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Running head: GENESIS FITNESS AND WELLNESS 1
Genesis Fitness and Wellness
Western Michigan University
Team 3
Morgan Winegar, Gabrielle Deering, Shelby Montney,
Holly Gadzinski, Arael Ahimsa
GENESIS FITNESS AND WELLNESS 2
Table of Contents
Executive Summary........................................................................................................................ 3
Client Profile and Objectives .......................................................................................................... 3
Definition of Team’s Tasks............................................................................................................. 3
Recommendations........................................................................................................................... 4
Website and Social Media Recommendations............................................................................ 4
Facebook.................................................................................................................................. 4
YouTube .................................................................................................................................. 7
Advertising.................................................................................................................................. 7
USPS Flyers............................................................................................................................. 8
Google Adwords...................................................................................................................... 9
YouTube Ads......................................................................................................................... 13
Financial Analysis..................................................................................................................... 14
Conclusion .................................................................................................................................... 16
References..................................................................................................................................... 17
GENESIS FITNESS AND WELLNESS 3
Executive Summary
In this report, the team explains how they met with their client and completed proposed
objectives to help improve their business. The client for this project was Genesis Fitness and
Wellness—an in-home personal training company. The company was experiencing trouble with
their marketing and advertising, so the team came up with a few recommendations to help the
company bring in more customers. They made recommendations for Genesis to improve their
social media by focusing more on self-promotion and creating a YouTube channel to post videos
of some of their fitness specialties. They also made suggestions for advertising. The team
decided that USPS flyers, promotion at local businesses, and online advertisement via YouTube
and GoogleAds are the best advertising techniques. The team also did a financial analysis of
USPS flyers because Genesis expressed extra interest in this method, and found that the rate of
return on investment was positive in all scenarios. The recommendation provided are hoped to
be successful for Genesis Fitness and Wellness.
Client Profile and Objectives
The client, Genesis Fitness and wellness, is an in-home nutrition and personal training company
that services the Kalamazoo area. They are made up of a team of 13 trainers that all have
different specialties. Genesis offers a wide variety of wellness services from in-home fitness
routines and nutritional counseling to yoga and massage therapy. This company is dedicated to
practicing fitness full spectrum, and because of their unique philosophy, they have no problem
selling services to customers that come to them. However, Genesis expressed they have had
trouble reaching out to new customers. Genesis’ main objective for this project was to become
better known by the Kalamazoo area that they service. They struggled with maintain a solid
social media network and wanted to explore different advertising methods that would truly
benefit their company. Genesis voiced they were interested in acquiring a potential sponsor and
using USPS mailing for flyers to advertise. The team took this into consideration when
determining their tasks.
Definition of Team’s Tasks
After meeting with Genesis, the team came up with different objectives to get Genesis Fitness
and Wellness better known in the Kalamazoo area. Genesis really wanted the team to find a
sponsor to help with advertising, but after contacting a few companies, it seemed it would not
work out without some form of promotion, which Genesis did not want to do. However, the
team was able to come up with two objectives that would advertise Genesis’s services at a low
cost. These objectives were: make social media improvement recommendations and make low
cost advertising suggestions.
GENESIS FITNESS AND WELLNESS 4
Recommendations
Website and Social Media Recommendations
Facebook
Millions of people use social media to communicate with others. Not only do people use it for
personal use but business owners use it to promote their company. Many businesses have turned
to Facebook as a way to connect with potential consumers. Since Genesis Fitness and Wellness
was already equipped with a facebook, the team came up with some guidelines and tips that
would improve the success of the page.
Six Guidelines Worth Considering:
1. Upkeep: It is important to connect with consumers and have conversations with them. If
you keep your Facebook page updated on a regular basis it will keep people interested
and then they will continue to visit your Facebook page.
2. Time: Facebook can be a useful marketing tool but it does require some time. Generating
new content and keeping up with the page can be very time consuming.
3. Fresh Content: Keeping your page updated with fresh, original content will keep your
current Fans coming back and can also attract new Fans: Your updates will be visible to
their friends and family on your Fan's wall and may entice them to visit your site and also
become a Fan.
4. Monitoring the Discussion: You will also need to be able to monitor your wall and
discussion boards to address and give feedback to your followers.
5. Fan=Customer? Businesses should also be aware that a Fan does not equal an active
customer.
6. Strategy: For Facebook to make sense for your business, you should target a specific goal
that’s relatable to your business strategy.
Remember: your page is an extension of your business. It’s an easy way to share updates and
more with the people who matter most. It’s ready to help you engage your customers on desktop
and on mobile devices.
Identifying Your Audience
Think about who you’d like to meet and introduce yourself. Not only can you reach more people
through Facebook, you can reach the specific people who are most likely to become your
customers.
To help you connect, consider:
 What do your ideal customers have in common?
 How old are they, and where do they live?
 How can your business help them?
 Would one group be more interested in specific messages, products or services? A
sale or a timely offer?
GENESIS FITNESS AND WELLNESS 5
Invite your friends: Let the people in your life know about your Page so they can support you by
liking it. This initial audience helps you establish credibility and spread the word right away.
Share your Page: Be sure to like your own Page. Be a spokesperson for your business.
Invite your businesses contacts: Upload a list to send people an email so they know about your
Page.
Make Your Business Come Alive On Facebook
As you post updates, photos and more, think about what your customers find interesting and
inspiring. Experiment with different kinds of posts. Does your audience love photos or prefer
when you share useful links? You’ll find out quickly by looking at your Facebook Page Insights.
 Be authentic: Share what you’re genuinely excited about and your customers will
be excited too.
 Be responsive: When people comment on your posts, show that your business is
listening and that you care. If you need more time to answer a question, let them
know you’re looking into it.
 Be consistent: The more regularly you post, the more opportunity you have for
connecting with people and building trust. Setting a schedule for your posts can
also help maximize your team’s time.
 Do what works: Replicate your success on posts that get more engagement.
Make successful posts into successful promotions: When you notice that a post is getting a lot of
engagement, promote it to reach even more people. When people like, comment on or share your
posts, their friends are also eligible to see those posts in News Feed.
Cross Promote
To increase your Page visibility, you need to tell people about it. Don’t forget to link your
personal Profile to your Page.
Promote your Page on:
 Other social networks
 Your website
 Business Cards
 Marketing material
 Events
 Newsletters
GENESIS FITNESS AND WELLNESS 6
Invest in Your Page
It’s becoming clear that Facebook ads are no longer an option for businesses. Include Facebook
ads to your marketing budget to help increase your Likes, engagement, visibility, promote
events, market your products or services, etc.
 Promoted Posts
 Sponsored stories
 Facebook ads
 Offers
Provide Value
The 80/20 rule. Try publishing around 80% original and curated content that provides value to
your followers and no more than 20% promotional content. Promotional content includes selling
your products or services, posting about how great your customer find your business (unless your
clients post it directly on your wall), showing your work or portfolio, promotion of your
accomplishments, etc.
Relevant Content. Provide a mix of content related to your products or services. All too often
we see Pages that post about random topics that are totally unrelated to their business. Don’t
stray too far off your topic!
What’s In It for Them? Whenever you post to your page, remember that your page visitors
want to know “what’s in it for them”. Be mindful of the content your post on your page to make
sure you provide value to your visitors and fans. Most Facebook users Like pages too:
 Receive discounts or promotions
 Stay informed
 Get entertained
 Interact and connect
 Get Educated
 Show support
Facebook is not the only option when it comes to marketing and advertising your services, but it
does help keep people informed in a relatively easy way. It is important to self-promote yourself
to let people know you are serious about your business and have pride in what you do. One
strategy may not work for everyone, so consider trying new strategies and incorporate creativity.
GENESIS FITNESS AND WELLNESS 7
YouTube
Online video is growing exponentially, with over 4 billion videos viewed daily. By using
YouTube for your business, you can easily reach your audience, both by creating videos and
advertising on other people’s videos.
YouTube is the 2nd largest search engine and the 3rd most visited website worldwide, behind only
Google and Facebook. Video-streaming platforms like YouTube have become so big you’re
guaranteed to find a group of people who will become your raving fans and customers, as long as
you educate, entertain and provide solutions to their problems.
Marketing on YouTube will help your videos be found on Google. Currently, more and more
videos are appearing in Google’s search results. This shows that Google considers videos to be
as important as text-only pages.
By utilizing YouTube as part of your marketing strategy for your business, you’re also
increasing the authority of your website. The more authoritative your website is in Google’s
eyes, the higher all your pages will rank in the search results (Grow Team, 2015).
One thing about YouTube is that content never dies. Meaning you can re-purpose content you’ve
already created.
With YouTube it easily allows you to build your email list. You have the ability to embed a
sign-up form directly into your YouTube videos. A video can be then temporarily stopped and
will allow viewers to enter their email address and subscribe to your list, before they continue
watching the video (Grow Team, 2015).
YouTube is an excellent way to show what your business is all about. It allows viewers to
physically see what you do from day to day. It also allows you to engage with viewers through
demonstration and comments. With YouTube you can use it as a tool to help others as well as
self-promote your business.
Advertising
Advertising is a key factor in building a
business in today’s world. In fact,
advertising spending in the United States
has increased steadily over the past years
and it is forecasted to continue to increase
steadily in the future. Last year, in 2014,
the United States spent $180.12 billion
GENESIS FITNESS AND WELLNESS 8
dollars in total media ad spending. This is to show how important advertising plays in a business
if Americans are willing to spend almost $181 billion dollars in advertisements last year. The
main reason advertising is important is because of awareness. In order to make a name for a
business they must make consumers aware of their company. Another reason advertising is
important for a business is because you can choose a target market for your advertisements. This
allows you to only advertise to the consumers you think are best fit for your business instead of
wasting time and money on consumers who aren’t going to give you the business.
USPS Flyers
Creating flyers is one of the most common advertising techniques for small businesses. Their
easy to hand out and you could potentially get flyers in the hands of thousands of consumers
locally, not to mention their relatively low cost for an advertising/promotion technique. On
Vistaprint.com you can you create a half page flyer (8.52” x 5.47”) for about $0.17 per flyer.
Advertising with mail is the best way to get your flyers in the homes of thousands of potential
customers. United States Postal Services allows you to go on their website and choose target
areas to mail your flyers. You can choose your target area by routes, residential areas, business
areas, ages 25-44, average household size, and household income. Cost is also shown as you
click your target areas so you can see about how much it’s going to cost to mail the flyers out.
You can also see how many addresses will be delivered in the target areas selected. This way you
can calculate how many flyers you’re going to need and how much it’s going to cost to make and
send the flyers out. This technique is very effective if the target area is local or income based.
GENESIS FITNESS AND WELLNESS 9
(USPS, 2015) (Brother, 2015)
Farmer’s Market and Local Business
Handing out silicone wristbands has been a common promotional technique in the last decade. It
first became popular when the Live Strong foundation came out with the yellow bracelets that
said Live Strong on them. Ever since then, many businesses have been using silicone bracelets
for promotion. These bracelets along with flyers can be handed out at local businesses in
Kalamazoo. Some examples of businesses that would be great to promote at would be
Kalamazoo People’s Food Co-Op, Sawall Health foods, and Natural Health Food Center.
Genesis already has a partnership with Hardings, so this may be a good place to hand these out.
On amazingwristbands.com you can purchase 500 ink filled debossed wristbands for only
$188.43 which is only about $0.37 per bracelet. When you create your bracelet you can choose
from many different color schemes, fonts, and sizes of the bracelets.
(Amazing Wristbands, 2015)
Advertising at the Kalamazoo Farmer’s Market is another great way to get your name out to
local consumers. With 10,892 likes and 5,042 check ins on Facebook, you can almost guarantee
that the farmers market sees about 5,000 customers a week. The daily stall rentals are $35.00 for
Saturdays and $15.00 Tuesdays and Thursdays, so it’s fairly inexpensive for the amount of
people who will see your stall. Passing out silicone wristbands and flyers can be a great way to
promote here. Passing out flyers is one thing but if wristbands are given out with the flyers it
may motivate people to actually stop and pay attention to the service or good you have to offer.
Google Adwords
The most powerful advertising platform that drives consistent reliable traffic to websites
is Google AdWords.
Google AdWords is a way for a business to attract more customers that are interested in
what they sell or service. Precision targeting of the consumers who are actively searching for the
product or service that one sells will be the reason why they will see a significant increase in
GENESIS FITNESS AND WELLNESS 10
sales and return on interest. Approximately 64.6% of people click on Google ads when they are
looking to buy an item online (Rudansky, 2014). Because you can advertise locally you will be
drawing customers from specific areas, in Genesis’ case, the Kalamazoo area and possibly the
surrounding if desired. This is key for Genesis because they do all of their business in the
Kalamazoo area.
The ads that are run through Google AdWords are the first three links at the top of the
screen and the links that are on the right side of the screen on a google search. The goal would be
to get the top three links because these are the first sites that the person sees when they google
something. More than 40% of google users don’t even know that the top three results of a search
are paid advertisements (Rudansky, 2014). These ads should be very relevant to what they are
looking for because of the keywords that were set by the business and the keywords that the
consumer searched. Even if the consumer does not click on that ad it is almost guaranteed to
have been seen. This is an example of where the ads will appear on a google search.
(Webworks, 2015)
What is Google AdWords? Google AdWords is a form of online advertising that is
handled through a google account. It takes the guessing out of marketing because you will know
right away whether your ad is working or not. If it is working then people are clicking the link to
your website and that is where the payment comes in to play. This is called pay-per-click. If
nobody clicks on your ad then you do not have to pay. Using Google AdWords will not
GENESIS FITNESS AND WELLNESS 11
negatively affect you if your ad is not successful, which is very different from any other form of
paid advertising. Broad advertising can be a waste of money. This is because you are paying for
everybody to see it and not everybody may be interested in what your business has to offer them.
If you spend money on a billboard, not every person that sees it is going to visit your website and
if they do you will not know that they do. Google AdWords takes the unnecessary costs out for
advertising to people who do not want your product or service. By setting specific keywords for
you ad only the people who search these keywords will see your ad on google. For example,
Genesis’ main service is in-home personal training. So if they make “in-home training” a
keyword, then only the people who want or who are looking for in-home training will see this ad.
If somebody searches for a gym with personal trainers, this ad will not show up on that google
search. This makes paying for the advertising a positive thing because you will know that people
are searching for your specific product or service and have made their way to your website.
There is no contract with Google AdWords. This means that if you want to stop using it
then you can whenever you want. You will not be tied down to this account for a set amount of
time, which is very beneficial to the user. Another important benefit to using Google AdWords is
the flexible budgeting. It allows the user to set a maximum dollar amount that they would be
willing to spend for each click. This does not mean they will spend that exact amount per click
every time but it means they will not spend more than that dollar amount. For example, if the
user only wants to spend $1 at the most then they will never spend over $1 per click on that ad.
This can be changed over time based on the success of the ads and the competition with other
businesses for the ad slots. The user can also set the maximum dollar amount that they want to
spend per day. For example, if the user caps it off at $20 per day then when they reach that
amount google will not show their ad until the beginning of the next day. This feature allows the
business to manage the budget they have allowed for advertising. When it comes time for
payment google provides simple payment plans, such as, credit or debit card or via a bank
payment. The user is in total control of the advertisement cost.
Getting instant feedback from advertisement is extremely beneficial to the business
because they will know if they are spending that marketing fund wisely. Using this form of
advertising allows that instant feedback and gives you up to the minute reporting. You will be
able to see how many consumers have clicked on your ad for that day, week, month, or for
whatever amount of time you wish to see. It will take this data and put it into a line chart so you
can see which days were better than others and how changes that are made to the ad or bids will
affect how many clicks you have. If you don’t see a lot of clicks to that ad it may be because that
is ad is only 90% relative. With AdWords it’s all about being the most relevant choice on the
page (Lolk, 2013). By seeing the data and the charts you will be able to make the necessary
changes to the ad to make it relevant and successful.
GENESIS FITNESS AND WELLNESS 12
(Ani, 2011)
This visual representation of your data allows you to see which days were better than others and
if your ad is consistent. These performance graphs will greatly help when deciding whether it is a
good idea to make changes to your ad or keywords. Google also allows the user to see how many
times your ad pops up on a google search and how many times somebody clicks on your ad. This
gives you a click through rate, which is simply the number of times your ad shows divided by
how many times your ad is clicked. The higher this number is the better because lets you know
how attractive your ad is on google.
Genesis Health and Wellness is a one of a kind business in Kalamazoo Michigan. Using
Google AdWords can help promote their full circle approach to a healthier lifestyle because it
allows full customization from the user. The table below is a quick search of several keywords.
We will be able to see how many pay-per-click ads are tied to the search, how many organic
(regular) searches show up, and if Genesis’ website appears on page one. It is important to try
and have your website on page one because not many people go to the second page when
searching for something on google.
Google Search Pay-per-click ads Organic Website on Page 1?
Nutritionist 3 21,000,000 No
In-home training 1 395,000,000 No
Massage Therapy In
Kalamazoo
9 226,000 No
Senior Training in
Kalamazoo
0 587,000 No
Fitness 0 1,410,000,000 No
Group Training 0 1,460,000,000 No
From these basic searches we can see that Genesis’ website does not appear on page one for any
of the searches. With Google AdWords they can be guaranteed to be on the first page for five of
the six searches without having to beat out any other competition. We can also see that for every
GENESIS FITNESS AND WELLNESS 13
search there is a large amount of the regular, non-paid websites. By using Google AdWords,
Genesis can compete with a handful of business versus thousands or even millions of them.
YouTube Ads
YouTube is a video-sharing website that was created in February 2005 and was acquired
by Google in November 2006. Currently YouTube has approximately 1 billion users and
generated 4 billion dollars in revenue in 2014, a billion more than the year before (2013), and
paid advertising was responsible for most of it. (D’Onfro, 2015)
Promoting a video on YouTube entails creating a promotional video of the particular
Company, such as with the client, Genesis Fitness and Wellness. This can be done by use of Fan
Finder or by paying to promote on YouTube through Trueview (Google Adwords for videos).
This is a straightforward process that requires creating appealing ads with a perfect call to action
and focus on the right target group.
Genesis Fitness and Wellness Company will be required to set a local budget for
promoting a video on YouTube. In particular, the budget is set per impressions or clicks and how
much the company is willing to spend in a day. The average amount to pay when one potential
customer clicks an ad is 20-25 cents. Upon completing a set budget, the promotion page becomes
inactive pending the following day. In this regard, it is possible for the Company to kick start the
promotion strategy with any agreed budget and increase the budget with time. This is done by
signing into the Company’s Google AdWords account, click on the campaign tab, open the
dropdown menu of the “Type” column then select “online video”. Once in this page, you can
start to manage the budget and other criteria (period, format, etc) of your Ad. The table below
shows the ad formats
Ad Format Viewer Experience Pricing Model
In-search Ads
Ads appear on the
YouTube search page
Viewers see your video ad
above or next to YouTube’s
regular search results
Pay only when viewers
click on your video ad and
begin watching your video
In-display Ads
Ads appear next to videos
on the YouTube watch
page
Viewers see your video ad
on the top right portion of a
search page and/or video
page
Pay only when viewers
click on your video ad and
begin watching your video
In-stream Ads
Ads play as a pre-,mid-, or
post-roll on YouTube
partner videos of all lengths
Ads plays prior, during,
after a video for 5 seconds,
then viewers choose to skip
or watch the rest
Pay only when viewers
watch 30 seconds of the ad,
or to completion (if the ad
is under 30 seconds)
In-slate Ads Before a video plays, Pay only when viewers
GENESIS FITNESS AND WELLNESS 14
The company can choose to either use
specific type of format or all four formats
concurrently. This is one of the benefits of
promoting through Trueview on YouTube,
other benefits includes; having complete
control of the budget, given real-time detail
information about spending usage and
performance, and being able to choose
specific location to run the ad. Aside from
having these benefits, the company also has
the responsibility to make an interesting, high-
quality video to attract more viewers.
Although having a 2% average click-
through rate (Denny, 2014), the average cost per month to advertise on YouTube is not more
than $7.60 (Gutelle, 2014), which is very affordable for start-up companies, thus it makes it an
ideal advertising method.
In conclusion, advertising on YouTube allows Genesis to reach out to target audiences
that they did not have or could not reach organically and doing so with low cost and high
efficiency. And in the long-term this will help Genesis to achieve its set goals of selling its
services to the target customer.
Financial Analysis
Genesis fitness expressed extra interest in USPS mailing flyers, so the team decided to do a
financial analysis to find an estimated the rate of return on investment for this type of
advertising. Using the costs of the flyers and cost of mailing to 3 routes in the Kalamazoo area
(mean income $104,000-$110,000), three scenarios were created to show how many customers
could be reached and how profitable it would be.
On the three routes there are 1621 houses. Realistically, mail advertising brings in 3% of those
contacted. So for the realistic scenario, it was said that 3% of the 1621 households responded. It
Ads play before long-form
YouTube partner videos
over 10 minutes
viewers choose either to
watch an ad from 1 of 3
different advertisers, or to
see regular commercial
breaks during the video
choose to watch your ad
GENESIS FITNESS AND WELLNESS 15
was assumed that each of the respondent’s signed up for one nutritional session and two fitness
sessions. Given some respondents may sign up for more sessions and become regular members
and others may sign up for less, this was a good medium for a starting estimate.
As can be seen above, with a 3% respondent rate, the overall return of the money invested into
the advertisements is $9,748.11 with a rate of return of 94%, which essentially means for every
dollar you spend, you earn $1.94. Assuming that the amount earned on each nutrition and fitness
session is only 30% profit, you still are earning $2,924.43 in pure profit.
This same analysis was run for a pessimistic scenario of 1% and an optimistic scenario of 5%.
The results can be seen below.
As can be seen, even the worst case scenario where only 16 of the 1621 people buy services,
there is still a rate of return of 85%, which is very good. Obviously the optimistic return has a
much greater profit margin and a rate of return that nearly doubles every dollar invested.
GENESIS FITNESS AND WELLNESS 16
Conclusion
In conclusion advertising is the best way to improve a clientele for any business. The suggested
advertising techniques stated by our team are USPS flyers, Promotion at local businesses, and
online advertising via YouTube and GoogleAds. Other suggestions were the upkeep and
maintenance of social media to attract new and returning consumers. The research given shows
feasibility in all the suggested advertising techniques. Our suggestion given to Genesis Fitness
and Wellness will be sure to improve their clientele to their desired expectations.
GENESIS FITNESS AND WELLNESS 17
References
Ani, M. (2011, March 15). Retrieved from http://www.jxtgroup.com/adwords-account-
dashboard_3913431.html
Denny, J. (2014, February 17). TrueView, of not TrueView: That is the question with video
advertising. Retrieved from http://white.net/blog/trueview-trueview-question/
D’Onfro, J. (2015, February 25). YouTube still doesn’t make Google any money. Retrieved from
http://www.businessinsider.com/youtube-still-doesnt-make-google-any-money-2015-2
Facebook for business. (2015). Facebook can help you reach all the people matter most to your
business. Retrieved from https://www.facebook.com/business/overview?_rdr
Gutelle, S. (2014, February 3). The average YouTube CPM is $7.60, but making money isn’t
easy. Retrieved from http://tubefilter.com/2014/02/03/youtube-average-cpm-advertising-
rate/
Lachance, G. (2013, May 11). Top 10 most read tips to run a successful Facebook business
page. Retrieved from http://www.socialmediatoday.com/content/top-10-must-read-tips-
run-successful-facebook-business-page
Lolk, A. (2013, June 14). 6 reasons why small business often fail with AdWords. Retrieved from
http://www.searchenginejournal.com/6-reasons-why-small-businesses-often-fail-with-
adwords/
Media Buying. (2014, July 2). Total US Ad Spending to See Largest Increase Since 2004.
Retrieved from http://www.emarketer.com/Article/Total-US-Ad-Spending-See-Largest-
Increase-Since-2004/1010982
GENESIS FITNESS AND WELLNESS 18
Grow Team. (n.d.). 8 Massive Benefits of Using YouTube for Business Retrieved June 17, 2015,
from http://www.wearegrow.com/8-massive-benefits-of-using-youtube-for-business/
Rudansky, I. (2014, July 7). Retrieved from https://www.youtube.com/watch?v=zhSnj3jR_6c
Smith, R. (2014, January 7). TrueView pre-roll advertising on YouTube. Retrieved from
http://adhouseadvertising.com/more-info/articles/learn-with-us/item/61-true-view-
advertising-on-youtube-with-google-adwords
Webworks, I. (2015). Retrieved from http://www.infront.com/blogs/the-infront-
blog/2012/5/18/how-to-use-google-adwords

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Genesis fitness and wellness final

  • 1. Running head: GENESIS FITNESS AND WELLNESS 1 Genesis Fitness and Wellness Western Michigan University Team 3 Morgan Winegar, Gabrielle Deering, Shelby Montney, Holly Gadzinski, Arael Ahimsa
  • 2. GENESIS FITNESS AND WELLNESS 2 Table of Contents Executive Summary........................................................................................................................ 3 Client Profile and Objectives .......................................................................................................... 3 Definition of Team’s Tasks............................................................................................................. 3 Recommendations........................................................................................................................... 4 Website and Social Media Recommendations............................................................................ 4 Facebook.................................................................................................................................. 4 YouTube .................................................................................................................................. 7 Advertising.................................................................................................................................. 7 USPS Flyers............................................................................................................................. 8 Google Adwords...................................................................................................................... 9 YouTube Ads......................................................................................................................... 13 Financial Analysis..................................................................................................................... 14 Conclusion .................................................................................................................................... 16 References..................................................................................................................................... 17
  • 3. GENESIS FITNESS AND WELLNESS 3 Executive Summary In this report, the team explains how they met with their client and completed proposed objectives to help improve their business. The client for this project was Genesis Fitness and Wellness—an in-home personal training company. The company was experiencing trouble with their marketing and advertising, so the team came up with a few recommendations to help the company bring in more customers. They made recommendations for Genesis to improve their social media by focusing more on self-promotion and creating a YouTube channel to post videos of some of their fitness specialties. They also made suggestions for advertising. The team decided that USPS flyers, promotion at local businesses, and online advertisement via YouTube and GoogleAds are the best advertising techniques. The team also did a financial analysis of USPS flyers because Genesis expressed extra interest in this method, and found that the rate of return on investment was positive in all scenarios. The recommendation provided are hoped to be successful for Genesis Fitness and Wellness. Client Profile and Objectives The client, Genesis Fitness and wellness, is an in-home nutrition and personal training company that services the Kalamazoo area. They are made up of a team of 13 trainers that all have different specialties. Genesis offers a wide variety of wellness services from in-home fitness routines and nutritional counseling to yoga and massage therapy. This company is dedicated to practicing fitness full spectrum, and because of their unique philosophy, they have no problem selling services to customers that come to them. However, Genesis expressed they have had trouble reaching out to new customers. Genesis’ main objective for this project was to become better known by the Kalamazoo area that they service. They struggled with maintain a solid social media network and wanted to explore different advertising methods that would truly benefit their company. Genesis voiced they were interested in acquiring a potential sponsor and using USPS mailing for flyers to advertise. The team took this into consideration when determining their tasks. Definition of Team’s Tasks After meeting with Genesis, the team came up with different objectives to get Genesis Fitness and Wellness better known in the Kalamazoo area. Genesis really wanted the team to find a sponsor to help with advertising, but after contacting a few companies, it seemed it would not work out without some form of promotion, which Genesis did not want to do. However, the team was able to come up with two objectives that would advertise Genesis’s services at a low cost. These objectives were: make social media improvement recommendations and make low cost advertising suggestions.
  • 4. GENESIS FITNESS AND WELLNESS 4 Recommendations Website and Social Media Recommendations Facebook Millions of people use social media to communicate with others. Not only do people use it for personal use but business owners use it to promote their company. Many businesses have turned to Facebook as a way to connect with potential consumers. Since Genesis Fitness and Wellness was already equipped with a facebook, the team came up with some guidelines and tips that would improve the success of the page. Six Guidelines Worth Considering: 1. Upkeep: It is important to connect with consumers and have conversations with them. If you keep your Facebook page updated on a regular basis it will keep people interested and then they will continue to visit your Facebook page. 2. Time: Facebook can be a useful marketing tool but it does require some time. Generating new content and keeping up with the page can be very time consuming. 3. Fresh Content: Keeping your page updated with fresh, original content will keep your current Fans coming back and can also attract new Fans: Your updates will be visible to their friends and family on your Fan's wall and may entice them to visit your site and also become a Fan. 4. Monitoring the Discussion: You will also need to be able to monitor your wall and discussion boards to address and give feedback to your followers. 5. Fan=Customer? Businesses should also be aware that a Fan does not equal an active customer. 6. Strategy: For Facebook to make sense for your business, you should target a specific goal that’s relatable to your business strategy. Remember: your page is an extension of your business. It’s an easy way to share updates and more with the people who matter most. It’s ready to help you engage your customers on desktop and on mobile devices. Identifying Your Audience Think about who you’d like to meet and introduce yourself. Not only can you reach more people through Facebook, you can reach the specific people who are most likely to become your customers. To help you connect, consider:  What do your ideal customers have in common?  How old are they, and where do they live?  How can your business help them?  Would one group be more interested in specific messages, products or services? A sale or a timely offer?
  • 5. GENESIS FITNESS AND WELLNESS 5 Invite your friends: Let the people in your life know about your Page so they can support you by liking it. This initial audience helps you establish credibility and spread the word right away. Share your Page: Be sure to like your own Page. Be a spokesperson for your business. Invite your businesses contacts: Upload a list to send people an email so they know about your Page. Make Your Business Come Alive On Facebook As you post updates, photos and more, think about what your customers find interesting and inspiring. Experiment with different kinds of posts. Does your audience love photos or prefer when you share useful links? You’ll find out quickly by looking at your Facebook Page Insights.  Be authentic: Share what you’re genuinely excited about and your customers will be excited too.  Be responsive: When people comment on your posts, show that your business is listening and that you care. If you need more time to answer a question, let them know you’re looking into it.  Be consistent: The more regularly you post, the more opportunity you have for connecting with people and building trust. Setting a schedule for your posts can also help maximize your team’s time.  Do what works: Replicate your success on posts that get more engagement. Make successful posts into successful promotions: When you notice that a post is getting a lot of engagement, promote it to reach even more people. When people like, comment on or share your posts, their friends are also eligible to see those posts in News Feed. Cross Promote To increase your Page visibility, you need to tell people about it. Don’t forget to link your personal Profile to your Page. Promote your Page on:  Other social networks  Your website  Business Cards  Marketing material  Events  Newsletters
  • 6. GENESIS FITNESS AND WELLNESS 6 Invest in Your Page It’s becoming clear that Facebook ads are no longer an option for businesses. Include Facebook ads to your marketing budget to help increase your Likes, engagement, visibility, promote events, market your products or services, etc.  Promoted Posts  Sponsored stories  Facebook ads  Offers Provide Value The 80/20 rule. Try publishing around 80% original and curated content that provides value to your followers and no more than 20% promotional content. Promotional content includes selling your products or services, posting about how great your customer find your business (unless your clients post it directly on your wall), showing your work or portfolio, promotion of your accomplishments, etc. Relevant Content. Provide a mix of content related to your products or services. All too often we see Pages that post about random topics that are totally unrelated to their business. Don’t stray too far off your topic! What’s In It for Them? Whenever you post to your page, remember that your page visitors want to know “what’s in it for them”. Be mindful of the content your post on your page to make sure you provide value to your visitors and fans. Most Facebook users Like pages too:  Receive discounts or promotions  Stay informed  Get entertained  Interact and connect  Get Educated  Show support Facebook is not the only option when it comes to marketing and advertising your services, but it does help keep people informed in a relatively easy way. It is important to self-promote yourself to let people know you are serious about your business and have pride in what you do. One strategy may not work for everyone, so consider trying new strategies and incorporate creativity.
  • 7. GENESIS FITNESS AND WELLNESS 7 YouTube Online video is growing exponentially, with over 4 billion videos viewed daily. By using YouTube for your business, you can easily reach your audience, both by creating videos and advertising on other people’s videos. YouTube is the 2nd largest search engine and the 3rd most visited website worldwide, behind only Google and Facebook. Video-streaming platforms like YouTube have become so big you’re guaranteed to find a group of people who will become your raving fans and customers, as long as you educate, entertain and provide solutions to their problems. Marketing on YouTube will help your videos be found on Google. Currently, more and more videos are appearing in Google’s search results. This shows that Google considers videos to be as important as text-only pages. By utilizing YouTube as part of your marketing strategy for your business, you’re also increasing the authority of your website. The more authoritative your website is in Google’s eyes, the higher all your pages will rank in the search results (Grow Team, 2015). One thing about YouTube is that content never dies. Meaning you can re-purpose content you’ve already created. With YouTube it easily allows you to build your email list. You have the ability to embed a sign-up form directly into your YouTube videos. A video can be then temporarily stopped and will allow viewers to enter their email address and subscribe to your list, before they continue watching the video (Grow Team, 2015). YouTube is an excellent way to show what your business is all about. It allows viewers to physically see what you do from day to day. It also allows you to engage with viewers through demonstration and comments. With YouTube you can use it as a tool to help others as well as self-promote your business. Advertising Advertising is a key factor in building a business in today’s world. In fact, advertising spending in the United States has increased steadily over the past years and it is forecasted to continue to increase steadily in the future. Last year, in 2014, the United States spent $180.12 billion
  • 8. GENESIS FITNESS AND WELLNESS 8 dollars in total media ad spending. This is to show how important advertising plays in a business if Americans are willing to spend almost $181 billion dollars in advertisements last year. The main reason advertising is important is because of awareness. In order to make a name for a business they must make consumers aware of their company. Another reason advertising is important for a business is because you can choose a target market for your advertisements. This allows you to only advertise to the consumers you think are best fit for your business instead of wasting time and money on consumers who aren’t going to give you the business. USPS Flyers Creating flyers is one of the most common advertising techniques for small businesses. Their easy to hand out and you could potentially get flyers in the hands of thousands of consumers locally, not to mention their relatively low cost for an advertising/promotion technique. On Vistaprint.com you can you create a half page flyer (8.52” x 5.47”) for about $0.17 per flyer. Advertising with mail is the best way to get your flyers in the homes of thousands of potential customers. United States Postal Services allows you to go on their website and choose target areas to mail your flyers. You can choose your target area by routes, residential areas, business areas, ages 25-44, average household size, and household income. Cost is also shown as you click your target areas so you can see about how much it’s going to cost to mail the flyers out. You can also see how many addresses will be delivered in the target areas selected. This way you can calculate how many flyers you’re going to need and how much it’s going to cost to make and send the flyers out. This technique is very effective if the target area is local or income based.
  • 9. GENESIS FITNESS AND WELLNESS 9 (USPS, 2015) (Brother, 2015) Farmer’s Market and Local Business Handing out silicone wristbands has been a common promotional technique in the last decade. It first became popular when the Live Strong foundation came out with the yellow bracelets that said Live Strong on them. Ever since then, many businesses have been using silicone bracelets for promotion. These bracelets along with flyers can be handed out at local businesses in Kalamazoo. Some examples of businesses that would be great to promote at would be Kalamazoo People’s Food Co-Op, Sawall Health foods, and Natural Health Food Center. Genesis already has a partnership with Hardings, so this may be a good place to hand these out. On amazingwristbands.com you can purchase 500 ink filled debossed wristbands for only $188.43 which is only about $0.37 per bracelet. When you create your bracelet you can choose from many different color schemes, fonts, and sizes of the bracelets. (Amazing Wristbands, 2015) Advertising at the Kalamazoo Farmer’s Market is another great way to get your name out to local consumers. With 10,892 likes and 5,042 check ins on Facebook, you can almost guarantee that the farmers market sees about 5,000 customers a week. The daily stall rentals are $35.00 for Saturdays and $15.00 Tuesdays and Thursdays, so it’s fairly inexpensive for the amount of people who will see your stall. Passing out silicone wristbands and flyers can be a great way to promote here. Passing out flyers is one thing but if wristbands are given out with the flyers it may motivate people to actually stop and pay attention to the service or good you have to offer. Google Adwords The most powerful advertising platform that drives consistent reliable traffic to websites is Google AdWords. Google AdWords is a way for a business to attract more customers that are interested in what they sell or service. Precision targeting of the consumers who are actively searching for the product or service that one sells will be the reason why they will see a significant increase in
  • 10. GENESIS FITNESS AND WELLNESS 10 sales and return on interest. Approximately 64.6% of people click on Google ads when they are looking to buy an item online (Rudansky, 2014). Because you can advertise locally you will be drawing customers from specific areas, in Genesis’ case, the Kalamazoo area and possibly the surrounding if desired. This is key for Genesis because they do all of their business in the Kalamazoo area. The ads that are run through Google AdWords are the first three links at the top of the screen and the links that are on the right side of the screen on a google search. The goal would be to get the top three links because these are the first sites that the person sees when they google something. More than 40% of google users don’t even know that the top three results of a search are paid advertisements (Rudansky, 2014). These ads should be very relevant to what they are looking for because of the keywords that were set by the business and the keywords that the consumer searched. Even if the consumer does not click on that ad it is almost guaranteed to have been seen. This is an example of where the ads will appear on a google search. (Webworks, 2015) What is Google AdWords? Google AdWords is a form of online advertising that is handled through a google account. It takes the guessing out of marketing because you will know right away whether your ad is working or not. If it is working then people are clicking the link to your website and that is where the payment comes in to play. This is called pay-per-click. If nobody clicks on your ad then you do not have to pay. Using Google AdWords will not
  • 11. GENESIS FITNESS AND WELLNESS 11 negatively affect you if your ad is not successful, which is very different from any other form of paid advertising. Broad advertising can be a waste of money. This is because you are paying for everybody to see it and not everybody may be interested in what your business has to offer them. If you spend money on a billboard, not every person that sees it is going to visit your website and if they do you will not know that they do. Google AdWords takes the unnecessary costs out for advertising to people who do not want your product or service. By setting specific keywords for you ad only the people who search these keywords will see your ad on google. For example, Genesis’ main service is in-home personal training. So if they make “in-home training” a keyword, then only the people who want or who are looking for in-home training will see this ad. If somebody searches for a gym with personal trainers, this ad will not show up on that google search. This makes paying for the advertising a positive thing because you will know that people are searching for your specific product or service and have made their way to your website. There is no contract with Google AdWords. This means that if you want to stop using it then you can whenever you want. You will not be tied down to this account for a set amount of time, which is very beneficial to the user. Another important benefit to using Google AdWords is the flexible budgeting. It allows the user to set a maximum dollar amount that they would be willing to spend for each click. This does not mean they will spend that exact amount per click every time but it means they will not spend more than that dollar amount. For example, if the user only wants to spend $1 at the most then they will never spend over $1 per click on that ad. This can be changed over time based on the success of the ads and the competition with other businesses for the ad slots. The user can also set the maximum dollar amount that they want to spend per day. For example, if the user caps it off at $20 per day then when they reach that amount google will not show their ad until the beginning of the next day. This feature allows the business to manage the budget they have allowed for advertising. When it comes time for payment google provides simple payment plans, such as, credit or debit card or via a bank payment. The user is in total control of the advertisement cost. Getting instant feedback from advertisement is extremely beneficial to the business because they will know if they are spending that marketing fund wisely. Using this form of advertising allows that instant feedback and gives you up to the minute reporting. You will be able to see how many consumers have clicked on your ad for that day, week, month, or for whatever amount of time you wish to see. It will take this data and put it into a line chart so you can see which days were better than others and how changes that are made to the ad or bids will affect how many clicks you have. If you don’t see a lot of clicks to that ad it may be because that is ad is only 90% relative. With AdWords it’s all about being the most relevant choice on the page (Lolk, 2013). By seeing the data and the charts you will be able to make the necessary changes to the ad to make it relevant and successful.
  • 12. GENESIS FITNESS AND WELLNESS 12 (Ani, 2011) This visual representation of your data allows you to see which days were better than others and if your ad is consistent. These performance graphs will greatly help when deciding whether it is a good idea to make changes to your ad or keywords. Google also allows the user to see how many times your ad pops up on a google search and how many times somebody clicks on your ad. This gives you a click through rate, which is simply the number of times your ad shows divided by how many times your ad is clicked. The higher this number is the better because lets you know how attractive your ad is on google. Genesis Health and Wellness is a one of a kind business in Kalamazoo Michigan. Using Google AdWords can help promote their full circle approach to a healthier lifestyle because it allows full customization from the user. The table below is a quick search of several keywords. We will be able to see how many pay-per-click ads are tied to the search, how many organic (regular) searches show up, and if Genesis’ website appears on page one. It is important to try and have your website on page one because not many people go to the second page when searching for something on google. Google Search Pay-per-click ads Organic Website on Page 1? Nutritionist 3 21,000,000 No In-home training 1 395,000,000 No Massage Therapy In Kalamazoo 9 226,000 No Senior Training in Kalamazoo 0 587,000 No Fitness 0 1,410,000,000 No Group Training 0 1,460,000,000 No From these basic searches we can see that Genesis’ website does not appear on page one for any of the searches. With Google AdWords they can be guaranteed to be on the first page for five of the six searches without having to beat out any other competition. We can also see that for every
  • 13. GENESIS FITNESS AND WELLNESS 13 search there is a large amount of the regular, non-paid websites. By using Google AdWords, Genesis can compete with a handful of business versus thousands or even millions of them. YouTube Ads YouTube is a video-sharing website that was created in February 2005 and was acquired by Google in November 2006. Currently YouTube has approximately 1 billion users and generated 4 billion dollars in revenue in 2014, a billion more than the year before (2013), and paid advertising was responsible for most of it. (D’Onfro, 2015) Promoting a video on YouTube entails creating a promotional video of the particular Company, such as with the client, Genesis Fitness and Wellness. This can be done by use of Fan Finder or by paying to promote on YouTube through Trueview (Google Adwords for videos). This is a straightforward process that requires creating appealing ads with a perfect call to action and focus on the right target group. Genesis Fitness and Wellness Company will be required to set a local budget for promoting a video on YouTube. In particular, the budget is set per impressions or clicks and how much the company is willing to spend in a day. The average amount to pay when one potential customer clicks an ad is 20-25 cents. Upon completing a set budget, the promotion page becomes inactive pending the following day. In this regard, it is possible for the Company to kick start the promotion strategy with any agreed budget and increase the budget with time. This is done by signing into the Company’s Google AdWords account, click on the campaign tab, open the dropdown menu of the “Type” column then select “online video”. Once in this page, you can start to manage the budget and other criteria (period, format, etc) of your Ad. The table below shows the ad formats Ad Format Viewer Experience Pricing Model In-search Ads Ads appear on the YouTube search page Viewers see your video ad above or next to YouTube’s regular search results Pay only when viewers click on your video ad and begin watching your video In-display Ads Ads appear next to videos on the YouTube watch page Viewers see your video ad on the top right portion of a search page and/or video page Pay only when viewers click on your video ad and begin watching your video In-stream Ads Ads play as a pre-,mid-, or post-roll on YouTube partner videos of all lengths Ads plays prior, during, after a video for 5 seconds, then viewers choose to skip or watch the rest Pay only when viewers watch 30 seconds of the ad, or to completion (if the ad is under 30 seconds) In-slate Ads Before a video plays, Pay only when viewers
  • 14. GENESIS FITNESS AND WELLNESS 14 The company can choose to either use specific type of format or all four formats concurrently. This is one of the benefits of promoting through Trueview on YouTube, other benefits includes; having complete control of the budget, given real-time detail information about spending usage and performance, and being able to choose specific location to run the ad. Aside from having these benefits, the company also has the responsibility to make an interesting, high- quality video to attract more viewers. Although having a 2% average click- through rate (Denny, 2014), the average cost per month to advertise on YouTube is not more than $7.60 (Gutelle, 2014), which is very affordable for start-up companies, thus it makes it an ideal advertising method. In conclusion, advertising on YouTube allows Genesis to reach out to target audiences that they did not have or could not reach organically and doing so with low cost and high efficiency. And in the long-term this will help Genesis to achieve its set goals of selling its services to the target customer. Financial Analysis Genesis fitness expressed extra interest in USPS mailing flyers, so the team decided to do a financial analysis to find an estimated the rate of return on investment for this type of advertising. Using the costs of the flyers and cost of mailing to 3 routes in the Kalamazoo area (mean income $104,000-$110,000), three scenarios were created to show how many customers could be reached and how profitable it would be. On the three routes there are 1621 houses. Realistically, mail advertising brings in 3% of those contacted. So for the realistic scenario, it was said that 3% of the 1621 households responded. It Ads play before long-form YouTube partner videos over 10 minutes viewers choose either to watch an ad from 1 of 3 different advertisers, or to see regular commercial breaks during the video choose to watch your ad
  • 15. GENESIS FITNESS AND WELLNESS 15 was assumed that each of the respondent’s signed up for one nutritional session and two fitness sessions. Given some respondents may sign up for more sessions and become regular members and others may sign up for less, this was a good medium for a starting estimate. As can be seen above, with a 3% respondent rate, the overall return of the money invested into the advertisements is $9,748.11 with a rate of return of 94%, which essentially means for every dollar you spend, you earn $1.94. Assuming that the amount earned on each nutrition and fitness session is only 30% profit, you still are earning $2,924.43 in pure profit. This same analysis was run for a pessimistic scenario of 1% and an optimistic scenario of 5%. The results can be seen below. As can be seen, even the worst case scenario where only 16 of the 1621 people buy services, there is still a rate of return of 85%, which is very good. Obviously the optimistic return has a much greater profit margin and a rate of return that nearly doubles every dollar invested.
  • 16. GENESIS FITNESS AND WELLNESS 16 Conclusion In conclusion advertising is the best way to improve a clientele for any business. The suggested advertising techniques stated by our team are USPS flyers, Promotion at local businesses, and online advertising via YouTube and GoogleAds. Other suggestions were the upkeep and maintenance of social media to attract new and returning consumers. The research given shows feasibility in all the suggested advertising techniques. Our suggestion given to Genesis Fitness and Wellness will be sure to improve their clientele to their desired expectations.
  • 17. GENESIS FITNESS AND WELLNESS 17 References Ani, M. (2011, March 15). Retrieved from http://www.jxtgroup.com/adwords-account- dashboard_3913431.html Denny, J. (2014, February 17). TrueView, of not TrueView: That is the question with video advertising. Retrieved from http://white.net/blog/trueview-trueview-question/ D’Onfro, J. (2015, February 25). YouTube still doesn’t make Google any money. Retrieved from http://www.businessinsider.com/youtube-still-doesnt-make-google-any-money-2015-2 Facebook for business. (2015). Facebook can help you reach all the people matter most to your business. Retrieved from https://www.facebook.com/business/overview?_rdr Gutelle, S. (2014, February 3). The average YouTube CPM is $7.60, but making money isn’t easy. Retrieved from http://tubefilter.com/2014/02/03/youtube-average-cpm-advertising- rate/ Lachance, G. (2013, May 11). Top 10 most read tips to run a successful Facebook business page. Retrieved from http://www.socialmediatoday.com/content/top-10-must-read-tips- run-successful-facebook-business-page Lolk, A. (2013, June 14). 6 reasons why small business often fail with AdWords. Retrieved from http://www.searchenginejournal.com/6-reasons-why-small-businesses-often-fail-with- adwords/ Media Buying. (2014, July 2). Total US Ad Spending to See Largest Increase Since 2004. Retrieved from http://www.emarketer.com/Article/Total-US-Ad-Spending-See-Largest- Increase-Since-2004/1010982
  • 18. GENESIS FITNESS AND WELLNESS 18 Grow Team. (n.d.). 8 Massive Benefits of Using YouTube for Business Retrieved June 17, 2015, from http://www.wearegrow.com/8-massive-benefits-of-using-youtube-for-business/ Rudansky, I. (2014, July 7). Retrieved from https://www.youtube.com/watch?v=zhSnj3jR_6c Smith, R. (2014, January 7). TrueView pre-roll advertising on YouTube. Retrieved from http://adhouseadvertising.com/more-info/articles/learn-with-us/item/61-true-view- advertising-on-youtube-with-google-adwords Webworks, I. (2015). Retrieved from http://www.infront.com/blogs/the-infront- blog/2012/5/18/how-to-use-google-adwords