The document summarizes a marketing plan for a new exercise product called the Diesel-Flex. It describes the product, target demographics, marketing strategy, budget, pricing over the product life cycle, competitors, distribution channels, logo, slogan, and spokesperson. The plan aims to introduce the Diesel-Flex as an innovative way to exercise that is fun and entertaining for customers.

1. Mr. G(Garel)
IDC4UI-01
Chris Cootauco, Fiona Chu, Jeff Miu

2. The Company Name and Brand
 Company Name: Chuta-Corp
 Type of Business: Partnership
 Brand: Diesel
 Past Products: Diesel-Copter

3. Diesel-Copter
 A battery operated back-pack and a helicopter
hat that enables the user to fly 25 cm above the
ground
 No requirements in order
to fly it (license, intelligence,
physical capability)
 Controllable with neck movements
and head direction

4. Diesel-Copter
 Light, portable and
enjoyable for kids
 A new innovation (Fresh on
the Market)
 Affordable and
environmentally friendly

5. Diesel-Copter - Ancillary

6. FMD - Face-Mounted Display
 A head mounted visor and it comes with gloves and
several external sensor accessories
 This enables the user to experience a virtual type of
experience and participate in various activities within
ones home
 The technology is too costly in order to manufacture it
to sold cheaply

7. Diesel-Flex
 A portable innovative work out
machine
 Improves physical health by
making exercise more fun
 Has a variety of different exercises and activities:
Punching, kicking, push ups, lifting weights, step
machine, yoga stretches, etc.
 Available for purchase with ancillary products

8. Which Product was Chosen and
Why?
Diesel-Flex
 Improve the lives of others - innovative technology
 A different prospective on training and working out
 Increase reflexes’, endurance, speed and strength
 Helps warm up – sports/mornings
 Lose unwanted weight
 A healthier life guarantees a longer one
 One product provides a multi-purpose use
 Entertaining recreation

9. Demographics
 A survey was held
among 60 participants
 10 from each age group
 Family, friends, relatives

10. Demographics
Disposable Income (Monthly)
9
8
7 Gate Keeper
6 Under $50
Quantity
5 $50~$199
4 $200~$499
3 $500~$999
2 Above $1000
1
0
10~15 16~20 21~25 26~30 31~35 36~40
Age Group

11. Demographics
Hours of Exercise per Week
10
9
8
7 0-1h
6 2-3h
5
4-5h
4
3 6h +
2
1
0
10~15 16~20 21~25 26~30 31~35 36~40
Age Group

12. Demographics
Becoming Fit Working Alone or With Others
18%
20%
Yes
No Alone
With Others
80%
82%

13. Demographics
Most Effective Forms of Advertisements
Newspapers
7
6 Billboard
5
Internet
4
Votes
3 Television
2 Radio
1
Magazine
0
10~15 16~20 21~25 26~30 31~35 36~40
Age Group

14. Target Market
 High Schools and
University/College facilities
 Appeals to young adults and
to middle-aged adults
 Those who yearn for a healthier life-style and are
interested in improving themselves through an
entertaining way
 Benefit people who are active and constantly play
sports to keep them top in their game

15. Identifying - Core Product

16. Identifying - Core Product
Reflex
Punching
and Kicking
 Increase reflex
 Test/measure: strength, speed, and reaction of your
punches and kicks
 LED lights blink to determine which box to punch
 Scoreboard

17. Identifying - Core Product
Stretching Wall
 A panel of light-activated
instructions show stretches
 Sensors capture motion
 Ensure correct form
 Sensors are able to track
progress and amount of
flexibility
 First set of cards comes
with the core product

18. Identifying - Core Product
Floor-Linings
 Corrects the form of push-ups – Chest connect to
sensor – beeping noise

19. Packaging
 Product is made of plastic Inflate/Deflate –
sensors are safely inserted already
 Set up: Plug and Inflate
 Packaging is the motorized air pump (2 in 1)
 Dimension: 0.5m x 0.25m x 0.25m

20. Identifying – Ancillary Product
 Different sets - different target markets
 Becomes more difficult with each work-out routine - own pace
 Beginner set included with core product, higher difficulties must
be purchased - ancillary

21. Identifying – Ancillary Product

22. Identifying – Ancillary Product

23. Budgeting
Budget Breakdown
1%
20%
Production
43% Advertisement
Savings
Warranty
36%
 Production including back-up plan ~$150,000
 Advertising ~$125,000
 Saving/Investment for future products ~$70,000
 Warranty: 1 year (expect 3% return) ~$5,000

24. Budgeting – Production
 Production Cost
(without incentives):
 Expect 1612 to be
produced in a year
($150,000/$93)

25. Budgeting - Advertisement
 Newspapers/Flyers – for decline
 Magazines - constant replay value
 Billboard - 1 full year – constantly reminding
 Radio and T.V. Ads – especially for first release
 Word-of-mouth and website

26. Promotion Plan
*MAKE OUR PRODUCT SPECIAL*
 Limited Addition – Silver – 200 Only
 Limited addition over, other colors of Diesel-
Flex, includes: blue, black, white, and green
 Advertisements – Funny Ads.
 Coupons if business starts to decline
 Release Date: In December – Near Christmas
(high demand)

27. Product Life Cycle

28. Product Life Cycle/Pricing Plan
Introduction
 Law of demand/supply is implemented,
demand is high and supply is low (during
festive holidays)
 Mostly focusing on advertisement and
informing consumers about the new
product (TV, Radio)
 Focus on limited edition promotion, raise
hype for consumers
 Prestige Pricing based on consumers
perception
 $449.99

29. Product Life Cycle/Pricing Plan
Growth
 Mainly backed with
ancillary products
 Price increase due to
high demand
 Strong ads help keep
customer loyalty
 Magazine ads to inform
consumers – ads will be
placed in sporting
magazines
 Start using billboard ads
 $499.99

30. Product Life Cycle/Pricing Plan
Mature
 Sales start to slow down
 Target Pricing are implemented – price
that target market will pay
 Coupon promotion is used to keep sales
healthy
 $359.99

31. Product Life Cycle/Pricing Plan
Decline:
 Sales are at a low
 Must get rid of inventory
 Lowest sale price
 Coupons on newspapers/flyers
 Bundle pricing with ancillary products
 $299.99

32. Future Endeavors, the VS. Diesel-
Flex
 An improvement on
the Diesel-Flex
 Focuses on a
competitive 1 on 1
workout
 Twice the size of the
regular Diesel-Flex

33. Potential Competitors
 Other Gyms
 Home-gym equipments (Bowflex)
 Innovative Health-lifestyle interactive systems
( Wii, Wii-fit)

34. Point of Difference
 Available with many ancillary products
 Fun, entertaining way of exercise
 New, never before done
 Improves oneself through fun activities
 Inflate and deflate whenever – very simple

35. Safety Hazards
 Do not disassemble delicate machinery
 Follow instructions properly
 Risk transference – warning label that
warns the user to use at own risk and
that the company in no way
responsible for any accidents
 Risk Avoidance – Only ones who are
able to use the product may do so
(ages 10+)

36. Channel of Distribution
 Stores such as Canadian Tire, Sportscheck
 A mixture of indirect and direct distribution will help
properly deliver our products right to the consumers
 Two main distribution channels used is directly to
the consumer and to retailers
 Direct – internet – rely a lot on the website
(cheaper, less transportation costs)
 Indirect – retailers – larger availability to consumers

37. Spokesperson
 The puppy Bulldog
known as Diesel
 He is cute and very
approachable towards
children
 An example of a dog
spokesperson; Taco-
Bell Chihuahua

38. Logo/Symbol
 An attractive logo helps attract
consumers
 A memorable picture such as
this one helps reminds
customers about the Diesel-
Flex
 The logo shows the product
alongside with the mascot

39. Slogan – “Break the lazy hex with
Diesel-Flex”
 Rhymes
 Easy to remember
 Catchy with a punch
 Original
 Relevant to product
 Grabs the consumers attention and persuades them to
purchase