This presentation is a mock report to the Board of Directors on bringing a new water filtration device, Lifestraw, to a new market, Chile.

1. Group 2
Patrick Donnelly, Meghan Gattas, Jasmine Williams, Elizabeth
Duffey

2. Agenda

Recap from first presentation

Product Info, Chile, Target Market, Positioning Statement

Communication Strategy

Pricing Strategy

Distribution Strategy

3. Filters at least
1000L
Removes
99.9% of
waterborne
parasites
Requires no
electrical
power, batter
ies or
replacement
parts
Removes
99.999% of
waterborne
bacteria
Contains no
chemicals
**Adding
Spanish to
instructions

4. Who’s Using the Product?

People without access to clean water source

Outdoor enthusiasts

Backpackers, hikers, tourists, campers, outdoorsmen, hu
nters, safari, road trips, emergency preparedness
1

5. Why Chile…..



Most competitive and
fundamentally sound
economy in South
America
Maintained friendly
relations with the
United States since its
transition back to
civilian democratic
rule in 1990
United States-Chile
Free Trade
Agreement (2004)
2, 4

6. Target Market

Primary Target
Tourists
-More than 3.6 million foreigners visit Chile
spending nearly 2 billion USD/year
-High income and high level of education
Adventure Seekers
-travelers who pursue outdoor activities
10

7. Position Statement
For outdoor enthusiasts that need
immediate and convenient access to
drinkable, uncontaminated water. LifeStraw
is a lightweight water filtration system that
instantly provides pure, sterilized water in
times of need. Unlike other water filtration
systems, LifeStraw is the most effective
and portable filtration system currently on
the market.

8. Communication Strategy
Focus Advertising on Transportation
• The best way to reach our target market is to focus
communications on transportation outlets including
airports, subway, ferries.
• Best condition, most commonly used methods of transportation in
Chile for tourists. This is how our target market will get around
when they are in Chile.
• In Chile, cabs very expensive & sketchy, Bus’s crowded & limited
routes, Train system out of date & most railroads out of
commission
• Use GlobalTransportation Advertising Agencies to place
media, hire consultant from Chile to assist with translations/culture

9. Communication Strategy
Increase Brand Awareness Through Social Media and
Discounts


Facebook, Twitter, Instagram campaigns
Point of Purchase Discounts and Product Trials in major retail stores
Build Positive Brand Image “Profit with a Purpose”



Lifestraw’s mission is to create profit with purpose
During slow tourism months, spend time working with UNICEF to get
Lifestraw’s at discounted prices to people in disaster prone areas
Work with local philanthropies & relief organizations volunteering &
donating products

10. Airport Advertisements

11. Airport Advertisements

12. Airport
Advertisements


-Majority of our Target
Market will be entering
the country by
airplane.
-Ads will be in all 7
major airports


Airports most common method
of transportation
Airport Advertisements offer
very high ROI per square foot



Compared to Billboard or Print
Advertisements
Very effective use of Marketing
budget because many people see
ads and they only cost a
reasonable monthly base fee
73% of frequent flyers take the
time to read airport advertising
messages

13. Subway & Ferry Advertisements





Chile has 2,700+ miles of
coastline
Ferry is common method
of travel between cities
Very popular tourist
activity
Subway is most efficient
way to travel around
Santiago
Majority of travelers stay
in/around Santiago and
take excursions out their
tourist destinations during
5,7
the day

14. Promotion
• Offer 20% Discounts for “Likes” on Facebook
• Monthly photo contests for travel/tourism prizes using
#Lifestraw
• Build Audience on Facebook
• Run Facebook/Twitter Ad Campaigns – Target Adventure
Seekers and people in our target market

15. Promotion
Discounts & Product
Trials
 In Store Product Trials
 Point of Purchase
Discount Displays
 Buy One Get One Free


For first 6 months in
Chilean Market
Offer 20% off discounts
through travel blogs

Many people look to travel
blogs to plan
vacations/activities

16. Example: Travel Blog Ad
6

17. Example: Travel Blog Review
13

18. Profit with a Purpose

19. Pricing Strategy

Use market price strategy
to benchmark our price
off of North America price
($19.95) because foreign
travelers to Chile typically
have high income levels

19.95 USD = 9,965.42
CLP

Big Mac Index: $4.56
USD = 3.94 CLP

CLP is undervalued
13.6% in comparison to
the dollar

Chile has a value added
tax of 19%

Overall price =
(9,965.42*.19) +
9,965.42= 11,858.85 CLP
8,9

20. Estimated Demand




7% of all foreign
travelers to Chile are
Adventure seekers
Approximately 3.6
million foreign travelers
to Chile/year
.07*3.6 million =
252,000 is the target
segment
If 252,000 people
purchase one LifeStraw
at $19.95, we would
gain $5.04 million in
revenues

21. Retail Strategy:
Falabella
10,14

22. Seasonal Pricing Strategy
LifeStraw is a humanitarian enterprise, and
giving back is a corporate objective
 In the winter months (JuneSeptember), the majority of trails in
Patagonia are closed; therefore, there are
not any tourists
 We want to focus on selling and
distributing our products to humanitarian
efforts, such as Unicef, for the unit price
($5 USD)

11,12

23. 
Purchase order of 20,000 units to sell in 9 different
locations in Santiago, Chile

2,222 units sold per store location

Market = 252,000 customers

24. 15

25. Costs of Ocean Freight Shipping

Lifestraw Display = 1
cubic ft. at 3lbs each
and holds 15 units

1 container = 19,200
units = $384,000 value

Cost at Market Rate =
$2,842.86 – $3,141.77
1

26. 3PL Services – APL Logistics

APL Logistics will take product from port of
Valparaiso to Falabella DC’s where they will hold
inventory and distribute to retail stores in
Santiago, Chile.
16, 17

27. Perceived Difficulties







Communication – Lifestraw offices in Brazil
3PL - APL Logistics
Lead times with Ocean Freight
Customer Relations
Language Barriers
Reaching Target Market
Substitute Water Filtration Systems

28. References
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1. http://www.vestergaard-frandsen.com/lifestraw
2.<http://www.chile.travel/en/about-chile/the-chilean-people.html
3. http://www.kpmg.de/docs/2012-01-kpmg-doing-business-in-chile.pdf
4.http://www.portal.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx
5. http://www.perceptivetravel.com/adrates.html
6. http://www.nomadicmatt.com/travel-blog/
7. http://www.joeskitchen.com/chile/travel/airports.htm
8. http://www.economist.com/content/big-mac-index
9.http://www.pwc.com/es_CL/cl/publicaciones/assets/doingbusiness.pdf
10. http://www.falabella.com/falabella-cl/static/staticContent1.jsp?active=5&id=cat30063
11. http://www.buylifestraw.com/the-cause
12. http://bluelivingideas.com/2009/04/13/lifestraw-water-filter-provides-clean-water-year/
13. http://www.survivalcommonsense.com/
14. http://fashionbi.com/newspaper/growing-retail-companies-in-south-america
15. http://emerging-markets-research.hktdc.com/business-news/article/Chile/Sell-toSouth-America-sell-to-Chile/rp/en/1/1X4SR4ZP/1X09TRYT.htm
16. http://www.universalcargo.com/blog/bid/71724/4-Factors-for-Considering-Air-Freightvs-Ocean-Freight
17. http://worldfreightrates.com/en/freight