Staying up late is always accompanied by issues that are related to inadequate sleep. While you are staying till midnight, do you realize that molecules called Reactive Oxygen Species (ROS) are invading into your body? ROS is the main factor that leads to a shorter life span and cancer. Nowadays, however, there isn’t any clinic method that shows to reduce the harm which those who keen on staying up late suffer from. In the intestines of sleep-deprived fruit flies, reactive oxygen species accumulate in large quantities. This is a highly reactive oxygen-containing molecule that destroys DNA and other components in cells when present in large quantities. If the active oxygen in the intestine of fruit flies is neutralized and eliminated by antioxidant compounds, the flies deprived of sleep can remain active and escape premature death. Insufficient sleep can cause oxidative stress in the organism, breaking the oxidative balance, and the continuous accumulation of active oxygen. Excessive ROS production can induce oxidative damage to biomolecules, leading to aging, cancer, and many other diseases. The current files reveal that ways that can reduce the activity of ROS are vitamins, vitamin C, and vitamin E, for instance. By contrast, such methods may not remain the liveness of the SOD enzyme.
As a part of the human self-repairing system, an enzyme called SOD can reduce the oxidation effect from ROS. in fact, Da Bao SOD Mi--take a famous Chinese health product, for example, protect the skin by using SOD as an ingredient of the product. However, many health products including Da Bao can only protect part of the body. the problem remains unsolved when considering prevent the damage caused by ROS through the whole body.
1.2 Product Introduction
Since staying up late has become a widely spread social habit for many adults, people are also putting more and more attention to the negative effect caused by sleep loss.
Until recently, the real factor of premature death and shortened life span affected by sleep loss is a harmful chemical called ROS. By not having enough sleep, our body will generate ROS in the gut, spreading it to many different parts of our body, damaging our cells and organs.
Our product is designed to reduce the destructive effect of sleep deprivation by decreasing the amount of ROS produced in the gut, preventing it from damaging our body.
Our product uses a protein called SOD enzyme to degrade the ROS in the gut. Our product is designed to be a health care beverage. The drink contains an ingredient of probiotics: the engineered E.coli. The engineered bacteria can generate SOD after arriving at the gut through the alimentary canal.
1.3 Market and Analysis Research Method
- Expert interview：We invited two experts in the cosmetics and probiotics industry respectively to bring some relevant answers about our topic.
- Market research
To know more about the potential market and user preferences, we have designed a questionnaire and survey and distribute them in multiple ways.
- Future prediction
Basing on the existed market and historical data, we establish a model of the industry trend and predict future development. Additionally, what we do to prevent error and unpredictable events is to combine the prediction with the current event's potential influence and establish an appropriate section of data.
- Online information search
After issuing the questionnaire, we also search for information online. Chinese government department's official account and website contain various data that we need. Also, through other organizations' websites and databases, we gain enough information, such as the scale of market, etc.
2. Product and Swot Analysis
2.1 Demand of Market
Out of 1400 people we surveyed on, only 10.07% of them met WHO's recommendation of having at least 8 hours of sleep per night. In China and across the globe, health issues caused by sleep deprivation has become a rising concern of both the medical community and the public. According to the same survey we did, 82.5% of the population would be interested in a method that could reduce the harm of not having enough sleep. The market for a product that could reduce the severity of this problem certainly is promising.
2.2 Product’s competitors
- Vitamin C/E/B9, COQ10- other antioxidants that are well commercialized with multiple forms as supplements/OTCs.
- Other health products contain SOD. Unproven to be effective after taking an oral dose medicine, require daily intake to maintain plasma concentration in order to have desired efficacy.
2.3 Swot Analysis
- Wide customer: since staying up late has become a social problem, many people will be in favor of sleep-loss recovering health products.
- Great importance: instead of focusing on the protection of appearance like skincare products or energizing like coffee, our product aims to protect people from a severe health problem, including premature death. Our product serves people with their basic needs.
- Low price: the innovation cost would be high, but after the experiment process the production cost would be relatively low. The price is estimated to be a bit higher than the common drinks, which is affordable for most people.
- Setting a good example of innovation. After doing some research, we find that the Chinese government fully supports enterprises or individuals which are innovated. For example, the policy areas following. In the first place, the corresponding authorities accelerate the approval process. Also, our product satisfies the advocate of the authorities which aims to develop Healthy China.
- Engineered bacteria can reproduce and survive in the human intestinal tract, which is relatively convenient.
People have a small possibility to feel the effect of our product. However, if people insist on taking it during a long process, people will recognize its significance.
- Our product is fairly advanced. Therefore, our product satisfied the advocate of the nation. For instance, an abundance of policies and regulations are publicized.
- In modern society, there is an increasing number of people staying up late for various reasons. Thereby, our market is larger and our target population is expanded.
Though there are a few competitors currently, as soon as our products enter the market, afterward, more and more competitors are more likely to imitate us.
3. Market Analysis
3.1 Macro-economic situation
A prosperous macro market can absolutely promote the sale of our product. Although COVID-19 is rampant worldwide, hindering the world economy seriously, the economy of China recovers gradually.
3.1.1 Economy index of China
According to the data published by the National Bureau of Statistics of China, the quarter GDP pace is 11.5%, which exceeds most of the other countries' index. The government's economic goal is to maintain CPI by about 3.5%. In order to achieve this objective, the Chinese government takes various actions to promote household consumption and investment. Furthermore, the annual pace of import and export are respectively 6.2% and 4.3%, surpassing the expected value of 10.9% and 0.8%. Also, the unemployment rate is 5.7%, lower than the previous month data of 5.9%
3.1.2 Government & government policy
In order to motivate enterprises to increase the yield and output, the Chinese government reduce the taxes on the company and speed up the refund. Additionally, giving more dividends to the company that expands producing scale is also the main policy that government takes.
Besides, the Chinese government accelerated the approval of the application of new medicine and organized programs for the centralized procurement and usage of medical products. Constructing "Healthy China Program" also aids the pharmaceutical industry.
3.2 Macro-market potential analysis
Because our product is a kind of beverage that can reduce the negative effect of staying up late, this analysis will include both the beverage market and the health care market.
3.2.1 Beverages market
The Chinese beverage market isn't saturated, which is obvious. According to the survey that is made by Zhiyan consulting, from 2014 to 2019, the Chinese beverage market expanding quantity is stable and huge, which is 25 billion CNY annually.
Additionally, with the society developing, citizens in China have more disposable income and higher consumption level; hence, consumers' demand for health and functional characteristic of drinks is increasing dramatically. A typical and compelling example is energy drinks, which supply people with necessary minerals and nutrients. Its compound growth rate of sales from 2014 to 2019 was 15.02%. In the context of this circumstance, the product that we sell can definitely cater to the current consumer, since our product assists people to maintain health.
Moreover, domestic beverage brands' market share increases gradually and annually, meaning that if launching our own domestic brand, we can still capture considerable clients, as long as we develop an appropriate marketing strategy.
Importantly, some regions that have great economic activity have enormous demand for beverages, and their market is still not saturated. For those regions which contain a limited market, we can find our target consumer and client more easily.
3.2.2 Prospect of Health care product industry
Chinese Health care product industry has tremendous potential, here are the specific manifestation:
- Significant increases in quantity & huge potential
From the chart showing below, we can see that since 2016, the annual increased quantity of market scale is about 22 billion CNY, so the market is unsaturated and has a very high ceiling. Compared to Japan and South Korea, whose citizens' shopping habits and capacity and physical condition are similar to Chinese civics, the Chinese market is still in an early stage that isn't explored fully. Also, because Chinese health care companies don't distribute and manufacture centrally, new firms don't have strong competitors and have a low barrier to entry.
4. Target consumers analysis
4.1 Type of our Target consumers
4.1.1 Flight attendant
For those flight attendants, especially for those who work on the international flight, the flight attendants always stay up late because of work. When they are working, they may face jet lag. Therefore, staying up late may be the usual situation
4.1.2 Medical personnel, doctors on duty
As for doctors, when they are on duty, they should be alert at any time, because they may face emergencies. Thereby, it is their responsibility to stay up all night to be aware of any of the problems that any of their patients may face. According to the previous report, there are 46 doctors died of overwork (karoshi) merely in 3 years in China. However, this data is increasing. Doctors are overloaded with daily work and they are often stressed out. Thus, working overtime and working till midnight is a common phenomenon.
4.1.3 Taxi driver who work at night
Nowadays, working at night can earn more than working in daytime for taxi drivers. Therefore, an abundance of taxi drivers may choose to stay up late to work
Everyone who sees the work that designers have done has the right to tell them what to do. As long as they graduate, confronting countless overtime is inevitable. Answering the phone to coordinate design, tried to sleep, designers always work, which is a normal phenomenon among many design enterprises. The entire design community gets several obituaries annually.
1. Heavy Workload, have no many leisure time
2. According to the number of workers who commit sudden death in different industries, the programmer is the job that has the highest sudden death rate. It is said that programmers are extremely crazy about working overtime. For example, almost every day they are over-whelmed with loads of work.
3.According to the relevant data and survey, almost 50 thousand programmers in China die of heart diseases. The saving rate, however, is merely 1%.
4. 98% of the Internet practitioner feel that their health condition has decreased, over 80% of the reason that engaging in the Internet realm may lead to mental problems. 61% of the respondents have problems such as the cervical spine, wrist pain, and lumbar muscle strain due to their engagement in the Internet industry, and more than half of the practitioners often feel that they are tired easily, and their immunity has decreased significantly.
5. According to the analysis of experts, the causes of sudden death of IT practitioners are mostly concentrated in sudden heart disease, cerebral hemorrhage, etc. These diseases suddenly happen, and with a high death rate, have become the "number one killer" of its practitioners.
1. Police is a career that awaits order all day as long as someone reports to police
2. They can't do anything while seeing monitor, from 8 p.m. and 2 a.m., and continue to work at 7 o'clock.
3. Endless business trip
4.One case can last more than several days, long continuous working hours and high pressure
4.1.7 24-hours convenience store staff
The working time of convenience stores staff will disrupt their regular biological clock. Since employees come to work in convenience stores, they often stay up late to work overtime, which makes their physical functions very uncomfortable. Staying up late for a long time leads to insomnia, which is terrible.
4.1.8 Telephone Operator
As seat staff, the nature of 24-hour service determines their irregular work, and many of them work in the night nearly half of the time in a year.
5. Marketing Strategy
Unlike other drinks, such as coffee, which can only refresh people when they feel tired after staying up late, and other healthcare products, like cosmetics, which relieves the damage caused by staying up late, our product’s core idea is to reduce the damage brought by staying up late in a deep degree, that the engineering bacteria we design will produce SOD, which can eliminate ROS. Also, our product will be accessible and affordable for everyone. This concept is different from other products, which is our winning point
5.2 Product Strategy
5.2.1 Product Positioning
The positioning of our products is popular and at low prices. Also, our products can promote human health. After being examined, it can be sold in every shopping mall and convenience store. What's more, our products are general, meaning that no limitations for using and population.
5.2.2 External Design
The packages of our products use plastic. Therefore, they possess features that are convenient, easy to bring, and recyclable. The body of the bottle is skeleton shaped. For its streamline caters to the current appreciation of beauty, and it has a small possibility to harm the human body and occupies small area. Thus, we apply this material.
According to our offline survey, the body of the bottle applies bluish pink and the bottle cap adopts bluish-white. It uses gentle colors to attract the attention of the public. For we mainly sell our products in mainly 10 cities, so that our packages base on the local culture and features of the 10 cities. Such a design of the packages is modern enough, and it can attract loads of consumers. Moreover, basing on the features of the cities can arouse the citizen's sense of belonging, and promote their desire of buying.
5.2.3 Product Logo
The design of the logo is the same as the design of the logo of NapTuner
5.3 Pricing Strategy
The price of our product is 10 yuan per bottle of drink. The reasons are as follows:
First of all, unlike other carbonated drinks and tea drinks, whose prices are lower, our product can bring some positive benefits to people’s physical health, so our product is more expensive than their price. Then, the reason why our price is slightly higher than that of yogurt that can also be beneficial to the human body is that our product’s effect is better than them, the degree of innovation is higher than them, and more consumers are covered.
Due to our large number of potential and target customers, our consumer base is large. Although our upfront cost is high, once we start mass production, the unit cost will decrease
5.4 Sales channels Strategy
The products mainly depend on offline sales. Our product is going to be put in different shopping malls, such as Wal-Mart, etc. The other part of them will cooperate with restaurants, which have loads of popularity, and office building, which contains a lot of our target consumers. To be specific, we are going to set up sales counters and vending machines which are only for our products, and conduct sales share with the co-operating agency at every end of the seasons and months.
Online sales will combine with our offline sales. Our products will sell by online shopping malls, Taobao and Jingdong Mall, for instance. Also, selling by the Internet or selling by other merchants can play an essential part in our project as well.
As for advertising strategy, we will divide it into 3 parts.
Section 1: We will use NapTuner WeChat public accounts, WeChat moments, and Micro Blogs such as official accounts and social media to advertise. For there are many fans on our WeChat official account, and it shares high popularity among people so that we decide to promote our products on social media. Also, advertising on social applications require low investment and high reward, and WeChat, as well as Microblog, have played a crucial role in people's life. Therefore, this way can help us to reach the target population and gain our fans as well as customers.
Section 2: We plan to collaborate with celebrities on the Internet to promote the awareness of our brand and products in the initial stage. In addition, on some relevant enterprising WeChat official accounts, such as public accounts of financial and programming firms, doing advertisements can also be a practical method.
Section3: We intend to launch advertisements in the undergrounds because, for most of the employees, the undergrounds are a common traveling method for them. What's more, a large population is crowded there. As for other cities, meaning that no undergrounds are built, our advertisements can be put on the buses.
5.6 Sales Strategy
A large quantity of existing social research and experiments demonstrate that since people have more disposable income and receive better quality-oriented education, consumers prefer to participate in public welfare undertakings, in addition, to merely meet material needs. In other words, if there is a way, consumers can find, to make clients’ consumption contribute to the public welfare, it will absolutely increase their consuming desire. Of course, it should be within the price range that is affordable to consumers.
Therefore, our sales strategy will include a non-profit element. We will donate one CNY to public welfare undertaking when each can of our product is sold. Consumers can scan the QR code in the back of the bottle cap to decide which part of public welfare to donate for (e.g. environmental protection, food aid). If they are not willing to do so, our system will donate this part of the money to the public welfare project that, in our opinion, is most in need of assistance. Because our target markets are majorly metropolis, in which citizens’ both salaries and education degrees are high, this strategy will motivate clients to buy our product with no doubt.
This product sells mainly in these 10 cities as follows:
Hangzhou, Xi'an, Wuhan, Nanjing, Guangzhou, Shenzhen, Beijing, Chengdu, Shanghai, Changsha
In the first place, according to the data of the survey that the Kelly Company conducted, these 10 cities are the most serious cities for staying up late in mainland China. Thus, a high demand for products and the large market potential is possessed.
What's more, these cities have a rich industrial chain, developed logistic and packaging industry, and complete supporting facilities. Therefore, if our products enter into these cities, our cost and investment are more likely to decrease.
Great geographical location, wide economic hinterland, especially Shanghai, can bring an extra market for our product.
Strong consuming ability and economic strength can bring large consumers to our products. Guangdong Province, for example, its quantities of sales of beverages is the highest in the country.
6. Analysis of costs
Total cost includes innovation costs, maintenance costs, sale costs.
6.1 Innovation cost
Innovation cost includes the following aspects:
6.1.1 Experimental equipment cost
* PCR Machine
* Microplate Reader
* Electrophoresis apparatus
6.1.2 Raw Material Cost
* DNA polymerase
6.1.3 Site Use Fee
6.1.4 Cost of Labor
6.2 Maintenance Cost
6.3 Sale costs
Sale costs include the following aspects
6.3.1 Publicity Fare
6.3.2 Transportation Fee
6.3.3 Drinks Producing fare
* Beverage producing line
* Packing expense
To sum up, harms brought by staying up late can damage seriously to human’s physical health. Fatigue, irritability, and difficulty concentrating on torment people and influence their career and life negatively. We are confident that with the launch of our SOD product, we can save every night owl from the harmless sleep brought and boosting the efficiency of young men with healthier bodies.
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