GRAPE SEED OIL PROJECT
Project objective
Provide recommendations on the best ways to launch and market the product in China.
Previously the product was only sold in South Africa
Achieved through:
Market research
Marketing strategy proposal.
Elevator Pitch.
The grape seed oil is a fairly new product to Chinese oil market. As the Chinese GDP is
growing on a regular basis annually, there are an increasing number of people paying
more attention to improve the quality of life. As a healthy oil option grape seed oil can
attract these citizens by its high smoke point and numerous medical benefits. The total
revenue of cooking oil industry in China was $171.1 billion in 2013 and is going up
17.3% per year (IBISWorld report). The B-well Grape seed oil is ready for sale now with
all the required governmental certification, retailing at 45RMB per 500ml bottle online
and 55RMB in the shops.
Nan Fei Long Food Trade Co Ltd
Established: 2011
Wholly Owned Foreign Enterprise (WOFE) with the center of operations in Wuxi.
Company is focusing on importing pure grape seed oil produced in South Africa to China.
[email protected] phone: +861355400707 Henni Appelgryn
Product overview.
Grape seed oil has a very sweet, light and slight nutty aroma
Can be used in salads, sauces, marinades, baking and deep frying.
Grape seed oil has smoke point of 270℃.
Therefore it is better for high temperature cooking and can be
safely used to cook at moderate temperatures during stir-frying.
Low in saturated fat
Therefore can be used as part of low fat diet
[email protected] phone: +861355400707 Henni Appelgryn
Product overview.
HEART CARE: Raises the good cholesterol (HDL) and lowers the bad
(LDL)
WEIGHT CARE: Low in Saturated Fat - 11%.
BREAST CARE: Shrinks swelling from non-cancerous cysts.
CIRCULATORY CARE: Shrinks varicose veins, improves skin colour and
texture
JOINT CARE: Excellent for Arthritis prevention as it maintains healthy
collagen.
EYE CARE: Improves eyesight by causing the small blood vessels in the
eyes to function more efficiently.
ALLERGY RELIEF: Blocks the release of enzymes that produce the
histamines that trigger allergic reactions.
[email protected] phone: +861355400707 Henni Appelgryn
Nutritional benefit comparison.
[email protected] phone: +861355400707 Henni Appelgryn
Market potential.
Recent healthy lifestyle trend.
New and expanding market.
China is expected to become world‘s largest importer of agricultural and food products in the next ten to
twenty years. (AAFC report)
The unbalanced diets are leading to an increase in health-related problems among the general Chinese
population, this make the Chinese people become more health-conscious.
Over 40% of women in urban China and Hong Kong consider themselves to be overweight, and nearly 25% of
urban women in China are planning to try and lose weight. (Nutraceuticals world)
[email protected] phone: +861355400707 Henni Appelgryn
Key Applications
Could be used:
At home
Restaurants
Bakeries
Hospital canteens
School canteens
Street food stalls
Future: cosmetic application- massage, skin moisturiser, hair mask
[email protected] phone: +861355400707 Henni Appelgryn
Business Model
Trade Sale (to whom)
Online sales: Taobao
Grocery retailers: Auchan and RT Mart (a Chinese flagship supermarket chain)
Future: Supermarket chains such as Walmart
With time frame
Taobao within the next two months.
Grocery retailers within the next six months.
[email protected] phone: +861355400707 Henni Appelgryn
How to get sales (reach your customers)
Direct sales
Store sales in Ningbo
Hiring some promoters (2 employees in company now)
Channel sales
Partners: Taobao, Auchan, RT Mart
The number of partners: 3 ( Taobao, Auchan, RT Mart)
Territory Definition: Ningbo, other cities close to Ningbo when the product is better known and distribution channels
established
[email protected] phone: +861355400707 Henni Appelgryn
The product Line-up
500ml grape seed oil
In the future: more products from South Africa
Grape seed oil for cosmetic use
Red wine
Red bush Tea
[email protected] phone: +861355400707 Henni Appelgryn
Strengths & Opportunities Analysis
Strengths
• Affordable price. B-Well Grapeseed Oil is planned to retail for 55 RMB
online with free delivery or for 45 RMB without free delivery compared to
average price of 80 RMB for other brands Grapeseed oil sold on Taobao.
•Approved to enter to China market by government of China.
•Increasing affluence and urbanisation of China influences some peoples
choices towards choosing healthier food options.
[email protected] phone: +861355400707 Henni Appelgryn
Competitive Analysis
[email protected] phone: +861355400707 Henni Appelgryn
Strengths & Opportunities Analysis
Opportunities
Increasing health consciousness of Chinese consumers
China has the largest grocery market in the world.According to Clearwater Foods report
in 2011 grocery sales in China reached $972 billion (RMB 3.5 trillion).
Increasing popularity in online shopping in China. According to Acquity Group report 44
% of people surveyed shop online at least once per week and more than 30% purchase
groceries online.
[email protected] phone: +861355400707 Henni Appelgryn
Market Size
The total revenue of cooking oil industry in China was $171.1 billion in 2013 and is going up 17.3% per year.
Estimated consumption of edible oil in 2015 will reach 30 million tons, per capita consumption will reach 20
kg (15 kg per capita in 2008).
(IBISWorld Cooking Oil Production Market Research Report, 2013)
[email protected] phone: +861355400707 Henni Appelgryn
Market size projection.
Months Bottles Price Sales
1 5000 45 225 000
2 6500 45 292 500
3 8450 45 380 250
4 10985 45 494 325
5 14281 45 642 623
6 18565 45 835 409
7 24134 45 1 086 032
8 31374 45 1 411 842
9 40787 45 1 835 394
10 53022 45 2 386 012
11 68929 45 3 101 816
12 89608 45 4 032 361
Per Year ¥16 723 564
[email protected] phone: +861355400707 Henni Appelgryn
Projection of revenue, expenses, gross profit
(2012-2016)
RMB/ Year 2012 2013 2014 2015 2016
(last year)
Revenue 5616000 7300800 9491040 12338352 16039858
COGS (Gross) 2016000 2620800 3407040 4429152 5757898
Other Expenses 2986893 3215112 3649705 4183528 4843123
Gross Profit 3600000 4680000 6084000 7909200 10281960
Net Profit/ (Loss) 459830 1098666 1825721 2794254 4079128
[email protected] phone: +861355400707 Henni Appelgryn
Key Management
Mr. Hendrik Lodewyk Appelgryn
Education :
•Master Business Administration (University of South Africa)
•Advance Executive Program (University of South Africa)
•Management Development Program (University of South Africa)
•Doctorate of Business Administration - Switzerland (Completed by June 2014)
Experience:
•CEO at South African IT company 1997 - 2007
•Business Teacher in China 2007 - present
[email protected] phone: +861355400707 Henni Appelgryn
References
• http://www.ahdb.org.uk/news/China.aspx
• http://www.agr.gc.ca/index_e.php
• http://www.examiner.com/article/uab-finds-potential-skin-cancer-cure-grape-seed-
extract
• http://www.homecookingadventure.com/articles/grape-seed-oil-benefits
• http://abcnews.go.com/Health/SkinCare/top-moisturizers-dry-
skin/story?id=18629073
• http://blogs-
images.forbes.com/robertolsen/files/2011/12/eCommerce_Infographicb.jpg
[email protected] phone: +861355400707 Henni Appelgryn
Summary
• Experienced management in R&D, mgm’s and sales
• Already sold RMB 5.6M in previous year
• 7 government approval certificates
• RMB RMB 16M market size coming in 5 years
• Signed partnerships with Western Cape Oil
Further Inquiry:
• Mr. Appelgryn, CEO
• Phone: +8613554700707
• Email: [email protected]
• Website: www.nanfeilong.com
[email protected] phone: +861355400707 Henni Appelgryn
