PROJEC T REPORT ON DEVELOPING AND IMPLIMENTING A MARKETING PLAN FOR HEALTH FIRST PVT. LTD.

SUBJECT: MARKETING MANAGEMENT SEMESTER: JULY 2011 UNIT STANDARDS: 2930/2956 STUDENT NAME: SEEMA BULEKHA STUDENT ID: 4235 SUBMITTED TO: MR.PAUL (TRAINER)

DATE: 3/AUG/2011

1.0 EXECUTIVE SUMMARY For more than 25 years, our company has offered entrepreneurs the opportunity to start their own business selling exclusive and innovative anti-aging products, a nd that opportunity will be better than ever with our unique ageLOC approach. These are breakthrough products and tools that we have continually delivered to c onsumers. I think we should all be proud that we have this tradition of innovati on. We are not a one-product company. We dont just depend on one product for the bu siness opportunities we create for our distributors and we are going to continue this tradition with the launch of ageLOC. As you learn more about ageLOC scienc e, hopefully youll get as excited as I am, as this is the next and most significa nt breakthrough for the company 1.1 Company Background Pharmanex was founded by Dr. Michael Chang & Dr. Joe Chang, who was formerly Dep uty Director of Medicinal Chemistry at Merck and then went on to become Director of Medical Chemistry at Rhone-Poulenc Rorer, two of the world s largest pharmac eutical companies, resigned his position in order to form a new company that wou ld apply modern pharmaceutical standards of research and quality control to the haphazard nutritional products industry. He assembled a highly professional team of scientists from the pharmaceutical industry s top minds. About Dr. Joe Chang :-Dr. Chang, Ph.D. is the Chief Science Officer at Pharmanex and is not your average scientist. In addition to other significant discoveries , Dr. Chang led a team of Scientists at Wyeth-Ayerst, who developed the very fir st organ transplant anti-rejection drug (Rapamune). Rapamune is currently the 2n

d most prescribed anti-rejection drug used today. Dr. Chang has developed 3 majo r pharmaceutical drugs and yet believes that ageLOC is an anti-aging product dev elopment platform that surpasses all of his previous accomplishments. More about our company: Publicly Traded on NYSE (NUS) Dunn & Bradstreet 5A-1 Rating Operating in 50 Countries In Business Over 25 Years Corporate Office is in Provo, UT $1.3 Billion Annual Sales (2009) Over $600 Million in Assets Ranked #5 on Forbes 100 Most Trustworthy Mid-Cap Companies (April, 2010) Received a Stevie Award for the Most Innovative Co. (June, 2010) Pharmanex is a Division of Nu Skin Enterprises Product information:Age LOC Vitality is formulated to address the sources of age-related vitality lo ss. By supporting healthy, youthful expression of a mitochondria-related YGC, it promotes optimal mitochondrial performance to help your cells produce energy mo re efficiently. This exclusive ageLOCVitality blend improves three key areas of vitality-physical vigour, mental acuity, and sexual drive. Unlike many products currently on the market, ageLOC Vitality is not designed to provide a quick fix or boost. Instead, it is formulated to raise and maintain a person s baseline en ergy level for a long-term and sustained increase in overall vitality. This help s people avoid the ups anddownsof caffeinated and high-sugar drinks and suppleme nts. The bottom line is that ageLOC is the biggest discovery in anti-aging to date. I t is a multi-billion dollar discovery that will allows people to reverse aging a t a genetic level. It is the closest thing to the fountain of youth. Nobody has ever been able to influence the expression of a collective body of genes until n ow and the results are staggering. 2.0 AUDIT OF MARKETING ENVIRONMENT EXTERNAL ENVIRONMENT FACTORS: 2.1. CULTURAL ENVIRONMENT: New Zealands culture is as broad and varied as the country s landscape. New Zeala nd is multicultural and multiracial and this is reflected in the country s food, lifestyle and cultural practices and experience. New Zealand has an important h eritage from its indigenous people, which plays a defining role in the cultural landscape. This diversity of influences creates a cultural environment in New Ze aland that is lively, energised, innovative, and outward looking. 2.2. ECONOMIC ENVIRONMENT: New Zealand s abundant and diverse natural resources attract high levels of fore ign investment and include extensive reserves of coal, timber, iron sand, copper , natural gas, renewable energy sources and agriculture (4.9% of GDP): Products-dairy products, meat, and forestry products. Industry (goods-producing industri es 20.5% of GDP, service industries 68.8% of GDP): Types--finance, insurance, an d business services; manufacturing; personal and community services; transport a nd communication; wholesale trade; construction; government administration and d efences; fishing, forestry, and mining; electricity, gas, and water. Trade (year -end December 2010): Exports to U.S.--U.S. $2.86 billion: meat, dairy, wine, woo d and medical devices. Imports from U.S.--U.S. $3.34 billion: consisting primari ly of machinery (including information and communication technologies equipment) , aircraft, medical and veterinary instruments, motor vehicles (trucks), and pla stic resins. Major trading partners (rank ordered as of March 2010)--Australia,

People s Republic of China, United States, Japan, United Kingdom, and the Republ ic of Korea.These policies - and continued demand for commodities, especially fr om China - helped the New Zealands economy rebound after just one quarter of nega tive growth. 2.3 POLITICAL: New Zealand is one of the most important markets for Ericsson in the Asia-Pacifi c region. New Zealand hosts a growing economy; a stable political and business e nvironment; a skilled, well-educated and multi-lingual workforce; a strategic ti me-zone and a competitive cost base. These factors provide a sophisticated marke t and the right environment enabling Ericsson to drive innovation and technology . 2.4 SOCIAL: This business is relied both on Kiwi and other migrant groups and planned in suc h a manner for a mutual cultural exchange. Less possibility of racism unlike Australia but still one of the major factor si nce the population of other people in NZ is increasing every year. 2.5 DEMOGRAPHIC: Its always advisable to launch in city where visitors are more often visit, but apart from that there are few economical reasons hence following is a details st udy on people in various part of Auckland. 2.6 NATURAL: History of Natural Calamity is high in southern part of New Zealand, flood or ea rthquake might result in increase in price of medicines but due to currency valu e it remains affordable. Goods are planned to import in regular interval in order to avoid food wastage h ence natural calamity such as earth quake in NZ might affect the business but wo nt result in loss. 2.7 LEGAL: To start a business as per NZ government, the following are required 1. State & Distric Licence 2. Pharmacist Licensing 3. Food premises grading 4. Business Taxes Payroll taxes for employees Property tax for equipments and inventory State income tax Business license fees Rise in GST Might result delay in attaining growth rate 2.8 REGULATORY: Change in law regarding medicines and pharmacy factors might lead to further inv estment on the business hence affect the profit margin. 2.9 TECHNOLOGICAL: This business is not much focused on technological factors unlike few as follows Introduction of new products

New invention which gives result faster and safer with no side-effects. Need EFTPOS and credit card swipe machines which are often used in NZ.

2.10 RESOURCES: lowing price price. This business relies on resources and invention from U.S hence its subject to fol Availability of goods in U.S Change in goods value which might affect pricing product hence instable medicine or compromise in profit. Climate change in New Zewaland will lead to high demand for products hence high

3.0 MARKET ANALISYS AgeLOC represents the creation of an entirely new anti-aging paradigm. Our objec tive is to deliver benefits both in the way we look and the way we feel. The new ageLOC Vitality supplement targets the sources of age-related vitality loss by resetting Youth Gene Clusters (YGCs) associated with the production and maintena nce of youthfulness. AgeLOC Vitality provides noticeable improvements in the thr ee dimensions of vitality: Physical Endurance, Stamina, Resistance to Fatigue Mental Cognition Clarity, Focus, Memory Alertness Sexual Desire, Libido The same science that produced such dramatic visible skin results is now being u tilized in the development of a product that will target the sources of aging on the inside to delay the onset of aging and extend youthful life. 3.1 MARKETING PLAN: The pharmnex s marketing strategy will be to execute and communicate its value p roposition of service and market segmentation advantage in providing segregated regeneration of customer . MISSION: We have a mission to provide customers with the finest quality skin care product in its segment. We exist to attract and maintain customers. When we adhere to d o this maxim, everything else will fall into place. Our product and services wil l exceed the expectations of our customers. MARKETING OBJECTIVES: Generate 10% increase of customers base per year. Increase customer referrals by 3% a quarter. Develop brand equity. FINANCIAL OBJECTIVES: A double digit growth rate for each successive year. 60% of the revenue stream to come from recurring revenue(sales commission) by ye ar three. Reduce overhead costs by 5% per year 3.2 TARGET MARKET: As any product is brought to the marketplace it will gain the attention first of the early adopters, then the primary market, and then the marketlagers. Our pri mary target market consists of mature community of New Zealands market who is mor e health conscious and is serious about their physical looks. Presently there are about 20,000,000 people in the New Zealand out of which our

potential target market is the more than 60% population who are above the 30 yea rs of age. Our experience has been that it takes about to penetrate the new market segment. Our marketing efforts of last year are paying off this year as we close the ide ntified opportunities. Our objective is to keep the pipeline full and have regul ar closing. Many of the existing customers are already returning for additional customization. We expect our revenues to grow at a minimum of 50 % to 100% for t he next several years. The census analysis of New Zealands market show that there is a large group of pe ople over 30 year of age (48%) which is our target market customer. Demographic include a 38% men, 42% women and 30% childrens. The age breakdown of mature age people is 30-40(), 40-50(), and 50+() Marketing and community advertising will focus on the influencer. 3.3 DEMAND Only Pharmacy with Ageloc menu hence creates demand in NZ. New different products which NZ havent discovered yet. Imported goods hence fulfill the customers live through buds need. 3.4 MARKET DEVELOPMENT Free home delivery for some bulk orders. Pack offers on related menu. Nutritional value on food served Special menu for diabetic patients. Get some doctor approval on certain medicine as per nutrition facts. Special offers on special days and information about the festival. 3.5 SALES FORECASTS The sales forecasts are kept low or just above reasonable or achievable conditio n in order to avoid disappointment. Predicted sales forecast will be on number of customer and their satisfaction. Sales forecast is also calculated with respect to the following category Employee wages Goods value which includes GST Maintenance and other miscellaneous charges applicable. 3.6 SWOT ANALYSIS: I. STRENGTH: A wide range of personal contacts Quality product Focused customer attention II. WEAKNESS: New product in market Labour intensive to make initial sales Limited by who you know III. OPPORTUNITIES: Chances to develop multi-level business that will help to generates revenue stre am from association. Low or very limited completion in this segment product. IV. THREATS: Already established marketing network of other natural products A change in public perception regarding chemical oriented beauty product. 3.7 COMPETITION Comparative Analysis: This product will stand as first age controlling medicine with all approval & ce rtificates. The analysis is done within our self every six months in order discover our prof it, loss and customer satisfaction attained.

Analyze the pricing with other similar product and look forward towards variety and affordability. Competitive analysis: Survey once in every year where a Pharmacy is running successfully in order to l aunch our branch to increase customers. Research on medicines that is served commonly by doctors or which has good figur es in terms of sales in hospitals. 3.8 MARKETING MIX:Pharmnex s marketing mix is comprised of the following approaches to pricing, di stribution, advertising and promotion, and customer service. Pricing: There is virtually no competition for this product in the New Zealands market so the company can charge a little bit higher price for this product. It is essential that pharmnex place a premium price consistent with its superior product. Wholesale price have been established to encourage the quick formation of a dealership network. Distribution: Whenever pharmnex cannot economically sell directly, due to distan ce of quantities, it will utilize a network of distribution channel. Advertising and Promotion: The main focus of promotion will be two pronged. Prom otion to pharmnex company s end users, and promotion to wholesalers. The sales force of these whole wholesale distributors need to be educated on pharmnex com pany positioning so that they all understand the importance of sales advantages of pharmnex s product. The distributors truck, as well as pharmnex companys vehicl e would carry the pharmnex company s logo, helping all to achieve name recognition. Customer satisfaction: the customers expectation must be exceeded always. The onl y way the company can succeed is if they ensure all of the customer s needs are being met and the customer leaves the transaction with the feeling that they wer e truly appreciated. Marketing Mix Consumer behavior Product Age LOC Vitality Social, Psychological, cultural Price Affordable Psychological, social, personal Place/Distribution Relationship Marketing, social Promotion Relationship Marketing, Psychological 3.9 FINANCIAL STATEMENT FOR MARKETING BUDGET : Company wants to spend $100 k in every year for following schedule expenses: ITEM ANNULLY OR MONTHLY EXPENDITURE TV Advertisement Annually $30K Magazine Monthly $1K Product of Advertisement Annully $10K Samples Annually $5K Packaging Monthly $3K Internet & Phone Annually $7K Total $100K

4.0 INTERNATIONAL MARKETING

Design, Symbol, colour and shape: Design and symbol an auspicious U.S.A symbol which is westernized for reach. Colour and shape- combination of colours from U.S.A and New Zealand flags. Terminology and Trademarks A Logo with our products one line description will be more helpful and vital. Design/labeling and Packaging materials Initial packaging methodology will be focused on being cost effective but as bus iness reaches a growth period usage of bio recyclable packs or palm leaf will be used. We probably focus on printed covers rather than printing on supplied boxes. 5.0 CONCLUSION The bottom line is that ageLOC is the biggest discovery in anti-aging to date. I t is a multi-billion dollar discovery that will allows people to reverse aging a t a genetic level. It is the closest thing to the fountain of youth. Nobody has ever been able to influence the expression of a collective body of genes until n ow and the results are staggering. 6.0 REFERENCE http://www.austrade.gov.au/Invest/Why-NewZealand/Democratic-and-Politically-Stab le/Democratic-and-Politically-Stable/default.aspx http://www.entrepreneur.com/marketing/marketingbasics/marketingplan http://www.mplans.com/sample_marketing_plans.php http://www.nuskin.com en.wikipedia.org/wiki/New Zealand en.wikipedia.org/wiki/Economy_of_New Zealand