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Consumer Uses

The Aegle's Wands has two dominant purposes for consumers. The first is to accurately display information of the food: in terms of ingredients (for possible allergies such as gluten, nuts, etc.), nutritional information, and a nitrate tester to test for pesticides in produce. The second is to track and establish nutritional goals based on food consumption, through the phone application.

Since this product is in the introduction product life cycle stage, there are no products similar to provide history on, besides a recently introduced gluten sensor with little information. As a disruptive biotechnology, the Aegle's Wand is capable of replacing weight watching services and applications, and can perhaps damage sales in medical products such as the Epipen.

Competitive Research

*Exhibit 3

As previously stated, the Aegle's Wand will be competing in the health and wellness industry, under the the healthy eating, nutrition, and weight loss sector, which is best defined as “health and weight management product/services, natural and organic foods, fortified/functional foods, herbal and traditional products, and vitamins and supplements. With that being said, this $647.8 billion US market sector is dominated by long-established food producers diving into healthier foods products, such as Coca Cola Co., Groupe Danone, and Mondelez International Inc., with their following global shares listed below (could not find US alone). Note that key players are not necessarily direct competition.

A prime competitor in the above example is Weight Watchers International Inc., with .2% market share globally. Weight Watchers had a fall of net revenue by 21% to $1.2 billion in 2015, caused by alternatives to its programs, “many of them being free digital apps which also aim to help consumers moderate the behavior” as well as the “growing consumer preference for natural and healthy foods.” Although they have strengths in brand recognition and proven efficacy, Weight Watchers lacks in positioning, which they plan to fix with a more holistic approach in brand strategy.

Fitness and Health Apps

More direct competition rises from the fitness and nutrients digital apps, which works similarly to how the Aegle's Wand can establish goals as one of its uses. Although the first market report is set to release in 2017, it will be priced at about $2000. Therefore, market share for these apps can be determined by usage time and ranking. MyFitnessPal, which has been purchased by Under Armour, captures most of the usage time in nutritional apps, followed by Weight Watchers, and Lose It!, respectively. An additional table has been added to represent the usage and app store ranking of all health and fitness applications.

*Exhibit 4

*Exhibit 5

Calorimeter

Existing calorie counting machine IKA, Fisher Scientific, Cole-Parmer, Labcompare, etc.

Consumer Research

The wellness industry’s rapid growing indicates consumer’s rising concern about being healthy. Especially generations following the baby boomers (1965 - present), they are paying more attention on “wellbeing”, which leads to quite a successful industry that is worth $3.7 trillion. A few key facts indicates this trend, for example, the frequent search of certain vegetables like kale increased 160% in past 5 years, 250% for Greek Yogurt, coconut oil sales reached more than $239 million in 2015, and sales climbed 31.3% compared to the previous year. Customer’s buying behavior made a shift to the health concern side, indicating that consumers are now taking action to get control over their health.

*Exhibit 6: Consumers with positive attitudes towards health age: 18 - 65+

Exhibit 6 demonstrates the consumer’s (age from 18 to 65+) positive attitudes towards health take 24.8% in total. In this group of consumers, the median age is 52.2 years old, age group 18-24 pay relatively less attention to health than other groups, and people over 65 years old concern the most. Consumer with annual income over 10 thousands dollars take the biggest portion when it comes to health problem.

*Exhibit 7: Millennials’ positive attitudes towards health.

Exhibit 7 shows that Millennials have a positive attitude towards health issues. In this age group (68.9% of total sample audience,) female consumers take up to 85.4% percent compare to male consumers. Age group 45-54 and 65+ pay the most attention, followed by age group 35-44, 55-64, 25-34, and then 18-24.

According to Nielsen's report, when it comes to the importance of healthy attributes and willingness to pay a premium for them, Generation Z and Millennials are top 2 on this list, followed by Generation X, Baby Boomers, and Silent Generation. Also in Nielsen’s report, “While health attributes are important factors in purchase decisions for all age groups, percentages are lowest among Silent Generation (aged 65+) respondents. Health attribute ratings are highest among Millennials (21-34), followed by Baby Boomers (50-64), Generation X (35-49) and Generation Z (under 20). The attributes gaining the most favor include products that are GMO-free, have no artificial coloring/ flavors and are all natural.”

*Exhibit 8 Generation Z and Millennials are most willing to pay a premium

After looking into the databases, we have conducted some of our own primary research. Below in Exhibit 9 is our questionnaire we distributed.

*Exhibit 9

The main purpose of the survey is to get a solid grasp on exactly how health conscious people are and how they would feel about a product that would potentially help them become healthier consumers.

SWOT Analysis

Strengths

· Aegle's Wand will be more convenient to carry around and use

· No need to waste food when testing

· Results in 2 minutes

· Combined different features of other products

· Promote idea of taking control over one’s own health, instead diet or weight losing

Weaknesses

· Relatively high technology support cost

Opportunities

· Consumer’s rising concern about health

· Increasing obesity numbers in the United States

· Learning about new ways to eat healthy

· Existing products in this industry are not capable to test combination of ingredient

· Miscounted calorie testing of existing product

Threats

· Lack of awareness of product

· Lack of awareness of brand as a start-up

Analysis of SWOT information:

Problem Analysis

· Relatively high technology support cost -- Combined different features of competitive products in this industry, high cost is inevitable. Seeking investment from Fund or opportunity to corporate with big company to lower financial pressure.

· Lack of product familiarity -- There are not much of people know about the portable food testing equipment. Mostly, people who pay attention to their health and diet will search online and calculate the nutrition fact by themselves. Also, some fitness centers or personal trainers offer the service to provide the diet instruction with the nutrition fact.

Target Market Analysis

Based on the data from Exhibit 7 and 8, Millennials generation is the most important target market due to their role in family and financial independency. “Willingness to pay a premium for health attributes also declines with age. Generation Z and Millennials are more willing to pay a premium for all attributes, even those that are more important to Generation X and Baby Boomers.” (Nielsen, HEALTHY EATING TRENDS AROUND THE WORLD, page 15.) As people born between 1965 - 1985, they are now between age 33 years old and 52 years old. In addition, with the “modern family” trend in US, millennials are now playing the role as living with both older and younger generation under one roof. With health condition of parents and children to take care, millennials are more likely to consider themselves as the decision maker when it comes to health related issue, for example, what food is better for teenagers or what food is healthier for elders. As exhibit 7 shows, in millennials group, female consumers take up to 85.4% regarding health concerns, thus female millennials customers should be the primary target group.

Competitive Analysis

Compared with the possible competitors in the market, first of all, Aegle's Wand has a more convenient size to carry around. Its size will be small around 5 inches, which can be put into a small pocket so that people can carry it easily. Secondly, Aegle’s Wand combines the features of other possible competitors’ products. People can test if the food they are having will cause Anaphylaxis, get the nutrition facts of the food, and…. Moreover, instead of putting part of a meal into an equipment to test the food, Aegle’s Wand just need to be inserted into the food and the result will become available within 2 minutes or less depending on the food item. It is very easy to use and it will not waste food as the competitor’s products.

Marketing Objectives:

1) To achieve sales of $100 million for the first year after introducing of brand.

2) To increase sales of “Aegle’s Wand” by 10% in the first year of the plan.

3) To increase market share by 7% in the first year of the plan and by 5% in years two and three.

4) To achieve a ROI of 20% by the end of 2 year after introduction of product.

Positioning:

By inserting idea “Not the standard wellness” or “What for dinner” into customer’s mind to position against competitor. The trend in this industry remains “Healthy = Weight Losing”, however, after years of fighting with obesity, consumers now can shift attention to stay healthy, which varies to individual. For example, some people have had bad reaction to carbs but absorb proteins well; others who would not gain weight by consuming high protein, carbs, or fat due to different genes type. Thus, the standard diet instruction is not able to cover all health conditions. Moreover, according to exhibit 10, majority people who has allergy to certain foods are not paying attention to the nutrition facts, which increase the risk to get dangerous symptoms.

*Exhibit 10

Bibliography

Global Wellness Economy Monitor January 2017. Global Wellness Institute, 2017, pp. 1–71, Global Wellness Economy Monitor January 2017, static1.squarespace.com/static/54306a8ee4b07ea66ea32cc0/t/58862a472994ca37b8416c61/1485187660666/GWI_WellnessEconomyMonitor2017_FINALweb.pdf

“Weight Watchers International Inc. In Health and Wellness .” Weight Watchers International Inc. In Health and Wellness , Feb. 2017, pp. 1–41. Passport .

Kelly, Maria. “In the Competitive World of Fitness & Nutrition Apps, Who's Got What?” In the Competitive World of Fitness & Nutrition Apps, Who’s Got What?, 7Park Data , 2 Aug. 2017, blog.7parkdata.com/in-the-competitive-world-of-fitness-nutrition-apps-whos-got-what/.

Hochman , Asaf. “Follow the Leaders: Highest Ranking Apps in Google Play Store, United States.” Follow the Leaders: Highest Ranking Apps in Google Play Store, United States, Similar Web , www.similarweb.com/apps/top/google/app-index/us/health-and-fitness/top-free.