Effects of Hospital-Based Smoking Cessation Interventions

Effects of Hospital-Based Smoking Cessation Interventions The Effects of Hospital-Based Smoking Cessation Interventions on 10-Year Mortality  Among Adult Smokers 18-64 Eline van den Broek 1 Setting up the Research Designs Background Tobacco use is the leading preventable cause of disease, disability, and death in the United States [CDC, 1]. It is estimated that cigarette smoking results in more than 480,000 premature deaths and approximately 8.6 million Americans live with a serious illness caused by smoking [2]. Research has established smoking causes various serious diseases such as cancers, lung diseases such as chronic bronchitis and emphysema, and increases in the risk of heart disease, including stroke, heart attack, vascular disease, and aneurysm [3-37]. Various studies, including RCT’s, cohort and case-control studies, concluded that adults who smoke die earlier than nonsmokers [3-37]. Reversely, researchers have also found that preventing deaths caused by smoking would lead to substantial gains in life expectancy [38-41]. While we have gathered extensive information about tobacco use as a major cause of many of the world’s top killer diseases, responsible for the death of about 1 in 10 adults worldwide [42], less is known about the effects of different smoking intervention programs on mortality and life expectancy. Successful smoking cessation interventions almost certainly result in major gains, both in reducing smoking-related illnesses and potentially in preventing premature deaths [43]. The more evidence we have on what type of programs are most effective in smoking cessation, the easier it would be to address the crucial public health and policy question whether these programs are desirable in the context of avoidable mortality. Also, since most studies have focused on comparing smokers to non-smokers, we need more evidence about the effect of different interventions among smokers only. In Colorado, over 900,000 residents currently smoke, with the highest rates among young adults aged 18 to 24 years (28.2%). In 2000, 52.8 percent of adult smokers in Colorado made quit attempts of at least one day. [44] Researchers in the University of Colorado Hospital (UCH) have decided to implement a smoking cessation intervention, including bedside consultation with follow-up therapy and free nicotine replacement therapy (NRT). [45] The objective of this study is to determine the effect of this UCH-initiated intervention on 10-year mortality. The aim is to implement hospital systems change to improve inpatient tobacco dependence treatment. [45] Most of the literature involving smoking cessation interventions is related to outpatient interventions. Some studies have focused on the effect of inpatient smoking cessation interventions and rehospitalization. [46] Our study will contribute to that body of literature, focusing rather on an inpatient smoking cessation intervention and it s effect on 10-year mortality. Research Questions and Hypotheses Research Question: Does a hospital-initiated smoking cessation intervention predict lower 10-year mortality rate? Hypothesis: We hypothesize that the hospital-based intervention to encourage tobacco using inpatients to quit smoking has a significant lowering effect on 10-year mortality rate. H0: There is no significant effect of the UCH inpatient smoking cessation intervention and 10-year mortality Ha: There is a significant effect of the UCH inpatient smoking cessation intervention and 10-year mortality Recall bias is a classic form of information bias: we will not collect the correct information, because the subjects in the study report past events in a manner that is different between the two study groups case-control. Since our study will be backwards in directionality, it would in general be more prone to information and recall bias. This happens, for instance, if our cases and controls will differentially recall intervention, related smoking behavior, or any other variables that we include in the model that are based on self-reported data, so that inaccurate recall is related to characteristics of the exposure of interest and of the respondents. Yet in our case, the most important information is collected using information recorded in the electronic medical record, so we will are less worried about this type of bias in our design. Interviewing technique and the study protocol, including the design of questionnaires and the motivation of respondents, play a central role and are under the control of the investigator. [130] Even though we think that our matching process will limit confounding bias, we still may deal with the issue that the influence of one intervention is mixed with the effect the other. For example, the intervention may have led to other healthy lifestyles, such as less alcohol use or more exercise. This would be less relevant in our case, however, because we are really interested in the effect of the intervention on mortality. If the intervention has positive effects on other healthy behaviors, that will not bias our conclusions. In case-control studies, selection bias can occur in the selection of cases if they are not representative of all cases within the population, or in the selection of controls if they are not representative of the population that produced the cases. [131] It could be that cases and/or controls are selected on criteria related to the intervention, for example they are selected differentially on the basis of their intervention or there may be differences in reporting of which intervention they received between cases and controls. We may have a concern with selection bias in our study design, because both the intervention and the outcome have occurred by the time the patient is recruited into the study. The (internal and external) validity of a case-control study depends on the representativeness of controls. [132,133] The controls need to be a representative sample of the study population from which the cases are drawn during the study period. Since we will use a computer generated pool of controls, they will be randomly selected to minimize bias. We do expect some issues with consenting the controls and expect that we will have to use second or third drawn controls to match with some of the cases. Generally, â€Å"hospital controls† are often more easily accessible and tend to be more cooperative than â€Å"population based† controls. [50] A disadvantage of drawing from a hospital population is that we will have an issue with the external validity of the study. The question remains whether we will be able to generalize the results from the UCH-based population to other inpatient interventions or even more broadly: a population based intervention. 4.8 Study Strengths Among the strengths of a case-control study are the fact that they are generally relatively inexpensive, they are short-term studies to conduct (so cheaper and quicker); they are efficient designs for rare diseases or for studies with a lagged outcome like mortality in 10 years; and they can be powerful with small samples of cases. While the 1:2 matching design is intended to eliminate confounding, the main potential benefit of matching in case-control studies is a gain in efficiency. We do need to note that since we currently design the study and the intervention(s) still need to take place, we will have to wait for 10 years to measure the effect on mortality. But as mentioned, another advantage of a case-control study is that they are typically feasible to obtain sufficient numbers of cases when studying rare diseases or diseases with a long latency period, like in our case: mortality in 10 years. We will thus require a smaller sample size than with other designs and we can still evaluate the effect of the different types of interventions. The fact that we have the ability to use multiple controls of the same type has the advantage of increasing the study’s power.

Business Plan †Tfbg Essay

Product The Functional Beverage Group, Inc. has designed and is now developing a line of enhanced water products using a micro-targeting strategy. Consumers will be able to choose from a diverse, yet highly specific product offering based on their supplemental dietary or hydration needs. Each product will be optimized for vitamin content, electrolyte content, caloric content, and energy boost. We are currently in the process of developing three (3) of the targeted formulations. What makes our enhanced water products so unique is that all of these products will contain levels of Vitamin D3. Our major competitors – from Sobe, to VitaminWater, to Propel, and the rest – do not have enhanced waters that contain Vitamin D3. Because of the amounts of research data available, we may be able to make health claims concerning our formulations – claims that the other functional waters can’t make. Currently, there is no major marketer of a functional water product containing Vitamin D3. Why Vitamin D3? – Over the last two years, there has been a rash of research emerging concerning the lack of Vitamin D in our diets. Many physicians agree that the levels of Vitamin D suggested by current U.S. guidelines are insufficient. The lack of Vitamin D in the diet is beginning to gain notoriety by obstetricians, gynecologists, oncologists, pediatricians, and orthopedists across the country giving rise to what is being labeled as a new â€Å"epidemic† – Vitamin D deficiency. Our Technology – Vitamin D has chemical properties which causes it to be virtually insoluble in water. Therefore, a beverage company would need to develop the technology to dissolve Vitamin D3 into a water product using food grade ingredients while at the same time making a product that is pleasing in both taste and appearance. The Research and Development Team of The Functional Beverage Group has developed the technology to accomplish these goals. We are now seeking raise capital in order to finalize our formulation development and bring these product formulations to market. Investment Opportunity A $500,000 initial investment (available in units of $10,000 each) provides an equity position in The Functional Beverage Group, Inc. This funding will allow the FBG to complete initial development of its product line, develop informational web-site, and cover the legal fees and other expenses related to the completion of the second round of funding for the development of the operating company – Functional Foods & Beverages, Inc. Exit Strategy Our research has shown that most beverage companies are in the acquisition and/or partnering mode. Recently, many small beverage makers have been purchased by larger entities such as Coke, Pepsi, and Dr. Pepper/Snapple. Some of the more recent purchases include Coca-Cola’s purchases of Glaceau’s VitaminWater and SmartWater brands ($4.1 billion), Fuze Beverage ($327 million), Agua Brisa ($92 million), and Jugos del Valle ($456 million). Of more interest to The Functional Beverage Group is the recent investment of approximately $5 million the Dr. Pepper/Snapple Group made into Hydrive Energy, LLC. The Functional Beverage Group believes that our functional waters containing D3 will be a good fit for any of those organizations and therefore we can offer an attractive exit plan for our investors. In an otherwise sluggish merger-and-acquisitions market, successful beverage firms are still the darlings of Wall Street deal makers. According to the December 9, 2009 edition of the Wall Street Journal, November was the biggest month in over a year for deals involving consumer products and food and drinks firms with $12.54 billion in acquisitions. One of those companies for sale is Cliffstar Corp., a New York based fruit-juice and sports-drink maker. Cliffstar has hired Morgan Stanley to conduct an auction and has entered a second round of bidding, said several people familiar with the matter. Closely held Cliffstar has annual earnings around $75 million and is seeking seven to eight times earnings, which would put it a sales price at $500 million to $600 million, according to the article. Budget Statement Our revenue and expense projections are based on exhaustive industry research based on the cost to manufacture and market a new beverage product. In estimating revenues, we look at three products currently on the market: 1) Wal-Mart’s Acai-based Energy Drink, 2) Hy-Drive Energy Drink, and 3) DRANK Relaxation drink. These products are thought to be some of the most innovative products at the time of their introduction. Our revenue projections are conservative. If we can achieve early adoption into the major retailers like Wal-Mart or Target, we can far exceed those revenue projections. Our initial investors will become members of The Functional Beverage Group, Inc – an intellectual property development organization. Because The Functional Beverage Group, Inc will have few expenses and we expect to become profitable by Year 2. Most of these profits will be distributed as dividends to our shareholders. Figure 1. The Functional Beverage Group, Inc – 5 Yr Revenue Projections [pic] The Functional Beverage Group, Inc will maintain an approximate 40% stake in Functional Foods & Beverages, Inc (FFBI). FFBI will have the primary responsibility of manufacturing and market products licensed from The Functional Beverage Group, Inc. Figure 2. Functional Foods & Beverages, Inc – 5 Yr Sales Projections [pic] 2. The Functional Beverage Group, Inc. The Functional Beverage Group, Inc (The FBG), an Illinois Corporation was established in 2009 with a one core purpose – to become the preeminent supplier of functional or enhanced water products. The FBG is developing a line of functional water products based on the diverse needs of the functional water consumer. The consumer will be able to choose from a diverse yet highly specific product offering for their supplemental dietary or hydration needs. Each product is optimized for vitamin content, electrolyte content, caloric content, and energy boost. Our marketing will focus on grass roots efforts as well as forming alliances, partnerships, and promotional agreements with A-List celebrities to produce other unique marketing angles. Our business model will be split into three separate entities: 1) The Functional Beverage Group, Inc – an intellectual property organization responsible for the development and licensing of proprietary enhanced water products and other beverages to be produced and marketed by its subsidiary operating company, Functional Foods & Beverages, Inc. 2) Functional Foods & Beverages, Inc – the operating company responsible for the manufacturing of products developed by The Functional Beverage Group, Inc. Functional Foods & Beverages, Inc will have the exclusive right to manufacture and market products developed by The Functional Beverage Group, Inc. Functional Foods & Beverages will be managed by individuals with food and beverage industry experience. Although this organization will be managed by beverage industry professionals, selected members of the Functional Beverage Group, Inc will act as consultants to the organization. 3) Functional Beverage Real Estate Holdings, LLC – a real estate holding company responsible for acquiring any land and buildings associated with the manufacturing and distribution of products sold by Functional Foods & Beverages, Inc. The Functional Real Estate Holdings, LLC will seek to locate facilities in areas where they can take advantage of incentives such as TIF financing, property tax concessions, and vacant or unused property incentives. [pic] Figure 3. Proposed Operating Structure 3. Management Team Our core management team consists of: Shelby Parchman, President – MS Chemistry, Illinois Institute of Technology. Mr. Parchman has worked in new product development in the pharmaceutical and nutrition arenas for both Baxter Healthcare Corporation and the Amoco Corporation (Now BP). Mr. Parchman has years of experience working in the manufacture and formulation of analogs of Vitamin D3. In addition, he has a 15-year track record of success in working with start-up and entrepreneurial organizations. Mr. Parchman’s background in product development and nutrition has been instrumental in developing the unique features and formulations of our product mix. Edward A. Williams, Corporate Treasurer – JD, DePaul University School of Law, CPA (Licensed in IL & IN). Mr. Williams specializes in legal matters in the following practice areas: Tax Law, Tax Planning, Tax Litigation, Civil Practice, and Federal Taxation. Mr. Williams has represented several notable clients including the late Bernie Mac. Marvin Rux, Business Organization and Management Consultant – JD North Carolina Central University School of Law, MBA University of Chicago Booth School of Business, Mr. Rux practiced law for more than 20 years, specializing in the following practice areas: Real Estate Law and Taxation, Business Law & Development, and Estate Planning. Mr. Rux, no longer actively practicing law, provides consulting services to business development and real estate investment clients. Christopher McGruder, VP of Marketing – BA Business Administration, Barrington University. Mr. McGruder has extensive Marketing, Public Relations and Executive Assistance experience via Edelman PR Worldwide, Merck & Company Pharmaceuticals and Morgan Stanley. His clients’ list includes several Fortune 100 Companies such as: Micro-Soft, Sears, Wrigley’s, KFC, Unilever, Kobel Champaign, Mike’s Hard Lemonade, Cub-Cadet, and Axe Body Spray. He was instrumental in the capabilities development and promotions, and execution of product initiatives and national campaigns. Charles Moss, Marketing and Promotions – BA Communications, Southern Illinois University, Mr. Moss has years of experience in the entertainment and recording industries. Through his organization, Chuck Moss Presents, he has worked with various recording artists in all aspects of management, marketing and promotions. Because his reach stretched from Los Angeles to New York, he has been able to develop a valuable network of celebrities in both the music and sports industry. Terrence Seaphus, Marketing Consultant – MS Marketing/Advertising, Northwestern University Medill School of Journalism. Mr. Seaphus is an individual who can conceptualize a project and follow through to completion. His experience at M&M Mars along with his Northwestern University Graduate School tenure set the foundation that gave him the tools to succeed in marketing, advertising, diversity training and sales. His understanding of how to take new products through different channels including distributors, retailers, wholesalers, and finally, the end-consumer requires a 21st Century integrated marketing effort which happens to be his background. Michael Vick, Marketing Consultant – Pro Football Player, Virginia Tech (College), Atlanta Falcons, Philadelphia Eagles. In addition to being an outstanding football player, Mr. Vick has a keen sense of marketing and salesmanship. In addition to being a partner, Mr. Vick has expressed interest in being our first signed celebrity endorser. In addition, Mr. Vick has a list of contacts who have expressed an interest in investing in our endeavor. Mr. Vick still has numerous fans and followers. His jersey is still a best seller in the NFL – a good testament to his marketing potential. Pamela Williams, Manufacturing Consultant – MS Chemical Engineering, Washington University. Ms. Williams is a dynamic leader with extensive experience in project management, process and mechanical equipment design, and manufacturing start-up. Her broad technical expertise and demonstrated ability to learn technology quickly will enable us to complete project milestones at a fast pace. Additionally, Ms. Williams has over 12 years of experience working in global manufacturing at Proctor and Gamble. Larry Williford, Project Management – MBA, MPM, Keller Graduate School of Business. Mr. Williford has extensive experience in project management. He is skilled at working with business units to create sound business strategies, as well as supporting technology strategies. Mr. Williford worked in the IT departments of the McDonald’s Corporation, CNA Financial Services, and the Motorola Corporation before starting his own IT Consulting Business – Premier Project Management, Inc. 4. Introduction Functional Waters The bottled water industry has experienced phenomenal growth over the last ten years. Although low cost tap water is readily available, there is still 71 million bottles of water consumed per day. In 2007, bottled water sales reached $15 billion. What’s fueling the demand for bottled water? Bottled water demand is powered by the health and fitness craze. Consumers are being told that drinking bottled water is healthy and they have responded to the call by increasing their consumption of bottled water on a year over year basis. As the consumer becomes even more health conscious, there is an increased demand for enhanced and functional waters. These enhanced and functional waters contain added ingredients such as vitamins and minerals that allow the manufacturer to claim health benefits related to these waters. Therefore, functional waters have a greater product distinction. Demographically, these enhanced waters are especially popular with 18-35 year olds. Industry Trends According to beverage industry experts, the beverage industry has been trending towards lighter, lower calorie beverages with an emphasis on taste, refreshment, and function. Functional or enhanced beverages have seen phenomenal growth for the years 2006-2009 where the industry saw sales of enhanced waters and sports drinks up by 36% and 16% respectively for the period. Sales growth has been modest (approximately 3% from Jan 2009 to May 2010) during the current recession. However, according to Coca-Cola and Pepsi, sales of the enhanced waters have kept overall beverage sales in the black. Figure 4. Beverage Industry Growth [pic] Source – Beverage Spectrum, June 23, 2010 Factors for Success of the Product According to Michael Bellas of the trade publication Beverage World (www.beverageworld.com), there are some key factors in making a new beverage product successful. These factors are: 1) Make product exciting for the younger consumer, 2) Let the label tell a good story – convince the consumer, 3) Create great and exciting flavors, and 4) Create added value and credibility. We took these factors into account as we designed our initial product offerings. 5. Product Plan Our initial product line is designed to address three relevant issues concerning vitamin supplements, obesity, and water quality. The three main product qualities are: 1) Fortified with Vitamin D3, 2) Natural, no-calorie natural sweeteners, and 3) Certified pharmaceutical free. 1. Fortified With Vitamin D3 Over the last two years, there has been a rash of research emerging concerning the lack of Vitamin D in our diets. Many physicians agree that the levels of Vitamin D suggested by current U.S. guidelines are insufficient. The lack of Vitamin D in the diet is beginning to gain notoriety by pediatricians and bone doctors across the country giving rise to a new â€Å"epidemic† – Vitamin D deficiency. The Functional Beverage group has designed a line of â€Å"Health Waters† that include levels of Vitamin D3. We will design our marketing campaign around the concerns for the lack of Vitamin D in the diet along with the health benefits of supplementing Vitamin D in the diet. Because there is not a â€Å"one-size-fits-all† recommendation for the amount of Vitamin D that should be supplemented in the diet, we have designed different formulations for targeted groups. This keeps in line with our strategy of micro-targeted waters. Therefore, in addition to optimizing our formulations for taste, other vitamins, sugar content, etc, we will also optimize for the levels of Vitamin D suggested for our targeted groups. 2. Stevia – The Natural, No-Calorie Sweetener The Functional Beverage Group has chosen an extract of the Stevia plant as the primary sweetener in our enhanced water products. A recent article in the Wall Street Journal highlighted Pepsi’s and Coke’s development of products using the Stevia plant (see WSJ, July 31, 2008 – Beverage Wars Take on New Flavor). Massimo d’Amore, chief executive of PepsiCo’s beverage business in the Americas states that – â€Å"This is probably the biggest change in the formulation of beverages since the initial days of artificial sweeteners.† 3. Certified Pharmaceutical Free As evidence mounts of contaminants in some public water systems, unease about the water supply is growing. As detection technology improves, utilities are finding more contaminants in water systems. In early 2008, media reports of trace amounts of pharmaceuticals in water across the country drew attention from U.S. Senators and environmental groups, who are now pushing for regulations of these substances in water systems. Health concerns extend to bottled waters according to the National Defense Research Council. A lot of bottled water is actually tap water. Consequently, there is no assurance that what is coming from the bottle is any safer than what is coming from the tap, according to their studies. The Functional Beverage Group will certify each lot of water to be free of all pharmaceutical compounds. These results will be verified and/or tested by independent testing laboratories. In order to insure water of the highest purity, we will start with purified spring water. If necess ary, we will process/polish our feed water to a level of high purity utilizing industry standard methods. 6. Initial Product Design â€Å"†¦beverage marketers may be best served – and this is the key point – by classifying products according to the new evolving need states that define our consumer.† – Michael Bellas â€Å"Barrington’s [School District 202] dairy dilemma is an example of a discussion playing out across the country, as educators try to reconcile two concerns: childhood obesity and insufficient calcium intake. Even some experts have trouble coming up with a satisfying answer.† – Chicago Tribune, Nov. 19, 2009 Formulations We will formulate and bottle our products using purified Wisconsin spring water. Our initially proposed products are: 1) Infant Water, Certified Pharmaceutical Free (CPF) – This product is the same as any nursery water sold on the store shelves today. However, each bottle will contain a CPF label stating that we have tested the water and certified it to be free of any detectable levels of pharmaceuticals. What concerned mother wouldn’t choose our product over one that has not been certified? 2) X-Y-Teen (Young G) Formula – The target market for this formula will be children in grades K-12. This formula, containing Calcium, Vitamin D3, protein, and natural sweeteners will be marketed directly to school nutritionists/dieticians as a suitable alternative to milk. According to an article in the November 12, 2009 edition of the Chicago Tribune, there is a discussion playing out across the country as educators try to reconcile two concerns: childhood obesity and insufficient calcium and Vitamin D intake. According to the article, even some experts have trouble coming up with a satisfying answer. This product is the satisfying answer. 3) Women’s Formula – Designed to supplement nutritional requirements of women especially those of childbearing age. Our formulation will contain Calcium, Vitamin D3, and other vitamins and minerals important to women’s health. In addition, emerging research suggests the daily consumption of 1,000 IU of Vitamin D3 is associated with the support of breast health. A claim we can make in the marketing of our product. 4) General (Active Adult) Formula – A formula for the masses that contain low levels of Vitamin D3, Calcium, and other electrolytes. This formula is designed for the consumer to drink multiple bottles per day, hence the lower levels of vitamins and minerals. This formula will compete with the more mainstream â€Å"vitamin enhanced† water products and is targeted to replace the ever decreasing carbonated soft drink market. 5) Extreme Sports Formula – This product is designed for professional athletes and amateurs who participate in endurance sports or multiple bouts of intense exercise. The product contains Calcium and Vitamin D3 for stronger bones as well as increased amounts of electrolytes for more complete hydration. This formula is designed for the rigors of professional sports and can have variations for other professional sports endorsers. The target market consists of professional athletes and amateurs who participate in endurance sports or multiple bouts of intense exercise. We are designing an MV-7 formulation of the Extreme Sports formula for Michael Vick’s comeback to the NFL. This formulation is to be sold in markets where Michael Vick has a strong marketing and brand recognition presence. Additionally, we are in discussions with Pierre Thomas of the New Orleans Saints to come aboard as an endorser. Our future product offerings may include: 1) Winter Formula – This formulation will include higher levels of vitamin D for the winter months to address the lack of sunlight available in winter months. 2) Acai Berry Formula – Acai berries, found in the Amazon, are believed to have some very healthy qualities. Wal-Mart has recently entered the market for Acai Berry Juice and sold approximately $40 million worth of the juice within the first 90 days. 3) Baby Boomer’s Formula – A formulation designed for active adults who are ages 45 and older. The target demographic has a keen awareness of health related issues and an above average amount of disposable income. 4) Other Formulas – These can include energy drinks, other enhanced water formulations, natural juices, and alcohol based beverages. Container Design Because Vitamin D is sensitive to both light and oxygen (air), the traditional plastic bottle is not suitable for our formulation designs. We look at that being an added bonus because it forces us to use a newer, up-scale, and more hip package design – the aluminum bottle. The use of this packaging further differentiates our beverages from the typical bottled water and vitamin waters. An added advantage to using the aluminum bottle is the ability to added extremely artistic graphics to the outside of the packaging – adding even more product distinction – without the expense of a separate label. According to CCL Container, manufacturer of an aluminum bottle product, the aluminum bottle offers distinct advantages, including the ability of top-to-bottom shaping, chill-retention, re-sealability and durability. The use of the aluminum bottle has added significance over the plastic bottle as well when it comes to the environment. Because there are more â€Å"green† initiatives implement by both federal and local environmental concerns, it is important that product packaging is forward looking in terms of meeting any new environmental regulations. According to the Recycling Revolution web site (www.recycling-revolution.com/recycling-facts.html), these facts, among others, are worth considering about the use of aluminum for packaging: 1. A used aluminum can is recycled and back on the grocery shelf as a new can, in as little as 60 days – a process known a closed-loop recycling. 2. Because so many of them are recycled, aluminum cans account for less than 1% of the total U.S. waste stream – according to EPA estimates. 3. Americans use 2,500,000 plastic bottles every hour with most of them being thrown away. After considering product stability, costs, and environmental issues, we have concluded that the aluminum bottle is the perfect packing for our product design. 7. Trademarks, Patents, Copyrights, Licenses, Royalties We will seek trademark protection for all of our product brand names, designs, logos, and relevant phrases. In addition, we may patent some of our formulas and processes. However, we feel that keeping our formulations and processes a trade secret will offer better protection that securing a patent for the these items. We will review each situation on a case-by-case basis, in consultation with our legal team, as we make decisions on whether or not to pursue patent protection for any of our formulations or processes. 8. Government Approvals The United States Food and Drug Administration (FDA) regulates bottled water as a food product. The FDA has established specific rules for bottled water, including Standard of Identity Regulations that define different types of bottled water, and Standard of Quality Regulations that establish minimum levels for contaminant (microbial, chemical, and radiological). The FDA has also established Good Manufacturing Practices (cGMP) regulations for the processing and bottling of drinking water. These rules require that bottled water must be safe as well as processed, bottled, held and transported under sanitary conditions. Processing practices addressed in the cGMP regulations include protection of the water source from contamination, sanitation at the bottling facility, quality control to assure the bacteriological and chemical safety of source water, and sampling and testing of source water and the final product for microbiological, chemical, and radiological contaminants. Our bottling group will be required to maintain source approval and testing records in the event of any government inspection. Our bottling group may be subject to additional inspection by state and local licensing agency, health agencies, and/or environmental agencies. Procedures and protocols will be in place to ensure full compliance with all federal, state, and local rules and ordinances. In addition, all of our ingredients, including Vitamin D3, are on the FDA list of ingredients that are approved as GRAS (Generally Recognized as Safe). Consequently, no approvals are required for adding these ingredients to bottled water. However, there may some restrictions on how much can be added to the bottled water product. Our formulations will be well below those limits. 9. Product Liability We will purchase product liability insurance and/or an umbrella policy in addition to the product liability insurance coverage that is held by any of our suppliers. We are depending on our legal team to give us further guidance on the types and amounts of insurance we should obtain in order to protect the organization from any product liability or other claims. 10. Production All production will be performed by our subsidiary operating company Functional Foods & Beverages, Inc. In addition, we will qualify contract bottlers to ensure a continuum of production in the event our primary production facility is out of service or in the event we would need excess production capacity in order to meet unanticipated product demand. 11. Marketing Plan – Fortified Beverages â€Å"†¦beverage marketers will open new vistas for growth. Their size and growth opportunities will be different; their product positioning will be more specific.† – Michael Bellas (Beverage World) Three simple goals As we market our products and create brand awareness, we have three simple goals we look to accomplish: 1) Convert non-bottled water drinkers to enhanced bottled water drinkers, 2) Convert bottled water drinkers to enhanced bottled water drinkers, and 3) Convert others from competitor’s products. Our marketing plan is designed to efficiently accomplish these goals. A multi-prong approach We are devising a multi-prong approach to our marketing efforts. We will develop a sales force to create relationships and alliances with people and organizations of influence in our target markets. Figure 6. Marketing Plan [pic] Target Market – School Districts Across the Nation One of the first formulations the FBG will design and develop will be the Young G formulation. This formulation which contains Calcium, Vitamin D3, protein, and reduced sugars, is an excellent alternative to milk. Children need about 32 ounces of milk daily just to get the recommended allotment of vitamin D. It is difficult getting children to drink eight ounces of milk, let alone 32 ounces. Our Vitamin D3 fortified Young G formulation is the drink for them. Having no fat and fewer calories than 2% milk also makes this an attractive product to highlight in First Lady Michelle Obama’s new Childhood Obesity Initiative. The size of this market is enormous. If we count only the children receiving subsidized lunches in the school system, we have a market that is 31 million children strong in more than 100,000 schools. Target Market – Sports Fans We are very fortunate to have professional football player Michael Vick as a member of our founding group. Mr. Vick immediately saw the potential of our proposed formulations and did not hesitate to come on board. Another formulation in the stages of development is our MV-7 formulation. This formulation will be marketed as the drink developed for his return to the NFL. Having Mr. Vick on board establishes immediate brand recognition and credibility for our products. Currently, he is receiving tons of media attention every time he hiccups. This media attention is invaluable. For example, experts estimate that last year’s giveaway of free Grand Slam breakfasts by Denny’s generated roughly $50 million through free advertising. We look forward to cashing in on this media attention as well. Additionally, we are looking to sign additional celebrity endorsers from both the sports and entertainment arenas. We are currently in discussions with Pierre Thomas of the New Orleans Saints to bring him aboard as another celebrity endorser from the sports world. 12. Competition Profile There are numerous competitors in the market for enhanced water products. Even with numerous products on the market, new brands can be highly successful. It is a matter of carving out a position in the market where your product has the perception that it does something the others are not doing. As shown in Figure 6 below, there is no huge product distinction from the major functional water brands. Propel Fitness Water includes calcium for â€Å"stronger bones,† however Vitamin D is required in order for the human body to absorb calcium. While it may be obvious to consider our major competitors to be other â€Å"vitamin† water products, we beg to differ. We feel that our major competitors and target market would be those who drink milk or use some other form of Vitamin D fortified consumer product. These products include cereals, cereal bars, and yogurts. Because of extensive research into Vitamin D deficiency, these products can make specific claims on their labels – claims that the vitamin water products cannot make. Because our products are fortified with Vitamin D, we can make these same health claims. As a result, we can make this product stand well above the vitamin water products on the market. In the article Chocolate Milk Lovers Have a Cow About Bans, Chicago Tribune, November 12, 2009, it has been noted that children are not drinking white milk and that chocolate and strawberry milk products are too high in calories. The article goes on to express parents’ concerns that children are not getting enough Calcium because they are not drinking milk. The conclusion is that there is no suitable alternative to milk in the schools. We conclude then that milk is indeed our main competitor because we have designed the suitable alternative. Table 1. Competitive Comparison |Advantages |Drawbacks | |Milk | | |Well known source of Vitamin D & Calcium |Lactose intolerance in many individuals | |Source of Protein and essential fats |Not very portable – needs refrigeration | |Strong marketing campaign USDA subsidized in schools |Concerns about hormones | |$0.50 per 8 oz. serving |Flavors are high in calories | | |Limited shelf life | |Vitamin Waters | | |Brand recognition |Flavors are weak or medicine-like | |Large marketing budgets |No true â€Å"function† | |Moving towards healthier product lines |Product choices can be overwhelming | |Lower calories |Some have high sugar content | |Natural flavors |Not directly marketed to younger generation (target 18-35 year olds) | |$0.60 per 8 oz. serving | | |Functional Foods | | |Alternative sources of Vitamin D & Calcium |Some products are dairy ( lactose | |Contained in mainstream food items |Usually breakfast specific | |Some are portable |Some are not portable | |Brand recognition |Perishable | |Cost per serving varies | | |Aqua-D from the FBG, Inc | | |Designed as a great tasting, low calorie direct replacement for milk |No product history | |Vitamin D and Calcium containing alternative to more popular enhanced |Major competition from Coke and Pepsi Products | |waters e.g. Vitaminwater |Limited marketing budget | |Smaller bottles w/ lower price point (

Porter Argues That If a Firm Is to Attain Competitive Advantage

Porter argues that if a firm is to attain competitive advantage; it must choose between the types of competitive advantage it seeks, discuss using an industrial example? An industry can be defined as a group of companies offering products that are closely substituting for each other in order to satisfy customers. Competitive advantage can be defined as when a firm sustains profit which exceeds the company’s average; it automatically possesses competitive advantage over rivals. The business strategy for most companies is to achieve a sustainable competitive advantage.This essay aims to discuss why firms must choose between types of competitive advantages using an industrial example. Michael Porter indentified that there are 2 basic types of competitive advantage, cost advantage and differentiation advantage. A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower price (Cost Advantage) or deliver benefits that exceed those of the competitors (Differentiation). Thus, the firm creates superior value and products for customers whilst it gains superior profit for the company.A resource based view emphasizes that a firm utilizes its resources and capabilities to create a competitive advantage that results in creating superior value thus the firm must have resources and capabilities that are superior to those of the competitors. Resources are the firm specific assets used for creating either a cost advantage or differentiation advantage, examples of resources are brand equity, reputation, installed customer base. While, capabilities refer to the firm’s ability of utilizing its resources, an example is the ability to bring out a product or market before competitors.Thus, the resources and capabilities together result in distinctive competencies which allow innovation, efficiency, creativity, quality and customer responsiveness which can be leveraged to create cost advantage or differentiation. Essent ially, a firm’s relative position within its industry determines whether its profitability stands above or below industry average. Porter states that there are 2 types of competitive advantage a firm can possess as mentioned above however , there are 3 generic strategies for achieving competitive advantage in an industry; cost advantage/leadership, differentiation and focus.The first type of competitive advantage is cost advantage /leadership, it is when a firm becomes low cost producer in its industry. It minimizes the cost to the organization of delivering products and services. According to Porter (1985) , there are two ways of achieving cost leadership either by increasing profit by reducing costs while charging the average price. Or by increasing market share through charging lower prices while still achieving a reasonable profit on each sale because your cost has been reduced.Furthermore, companies that are successful in achieving cost leadership usually have an access to the capital needed to invest in technology which helps reduce the cost. Also, they have very efficient logistics and a low cost base such as labor, materials and facilities (Ibid, 1985). Essentially, if a firm can achieve and maintain cost leadership, it can obtain above average performance whilst the prices are still affordable in that industry. Hence, the cost leader does not try to be the industry innovator, it seeks to position its products to appeal to the average customer taste.The aimed goal is to increase efficiency and lower its costs in relation to competitors. Some of the advantages of the cost leadership strategies are it is protected by industry competitors by cost advantage, purchases in large quantities which increases bargaining power over supplier. Also, it has the ability to reduce price to compete with substitute products, less affected by a fall in the price of inputs as it has powerful buyers. Some of the disadvantages are competitors may lower their cost str ucture, they may imitate the cost leaders method and cost reductions may affect demand.Furthermore, Porter argues that a low cost position acts to a firm’s benefit against rivalry, and it can act as a defense against powerful suppliers by providing more flexibility to cope with input increases. The car industry has always been one of the most competitive industries because of the huge revenues and profits available at stake. The competition has increased drastically in this industry as there has been a constant need to continuously develop new kinds of car models to satisfy the needs of particular groups of buyers.For example, Toyota has used its low cost structure to produce efficient and increasing ranges of vehicles tailored to different segments of the car industry. Its ability to move from the design to production stage in two to three years gives it the benefit of bringing out new models faster than its competitors and capitalize on the development of new market segment s or niches. Also, Toyota has been a leader in positioning its range of vehicles to take advantage of emerging market segments.For example , in the sports utility segment, it offers six models of sports utility vehicles each offering a combination of price, size, performance, styling and luxury that appeals to different sets of buyers. The second type of competitive advantage addressed by Porter is differentiation. As opposed to cost leadership approach, differentiation does not seek to lower prices in order to gain competitive advantage. Porter states that by using differentiation approach, a firm seeks to be unique in its industry alongside some attributes that are greatly valued by buyers.An industry selects few attributes that most buyers in an industry perceive as vital and aims to uniquely present and position itself to meet those needs. Differentiation approach is usually rewarded for its uniqueness with a premium price and to make a successful generic strategy, organizations need to have good research, development and innovation. They need to have the ability to deliver high quality products and services and have an effective sales and marketing team in order to understand the market demands.Usually, companies that follow differentiation strategies create a product that is distinct for its competitors in an important way. Therefore, a differentiator strives to differentiate itself in as many dimensions as it can, it seeks to segment the market in many niches , and it focuses on the organizational functions that provide a source of distinct advantages. According to Porter, there are several sources of product differentiation that a firm must look at.Firstly, firms should focus on the product and highlight which features they want to change, how complex they want the product to be, when they would like to introduce the product and the location. Secondly, firms should focus on their relationship with the customer, product customization, and consumer marke ting and product reputation. Lastly, firms should focus on linkages within and between firms, linkages among functions within a firm, linkages with other firms, product mix , distribution channel and service and support. Some of the advantages of differentiation strategy are customers develop brand loyalty.Also, differentiators could pass price increases onto customers, powerful buyers are not a problem because the product is distinct and differentiation and brand loyalty are barriers to entry. Some of the disadvantages of differentiation strategies are difficulties maintaining long term distinctiveness in consumer’s eyes, competitors can quickly imitate and difficulty maintaining premium price. For example, American Express carefully differentiated its product using famous people to advertise the virtues, exclusivity, and distinctness of possessing those cards.Amex cards were premium products that allowed the company to charge both customers and merchants more because it off ered quality service and conferred status on the user. By 2002, it offered 9 kinds of charge cards and 14 kinds of credit cards seeking to expand the market reach. The third strategy Porter mentions is the focus strategy which concentrates on particular niche markets and tries to understand the dynamics of that particular market. Alongside, the unique needs of customers in those markets, it seeks to develop low cost and well specified products for the market.Usually, it results in strong brand loyalty amongst customers which makes their market segment less attractive to competitors. Focus strategy usually combines with either cost leadership or differentiation as it is not enough on its own. In addition, the focuser strives to serve the need of a targeted niche market segment where it has either a low cost or differentiated competitive advantage. In cost focus, a firm seeks cost advantage as its target segment. In differentiation focus, firms choose differentiation as their main app roach.Some of the advantages of focus strategy is the focuser is protected from rivals by providing a product or service that they cannot offer, the focuser has power over buyers because they cannot get the same service from anywhere else. Also, the threat of new entrants is limited by customer loyalty to the brand and customer loyalty lessens the threat from substitutes. Some of the disadvantages of focus strategies are differentiators will compete for a focuser’s niche and the focuser’s niche may disappear because of technological change or changes in customer’s tastes.

The Rights Of The People - 927 Words

The Rights of the People The gay couple, David Ermold and David Moore, in Morehead, Kentucky, walked into a county clerk’s office to receive a marriage license. In June, the Supreme Court legalized same-sex marriage and ordered that such licenses be distributed. All though, even with this order, County Clerk Kim Davis refused to issue any and all marriage licenses to any and everybody. In addition, Davis claimed to be of Apostolic Christian faith and giving out gay marriage licenses went against her faith. This matter was then taken to court where Judge David L. Bunning incarcerated her when she rejected the alternative of giving out the licenses. While the couple exercised their 9th Amendment rights, Davis was shown to be using her 1st Amendment rights given to her all the same. But like rules, there are loopholes where those rules can be bent or altered. As expected, this case birthed controversy in which the people took sides in who was in the right. Everyone is given right s until they prove to not be trusted with them. When David Ermold and David Moore was denied their rights they took Kim Davis to court to have her fined; and rightfully so. Both the Kentucky law and 9th amendment had been violated. The Supreme Court’s landmark ruling in June legalized same-sex marriage and ordered the issue of same-sex marriage licenses (Blinder Perez-Pena, 2015). But in order satisfy the plaintiff, Judge Bunning sentenced her to time in jail in hopes she would change her mind. AllShow MoreRelatedThe Rights Of Indigenous People934 Words   |  4 Pages The UN Declaration on the Rights of Indigenous Peoples formally recognizes the right to give or withhold consent for industrial projects on traditional lands. 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