Entreprenuership expert
i
nterview with Dr. Liu Zhen
Before we finish our business plan, w
e were fortunate to have the opportunity to interview Dr. Liu Zhen, a PhD in Finance from the Chinese Academy of Social Sciences, an investment manager
at Hua Yongxin Capital, and a distinguished expert in the healthcare market. With his extensive knowledge and
experience in this field, Dr. Liu proved to be an invaluable resource in our quest for information. His
profound insights and thoughtful responses helped to shed light on various aspects of the health care
market and provided us with a better understanding of its intricacies. Thanks to Dr. Liu's expertise, we
were able to receive comprehensive and enlightening answers to our many questions.
Figure 0a&b: Interview with Dr.Liu
We began by providing a concise overview of our
business plan, encompassing market research and analysis, product details and technology, target
customer demographics, competitor analysis, marketing and promotional strategies, financial planning,
and growth projections,
followed by an
interview.
Situation:
During our interview with Dr. Liu, we had the opportunity to delve into the current
situation of the Levan health care product market. Dr. Liu informed us that the market has entered a
prosperous phase, primarily due to an increasing number of individuals becoming more conscious about the
importance of maintaining a healthy body. This growing awareness has fueled a significant demand for
health care products, including those offered by Levan.
Dr. Liu
notice
d
that there is
a
new
trend in the
health supplement market. More young people are becoming interested in taking care of their health.
This change is because some health problems are happening to people at a younger age now.
Dr. Liu's observations provided us with valuable insights into the market's trajectory and
highlighted the rising need for products that promote overall well-being.
Dr. Liu also mentioned that in the Levan health care product market, we are confronted with
various challenges in our competition against other competitors. The first challenge is the highly
saturated market, where numerous companies offer similar products to consumers. With an increasing
number of players, differentiation becomes crucial to stand out and capture market share. Additionally,
pricing strategies and value propositions need to be carefully considered to attract customers. Another challenge lies in the
constant need for product innovation and research, as consumers are becoming more discerning and
demanding in terms of product effectiveness and safety. Furthermore, competitive marketing and
advertising strategies play a critical role in creating brand awareness and establishing a loyal
customer base amidst stiff competition. Successfully addressing these challenges will enable us to carve
a niche and thrive in the competitive Levan health care product market.
Possible solutions:
One possible solution is to focus on raising awareness of the Levan health care product.
This can be done through targeted marketing campaigns, utilizing various channels such as social media,
television, and print advertisements.
For older consumers, we will consider offline promotions and seminar
events, while for younger consumers, we will leverage e-commerce platforms and social media
advertising.
Additionally, partnering with healthcare professionals and organizations to promote the
benefits and effectiveness of our products can also help increase awareness and credibility. Further more,
we also need to increase our research and development investment and
accelerate the iterative updates of our products based on market demand.
3. Operation and Marketing Planning
3.1 Porter's five force analysis
3.6 The unique advantages of Levan (chemical properties)：
4. Marketing and Sales Development
Executive Summary
High quality healthcare products’ scarcity has a serious effect
on the
well-being of individuals. A lack of high-quality supplements may result in a lack of essential daily
body care, increasing the likelihood of people going to the hospital. The demand for supplements varies from person to person. Although
there
are a large number of supplements in the market, high-quality supplements are truly in demand. Team
F-Levan can provide an attractive alternative for health care product production, we will be able to
make those medical care products more available to everyone.
1.
Our Company
1.1
Company Introduction
Visible L
e
van Co.,Ltd., was established in Shanghai. We have been deeply
involved
in the health and wellness industry for many years, with extensive experience in the production,
research and development, and sales of supplements.
1.2
Our team
Figure 1 Our team structure
1.3
Our Business Ethics
Figure 2 Our Business Ethics
2.
Our Business Project
2.1
Our Main Production
F-Levan team primarily focuses on research and development of
various
supplements suitable for elder people, as well as active sports nutrition products. In the field of
elderly supplements, F-Levan is actively developing products to enhance metabolism, slow down aging, and
improve peristalsis. In the field of sports nutrition products for young adults, F-Levan actively
develop products that meet the needs of various sports enthusiasts after exercise, promoting bone and
muscle repair.
2.2
Business Goals:
Team F-Levan aims to develop Levan health care products in
various
forms, not limiting to tablets and powders only. One of the short-term objectives is to take part
in startup competitions and exhibitions to promote and grow the company, perhaps with the aid of
wise investors. Our primary long-term objective is to increase the production of Levan health care
product, so it is available for each and every individual. Our initial focus will be within the border
of China, but our ultimate goal is to expand to other countries and have a good impact on the world as a
whole.
2.3
Market Demand
Ø
Growing demand for health and wellness
products: Health and wellness have been receiving greater prominence
in
recent years since individuals have become increasingly concerned with living healthy lives. Due to the
pandemic, it highlighted the importance of having access to high-quality medical treatment. The
significance of having strong healthcare systems in place, including adequate medical facilities,
skilled healthcare staff, and efficient healthcare legislation. Thus, an increase in demand for health
items like natural cures, organic foods, and nutritional supplements have resulted from this event. It
also reflects that in the future, F-Levan's health care product market has an upward trend.
Ø
Market share: iiMedia Research data show that in 2022, the market size of
China's health care products industry reached 298.9 billion yuan, an increase of 10.4%, and is expected
to reach 423.7 billion yuan in 2027. The aging population, increase in the prevalence
of
chronic diseases, and rising healthcare costs all contribute to the industry's ongoing growth. Levan
health care products may target particular niche markets, unfulfilled medical requirements, or newly
discovered medical needs, putting them in a strong position to take hold of a sizeable portion of the
expanding market.
Ø
Market growth potential: The aging population, increasing disposable income, and growing
awareness of preventative healthcare have all contributed to the health product industry's enormous
growth potential.
Ø
National policy: Today's national policy in China has played a significant role in
boosting the sales of Levan health care products in several ways. The usage of Traditional Chinese
Medicine (TCM) and herbal health care products, frequently referred to as "Levans," is on the rise,
based on a number of regulations and initiatives implemented by the Chinese government. Levans are
supported by regulations that have been put in place by the government to guarantee their efficacy,
safety, and quality.
Ø
Technology advancement: Recent advances in technology have made it possible to
develop
more effective and sophisticated manufacturing processes for F-Levan's healthcare goods. New
developments in Biotechnology and genetic engineering fields have made it possible to produce health
goods by modifying biological things. Through the modification of genetic material, the production of
recombinant proteins, and the cultivation of cells for therapeutic and diagnostic reasons, these
technologies enable the development of novel medications, vaccines, and therapies. This not only
increased production but also lowered the market price for the F-Levan's health products. More people
could benefit from the Levan health products.
2.4
PESTLE Analysis
Figure 3
PESTLE Analysis
3.
Operation and Marketing Planning
3.1
Porter's five force analysis
Figure 4
Porter's five force
3.2
Competitive Analysis
To assess our market position and identify potential areas for
improvement, we have conducted a comprehensive competitor research, analyzing key players in the
industry. This research aims to provide insights into our competitors' strengths, weaknesses, product
offerings, marketing strategies, and customer perception. By understanding our competitors, we can
better position ourselves to meet the needs of our target audience and maintain our competitive edge in
the market. I mainly focus on four competing companies: Nature's Way, Gaia Herbs, Garden of Life, NOW
Foods.
A.
Nature's Way:
Nature's Way is a well-established brand of natural health
products
that has been in business since 1969. While they do not have a specific product containing Levan, they
offer several products containing lavender, which is a source of Levan. Some notable products include
Calm Aid, a clinically studied lavender supplement that helps reduce tension and stress, and Cool, Calm
& Collected, a blend of lavender, lemon balm, and L-theanine that supports relaxation and focus.
Nature's Way products are widely available online and in retail stores across the US and
Canada.
B.
Gaia Herbs:
Gaia Herbs is a certified organic herbal company founded in 1987.
Similar to Nature's Way, Gaia Herbs does not offer a product explicitly containing Levan, but they
provide products containing honey, another source of Levan. Notable products include Black
Elderberry
Syrup, a tonic supporting immune health, and Golden Milk, a turmeric-based beverage supporting healthy
inflammation response. Gaia Herbs products are available online and in select retail stores in the
US.
C.
Garden of Life:
Garden of Life is a brand of whole food supplements founded in
2000.
Unlike the previous competitors, Garden of Life does offer a product containing Levan, Prebiotin
Prebiotic Fiber Powder. This product blends oligofructose-enriched inulin (OEI) and Levan to nourish
beneficial bacteria throughout the colon and support digestive health. Additionally, they offer other
products containing prebiotics, such as Dr. Formulated Organic Fiber and Raw Organic Fit Protein Powder.
Garden of Life products are available online and in retail stores worldwide.
D.
NOW Foods:
NOW Foods is a family-owned manufacturer of natural health
products
established in 1968. While they do not have a specific product containing Levan, they offer several
products containing prebiotics, such as Inulin Powder, Prebiotic Bifido Boost Powder, and Prebiotic
Fiber with Fibersol-2. NOW Foods also offers products containing honey or lavender, such as
Honey-Roasted Pecans, Lavender Oil, and Lavender & Tea Tree Oil. NOW Foods products are available online
and in retail stores across the US and Canada.
Our Conclusion:
To maintain a competitive advantage in the market, our company
should
focus on highlighting the specific advantages of Levan in our health products, including natural raw
materials and human health benefits, including natural raw materials and human health benefits. By
targeting consumers seeking organic and natural solutions, we can position ourselves uniquely in the
industry. It is crucial to continually monitor the market landscape and keep abreast of consumer
preferences to stay ahead of evolving trends. Leveraging Levan’s health benefits, including
anti-inflammatory, antioxidant, constipation improvement, anti-cancer and more, to effectively promote
our products will help us stand out from our competitors and consolidate our market position.
Additionally, investing in research and product innovation can further enhance our competitiveness in
the health care market, ensuring long-term success and growth for our company.
Figure 5
Comparing Metrics
3.3
Perception Map
Figure 6
Perception Map
3.4
SWOT Analysis
Ø
Strengths:
1. Natural and renewable source: Levans are polysaccharides
derived
from plants, making them a natural and sustainable ingredient.
2. Versatility: Levans have various applications, including food,
pharmaceuticals, cosmetics, and agricultural industries.
3. Health benefits: Levans are known for their prebiotic
properties,
promoting a healthy gut microbiome, and potentially offering therapeutic benefits.
4. Cost-effective production: Levans can be produced through
microbial
fermentation, which can be a cost-effective and efficient process.
Ø
Weaknesses:
1. Limited awareness: The Levan industry might suffer from
limited
public awareness about Levans and their benefits.
2. Extraction challenges: Extracting Levans from plants can be
technically challenging, requiring specialized knowledge and equipment.
3. Shelf life: Levans may have a limited shelf life, which can
pose
challenges for storage and distribution.
Ø
Opportunities:
1. Rising demand for natural products: As consumers increasingly
seek
natural and sustainable ingredients, Levans can meet this demand.
2. Growing health and wellness market: Levans' prebiotic
properties
align with the growing interest in gut health and healthy living.
3. Expansion into new industries: Levans can explore
opportunities in industries like pharmaceuticals, cosmetics, and agriculture.
Ø
Threats:
1. Competition: The Levan industry faces competition from other
prebiotic ingredients, such as inulin or oligofructose.
2. Regulatory challenges: Compliance with regulations and
standards for
food and pharmaceutical industries can pose obstacles.
3. Uncertain market acceptance: The market acceptance of Levans
in
various industries may vary, with potential challenges in gaining widespread adoption.
3.5
Nature of the product:
Physical properties: powder form
Ø
First, powder products are more convenient than liquid or solid
products. Powder products are small and lightweight, making them easy to transport and
handle.
Ø
Second, powder products have a much longer shelf life, far longer
than
liquid or solid products. The composition of powder products makes them extremely resistant to
deterioration or degradation, resulting in durable products that exhibit commendable
cost-effectiveness.
Ø
Third, powdered products have superior stability beyond that of
liquid
or solid products and are particularly unaffected by harsh environmental conditions. These powders are
rarely adversely affected by temperature fluctuations, ultraviolet radiation or other factors that can
seriously affect the efficacy and quality of the product.
Ø
Fourthly, powder products offer unprecedented cost-effectiveness
compared to their liquid or solid counterparts. Their modest packaging material requirements, reduced
transportation costs and rational use of storage space, all of which reflect the frugal nature of powder
products, offer attractive possibilities for minimizing overall production and distribution
costs.
Ø
Last but not least, powdered products have an inherent resistance
to
spills or leaks during transportation or use, in contrast to liquid products. This beneficial
characteristic minimizes the harmful effects of careless soiling or excess waste, thus ensuring a
seamless, convenient experience for the discerning consumers.
3.6
The unique advantages of Levan (chemical properties)：
Ø
Solubility: Levan is usually soluble in water and forms viscous
solutions. The solubility of Levan depends on factors such as temperature, concentration, and molecular
weight.
Ø
Prebiotic Potential: Lev coumarins are prebiotics that are a food
source for beneficial bacteria in the intestinal tract. They promote the growth and activity of these
bacteria in the digestive system.
Ø
Rheological Behavior: Levan solutions are non-Newtonian, meaning
that
their viscosity varies with factors such as concentration, temperature, pH, and shear rate. This
rheological behavior allows it to be used in targeted applications in a variety of industries.
Ø
Functional properties: Levans have functional properties such as
emulsification, foaming, water binding and film forming capabilities. These properties allow them to be
used in a variety of formulations and products.
Ø
Stability: Although the stability of Levans can be affected by
factors
such as moisture and temperature, they are usually stable during storage. Proper storage conditions help
maintain their chemical properties.
3.7
Complimentary Services
Pre-sale service:
Ø
Product Consultation and Answers:
Customers can consult us about Levan products by phone, email, or
online chat, etc. Our professional team will provide detailed answers and assist customers in choosing
the most suitable products.
Ø
Sample provision: We can provide samples of Levan products to customers for trial
and
evaluation, so that customers can understand the quality and performance of products.
Ø
Technical support: We can find a professional technical team, which can provide
customers
with technical guidance and advice on Levan products, including application methods, dosage and so on.
Transportation service:
Ø
Rapid transportation: We adopt express delivery or professional logistics company to
ensure
the rapid transportation of Levan products to ensure that the products reach customers as early as
possible.
Ø
Safe Packaging: We will take appropriate packaging measures to ensure the safety
of
Levan products during transportation and avoid any possible damage to the products.
Ø
Transportation tracking:
We will provide the transportation tracking number simultaneously
so
that customers can know the location and delivery time of the products in real time.
After-sales service:
Ø
After-sales consulting:
Customers can contact our after-sales team at any time if they
encounter any problems or have any needs during the process of using the products, and we will provide
timely answers and assistance.
Ø
Product Returns: If the product received by the customer has quality problems or
does
not match the order, we will provide return and exchange services according to the specific
circumstances.
Ø
Feedback collection: We attach great importance to the opinions and suggestions of our
customers and will regularly collect and analyze their feedback in order to continuously improve our
products and services.
3.8
Packaging
Our prototype: The prototype of our product is a powdered Levan
product.
(These are wholesale packaging and individual packaging form for powdered product
）
(This is the bag used to package our products.)
4.
Marketing and Sales
Development
4.1
Offline Sales Development
Participate in industry exhibitions and fairs:
Rent
booths to display Levan products and have face-to-face communication and promotion with potential
customers.
Organize product promotion activities: Organize
product promotion activities in hospitals, health supermarkets and other places, distribute product
samples and provide professional product interpretation and consultation.
Establish cooperation with health organizations:
Cooperate with nutritionists and health organizations to conduct health lectures and trainings to
promote the health advantages of Levan. (More effective for young and middle-aged)
Make peripheral products that promote Levan,
targeting
specific groups of people: For example, for the elderly, the promotion and introduction of
Zopolysaccharide products can be printed on cloth bags and fans and distributed to the elderly.
4.2
Online Sales Development
Establishment of e-commerce platform: create a
professional product official website as well as a sales platform to provide detailed product
information and purchase channels to facilitate customers to buy Levan products online.
Social media marketing: Utilize social
media
platforms such as WeChat, Weibo, Jitterbug and other social media platforms to continuously release
marketing content of Zolpidem products, including product advantages, user cases, expert
recommendations, etc., to attract the attention of potential customers and to promote the dissemination
and sale of the products.
Search Engine Optimization: Improve the
search
ranking of the official website by means of keyword optimization and website optimization to increase
the discovery and click rate of potential customers.
5.
Risk Management
The medicine safety in the health and wellness industry have
always
received significant public attention. If medicine safety and quality issues occur they can have a
devastating impact on the company. Therefore, we have adopted corresponding control measures to address
food safety issues.
In our project, we only used Escherichia coli DH5a which are safe
for
human bodies. All relevant experiments were performed on an ultra-clean bench to avoid contamination
with the rest of the experimenters. Furthermore. All strains we produce will operate in a laboratory
environment and follow laboratory waste disposal rules. Discarded engineered strains will be sterilized
at 121C and 20 min before being discarded as medical waste. As a result, our engineered bacteria do not
spread in the natural environment.
6.
Finance Forecast
6.1
Our Price Settlement
The product preparation of our projects is priced at cost because
it
ensures that the product sells at a higher price than manufacturing and operating costs, resulting in
profitability. This helps businesses maintain healthy profitability and fund future growth.
Figure 7
Finance Planning
1.Cost pricing can determine a reference point for businesses to
measure the market competitiveness of their products. By comparing costs to market prices, businesses
can tell if their products are reasonably priced or overpriced.
2.Cost-based pricing strategies are relatively simple and easy to
manage. Businesses can track and control costs and reflect them directly on product pricing. This can
help businesses maintain a balance between cost and price.
3.Pricing at cost provides transparency into product prices.
Customers
can more easily understand the pricing formation process of the product and better assess the value of
the product. This helps build customer trust and loyalty.
While pricing at cost has its advantages, factors such as market
demand, competition, and consumer behavior need to be considered when developing a complete pricing
strategy.
Break even Analysis
¥9,800,72 / ( ¥25- ¥1 ) = 410,000 kilograms of Levan that we must sell in one year to break
even.
(Since the strains we need to cultivate are
almost
cost-free, we need a huge output to achieve our set goals, so the total required strains only need 1
RMB.)
6.2
Projected Timeline
Figure 8
Growth Rate Trend
Figure 9
Projected Timeline
6.3
Sales Forecasting
In the next ten years, the production of Levan will maintain a
continuous growth state. Due to the increasing global demand for sustainable and eco-friendly products.
The global demand for sustainable development and environmentally friendly products is increasing. As
one of the biodegradable materials, Levan meets this demand and is expected to be promoted.
Secondly, we learned the government can promote the application
of
Levan by promoting environmental protection policies and regulatory measures. Encouraging manufacturers
to use Levan, limiting the use of conventional plastics, may boost sales. In our most important aspect
of manufacturing, the improvement of manufacturing costs and technical levels will have an impact on its
market competitiveness.
So according to our estimate of the data, the total cost of our
first
year of production in 2023 will need to be 9.8 million, but we can achieve revenue of 125 million
through our high yield technology and thus achieve profitability.
In conclusion, Levan, as a sustainable material, has broad
application
prospects. As people pay more and more attention to environmental protection and sustainable
development, the market demand for Levan will continue to grow.
Figure 10
Sales Forecast Template
7.
Reference
1.
Kerry Amato, Executive Director. “Healthcare
Investing
Trends Report.” HIMSS, 5 July 2022, www.himss.org/resources/healthcare-investing-trends-report.
2.
Hatton, Daryl. “The Latest Healthcare Marketing
Trends.” CoCoPay Blog, 3 Feb.
2023,cocopay.co/blog/posts/the-latest-healthcare-marketing-trends/?gclid=Cj0KCQjw5f2lBhCkARIsAHeTvlieqLZ9-S92ayLoTGHFHF0ThLieHhnsayOc_pDMdty44-2vmgTGBvIaAlRTEALw_wcB.
3.
Health Status and Health Care Service
Utilization,
www.ncbi.nlm.nih.gov/books/NBK215400/. Accessed 26 July 2023.
4.
“
艾媒咨询
: 2023-2024
年中国保健品行业研究及消费者洞察报告
.”
https://www.foodaily.com/index.php/articles/32628
5.
Consumer Healthcare Market Size, Trends, Growth
| 2023
to 2028 (marketdataforecast.com)
6.
Health Products Market and Healthcare
Informatics
Market (globenewswire.com)
7.
The Health Benefits of Honey
,
https://www.jillcarnahan.com/2021/07/19/honey-a-look-at-the-impressive-antiviral-effects-of-this-sweet-treat/