After conducting extensive market research on Bangkok’s market conditions, our team has concluded that selling health supplements in Thailand would be a lucrative idea. The demand for health products will be spurred by the rise in the middle-income population in Thailand. Thus, we are looking for new funds to kick start this amazing project.
Expected Profits – Net Profit after the first batch of sales- S$40,000
Sales Structure - A network of retail distributors and distribution agents to facilitate sales has already been established.
Demand for our product - A prosperous Thai economy undergoing increase in purchasing power and changing taste and preferences will demand for higher value commodities such as health supplements.
Production Line- In contact with suppliers who are willing to offer a lower price for these merchandises.
Unique product -The health supplement comes in powder form within a sachet and has dual functionality as an oral consumable and for application on the skin.
As a new entry into the health supplement industry, we have chosen to sell chlorophyll supplements and collagen supplements to break into the market. Health supplements have gained popularity worldwide following a shift in mindset to take more precautionary health measures that would ensure a long and healthy life. The exact breakdown of the sales structure can be found in the documents section, titled Our Business.
Profit Margin Estimates
With Bangkok’s population at 8.3 million people, we have faith in our marketing strategy to minimally sell our product to 0.1% of the population (8000 people). Coupled with the fact that we managed to attain a low-cost price for our products, we are confident to hit a net profit of $40,000 from the sales of the first batch of products alone. This is after we deduct all the other costs incurred from running this business.
After which, as per our calculations, we should expect growth from the company to hit net profits of $300,000 by 2021, selling our products to at least 0.5% of the residents in Bangkok.
Why Thailand you may ask?
Due to our expertise in the locality, we have already successfully established a network of retail distributors and distribution agents to facilitate sales of these health supplements. Our ranks of distribution agents currently stand at 60, waiting to market the health products to their friends, relatives and shops. Furthermore, we will also employ social media marketing conjunctly with social media influencers to aggressively push our product onto the market. As time goes by, the word of mouth should spread about how these health supplements are essential towards maintaining a healthy lifestyle.
Why Collagen and Chlorophyll supplements?
Collagen supplements are effective in helping bodies retain their youthfulness through giving users anti-wrinkle skin and improving joint function amongst other benefits. For example, in one study, it was found that women who took a 2.5 gram – 5 gram of collagen for 8 weeks experienced less skin dryness and a remarkable improvement in skin elasticity relative to those who did not take the supplements. Many studies have been conducted on collagen’s benefits, if you are interested to find out more, do click on the link below.
Chlorophyll supplements are widely acclaimed to possess the same benefits as that of eating green vegetables. Many studies have been conducted to validate the authenticity of the benefits of chlorophyll supplements. Benefits such as anti-ageing remedy, acne treatment, blood-building properties, and wound-healing properties. But more importantly, studies conducted on humans and lab rat have repeatedly shown that chlorophyll supplements can prevent and slow cancer growth too. This is a significant finding as there is approximately a one in three risk that we all get cancer of some kind, a finding developed by the American Cancer Society. If you are interested in a more detailed account of the benefits of chlorophyll supplements, do click the link below.
The older population also have the most to gain from eating health supplements. Collagen supplements aid the elderly in improving joint function, promote lean muscle mass and support healthy bones. Whereas for chlorophyll supplements, it has been proven to be effective in easing constipation among elderly people.
Especially in the globalized cities we lived in, our dietary patterns have changed to include more fast food and fried food. Hence these supplements are believed to be the shield that counteracts against the unhealthy lifestyle habits that we have developed, inspiring a new health fad that is trending among the city people to lead healthy lifestyles.
Bangkok has a population of 8.3 million people, so how are we going to pitch to them that they should consume our health supplements daily idea?
The middle class in Thailand has grown to a 49 whopping million of which have begun to lead and desire a different lifestyle, a healthier lifestyle.
The elderly population in Thailand will make up for 20% of the total population. These are another set of customers we will be targeting our health supplements at. Out of the 3-billion Baht market for multi-vitamins supplements, only 3% are catered for the elderly’s consumption.
It is reported that Health and food supplement sales can be expected to contribute to over 30% of the Thai Direct Selling Association in 2018, up from 10% a decade ago.
The market for such health supplements is growing rapidly and our product serves to cater to this demand arising from increased purchasing power of the Thais. Furthermore, with recent news exposing dangerous health products containing illegal substances, the locals will be on the look out for a new, more trustworthy brand with a product that sells what it claims to sell.
As described briefly earlier, our marketing strategy comprise of a 2-prong method, retail distributors and Thai distribution agents. These distribution agents will be entrusted to sell our products as part of their own business while simultaneously bringing in more agents who would not only consume (Why wouldn’t they) but also sell these products. Agents will be spurred to recruit more agents under their wing as they earn a tiered profit through the agents they bring in. With this steady structure of marketing our product through the multiple layers of agents, we can ensure our product will be visible to the Bangkok residents and the middle-income earners in Thailand.
Most of the administrative or business processes have already been setup and organized. We have already established contact with several retail outlets and gathered 60 distributing agents prepared to launch the product on a go. The production of the first batch is ready to begin at any moment now. The red-tape regarding the selling of health supplements in Bangkok has also been sorted out accordingly with the authorities.
Last but not least, PAY IT FORWARD. Certain profits from the company will be used for charity and future aspiring entrepreneurs.