1. 1 | P a g e
Situational Analysis
The Company:
Moikit: Location
Moikit is a Chinese based company, physical address 701-703, Building #A, Bao'an
Internet Innovation Industrial Park, 2005 Xingye Road, Xinxiang Sub-district, Bao'an
District, Shenzhen (Exit D, Pingzhou Station, Metro Luobao Line) Postal Code: 518101
Tel: 0755-23289001 Email: info@moikit.com +86-4006-585-580.
History of Moikit the Seed
This strategy constitutes a cumulative 12 years planning and creating. The following are
expansions into the cost to profit analysis realization, and implementation of active
phases with production, marketing, and supply chain determinations for the customer of
Moikit. A small design company Moikit’s product, “The Seed”, is an outsourced
manufactured product with two stages of production. The Smart Cap 95% made in
China and the metal bottle bottom piece made in Japan.
Moikit is faced with strong competitors in the American market. Attempting to reach with
this particular product an untapped market. Larger existing manufacturers produce
similar technological features and inferior quality bottles.
2. 2 | P a g e
Moikit’s goal is to use the $582,623.00 raised from initial donations, to produce products
to distribute to Kickstarter and Indiegogo campaigns. Next, Moikit plans to produce
product, develop distribution and gain market share in the USA with the remaining funds
through production, marketing and distribution.
The Seed Mission Statement:
“Moikit goals are to create the most affordable smart bottle to help people stay hydrated
and developing healthier lifestyles. Seed’s innovative Air-Elastic technology monitors the
user’s daily water consumption by measuring the amount of air remaining in the water
bottle. Using smart algorithms based on an individual’s metabolism, Seed’s digital lid and
connected apps remind users when they need to drink more water. Seed also measures
water temperature, provides the user with hydration reminders, and links with health and
fitness apps all while retaining the form and function of a classic water bottle. Seed can
be connected with numerous fitness apps, including Apple Health Kit, to allow users to
keep track of their hydration on their preferred platform.”
Who is Moikit?
Moikit is an internet supplier and web design company. This is based on the end user
agreement (item 1 Moikit User Agreement referred to as mecare (Moikit)). Moikit is
specializing in application development mecare agreement 2 2.1. Moikit has endeavored
to create a smart water bottle called the Seed. The Seed helps keep people accountable
to their hydration needs. The Seed Water Bottle helps keep track of their daily water
3. 3 | P a g e
intake. This is a great product as it shows just how much water you are drinking during
the day.
When losing weight, the best way to start is by drinking more water. By drinking water,
toxins/chemicals are released from your body. Drinking water helps boost your
metabolism, cleanses your body, and acts as an appetite suppressant. It will help your
body to stop retaining water which will result in losing more weight. The recommended
amount of water to drink is eight to ten glasses of water per day, keeping your body
hydrated and helping you lose those unwanted pounds. (Bjarnadottir) From all of the
researched work, there really aren’t any environmental issues. The water bottle has a
copper inlay and nitrogen welding techniques that help the water bottle maintain its
shape/design with the stainless premium steel. (Prweb) Moikit’s goal is to sell The Seed
Smart Water Bottle in America. The following is analysis on the product and how the
product The Seed will be able to compete. (Louis Zheng)
Marketing Analysis
Seed’s selling method is based online through their company website rather than a
brick and mortar. Customers’ can order the Seed through their company website:
Indiegogo for $65 USD + tax and shipping, ending up to be around $70. Moikit partners
with website companies that use crowd funding such as Kickstarter and Indiegogo.
Consumers can support the Seed through crowd funding through Indiegogo or
Kickstarter until February 9th, 2016. Some of the incentives to purchasing the Seed
through the Kickstarter were:
4. 4 | P a g e
Introductory Savings of 39% off of the retail price
Ships worldwide, Restrictions apply.
Offer a variety of sizes and colors.
Two Seed Smart Water Bottles for the price of $99 (saving $30-$50)
Other products that Moikit sells are Cuptime 2. Cuptime 2 is very similar to the seed.
It can calculate your next drink time based off of your water intake. This is based off of
the data you have entered. It asks you to enter personal information, including the
amount you exercise and your environment. If you have a water shortage it can vibrate
to alert you and help you get in the habit of drinking water.
With over 6,071 views of YouTube, Moikit has been successful with Cuptime 2.
Some of Moikit’s products and brand lines are software and smartphone apps. When
purchasing these products such as the Seed or Cuptime 2, you need to have an app
that will work with the software on your smartphone device. The app is free and is
compatible with smartphones such as your android and I-Phones.
Moikit uses and indirect online approach to help market their product through social
media sites such as Facebook, YouTube, Indiegogo, Instagram and Twitter. Moikit
promotes through crowd funding websites such as Kickstarter and Indiegogo. Through
online promotion, Moikit will be able to cut down on advertising costs and sales
promotions. (Louis Zheng)Indirect Competition **ADDED*
5. 5 | P a g e
SocialMedia Presence
7 Followers on Google +
94,000 total views on You Tube (30,000 views from California Google Analytics)
Indiegogo 333 subscribers
Kickstarter 1000+ subscribers (25% signed up from a California IP Address)
Instagram 15 posts 614 followers Moikit follows 59
Facebook 9571 people “Like” Moikit (Approximately 20% from California)
Twitter 1187 followers 54 tweets following 40, likes= 37
While initially the numbers looked low for social media. A comparison of competitors
found equal numbers of Views and Likes in similar time frames for like products.
Industry Analysis
The product of The Seed, fits in the categories of fitness, health, and gyms in the US.
It’s all operated in exercising, physical fitness conditioning, recreational sports, fitness
instructors, and operators involved in facility management. The supply chain overviews
all the key drivers being participated in sports, spent time of leisure, per capita
disposable income, adults from ages of 20-64, and a yield on a 10 year treasury note.
The demand industry is primarily fulfilled by consumers. Moving on to the supply
industry, it all consist of manufacturing of sporting goods, gyms, exercise equipment,
and involvement of contractors that work with heating/air-conditioning systems.
6. 6 | P a g e
The nearing future over a five year period to 2021, this industry has a success outlook,
benefited from consumer spending with the help of discretionary income. The increased
discretionary income allows gyms facilities to attract more memberships, keeping
personal/group trainers busy, and fitness classes growing in popularity. The forecasted
revenue is expected to grow at a rate of 3% at $31.5 billion dollars, meaning more
consumers are buying out higher cost services. These services include health services,
trainers, and guidance towards nutrition. An expectation of profit growth from 10.4% in
2016, is expected to reach up to 12.4% by 2021. These increases are bound to be
success from higher marginal services, group training classes, and bolstering retention
rates.
The industry life cycle is currently continuing to grow, which defines consumers boosted
interest for fitness and health. Public health awareness is brought by fitness and health
campaigns that keep consumers more aware, and view gym memberships as a vital
expense. Future growth is more than likely to continue in participation of women and
men, dealing with sporting events within communities. Another key feature towards
growth in the industry’s revenue, which is continuing to grow quicker than the economy,
rapid changes in technology, and growing popularity of new products and brands.
Competitive Analysis
The seed was created by Moikit. This campaign is a successful crowd funded enterprise
through the website, Indiegogo. Seed’s Indiegogo was launched back in November,
12th 2015. This campaign was set to run for 30 days. The Seed had hoped to raise
$30,000 in order to fund mass production. This funding campaign has raised over
$582,455 USD. This amount is well past their goal of $30,000 USD. There some several
7. 7 | P a g e
Smart Water Bottles on the market today, making it a competition for the Seed. While
creating this product, Moikit designers were looking for a Smart water bottle that would
help consumers meet and maintain their hydration needs. (Louis Zheng)
Consumers are wanting a water bottle that is durable, reliable, and will live up to their
expectations. Seed started to ship to their customers in January of 2016. Moikit created
the Seed so that it would meet and exceed consumers’ wants and needs. Some of the
features of the Seed are, an LED touch screen, a water intake reminder, premium
stainless steel, 1-2 year battery life with an Ultra-low power Bluetooth 4.0. It also is an
air-elastic water consumption tracking technology, a water consumption tracking
feature, a stale water warning, a temperature preservation and finally a copper inlay and
nitrogen welding techniques. The major competitor’s features and benefits that Seed
competes against are as follows: (Louis Zheng)
1. Thermos Smart Lid Water Bottle
Thermos is The Seeds leading competitor, as a global company founded in 1904, and
have been selling everything from mugs, coolers, lunch products, water bottles, food
jars, and specialty items. Their main headquarters are located in Schaumburg, IL.
Thermos sells online as well as in sporting goods stores global wide.
Thermos’s products are sold in sporting goods stores. Last public record before
returning to private holds was 2009 during a buy-back of stock $259 million dollars in
profitability. Even with the economic downturn of 2009 expected growth was 1 to 2% a
year.
8. 8 | P a g e
Thermos currently has a market share of 5.3%. (IBISWorld)
Thermos created a new product called Thermos Smart Lid. Thermos Smart Lid was
released on October 28th, 2015 and is designed with a smart technology that will monitor
your water intake and temperature. It communicates through Bluetooth technology. This
technology helps you reach your daily hydration goals. Thermos is made from a BPA
free, impact resistant and durable Tritan polyester material. Some of the features for the
Thermos include connecting to your Smartphone apps, Smartphone watches, Fitbits,
helping you to stay on track with your goals and monitoring your water temperature. The
Thermos also has a micro USB socket that charges up to a 12 hour battery life, and
retailing at $60. (Product Specs)
2. BlueFit Smart Water Bottle
BlueFit was established in 2012 by Jonathan Cook and David Morton. Their main
headquarters are located in Burlingame, CA. They mainly sell their product online.
BlueFit crowd sourced on Indiegogo. They have raised $74,843 USD of $150,000 USD.
They are working on expanding their company and they ship worldwide. BlueFit is a
smart water bottle designed to track your water consumption on a daily basis. It will
automatically record data on your smartphone as well as record your time and the
amount of water that you drink. If you aren’t drinking enough liquid, The BlueFit, like its
competitors include features that have software that is compatible with most android and
iPhone. BlueFit is made out of glass with a silicon sleeve that protects it from impact.
BlueFit was released on September 25th 2013 and has technology that allows you to
9. 9 | P a g e
enter information about yourself through the app such as your weight, height, age,
temperature and humidity. (Cook/Morton) BlueFit retails for $59. (BlueFit Bottle)
3. Flow Smart WaterBottle
Flow came out in November 2015. Flow is only sold online but uses social media sites
such as Pinterest, Facebook and their company website, Gadget flow. Its main
headquarters were not applicable. Flow is an advanced personal hydration device that
monitors your daily water intake and reminds you if you need to drink more water. Flow
is a filtered water bottle made out of coconut shells and a glass insert that helps you
stay in control of your hydration and made out of 100% of recyclable material. Some of
the features for Flow include environmentally friendly, connects to your smartphone or
smartwatch, helps you stay on track with your goals. This app also allows you to enter
you age, weight, height, activity level and your environmental situations. It retails for
$70. (Timms)
4. HidrateMe Smart Water Bottle
HidrateMe was launched in 2014. The main headquarters are located in Minneapolis
MN. HidrateMe is sold primarily online using social media sites to help promote their
product. They use sites such as Facebook, Twitter, Kickstarter and Instagram.
HidrateMe is very similar to the Seed. It reminds you to drink water throughout the day,
glowing when it’s time to drink more water. There is a companion app that helps you
track the amount of water that you drink so you can be sure that you’re getting enough.
Some of the features of this water bottle are dishwasher safe, has a replaceable battery
that will last up to one year, BPA free and leak proof. HidrateMe holds a max of 24
10. 10 | P a g e
ounces (710 ml) of water. Hydrate me is available in a variety of colors such as Iceberg
White, Bamboo Green, Ocean Teal, Crystal Pink and Obsidian Black. It has far
surpassed its goal of reaching almost $130,000. It retails for $45. (Bell)
5. Sportline HydraCoach - Intelligent Water Bottle
HydraCoach was founded in 1999 by Craig and Kelly Perkins. Craig first had an idea for
this product when in 1996 he was climbing Mt. Whitney and fell ill from dehydration at
13,000 feet. His wife Kelly, was also on a hike recently after a heart operation, when she
ran out of water four miles from the nearest stream. Together, Craig and Kelly decided
that they needed to create a water bottle that would help them keep track of their
hydration intake and know just how much water they have left. HydraCoach is a
worldwide company that is sold exclusively online. They are a privately held company
based out of California. It is an interactive water bottle that calculates a person’s
hydration needs. This product motivates you to reach and maintain your hydration goals
throughout the day. This product like other competing products utilizes a smartphone
app. They use social media sites and their company website: www.sportline.com, and
Amazon to sell their product. It is a product that has been on the market for a while.
Features of this smart water bottle include a personal hydration monitor, a drink monitor,
your overall average consumption, a time tracker and a sip tracker. HydraCoach retails
for $25. (Hydracoach)
With research our team found that Sportline-HydraCoach are an indirect competitor,
being lower end in technology, and quality. Our team have analyzed by comparisons of
other products on the market. Our more direct competitors are Thermos (our major
11. 11 | P a g e
competitor), BlueFit, HidrateMe and Flow. We will tend to see Sportline-HydraCoach in
stores such as Target because you aren’t going to get that sales representation.
Economic Analysis
Costs of living expenses are primarily fuel and food costs that are directly attributed to
the performance indicators of key economic drivers like disposable income. The United
States Unemployment is marginal holding at under 5%. On average the national outlook
is good for the US consumer to continue spending trends. Consumer spending is
expected to continue with compound growth of 3.06% over the next five years.
(IBISWorld)
This is a favorable condition as advancements in fitness app technology is only ten
years old. Smart Water bottles are a newcomer on the market at four years. Business
Insider reported stalled growth between 2010 and 2011 for these Tech toys. However,
Fit Tech has recovered with 500% increases annually in this market. (Analysis on
SmartWatchs) Fit Tech sales were 3.3 million units last year, the market is very much in
growth stage with a clearly dominating company FitBit in the lead for wristbands.
(Gustafson)
Political
The upcoming presidential elections for 2016 will be a factor for foreign trade.
Inflation may be an impact in the U.S. and China, while the U.S. is estimated to have a
slower consumer recovery due to replacement technology utilization. All indicators show
that after slower than expected growth in the first qtr. Will still give way to stronger
consumer dollar and increased consumer spending (USA Today).
12. 12 | P a g e
China has an open road towards sustainable growth and optimism into the business
areas from a rebalanced economy. The increase of high numbers in growth from Asia,
Latin America and Africa has been shifted by the growing demand from China for iron
ore, copper and oil. Most barriers to trade have been lowered, education level of
workforce have improved, and cellular revolution has been almost signaled everywhere,
and increased political clearness. Most innovative and advanced economies are in need
for a stronger government. Far reaching socialist movement into structural reforms that
are favored in simple solutions. For a restored political trust, there is a demand for
legitimate wage increases, better welfare and in all, more jobs. Governments like China
are investing in a stronger middle class.
Legal/RegulatoryAnalysis
The U.S.-China Trade in Advanced Technology Products states, “The U.S. Census
Bureau, had a total of $154.6 billion. All of the ATP products accounted for 33.1% of
total U.S. imports from China, compared with 19.2% in 2003. Some see the large and
growing U.S. trade deficit in ATP with China as a contender that signifies the growing
international competitiveness of China in high technology. Others dispute this, noting
that a large share of the ATP imports from China are in fact relatively low-end
technology products and parts, such as notebook computers, or are products that are
assembled in China using imported high technology parts that are largely developed the
globalization of supply chains makes it increasingly difficult to interpret conventional
U.S. trade statistics.” (Wayne)
13. 13 | P a g e
The seed powered by Moikit, has a global user-patent for Air-Elastic water monitoring
technology. The purity of Seed comes from aero physics technology, which measures
the volume of air in the container.
The Seed’s smart lid technology is compatible with various bottle shapes, functions and
materials, including stainless steel, plastic, glass, etc. Powered by Moikit, while any
water bottle can be put to place as a smart device. (Moikit)
With social media being a dominant setting, a tech driven shift is keeping cost pressure
under control. Many startup companies have been putting up strong growth numbers for
recent years, yet the macro-economic sector has been on a weaker side. This could be
due to growth from low levels. Each year changes with more and more consumers do
more shopping on online services like banking; meaning broader implications may be
more pronounced having greater impact on consumer spending. Profit margins and
prices are being pushed from existing firms adapting to increased competition. (6
Factors)
Moikit as a foreign importer into the United States is required to maintain a localized site
with-in the United States. Hire and employee, US national and maintain an US address
for warranty and return complaints. (Customs and Boarder Protection)
Addressing the issue of return and supply chain management to be compliant with CBP.
Here is the recommend companies that specialize in foreign import and return. Ozburn-
Hessey Logistics Based. Genco ATC. Phoenix InternationalSpecialty: Reverse
Logistics, Freight Forwarding and Customs Brokerage.
14. 14 | P a g e
By identifying the level of supply chain and company positioning on Patterns of
Collaboration Table one (Frayret). This will move the product from its current position of
Outsourced, Local Decision Making through Improved Local Decision Making in the
United States and end with Decision Objective Alignment as the goal level for this
product to stabilize too after launch.
Having identified the current level of collaboration we can meet the needs of the
company. The marketing campaign should be aliened to compliment the developing
supply chain not tax it.
TechnologicalAnalysis
Smartphones and its technology has become increasingly common throughout the past
few years. It has become a staple in everyday lives of the generation X and Y
consumers. According to A Portrait of Smartphone Ownership, 64% of Americans now
own a smartphone which is up from 58% in 2014. This 64% is about two thirds of adults
in the U.S who now use smartphones and is up even higher from 2011 when only 35%
were using smartphone technology.
Further research showed younger demographics with higher income levels are the
highest users of smartphones with the demographic of ages 18-29 making up for 85%.
78% are college graduates and 84% are living in a household with an income of over
$75,000 per year. (Smith)
Mobile devices have become the primary usage for social media users. 80% of internet
users own smartphones with an estimated 2 billion to own one by the end of 2016. 7%
15. 15 | P a g e
of new emerging devices used to search the internet are smart wristbands. Also with
wearable technologies, 36% who own fitness trackers in the U.S are 35 to 54 years old
are mostly women.
With smartwatches, these owners are male between ages 18 to 34. With these
electronic devices and smart technology and income there is a correlation between
these two and their household incomes. 41% of the fitness trackers have in income of
over $100,000 and half of the smartwatch owners made less than $45,000. (Gustafson)
Another demographic is the teenagers as they tend be online “almost constantly”. The
device of choice is a smartphone and the teens in the age range of 13-17 say that they
go online several times a day (56%). Almost all of this age group has access to a
smartphone, over two thirds to be exact.
Facebook is the primary source of social media that this market uses. While Facebook
is the most consumed social media platform this doesn’t mean that this is the only one
they use. 71% report that they use more than one form of social media with Instagram
and Snapchat being the next biggest. Teens that come from higher income are higher
users of Snapchat and Instagram. While Facebook is still the biggest winner, status
means something. (Lenhart)
Older Generations also have a strong social media presence and can often be forgotten
in the tech world. Facebook leads age consumption by having 63% of users who are in
the age range of 50-64 with pinterest accounting for 27% of their users in this age range.
These are top two social media uses in the age range of these people. Income is a
factor with this group as they tend to have more money and disposable income and by
16. 16 | P a g e
looking at the income ranges, pinterest has the most users with the higest amount of
income.(Lenhart)
Technology as a whole is a fast moving market and can evlolve quickly, there will be
ever changing trends and also fast advancing technology. Keeping up to date with
advancements in technology is the trend and gaining market share will be important. As
internet and social media progress certain trends will become more popular in the
coming years. Real time engagement is an area that social media users thrive on and
the response time becomes smaller and smaller each year. 70% of Twitter users expect
responses from brands. 53% of those users expect a response in less than one hour.
This may become even shorter, when dealing with an issue or complaint. Integrating
faster response times by using advantages such as, social listening and automation
tools, which will help a brand establish an online social presence over competitors.
Along with this is having a platform like real time events offered by social apps likes
Periscope and Meerkat which allow live broadcasts to all users/followers. This allows
an almost transparent, behind the curtain feel of how companies actually operate and
has more than 2 million users. (Beese)
Shifting to online commerce-focused features social media will play a bigger role in
sales and customer engagement in the coming years. These sales have hit the $3 billion
mark, climbing even higher as social media is influencing purchasing decisions more
than retail websites. Among the social media sites using this avenue are Pinterest using
their “buyable pins” which allow users to purchase the product within the pin. Twitter
has also used this with their “buy button” by having users be able to purchase products
through tweets. Both Facebook and YouTube have also used these ideas too. Online
17. 17 | P a g e
comments and reviews are key as well with consumers being influenced by these posts.
A total of 88% in consumers are influenced by these reviews and comments. (Beese)
Socio-CulturalAnalysis
Some of the socio trends affecting the Seed include health and wellness. These trends
are on the rise. Consumers are heading into the gym purchasing more memberships,
purchasing more Fitbits or smart technology and necessities such as a water bottles.
The generations that are frequenting the gyms and sporting goods stores are X, Y and
millennials (Accouting Web). Sporting goods stores have an annual growth of 1.1%.
There is an expected annual growth until 2020 of 0.6% (IBIS)
California presented the most opportunity consistently ranking in the top 25 fittest states
as rated by The ACSM American Fitness Index and CDC. California had multiple cities
represented in the top ten positions ranking highest overall since 2008. These rankings
from ACSM were the source for almost all of the articles written in The Huffington Post,
The Washington Post, USA Today and other highly cited publications.
The West Coast CA, OR, WA represents the 3 states found in the top 25 of the ACSM
with Portland Oregon being at the top of the list. While California consistently placed
more cities in the list than any other state.
Spread out over a population WA - Washington Total Population: 6,724,540 OR Oregon
Total Population: 3,831,074 CA - California Total Population: 37,253,956 (GOV). Ages
18. 18 | P a g e
20-24=2,765,949/ Ages 25-34=5,317,877 Ages 35-49=7,872,529 this is a possible
targetable market of 39% of California for ages 20 through 49 (United States Gov).
Looking at these tangible target markets, Everest sees the multiple generation’s
opportunities such as:
Baby Boomers born between the years 1945-1964. Ages 50-71. This generation of
people are experiential, individualist, free spirited, self-believers and look for self-
fulfillment. Today’s baby boomers are healthier, richer, and a preparing for a second
phase of youth in their 50’s. As their children move out their income can be focused
elsewhere. They are also increasingly a web savvy demographic.
Generation X was born between the years of 1965-1979. Ages 39-50. This generation
of people are rebellious, independent, have short attention spans, are multi-career
flexible and have higher disposable income.
Generation Y, also known as millennials were born between the years of 1980-1994.
Ages 30-44, Y is prematurely affluent. This generation are more style conscious, tech-
savvy, independent, needy and socially-environmentally aware.
Millennials as those born in 1982 and approximately the 20 years thereafter. TBD kids
born in the last 10 years lack a designation. (Bump)
The Net generation was born between the years of 1995-present. Ages 15- This
generation is very web and technologically savvy, brand conscious, community minded
and pro-equality. This market is possibly under represented though this generation is a
little on the younger side, that introducing the Seed to them will help create brand
awareness and help market the Seed.
19. 19 | P a g e
S.W.O.T
Strengths (Internal)
Successful crowd funding through
Indiegogo raised more than 2,000
times funding.
High quality product made from
stainless steel.
- No BPH
Moikit is a web service and
design company.
Experience Utilizing Social Media
with sites such as Pinterest,
Facebook, Instagram and
YouTube.
Powered by Moikit, sensor has a
user patent.
LED touchscreen
Works with Fit Bits and Fit Apps.
Weaknesses (Internal)
Web design company
- Outsourcing manufacturing
Non-rechargeable battery
- Custom made battery
Low representation
Low interaction on social media
Supply Line/ Supply Chain
Undeveloped
Low Capital
Opportunities (External)
App and Fitbit compatibility
Health and Wellness trending in a
growth stage
Generations X,Y,Z and Baby
Boomers
Tech savvy wearables
Low unemployment > 5%
High Net Income (California)
- Men ages 18-34
- Women ages 35-54
Threats (External)
Election 2016 / 2017
Other smart water bottle
companies (Thermos, Hydrate
me)
Low Price Homogenous Self-
Serve Products (Personal Water
Bottles)
Grab & Go Bottled Water (Pepsi,
Coke, Nestle.
20. 20 | P a g e
Based off of the SWOT , using across analysis and removing Strengths that counter the
negative threats and removing external factors that Moikit has no ability to affect reveals
a better understanding of how to reach the identified target market. Initially the low
interaction on social media was deemed an internal weakness. While social Media
responses seemed low, the responses were over a three month period with little to
almost no advertisement. The Consumer Electronic Show was a driving factor in the
success promotion with little advertisement. CES represented The largest consumer
B2B convention in electronics with over 170,000 visitors and purchasing agents. Moikit
was an overwhelmingly favorite winning A Best Of CES Award at the show. This added
to the success of the social media campaign on Kickstart and Indiegogo. It’s High
quality, low maintenance sets this product apart from competitors with similar tech.
Moikit’s product is substantially of higher quality and will justify the final price as a
differentiating factor in placement within the market.
Marketing plan
Marketing objectives
Ideally team Everest would like to sell roughly 6,000 units monthly at $62 per unit.
Everest would also do a price matching discount offer of $5 to the first 3600 units sold to
help boost sales. Through Amazon, Moikit would sell around 600 units monthly at the
MSRP of $75 per unit. Everest would like to have 240,000 ads over a period of six
months that would be viewed on Tuesday – Thursday’s and Saturday – Sunday’s,
equaling out to be $2,400 on YouTube.
21. 21 | P a g e
Target Market
Moikit’s marketing position after weighing the differences of Internal Weakness actually
works in favor of the type of modern social media supported marketing campaign based
on the target market. The identified consumer markets are Tech savvy, Health
Conscious people with expanding incomes. Men ages 18-34 and women ages 24 – 54
with an emphasis on women 34-54.
Website tracking tools and observational count (where the profile was from) and IP
address indicated a strong presence of California. Respectively California has the
highest Population of all states at 40 million people and the most condensed number of
athletic stores national chains and privately owned. California has a total of 36% of that
population between ages 18-54 at almost a 50/50 ratio of men and women. This creates
a targetable base of 14,000,000 people. California has seen wages grow at a rate of
1.2% annually. All of these challenges actually creates the opportunity. Moikit strength
is its web based nature. Marketing with that strength in mind will be prominent and
crucial.
It is with customer education of product that the Seed will need to have a sales
representation in order to sell our product effectively. In order to sell the Seed (B2C)
Moikit will need to have Seed in stores such as Scheels, Gander Mountain, Cabela’s
and in local smaller sporting good retail locations. These stores will have a higher level
of quality and personal sales services. Sporting goods stores represent a possible
target market. With unemployment being low right now consumers will have more
disposable income. Sporting goods stores have a similar target market to the Seed.
(IBISWorld OD5599)
22. 22 | P a g e
Now, team Everest is going to highlight some different market segments. California has
two strong market segmentations, both parallel to each other, but differentiating the
advertisement into 2 areas. They may be crucial to aiding in the marketing campaign’s
use of advertising dollars within Social Media. California’s 40 million population is evenly
divided by 22% under the ages of 18 years, and 13% is 62 years or older. California
represents a population of potential customers of 25% target market a 10 million unit
share.
The tech savvy health concise California women ages 34-54 represent the largest
possible targetable market of 5,777,770. This market is represented by the most
employed of women being in San Diego, San Jose and Sacramento. More than 80%
have smartphones and Fitbit sales were strongest at a staggering 14% of all sales
around 2 million units over 5 years. Nike posted strong sales with Nike Fit with the same
group.
The tech-savvy, health concise California man age 18-34 represents the largest
possible secondary target market. A population targetable market of 4,622,221. This
market is represented by being highly employed. Men’s fitness representing the other
half of the population. Similar outreach reduces immediate advertising costs with both
markets being from San Diego, San Jose and Sacramento. California’s market is very
fluid, travel is common with this group. More than 80% have smartphones and Fitbit
sales were strong of all sales around 1.4 million units over 5 years. Fitbit posted strong
sales with the same group.
23. 23 | P a g e
Marketing Mix Strategies
Product
The Seed is a product of Moikit. It’s a hardware company that is committed to building a
healthier lifestyle in a smart way, by using state-of-the-art materials, hardware, and
software in every product. Some of the features the Seed has are LED touch screen, a
water intake reminder, premium stainless steel, 1-2 year battery life with an Ultra-low
power Bluetooth 4.0. It also is an air-elastic water consumption tracking technology, a
water consumption tracking feature, a stale water warning, a temperature preservation
and finally a copper inlay and nitrogen welding techniques. Moikit is devoted to helping
its customers develop healthier habits for a brighter future. Moikit’s design philosophy is
to focus on the needs of everyday life in order to promote a sustainable trend of healthy
living with its customers. They craft each product to meet practical problems with a
modern solution.
Price
The Seed needs to be positioned as the highly valuable product that it is. The higher
costs incurred during construction unit contribution of $24.00, demands a greater
premium. The higher quality product image also supports the value of the final MSRP of
$77.00.
24. 24 | P a g e
Distribution
Distribution would be managed by the selected company of Moikit’s choice. The
recommended company that fits with all the needs is Phoenix. With the cargo being
secured at the dock in China. Phoenix would route the container to a Los Angela’s Port.
Handel the inbound United States Customs paper work and transportation to warehouse
and distribute via JIT to Amazon or direct shipping to warehouse’s for large sales to
national franchises. These fees amount to 2.00 USD per shipped unit.
Phoenix also includes a return process included within this fee as a failsafe. While
initially the shipping expenses are higher due to the risk of return. At the 2 year contract
review Moikit can renegotiate the cost down as the campaigns success becomes more
defined or adjustments can be made based on return needs.
Promotion
Based on the information and analysis Everest has done, the team was able to come to
the conclusion of using types of promotion consisting of B2C and B2B along with social
media marketing. Using this Data has allowed Everest to come up with a concrete
marketing plan that includes the implementation of the top 3 segmentation groups
Everest is targeting. While the B2C will consist of selling through Amazon and the B2B
using gyms to sell directly to potential customers this will all be done using product
representatives known as “Planters”. These Planters will be found and implemented
using the strong social media campaign.
25. 25 | P a g e
Pull Strategy
Team Everest has decided to go the route of business to consumer (B2C) sell the Seed
online through the website Amazon. Some of the promotional strategies that team
Everest will be utilizing is social media sites such as YouTube, Pinterest, Instagram and
Facebook. Social media users are most active on these sites on Tuesday-Thursday,
Saturday and Sunday. The reason is because people are visiting these sites to catch up
on all the activity from the weekend. People are out and about Friday-Sunday. Monday
is when people are active all day at work and getting back on a schedule for the week.
As a result, this is leaving Tuesday-Thursday and Saturday-Sunday great days to catch
up on all the activity. Also, Seed will look to use an aggressive online social media
campaign aimed at our specific target markets of men and women. Using Sites such as
Facebook, Instagram and YouTube, Moikit will look gain a huge word of mouth from
online endorsers. During analysis Everest concluded that using the YouTube platform
would be best. YouTube is like a television channel in itself and is filled with health and
fitness enthusiasts with various video content. These content providers share the very
same ideas and beliefs that coincide with the Seed. Along with this comes a massive
group of followers who listen to and consume everything these YouTube Stars have to
say. With the right people, Seed can market their product to these stars who in turn will
share their thoughts and views on the seed. This makes for an endless line of
marketing while getting the word of mouth going on the Seed. While this is happening
the Seed will start being represented at multiple trade shows. One of the trade shows
that the seed will be represented at will be The Consumer Electronics Show. With over
170,000 attendees over a seven day period, this will ensure the seed will be well
26. 26 | P a g e
represented and seen. Other trade shows and conventions Moikit will be represented at
will be the L.A Marathon fitness expo, Pasadena Fitness Expo, Mason Expo Fitness,
Golden Valley Health centers fit expo and Fit Expo. While being present at these
shows, the goal is to have content providers picked and ready to be at the Seed booth
where their followers and fans will have the chance to attend a meet and greet. This will
aid in attendance and also make is easier for newcomers who haven’t witnessed what
the Seed can do. While the content providers are present, the advantage to have them
sign on as a representative of Moikit to become “Planters” will be taken. This will aid in
spreading word about the Seed.
What will be at the booth in order to attract attendees will be a giant inflatable seed
bottle with bright colors bringing attention to the booth. Along with this there will be two
displays that light up when someone walks past it, activated by motion sensor. These
displays will have about 50 units each on them and will cost around $3650.
Lastly Moikit will look to sponsor the L.A Galaxy which is the professional soccer team in
Los Angeles. This will make for a great way to reach the Net Generation as these
young kids have a liking for soccer and will be used as an avenue to reach this target
market.
Push Strategy
Another promotional strategy that team Everest will use is going business to business
(B2B) through gyms throughout the California area. Sales Agents would go to a gym
such as California Family Fitness. With over 69 locations in the state of California, it
would be a great place to start. In a fitness center such as California Family Fitness, a
great promotional strategy would be to have a display board/ booth at each California
27. 27 | P a g e
Family Fitness location. At each location, there would be a representative who would let
gym members have the experience of using the Seed during their workout. After their
workout, the member would be asked to fill out a short survey and tell us what they think
of the Seed. After completing the survey, they then would receive a premium price of
only $62 for the Seed if they purchase it right then and there at the gym. It has to be a
same day purchase in order for them to get the discount. However they have to write a
review on social media sites such as Facebook, Pinterest, or Instagram. By sharing on
these social media sites that they have just tried the Seed at their gym, will promote and
boost the Seed even more. This creates brand awareness and free marketing for the
Seed. The display models would have anywhere from 25-50 units on their model,
depending on how many members are at each location. These content providers will be
found through exercise and all topics dealing with being fit or health conscious. While
looking for the right person to be a possible sales representative or “Planter” Everest will
interact with and identify these planters. There will be about 3 months spent looking for
potential content providers before there is a decision made on who to contact. Moikit
will then send them the Seed to try out. Subsequently they will give insight on the
product for all of their followers by blogging, reviewing and sharing to all of their social
media pages. This in turn will get word of mouth out to all of their followers who will then
begin to follow Moikit’s social media page and start to build a presence.
Along with this, Moikit would look to try and gain higher amounts of sales on the days
that users are more inclined to visit their favorite social media sites by offering some
kind of daily special to pique their interest in buying the Seed.
28. 28 | P a g e
Below is a list of social media Vloggers and YouTube stars along with some info on how
many followers and subscribers they have.
Fitness blender – 2.9+ subscribers over 400 million views. Based out of Washington
https://www.youtube.com/user/FitnessBlender
BeFit – 2.1+ subscribers 290+million views, 368,000+ likes on Facebook. Based out of
California
https://www.youtube.com/user/BeFit
XHIT Daily – 2 million + subscribers, over 55,000 likes
https://www.youtube.com/user/XFitDaily
Blogilates – 2.9+ subscribers, over 700,000 likes, 1.3 million Instagram followers. Based
out of California
https://www.youtube.com/user/blogilates
ScottHermanFitness – 930,000+ subscribers, 420,000+ likes, 58,000 Instagram
followers. Based Out of New York
https://www.youtube.com/user/ScottHermanFitness/about
Twobadbodies- over 350,000 + Instagram followers, 60,000 + followers
https://www.instagram.com/twobadbodies/
List of recommended consumer and trade shows and dates:
29. 29 | P a g e
1. LA marathon fitness expo – March 19
2. Pasadena Fitness expo – June 27
3. Mason Expo Fitness – Aug (TBA)
4. Golden Valley Health centers fit expo – March 28
5. Fit Expo in San Jose – May 21-22
6. CES Las Vegas, Nevada – January 5-8 2017
Short & Long Term Projections
Sales of 18,000 units every four months of distribution totaling 90,000 units over a 2
year trial run in California. The original time investment of 3 to 6 months before units
arrive via shipping allows for Moikit to use this custom remote marketing plan. This
keeps the Seed in its position as the Industry leader in quality and pricing. By the end of
the first 2 years Moikit will be able to have adjusted unit production and be able to
double sales and start expanding into the other identified states.
The early estimated ROI is $83,180.00 per 3600 units the early goal. A goal of 5000
units a month is the recommended target by the twelfth month. As the supply chain will
be receiving enough product to justify the increase. Moikit should see a totalof
$2,000,000.00 USD return on all active sales by the end of the first 30 month cycle.
Market limitations are minimal as Moikit is only selling to .01% of potential first segment
identified target market. The second segmentation reduces this even further to a .005%
product to marketable customer.
30. 30 | P a g e
Conclusion
Team Everest’s marketing strategies for Moikit are an ongoing adjustable marketing
campaign that is used to hone in the optimal target market. Using the 8 step SMPC
method (Social Media Planning Cycle) Moikit will.
1. Listen via social media, web forms, and blogs.
2. Use goal orientated personas to continue to adjust the message.
3. Implement the 8 C’s strategy and adjust.
4. Interact through the selected Social Medias and adjust as needed.
5. Implement Adjustments made to personas and message.
6. Monitoring with the use of people, and web based tools. Google Analytics’,
Facebook Marketing.
7. Tune the message start the process over.
While this process is slower then hiring a company to just distribute the product. The
time invested in the beginning will allow for growth of the supply chain for consistency.
The time also allows Moikit to find the right Planters for representing the companies’
interest remotely in the US.
31. 31 | P a g e
I. Appendix
Table of Contents
Section
Moikit Seed info………………………………………………………………………………………………………………………………………..1
Moikit Mecare agreement…………………………………………………………………………………………………………………….2
Authority Nutrition…………………………………………………………………………………………………………………………………...3
StreetInsider……………………………………………………………………………………………………………………………………………...4
IBIS World OD5599 Gym & Fitness…………………………………………………………………………………………………5
Thermos information………………………………………………………………………………………………………………………………6
BluFit information…………………………………………………………………………………………………………………………………….7
Flow information……………………………………………………………………………………………………………………………………….8
Hidrateme information……………………………………………………………………………………………………………………………9
HydraCoach information………………………………………………………………………………………………………………………10
IBIS Market Report Plastic Bottle
Manufacturing………………………………………………………………………………………………………………………………………….11
IBIS Bottle Water Production…………………………………………………………………………………………………………….11.A
Industry at a Glance………………………………………………………………………………………………………………………………11.B
Identifying,Understanding Generations…………………………………………………………………………………………12
United States Census Information……………………………………………………………………………………………………13
California………………………………………………………………………………………………………………………………………………………13.A
San Diego with Personal Income……………………………………………………………………………………………………..13.B
Sacramento with personal Income…………………………………………………………………………………………………..13.C
32. 32 | P a g e
San Jose with Personal Income…………………………………………………………………………………………………………13.D
Oregon…………………………………………………………………………………………………………………………………………………………..13.E
Portland………………………………………………………………………………………………………………………………………………………….13.F
Washington………………………………………………………………………………………………………………………………………………….13.G
Seattle…………………………………………………………………………………………………………………………………………………………...13.H
Social Media Demographics for Marketers…………………………………………………………………………………….14
PewReasearch…………………………………………………………………………………………………………………………………………14.A
Generations by Philip Bump……………………………………………………………………………………………………………..15
IBIS Consumer Spending……………………………………………………………………………………………………………………16
IBIS Adult Consumer ages………………………………………………………………………………………………………………….16.A
IBIS Per Capita Disposable Income……………………………………………………………………………………………...16.B
Business Insider Fitness Trackers Sold………………………………………………………………………………………..17
Analysis on Smartwatches vs VR…………………………………………………………………………………………………….17.A
Smart Watch Or Fitness Tracker………………………………………………………………………………………………………18
China Building Reef Island………………………………………………………………………………………………………………….19
Cirrelt Supply Line Management……………………………………………………………………………………………………….20
IBIS WORLD Supply Chain………………………………………………………………………………………………………………...20.A
6 Factors……………………………………………………………………………………………………………………………………………………….21
Customs and Boarder Commercial Importers Guide ……………………………………………………………..22
IBIS Product Returns Supply Chain Industry……………………………………………………………………………….22.A
Iron and Metal Power Point………………………………………………………………………………………………………………….23
Finance Charts…………………………………………………………………………………………………………………………………………..24
References
AccoutingWeb."Identifying,Understanding(andMarketingto) the Generations." Accounting Web
(06/21/10): 4. HandOut.
AnalysisonSmartWatchs. Statista.com.222 2016. WEB. 14 3 2016.
