SOS Beer Co. - University of Connecticut

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Dec 10, 2013 (3 years and 10 months ago)

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Business Plan

Website:

Email:

ibodyxersize@gmail.com


Phone:

1
-
800
-
4UR
-
BODY





Ryan Stein

John Paulovicks

OPIM 3507

Professor Dowding

Spring 2012


Table of Contents



I.

Overview

Mission Statement

Company Description

The Market

Market Expansion

Market Characteristics Creating a Need

Demand for Our Service

Prospective Customers


II.

Target Markets

Market Size

Key Segments

Value Proposition


III.

Competitive Positioning

Barriers to Adoption

Competition


IV.

Management Team

Company Executives


V.

Product Development

Development Status

Development Timeline







VI.

Business Strategy

Company History

Differentiating Factors



VII.

Marketing
and Sales

Marketing

Sales

Support


VIII.

Financials

Source of Capital

Projected
Financials


IX.

Design Plan

Style Guide

Technical Specifications


X.

Test Plan

Consumer Testing

Business
Testing


XI.

Marketing Plan

Website Marketing Strategy

Online Sales Strategy

Channel Management

Brand Management

Customer Relationship Management








OVERVIEW

Mission Statement

Our mission at iBody is to make fitness and nutrition planning easily accessible in a client’s
home, office, or on the go
using technology as a medium to provide our services.
We
believe

that
a healthy body is the foundation of a happy life, providing energy, self
-
esteem, stress relief,
increased immunity, and longevity to those that acquire the skills
offered in

our

comprehensive

services.

Company Description

iBody is an e
-
business that provides both fitness and
nutrition

planning services using interactive
technology
(video chatting) on a home PC, tablet, or mobile device. Our website will be used as
the interface for connecting licensed nutritionist
s

and

cert
ified

personal trainers

with clients of
our business. Clients will be able to access our services from anywhere making our services
both
convenient and accessible from anywhere in the country.
We will contract directly with these
professionals using a rigo
rous screening process so that customers can feel confident they are
working with a top notch industry expert. Additionally, with no physical facility
or large

overhead we can pass the savings on to our clients offering a cost effective solution.
We strive

to
provide comprehensive plans tailored to the individual’s unique goals and needs. There are many
misconceptions about how to achieve good nutrition and
fitness;

we seek to eliminate
misunderstandings taking the guess work and significant wasted time out

of creating a
client’s

iBody.
The
key to a fit and healthy body is combining professional
advice and planning

of
nutrition and fitness, the
combination is

essential.

iBody’s training methods are based on various
techniques that utilize tension cables, sm
all weights, and other equipment which is both
inexpensive and portable. Our goal is to allow someone to achieve their goals from the comfort
of their home.

The Market

The health and fitness market is a growing industry in the United States. The media is

largely
responsible for spreading large scale awareness about the
need to
eat healthy and exercise
regularly.
The sub
-
category of online training and nutrition is a category that is still in infancy
and we are arriving at an ideal time to exploit market
opportunity. Although many resources
exist online that provide information and generic training information, there are very few
services that provide the type of customized planning we offer.




Market Expansion

The fitness industry is far from maturity and will be expanding significantly in the next decade.
With an aging population of baby boomers there will be a growing demands for both health and
fitness solutions that are easily accessible. Technology is also
becoming more prevalent among
this segment of the population as people become more comfortable using technology for
everything from shopping to banking. Growing awareness of the benefits of exercise and proper
nutrition will also push people to look for so
lutions to become healthier. Technology will allow
for a service that previously was conducted in a gym or health facility to be performed through
interactive

medium
. The market for services over the internet is a new market with significant
growth potenti
al.

Demand for Our Service

The demand for our services stems from a population that tends to
be busier than past
generations. J
am packed schedules call for ways of accessing health and fitness solutions that are
more convenient and can be accessible from
anywh
ere. Also, technology is infiltrating many
aspects of society; people conduct their shopping online and attend business meetings using
video chatting. As a population more and more of people’s daily activities are shifting towards
online providers of
what traditionally were brick and mortar services. At iBody we want to
capitalize on a largely untapped venue for creating customized solutions for people that want to
obtain these services from the comfort of their home, office or on the go.

US citizens a
re looking
more and more to holistic solutions to common health problems as an alternative to medicinal
approaches. Offering services in a form that can be accessed from home allows people who
otherwise wouldn’t seek out these services another option.

Mar
ket Characteristics

Currently personal training is offered is several formats for customers. In the US there are two
main types of health clubs, higher end and budget. An example of a higher end club would be
New York Sports Clubs

or Cross Fit and a budget

type club is something like Planet Fitness or
The Fitness Edge. In both types of clubs training services are offered in both a group setting and
in 1 on 1 session. Nutritionists are generally not available to customers in a budget type gym and
can be acce
ssible at a few higher end clubs in the country. Generally, nutrition planning services
by a licensed professional are offered in a more traditional healthcare setting such as a medical
office
. The ability to access these services through the internet is r
are and the combination of the
two services in one location
is even rarer.



Prospective Customers

We will target both individual and corporate customers. When seeking to reach individuals our
main focus will be on people that haven’t used traditional
formats of nutrition or personal
training for a specific reason that our services offer a solution for. An exam
ple would be
someone that is too

shy to

use

a gym because of the very public nature and lack of privacy that
exists.
Many reasons exist why peopl
e just don’t feel comfortable using traditional
methods;

we
seek to offer an alternative for these people. Another indivi
dual customer type that we
seek to
appeal to is the busy individual who sees a significant value in the ability to obtain these service
s
outside of the gym or medical office setting. Corporate customers can be an extremely
valuable

opportunity for iBody. Many companies are promoting health and wellness as part of corporate
culture. Obtaining corporate accounts that offer our services to t
heir employees at their expense
or a deep discount will be a great way to extend our brand beyond the individual online
consumer.


TARGET MARKETS

Market Size

In 2012, (IHRSA) reported that revenue at U.S. commercial health clubs reached $21.4 billion
and

memberships totaled 51.4 million in 2011.

This gives a gauge of the scale of the industry,
which as a whole is growing and we feel there are significant benefits to being a first mover in
the interactive arena of health and fitness services. Due to the relative infancy of fitness and
nutrition se
rvices provided over the internet there is no reliable data available on the current size
of this market segment. However, as history has shown with the advent of retailers and services
such as Amazon and Netflix which provide traditionally brick and morta
r services we can
comfortably state that through our marketing research the concept is extremely viable. Due to
our interactive approach which can potentially offer
seamless

coverage of our services in the US
there is practically an unlimited growth and ea
rnings potential. Successful marketing is the key
to converting users of traditional fitness club or medical office services and also for generating
clients who are not currently using either service in their traditional setting.

Key Segments

We have a
wide target audience due to the nature of our services, fitness and nutrition should be
desirable aspects of any age group or demographics lifestyle. However, there are specific reasons
why our services are advantageous for certain groups. Listed below are

brief descriptions of our
main target segments that we feel will need to special attention including focused advertising so
that we may capitalize on our market potential.


Young Adults

This is an essential target because this is where we can develop cust
omers for life. This is the
ideal time for someone to begin taking nutrition and fitness seriously. As young adults get ready
for the challenges of college or
work life

they can greatly benefit from the energy and positive
self
-
esteem

that one can gain fro
m our programs. Building a foundation of good habits at a
young age is what we strive to provide this segment, allowing them to have a healthy and fruitful
life.

Busy Professionals

The demands on individual who is building a
career

and trying to define themselves in a
corporate role or in their own business often leads to a lack of time to take care of their body.
The str
ess and responsibility can make it difficult to balance work and life. By offering a service
that can be
accessed

from home or the office we can appeal to people with limited time. Also, the
easy
techniques

we employ in our training programs are something someone can do on their
lunch break or after a 10 hour day and commute home. Our nutrition programs will also pro
vide
the energy to feel ready to meet any challenge.

Stay at Home
Parents

Similar to busy
professionals

stay at home parents are often juggling many responsibilities. Meal
time, appointments, activities and managing finances and household choirs can make i
t difficult
to find the time or the ability to get away to a gym to exercise. Our workouts are simple enough
that they can be done while the ba
by is taking a nap or while the children

are at a play date.
Again the goal is convenience and accessibility.

Ba
by Boomers

This is a growing segment of the population. Often these people have grown children and are
either at the end of their careers or in early retirement. Although they may have time, the
atmosphere of a gym or medical office may not be appealing f
or this group. We want to provide
an alternative option. This group is generally relatively proficient with technology so this should
not be a barrier to adoption for the majority of the group.

Seniors

Generally this group is more comfortable at home and may not be interested in attending a gym
filled with 20 year olds as it can be intimidating. A barrier to adoption amongst this group can be
a lack of proficiency with technology, which is why we have de
signed our user interface to be
extremely easy to use. In addition we will provide video tutorials to assist this group with the
technology. We hope to make these services available to people who are either uncomfortable in
traditional settings or who may
have limited mobility.

Value Proposition

Our services provide an easy, effective, and accessible fitness and nutrition solution
for the client
seeking a unique option that is significantly more convenient

than traditional methods, utilizing

v
ideo
chatting over the internet.


Motto: “Get a health iBody from the comfort of home”


COMPETITIVE POSITIONING

Barriers to Adoption

The biggest barriers to adoption are getting the customers and the trainers and nutritionist on
board with the new technology a
nd trying to
differentiate

ourselves from current people on the
market. There are already websites doing this style of online only interaction with people about
personal training and nutrition, but many of these sits are trainer specific meaning that you
can
only work with one trainer since it is their site. We are looking to differentiate from that by
bringing together all the trainers and
nutritionist
together under one site, so that if a customer
doesn’t like one style the barrier of switching to anoth
er trainer/nutritionist will be much lower.

Competition

Important competitors are gyms with physical locations like gold’s gym, planet fitness, edge
fitness to name a few, they have the strength of having a brick and mortar presences that the
customer
can visit and us their equipment.


With that though they also have the weakness of
higher overhead for maintaining the building and equipment, also it is the only place that a
customer can do their workouts.


Another weakness is they have a limit customer
base since they
can only realistically get customers within a 20 mile radius of their facility.


Another competitor is the website http://www.myhomepersonaltrainer.com they have many
similar options to us allowing you to find certified trainers in your are
a and allow you to
communicate through the web with them, however they don't allow for video conferencing with
the trainer through their site, also they seem to match you only to a local trainer not allowing you
to go out and finding the person best for yo
u anywhere and allowing you to work with them
virtual.




MANAGEMENT TEAM

Executives


Ryan Stein is the CEO and director of marketing for iBody. He studied Business and Technology
at the University of Connecticut, and also completed a focus in marketing a
nd finance. He has an
extensive understanding of operations and e
-
commerce from his studies under the renowned
Professor Timothy Dowding. In addition, with the training in consumer behavior, advertising,
marketing research and professional sales under acad
emic innovator Professor Kevin Mcevoy
Ryan is well equipped to handle the marketing challenges of launching iBody. Ryan has sales
experience spanning many industries, including financial services, automotive, and
telecommunications. As a seasoned sales pro
fessional iBody can count on Ryan’s ability to
negotiate and close deals when seeking new business and advertising support.

John Paulovicks is the CFO and CTO for iBody.


He studied Business and Technology at the
University of Connecticut.


He has worked
in the internet industry for the last 5 years at one of
the 10 largest internet service providers in the US.


His analytical skills have made him one of
the top techs in his department.


He also spent 2 years doing resource management, which gave
him a str
ong understanding of managing staffing to fit in a budget making sure staff breaks were
properly balance to prevent any gaps in service and overtime was filled when there were gaps or
extra time off was given when there was a surplus.


PRODUCT DEVELOPMENT

Development Status

Currently iBody is still in the concept stage; while the frame work has been laid out much of the
work to get a functional site working is still being looked into. The biggest thing still being
looked into is the video chat client; the
re are many of them out there to choose from like Cisco
webex, Citrix gotomeetings and some smaller companies like Sight Speed. Also still being
created is an iPhone and android app, which will be used as another possible source to connect
with your perso
nal trainer and nutritionist. The app will also contain a calorie counter and
fitness guide so your training schedule will be able to go with you anywhere. The app would be
a free service for anyone to use.




Development Timeline

Weeks

2

4

6

8

10

12

14

16

18

20

22

Industry
Analysis























Website





















Marketing























Advertising























Website Testing























Launch
























BUSINESS STRATEGY

Company History

iBody is the brain child of Ryan Stein and John Paulovicks it was though up and designed
around the idea that fitness training doesn’t have to be done in a gym or even in person. With
the popularity of the internet and increase of the speed of the interne
t now is the time to make
fitness training possible through video chatting.

Creating Competitive Advantage

Differentiation will be the best way to creating a competitive advantage. Most sites that allow
for interactive personal training only allow you
to work with the trainer that is featured on the
site or a small group of trainers to choose from. With our site we look to make it easier for the
trainer to create his own page within our site so they don’t have to create their own site, and have
the hea
dache or cost of managing it. This feature will allow us to create a large data base of
personal trainers, which will in turn make it hard for other sites to copy and compete since they
will have to work to build up their own data base.





MARKETING AN
SALES

Marketing

Due to our lack of a storefront and the fact that we are
solely

e
-
business marketing is essential
for our success. We need to utilize several forms of marketing/advertising to develop a brand
image and to generate sales.
Our approach of us
ing
purely

technological medium to conduct our
services is an extremely important characteristic that we need to keep in mind when creating a
marketing strategy. We will rely heavily on newer advertising methods to create hype for iBody.
Since our company
is its early stages we have a limited
advertising budget. As a result, social
media will be one of our main focuses. Advertising on Facebook or twitter are options we feel
can have an extremely high ROI for our business model. We also feel that cross marke
ting can
play an integral role in garnering recognition using already established brands. Working with a
company like GNC can have great benefits. We will rely heavily on Ryan Stein’s expertise to
develop cross marketing relationships. We are planning to s
ell limited advertising space on our
website to a company that provides products such as whey protein and supplements. A company
like GNC is a prospective established company we can approach about selling

advertising space,

our non
-
competing and parallel i
n nature so they make a good partnership. We also plan to sell
iBody branded merchandise through our website which will promote free advertising.
Lastly, we
feel strongly that the quality and innovative appeal of our services will naturally create
signific
ant word of mouth advertising.

SEO

Let’s face it if your site isn’t listed on the first two pages of Google at minimum your website
will struggle to produce any type of business, and since we are doing an online only venture a
big
emphasis

needs to be placed on getting to the top of Google’s search engine so that people
will be able to see us. The way to accomplish that is through Search Engine Optimization (SEO)
we are going to incorporate many different things into getting the SEO result
s we are looking
for, we will aggressively go after climbing the rankings for such keywords as “fitness”,
“interactive fitness”, “online fitness”. The first thing that needs to be done for this is to layout
the site with these keywords in title pages, and

also throughout the links even throughout the
URLs. Next is to link pages back and forth so that it is easy to go from one page to another to
generate traffic for the site. Now comes the most important piece of our SEO strategy the use of
Social media,
since we will have a large base of trainers and nutritionist we would either require
or strongly recommend each one of them setup a Facebook page as well as a twitter account,
which will easily be linked back to their page on our site giving us a large gro
up of people
linking to our site which will also increase traffic moving us up farther on the SEO rankings.



Sales

We will take advantage of being a first mover in providing a combination of
fit
ness

and nutrition
services to our clients to create signifi
cant
switching

costs.
When a client becomes comfort
able
with
our service and a particular individual trainer or nutritionist they are working with there will
be little incentive to switch to a new comer competitor. We need to consider things like referral
coupons and other incentives to retain loyal customers. Our business model is focused around
selling a package deal. We will begin with providing an assessment, then provide a solution, and
provide monitoring along the way so that modifications can be made

when necessary.
As
mentioned before we will be trying to capture business from people using existing traditional
methods and also strongly focus on people who are currently using neither service in a traditional
format. Once we develop a brand we also fee
l that we can take advantage of our brand loyalty
through merchandising conducted on our website.

Support

Since we are using technology there may be times when people have difficulty using our
interface or may just have questions that they need answered
before committing to a package
purchase. We will provide tutorials online and also a toll free number where prospective or
existing clients can contact us 24 hours a day and speak to a US based representative to have
their questions answered. The represent
atives will be able to explain all our service options and
enroll a prospective client in our services over the telephone including taking payment.


FINANCIALS

Source

of Capital

Start
-
up costs

Additional Web development

$10,000

Advertising

$10,000

Training

$5,000

3
rd

party video conferencing company

$5,000



Total

$30,000


Since startup costs are relatively low for a business we would try to attract small investors to
back the venture. If we were unable to secure funds from a venture capital
group the alternative
would be a small business loan from a bank.


Cash Flow


The main source of income will come from commissions off personal trainers and
nutritionist
.
Each trainer/nutritionist will provide a price for their services and from that pric
e we would take
a small commission of 10%. Also sales of items like t
-
shirts, water bottles personal training
equipment through the iBody store will generate revenue as well. Advertisement will also add
revenue to the company.


Projected Financials


Year

1

Year 2

Year 3

Customer base chat
sessions

20,000

40,000

60,000

Year over increase


50%

25%

Revenue streams




Chat Commission

$90,000

$180,000

$270,000

Merchandise

$10,000

$15,000

$20,000

Ads

$5,000

$5,000

$5,000

Gross Profit

$105,000

$200,000

$295,000

Expenses




Chat sessions

$5,000

$10,000

$15,000

Website development

$10,000

$10,000

$20,000

Marketing

$20,000

$30,000

$40,000

Advertising

$50,000

$70,000

$70,000





EBITDA

$85,000

$120,000

$145,000

Cash Flow

$20,000

$80,000

$150,000





Cumulative

$20,000

$100,000

$250,000


Chats

Commission


The base for the chat commission is the average fee for a personal trainer is
$30 for an hour session having only 50 trainers to start with on the site most of them would only
average 10 session
s a week and would only work 40 weeks out of the year. So with a
commission of 15% we would take in $90,000 the first year on the chat commissions.

Merchandise
-

We would also be selling the equipment need for the workouts from the website
we would buy
the equipment at bulk pricing then resell it at retail.

Ads
-

We would allow advertising on our website from other companies through banner ads. We
would hold the standard rate for a small site of .50 cents per 1,000 impressions. We would also
follow the

average that each browsing session would be 5 pages; we would only need 5,000
people going through the site per day.

Chat Sessions


based on the number of 20,000 chat sessions a year then that would only be 55
chat sessions a day average going to a compa
ny like Citrix to manage the video sessions they
offer up to 500 simultaneous chat sessions for $5,000 a year.

Web Development


Over the course of the year we would bring in website developing
contractors to manage and make sure site stays fully up to dat
e.

Marketing


We will also need to budget in the big marketing plan with the SEO push to get
higher on search engines keywords list.

Advertising


Using things like Google ad words and their premium service to push up site
views.


DESIGN PLANS

Wire Frame



Home Page

Our Philosohily

Mission
Statement

Nutritionist

Listing of
Nutritionist

Store

Shopping for
iBody Gear

Mobile

Layout of
Mobile app

Contact Us

Email Phone
contact
information

Personal
Trainer

Listing of
Personal
Trainers

Site Page


Navigation Design




Navigation within the site will be simple and consistent



The site will follow the three
-
click rule

for website design
.



Top Bar

“Home”, “
Our Philosophy”, “Nutrition Plans
”, “
Personal Training
”, “
iBody
Store

, “iBody

Mobile” and “Contact
” will appear on every page of the site.



A s
im
ple click of the iBody logo

will take you b
ack to the Homepage
.


Technical Specifications

Web browsing



Works with any type of Microsoft Software and Macintosh



MS Internet Explorer 7.0 or a
bove, Mozilla Firefox 2.5 or above,



Apple Safari and Google Chrome


V
ideo chatting

For PC
-
based participants:



Internet Explorer
®

7.0, Mozilla
®

Firefox
®

3.0, Google


Chrome


5.0 (JavaScript


and
Java


enabled) or the latest version of each web browser



Windows
®

7, Vista, XP or 2003 Server



Cable modem, DSL, or better Internet connection



Dual
-
core 2.4GHz CPU or faster with 2GB of RAM (recommended)

For Mac
-
based participants:



Safari


3.0, Firefox
®

3.0, Google


Chrome


5.0 (JavaScript


and Java


enabled) or
the
latest version of each web browser



Mac OS
®

X 10.5


Leopard
®

or newer



Intel processor (1GB of RAM or better recommended)



Cable modem, DSL, or better Internet connection

Participants wishing to connect to audio using VoIP will need a fast Internet
connection, a
microphone and speakers.

(A USB headset is recommended.

TEST PLAN

Consumer Testing


Design/Interface Testing



The Design of the website will be created by us. The final testing and decisions about
the site will come down to us.


Navigation T
esting



Testers will be assigned specific pages and asked to click through on specific links
writing down where the link leads. And any suggestions to improve the website


Usability Testing



A preliminary launch of the site will be done with select beta
testers that will go
through and make sure it is easy and quick to operate the site.




Business Testing


Content Testing



Checking content to make sure it is clear and focused as it can be.



Check to make sure the website is working correctly and the
context is

free of
grammatical and other errors
.


Functional Testing



Testing to make sure pages load properly and loads in a timely manner.


Stress Testing




Since we are running video chat sessions from the site it will be important to run a
rigorous str
ess test on the site, to check and see how much bandwidth is being utilized
to see if an increase is needed. Monitoring would need to be done to check for peak
usage so planning for necessary bandwidth can be made.




MARKETING PLAN

Website Marketing
Strategy


Our website is the bread and butter of our business, since all our revenues will be
generated through sales of services provided via the website. The site is designed
to be appealing to the eye so that it captures attention. The about us page wil
l serve
as a way to educate users on our unique
philosophy

to
comprehensive

health and
wellbeing. Users will be able to read brief d
escriptions of our services and
peruse

listings of licensed/certified professionals with a picture and bio, the goal is to k
eep
it simple for users to navigate. We want to position our site to promote a new
approach to traditional fitness and
nutrition

methods. As a first mover in the
industry we want to create
strong

brand recognition and our website needs to be
our main marke
ting tool so the
ascetics

of the site are very
important
.
We will be
using banner advertising on the footer of our webpage and will be working with
GNC to generate hits via cross marketing on their website.


Online Sales Strategy


The majority of our
sales will be processed online wi
th the exception of the
few
sales that

occur over the phone for users that may conta
ct our 24 hour customer
service
with additional questions. The goal is to provide the user a simple int
erface
to select

the professional of

their choice and checkout as quickly as possible so that

they can begin enjoying the benefits of our services.



Channel Management


Our website is our only channel with us offering support for users via telephone.
Our toll free number is intended to
support our online channel not to be a sales
channel in and of itself. Due to our
exclusive

online offerings there will be no
channel conflict to deal with.



Brand Management


Creating a strong brand image is important; we will be an early mover in this
segment of the industry. As a result we feel that our selection of our company
name will play a pivotal role in our branding. Combining the i which stands for
interactive or internet and the word body will create strong resonance for users and
will help us

in branding through merchandising and our mobile app. The nature of
our service will help to preserve our brand and help to prevent substitution. By
preempting this market segment we will capture market share and create switching
costs by providing a pro
fessional someone has spent time working with and
building a trusting relationship. We feel that our app and merchandise will be
important in making our site sticky for customers and prevent us from losing
business to prospective competitors.




Customer

Relationship Management


Due to our lack of a physical storefront CRM will be extremely important to
customer retention. We have created a toll free support line that can assist
customers with any issues that may arise and also to complete the enrollment
processes and take payment

if necessary. The support line will be open 24 hours so
that a customer will always have someone available to assist them. In addition,
customers can contact us via email if they do not need an immediate response. We
also feel that our free mobile app whi
ch allows customers to track so many aspects
of their health and fitness journey will be an invaluable resource in developing a
relationship with our customers.