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Cool Baby

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Audra Martin

on 7 March 2017

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Transcript of Cool Baby

Fresh Baby Food
Cool Baby Is a Healthy baby food company focused on providing natural, healthy meals for infants and toddlers.
Cool Baby is founded on the belief that infants and toddlers can be fed tasty, healthy meals, that are convenient for parents.
The Company
Jarred baby foods contain high levels of sodium and other preservatives. Cool baby food contains no chemical preservatives or additives
Some parents resort to making their own baby food to ensure healthiness, but this is time consuming. Cool baby will provide natural, fresh, healthy prepared foods for babies, at lower cost than competitors.
Our food will be produced and packaged according to age. We will offer stages of food from age 6 months to 2 years.
Our Plastic packaging will allow consumers to freeze our products if needed
Our kitchens will allow parents to make fresh foods for their babies with our guide and equipment
The Product
The Product
Stage 3 Foods
12-18 Months
Size: 4OZ
Textured Fruits
Textured Vegetables
Textured Fruits and Vegetable mixtures
Shredded meats and textured protein blends
Diluted Fruit and vegetable juices

Retail Price
$5.18/Pack of 4
$13.99/Case of 3 Packs - Super Saver
The Product
Cool baby food will be distributed via supermarkets nation wide. Some of our target distributors are Kroger, Super Target, and Walmart.

Make and Take

Within 3 years we will have a make and take option available. Our Kitchens will be open on Tuesdays, Thursdays and Sundays for "make your own" sessions. Parents will be able to choose their own ingredients, use our equipment, and make one week's supply of food for their child.
On Saturdays, educational "make your own sessions" will be available. Parents will be educated about healthy nutrition for growing babies. These sessions will include information about nutritional needs for babies at each developmental stage as well as which foods contain those nutrients.
Educational make and take
Stage 1 Foods
6-9 Months
Size: 2.5OZ
Pureed Fruits
Pureed Vegetables
Pureed Fruits and Vegetables Mixtures
Flavored Yogurts

Retail Price
$3.72/Pack of 4
$9.96/Case of 3 Packs - Super Saver
Stage 2 Foods
9-12 Months
Size: 4OZ
Textured Fruits
Textured Vegetables
Textured Fruits and Vegetables Mixtures
Flavored Yogurts
Healthy, protein-rich foods like chicken, quinoa, beef, and pork blends with fruits and vegetables

Retail Price
$4.46/Pack of 4
$11.98/Case of 3 Packs - Super Saver

Stage 4 Foods
18-24 Months
Size: 6OZ
Meals in sectioned packaging
Package contains sliced fruit, diced vegetables, and Pre-cooked meat in cubes or strips
Fruit and Vegetable juices

Retail Price
$6.12/Pack of 4
$16.52/Case of 3 Packs - Super Saver
Because Cool Baby ingredients are fresh, our products will be placed in refrigerated sections of supermarkets
As Cool Baby grows, distribution centers and kitchens will be located nation-wide. This will allow the use of as many locally grown ingredients as possible
The Product
The Industry
The baby food industry is classified under the Specialty Food Industry with SIC code 2032 and NAICS code 311422. The industry is regulated by the Food and Drug Administration.

The global baby food market comprises foods intended for the special nutrition of babies and infants. The largest segments on the baby food market are baby milk formula, dried baby food, prepared baby food, and ready-to-feed baby food.
Baby foods are usually divided into different stages so that they are suitable for each phase of the child’s individual development.

The Industry
Baby Foods Manufacturers hit a rough patch due to declined birth rate during the economic recession period, which contributed to the 9% sales decline between 2008 and 2010. With the gradual economic recovery since 2009, birth rate has increased again. As the US economy has recovered after the economic downturn, Americans are willing to have babies again. This trend is reflected in US dollar sales increase in baby foods which amounted to about 1.53 billion U.S. dollars in 2013. Dollar sales grew by 3.1 percent compared to the previous year 2012 with 1.49 billion US dollars in sales.
In 2010, total baby food sales amounted to 36.7 billion U.S. dollars worldwide, and is projected to grow to about 55 Billion U.S. Dollars by the end of 2015.
The Industry
The industry has seen several transformation in recent years, primarily fueled by parents’ lifestyles as well as their growing interest in food, especially natural and organic. Almost half of new launches from 2007-2012 touted the natural and organic claim. Sales in natural supermarket channels saw a 63% increase during 2011–2013. Organic and natural has become a common theme of baby food companies targeted for acquisition. For example, The Hain Celestial Group purchased Earth’s Best Organic. Also in 2013, Danone forged a partnership with the Happy Family Organic product line.
The Company
Cool Baby is a new company founded in 2015 which upon commencement of operation will provide jarred baby foods manufactured from fresh fruits, vegetables, and proteins for growing babies and toddlers. Cool baby will be based in Indiana, Indianapolis.
Cool baby products will be distributed in retail food stores nationwide.
Cool Baby's Kitchen:
Part of Cool Baby's concept is our
"make and take"
offering. Cool baby will have kitchens located in retail stores where cool baby's products are sold. Parents will be able to use our ingredients and equipment to prepare fresh meals for their babies.
Company Summary:
The Company
Cool baby is 100% owned by Audra Martin. The planned future distribution of ownership will allocate a percent of shares for early investors proportionate with their commitment. In addition, share options will be provided to members of the founding team.

Company Ownership:
The Company
Cool Baby needs a total amount of $480,000 in start-up funding. Start-up funds consists of $169,000 needed for start-up expenses and $311,000 needed for start-up assets.

Funds for start-up expenses will be allocated to Legal costs, Consultants, Research and development, Marketing, and Logistics.
Funds for start-up assets will be allocated to production facilities (including Kitchens) and equipment, start-up inventory, and start-up cash balance.

Financing will include owner's investment of $100,000 and Equity funding of $380,000 for 5% stake in the company.
Start-up Finance Summary:
Value Proposition:
Market Entry and Growth Strategy
Cool baby plans to break even in the first year of operation. To achieve this, cool baby will pursue market share. Cool baby targets 60% market share in its market segment in the first year of operation.
Cool baby utilizes competitive pricing strategy. Prices are set slightly lower than what competitors charge, while product quality will be kept high in comparison to competitors' products. Cool baby will form strategic partnership with suppliers to keep production cost low, thus making it possible for cool baby to sustain the lower prices. Lower prices combined with high quality products will help Cool Baby penetrate the market quickly and reach its goal of 60% market share in the first year of operation.
The Market
Parents’ growing awareness of how their baby's food is sourced and manufactured has given the baby foods industry a wake up call. Parents have become increasingly aware of what they feed their babies, which has led to an increased demand for healthy baby foods.
Parents in this segment are the customers that cool baby will target.
The Market
The global healthy (organic and natural) baby food market is expected to account for US$ 5.6 Bn by 2020, registering a CAGR of 10.5% during the forecast period. The retail sales of organic baby food in the United States in 2012 was 553.9 Million U.S. dollars, a 7.6% growth from 2011. The market is projected to grow to 783.9 Million U.S. dollars in retail sales by 2017. The sales is dominated by “organic prepared baby food” with a 2012 sales of 415.5 Million U.S. dollars in 2012, which is projected to grow up to 599.3 Million U.S. dollars by 2017.
Cool baby plans to take full advantage of the trending market growth with its healthy (organic and natural) baby foods.
Customer Segment:
The Market
Cool Baby's major competitors are;
The Beech-Nut Corporation - Beach-nut Organic Baby Foods - Brand Level Competitor
The Hain Celestial Group - Earth's best organic baby foods - Brand Level Competitor
Nestlé HealthCare Nutrition - Gerber Baby Foods - Product Level Competitor
Nestle's Gerber baby foods currently leads the market with 663 million U.S. dollars in sales in the year 2013. However, Cool baby will compete mainly with it's Brand Level competitors; Beach-Nut and Earth's Best.
We will develop our brand image and market positioning primarily through our healthy baby foods - we will focus our competitive strength on this segment of the market. Our market positioning will be in the lower price quadrant of high quality natural and healthy products.
Competitor Summary:
Cool Baby will be primarily marketed online. Our target outlets will be websites and blogs like Parenting.com,Babycenter.com, and Easygreenmom.com
We will also utilize our website and social media for marketing purposes
The Industry

The Food & Drug Administration (FDA) regulates all aspects of the food retail industry to include ingredients, treatments, packaging, and labeling.
Because of the intricacy of the regulations, it is advisable to partner with a company or license our product to an experienced company who has the experience necessary to deal with the FDA.

Management Team:
Audra Martin, CEO:
Audra who also founded the company in 2015. Audra will also be serving as
sales manager,
with six years of experience in sales and marketing within her own companies.

Seun Oduwole, COO:
Seun is an operations and project management expert with 7 years of experience in banking, construction, and equipment manufacturing.

Trevor Wade, Chief of Production:
Trevor is an expert procurement professional and new venture specialist. He will manage our production/distribution processes as well as advise on the venture’s legal obligations.
Personnel Plan:
Our personnel plan is based upon maximizing productivity while reducing labor burden on the company's operating expenses. As we grow, we expect to see increases in our personnel consistent with increases in sales.
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