eTrainer | Interactive Virtual Fitness Center
Strategic Marketing Plan
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
eTrainer | Interactive Virtual Fitness Center program will allow gym users the
will provide customized workout
flexibility to attend classes
plans, a fitness calendar and online
throughout the day rather than at
competition and support from peers.
particular scheduled times by re-
Our nutritional programs are
running previously recorded classes
designed to help members develop a
in the gym studios and allowing
healthier diet and achieve their
eTranier is an interactive virtual
online users access to these videos
weight loss goals. Detailed workout
fitness center which allows
outside of the gym setting.
stats can be viewed under members’
Company Description:
personal profiles. Some of the virtual
individuals to achieve their total health and fitness objectives by engaging in their areas of interest via a smartphone, webcast or online access. eTrainer is dedicated to personal health and fitness. Our goal is to assist individuals in becoming more fit, while offering lower costs than physical gyms or personal trainers through innovative wellness programs and strategies. The
eTrainer is a new, cutting edge application and online fitness support. Members can access their accounts at their leisure through their smartphones and by logging on to www.eTrainer.com. eTrainer’s 24-hr
classes include: Yoga, Zumba Fitness, Spinning/Cycling, Kickboxing, Boot Camp and many more exhilarating classes. eTrainer is available on any iOS, Android and BlackBerry and also via Internet browser.
online support provides members with virtual trainers and life coaches who will help them stay motivated from start to finish. The virtual trainer
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
Mission Statement:
Marketing Objectives:
Our mission at eTrainer is to enhance
The marketing objective is to
the quality of life of every person,
establish eTrainer as the leader in
through our innovative fitness
virtual, holistic health and fitness
philosophy, programs, and products
programs. We plan to accomplish this
which instill the value of health and
by staying ahead of industry trends
fitness, into the lives of people
and providing consumers with their
everywhere. We strive to restore
ultimate objective, “Real Results that
balance and preservation, creating
fit into a busy lifestyle!”
more than 42.8 million by 2011. Due to the increased demand for fitness
beautiful bodies in a busy world.
Situation Analysis:
activities, the industry has capitalized on the growth by expanding establishments in both size and number. While the industry did see a bit of a down fall in 2008 and 2009 due to consumer cut backs, there is a predicted increase for an overall market value of $28.2 billion dollars by 2016. Because of this prediction, clubs have had to broaden their
Industry Analysis:
gym-goers in a bid to retain existing
“Put your life in motion with eTrainer - the new virtual fitness application.”
market and offer special value to
The Gym, Health and Fitness Clubs
memberships as well as bring in new
Industries have benefited from a
business. eTrainer offers a unique
large variety of marketing campaigns
twist on the brick and mortar gym
that focus on improving health and
experience as well as the at home
fighting obesity. In the past 10 years,
work out experience, that will appeal
gym membership numbers have
to consumers for both small and large
increased from 36.3 million in 2002 to
operations.
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
Market Trends: Industry growth due to promotion of legislation and exercise incentives. Specified programming for baby
Competitors:
regular people who meet their workout needs rather than working
eTrainer’s competition includes two
out with fitness models and celebrity
other online gym concepts currently
trainers they cannot relate to.
Social aspect of exercise
in the market, exercise DVD videos,
eTrainer brings the true gym
Small group or one-one-one personal
on demand cable work out videos,
experience into the consumer’s
and smartphone applications. While
home.
boomers and youth ages 18 and under
training incorporation of technology to motivate and help track consumer workouts convenient fitness options such as 24hour locations and shorter, higher intensity work outs Staple workout activities and equipment such as free weights, treadmills, stretching and yoga
this is a lot of competition there are certain aspects of eTrainer that make it standing out ahead of its competitors. For instance, eTrainer will house aerobics classes in an actual gym environment. The user will be able to feed off the energy of a real live or pre-recorded aerobics class and instructor. Currently, all competitors simply have one instructor with a few assistants. There is no real normalcy to the environment. eTrainer users will benefit from working out with
When purchasing DVDs or watching workouts on demand, the consumer does not have a variety of options, unless they plan on spending thousands of dollars on a library full of DVDs. By offering a variety of classes and fitness levels, the eTrainer concept is in line with the two other companies’ on the market. However, eTrainer will stand out in the market place by offering competitive pricing, flexible routine schedules, online health tips, a 24-hour chat room with
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
access to health and fitness
over 900 million active users.
the world who cannot justify
professionals, customized workout
Tapping into social media networks is
spending $40-$50 a month on a gym
plans and the fact that it is based
a smart way to create brand
membership fee.
here in the US. Unlike the
awareness. According to the Nielsen
competitors, eTrainer is also a
Company survey, people throughout
concept that will be introduced in
the world spend 110 Billion minutes
addition to an existing gym
on social networks and blog sites.
membership. As part of the regular
That is roughly 22% of their time.
fee, gym goers will have access to the online library of classes if they prefer to work out at home, if they plan to visit the gym, they can also take classes on their own schedule while using equipment at their gym and a pre-recorded class.
The United States is the largest country in total number of health clubs. Australia and Brazil are also at the top and have seen revenue increases up to 5% since 2011. Unfortunately, Europe’s economy struggles and has seen a decline 2%
Online and fitness industry:
over the last few years. The online gym concept is a positive option for
About 1 million people join health
those who struggle paying for pricey
clubs every year. That still leaves 90%
gym memberships. eTrainer is an
of the population that has yet to join
accessible solution for clients around
a club. As of May 2012, Facebook has
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
SWOT ANALYSIS Competitor- SWOT analysis: Strengths:
Franchisee opportunities Live interactive classes = direct contact with trainer and instructors Chat rooms to access persona trainers Healthy tips on website No contracts No joining fee No exit fee Recession makes online option more enticing
Virtual Gym TV pricing – UK
Pay as you go - $.90-$1.60 per session Monthly - $6.18 Quarterly - $17.32 6 months - $20.21 Yearly - $55.66 Offer two sessions free to try
Opportunities: Virtual Gym 24/7 – Australia
Increase market share by partnering with other online fitness applications Market to consumers outside their area – UK and Australia Social media links
Threats:
Weakness:
Classes not in gym environment Minimum participation to stream live events and interact with instructors
Only televised at certain times Must book class in advance Slow connections Website links don’t direct you appropriately None based in US Some individual classes are pricey Limited class variety
Larger competitors with more money and resources Duplication of concept Cost of keeping up with technology
No fee to join Monthly fee of $14 + the cost of classes Classes are approximately $10 per class – not all exercises offered had classes available Other virtual gym class goers can be heard but not seen. Only the instructor can see everyone attending the class You must pay in advance for classes and if you can’t attend must cancel within 24 hours to receive refund
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
SWOT ANALYSIS
eTrainer - SWOT analysis:
Allows families to work out at home together Adds an aspect of social gathering to the online format while still allowing at home users the privacy they desire
Strengths: Weakness:
No set class schedules; work out any time, anywhere Nothing like this available in US today Good solution for consumers who can’t afford a pricey gym membership Classes are recorded in an actual gym setting with normal everyday people Competitive prices Low cost to maintain service Out of top 10 exercises done at the gym, 7 can be done at home with eTrainer and minor modifications for equipment Conforms to the users schedule
Initial investment costs are high Liability for un-supervised workouts Specific customer computer hardware requirements Consumers are limited to the equipment they have access to
Opportunities:
Selling advertisement space on website Partnering with brick and mortar gyms to provide a unique addition to consumer’s typical gym membership
Terms and conditions agreement relieving company of liability Branded equipment, apparel, and social media community sites to aid in the social aspect received at a typical gym environment Ever evolving technology Offer free trial sessions Cater to all ages and fitness levels Alternatives for those who do not have fitness equipment (for example, canned goods for weights, gallon of milk instead of kettle bell, jump rope, hula hoop, stacked pillows to make an inclined bench, etc.) Customized work out plans based on users fitness level and goals
Threats:
Larger companies mimicking concept Keeping up with the changes in technology Consumer distrust of a new brand
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
Marketing Strategy Overview: Based on household interviews, 40% of all ages of the U.S. population
every major demographic–men, women, younger and middle-aged adults, urban and rural residents, wealthy and less affluent.
exercise or play sports regularly, 38% of females, 43% of males, 29% of those 65 years and over. Statistics show that just 10 - 15% of the population train regularly. That leaves 85 - 90% of people who are not training and often they are so overwhelmed that they don’t know where to start. Our main target group is nearly half (46%) of American adults who are Smartphone users including nearly
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
Niche Market: Niche 1: Who? Adults and young adults who are interested in fitting fitness program into their lives, but don’t have the time or funds to visit a physical gym Why? There is increasing ratio of individuals who wish to make fitness part of their lives but don’t have enough time. They seek an experience that is functional and that meets their personal goals – weight control, stress reduction, improving specific body parts or building sport or lifestyle skills. What? This group will expect their fitness regime to evolve with their
When? Literally any time 24/7– between classes, before
increasingly ‘wired’ and technologically enabled lifestyles. These
going out, while traveling, etc.
consumers are likely to seek to be active and also seek increasingly skilled professionals to meet their needs. This forum also offers peer support via Where? Anywhere - at work, while mobile, at home and even in bed online chatrooms. Size? Target Age 18-34 with any income level – 64% of Smartphone users
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
Niche Market: Niche 2: Who? Wanna-be Fit friends and family! Why? Family's fitness has become a growing priority as 68% of American households play computer or video games. Today, more than one-third of American population is overweight or obese. As a result, individuals are looking for opportunities for their partners or children to be active in an environment and physical fit for society. What? They require motivation to get up for an enjoyable experience, with movement and exercise as by-products are driven by fun, pleasure and sociability – not by effort and hard work. They need a flexible way to
When? Before or after work or school
squeeze a fitness plan into their busy, hectic schedules.
Where? Anywhere– home, between classes, on lunch breaks or while traveling Size? Target Age 35-54 with 15K+ income level - 50% of smartphone users
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
Niche Market: Niche 3: Who? Empty nesters and Senior Citizens Why? Perhaps no group is becoming a bigger focus for health and fitness professionals than the baby boom generation for a couple of good reasons. First, this group tends to have more discretionary income than younger demographics. Second, according to the U.S. Department of Health & Human Services, it's the least active group of Americans, so it represents a huge untapped market. What? They require different one-on-one personal training sessions as they can’t jump head-first into any group fitness due to the increased risk When? Any time of the day of injury.
Where? Anywhere- In the garden, on the balcony, in a park, in their living room Size? Target Age 55+ with 35K+ income level - 30% of smartphone users
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
and fitness professionals and customized workout plans.
Target Market Strategy:
It also offers an e-library of training videos and programs at a minimum cost.
eTrainer’s target strategy is based on understanding each niche markets needs and aspirations and also market place loopholes. Value
eTrainer is the only mobile application which offers fitness
for our customer is important as it relates to product usability and
plans for every age group with a virtual gym environment
effectiveness. To obtain and retain users, eTrainer has to deliberately
to feed the energy of a real time exercise session for the
explore beyond the fitness domain, recruiting experts from diverse
user. It’s the first mobile application that can be
fields that shape future trends, including technology, future thinking
customized according to individual’s body shapes, habits,
and health into physical training and activities as major target market
work schedules, lifestyles, physical strength and health
strategy.
issues. This application assists individuals in becoming more active and productive, while lowering the overall costs spent on a typical gym membership. This application will
Marketing mix:
also offer a unique spin for the typical brick and mortar gym locations, by providing an opportunity to expand
Product:
existing gym services and give a one-up on the eTrainer is the new cutting edge mobile application and online fitness
competition.
support for personal health and fitness. eTrainer offers a variety of classes and fitness levels with competitive pricing, flexible routine schedules, online health tips, a 24-hour chat room with access to health
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
3. Social Media and YouTube:
Place/Distribution:
Sales pitch and awareness campaigns will run on YouTube and social networks like Facebook, twitter, mySpace,
eTrainer’s distribution channels including the app store, Android and
LinkedIn and Google Plus.
BlackBerry mobile application stores, on Social Networking sites and
4. Send SMS and emails to Target Market:
via web. eTrainer also offers partnership with gyms and health clubs
Target market will be send SMS and emails to advertise
that wish to include their physical training programs and routine in
eTrainers features, price and packages.
the eTrainer’s library. There is a referral program for existing
5. Free trials:
members to refer new members for membership.
Two week free trail for new members as an incentive to come and test out our virtual gym.
6. Alliance program: Partnership with leading gyms, health clubs and skilled
Promotion:
trainers that wishes to include their physical training
1. Online Advertisement: A cohesive, easy-to-maneuver, and user-friendly Web site: www. eTrainer.com
7. Referral programs: eTainer has referral program for the members that have
2. Radio:
bought 6 months and 1 year subscription. It gives 15 days
Advertisement on local radio stations, during the following time ₒ Last and first month of the year when people are making their New Year’s resolutions ₒ Spring and Summer, when people are thinking about bikini season
programs and routine in the eTrainer’s library.
and free month for every new member they bring that buys 6 month or 1 year subscription, respectively. It’s simple - the new member has to provide existing members referral code.
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
8. Membership packages:
Price and Revenue Stream:
eTrainer offer potential new members different membership packages - 1
ₒ No fee to join and free basic service - This include
month-6$, 3 months-15$, 6 months- 26$, 1 year- 48$.
9. Webinar from skilled trainers:
browsing the trainer and healthy tip area , access
eTrainer offers weekly and monthly seminars at special rates about the
to forums, support and advice, 1 free video to
benefits exercising, special techniques in exercising, special workout,
sample, brief content
stress and pain relieving activities, fitness gaming, staying and eating
ₒ Basic Membership packages - 1 month–$10, 3
healthy and so on.
months– $25, 6 months– $45,
10. Blogging:
1 year– $85 (Monthly Fees are less than a normal
By users sharing feature of daily blog by eTrainers on weight lifting,
gym membership)
wellness, diet, sports and physical fitness, and experience with friends
ₒ Customization plan packages: 1 month–$15, 3 months– $40, 6 months– $75, 1 year– $145
and family. 11. Press Releases, referring site and Word of mouth:
ₒ World-wide trainer Library access: $2/month
Spread the word among corporate, friends and family to continue a
ₒ Webinars: $10–25/per session
cycle of eTrainers advertisement.
ₒ Selling targeted advertisement space on the site – 30 second commercial before videos, $15k and Banner ads on free versions-, $10k ₒ Home Equipment Sales at the site ₒ Royalties ₒ For the videos, eTrainer share the profits with their creators and the gyms where they are recorded.
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
Implementation, Evaluation and Control Marketing Research:
availability for the customer is what makes eTrainer unique.
Traditional gyms offer its customers a place to achieve or retain physical fitness, socialize with like-minded people and the opportunity to gain knowledge from available experts in the field. A lot of gyms have changed their hours to 24-7, in an effort to allow their customers convenience and flexibility according to their own busy schedules, but the class times are still set by the gym and instructors. eTrainer delivers the expertise of fitness trainers and professionally designed workout sessions– all of which can be selected and scheduled by the
“Anytime. Anywhere. No excuses.” By delivering on this sentiment, eTrainer becomes a tool for all ages and all levels of fitness seekers. The product we are selling is YOU. By putting the combined resources together in one app, personal goals and accountability is literally in our customer’s hands.
user. This high degree of control and
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
Because convenience is one of our main
potential advertisers, which will be the
biographies will be featured on the site to
selling points, the technology behind this
primary source of income for the
add credibility and help market the
app must be flawless, fast, high quality,
company. These ad sales, along with
product. As the company grows, pivotal
technically sound and friendly to all
investment dollars, will fund the
consultants will become permanent
smartphones and both Mac and PC users.
development of app software, video,
employees
Organizational Structure and Plan: Currently, there are four members of the eTrainer team. Sonia Ghazali, Shannon Dunn, Skania Florestal and Melissa Hill, all of whom are invested partners. This group will be responsible for marketing, sourcing investors, administrative duties and will fill the positions of CFO, CEO, President, and CCO. Once startup costs are collected from interested outside investors, this team will grow to a larger team. A salesperson is needed to begin soliciting
sound and lighting equipment for recording workouts in partnering gyms, and advertising for eTrainer.
Financial Projections: eTrainer has a financial goal of solvency in
Consultants will be utilized for positions
two years. Financial analysis indicates that
such as web designers, graphic designers,
the company could expect to achieve a
programmers, app developers, nutrition
25% rate of return over a five-year period.
and fitness experts, videographers and
Revenues from advertisers and
editors. This will keep overhead low in the
subscriptions are expected to average $
formative portion of company
550,000 annually over the five year
development. Consultants will be selected
period. Start-up cost is estimated at
based on years of proven experience
$500,000 to design and implement the
within their respective genres.
app and website and to develop fitness
Nutritionists and trainers will be
content (videos). Costs to maintain the
accredited and decorated, as their
website and app will be minimal once they are successfully up and running.
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
Target goals:
App sales totaling $500,000 by the end of 2013
Advertising revenue of $500,000 by the end of 2013
App sales totaling $1.5 million by the end of 2015
Advertising revenue of $1 million by the end of 2015
Five Year Projection REVENUE
2013
2014
2015
2016
2017
Subscriptions
450,000
750,000
1,000,000
1,250,000
1,250,000
Library access
25,000
125,000
250,000
250,000
250,000
Webinars
25,000
125,000
250,000
250,000
250,000
Ad on videos
350,000
500,000
750,000
1,000,000
1,000,000
Website banner ads
150,000
250,000
250,000
300,000
300,000
Production Costs
500,000
300,000
250,000
250,000
250,000
General & Administrative
100,000
200,000
200,000
200,000
200,000
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa
Bibliography: http://pewinternet.org/~/media/Files/Reports/2012/Smartphone%20ownership%202012.pdf http://marketingsimulation.blogspot.com/2007/08/marketing-simulation-4-gym.html http://www.recmanagement.com/feature_print.php?fid=201203fe01 http://www.healthguidance.org/entry/6299/1/Physical-Fitness-and-Exercise-The-Facts.html http://www.virtualgym.tv/ http://www.virtualgym247.com http://www.stevejack.com/downloads/special%20reports/SPECIAL%20REPORT%20Value%20of%20Social%20Media%20to%20the%20Fitness%20and %20Leisure%20Industry.pdf
http://www.ihrsa.org/media-center/2012/5/23/the-2012-ihrsa-global-report-analyzes-industry-performance-a.html http://www.ihrsa.org/media-center/2012/1/11/top-health-club-trends-for-2012.html http://www.prweb.com/releases/2011/10/prweb8894650.htm
Group 2: Dunn, Shannon |Florestal, Skania |Ghazali, Sonia |Hill, Melissa