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TABLE OF CONTENTS 1. THE TSAMPA TEAM 2 2. BOARD OF ADVISORS 3 3. EXECUTIVE SUMMARY 4 4. THE FOOD BARS INDUSTRY 7 5. OUR PRODUCT 8 6. TARGET MARKET 10 7. MARKETING AND SALES STRATEGY 11 8. BUSINESS MODEL 13 9. COMPETITION 15 10. COMPETITIVE ADVANTAGE 16 11. FINANCIALS 17 THE TSAMPA TEAM Rinchen Dolma Tenzin Kusang Syracuse University ’17 Syracuse University ’15 Biology & Public Health Biology Communications Nutritional Content Tibetan: Born in Lhasa Tibetan: Born in Nepal Tenzin Lama Norzom Lama Syracuse University ’15 Syracuse University ’17 Environmental Engineering Information Mgmt. & Technology Product Development Research Tibetan: Born in Nepal Tibetan: Born in Nepal Pasang Lhamo Rinchen Namgyal Syracuse University ’15 RIT, MBA Policy Studies & Public Relations Corporate Accounting and MIS Product Design Financials Estimator Tibetan: Born in South India Tibetan: Born in North India 1 BOARD OF ADVISORS Bruce Kingma Lopsang Lama Professor of Stacey Keef Import and export Entrepreneurship at Executive Director of Manger of Himalayan the School of RVD Idea, a start up Handicrafts from Nepal Information Studies venture in Syracuse and India at Syracuse University University Losang Rabgey Dr. Tashi Rabgey Latri Dakpa Co-founders and Research Professor of Rinpoche Executive Director International Affairs at Founder and President of of Machik in George Washington the Bon Children’s Washinton, D.C. University Home in Dolanji, India Dhardon Sharling Tashi Wangdu Parliament member of CEO of Federation the Tibetan community of Tibetan Co-operatives located in Initiatives Private Ltd. Dharamshala, India (FTCI) in Mungod, India 2 EXECUTIVE SUMMARY TEAM/COMPANY NAME: tsampa - A Taste of Tibet INDUSTRY: Food Bars ONE LINE PITCH: tsampa- A Taste of Tibet is a nutrition bar produced by Tibetan refugees in India and sold in the US. Proceeds will support the Federation of Tibetan Cooperatives in India. ABSTRACT: The business will be led by six students of Tibetan descent who want to make a difference in the lives of individuals in the Tibetan refugee camps. Proceeds from tsampa bar will go towards funding the Federation of Tibetan Cooperatives in India which works to create employment, support farmers and entrepreneurs within the Tibetan communities. The business has a diverse Board of Advisors with expertise in business and/or influence in the Tibetan community. A key ingredient in “tsampa-A Taste of Tibet” is barley, which is a staple food of the Tibetan people and provides superior nutritional benefits than other grains. CUSTOMER PROBLEM: The food bars currently in the market are focused on providing high-protein or high-fiber but few bars provide a holistic and balanced approach. Also, no other food bar in the market is directly associated with a social cause. YOUR SOLUTION: tsampa- A Taste of Tibet provides holistic nutritional benefits such as strengthening of immune system, detoxification of body, healthy skin, and cleansing of digestive tract. Our product also fulfills the rising number of socially-conscious consumers who are seeking for more ethical and sustainable products. Every level of our business has a direct impact on the farmers and workers in India creating the product. Hence, the food bar has a Fair Trade Certified label, which establishes the our business meets the fair trade audits and positively influences the community creating the product. The bar packaging will include stories of Tibetans from the Federation of Tibetan Cooperatives identifying the individuals that sales from the bars will help. TARGET MARKET: tsampa- A Taste of Tibet is designed for on-the-go individuals who want a tasty yet nutritionally balanced meal replacement bar. Our primary consumers are individuals between the ages of 18 to 34-year-olds. Our product will be marketed towards health-conscious individuals who need a nutritious on-the-go meal bar that is organic yet affordable. 3 MARKETING & SALES STRATEGY: Our strategy is to use the Syracuse University network to get a special product placement at the school bookstore and cafes around the campus. In order to get publicity and share the company’s mission, a college ambassador program will be developed in which student ambassadors will reach out to the student body to sell our product. Using the team members’ network, the next phase is to expand the ambassador program to other colleges. We have projected that after four years into the ambassador program we will have a total of 60 campuses The final phase is to get the product sold at nutrition specialty stores such as Whole Foods, Wegmans, and Trader Joe’s. BUSINESS MODEL: The main ingredient barley will be bought from farmers in India. The product will be developed and packaged at the manufacturing unit by Tibetans from the settlements. The final product will be exported to the US to be sold. FUNDS NEEDED: Our team has estimated that U.S. $60,000 will be needed as an initial investment (capital). The business has potential to recover the capital in less than 3 years and be able to remain financially stable and self-reliant at the end of third year. USE OF FUNDS: The capital amount of $60,000 will be used for setting up a manufacturing centre, buying machineries, hiring employees, and purchasing raw materials. The company will distribute 60% of net income to the Federation of Tibetan Cooperatives in India, specifically focusing on supporting Tibetan entrepreneurs in the settlement. FINANCIAL 5-YEAR TRAJECTORY: Number of bars expected to sell in Year 1- 4,000 Bars; Year 2- 12,000 Bars; Year 3- 35,000 Bars; Year 4- 65,000 Bars; Year 5- 120,000 Bars. EXIT STRATEGY: No plan to exit. We want to continue to run the business. COMPETITION: Food bars have recently become a big marketplace; the growth rates for successful product types have been in the double digits. The reasons for this incredible surge range from a wave of new product launches, increased sophistication, and continued innovation from different food bars. The new recent trend of blurring meals and snacks and an emphasis on portion control is mainly the reason for this type of growth. Looking at a list of popular food bars in the industry, tsampa- A Taste of Tibet exceeds in terms of fiber, protein, and calcium content compared to any other bars. 4 COMPETITIVE ADVANTAGE: Although tsampa- A Taste of Tibet is entering a competitive market of the nutrition bar industry, it stands unique amongst its competitors. One of these advantages is that, tsampa bar uses ground barley as its key ingredients, which has far more superior nutritional value to other grains in the industry. Tsampa- A Taste of Tibet also has a mission to directly invest 60% of net revenue to social causes in the Tibetan refugee settlements in India. Another one of its advantages is to reduce negative environmental impacts by using local organic ingredients. Lastly, the tsampa bar aims for a broader range of target population who are constantly on the go and who lack key nutrients such as protein and fiber in their diet. The below diagram expresses these unique characteristics of our product, tsampa - A Taste of Tibet. 60% of our net revenue is expended to support social causes in the Tibetan refugee settlements in India. 5 THE FOOD BARS INDUSTRY 9000 The food bars industry includes cereal/granola bars and energy/nutrition bars. A trend in the market is the blurring 8,293 distinctions between cereal/granola bars and energy/ 7,781 nutrition bars. Specifically, cereal/granola bars are focusing 6750 7,303 more on nutrition, and energy/nutrition bars are 6,759 incorporating more decadent ingredients to make them 6,211 more appetizing. 5,669 With this food trend, food marketers are appealing to 4500 consumers desire for organic, gluten-free, and energy- enriched bars. There are also multiple health halo product Projected retail sales of positioning such as wholesome grains, exotic protein Dollars (in million) Dollars(in million) Food bars in the U.S from sources, and super foods which are collectively driving up 2250 2011-2016 growth rates. (in millions of dollar) The shift in the food bar market over the past few years has resulted in considerable growth in the industry. According to MarketResearch.com, the food bars market is projected to 0 approach $8.3 billion in 2016, for a compound annual 2011 2012 2013 2014 2015 2016 growth rate (CAGR) of 7.5% over the five-year 2012 to Years 2016 period. Source: Packaged Facts Another trend is the blurring of meals and snacks, which make food bars a convenient option for consumers who are looking for meals on-the-go that are nutritionally rich and tasty. High obesity rates and less leisure time are two factors driving the $2.2 billion meal replacement product manufacturing industry (IBISWorld). Industry revenue increased by an average of 6.9% per year from 2006 to 2011. There is business opportunity in catering to this market segment. 6 OUR PRODUCT Barley is a key ingredient in tsampa- A Taste of Tibet, which has large quantities of fiber and protein. Our product not only provides high-fiber and high-protein but also a plethora of vitamins and minerals which allows our nutrition bar to be a meal replacement option. Below is a breakdown of our ingredients and its nutritional benefits. Our product will have USDA Organic and Fair Trade certification which will demonstrate that our product is environmentally sustainable and ethically produced. In addition, our business will invest 60% of its net revenue to the Federation of Tibetan Cooperatives in India (FTCI) which works to create employment, support farmers and entrepreneurs in the Tibetan community. Our bar packaging will also include stories of Tibetans from FTCI, identifying the individuals that sales from the bars will help.