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Situational Analysis
The Company:
Moikit: Location
Moikit is a Chinese based company, physical address 701-703, Building #A,
Bao'an Internet Innovation Industrial Park, 2005 Xingye Road, Xinxiang Sub-
district, Bao'an District, Shenzhen (Exit D, Pingzhou Station, Metro Luobao
Line) Postal Code: 518101 Tel: 0755-23289001 Email: [email protected] +86-
4006-585-580.
History of Moikit the Seed
This strategy constitutes a cumulative 12 years planning and creating. The
following are expansions into the cost to profit analysis realization, and
implementation of active phases with production, marketing, and supply
chain determinations for the customer of Moikit. A small design company
Moikit’s product, “The Seed”, is an outsourced manufactured product with
two stages of production. The Smart Cap 95% made in China and the metal
bottle bottom piece made in Japan.
1 | P a g e
Moikit is faced with strong competitors in the American market. Attempting
to reach with this particular product an untapped market. Larger existing
manufacturers produce similar technological features and inferior quality
bottles.
Moikit’s goal is to use the $582,623.00 raised from initial donations, to
produce products to distribute to Kickstarter and Indiegogo campaigns. Next,
Moikit plans to produce product, develop distribution and gain market share
in the USA with the remaining funds through production, marketing and
distribution.
The Seed Mission Statement:
“Moikit goals are to create the most affordable smart bottle to help people
stay hydrated and developing healthier lifestyles. Seed’s innovative Air-
Elastic technology monitors the user’s daily water consumption by
measuring the amount of air remaining in the water bottle. Using smart
algorithms based on an individual’s metabolism, Seed’s digital lid and
connected apps remind users when they need to drink more water. Seed also
measures water temperature, provides the user with hydration reminders,
and links with health and fitness apps all while retaining the form and
function of a classic water bottle. Seed can be connected with numerous
fitness apps, including Apple Health Kit, to allow users to keep track of their
hydration on their preferred platform.”
2 | P a g e
Who is Moikit?
Moikit is an internet supplier and web design company. This is based on the
end user agreement (item 1 Moikit User Agreement referred to as mecare
(Moikit)). Moikit is specializing in application development mecare agreement
2 2.1. Moikit has endeavored to create a smart water bottle called the Seed.
The Seed helps keep people accountable to their hydration needs. The Seed
Water Bottle helps keep track of their daily water intake. This is a great
product as it shows just how much water you are drinking during the day.
When losing weight, the best way to start is by drinking more water. By
drinking water, toxins/chemicals are released from your body. Drinking water
helps boost your metabolism, cleanses your body, and acts as an appetite
suppressant. It will help your body to stop retaining water which will result in
losing more weight. The recommended amount of water to drink is eight to
ten glasses of water per day, keeping your body hydrated and helping you
lose those unwanted pounds. (Bjarnadottir) From all of the researched work,
there really aren’t any environmental issues. The water bottle has a copper
inlay and nitrogen welding techniques that help the water bottle maintain its
shape/design with the stainless premium steel. (Prweb) Moikit’s goal is to sell
The Seed Smart Water Bottle in America. The following is analysis on the
product and how the product The Seed will be able to compete. (Louis
Zheng)
3 | P a g e
Marketing Analysis
Seed’s selling method is based online through their company website rather
than a brick and mortar. Customers’ can order the Seed through their
company website: Indiegogo for $65 USD + tax and shipping, ending up to
be around $70. Moikit partners with website companies that use crowd
funding such as Kickstarter and Indiegogo. Consumers can support the Seed
through crowd funding through Indiegogo or Kickstarter until February 9th,
2016. Some of the incentives to purchasing the Seed through the Kickstarter
were:
Introductory Savings of 39% off of the retail price
Ships worldwide, Restrictions apply.
Offer a variety of sizes and colors.
Two Seed Smart Water Bottles for the price of $99 (saving $30-$50)
Other products that Moikit sells are Cuptime 2. Cuptime 2 is very similar
to the seed. It can calculate your next drink time based off of your water
intake. This is based off of the data you have entered. It asks you to enter
personal information, including the amount you exercise and your
environment. If you have a water shortage it can vibrate to alert you and
help you get in the habit of drinking water.
With over 6,071 views of YouTube, Moikit has been successful with
Cuptime 2. Some of Moikit’s products and brand lines are software and 4 | P a g e
smartphone apps. When purchasing these products such as the Seed or
Cuptime 2, you need to have an app that will work with the software on your
smartphone device. The app is free and is compatible with smartphones such
as your android and I-Phones.
Moikit uses and indirect online approach to help market their product
through social media sites such as Facebook, YouTube, Indiegogo, Instagram
and Twitter. Moikit promotes through crowd funding websites such as
Kickstarter and Indiegogo. Through online promotion, Moikit will be able to
cut down on advertising costs and sales promotions. (Louis Zheng)Indirect
Competition **ADDED*
Social Media Presence
7 Followers on Google +
94,000 total views on You Tube (30,000 views from California Google
Analytics)
Indiegogo 333 subscribers
Kickstarter 1000+ subscribers (25% signed up from a California IP Address)
Instagram 15 posts 614 followers Moikit follows 59
5 | P a g e
Facebook 9571 people “Like” Moikit (Approximately 20% from California)
Twitter 1187 followers 54 tweets following 40, likes= 37
While initially the numbers looked low for social media. A comparison of
competitors found equal numbers of Views and Likes in similar time frames
for like products.
Industry Analysis
The product of The Seed, fits in the categories of fitness, health, and gyms in
the US. It’s all operated in exercising, physical fitness conditioning,
recreational sports, fitness instructors, and operators involved in facility
management. The supply chain overviews all the key drivers being
participated in sports, spent time of leisure, per capita disposable income,
adults from ages of 20-64, and a yield on a 10 year treasury note. The
demand industry is primarily fulfilled by consumers. Moving on to the supply
industry, it all consist of manufacturing of sporting goods, gyms, exercise
equipment, and involvement of contractors that work with heating/air-
conditioning systems.
The nearing future over a five year period to 2021, this industry has a
success outlook, benefited from consumer spending with the help of
discretionary income. The increased discretionary income allows gyms
facilities to attract more memberships, keeping personal/group trainers busy,
6 | P a g e
and fitness classes growing in popularity. The forecasted revenue is
expected to grow at a rate of 3% at $31.5 billion dollars, meaning more
consumers are buying out higher cost services. These services include health
services, trainers, and guidance towards nutrition. An expectation of profit
growth from 10.4% in 2016, is expected to reach up to 12.4% by 2021.
These increases are bound to be success from higher marginal services,
group training classes, and bolstering retention rates.
The industry life cycle is currently continuing to grow, which defines
consumers boosted interest for fitness and health. Public health awareness
is brought by fitness and health campaigns that keep consumers more
aware, and view gym memberships as a vital expense. Future growth is
more than likely to continue in participation of women and men, dealing with
sporting events within communities. Another key feature towards growth in
the industry’s revenue, which is continuing to grow quicker than the
economy, rapid changes in technology, and growing popularity of new
products and brands.
Competitive Analysis
The seed was created by Moikit. This campaign is a successful crowd funded
enterprise through the website, Indiegogo. Seed’s Indiegogo was launched
back in November, 12th 2015. This campaign was set to run for 30 days. The
Seed had hoped to raise $30,000 in order to fund mass production. This
funding campaign has raised over $582,455 USD. This amount is well past
7 | P a g e
their goal of $30,000 USD. There some several Smart Water Bottles on the
market today, making it a competition for the Seed. While creating this
product, Moikit designers were looking for a Smart water bottle that would
help consumers meet and maintain their hydration needs. (Louis Zheng)
Consumers are wanting a water bottle that is durable, reliable, and will live
up to their expectations. Seed started to ship to their customers in January of
2016. Moikit created the Seed so that it would meet and exceed consumers’
wants and needs. Some of the features of the Seed are, an LED touch screen,
a water intake reminder, premium stainless steel, 1-2 year battery life with
an Ultra-low power Bluetooth 4.0. It also is an air-elastic water consumption
tracking technology, a water consumption tracking feature, a stale water
warning, a temperature preservation and finally a copper inlay and nitrogen
welding techniques. The major competitor’s features and benefits that Seed
competes against are as follows: (Louis Zheng)
1. Thermos Smart Lid Water Bottle
Thermos is The Seeds leading competitor, as a global company founded in
1904, and have been selling everything from mugs, coolers, lunch products,
water bottles, food jars, and specialty items. Their main headquarters are
located in Schaumburg, IL. Thermos sells online as well as in sporting goods
stores global wide.
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Thermos’s products are sold in sporting goods stores. Last public record
before returning to private holds was 2009 during a buy-back of stock $259
million dollars in profitability. Even with the economic downturn of 2009
expected growth was 1 to 2% a year.
Thermos currently has a market share of 5.3%. (IBISWorld)
Thermos created a new product called Thermos Smart Lid. Thermos Smart
Lid was released on October 28th, 2015 and is designed with a smart
technology that will monitor your water intake and temperature. It
communicates through Bluetooth technology. This technology helps you
reach your daily hydration goals. Thermos is made from a BPA free, impact
resistant and durable Tritan polyester material. Some of the features for the
Thermos include connecting to your Smartphone apps, Smartphone watches,
Fitbits, helping you to stay on track with your goals and monitoring your
water temperature. The Thermos also has a micro USB socket that charges
up to a 12 hour battery life, and retailing at $60. (Product Specs)
2. BlueFit Smart Water Bottle
BlueFit was established in 2012 by Jonathan Cook and David Morton. Their
main headquarters are located in Burlingame, CA. They mainly sell their
product online. BlueFit crowd sourced on Indiegogo. They have raised
$74,843 USD of $150,000 USD. They are working on expanding their
company and they ship worldwide. BlueFit is a smart water bottle designed 9 | P a g e
to track your water consumption on a daily basis. It will automatically record
data on your smartphone as well as record your time and the amount of
water that you drink. If you aren’t drinking enough liquid, The BlueFit, like its
competitors include features that have software that is compatible with most
android and iPhone. BlueFit is made out of glass with a silicon sleeve that
protects it from impact. BlueFit was released on September 25th 2013 and
has technology that allows you to enter information about yourself through
the app such as your weight, height, age, temperature and humidity.
(Cook/Morton) BlueFit retails for $59. (BlueFit Bottle)
3. Flow Smart Water Bottle
Flow came out in November 2015. Flow is only sold online but uses social
media sites such as Pinterest, Facebook and their company website, Gadget
flow. Its main headquarters were not applicable. Flow is an advanced
personal hydration device that monitors your daily water intake and reminds
you if you need to drink more water. Flow is a filtered water bottle made out
of coconut shells and a glass insert that helps you stay in control of your
hydration and made out of 100% of recyclable material. Some of the features
for Flow include environmentally friendly, connects to your smartphone or
smartwatch, helps you stay on track with your goals. This app also allows
you to enter you age, weight, height, activity level and your environmental
situations. It retails for $70. (Timms)
4. HidrateMe Smart Water Bottle
10 | P a g e
HidrateMe was launched in 2014. The main headquarters are located in
Minneapolis MN. HidrateMe is sold primarily online using social media sites to
help promote their product. They use sites such as Facebook, Twitter,
Kickstarter and Instagram. HidrateMe is very similar to the Seed. It reminds
you to drink water throughout the day, glowing when it’s time to drink more
water. There is a companion app that helps you track the amount of water
that you drink so you can be sure that you’re getting enough. Some of the
features of this water bottle are dishwasher safe, has a replaceable battery
that will last up to one year, BPA free and leak proof. HidrateMe holds a max
of 24 ounces (710 ml) of water. Hydrate me is available in a variety of colors
such as Iceberg White, Bamboo Green, Ocean Teal, Crystal Pink and Obsidian
Black. It has far surpassed its goal of reaching almost $130,000. It retails for
$45. (Bell)
5. Sportline HydraCoach - Intelligent Water Bottle
HydraCoach was founded in 1999 by Craig and Kelly Perkins. Craig first had
an idea for this product when in 1996 he was climbing Mt. Whitney and fell ill
from dehydration at 13,000 feet. His wife Kelly, was also on a hike recently
after a heart operation, when she ran out of water four miles from the
nearest stream. Together, Craig and Kelly decided that they needed to
create a water bottle that would help them keep track of their hydration
intake and know just how much water they have left. HydraCoach is a
worldwide company that is sold exclusively online. They are a privately held
11 | P a g e
company based out of California. It is an interactive water bottle that
calculates a person’s hydration needs. This product motivates you to reach
and maintain your hydration goals throughout the day. This product like
other competing products utilizes a smartphone app. They use social media
sites and their company website: www.sportline.com, and Amazon to sell
their product. It is a product that has been on the market for a while.
Features of this smart water bottle include a personal hydration monitor, a
drink monitor, your overall average consumption, a time tracker and a sip
tracker. HydraCoach retails for $25. (Hydracoach)
With research our team found that Sportline-HydraCoach are an indirect
competitor, being lower end in technology, and quality. Our team have
analyzed by comparisons of other products on the market. Our more direct
competitors are Thermos (our major competitor), BlueFit, HidrateMe and
Flow. We will tend to see Sportline-HydraCoach in stores such as Target
because you aren’t going to get that sales representation.
Economic Analysis
Costs of living expenses are primarily fuel and food costs that are directly
attributed to the performance indicators of key economic drivers like
disposable income. The United States Unemployment is marginal holding at
under 5%. On average the national outlook is good for the US consumer to
continue spending trends. Consumer spending is expected to continue with
compound growth of 3.06% over the next five years. (IBISWorld)
12 | P a g e
This is a favorable condition as advancements in fitness app technology is
only ten years old. Smart Water bottles are a newcomer on the market at
four years. Business Insider reported stalled growth between 2010 and 2011
for these Tech toys. However, Fit Tech has recovered with 500% increases
annually in this market. (Analysis on SmartWatchs) Fit Tech sales were 3.3
million units last year, the market is very much in growth stage with a clearly
dominating company FitBit in the lead for wristbands. (Gustafson)
Political
The upcoming presidential elections for 2016 will be a factor for foreign
trade. Inflation may be an impact in the U.S. and China, while the U.S. is
estimated to have a slower consumer recovery due to replacement
technology utilization. All indicators show that after slower than expected
growth in the first qtr. Will still give way to stronger consumer dollar and
increased consumer spending (USA Today).
China has an open road towards sustainable growth and optimism into the
business areas from a rebalanced economy. The increase of high numbers in
growth from Asia, Latin America and Africa has been shifted by the growing
demand from China for iron ore, copper and oil. Most barriers to trade have
been lowered, education level of workforce have improved, and cellular
revolution has been almost signaled everywhere, and increased political
clearness. Most innovative and advanced economies are in need for a
13 | P a g e
stronger government. Far reaching socialist movement into structural
reforms that are favored in simple solutions. For a restored political trust,
there is a demand for legitimate wage increases, better welfare and in all,
more jobs. Governments like China are investing in a stronger middle class.
Legal/Regulatory Analysis
The U.S.-China Trade in Advanced Technology Products states, “The U.S.
Census Bureau, had a total of $154.6 billion. All of the ATP products
accounted for 33.1% of total U.S. imports from China, compared with 19.2%
in 2003. Some see the large and growing U.S. trade deficit in ATP with China
as a contender that signifies the growing international competitiveness of
China in high technology. Others dispute this, noting that a large share of the
ATP imports from China are in fact relatively low-end technology products
and parts, such as notebook computers, or are products that are assembled
in China using imported high technology parts that are largely developed the
globalization of supply chains makes it increasingly difficult to interpret
conventional U.S. trade statistics.” (Wayne)
The seed powered by Moikit, has a global user-patent for Air-Elastic water
monitoring technology. The purity of Seed comes from aero physics
technology, which measures the volume of air in the container.
(Moikit)The Seed’s smart lid technology is compatible with various bottle
shapes, functions and materials, including stainless steel, plastic, glass, etc.
14 | P a g e
Powered by Moikit, while any water bottle can be put to place as a smart
device. (Moikit)
With social media being a dominant setting, a tech driven shift is keeping
cost pressure under control. Many startup companies have been putting up
strong growth numbers for recent years, yet the macro-economic sector has
been on a weaker side. This could be due to growth from low levels. Each
year changes with more and more consumers do more shopping on online
services like banking; meaning broader implications may be more
pronounced having greater impact on consumer spending. Profit margins
and prices are being pushed from existing firms adapting to increased
competition. (6 Factors)
Moikit as a foreign importer into the United States is required to maintain a
localized site with-in the United States. Hire and employee, US national and
maintain an US address for warranty and return complaints. (Customs and
Boarder Protection)
Addressing the issue of return and supply chain management to be
compliant with CBP. Here is the recommend companies that specialize in
foreign import and return. Ozburn-Hessey Logistics Based. Genco ATC.
Phoenix International Specialty: Reverse Logistics, Freight Forwarding and
Customs Brokerage.
By identifying the level of supply chain and company positioning on Patterns
of Collaboration Table one (Frayret). This will move the product from its 15 | P a g e
current position of Outsourced, Local Decision Making through Improved
Local Decision Making in the United States and end with Decision Objective
Alignment as the goal level for this product to stabilize too after launch.
Having identified the current level of collaboration we can meet the needs of
the company. The marketing campaign should be aliened to compliment the
developing supply chain not tax it.
Technological Analysis
Smartphones and its technology has become increasingly common
throughout the past few years. It has become a staple in everyday lives of
the generation X and Y consumers. According to A Portrait of Smartphone
Ownership, 64% of Americans now own a smartphone which is up from 58%
in 2014. This 64% is about two thirds of adults in the U.S who now use
smartphones and is up even higher from 2011 when only 35% were using
smartphone technology.
Further research showed younger demographics with higher income levels
are the highest users of smartphones with the demographic of ages 18-29
making up for 85%. 78% are college graduates and 84% are living in a
household with an income of over $75,000 per year. (Smith)
Mobile devices have become the primary usage for social media users. 80%
of internet users own smartphones with an estimated 2 billion to own one by
16 | P a g e
the end of 2016. 7% of new emerging devices used to search the internet
are smart wristbands. Also with wearable technologies, 36% who own fitness
trackers in the U.S are 35 to 54 years old are mostly women.
With smartwatches, these owners are male between ages 18 to 34. With
these electronic devices and smart technology and income there is a
correlation between these two and their household incomes. 41% of the
fitness trackers have in income of over $100,000 and half of the smartwatch
owners made less than $45,000. (Gustafson)
Another demographic is the teenagers as they tend be online “almost
constantly”. The device of choice is a smartphone and the teens in the age
range of 13-17 say that they go online several times a day (56%). Almost all
of this age group has access to a smartphone, over two thirds to be exact.
Facebook is the primary source of social media that this market uses. While
Facebook is the most consumed social media platform this doesn’t mean
that this is the only one they use. 71% report that they use more than one
form of social media with Instagram and Snapchat being the next biggest.
Teens that come from higher income are higher users of Snapchat and
Instagram. While Facebook is still the biggest winner, status means
something. (Lenhart)
Older Generations also have a strong social media presence and can often
be forgotten in the tech world. Facebook leads age consumption by having
63% of users who are in the age range of 50-64 with pinterest accounting for
17 | P a g e
27% of their users in this age range. These are top two social media uses in
the age range of these people. Income is a factor with this group as they
tend to have more money and disposable income and by looking at the
income ranges, pinterest has the most users with the higest amount of
income.(Lenhart)
Technology as a whole is a fast moving market and can evlolve quickly, there
will be ever changing trends and also fast advancing technology. Keeping up
to date with advancements in technology is the trend and gaining market
share will be important. As internet and social media progress certain trends
will become more popular in the coming years. Real time engagement is an
area that social media users thrive on and the response time becomes
smaller and smaller each year. 70% of Twitter users expect responses from
brands. 53% of those users expect a response in less than one hour. This
may become even shorter, when dealing with an issue or complaint.
Integrating faster response times by using advantages such as, social
listening and automation tools, which will help a brand establish an online
social presence over competitors. Along with this is having a platform like
real time events offered by social apps likes Periscope and Meerkat which
allow live broadcasts to all users/followers. This allows an almost
transparent, behind the curtain feel of how companies actually operate and
has more than 2 million users. (Beese)
Shifting to online commerce-focused features social media will play a bigger
role in sales and customer engagement in the coming years. These sales 18 | P a g e
have hit the $3 billion mark, climbing even higher as social media is
influencing purchasing decisions more than retail websites. Among the
social media sites using this avenue are Pinterest using their “buyable pins”
which allow users to purchase the product within the pin. Twitter has also
used this with their “buy button” by having users be able to purchase
products through tweets. Both Facebook and YouTube have also used these
ideas too. Online comments and reviews are key as well with consumers
being influenced by these posts. A total of 88% in consumers are influenced
by these reviews and comments. (Beese)
Socio-Cultural Analysis
Some of the socio trends affecting the Seed include health and wellness.
These trends are on the rise. Consumers are heading into the gym
purchasing more memberships, purchasing more Fitbits or smart technology
and necessities such as a water bottles. The generations that are frequenting
the gyms and sporting goods stores are X, Y and millennials (Accouting
Web). Sporting goods stores have an annual growth of 1.1%. There is an
expected annual growth until 2020 of 0.6% (IBIS)
California presented the most opportunity consistently ranking in the top 25
fittest states as rated by The ACSM American Fitness Index and CDC.
California had multiple cities represented in the top ten positions ranking
19 | P a g e
highest overall since 2008. These rankings from ACSM were the source for
almost all of the articles written in The Huffington Post, The Washington Post,
USA Today and other highly cited publications.
The West Coast CA, OR, WA represents the 3 states found in the top 25 of
the ACSM with Portland Oregon being at the top of the list. While California
consistently placed more cities in the list than any other state.
Spread out over a population WA - Washington Total Population: 6,724,540
OR Oregon Total Population: 3,831,074 CA - California Total Population:
37,253,956 (GOV). Ages 20-24=2,765,949/ Ages 25-34=5,317,877 Ages 35-
49=7,872,529 this is a possible targetable market of 39% of California for
ages 20 through 49 (United States Gov).
Looking at these tangible target markets, Everest sees the multiple
generation’s opportunities such as:
Baby Boomers born between the years 1945-1964. Ages 50-71. This
generation of people are experiential, individualist, free spirited, self-
believers and look for self-fulfillment. Today’s baby boomers are healthier,
richer, and a preparing for a second phase of youth in their 50’s. As their
children move out their income can be focused elsewhere. They are also
increasingly a web savvy demographic.
Generation X was born between the years of 1965-1979. Ages 39-50. This
generation of people are rebellious, independent, have short attention spans,
20 | P a g e
are multi-career flexible and have higher disposable income.
Generation Y, also known as millennials were born between the years of
1980-1994. Ages 30-44, Y is prematurely affluent. This generation are more
style conscious, tech-savvy, independent, needy and socially-
environmentally aware.
Millennials as those born in 1982 and approximately the 20 years thereafter.
TBD kids born in the last 10 years lack a designation. (Bump)
The Net generation was born between the years of 1995-present. Ages 15-
This generation is very web and technologically savvy, brand conscious,
community minded and pro-equality. This market is possibly under
represented though this generation is a little on the younger side, that
introducing the Seed to them will help create brand awareness and help
market the Seed.
S.W.O.TStrengths (Internal)
Successful crowd funding through Indiegogo raised more than 2,000 times funding.
High quality product made from stainless steel.- No BPH
Moikit is a web service and design company.
Experience Utilizing Social Media with sites such as
Pinterest, Facebook, Instagram and YouTube.
Powered by Moikit, sensor has a user patent.
LED touchscreen Works with Fit Bits and Fit
Apps.
Weaknesses (Internal) Web design company
- Outsourcing manufacturing
21 | P a g e
Non-rechargeable battery- Custom made battery
Low representation Low interaction on social
media Supply Line/ Supply Chain
Undeveloped Low Capital
Opportunities (External) App and Fitbit compatibility Health and Wellness trending
in a growth stage
Generations X,Y,Z and Baby Boomers
Tech savvy wearables Low unemployment > 5% High Net Income (California)
- Men ages 18-34- Women ages 35-54
Threats (External) Election 2016 / 2017 Other smart water bottle
companies (Thermos, Hydrate me)
Low Price Homogenous Self- Serve Products (Personal Water Bottles)
Grab & Go Bottled Water (Pepsi, Coke, Nestle.
Based off of the SWOT , using across analysis and removing Strengths that
counter the negative threats and removing external factors that Moikit has
no ability to affect reveals a better understanding of how to reach the
identified target market. Initially the low interaction on social media was
deemed an internal weakness. While social Media responses seemed low, the
responses were over a three month period with little to almost no
advertisement. The Consumer Electronic Show was a driving factor in the
success promotion with little advertisement. CES represented The largest
22 | P a g e
consumer B2B convention in electronics with over 170,000 visitors and
purchasing agents. Moikit was an overwhelmingly favorite winning A Best Of
CES Award at the show. This added to the success of the social media
campaign on Kickstart and Indiegogo. It’s High quality, low maintenance sets
this product apart from competitors with similar tech. Moikit’s product is
substantially of higher quality and will justify the final price as a
differentiating factor in placement within the market.
Marketing plan
Marketing objectives
Ideally team Everest would like to sell roughly 6,000 units monthly at $62
per unit. Everest would also do a price matching discount offer of $5 to the
first 3600 units sold to help boost sales. Through Amazon, Moikit would sell
around 600 units monthly at the MSRP of $75 per unit. Everest would like to
have 240,000 ads over a period of six months that would be viewed on
Tuesday – Thursday’s and Saturday – Sunday’s, equaling out to be $2,400 on
YouTube.
Target Market
Moikit’s marketing position after weighing the differences of Internal
Weakness actually works in favor of the type of modern social media
supported marketing campaign based on the target market. The identified
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consumer markets are Tech savvy, Health Conscious people with expanding
incomes. Men ages 18-34 and women ages 24 – 54 with an emphasis on
women 34-54.
Website tracking tools and observational count (where the profile was from)
and IP address indicated a strong presence of California. Respectively
California has the highest Population of all states at 40 million people and
the most condensed number of athletic stores national chains and privately
owned. California has a total of 36% of that population between ages 18-54
at almost a 50/50 ratio of men and women. This creates a targetable base of
14,000,000 people. California has seen wages grow at a rate of 1.2%
annually. All of these challenges actually creates the opportunity. Moikit
strength is its web based nature. Marketing with that strength in mind will be
prominent and crucial.
It is with customer education of product that the Seed will need to have a
sales representation in order to sell our product effectively. In order to sell
the Seed (B2C) Moikit will need to have Seed in stores such as Scheels,
Gander Mountain, Cabela’s and in local smaller sporting good retail locations.
These stores will have a higher level of quality and personal sales services.
Sporting goods stores represent a possible target market. With
unemployment being low right now consumers will have more disposable
income. Sporting goods stores have a similar target market to the Seed.
(IBISWorld OD5599)
24 | P a g e
Now, team Everest is going to highlight some different market segments.
California has two strong market segmentations, both parallel to each other,
but differentiating the advertisement into 2 areas. They may be crucial to
aiding in the marketing campaign’s use of advertising dollars within Social
Media. California’s 40 million population is evenly divided by 22% under the
ages of 18 years, and 13% is 62 years or older. California represents a
population of potential customers of 25% target market a 10 million unit
share.
The tech savvy health concise California women ages 34-54 represent the
largest possible targetable market of 5,777,770. This market is represented
by the most employed of women being in San Diego, San Jose and
Sacramento. More than 80% have smartphones and Fitbit sales were
strongest at a staggering 14% of all sales around 2 million units over 5 years.
Nike posted strong sales with Nike Fit with the same group.
The tech-savvy, health concise California man age 18-34 represents the
largest possible secondary target market. A population targetable market of
4,622,221. This market is represented by being highly employed. Men’s
fitness representing the other half of the population. Similar outreach
reduces immediate advertising costs with both markets being from San
Diego, San Jose and Sacramento. California’s market is very fluid, travel is
common with this group. More than 80% have smartphones and Fitbit sales
were strong of all sales around 1.4 million units over 5 years. Fitbit posted
strong sales with the same group.25 | P a g e
Marketing Mix Strategies
Product
The Seed is a product of Moikit. It’s a hardware company that is committed
to building a healthier lifestyle in a smart way, by using state-of-the-art
materials, hardware, and software in every product. Some of the features the
Seed has are LED touch screen, a water intake reminder, premium stainless
steel, 1-2 year battery life with an Ultra-low power Bluetooth 4.0. It also is an
air-elastic water consumption tracking technology, a water consumption
tracking feature, a stale water warning, a temperature preservation and
finally a copper inlay and nitrogen welding techniques. Moikit is devoted to
helping its customers develop healthier habits for a brighter future. Moikit’s
design philosophy is to focus on the needs of everyday life in order to
promote a sustainable trend of healthy living with its customers. They craft
each product to meet practical problems with a modern solution.
Price
The Seed needs to be positioned as the highly valuable product that it is. The
higher costs incurred during construction unit contribution of $24.00,
demands a greater premium. The higher quality product image also supports
the value of the final MSRP of $77.00.
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Distribution
Distribution would be managed by the selected company of Moikit’s choice.
The recommended company that fits with all the needs is Phoenix. With the
cargo being secured at the dock in China. Phoenix would route the container
to a Los Angela’s Port. Handel the inbound United States Customs paper
work and transportation to warehouse and distribute via JIT to Amazon or
direct shipping to warehouse’s for large sales to national franchises. These
fees amount to 2.00 USD per shipped unit.
Phoenix also includes a return process included within this fee as a failsafe.
While initially the shipping expenses are higher due to the risk of return. At
the 2 year contract review Moikit can renegotiate the cost down as the
campaigns success becomes more defined or adjustments can be made
based on return needs.
Promotion
Based on the information and analysis Everest has done, the team was able
to come to the conclusion of using types of promotion consisting of B2C and
B2B along with social media marketing. Using this Data has allowed Everest
to come up with a concrete marketing plan that includes the implementation
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of the top 3 segmentation groups Everest is targeting. While the B2C will
consist of selling through Amazon and the B2B using gyms to sell directly to
potential customers this will all be done using product representatives known
as “Planters”. These Planters will be found and implemented using the
strong social media campaign.
Pull Strategy
Team Everest has decided to go the route of business to consumer (B2C) sell
the Seed online through the website Amazon. Some of the promotional
strategies that team Everest will be utilizing is social media sites such as
YouTube, Pinterest, Instagram and Facebook. Social media users are most
active on these sites on Tuesday-Thursday, Saturday and Sunday. The
reason is because people are visiting these sites to catch up on all the
activity from the weekend. People are out and about Friday-Sunday. Monday
is when people are active all day at work and getting back on a schedule for
the week. As a result, this is leaving Tuesday-Thursday and Saturday-Sunday
great days to catch up on all the activity. Also, Seed will look to use an
aggressive online social media campaign aimed at our specific target
markets of men and women. Using Sites such as Facebook, Instagram and
YouTube, Moikit will look gain a huge word of mouth from online endorsers.
During analysis Everest concluded that using the YouTube platform would be
best. YouTube is like a television channel in itself and is filled with health and
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fitness enthusiasts with various video content. These content providers
share the very same ideas and beliefs that coincide with the Seed. Along
with this comes a massive group of followers who listen to and consume
everything these YouTube Stars have to say. With the right people, Seed
can market their product to these stars who in turn will share their thoughts
and views on the seed. This makes for an endless line of marketing while
getting the word of mouth going on the Seed. While this is happening the
Seed will start being represented at multiple trade shows. One of the trade
shows that the seed will be represented at will be The Consumer Electronics
Show. With over 170,000 attendees over a seven day period, this will ensure
the seed will be well represented and seen. Other trade shows and
conventions Moikit will be represented at will be the L.A Marathon fitness
expo, Pasadena Fitness Expo, Mason Expo Fitness, Golden Valley Health
centers fit expo and Fit Expo. While being present at these shows, the goal
is to have content providers picked and ready to be at the Seed booth where
their followers and fans will have the chance to attend a meet and greet.
This will aid in attendance and also make is easier for newcomers who
haven’t witnessed what the Seed can do. While the content providers are
present, the advantage to have them sign on as a representative of Moikit to
become “Planters” will be taken. This will aid in spreading word about the
Seed.
What will be at the booth in order to attract attendees will be a giant
inflatable seed bottle with bright colors bringing attention to the booth.
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Along with this there will be two displays that light up when someone walks
past it, activated by motion sensor. These displays will have about 50 units
each on them and will cost around $3650.
Lastly Moikit will look to sponsor the L.A Galaxy which is the professional
soccer team in Los Angeles. This will make for a great way to reach the Net
Generation as these young kids have a liking for soccer and will be used as
an avenue to reach this target market.
Push Strategy
Another promotional strategy that team Everest will use is going business to
business (B2B) through gyms throughout the California area. Sales Agents
would go to a gym such as California Family Fitness. With over 69 locations
in the state of California, it would be a great place to start. In a fitness center
such as California Family Fitness, a great promotional strategy would be to
have a display board/ booth at each California Family Fitness location. At
each location, there would be a representative who would let gym members
have the experience of using the Seed during their workout. After their
workout, the member would be asked to fill out a short survey and tell us
what they think of the Seed. After completing the survey, they then would
receive a premium price of only $62 for the Seed if they purchase it right
then and there at the gym. It has to be a same day purchase in order for
them to get the discount. However they have to write a review on social
media sites such as Facebook, Pinterest, or Instagram. By sharing on these
30 | P a g e
social media sites that they have just tried the Seed at their gym, will
promote and boost the Seed even more. This creates brand awareness and
free marketing for the Seed. The display models would have anywhere from
25-50 units on their model, depending on how many members are at each
location. These content providers will be found through exercise and all
topics dealing with being fit or health conscious. While looking for the right
person to be a possible sales representative or “Planter” Everest will interact
with and identify these planters. There will be about 3 months spent looking
for potential content providers before there is a decision made on who to
contact. Moikit will then send them the Seed to try out. Subsequently they
will give insight on the product for all of their followers by blogging,
reviewing and sharing to all of their social media pages. This in turn will get
word of mouth out to all of their followers who will then begin to follow
Moikit’s social media page and start to build a presence.
Along with this, Moikit would look to try and gain higher amounts of sales on
the days that users are more inclined to visit their favorite social media sites
by offering some kind of daily special to pique their interest in buying the
Seed.
Below is a list of social media Vloggers and YouTube stars along with some
info on how many followers and subscribers they have.
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Fitness blender – 2.9+ subscribers over 400 million views. Based out of
Washington
https://www.youtube.com/user/FitnessBlender
BeFit – 2.1+ subscribers 290+million views, 368,000+ likes on Facebook.
Based out of California
https://www.youtube.com/user/BeFit
XHIT Daily – 2 million + subscribers, over 55,000 likes
https://www.youtube.com/user/XFitDaily
Blogilates – 2.9+ subscribers, over 700,000 likes, 1.3 million Instagram
followers. Based out of California
https://www.youtube.com/user/blogilates
ScottHermanFitness – 930,000+ subscribers, 420,000+ likes, 58,000
Instagram followers. Based Out of New York
https://www.youtube.com/user/ScottHermanFitness/about
Twobadbodies- over 350,000 + Instagram followers, 60,000 + followers
https://www.instagram.com/twobadbodies/
List of recommended consumer and trade shows and dates:
1. LA marathon fitness expo – March 19
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2. Pasadena Fitness expo – June 27
3. Mason Expo Fitness – Aug (TBA)
4. Golden Valley Health centers fit expo – March 28
5. Fit Expo in San Jose – May 21-22
6. CES Las Vegas, Nevada – January 5-8 2017
Short & Long Term Projections
Sales of 18,000 units every four months of distribution totaling 90,000 units
over a 2 year trial run in California. The original time investment of 3 to 6
months before units arrive via shipping allows for Moikit to use this custom
remote marketing plan. This keeps the Seed in its position as the Industry
leader in quality and pricing. By the end of the first 2 years Moikit will be
able to have adjusted unit production and be able to double sales and start
expanding into the other identified states.
The early estimated ROI is $83,180.00 per 3600 units the early goal. A goal
of 5000 units a month is the recommended target by the twelfth month. As
the supply chain will be receiving enough product to justify the increase.
Moikit should see a total of $2,000,000.00 USD return on all active sales by
the end of the first 30 month cycle.
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Market limitations are minimal as Moikit is only selling to .01% of potential
first segment identified target market. The second segmentation reduces
this even further to a .005% product to marketable customer.
Conclusion
Team Everest’s marketing strategies for Moikit are an ongoing adjustable
marketing campaign that is used to hone in the optimal target market. Using
the 8 step SMPC method (Social Media Planning Cycle) Moikit will.
1. Listen via social media, web forms, and blogs.
2. Use goal orientated personas to continue to adjust the message.
3. Implement the 8 C’s strategy and adjust.
4. Interact through the selected Social Medias and adjust as needed.
5. Implement Adjustments made to personas and message.
6. Monitoring with the use of people, and web based tools. Google
Analytics’, Facebook Marketing.
7. Tune the message start the process over.
While this process is slower then hiring a company to just distribute the
product. The time invested in the beginning will allow for growth of the
supply chain for consistency. The time also allows Moikit to find the right
Planters for representing the companies’ interest remotely in the US.
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I. Appendix
Table of Contents
Section
Moikit Seed info………………………………………………………………………………………………………………………………………..1Moikit Mecare agreement…………………………………………………………………………………………………………………….2Authority Nutrition…………………………………………………………………………………………………………………………………...3StreetInsider……………………………………………………………………………………………………………………………………………...4IBIS World OD5599 Gym & Fitness…………………………………………………………………………………………………5Thermos information………………………………………………………………………………………………………………………………6
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BluFit information…………………………………………………………………………………………………………………………………….7Flow information……………………………………………………………………………………………………………………………………….8Hidrateme information……………………………………………………………………………………………………………………………9HydraCoach information………………………………………………………………………………………………………………………10IBIS Market Report Plastic Bottle Manufacturing………………………………………………………………………………………………………………………………………….11IBIS Bottle Water Production…………………………………………………………………………………………………………….11.AIndustry at a Glance………………………………………………………………………………………………………………………………11.BIdentifying,Understanding Generations…………………………………………………………………………………………12United States Census Information……………………………………………………………………………………………………13California………………………………………………………………………………………………………………………………………………………13.ASan Diego with Personal Income……………………………………………………………………………………………………..13.BSacramento with personal Income…………………………………………………………………………………………………..13.C
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San Jose with Personal Income…………………………………………………………………………………………………………13.DOregon…………………………………………………………………………………………………………………………………………………………..13.EPortland………………………………………………………………………………………………………………………………………………………….13.FWashington………………………………………………………………………………………………………………………………………………….13.GSeattle…………………………………………………………………………………………………………………………………………………………...13.HSocial Media Demographics for Marketers…………………………………………………………………………………….14PewReasearch…………………………………………………………………………………………………………………………………………14.AGenerations by Philip Bump……………………………………………………………………………………………………………..15IBIS Consumer Spending……………………………………………………………………………………………………………………16IBIS Adult Consumer ages………………………………………………………………………………………………………………….16.AIBIS Per Capita Disposable Income……………………………………………………………………………………………...16.BBusiness Insider Fitness Trackers Sold………………………………………………………………………………………..17Analysis on Smartwatches vs VR…………………………………………………………………………………………………….17.ASmart Watch Or Fitness Tracker………………………………………………………………………………………………………18
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China Building Reef Island………………………………………………………………………………………………………………….19Cirrelt Supply Line Management……………………………………………………………………………………………………….20IBIS WORLD Supply Chain………………………………………………………………………………………………………………...20.A6 Factors……………………………………………………………………………………………………………………………………………………….21Customs and Boarder Commercial Importers Guide ……………………………………………………………..22IBIS Product Returns Supply Chain Industry……………………………………………………………………………….22.AIron and Metal Power Point………………………………………………………………………………………………………………….23Finance Charts…………………………………………………………………………………………………………………………………………..24
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