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THINSPIRED
Business Plan By ADFL
DANIEL PAZ
NELI PENCHEVA
SEBASTIAN FUENTES
SCOTT GOULET
Florida Atlantic University
Mobile Apps for Business
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Table of Contents:
1. Executive Summary …………………………….…………………………..…………... p.03
2. General Company Description ………….…………………..................................................p.04
2.1 Company summary........................ ..........................................................................p.04
2.2 Mission ....................................................................................................................p.04
2.3 Objectives ................................................................................................................p.05
2.4 Keys to Success.........................................................................................................p.05
3. Product ................................................................................................................................. p.05
3.1 Introduction ............................................................................................................ p.05
3.2 Development Requirements .....................................................................................p.06
3.3 Product description.................................................................................................. p.08
3.3.1 Overview.................................................................................................. p.08
3.3.2 Features ................................................................................................... p.08
3.3.3 Developing Stages ..…………………………………………………… p.10
3.3.4 Technical Elements …………………………………………………… p.11
4. Market analysis ......................................................................................................................p.11
4.1 Market research.........................................................................................................p.11
4.2 Porter’s Five Forces..................................................................................................p.15
4.3 SWOT Analysis........................................................................................................p.18
4.4 Competition/Product Analysis………..………………………………………….. p.19
4.4.1 App Success…………………………………………………………….. p.20
4.4.2 App Rank……………………………………………………………….. p.20
4.4.3 Market Demand …………….…………………..…………………….. p.20
4.4.4 App Marketing…………………………….……………………………..p.22
4.4.5 Competitive Advantage………………......………….…………………..p.22
5. Strategy and Implementation Summary................................................................................. p.22
5.1 Marketing strategy ...................................................................................................p.23
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5.2 Sales strategy ...........................................................................................................p.28
5.2.1 Price setting ..............................................................................................p.28
5.2.2 Sales forecast ............................................................................................p.30
6. Personnel Summary ...............................................................................................................p.31
7. Conclusion ….……………………………………………...…..…………………………. p.32
8. Sources ...................................................................................................................................p.33
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1. Executive Summary
Nearly two-thirds of adult Americans are overweight or obese. This trend has
created one of the largest Industries in America – Health & Fitness Industry. Within this
industry there has been a rapid increase in health apps that help people fight with their
weight issues. The health and fitness apps have become a huge success due to the
development of wearable technology, step tracking, GPS locators and so on. Health and
fitness apps open doors to big opportunities for monetary success and brand recognition.
Parks Associates estimates about 15 million U.S. consumers’ actively tracked personal
health and fitness online or via mobile in 2011 -- and that number will more than double
by 2016. Also in 2011, 14 million consumers used online wellness services, and that
number will also double by 2016. (Wang)
The purpose behind this business plan is to give a detailed view of our Company
ADFL: App Development For Life, what we are working on, information on our market,
as well as some technical details of our latest app ThinSpired!
When the market was surveyed and again realized how much people are into
health and wellness we could then go and forecast sales of such apps. The freemium app
format would be the way we would be going about selling our app and the specifics on
that type of app marketing will be explained later in this business plan.
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2. General Company Description
2.1 Company Summary
App Development For Life (ADFL) is newly formed developing company, which
creates innovative apps in different industry areas. ADFL was created in 2015 in Boca
Raton, Florida. The company was created as a college course assignment which turned to
a huge success in the app market. ADFL vision is to empower users with enduring,
dynamic, and fun applications that will help them in all their needs.
2.2 Mission
Our mission with ThinSpired is to help people obtain their health goals with a
little help and encouragement from our app to let you know that it is possible to have that
body you’ve always wanted or just being a more health conscious person. The purpose
of our app is to give people exercises they can do at home without the need for a gym.
Body weight exercises are shown to be just as effective as exercises in a gym
environment.
2.3 Objectives
- Generate new revenue
- Expand current customer base
- Gain market share
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2.4 Keys to Success
- App is to be extremely user friendly
- Establish a loyal following of ADFL fans
- Create a cash flow of $50K in the first 6 months of being on the market in
order to cover development costs
- Make sure the app even in its 1.0 stage is bug-less
- Keep the updates and upgrades flowing at least once a month
3. Product
3.1 Introduction
We are an application development company that has created a wide variety of
mobile apps. Our first application was LifieGramm – an Instagram inspired app that
turned into a success. Our newest member in our app family is called ThinSpired.
The name Thinspired came out of a large pool of names which took a long time to
create. Names ranged from Recipe Central and Ideaverse to Thinspired and Hungry
Time. After hours of going back and forth on possible names for our nutrition
application, we decided to go with Thinspired because we know our customers want a
product that will allow them to become thinner and stronger while being inspired by
different work out choices.
Our vision is to provide a source of work out exercises for people to be healthier.
We intend to provide our customers with the best selections of work outs that target
different muscle groups. We believe that any individual has the capability of completing
these workouts with a little inspiration and determination.
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3.2 Development Requirements
When building a mobile app, defining its requirements is one of the key elements
in the process. Determining which hardware and operating system the application will
run on is the first and most important step. Our team had to ask questions such as “Will
we build the app to run only on one platform or on every platform?” and “What will we
do if the app runs on one version of Android but when we tweak it to run on another
version, it doesn't work on the first?”.
To answer these questions, we first looked into the difference between native and
web based apps.
Native Apps 1
Speed Faster and more responsive than web
based apps.
Local Storage Native apps can run asynchronously,
meaning dynamic information can be
stored locally on the phone temporarily
and synced with the central web-based
server later.
Features Access to that platform's hardware
features.
App Store Free shelf space for new products and
can be a great way to advertise.
Drawbacks Separate code base must be created and
maintained for each individual
platform.
1 Native vs Web Apps
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Web Based Apps
Single Solution Single source base, available for all
devices; no waiting for versions.
Real Time Updates Updates of the app happen real-time, no
waiting on app store approval.
Freedom Free to add any advertisement and
content you would like.
Catching up Huge development in the mobile web
area.
Drawbacks Lack of access to the phone’s
functionalities.
Both native and web based apps have many advantages, which made our decision
hard. We truly appreciated the freedom, the single solution and real time updates
functionality that web based apps give us. However, we liked the native apps access to
the hardware functions. In order to completely settle on a choice, we also looked into
advantages and disadvantages of Android and iOS development.
Android vs iOS Development 2
Steps Android iOS
Environment Eclipse which has
many plugins.
Easy to use Xcode.
Configuration More elegant app
permissions
OS’s Xcode contains a
long list of build
settings.
Language Java Objective C
Publishing Eclipse wizard Requires certificates
and distribution
profiles.
2 Android vs iOS
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After doing a brief comparison between the Android and the iOS development,
we came to the conclusion that having an app that can run in both platforms will be most
beneficial for the type of app we have. Thus, leading us to choosing web based app
development which allows us to have a single source code that can be applied both to
Android and iOS devices.
3.3 Product Description
3.3.1 Overview
ThinSpired is an app that will allow the user to search for work out exercise based
on the primary muscle groups – biceps, triceps, shoulders, chest, abdominals, back, and
legs. Each work out will contain a set of instructions on how to do the exercise, photos,
and videos.
3.3.2 Features
Simplicity
ThinSpired is an app about exercises. We want our users to be able to use it while
they jump, squat, or run. Therefore, simplicity is a key for our product.
We recognized 3 key elements to achieve app simplicity:
- High definition photos.
- Clear instructions.
- Easy and user friendly navigation.
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Additional Features
In order to motivate our users to complete their exercises better with each
repetition block they do, we added a stop watch feature where users can track the time it
takes them and try to outdo themselves.
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3.3.3 Developing Stages/ Milestones
Stage Components Tools Status
I 1. Home Tab
2. Exercise Tab
3. Exercises for different Muscle Groups
4. Stop Watch
CSS, HTML, JQuery
M.
CSS,HTML, JQuery
M, JavaScript
100%
100%
100%
100%
II 1. Expand Exercises for Muscle Groups
2. Clean CSS styles, images, etc.
CSS,HTML, JQuery
M, JavaScript
April 28th
III 1. Functionality to buy more exercise.
2. Social Media connections
3. Add Routines Tab
4. iOS compatible
5. Google Maps
Facebook API,
Shopping Carts API.
Google Maps API
Future
Note:
Our executive team decided that we will continue with scrolling for the exercise
popups instead of sliding.
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3.3.4 Technical Elements:
Tools:
For the development of our app, our technical team used primarily HTML, CSS,
JavaScript, and JQuery & JQuery Mobile.
Editors:
We used Brackets as prime editor. For emulation we used PhoneGap/Cordova.
Browsers:
Browsers used for testing and developing were: Google Chrome and Firefox.
4. Market Analysis
4.1 Market Research
We will begin our market analysis with a preliminary market research of the
health and fitness app space.
Fitness apps have been around since the App Store and Google Play came about.
Recently since 2010, the health and fitness industry has been booming in general.
Crossfit and more recently Orange Theory have seen people join these activities and pay
premium prices. This increase on fitness spending was also very evident in the app
ecosystem.
In 2014, Flurry Analytics reported that “health and fitness apps are growing at a
faster rate than the overall app market so far in 2014. The analytics firm looked at data
from more than 6,800 apps in the category on the iPhone and iPad and found that usage
(measured in sessions) is up 62% in the last six months compared to 33% growth for the
entire market, an 87% faster pace.” (TechCrunch, 2014)
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In conjunction with health and fitness apps, manufacturers such as Apple and
Google, want to capitalize on this boom by creating wearables. Just as with any basket
study, we are confident that users, who download these apps, will be highly likely to
purchase a wearable if it will add to the experience.
Health and fitness as mentioned previously are trending worldwide. This upward
trend in this industry has also touched the digital world and it is expected that these apps
will reach over 26 billion dollars in profit by 2018. (Information Week, 2013). This
statement reinforces the fact that the digital world and app markets reflect what is
trending in our lives, no necessarily only what we do online.
When totaled together there are approximately 40,000 health and fitness apps available
(Washington Post, 2013). That staggering number reflects the demand users have for these apps
and how the developer community has responded. 40 thousand apps for one industry is only
second to the amount of gaming apps. As demand increases and more developers decide to jump
into the emulation game, we are likely to see this number to grow.
In order to be successful, top applications tend to have the following characteristics:
- Professionally designed and the user interface is easy to use. An app that is difficult to
operate will be replaced by one that is user friendly.
- Takes competitiveness into account. People like a good challenge, especially if you are
able to set goals and reach them. Even if the goals are simple, it gives the user confidence
and a reason to keep going.
- Progress, results and tracking. Checking goals off or being able to look back on months
of training is a great way for the user to feel good about their progress. Whether someone
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calls this “gamification” or simply a way to make your progress fun, apps that allow the
user to easily check progress will keep users engaged and coming back for more.
- Social media and fitness apps go hand in hand. Being able to create an account with your
Facebook or Google Plus makes the registering process easy and seamless. In addition to
registration, sharing reached goals or the new goals set by the user, will always cause
some kind of reaction social media.
- Community aspect. Going back to the days of the Live Strong website, it was easy to see
that a community of users, who set similar goals, will thrive. Most people complain about
not having a workout buddy, and the online world is not any different. Users want to be
able to answer questions on the fly and get expert opinions. Building the community
aspect will attract more users and should reduce consumer turnover.
According to a recent study, the biggest group of health apps could be categorized as
fitness apps. More than 30% of all apps that are listed in the Health & fitness and Medical app
sections of Apple App Store, Google Play, BlackBerry Appworld and Windows Phone Store are
fitness trackers or exercise guides.
The second and third major groups in the Health and Fitness App Market are the Medical
reference (16.6%) and Wellness apps (15.5%). Medical reference apps provide information about
medications, diseases and symptoms, and provide instructions on how to take certain drugs or
what to do in case of experiencing pain. Some apps also show locations of pharmacies and
medical centers/doctors near the user’s location. Wellness apps encapsulate relaxation solutions,
yoga instructions and beauty tips. Nutrition apps help their users keep track of their diet, inform
them about e.g. vitamins, calories and fat content as well as socio-economic aspects of food
products.
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And last are the medical condition management apps. Medical condition management
apps represent the 5th biggest group of health and fitness apps (6.6%). This group consists of all
apps which track, display and share user´s health parameters, medicament intake, feelings,
behavior or provide information on a specific health condition e.g. diabetes, obesity, heart
failure.
3
Today, the health and fitness market offers opportunities to generate substantial revenue.
5.1% of the active players in the market were able to generate more than USD $ 1,000,000 with
3 Research2Guidance
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health apps for the previous year. This includes revenues from app downloads, in-app purchases,
advertisements, related devices, and services.
The preferred mobile operating platforms for health and fitness apps today are
Android (83%) and iOS (81%). All other platforms are far behind. The importance of the
second tier platforms like Windows Phone and HTML5 is significantly higher among the
companies that are just entering the market. 51% and 45% of future app publishers plan
to release this kind of apps for Windows Phone or HTML5. Today’s future health and
fitness app publishers select their mobile operating platform on the basis of their reach
within the target group (67%/63%). The second most important selection criterion is the
availability of devices and sensors to be connected to an app (42%/56%).
(Research2Guidance)
4. 2 Porter’s Five Competitive Forces Model
In order to understand the health and fitness app market, we need to also analyze
the industry attractiveness using Porter’s fives forces model.
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Bargaining power of Suppliers
The suppliers for this industry mainly comprise of platform manufacturers -
iPhone, Android,Blackberry, Windows mobile/Windows Phone, Symbian, third party
players like GetJar andPocketGear and mobile operators – Airtel, Vodafone, French
telecom etc.
Platform specific applications – The applications developed by these players are
mostly platform specific.
High numbers of Suppliers - Currently, there are more than 10 mobile platforms
and thousands of application developers in the market.
Inputs required – The inputs required for this industry i.e. the application
developers, software and hardware requirement and the technology required, are easily
available at almost none or competitive price.
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Presence of substitute products - Substitute products i.e. the applications for a
particular task are high in numbers. So the consumer has the capability to substitute one
application with the other easily and quickly. The average selling price of the applications
is decreasing which shows that the developers are now focusing on getting volumes by
lowering the prices. This emphasises that the Suppliers bargaining power is high. The
Key to be successful in this industry as a Supplier is to continuously Innovative and
provide User-friendly product to the consumers.
Bargaining power of buyers
Switching Cost- If the buyer is switching between the application providers for
the same platform then his switching cost would be low. For switching to different
platforms the switching cost would be high.
Customer loyalty- Customers are only looking for applications which meet their
purpose or are entertaining and easy to use. They have low stickiness with a particular
application or its developer.Thus, the bargaining power of Buyers for this industry is
high.
Threat of substitute products
There is a high number of fitness and health apps available for all platforms.
Examples are Lose It!, MyFitnessPal, Pact,Cody, Carrot Fit, Workout Trainer and many
more. The price range for health and fitness apps go from free up to $4 dollars for
download. Those making the threat of substite products high.
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Barrier to Entry
Brands like Apple and Google have already established large presence in the
health and fitness app market. Their market dominance is a high barrier to entry.
However, the easily available technology and resources for devoloping apps provide an
easier entry to the market. Therefore, barrier to entry is a moderate force.
Industry Rivalry
Due to the accessible resources allowing to enter the market, there are many apps
available which creates a high industry rivalry. The fierce rivalry among the large
companies has resulted in decrease in the average selling price of the health and fitness
applications.
4.3 Market SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within
the health and fitness app market.
Strengths
The market is rapidly growing. New technology such as wearable devices is
becoming increasingly popular which in terms stimulates the development of new apps
for these wearable devices. Health and fitness are always needed and customers would
always be willing to spend money to obtain better health and physical condition.
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Weaknesses
The success for apps in this market are purely based on customers likes and
determination of use. It is unpredictable if an user will stick to their health regimes and
continue using the apps and their upgrades.
Opportunities
One of the biggest opportunities in this market is the participation within a
growing market. Another opportunity is the ability for users to sync multiple different
apps to their devices and between one another. Examples could be seen with the newly
developed fitness tracker Jawbone and its companion app Up which can be synched with
other apps such as MyFitnessPal, Lose It!, Slim & Trim and many more.
Threats
Some of the threats for this market include the lack of immunity to an economic
downturn, the potential competition from larger, well established competitors, and a
change in society where individuals don’t consider their health maintenance as an
important aspect of their lives.
4.4 Competition/Product Analysis
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The fitness and health app space is very broad. There are apps from counting and
logging calories, through exercise apps, to cooking recipes apps. There are multiple web
sites that provide similar products. However, there are only a few apps that are similar to
our new product such as “Workout Trainer” and “FitStar”. These apps are not in the top
downloaded app, therefore, we will look into one of the most successful health/fitness
apps in order to get a better understanding of the market and what users look for.
One of the most successful apps that counts calories and helps to promote both
weight loss and weight is “Calorie Counter – MyFitnessPal”. This app has been,
according to App Annie, downloaded about 50 million times, which makes it the most
downloaded health type app in the google play store. The apps claims to fame are its: vast
food database which is comprised of over 5,000,000 foods, fast and easy calorie counter,
and is 100% free with absolutely no hidden fees or in app purchases. This app also allows
you to connect the app to wearable fitness technology such as Fitbit. As a gateway to
perform a better market research we have posed 10 questions to help break down why
this app is such a great success.
4.4.1 App Success
This app is successful for a number of reasons, some of which were already
mentioned. First being the fact that it has been downloaded an upwards of 50 million
times. Second, it is very simple to use. Problem with an app like this is that people don’t
enjoy this type of activity and if the app was complex and took a lot of time to perform
simple activities, the data would not be accurate and you would never get anywhere
weight wise. Thirdly, this app is completely free, no hidden fees, and no pop up ads.
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Lastly, there is a database of over 5 million food items which makes finding the nutrition
information on the foods you consume on a daily basis a breeze. (AppAnnie, 1)
4.4.2 App Rank
The app in the app store right now according to AppAnnie is #1 in the health and
fitness category, and #8 overall in the app store. Also according to AppAnnie overall in
The Downloads department, downloaded applications have fluctuated between about
ranks 100 and rank 20 for the last 365 days. The consistency has been steady over the last
365 days for the most part except for a dip in downloads in the winter months, which
naturally just makes sense. (MyfitnessPal,1)
4.4.3 Market Demand
According to the actual app page on the google play store, the app has a 4.6 star
rating out of 5. Out of the 926,000 reviews, 690,000 of them were 5 star ratings. Some of
the reviews are as follows “doesn’t get any easier”, “If you don’t cheat this app is
great!!”, “Money saving weight loosing app”, “Amazing, this app has helped change my
life”. If these reviews are any indication, this app is fantastic and really does get the
results it states. (AppAnnie, 1)
This app has no “purchases” and therefore this app does not invoke an impulse
buy. In addition, people don’t tend to just all of a sudden realize they are overweight.
They usually know for a long time and need something like this to help them out to hit
their health and fitness goals.
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4.4.4 App Marketing
MyFitnessPal is marketing to their customers by ways of detailed screenshots that
show progress, nutrition, even friends that use the app and their progress to help keep you
on track, customer testimonials. Just that slogan will attract its only following because
whenever someone claims something is easy and delivers what it promises, that is a great
app! (AppAnnie, 1)
4.4.5 Competitive Advantage
The competitive advantage of this app over other fitness apps is just the simple
fact that it is 100% completely free. 100% of the functionality is there already and you
can use the app however you see fit. It already has a massive following and satisfied
customers; in addition to the 50 million downloads in the app store. (MyfitnessPal,1)
5. Strategy and Implementation Summary
As an application in the fitness industry, Thispired will use the current healthy lifestyle
momentum to its advantage. Social Media is exploding with health, fitness, diets, excersiese and
much more. This trend has easily spread through the sharing of pictures, short videos, healt
reciepes and more.
Our marketing strategy with Thinspired will rely on 2 major efforts. Industry networking
and online advertising. The first 6 months, we will rely solely on brand buiding via networking
in the health industry. Once the 6 months are up or when we feel that the brand is ready for some
direct advertising, we will make use of our advertising budget.
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5.1 Marketing Strategy
Fitness and health has been growing at an amazing pace since 2013. “Growth in health
and fitness is 87% faster than the industry, which is itself growing at an astounding rate.”
(Flurry, 2014)
We at Thinspired embrace this movement and do not see it as a saturated market. Our plan is
to head full force into this tidal wave and use it to surf into profits. Our social media objective
and goals are as follow:
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1. Create Facebook precense.
a. Post execrise related articles.
b. Promote our app and our fellow health/fitness companies
c. Run a campaign that will award a contestant a fitness wearable
d. Obtain 5,000 fans in 6 months.
2. Create Twitter account.
a. Tweet fitness quotes, goals, exercises, reciepes and before/after pics
b. Re-tweet industry information and celebrity related fitness posts (ex. Hugh
Jackman)
c. Run campaign for follower increase. Ask followers to tag a friend and retweet our
tweets for a day. The winner gets a 1 year memebership at a gym franchise of
their choice.
d. Obtain 5,000 followers in 6 months.
3. Create Instagram account.
a. Reach out to the vast amount of health and fitness accounts available.
b. Establish a core of partners that are willing to put together a large 30 day
challenge for followers. They have to follow us and do a 30 day routine with our
app and the other partners foods, diets, spices, clothing etc. The winner recieves
an iPhone 6 plus an Android phone with our pre-loaded app and goodies from our
partners. The cost of the giveaway is split by the partners.
c. Post images of people working out with our app, celebrities working out, short
videos of excercies.
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d. If possible, reach out to a celebrity that is willing to mention our app in exchange
for a lifetime usage of the app for free.
e. Obatain 5,000 followers in 6 months
4. Create YouTube Account
a. Upload our entire video database into our account.
b. Motivate users to upload their own workout videos.
c. Reach out to health and fitness chanels to create synergy.
d. Make an attempt to make a fun video that may go viral.
5. Other social media efforts
a. Create Reddit account and post regularly to the subreddits in regards to fitness.
i. Be careful not to push the product hard in Reddit, sensitive community.
b. Focus on all these subreddits:
http://www.reddit.com/r/Fitness/wiki/related_subreddits
c. Create Pinterest account
d. Create Tumblr account
e. Monitor new social media outlets that may become an opportunity.
Paid Advertising
If our organic brand recognition goals are met or after six months, which ever comes later
we will spend on paid advertising. Our focus will be on social media advertising rather than
search engine PPC. This is due to our effort to establish ourselves in the social media ecosphere
and can reach our target of millennials and generation x. The following graph shows our reason
for targeting these generation and especially women:
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Our advertising budget for the first year will be $75,000. This budget will be divided into
multiple social media advertising platforms but Facebook will use 50% of our entire budget. The
largest social network in the world has greatly improved their advertising platform and the
numbers show it. In 2014, the social network pulled in 75% of total advertising spending on
social networks, according to a new report by Boston-based Strategy Analytics.
The $37,500 will be used in Facebook’s advertising platform and will allow us to divide
our efforts into 4 regions; North, South, Central and West. In order to target the regions that
provide the best ROI or simply the most followers, we will run all regions simultaneaously for 2
weeks, then analyze everything about the intial effort.
We will then be able to see where to allocate more funds, how to best target our audience
and learn more about our fan base.
The other 50% of our budget will be broken down as follows:
- Health/Fitness (mobile ads) 40%
- Pandora 30%
- Instagram 15%
- YouTube 10%
- Free Application Ads 5%
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5.2 Sales Strategy
Thinspired is an app that creates value when it is used. It is for this reason that we have
selected the Freemium pricing strategy. Our research discovered that paid apps are best for
brands or products that already have a following or recognition. In addition, we decided that
Paymium apps are mainly for highly intricate apps that require payment due to the amount of
information or service they provide up front.
5.2.1 Price setting
Freemium is the best choice for Thinspired but pricing is something that we had to look
into in order to ensure success. We noticed a trend of prices of apps decreasing over the last 2
years. More and more users would rather have a free version and then possibly pay to get rid of
ads or add functionality.
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It is because of this trend, that we will offer our app for free and then have the option to add
functionality by paying 99 cents once.
The free version will definitely not have ads for the first 12 months. Depending on how
many sign ups (99 cents) we have in the first year, we may decide to add ads to our free version.
Users who downloaded the free app in the first 12 months will not have ads even if we decide to
add them in the future.
5.2.2 Sales forecast
Our combined efforts of organic social media brand recognition, paid advertising and
freemium downloads should allow us to grow ThinSpired’s paid clientel base steadily over the
next 24 months.
The first six months of we anticipate slow groth since we will be doing our brand
establishment and will not be spending marketing dollars. Once we have our brand recognition
phase complete and we begin our paid campaign, we expect to grow at 30% month over month.
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After the 24 months, our target revenue on a per month basis is between 50K and 60K.
6. Personnel Summary
Our personnel summary really is our team of four individuals. Three business
minds individuals as well as our over performing and underpaid tech team.
- Neli- She will serve as the CTO or chief technical officer. Her duties are but
are not limited to: - app development, technical analysis, technical writing,
and implementing features the business team would like to see.
0
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Sign Ups Revenue
DollarsandNewUsers 24 Month Forecast
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- Daniel- He is our Chief Market Stragetist. He is responsible for alerting the
team as to what is happening in the market and any feature sets our
competitors are implimenting that we need to compete with.
- Sebastian- He will serve as our CFO. He is responcible for keeping track of
our finances and balancing the checkbook. He will let our team know about
any necessary marketing strageties as well.
- Scott- He will serve as a kind of CEO. He is responsible for making sure the
team gets what they need and organizes meeting times and who needs to do
what. He is also responsible for making sure the ideas the business team
dreams up aren’t unrealistic according to the time frames that have been
established.
7. Conclusion
Through the creation of our app and researching the market, we are confident that
ThinSpired will succeed in today’s dynamic application ecosphere. ADFL is prepared to
welcome any possible challenges in the market place with our highly skilled tech team
and our knowledgeable business team.
Thinspired 33
8. Resources
Wang, Harry. http://www.ecommercetimes.com/story/76431.html. 20 October 2012. 2015.
FitnessPal, My. "Calorie Counter." Free , Diet & Exercise Journal. MyFitnessPal, n.d. Web. 02
Mar. 2015. https://www.myfitnesspal.com.
Annie, App. "Calorie Counter & Diet Tracker by MyFitnessPal | App Annie."Calorie Counter &
Diet Tracker by MyFitnessPal. App Annie, n.d. Web. 08 Mar. 2015.
http://www.appannie.com/apps/ios/app/calorie-counter-diet-tracker-by-myfitnesspal.
Research2Guidance, "mHealth App Developer Economics 2014",
http://research2guidance.com/r2g/research2guidance-mHealth-App-Developer-
Economics-2014.pdf, 6 May 2014. 2015
Tech Crunch, http://techcrunch.com/2014/07/21/yahoo-is-buying-mobile-analytics-firm-flurry-
for-north-of-200m/
Information Week, http://www.informationweek.com/mobile/mobile-health-market-to-reach-
$26b-by-2017/d/d-id/1110964
Washingpost, http://www.washingtonpost.com/sf/brand-connect/wp/2013/05/07/growing-
appetite-for-mobile-health/
Flurry, http://www.flurry.com/bid/99013/The-History-of-App-Pricing-And-Why-Most-Apps-
Are-Free#.VSnI7vlzSbM
Flurry http://www.flurry.com/blog/flurry-insights/health-and-fitness-apps-finally-take-fueled-
fitness-fanatics#.VSm6EvlzSbO
Marketing Land, http://marketingland.com/facebook-accounted-for-75-of-social-ad-spending-
globally-in-2014-123911
Native vs Web Apps, http://uxmag.com/articles/native-or-web-based-selecting-the-right-
approach-for-your-mobile-app
Android vs iOS, http://www.appmakr.com/blog/develop-android-ios/

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Thinspired_BusinessPlan Final

  • 1. THINSPIRED Business Plan By ADFL DANIEL PAZ NELI PENCHEVA SEBASTIAN FUENTES SCOTT GOULET Florida Atlantic University Mobile Apps for Business
  • 2. Thinspired 1 Table of Contents: 1. Executive Summary …………………………….…………………………..…………... p.03 2. General Company Description ………….…………………..................................................p.04 2.1 Company summary........................ ..........................................................................p.04 2.2 Mission ....................................................................................................................p.04 2.3 Objectives ................................................................................................................p.05 2.4 Keys to Success.........................................................................................................p.05 3. Product ................................................................................................................................. p.05 3.1 Introduction ............................................................................................................ p.05 3.2 Development Requirements .....................................................................................p.06 3.3 Product description.................................................................................................. p.08 3.3.1 Overview.................................................................................................. p.08 3.3.2 Features ................................................................................................... p.08 3.3.3 Developing Stages ..…………………………………………………… p.10 3.3.4 Technical Elements …………………………………………………… p.11 4. Market analysis ......................................................................................................................p.11 4.1 Market research.........................................................................................................p.11 4.2 Porter’s Five Forces..................................................................................................p.15 4.3 SWOT Analysis........................................................................................................p.18 4.4 Competition/Product Analysis………..………………………………………….. p.19 4.4.1 App Success…………………………………………………………….. p.20 4.4.2 App Rank……………………………………………………………….. p.20 4.4.3 Market Demand …………….…………………..…………………….. p.20 4.4.4 App Marketing…………………………….……………………………..p.22 4.4.5 Competitive Advantage………………......………….…………………..p.22 5. Strategy and Implementation Summary................................................................................. p.22 5.1 Marketing strategy ...................................................................................................p.23
  • 3. Thinspired 2 5.2 Sales strategy ...........................................................................................................p.28 5.2.1 Price setting ..............................................................................................p.28 5.2.2 Sales forecast ............................................................................................p.30 6. Personnel Summary ...............................................................................................................p.31 7. Conclusion ….……………………………………………...…..…………………………. p.32 8. Sources ...................................................................................................................................p.33
  • 4. Thinspired 3 1. Executive Summary Nearly two-thirds of adult Americans are overweight or obese. This trend has created one of the largest Industries in America – Health & Fitness Industry. Within this industry there has been a rapid increase in health apps that help people fight with their weight issues. The health and fitness apps have become a huge success due to the development of wearable technology, step tracking, GPS locators and so on. Health and fitness apps open doors to big opportunities for monetary success and brand recognition. Parks Associates estimates about 15 million U.S. consumers’ actively tracked personal health and fitness online or via mobile in 2011 -- and that number will more than double by 2016. Also in 2011, 14 million consumers used online wellness services, and that number will also double by 2016. (Wang) The purpose behind this business plan is to give a detailed view of our Company ADFL: App Development For Life, what we are working on, information on our market, as well as some technical details of our latest app ThinSpired! When the market was surveyed and again realized how much people are into health and wellness we could then go and forecast sales of such apps. The freemium app format would be the way we would be going about selling our app and the specifics on that type of app marketing will be explained later in this business plan.
  • 5. Thinspired 4 2. General Company Description 2.1 Company Summary App Development For Life (ADFL) is newly formed developing company, which creates innovative apps in different industry areas. ADFL was created in 2015 in Boca Raton, Florida. The company was created as a college course assignment which turned to a huge success in the app market. ADFL vision is to empower users with enduring, dynamic, and fun applications that will help them in all their needs. 2.2 Mission Our mission with ThinSpired is to help people obtain their health goals with a little help and encouragement from our app to let you know that it is possible to have that body you’ve always wanted or just being a more health conscious person. The purpose of our app is to give people exercises they can do at home without the need for a gym. Body weight exercises are shown to be just as effective as exercises in a gym environment. 2.3 Objectives - Generate new revenue - Expand current customer base - Gain market share
  • 6. Thinspired 5 2.4 Keys to Success - App is to be extremely user friendly - Establish a loyal following of ADFL fans - Create a cash flow of $50K in the first 6 months of being on the market in order to cover development costs - Make sure the app even in its 1.0 stage is bug-less - Keep the updates and upgrades flowing at least once a month 3. Product 3.1 Introduction We are an application development company that has created a wide variety of mobile apps. Our first application was LifieGramm – an Instagram inspired app that turned into a success. Our newest member in our app family is called ThinSpired. The name Thinspired came out of a large pool of names which took a long time to create. Names ranged from Recipe Central and Ideaverse to Thinspired and Hungry Time. After hours of going back and forth on possible names for our nutrition application, we decided to go with Thinspired because we know our customers want a product that will allow them to become thinner and stronger while being inspired by different work out choices. Our vision is to provide a source of work out exercises for people to be healthier. We intend to provide our customers with the best selections of work outs that target different muscle groups. We believe that any individual has the capability of completing these workouts with a little inspiration and determination.
  • 7. Thinspired 6 3.2 Development Requirements When building a mobile app, defining its requirements is one of the key elements in the process. Determining which hardware and operating system the application will run on is the first and most important step. Our team had to ask questions such as “Will we build the app to run only on one platform or on every platform?” and “What will we do if the app runs on one version of Android but when we tweak it to run on another version, it doesn't work on the first?”. To answer these questions, we first looked into the difference between native and web based apps. Native Apps 1 Speed Faster and more responsive than web based apps. Local Storage Native apps can run asynchronously, meaning dynamic information can be stored locally on the phone temporarily and synced with the central web-based server later. Features Access to that platform's hardware features. App Store Free shelf space for new products and can be a great way to advertise. Drawbacks Separate code base must be created and maintained for each individual platform. 1 Native vs Web Apps
  • 8. Thinspired 7 Web Based Apps Single Solution Single source base, available for all devices; no waiting for versions. Real Time Updates Updates of the app happen real-time, no waiting on app store approval. Freedom Free to add any advertisement and content you would like. Catching up Huge development in the mobile web area. Drawbacks Lack of access to the phone’s functionalities. Both native and web based apps have many advantages, which made our decision hard. We truly appreciated the freedom, the single solution and real time updates functionality that web based apps give us. However, we liked the native apps access to the hardware functions. In order to completely settle on a choice, we also looked into advantages and disadvantages of Android and iOS development. Android vs iOS Development 2 Steps Android iOS Environment Eclipse which has many plugins. Easy to use Xcode. Configuration More elegant app permissions OS’s Xcode contains a long list of build settings. Language Java Objective C Publishing Eclipse wizard Requires certificates and distribution profiles. 2 Android vs iOS
  • 9. Thinspired 8 After doing a brief comparison between the Android and the iOS development, we came to the conclusion that having an app that can run in both platforms will be most beneficial for the type of app we have. Thus, leading us to choosing web based app development which allows us to have a single source code that can be applied both to Android and iOS devices. 3.3 Product Description 3.3.1 Overview ThinSpired is an app that will allow the user to search for work out exercise based on the primary muscle groups – biceps, triceps, shoulders, chest, abdominals, back, and legs. Each work out will contain a set of instructions on how to do the exercise, photos, and videos. 3.3.2 Features Simplicity ThinSpired is an app about exercises. We want our users to be able to use it while they jump, squat, or run. Therefore, simplicity is a key for our product. We recognized 3 key elements to achieve app simplicity: - High definition photos. - Clear instructions. - Easy and user friendly navigation.
  • 10. Thinspired 9 Additional Features In order to motivate our users to complete their exercises better with each repetition block they do, we added a stop watch feature where users can track the time it takes them and try to outdo themselves.
  • 11. Thinspired 10 3.3.3 Developing Stages/ Milestones Stage Components Tools Status I 1. Home Tab 2. Exercise Tab 3. Exercises for different Muscle Groups 4. Stop Watch CSS, HTML, JQuery M. CSS,HTML, JQuery M, JavaScript 100% 100% 100% 100% II 1. Expand Exercises for Muscle Groups 2. Clean CSS styles, images, etc. CSS,HTML, JQuery M, JavaScript April 28th III 1. Functionality to buy more exercise. 2. Social Media connections 3. Add Routines Tab 4. iOS compatible 5. Google Maps Facebook API, Shopping Carts API. Google Maps API Future Note: Our executive team decided that we will continue with scrolling for the exercise popups instead of sliding.
  • 12. Thinspired 11 3.3.4 Technical Elements: Tools: For the development of our app, our technical team used primarily HTML, CSS, JavaScript, and JQuery & JQuery Mobile. Editors: We used Brackets as prime editor. For emulation we used PhoneGap/Cordova. Browsers: Browsers used for testing and developing were: Google Chrome and Firefox. 4. Market Analysis 4.1 Market Research We will begin our market analysis with a preliminary market research of the health and fitness app space. Fitness apps have been around since the App Store and Google Play came about. Recently since 2010, the health and fitness industry has been booming in general. Crossfit and more recently Orange Theory have seen people join these activities and pay premium prices. This increase on fitness spending was also very evident in the app ecosystem. In 2014, Flurry Analytics reported that “health and fitness apps are growing at a faster rate than the overall app market so far in 2014. The analytics firm looked at data from more than 6,800 apps in the category on the iPhone and iPad and found that usage (measured in sessions) is up 62% in the last six months compared to 33% growth for the entire market, an 87% faster pace.” (TechCrunch, 2014)
  • 13. Thinspired 12 In conjunction with health and fitness apps, manufacturers such as Apple and Google, want to capitalize on this boom by creating wearables. Just as with any basket study, we are confident that users, who download these apps, will be highly likely to purchase a wearable if it will add to the experience. Health and fitness as mentioned previously are trending worldwide. This upward trend in this industry has also touched the digital world and it is expected that these apps will reach over 26 billion dollars in profit by 2018. (Information Week, 2013). This statement reinforces the fact that the digital world and app markets reflect what is trending in our lives, no necessarily only what we do online. When totaled together there are approximately 40,000 health and fitness apps available (Washington Post, 2013). That staggering number reflects the demand users have for these apps and how the developer community has responded. 40 thousand apps for one industry is only second to the amount of gaming apps. As demand increases and more developers decide to jump into the emulation game, we are likely to see this number to grow. In order to be successful, top applications tend to have the following characteristics: - Professionally designed and the user interface is easy to use. An app that is difficult to operate will be replaced by one that is user friendly. - Takes competitiveness into account. People like a good challenge, especially if you are able to set goals and reach them. Even if the goals are simple, it gives the user confidence and a reason to keep going. - Progress, results and tracking. Checking goals off or being able to look back on months of training is a great way for the user to feel good about their progress. Whether someone
  • 14. Thinspired 13 calls this “gamification” or simply a way to make your progress fun, apps that allow the user to easily check progress will keep users engaged and coming back for more. - Social media and fitness apps go hand in hand. Being able to create an account with your Facebook or Google Plus makes the registering process easy and seamless. In addition to registration, sharing reached goals or the new goals set by the user, will always cause some kind of reaction social media. - Community aspect. Going back to the days of the Live Strong website, it was easy to see that a community of users, who set similar goals, will thrive. Most people complain about not having a workout buddy, and the online world is not any different. Users want to be able to answer questions on the fly and get expert opinions. Building the community aspect will attract more users and should reduce consumer turnover. According to a recent study, the biggest group of health apps could be categorized as fitness apps. More than 30% of all apps that are listed in the Health & fitness and Medical app sections of Apple App Store, Google Play, BlackBerry Appworld and Windows Phone Store are fitness trackers or exercise guides. The second and third major groups in the Health and Fitness App Market are the Medical reference (16.6%) and Wellness apps (15.5%). Medical reference apps provide information about medications, diseases and symptoms, and provide instructions on how to take certain drugs or what to do in case of experiencing pain. Some apps also show locations of pharmacies and medical centers/doctors near the user’s location. Wellness apps encapsulate relaxation solutions, yoga instructions and beauty tips. Nutrition apps help their users keep track of their diet, inform them about e.g. vitamins, calories and fat content as well as socio-economic aspects of food products.
  • 15. Thinspired 14 And last are the medical condition management apps. Medical condition management apps represent the 5th biggest group of health and fitness apps (6.6%). This group consists of all apps which track, display and share user´s health parameters, medicament intake, feelings, behavior or provide information on a specific health condition e.g. diabetes, obesity, heart failure. 3 Today, the health and fitness market offers opportunities to generate substantial revenue. 5.1% of the active players in the market were able to generate more than USD $ 1,000,000 with 3 Research2Guidance
  • 16. Thinspired 15 health apps for the previous year. This includes revenues from app downloads, in-app purchases, advertisements, related devices, and services. The preferred mobile operating platforms for health and fitness apps today are Android (83%) and iOS (81%). All other platforms are far behind. The importance of the second tier platforms like Windows Phone and HTML5 is significantly higher among the companies that are just entering the market. 51% and 45% of future app publishers plan to release this kind of apps for Windows Phone or HTML5. Today’s future health and fitness app publishers select their mobile operating platform on the basis of their reach within the target group (67%/63%). The second most important selection criterion is the availability of devices and sensors to be connected to an app (42%/56%). (Research2Guidance) 4. 2 Porter’s Five Competitive Forces Model In order to understand the health and fitness app market, we need to also analyze the industry attractiveness using Porter’s fives forces model.
  • 17. Thinspired 16 Bargaining power of Suppliers The suppliers for this industry mainly comprise of platform manufacturers - iPhone, Android,Blackberry, Windows mobile/Windows Phone, Symbian, third party players like GetJar andPocketGear and mobile operators – Airtel, Vodafone, French telecom etc. Platform specific applications – The applications developed by these players are mostly platform specific. High numbers of Suppliers - Currently, there are more than 10 mobile platforms and thousands of application developers in the market. Inputs required – The inputs required for this industry i.e. the application developers, software and hardware requirement and the technology required, are easily available at almost none or competitive price.
  • 18. Thinspired 17 Presence of substitute products - Substitute products i.e. the applications for a particular task are high in numbers. So the consumer has the capability to substitute one application with the other easily and quickly. The average selling price of the applications is decreasing which shows that the developers are now focusing on getting volumes by lowering the prices. This emphasises that the Suppliers bargaining power is high. The Key to be successful in this industry as a Supplier is to continuously Innovative and provide User-friendly product to the consumers. Bargaining power of buyers Switching Cost- If the buyer is switching between the application providers for the same platform then his switching cost would be low. For switching to different platforms the switching cost would be high. Customer loyalty- Customers are only looking for applications which meet their purpose or are entertaining and easy to use. They have low stickiness with a particular application or its developer.Thus, the bargaining power of Buyers for this industry is high. Threat of substitute products There is a high number of fitness and health apps available for all platforms. Examples are Lose It!, MyFitnessPal, Pact,Cody, Carrot Fit, Workout Trainer and many more. The price range for health and fitness apps go from free up to $4 dollars for download. Those making the threat of substite products high.
  • 19. Thinspired 18 Barrier to Entry Brands like Apple and Google have already established large presence in the health and fitness app market. Their market dominance is a high barrier to entry. However, the easily available technology and resources for devoloping apps provide an easier entry to the market. Therefore, barrier to entry is a moderate force. Industry Rivalry Due to the accessible resources allowing to enter the market, there are many apps available which creates a high industry rivalry. The fierce rivalry among the large companies has resulted in decrease in the average selling price of the health and fitness applications. 4.3 Market SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the health and fitness app market. Strengths The market is rapidly growing. New technology such as wearable devices is becoming increasingly popular which in terms stimulates the development of new apps for these wearable devices. Health and fitness are always needed and customers would always be willing to spend money to obtain better health and physical condition.
  • 20. Thinspired 19 Weaknesses The success for apps in this market are purely based on customers likes and determination of use. It is unpredictable if an user will stick to their health regimes and continue using the apps and their upgrades. Opportunities One of the biggest opportunities in this market is the participation within a growing market. Another opportunity is the ability for users to sync multiple different apps to their devices and between one another. Examples could be seen with the newly developed fitness tracker Jawbone and its companion app Up which can be synched with other apps such as MyFitnessPal, Lose It!, Slim & Trim and many more. Threats Some of the threats for this market include the lack of immunity to an economic downturn, the potential competition from larger, well established competitors, and a change in society where individuals don’t consider their health maintenance as an important aspect of their lives. 4.4 Competition/Product Analysis
  • 21. Thinspired 20 The fitness and health app space is very broad. There are apps from counting and logging calories, through exercise apps, to cooking recipes apps. There are multiple web sites that provide similar products. However, there are only a few apps that are similar to our new product such as “Workout Trainer” and “FitStar”. These apps are not in the top downloaded app, therefore, we will look into one of the most successful health/fitness apps in order to get a better understanding of the market and what users look for. One of the most successful apps that counts calories and helps to promote both weight loss and weight is “Calorie Counter – MyFitnessPal”. This app has been, according to App Annie, downloaded about 50 million times, which makes it the most downloaded health type app in the google play store. The apps claims to fame are its: vast food database which is comprised of over 5,000,000 foods, fast and easy calorie counter, and is 100% free with absolutely no hidden fees or in app purchases. This app also allows you to connect the app to wearable fitness technology such as Fitbit. As a gateway to perform a better market research we have posed 10 questions to help break down why this app is such a great success. 4.4.1 App Success This app is successful for a number of reasons, some of which were already mentioned. First being the fact that it has been downloaded an upwards of 50 million times. Second, it is very simple to use. Problem with an app like this is that people don’t enjoy this type of activity and if the app was complex and took a lot of time to perform simple activities, the data would not be accurate and you would never get anywhere weight wise. Thirdly, this app is completely free, no hidden fees, and no pop up ads.
  • 22. Thinspired 21 Lastly, there is a database of over 5 million food items which makes finding the nutrition information on the foods you consume on a daily basis a breeze. (AppAnnie, 1) 4.4.2 App Rank The app in the app store right now according to AppAnnie is #1 in the health and fitness category, and #8 overall in the app store. Also according to AppAnnie overall in The Downloads department, downloaded applications have fluctuated between about ranks 100 and rank 20 for the last 365 days. The consistency has been steady over the last 365 days for the most part except for a dip in downloads in the winter months, which naturally just makes sense. (MyfitnessPal,1) 4.4.3 Market Demand According to the actual app page on the google play store, the app has a 4.6 star rating out of 5. Out of the 926,000 reviews, 690,000 of them were 5 star ratings. Some of the reviews are as follows “doesn’t get any easier”, “If you don’t cheat this app is great!!”, “Money saving weight loosing app”, “Amazing, this app has helped change my life”. If these reviews are any indication, this app is fantastic and really does get the results it states. (AppAnnie, 1) This app has no “purchases” and therefore this app does not invoke an impulse buy. In addition, people don’t tend to just all of a sudden realize they are overweight. They usually know for a long time and need something like this to help them out to hit their health and fitness goals.
  • 23. Thinspired 22 4.4.4 App Marketing MyFitnessPal is marketing to their customers by ways of detailed screenshots that show progress, nutrition, even friends that use the app and their progress to help keep you on track, customer testimonials. Just that slogan will attract its only following because whenever someone claims something is easy and delivers what it promises, that is a great app! (AppAnnie, 1) 4.4.5 Competitive Advantage The competitive advantage of this app over other fitness apps is just the simple fact that it is 100% completely free. 100% of the functionality is there already and you can use the app however you see fit. It already has a massive following and satisfied customers; in addition to the 50 million downloads in the app store. (MyfitnessPal,1) 5. Strategy and Implementation Summary As an application in the fitness industry, Thispired will use the current healthy lifestyle momentum to its advantage. Social Media is exploding with health, fitness, diets, excersiese and much more. This trend has easily spread through the sharing of pictures, short videos, healt reciepes and more. Our marketing strategy with Thinspired will rely on 2 major efforts. Industry networking and online advertising. The first 6 months, we will rely solely on brand buiding via networking in the health industry. Once the 6 months are up or when we feel that the brand is ready for some direct advertising, we will make use of our advertising budget.
  • 24. Thinspired 23 5.1 Marketing Strategy Fitness and health has been growing at an amazing pace since 2013. “Growth in health and fitness is 87% faster than the industry, which is itself growing at an astounding rate.” (Flurry, 2014) We at Thinspired embrace this movement and do not see it as a saturated market. Our plan is to head full force into this tidal wave and use it to surf into profits. Our social media objective and goals are as follow:
  • 25. Thinspired 24 1. Create Facebook precense. a. Post execrise related articles. b. Promote our app and our fellow health/fitness companies c. Run a campaign that will award a contestant a fitness wearable d. Obtain 5,000 fans in 6 months. 2. Create Twitter account. a. Tweet fitness quotes, goals, exercises, reciepes and before/after pics b. Re-tweet industry information and celebrity related fitness posts (ex. Hugh Jackman) c. Run campaign for follower increase. Ask followers to tag a friend and retweet our tweets for a day. The winner gets a 1 year memebership at a gym franchise of their choice. d. Obtain 5,000 followers in 6 months. 3. Create Instagram account. a. Reach out to the vast amount of health and fitness accounts available. b. Establish a core of partners that are willing to put together a large 30 day challenge for followers. They have to follow us and do a 30 day routine with our app and the other partners foods, diets, spices, clothing etc. The winner recieves an iPhone 6 plus an Android phone with our pre-loaded app and goodies from our partners. The cost of the giveaway is split by the partners. c. Post images of people working out with our app, celebrities working out, short videos of excercies.
  • 26. Thinspired 25 d. If possible, reach out to a celebrity that is willing to mention our app in exchange for a lifetime usage of the app for free. e. Obatain 5,000 followers in 6 months 4. Create YouTube Account a. Upload our entire video database into our account. b. Motivate users to upload their own workout videos. c. Reach out to health and fitness chanels to create synergy. d. Make an attempt to make a fun video that may go viral. 5. Other social media efforts a. Create Reddit account and post regularly to the subreddits in regards to fitness. i. Be careful not to push the product hard in Reddit, sensitive community. b. Focus on all these subreddits: http://www.reddit.com/r/Fitness/wiki/related_subreddits c. Create Pinterest account d. Create Tumblr account e. Monitor new social media outlets that may become an opportunity. Paid Advertising If our organic brand recognition goals are met or after six months, which ever comes later we will spend on paid advertising. Our focus will be on social media advertising rather than search engine PPC. This is due to our effort to establish ourselves in the social media ecosphere and can reach our target of millennials and generation x. The following graph shows our reason for targeting these generation and especially women:
  • 28. Thinspired 27 Our advertising budget for the first year will be $75,000. This budget will be divided into multiple social media advertising platforms but Facebook will use 50% of our entire budget. The largest social network in the world has greatly improved their advertising platform and the numbers show it. In 2014, the social network pulled in 75% of total advertising spending on social networks, according to a new report by Boston-based Strategy Analytics. The $37,500 will be used in Facebook’s advertising platform and will allow us to divide our efforts into 4 regions; North, South, Central and West. In order to target the regions that provide the best ROI or simply the most followers, we will run all regions simultaneaously for 2 weeks, then analyze everything about the intial effort. We will then be able to see where to allocate more funds, how to best target our audience and learn more about our fan base. The other 50% of our budget will be broken down as follows: - Health/Fitness (mobile ads) 40% - Pandora 30% - Instagram 15% - YouTube 10% - Free Application Ads 5%
  • 29. Thinspired 28 5.2 Sales Strategy Thinspired is an app that creates value when it is used. It is for this reason that we have selected the Freemium pricing strategy. Our research discovered that paid apps are best for brands or products that already have a following or recognition. In addition, we decided that Paymium apps are mainly for highly intricate apps that require payment due to the amount of information or service they provide up front. 5.2.1 Price setting Freemium is the best choice for Thinspired but pricing is something that we had to look into in order to ensure success. We noticed a trend of prices of apps decreasing over the last 2 years. More and more users would rather have a free version and then possibly pay to get rid of ads or add functionality.
  • 31. Thinspired 30 It is because of this trend, that we will offer our app for free and then have the option to add functionality by paying 99 cents once. The free version will definitely not have ads for the first 12 months. Depending on how many sign ups (99 cents) we have in the first year, we may decide to add ads to our free version. Users who downloaded the free app in the first 12 months will not have ads even if we decide to add them in the future. 5.2.2 Sales forecast Our combined efforts of organic social media brand recognition, paid advertising and freemium downloads should allow us to grow ThinSpired’s paid clientel base steadily over the next 24 months. The first six months of we anticipate slow groth since we will be doing our brand establishment and will not be spending marketing dollars. Once we have our brand recognition phase complete and we begin our paid campaign, we expect to grow at 30% month over month.
  • 32. Thinspired 31 After the 24 months, our target revenue on a per month basis is between 50K and 60K. 6. Personnel Summary Our personnel summary really is our team of four individuals. Three business minds individuals as well as our over performing and underpaid tech team. - Neli- She will serve as the CTO or chief technical officer. Her duties are but are not limited to: - app development, technical analysis, technical writing, and implementing features the business team would like to see. 0 10000 20000 30000 40000 50000 60000 Sign Ups Revenue DollarsandNewUsers 24 Month Forecast January February March April May June July August September October November December January February March April May June
  • 33. Thinspired 32 - Daniel- He is our Chief Market Stragetist. He is responsible for alerting the team as to what is happening in the market and any feature sets our competitors are implimenting that we need to compete with. - Sebastian- He will serve as our CFO. He is responcible for keeping track of our finances and balancing the checkbook. He will let our team know about any necessary marketing strageties as well. - Scott- He will serve as a kind of CEO. He is responsible for making sure the team gets what they need and organizes meeting times and who needs to do what. He is also responsible for making sure the ideas the business team dreams up aren’t unrealistic according to the time frames that have been established. 7. Conclusion Through the creation of our app and researching the market, we are confident that ThinSpired will succeed in today’s dynamic application ecosphere. ADFL is prepared to welcome any possible challenges in the market place with our highly skilled tech team and our knowledgeable business team.
  • 34. Thinspired 33 8. Resources Wang, Harry. http://www.ecommercetimes.com/story/76431.html. 20 October 2012. 2015. FitnessPal, My. "Calorie Counter." Free , Diet & Exercise Journal. MyFitnessPal, n.d. Web. 02 Mar. 2015. https://www.myfitnesspal.com. Annie, App. "Calorie Counter & Diet Tracker by MyFitnessPal | App Annie."Calorie Counter & Diet Tracker by MyFitnessPal. App Annie, n.d. Web. 08 Mar. 2015. http://www.appannie.com/apps/ios/app/calorie-counter-diet-tracker-by-myfitnesspal. Research2Guidance, "mHealth App Developer Economics 2014", http://research2guidance.com/r2g/research2guidance-mHealth-App-Developer- Economics-2014.pdf, 6 May 2014. 2015 Tech Crunch, http://techcrunch.com/2014/07/21/yahoo-is-buying-mobile-analytics-firm-flurry- for-north-of-200m/ Information Week, http://www.informationweek.com/mobile/mobile-health-market-to-reach- $26b-by-2017/d/d-id/1110964 Washingpost, http://www.washingtonpost.com/sf/brand-connect/wp/2013/05/07/growing- appetite-for-mobile-health/ Flurry, http://www.flurry.com/bid/99013/The-History-of-App-Pricing-And-Why-Most-Apps- Are-Free#.VSnI7vlzSbM Flurry http://www.flurry.com/blog/flurry-insights/health-and-fitness-apps-finally-take-fueled- fitness-fanatics#.VSm6EvlzSbO Marketing Land, http://marketingland.com/facebook-accounted-for-75-of-social-ad-spending- globally-in-2014-123911 Native vs Web Apps, http://uxmag.com/articles/native-or-web-based-selecting-the-right- approach-for-your-mobile-app Android vs iOS, http://www.appmakr.com/blog/develop-android-ios/