Marketing on the Internet

1. Business
Concept
BeatFusion Application Business Concept
Claire Mirsky, Michael Tamburri, Alexandria Corn, Ethan Lyons
Ithaca College

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Product
Physical Components:
• Heart-rate monitor
• Motion sensor bracelet
• Works as Watch
• Functions as Pedometer
• Coordinates with pre-existing heart-rate monitor technology
Smart Components
• motion sensor identifies what kind of activity you are doing and tracks
weight lifted/reps
• tracks distance, calories burned, and time
• beatmatch (™) technology creates playlists based on your heart rate by
playing music that has the same BPM
• beatmemory (™) technology remembers previous workouts and their
corresponding playlists
• moodmap(™) technology allows you to plan your workout according to
your target heart rate zones. You can also use predetermined moodmaps
(™) with various interval progressions
• groupbeat (™) technology allows instructors to create playlists for group
fitness classes by collectively generating the group heart-rate
o instructors can also use the moodmap technology in combination
with groupbeat (™) so fitness participants can challenge
themselves to reach the predetermined heart rate goal set by the
instructor
Connectivity Components
• connects with already existing apps such as myfitnesspal, mapmyfitness,
edmodo, GAINfitness, and bodyspace
• connects with already existing music streaming apps such as pandora,
sotify and meats music in addition to having access to stored music
applications such as itunes.
Form of Connectivity
Many-to-Many: platform connects with other apps by sharing data in
addition to working with different physical components such as pre-
existing heart rate monitors that were not originally developed to sync with
our app

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Product Level of Capability
Autonomy: By combining monitoring, control and optimization
capabilities, our product proves to be autonomous by self coordinating
operation with other products and systems in addition to allowing for
personalization by utilizing the beatmemory (™) feature.
Monitoring Capabilities:
• heart-rate monitor
• motion sensor
• distance, time, and calorie tracker
Control Capabilities:
• beatmatch(™) mode allows the app to automatically play
songs with the same BPM as your heart-rate
• moodmap(™) technology allows you to plan your workout
according to your target heart rate zones. You can also use
predetermined moodmaps (™) with various interval
progressions.
Optimization Capabilities:
• the app remembers your previous workouts and saves
playlists so you can listen to them again
• If you turn on the terrainbeat (™) setting, the app will come
up with music based on geographic factors such as distance
and incline
o you can also link to GPS apps such as mapmyfitness
in order to utilize this feature (in which the
terrainbeat(™) feature will automatically turn on)
• By disliking or liking songs you can create playlists you will
love
Product Impact on five forces in Porter model
Bargaining Power of Buyers
This app combines fitness tracking apps and music streaming apps.
Although users can choose to sync with other music streaming or fitness
tracking apps we believe that our music streaming service (beatsmusic)
and revolutionary tracking system (including our motion sensor bracelet)
will offer a more streamlined and user-friendly interface. We want to offer
users to sync to apps that they are already familiar with such as spotify

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and mapmyfitness, however, once they begin using our platform and
become familiar with it we believe they will make the switch
Rivalry Among Competitors
Our app is changing the competitive landscape of the industry because it
is the first app of its kind combining both fitness tracking and music
streaming. This is a unique value proposition that isn’t offered by any of
our competitors who are either a fitness tracking app or a music streaming
app, not both.
Threat of New Entrants
Because we are a completely new product category there are some
barriers to entry such as the high fixed costs of more complex product
design, embedded technology, and multiple layers of new IT
Infrastructure. However, by being the first on the scene to enter this
product category we have the advantage of collecting and accumulating
product data to further improve our product.
Threat of Substitutes
Although it is very unlikely that another app like ours will emerge, it is
possible that some consumers will choose to use a combination of music
streaming apps and fitness tracking apps instead of using an integrated
app such as ours. In addition they may opt to use a traditional heart-rate
monitor instead of using our bracelet with the added motion sensor
technology.
Bargaining Power of Suppliers
Smart Components do add value to our product now, however in time they
will be replaced by cheaper, more efficient versions, affecting total cost
and the supplier’s power.
Business Model
Application Business Model
For our App we plan to use the freemium model. Freemium for Apps have
seemed to have the most success through research and knowledge of the App
industry. There are minimal amounts of people that are willing to pay for Apps in
today’s world. Although to acquire the App is going to be free we will have ‘In-
App Purchases’ similar to the model Spotify and Pandora use in the sense that if

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users would like to upgrade to the next version they will have to pay. They will
still get all the features the App encompassed in the free download but by
upgrading to the next version the user will be able to operate on BeatFusion free.
To acquire the ad free version we will undercut the competition and price our free
version for $7.00 a month. (Pandora, Spotify etc. price their free services at
$9.99 a month).
Product Business Model
Considering the user of this app will need a smart watch or smart band to link to
our app to pick up the motions and exercises being completed in order to create
this workout playlist or generate the preloaded songs we will run another
business model for our smart product. BeatFusion will be compatible will all other
smart watches and bands, to highlight a few the Apple watch, apple band, Nike
band and Fit bit. The price of our FusionBand will be $150.00 to be in the middle
of the competition, not below the fit bit but not above the Nike band or either of
the Apple products. Now, if the user has our band they will get automatically
receive the upgraded version of the ad free App upon download but if they are
connecting our app to one of our competitor’s products they will have to purchase
the Ad free upgrade for the $7.00 a month.
Conclusion
Overall, we believe this is a smart strategy to create revenue in two ways. One,
off of the App and two, off of the physical product with the incentive of receiving
the free upgraded version of the App. We also have the ability to appeal to the
other product users but make money at the same time when they upgrade to the
ad free version of the App but still providing the option of a free download with
the only difference being the inclusion of advertisements.
Target Market
Primary Market: fitness enthused men and women aged 21- 40.
Target Persona 1
Megan is a 22 year old college graduate from Syracuse University in Syracuse,
NY. She has graduated with a degree in exercise science. She is very health-
conscious, and attends the gym once a day for 2 and a half hours. Megan was a
college all-star in track and is still pursuing that as a goal. She is looking for a
product that can help control her heart rate and enjoy some of her favorite tunes.
Target Persona 2

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Todd is a 29 year old bodybuilder from Los Angeles, California. He has been in
the business for about 9 years. Todd has always dreamed of a product that
combined a monitor for your body and a music player. While Todd spends most
of his free time in the gym training, he needs to keep an updated record of all of
his weight lifts and reps. He likes to map out his workouts so it makes it easier for
him when it comes time to compete.
Target Persona 3
Emily is a 35 year old, mother to be. She has an M.B.A in finance, and is a
financial reporter director in Boston, Massachusetts. Emily has always been a
health freak, but when it comes to her new growing baby, she is looking for a
product that will motivate her as well as detect her heart rate, calories burned
and also allows her to check the time so she never misses a meal to keep her
and her baby healthy.
Competitive Analysis
Nike+Running
This app is one of the biggest and most popular on the market. Tracking
distance, pace, and time, this app allows users to set goals and challenges for
themselves. Progress alerts come every mile notifying users of how well they are
doing and if they are on pace or not. Users can also compete with their friends to
see who can achieve the fastest time in a set distance. Nike+ is also integrated
with a “coach” program that gives users training programs and expertise on daily
workouts. Users can customize the settings of the app so that it allows their
music to start and stop whenever the runner does so as well. Applications like
Spotify, iTunes Radio, or Pandora are usable in conjunction with Nike+.
MapmyFitness
A “suite” of apps created by Under Amour centered on different aspects of
working out. This suite includes MapMyRun, MapMyRide, and MapMyWalk that
are targeted to running, cycling, and walking respectively. A cloud-based
integration has been installed that allows users to upload or retrieve any
information about their recent runs or other data that has been generated from
any of the other apps within the suite. Compatible with over 400 fitness tracking
devices, the suite allows its users to find their own way to workout and exercise
using the tools they want to. Like a typical fitness app, it tracks time, pace,
distance, and the number of calories burned. As for music capabilities, much of
the same is offered that is seen in other relatable apps. Users are able to play
their own selected playlists from their own music libraries while running. There is
no other special integration.
Spotify

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A commercial music streaming service that offers both a free and premium
version. The difference between the two services is that the latter removes
advertisements and allows users to download music to play offline. ON their
website, it states that there are over 30 million songs on the streaming device.
This is made possible due to the fact that Spotify pays royalties to the parent
companies that have allowed them to license and put their music on the device.
In short, Spotify is pure music playing device and that is all. Users are allowed to
create playlists and share them with friends over various social media sites. In
regards to fitness, there is not much here. Other than fitness playlists offered by
Spotify, much else is not offered for a user looking for an app that has extensive
music and fitness capabilities.
Pandora
An Internet streaming device that allows users to search for a specific song,
artist, or genre. Based on what they put in, the site gives a playlist of songs that it
believes the user might be interested in. The user then provides feedback,
positive or negative, which the service takes into consideration when queuing up
the next song. Users are also offered the ability to buy songs through multiple
online sites provide by Pandora. Like other music streaming devices, there is a
free version and a premium version that does not have advertisements. In
regards to fitness, there is not much here. Other than playlists offered to the user
by Pandora, much else is not offered for someone looking for an app that has
extensive music and fitness capabilities
Conclusion
After researching and completing an analysis on current competitors within the
fitness app market, we have discovered three apps that would be our biggest
challengers when entering the market. Even though these are three popular apps
right now, they do not offer the amount of music integration and functionality that
our app does. In an overwhelming majority of cases, the fitness apps only allow
users to play their music. Music is not used in any other way except for the
added bonus of listening to something while working out.

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