price of $40.00 for the full size product, we project an increase of 100 units each subsequent month. This will bring an increase of $4,000.00 for each 100 units increase. Monthly reviews of the sales will be made in order to make adjustments to stay on track or to improve the sales ( Refer to Appendices table II).
The total expense forecast is $149,040 for a period of three years from 2014 to 2016. Specifically, the expenses for the first year are 11% of the total sales. The expenses for the second and the third year are 10% and 9% of the sales revenues respectively. Marketing the product will form the major expenses as indicated in table 4 in the appendix.
To implement and carry out sells of the product, FlaBaster successfully, we will first have to get buy-in from our sellers, which include GNC and the Vitamin Shoppe. We have to ensure that they understand the product’s purpose, sells goal, target market and more. Then, we will push out ads, TV commercials and internet ads to inform our targeted customers of the new exclusive product. Once customers begin purchasing FlaBaster, then as stated earlier, we will monitor the success of our product up against the marketing plan and projected sales. For additional success measures, we will solicit feedback from each customer target group.
To maximize the return on our marketing plan, the controls that will be used to monitor progress of the FlaBaster product will be Target Market Sales. Given that our target customers are housewives, young adults and men, we will measure the progress based on the units sold to each customer target group each week to both GNC and the Vitamin Shoppe stores. This progress or lack of progress will be measured up against our marketing plan of projected sales. In addition, we will solicit customer feedback for the purpose of measuring progress to each customer target group.
“The structure of Johnson & Johnson is based on the principle of decentralized management. The Executive Committee is the principal management group responsible for the strategic operations and allocations of the resources of the Company (“Senior Management,” n.d., para. 2). The committee that oversees the marketing functions is led by Linda Pendergrass, who oversees the consumer segment of the organization. The new product development and marketing team will report to Linda and will be led by Cherylene Anderson, functioning as the Product Manager. Using the “brand-asset management team (BAMT)” horizontal structure, the product team will consist of the following positions: engineer (E), finance/accounting specialist (F), distribution specialist (D), sales manager (S), communication specialist (C), and market researcher (R) (Kotler & Keller, 2012, p. 625). The organization chart shown below represents the structure of the team.
In the event that Johnson & Johnson is contacted with any questioning about patenting, as well as possible lawsuits due to confirmed cases of health setbacks caused by the FlaBlaster, the following procedures should be followed:
- Consult with our legal department in order to access the possible damage.
- Consult with our financial department for available funds to possible payoffs.
- Through our legal department, contact the legal departments for the subsequent companies in order to discuss patent issues.
- Through our legal department, contact the legal representative of any party alleged affected by the effects of the FlaBlaster to discuss any options for settlement.
We also have consulted with FM Global in order to establish a cost-effective prevention-loss protection and deciding on an insurance plan that will protect the company and value our business in order to remain loyal to our customers, employees and shareholders (FM Global, 2014).
Table I. Break Even Analysis.
|Total fixed expenses $||122,460|
|Total fixed expenses ratio||4.23%|
|Operating profit $||957,540|
Number of products in 100, 000s
Monthly breakeven point
Breakeven analysis table.
|Monthly Revenue Break-even||$24,789|
|Average Percent Variable Cost||14%|
|Estimated Monthly Fixed Cost||$29,345|
Sales and Cost Forecast
Monthly breakeven table.
|Direct Cost of Sales||2014||2015||2016|
|Subtotal Direct Cost of Sales||$33,431||$48,800||$49,695|
Sales and cost forecast
Expense Forecast. (Source: eHow Money, 2014).
|Magazine advertisement||$5,000||$19, 800||$37,260|
|Total marketing expenses||$19,800||$98,400||149,040|
|Percent of sales||11%||10%||9%|
Table IV. Milestone Chart. ( Kotler & Keller, 2012).
|Milestone||Start Date 2014||End Date |
|Marketing plan||1 March||30 March||$957,540||Cherylene Anderson||Management|
|Website||14 March||10 April||$500,600||Rashad Pruitt||Engineering|
|Budgeting||15 March||30 March||$2,000,000||Michelle Brannan||Finance|
|Transport||15 May||10 June||$300,450||Brittany Goodman||Distribution|
|Sales||15 April||30 May||$122,460||James Keith||Sales|
|Advertisement||1 March||1 April||$19,800||Omar David||Communication|
|Market research||1 March||30 April||$200,500||Melanie Dealecar||Research|
Instantly Removes Unwanted Fat in One Application
Additional product Info
Directions: Use twice a day, for one full week, preferable same time, and same area. Then use every other day until desired weight is achieved. First measure the area before applying and again after. Massage the cream for 3-5 minutes on an entire area (ie. back of the thighs). Wait 15- 30 minutes, a visible realized. If, cellulite was present, the dimples will be decreased and the skin will be smoother and look tighter. If no cellulite, the circumference area measured will have a decrease in inches. To prove not just water weight loss, drink water, helps other ingredients to flush the fat out. You can still eat sensibly with using this cream and still lose the weight!
We recommend that you eat a healthy diet and working out 30 minutes will enhance the results. Results will vary. If you have any medical conditions see a physician before using the product. All patrons use at their own discretions. Our labs or any affiliates are not held liable for any malpractices. We have a money back guarantee for any reason customers are not satisfied.
FlaBlaster Inc. Located: Flablaster Inc. 221 FlaBlaster Lane, Denton, Texas 92123
Manufacture: Johnson & Johnson HQ
FlaBlaster Cream – Product Slogan- “Fat Here Today, Gone By Tomorrow”.
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