Transcript Fitness & Health Supply - Montana State University Billings

Nutra-Sports Mixing
Station and Supplements
James, Teresa, Brian, & Staci
Location:
• Between 24 Hour Fitness
and Time Out Sports in
West Park Plaza
Mission Statement:
To provide customers with economic,
high-quality athletic supplements with
ease and convenience of a protein
mixing station.
Objectives:
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Improve people’s health and fitness
awareness through nutrition and better
living
Disseminate factual, accurate information
to our customers
Obtain 35% of the 7,000 members at 24
Hour Fitness as well as other fitness
oriented people
3% of the 2,450 customers making
rountinized re-buys
2450 x 50%=1225 customers/30d=40
customers a day
40 customers a day @ $40=$1600
$40.00 per customer per visit (monthly)
number came from GNC. GNC also stated
that half of their clientele purchase
creatine/protein monthly
Charge $3.50 a protein shake. 74 customers
(3%) buy each day turns over $259.00
$259.00 x 30 = $7770 per month
Competitors:
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Bonanza Health Foods
All American Nutrition
GNC
Montana Harvest
Powerhouse Gym
Mary’s Health Foods
The Good Earth
Target Market
• Gym members including
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Business people
Runners
Bodybuilders
Fitness Enthusiasts
Athletes
• College, High School, Semi-Pro,
Amateurs
Age Range of market: 15-70
Female and Male
Business Men/Woman
– New-task buyers
Convenience
Needs:
, quick service,
(in and out) competitive prices, taste,
curiosity, sociability, achievement, esteem
Attitudes: Upbeat, seeking education on
different products.
Location: convenient for the main target
audience (24 Hour members)
Runners, Fitness Enthusiasts
– Straight re-buys on monthly
supplements
– Due to respective constant
goals.
Needs: Quick results, convenience,
happiness, self-satisfaction, personal
fulfillment, pride
Attitudes: Quality in product, willing to
try new products
Location: close to workout centers,
easily accessible, conveniently
located to Time Out Sports
(Rimrunners headquarters)
Athletes
– Modified due to periodization
Needs: variety of supplements, education
information for different products,
convenience, fame, prestige, selfsatisfaction
Attitudes: eager to see results, willingness to
experiment with new products to help
them gain the competitive edge
Location: Centrally located to all high
schools and colleges/gyms
Bodybuilders
– Modified re-buys on shakes @
protein station
– Straight re-buys on monthly
supplements
Needs: Several types of products,
competitively priced, convenience, status,
respect
Attitudes: Looking for new products to help
improve their weaknesses, driven, goaloriented
Location: Conveniently located to the largest
gym (4500 members) in Billings and
surrounding areas.
Building Expenses
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$3200/month rent
Utilities are shared throughout the mall.
Average is $200.00 for 320 square feet.
$64.00/year for insurance on a million dollar
policy (quote from Claredon)
Employee Wages
2 fulltime managers @ $9.00=$1440 per pay period
2 fulltime employees @ $7.00=$1120 per pay period
2 part-time employees @ $6.15=$492 per pay period
$1440+$1120+$492=$3052 per pay period employee wages
Total Fixed Expenses Per Month
$6,276.00
Products
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Creatine (CGP Metabolic Nutrition)
Protein Powder (Optimum)
Shakes (varies per customer)
Meal Replacements (Mass-Tech)
Thermogenic Aid (Hydroxycut w/caffeine)
Non-essential Amino Acids (Mass Amino Acids)
Product Expenses
• Protein (Optimum)
– 10lb $51.89ws $80.00 retail
– 5lb $26.36ws $45.00 retail
– 1lb $7.19ws $12.00 retail
• Creatine (Metabolic Nutrition)
– 1200 grams/240 servings $67.00ws $75.00 retail
– 800 grams/160 servings $48.00ws $62.00 retail
– 400 grams/80 servings $28.00ws $38.00 retail
• Hydroxycut
– 210 capsules 52 day supply $37.95ws $55.00 retail
• Meal Replacement
– 5lb tub 20 servings $37.45ws $50.00 retail
• Mass Amino Acids
– 125 servings $32.75ws $46.00 retail
Projected Revenues from Products
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Creatine: $13.85
Protein: $10.67
Hydroxycut: $17.50
Meal Replacement: $12.55
Mass Amino Acids: $13.25
40*$67.82= $2712.00 per day
2712*30= $81,384.00 monthly
81384*12= $976,608
Shake Expenses
• Creatine/GCP =$67.00/tub (240 servings)
1 serving per shake. .28 cents per
shake cost
• Protein= 1 10lb bag for $51.89 (160
servings) 1 serving per shake. .32
cents per shake
• Milk $2.63/gallon
• Chocolate Milk $3.50 11 twelve
ounce servings .31 cents per
serving
• .92 cents per shake
Shake Revenues
• .92 per shake @ $3.50
• $3.50-.92=$2.58*74 customers/day=190.92 per day
• $190.92*30 days=$5727.00 per month
• $5727.00*12 months=$56,781 per year
Perceptual map
Quick &
Convenient
NutraSports
Bonanza
Low
Price
High
Price
MT Harvest
The Good Earth
All
American
Nutrition
Powerhouse
Gym
Mary’s Health
Foods
Slow &
Out of
the Way
GNC
Promotion
• Direct Advertising
– Flyers on car windows in mall parking
lot
– Direct mailing to 24 Hour Fitness
members
– Mall Directory Stands
– Radio Advertising
– Newspaper Advertising
(Gazette/Outpost)
– Program advertising (e.g. Billings
Bulls/Mavericks)
• Publicity
– Sponsorship of different athletic
events
– Word of mouth, referrals
– Convenient
Promo cont.
• Sales Promotion
– Discount for referring
– Free Membership Club
– Buy 9 get 10th free at shake
station
– Coupons in newspaper
• Direct Selling
– Remind people of products
– Persuade people to try new
products
– Inform people of changes in
products
Means End Chain
• Product: NutraSport
• Attributes: Close to 24 Hour, centrally
located in Billings, convenient, lower
prices than GNC
• Consequences:
– Physical
• better health, better looks
– Psychological
• happy, better self-esteem
• Values: low prices, personal service,
convenience
References
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www.wholesalesupplements.com
www.gnc.com
www.metabolicnutrition.com
www.24hourfitness.com