The US market introduction of an European Sports Nutrition Brand
Correo electrónico del autorrmayolrgmail.com
Tutor / director / evaluadorShields, Herb
Tipo de documentoProyecto/Trabajo final de carrera
Condiciones de accesoAcceso abierto
The US sports nutrition market is the biggest sport nutrition market in the world ($4.7 billion, 60% world share) and is growing at a 7% annual rate. The market is crowded of supplement brands both in the strength gainers and endurance athletes segments. However, it is suggested that there is space for a company that markets high benefit products to the serious endurance athlete. The proposed solution consists in importing product from a science-based and free-of-banned-substances European brand (Powergmy). Despite some import procedures have to be followed and paperwork is needed, the import of supplementation products do not require pre-market approval by the Federal Drug Administration (FDA); only correct labeling and following certain manufacturing rules. Import taxes are around 6-7% and using freight forwarders and third party logistics is recommended. Warehousing and shipping operations should be outsourced. Marketing, sales and management should be the core activities of the importer. After analyzing the competition and looking at what the leading brand does (Hammer Nutrition), it is recommended that the product portfolio is restructured so that consumers understand better the benefits of every product. Additionally, the marketing activity should be able to target and appeal the endurance athlete more successfully. The project is projected to be profitable within 4 years and an austere paid advertising campaign within the first year is recommended. The company should take advantage of social media and viral technologies to increase brand awareness in a limited budget. The outsourced logistic activity gives the flexibility to operate in a wide range of sales volume at a contained cost; with low barriers of exit in case the company goes out of business.