BONUS: Interview 1

Krista Kokot followed me for a couple years before registering for my online program. Krista even spent a weekend with me and we talked business the entire time. This interview was very eye opening in that she was wondering what I was like in real life versus the persona she saw online.

Krista is also a personal trainer so this interview really doubles as a client AND an expert interview.

https://soundcloud.com/skfitlife/stop-chasing-skinny-episode-32?in=skfitlife/sets/stop-chasing-skinny-podcast

Final Reflection

1) Look through your blog for this semester. Recall various experiences with exercises you've had a long the way. 

Done! Great exercises!!!

2) What are the three most important things that you learned in this class?

I learned to interview my clients more often... I learned that while feedback is great, many people look at my business through a different lens... I learned how to access professional journals which is helpful.

3) Which exercise(s) you found the most useful?

Interviewing my clients times 10. 

4) Which exercise(s) you found the least useful?

The industry exercises. I understand how they are important, but my goal is to create something the current industry is looking for, not something it already has. 

5) What is the one recommendation you would make to the students who are going to take this course in the future?

Start your business and then do the business plan;-). If I would have written a full business plan before launching my business, I never would have launched. 

Good luck with your idea!

Thanks!!

OPERATIONS: Bottlenecks

1) Where are you likely to have bottlenecks in your service delivery or manufacturing process and how will these be anticipated and addressed?

The registration process has had bottlenecks, but I have since put some systems in place to automate, hired a virtual assistant to assist, and changed the registration window from every 12 weeks to at any time. This way I don't have a flood of 100 people trying to get registered at one time. 

This change in schedule also keeps the questions and coaching duties more consistent rather than getting 20-30 questions per day every 12 weeks. It is more like 2-5 questions each day... much more manageable.

2) Describe the lead/lag times that characterize the fundamental operating cycle in your business?

My business is seasonal based on the school year and the holidays. There are 3 times when the number of client registrations increase. New Year, Spring, and Back to School.

3) Explain how any seasonal production loads will be handled without severe dislocation (e.g., by building inventory, using part-time help in peak periods)?

During these 3 busier times, I ask for more hours from my virtual assistant and rely on the automated systems I have put in place.

4) What quality consistency issues exist and how will consistency of quality be ensured? What controls exist, for instance, to ensure every burger is cooked exactly the same?

Coaching... Now that I have been in business for 4.5 years and have changed the registration calendar and started an automated weekly email system including videos, I am able to offer consistent coaching and interaction. 

OPERATIONS: Workflow diagram

This is a day in the life of actually producing your product or creating and delivering your service -- walk us through the mechanics of doing so. Important stages that you want to address include: 1) order entry, 2) order processing and fulfillment, 3) production, 4) order delivery, 5) customer billing/payment, 6) after-sales service, 7) product usage, 8) returns and claims. Your workflow diagram may look like this.

MARKET: Rewrite

First, write what you decided to adjust and why (provide at least three points). Please consider the feedback that you received from your fellow students, results of your recent research efforts, or your general thinking about your business idea.

Second, provide the revised versions of your MARKET group exercises. 

I am not adjusting anything. I appreciate the feedback but it wasn't anything I hadn't heard or considered before other than incorporating a couple more incentives for people to complete their training. 

Most feedback was superficial and fear-based like, the market is really big, and how is your program going to "make" me workout? Those issues don't concern me. I realize competition is fierce, but clients are buying into me, my philosophies, and the fact that I actually know what I am doing compared to so many "fitness professionals" who are supposedly my competition. I am not trying to come off as arrogant, but in this industry of so many wanna-be's with such a low bar to entry, I stand out from the rest. I know my stuff and other people know I know it. Sure, they can go to someone who is slinging supplements and cheerleading them into doing some workout videos, but the people who have tried those programs and need/want more end up coming to me. Obscurity is my challenge, but even that is improving. 

For the people who need someone to "make" them workout... I don't want to coach those people. They need to go and sign up for a class somewhere. I want clients just like I have where they are looking for a solid plan to follow, coach to ask questions of, and the flexibility to do it on their own schedule. I will incorporate more incentives and games to make fitness fun, but unless someone is paying $80-$100 per hour to work them out, the $57/month price point is a pretty sweet deal.

MARKETING: Selling Cycle Description

In this exercise, I would like you 1) to adjust your selling cycle diagram based on the interviews that you conducted and 2) describe your marketing tactics and tools on every stage of your selling cycle. Be creative. Be specific. Here is the list of issues to consider and address:

• Describe the media approaches the company will use to bring its product or service to the attention of prospective purchasers. How will you inform your target market about the availability of your product/service and continue to communicate the benefits you are offering to that market

I plan to continue to use the same media approaches I have been using. The change is that I am now more consistent in producing blog posts, social media posts, videos, and podcast interviews (both being the interviewee and the interviewer). 

• If direct mail, magazine, newspaper, or other media, telemarketing, or catalog sales are to be used, indicate the specific channels or vehicles, costs (per 1,000), and expected response rates and yield (as percentage) from the various media, and so on, used. Discuss how these will be built up.

I do not plan to use any of these methods for marketing.

• For original equipment manufacturers and for manufacturers of industrial products, indicate the plans for trade show participation, trade magazine advertisements, direct mailings, the preparation of product sheets and promotional literature, and use of advertising agencies.

I do not offer equipment or industrial products, but I do have a scalable business and have recently scheduled meetings to discuss a virtual corporate wellness program for a globally located biotech start-up and by a naturopathic medical office for my training downloads for their patients. 

• For consumer products, indicate what kind of advertising and promotional campaign is planned to introduce the product. Specify types of media to be employed and what kinds of sales aids will be provided to dealers, what trade shows, and so forth, are required.

I am a contestant on the new NBC Spartan Ultimate Team Challenge set to air June 13th and have contacted additional media for event coverage to include but not limited to local news papers, local magazines, nationally based fitness publications, and local NBC affiliate. 

• What methods will you use to get free publicity for your business? How might you 'create news' about your business?

Please see above. 

• Describe the channel of distribution though which you plan to sell.

Online... 

Most important: make it clear how every marketing tactics or tool that you use matches the buyer behavior process of your target customers. 

From the interviews, I learned that some clients purchase because they know me personally - this means I need to get out from behind my computer more and meet more people.

Some people found me through a google search - this means I need to focus on being more consistent in writing blog posts, using key words, and trying to get myself on other people's lists. 

Some clients found me through the publications I have been on/in - work to get in/on more publications. 

MARKETING: Reflection

What exercises were hard or easy for you? Why?

Recording my marketing strategy was the easiest because it is what I do day in and day out.
Did you learn anything that you didn't know before? 

I didn't learn anything new but it was helpful to map it all out. 

Do you like your final result or you think it can be improved. What would you improve when you have time?

I think the final result is good. Throwing more ad dollars out would be wonderful if it worked for me, but up to this point, my organic, information-focused sales has produced at least 90% of my total sales and hasn't cost me any money, just time/energy/creativity.

MARKETING: Budget

I would like you to think about all the steps that you listed in your selling cycle. In your post, present approximate costs of promotion and advertising (direct mail, telemarketing, banner, ads, catalogs, etc.) Determine the total marketing budget required and list all the costs in the table.

In terms of my advertising, I have met with a couple people to talk about Google Ad Words and while both of them actually sell Google Ad Words, they both suggested it would be a very expensive way to advertise and actually advised against it. 

I have done some advertising on Facebook and that has worked out ok, but I am not willing to spend more than $200 per month on Facebook ads. 

Direct mail, telemarketing, banners, and catalogs are not options either. These do not serve my business or market very well.

I currently have an ad in our local fitness publication, Oblique Magazine, but this is paid for through trade and has only been moderately successful in getting people on my email list and subscribed to my podcast. I still haven't converted any of these local readers to clients.

Sweat equity is my best marketing option. 

INDUSTRY: Reflection

What was the most surprising insight about your industry that you didn't know before?
While I knew it was super competitive, I had never done the research into just how competitive it is. I'm glad I am just now doing that research or I never would have started down this path. The numbers just look way too bleak.
Were industry exercises easy or hard for you? How so and Why?

VERY easy... since this industry is so competitive and lucrative, there are tons of numbers to research. 

Do you like your final result or you think it can be improved. If yes, what would you improve when you have time?

I think it is great. I have managed to do well in my industry because I don't look too closely at what everyone else is doing. I focus on what I am doing well, what seems to be working for my business and my clients, and keep taking action in that forward direction. Analysis paralysis was my issue with 2 other business ideas I had prior to launching SKFitLife. Action beats analysis for me. Plus with having such low overhead, I have more room to experiment. I don't have a payroll to meet or rent to pay or utilities to keep on to keep my doors open.

1) Outline the operations process for your business. Identify the inputs, operations (key steps or stages) and outputs (present a flow diagram). This is a day in the life of actually producing your product or creating and delivering your service -- walk us through the mechanics of doing so. 

Below, you will see my inputs come from the 10-Day Jump Start Opt-In, a 10 day video series automatically sent out via email with an option to purchase at the end of the 10 days. 

The SKFitLife App, Social Media Posts, and the Podcast are the other ways we reach potential clients and use our information-based sales. Of these inputs, the required operations are social media post creation/interaction and podcast creation/promotion. Everything else is automated. 

From the time someone enters into the email list/subscription pipeline, the questions are managed by myself and my virtual assistant. The registration process for the 12 Week E-Course and the Monthly Membership is managed by my virtual assistant, the one-on-one, personalized coaching is managed by me, and the downloads and supplements are all automated or handled by the parent company.

2) Where are you likely to have bottlenecks in your service delivery or manufacturing process and how will these be anticipated and addressed. 

My bottlenecks have occurred in the registration process. This was when I first launched, didn't have anything automated, and had 100+ people registering at the same time. I have since incorporated automation and hired a virtual assistant to help me as well as made the option to join at any time available versus once every 3 months. 

3) Describe the lead/lag times that characterize the fundamental operating cycle in your business.

Since I work in the virtual world, most items can happen in real time. I have struggled with relying on someone else for podcast editing so a few months ago I bought my own equipment, taught myself how to produce a show and solved that problem. My biggest hurdle is that I apparently I am a control freak in my business and no one can do it as good as I can... I realize this will always limit me but it is also what keeps me sane and happy in my business. 

4) Explain how any seasonal production loads will be handled without severe dislocation (e.g., by building inventory, using part-time help in peak periods).

As I mentioned, I have a virtual assistant. She is super flexible in the amount of time she can dedicate to me. I also have systems in place where I can hire additional help if/when needed. One day I will find someone to produce my show in a timely fashion so production will be the first to go.

5) What quality consistency issues exist and how will consistency of quality be ensured? What controls exist, for instance, to ensure every burger is cooked exactly the same?

The coaching piece of my business is the quality control issue... until I come up with a better solution, I am limiting my number of clients to 100 at any given time and looking towards growing my bottom line with sponsorship revenue from the podcasts.

https://soundcloud.com/skfitlife/stop-chasing-skinny-episode-30?in=skfitlife/sets/stop-chasing-skinny-podcast

MARKETING: Customer interview 7

1) Provide (embed) the video or audio recording of your interview with the customer. As an alternative, you can provide the transcript of your interview but it will take you a lot of time. Thus, I would strongly recommend to go with the video or audio recording. Posts without evidence of the conducted interview won't be accepted. 

https://soundcloud.com/skfitlife/stop-chasing-skinny-episode-31?in=skfitlife/sets/stop-chasing-skinny-podcast

2) Describe the most interesting and useful insights about your customers that you learned through this interview. 

I was surprised to learn how many people this particular client has referred to me.

3) Describe if there is anything you learned about interviewing process. How did you feel during the interview? Was it easy or not? Do you feel like you need to adjust any of your questions or your overall approach?

The interviews are my favorite part of these assignments.

MARKETING: Customer Interview 6

1) Provide (embed) the video or audio recording of your interview with the customer. As an alternative, you can provide the transcript of your interview but it will take you a lot of time. Thus, I would strongly recommend to go with the video or audio recording. Posts without evidence of the conducted interview won't be accepted. 

https://soundcloud.com/skfitlife/27-stop-chasing-skinny-podcast?in=skfitlife/sets/stop-chasing-skinny-podcast

2) Describe the most interesting and useful insights about your customers that you learned through this interview. 

I didn't realize just how much my clients got out of the group interactions until this interview. These women are forming relationships that are helping them with their LIFE which was my goal from the beginning.

3) Describe if there is anything you learned about interviewing process. How did you feel during the interview? Was it easy or not? Do you feel like you need to adjust any of your questions or your overall approach?

This was particularly easy because this client is also my aunt. Sometimes this means your family supports you no matter what (and won't give much constructive feedback), and other times they want you to succeed so much they are happy to give all kinds of feedback.

ECONOMICS: Reflection

1. What exercises were hard or easy for you? Why?

Creating lists of costs was easy because I am already in business and have a very solid understanding of my numbers. 

1. Did you learn anything that you didn't know before? 

Yes, I learned more about my breakeven point. To be honest, when I first launched my business my personal goal was to be able to replace my salary after all business expenses were paid. These exercises are very helpful in getting the overall picture of finances together so I can actually grow my business versus just sustain. 

1. Do you like your final result or you think it can be improved. What would you improve when you have time?

I am happy with my final result. I can always go back and add in new features I want to add to my business as it grows and changes. 

ECONOMICS: Breakeven calculation

Contribution Margin = Price per unit - Variable costs per unit

$57 - $8.30 = $48.66

Total fixed costs / Contribution Margin = Break even (quantity in units)

$7,124/$48.66 = 146/month

I HAVE SEVERAL REVENUE DRIVERS...

1) Calculate contribution margins for each of your revenue drivers. This is how your table with calculation may look like:

	Revenue driver 1	Revenue driver 2	Revenue driver 3	Revenue driver 4
Price	$57.00	$227.00	$197.00	$27.00
Variable costs per unit	$8.30	$12.50	$4.00	$4.00
Contribution Margin = Price - Variable Costs per unit	$48.70	$214.50	$193.00	$21.00

	Revenue driver 1	Revenue driver 2	Revenue driver 3	Revenue driver 4
Price	$57.00	$227.00	$197.00	$27.00
Variable costs per unit	$8.30	$12.50	$4.00	$4.00
Contribution Margin = Price - Variable Costs per unit	$48.70	$214.50	$193.00	$21.00
Share in the expected sales (%)	30%	50%	10%	10%

	Revenue driver 1	Revenue driver 2	Revenue driver 3	Revenue driver 4
Price	$57.00	$227.00	$197.00	$27.00
Variable costs per unit	$8.30	$12.50	$4.00	$4.00
Contribution Margin = Price - Variable Costs per unit	$48.70	$214.50	$193.00	$21.00
Share in the expected sales (%)	30%	50%	10%	10%
Weighted Average Contribution Margin (WACM)	$14.61	$107.25	$19.30	$2.10

	Revenue driver 1	Revenue driver 2	Revenue driver 3	Revenue driver 4
Price	$57.00	$227.00	$197.00	$27.00
Variable costs per unit	$8.30	$12.50	$4.00	$4.00
Contribution Margin = Price - Variable Costs per unit	$48.70	$214.50	$193.00	$21.00
Share in the expected sales (%)	30%	50%	10%	10%
Weighted Average Contribution Margin (WACM)	$14.61	$107.25	$19.30	$2.10
Fixed costs	$85,488
Weighted Average Break Even (WABE)	$85,488 / ($14.61+$107.25+$19.30+$2.10) = 597 bundles
Share in the expected sales (%)	30%	50%	10%	10%
Units per year to break even	179 units	299 units	59.7 units	59.7 units

ECONOMICS: Costs groups

All of my business expenses are ongoing. Website design is the only expense that does not occur monthly since I have a new site designed every 2 years. My start-up/one-time costs could include some of the branding and design work I've needed, but even that changes on a very frequent basis.

Fixed Cost Requirements

(f)Instapage: $30

(f)Box.com: $50

(f)Website Hosting: $12

(f)Domain: $2

(f)Robolike: $8

(f)Como App: $27

(f)Salaries: $5,000/month (me)

(f)Marketing: $1,500

(f)Insurance: $17

(g)Sound Engineer: $80 per episode at 2 episodes per week = $160/week

Determining a Unit of Analysis

Variable Cost Requirements

(v)AWeber: $30/mo. up to 2,500

(v)Blubrry: $20 (will increase to $40 when show frequency is increased to 3 shows per week)

(v)Labor: $500/month (currently for my virtual assistant… will change once 12 Week E-Course Program enrollees is greater than 30 per month.)

(v)Merchant Services: 2.5%

(v)Income Tax: 12% Self Employment Tax + State and Federal

Travel/Entertainment: $10,000 per year

Website Designer: New site every 2 years: $2,400

Graphic Designer: $50/hour rates as needed

ECONOMICS: List of Costs

I have been in business for over 4 years so I came up with my list from a combination of what I currently use as well as what I plan to use in the future. My sources for information were mainly from the business podcasts I listen to and blogs I read.

Instapage

Box.com

Website Hosting

Domain

Robolike

Como App

Salaries

Marketing

Insurance

AWeber

Blubrry

Labor

Merchant Services

Income Tax

Travel/Entertainment

Sound Engineer

Website Designer

Graphic Designer

COMPANY: Rewrite

Problem description: We've all heard the warnings about how we need to get moving more, but how do we increase our current statistics of less than 5% of adults participating in 30 minutes of physical activity each day, or only one in three adults receiving the recommended amount of physical activity each week? Physical activity used to be a natural part of surviving, but we've engineered ourselves into a corner where we must now make the time to be physically active, as well as locate a convenient enough space to get that physical activity accomplished. According to the Department of Health and Human Services, only about one in five homes have parks within a half-mile, and about the same number have a fitness or recreation center within that distance. Many people, especially busy professionals and mothers, struggle to find a program that works for their logistical challenges of time and location, as well as their need for affordable workout design and coaching. 

Solution description: The SKFitLife virtual fitness training programs offer a solution to the issues of time, location, programming considerations, cost, and flexibility. The SKFitLife 12 Week Online Fitness Challenge provides monthly workouts (video links included), weekly cardio routines, a 30 day meal guide with recipes, and virtual coaching. The workouts are designed to use minimal equipment and can be performed anywhere from the living room to a hotel room to a backyard, and of course in a traditional gym. The workouts can be broken up just in case you are trying to squeeze them in between napping kiddos. Busy professionals, you can close your office door and get your workout in during lunch (or while on a conference call... no one has to know). The workouts, along with the accompanying weekly course information, are also designed to make you look as fit as you are. No more chalking up stubborn bodyfat to age or genetics. The virtual small group coaching aspect creates a community atmosphere where the SKFitLife accountability and support is the real differentiator. SKFitLife makes money by charging for the 12 Week Program upfront and then members continue on as monthly clients for a monthly fee. 

___________________________________________________________________________

First, write what you decided to adjust and why (provide at least three points). Please consider the feedback that you received from your fellow students, results of your recent research efforts, or your general thinking about your business idea:

1. SKFitLife isn't your typical online training program. People don't need more information, they need more action. 
2. The SKFitLife training programs include the regular 3 day per week option as well as the advanced 4-day per week option at no additional charge. 
3. SKFitLife training programs use progressive weight training that is specifically designed with the aesthetic perspective in mind. My main competition doesn't have the same fitness competition coaching experience and design programs for general health. While the SKFitLife clients will definitely achieve general health, they will also LOOK as fit as they are as well as be able to perform well in their recreational sports and military physical fitness tests. 

Second, provide the revised versions of your COMPANY group exercises:

REWRITE: Solution description: The SKFitLife virtual fitness training programs offer a solution to the issues of time, location, programming considerations, cost, and flexibility. The SKFitLife 12 Week Online Fitness Challenge provides monthly workouts (video links included), weekly cardio routines, a 30 day meal guide with recipes, and virtual coaching. The workouts are designed to use minimal equipment and can be performed anywhere from the living room to a hotel room to a backyard, and of course in a traditional gym. The workouts can be broken up just in case you are trying to squeeze them in between napping kiddos. Busy professionals, you can close your office door and get your workout in during lunch (or while on a conference call... no one has to know). The workouts, along with the accompanying weekly course information, are also designed to make you look as fit as you are. No more chalking up stubborn bodyfat to age or genetics. The virtual small group coaching aspect creates a community atmosphere where the SKFitLife accountability and support is the real differentiator. SKFitLife makes money by charging for the 12 Week Program upfront and then members continue on as monthly clients for a monthly fee. 

SKFitLife isn't your typical online training program. People don't need more information, they need more action. The SKFitLife training programs include the regular 3 day per week option as well as the advanced 4-day per week option at no additional charge. SKFitLife training programs use progressive weight training that is specifically designed with the aesthetic perspective in mind. My main competition doesn't have the same fitness competition coaching experience and design programs for general health. While the SKFitLife clients will definitely achieve general health, they will also LOOK as fit as they are as well as be able to perform well in their recreational sports and military physical fitness tests.

MARKET: Reflection

1. What exercises were hard or easy for you? Why?

• The hardest ones were assessing the competition. I prefer to look to other industries for ideas and then adapt them to fitness. I feel like so much of the fitness industry is "me too". I also don't agree with the philosophies of some of my competitors where the marketing appeals to people's fears and fantasies. The promises of quick results for very little work screws us up in our expectations, leading so many people to quit within the first few weeks of a new training program. Too many people feel like they must be on the wrong program if they haven't made a full transformation in a month. Looking at this information is emotionally challenging for me.  

1. What are the most interesting things that your learned about your customers?

• How much they are like me. This surprised me and didn't because I know like attracts like. Just surprising when you talk to them and hear yourself talking back:). I was also surprised about just how many people found me through an organic google search and then how many people my website converted to clients.

1. What are the most interesting things that you learned about your competitors?

• How sleazy and half-honest their marketing tactics are. 

1. Do you like your final result or you think it can be improved. What would you improve when you have time?

• Love it. The interviews were AWESOME and I am going to start implementing their suggestions, creating more phone calls with my virtual clients, and getting all of these clients on my podcast schedule because they are incredible testimonials. 

MARKET: Four levels of Product/Service

I selected the businesses I compared originally. LHF is probably the the closest comparison to my business. As I mentioned before, we are friends and share some of the same philosophies, but there are several differences in our businesses. This exercise was interesting because I typically try to not follow LHF too closely since we are friends and I don't want to end up copying anything she is doing. Not because we are friends, but because I think there are plenty of ideas out there that can be applied to fitness without copying my competitors. That's what gives me an edge too. If everyone else is doing it the same, I want to offer something unique. 

I feel like Beachbody is a temporary competitor. If you look at the history of all MLMs, they all rise and fall in cycles. Who knows, there will probably be a new competitor in this category once everyone gets burned out by Beachbody. I am already having several people coming to/returning to me telling me how sick of Beachbody they are. Based on my experience in training and transformations, I can tell the Beachbody workouts are good for beginners, but more advanced clients will see diminishing returns from Beachbody as their bodies adapt. 

NJF's branding is "at-home workouts" but she uses almost exclusively body-weight training and many of my clients want to lift weights. One of my client interviews said she compared me to NJF, but then she looked at all the other DVDs and workout books she had on the shelf and decided she didn't want to add to the collection that wasn't prompting any action. 

MARKET: Competitors

• Identify direct and indirect (and potential) competitors. DO NOT INDICATE THAT THERE IS NO COMPETITION.  Make a realistic assessment of their strengths and weaknesses. Discuss the 3 or 4 key competitors and why customers buy from them, and determine why customers might leave them.
1. Lori Harder - www.loriharderfitness.com is a similar online training business offering digital downloads and online training groups. Lori and I are actually friends and have a very similar fitness competition background. Lori has been at this longer than I have and her branding is, as my client described as "more buttoned up" marketing which attracted her to Lori's 3 month program when she was searching for a program. The feedback I received from several of my clients said they chose me over a better-marketed competitor because I seemed more relatable and they didn't feel like they were just going to get some digital downloads and some fitpro's "team" to coach them. Some people have left Lori's program to try mine out because according to them, she doesn't really even interact with her clients in her online coaching groups so much. It is her "team" managing communications. I've also had my clients leave me and try her program since they are so similar and their marketing is much more persistent than mine. Lori's job description on her social profiles is "Self Love Expert". She also runs The Bliss Project which is along the same lines and the "spirit junkie" movement. This is highly popular with some people, but most people who are drawn to my non-nonsense training and military background are not as drawn to the follow your bliss philosophy. Our pricing is very similar for the 3 month programs we offer, but her program recommends purchasing over $300 in supplements to get started. I don't make these recommendations, only a guide to which protein powders/meal replacements I recommend and why. LHF has many more financial resources than I do for branding/marketing. While my resources and marketing budget are not as large, I still feel like I can compete based on offering clients something they aren't getting from the manufactured feeling of this larger operation. I don't have a large overhead expense and don't need to have tens of thousands of clients to consider myself successful. 
2. Beachbody - these are workouts that can be done at home which is highly attractive to my current and potential clients. Many of my clients come to me after trying or give Beachbody a try. Most have been highly disappointed by Beachbody because the "coaches" don't have any of the experience I have. They are more like cheerleaders than coaches or trainers and typically apply high pressure on clients to also buy into the Shakeology shakes. Obviously their marketing materials and DVDs are professionally produced while a lot of mine have been created by me. The power of MLM is strong... to the point where some people treat it like a religion. This means people who buy in usually buy in big, but the ones who are turned off by the rah, rah, are extremely opposed to whole operation. Beachbody has many more financial resources than I do for branding/marketing as well as a huge sales force. While my resources and marketing budget are not as large, I still feel like I can compete based on offering clients something they aren't getting from the manufactured feeling of this larger operation. I don't have a large overhead expense and don't need to have tens of thousands of clients to consider myself successful. 
3. Natalie Jill Fit - Natalie Jill Fit sells mostly digital downloads and DVDs. The quality of these products is high and she has a huge social media presence and excellent branding. Clients said they chose me over NJF due to the personal touch and coaching I provide. NJF also focuses on body weight training and my clients prefer the weight training I program for them. While my resources and marketing budget are not as large, I still feel like I can compete based on offering clients something they aren't getting from the manufactured feeling of this larger operation. I don't have a large overhead expense and don't need to have tens of thousands of clients to consider myself successful. 

MARKET: Customer Segments

1) Describe your segments. You need to come up with at least 3 segments. Be creative and insightful in describing the existing the existing segments. Note that potential customers need to be classified by relatively homogeneous groups having common identifiable characteristics (they must be homogeneous in terms of needs or buying behavior). 

Market Segmentation - 3 Groups:

1.) Busy moms looking for a fitness program they can fit into their busy schedules.

2.) Women in their 40's and 50's looking for a solid program that will both work for them and have a deeper meaning than some 25 year old bouncing around trying to perfect her already perfect bikini-bod.

3.) Men who just want their marching orders to take to the gym and get the job done. 

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2) Include a table summarizing the various segments. In this table list characteristics that define your target customers (demographics, psychographics, benefits sought, information sources utilized, product usage rates, etc.). Here you can see the examples of how such a table may look like. 

3) Indicate which segments (no more than two) you will be prioritizing. Which segments represent the greatest sales potential and why.

I will continue to focus on my moms and mid-life-aged women as my primary segments since they already represent the largest segment and have always represented the largest segment.