1. Chemical Solutions Inc.
A Five Year Marketing Strategy
Benjamin Sanders

2. History
 Chemical Solutions Inc. (CSI) was founded in 2009. It was started by
cofounders Benjamin Sanders and Dr. Joseph Alchemy, a chemist,
to develop and market NutriMax, a unique compound placed in
chewing gum to curb appetite through nutritional supplementation,
supply the consumer with energy, and provide fresh breath at the
same time. CSI is a limited liability corporation owned and operated
by Mr. Sanders and Dr. Alchemy, assisted by a small team of
dedicated employees.

3. History Continued…
 Mr. Sanders previously worked at an entry-level position for
Hershey’s. After collaborating with Dr. Alchemy on the
creation of an excellent nutritional additive
 Ben approached his supervisor with the creation. Due to lack
of foresight, upper management did not see the value of the
nutritional substitute additive.
 Consequently, Ben left the company and teamed with Dr.
Alchemy to patent their product and form their own enterprise
to pursue future business endeavors. They formed Chemical
Solutions Incorporated and NutriMax Chewing Gum was
born.

4. Company Description- Chemical
Solutions Inc.
 The NutriMax line was initially launched in the Southeast
Wisconsin market.
 It’s high-quality and small product size have gained
acceptance in their current markets. It is a high quality
product that has large growth potential.
 CSI has implemented a high-quality, medium-price strategy
that has proven successful thus far.
 Headquarters are located in a secret underground bunker
beneath Milwaukee. Facilities are largely automated,
requiring minimal human maintenance.

5. Technology
 Technology- Technology is heavily used
in our secret underground production
facility.
 With advanced robotics being utilized,
automated, precise, and efficient work
takes place with minimal human
supervision required.
 Also, the recipe for the additive itself
uses protein disbursement technology to
create the sensation of the consumer
feeling full, while still delivering the
essential vitamins and minerals the body

6. Mission Statement
◦ ““The mission at Chemical Solutions
Incorporated is to have fun
revolutionizing additives for the
benefit of all mankind, all the while
honoring ourselves, our customers
and our Savior.”
 This mission will be achieved by incorporating these values-
◦ Corporate & social responsibility
◦ Unequivocal excellence in all aspects of the company
◦ Science-based innovation
◦ Honesty & integrity
◦ Profit, but profit from work that benefits humanity

7. Keys To Success
 Refusal to accept anything less than the
absolute best from ourselves and from
our product
 Aggressive but tactful acquisition of
government accounts
 Positively acclimating the public to the
idea of a nutrient supplemented gum
additive
 Build brand value
 Establish ourselves as an industry leader
in innovation and profitability

8. Goals
 For the coming five years, CSI seeks to achieve the following goals:
 Refusal to accept anything less than the absolute best from ourselves and
from our product and retain our image as the leading innovator in gum-based
supplements
 Aggressive but tactful acquisition of government accounts, aiming for at least
one additional government contract per year for the next five years
 Positively acclimating the public to the idea of a nutrient supplemented gum
additive
 Build brand value
 Establish ourselves as an industry leader in innovation and profitability

9. Core Competency
In terms of core competency, CSI seeks to
 (1) provide high quality, healthy
supplemental gum products to our
customer and
 (2) expand past the chewing gum market
and segment into other health
food/beverage mediums.

10. Sustainable Competitive
Advantage
 At this point, CSI has a rare monopolistic opportunity.
However, after patents expire, and other businesses
realize the products’ successes, imitators are sure to
follow.
 The company will work closely with key suppliers and
distributors to build business relationships and foster
partnerships that will allow CSI to maintain its status as
an industry leader.
 Dr. Alchemy is also diligently working on R&D to further
sustain CSI’s competitive advantage

11. SWOT Analysis
•Strengths: Difficult barriers to entry, unique
product, large target markets, cheap to produce, low
storage and shipping costs, currently protected by
patents
•Weaknesses: Public Skepticism, potential
health questions, growth restrictions within company,
new product hesitation, and high cost to the customer,
equipment issues, patents will expire.
•Opportunities: Expansion into other food
markets, buying our competitors, working with
governments, and expansion into worldwide markets.
•Threats: Patent expiration, improvements on
our product by rivals

12. Industry Analysis
 Sales of energy drinks in the United States were $3.5 billion in 2005
 The nutritional supplements market was valued at over $68 billion worldwide
and demand is expected to grow about 12 percent by 2011
 The demand in the supplement category is driven by baby boomers, the
fastest-growing consumer demographic in the U.S. market, now making up
60 percent of the supplements buyers.” (Nutrition Business Journal)
 However, there is a drastically high rate of new product entry in the weight
management segment which is requiring new industry participants to adopt
proactive strategies.

13. Market Segmentation
Bars
Shakes
Weight Loss Pills
Vitamins
Protein
Gum

14. Further Analysis
 From an overall growth perspective,
U.S. consumer sales of dietary
supplements lagged those of other
nutrition industry categories.
 Yet, of all the categories, supplements
were the only one to actually grow
more in 2008 than in 2007. Nutrition
Business Journal estimates show that
total U.S. consumer sales of dietary
supplements expanded 6.2% to $25.2
billion last year.

15. Competitors in the Market
 Our product is the only one like it in the
market.
 CSI holds the patent to NutriMax and is
currently dominating this small niche market
of health chewing gum.
 Potential competitors in the dietary industry
include health bars manufacturers,
specifically Clif Bars, Odwalla Bars, and
Power Bars Harvest due to their calorie, fat,
sugar, and carbohydrates ratios.
 Health shake products such as Myoplex,
Slimfast, and Whey shakes could present
competition due to their high nutritional value.

16. Company Analysis
 Technology is a heavily used resource
in CSI’s underground production
facility.
 With advanced robotics being utilized-
automated, precise, and efficient work
takes place with minimal human
supervision required.

17. Customer Analysis
 Women are a significant consumer group for the supplements
market, because of their unique health needs and because they tend
to make most of the purchasing decisions in the home. In general
women tend to pay more attention to preventative health care.
 The nutritional supplement needs of female consumers differ
depending on the stage in their lives. Women over 50 are
consumers of supplements for bone health, pre-menopause and
menopause symptoms, as well as products for heart health.
 Consumers of both genders in the 18 – 29 year old age group are
major consumers of vitamin-fortified food and beverages, and
energy, sports and weight-loss supplements.

18. Product Description
 NutriMax is a nutritional additive
administered to chewing gum
composed of proteins, amino acids,
minerals, and vitamins.
 the recipe for the additive itself uses
protein disbursement technology to
create the sensation of the consumer
feeling full, while still delivering the
essential vitamins and minerals the
body needs to sustain itself.

19. Product
Raw materials harvested to make our additive
include-
 Gum Base - chicle, mastiche (organic), rubber
(synthetic)
 Softeners - are added to maintain moisture
 Sweeteners - xylitol, sorbitol, mannitol and
aspartame
◦ It is worth noting that frequent gum swallowing may contribute to the formation
of a bezoar or enterolith, which is a sort of intestinal stone; however, this is not
a problem at CSI, as the elements that cause these symptoms have been
removed from our product.

20. Product Strategy
 NutriMax chewing gum will be made available
in four flavors- bubble gum, spearmint,
peppermint, and cinnamon. Product strategy
is especially important at CSI because the
breath enhancement present in NutriMax is
one of the key points of difference.
 One stick of gum is equivalent to a light meal
with 1.5 servings of fruits and vegetables

21. Location, Location, Location
(Place)
 Company Location & Facilities-
Headquarters are located in secret
underground bunker beneath
Milwaukee, WI.
 Facilities are largely automated,
requiring minimal human
maintenance.

22. Price Strategy
 NutriMax will be priced competitively
with traditional chewing gum. A pack
of NutriMax chewing gum $1.50 for a
12 stick pack.
 Five packs are also made available for
$5.00. The added nutritional benefits
of NutriMax should provide a
competitive edge.

23. Promotion Strategy
 Mailer samplers will be sent out with direct mail marketing
promotions. Customers will also receive a coupon for .50 cents off a
pack of NutriMax.
 Coupons will be sent out in summer and winter. Also, samples will
be available at trade shows, specifically those related to health and
fitness.
 Print ads with the same .50 cent coupon in the mailer will also
appear in local newspapers within the target market.
 CSI will set up demonstrations with samples at carnivals and
concerts.
 CSI will also advertise on the food network and during health shows
to reach our target market.

24. Distribution Strategy-
 NutriMax chewing gum is distributed in
current markets through a food
distributor.
 If company expansion proceeds as
expected, negotiations will be made with
a broker to sell NutriMax to retail chains,
grocery stores, and convenience stores.

25. Competitive Comparison
Competitive Comparison- At this point
we have a rare monopolistic
opportunity.
However, after patents expire, and other
businesses realize our vast successes,
imitators are sure to follow.

26. Competition (Potential)
 Health Bars: Buying pattern to
increase in next five years
 Health Shakes: Consumption based
on fads.
 Protein/Supplement Powders:
Demand 18-30 year olds
 Weight Loss Pills: Demand based on
regulation by FDA and FTA

27. Points of Difference
 CSI’s competitive edge is largely based on the fact that NutriMax is
the only product of its kind in the huge and still growing health
industry. No other company has the formula for NutriMax. CSI has
patents and other legal safeguards on the product. Additional points
of difference include-
 - Breath Enhancement- Coffee or energy drinks makes breath taste
bad, NutriMax does the opposite
 - Easily transportable, gum fits in your pocket, convenient, no spilling
 - NutriMax is a nutritional supplement, does not curb appetite (like
Hoodia for example), rather it satisfies appetite

28. Market Needs
The Dietary Supplement Market’s current
needs are:
• A product that is safe and all natural
• A product that is easy (and fast) to consume
• A product that is affordable
• A product with nutritional benefits
• A product with low amounts in fat, sugar, and
carbs
• A product that will encourage and aid in weight
loss

29. Market Trends
Current Market Trends include:
◦ Easily loosing weight
◦ Fitness accessories/supplements
◦ Multivitamins specifically designed for:
 Baby Boomers
 Women
 Older women
 18-29 year olds

30. Market Growth

31. Implementation Sales
Strategy
 Our product will be able to ride the
ever-increasing health trend wave.
 What we need to do is sell our
company.
 In order to do that we need to be
available whenever our customers
need us to answer any questions or
address any concerns.
 Our service and support is what will
set our sales strategy apart along with
our unique product.

32. Cash Flow (monthly)
Description Amount (in Totals
$)
Cash Flow from Operations +57,869
Sales (paid in cash) +84,000
Supplies/Materials -416
Monthly Salaries -23,333
Ingredients -233
Operations -300
Shipping Expense -29
Legal Expenses -2,000
Cash Flow from Investments -4,000
Equipment Maintenance -1,667
Insurance -2,333
Cash Flow from Loan -1,343
Repayments
Bank Loan Repayment -1,343
Total: +52,526

33. Questions?