Table of Contents
Executive Summary
Smart-Pulse Background
Business Model Environment
Industry Forces
Key Trends
Market Forces
Macro-Economic Forces
Empathy Map – Customer’s jobs Pains and Gains
Empathy Map – Customer (Rhonda – Gym Owner)
Empathy Map – Customer (Brad – Personal Trainer)
Empathy Map – End-User (George – 55 year old)
Empathy map – End-User (Vince – Tri-athlete)
Segmentation
KANO Model
Threshold
Performance
Excitement
Market Offerings – Product Introduction
Product Model
Product Description
Value Proposition
SWOT Analysis
Competitor Analysis
Positioning and Branding
Pricing Structure
Cost Structure
Revenue Stream
Key Activities, Resources and Partners
Strategic Objectives
Strategic Initiatives
Communication Strategy
Promotional Strategy
Distribution Strategy
Appendix
Executive Summary
Smart-Pulse Background
The fitness industry has substantially evolved from the 1980s model of Gym as places for
fit people to pump iron and work out, to a most holistic concept of fitness that embraces
expanded services offering targeting new sub-population. As a health of Australians
becomes more complex – particularly as the incidence of physical inactive lifestyle which
triggered obesity related health issues. In 2011, total of 3.31 million Australians used
services of fitness professional (Deloitte Jan – 2012) either in Gym or as a personal or
group trainer.
The heart works harder during work out sessions and it will create a pattern of the
heartbeat which can be recorded or monitored using heartbeat monitors. This pattern or
number of heartbeat will not add any value or not depicts anything till it is being analysed
based on individual physical condition. As mentioned above availability of low number of
fitness professional created the situations where the individual going to the Gym or paying
for the personal or group training does not achieve value for money as well it is equally
hard to provide customer specific advice for the fitness providers.
SMART-PULSE is unique software which analyse the individual training data and enable
the fitness professional to provide tailored advice based on individual needs and goals.
This plan outlines the recommended approach to successfully introduce and sustainably
grow SMART-PULSE within its market segment.
Business Model Environment
Industry Forces
Analysing the industry forces of the business model environment, it appears clear that
while there are several supplier of the “basic” heart-rate meter, Smart-Pulse is unique in its
approach, functions and features, and therefore there are no direct competitors. While all
the existing products also read the heart rate, Smart-Pulse is the only product targeting the
fitness specialists, with the goal to integrate the information from the heart rate with a
useful and usable analysis.
This analysis is the differentiation elements between Smart-Pulse and all other players in
the industry. Smart-Pulse is essentially a different product: it is a further step forward from
what is now available on the market. Appendix 1 described detailed industry forces
analysis.
Key Trends
Societal & Cultural Trends
Australia has become one of the highest obese nations in the world with currently 14
million Australians obese/overweight according to Monash University. By 2025, 80%
of all Australian adults will be in this category.
Media channels portray overweight as unhealthy through TV reality shows “The biggest
loser” encouraging weight loss and healthy diets, with health professional facilitating
weight loss programs. Participation rates in fitness activities are on the increase. Second to
walking and outdoor recreation Fitness centres are the preferred venue for exercising and
health monitoring (ABS 2011-2012). Government funded programs are targeting fitness
centre’s and organisations to create programs focusing on providing the community with
the tools to be healthy, through exercise and diet. The ultimate goal is to improve the
nation’s health. (Fitness Australia)
Technology Trends
Electronic self-monitoring devices either placed on the body or wrist can monitor heart
rate, calorie loss at a low cost and available on the internet. Smart-phones allow instant
communication to the web for health, distance and exercise programs. Gymnasiums utilize
the latest equipment with electronics providing real time monitoring and training
programs. Internet and web sites allow the instant communication of health related
programs, diets and clubs, providing the end customer with alternatives.
Socioeconomic Trends
Fitness is key preventative measure for health issues, with media and government
educating the community about the benefits of using fitness centres or gymnasiums to
help them achieve their goal.
Fitness Industry is expecting a growth of 4.8% over the next 4 years, (IBISWORLD 2013).
Although, the constant challenge for Fitness centres is to retain members with current
retention rate of 30 to 50% p/a. Fitness centres are located typically within 15 minutes of
where the end-user works or lives and the number of facilities is proportional to the
populated areas. Physical activity is higher in Australian cities compared to country, 66%
vs. 63%
Market Forces
Current crucial issues affecting small gymnasium owners is the high volume of mass
market gyms offering low cost membership, high volume classes and limited personal
service. This pushes gym-users towards unsupervised, unstructured training sessions
resulting in increased injury, lack of desired results and an overall negative experience.
Appendix 2 describes detailed market forces analysis.
Macro-Economic Forces
As Australian economy is in very stable condition compared to the counterpart of the
competing countries, consumer confidence is increasing as well as consumer spending is
also steady and increasing. Looking at the community exposure to the health and
wellbeing of self, Australia is a diverse society and people are concerned about health and
fitness. Spending for fitness is increasing and this will create a positive economic
environment for the Smart-Pulse detailed in this report (Fitness Australia report of
Economic Involvement of Fitness Industry). Infrastructure wise, all the metropolitans
across Australia has well established fitness centres as well as personal trainer network
which will further enhance the market scope for the product. Below table details the core
elements around the Macro Environment forces. Appendix 3 describes macro-economic
environment in detail.
Empathy Map – Customer’s jobs Pains
and Gains
AP writes the generic blurb about the Empathy Map.
Segmentation
With over 4million people attending gymnasiums within Australia and 90% of these
visiting at least once to twice a week it is interesting to note that there is a 56% failure rate
for new start-up businesses in the health and education industry within the first 4 years.
Current statistics show that members who visit the gym 3 times per week within the first
month have a 79% chance of re-joining. With 44% of gym users’ agreeing that staff
guidance is a major influence on achieving their goals and increased satisfaction with the
Gym and its services.
Smart-Pulse aims to provide the trainers within the gym environment more opportunity to
give users satisfaction through personalized service and analytical guidance on current
performance and training tips on how to improve results. By increasing the opportunity for
touch points with clients the aim is to provide a better training experience for both the user
and the trainer, not only resulting in increased retention rates of gym users through desired
results and increased satisfaction but to improve staff retention rates by building stronger
relationships with clients allowing them to user their skills as trainers on a more regular
basis and increased opportunities to provide one to one personal training to increase their
remuneration.
KANO Model
The Kano model is used to represent what are the product functions which can be
classified as Threshold, Performance and Excitement. Due to the fact that Smart Beat is a
new product with new functionalities and capabilities there are not specific customer
expectation to be met. Customers will probably refer to the traditional heart bit rate meters
and have expectations based on the. Therefore we believe that the Smart Beat will be
perceived as a product that meet the threshold requirements, perform very well and is filled
with exciting features. Let’s analyse each category.
Threshold
The basic required function for heart bit rates meter is to measure the rate of the heart in
intervals of few seconds and to display it on a small screen. The smart beat does it well by
using product existing in the market. The smart beat can connect with all the sensors and
visualisers with Wi-Fi connectivity; however the customer may not have enough sensors
and visualisers and therefore request to supply those devices with the smart beat. In that
case it is important that the devices supplied with the Smart Beat are of very good quality,
in line with the high standards of the Smart Beat brand.
Performance
The performance is measured in accuracy of the heart beat rate and the frequency of the
refresh in the display. One of the maid values added by the Smart Beat to this industry is
the analysis on the data inputted by the hearth bit rate. This function will be, at the
beginning perceived by the customer as an excitement type of function, but it will soon
become the feature to measure the quality and the performance of the product: more
analysis means more features, more quality and higher customer satisfaction. Therefore it
will be extremely important to continue developing the software and to be able to add,
regularly, new exiting analysis to the Smart Beat.
Excitement
At the beginning, all the functionalities added to the simple display of the heart beat rates
will be perceived by the customer as unexpected and therefore resulting in high customer
satisfaction. Soon however, these functionalities will lower to a level of performance and
threshold. For this reasons the Smart Beat should regularly be updated with new exiting
