A Business Plan for a Virtual Gym - Providing New Social Media Experiences across Multiple Devices
Paula Santamaria Berger
Anna-Lena Borgstedt
Pia Halbig
Andree M端ller
Group members: Paula Santamaria Berger Matr.-No.: M-29847 Degree program: Media and Communication (M.A.) Macromedia Hochschule für Medien und Kommunikation
Anna-Lena Borgstedt
Gollierstraße 4
Matr.-No.: M-29483
80339 München
Degree program:
www.macromedia.de
Media and Communication (M.A.) Pia Halbig
Module Compulsory Projects 1:
Matr.-No.: M-30413
Media Projects 1
Degree program:
MA-MK-PROJ-1 / MA-MD-PROJ-P-1
Media and Communication (M.A.)
First examiner: Prof. Dr. Alyosh Agarwal
Andree Müller
Second examiner: Prof. Phillip Madanire
Matr.-No.: M-22085 Degree program:
Place, date: Munich, January 2013.
Media and Design (M.A.)
How we have discussed with Prof. Dr. Alyosh Agerwal based the look of the business plan on our own creation and differs to the specifications of the examination office. In a standard layout the work corresponds with the given specifications.
Contents Executive Summary Service Description The Company’s Mission & Vision
9 10
Sporties Gyms Insureds
Value Propositions
10
Accessibility Usability Channels
27 27 27 28 28 28 29
Market Readiness German Fitness Industry German Online Industry German Social Media Industry
Strategic Opportunities
11
Target Market
11
Revenue Streams
31
Competitive Environment
12
Key Resources
32
Subscription Fees
Key Activities
32
Special Features
Key Partnerships
32
Social Media Connectivity
Cost Structure
33 33
Competitive Advantage
Marketing and Communication Strategy Financials
12 13
Funds Sought and Utilization 13
Economies of Scale
Design Concept Philosophy & Intention
People Management Team
17 18
General Relative Website Concept Relative Application Concept
Financial Plan
30
34 34 34 34 35
36
23
Sources and Use of Fund Capital Requirements
36 36
Service Description
24
Key Financial Projections
36
Payment Model
Financial Projections
Social Media Integration
24 24 24 25 25
Development Stage
26
37 37 38 40 40 40
Location & Geographical Information
26
Business Model
27
Opportunity Usability Personal User Interface Classes
Customer Segments
27
Membership Forecasts Revenue Forecasts Income Statements Break Even Analysis Return on Investment (ROI)
Context Target Market Market Description
45 46 46
49
Behavioral Characteristics
Management
Customer Relationships
46 46 47 48
of Potential Customers
50
Competitors Analysis
52
Usability
Variety of classes
52 52 54 54 54 54
Marketing Mix
56
Customer Value
56 56 56 56
Key Marketing Goals Key Marketing Strategies Key Marketing Vehicles
Communication Key Communication Goals Key Communication Vehicles
Convenience Cost
Key Convenience Goals
58 58 58 60 60 61
Risk & Reward
65
Scenario Analysis
66
Risk & Reward Analysis Risks Rewards
68 68 69
Development, Milestones & Exit Plan 70 Long Term Company Goals & Growth Strategy Milestones Exit Plan
70 71 71
Marketing Research Process 112
Design Corporate Identity Logo Typography Color
Website Sitemap Wireframes User Interaction Plan Layout Design
Application Sitemap Wireframes User Interaction Plan Design
Financials
75 76 76 76 78 82 86 86 88 90 92 94 94 96 98 100
102
137
112
Key Marketing Vehicles
138
Developing the Research Plan
113
Social Media Marketing
Implementing the Research Plan
114
Email Marketing
Interpretation of the Findings
114
138 138 138 138
Industry Structure Analysis
115
Macro Environmental Factors
115 116 121 122 123 123 124
Problem Definition
Demographic Environment Economic Environment Socio-Cultural Environment
Appendix
Marketing Niche Strategy
Technological Environment Ecological Environment Political Environment
Competitive Environment Usability Subscription fees Special features Variety of classes Connectivity (Social Media) Conclusion
Indirect Competition Fitness First Life Time Fitness Lady of America Reebok AOK
SWOT-Analysis Strategic Opportunities SO-Strategies WO-Strategies
Cash Flow Statements Year 2013
102
Cash Flow Statements Year 2014
104
Cash Flow Statements Year 2015
106
Strategic Corporate Strategy
Cash Flow Statements Year 2016
108
Basic Competitive Strategy
Cash Flow Statements Year 2017
110
ST-Strategies WT-Strategies
Customer Value Disciplines Competitive Position &
125 125 126 127 128 130 131 132 132 132 132 133 133
134 135 135 135 135 136 137 137 137
Search Engine Advertising Event Marketing
Key Communication Vehicles 139 Fitness Blogs Testimonial Trade Fairs
Bibliography
140 140 140
145
Business & Design Department
146
List of Images
152
A
Executive Summary
Service Description Movetastic is an online fitness platform
Movetastic makes it possible for
network accounts or as a new way to
that provides its services over a website
consumers to exercise wherever and
connect to people. The features of the
and an application, which will be
whenever they want. None of the fitness
app, such as the rewarding system, the
accessible with every major operating
classes require any additional material.
rating system, the challenges and the
system. Movetastic will be a GmbH,
offered live events, are movetastic’s way
a limited liability company.
The variety of classes provided
of bringing its users together. All of
Movetastic’s app is a freemium based
range from Kickboxing, Zumba,
these features are under the category
subscription model.In comparison to
Yoga to Pilates.
“my move”, which shows every user his
Executive Summary
already existing online fitness gyms,
personal dashboard.
movetastic will focus on the usability
Users will be able to use the app as an
of the app and its social component.
addition to their already existing social
The Company’s Mission & Vision Vision: Sport yeah! Gym nah…
Mission:Gym is where you are
We want to connect people all over the
Movetastic is designed to make
world by revolutionizing the way people
people realize that they do not need
experience sports.
expensive gyms to exercise whenever and wherever they are. Whether you
Movetastic’s primary company goal
want to loose weight, do your favorite
is to be the best and most subscribed
yoga class or just be active. Movetastic
to online fitness company - first in
makes it possible that you reach your
Germany and then internationally.
goal in the most flexible way possible and all your friends can see and help you reaching your goal by supporting or challenging you.
12
Management CEO Paula Santamaria Berger is the
Executive Vice President Sports
Executive Vice President Design
founder and initial creative person
and Communications Pia Halbig
Andree Mueller is responsible for art
behind the idea of the company. She
holds responsibilities for the editorial
direction, brand and service design as
brings in significant management
process and production of sports
well as the product development of the
experience in business intelligence to
content, and corporate as well as
app across multiple devices.
this position.
consumer communications. As a former professional golfer, Pia represents the
Executive Vice President Customer
company as the senior spokes person on
Group Anna-Lena Borgstedt brings in
all major events.
direct experience in strategic marketing
Executive Summary
and online marketing to the target market from her previous job in an online startup.
Target Market The company operates in the online
rate was 76%, providing a clear target
The company’s innovative way to reach
fitness segment, which is a niche market
for marketing efforts in the online fitness
its target market via one platform
in the rapidly evolving fitness industry.
segment.
across multiple devices and operating
Online, the target geographic includes
systems provides a strategic sweet spot
Germany at the beginning of operation
Movetastic targets an online affine
to build market share on a national as
and expands to the USA in the second
user group, which is interested in an
well as international level.
year and South America in the third year.
affordable solution to experience sports while being socially connected.
The German fitness industry made four billion Euros in revenues in 2011 and at the same time the Internet penetration
13
Executive Summary
Competitive Environment Competition is diverse and uneven with
its competitors regarding app usability
The company creates substantial market
no current market leaders in the online
because the app is applicable on all
opportunities via strategic partnerships
fitness niche market. The strongest
screens and all devices, users can access
with leading fitness chains, insurance
competitors are Fitnessraum, New
all important information within one
companies and later with sports
Moove and BodyBoom, each in different
click and the fitness videos have the
clothing companies.
aspects of the business. Movetastic
highest resolution possible all the while
maintains competitive advantage over
being connected to social media.
Marketing and Communication Strategy Movetastic follows a combination of
The company publishes a monthly
Its communication strategy will focus on
focus strategy and market penetration
dynamic customer-orientated and
building brand awareness for movetastic
to not only drive customer engagement,
personalized email newsletter, purchases
in all major press outlets by developing
but also to transform new members into
keywords in search engines, exhibits
relationships with news editors
loyal customers and to increase their
at trade fairs and hosts two live sport
and bloggers.
activity within the app.
events each month.
The company penetrates the market
Movetastic maintains company profiles
by focusing on potential growth in the
in all major social networks to support
world of online advertising.
its customer base and acquire new
Brand awareness is raised through viral
potential subscribers.
marketing campaigns and through social media activities.
14
Financials Movetastic projects rapid growth with
remains profitable from that point on.
sales revenues of € 1.8 million in the
The financial strategy is reinvestment
current year, €4.6 million in the second
of income for international expansion
year, and €10 million in the third year.
and funding growth internally without
The company is cash flow positive after
an additional investment beyond that
the first nine months of operation and
currently sought.
Funds Sought and Utilization sum of €1.5 million in equity financing and expects only one funding round for full financing to achieve its business plan. These funds will be used for system development & IT, marketing expenses
Executive Summary
Movetastic is seeking to raise the total
and working capital to hire staff and establishing strategic partnerships. Long-term development plans are to become the best and most subscribed to online fitness platform first in Germany and then internationally.
15
B
People
Management Team Movetastic’s management team is
Paula Santamaria Berger is the Chief
The second top management team
as diverse as the company itself.
Executive Officer of movetastic. Paula
member is Anna-Lena Borgstedt. The
The four top management members
is the founder and initial creative person
25-year-old Executive Vice President
have all previously worked in the
behind the idea of the company.
Customer Group holds responsibilities for Marketing, Sales and Customer
People | Opportunity | Context | Risk & Award
fields they will be responsible for and bring specific expertise to build an
She is 27 years old and from Bogotá,
international company.
Colombia where she grew up and
Relationship Management (CRM).
went to university. Her major at
Anna-Lena graduated from Stenden
Three of the four management members
Pontificia Universidad Javeriana
University Emmen, Netherlands, with
spend more than a year living in the
was in Journalism and Social
a degree in business administration
countries of movetastic’s potential
Communication with an emphasis
with an emphasis in marketing. During
markets, thus gaining considerable
in organizational communication.
her studies she spent four months in England working at The Credible
insights in the customs of the countries which are necessary for building a good
Her most recent jobs were in the field of
Company Ltd. in Nether Westcote and
sales and marketing strategy.
digital marketing at WSI Difusion Web
three months in Vienna, Austria.
and as a Junior Executive Producer at Zio Studies S.A.S. both in Bogotá. Paula
Following her studies she worked at
brings an unending enthusiasm for
QUISMA GmbH and Secure Me, a start
the project and its many challenges to
up company in Munich, in the marketing
the company. Because of her heritage
department focusing on developing SEA
she will be essential for the company’s
strategies, online marketing and account
success of expanding to South America
management. Her experience working
or other Spanish speaking countries.
in online marketing will be necessary to position movetastic in the online
Besides her duties as the CEO of the
fitness market. Furthermore, Anna-Lena
company she will also oversee the
previously worked at an online start up
Market and Business Intelligence unit at
company thus she already knows what
movetastic where she will be responsible
challenges a small company has to face.
to react to customer needs and future trends of the fitness industry.
20
The fourth top management member is
Executive Vice President Design. As
Pia Halbig. As Executive Vice President
the Creative Director of the company,
Sports and Communication the
he is responsible for brand and service
responsibilities of the 24-year-old include
design, as well as product development
the editorial process and production
of the movetastic app across multiple
of the sports content, corporate and
systems and devices.
consumer communications, events, public affairs and representing movetastic as the
With his 27 years, Andree already
company`s senior spokes person.
brings a large amount of experience as a graphic designer to movetastic’s
Pia became a member of the German
management team.
Golf national team in 2002 and represented Germany for 10 years playing
Since July 2010, he has been working
in tournaments all over the world. Her
as a freelance graphic designer
experience as an active athlete will
even though he was still finishing his
help to position movetastic as a sports
university degree majoring in digital
brand. Furthermore, her experience and
media production and media design
knowledge about the United States where
with an emphasis in graphic and screen
she lived for four years and graduated
design, photography, print design and
from Berkeley with the highest honors
corporate identity design. Andree is
in media studies will be essential for
highly creative and has already designed
the expansion of movetastic and the
movetastic’s webpage and its app.
founding of strategic partnerships with
People | Opportunity | Context | Risk & Award
Andree Mueller is movetastic’s
American companies. Since September 2011, Pia has been working at Sky Deutschland AG as Junior Manager Product and Content Communications being responsible for ten different TV channels and their respective public relations strategies.
21
C
Opportunity
People | Opportunity | Context | Risk & Award
Service Description Movetastic is not only an online fitness
Payment Model
Personal User Interface
platform that can be used as an app
Movetastic’s app is a freemium based
Movetastic’s app gives every customer
across multiple devices such as laptops,
subscription model. Customers have
the possibility to create and manage its
tablets, smartphones and smart TVs but
the option between a free, a basic and
own dashboard by showing graphs of
also functions as a social community
a premium version. Consumers will be
the completed classes, goals, all of the
where users can connect with old
able to pay for movetastic’s services by
person’s friends’ activities and a planned
friends or meet new people that are
either downloading the app via an app
schedule of the next week or month,
interested in the same things.
store or by directly signing up on the
which can be synchronized with the
website. Customers can pay with debit
consumers personal Google calendar.
or credit cards and over PayPal.
This feature of the app enables
Movetastic will be a GmbH, a limited liability company, because in case of
Usability
their dashboard. The personal interface
private money will be protected
The usability of the app is one of
is called “my move.” Under this category
before the law.
movetastic’s biggest competitive
the consumer can also find movetastic’s
advantages. Movetastic’s website is
special rewarding system.
The website is registered under the
used as a distribution platform and
following URL: www.movetastic.com
information channel but the heart of the
By completing challenges or achieving
company is its application. Movetastic’s
set goals the customer can earn
Movetastic gives its customers the
customers can log in to their account
rewards, which can for example lead to
opportunity to exercise actively
using multiple devices. The application
an upgrade to movetastic’s premium
wherever and whenever they want. All of
has the same features and looks on all
version for a limited amount of time.
the offered fitness classes do not require
operating systems, thus offering the
any additional equipment besides
highest usability standards possible.
The challenge function will be
enough space to move to the teachers’
an essential part of movetastic’s
instructions. The variety of offerings will
application. The customer can
stretch from full body workout classes,
challenge himself, his friends or
such as Kickboxing and Zumba, to more
even unknown people.
relaxed classes such as Yoga and Pilates.
26
subscribers to have custom content on
insolvency the founding member’s
Social Media Integration
Furthermore, all of movetastic’s
The social aspect of movetastic will
classes are offered in different levels.
further create competitive advantage
Customers that have never done fitness
over other competitors. The integration
classes before are still able to start
of social media and social media
with movetastic and work their way
networks into movetastic’s app
up to more elaborate classes. Another
is an integral part of movetastic’s
feature of the app is its rating system.
growth strategy.
The customer can not only rate every course after completion, but also rate
People will not only be able to post their
the instructor of the course. With this
rewards, their completed challenges but
feature the system knows which classes
also which classes they took with
and which instructors the user likes and
which instructors.
therefore, can recommend them as soon as new courses are available. As soon as the app goes online the users can access twenty different courses. In year one to three twelve new videos and in year four and five fifteen new videos will become available every four months and broaden the consumers’ choice. Additionally, two
People | Opportunity | Context | Risk & Award
Classes
live events per month will be offered for consumers. Live events are courses that are broadcasted live by using a Google+ hangout or Skype sessions. After five years movetastic will be able to offer 467 different videos in three different languages.
27
People | Opportunity | Context | Risk & Award
Development Stage At the moment movetastic is still in its
The management team has already
developing phase. However, the overall
started talking to possible strategic
business strategy is done and the
partners such as Reebok and AOK and
design of the website, the app and its
has received very positive and engaging
functionality are completely finished.
feedback from these presentations and discussions. Both of the partners
The beta version of the app and the
are interested to hear more about the
website will be able to go online shortly.
company and its goals.
Location & Geographical Information Movetastic is currently located in
Furthermore, Munich is known as a good
Munich, Germany. This location was
city for a start up company because of
chosen because every founding
its excellent entrepreneurship centers
member of the company is currently
at the Ludwig-Maximilian-University
living in Munich.
as well as at the Technical University. Both of these centers help young start
Due to the nature of the business
up companies to receive funding and
- a company working purely online,
give legal advice.
a change of location was not deemed necessary.
28
Business Model Movetastic created its business model, which describes the way of how the company creates, delivers and captures customer value, according to Osterwalder and Pigneur (2009).
Customer Segments Sporties
These customers already pay a
model is the customer. Targeting the
The first customer segment is the
membership fee for a regular gym
niche market ‘online fitness’ offers
general target group of movetastic:
and wish to complete their portfolio
movetastic the possibility to tailor to the
mostly women between the ages of
with movetastic’s app. The main target
specific characteristic behaviors of three
18 to 45 who want to be active, loose
group for this segment is women who
different customer segments:
weight or like to work out. 79% of the
are either travelling a lot or have other
respondents of movetastic’s non-
responsibilities, for example children,
representative survey like to exercise,
which prevent them from attending
but only 40% have a membership to a
classes in their regular gym. With
gym because they either do not have
the help of movetastic’s app, these
the time to go to a gym regularly, the
customers are now able to catch up
membership fees are too expensive,
with their classes and meet others
or they do not like gyms. Potential
via social media who experience the
customers enjoy the anonymity of
same challenges.
working out at home as well as the flexibility of working out whenever
Insureds
and wherever they are. Furthermore,
The third customer segment is
potential customers enjoy the social
customers generated via the
aspect of movetastic, they like the feel
partnership with insurance companies.
of a community and their ability to
These customers are active in sports,
connect to friends.
interested in wellness and willing to
People | Opportunity | Context | Risk & Award
The heart of movetastic’s business
spend money on health prevention and
Gyms
supplementary products. In particular,
The customers movetastic generates via
they are thirty to fifty years old, are well
its partnerships with fitness chains is the
grounded in education and have an
second customer segment.
income above average.
29
Business Model Value Propositions
In today’s vast changing and busy world, many people especially women who are travelling a lot or have children, do not always have enough time to attend classes in regular gyms. In addition, the membership fees for regular gyms are too high for a vast majority and
People | Opportunity | Context | Risk & Award
others do not like to work out in public.
30
The usability of the competitors’
Accessibility
Usability
solutions offering online fitness classes
Movetastic provides an interactive app,
Movetastic’s app is more convenient
is very low. The services are solely
which offers a variety of classes across
and easier to use than the solutions
available through their websites and not
the Web and all three major operating
of all major competitors. We create
via an app across multiple devices as it
systems – IOS, Android, and Windows
substantial value by offering customers
is the case with movetastic’s solution.
Mobile, while being connected to social
the highest usability in experiencing the
media. Thereby, movetastic makes
different fitness videos while at the same
Furthermore, there is no connection to
its app available to everyone who
time being socially connected to friends,
social media networks where users can
previously lacked access to fitness
having the possibility to challenge
interact, share experiences or challenge
classes. From now on everyone is able
friends, all the while aiming for higher
each other to gain higher rewards.
to work out and catch up with fitness
rewards via the app’s rewarding system.
classes anywhere and anytime in With four billion Euro in revenues in 2011, the fitness industry is an attractive and continuously growing market. Movetastic offers an interactive app, which contributes to the following customer value creation:
the world.
Channels Movetastic helps customers to evaluate
Post purchase support is provided via
through a mix of its own channels and
the company’s value creation through
technological support on the website,
partner channels. Touch points through
the rating function in the app as well
a ‘contacting us’ option on the website
its own channels are the website and
as the app stores, and through social
and live chats for live events as well as a
the app, and touch points through the
media responses. Furthermore, there
FAQ section which provides answers to
partner channels are the App Store,
are functions to rate the completed
the most common proposed questions.
Google Play, the respective websites
class as well as the instructor who held
and social media. The different channel
the class directly in the app and on the
phases are described below:
customer’s dashboard.
Awareness is raised through an online
Movetastic allows customers to
marketing campaign, viral marketing
purchase the app via debit card,
campaigns and through social media
credit card and PayPal. The app can be
activities. A print campaign will be
purchased directly in the app stores and
available for movetastic’s partners in
on movetastic’s website as well.
the fitness chains.
People | Opportunity | Context | Risk & Award
Movetastic reaches its customers
31
Business Model
Customer Relationships Movetastic’s customer relationships are driven by the motivations of customer acquisition, customer retention as well as boosting
People | Opportunity | Context | Risk & Award
sales, which means upgrading free users to premium users.
32
Movetastic is going beyond the
The challenge function in which
The social networks are used to
traditional customer-vendor
customers can either accept challenges
interact with customers, respond on
relationship in order to co-create value
for themselves, challenges their
feedback and to better understand
with its customers. Customers can rate
friends in different activities or create
the specific demands and needs of
both – the classes they completed and
a challenge by and for themselves
movetastic’s customers.
the instructors they took the classes
represents the third way of co-
with. This creates value for other
creating value with customers.
movetastic members. Furthermore,
Because of movetastic’s early development stages it will roughly cost
participants are able to post their
The company is building up a
the company one Euro per person to
activity on Facebook and Twitter and
community with the help of Facebook,
acquire and later retain subscribers.
thus invite friends to use the app.
Twitter and other social networks to be more involved with its customers.
Business Model Revenue Streams
Movetastic’s business model involves two types of revenue streams – recurring revenues via ongoing subscriptions and transaction revenues via one-time customer payments resulting from strategic partnerships with insurance companies. Movetastic sells its members monthly or yearly subscriptions in exchange for access to its interactive app. Subscribers pay in advance for movetastic’s services, which means that freemium business model. The users are offered a free version with limited features as well as a basic version with more features and a premium version with the complete suite: The customers movetastic generates through its strategic partnership with Fitness First in the first, Life Time Fitness in the second, and Lady of America in the third business year only pay movetastic’s basic version but enjoy full access to the premium suite. In addition, the customers movetastic acquires via its strategic partnership
People | Opportunity | Context | Risk & Award
there is more security of the incoming revenues. Subscription fees are generated via a
with the insurance company, AOK, have access to the premium version as well. The AOK pays a monthly commission fee of 10% to movetastic so that its Table 1: Movetastic’s Subscription Model
members may use the service for free as an added value.
33
People | Opportunity | Context | Risk & Award
Business Model
34
Key Resources
Key Partnerships
Movetastic requires physical and
Movetastic’s business model is based on
clothing companies. These companies
intellectual key resources in order to
key partnerships to not only acquire new
are always looking for new ways to
make its business model work. Physical
revenue streams but also to reduce risks
achieve constant market penetration,
key resources are the development and
and create competitive advantage.
which will be possible through this
maintenance of the app, of the produced
The core key partnerships are
partnership. The top fitness clothing
fitness videos as well as extensive IT
corporations with existing fitness chains
companies all have different types of
services. Intellectual key resources
in Germany already during the first
instructors under contract who then
forming movetastic’s strong business
business year and then expanding to
can be used as the instructors for
model are strategic partnerships and the
the United States and South America
movetastic’s fitness videos wearing
customer database.
in the beginning of the second and
the newest collection of the clothing
third year of business. Both movetastic
company. This partnership will not
and the fitness chains create market
necessarily create a new revenue stream
Key Activities
penetration through the cooperation.
but rather reduce the costs of each
Especially the fitness chains are able to
fitness video production substantially
The key activities movetastic takes
meet the demands and needs of their
because movetastic neither has to pay
in order to operate successfully are
existing customers described in the
for the instructors of the video nor for
platform/network related activities.
customer segments.
the studios used.
development of the software for the
Another key partnership is created
The corporation with fitness chains
interactive app leads to substantial
between movetastic and insurance
(Fitness First, Life Time Fitness,
value. Further key activities of
companies. Insurance companies
Lady of America), health insurances
movetastic, especially as a start-up,
highly benefit from health promotions
(AOK) and fitness clothing companies
are brand promotion and platform
as provided by movetastic: Athletical
(Reebok) creates a win-win situation:
promotion in order to acquire more
and healthy insureds require lower
The corporation partners are able to
customers and create brand awareness.
treatment costs. Therefore insurance
penetrate the market and increase
companies could lower prices and be
customer loyalty by fulfilling their
more attractive on the market. Insurance
customers’ demands and movetastic can
companies try to motivate their insureds
generate new customers for different
to be more active via the sponsoring of
revenue opportunities. Movetastic’s
sport events and prevention activities.
offered services are extended and the
The third key partnership is with fitness
assortment is upgraded.
The continuous maintenance and
Business Model Cost Structure
Economies of Scale
between the cost-driven and value-
Movetastic creates cost advantages as
driven cost structure. As a startup
its outputs expand: The more members
movetastic minimizes costs wherever
movetastic generates via different
possible, which is why the management
revenue streams, the lower the variable
team does not draw salaries in the first
costs per piece will be. As a result, the
one and a half years of business.
minimum sales quantity in order to be
Solely movetastic’s employees get
break-even decreases as well.
regular salaries. However, the main focus of movetastic is value creation for its customers.
People | Opportunity | Context | Risk & Award
Movetastic’s business model falls in
Table 2: Business Model Canvas
35
Design Concept
People | Opportunity | Context | Risk & Award
Philosophy & Intention General
Relative Website Concept
In most cases the effectiveness of a site
Based on movetastic’s business model
With regard to the design of the
is directly related to the effectiveness
the website can be classified as a web
page, movetastic integrates new
of its design. Movetastic decided to
software website. The big need for users
developments and trends into the
uncouple the core business idea of
of this website type is the inevitable
design concept. Even though important
fitness videos from the website
need for more information. These bits
advances were made in the technology
and integrate them into a
of information connect closely with a
of web design, an important trend
stand-a-lone application.
user‘s desire to take steps towards being
these days has been a move away from
a paying customer. The main task was to
the use of technology as a novelty
The website will be used as the
create a clear website with focus on the
and towards a balance between
distribution channel and information
application: The main goal was to bring
design, ease of use and technology, for
platform. However, the app is the main
the user to the sign-up process, in the
example, PNG transparency has given
part of the company’s design intention.
best case as a paying client.
designers a range of new possibilities for incorporating images into their work.
The concept of the website is organized in three different topics. First, the
Movetastic also integrated a new
description and promotion of the
technology development of better
application with the advantages and the
browser support for fonts (@fontface)
pricing model, plus a download center of
into their design concept, which allows
the application for different devices with
using a wider range of typography
the goal to bring the user forward to
- especially larger, bold and novelty
the sign up process. Subsequently, the
typefaces. This new technology will add
website forms a unified online support
personality and clarity on the website.
center that helps to answer problems
New technological possibilities give
related to the application.
movetastic a higher range of browser support, therefore movetastic’s page will
The third category includes all
be coded with the new programming
information about the company and the
method HTML5/ CSS3, which will imply
link “terms & conditions”.
that video embedding will be done by code and not longer by Flash.
36
Relative Application Concept iPhone, iPad, iOS computers, Android
challenge just for himself but at the
application is a stand-a-lone software
smartphones and tablets, Windows
same time he can also challenge other
engine with the content of the offered
smartphones, tablets and desktop
subscribers. Further social activities
online fitness product. Alongside the
computers plus an online version in the
will include the ability to connect with
normal support operating systems such
style of a desktop app.
friends, see your friends’ activities, invite friends to events or courses and the
as iOS and Android movetastic will provide a version for the new Windows
The support features differ in each app
ability to connect your personal Google
Mobile 8 system for smartphones and
version. The full range of the features,
calendar with the application.
supplementary as a further challenge
which are course videos, events, live
a version for desktop computers
courses, friends connections, friends
(Windows and Apple Units) with the
activities, offline function for Premium
same look working strategy as for the
users, challenges, rewards, are available
other devices. The difficulty is that
in the desktop and the tablet versions.
movetastic will need an application,
The application for iPhones will have a
which must be usable not only on touch
reduced supply of the features.
screen systems but also on the classical operating systems using a mouse
One of movetastic’s most important
without any restrictions in its usability.
competitive advantages is the integration of the social media
The idea to have one system with one
component. All application versions
way of usage is still very young and
will have this element integrated. In
not based on a very high practical
movetastic’s concept the social media
knowledge level. However, a successful
part will not be a separated part,
example is Microsoft Windows 8, which
but rather an attractive supporting
was the first operating system with
component in all areas. Therefore, the
the same look and the same usability
social media part will occur in different
for all available terminals. In summary,
areas of the application in different
movetastic will have an application for
forms. For example, the user starts a
People | Opportunity | Context | Risk & Award
As already mentioned movetastic’s
37
Financial Plan
Sources and Use of Fund Movetastic is seeking to raise the total
Capital Requirements
sum of €1.5 million in equity financing and expects only one funding round
System Development & IT
€ 200.000,00
for full financing to achieve its business
Marketing Expenses
€ 200.000,00
Working Capital
€ 1.100.000,00
Total Use of Funds
€ 1.500.000,00
finance all operation, marketing, and product development costs after the first two months of business.
Key Financial Projections Movetastic expects to be profitable and cash flow positive after the first nine months of business and remains profitable from that point on. A forecast of first-year revenues portrays sales of €1.8 million, a net income of €263.000, and a net margin of 15%. The most important results of the financial forecast are summarized below: The financial progress of the net income
Summary Financial Forecast
has a positive outlook; the net income increases from €262.604 in 2013 to €15 million in 2017 with a CAGR of 176%. Due to the fact that the company is already cash flow positive after nine
Thousand
People | Opportunity | Context | Risk & Award
plan. The company will be able to self-
€ 25.000
60%
€ 20.000
50% € 15.000
40%
€ 10.000
30% 20%
months of operation, the net margin
€ 5.000
increases from 15% in 2013 to 66% in
€0
2017 with a CAGR of 45%.
70%
Revenues Net Income Margin
10% 2013
2014
2015
2016
2017
€ 1.785.133
€ 4.591.013
€ 10.336.581
€ 16.684.038
€ 23.174.232
€ 262.604
€ 1.971.257
€ 6.202.986
€ 10.294.422
€ 15.184.624
15%
43%
60%
62%
66%
Table 3: Summary of Movetastic’s Financial Forecast from 2013 to 2017
38
0%
Financial Plan
Financial Projections As seen in the figure, members are
and 0.25% of AOK members by the end
based on current industry estimates
expected to increase from 476.000 after
of 2013. This equals to a total of 369.375
of online subscribers, primary and
the first year of business to 4.5 million
members generated via partners and
secondary market research data, and
after the fifth year of business with a
106.800 members acquired through
estimates of the service’s market
CAGR of 76%.
basic and premium memberships.
All estimations are based on a
During the first year, movetastic partners
In the second business year, the
conservative approach.
with the fitness chain Fitness First and
company plans to enter the US fitness
the German insurance company AOK.
market via a partnership with the US
Membership Forecasts
Fitness First has approximately 270.000
fitness chain Life Time Fitness, to be a
Subscriptions include those generated
members in Germany and AOK has 24
first mover and to gain competitive
from acquisitions of new members and
million insureds. Due to these strategic
advantage. Around 676.000 US
registrations of additional members
partnerships, the company expects to
citizens are Life Time Fitness members
resulting from strategic partnerships.
acquire 25% of Fitness First members
and movetastic expects to generate
penetration and sales growth.
20% of Life Time Fitness members by the end of 2014.
Members I Growth Together with 35% of members
Thousands
acquired via Fitness First and 0.27% 5.000
members out of the AOK partnership,
4.500
movetastic expects to generate
4.000 3.500
approximately 690.000 members via
3.000 2.500
New
its strategic partnerships and 165.000
2.000
Members
new members through its business
1.500
People | Opportunity | Context | Risk & Award
The following financial projections are
model by the end of 2014.
1.000 500 0
2013
2014 784.624
2015 1.084.880
2016 1.104.102
2017 1.090.533
476.175
476.175
1.260.799
2.345.679
3.449.781
New Members
Table 4: Movetastic’s Membership Forecast from 2013 to 2017
39
During the third year of operation,
Revenue Forecasts
movetastic plans to enter the South
The following revenue forecasts are
revenues in 2015 via its freemium
American fitness industry via the US
based on a mean-case scenario.
business model and an additional €4 million in revenues via its partners.
People | Opportunity | Context | Risk & Award
chain Lady of America. Lady of America operates gyms in North and South
As seen in the figure, revenues
In 2016, most of the partnerships will be
America and focuses on women who
increase from €1.79 million in 2013
established and the company expects to
match the target group of movetastic
to €23.2 million in 2017 with a CAGR
generate €5.3 million in revenues via its
very well. Lady of America has a
of 90%.
partners and an additional €2.5 million in revenues via its freemium
customer base of over 1 million and movetastic expects to acquire around
Movetastic’s business model is based on
20% of the chain’s members, which is
a freemium model and relies on strategic
around 112.000 by the end of 2015.
partnerships to create different revenue
During the fifth year of operation,
streams. Movetastic generates revenues
the company expects to generate
Together with the other partners, the
of €423.000 via its partnerships and
€2.7 million in revenues via its basic and
company generates approximately
€1.4 million through its freemium
premium subscriptions as the company
1.08 million new members via
subscription process in the current year.
will be established on the market. The strategic partnerships will be further
its partnerships in Germany and America and around 192.000 new
Entering the US market via Life Time
expanded and additional revenues of
members via freemium based
Fitness already in the second year
€6.2 million will be generated.
subscriptions. In the fourth business
of operation reduces the risk for
year, movetastic generates 1.2 million
movetastic and increases revenues
new members via its partnerships in
significantly as seen in the figure. The
Germany, North America and South
company generates a total of €1.8
America. The company expects to
million in revenues via its national
acquire approximately 198.000 new
and international partnerships and an
subscriptions from basic and
additional € 2 million through basic and
premium subscriptions.
premium subscriptions.
During the fifth year of operation,
40
business model.
movetastic expects to generate around
The strategic partnership with Lady of
1.39 million new members via its
America not only creates additional
partnerships and approximately 216.000
revenue streams, but it also reduces the
new subscriptions through the business
risk for movetastic entering different
model. This equals to 4.5 million
markets at the same time. Movetastic
members by the end of 2017.
expects to generate €2.4 million in
Thousands
€ 25.000
€ 20.000
€ 15.000 Net Sales € 10.000
Linear (Net Sales)
€ 5.000
€0 Net Sales
2013
2014
2015
2016
2017
€ 1.785.133
€ 4.591.013
€ 10.336.581
€ 16.684.038
€ 23.174.232
People | Opportunity | Context | Risk & Award
Net Sales I Growth
Table 5: Movetastic’s Net Sales Forecast from 2013 to 2017
41
People | Opportunity | Context | Risk & Award
Income Statements
Break Even Analysis
The following income statements
On one hand, the company reduces
As seen in the graph, movetastic is cash
represent an honest analysis of the
video production costs with internal
flow positive after the ninth month of
financial progress of movetastic and
resources and on the other hand with
business and break-even after the first
are based on a mean-case scenario. In
the strategic partnership with Reebok
year of operation.
addition, a summary of the cash flows
as seen in the income statement of year
on a monthly basis can be found in
2016. The total amount saved per video
the appendix.
is €10.000 from the first to the third
Return on Investment (ROI)
business year and €13.500 from
The expected financial return, the
2016 onwards.
ROI, shows that movetastic uses its
As seen in the profit and loss statements, members and revenues are
capital very efficiently to make profits:
calculated cumulative. Revenues include those resulting from registration of new
€262.604,46
accounts and continuing memberships.
€ 1.500.000,00
For all projections, a churn rate of 15%
= 18% ROI
is estimated to portray a realistic illustration of memberships and revenues.
Break Even Point IT expenses include costs associated
€ 16.000.000
with product development, software
€ 14.000.000
programming and maintenance.
€ 12.000.000
Marketing and sales expenses include costs associated with advertising, PR, promotions and those from revenue sharing with strategic partners. CRM expenses include all costs regarding customer relations, support and CRM
€ 10.000.000 € 8.000.000 € 6.000.000 € 4.000.000 € 2.000.000
tools. Movetastic operates with minimal
€0
overhead due to the nature of an online
-€ 2.000.000
business, which can be seen in startup costs I office supply section.
M1
M5
M9
M12
M24
Net Income (Cumulative)
-€ 483.441
-€ 120.836
-€ 74.023
€ 262.604
€ 1.971.257
€ 6.202.986 € 10.294.422 € 15.184.624
Total Expenses
€ 493.861
€ 280.061
€ 280.061
€ 686.528
€ 1.739.756
€ 3.083.595
Table 6: Break Even Point
42
M36
M48 € 5.317.616
M60 € 6.581.608
People | Opportunity | Context | Risk & Award
Table 7: Income Statement from 2013 to 2017
43
D
Context
Target Market Market Description
Movetastic operates in the online fitness industry. Online, the target geographic market includes Germany at the beginning of operation, English-speaking countries from the second business year onwards and the South American online fitness market in the
Market Readiness The online fitness segment is a niche
German Fitness Industry
market in the rapidly evolving fitness
Fitness is the most popular sport in
As seen in the figure, the total revenue
industry. As the online market advances
Germany and the German fitness
of the German fitness industry was
and becomes even more relevant, fitness
industry continues to record a positive
approximately 4 billion Euros in 2011,
companies will try to enter this niche
market development. In 2011, 7.31 million
an increase of 11% compared to 2010
market to expand market share. At the
people worked out in approximately
(statista, 2012).
moment, the online fitness industry is
7.300 gyms. This equates to a total of
still brand new and subject to change
9.3% of the German population being
However, the challenge of successful
with no market leaders or international
active in gyms, which is an increase of
positioning and the tough price
recognized businesses.
7.9% compared to 2010.
competition increases continuously for
Movetastic’s key to success in this
Revenue of Fitness Market in Germany
industry is to develop a national as well as international recognized brand. Through strategic partnerships, the company will be a first mover in the online fitness niche market and build market share on a national and international level.
x 10000
People | Opportunity | Context | Risk & Award
third year of operation.
450.000 400.000 350.000 300.000 250.000 200.000 150.000 100.000 50.000 0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Revenue 2.320.
2.750.
2.720.
2.230.
2.350.
2.030.
2.210.
2.970.
2.880.
3.430.
3.900.
4.000.
Table 8: Yearly Revenues of the German Fitness Market from 2000 to 2011
48
German Online Industry
According to NielsGronau (2012), expert
In 2012, 53.4 million Germans are
trend goes towards smaller devices as
in the sports and leisure industry at
occasionally using the Internet, which is
22% of the German Internet population
Deloitte, the increasing diversification
an increase of 9% compared to 2011 as
is now online via smartphones, which
within the industry as well as potential
seen in the figure. 81.5% of the Internet
equates to 27% of males and 20% of
substitutes to the classical fitness sports
users are male and 70.5% are female and
females. Connecting to the Internet
represent further challenges for the
the gender gap continues to decrease.
via mobile phones and smartphones
German fitness industry.
According to Van Eimeren & Frees
is especially popular among younger
(2012), the total Internet penetration
generations. 45% among the fourteen
The global debt crisis did not harm the
rate in Germany was approximately
to twenty-nine year olds use mobile
fitness industry as the signals are still
75.9% in 2012.
phones or smartphones to go online,
on growth according to the Sparkassen Finanzgruppe Branchendienst.
whereas tablet PCs are still a domain of the slightly older generation.
97% of the Internet users now live in households with a PC or laptop and the
The market for gyms is in transition due to the strong expansion of the chains.
Development of the Internet in Germany
than 20.00 Euros exert a strong pressure on prices. According to experts, those
Million
Gyms with monthly member fees of less
14%
50
12% 10%
40
gyms, which are inexpensive or come up
8%
30
with special offers, will record stronger
6%
20
growth (Sparkassen Finanzgruppe
4%
10
Branchendienst, 2011, p. 2) than those
0
relying on more traditional business models.
60
2% 2006
2007
2008
2009
2010
2011
2012
People | Opportunity | Context | Risk & Award
fitness chains and individual providers.
0%
Use of Internet 38.600.000 40.800.000 42.700.000 43.500.000 49.000.000 51.700.000 53.400.000 Growth
3%
6%
5%
2%
13%
6%
3%
Table 9: Development of the Internet in Germany from 2006 to 2012
49
German Social Media Industry Social networks such as Facebook,
Social network members mostly use
Fans and followers are highly valuable
Twitter, and newcomer Pinterest are
the services to socialize and to get
brand ambassadors as the fan-status
the most popular and the most visited
connected with family, relatives
increases the incentive of purchasing
websites in the Web.Facebook is by
and friends.
products by 41% of the respondents.
Thereby, 97% of the regular Internet
While social network users actively
users believe that social media has an
follow brands and companies,
overall positive effect on their social life.
advertising and data collection for
far the largest online social network in
People | Opportunity | Context | Risk & Award
Germany as seen in the figure below. 51% of all German Internet users (statista, 2012) are members of the
advertising purposes are however
community, which equates to
About 50% of the respondents between
22 million active Facebook users
16 and 44 years are either fan or follower
(PwC, 2012, p. 24).
of at least one brand or company.
According to a recent Pricewaterhouse
Social Network Members in Germany
Cooper (PwC, 2012) study about Social Media in Germany, social networkers start to substitute traditional
60% 50%
communication channels via
40%
social networks.
30% 20%
Furthermore, social networkers are very loyal towards their favorite network and
disapproved by the majority of users.
10% 0%
51% 27%
23%
19%
9%
6%
6%
5%
5%
3%
the interest in using parallel networks is significantly declining. Social Network Members in Germany
Table 10: Distribution of Members across Social Networks in Germany in 2012
50
Target Market
Strategic Opportunities With a further expanding and healthy
four billion Euros in revenues and the
market, an online affine user group
Internet penetration rate was 76% in
interested in movetastic’s affordable
2011, which in turn provides a clear
solution to experience sports and
target for marketing efforts in the online
an innovative way to reach this
fitness industry. There is a real need for
marketprovides a strategic sweet
movetastic’s services in Germany and in
spot for movetastic’s app.
the online world.
People | Opportunity | Context | Risk & Award
The German fitness industry made
51
Target Market
People | Opportunity | Context | Risk & Award
Behavioral Characteristics of Potential Customers
52
Primary data has been collected via a
According to the trends in the survey,
69.5% of the respondents have never
survey in order to gain more specific
46% of the respondents pay between
done classes or used online gyms
information about potential customers.
€16 and €30 for their monthly
before and 16% would definitely be
The research approach is an online
membership to a gym and 25% pay
open to use the services offered by an
survey representing a sample unit and
between €31 and €45 per month.
online gym.
instrument. The adequate sample size
However, 23% claim that regular gyms
58% said that they had never thought
is 385 responders, which can be seen in
are too expensive, which is why they
about using an online gym but would
the research process. To this date, 216
are not willing to pay monthly fees.
be open towards trying it. The most
using a questionnaire as the research
people answered the survey. Therefore,
favorite classes people would like to
the survey is not representative, but
exercise online are Yoga, Aerobics
trends can be portrayed:
and Bodypump.
Out of the 216 respondents, 80% like to exercise, but only 39% have a membership to a regular gym and 26% don’t like gyms. The main focus why people visit gyms seems to be weight lifting and 45% like to visit classes, such as Pilates, Yoga and Aerobics.
Please expand the poster below to see the full customer survey.
Your Poster is missing? Go to: www.the5designs.de/media/movetastic_sports_survey_2013.pdf
Table 11: Poster Sports Survey
People | Opportunity | Context | Risk & Award
Competitors Analysis Five direct competitors that have all
Usability
Subscription Fees
established online fitness websites in
The structure of each website and
All of the competitors have a slightly
the German market were identified and
therefore its apparent usability
different pricing structure. Customers
thoroughly analyzed by looking at the
vary greatly. Only three of the five
at FitKurs and Das Pure Leben have to
following aspects of each website:
competitors provide a filter for
pay for each video separately, which
customers who are looking for courses
is the best method for people who are
Usability of the webpage, subscription
with specific requirements. Also one of
only interested in a limited amount of
fees, special features, variety of classes,
the competitors did not have a pricing
fitness classes. However, BodyBoom,
and their social media activities. Each
structure on the website.
Fitnessraum and New Moove have a
aspect was evaluated on a scale from one to five with one being the worst, to
A potential customer has to sign up
length of the subscription. Comparing
five representing the highest grade.
before he can find out how much he
all of the competitors to movetastic’s
would have to pay. Overall, the analysis
price structure, the results show that the
The analysis highlights that each
highlights that none of the websites
company will place itself on the higher
one of the five competitors – New
have the perfect level of usability.
end of the price scale, being slightly
Moove, Das Pure Leben, Fitnessraum, FitKursandBodyBoom, have different strengths and weaknesses. However, considering all of the information of the competitors’ analysis (Appendix), Fitnessraum, New Moove and BodyBoom are movetastic’s strongest competitors, each in different aspects of the business.
54
subscription model that is based on the
higher than the average competitor.
People | Opportunity | Context | Risk & Award
Table 12: Movetastic’s Competitors Analysis
55
People | Opportunity | Context | Risk & Award
Special Features
Variety of classes
Competitive Advantage
The results of the analysis show that
The assortment of classes, as well
Movetastic will position itself as the
New Moove and Fitnessraum will be the
as the number of provided classes
market leader regarding app usability
two biggest competitors for movetastic
differs vastly from one website to the
because of the following three aspects.
regarding the diversity of special
next. Fitnessraum is the market leader
features offered.
regarding both of these points. 571
First, compared to every competitor’s
different courses in 9 categories with
app, movetastic’s solution is applicable
Both of these competitors have an
16 different instructors can be found on
on all screens and all devices.
extensive online shop providing sport
the website. On the other hand, FitKurs
accessories, books on health and
only provides 22 fitness videos.
fitness subjects and fitness DVD’s.
Second, the app makes it possible for the subscriber to access all of his
Furthermore, New Moove, Fitnessraum
Social Media Connectivity
necessary information by one click.
and BodyBoom offer a personal
Each one of the five competitors uses at
Lastly, the fitness videos have the
dashboard which records information
least one social media network. However,
highest possible resolution assuring that
about the user’s completed classes, his
none of them has integrated social
the video quality is constantly high.
training progress and next milestones.
media as vital tool for their offering. The
FitKurs and Das Pure Leben focus more
majority of websites have a Facebook
Movetastic will not be able to provide
on giving tips about a healthy diet.
button somewhere on the site but not
as many special features as New
The whole website features multiple
as prominent feature. Fitnessraum,
Moove or Fitnessraum. It will rather
blog entries about different topics
New Moove and BodyBoom have built
focus on the interactivity of its
concerning health, diet and work
a small community on Facebook but it
subscribers by providing live events,
out plans.
is evident that social media is not a big
challenges, a reward system and other
part of their company’s philosophy.
features that enhance the aspect of community building. Movetastic wants to create a community where every subscriber can share his personal experiences via multiple social network sites such as Facebook, Twitter, and Pinterest.
56
Customers will not only get more athletic by subscribing to movetastic but also create and possibly deepen old relationships that will make their user experience more fun and innovative. Regarding the variety of classes, movetastic will not be able to position
However, movetastic has one competitive advantage compared to the competitors in the market regarding the variety of classes. The company is the first online fitness group in Germany that offers Zumba classes. Zumba is a dance workout that debuted on the list of the top 20 fitness trends in 2012 (Workneh, 2011). Zumba suits perfectly as a class for an online fitness platform because it combines a full body workout with Latin American music and the customers do not need a lot of space to exercise.
People | Opportunity | Context | Risk & Award
itself as the market leader right away.
57
Marketing Mix Movetastic’s marketing mix looks at the approach in a customer-centric way. Customer value, convenience, communication, and costs are looked at from the customer’s perspective to create interactive marketing communication. This new approach allows movetastic
People | Opportunity | Context | Risk & Award
to communicate with customers, build meaningful relationships and increase brand engagement (Sales & Marketing For You, 2012).
Customer Value Focusing on customer value provides
Key Marketing Strategies
movetastic with a structure-centered
•
•
Sales Method: Movetastic raises
Key Markets: For 2013 movetastic
brand awareness through a
view around its offered service and the
concentrates on the German online
combination of an online marketing
external market from the customer’s
fitness market and in the following
campaign, viral marketing
point of view. The value provided to
year, the company plans to extend
campaigns and social media
members using movetastic’s user-
its services to the US market. In
activities. A print campaign will be
friendly app across multiple devices
2015 movetastic plans to enter the
available for movetastic’s partners
while being connected to social media
South American fitness industry via
in the fitness chain
is what defines the company in
a strategic partner.
the marketplace.
Key Marketing Vehicles
Primary Service: Movetastic offers
Movetastic follows a combination of
Key Marketing Goals
its app to be used on the Web
focus strategy and market penetration
•
A customer base of 476.000
and on all three major operating
not only to drive customer engagement,
members by the end of 2013
systems. The company will
but to also to transform new members
Generating net sales of €1.78 million
provide 44 new fitness videos in
into loyal customers and to increase
in the first year of business
the first business year to make
their activity within the app. Movetastic
Increasing brand awareness to 15%
the app available and fun to use
penetrates the market by focusing on
by the end of 2013
for everyone who previously
potential growth in the world of online
Expanding market share to 15%
lacked access to fitness classes.
advertising. Brand awareness is raised
by the end of 2014 through
Furthermore, the company is
through viral marketing campaigns and
strategic partnerships and
building up a community with the
through social media activities. Key
competitive advantage
help of social networks to be more
marketing vehicles include Social Media
involved with its customers.
Marketing, SEA, Email Marketing, and
•
• • •
Event Marketing. Further explanations can be found in the appendix.
58
People | Opportunity | Context | Risk & Award
Table 13: Movetastic’s Marketing Mix
59
Marketing Mix Communication
Communication from the customer’s perspective creates meaningful engagements and solid relationships with the company’s different kind of public groups. A good communication network, press releases, articles as well as the company’s presence in social media are promotional factors for content. The communication and emotional impact of movetastic’s strategy are an important part
People | Opportunity | Context | Risk & Award
and major factor in attracting and retaining potential customers.
Key Communication Goals
Key Communication Vehicles
Communication Network: Building
Together with movetastic’s marketing
up a good communication network
campaign its communication strategy
involving all major media players, blogs
will involve both offline and online tools.
and magazines’ editors with the highest circulation within six months of business.
up of a good network consisting of all Corporate Image: Building up a good
kinds of editors, the posting on fitness
corporate image by obtaining favorable
blogs, the appearance on trade fairs and
publicity prior to the official start of
the commitment of a testimonial for
the website.
movetastic. Further explanations can be found in the appendix.
PR: The goal of the PR strategy is not only to continuously strengthen awareness for the new product but also to build good relationships with editors of the most important newspapers, magazines and blogs. It is planned that every couple of weeks a press release announcing a new partnership, interviews etc. will be send out to important media contacts which will further distribute the company’s messages.
60
The driving vehicles will be the build
People | Opportunity | Context | Risk & Award
Table 14: Movetastic’s Communication Timeline
61
Marketing Mix Convenience
Focusing on convenience allows movetastic new ways to connect with its customer base and ensures the customer an optimum overall experience. The value of defining the marketing mix in terms of convenience creates the highest user experience for movetastic’s customers.
People | Opportunity | Context | Risk & Award
Key Convenience Goals •
•
Providing the user-friendliest app,
Short ways of navigation and low level structure of navigation to
the web and on all three major
ensure a quick understanding of
operating systems - IOS, Android
usability for the customer on the
and Windows Mobile.
website as well as in the app.
Making the app available to
•
User-related and concentrated
everyone who previously lacked
content in the application, such as
access to fitness classes anywhere
automatic synchronized dashboard
and anytime in the world.
or providing of special offers based on personal interests.
•
Focused website design to supply information for every interested customer and generate paying customers through concentrated content with no overload of messages.
•
Ensure a high readability and quality of provided content in all company communication media and products.
•
Highlight and clarify content with a sly color management.
62
•
offering a variety of classes across
Marketing Mix Cost
SEA Budget
€ 100.000,00
Live Events
€ 12.000,00
PR & Communication
€ 88.000,00
Total Marketing Budget
€ 200.000,00
The SEA Budget is estimated based
Within that range, the estimated
on Google KeywordTool and Google
average Cost per click (CPC) in
TrafficEstimator:
AdWords is €0.53 and the estimated ad rank is between one and three, thus the top positions on the
calculated to cover for 80% of the
Google Search Page.
The overall marketing and PR budget
potential coverage. 75% of the budget
covering the first business year is
will be spend for AdWords and 25%
The live events have equipment costs
€200.000. The most expensive
will be spend for the Google Display
of €500 I event. Partner Reebok
marketing activity is the SEA Campaign.
Network (GDN).
provides accommodation and trainers and gets free branding and advertising during the live events in return as all trainers wear Reebok clothing and the Reebok logo is included in the videos as well. The total costs of all events are €12.000 per annum. The remaining €88.000 of the marketing budget for the first business year are used to cover all PR, social media, and viral marketing activities which are done by movetastic itself.
People | Opportunity | Context | Risk & Award
A SEA budget of €100.000 is
Table 15: Movetastic’s SEA Budget in 2013
63
E
Risk & Reward
Scenario Analysis Movetastic reduces its exposure to risk by understanding the business environment, developing a scenario analysis and creating a realistic
People | Opportunity | Context | Risk & Award
operations plan. The risk of failure and the possibility of reward are taken into consideration in the following scenario analysis.
Table 16: Scenario Analysis for Movetastic in 2013
68
In case of the pessimistic scenario,
Due to the fact that fewer members
created three scenarios a
the company reduces its video
sign up for the app in the worst-
mean-case, which is based on a
production costs by producing
case scenario, CRM expenses
conservative approach, a best-
less videos. Instead of 44 videos
can be reduced as well. The most
case as well as a worst-case
produced per annum, the
important results and the portrayed
scenario. The mean-case scenario is
company would solely produce
outcome are summarized in the
considered to be the most realistic
22 videos to save production costs
following figure:
and is used for all assumptions.
of approximately €418.000. If the company reduces its video
The worst-case scenario portrays
production costs by 50%, the net
revenues at €361.000, a negative
income increases to €92.500, which
net income of €325.300 and a
results in a margin of 8%.
negative margin of 27%. Movetastic generates approximately 25.000 new members and €99.700 in revenues on average per month.
Summary Scenario Analysis € 2.500.000
30%
€ 2.000.000
20%
€ 1.500.000
10%
€ 1.000.000
0%
€ 500.000
-10%
€0
-20%
-€ 500.000
Revenues Net Income Margin
Best Case
Mean Case
Worst Case
Worst Case I Reduced Cost
€ 1.929.818
€ 1.785.133
€ 1.197.063
€ 1.197.063
€ 407.290
€ 262.604
-€ 325.465
€ 92.535
21%
15%
-27%
8%
People | Opportunity | Context | Risk & Award
As seen in the table, the company
-30%
Table 17: Summary Scenario Analysis
69
Scenario Analysis Risk & Reward Analysis
In the event the risks grow unfavorable, management can (and will) change the likelihood and implication of problems
People | Opportunity | Context | Risk & Award
as follows: Low Retention Rate: Reacting directly to the ratings of the users can lower the risk that people won’t reuse the fitness platform. Users have the possibility to rate their workouts, instructors and live events as well as the app in the app store. A short survey of two to three questions at the end of a workout is another way to proactively receive feedback directly from users. Table 18: Risk & Reward Analysis
are fewer to no subscribers, revenues
Risks
will decrease significantly. If there are
Product development and strategic
the risk for movetastic significantly.
fewer subscribers, less fitness videos are
partnerships are the most favorable
The main risks, which would affect
needed which reduces costs as seen in
as they provide plenty of upside
movetastic’s performance significantly,
the worst-case scenario. Furthermore,
reward while having little risk. As there
are listed below:
management will find out in form of
are only few resources engaged in
conducted market research why people
making the outsourcing happen, more
•
Low Retention Rate
investigated work can be put into the
•
Few Subscribers
penetration of new markets and the
•
Unexpected Costs
international rollout of the company
•
No Strategic Partnerships
(expertprogrammanagement, 2013). Moreover, penetrating new international markets via strategic partners reduces
70
Few Subscribers: In the event that there
are not subscribing to the service.
Unexpected Costs: A portion of the
Rewards
company’s cash flow is dedicated
The expected financial reward shows
to unexpected costs. These costs
that movetastic achieves an outstanding
are covered under “other costs” and
ROI after the fifth year of operation:
increase according to the degree of €15.184.624,00
on the market. However, the company’s
€ 1.500.000,00
operating flexibility could be impacted
= 1012% ROI
due to indebtedness. This could imply a later international rollout or a later start
Furthermore, the company is able to
of one of the partnerships.
open up new offices abroad already in the second business year and will be
No Strategic Partnerships: The
employing new people every
company’s business plan may
following year.
change significantly as the entire business model is based on strategic partnerships. Management believes that the chosen activities and strategies in terms of partnering with fitness chains are achievable in light of the current conditions taken into account the skills and background of the company and previous interviews with industry
People | Opportunity | Context | Risk & Award
internationalization and establishment
experts. However, should movetastic not be able to work with its chosen first choice of partners, the company will takeother fitness chains and players in the industry into consideration.
71
Scenario Analysis
Development, Milestones & Exit Plan
People | Opportunity | Context | Risk & Award
Long Term Company Goals & Growth Strategy Movetastic’s primary long-term
dubbed and new videos have to be
thousand Euros in year one to over 15
company goal is to be the best and
produced in English. The same will be
million Euros in year five. At the same
most subscribed to online fitness
applicable to movetastic’s expansion to
time the number of subscribers has to
company first in Germany and then
the South American market.
pass the three million mark, which would imply a sales total of over 20 million
internationally. Movetastic will start to expand to multiple international markets
Another pillar of the growth strategy
Euros. To achieve this cornerstone
in year three by creating exclusive
is to open offices in the United States
movetastic has to expand its current
partnerships with companies based in
and in South America thus working out
company size from four to at least
these prospective markets.
of three offices to be able to react to
twenty full time employees.
To achieve the overall goal, movetastic
specific market needs. Furthermore, a
will focus on four cornerstones:
new strategic partnership with music
The last cornerstone movetastic will
Location, profit, growth and service.
labels will help movetastic’s growth in
be focusing on is its customer service
In five years movetastic is planning to
two ways. First, it will reduce the video
satisfaction levels which is closely
have established itself in the United
production costs because movetastic
related to the company’s customer
States and in South America because
will not have to pay for the music the
retention rate. The Business and Market
of its partnerships with two big fitness
instructors use to teach their classes.
Intelligence unit will be conducting
companies that have gyms all across
Secondly, the possibility of listening
surveys to gain knowledge about
North and South America.
to your own personal taste of music
needs and preferences of
while doing your favorite classes will
movetastic customers.
Another factor that will help movetastic
to a certain extent raise the customers’
expand to international markets is the
satisfaction level.
72
The long-term goal for movetastic’s service satisfaction rate is 85 percent
availability of all the offered fitness classes in three different languages.
Movetastic’s profit goals are ambitious
and the churn rate should stay below
Right now, all of the instructors teach
but at the same time within reach. The
20 percent. To achieve these high
their classes in German, as soon as
income statement shows that in five
percentages in the next five years
movetastic expands to another market,
years movetastic’s net income will cross
movetastic will have to focus on its
such as the United States all of the
15 million Euros that means profits
technical support, but also on further
already existing videos will have to be
would be increasing from two hundred
developing the webpage, making
Exit Plan Movetastic will become a likely target
Movetastic’s app offers both, a
Customers have to have the feeling
for acquisition by or merger with
competitive strategic sweet spot and
that whatever problem they might be
international fitness chains due to the
new revenue streams, to fitness chains.
experiencing with the website, their
value of its app for those companies.
subscription or signing up for live
The fitness industry is growing
events, they will be helped right away
Fitness chains are profit seeking and are
worldwide and fitness chains are
without a long time delay and in an
looking for competitive advantages to
acquiring companies with new
understandable manner.
other fitness chains.
innovative ideas and services as a method of achieving and expanding
Milestones
their growth rates. In addition, the concept of movetastic is well suited for a merger with insurance companies as a method of expanding their offered services and adding value for their insureds. Movetastic’s software and app technology is also a likely target for the acquisition by sports clothing companies such as Reebok. Reebok
People | Opportunity | Context | Risk & Award
the interface even more user friendly.
and movetastic serve the same target market and Reebok is currently looking for solutions to fulfill their consumer’s demands (Abrams, 2010, p. 265).
Table 19: Movetastic’s Long Term Company Goals & Milestones
73
F
Appendix
Design
Corporate Identity Logo
As an e-business company the logo
The logo will be used in all media.
mainly will be used on technical devices.
Formal changes of the use of logo
With this in mind movetastic’s logo was
elements are only allowed in the context
created with a high legibility on displays,
of design and must be approved.
whether in large or small representation.
Appendix | Bibliography
In combination to movetastic’s
78
In harmony with the brand philosophy,
color management the logo can be
the movetastic logo is straightforward
used in the white variation on any
and simple, communicating directly and
given background colors as a help
without curlicue. It is rendered
to strengthen the recognition of
to maximize visual appeal
movetastic’s brand.
and effectiveness. The next step in the definition of our In the current phase of development our
corporate identity will be to develop an
logo is a simple, traditional word mark.
additional icon. The icon shall represent
The used font is the Gotham Book. The
and symbolizes the company on all
font ensures a high readability by its
devices. The icon will be designed so
excellent straightness.
that it can stand by itself without using written words.
22mm
Standard Version Logo
Allowable Color Variation
Smallest Allowed Representation 3mm
5mm
8mm
11mm
15mm
19mm
Design
Corporate Identity Typography
For advertisements and posters,
In general, the mixed case is preferred.
movetastic typeface the PTSans, the
The text is set to the left and clear
Gotham and the Handwritten Journal
optical axes should be respected.
is used. Depending on the context, the typography is used in white, black or in
All publications of movetastic must
one of our corporate colors.
have an excellent readability. This will
Appendix | Bibliography
be achieved by a balanced typeface, a
80
The typeface the Gotham is especially
clear visual structure of the content and
recommended for headings because
a high contrast color.
it has a high recognition value and thus significantly contributes to the appearance of movetastic’s embossed style. The journal will be primarily used for sub headlines.
Gotham Light For Headlines and regular text passages in print products. Also to use as main headline in the Website, the aAplication and furhter Online Media.
ABC
Gotham Book For Headlines and important text passages in print products. Also to use as main headline in the Website, the Application and furhter Online Media.
ABC
Gotham Medium For Headlines and important text passages in print products. Also to use as main headline in the Website, the Application and furhter Online Media.
ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 0123456789!?@$#%()&*
ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 0123456789!?@$#%()&*
ABC
ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 0123456789!?@$#%()&*
PT Sans Regular For regular text passages in the Website, the Application and further Online Media.
ABC
ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 0123456789!?@$#%()&* PT Sans Bold To use in regular text passages for highlight sections in the Website, the Application and further Online Media.
PT Sans Italic To use in regular text passages for highlight sections in the Website, the Application and further Online Media.
PT Sans Bold Italic To use in regular text passages for highlight sections in the Website, the Application and further Online Media.
ABC
ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuv wxyz 0123456789!?@$#%()&*
ABC
ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 0123456789!?@$#%()&*
ABC
ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 0123456789!?@$#%()&*
Journal Only for sub headlines in the Website, the Application or in further Online Media.
ABC
ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 0123456789!?@$#%()&*
Design
Corporate Identity Color
Movetastic has a range of four different
The variety of different colors expresses
fresh colors which express movetastic’s
the innovation and flexibility that the
diversity and dynamism plus a black
movetastic brand represents in all
range and the color white. In contrast
spheres of their activity.
Appendix | Bibliography
to companies with only a single corporate color, the four corporate
Therefore, the colors assigned for
colors are available for use on an
specific meanings are used for the color-
equal basis throughout movetastic
coding of business units or divisions. All
communications media.
movetastic course units will use one of the corporate colors, which embody the
One of the corporate colors should be incorporated into every communications medium in which color can be used as a
However, there is no fixed allocation of
design tool. However, several corporate
corporate colors. They may be used to
colors should not be positioned closely
differentiate different topics or product
together on individual items.
groups. No page should use more than two colors simultaneously.
For regular text sections a black or white color of the selected pallet will be used. It is important that the text is shown in a high contrast to the background.
84
respective activity level.
RGB: 0-0-0 RGB: 204-204-204
CMYK: 86-85-79-100
CMYK: 24-18-17-0
WEB: #000000
WEB: #cccccc
RGB: 153-153-153 CMYK: 47-37-35-1 WEB: #999999
Primary Text Color RGB: 51-51-51 RGB: 102-102-102 CMYK: 62-52-49-20 WEB: #666666
CMYK: 72-64-60-58 WEB: #333333
RGB: 211-251-255 CMYK: 19-0-3-0
RGB: 9-163-179
WEB: #d3fbff
CMYK: 77-12-27-0 WEB: #09a3b3
RGB: 179-246-253 CMYK: 31-0-5-0 WEB: #b3f6fd Primary Color RGB: 14-210-231 CMYK: 65-0-133-0 WEB: # 0ed2e7 RGB: 118-240-253 CMYK: 47-0-8-0 WEB: #76f0fd RGB: 255-169-209 CMYK: 0-46-0-0
RGB: 137-0-61
WEB: #ffa9d1
CMYK: 35-100-52-29 WEB: #89003d
RGB: 255-109-177 CMYK: 0-70-0-0 WEB: #ff6db1 Primary Color RGB: 212-2-100 CMYK: 11-98-31-0 RGB: 255-0-119 CMYK: 0-92-16-0 WEB: #ff0077
WEB: #d40264
RGB: 255-202-127 CMYK: 0-25-55-0
RGB: 148-62-0
WEB: #ffca7f
CMYK: 29-79-100-28 WEB: #943e00
RGB: 254-169-49 CMYK: 0-41-84-0 WEB: #fea931 Primary Color RGB: 216-91-0 CMYK: 10-74-100-1 RGB: 249-136-23
WEB: #d85b00
CMYK: 0-57-92-0 WEB: #f98817 RGB: 195-248-168 CMYK: 29-0-46-0
RGB: 51-128-13
WEB: #c3f8a8
CMYK: 80-25-100-9 WEB: #33800d
RGB: 161-240-122 CMYK: 42-0-67-0 WEB: #a1f07a Primary Color RGB: 70-179-16 CMYK: 72-0-100-0 RGB: 122-219-74 CMYK: 56-0-85-0 WEB: #7adb4a
WEB: #46b310
Design Website
Appendix | Bibliography
Sitemap
88
After finishing the theoretical concept, a
The second category is the user
During the creating and developing
link structure of the website in a sitemap
navigation. The navigation is used for
process of the sitemap movetastic used
was based on movetastic’s business
two things. First, new customers have
Photoshop because it was the easiest
model and the results of the research.
the possibility to sign up for movetastic
and fastest way to adapt to changes in
and second, already existing customers
content or layout.
The sitemap of the website is structured
can login into their personal account
into three categories, which all hold the
to add information or view their
same hierarchical position. Outgoing
personal profile.
from the starting page there is the main navigation with three links, which show
The last category includes further
the user the most important information.
information about the company, the
All three links are compounds to
product, the social community activities
our product.
and our support center.
Please expand the poster below to see the full sidemap.
Your Poster is missing? Go to: www.the5designs.de/media/movetastic_sitemap_website.pdf
Table 20: Movetastic’s Websites’ Sitemap
Design Website
Wireframes On the basis of movetastic’s research results of modern and current e-commerce websites, the developed sitemap and the personal experiences of movetastic’s designer in the sector of screendesign in ecommerce businesses, a first prototype of the website
Appendix | Bibliography
was build. The goal was to create wireframes with a reduced appearance and less details, so that it would be possible to change parts in a fast and flexible manner. The intention was to simulate the flow of the website and to show its functionality. The wireframe was already created based on the standard resolution of websites, which the final site will have, in order to simulate real circumstances and properly account for sizes and dimensions. The goal was the placement of buttons, to avoid unsuitable sizes of fonts and to show navigation principles. All wireframes can be seen in the User Interaction Plan on the next side.
Table 21: Startpage Wireframe of Movetastic’s Website
90
Table 242 App Promotion Wireframe of Movetastic’s Website
Appendix | Bibliography
Table 23: Pricing Wireframe of Movetastic’s Website
Table 24: User Account Wireframe of Movetastic’s Website
91
Design Website
User Interaction Plan
A user interaction plan shows the
Besides both navigation areas from the
enabled interaction between humans
sitemap, the user navigation and the
and the website on an interface. It can
main navigation are also important to
help to clarify, illuminate, enable, show
visualize page actions.
Appendix | Bibliography
relationships, bring us together, pull us apart, manage our expectations, and
The actions in the footer navigation are
give us access to services.
not implemented.
Interfaces are not monuments onto
The user interaction plan is structured
themselves. Interactions represent
into three areas: On the left hand side
the jobs on an interface and their
there is the legend. Just beneath the
effectiveness can be measured.
legend the reader can find the id action
Interactions are heavily focused on
plan, which describes what will happen
satisfying the needs and desires of the
under which action on the current page.
people who will use the product.
The third area is the actual interaction plan based on the wireframes.
To make clear which interactions exist and what can be expected from the interaction on movetastic’s interface, the most important part was to create a user interaction plan, based on movetastic’s wireframes. The user interaction plan was reduced to show the main actions on one page, instead of highlighting all possible actions. In movetastic’s case the most important actions are the ones that directly relate to the product and support center.
92
Please expand the poster below to see the full user interaction plan.
Your Poster is missing? Go to: www.the5designs.de/media/movetastic_user_interaction_website.pdf
Table 25: Movetastic’s Website’s User Interaction Plan
Design Website
Appendix | Bibliography
Layout Design The set goals for the website were to
For the background a neutral and lighter
Images of the application or images with
supply information for every interested
background color was chosen to have
an emotional statement will be used to
customer and to generate paying
a very good and high contrast with
support the text content of the website
customers. Therefore the design
movetastic’s color concept and for all
and to better draw attention to or
strategy was to create a site with
text passages and headlines. This kind
explain content.
concentrated content and no overload
of background enables the designers to
of messages.
generate attention at specific points in
Every “Call to Action” button will be
time, highlighting different features of
highlighted with a color to create
the website.
attention. Compared to the background the button will feature a high contrast
As already mentioned in the color
color. Additionally, it is helpful to
section of our corporate identity guide
support the “Call to Action” button
movetastic uses a range of four different
with the known Facebook sign up
fresh colors, which expresses the
button or any other known icons such
company’s diversity and dynamism. One
as the iOS App Store icon to generate
should never use more than two colors
further confidence.
simultaneously. Regular text sections will be written in the black color of the
The footer of the website has multiple
selected pallet.
functions. First, it is designed with the intention of restating important facts
94
The header and the footer section of
and sections of the website. Second,
the website will always feature the same
it offers new links to the potential or
design and structure. The content part
existing customers to receive more
can differ from site to site. However, it is
information. Lastly, it demonstrates all
central that the most important content
sitemap links to keep users directed and
of each site is placed of the top in the
informed once they reached the bottom
content area.
of the page.
Appendix | Bibliography
Table 27: Pricing Site of Movetastic’s Website
Table 26: Startpage of Movetastic’s Website
95
Design
Application Sitemap The application represents movetastic’s
The main interactions of the app are
The “Account” link is the last navigation
second way for customers to experience
found in the main and in the “my
of the sitemap. It shows the user all of
movetastic. Again after finishing the
move” navigation. Everything that
his personal information such as address
theoretical concept of the app, the link
has to do with the actual offering of
or payment information with the
structure of the application was put into
movetastic, such as available courses,
possibility to add or change something.
a visualized sitemap.
events and challenges, is found in the
Appendix | Bibliography
main navigation, whereas the personal Contrary to the website, the sitemap is
dashboard with the personal user
organized into six different categories.
activities and information is shown
Five of the six categories have the same
under the category “my move”.
hierarchical position; only one is superior to the others.
The search engine is the next possible navigation item, where the user can
The user experiences the first category
search for courses, events, specific
once the application starts if he is either
instructors, support topics or for friends.
not logged in or does not have an
The help button makes it easier for
account yet. The app gives the user two
users to find technical support and
options to further continue with the app.
more information about the company.
Either he has to sign up or login. If the
However, the help link will forward the
user continues with his login the next
user to movetastic’s online support
navigation layer becomes active.
center where he finds information and all necessary numbers to reach support.
96
Please expand the poster below to see the full sidemap.
Your Poster is missing? Go to: www.the5designs.de/media/movetastic_sitemap_app.pdf
Table 28: Movetastic’s Application’s Sitemap
Design
Application Wireframes The app’s prototype was also created
The prototype is able to simulate real
All wireframes can be seen in the User
to simulate the flow of the application
circumstances and properly account for
Interaction Plan in the next section.
and to show the functionality. The
sizes and dimensions. The goal was to
design and layout of the wireframes
realize the placement of the buttons, to
are designed in a way so that the
avoid unsuitable sizes of fonts and to
application can be resized for every
show navigation principles.
Appendix | Bibliography
respective device.
Table 29: „my move“ Dashboard Wireframe of Movetastic’s Application
98
Appendix | Bibliography
Table 30: Course Video Detail Wireframe of Movetastic’s Application
Table 31: Three Wireframe of Movetastic’s Application
99
Design
Application User Interaction Plan
The main goal of the user interaction
As seen in the user interaction plan of
plan, which was created on the bases
the website not all possible actions are
of the wireframes, is to highlight which
explained but rather focused on the
interactions exist and what can be
most interesting and important ones.
expected under which interaction in
The structure of the application’s user
movetastic’s interface.
interaction plan is the same than the
Appendix | Bibliography
structure of the websites’.
100
Please expand the poster below to see the full user interaction plan.
Your Poster is missing? Go to: www.the5designs.de/media/movetastic_user_interaction_app.pdf
Table 32: Movetastic’s Application’s User Interaction Plan
Design
Application
Appendix | Bibliography
Design Similar to the website design concept,
In the standard theme version the
In addition, the user has the option
the app concept‘s goal was to create
background are either color less
to set up his personal color style and
a site app with personal concentrated
and very bright. Thereby, the bright
to upload images for the lowest level
content, no overload of messages and a
colors stand in high contrast to
of background.
clear and easy navigation.
the background.
The app is organized into three areas of
The user has several options to change
action. The navigation stands for all app
the look of the app. First of all, the
related links and interactions throughout
app offers a palette of different design
the app. The navigation includes four
themes from which the user can choose.
main link chapters with each chapter having a color of its own. The different colors will be used whenever parts of the specific colors are used. The part on the right represents the social media board. It includes the user social rank in the community and an area for short news about friends activities. The third area forms the main part, where users can interact and use the app. All content, such as offered classes will be shown there.
Table 33: Login Screen of Movetastic’s Application
102
Appendix | Bibliography
Table 34: „my move“ Dashboard of Movetastic’s Application
103
Financials
Cash Flow Statements Year 2013 During the current year, revenues are
During 2013, the expenses for salaries
portrayed at €1.8 million, the company
are €123.000 in total, from which
makes a net income of €262.600 and
€100.000 are spend for IT staff and
reaches a margin of 15%. Movetastic
€23.000 are spend for CRM I Support
generates approximately 39.600 new
staff. Marketing and PR is covered
members and €148.000 in revenues on
completely by the management team,
average per month in 2013, mainly due
who does draw salaries in the first year.
to the strategic partnerships with Fitness
Appendix | Bibliography
First and AOK. Fitness First members pay the basic version (€9.90 I Month) and enjoy
120.000 €
50.000
100.000 €
40.000
80.000 €
30.000
60.000 €
20.000
40.000 €
10.000
20.000 €
all benefits of movetastic’s premium version. AOK members are able to use the basic version for free as AOK pays movetastic a monthly 10% commission fee for all new members. As seen in the cash flow statement, the company starts with twenty produced videos at costs of €380.000. Every four months, twelve new videos are produced at costs of €228.000 in order to being able to offer a broad variety of classes and to fulfill customer demands.
104
Monthly Revenues & Memberships Year 1 60.000
0
0€ M1
M2
M3
M4
M5
M6
M7
M8
M9
M10
M11
Members Basic Account
Members Premium Account
Members Fitness First
Members AOK
Revenues Basic Accounts
Revenues Premium Accounts
Revenues Fitness First
Revenues AOK
M12
Table 35: Overview of Monthly Revenues and Memberships during Year 1
M1
M2
M3
M4
M5
M6
M7
M8
M9
M10
M11
M12
Total
800
2.500
7.250
9.750
42.750
44.875
54.875
54.875
57.125
67.125
67.125
67.125
476.175
Basic
€ 2.970,00
€ 9.900,00
€ 19.800,00
€ 29.700,00
€ 44.550,00
€ 49.500,00
€ 49.500,00
€ 49.500,00
€ 49.500,00
€ 49.500,00
€ 49.500,00
€ 49.500,00
€ 453.420,00
Premium
Members
Revenues
€ 7.450,00
€ 22.350,00
€ 44.700,00
€ 67.050,00
€ 89.400,00
€ 96.850,00
€ 96.850,00
€ 96.850,00
€ 96.850,00
€ 96.850,00
€ 96.850,00
€ 96.850,00
€ 908.900,00
Fitness First
€ 0,00
€ 0,00
€ 22.275,00
€ 22.275,00
€ 22.275,00
€ 33.412,50
€ 33.412,50
€ 33.412,50
€ 55.687,50
€ 55.687,50
€ 55.687,50
€ 55.687,50
€ 389.812,50
AOK
€ 0,00
€ 0,00
€ 0,00
€ 0,00
€ 3.000,00
€ 3.000,00
€ 4.000,00
€ 4.000,00
€ 4.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 33.000,00
€ 10.420,00
€ 32.250,00
€ 86.775,00
€ 119.025,00
€ 159.225,00
€ 182.762,50
€ 183.762,50
€ 183.762,50
€ 206.037,50
€ 207.037,50
€ 207.037,50
€ 207.037,50
€ 1.785.132,50
Total Revenues
Expenses Startup Costs
€ 50.000,00
IT Operations
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 200.004,00
€ 4.167,00
€ 4.167,00
€ 4.167,00
€ 4.167,00
€ 4.167,00
€ 4.167,00
€ 4.167,00
€ 4.167,00
€ 4.167,00
€ 4.167,00
€ 4.167,00
€ 4.167,00
€ 50.004,00
€ 16.666,00
€ 16.666,00
€ 16.666,00
€ 16.666,00
€ 16.666,00
€ 16.666,00
€ 16.666,00
€ 16.666,00
€ 16.666,00
€ 16.666,00
€ 16.666,00
€ 16.666,00
€ 200.000,00
CRM Marketing / PR Video Production
€ 50.000,00
€ 380.000,00
€ 228.000,00
€ 228.000,00
€ 836.000,00
Salaries
€ 10.300,00
€ 10.300,00
€ 10.300,00
€ 10.300,00
€ 10.300,00
€ 10.300,00
€ 10.300,00
€ 10.300,00
€ 10.300,00
€ 10.300,00
€ 10.300,00
€ 10.300,00
€ 123.600,00
Employee Benefits
€ 2.060,00
€ 2.060,00
€ 2.060,00
€ 2.060,00
€ 2.060,00
€ 2.060,00
€ 2.060,00
€ 2.060,00
€ 2.060,00
€ 2.060,00
€ 2.060,00
€ 2.060,00
€ 24.720,00
Professional Services
€ 10.000,00
Rent
€ 1.000,00
Insurance
€ 1.800,00
Other Expenses
€ 10.000,00 € 1.000,00
€ 1.000,00
€ 1.000,00
€ 1.000,00
€ 1.000,00
€ 1.000,00
€ 1.000,00
€ 1.000,00
€ 1.000,00
€ 1.000,00
€ 1.000,00
€ 12.000,00 € 1.800,00
€ 1.200,00
€ 1.200,00
€ 1.200,00
€ 1.200,00
€ 1.200,00
€ 1.200,00
€ 1.200,00
€ 1.200,00
€ 1.200,00
€ 1.200,00
€ 1.200,00
€ 1.200,00
€ 14.400,00
Total Expenses
€ 493.860,67
€ 52.060,67
€ 52.060,67
€ 52.060,67
€ 280.060,67
€ 52.060,67
€ 52.060,67
€ 52.060,67
€ 280.060,67
€ 52.060,67
€ 52.060,67
€ 52.060,67
€ 1.522.528,04
Net Operating Income
-€ 483.440,67
-€ 19.810,00
€ 34.714,33
€ 66.964,33
-€ 120.835,00
€ 130.701,83
€ 131.701,00
€ 131.701,00
-€ 74.023,00
€ 154.976,00
€ 154.976,00
€ 154.976,00
€ 262.604,00
Table 36: Cash Flow Statement Year 1
Financials
Please open
Appendix | Bibliography
Cash Flow Statements Year 2014 During the second business year,
During 2014, the expenses for salaries
revenues are portrayed at €3 million, the
are €546.8000 in total, from which
company makes a net income of €1.9
€200.000 are spend for IT staff and
million and reaches a margin of 43%.
€93.600 are spend for CRM I Support
Movetastic generates approximately
staff. Marketing and PR salaries are
71.388 new members and €249.000 in
€109.000 as an international Marketing
revenues on average per month in 2014.
I PR team is necessary to cover the
This significant increase in members
international rollout. The management
as well as revenues results in the
team draws salaries for the first time in
continuous penetration of the European
2014, €144.000 in total.
market and the international expansion to the US market in 2014. Life Time Fitness members enjoy the same pricing conditions as Fitness First members. As seen in the cash flow statement, the company starts with twenty produced videos at costs of €400.000 in year 2. Video production costs move up to €20.000 per video due to the fact that each video is bilingual, German and English. Every four months, twelve new videos are produced at costs of €315.000.
106
Monthly Revenues & Memberships Year 2 60.000
120.000 €
50.000
100.000 €
40.000
80.000 €
30.000
60.000 €
20.000
40.000 €
10.000
20.000 €
0
0€ M13
M14
M15
M16
M17
M18
M19
M20
M21
M22
M23
Members Basic Account
Members Premium Account
Members Fitness First
Members AOK
Members Life Time Fitness
Revenues Premium Accounts
Revenues Basic Accounts
Revenues Fitness First
Revenues AOK
Revenues Life Time Fitness
M24
Table 37: Overview of Monthly Revenues and Memberships during Year 2
M13
M14
M15
M16
M17
M18
M19
M20
M21
M22
M23
M24
Total
53.042
53.042
53.042
58.675
59.883
59.883
84.200
84.200
85.408
88.225
88.225
88.225
856.050
Basic
€ 59.400,00
€ 59.400,00
€ 59.400,00
€ 59.400,00
€ 59.400,00
€ 59.400,00
€ 64.350,00
€ 64.350,00
€ 64.350,00
€ 64.350,00
€ 64.350,00
€ 64.350,00
€ 742.500,00
Premium
€ 104.300,00
€ 104.300,00
€ 104.300,00
€ 104.300,00
€ 104.300,00
€ 104.300,00
€ 119.200,00
€ 119.200,00
€ 119.200,00
€ 119.200,00
€ 119.200,00
€ 119.200,00
€ 1.341.000,00
Fitness First
€ 59.815,80
€ 59.815,80
€ 59.815,80
€ 59.815,80
€ 71.775,00
€ 71.775,00
€ 71.775,00
€ 71.775,00
€ 83.734,20
€ 83.734,20
€ 83.734,20
€ 83.734,20
€ 861.300,00
AOK
€ 3.400,00
€ 3.400,00
€ 3.400,00
€ 3.400,00
€ 3.400,00
€ 3.400,00
€ 5.400,00
€ 5.400,00
€ 5.400,00
€ 5.400,00
€ 5.400,00
€ 5.400,00
€ 52.800,00
€ 5.633,00
€ 5.633,00
€ 5.633,00
€ 8.450,00
€ 8.450,00
€ 8.450,00
€ 11.267,00
€ 11.267,00
€ 11.267,00
€ 76.050,00
Members
Revenues
Lifetime Fitness Total Revenues
€ 226.915,80
€ 226.915,80
€ 226.915,80
€ 232.548,80
€ 244.508,00
€ 244.508,00
€ 269.175,00
€ 269.175,00
€ 281.134,20
€ 283.951,20
€ 283.951,20
€ 283.951,20
€ 3.073.650,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 300.000,00
CRM
€ 8.333,00
€ 8.333,00
€ 8.333,00
€ 8.333,00
€ 8.333,00
€ 8.333,00
€ 8.333,00
€ 8.333,00
€ 8.333,00
€ 8.333,00
€ 8.333,00
€ 8.333,00
€ 99.996,00
Marketing / PR
€ 41.666,67
€ 41.666,67
€ 41.666,67
€ 41.666,67
€ 41.666,67
€ 41.666,67
€ 41.666,67
€ 41.666,67
€ 41.666,67
€ 41.666,67
€ 41.666,67
€ 41.666,67
€ 500.000,00
Expenses IT Operations
Video Production Salaries Employee Benefits
€ 400.000,00
€ 240.000,00
€ 240.000,00
€ 880.000,00
€ 45.566,67
€ 45.566,67
€ 45.566,67
€ 45.566,67
€ 45.566,67
€ 45.566,67
€ 45.566,67
€ 45.566,67
€ 45.566,67
€ 45.566,67
€ 45.566,67
€ 45.566,67
€ 546.800,00
€ 9.113,33
€ 9.113,33
€ 9.113,33
€ 9.113,33
€ 9.113,33
€ 9.113,33
€ 9.113,33
€ 9.113,33
€ 9.113,33
€ 9.113,33
€ 9.113,33
€ 9.113,33
€ 109.360,00
Professional Services
€ 20.000,00
Office Supply
€ 30.000,00
Rent
€ 5.000,00
Insurance
€ 3.600,00
€ 10.000,00
€ 30.000,00 € 30.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 60.000,00 € 3.600,00
Other Expenses
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 60.000,00
Total Expenses
€ 593.279,67
€ 139.679,67
€ 139.679,67
€ 139.679,67
€ 379.679,67
€ 139.679,67
€ 149.679,67
€ 139.679,67
€ 379.679,67
€ 139.679,67
€ 139.679,67
€ 139.679,67
€ 2.619.756,00
-€ 366.363,87
€ 87.236,13
€ 87.236,13
€ 92.869,13
-€ 135.171,67
€ 104.828,33
€ 119.495,33
€ 129.495,33
-€ 98.545,47
€ 144.271,53
€ 144.271,53
€ 144.271,53
€ 453.894,00
Net Operating Income
Table 28: Cash Flow Statement Year 2
Financials
Please open
Appendix | Bibliography
Cash Flow Statements Year 2015 During the third business year, revenues
During 2015, the expenses for salaries
are portrayed at €6.4 million, the
are €898.000 in total, from which
company makes a net income of €6.2
€220.000 are spend for IT staff and
million and reaches a margin of 60%.
€120.000 are spend for CRM I Support
Movetastic generates approximately
staff. Marketing and PR salaries move
106.000 new members and €536.000
up to €150.000 to cover staff for all
in revenues on average per month in
necessary marketing and PR activities in
2015. Members and revenues increase
Europe and America. The management
significantly in 2015 as the company
team’s salaries increase to a total of
pushes the international rollout and
€408.000 in 2015.
partners with another US franchise, Lady of America, to penetrate the US market and enter the South American market.
Monthly Revenues & Memberships Year 3 70.000
180.000 € 160.000 €
60.000
As seen in the cash flow statement, the company starts with twenty produced videos at costs of €420.000 in the New Year. Video production costs move up to €21.000 per video due to the fact that each video is now available in three languages German, English and Spanish. Every four months, twelve new videos are produced at costs of €318.000.
140.000 € 50.000
120.000 €
40.000
100.000 €
30.000
80.000 € 60.000 €
20.000
40.000 € 10.000
20.000 €
0
0€ M25
M26
M27
M28
M29
M30
M31
M32
M33
M34
M35
M36
Members Basic Account
Members Premium Account
Members Fitness First
Members AOK
Members Life Time Fitness
Members Lady of America
Revenues Basic Accounts
Revenues Premium Accounts
Revenues Fitness First
Revenues AOK
Revenues Life Time Fitness
Revenues Lady of America
Table 39: Overview of Monthly Revenues and Memberships during Year 3
108
M25
M26
M27
M28
M29
M30
M31
M32
M33
M34
M35
M36
Total
93.375
93.375
93.375
101.708
104.583
104.583
111.750
111.750
111.750
115.917
115.917
115.917
1.274.000
Basic
€ 69.300,00
€ 69.300,00
€ 69.300,00
€ 69.300,00
€ 69.300,00
€ 69.300,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 861.300,00
Premium
€ 126.650,00
€ 126.650,00
€ 126.650,00
€ 126.650,00
€ 126.650,00
€ 126.650,00
€ 134.100,00
€ 134.100,00
€ 134.100,00
€ 134.100,00
€ 134.100,00
€ 134.100,00
€ 1.564.500,00
Fitness First
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 891.000,00
AOK
€ 5.600,00
€ 5.600,00
€ 5.600,00
€ 5.600,00
€ 5.600,00
€ 5.600,00
€ 5.800,00
€ 5.800,00
€ 5.800,00
€ 5.800,00
€ 5.800,00
€ 5.800,00
€ 68.400,00
Lifetime Fitness
€ 142.312,50
€ 142.312,50
€ 142.312,50
€ 142.312,50
€ 170.775,00
€ 170.775,00
€ 170.775,00
€ 170.775,00
€ 170.775,00
€ 170.775,00
€ 170.775,00
€ 170.775,00
€ 1.935.450,00
€ 82.496,70
€ 82.496,70
€ 82.496,70
€ 123.750,00
€ 123.750,00
€ 123.750,00
€ 165.003,30
€ 165.003,30
€ 165.003,30
€ 1.113.750,00
Members
Revenues
Lady of America Total Revenues
€ 418.112,50
€ 418.112,50
€ 418.112,50
€ 500.609,20
€ 529.071,70
€ 529.071,70
€ 582.925,00
€ 582.925,00
€ 582.925,00
€ 624.178,30
€ 624.178,30
€ 624.178,30
€ 6.434.400,00
IT Operations
€ 50.000,00
€ 50.000,00
€ 50.000,00
€ 50.000,00
€ 50.000,00
€ 50.000,00
€ 50.000,00
€ 50.000,00
€ 50.000,00
€ 50.000,00
€ 50.000,00
€ 50.000,00
€ 600.000,00
CRM
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 120.000,00
Marketing / PR
€ 83.333,33
€ 83.333,33
€ 83.333,33
€ 83.333,33
€ 83.333,33
€ 83.333,33
€ 83.333,33
€ 83.333,33
€ 83.333,33
€ 83.333,33
€ 83.333,33
€ 83.333,33
€ 1.000.000,00
Expenses
Video Production
€ 420.000,00
€ 315.000,00
€ 315.000,00
€ 1.050.000,00
Salaries
€ 74.833,00
€ 74.833,00
€ 74.833,00
€ 74.833,00
€ 74.833,00
€ 74.833,00
€ 74.833,00
€ 74.833,00
€ 74.833,00
€ 74.833,00
€ 74.833,00
€ 74.833,00
€ 897.996,00
Employee Benefits
€ 14.966,60
€ 14.966,60
€ 14.966,60
€ 14.966,60
€ 14.966,60
€ 14.966,60
€ 14.966,60
€ 14.966,60
€ 14.966,60
€ 14.966,60
€ 14.966,60
€ 14.966,60
€ 179.599,20
Professional Services
€ 30.000,00
Office Supply
€ 50.000,00
Rent
€ 5.000,00
€ 20.000,00
€ 50.000,00 € 50.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 5.000,00
€ 60.000,00
Insurance
€ 6.000,00
Other Expenses
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 10.000,00
€ 120.000,00
Total Expenses
€ 754.132,93
€ 248.132,93
€ 248.132,93
€ 248.132,93
€ 563.132,93
€ 248.132,93
€ 268.132,93
€ 248.132,93
€ 563.132,93
€ 248.132,93
€ 248.132,93
€ 248.132,93
€ 4.133.595,20
-€ 336.020,43
€ 169.979,57
€ 169.979,57
€ 252.476,27
-€ 34.061,23
€ 280.938,77
€ 314.792,07
€ 334.792,07
€ 19.792,07
€ 376.045,37
€ 376.045,37
€ 376.045,37
€ 2.300.804,80
Net Operating Income
€ 6.000,00
Table 40: Cash Flow Statement Year 3
Financials
Please open
Appendix | Bibliography
Cash Flow Statements Year 2016 During the fourth business year,
During 2016, the expenses for salaries
revenues are portrayed at €7.8 million,
are €1 million in total, from which
the company makes a net income of €10
€250.000 are spend for IT staff and
million and reaches a margin of 62%.
€150.000 are spend for CRM I Support
Movetastic generates approximately
staff. Marketing and PR salaries move up
121.300 new members and €658.000
to €200.000 to cover staff necessary
in revenues on average per month in
for all marketing and PR activities in
2016. Members and revenues increase
Europe and America. There is no raise in
significantly in 2016 because movetastic
management salaries in 2016.
further increases its penetration on the North and South American markets. As seen in the cash flow statement, the company starts with twenty-two produced videos at costs of €352.000 in the New Year. Video production costs are reduced to €16.000 per video as movetastic partners with the sports clothing company Reebok. Part of the strategic partnership with Reebok is to use their studios and fitness trainers to produce the videos and in return Reebok receives free promotion in the videos and on movetastic’s website. Due to the reduced production costs, the company can launch a set of fifteen new videos every three months at costs of €228.999. Therefore, movetastic now produces 67 new videos instead of 44 videos per annum.
110
Monthly Revenues & Memberships Year 4 70.000
250.000 €
60.000
200.000 €
50.000 150.000 €
40.000 30.000
100.000 €
20.000 50.000 €
10.000 0
0€ M37
M38
M39
M40
M41
M42
M43
M44
M45
M46
M47
M48
Members Basic Account
Members Premium Account
Members Fitness First
Members AOK
Members Life Time Fitness
Members Lady of America
Revenues Basic Accounts
Revenues Premium Accounts
Revenues Fitness First
Revenues AOK
Revenues Life Time Fitness
Revenues Lady of America
Table 41: Overview of Monthly Revenues and Memberships during Year 4
M37
M38
M39
M40
M41
M42
M43
M44
M45
M46
M47
M48
Total
120.067
120.067
120.067
120.067
120.067
120.067
122.592
122.592
122.592
122.592
122.592
122.592
1.455.954
Basic
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 74.250,00
€ 891.000,00
Premium
€ 134.100,00
€ 134.100,00
€ 134.100,00
€ 134.100,00
€ 134.100,00
€ 134.100,00
€ 134.100,00
€ 134.100,00
€ 134.100,00
€ 134.100,00
€ 134.100,00
€ 134.100,00
€ 1.609.200,00
Fitness First
€ 74.745,00
€ 74.745,00
€ 74.745,00
€ 74.745,00
€ 74.745,00
€ 74.745,00
€ 74.745,00
€ 74.745,00
€ 74.745,00
€ 74.745,00
€ 74.745,00
€ 74.745,00
€ 896.940,00
Members
Revenues
€ 6.000,00
€ 6.000,00
€ 6.000,00
€ 6.000,00
€ 6.000,00
€ 6.000,00
€ 6.000,00
€ 6.000,00
€ 6.000,00
€ 6.000,00
€ 6.000,00
€ 6.000,00
€ 72.000,00
Lifetime Fitness
AOK
€ 173.250,00
€ 173.250,00
€ 173.250,00
€ 173.250,00
€ 173.250,00
€ 173.250,00
€ 173.250,00
€ 173.250,00
€ 173.250,00
€ 173.250,00
€ 173.250,00
€ 173.250,00
€ 2.079.000,00
Lady of America
€ 183.318,30
€ 183.318,30
€ 183.318,30
€ 183.318,30
€ 183.318,30
€ 183.318,30
€ 208.315,80
€ 208.315,80
€ 208.315,80
€ 208.315,80
€ 208.315,80
€ 208.315,80
€ 2.349.804,60
Total Revenues
€ 645.663,30
€ 645.663,30
€ 645.663,30
€ 645.663,30
€ 645.663,30
€ 645.663,30
€ 670.660,80
€ 670.660,80
€ 670.660,80
€ 670.660,80
€ 670.660,80
€ 670.660,80
€ 7.897.944,60
IT Operations
€ 66.667,00
€ 66.667,00
€ 66.667,00
€ 66.667,00
€ 66.667,00
€ 66.667,00
€ 66.667,00
€ 66.667,00
€ 66.667,00
€ 66.667,00
€ 66.667,00
€ 66.667,00
€ 800.004,00
CRM
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 16.667,00
€ 200.004,00
Marketing / PR
€ 208.334,00
€ 208.334,00
€ 208.334,00
€ 208.334,00
€ 208.334,00
€ 208.334,00
€ 208.334,00
€ 208.334,00
€ 208.334,00
€ 208.334,00
€ 208.334,00
€ 208.334,00
€ 2.500.008,00
Video Production
€ 352.000,00
Salaries
€ 84.000,00
€ 84.000,00
€ 84.000,00
€ 84.000,00
€ 84.000,00
€ 84.000,00
Employee Benefits
€ 16.800,00
€ 16.800,00
€ 16.800,00
€ 16.800,00
€ 16.800,00
€ 16.800,00
Professional Services
€ 50.000,00
Office Supply
€ 30.000,00
Rent
€ 15.000,00
Insurance
€ 8.000,00
Expenses
€ 240.000,00
€ 240.000,00
€ 240.000,00
€ 1.072.000,00
€ 84.000,00
€ 84.000,00
€ 84.000,00
€ 84.000,00
€ 84.000,00
€ 84.000,00
€ 1.008.000,00
€ 16.800,00
€ 16.800,00
€ 16.800,00
€ 16.800,00
€ 16.800,00
€ 16.800,00
€ 201.600,00
€ 40.000,00
€ 90.000,00 € 30.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 180.000,00 € 8.000,00
Other Expenses
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 300.000,00
Total Expenses
€ 872.468,00
€ 432.468,00
€ 432.468,00
€ 672.468,00
€ 432.468,00
€ 432.468,00
€ 712.468,00
€ 432.468,00
€ 432.468,00
€ 672.468,00
€ 432.468,00
€ 432.468,00
€ 6.389.616,00
-€ 226.804,70
€ 213.195,30
€ 213.195,30
-€ 26.804,70
€ 213.195,30
€ 213.195,30
-€ 41.807,20
€ 238.192,80
€ 238.192,80
-€ 1.807,20
€ 238.192,80
€ 238.192,80
€ 1.508.328,60
Net Operating Income
Table 42: Cash Flow Statement Year 4
Financials
Cash Flow Statements Year 2017 During the fifth business year, revenues are portrayed at €8.9 million, the
300.000 €
company makes a net income of €15
60.000
250.000 €
million and reaches a margin of 67%.
50.000
Movetastic generates approximately
40.000
134.000 new members and €749.000 in revenues on average per month in 2017. As seen in the cash flow statement, the
Please open
Appendix | Bibliography
company continues with twenty-two produced videos at costs of €352.000 in the New Year. Movetastic is now able to launch a set of twenty-two new videos every three months and produces 88 new videos per annum. During 2017, the expenses for salaries are €1.3 million in total, from which €300.000 are spend for IT staff and €220.000 are spend for CRM I Support staff. Marketing and PR salaries move up to €350.000 to cover international marketing and PR staff. There is no raise in management salaries in 2017.
112
Monthly Revenues & Memberships Year 5 70.000
200.000 € 150.000 €
30.000
100.000 €
20.000
50.000 €
10.000 0
0€ M49
M50
M51
M52
M53
M54
M55
M56
M57
M58
M59
M60
Members Basic Account
Members Premium Account
Members Fitness First
Members AOK
Members Life Time Fitness
Members Lady of America
Revenues Basic Accounts
Revenues Premium Accounts
Revenues Fitness First
Revenues AOK
Revenues Life Time Fitness
Revenues Lady of America
Table 43: Overview of Monthly Revenues and Memberships during Year 5
M49
M50
M51
M52
M53
M54
M55
M56
M57
M58
M59
M60
Total
134.000
134.000
134.000
134.000
134.000
134.000
134.000
134.000
134.000
134.000
134.000
134.000
1.608.000
Basic
€ 79.200,00
€ 79.200,00
€ 79.200,00
€ 79.200,00
€ 79.200,00
€ 79.200,00
€ 79.200,00
€ 79.200,00
€ 79.200,00
€ 79.200,00
€ 79.200,00
€ 79.200,00
€ 950.400,00
Premium
€ 149.000,00
€ 149.000,00
€ 149.000,00
€ 149.000,00
€ 149.000,00
€ 149.000,00
€ 149.000,00
€ 149.000,00
€ 149.000,00
€ 149.000,00
€ 149.000,00
€ 149.000,00
€ 1.788.000,00
Fitness First
€ 81.675,00
€ 81.675,00
€ 81.675,00
€ 81.675,00
€ 81.675,00
€ 81.675,00
€ 81.675,00
€ 81.675,00
€ 81.675,00
€ 81.675,00
€ 81.675,00
€ 81.675,00
€ 980.100,00
AOK
€ 6.400,00
€ 6.400,00
€ 6.400,00
€ 6.400,00
€ 6.400,00
€ 6.400,00
€ 6.400,00
€ 6.400,00
€ 6.400,00
€ 6.400,00
€ 6.400,00
€ 6.400,00
€ 76.800,00
Lifetime Fitness
€ 178.200,00
€ 178.200,00
€ 178.200,00
€ 178.200,00
€ 178.200,00
€ 178.200,00
€ 178.200,00
€ 178.200,00
€ 178.200,00
€ 178.200,00
€ 178.200,00
€ 178.200,00
€ 2.138.400,00
Lady of America
€ 254.925,00
€ 254.925,00
€ 254.925,00
€ 254.925,00
€ 254.925,00
€ 254.925,00
€ 254.925,00
€ 254.925,00
€ 254.925,00
€ 254.925,00
€ 254.925,00
€ 254.925,00
€ 3.059.100,00
Total Revenues
€ 749.400,00
€ 749.400,00
€ 749.400,00
€ 749.400,00
€ 749.400,00
€ 749.400,00
€ 749.400,00
€ 749.400,00
€ 749.400,00
€ 749.400,00
€ 749.400,00
€ 749.400,00
€ 8.992.800,00
€ 100.000,00
€ 100.000,00
€ 100.000,00
€ 100.000,00
€ 100.000,00
€ 100.000,00
€ 100.000,00
€ 100.000,00
€ 100.000,00
€ 100.000,00
€ 100.000,00
€ 100.000,00
€ 1.200.000,00
€ 20.834,00
€ 20.834,00
€ 20.834,00
€ 20.834,00
€ 20.834,00
€ 20.834,00
€ 20.834,00
€ 20.834,00
€ 20.834,00
€ 20.834,00
€ 20.834,00
€ 20.834,00
€ 250.008,00
Marketing / PR
€ 250.000,00
€ 250.000,00
€ 250.000,00
€ 250.000,00
€ 250.000,00
€ 250.000,00
€ 250.000,00
€ 250.000,00
€ 250.000,00
€ 250.000,00
€ 250.000,00
€ 250.000,00
€ 3.000.000,00
Video Production
€ 352.000,00
Salaries
Members
Revenues
Expenses IT Operations CRM
€ 352.000,00
€ 352.000,00
€ 352.000,00
€ 1.408.000,00
€ 106.500,00
€ 106.500,00
€ 106.500,00
€ 106.500,00
€ 106.500,00
€ 106.500,00
€ 106.500,00
€ 106.500,00
€ 106.500,00
€ 106.500,00
€ 106.500,00
€ 106.500,00
€ 1.278.000,00
Employee Benefits
€ 21.300,00
€ 21.300,00
€ 21.300,00
€ 21.300,00
€ 21.300,00
€ 21.300,00
€ 21.300,00
€ 21.300,00
€ 21.300,00
€ 21.300,00
€ 21.300,00
€ 21.300,00
€ 255.600,00
Professional Services
€ 80.000,00
€ 80.000,00
Office Supply
€ 30.000,00
€ 30.000,00
Rent
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 15.000,00
€ 180.000,00
Insurance
€ 8.000,00
Other Expenses
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 25.000,00
€ 300.000,00
€ 8.000,00
Total Expenses
€ 1.008.634,00
€ 538.634,00
€ 538.634,00
€ 890.634,00
€ 538.634,00
€ 538.634,00
€ 890.634,00
€ 538.634,00
€ 538.634,00
€ 890.634,00
€ 538.634,00
€ 538.634,00
€ 7.989.608,00
Net Operating Income
-€ 259.234,00
€ 210.766,00
€ 210.766,00
-€ 141.234,00
€ 210.766,00
€ 210.766,00
-€ 141.234,00
€ 210.766,00
€ 210.766,00
-€ 141.234,00
€ 210.766,00
€ 210.766,00
€ 1.003.192,00
Table 44: Cash Flow Statement Year 5
Marketing Research Process Marketing research is used to gain insights into customer motivations, purchase behavior, satisfaction and what they find appealing. The marketing research process consists of the following four steps:
Please open
Appendix | Bibliography
Table 45: Marketing Research Process
Problem Definition Movetastic is an online fitness platform,
consumers and what market potential
which can be used as an app across
a virtual gym has. The proposed
proposed new virtual gym: Would
multiple devices such as laptops, tablets,
research calls for the following specific
they be open to complete courses
smartphones and smart TVs. Movetastic
information:
and classes in front of a laptop or
gives its customers the opportunity to
•
other mobile devices?
Consumer reactions to the
exercise wherever and whenever they
lifestyle characteristics of people
want. All of the offered fitness classes
who like to exercise.
The objective of descriptive research
Characteristics and usage patterns
suits best movetastic’s needs
besides enough space to move to the
of people who like to exercise
as it is used to describe market
teachers’ instructions.
and whether or not they have
potentials for new products as well
a membership to a gym. It is
as the demographics and attitudes
The business idea is to introduce an
important to find out more about
of consumers.
online fitness platform that can be used
people’s main purpose to go
do not require any additional equipment
•
to gyms.
across multiple devices. Once logged in the app, customers can exercise
114
The demographic, economic and
•
•
The amount of people who have
wherever and whenever they want while
a membership to a gym and
being connected to social media.
vice versa. It is also important to
Therefore it is essential, to find out how
find out why people do not have
relevant such an app could be for
a membership.
Marketing Research Process Developing the Research Plan Next to gathering secondary data
According to Armstrong & Kotler (2010),
The most obvious advantage though
from selected external sources,
the Internet is extremely well suited to
is that respondents who are used to
movetastic also collected primary
collect data and put marketing surveys
the Internet are reached exactly where
data for more specific information.
to practice. Online surveys are not only
they are - online. The strengths and
The research approach is an online
cheaper and faster; the distribution is
weaknesses of this online contact
survey representing a sample unit,
also a lot easier.
method are analyzed in the graphic below:
by using a questionnaire as the research instrument.
•
Control of Sample
•
Flexibility
•
Speed of Data Collection
•
Quantity of Data
•
Cost
Fair •
Control of Interviewer Effects
Appendix | Bibliography
Good
Excellent
Table 46: Strengths and Weaknesses of Online Contact Method
Studying a nonprobability convenience sample of the total consumer population draws conclusions. In order to have a
The adequate sample size is therefore
Sample size:
385 responders. To this date, 216 people
n= z²*π*(1-π)
answered the survey. Therefore, the
E²
survey is not representative, but trends
representative sample, the following formula is adopted:
n= 1,96²*0,5*(1-0,5) 0.05²
= 385
can be portrayed:
115
Marketing Research Process Implementing the Research Plan
For the creation and distribution of the online survey, the free tool thesistools.com is used. The survey was online from October 18th, 2012 untill January 23rd, 2013 and distributed across social media, the mhmk email list and a variety of online sports bulletin boards.
Appendix | Bibliography
Interpretation of the Findings 80% of the 216 respondents like to
69% of the respondents have never
This skepticism is an important
exercise in general and 20% do not. 61%
used an online gym before, 31% have
fact movetastic has to take into
already have a membership to a gym.
tried one out and 57% said they never
consideration when planning its
39% of the respondents do not have
thought about attending classes online.
marketing and PR strategy. Educational
a membership to a gym. Out of these
However, only 16% of the respondents
advertising and information are crucial
61%, 24 said they do not have the time
would actually be open to try it out and
to overcome people’s skepticism about
and 31 find gyms too expensive. 39
27% said they do not want to use such
this new service.
respondents prefer outdoor sports and
an offered service.
34 do not like gyms. The majority of respondents pays between â‚Ź16 and â‚Ź30 per month for their membership and mainly focuses on weight lifting when working out (38 respondents). 23 respondents do cardio workouts and only 21 attend the classes offered in their gyms. Yoga, Pilates and Zumba are the favorite classes, people seem to attend in regular gyms, while Yoga, Aerobics and Bodypump are the classes the respondents could most likely imagine doing online.
116
Industry Structure Analysis Macro Environmental Factors Environmental factors the company has
In order to obtain a statistically
Trends in Social Media were analyzed
to take into considerationare analyzed
significant sample for the ARD/ZDF
with the help of the survey Social Media
with the aid of a market analysis. The
Online-Survey 2012, 2.571 German-
Deutschland ‘the winner takes it all’ by
following industrial analysis is based
speaking people from age 14 onwards
PricewaterhouseCoopers (PwC, 2012).
on a survey of the German television
were called in Germany. 1.800 complete
1.000 regular users of social networks
channels ARD and ZDF, which analyzes
interviews were carried out with a
were asked in February 2012 about
the use of Internet for the last 15 years.
response rate of 70%. All interviews
their attitude towards social media.
were conducted on the telephone.
Participants who use the Internet less
The market research institution Enigma
than three times a week were excluded The German fitness industry is analyzed
as well as participants who use social
in charge of the methodology advice
with the help of data from the DSSV
networks occasionally or rarely ever.
and assistance, the accomplishment
(Arbeitgeberverbanddeutscher
of conducting the interviews and the
Fitness- und Gesundheits-Anlagen).
analysis of the outcomes. The data
The DSSV in corporation with consulting
acquisition of the current survey took
agency Deloitte analyzes the current
place between February 23rd and April
and significant developments in the
5th, 2012. The survey is designed as
fitness industry.
a long-term study and uses constant standard components, allowing a
Appendix | Bibliography
GfKMedien- und Marketingforschung is
comparison from the beginning of the Web development to the present day.
117
Demographic Environment The analysis of demographic
In 2060, 14% of the German population
a significant increase in life expectancy,
environmental factors is focused on size
will be 80 years or older, which equates
and a high immigration balance from
and structure of the German population
to one in seven individuals. To sum
abroad (plus 200.000 individuals from
as well as direction of the trend.
up, there is a significant decline in the
2020 onwards), will only reduce the
German population assumed. Even an
decline in the German population but
Aging of Society
increase in the birthrate to an average of
not stop it (bpb, 2012).
The aging of society is an important
1.6 children per woman by 2025,
development in Germany. Due to the constantly increasing life expectancy
Development of German Population
changes in the relationship between the younger and older generations are expected in Germany. The proportion of individuals under twenty years of age decreased between
Million
Appendix | Bibliography
and the continuing low birth rate, drastic 84 82 80 78 76 74 72 70 68 66 64 1960
1960 and 2010 from 28.4 % to 18.4 % and
1970
1980
vice versa the proportion of individuals
2020
2030
2060
Development of Population - Age Specific
In Germany, the number of individuals who are 80 years and older will rise from
70,0%
4.3 million in 2011 to 10.2 million in 2050
60,0% 50,0% 40,0% 30,0%
the projections of populations of
20,0%
the Federal Statistical Office
10,0%
(Statistisches Bundesamt).
2010
Table 47: Development of German Population from 1960 to 2060
from 17.4% to 26.3%.
people from 2014 onwards according to
2000
German Population
who are sixty years and older increased
with a migration balance of 100.000 plus
1990
0,0% 1960
1970
1980
1990 >20 years
2000
2010 20-60 years
2020
2030
2040
2050
2060
<60 years
Table 48: Development of German Population from 1960 to 20160 Separated in Age Groups
118
German Fitness Industry More and more people in Germany realize the importance of fitness. 7.3 million people living in Germany are member to a gym in 2011. This equates to 9.3% of the German population being active in a gym. However, in an international comparison, Germany is only average compared to the Netherlands and the US, which both have a market penetration of 15% and higher according to DSSV.
The national fitness market is continuing
Top Sports in Germany (Members)
to grow. The figures beside show sports Thousand
based on the number of members in Germany in 2011. Fitness is the most popular sport in Germany; around
8.000
7.310
7.000
6.750
6.000
4.960
5.000
7.31 million people are doing fitness in
3.000
and 6.75 million people play soccer
1.530
2.000
(statista, 2012).
1.420
870
870
830
1.000
730
630
610
610
0
The graph beside shows the revenues of the entire fitness industry in Germany from 2000 to 2011. In 2011, the total turnover of the German fitness industry
Table 49: Distribution of the Top Sports in Germany according to Memberships in 2012
was approximately four billion Euros.
Revenue of Fitness Market in Germany
While incumbents adept their services to demand upcoming trends, and new entrants penetrate the market with innovative conceptsâ&#x20AC;?, says Niels Gronau (2012), an expert in the sport and leisure market at Deloitte.
x 10000
â&#x20AC;&#x17E;The fitness landscape is becoming more colorful each year in Germany.
Appendix | Bibliography
4.000
approximately 7.300 gyms in Germany
450.000 400.000 350.000 300.000 250.000 200.000 150.000 100.000 50.000 0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Revenue 2.320.
2.750.
2.720.
2.230.
2.350.
2.030.
2.210.
2.970.
2.880.
3.430.
3.900.
4.000.
Table 50: Development of the Revenues of the German Fitness Market from 2000 to 2011
119
The figure beside shows the
Penetration Rate German Fitness Industry
development of the penetration rate in
16,0% 14,0%
the German fitness market from 2004
12,0%
to 2010. In 2008, 14% percent of the
10,0%
German population between 18 and
8,0% 6,0%
65 years participated in the German
4,0%
fitness industry.
2,0% 0,0% 2004
2005
2006
Penetration Rate 18-65 years
2007
2008
2009
2010
Use of Internet in Germany The Web continues to develop towards
Penetration Rate total population
an established communication medium
In 2012, 53.4 million Germans were Compared to 2010, this was an increase of 9%. 61% of Europeans are online.
60
14%
50
12%
Therefore, Germany is above average
40
with an Internet penetration rate of
30
75.9% (Van Eimeren& Frees, 2012,
20
p. 362).
10 0
10% 8% 6% 4% 2% 2006
2007
Growth
were fifty years and older. Among the fifty to fifty-nine year olds, the
3%
6%
0%
2012
5%
2%
13%
6%
3%
Thousand
50.000 40.000 30.000
everyone is online among the under
20.000
forty year olds. To sum up, the Web has
10.000
among all ages.
2011
60.000
increased from 53.9% to 62.7%. Almost
medium to an established medium
2010
Use of Internet
from 69.1% in 2011 to 76.8% in 2012.
long emerged from a relatively young
2009
Table 52: Development and Growth Rate of the Internet in Germany from 2006 to 2012
proportion of Internet usage increased
among the sixty to sixty-nine year olds
2008
Use of Internet 38.600.000 40.800.000 42.700.000 43.500.000 49.000.000 51.700.000 53.400.000
In 2012, 1.7 million new Internet users
Simultaneously, the Internet usage
and distribution channel for content.
Development of the Internet in Germany
occasionally using the Internet. Million
Appendix | Bibliography
Table 51: Development of the Fitness Market Penetration Rate from 2004 to 2010
0 2006
2007
2008 Male
2009 Female
2010
2011
2012
Total
Table 53: Number of Internet Users in Germany divided by Gender from 2006 to 2012
120
In 2012, 28.1 million males and 25.4
a domain of the slightly older generation
Among the fifty year olds only one
million females were online, which
(thirty to forty-nine year olds).
out of ten use mobile devices to go
equates to 81.5% versus 70.5% as seen
online. Previous versions of the ARD/
in the figure above. The gender gap
Desktop computers are mostly used by
ZDF online studies show that the use
between man and women is therefore
older generations as 81% of the users are
of mobile Internet does not replace the
decreasing (Van Eimeren& Frees,
above seventy. Laptops are mostly used
conventional access to the Web via PCs
2012, p. 366). Men tend to stay online
by 68% of the digital natives (fourteen
and laptops according to Van Eimeren
significantly longer than women with 147
to twenty-nine year olds) and by 60% of
&Â Frees (2012).
minutes per day versus 118 minutes per
the generation from thirty to the forty-
day. However, compared to 2011, both
nine year olds.
men and women spend less time online. Mobility is more and more important
online decreased from 137 minutes in
when purchasing new media devices as
2011 to 133 minutes in 2012.
seen in the figure below. In 2012, 27%
Appendix | Bibliography
The total number of minutes spent
of the males and 20% of the females Devices
were online via mobile devices. While
In Germany, 97 percent of the Internet
43% forty to twenty-nine year olds use
users now live in households with a
mobile Internet, only 21% of the thirty to
PC or laptop. As seen in the figure,
forty-nine year olds use mobile Internet.
the stationary PC is still the primary choice. However, the trend goes towards
Use of Mobile Devices
smaller devices; 58% were using laptops in 2012, whereas only 51% were using laptops in 2010. 22% are now online via smartphones, mobile phones, and organizers, almost three times more than in 2010 (8%).
30% 25% 20% 15% 10% 5% 0%
Going online via mobile phones and smartphones is especially popular among younger generations. 45% among the fourteen to twenty-nine year
2009
2010
2011
2012
Male
15%
16%
26%
27%
Female
8%
10%
13%
20%
Total
11%
13%
20%
23%
Table 54: Development of the Use of Mobile Devices for Internet Access from 2009 to 2012
olds use mobile phones or smartphones to go online, whereas tablet PCs are still
121
Social Networks
million people make use of the network
Changes in the demographic
Social networks such as Facebook,
on a monthly basis. Every day Twitter is
environment mentioned above have
Twitter, and newcomer Pinterest are
used by 12 million people worldwide and
major impacts on businesses and
globally the most popular and the most
250 million people tweet every month.
sophisticated marketing strategies
visited websites in the Web.
Newcomer Pinterest records excellent
are essential to take advantage of
Users spend most of their time on these
numbers; 3.2 million daily visitors and 15
opportunities in the vast growing
networks, which is why it is interesting
million people visit the social network
online world.
to know which of them are most popular
every month (ebizmba, 2012).
in Germany. Facebook is by far the largest online
Social Network Members in Germany
Appendix | Bibliography
social network in Germany. 51% of all German Internet users are members
60%
of the community. This equates to 22
50%
million active Facebook users (statista,
40%
2012). German social networks such
30%
as Stayfriends or the VZ-Networks
20%
are loosing massive traffic while the international social networks are
10% 0%
51% 27%
23%
19%
9%
6%
6%
5%
5%
3%
continuously catching up. According to a recently published statista report, the VZ-Networks lost 74% of its
Social Network Members in Germany
traffic in September 2012 compared to September 2011. Wer-kennt-wen, Lokalisten, and StayFriends â&#x20AC;&#x201C; all German social networks are significantly loosing their visitors. In contrast, the international versions of Facebook and Twitter are performing even better as seen in the figure above. Approximately 90 million individuals (internetworld, 2012) are using Facebook on a daily average and 750
122
Table 55: Number of Social Network Members in Germany divided by different Networks
Economic Environment The ongoing crisis in the euro zone
2012 and 2013. According to the DIW,
The unemployment rate decreased from
slows down the German economy
the GDP will grow by 0.9 % in 2012
2.98 million in 2011 to 2.9 million in 2012.
more than predicted. According to the
compared to 2011 and in 2013, the GDP
This improved unemployment situation
DIW, the economy will grow by only
is predicted to grow by another 1.6%.
provokes an increase in salary as well
one percent in Germany in 2012. The
as in consumption. However, due to the
economy is mainly supported by the
Unemployment Rate
currently weak economy in Germany,
domestic economy and the German
The figure shows the number of
the employment rate will temporarily
export industry is predicted to move
unemployed people in Germany from
decline. The number of unemployed
upward around the turn of the year.
2007 to 2011 and the forecast for the
people will increase to 3.05 million in
years 2012 and 2013:
2012 according to the DIW (2012).
Due to the debt crisis in the euro zone, week in 2012. The ongoing uncertainty
6,00%
of the financial markets results in a
4,00%
deep recession.
2,00% 0,00%
However, the global debt crisis did
-2,00%
not harm the fitness industry as the
-4,00%
signals are still on growth according to Sparkassen Finanzgruppe Branchendienst (2012). The market for gyms is in transition due to the strong
-6,00% GDP Prognosis
2008
2009
2010
2011
2012
2013
1,10%
-5,10%
4,20%
3%
0,90%
1,60%
Table 56: Development of the Real GDP in Germany from 2008 to 2011
Unemployment Rate
20.00 exert a strong pressure on prices. According to experts, those gyms, which
Thousand
expansion of the chains. Gyms with monthly member fees of less than â&#x201A;Ź
Appendix | Bibliography
GDP Prognosis
the demand for German goods remains
4.000 3.500 3.000 2.500
are inexpensive or come up with special
2.000
offers, will record stronger growth.
1.500 1.000
Gross Domestic Product (GDP) The graph shows the development of the real GDP in Germany for the years 2008 to 2011 and forecasts for the years
500 0 Unemployed People
2007
2008
2009
2010
2011
2012
2013
3.780.000
3.260.000
3.420.000
3.240.000
2.480.000
2.900.000
3.050.000
Table 57: Development of the German Unemployment Rate from 2007 to 2013
123
Appendix | Bibliography
Socio-Cultural Environment Socio-cultural factors affect how people
and nearly all of the under 30 to 25 year
brand or company. Fans and Followers
think, act and consume and therefore
olds spend approximately more than
are highly valuable brand ambassadors
ultimately affect marketing decisions.
three hours on the site every day.
as the fan-status increases the incentive
Today, companies use the Web to gain
20% of the regular Web users are
of purchasing products by 41% of the
insights into their needs and to create
networking more than three hours
respondents. The main reasons to
consumer engagement (Armstrong &
every day and nearly 50% of the
become fan or follower are either the
Kotler, 2010, p. 116). The following trends
twenty-five year olds actively contribute
users like the brand, they want to see
in consumer insights in Social Media are
content to social networks. Most of the
what is new, or they hope to receive
analyzed with the aid of the PwC survey
respondents use social networks to
special offers. Last but not least,
mentioned earlier.
socialize and get connected with family,
personalized advertising and data
relatives and friends. Thereby, 97% of
collection for advertising purposes
Social networks are used intensively
the regular Internet users believe that
are disapproved by the majority of
as seen in the figure above; they are
social media has an overall positive
users. However, the majority of the
the second most popular application
effect on their social life. About 50% of
respondents do not delete their profiles
on the Internet and have become an
the respondents between 16 and 44 are
because of advertising.
omnipresent part of todayâ&#x20AC;&#x2122;s media
either fan or follower of at least one
society. Communication is social as
Visits of Social Networks
40% to 50% of the respondents already substitute traditional communication channels via social networks.
90% 80%
Furthermore, the respondents are very loyal towards their favorite network and the interest in using parallel networks
60% 50% 40%
is significantly declining. 75% of the
30%
respondents believe that they will always
20%
be loyal towards their favorite network. This is the so-called lock-in-effect, which can be explained well by looking at the most popular social network Facebook: About 80% of the regular Facebook users visit the site at least once a day
124
70%
10% 0%
Facebook 83%
YouTube 58%
Twitter 46%
weekly visits
16%
38%
41%
< weekly visits
2%
3%
3%
daily visits
Table 58: Number of Social Network Members in Germany divided by different Networks
Technological Environment
Ecological Environment The ecological environment involves
The technological environment,
The newcomer Spotify provides instant
the availability of resources and the
especially the development of the
on-demand streaming of music on
direction of the trend needed to
Internet, changes rapidly and new
Internet enabled devices. JPCBâ&#x20AC;&#x2122;s John
draw marketing decisions. Common
technological solutions stimulate new
Doerr calls this phenomenon SoLoMo:
resources such as labor, water and
markets and create new opportunities
Real-time social features such as
electricity have an impact on the general
simultaneously (Armstrong & Kotler,
location sharing, music sharing as well
business environment and according
2010, p. 107).
as built-in friend connectivity accelerate
to Armstrong & Kotler (2010), most companies choose not to operate in
According to Gartner, Inc., these are
markets where these resources are
Internet technologies provides users
some of the top strategic technology
scarce or unusually expensive.
with more information, communication
trends for 2013. Mobile phones are
and entertainment. In the last 10 to
predicted to overtake PCs worldwide as
Taking the ecological environment
15 years, a re-imagination of nearly
the most common device for Internet
into consideration, there are three
everything has been taken place
access. By 2015, over 80% of the
major trends; increased shortages of
considering the Internet. The way people
handsets sold in mature markets will be
raw materials, increased pollution, and
consume, share and spread information
smartphones according to Gartner.
increased government interventions in ecological resource management. Due
has been completely rewired. A few examples of this are the re-imagination
Furthermore, the personal cloud is
to these factors, every company has a
of desktops and notebooks to tablets
predicted to slowly replace the common
social responsibility to not only control
and smartphones, or the re-imagination
PC as the location to keep personal
and reduce pollution, but also to go
of news and information flows:
content. Digital lives will be stored in
beyond governmental regulations by
On Twitter, users are now able to report
the cloud. A further trend is the Internet
developing strategies, which support
news in real-time via mobile devices.
of Things (IoT); Consumer devices and
ecological quality.
More and more people start to read
physical assets are expanding to being
books on their e-book reader, tablet
connected to the Internet. The key
Our company mainly works online and
or smartphone instead of the paper
elements of the IoT are mobile devices,
supports environmental sustainability by
version. Another great example of how
which include embedded sensors, image
contributing to a paperless office. The
re-imagination takes place in the Web is
recognition technologies, and NFC
Internet reduces the amount of energy
the way people listen to music.
payment technologies according to
as well as material and therefore makes
Gartner (2012).
a difference between economic growth
Appendix | Bibliography
both, Internet and mobile usage. The development of new intelligent
and environment.
125
Appendix | Bibliography
Political Environment Developments of the political
Since the company is based in the
environment strongly affect marketing
EU Market and conducts its services
decisions. The business legislation is
through the Internet, the e-commerce
there to protect companies from each
directive creates the basic legal
other, to protect consumers from unfair
framework for movetasticâ&#x20AC;&#x2122;s business
business practices, and to protect the
transactions. In addition, the distance-
general interest of society against
selling directive applies as well to
ungovernable business behavior.
movetastic as we do not meet our
Company activities as well as marketing
customers face to face until after the
activities are all subject to laws and
contract has been concluded. New laws
regulations developed by the national
concerning consumer rights are about to
government or the EU to ensure fair
be passed; the consumer rights directive
markets and encourage competition.
from November 2011 will increase
Especially the EU established a new
consumer protection and consumer
framework of laws covering competitive
rights across the EU from 2014 onwards.
behavior, product standards and liabilities, and commercial transactions. The German Data Protection (BDSG), the German Broadcast Media Act (TMG) and the cyberlaw regulate the general conditions for media in Germany. These laws define how information of users are collected and managed. Especially in the Internet, individual privacy and data collection are very important locally, nationally and internationally.
126
Competitive Environment sure that the customer only has to cast
The analysis highlights that our company
advantage, it is not only important to
one look and then sees and understands
will be the market leader regarding
know all possible information, but also
everything that he is looking for.
usability of the app. Movetastic focuses
vital to compare all features used by
The analysis examined the following
on one app for all devices, meaning
the competitors (Kotler&Amstrong,
aspects of usability: How consumer
whether the customer uses his laptop,
2010, p. 552). This section analyzes the
friendly is the webpage? How easy is
iPad or iPhone the app will always
following five competitors that have all
it to sign up to the service or to log
look the same. This strategy makes it
established online fitness websites in
in? How easy is it to find the different
highly user friendly because once the
the German market. New Moove F&R
courses? How much information is
customer used the app once every click
Multimedia GmbH) with over 40.000
provided regarding pricing structure,
after that is intuitive. Compared to the
customers, Das Pure Leben (la pura
descriptions of the company? How
other online fitness websites, movetastic
vida GmbH & Co KG), Fitnessraum
good is the quality of the fitness videos?
has all the information needed such as
(fitnessRAUM.de GmbH) with over 1
Furthermore, is the design of the web
pricing structure, courses, social media
million customers,FitKurs (Fitkurs.de)
page appealing?
integration, challenges, live events and
and BodyBoom (bodyboom GmbH) are evaluated on a scale from 1 to 5 (1
Usability of Website
being the worst, to 5 being the best) on usability of the web page, subscription
5
fees, special features, variety of classes and their Social Media activity.
4
4
Given the results of this analysis it is possible to position movetastic in the weaknesses compared to the existing
3
3
market and to show the strengths and 2
The most important aspect of an app is its usability for the user. Mobile apps
3
3
Fitness Raum New Moove
2
Das Pure Leben Fit Kurs
competitors.
Usability
Appendix | Bibliography
In order to have potential competitive
BodyBoom
1 0 Usability
have to be as easily to navigate as possible. The best mobile app makes
Table 59: Positioning of Competitors in the Market regarding Usability of the Websites
127
the members log in accessible with
Lastly, the fitness videos have the
This is even truer for an online product.
only one click from the home screen.
highest possible resolution therefore
The customer cannot physically touch
Members can see their personal profile
assuring that the video quality is
the product before purchasing it.
and all of their activity by clicking on
constantly high.
The price has to be attractive so the
“my move”.
customer gets initially interested in the
Subscription fees
product.
the pricing structure of New Moove
The second most important aspect of
The analysis of the pricing focuses
the customer has to sign up first. It is
an online business is its pricing structure
on how much value the customer
apparent that all websites focus on
and comparability to its competitors in
receives for the subscription fee he
highlighting the course variety of their
the market. The price of a product is a
paid. The graph shows the different
product, however, only New Moove,
vital factor that can affect the buyer’s
subscription fees on a scale from 1
Fitnessraum and BodyBoom provide a
choice and thereby affects the market
(cheapest subscription) to 5 (most
filter for customers looking for courses
share and profitability of the company.
expensive subscription).
Appendix | Bibliography
On the other hand, to find out about
with specific requirements. The quality of the fitness videos varies from one website to the next. From all compared competitors Fitnessraum, BodyBoom and New Moove have the best video quality. Compared to movetastic and the other competitors FitKurs and Das Pure Leben only provide videos that have lower production standards. Overall, movetastic positions itself as the market leader regarding app usability because of the following aspects of its app. First, the app is applicable on all screens and all devices. Second, the app makes it possible for the user to access all necessary information by one click.
128
Table 60: Development of German Population from 1960 to 20160 Separated in Age Groups
While analyzing the price model of
Fitnessraum and New Moove use
Analyzing the chart, New Moove and
FitKurs, BodyBoom, New Moove,
the same subscription model than
Fitnessraum are the two fitness websites
Fitnessraum and Das Pure Leben one
BodyBoom – prices ranging from €16,90
that offer the most diversity of special
notices the different pricing structures.
(1 month subscription) to €9,90 for a
features. Both of these competitors have
Fitkurs does not use a subscription
year subscription. However, because of
an extensive online shop providing sport
model. The user can download each
Fitnessraum’s and New Moove’s variety
accessories, books on health and fitness
video starting at €2,99 per video. This
of courses the customer receives a
subjects and fitness DVD’s. Furthermore,
model is only suitable for users that do
higher value for his subscription fee.
New Moove, Fitnessraumand BodyBoom
not mind using the same video over and
offer a personal dashboard recording
over again. However, this pricing model
The analysis shows that Fitnessraum
information about the user’s completed
does not fit heavy users, looking
and New Moove have the best pricing
classes, his training progress and next
for variety.
structure, taking into account the
milestones. FitKurs and Das Pure Leben focus more on giving tips about a
subscription fee based on the variety
healthy diet. The whole website features
with an imaginary currency called
of courses offered. Comparing all the
multiple blog entries about different
“Taler”. One Taler is the equivalent to
competitors to movetastic’s price
topics concerning health, diet and work
10 cent and the different courses are all
structure the results show that the
out plans.
available starting at 10 Taler (1€). One
company will place itself on the higher
has to buy packages of Taler to pay
end of the price scale, but nevertheless
The results of the analysis show that
for the different courses. This method
have a high value for the customer
New MooveandFitnessraumwill be the
again is suitable for customers doing a
based on the variety of classes, live
two biggest competitors for movetastic
limited amount of courses. Nevertheless
events and social media interaction.
regarding the diversity of special
Das pure Leben offers the cheapest pricing model with a medium to high
Appendix | Bibliography
value the customer receives for its Das Pure Leben uses a paying system
features offered.
Special features
value for the customer. BodyBoom’s
Movetastic emphasizes slightly different
subscription fee depends on the length
To have an competitive advantage over
features in the beginning. It will not have
of the subscription, ranging from €14,80
regular gyms online fitness websites
an online shop or health and dietary
(3 months) to €9,80 (12 months).
have to have a variety of different
recommendations but rather focus on
Taking into consideration the variety
offerings ranging from seasonal
the interactivity of its subscribers by
of the course offering which is slightly
promotions, online shops, live events
providing live events, making it possible
lower than the offerings from the other
to dietary plans. The analysis will show
to challenge other users, integrating
competitors the customer receives a
which one of the five competitors has
social media in every step of the way
medium value for the subscription fees
the biggest assortment of
and making it possible to see the
at BodyBoom.
special features.
129
results of the work outs via an extensive personal dashboard under the heading “my move.” Considering all of the results of this analysis movetastic will position itself as a strong competitor regarding the offering of special features.
Variety of classes The main reason for subscribing to an online fitness website is the fact that the customer is interested in doing a variety
Appendix | Bibliography
of professional fitness classes. Therefore the variety of the offering is the key element in the overall marketing offering (Kotler& Armstrong, 2010, p. 248) – the bigger the diversity of classes the more
Table 61: Positioning of Competitors in the Market regarding Variety of Special Features on the Websites
appealing for the subscriber. The analysis highlights which one of the competitors has the most variety of classes offered for the subscriber and indicates that in order to have a competitive advantage the company has to offer at least 120 different fitness videos to satisfy the needs of the target group.
Table 62: Positioning of Competitors in the Market regarding Variety of Classes Offered
130
The two chart shows that the amount
Analyzing the previously described
Zumba is a dance workout that debuted
of classes differs vastly between the
numbers movetastic will not be able
on the list of the top 20 fitness trends
five competitors. Fitnessraum is the
to position itself as the market leader
in 2012 (Workneh, 2011).Zumba suits
market leader regarding variety of
right away. However movetastic has one
perfectly as a class for an online fitness
classes. Overall Fitnessraum offers 571
competitive advantage compared to the
platform because it combines a full body
courses in 9 categories with 16 different
competitors in the market regarding the
workout with Latin American music
instructors. Each video is between 5 and
variety of classes. The company is the
and the customers do not need a lot of
60 minutes. BodyBoom has a slightly
first online fitness group in Germany that
space to exercise.
different approach than Fitnessraum.
offers Zumba classes.
It only gives its customers the choice between two different types of workout
Appendix | Bibliography
but nevertheless provides 168 videos for them. New Moove and Das Pure Leben have a slightly lower diversity with 104 and 80 different fitness videos. FitKurs is the competitor with the least variety providing only 22 fitness videos.
Table 63: Overview and Amount of Classes Offered by Competitors
131
Connectivity (Social Media) Internet nowadays is an established
on the home screen all the way in the
Even though New Moove, Fitnessraum
communication element within the lives
bottom right. On December 8, 2012
and BodyBoom have built a small
of our potential customers. In recent
Fitnessraum had 1347 likes on Facebook
community on Facebook, they
years,social media has gained more
and 473 followers.
apparently do not have an overall social
Appendix | Bibliography
and more importance in the lives of
media integration plan. For them social
people. People post about their lives
On the website of Das pure Leben the
media is not part of their fitness concept
and comment on the entries of their
user can find the Facebook like button
but rather an additional way to reach
friends and even on the activities of
in the top left corner of the webpage
their customers.
unknown people. Therefore the aspect
with 164 likes on December 8, 2012.
of connectivity through social media
Additionally, the company has one
Movetastic will use social networks
integration is one of the most important
follower on Twitter. BodyBoom counts
as an integral part of its success
aspects for an online community or
241 Facebook likes and 200 Twitter
by using social media as a tool to
platform. Especially younger people
followers even though the company
connect customers with each other
want to be connected to their friends
posts regularly on its Facebook site.
and therefore, adding value to the
and meet other people online.
The same goes with New Moove that
customerâ&#x20AC;&#x2122;s experience.
This part not only analyzes the way the
has 1579 likes.
five competitors integrate social media on their respective websites but also how and if they are active in networks, such as Facebook and Twitter. Each one of the five competitors uses at least one social network. However, none of them has integrated social media as vital tool for their offering. FitKurs does neither have any social media integration on their website nor a Facebook account. On Twitter the company has 36 followers. Fitnessraum has a Facebook button that is located Table 64: Positioning of Competitors in the Market regarding Social Media Integration
132
Conclusion Considering all of the information of the competitor analysis, Fitnessraum, New Moove and BodyBoom are movetasticâ&#x20AC;&#x2122;s strongest competitors, each in different aspects of the business. Fitnessraum has the widest variety of classes and also good usability. On the other hand, New Moove offers a good value for their subscription prices. Even though BodyBoom offers only two great variety of workouts and value for its subscribers. To become market leader movetastic has to especially focus on the following two aspects: Usability of its app and its integrated social media approach. If all the other factors of the business
Table 65: Overview of the Main Competitors in the Online Fitness Market
Appendix | Bibliography
kinds of workout types, it still offers a
are good these two aspects will give movetastic a competitive advantage against all other online fitness websites that are already in the market.
133
Competitive Environment Indirect Competition Movetastic’s indirect competitors are
years, who want to balance their lifestyle
Lady of America
all businesses providing an alternative
by being active in all sorts of sports. The
For over 25 years Lady of America is the
solution to an online fitness platform,
target group complements movetastic’s
second largest fitness chain of women’s
such as regular gyms or sports
target group perfectly. Fitness First has
fitness club. With more than 300 clubs
clubs. Research shows that indirect
4.500 employees and offers a broad
worldwide and a customer base of
competitors, especially fitness chains,
range of classes such as Pilates, body
approximately 600.000 members, this
could either be a silent killer or a new
fit and high intensity training.
fitness chain offers classes for all women
Appendix | Bibliography
avenue for revenue for the company.
Life Time Fitness
lifestyle goals. Headquartered in Miami,
how movetastic’s potential customers’
Life Time Fitness, Inc. (NYSE: LTM) was
Florida, the company operates most of
demands can be satisfied, the company
founded in 1992 when the first club
its clubs in the US and Puerto Rico and
created a strategy for handling
opened in Brooklyn Park and went
has a few franchises as well in Canada,
indirect competition:
public in 2004. The company currently
Ireland, the UK and Korea. Lady of
operates 105 clubs all over the USA and
America offers mostly aerobic classes
Partnering with indirect competitors to
makes US $1 billion in revenues as of
such as spinning, kickboxing, Zumba,
create powerful advantage over direct
December 2011.
step aerobic and boot camp.
make movetastic’s fitness platform even
Approximately 20.000 employees
Movetastic and Lady of America have
more unique, reduce the potential threat
take care of 676.000 members. Life
the same target group and Lady of
of the fitness chains and lower the risk of
Time calls itself the “Healthy Way of
America is constantly looking for new
indirect competition.
Life Company” and meets the health
innovative sport activities.
Short company profiles of all strategic
and fitness needs of the entire family.
partners are listed below:
Life Time offers traditional fitness
competitors. Strategic partnerships
Fitness First
classes such as yoga and Pilates, but is continuously looking for new and fun
Fitness First Germany GmbH is privately
activities. Movetastic’s fitness platform
held and was established in 1990. 88
complements Life Time’s comprehensive
gyms were opened since then. All gyms
fitness programs.
are chain stores with more than 270.000 members in Germany. The target group is professionals between 25 and 45
134
who want to work on their fitness and
By considering all possible ways of
Reebok
AOK
Reebok belongs to the Adidas group
The AOK has approximately 24 million
and is an American-inspired global
insureds and a market share of 35% of all
brand that creates sports and lifestyle
GKV (GesetzlicheKrankenVersicherung).
products. The Adidas Group made €13
The company made €69 billion in
billion in revenues as of December 2011.
revenues in 2011.
Reebok made €1.9 billion in net sales in 2011.
The AOK offers a wide range of fitness classes for those members who want to do more for their health and well-being.
challenge and lead through creativity.
In addition, the AOK developed an
The company is known for being
interactive training program for people
visionary and original, always looking for
who spend their day mostly sitting and
new creative solutions and products that
working in front of a screen. The creative
reflect the company’s unlimited creative
agency taking care of AOK’s additional
potential. Reebok’s target consumer is
fitness programs and services on the
25+ and values style with performance.
website already showed great interest in
The target consumer sees staying in
movetastic’s fitness platform as a way to
shape as a way to live a healthy lifestyle
further expand AOK’s interactive
and have fun.
training program.
Appendix | Bibliography
The company’s mission is to always
135
SWOT-Analysis SWOT ANALYSIS MOVETASTIC
STRENGTHS
WEAKNESSES
S1: unique business idea
W1: unknown company
S2: customer orientated, on
W2: no client base
demand service S3: focus on attractive
W3: dependency on 1 offered service
Appendix | Bibliography
target market
OPPORTUNITIES
SO-STRATEGIES
WO-STRATEGIES
O1: strategic Sweet Spot
S1O1: creating competitive
W1O4: increasing brand
O2: great amount of potential customers O3: high interest for online gyms O4: strategic partnerships
advantage through
awareness through
integration of social media
corporation opportunities
S2O3: creating customer
W1O2: increasing company
engagement through
awareness by focusing on
integrating of
right target group
interactive app S1O3: focus on partnership opportunities to grow
W3O4: creating different revenue streams through corporation opportunities
market share
THREATS
ST-STRATEGIES
WT-STRATEGIES
T1: strong competitors
S1T1: focus on customer
W3T2: limiting dependency
T2: great power of customers
orientated service to defend
through offering a variety
power of competitors
of services
S3T2: focus on new business model to increase customer relationship management Table 66: Analysis of Strengths, Weaknesses, Opportunities and Threats for Movetasticâ&#x20AC;&#x2122;s Business Idea
136
SWOT-Analysis
Strategic Opportunities WO-Strategies
ST-Strategies
In the field attack, strengths are
In the field concentrate, opportunities
In the field defend; strengths of the
combined with opportunities to extend
are combined with weaknesses. The
company are combined with threats
competitive advantage on the market.
opportunities are to be intensified
concerning the market.
Combining the strength ‘unique business
in order to compete against or
idea’ with the opportunities ‘strategic
transform weaknesses into strengths.
Combining the strengths ‘unique
sweet spot’ and ‘strategic partnerships,
The weakness ‘unknown company’ is
business idea’ with the threat ‘strong
movetastic creates competitive
combined with ‘strategic partnerships’
competitors’, movetastic focuses on
advantage within the online fitness
and ‘great amount of potential
advantages of customer-orientated
industry. Movetastic focuses on key
customers’ to increase brand awareness
services to defend the power of
partnerships with various national and
and acquire new potential customers
competitors. The strength ‘focus on
international fitness franchises and
who are interested in the services
right target market’ is combined with
health insurances.
movetastic offers.
the threat ‘great power of customers’.
None of the competitors integrate social
Movetastic generates new potential
Movetastic places great importance
media into the workout experience of
members workput via its partners as
to increase customer relationship
their customers. Movetastic reacts to a
they share the same target market:
management by focusing on its
brisk market demand in the personal,
People who are active in sports and
freemium business model. The freemium
interactive, and social Web experience
interested in new ways to experience
model is designed in a way that
by combining the strength ‘customer
work outs. The weakness ‘dependency
customers enjoy long-term relationships
orientated on demand service’ with the
on one offered service’ is transformed
with the company, which defends the
opportunity ‘high interest for online
into an opportunity by creating new
power of customers and empowers
gyms’. The interactive app movetastic
revenue streams with the help of
movetastic to offer new and innovative
offers is highly customer-orientated,
corporations. Movetastic’s freemium
work out experiences.
which creates long-term customer
business model ensures increases in
engagement. With the aid of an
sales, new revenue streams, and new
attacking marketing strategy, movetastic
potential members.
Appendix | Bibliography
SO-Strategies
penetrates the market and focuses on potential growth.
137
WT-Strategies In the field withdraw, threats are combined with weaknesses to avoid or improve them. The weakness ‘dependency on one offered service’ is combined with the threat ‘great power of customers’. With the aid of the corporations, movetastic is able to increase sales and generate new revenue streams.
Appendix | Bibliography
The long-term goal of movetastic is to
138
increase the variety of services offered to potential customers. This will not only limit the threat of great customer power, but also ensure long-term relationships with them.
SWOT-Analysis
Strategic Corporate Strategy Basic Competitive Strategy
Competitive Position & Marketing Niche Strategy
Taking the strategic opportunities
Movetastic’s offered services are
Movetastic specializes in serving the
mentioned above into account, the
extended and the assortment
niche market online fitness and therefore
chosen strategy is developed as
is upgraded.
targets a sub segment. The company’s
follows. According to Porter (2010), the
long-term goal is to become market
Customer Value Disciplines
leader in this niche in order to
movetastic well as the company focuses its efforts on serving the online fitness
Taking the value disciplines of Treacy
competitive marketplace.
segment better than its competitors.
and Wiersema into consideration,
Movetastic penetrates the market by
movetastic gains product leadership
The marketing niche strategy based on
focusing on potential growth in the
by delivering superior value to
customer needs and desires is a special
online fitness industry. This drives not
its customers.
and sustainable type of focus strategy.
increases the company’s sales, generates
The company focuses on cutting edge
Movetastic’s app is customized to the
new revenue streams and new potential
technologies; the customer-orientated
particular needs of its target market
customers are acquired.
and highly interactive app connects
by providing social experiences across
people interested in sports all over the
multiple devices. The competitors’
Movetastic uses the innovation capacity
world and revolutionizes the way people
solutions do not provide this kind of
of the fitness industry and serves
experience sports.
unique service and movetastic has
basic competitive focus strategy suits
be successful in today’s hyper-
different groups of customers via
Appendix | Bibliography
only customer engagement, but also
competitive advantage in the usability
strategic partnerships: The corporation
Thereby, movetastic is always open to
of its app and its integrated social
with fitness chains and health insurances
new ideas and keen to quickly introduce
media approach.
creates a win-win situation:
new app features to the market
The corporation partners are able to
(Armstrong & Kotler, 2010, p. 561)
increase customer loyalty by fulfilling their customers’ demands and movetastic’s wins new customers for different revenue opportunities.
139
Appendix | Bibliography
Key Marketing Vehicles
140
Social Media Marketing
Email Marketing
Event Marketing
Customer engagement is increased
A customer-orientated and personalized
Movetastic uses the below-the-line
through the company’s presence in all
email marketing campaign addresses
marketing activity event marketing to
major social networks. Customers get in
customers in the right way and
address customers in a very personal
touch with the company via social media
at the right time and pushes free
and direct manner.
and vice versa. New potential customers
promotion of events and special
who have not subscribed to movetastic’s
offers. Every month, movetastic
Every month, movetastic hosts two
service can be acquired via social media
sends out dynamic personalized
live events on its platform for premium
at very low acquisition costs.
newsletters to its customers. The
users only consisting of a 45 minute
newsletter is individualized and
live workout with real Reebok trainers.
Search Engine Advertising
specifically customized. The basis
Premium members can sign up for
for this technology is the customer’s
these events taken place via a Google
Focusing on service-specific and site-
dashboard. The user is categorized
Hangout or Skype. All live events are
specific branding messages via online
based on information such as workouts,
bundled to the rewarding system of the
advertising channels such as AdWords
challenges, and rewards recorded in the
app, the member’s “move” level and the
and the Google Display Network (GDN)
dashboard. A single newsletter draft
challenge function, which provides the
supports brand awareness of potential
with teaser boxes manages the content
user the possibility to use all fun features
customers and drives highly relevant
for each personalized newsletter.
of the app during live events as well.
traffic to the company’s website or
These boxes can be fit with user-
directly to the app store.
specifically customized information.
Movetastic buys keywords from the
Class recommendations and new
major search engines, Google and Bing,
events can be marketed directly and
so that the company’s ads show up
with more depth to the consumer.
anytime a user types in a search query
Furthermore, interactive elements such
using relevant keywords. This method
as special offers, surveys and interesting
ensures that only relevant traffic is
stories can be integrated into the
directed to the website as the user
newsletter. This preserves interest in the
showed already an interest based on its
newsletter frequency and increases the
search query. The business model for
response rate. The aim is to make the
AdWords is PPC-payment with typical
newsletter the odds-on favorite of the
conversion rates from 1% to 5%.
company’s customers.
Key Communication Vehicles Communication Network
raise awareness for the new product
Bloggers & Sports Magazine Editors
The first task in building a good
and exclusive partnership. All of the
Once the website has started, influential
communication network is to get
press activities will be documented on
bloggers and further sports magazine
informed about the industry the
movetastic’s Facebook page, on their
editors will be contacted to place
company will be in. Who are the most
twitter account, as well as on the social
articles on their websites/ magazines
important media players? Which
media outlets of movetastic’s partners.
blogs are the most up to date? Which
and to offer test accounts. Roughly a week prior to the official
During the first few months the goal
After putting together the first
launch of the new website movetastic
has to be that articles about movetastic
distribution list, the first press release
will announce its third strategic
will appear in magazines, such as “Fit
announcing the start of movetastic will
partnership with Reebok. Reebok is
for Fun”, “Shape”, “Women’s Health”
be send out four weeks prior to the
an international fitness-clothing brand,
and “Runners Point”.
official start of the website.
which is especially involved in clothes for Yoga, Pilates and Dance classes;
In addition to the press release the most
therefore it places perfectly as one of
important contacts will be contacted
movetastic’s partners. By announcing
and offered test accounts for the
the partnership all fitness video
beta version of the website, so that
instructors that are under contract with
they can experience the new product
Reebok will count as further multipliers
themselves before their respective
of the partnership and ultimately for
editorial deadlines. The goal will be that
movetastic as a new product entering
the first articles about movetastic will be
the market.
Appendix | Bibliography
magazines have the highest circulation?
published right around the official start of the website to create buzz right away. The next two press releases will announce the exclusive partnerships with AOK insurance and Fitness First gyms. Both of the partners will send out newsletters for their members to
141
Fitness Blogs
Appendix | Bibliography
After the launch of movetastic it will
142
be essential to keep informed about
Testimonial
trends and opinions in the fitness
Once movetastic has a testimonial
industry. Fitness blogs will be one of the
in Germany which could happen in
most important tools to create more
cooperation with Reebok a different
Trade Fairs
awareness for movetastic. One pillar
category of magazines can be
Furthermore, being present at fitness
of the PR Strategy will be to answer
approached. If the testimonial is well
trade fairs such as the FIBO in Cologne,
questions and comments on blogs about
known in the life style world the PR
which is the biggest fitness trade
fitness that include helpful information
strategy will definitely include the
fair in the world, will be of immense
with links back to the website.
placing of articles and interviews in
importance. A trade fair is a good place
magazines such as “InStyle”, “Closer”
for special activities, e.g. a flash mob.
Another social media tool the instructors
and maybe even “Vogue”. These
All relevant journalists and bloggers
will be using for PR is Pinterest. The
magazines all have a slightly different
will be at the location to check for new
social network is perfectly set up for the
demographic than the fitness magazines
trends and creating a flash mob with
instructors to post pictures, which again
which will ultimately help to broaden the
movetastic’s logo would certainly be
link back to movetastic.
public’s awareness of movetastic.
something nobody expects
Appendix | Bibliography 143
G
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Appendix | Bibliography 153
List of Images Table 1: Movetastic’s Subscription Model
31
Table 2: Business Model Canvas
33
Table 3: Summary of Movetastic’s Financial Forecast from 2013 to 2017
36
Table 4: Movetastic’s Membership Forecast from 2013 to 2017
37
Table 5: Movetastic’s Net Sales Forecast from 2013 to 2017
39
Table 6: Break Even Point
40
Table 7: Income Statement from 2013 to 2017
Appendix | Bibliography
Table 8: Yearly Revenues of the German Fitness Market from 2000 to 2011
46
Table 9: Development of the Internet in Germany from 2006 to 2012
47
Table 10: Distribution of Members across Social Networks in Germany in 2012
48
Table 11: Poster Sports Survey
51
Table 12: Movetastic’s Competitors Analysis
53
Table 13: Movetastic’s Marketing Mix
57
Table 14: Movetastic’s Communication Timeline
59
Table 15: Movetastic’s SEA Budget in 2013
61
Table 16: Scenario Analysis for Movetastic in 2013
66
Table 17: Summary Scenario Analysis
67
Table 18: Risk & Reward Analysis
68
Table 19: Movetastic’s Long Term Company Goals & Milestones
71
Table 20: Movetastic’s Websites’ Sitemap
87
Table 21: Startpage Wireframe of Movetastic’s Website
88
Table 242 App Promotion Wireframe of Movetastic’s Website
89
Table 23: Pricing Wireframe of Movetastic’s Website
89
Table 24: User Account Wireframe of Movetastic’s Website
89
Table 25: Movetastic’s Website’s User Interaction Plan
91
Table 26: Startpage of Movetastic’s Website
93
Table 27: Pricing Site of Movetastic’s Website
93
Table 28: Movetastic’s Application’s Sitemap
95
Table 29: „my move“ Dashboard Wireframe of Movetastic’s Application
96
Table 30: Course Video Detail Wireframe of Movetastic’s Application
97
Table 31: Three Wireframe of Movetastic’s Application
97
Table 32: Movetastic’s Application’s User Interaction Plan Table 33: Login Screen of Movetastic’s Application
154
41
99 100
Table 34: „my move“ Dashboard of Movetastic’s Application
101
Table 35: Overview of Monthly Revenues and Memberships during Year 1
102
Table 36: Cash Flow Statement Year 1
103
Table 37: Overview of Monthly Revenues and Memberships during Year 2
104
Table 28: Cash Flow Statement Year 2
105
Table 39: Overview of Monthly Revenues and Memberships during Year 3
106
Table 40: Cash Flow Statement Year 3
107
Table 41: Overview of Monthly Revenues and Memberships during Year 4
108
Table 42: Cash Flow Statement Year 4
109
Table 43: Overview of Monthly Revenues and Memberships during Year 5
110 111
Table 45: Marketing Research Process
112
Table 46: Strengths and Weaknesses of Online Contact Method
113
Table 47: Development of German Population from 1960 to 2060
116
Table 48: Development of German Population from 1960 to 20160 Separated in Age Groups
116
Table 49: Distribution of the Top Sports in Germany according to Memberships in 2012
117
Table 50: Development of the Revenues of the German Fitness Market from 2000 to 2011
117
Table 51: Development of the Fitness Market Penetration Rate from 2004 to 2010
118
Table 52: Development and Growth Rate of the Internet in Germany from 2006 to 2012
118
Table 53: Number of Internet Users in Germany divided by Gender from 2006 to 2012
118
Table 54: Development of the Use of Mobile Devices for Internet Access from 2009 to 2012
119
Table 55: Number of Social Network Members in Germany divided by different Networks Table 56: Development of the Real GDP in Germany from 2008 to 2011
120 121
Table 57: Development of the German Unemployment Rate from 2007 to 2013
121
Table 58: Number of Social Network Members in Germany divided by different Networks
122
Table 59: Positioning of Competitors in the Market regarding Usability of the Websites
125
Table 60: Development of German Population from 1960 to 20160 Separated in Age Groups
126
Table 61: Positioning of Competitors in the Market regarding Variety of Special Features on the Websites
128
Table 62: Positioning of Competitors in the Market regarding Variety of Classes Offered
128
Table 63: Overview and Amount of Classes Offered by Competitors
129
Table 64: Positioning of Competitors in the Market regarding Social Media Integration
130
Table 65: Overview of the Main Competitors in the Online Fitness Market Table 66: Analysis of Strengths, Weaknesses, Opportunities and Threats for Movetastic’s Business Idea
Appendix | Bibliography
Table 44: Cash Flow Statement Year 5
131 134
155