GRAPE SEED OIL PROJECT

Project objective

 Provide recommendations on the best ways to launch and market the product in China.
 Previously the product was only sold in South Africa
Achieved through:
 Market research
 Marketing strategy proposal.
 Elevator Pitch.

 The grape seed oil is a fairly new product to Chinese oil market. As the Chinese GDP is
growing on a regular basis annually, there are an increasing number of people paying
more attention to improve the quality of life. As a healthy oil option grape seed oil can
attract these citizens by its high smoke point and numerous medical benefits. The total
revenue of cooking oil industry in China was $171.1 billion in 2013 and is going up
17.3% per year (IBISWorld report). The B-well Grape seed oil is ready for sale now with
all the required governmental certification, retailing at 45RMB per 500ml bottle online
and 55RMB in the shops.
 Nan Fei Long Food Trade Co Ltd
Established: 2011

Wholly Owned Foreign Enterprise (WOFE) with the center of operations in Wuxi.

Company is focusing on importing pure grape seed oil produced in South Africa to China.

Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn

 Product overview.

 Grape seed oil has a very sweet, light and slight nutty aroma
 Can be used in salads, sauces, marinades, baking and deep frying.
 Grape seed oil has smoke point of 270℃.
 Therefore it is better for high temperature cooking and can be
safely used to cook at moderate temperatures during stir-frying.
 Low in saturated fat
 Therefore can be used as part of low fat diet

Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn

 Product overview.
 HEART CARE: Raises the good cholesterol (HDL) and lowers the bad
(LDL)
 WEIGHT CARE: Low in Saturated Fat - 11%.
 BREAST CARE: Shrinks swelling from non-cancerous cysts.
 CIRCULATORY CARE: Shrinks varicose veins, improves skin colour and
texture
 JOINT CARE: Excellent for Arthritis prevention as it maintains healthy
collagen.
 EYE CARE: Improves eyesight by causing the small blood vessels in the
eyes to function more efficiently.
 ALLERGY RELIEF: Blocks the release of enzymes that produce the
histamines that trigger allergic reactions.
Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn
 Nutritional benefit comparison.

Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn

 Market potential.

 Recent healthy lifestyle trend.

 New and expanding market.
 China is expected to become world‘s largest importer of agricultural and food products in the next ten to
twenty years. (AAFC report)
 The unbalanced diets are leading to an increase in health-related problems among the general Chinese
population, this make the Chinese people become more health-conscious.
 Over 40% of women in urban China and Hong Kong consider themselves to be overweight, and nearly 25% of
urban women in China are planning to try and lose weight. (Nutraceuticals world)

Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn

 Key Applications

Could be used:
At home

Restaurants

Bakeries

Hospital canteens

School canteens

Street food stalls

Future: cosmetic application- massage, skin moisturiser, hair mask

Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn

 Business Model
Trade Sale (to whom)
 Online sales: Taobao
 Grocery retailers: Auchan and RT Mart (a Chinese flagship supermarket chain)
 Future: Supermarket chains such as Walmart

With time frame

 Taobao within the next two months.
 Grocery retailers within the next six months.

Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn

 How to get sales (reach your customers)

Direct sales
 Store sales in Ningbo
 Hiring some promoters (2 employees in company now)

Channel sales
 Partners: Taobao, Auchan, RT Mart
 The number of partners: 3 ( Taobao, Auchan, RT Mart)
 Territory Definition: Ningbo, other cities close to Ningbo when the product is better known and distribution channels
established

Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn

 The product Line-up

 500ml grape seed oil

 In the future: more products from South Africa
 Grape seed oil for cosmetic use
 Red wine
 Red bush Tea

Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn

 Strengths & Opportunities Analysis
Strengths
• Affordable price. B-Well Grapeseed Oil is planned to retail for 55 RMB
online with free delivery or for 45 RMB without free delivery compared to
average price of 80 RMB for other brands Grapeseed oil sold on Taobao.

•Approved to enter to China market by government of China.

•Increasing affluence and urbanisation of China influences some peoples

choices towards choosing healthier food options.

Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn

 Competitive Analysis

Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn

Strengths & Opportunities Analysis

Opportunities
 Increasing health consciousness of Chinese consumers

 China has the largest grocery market in the world.According to Clearwater Foods report
in 2011 grocery sales in China reached $972 billion (RMB 3.5 trillion).

 Increasing popularity in online shopping in China. According to Acquity Group report 44

% of people surveyed shop online at least once per week and more than 30% purchase
groceries online.

Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn

 Market Size

 The total revenue of cooking oil industry in China was $171.1 billion in 2013 and is going up 17.3% per year.

 Estimated consumption of edible oil in 2015 will reach 30 million tons, per capita consumption will reach 20
kg (15 kg per capita in 2008).
(IBISWorld Cooking Oil Production Market Research Report, 2013)

Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn

 Market size projection.
Months Bottles Price Sales
1 5000 45 225 000
2 6500 45 292 500
3 8450 45 380 250
4 10985 45 494 325
5 14281 45 642 623
6 18565 45 835 409
7 24134 45 1 086 032
8 31374 45 1 411 842
9 40787 45 1 835 394
10 53022 45 2 386 012
11 68929 45 3 101 816
12 89608 45 4 032 361
Per Year ¥16 723 564
Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn
 Projection of revenue, expenses, gross profit
(2012-2016)
RMB/ Year 2012 2013 2014 2015 2016
(last year)
Revenue 5616000 7300800 9491040 12338352 16039858

COGS (Gross) 2016000 2620800 3407040 4429152 5757898

Other Expenses 2986893 3215112 3649705 4183528 4843123

Gross Profit 3600000 4680000 6084000 7909200 10281960

Net Profit/ (Loss) 459830 1098666 1825721 2794254 4079128

Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn

 Key Management
Mr. Hendrik Lodewyk Appelgryn
Education :
•Master Business Administration (University of South Africa)
•Advance Executive Program (University of South Africa)
•Management Development Program (University of South Africa)
•Doctorate of Business Administration - Switzerland (Completed by June 2014)

Experience:
•CEO at South African IT company 1997 - 2007
•Business Teacher in China 2007 - present

Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn

 References
• http://www.ahdb.org.uk/news/China.aspx
• http://www.agr.gc.ca/index_e.php
• http://www.examiner.com/article/uab-finds-potential-skin-cancer-cure-grape-seed-
extract
• http://www.homecookingadventure.com/articles/grape-seed-oil-benefits
• http://abcnews.go.com/Health/SkinCare/top-moisturizers-dry-
skin/story?id=18629073
• http://blogs-
images.forbes.com/robertolsen/files/2011/12/eCommerce_Infographicb.jpg

Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn

 Summary
• Experienced management in R&D, mgm’s and sales
• Already sold RMB 5.6M in previous year
• 7 government approval certificates
• RMB RMB 16M market size coming in 5 years
• Signed partnerships with Western Cape Oil

Further Inquiry:
• Mr. Appelgryn, CEO
• Phone: +8613554700707
• Email: Henni.Appelgryn@nottingham.edu.cn
• Website: www.nanfeilong.com

Henni.Appelgryn@nottingham.edu.cn phone: +861355400707 Henni Appelgryn