Contents1. Executive summary : uGym, fitness close to U!2. Market opportunity: Highlights 3. Value proposition 4. Competitive environment 5. Key Partners 6. Customer segments 7. Customer relationships & channels 8. Revenue streams 9. Cost structure

10. Group 7

uGym, fitness close to U! Value proposition:UGym: The only service, that allows you to carry out your personal fitness programme, wherever you are. For a fixed subscription fee, you can access connected gyms near you and have unlimited usage of online workouts. It will change the way you access the gym and give you total control on your time and movements in order to have your trainings where and whenever you want.

Business opportunity:Customers pay a subscription fee, of which 70% will be paid out to the uGym partners and from which 30% is kept as revenue for uGym, to (re)invest in marketing and go into profit.

Connecting gyms and gym teachers all over the world with people who want to attend (more) gym classes and do fitness exercises, but are blocked in some way to do so. Could be traveling, having a baby or being afraid of visiting a gym.

Customer benefit: one subscription, one app, one fee. With a big choice and variety, low barrier to try and use and transparent and predictable costs.

Partner benefit: extra marketing channel, reaches extra customers, low cannibalisation, pay as you grow-model.

uGym benefit: small team of online experts, big base of gyms and sports teachers, shared revenue model

uGym, fitness close to U!

enter zipcode choose an online gym or a gym near you

our offer

get a subscription

start exercise

ourroadmap

build platform & app for UK

launch beta version recruit 500 gyms

& 100 online trainers full launch

january february march april june

roll out

2014-2016

download class or visit online or real gym

may

Market Opportunity: HighlightsGyms are expensive

Classes don’t fit into schedules of people

Where’s the gym when you need one?

Gyms can feel intimidating

Fitness services

- Spike in Jan/ Feb as consumers are looking to kick start their fitness - soon drops off as consumer 'lose the time'

- Huge amount of competition - Gyms ; Group fitness ; Personal Trainers ; Classes

- Gym goers show more attendance for classes/ group fitness - the need for class exercises is increasing

Value proposition

WHAT?

● Website & App● Online & Offline

Content● Unique access to

fitness facilities nationally (eventually globally)

● Gym ratings and offers

HOW?

● Website and App (compatible with smartphones and tablets)

● Subscriptions and Ad Hoc access

● Downloadable classes and live content

● Gym ratings and partner offers

WHO?

● People with busy schedules

● People who aren’t comfortable entering the gym for the first time

● People who don’t live close to a gym

Competitive environmentWORKOUT

GUIDES

Nike Training Club, Jefit, Workout trainer,

Pilatesanytime.

ACTIVITY TRACKERS

Nike Plus, Endomondo, Runkeepers,

Runtastic.

FITNESSLOCATORS

Fitness center locatorAnytime

Fitness Finder

NUTRITIONHELPERS

Loose itFooducate

EXERCISEGAMIFICATIO

N

SLEEP AIDS

SleepbiotWhite Noise

Lite

Nexercise

Local language only, max 2 languagesCommunity support structureMonthly subscription, Free Apps, Free Trial

Fragmented offerings

Source: Digital trends, BEST ANDROID FITNESS APPS, By Drew Prindle

Global reach of mobile citizens

Brand synergy

New customers from live database

New marketing channel

StakeholdersPartners

Combined offline/online route to market

Offer current customer base a new offering, improve retention

Increase in revenue

Partners - Gyms/sports venue/personal trainers Stakeholders - advertisers, brands (sports, nutrition & associated products)

The ultimate global fitness experience, in your choice of language, especially selected and highly recommended on/offline services for the international mobile citizen.

Key partners, activities & resources

ACTIVITIES on offer

● Analytics: performance, trends, segmentation (behavioural, geographical, demographic etc.), predictive behaviour

● Joint marketing/events

RESOURCES available

● Support for partners e.g. personal trainers who need contacts for video production

● Sales team to develop partnerships

Top countries interested in Fitness searches 06-12 2013. Source: Google Trends

Image source: www.123rf.com

SegmentationGeographic factors (where are the customers)Region all regions, worldwide accessibleCities UK based first; then larger cities

(200K+ inhabitants)Language English first Demographics (who are the customers)Age focus: 18-70Gender allLife cycle all - bachelors, newly married, full nestsIncome all

Psychographics (why customers buy our product)

Generation BabyBoomers, Gen Y, Millenials (at a later stage: including younger and older generations)

Nationality allLifestyle sports and health-oriented, explorers,

adventurers, busy travellers, workers who are short in time

Sociographics

Cultural Influences → Religion: all religions welcome, where sports/ physical exercises are tolerated

Influence of Social Class → Basic options available to all social classes

Pers

onas

“I travel 60% of my time, therefore I need to be able to work out wherever I am and at my preferred time. Getting access to decent gyms would

also be a plus, especially since I don’t have the time to

do such research.“

Marc Sullivan40 years, single,

lawyer

I have heard about UGym, which makes me wanting to know more, as it would save me a lot of time. However, I’m not yet sure on how to use it.

“I need a flexible workout place that doesn’t require me to commit to a place and a

certain time.“

Sara Rodriguez39 years, 3 kids, married,

make-up artist

DIGITAL USAGE

UGymUSAGE

INTENTION

I’m a semi-professional user of computers, I love my tablet and iPhone and I consider myself as an intermediate internet user. I use my phone extensively while my laptop is used for e-mails.I use the web in my free time to research latest trends in hairstyles, fashion, as well as health and fitness related topics.

DIGITAL USAGE

UGymUSAGE

INTENTION

I have heard about UGym through my friends. As I’m travelling a lot, I’m curious to try it out. It seems perfect for me, as I can exercise whenever and wherever I want. It will help me to stay motivated and exercise regularly. The app also helps me to locate gyms while I’m away from home.

I do not belong to the early adopters. I rather wait and see how things develop and then make my buying decision. I have an iPhone, as well as a Blackberry and a laptop. I’m a casual user of the Apple products and intensive Blackberry user for work purposes.

Pers

onas

“I am very excited to try this app

out, as it will help me staying fit, explore new classes and stay up to date of what the latest trends are. I am sure that in my region other people are going to join as well, especially since it has this

great translation option, allowing to follow classes from another part

of the world”

Olga Afonina, engaged,35 years, Sales Manager

The thought of exercising within my four walls and choosing what I want to do, comforts me. Also the fact that I’m not tied to a strict schedule motivates me.

“I know that I need to exercise, however going to the gym is not an

option for me. Today’s fitness hype is not for me. My daughter showed me the iPad which had this great app,

allowing me to exercise whenever and whatever I feel like. I might try it out…”

Beth Philipps59 years, housewife

DIGITAL USAGE

UGymUSAGE

INTENTION

I’m not used to smartphones or tablets. I have a simple mobile phone, however having discovered the iPad through my daughter, it made me excited to try it out. Will I manage it? It seems so strange to navigate with your fingers.

DIGITAL USAGE

UGymUSAGE

INTENTION

I found UGym through a friend. I’m happy that I can follow high quality Pilates classes regularly, as well as to try out latest trends within the fitness sector. I’m quite frustrated because I don’t find a decent place here to work out Pilates. Therefore I would be highly motivated to try UGym in my native language.

I’m used to my Android phone, as well as my tablet. I’m a frequent technology user and therefore consider myself as an early majority adopter.

Acquisition Channels:

•Google Store-app store

•Affiliate marketing

•Partnerships ( Sports Brands – Supplements & Other

Aps, Other fitness aps, Gym’s, Hotels, Spas,

weightwatchers)

•Online advertising

•Social media

•Organic and paid search marketing

•Direct Sales to B2B (companies, Hotels, Gyms etc…)

•Public Relations

•Content marketing

•Events and Conferences

•Referral Programs

•Subscription Channels

•Weekly Deals, seasonal deals

•Offering unrivalled content

•Supplement & Equipment discounts

•Email/Push Notifications to lapsed customers with

special ‘returner’ offers

•Customers feedback

•Request for comment and rating

•Include new streams on the market.

•Forums

•Referral programs

CRM:

REVENUE STREAMS

Core Sources of Revenue❏ Subscriptions – This is the

main source of revenue for the business

❏ Personal trainers – Revenue from the value added services such as personal training sessions from fitness experts.

Affiliate Marketing Activities❏ Web shop commission – designated area for

selling fitness accessories and books ❏ Cross selling – In addition to the web shop, the

fitness accessories can be promoted throughout the website alongside the fitness videos. For example: Yoga mat next to the Yoga video.

❏ Ads on the website – Third party advertising on the website. For example banner and or text ads

❏ E-newsletters – Selling space on the e-newsletters to promote third party products/services or sending branded partner e-newsletters

❏ Subscriptions from partner stores – Offering commission to stores for referring our services to their client base.

Referrals and Customer Retention❏ Referrals – Building

customer base by offering attractive plans to friends/family of existing clients

❏ Customer Retention programmes – Offering special rates to loyal customers

COST STRUCTURE 12 Months 6 Months 3 Months

Website Personal Builder (www.godaddy.com) $12 $6 $3

Website Domain Name Ugym.co (www.domain.com) $0 $0 $0

Website Economy Linux Hosting with cPanel (www.godaddy.com) $23.88 $23.88 $20.97

Website Standard Search Engine Visibility (www.godaddy.com) $35.88 $11.94 $5.97

Website Maintenance incl. SEO, Traffic Stats, Unlimited Design & Interface changes for 149,00/month (www.website-maintenance.com/pricing/)

$1,799.88 $894 $447

Budget for Online Marketing (www.google.co.uk/AdWords) $24,000 $12,000 $6,000

Application for IOS & Android + Maintenance $7,000 $7,000 $7,000

1 Operation + 1 Marketing + 1 Administrator (could be one of us) $0 $0 $0

Design the Platform (Website & App) $6,000 $6,000 $6,000

Merchant Account for processing online credit and debit card transactions ($32,5 / Month)(http://www.worldpay.com/onlinetrading/index.php?page=accept&sub=ima)

$390 $195 $97.5

Contingency $2,000 $2,000 $2,000

CDN (https://www.cloudflare.com/plans) $240 $120 $60

TOTAL $41,502 $28,251 $21,634

BREAKEVEN ANALYSIS

Sample BASIC PREMIUM VIP

30% revenue share $3 $7.5 $15

No of users 9,682 1,107 277

Mix by user 87% 10% 3%

Mix by revenue share 70% 20% 10%

PREMIUM PLAN

25$ / MONTH

BASIC PLAN

10$ / MONTH

VIPPLAN

50$ / MONTH