HeatUp Food Warming Ware

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HeatUp Food Warming Ware

• by Exotherm

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Agenda

• Business Description
• Market Strategies
• Competitive Strategies
• Product Design Development
• Financial Projections
• Questions

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Business Description
Industry Trends . Industry Gap . Product
Description . Competitive Advantages.
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Industry Trends

• Increasing consumption of convenience food/ meals
• Expected to continue as society becomes more
  time-challenged
• By 2010, 65 of the food dollar will be spent on
  convenience food
• Consumers are becoming increasingly
  health-conscious
• Increasing demand for more healthy, home-cooked
  food
• However, packed home-cooked meals are cold and
  unappetising by the time they are eaten
• Heat containers are heavy and inconvenient to
  carry around

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Industry Gap

• Consumers want nutritious and hot convenience
  meals,
• But no easy efficient way of heating food
  on-the-go
• ?What they want is a portable food-packaging
  device, allowing them to heat up food on demand
• But no such product is available in the market as
  yet

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Product Description

• What is it?
• Unique food-packaging technology that can store
  and heat food, without a power source
• Light-weight, quick and efficient, power
  source-independent, convenient and safe
• Relies on exothermic energy provided by chemical
  reactions to heat food up

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How to operate it?

• Press a button at the base of the container
• Shake it a little to speed up the process
• Pour in food
• An easy 3-step process!
• Long-lasting reaction means food can also be
  continuously kept warm
• After usage, it can be thrown away, fuss-free

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How does it work?

• Double-layered container
• Between layers, calcium chloride is scattered and
  distilled water in sachet at base of container
• When user presses base, a needle inside will
  burst the sachet of water and exothermic chemical
  reaction will start!
• Heat conducted through inner thin plastic layer
  to food

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HeatUps Competitive Advantages
3. Cheap Unlike a microwave oven, HeatUp only
costs 0.35 per container For the convenience it
brings, this is a small price 4. Innovative and
Trendy Packaging industry growth 23 a
year Incorporating the convenience food packaging
and food heating industries Surprise,
entertainment and total experience will be the
keys to success No short of a thrilling new
experience set to revolutionalise these
industries

• Portable and handy Lightweight, Power-source
  Independent, Disposable
• Current devices non-portable
• On-the-go devices cumbersome and impractical to
  use in homes and offices
• Power source-independent it can be used
  anytime, anywhere
• Light-weight and disposable
• 2. Safe and easy to use
• No electricity or use of flame
• Safe for everyone to use especially the young
  and elderly

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HeatUps Competitive Advantages
5. Wide Potential Applications

• Caterers
• Lighter/ more convenient than conventional solid
  fuel heaters
• Home delivery caterers using HeatUp will add
  value to their food as it can be heated up very
  conveniently
• Airlines can reduce their costs and space if
  their caterers use HeatUp passengers can heat
  up food whenever they want
• Food retailers/ suppliers
• Packaging their food in HeatUp containers
  enhances their convenience edge
• Military
• Army and navy can use HeatUp in their various
  outfield expeditions
• Convenient, fast and most importantly power
  source-independent

• Schools
• Homemakers can pack nutritious meals for their
  children
• Older students studying late in campus can heat
  up canned food or food bought earlier
• Offices
• Heat up food at the convenience of their own
  desks
• Outdoor camping trips
• Save the trouble of using messy burners and
  cleanups

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Market Strategies
Market Analysis . Unique Selling Proposition.
Marketing Mix Strategies. Sales Projection
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Market Strategies Market Analysis

• Market Growth Rates and Trends
• The convenience food market is growing steadily.
• Ave. no. of meals consumed away from home gt3.10
• Ave. no. of times no time for/access to hot meal
  gt2.29
• Consumers are become more time-challenged
• Consumers demand greater convenience and speed of
  food preparation.

• Market Sales Potential
• In Singapore alone, the size of the convenience
  food market is 60 of the population (2.55m) and
  growing
• Market driving sectors working parents, students
  and young working adults (75)
• Large market size favorable growth trends
  tremendous sales potential.

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Market Strategies Market Analysis

• Target market
• Main target market young working adults and
  students these sectors combined, drive 60 of
  the demand for convenience foods in Singapore
• Secondary markets campers, commercial players,
  the military.

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Market Strategies Unique Selling Proposition

• Image to fit the active lifestyles of target
  market.
• Pop Go!
• To busy, active individuals who are often away
  from home, HeatUp Food Warming Ware is a
  revolutionary heat-generating food container that
  enables you to heat up food wherever you are,
  whenever you want to. It is the perfect
  accompaniment to your active lifestyle.

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Market Strategies Marketing Mix Strategy

• Pricing strategy Market penetration
• Why?
• Attract a large number of buyers and win a larger
  market share.
• Compatible with the target markets budget
• Economies of scale through mass production
• Entering the market at a low price will deter
  potential competitors from entering the market.

• Promotion strategy
• Focus on sales promotions and miscellaneous
  marketing.
• Proposed sales promotions include
• Tie-ups with established canned food distributors
  such as Campbells and Dinte Moore.
• Discounted introductory price.

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Market Strategies Marketing Mix Strategy

• Why?
• Making use of market intermediaries
• Reduces the number of contacts for Exotherm.
• Allows Exotherm to leverage on the channels
  expertise to better match supply and demand
• Through the channels contact, experience,
  specialization, and scale of operation,
  intermediaries will be able to better push the
  product more than Exotherm can on its own.
• Intensive Distribution wider reach to potential
  buyers.
• Recommended retail outlets have a high volume of
  individuals from the target market.

• Distribution strategy
• Distribution chain wholesalers and retailers
• Intensive distribution strategy
• Recommended retail outlets convenience store,
  supermarkets, office convenience shops and school
  bookshops.

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Market StrategiesSales Potential

• Total No. of People (T) Total No Target
  Segment likely to buy
• 1,640,0000.65
• approx. 1,066,000
• Ave Rev per customer/year (A) Price of Pack
  (10)
• Average No of Packs
• 3.50 6
• 21
• Sales Projection (S) A T
• 1,066,000 21
• 22,386,000

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Competitive Strategies
SWOT Analysis . Competitor Analysis . Dealing
with Competition . Entry Barriers. Future
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SWOT Analysis

• STRENGTHS
• Entirely new product
• High differentiation
• Caters to those always on the move
• Product benefits stated earlier

• OPPORTUNITIES
• High demand for hot food
• Untapped market for portable, disposable
  warming devices
• Lack of competitors
• Sole user of technology
• First mover advantage
• Securing future profits CamelBak

• WEAKNESSES
• Key players in established industries
• Good reputation and loyal customers
• Customer Commitment
• Tried and tested technology
• Economies of Scale
• Difficult to penetrate market

• THREATS
• Existing Technologies
• Direct competitor reactions Price War
• Piracy

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Competitor Analysis

• Plugged Devices
• Microwave, Oven, Heater, Stoves, etc
• Bulky, Expensive and Energy consuming
• Limited Mobility and Uses
• Many large players offering same technologies
• Not a threat Targets a different market
• Consumers always on the go

• Portable Devices
• Less competing technologies
• Solid Fuel
• Outfield Stove
• Reach higher temperatures
• Waste and Danger
• Limited Applications Environment
• Strong Winds
• Wet Climate

Disposable Containers
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Dealing with Competition

• Unique Qualities - Marketing differentiation
• Lifestyle Haste, Efficiency and Mobility
• Perfect Solution to quick, hot meals
• Collaborating with existing manufacturers
• Helps break into market
• Riding on established Goodwill
• Lessens resistance
• Lessens risk

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Entry Barriers

• Patented for 5 years
• Improve competitive edge
• Innovate
• Establish market standing
• Improve market share (Monopoly)
• First mover advantage
• Technologically superior
• More experience

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Future

• Innovation vital to survival
• Reactions Reach higher temperatures
• Materials Better conductivity
• Different applications
• Fully replace current disposable containers
• Represents a whole new kind of lifestyle

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Product Design Development
Design . Materials Needed . Further Developments
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Design
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Materials

• Calcium Chloride
• Polyethylene

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Further Development

• Aluminum inner
• Foam outer layer

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Financial Projections
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Presented by

• Mok Zhenyuan Jezreel
• See Zhao Shan Christian
• Teh Zhi Ling Alvina
• Teo Lian Eng Lynette

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Questions
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HeatUp Technology

• Enthalpy heat of CaCl2(aq) -82.9 kJ/mol
• It is assumed that the specific heat and density
  of the solution are equivalent to that of water
  4.184 J/gC and 1.000g/mL.
• Chemical formula CaCl2 (s) Ca2 (aq) 2 Cl-
  (aq) H -82.9 kJ
• Molar mass of CaCl2 40.08g/mol 2 x 35.45g/mol
  110.98g/mol
• Heat produced when 10.0g of CaCl2 dissolve in
  50mL
• 10.0g x 1mol/110.98g x -82.9kJ/1mol -7.470kJ
• This energy is used to heat 50.0g (50ml) of
  water
• -(-7.470kJ)/ (4.184J/ X 50.0g) x 1000 35.71
  degrees
• 10g of Calcium Chloride has enough energy to
  raise the temperature by 35.71 degrees Celsius
  from room temperature.

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Thank You!