Group 7 presentation: uGym
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Group 7 presentation: uGym Presentation Transcript

  • 1. Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Executive summary : uGym, fitness close to U! Market opportunity: Highlights Value proposition Competitive environment Key Partners Customer segments Customer relationships & channels Revenue streams Cost structure Group 7
  • 2. uGym, fitness close to U! Value proposition: UGym: The only service, that allows you to carry out your personal fitness programme, wherever you are. For a fixed subscription fee, you can access connected gyms near you and have unlimited usage of online workouts. It will change the way you access the gym and give you total control on your time and movements in order to have your trainings where and whenever you want. Business opportunity: Customers pay a subscription fee, of which 70% will be paid out to the uGym partners and from which 30% is kept as revenue for uGym, to (re)invest in marketing and go into profit. Connecting gyms and gym teachers all over the world with people who want to attend (more) gym classes and do fitness exercises, but are blocked in some way to do so. Could be traveling, having a baby or being afraid of visiting a gym. Customer benefit: one subscription, one app, one fee. With a big choice and variety, low barrier to try and use and transparent and predictable costs. Partner benefit: extra marketing channel, reaches extra customers, low cannibalisation, pay as you grow-model. uGym benefit: small team of online experts, big base of gyms and sports teachers, shared revenue model
  • 3. uGym, fitness close to U! our offer enter zipcode get a subscription choose an online download class or start exercise gym or a gym near visit online or real you gym our roadmap build platform & app for UK january launch beta recruit 500 gyms version & 100 online trainers february march april full launch may roll out june 2014-2016
  • 4. Market Opportunity: Highlights Gyms are expensive Classes don’t fit into schedules of people Where’s the gym when you need one? Gyms can feel intimidating Fitness services - Spike in Jan/ Feb as consumers are looking to kick start their fitness - soon drops off as consumer 'lose the time' - Huge amount of competition - Gyms ; Group fitness ; Personal Trainers ; Classes - Gym goers show more attendance for classes/ group fitness - the need for class exercises is increasing
  • 5. Value proposition ● ● ● ● Website & App Online & Offline Content Unique access to fitness facilities nationally (eventually globally) Gym ratings and offers WHO? HOW? WHAT? ● ● ● ● Website and App (compatible with smartphones and tablets) Subscriptions and Ad Hoc access Downloadable classes and live content Gym ratings and partner offers ● ● ● People with busy schedules People who aren’t comfortable entering the gym for the first time People who don’t live close to a gym
  • 6. Competitive environment ACTIVITY TRACKERS Nike Plus, Endomondo, Runkeepers, Runtastic. NUTRITION HELPERS Loose it Fooducate SLEEP AIDS Sleepbiot White Noise Lite WORKOUT GUIDES Nike Training Club, Jefit, Workout trainer, Pilatesanytime. Fragmented offerings Local language only, max 2 languages Community support structure Monthly subscription, Free Apps, Free Trial FITNESS LOCATORS Fitness center locator Anytime Fitness Finder EXERCISE GAMIFICATIO N Nexercise Source: Digital trends, BEST ANDROID FITNESS APPS, By Drew Prindle
  • 7. Key partners, activities & resources Partners - Gyms/sports venue/personal trainers Stakeholders - advertisers, brands (sports, nutrition & associated products) The ultimate global fitness experience, in your choice of language, especially selected and highly recommended on/offline services for the international mobile citizen. Combined offline/online route to market Partners Offer current customer base a new offering, improve retention Increase in revenue Global reach of mobile citizens Brand synergy New customers from live database Stakeholders Top countries interested in Fitness searches 06-12 2013. Source: Google Trends New marketing channel Image source: www.123rf.com RESOURCES available ● ACTIVITIES on offer ● ● Analytics: performance, trends, segmentation (behavioural, geographical, demographic etc.), predictive behaviour Joint marketing/events ● Support for partners e.g. personal trainers who need contacts for video production Sales team to develop partnerships
  • 8. Segmentation Geographic factors (where are the customers) Region Cities Language all regions, worldwide accessible UK based first; then larger cities (200K+ inhabitants) English first Demographics (who are the customers) Age focus: 18-70 Gender all Life cycle all - bachelors, newly married, full nests Income all Sociographics Cultural Influences → Religion: all religions welcome, where sports/ physical exercises are tolerated Influence of Social Class → Basic options available to all social classes Psychographics (why customers buy our product) Generation Nationality Lifestyle BabyBoomers, Gen Y, Millenials (at a later stage: including younger and older generations) all sports and health-oriented, explorers, adventurers, busy travellers, workers who are short in time
  • 9. “I need a flexible workout place that doesn’ t require me to commit to a place and a certain time.“ Personas Sara Rodriguez 39 years, 3 kids, married, make-up artist DIGITAL USAGE UGym USAGE INTENTION I’m a semi-professional user of computers, I love my tablet and iPhone and I consider myself as an intermediate internet user. I use my phone extensively while my laptop is used for e-mails. I use the web in my free time to research latest trends in hairstyles, fashion, as well as health and fitness related topics. I have heard about UGym, which makes me wanting to know more, as it would save me a lot of time. However, I’m not yet sure on how to use it. “I travel 60% of my time, therefore I need to be able to work out wherever I am and at my preferred time. Getting access to decent gyms would also be a plus, especially since I don’t have the time to do such research.“ Marc Sullivan 40 years, single, lawyer DIGITAL USAGE UGym USAGE INTENTION I do not belong to the early adopters. I rather wait and see how things develop and then make my buying decision. I have an iPhone, as well as a Blackberry and a laptop. I’m a casual user of the Apple products and intensive Blackberry user for work purposes. I have heard about UGym through my friends. As I’ m travelling a lot, I’m curious to try it out. It seems perfect for me, as I can exercise whenever and wherever I want. It will help me to stay motivated and exercise regularly. The app also helps me to locate gyms while I’m away from home.
  • 10. “I know that I need to exercise, however going to the gym is not an option for me. Today’s fitness hype is not for me. My daughter showed me the iPad which had this great app, allowing me to exercise whenever and whatever I feel like. I might try it out…” Personas Beth Philipps 59 years, housewife DIGITAL USAGE UGym USAGE INTENTION I’m not used to smartphones or tablets. I have a simple mobile phone, however having discovered the iPad through my daughter, it made me excited to try it out. Will I manage it? It seems so strange to navigate with your fingers. The thought of exercising within my four walls and choosing what I want to do, comforts me. Also the fact that I’m not tied to a strict schedule motivates me. “I am very excited to try this app out, as it will help me staying fit, explore new classes and stay up to date of what the latest trends are. I am sure that in my region other people are going to join as well, especially since it has this great translation option, allowing to follow classes from another part of the world” Olga Afonina, engaged, 35 years, Sales Manager DIGITAL USAGE UGym USAGE INTENTION I’m used to my Android phone, as well as my tablet. I’m a frequent technology user and therefore consider myself as an early majority adopter. I found UGym through a friend. I’m happy that I can follow high quality Pilates classes regularly, as well as to try out latest trends within the fitness sector. I’m quite frustrated because I don’t find a decent place here to work out Pilates. Therefore I would be highly motivated to try UGym in my native language.
  • 11. Acquisition Channels: CRM: •Google Store-app store •Subscription Channels •Affiliate marketing •Weekly Deals, seasonal deals •Partnerships ( Sports Brands – Supplements & Other •Offering unrivalled content Aps, Other fitness aps, Gym’s, Hotels, Spas, •Supplement & Equipment discounts weightwatchers) •Email/Push Notifications to lapsed customers with •Online advertising special ‘returner’ offers •Social media •Customers feedback •Organic and paid search marketing •Request for comment and rating •Direct Sales to B2B (companies, Hotels, Gyms etc…) •Include new streams on the market. •Public Relations •Forums •Content marketing •Referral programs •Events and Conferences •Referral Programs
  • 12. REVENUE STREAMS Core Sources of Revenue ❏ ❏ Subscriptions – This is the main source of revenue for the business Personal trainers – Revenue from the value added services such as personal training sessions from fitness experts. Affiliate Marketing Activities ❏ ❏ ❏ ❏ ❏ Web shop commission – designated area for selling fitness accessories and books Cross selling – In addition to the web shop, the fitness accessories can be promoted throughout the website alongside the fitness videos. For example: Yoga mat next to the Yoga video. Ads on the website – Third party advertising on the website. For example banner and or text ads E-newsletters – Selling space on the enewsletters to promote third party products/services or sending branded partner enewsletters Subscriptions from partner stores – Offering commission to stores for referring our services to their client base. Referrals and Customer Retention ❏ ❏ Referrals – Building customer base by offering attractive plans to friends/family of existing clients Customer Retention programmes – Offering special rates to loyal customers
  • 13. 12 Months 6 Months 3 Months Website Personal Builder (www.godaddy.com) $12 $6 $3 Website Domain Name Ugym.co (www.domain.com) $0 $0 $0 Website Economy Linux Hosting with cPanel (www.godaddy.com) $23.88 $23.88 $20.97 Website Standard Search Engine Visibility (www.godaddy.com) $35.88 $11.94 $5.97 $1,799.88 $894 $447 Budget for Online Marketing (www.google.co.uk/AdWords) $24,000 $12,000 $6,000 Application for IOS & Android + Maintenance $7,000 $7,000 $7,000 $0 $0 $0 $6,000 $6,000 $6,000 $390 $195 $97.5 $2,000 $2,000 $2,000 $240 $120 $60 COST STRUCTURE Website Maintenance incl. SEO, Traffic Stats, Unlimited Design & Interface changes for 149,00/month (www.website-maintenance.com/pricing/) 1 Operation + 1 Marketing + 1 Administrator (could be one of us) Design the Platform (Website & App) Merchant Account for processing online credit and debit card transactions ($32,5 / Month)(http://www.worldpay.com/onlinetrading/index.php? page=accept&sub=ima) Contingency CDN (https://www.cloudflare.com/plans)
  • 14. BREAKEVEN ANALYSIS BASIC PLAN PREMIUM PLAN VIP PLAN 10$ / MONTH 25$ / MONTH 50$ / MONTH Sample BASIC PREMIUM VIP 30% revenue share $3 $7.5 $15 No of users 9,682 1,107 277 Mix by user 87% 10% 3% Mix by revenue share 70% 20% 10%