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REH Y D RA TE
Better, cheaper, greener, more meaningful water
Company Summary Company History: Early-stage startup cofounded in fall 2010 by two MBA candidates. Industry/Sector: Filtered water, portable single serving beverages. Target Market: LOHAS consumers (Lifestyles of Health and Sustainability), ages 18-35. Competitive Advantage: Innovative hydration solutions with integrated social and environmental benefit. Capital Request: $150,000 in funding to complete Phase I (see below).
Business Description: ReHydrate is an early-stage, integrated bottom line business based in Denver, Colorado. The company specializes in providing consumers with innovative hydration solutions that support environmental sustainability and social equity. ReHydrate is developing the prototype of its initial offering, the ReHydrate Kiosk, an automated vending unit that will refill consumers existing portable water containers and vend/fill environmentally friendly reusable bottles. 30% of ReHydrates net profits will be invested in high-impact global clean water initiatives chosen by the customers from a screened list of quality initiatives. The Market Opportunity Historically, there have been fundamental flaws in the distribution of water to consumers in developed and developing nations alike. American consumers are not satisfied with current offerings in the bottled water category and are actively seeking alternatives. Simultaneously, citizens of developing nations are literally dying for access to clean water. We have developed an innovative, for-profit social business model that solves both problems. Products and Services ReHydrate empowers consumers to drive positive social and environmental change by enhancing a purchasing decision they already make buying bottled water. ReHydrate will develop, place and market proprietary automated water vending kiosks designed to: Refill consumers existing portable water containers with high quality filtered water for $.05 per ounce Vend affordable, eco-friendly reusable bottles ($3-5 per bottle) that consumers will then fill at the kiosk ReHydrate provides consumers with a value proposition unique in the market: Better: Filtered water of superior quality to alternatives with all-natural flavoring options Cheaper: Priced below competitive offerings Greener: More eco-friendly than bottled water More Meaningful: 30% of profits invested in high impact global clean water initiatives. While current single-serving hydration solutions, including bottled water, offer one or two of these benefits, only ReHydrate is able to deliver on all these promises in an integrated manner.
Xander Page - apage23@du.edu
TIMELINE Q1 2011: Secure start-up capital. Formal operations commence. Q2: Build prototype unit. Manufacturing of additional units begins. Q3/4: Placement of initial 10 units in Colorado. Marketing campaign kicks off. 2012: Expand operations to include 30 units in key markets. Capital Request for Phased Investment: Phase I (2011): $150,000 - Develop prototype. Manufacture and place initial 10 ReHydrate water kiosk units. Phase II (2012): $300,000 - Expand operations. Continue viral marketing campaign. Phase III (2013-2014): $1 million - Continue growth. Expand product line to include new offerings.
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Executive summary
Despite the overall contraction in sales volume, there are two categories within the bottled water industry that are holding their own and even experiencing growth: enhanced water (i.e, Vitamin Water, Smartwater) and sparkling water, which appeal to health-conscious consumers. ReHydrate will profit from these segments by providing carbonation and flavoring options at the ReHydrate Kiosks. Water Access/Delivery: As stated earlier, in order to deliver the fourth promise of ReHydrates value proposition, more meaningful, ReHydrate will invest 30% of net profits into global clean water initiatives through meaningful, sustainable partnerships with local NGOs. In order to enhance this value proposition, customers will have the ability to choose the water initiative that best represents their personal values. It is imperative ReHydrate continues to actively engage with this industry and nonprofits within it, to prove its brand promise and allegiance to global clean water delivery. Here are some important details regarding this industry: The Facts: According to the World Health Organization, 3.6 million people die each year from water related illnesses. The poverty connection: Problems of poverty are fundamentally linked with those of water- its availability, its proximity, its quantity and its quality. The United Nations has established that access to clean water is a prerequisite for sustainable economic and social development. Locally-relevant solutions: Decades of international development research has proven that locally developed solutions to area-specific water challenges engaging local community members from conception to implementation yield the highest ROI.
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Executive summary
Defining the Market The size of the Market: ReHydrate products fall within the high growth sustainable food and drink market. In the past five years, this market has experienced consistent growth and now is a multi billion-dollar segment. There have been over 13,000 innovative sustainable food and drink products launched, with nonalcoholic beverages leading the pack. Who: ReHydrate has identified its initial target market as LOHAS (lifestyles of health and sustainability) consumers, with the following characteristics: Age range: 20-30s College educated Buying habits focused on: - Health and fitness - The environment - Personal development - Sustainable living - Social justice In 2008, LOHAS consumers represented $290 billion in the US marketplace, and the market has grown consistently over the past ten years. ReHydrate will initially focus on university students and those working on college campuses as early adopters within the LOHAS segment. Why theyll purchase: Downward shifting trends of the bottled water industry leaves people thirsty for other hydration options. Upward shifting trends in environmentally and socially responsible consumer purchasing habits. According to bottled water reports and ReHydrates initial market research, when parity exists among two products (bottled water versus water at a ReHydrate kiosk for example), consumers with a college education will consistently choose the product that has been ethically sourced and/or is green.
Xander Page - apage23@du.edu & A m y H u t t o n - a m y . h u t t o n @ d u . e d u! 3
Executive summary
We will initially engage consumers with the ReHydrate brand through disruptive technology (our automated kiosks) in the water distribution market. Providing consumers an innovative alternative to traditional bottled water that meets their functional needs for quality, price, and convenience, and exceeds their intangible wants for positive environmental and social impact will quickly and firmly establish the ReHydrate brand in our consumers minds. Reaching Our Target Demographic Our messaging strategy will leverage low-cost, viral marketing channels to connect with our target demographic: Social media: Engaging and educating early-adopters with a dynamic website that communicates key brand attributes, establishing a vocal team of brand ambassadors via a Facebook Fan Page, and contributing to the conversation of universal safe water access via Twitter and blog postings. Toms Shoe model- One for one: One way to engage our customers is to provide interactive information on the touch-screen at the ReHydrate Kiosk,where they are buying water. This will directly inform them who is benefitting from their purchase and to what degree. Example: One 32oz. purchase might help a village in Tanzania to buy a water filter that will protect them from water-related illnesses for a year. Public relations outreach: The ReHydrate story of harnessing the power of business for positive change is timely and will be well received by local, national, and international press. Affinity communities - We will reach out to established networks within the social entrepreneurship, clean technologies, sustainability, and social equity communities in order to form meaningful partnerships and further promote our brand.
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Executive summary
FINANCIALS S A ILIN G
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Executive summary
FINANCIALS S A ILIN G
Contact Information: Cofounders- MBA Candidates, Daniels College of Business, 2011 Xander Page: APage23@du.edu, 720-936-0898 Amy Hutton: Amy.hutton@du.edu, 303-949-8276 Faculty Advisor: Dr. R. Bruce Hutton, bhutton@du.edu, 303-949-8274
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