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6 Degrees of Progress
                   track it : talk about it




An app for trainers to measure &
                                               6 DEGREES
maximize progress                             of
                                              PROGRESS
Opportunity is BIG
and growing despite economic downturn


                                         “The Health and Fitness Clubs industry
                                         is expected to remain in a growth phase,
                                         with revenue expected to rise at an
                                         average annual rate of 2.6% to $28.2B in
                                         the five years to 2016”
                                                                      - IBISWorld, 2011




•   Gym membership numbers have increased considerably over the past 10 years,
    rising from 36.3 million in 2002 to more than 42.8 million by 2011
•   Due to the fragmented nature of the Gym, Health and Fitness Clubs industry, no
    players hold a market share larger than 5.0%
•   Recent economic conditions have favored the growth of small-budget gyms with
    fewer amenities over more expensive, all-inclusive clubs


                                                                             6 DEGREES
                                                                            of
                                                                            PROGRESS
                                          2
End-User Segments are Varied

 High School Athletes               Gym Members          Childhood Obesity
 - 18,000 schools               45.3 million members     Wellness Programs
 - 1.5M students                in 29,750 health clubs
 (boys’ basketball,
 football, girls’ basketball)       in 2009 (IHRSA)         -57M children
                                                         Identified as “obese”
                                                                 in USA
 College Athletes                                                (CDC)
 - 235 Div 1 Football teams
 - 341 Div 1 Basketball teams




                                                                          6 DEGREES
                                                                         of
                                                                         PROGRESS
                                            3
Problem is...
and growing despite economic downturn


Personal data collection is an important tool for many people attempting self improvement. Many people find
it helpful to share their data with friend, family, or professional trainers and counselors. Trainers and coaches
also want to track the daily progress of their clients.




•   Collected data includes workout logs for athletes, food logs for dieters, and spending logs for
    budgeters.
•   For our initial market segments we decided to investigate athletic trainers and mental health
    counselors. Both trainers and counselors were interested in using a tracking services. After
    several interviews we realized that tracking mental health data would require compliance
    with HIPPA and other privacy regulations. Meanwhile, athletes and physical trainers would
    not need multiple levels of security protecting their workout logs.



•   NEED TO WORK ON THIS SLIDE
                                                                                                    6 DEGREES
                                                                                                   of
                                                                                                   PROGRESS
                                                        4
Target Market Segments
All segments can benefit from 6 Degrees of Progress technology, but independent
trainers are an untapped market with identified need for tools that will vastly improve
their ability to serve their growing market




                           Personal Trainers


                        Independent Training Centers


                     All Fitness Centers and Training Organizations



                                                                               6 DEGREES
                                                                              of
                                                                              PROGRESS
                                               5
Revenue Opportunity
Conservative 3 Year Forecast = $14M

•     Individual athletes surveyed were willing to pay
      between $3-$10 per month for a logging
      service.
•     Gyms and trainers surveyed were open to
      paying $3 per person for a service that covered
      all of their clients.                                There are 250,000 personal trainers/ instructors in the US
                                                           and job growth rate is projected to be 24% over the next
                                                           10 years (10% above the average for all jobs - 14%)
                                                                                        – Bureau of Labor Statistics (2010)



                                            Year 1       Year 2         Year 3
    Market Share                              1%           3%              5%
    Trainers                                    2,500       7,680          13,100
    Average Fees per Trainer                  $15         $15             $15
    Monthly Fees                             $37,500     $115,200      $196,600
    Yearly Revenue                          $450,000     $1.382M        $2.359M
                                                                                                     6 DEGREES
                                                                                                    of
                                                                                                    PROGRESS
                                                     6
Why we add value

Our data sharing service will build on interaction principles from
         social networks such as Facebook and Twitter.
  We will use gamification techniques to make data collection
rewarding for end users so that they continue using our service
              and making progress towards goals.
 Most personal fitness services focus on the end-user athletes
 with minimal regard to sharing data with professional trainers,
but we focus on building the relationship between trainers and
                              clients.
One size does not fit all. Our app will have built in customization
                            mechanics
                                                             6 DEGREES
                                                            of
                                                            PROGRESS
                                  7

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6 degrees of progress

  • 1. 6 Degrees of Progress track it : talk about it An app for trainers to measure & 6 DEGREES maximize progress of PROGRESS
  • 2. Opportunity is BIG and growing despite economic downturn “The Health and Fitness Clubs industry is expected to remain in a growth phase, with revenue expected to rise at an average annual rate of 2.6% to $28.2B in the five years to 2016” - IBISWorld, 2011 • Gym membership numbers have increased considerably over the past 10 years, rising from 36.3 million in 2002 to more than 42.8 million by 2011 • Due to the fragmented nature of the Gym, Health and Fitness Clubs industry, no players hold a market share larger than 5.0% • Recent economic conditions have favored the growth of small-budget gyms with fewer amenities over more expensive, all-inclusive clubs 6 DEGREES of PROGRESS 2
  • 3. End-User Segments are Varied High School Athletes Gym Members Childhood Obesity - 18,000 schools 45.3 million members Wellness Programs - 1.5M students in 29,750 health clubs (boys’ basketball, football, girls’ basketball) in 2009 (IHRSA) -57M children Identified as “obese” in USA College Athletes (CDC) - 235 Div 1 Football teams - 341 Div 1 Basketball teams 6 DEGREES of PROGRESS 3
  • 4. Problem is... and growing despite economic downturn Personal data collection is an important tool for many people attempting self improvement. Many people find it helpful to share their data with friend, family, or professional trainers and counselors. Trainers and coaches also want to track the daily progress of their clients. • Collected data includes workout logs for athletes, food logs for dieters, and spending logs for budgeters. • For our initial market segments we decided to investigate athletic trainers and mental health counselors. Both trainers and counselors were interested in using a tracking services. After several interviews we realized that tracking mental health data would require compliance with HIPPA and other privacy regulations. Meanwhile, athletes and physical trainers would not need multiple levels of security protecting their workout logs. • NEED TO WORK ON THIS SLIDE 6 DEGREES of PROGRESS 4
  • 5. Target Market Segments All segments can benefit from 6 Degrees of Progress technology, but independent trainers are an untapped market with identified need for tools that will vastly improve their ability to serve their growing market Personal Trainers Independent Training Centers All Fitness Centers and Training Organizations 6 DEGREES of PROGRESS 5
  • 6. Revenue Opportunity Conservative 3 Year Forecast = $14M • Individual athletes surveyed were willing to pay between $3-$10 per month for a logging service. • Gyms and trainers surveyed were open to paying $3 per person for a service that covered all of their clients. There are 250,000 personal trainers/ instructors in the US and job growth rate is projected to be 24% over the next 10 years (10% above the average for all jobs - 14%) – Bureau of Labor Statistics (2010) Year 1 Year 2 Year 3 Market Share 1% 3% 5% Trainers 2,500 7,680 13,100 Average Fees per Trainer $15 $15 $15 Monthly Fees $37,500 $115,200 $196,600 Yearly Revenue $450,000 $1.382M $2.359M 6 DEGREES of PROGRESS 6
  • 7. Why we add value Our data sharing service will build on interaction principles from social networks such as Facebook and Twitter. We will use gamification techniques to make data collection rewarding for end users so that they continue using our service and making progress towards goals. Most personal fitness services focus on the end-user athletes with minimal regard to sharing data with professional trainers, but we focus on building the relationship between trainers and clients. One size does not fit all. Our app will have built in customization mechanics 6 DEGREES of PROGRESS 7