24A - Venture Concept

Part 1 - Opportunity

The opportunity that I see is there is a gap between the very casual energy drink market and the more hardcore workout supplement market. I had this idea when one of my friends told me that he took a preworkout supplement before a lacrosse game and was unable to continue playing because his heart was pounding uncontrollably. I realized that there should be a convenient way for athletes to get a small dose of caffeine for an energy boost as well as a dose of supplements that will help keep them in the game for longer.

• What are the forces or changes in the environment creating this opportunity?

The big players are Rockstar and Monster, which dominate the energy drink market. On the other side are lesser known companies like Cellucor that control the preworkout market. 

• How is this market defined geographically and demographically?

The market is predominantly in the USA and english-speaking countries with a common culture. The market is overwhelmingly male, especially on the preworkout side.

• How are customers currently satisfying this need?  And how loyal are they to whatever they use now? 

 There isn't really something to adequately satisfy this need. People simply make do with what they have available.

• How big is this opportunity?

Decently large. I could see this product becoming popular with young men who are involved with athletics. 

• How long will the “window of opportunity” be open?

As long as young men are athletes and nobody else takes this idea.

Part 2 - Innovation

I will be selling a pre-game supplement that comes premixed in a bottle or can, ideally in the price range of about $3-4. It will contain a small dose of caffeine and a larger dose of other supplements such as arganine and lysine.

Part 3 - Venture Concept

• What are the reasons to think customers would switch to this new product?  How hard will it be to get them to switch? 

There isn't really something for people to switch from. I don't expect people to stop drinking energy drinks or stop using preworkout supplements, but I am trying to fill a niche.

• Who are the competitors?  What are their possible weaknesses or vulnerabilities? 

Monster and Rockstar target very casual audiences. Redbull kinda targets athletes but it's really just used as a cocktail mixer. Nobody gets ready for an athletic performance and thinks "oh wait, better drink my Redbull first".

·         What role does packaging, your price points, distribution, customer support, the customer experience or the business location play (if any) in defining your business concept?

Packaging and distribution will be key for this brand. The idea for getting folks using this product is to place it in locations where they'd normally go to grab a traditional energy drink, then pick it up to give it a shot before practice or a game or whatever. This is why it's imperative that it tastes good, it needs to bridge the gap between casuals and hardcores.

·         How would you organize a “business” to support the ongoing production of your new product, service, or process? How many employees? What roles are in the venture?  

I could handle some basic conceptualizing for product packaging but it'd be worth it to bring in an outside designer for a product where marketing is so key.

The "secret sauce" for this venture is the niche of the market. It bridges a gap where there are no major competitors.

Next steps for the venture are finalizing my mix so that I can make labels and packaging.

Realistically, I would be more than happy to sell this business off to Coke or Pepsi or a supplement company. I just want the money.

23A - Unfair Advantage

1. I have an opportunity to test out my product on a few people. My brother and his whole lacrosse team are interested in trying it out. This is valuable and somewhat rare, because it is very important to be able to test your product, but if you have decent connections you too will be able to find test subjects.
2. I have unique experience in this field. My expertise in supplementation and how it affects exercise is valuable, rare, and inimitable (because it's myself). If I'm going to run a company based around exercise supplements, this is absolutely crucial. Not many people have a real understanding of these things. However, the only reason I don't say this is non-substitutable is because if I truly wanted to, I could just hire someone who also has knowledge.
3. I have the benefit of being located on a college campus where there are plenty of resources that I can draw on to help me. This is valuable, but not so much the other three.
4. I have the benefit of being able to test this on myself since I do athletic stuff daily. Again, valuable, but not so much the other three.
5. My brand has the benefit of being marketed towards athletes instead of the everyman. Athletes are willing to pay a higher price for what they perceive as giving them a competitive edge. This is valuable and rare within the market, since most energy drink companies market their product to gamers and just general dudes. This is non-substitutable, it needs to exist in order for this brand to function the way I envision it and be able to capture a portion of the market that isn't already dominated by Monster and Rockstar. 
6. My brand has the benefit of cool packaging. It sounds silly, but for a lot of people, the packaging sells it. This is valuable, somewhat rare, and non-substitutable. 
7. I have the benefit of being young and not having and dependents. This is valuable because if I fail and lose all the money involved in the business, my kids don't starve because I don't have any.
8. One benefit that my brand is bringing to the table is flavor. Many workout and athletic supplements make a baseline effort to taste okay, but it just ends up tasting like medicine. I'm gonna make my product actually taste good. This is valuable and rare. 
9. An advantage that I personally have is a lot of free time because I don't have a full-time job currently. This is valuable because I can devote more time and energy to testing and developing my product.
10. A personal advantage that I have is work ethic. This is valuable, but realistically it's not rare or inimitable. It is however, non-substitutable, there's no substitute for hard work.

I'd say that my top advantage is #5. The way that this brand is presented to the consumers will make or break this idea. It's the single most important thing because without it, the brand will get squashed by big energy drink companies before it even has a chance to get started.

21A - Reading Reflection 2

How To Fail At Almost Everything And Still Win Big

1) The general theme of this book is that you have to be willing to throw things at the wall until something sticks. The thing that brings you success won't be the first thing you try and it might not even be the 100th thing you try, but the key is to keep trying and learning from each try.

2) The applications to entrepreneurship are obvious, since a big part of entrepreneurship is trying things over and over again until you get your formula right.

3) For an exercise for this class, I'd say to make a "System" as described in the book. The book discourages goals, as they're traditionally defined, and encourages these "systems". Systems are about a daily routine of working towards success, instead of a deadline goal that sets you up for disappointment.

4) One thing that I liked was encouraging the reader to set their schedule around when they feel the most energetic. I've read a ton of literature encouraging folks to get up at 6AM or whatever and start the day early, but I really just can't do that. I'm simply not functional at that hour and frankly it's a waste of time. This book encourages working when you will do your best work. If you're a night owl, then work at night.