SPLASH

JUICE
SPLASH YOURSELF

Summary
1.

Executive Summary......................................................................................... 3

2.

Detailed analysis of environments......................................................................4

Macro Environment............................................................................................. 4

Micro environment...............................................................................................
7
Members : Alfonso De la Torre
Francisca Daz
3. Segmentation and Target Market........................................................................9
Juan Ignacio Friedl
Juan Francisco Venegas 10
4. Need Analysis...............................................................................................
Teacher
: Steve Baeza
5. Define Value Proposition.................................................................................
11
Assistant
: Josefa Cardemil
Lessons
: Marketing l
6. Report the calculation method for
estimating demand............................................................................................... 12
7.

Definicin de la mezcla comercial.....................................................................13

7.1 Decisiones de Producto:.............................................................................. 13

7.2 Estrategia de precio..................................................................................... 13

7.3 Decisions of Place....................................................................................... 13
7.4 Promocin (MEZCLA COMUNICACIONAL).....................................................14

1. Executive Summary
SPLASH is an emerging natural juice company created by students of the University of
Desarrollo (UDD) in order to participate in the fair ICOMARKET done by the university for
students who are studying Marketing 1. For this occasion the format designed for the fair
are companies that provide food services truck. To understand that this business model is
about is necessary define ICOMARKET and the model of food truck.
The ICOMARKET is an exhibition created by the UDD in which they can participate
students who are studying marketing 1 of commercial engineering so that students can
use the tools that the university has given them trought the years of study which are
necessary to develop a business model together with their peers and enjoy the experience
of creating a real business model..
FOOD TRUCK: the food truck (business on wheels) is a type of business model which
does not need a physical location. It is a cart on wheels which gives free mobility to the
company offering services anywhere while complying with health standards and tradable
permits.
SPLASH is a company that offers the service of natural juices and also has an added
value because the proposed natural juices are also a mixture of fruits and vegetables
which makes be positioned as juice detox (detoxifying juices). By consuming these juices
the person gets clean impurities from the body or excess fat, and help with constipation
and digestion, it is why SPLASH cares about delivering quality service, low in sugar in
order to be a contribution in the community and reduce the rate of obesity in the VIII
region.
SPLASH begin marketing in the ICOMARKET fair of the UDD, but in the future will have an
established place in the city of Concepcin, where consumers can access this service
more personalized.

2. Detailed analysis of environments

Macro Environment
Political and Legal Factors
At present, the political and legal factors have greater relevance in Chile, mainly for Tax
Reform, because it continues being questioned by the companies, institutions and society
in general because through this, a tax burden is imposed exaggerated at times directly
hurting the profitability of companies and reducing potential investments. For all this, it is
that there is great uncertainty in the country with decision making very long term.
On the other hand, the Ministry of Health in recent years has promoted healthy living,
creating campaigns like "Choose to live healthy", applying new laws in favor of this,
prohibiting the sale of junk food in schools, among other things. All this clearly is favorable
for our business because our products are 100% natural.
Finally, in the case of FOOD TRUCK, there are barriers to entry as the cost of the patent,
permits health and municipal permits that would represent a major cost to enter the
industry.

Economic Factors
With regard to economic, Chile is going through a period of economic slowdown, which is
that the country continues to grow, but at rates ever lower. This added to the stability of
inflation, an important indicator in the economy, we can conclude that despite being in an
economic slowdown, the country continues to grow so it is favorable for the company.
Regarding the price of dollar in Chile fluctuates between $ 450 and $ 800 (pesos), but the
average is stable at $ 550. Fluctuations and sudden upward directly affect the price of the
raw material of business. In addition, increases in the future against the dollar are
anticipated, causing the increase of fruits.

Social and Cultural Factors

A global trend that is already taking some years ago and probably last many years, is
searching for a healthy life. Consumers are increasingly aware that to live is very
necessary to lead a healthy life that involves the practice of exercises, sports, eating
healthy foods and even practicing a spiritual life. This creates an opportunity for those
companies that provide tasty products, but at once natural and light.

On the other hand, consumption of drinks and water in Chile has increased in recent
years, establishing itself as the third country with the highest consumption in the region.
Chileans in 2012 consumed a total of 24 liters of juices and nectars per capita, which has
increased to over the years. In addition, if one considers that working hours are becoming
more demanding, increasingly scarce resource time, people prefer to opt for the
consumption of food and drinks already prepared. All this favors SPLASH, having the
characteristics that people demand according to the above.

Technological Factors
Being juices made from non-specialized machinery and inputs, they are not affected by
this factor. However, it could be affected by a new machine that produces pressed juices,
better keeping properties and vitamins each fruit, but this machine needs more investment
this being a barrier to entry to acquire it. But we do not rule out a future acquire.

Environmental factors
In the case of ICOMARKET and affects FOOD TRUCK this factor as part of the fruit that is
not used for juice, is recycled to make compost.

Micro environment
Customers
ICOMARKET customers to be the same students and UDD officials who will go to see and
to buy various products presented, and in the case of FOOD TRUCK. The bargaining
power of consumers in this industry is high and covers some aspects: Our consumer is
traditional and conservative, so it is not easy to innovate in their purchasing behavior.
While today many companies sell the product idea to go and eat on the road, there are still
Chileans who still prefer the comfort of sitting for a while in a caf and enjoy the moment.
On the other side, customers are surrounded by other alternatives such as ice cream
shops, cafes or packaged juices, which are not direct competitors, but they can alter
consumer behavior. In addition, the product is not basic necessities and in times of crisis
can decrease your demand. Being a niche where barriers to entry are rather low, if the
product is achieved by positioning and successful, it is highly likely that others want to
enter the industry.

Providers
Providers can be considered a threat when they have the ability to impose price if they
alter their prices, may reduce the profitability of the company. To SPLASH bargaining
power of suppliers is low due to the high supply availability of fruits and materials needed
to offer the product: containers, light bulbs, etc. As for machinery for the manufacture of
the product, the company needs blenders, which are easy to get as they are initially
collected from our homes and in future could easily get into any of the big shops and
affordable.
On the other hand, it is difficult for providers to integrate forward and they also provide
many more customers and specialize in juices will involve higher costs and not related to
its spin machines.

Potential competitors

Potential competitors are all the other companies that we currently do not participate in an
industry, but have the ability to do so if they choose. The business of the natural juices is a
niche that is not yet exploited in Concepcion, so the threat of new entrants is high, so if the
business does well, there is a high likelihood that new competitors emerge. To determine
this, we must analyze the barriers to entry and exit from the industry.
Regarding entry barriers, as stated above, they are low because the initial investment and
input costs are not high. On the other hand, the company sells directly to consumers and
does not need intermediaries, and in relation to technology is not so specialized is not a
complication.
Finally, in Chile there are no relevant laws to be considered as limiting barrier to entry.
Regarding exit barriers, as in the other barriers do not represent a cost of important outlet,
as working mainly with fruit, as these perishables is difficult to keep a high level of unsold
inventory, assuming good administration of these.

Surrogates competitors
This factor micro environment makes reference organizations that offer substitutes that
can replace Products and Services Industry or seek to present an alternative to meet that
demand.
Surrogates present in ICOMARKET are: Assuan and Casino UDD which sells
packaged juices, ice cream, drinks, smoothies and milkshakes. The other substitutes that
could affect us would be other stands of ICOMARKET.
The cases of FOOD TRUCK, the substitute threaten buying juice welcome. There are
supermarkets, medium and small businesses, online stores, among others, but by
providing a Product healthier and natural, and affordable price, we will create more
Industry Competitiveness.

Direct competitors
In ICOMARKET, no we have direct competitors because other stands not sell the same
product. They sell fast food like "tacos", salads, hot dogs, etc.
And we offer a natural juice Added Value differentiates us from the rest of any competition.
However, for FOOD TRUCK, we have present important direct competitors, these would
mainly: Rendib, Starbucks and Boost.

3. Segmentation and Target Market.

To segment the market we divide into different groups, which have different needs and / or
features. For us, Splash Juice, is important to identify and meet our potential customers to
offer the best possible product suited to their specific needs and characteristics, which is
why our market segmentation consists of:
Geographical segmentation: This type of segmentation focuses on dividing the market
into different geographical areas such as countries, regions, municipalities, etc. For us,
both the Food Truck and the Ico Market, we segment to the population living in Chile, in
the region of Bio-Bio specifically in the Great Concepcin, since, being installed in the
center, not only have customers of Concepcin, but also of San Pedro, Talcahuano,
Chiguayante, among others.
Demographic Segmentation: it involves dividing the market according to demographic
variables such as age, nationality, income, occupation, etc. In the case of food truck,
segment which aim variables that take into account are age, especially since we target
youth and young adults; income, since we target people who can pay for our product;
occupation, as we focus especially on students and workers of any kind. In the case of Ico
Market, we remain more or less the same variables, but in this case as to specify that
occupation is primarily for students UDD.
Segmentation based on behavior: It consists in dividing the market as behavior, attitude
or the use consumers have about product. Both in the case of Food Truck and Ico Market
separate the market by occasion, it would be for food, sport or leisure; by benefits sought,
which in this case would quench thirst of consumers, deliver nutrients vitamins and
minerals, and assist in the care of the body.
Psychographic Segmentation: it consists of separating the market according to
characteristics such as social class, lifestyle, personality, etc. In this case both Ico Market
Food Truck and have the same variables analyzed, which are a healthy lifestyle for our
customers, outgoing personality, middle class, upper middle and high.
Selecting the target market
After conducting market segmentation, we must choose a marketing strategy to attack this
market. Within these strategies we choose the concentrate or niche marketing, because
we are in a niche, being the natural juices a market largely untapped in the region, our
Food Truck has little competition, which by using this strategy will allow us have a large
market share, and we know well the needs of the segment that we are attacking.

In the case of Ico Market, we use the same strategy, concentrated Marketing, since within
the UDD there is almost no competition, except substitutes that Assuan delivery.

4. Need Analysis
We as, Splash Juice, satisfy the need to quench the thirst of our consumers and deliver
nutrients, vitamins and minerals through our products as well as providing the ability to
detoxify your body with our Dtox juices. We also collaborate with the need for people to
maintain a healthy lifestyle, as for how long and all campaigns that has driven the ministry
of health are, we believe that a large part of the population is changing their eating habits a
healthier therefore, also we satisfy that need. By consuming our products, our consumers
will be part of the movement of healthy lifestyle, thus satisfy the need to belong to some
movement.
So as you can see, our product covers much of the Maslow pyramid of needs, and that
satisfies physiological needs to quench thirst and provide nutrients and vitamins to
consumers; meets self-esteem needs to work with a healthier life for people and also
satisfies the need to belong, to engage our consumers of the movement of a healthy
lifestyle.

5. Define Value Proposition

Splash Juice, full your life with essentials things and eliminate everything bad from your
body
Among, Splashers, Splash juice is the brand of natural juice, which satisfy your thirst and
helps you be healthier, because it is made with selected fruits full of vitamins and minerals
for you.
Splash Juice is a natural juice company that delivers nutrients, vitamins and minerals in a
single vessel, which also helps your body detoxify, and to lead a healthier life. We
manufacture our juices with seasonal fruit and selected the best, in order to deliver the
best to our customers, all that an affordable price for everyone.

6. Report the calculation method for estimating demand

To estimate the demand has to take into account factors such as the period, data pattern,
projected costs, desired accuracy and availability of information.
In Chile, the soft drinks market is led by ordinary soda. Second are the mineral water and
packaged juices ready to drink. Then followed flavored waters and lastly there are the light
soft drinks, sports drinks and energy.
The current trend towards a healthier life, coupled with marketing focused on this and
advertising campaigns for young people, the overall increase in consumption, international
trends and certain cultural changes, added a wide range of drinks to everyday table
Chileans.
This offer is meant a change in the more traditional options such as wine and soft drinks,
which are losing ground to the juices, flavored waters and different types of beer.
The average consumption of soft drinks in Chile is 125 liters per capita, the 40 liters of
beer, 26 liters of water, 12 liters of wine and 24 liters of juices and nectars.
For these reasons and because the products named above are substitutes and direct
competitors of the product that is being developed at work, they are considered because it
is the data that serves as the best aproximador to estimate the target market size. In this
way, we obtained for the case of FOOD TRUCK face a market of 5 liters per capita in
Concepcin. Taking into account the time of 8 minutes requires the preparation of a juice
(7 juices per hour) and have 3 blenders for food truck 6 hours worked day and taking into
account washing machines, breaks and unexpected, one average daily demand of 80
juices was calculated.
In the case of ICOMARKET, the estimate of demand is different. It took into account the
number of students, faculty and staff located in offices UDD Ainavillo and Barros Aranas
(XXX students), and considered that they would be on Thursday in ICOMARKET be 350
people. In addition, considering substitutes and direct competitors and complementarities
of our product with other businesses that are in ICOMARKET, we estimate a demand of
150 SPLASH juices during 3 hours of the fair.
For the event that actual demand is less than estimated, apply different promotions,
explained later, to run out of stock.

7. Definicin de la mezcla comercial

7.1 Decisiones de Producto:
Desarrollo de anlisis y justificacin de propuesta
Desarrollo de marca.
Definicin de portfolio de productos.
Definicin del nivel de producto (anlizando todas las dimensiones)
Empaque y etiquetado.
7.2 Estrategia de precio
Estrategia de precio y anlisis previo a la fijacin.
Mtodo de fijacin de precio de venta.
Definicin de precios de venta (lista, combos, liquidacin, etc.).

7.3 Decisions of Place

Channel Definition
A distribution channel is the conduit that each company chooses to bring their products to
consumers in the most complete, efficient and economical as possible. SPLASH channel
is chosen to direct, as it consists of only two entities, manufacturer and consumer.
Distribution Type
SPLASH JUICE offers its products only in the shop, using a direct distribution channel,
without intermediaries. In the case of ICOMARKET, from the stand it will be located in
"UDD space" at the same university and the food truck will depend on the location and
events held and participate SPLASH. To select the locations you consider factors such as
proximity to customers, competition and the supplier; ease of access and environmental
conditions. From this, so far determined initially open in the center of Concepcin between
Cochrane and Arturo Prat streets, its development has been increasing by the high
participation of companies of various kinds on the market, so every day passing many
young adults looking for healthier products and fast access

7.4 Promotion (COMUNICATIONAL MIX)

Actions of the communicational mix
As Splash Juices, we contemplated use digital media through social networks, like
Facebook, Twitter, Instagram, Snapchat and WhatsApp, all this because our target market
handles most, if not all of these social networks, so we arrive directly to our customers.
As for advertising, what we think is to use flyers, which in the case of Ico Market will be
strategically located within the university to promote our product, and that the day of the
event we are not surprise to anyone. We do not have contemplated having public relations
officer, but in the case of food truck, depending on the growth we have, can be evaluated.
We also plan to use promotions on the Ico Market, such as a minute discounts to boost
sales, or contests to keep free juice and thus also improve sales. Finally, for personal
sales, we will focus on customer care from start to end, in order to find all their needs and
tastes, at the moment of make the juices. So our customers will leave happy with their
juice and will return in the future, in addition to recommending to their friends.
Communicational budget
Due to budget constraint presented to the Market Ico not have a defined budget for
promotion, because all that involves expenditure is printing flyers, and they will get them
for free.