Sports Supplements for Taiwan: The Market for Protein and Pre-workout Products

• Main Authors: Stephen Walker, 沃提芬
• Other Authors: Dr. Yuan-Ling Chen
• Format: Others
• Language: en_US
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/5jeg3e

碩士 === 國立中山大學 === 管理學院國際經營管理碩士學程 === 106 === Asia-Pacific is the fastest growing market for sports nutrition products in the world. This growth is fueled by an increase in disposable incomes coupled with rapidly changing lifestyles. This Business Plan, for Powerhouse Supplements, will outline how this business intends to take advantage of this trend and become the first supplement company to develop, market and sell pre-workout and protein supplements specifically for the Taiwanese market. Powerhouse Supplements will sell two products, a pre-workout powder and protein supplement (chocolate, vanilla and strawberry flavors). This business will sell directly to Taiwanese consumers online, and over-time will grow a second distribution channel by reselling through Taiwanese gyms. To better understand the Taiwanese market for sports supplements market research was conducted, by surveying men and woman who regularly attend the gym. This market research revealed a clear customer segment of men aged 15-45, who attend the gym regularly, as the target group of customers that are most likely to consume sports supplements on a regular basis. This primary research also informed Powerhouse Supplement’s proposed pricing, distribution and promotion strategies. This Business Plan also includes a comprehensive environmental scan to gain insights into the competitive landscape of the supplements industry in Taiwan. Currently, there are no protein or pre-workout products targeted to Chinese Mandarin speaking customers, availability of supplements is also limited, with only one major brick and mortar store (Costco) and two online retailers offering these products to consumers. Products were predominately sourced from the United States and prices were comparatively higher than in other jurisdictions. The Taiwanese market for supplements is underserved providing a huge opportunity for a new entrant such as Powerhouse Supplements. Powerhouse Supplements will utilize a focused strategy, as described by Porter (1985), which centers on a narrow competitive scope within industry. In this case the sports supplement industry within Taiwan. The company intends to take a cost focus for both of its pre-workout and protein products, which means it will seek a cost advantage in the target segment. Powerhouse supplement expects its products to retail for between 15% and 20% cheaper than other comparable products on the market. This cost advantage will be achieved by purchasing in bulk from New Zealand producers and taking advantage of bilateral free-trade agreement with New Zealand and Taiwan. Detailed information on the sports supplement industry in Taiwan, financial forecasts for the proposed business, a marketing plan and customer analysis are all contained in this Business Plan.