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Johannes Kössner

on 17 November 2012

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Transcript of MusclePharm

Legal Situation
Econonomy & Politics Scorecard Demographics Demographics - important and valuable in our scoring.

Demographic data, economic factors & target group. Exporting as market entry strategy

Transportation - important issue Transportation Legal Situation Legal situation & system of a country

Application & Receiving of documents and certificates

Focus on registration procedures Affects business rapidly and heavily

economic assessment, political assessment, structural assessment, access to capital, credit ratings, debt indicators, etc.

Of particular importance were the sales figures and the growth rate of the supplement market. Economy & Politics MusclePharm's Choice 2 2 Target Market 3 4 Market Potential is the most important and therefore most valuable variable in our scoring. It concentrates on demographic, economic factors and our target group.
Sources for the research of the variable „market potential“:

„world development indicators 2011“
„CIA World Fact book 2011“
„Passport GMID“ Market potential Corporate background

American supplement company

headquartered in Denver, Colorado

sport supplements are 100% natural

Available in over 5.000 U.S. retail outlets Company Information Products

MusclePharm Basic Segment

MusclePharm Premium Segment Company Information Current situation

Estimated growth rate of 16.7 % - vitamin market

Estimated growth rate of 30.2 % - sport nutrition market

Reasons for growth
Ageing of Australia’s population
Australia’s obesity epidemic

Market leader - BSN Inc. (28 - 32 Mil. profit 2012) Detailed Analysis Potential target group

“Semi-professional and every day athletes”

4.5 Mil. Australians aged 15+
2.0 Mil. male people - active role in organized sport and physics

Australia's health-consciousness increases Detailed Analysis Heavy Users - Most Attractive

Dedication and passion towards work out
high end exercise complements
Recognize value and benefits


nearly all products
also for “semiprofessional and hobby” sportsmen Customer Segment Enter market on long-term

Become one of leading companies

Break-Even in 3rd year

Build up presence - main task for start phase

Short-term focus - heavy users Goals in Target Market Fast expansion into country’s market

Exploit high growth rates of the Australian market. Market by far not saturated.

1,4 % market share in first year (6.85 Mil.) Strategy Objectives

provide daily base of nutrition and vitamins

two categories

“MusclePharm Basic Segment”
“MusclePharm Premium User Segment” Marketing Mix
Product Branding

healthy supplement
only natural ingredients
maximize outcomes of training

guarantee healthy diet & supports recovery

“We did Green before it was cool!”
“The Athlete's Company!” Marketing Mix
Product Distribution channels

Retail stores (over 86% of sales)

Fitness Centers (just 2 % of sales)

Company owned Online Store (12 % of sales) Marketing Mix
Place Objectives

Main objective - 1.4 % market share in 1st year

13 competitors

Market leader - 9 % market share

MusclePharm - yearly growth of 1+ % Marketing Mix
Promotion Advertising campaign
Promote a socially responsible company

Lifestyle - communication through:
Television commercials
Print ads in sports magazines
Banners and billboards
Testimonials Marketing Mix
Maintain US market prices
Products - middle price segment
Competitors - different pricing strategies
Prices: 39,99 A$ - 79,99 A$ Marketing Mix
Pricing strategy - natural high quality product for relatively low prices

Challenge - convey image of low prices for 100% natural products Marketing Mix
Price Potential Sales & Costs of Production
Full transcript