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eTrainer | Interactive Virtual Fitness Center

Strategic Marketing Plan

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


eTrainer | Interactive Virtual Fitness Center program will allow gym users the

will provide customized workout

flexibility to attend classes

plans, a fitness calendar and online

throughout the day rather than at

competition and support from peers.

particular scheduled times by re-

Our nutritional programs are

running previously recorded classes

designed to help members develop a

in the gym studios and allowing

healthier diet and achieve their

eTranier is an interactive virtual

online users access to these videos

weight loss goals. Detailed workout

fitness center which allows

outside of the gym setting.

stats can be viewed under members’

Company Description:

personal profiles. Some of the virtual

individuals to achieve their total health and fitness objectives by engaging in their areas of interest via a smartphone, webcast or online access. eTrainer is dedicated to personal health and fitness. Our goal is to assist individuals in becoming more fit, while offering lower costs than physical gyms or personal trainers through innovative wellness programs and strategies. The

eTrainer is a new, cutting edge application and online fitness support. Members can access their accounts at their leisure through their smartphones and by logging on to www.eTrainer.com. eTrainer’s 24-hr

classes include: Yoga, Zumba Fitness, Spinning/Cycling, Kickboxing, Boot Camp and many more exhilarating classes. eTrainer is available on any iOS, Android and BlackBerry and also via Internet browser.

online support provides members with virtual trainers and life coaches who will help them stay motivated from start to finish. The virtual trainer

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


Mission Statement:

Marketing Objectives:

Our mission at eTrainer is to enhance

The marketing objective is to

the quality of life of every person,

establish eTrainer as the leader in

through our innovative fitness

virtual, holistic health and fitness

philosophy, programs, and products

programs. We plan to accomplish this

which instill the value of health and

by staying ahead of industry trends

fitness, into the lives of people

and providing consumers with their

everywhere. We strive to restore

ultimate objective, “Real Results that

balance and preservation, creating

fit into a busy lifestyle!”

more than 42.8 million by 2011. Due to the increased demand for fitness

beautiful bodies in a busy world.

Situation Analysis:

activities, the industry has capitalized on the growth by expanding establishments in both size and number. While the industry did see a bit of a down fall in 2008 and 2009 due to consumer cut backs, there is a predicted increase for an overall market value of $28.2 billion dollars by 2016. Because of this prediction, clubs have had to broaden their

Industry Analysis:

gym-goers in a bid to retain existing

“Put your life in motion with eTrainer - the new virtual fitness application.”

market and offer special value to

The Gym, Health and Fitness Clubs

memberships as well as bring in new

Industries have benefited from a

business. eTrainer offers a unique

large variety of marketing campaigns

twist on the brick and mortar gym

that focus on improving health and

experience as well as the at home

fighting obesity. In the past 10 years,

work out experience, that will appeal

gym membership numbers have

to consumers for both small and large

increased from 36.3 million in 2002 to

operations.

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


Market Trends:  Industry growth due to promotion of legislation and exercise incentives.  Specified programming for baby

Competitors:

regular people who meet their workout needs rather than working

eTrainer’s competition includes two

out with fitness models and celebrity

other online gym concepts currently

trainers they cannot relate to.

 Social aspect of exercise

in the market, exercise DVD videos,

eTrainer brings the true gym

 Small group or one-one-one personal

on demand cable work out videos,

experience into the consumer’s

and smartphone applications. While

home.

boomers and youth ages 18 and under

training  incorporation of technology to motivate and help track consumer workouts  convenient fitness options such as 24hour locations and shorter, higher intensity work outs  Staple workout activities and equipment such as free weights, treadmills, stretching and yoga

this is a lot of competition there are certain aspects of eTrainer that make it standing out ahead of its competitors. For instance, eTrainer will house aerobics classes in an actual gym environment. The user will be able to feed off the energy of a real live or pre-recorded aerobics class and instructor. Currently, all competitors simply have one instructor with a few assistants. There is no real normalcy to the environment. eTrainer users will benefit from working out with

When purchasing DVDs or watching workouts on demand, the consumer does not have a variety of options, unless they plan on spending thousands of dollars on a library full of DVDs. By offering a variety of classes and fitness levels, the eTrainer concept is in line with the two other companies’ on the market. However, eTrainer will stand out in the market place by offering competitive pricing, flexible routine schedules, online health tips, a 24-hour chat room with

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


access to health and fitness

over 900 million active users.

the world who cannot justify

professionals, customized workout

Tapping into social media networks is

spending $40-$50 a month on a gym

plans and the fact that it is based

a smart way to create brand

membership fee.

here in the US. Unlike the

awareness. According to the Nielsen

competitors, eTrainer is also a

Company survey, people throughout

concept that will be introduced in

the world spend 110 Billion minutes

addition to an existing gym

on social networks and blog sites.

membership. As part of the regular

That is roughly 22% of their time.

fee, gym goers will have access to the online library of classes if they prefer to work out at home, if they plan to visit the gym, they can also take classes on their own schedule while using equipment at their gym and a pre-recorded class.

The United States is the largest country in total number of health clubs. Australia and Brazil are also at the top and have seen revenue increases up to 5% since 2011. Unfortunately, Europe’s economy struggles and has seen a decline 2%

Online and fitness industry:

over the last few years. The online gym concept is a positive option for

About 1 million people join health

those who struggle paying for pricey

clubs every year. That still leaves 90%

gym memberships. eTrainer is an

of the population that has yet to join

accessible solution for clients around

a club. As of May 2012, Facebook has

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


SWOT ANALYSIS Competitor- SWOT analysis: Strengths:  

     

Franchisee opportunities Live interactive classes = direct contact with trainer and instructors Chat rooms to access persona trainers Healthy tips on website No contracts No joining fee No exit fee Recession makes online option more enticing

      

Virtual Gym TV pricing – UK      

Pay as you go - $.90-$1.60 per session Monthly - $6.18 Quarterly - $17.32 6 months - $20.21 Yearly - $55.66 Offer two sessions free to try

Opportunities: Virtual Gym 24/7 – Australia   

Increase market share by partnering with other online fitness applications Market to consumers outside their area – UK and Australia Social media links

Threats:

Weakness:

 

 

Classes not in gym environment Minimum participation to stream live events and interact with instructors

Only televised at certain times Must book class in advance Slow connections Website links don’t direct you appropriately None based in US Some individual classes are pricey Limited class variety

Larger competitors with more money and resources Duplication of concept Cost of keeping up with technology

 

No fee to join Monthly fee of $14 + the cost of classes  Classes are approximately $10 per class – not all exercises offered had classes available Other virtual gym class goers can be heard but not seen. Only the instructor can see everyone attending the class You must pay in advance for classes and if you can’t attend must cancel within 24 hours to receive refund

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


SWOT ANALYSIS  

eTrainer - SWOT analysis:

Allows families to work out at home together Adds an aspect of social gathering to the online format while still allowing at home users the privacy they desire

Strengths: Weakness:       

No set class schedules; work out any time, anywhere Nothing like this available in US today Good solution for consumers who can’t afford a pricey gym membership Classes are recorded in an actual gym setting with normal everyday people Competitive prices Low cost to maintain service Out of top 10 exercises done at the gym, 7 can be done at home with eTrainer and minor modifications for equipment Conforms to the users schedule

   

Initial investment costs are high Liability for un-supervised workouts Specific customer computer hardware requirements Consumers are limited to the equipment they have access to

Opportunities:  

Selling advertisement space on website Partnering with brick and mortar gyms to provide a unique addition to consumer’s typical gym membership

 

   

Terms and conditions agreement relieving company of liability Branded equipment, apparel, and social media community sites to aid in the social aspect received at a typical gym environment Ever evolving technology Offer free trial sessions Cater to all ages and fitness levels Alternatives for those who do not have fitness equipment (for example, canned goods for weights, gallon of milk instead of kettle bell, jump rope, hula hoop, stacked pillows to make an inclined bench, etc.) Customized work out plans based on users fitness level and goals

Threats:   

Larger companies mimicking concept Keeping up with the changes in technology Consumer distrust of a new brand

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


Marketing Strategy Overview: Based on household interviews, 40% of all ages of the U.S. population

every major demographic–men, women, younger and middle-aged adults, urban and rural residents, wealthy and less affluent.

exercise or play sports regularly, 38% of females, 43% of males, 29% of those 65 years and over. Statistics show that just 10 - 15% of the population train regularly. That leaves 85 - 90% of people who are not training and often they are so overwhelmed that they don’t know where to start. Our main target group is nearly half (46%) of American adults who are Smartphone users including nearly

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


Niche Market: Niche 1: Who? Adults and young adults who are interested in fitting fitness program into their lives, but don’t have the time or funds to visit a physical gym Why? There is increasing ratio of individuals who wish to make fitness part of their lives but don’t have enough time. They seek an experience that is functional and that meets their personal goals – weight control, stress reduction, improving specific body parts or building sport or lifestyle skills. What? This group will expect their fitness regime to evolve with their

When? Literally any time 24/7– between classes, before

increasingly ‘wired’ and technologically enabled lifestyles. These

going out, while traveling, etc.

consumers are likely to seek to be active and also seek increasingly skilled professionals to meet their needs. This forum also offers peer support via Where? Anywhere - at work, while mobile, at home and even in bed online chatrooms. Size? Target Age 18-34 with any income level – 64% of Smartphone users

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


Niche Market: Niche 2: Who? Wanna-be Fit friends and family! Why? Family's fitness has become a growing priority as 68% of American households play computer or video games. Today, more than one-third of American population is overweight or obese. As a result, individuals are looking for opportunities for their partners or children to be active in an environment and physical fit for society. What? They require motivation to get up for an enjoyable experience, with movement and exercise as by-products are driven by fun, pleasure and sociability – not by effort and hard work. They need a flexible way to

When? Before or after work or school

squeeze a fitness plan into their busy, hectic schedules.

Where? Anywhere– home, between classes, on lunch breaks or while traveling Size? Target Age 35-54 with 15K+ income level - 50% of smartphone users

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


Niche Market: Niche 3: Who? Empty nesters and Senior Citizens Why? Perhaps no group is becoming a bigger focus for health and fitness professionals than the baby boom generation for a couple of good reasons. First, this group tends to have more discretionary income than younger demographics. Second, according to the U.S. Department of Health & Human Services, it's the least active group of Americans, so it represents a huge untapped market. What? They require different one-on-one personal training sessions as they can’t jump head-first into any group fitness due to the increased risk When? Any time of the day of injury.

Where? Anywhere- In the garden, on the balcony, in a park, in their living room Size? Target Age 55+ with 35K+ income level - 30% of smartphone users

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


and fitness professionals and customized workout plans.

Target Market Strategy:

It also offers an e-library of training videos and programs at a minimum cost.

eTrainer’s target strategy is based on understanding each niche markets needs and aspirations and also market place loopholes. Value

eTrainer is the only mobile application which offers fitness

for our customer is important as it relates to product usability and

plans for every age group with a virtual gym environment

effectiveness. To obtain and retain users, eTrainer has to deliberately

to feed the energy of a real time exercise session for the

explore beyond the fitness domain, recruiting experts from diverse

user. It’s the first mobile application that can be

fields that shape future trends, including technology, future thinking

customized according to individual’s body shapes, habits,

and health into physical training and activities as major target market

work schedules, lifestyles, physical strength and health

strategy.

issues. This application assists individuals in becoming more active and productive, while lowering the overall costs spent on a typical gym membership. This application will

Marketing mix:

also offer a unique spin for the typical brick and mortar gym locations, by providing an opportunity to expand

Product:

existing gym services and give a one-up on the eTrainer is the new cutting edge mobile application and online fitness

competition.

support for personal health and fitness. eTrainer offers a variety of classes and fitness levels with competitive pricing, flexible routine schedules, online health tips, a 24-hour chat room with access to health

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


3. Social Media and YouTube:

Place/Distribution:

Sales pitch and awareness campaigns will run on YouTube and social networks like Facebook, twitter, mySpace,

eTrainer’s distribution channels including the app store, Android and

LinkedIn and Google Plus.

BlackBerry mobile application stores, on Social Networking sites and

4. Send SMS and emails to Target Market:

via web. eTrainer also offers partnership with gyms and health clubs

Target market will be send SMS and emails to advertise

that wish to include their physical training programs and routine in

eTrainers features, price and packages.

the eTrainer’s library. There is a referral program for existing

5. Free trials:

members to refer new members for membership.

Two week free trail for new members as an incentive to come and test out our virtual gym.

6. Alliance program: Partnership with leading gyms, health clubs and skilled

Promotion:

trainers that wishes to include their physical training

1. Online Advertisement: A cohesive, easy-to-maneuver, and user-friendly Web site: www. eTrainer.com

7. Referral programs: eTainer has referral program for the members that have

2. Radio:

bought 6 months and 1 year subscription. It gives 15 days

Advertisement on local radio stations, during the following time ₒ Last and first month of the year when people are making their New Year’s resolutions ₒ Spring and Summer, when people are thinking about bikini season

programs and routine in the eTrainer’s library.

and free month for every new member they bring that buys 6 month or 1 year subscription, respectively. It’s simple - the new member has to provide existing members referral code.

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


8. Membership packages:

Price and Revenue Stream:

eTrainer offer potential new members different membership packages - 1

ₒ No fee to join and free basic service - This include

month-6$, 3 months-15$, 6 months- 26$, 1 year- 48$.

9. Webinar from skilled trainers:

browsing the trainer and healthy tip area , access

eTrainer offers weekly and monthly seminars at special rates about the

to forums, support and advice, 1 free video to

benefits exercising, special techniques in exercising, special workout,

sample, brief content

stress and pain relieving activities, fitness gaming, staying and eating

ₒ Basic Membership packages - 1 month–$10, 3

healthy and so on.

months– $25, 6 months– $45,

10. Blogging:

1 year– $85 (Monthly Fees are less than a normal

By users sharing feature of daily blog by eTrainers on weight lifting,

gym membership)

wellness, diet, sports and physical fitness, and experience with friends

ₒ Customization plan packages: 1 month–$15, 3 months– $40, 6 months– $75, 1 year– $145

and family. 11. Press Releases, referring site and Word of mouth:

ₒ World-wide trainer Library access: $2/month

Spread the word among corporate, friends and family to continue a

ₒ Webinars: $10–25/per session

cycle of eTrainers advertisement.

ₒ Selling targeted advertisement space on the site – 30 second commercial before videos, $15k and Banner ads on free versions-, $10k ₒ Home Equipment Sales at the site ₒ Royalties ₒ For the videos, eTrainer share the profits with their creators and the gyms where they are recorded.

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


Implementation, Evaluation and Control Marketing Research:

availability for the customer is what makes eTrainer unique.

Traditional gyms offer its customers a place to achieve or retain physical fitness, socialize with like-minded people and the opportunity to gain knowledge from available experts in the field. A lot of gyms have changed their hours to 24-7, in an effort to allow their customers convenience and flexibility according to their own busy schedules, but the class times are still set by the gym and instructors. eTrainer delivers the expertise of fitness trainers and professionally designed workout sessions– all of which can be selected and scheduled by the

“Anytime. Anywhere. No excuses.” By delivering on this sentiment, eTrainer becomes a tool for all ages and all levels of fitness seekers. The product we are selling is YOU. By putting the combined resources together in one app, personal goals and accountability is literally in our customer’s hands.

user. This high degree of control and

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


Because convenience is one of our main

potential advertisers, which will be the

biographies will be featured on the site to

selling points, the technology behind this

primary source of income for the

add credibility and help market the

app must be flawless, fast, high quality,

company. These ad sales, along with

product. As the company grows, pivotal

technically sound and friendly to all

investment dollars, will fund the

consultants will become permanent

smartphones and both Mac and PC users.

development of app software, video,

employees

Organizational Structure and Plan: Currently, there are four members of the eTrainer team. Sonia Ghazali, Shannon Dunn, Skania Florestal and Melissa Hill, all of whom are invested partners. This group will be responsible for marketing, sourcing investors, administrative duties and will fill the positions of CFO, CEO, President, and CCO. Once startup costs are collected from interested outside investors, this team will grow to a larger team. A salesperson is needed to begin soliciting

sound and lighting equipment for recording workouts in partnering gyms, and advertising for eTrainer.

Financial Projections: eTrainer has a financial goal of solvency in

Consultants will be utilized for positions

two years. Financial analysis indicates that

such as web designers, graphic designers,

the company could expect to achieve a

programmers, app developers, nutrition

25% rate of return over a five-year period.

and fitness experts, videographers and

Revenues from advertisers and

editors. This will keep overhead low in the

subscriptions are expected to average $

formative portion of company

550,000 annually over the five year

development. Consultants will be selected

period. Start-up cost is estimated at

based on years of proven experience

$500,000 to design and implement the

within their respective genres.

app and website and to develop fitness

Nutritionists and trainers will be

content (videos). Costs to maintain the

accredited and decorated, as their

website and app will be minimal once they are successfully up and running.

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


Target goals: 

App sales totaling $500,000 by the end of 2013

Advertising revenue of $500,000 by the end of 2013

App sales totaling $1.5 million by the end of 2015

Advertising revenue of $1 million by the end of 2015

Five Year Projection REVENUE

2013

2014

2015

2016

2017

Subscriptions

450,000

750,000

1,000,000

1,250,000

1,250,000

Library access

25,000

125,000

250,000

250,000

250,000

Webinars

25,000

125,000

250,000

250,000

250,000

Ad on videos

350,000

500,000

750,000

1,000,000

1,000,000

Website banner ads

150,000

250,000

250,000

300,000

300,000

Production Costs

500,000

300,000

250,000

250,000

250,000

General & Administrative

100,000

200,000

200,000

200,000

200,000

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


Bibliography: http://pewinternet.org/~/media/Files/Reports/2012/Smartphone%20ownership%202012.pdf http://marketingsimulation.blogspot.com/2007/08/marketing-simulation-4-gym.html http://www.recmanagement.com/feature_print.php?fid=201203fe01 http://www.healthguidance.org/entry/6299/1/Physical-Fitness-and-Exercise-The-Facts.html http://www.virtualgym.tv/ http://www.virtualgym247.com http://www.stevejack.com/downloads/special%20reports/SPECIAL%20REPORT%20Value%20of%20Social%20Media%20to%20the%20Fitness%20and %20Leisure%20Industry.pdf

http://www.ihrsa.org/media-center/2012/5/23/the-2012-ihrsa-global-report-analyzes-industry-performance-a.html http://www.ihrsa.org/media-center/2012/1/11/top-health-club-trends-for-2012.html http://www.prweb.com/releases/2011/10/prweb8894650.htm

Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa


eTrainer- Interactive Virtual Fitness Center