Part of a second semester course of Establishing a business, worth 24credit points. Out of 8 business plans, ours was voted to have the 2nd best presentation and our plan received a 5- grading (scale of 0-5)

1. Unique Training
Business Plan
Muhammad Heza
Dvalishvili Shalva
Dominguez Del Villar Jose
Juhola Tytti
Jia Minshu
Sarivaara Aslak
Silvennoinen Elina
7.11.2008

2. Personal Training Summary
HAAGA-HELIA University of Applied Sciences
Business Plan Group 4
23.5.2009
Summary
The fitness industry is one of the fastest growing industries in the world, so we
feel like the potential for growth is definitely there with the right implementa-
tion of our plan. We are offering two main products that are similar but for dif-
ferent target groups, we feel like the Finnish market is untapped concerning our
industry, so we want to cover a fairly large number of people with our unique
and new online personal training combined with audio training which is totally
new in Finland, but we are still keeping the wealthy customers in mind by offer-
ing the traditional face-to-face personal training also to complement our prod-
uct mix.
The proper implementation of our promotional plan mentioned in the market-
ing mix will be important for our success and reaching our sales forecast men-
tioned in the financial chapter, however we feel that there is even more room
for profit in the following years after the first year.
Unique training thrives on being unique as the name implies, but also being pro-
fessional and satisfying the ever-growing need of our customers, with growth
plans in mind nationally and internationally.

3. Table of contents
1 Business Purpose and Aims ......................................................................................... 1
1.1 Introduction .......................................................................................................... 1
1.2 Mission Statement ................................................................................................ 1
1.3 Objectives .............................................................................................................. 1
1.4 Success Factors ..................................................................................................... 2
2 Description of the Business ......................................................................................... 3
2.1 Name ...................................................................................................................... 3
2.2 Skills........................................................................................................................ 3
2.3 Responsibility / Function ................................................................................... 3
2.4 Motivation ............................................................................................................. 4
2.5 Structure of business operations ........................................................................ 5
3 Market .............................................................................................................................. 6
3.1 Market of Operations .......................................................................................... 6
3.2 Business Environment......................................................................................... 6
3.2.1 Microenvironment – SWOT Analysis .................................................. 6
3.2.2 Macro Environment – PEST Analysis ................................................. 7
3.3 Market Trends....................................................................................................... 9
3.4 Market Size .......................................................................................................... 10
4 Customers ..................................................................................................................... 12
4.1 Market Segment .................................................................................................. 12
4.2 Target Segments ................................................................................................. 12
4.3 Market Positioning ............................................................................................. 14
4.4 Customer Buying Process ................................................................................. 14
5 Competitors .................................................................................................................. 15
5.1 Direct competitors: ............................................................................................ 15
5.2 Indirect competitors:.......................................................................................... 16
5.3 Methods of Analysis .......................................................................................... 16
5.4 Competitor Analysis Grip: ................................................................................ 17
5.5 Grip analysis: ....................................................................................................... 17
5.6 Competitive Strategies ....................................................................................... 17
6 Marketing Mix .............................................................................................................. 19
6.1 Product/Service .................................................................................................. 19
6.1.1 Face-to-face Personal Training............................................................ 19
6.1.2 Online Personal Training ..................................................................... 19

4. 6.2 Promotional plan ................................................................................................ 21
6.2.1 Fairs ......................................................................................................... 21
6.2.2 Magazines ............................................................................................... 22
6.2.3 Internet.................................................................................................... 23
6.3 Marketing Budget ............................................................................................... 25
6.3.1 Place ........................................................................................................ 25
6.3.2 Price ......................................................................................................... 26
6.3.3 Approach ................................................................................................ 26
6.3.4 Strategy.................................................................................................... 26
7 Operation Management .............................................................................................. 28
7.1 Supply chain management ................................................................................ 28
7.2 Divisions and responsibilities ........................................................................... 28
7.3 Training Facilities - Gyms ................................................................................. 29
7.4 Order Fulfillment Process................................................................................. 30
7.5 Face-to-face Personal Training......................................................................... 30
7.6 Online Personal Training .................................................................................. 31
7.6.1 Reverse Logistics in Online Personal Training ................................. 32
7.7 Trainers’ week program ..................................................................................... 32
8 Financial ........................................................................................................................ 35
8.1 Sales Budget for 2009 ........................................................................................ 35
8.2 Sales Volume Forecast for Online Personal Training................................... 36
8.3 Balance Sheet ...................................................................................................... 38
8.4 Income Statement .............................................................................................. 40
8.5 Break Even Point Analysis ................................................................................ 41

5. 1 Business Purpose and Aims
1.1 Introduction
Business idea is offering personal training services to customers with different needs and
health conditions. A personal trainer is a professional who educates people about physical
fitness. Personal trainers typically design exercise routines and teach physical exercises to their
clients. While some personal trainers work with only one client each session, others also teach
groups of clients.
Personal trainers typically work with clients to improve body composition (weight loss or
muscle gain). They may also be hired for more specific goals, such as an increase in strength,
muscular endurance, cardiovascular endurance, or flexibility. Some trainers are qualified to
improve sports performance, including speed and power. While not as common, some train-
ers may also be qualified to work with people who need help with physical dysfunction, in-
cluding the improvement of balance, range of motion, knee and shoulder issues, and those
released from physical therapy.
Personal trainers often also have a specific method of motivating clients. Common techniques
for motivation include demeanour (some trainers have an aggressive and commanding de-
meanour; others are more calm and supportive; incentives for reaching goals; and positive re-
framing or visualization.
1.2 Mission Statement
Unique Training is committed to offering everybody a way of exercising and staying healthy
on the individuals own terms, based on preference of exercise and time frame. Unique training
understands that most of people are always on the run, we want to create programs which are
fun, motivating and easy to get whenever you want it.
1.3 Objectives
The initial objectives for Unique Training are as follows:
To raise seed capital for start-up, which is approximately 60000 € to ensure the proper
execution of our plans for our first year of operations
To have 1000 online personal training subscribers by the end of year one through in-
ternet marketing
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6. To have at least 10 customers for each of our active face-to-face personal trainers by
year one
Acquire the awareness of potential customers of our company and attaining credibility
from our first 1000 customers.
1.4 Success Factors
The keys to success are:
Creating effective marketing means to reach our customer via internet advertisements
and promotions along with direct marketing
Controlling costs while spending the maximum on online personal training subscrip-
tion marketing in year one.
Carefully monitoring response rates of all marketing executions.
Keeping our website always updated and offering new products and services regularly
Educating our personal trainers to the latest training methods and equipments, to keep
up with the constant development
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7. 2 Description of the Business
2.1 Name
Our company’s name is Unique Training. The team has decided on that name because we all
believe that it gives the potential customers a clear idea of what our purpose as a company is.
Bring new innovating ways of training to a market full of possibilities.
2.2 Skills
As every new company Unique Training is going to have a lot of strong sides as well as weak
sides. On the strong side we have the experience of some of our members in a similar project,
and almost everyone involve in the company has had some kind of training experience. The
members of the team also have the advantage of being about in the same status than the de-
sire target market which gives us a clear concept of what people our age and with similar life
style is missing in the youth experience.
As every good side has its bad side, we are also lacking on some areas. Unique training, at the
moment has only one person with experience as a personal trainer, and is not certified yet. All
the other members that are going to be taking part as trainers have to start from point blank
and become trainers. So the whole personal training staff has to get certified, a process that
can be done in a weekend. Unique Training team has also thought about hiring certified per-
sonal trainers to also do the job as one trainer can only handle a limited amount of customers
at a time. The hiring staff process will be done as the company starts to grow and we feel like
the extra staff is going to be required. As a provider of personal work-out on the web we are
also going to need some kind of software that combines the description of the customer with
the correct set of exercises. We are in the process of solving all this details, and everything is
going as planned.
2.3 Responsibility / Function
Personal Trainers:
Muhammad Heza
Dominguez Del Villar
Sarivaara Aslak
And more upon request/demand
Web Maintenance
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8. Muhammad Heza
Dominguez Del Villar
Juhola Tytti
Sarivaara Aslak
Accounting
Juhola Tytti (basic double-entry)
Outsources accounting firm
Marketing and Promotion
Muhammad Heza
Dominguez Del Villar
Sarivaara Aslak
And more upon request/demand
2.4 Motivation
Unique Training has a simple rewarding method. Everybody in the company is going to get an
equal reward of a salary raise after certain amount of customers have joined a continued ser-
vice, in that way everyone is eager to work as hard as possible to get new customers and keep
them satisfy. With this rewarding technique we also help the team to help each other and not
try to look for individual goals and rewards. At the same time that it makes us work together is
going to make us aware of the work everyone in doing so that we make sure there are no free
riders. We make the company grow as a team, and we get rewarded as a team.
Another way of motivating the personnel is to creating group consensus and knowing that we
are not just providing a service, we are helping people achieve their goals as individuals
whether they are for health, social, or career purposes.
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9. 2.5 Structure of business operations
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10. 3 Market
3.1 Market of Operations
We are going to operate mainly in the Finnish market nationally, catering to the fitness needs
of individuals residing in Finland, however keeping the international market at our scope for
the future, since as we expand in Finland and if we have the desire for further growth, we
have to tap into other markets outside Finland, closest being other Nordic countries. Expan-
sion to other countries would happen in the way of online personal training, since the internet
allows greater flexibility without having to physically be in a specific market to do business
there.
Service division
Face-to-face personal training
- Concentrating mainly in the capital region (Helsinki, Espoo, Vantaa and other nearby cities)
Online personal training (including audio training)
- Ability to operate nationwide, because of the flexibility of the internet
3.2 Business Environment
3.2.1 Microenvironment – SWOT Analysis
SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves specify-
ing the objective of the business venture or project and identifying the internal and external
factors that are favorable and unfavorable to achieving that objective.
Strengths
Knowledge about successful and proven training methods
Competitive advantages - offering the customer results and guaranteeing them.
Innovative & unique - Online personal training (video and audio)
Competitive Price – because of limited overheads
Weaknesses
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11. Accreditation – our trainers are accredited through certification programs that are na-
tionally unknown.
Lack of reputation and credibility – because our company is new, it lacks the reputa-
tion and awareness.
Fragile image
Lack of expansion possibilities in the face-to-face personal training – due to lack of
adequate staffing.
Opportunities
Huge growth and potential in the fitness market – top 5 growing industries in the
world.
Technological developments can create new distribution mediums and the products.
Partnership with gyms, corporations and sports teams, etc.
Threats
Demand might decrease in face-to-face personal training in economic downturns be-
cause of service’s high cost.
Low barrier for entry into the market.
Possible IT software difficulties in our online personal training services.
3.2.2 Macro Environment – PEST Analysis
It is very important that an organization considers its environment before beginning the mar-
keting process. We have the micro and macro environment to consider, the micro environ-
ment can be classified in the SWOT analysis made previously. While the macro-environment
e.g. Political (and legal) forces, Economic forces, Socio-cultural forces, and Technological
forces, these we are going to cover in the following. These previously mentioned aspects make
what are known as PEST factors.
Political & Legal
The political & legal environment are fairly stable in Finland however some changes
might occur
o Requiring personal trainer’s to go through extensive training & education (not
demanded anywhere at the moment)
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12. Marketing regulation is fairly strict in Finland, which means companies can’t make
exaggerated marketing claims about their service or products
The fact that our company resides in the EU, so our online personal training service has
the benefit of dealing with other EU customers, without worrying about legislation or
taxation issues too much, since the EU is very integrated
Economic
Economic downturns and booms can affect our business positively or negatively, since
we offer a so called luxury service and as people have less income to spend, they are likely
to cut those luxury services/products first. Increased income will have a positive effect.
However since our online personal training is affordable, we feel that an economic
downturn could possibly improve that section of our business, while having a negative
effect on the more expensive face-to-face personal training
Sociocultural
Younger Finnish customers are willing to try new products/services which are good for
our new online personal training service with audio training.
Leisure time is important, because as people have less time to spend, we have to make
our programs modified to their schedule and be reachable when they need us by offering
flexible communication and distribution channels
People in Finland are very health conscious, which is proved by the fact that 72 % of the
population exercises at least 3 times a week
Technological
Technological advancement can create excellent opportunities and threats, since there is a
possibility of having new products to offer, however if the competitor gets them before
us and protect them. Then we are being put at competitive risk
Technology has made is possible for us to reach our customers worldwide through the
internet and the customer database can be easily constructed as the customers use our
online services, where we can store their consumer behavior, personal information etc.
The internet has allowed companies to reduce their marketing costs dramatically and it
will continue to do so in the future
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13. 3.3 Market Trends
Since we are going to operate in two mediums, the first being personal contact with the cus-
tomer which makes it national, mainly operating in the capital region. While our online per-
sonal training makes us international and the national borders don’t confine us.
We have to look at the overall fitness industry trends, to identify what are the most popular
trends in today’s society. But before indentifying the trends in 2008, we have to make the
distinction between a fad and a trend, since a trend is something that has remained for longer
and a fad is something new and hasn’t proved itself yet, although it might have great potential.
Our business is going to follow the trends in the market to the best of our ability, but also
trying to have some fads in our offering, since they become very successful sometimes and we
don’t want to miss out on the opportunity.
The following are the trends of 2008 according to The American College of Sports Medicine
(ACSM) in their worldwide survey for fitness trends:
1. Educated and experienced fitness professionals
2. Exercise programs for children to fight childhood and adolescent obesity
3. Personal training
4. Strength training
5. Core training
6. Special fitness programs for older adults
7. Pilates
8. Functional fitness
9. Swiss ball
10. Yoga
11. Exercise and weight loss
12. Spinning® (indoor cycling)
13. Sport-specific training
14. Balance training
15. Group personal training
16. Outcome measurements
17. Comprehensive health promotion programming at the worksite
18. Reaching new markets
19. Worker incentive programs
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14. 20. Wellness coaching
As can be seen from the trends, that having an educated fitness professional with some previ-
ous experience is of at most importance, so we have to always have the best certifications
available, while keeping the knowledge updated as to be informed with new training methods
etc.
We can see from the trends, that the top 5 trends are consisting of activities that are not very
unique, meaning majority look for training for their overall health improvement, with a con-
centration on strength training and core training (abdominals and lower back) with the help
of personal trainer’s and other fitness professionals expertise.
Health and Fitness is a $14.1 billion industry, serving nearly 40 million members in the
USA
According to IHRSA (the premier health club industry association) health club mem-
berships are projected to reach 50 million by 2010, representing a 25% growth rate
from current levels
Nutrition and Weight Loss is a $44 billion industry
National trends toward obesity and heart disease point to demand for healthy living
and exercise
Nationally, there is an increased awareness of exercise as an integral component to
health and fitness
Globally, there is a greater focus on health and fitness and a strong demand for a
branded fitness center with international standards of service
These numbers mentioned previously also relate to the European and Finnish markets, so the
growth rates are very good, which is one of the reasons that the Fitness industry as a whole is
one of the top 5 growing businesses in the world.
3.4 Market Size
Since the market of the fitness service industry is still fairly unknown and new in Finland and
the rest of Europe, it’s hard to have exact information about the market size. But we can make
a fairly reliable estimation of the market share given the information about:
Persons exercising in Finland
Exercise frequency
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15. Preferred exercise method
Competitive exercisers
National sports survey conducted in 2005-2006 by the Finnish sports exercise association
(Suomen kuntoliikuntaliitto ry), Young Finland (Nuori Suomi ry), Finnish Olympic commit-
tee, Helsinki city with co-operation with the education ministry of Finland, the actual research
was conducted by TNS Gallup Ltd. The survey shows that about 72 % of the entire Finnish
population exercise 3 or more times per week in some shape or form. The research has a 95%
confidence level and it had over 5500 respondents, so we can say with very good confidence
that the data is reliable.
However in order to adequately call for the estimation of market size appropriate to our busi-
ness, we had to look at which sports/activities were the Finnish population doing. Taking only
the following activities into account:
Gym training
Aerobics
Power lifting and bodybuilding
The overall market is estimated to consist of about 742 000 customers. There are also approx-
imately 200 000 potential customers, as they have expressed their willingness and desire to
start gym training.
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16. 4 Customers
4.1 Market Segment
There is no single way to segment a market and the major variables are geography, demogra-
phy, psychographic and behavioral variables.
Geography variables are mainly including nations, regions, states, counties, cities and so on.
Personal training program mainly focus on people who live in great capital area. Of course, we
have online personal training which can reach more potential customers. We still pay most
attention on urban area in Helsinki, Vantaa and Espoo.
Our company targets our customers between 18 – 50 years old mainly. As we are providing
two kinds of service: online personal training and face-to-face personal training program, we
can manage different kinds of people based on their situation. For instance, students can’t
afford the personal training because of the expensive price. They can get our innovative ser-
vice from internet and help them to take care of their health. On the other hand, some people
do love the traditional training process which asks for higher price. They have stable income
and willing to pay money to keep fit.
Psychographic segmentation divides the customers into different groups based on social class,
lifestyle, or personal characteristics. What we offering is the social health care service which is
personal training. Our service laid emphasis on health care. Those people who love sports and
willing to pay the health care service are our target customers. They would love to have pro-
fessional advice during the work out.
Many marketers believe that behavioral variables are the best starting point for building mar-
ket segments. Usually customers get some kind of certain image of the product or service at
the first sight. After they have tried the product, they will have reflection of how it works.
Our company will establish our own website. It will have some audio samples for our custom-
ers to try on our website. After they check it, they will get some thoughts about our service.
For example, how much motivated after they try the samples, do they feel it is useful. We can
see what our customers’ responses are from their feedbacks.
4.2 Target Segments
Obviously, we have to know how fitness market is going currently. What are our competitors
providing now and how much market share did they conquer already. Then we will select the
most suitable segments for our business. Once we decide which segments to use, it should be
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17. for long-term use. It affects our business a lot. Even if a segment has the right size and growth
is structurally attractive, the company must consider its own objectives and resources in rela-
tion to that segment.
Applying this theory to our case, we divide our target customers into two groups: senior citi-
zens, wealthy professional individuals and young adults.
Senior citizens, wealthy professional individuals (face-to-face personal training)
higher income
office workers
having free time
health concious
baby boomers
Young adults (online personal training)
lower income
students
less free time
foreigners (English version)
hectic lifestyle
So the segments we choose are income, location, attitude and time. The face-to-face personal
training package costs approximately 600 € for 2 months in Finland. As it asks for a lot of
money, so we are target the higher income people who can afford this service. Our company
will provide it in our partner gyms which locate near our potential customers. It is a good
choice for those people who have time to go to gyms and meet in their personal trainers.
What’s more, for the young adults we are providing the lower price training program via In-
ternet. Although we mainly target the Finnish people, we will also offer the English version
audios. There are more and more out comers in Helsinki area nowadays, such as business
people, international students and so on. We can target them with our English version training
program in order to enlarge our customer range. This unique service is also for those people
who don’t have much time in the gyms. They can download the audio training from our web-
site.
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18. 4.3 Market Positioning
We divided our customers into two groups. What senior citizens and wealthy professional
individuals pay more attention is the professional advice based on their own health situation.
They would love to have some qualified personal trainers who can improve their health
situations. However, from the young adults’ point of view, they appreciate the time-saving and
lower price training program. The unique online personal training program represents lower
price, time-saving and high quality to our customers.
We make the online personal training to be time-saving and affordable for young adults. Since
this is unique and promising service in Finland, we have good competitive advantages in this
fitness market. On another side, the face-to-face personal training is more about luxury,
professional and traditional training model service. In order to keep the customer, we will
make it exciting and have a good relationship with our customers. The services what we are
offering build up an image which concentrates on giving professional training advice based on
different situation people to satisfy their needs.
4.4 Customer Buying Process
The buying process starts when the buyer recognizes a problem or need. Applying to our spe-
cific case, the desire to keep fit is the recognition of problem. Customers who are really eager
to have this kind of service will seek the information from the Internet and related magazines.
Once they have found the some alternative choices, they will compare them and try to figure
out which one is more suitable for them. Finally they will make a decision to purchase the
product. Our online personal training service is highly differentiated in the fitness market.
Based on the current market circumstance, there aren’t many competitors in Finland. This is
our big competitive advantage to make people choosing our product. For our face-to-face
personal training, there are some competitors in Finland, but just slight difference in our
process. After purchasing the product, the consumer will get certain reflection of product or
service about the function quality and so on. It matters building up relationship with custom-
ers and customer loyalty. We will offer the pre-customized training program in order to satisfy
the customer needs.
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19. 5 Competitors
As was mentioned above, Finnish fitness industry market consists of approximate 750 000
customers. The demand on the fitness products increases within an increase of people’s health
awareness. As a demand on the fitness products is considerably high in this specific industry,
the competition among players is high. Fitness market with its industry structure belongs to
monopolistic competition, meaning that the entry to the market is comparably easy, with no
need of high investments (at least in our business case), special licenses or permissions. The
products or services offered by market players are differentiated, making it easy for new busi-
nesses to enter the market with no major difficulties, and providing chances to create competi-
tive advantage by presenting the innovative products or services.
When deepening into the competitor analyzes, we’re going to discuss our direct and indirect
competitors – the enterprises posing the threats to our future market share.
As we have two different products – face-to-face personal training and online/audio personal
training, we accordingly target two different market segments. Within our fist product we tar-
get the senior citizens, with stable income, emphasized to improving their physical capabilities
and health. The online/audio personal training targets younger class of citizens, students for
instance - the individuals with low income level and lack of free time.
For our product - face-to-face personal training, the direct competitors are the organizations
or personal trainers offering the same services of personal training (Kuntokompassi, Unique
Fitness, Elite Trainers), but in case of online/audio personal training there are no direct com-
petitors in the market (we should beware of threat of substitutes).
5.1 Direct competitors:
Organizations Personal Trainers
Kuntokompassi Katarina Tunturi
Unique Fitness Paula Kujala
Elite Trainers Hanna Hirvonen
SATS
MTV3 - Keventäjät
Move Wellness
Motivus
Happy Training
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20. SPARRA
Fitness & Body Consulting
For some of our competitors, personal training is more an additional service from the product
range that they offer rather than a core product, offering personal training programs as an
additional service in their GYMs. But organizations like Kuntokompassi, Unique Fitness, and
Elite Trainers are basically concentrated on making unique training programs for individual
customers or groups, and providing personal trainers guiding and motivating the customers
through the stages of those programs. These organizations are our biggest direct competitors.
5.2 Indirect competitors:
When thinking about the possible indirect competitors, we would mention the organizations
in sport and health care industries. Personal Training as product mainly belongs to the lux-
urious product group and even a slice economical downfall could result in customers’ change
to the substitutes. But our goal is to build a strong brand value and good image, to make our
customers less price sensitive.
5.3 Methods of Analysis
For depth analyze of competitors we list the main key success factors in fitness industry and
try to evaluate each our and our competitors’ strengths and weaknesses by a methodical analy-
sis. The evaluation process is conducted by creating a competitor analysis grip. We find com-
petitor analysis grip to be a valuable tool to compare competitors from a number of perspec-
tives - company information, product/service information, customer information, and sources
of competitive advantage.
The actual process of scaling:
Each company (our main direct competitors) is given a score on each success factor
The scale ranges from 1 (very poor) to 5 (very good)
The results will be used for identifying possible competitive strategies
In “Importance to Customer” box we apply our vision of which success factors are
the most important ones from customer point of view (scaling from 1 (most impor-
tant) to 10 (least important)).
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21. 5.4 Competitor Analysis Grip:
MTV3 Importance to
Success Factors Our Kunto Unique
Keventäjä Customer
in Fitness Industry Company Kompassi Fitness
t
face to face Online
Product Quality 4 4 5 3 1 1
Innovation 5 2 3 3 3 3
Visibility 3 3 3 4 4 5
Company Image 1 4 5 5 2 2
Financial Strength 1 5 5 5 7 10
Well-qualified Workforce 3 5 5 3 5 8
Advertising 3 3 3 5 8 7
Multilingual Availability 4 1 1 1 10 9
Distribution 4 3 3 3 6 6
Price 4 2 2 4 9 4
TOTAL SCORE 32 32 35 36 - -
The evaluation was performed after viewing different information about competitors’ perfor-
mances, and/or studying their annual reports by visiting their information sources (web-sites,
etc.)
5.5 Grip analysis:
Mainly, our advantages over the competitors are based on innovation, comparably low price,
multilingual availability of our service (English/Finnish), and distribution. When looking at
our weaknesses, we should mention the factors like financial strengths, company image, and
advertising.
5.6 Competitive Strategies
For creating competitive strategy we concentrate on issues like:
cost leadership
differentiation
innovation
distribution.
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22. The personal training is expensive service, but making it accessible through internet cuts down
operational costs and decreases the actual price of the product. This allows us to have cost
leadership over competitors. By introducing online and audio personal training we not only
differentiate the product, but also offer something completely new. The distribution by inter-
net will allow the customers to receive our products (training programs and audio samples)
within minutes. Advantage in delivery speed could be a crucial success factor. We believe to be
the pioneers of the idea in Finland, and that our customers find the innovative product effec-
tive and useful.
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23. 6 Marketing Mix
The marketing mix is generally accepted as the use and specification of 'the four Ps' describing
the strategic position of a product in the marketplace. The four Ps’ stand for: Product - A
tangible object or an intangible service that is mass produced or manufactured on a large scale
with a specific volume of units. Price – The amount a customer pays for the product. It is
determined by a number of factors including market share, competition, material costs, prod-
uct identity and the customer's perceived value of the product. Place – Represents the location
where a product can be purchased. It is often referred to as the distribution channel. It can
include any physical store as well as virtual stores on the Internet. Promotion – Represents all
of the communications that a marketer may use in the marketplace. Next we define every step
of the four Ps’ based on our business plan and describe the methods that are going to be use
to achieve the desire goal of having a high quality product/service.
6.1 Product/Service
We are going to have two main service options; face-to-face personal training and online per-
sonal training with a sub-category of audio training. We believe that with these different kinds
of service options people are able to find something they feel comfortable with. We are also
able to have different kind of people as our customers and we can larger target market.
6.1.1 Face-to-face Personal Training
Our organization offers the traditional face-to-face personal training. In this service option the
customer will contact our personal trainer and plan their first meeting. The first meeting
works as a consultation where the personal trainer and the client will get together to know
each other and see if this service is right for them. This first consultation will be free of
charge. When the client has decided that this service is right for them then the personal trainer
will do a fully personalize program to the client which will be done according to the needs and
wants of the customer. The personal trainer and customer will make a program/timetable and
they will be meeting each other according to it.
6.1.2 Online Personal Training
We are offering an option to people to have an instructed workout program online that will
also include an audio training program that will be giving instructions during the workouts.
Our customers will register to our web site and fill out a questionnaire which will ask relevant
questions regarding their personal heath, their preference of exercise, exercising experience
19

24. and lifestyle. After the questionnaire is done by the client the web site will give the right wor-
kout option for the client and the client will have the opportunity to choose the audio training
that fits their work out the best. The online personal training system will have detailed instruc-
tions, video and picture, and the audio training will have a full training session with detailed
instructions played on your mp3 or iPod. This gives the client the best possible tools to do the
given exercises in the correct way.
Audio Training Service
This is not a service we offer on its own, it comes along with the online personal training ser-
vice. This part of the online training is new to the Finnish training market. On our web site we
are going to have a variety of audio training services and our clients will have the option to
choose the one that better suits the online training the system have given them. We are going
to have an audio training service for different kinds of works outs; cardio work out and weight
lifting. The audio training system will have male or female voice to motivate and tell what to
do during their exercise. Our clients will also have the option to add the music which they
prefer to listen during their work out. This audio training system cannot be found in the Fin-
nish market yet and we believe that this could bring us customers who do not have the time or
money to have a personal face-to-face trainer.
The Benefits and Features of Online Personal Training
The website would be done in a very appealing, health promoting style. With easy options to
use and to navigate through.
Customer would create their own profile, which includes their own username and password
that they will use to login to the service as our customers. At the end of the registration, they
would complete the process by paying the fee online (bank card, credit card, bank transfer &
paypal).
Inside the members section, there would be weekly articles about training, nutrition etc.
The customer would have a chart that would monitor their physical measurements, where they
could simply see their current condition compared to their beginning condition when tey first
joined the system. Also the customers can load pictures to their own space where only
themselves and the personal trainer can see and make evaluations.
20

25. Every member would have their own space, which has a calendar, journal, pre-made programs
to choose from based on preference or to have the personal trainer make a specific program
specially for the client.
There would be a exercise library, which would contain over 500 exercises to choose from,
with full descriptions, instructions, photo and video displaying the proper way of doing the
exercise.
Ready-made nutrition programs based on different goals and every customer gets a specifically
made nutrition plan from the personal trainer.
As it was just mentioned we have a variety of services which all have the same goal; to offer
people easy and motivating way to exercise. Today, people have started to pay more and more
attention on their personal health and looks. However, many of them do not have the time or
the money to exercise the way they want to. With our Business Plan we are offering people
the tools on how to get the results they want to have. The variety of our products gives people
the choice to choose the method of exercise which fits the best on their lifestyle.
6.2 Promotional plan
The promotional plan Unique Training is going to have is based on potential customer reach
that is why all the promotion is going to be done through channels that we believe are going
to be directed specifically to potential customers.
6.2.1 Fairs
We are going to promote our personal training products on fairs concentrated on our field of
business such as Terveysmessut and Fitnessn Expo. Fairs are a good tool for public relations
and personal selling. We are able to tell people about our business and the products we are
offering. It is also a way to start building personal relationship with the future customers. The
fairs are interactive affairs where people are able to ask questions and experiment some of our
products such as online personal training service.
One fair we are going to participate on is Terveysmessut. This fair is located in Helsingin Mes-
sukeskus at 13.-15.112009. It is one of the biggest health and well being fairs in North-
Europe. The price for participating to this fair is 101 euro/m2 and the registration is 300 euro.
There is also a discount available if you reserve your place early enough. We are going to take
this advantage which is 10% discount of the booth rent.
21

26. An average 36 554 visitors
85% of them are females
Visitors average age 44 years
82% form downtown area
Average time spend at the fair 3,7 hours
34% of the visitors are most likely to revisit
90% were satisfied with the fair
90% of the companies attending the fair were satisfied
393 journalist visited the fair and media volume was high
(www.terveysmessut.fi)
6.2.2 Magazines
Bodylehti.fi
Bodylehti has the widest distribution in Finland in fitness- and bodybuilding field. Magazine is
published 8 times a year and each edition size is on average 17 800. Its index is constructed
from nutrition- and training advices, and from relevant topics on fitness industry.
SIZE SIZE (mm) PRICE (€)
2/1 Page 434 x 280 4 400,00 €
Back Cover 217 x 280 2 800,00 €
1/1 Page 200 x 268 2 700,00 €
1/2 page, Horizontal 205 x 122 1 500,00 €
1/4 Page, Vertical 100 x 122 850,00 €
1/8 Page, Horizontal 100 x 66 450,00 €
From these options we are using the 1/4 page advertisement sixed 100 x 122 cost 850€.
On bodylehti we are advertising six times a year every second month starting from January.
6 x 850 = 5100, 00€ / year.
Kuntosali &Fitness magazine
K&F is a circular magazine for health- and fitness centres. It reaches over 100.000 readers
eight times a year.
SIZE SIZE (mm) PRICE (€)
22

27. 1/1 Page 260 x 370 2 750,00 €
1/2 Page, Horizontal 260 x 183 1 500,00 €
1/2 Page, Vertical 128 x 370 1 500,00 €
1/3 Page, Vertical 84 x 370 1 150,00 €
1/3 Page, Horizontal 260 x 123 1 150,00 €
1/4 Page 128 x 183 875,00 €
Back Cover 260 x 370 3 250,00 €
Front Page 260 x 265 3 250,00 €
Spread Out 540 x 370 4 750,00 €
From these options we have chosen to take;
1/4 Page size 128 x 183 - Price 875,00€
6.2.3 Internet
Google Ad Words
Advertising at Google web pages opens a large market. Most of the people in Finland are us-
ing Google almost weekly or even daily. It will give us a large visibility with appropriate price.
With the Google ad words people are going to see on the right hand side a link to our web
sites when they are doing a search with particular word. These particular words which will
bring up our website, we have to decide before hand. We are also paying a certain amount
according to the enters to our websites.
Here are some examples of the words we could use and their pricing.
fitness 1,36€/ per click
personal trainer 2,16€/ per click
kuntoilu 0,67€/ per click
health and fitness 1,62€/ per click
The prices are 1€ per click in average.
We can also set limits on the clicks we are paying for, as an example; we can set area to Hel-
sinki downtown which means that the computers located in the Helsinki downtown will get
our ad when they are searching with words we are paying for
23

28. With the Google ad words we are focusing on the mass market. It does not guarantee any-
thing, but we believe that it will bring major visibility. It will also do the work by itself without
any bigger effort and it is not taking a large part of our advertising budget.
Pakkotoimisto.fi
Pakkotoisto.com is going to be one of the web-pages where we are advertising. TNS Metrix
which keeps records of the visitors of web-pages has made a survey on week 41/07 that
shows that there are 91215 users and 242546 visitors per week on pakkotoisto.com.
This web-site represents its user’s lifestyle. Pakkotoisto.com is concentrated on gym exercising
and life around it. Its users and visitors are committed on training and know what they are
seeking from the web-site.
Advertising price
200x40 size banner shown every page. Prices with VAT. 0%
1 week 400 €
2 week 600 €
4 week 800 €
From these options we are going to use the 4 week period advertising. On pakkotoisto.com
we are advertising every third month starting from January as being the first advertising
month.
Pakkotoisto.com has conducted their own survey about their average users and visitors. The
survey analysis is attached as Appendix 3.
24

29. 6.3 Marketing Budget
Below you can see our marketing budget divided monthly for the year 2009. It also indicates
the amounts used in each Promotion channel. Our marketing budget is 36 000,00 € for the
year and at this point we have channelled 28 850,00 €. We left 7 150,00 for other promotion
channels which might occur during the year.
6.3.1 Place
The nature of our business provides us a possibility to reduce costs in facilities. There are no
premises provided for consumers, because there is no need of that. Naturally Unique Training
has facilities for office work where we do the consulting and all the needed processes in order
to run the business.
Unique training is going to be located virtually for the customers. Our company is going to a
have web-site where we are available for our customers 24/7. This way we have a wide range
in reaching consumers and have competitive advantage compared to the traditional system.
All the services, reservations, and programs directed to consumers is handled through our
web-site. Depending of the nature of service it varies how the procedure proceeds.
On face-to-face training we need to make partnerships with the gyms where we are willing to
perform our services. Naturally commercial gyms want to have compensation for using their
premises. Having an agreement with a gym which has a large variety of options where to work
out expands also our work territory and gives our customer flexibility in choosing the training
facility.
25

30. Online training includes the audio-training and the training programs. Online training is han-
dled via our web-sites and the trainee can use any gym he / she wish, since it does not require
our presence, hence no partnerships are needed with the customers’ gyms. In this form of
training our part is only to provide the programs to the customer and follow customer’s
progress via internet. The online program which is appropriate for the customer is down-
loaded from the web-site.
6.3.2 Price
Price is defined by Kotler (2003) as the amount of money charged for a product or service in
order to cover production expenses and profit. Every company is obligated to set a minimum
floor price which covers the cost of production, distribution, and sells, and leave the business
some profit.
6.3.3 Approach
The general approach we are going to use at Unique Training is the Value-based pricing. We
have decided to take this approach because there is already a set consumer value for the ser-
vice we are offering. With this approach we are not going to set our price according to the
cost of production, we are going to use the studies and information to find out how much the
customers value the service has and then put a matching price to it.
Using the Value-based pricing the whole process of pricing goes backwards. Instead of start-
ing by the production cost and ending on the customer, we have to start from the customer
and see how much is the product valued for in the market, and from then we start developing
the product, already knowing what the price is going to be.
We are confident that the Value-base pricing is the right approach for our service because
services are often in the low production cost side of the table, which does not mean that it has
low customer value.
6.3.4 Strategy
The pricing strategies that Unique Training is going to use are based on the cost-plus pricing
method, this means that we first calculated all the expenses of the company, and then add a
substantial amount to represent the desire profit. The cost-plus pricing is the right method for
us because as a new company in a growing market there is not a lot of information.
26

31. As we offer two services at Unique Training we should also have to use more than one pricing
strategy, one for the online personal training and one for the fate-to-face personal training.
The pricing strategy at Unique Training for the online personal training is going to be the
Market-skimming pricing. This means we are planning to start at a relatively high price be-
cause of the lack of competition on online personal training services and generate bigger prof-
its to get a solid start in the business. After a while we would start lowering the prices when
the market gets bigger, and keep doing that until we get to the point where we have cover all
the possible market layers that are wheeling to pay for the online personal training services
offered at Unique Training.
The pricing strategy for the face-to-face personal training is going to be a mix of Premium
pricing, meaning that we are keeping the price of the product or service artificially high in or-
der to encourage favourable perceptions and perceived value of a luxury service among buyers
based only on the price. And Competition-based pricing, meaning that the price is going to be
based upon prices of the similar competitor products. This combination of strategies is very
suitable for the face-to-face personal training due to the low production cost and growing
demand on the service which is where the premium pricing helps and also because there is
already a market for the service and we need to be at the same level as them, at least at the
beginning until we can add some more value to our service, where the competition-based pric-
ing comes into place.
The beginning prices for the products are going to be: 30€ for the online personal training that
includes the training program and the audio training program. 600€ for the face-to-face per-
sonal training that includes the training program, and 10 meeting with the personal trainer that
includes the training facilities (only for the meetings with the personal training) in a 8 weeks
period. If the customer decides to meet the trainer where else than the established facilities,
the customer will be charge any extra expenses this might cost the trainer or the company.
27

32. 7 Operation Management
7.1 Supply chain management
Our company, Unique Training, is a service which provides different kinds of training pro-
grams. We do not manufacture any product therefore there is no need for actual supply chain
management. We have the online ordering process which happens online and the software will
take care of the ordering, receiving the payment and sending the actual product to the cus-
tomer. In the online ordering process there is no need for the actual physical product and that
is why everything happens online. The online system needs only a good design and occasional
maintenance which will be done by the member of our company.
The personal training requires a lot of organizing and scheduling. The personal trainer has to
actually move physically to place to place which requires a timetable so that the customer does
not have to wait and that the trainer can move smoothly. In order, to achieve a good organiza-
tion all the members of our business plan has to have their own responsibilities’ which assures
that everything will be done and everything will be done according to the timetable.
7.2 Divisions and responsibilities
Personal Trainers – They are the ones who are actually seeing the customers in a regular
basis. They are meeting the customers according to the time table they have created together
with the customer. The personal trainers also have to physically move from place to place.
They also need to prepare the work out plans for the face to face training sessions.
Web Maintenance – It is very important to make sure that our server and software works
without any problems. The online service is a large part of our service selection and we do not
want that our customers will have to wait a long period of time to download our website. The
member who is in charge of the web maintenance will be Jose Dominguez Del Villar. They
are required to update the training programs and the web site itself at least two times a week.
Organization – It is important that our personal trainers can move without having any wor-
ries from gym to gym. Trainers are in charge of planning their own routes and different trans-
portation modes. Our trainers will mostly use company’s cars which are chosen based on
them being environmental friendly. Most of the gyms the personal trainers are training are
located in the centre of Helsinki which makes moving from place to place easy.
28

33. Accounting - Secretary is going to do the basic double-entry but accounting is going to be
outsourced. Outsourcing accountings are going to cost us on average one hundred euro per
month (100€).
7.3 Training Facilities - Gyms
As a personal training company Unique Training is going to send customers to the customers’
training facilities, but also have the option of providing the customer with training facilities all
over Helsinki with no extra cost. The gyms that are going to serve as training facilities facili-
tated by Unique Training are: Motivus, with locations in Töölö, Kamppi shopping center,
Kamppi metro station, and Stockman in the center of Helsinki. Another one is Elixia, with
locations in the city center, Ruoholahti, Tali, Itä-Keskus, Matinkylä in Espoo, and Sello also in
Espoo. Unique training is also using Idealfit gyms with locations in Eira, Hakaniemi, and Ku-
losaari. These gyms have been chosen because our customer are mainly from main Helsinki
area and all of the training locations are of easy access for the customers, and with a lot of
transportation facilities for the trainers to get to the facility chosen by the customer. Our
trainers can also work with the customers in other gym facilities that the customer might be-
long to, but the one mentioned above are the ones we provide.
Unique training does not own any training facilities at the time which force the company to
make deals with other companies that do own gyms and training facilities. Unique Training
has agreed with the gyms mentioned before to a fourteen percent (14%) share of every cus-
tomer per session. That means that Unique Training is going to pay 10.5 € per customer per
session to the training facility with no hour restrictions. This kind of service would cost a
regular person somewhere between 10 € and 20 € with some hour restrictions that do not let
the customer use the facilities during really busy hours. Unique Training does not have a single
gym facilitator company because we want to give the customers options to choose from in our
company instead of many training companies to choose from.
The uses of the gyms starts when we give the customer a list of the gyms that we have availa-
ble and he/she can use with no extra cost. After the customer decides which gym fits the best,
we make a reservation if needed, and if reservation is not needed the personal trainer meet the
customer at the gym facility and register the session in the front desk which will later be
charge to the Unique training account. Unique training is planning to stop paying for the use
of facilities in the future. One way of doing that is to get a lot of customers and make a new
agreement with the gym owners where Unique fitness does not have to pay anymore for the
sessions because of the promotion the company is giving to the gym. Also, Unique training
29

34. will be recommending its customers to work out in regular basis and it will probably be done
in the same facility. In other words the gym will gain new customers that are not paid by
Unique Training.
The final goal of Unique Training related to the gym facilities is to build our own training fa-
cilities in the future. Having our own facilities is going to expand the business in multiple
ways, one of them being the addition of a new service to the company, the training facility
provider. Having our own facility should be cost effective at the point we get it because of the
amount of customers we are going to have at that point. If the amount of customers is not big
enough, or they would not be whiling to change gyms, then Unique Training will not make the
expanding step
7.4 Order Fulfillment Process
7.5 Face-to-face Personal Training
The whole fulfilment process starts after the customers find out about our company and de-
cide to contact Unique Training. The first step is the contact between the customer and a rep-
resentative of Unique Training through the internet or phone and shows interest on our free
consultation, after this an appointment is schedule. Because the customer and the trainer have
different time schedules, the appointment might be some time in the next two to four days
after the customer has reached us. During the consultation the trainer is going to explain the
different options and packages available in Unique Training. The consultation meeting is
mostly use to explain the customer what we do, and go through the prices and options avail-
able for that specific customer. After the meeting is the second delay. The customer might
take somewhere between two to four days deciding if Unique Training is the right choice. If
the customer decides not to get our services the process is over. On the other hand, if the
customer decides to acquire our services the process continues.
After the customer decides the hire us as their personal trainers, and decides which package to
get, the customer proceeds and makes the order of the desired service. The ordering process
takes face-to-face with filling the contract between the parties involved. After the order is
placed, a questionnaire is given where we get all information necessary about the customers’
current state of health and goals for us to design the appropriate program. After the question-
naire is done the trainer proceeds to do some testing on the customer. The test are done to
find out the actual strength, resistance, endurance, and other necessary physical limits so that
the trainer can elaborate an adequate training program with the right weights and times for the
customer in question. Preceding the questionnaire and the test, the customer and the trainer
30

35. decide on a date that fits both for their next meeting when the actual training is going to be-
gin. The trainer is going to create the training program, which takes three to five days. After
the program is designed, the agreed schedule of training will be started. The final step is meet-
ing the customer on the agreed date and start the training in the gym that we have partner-
ships with.
Cross Functional Flow Chart for Face-to-face Personal Training Ordering Process
Customer
PARTS
INVOLVED
leaves
CUSTOMER
No
1st contact Customer
with 2 Yes places an
customer order
Scheduling
Customer fills the program Customer has
1 the with training
questionnaire customer session
VISIBLE
PERSONAL
TRAINER
Consultations
with
customer
Customer has
Testing
training at
customer’s
GYM with
physical
PARTNER GYM
Personal
condition
Trainer
INVISIBLE
Personal
PERSONAL
TRAINER
trainer
creates the
training
program
TIME
2-4 DAYS 60 MINUTES 2-4 DAYS 90 MINUTES 3-5 DAYS 60 MINUTES
1 Arranging the meeting with the customer might take from 2-4 days (finding appropriate schedule).
2 Decision making by customer needs time because of commitment and high price of the service.
7.6 Online Personal Training
The whole fulfillment process starts when the customer enters Unique Training websites and
gets familiar with our online training products. The whole ordering and receiving process
happens online. The first step might take to most time because it includes that the customer
gets familiar with Unique Training and they have to decide on what kind of service they want
to order. When the customer decides to order our online training program they have to fill out
a questionnaire on our web sites. The questionnaire asks questions related to the customer’s
lifestyle, personal heath and exercising experience. The questionnaire is not that long it takes
only 10 minutes. The purpose of the questionnaire is to provide the right exercise programs
for that particular customer. After the customer has filled out the questioner the computer
software handles the received information. The software then prepares the training program
according to the filled out questionnaire. When the software has the training program ready
then the customer will receive an email which notifies that the ordered training program is
31

36. ready to be downloaded. After the customer has received the notice email then there might be
a little delay because it is not always certain that the customer is available to download the
program right after the email. When the customer is free to download the program which
takes only few minutes then the customer is ready to start the training process.
Cross Functional Flow Chart for Online Personal Training Ordering Process
Cross Functional Flow Chart – Online Training Ordering Process
The Customer Customer is not happy Customer
customer receives the with the product and has Customer receives
downloads
leaves refund 14 days to return the an email that their
the training Customer
product training program is
program starts training
Customer
ready to be
from our
downloaded
Customer Customer website
Customer NO decides to fills out the
visits our web YES order the ready made
site online questionaire
training
program
Computer
Computer software chooses
software the right training
Virtual Process
process the programs for that
guestionaire particular
customer
2 – 3 Hours 10 Minutes 10 Minutes 1-3 minutes
LeadTime 3-4 hours
Decision symbol indicates that the customer has to make a decision if they want to order the online personal training product or not
Delay symbol indicates that there might be a delay before the cutomer is available to download the online training product they prefer.
7.6.1 Reverse Logistics in Online Personal Training
The ordering process follows the same steps as mentioned before until the customer receives
the ordered program. When the customer is not happy with the received program he or she
has 14 days time to return it. After the customer has returned the program he or she will re-
ceived half of the paid price. When these steps are completed customer leaves.
7.7 Trainers’ week program
Scheduling Face-to-Face trainers’ week program depends on how many trainees the trainer has
at the same time. Trainers’ can handle averagely 10-15 trainees during the same period of time.
The average trainer has 1.3 contact hours with the customer per week.
32

37. On the following page is a sample description of one trainer’s week schedule, which consists
on the following elements;
Preparation of the training. Preparing for the training means creating and adjusting the cor-
rect program and training methods for the customer
Transportation to training location. Unique Training owns two cars which are going to be
available for the trainers to transport to the training sessions with the customers. Two cars
should be enough, but if the company gets many more customers that all three trainers have
to go to training sessions at the same time, then the company will buy another car.
Contact hour with C (customer). Is the actual training session between the trainer and the
trainees. The training session last one hour. This part of the training work is visible for the
customer. Here we start the training programs and evaluate alternatives and training methods
for the customer.
Analysis of the training. Based on the trainees’ performance at the contact session the train-
er makes the adjustments in to the programs in order to achieve best possible outcome of the
training.
Handling customer communications. This means handling the received emails and phone
calls and generally taking care of customer needs.
The schedule does not indicate a specific lunch break, but it is flexible enough so that the
trainer can find his own time to have lunch.
Generally the schedule needs to flexible because we are offering a service to people. The train-
er needs to be able to make some changes to the timetable according to the customers’ needs
for example; if the customer cannot make it to the scheduled meeting then the trainer needs to
be able to arrange a time for the contact hour.
33

38. 34

39. 8 Financial
8.1 Sales Budget for 2009
Unique Training
Sales Budget Schedule
For Year Ending December 31, 2009
1st quarter 2nd quarter 3rd quarter 4th quarter
Online Personal Training
Monthly payments 670 1130 1785 2709
Sales price €/month 30,00 € 30,00 € 30,00 € 30,00 €
Estimated sales € 20 100,00 € 33 900,00 € 53 550,00 € 81 270,00 €
Total sales from online personal
188 820,00 €
training:
Face-to-face Personal Training
Package purchases 16 24 41 49
Sales price €/package 600,00 € 600,00 € 600,00 € 600,00 €
Estimated sales € 9 720,00 € 14 580,00 € 24 300,00 € 29 160,00 €
Total sales from face-to-face per-
77 760,00 €
sonal training:
Total sales estimate for Unique
266 580,00 €
training with VAT 22 %
Total sales estimate for Unique
207 932,00 €
training without VAT
Our sales budget has been made taking into consideration the seasonal factors along with re-
tention rates, assuming that all of our customers will not remain with us all the time. We have
divided the sales budget to online personal training and face-to-face personal training depart-
ments. Also our sales budget has the estimations made for each quarter of the year separately.
We have the total revenue of both departments with value added tax and also without it, as
these figures are based on the cost-plus strategy approach. Since the market for online person-
al training is new, it is hard to identify the sales forecast through secondary information, since
there was none. So we took our fixed costs and added the desired mark-up profit to know
how much we need to sell to reach that profit target, hence the creation of our sales budget
and it’s figures.
35

40. 8.2 Sales Volume Forecast for Online Personal Training
Above you see the sales volume forecast for the first year of our business operations, this is
about the online personal training department. About the figures, you can see from the chart
that the biggest sales months for us in the year are presumed to be January and November,
this is due to the seasonal factor also along with our marketing activities, previously we have
mentioned in our marketing mix, that we plan on having a intensive marketing campaign in
the first year, due to lack of image because of being a new company. So assuming our market-
ing objectives are reached, first month of the year should bring good amount of customers in
due to intensive marketing but more so because January is a time known for new years resolu-
tions etc, so people make promises about getting in shape for the summer, from experience
we have found that the membership rates in health centers, gyms etc. go up drastically because
of this seasonal factor. The month of May is also another time when people want to get quick-
ly in shape for the summer, since it’s very near at that time. However because people are on
vacation and abroad possibly, we feel like the summer months will be fairly quiet with little to
36

41. no growth compared to other months. Then people come back from their vacation and back
to work, so September will be a good month for our online personal training product. No-
vember is seen as a positive month for us because we are participating in fairs as mentioned
previously in the promotional plan, so we are assuming growth in the new customer acquisi-
tion number.
The chart for the sales volume forecast also includes the fact, that we can not retain all of our
customers, due to several factors such as not being pleased with our product, going to a com-
petitors products etc. So since we can’t assume 100 % retained customer, we are assuming that
due to our unique product along with good customer service that we can keep 75 % of our
customer base. The goal is to have 1000 customers by the end of the year of 2009.
37

42. 8.3 Balance Sheet
Balance sheet as of January 1, 2009
EQUITY AND LIABIL-
ASSETS Amount Amount
ITIES
Non Current assets Own equity
Property,plant and equipment Active partners investments 20 000,00 €
-Two cars 22 000,00 € Silent partners investments 12 000,00 €
-Website design & launch 5 000,00 €
-Audio mixer 2 000,00 € Loan capital 28 400,00 €
-Furniture 5 000,00 €
-Computer + software 3 000,00 € Grant
-Start-up grant from unem-
-Personal training tools and clothing 1 500,00 € ployment office 20 400,00 €
Total Non Current Assets 38 500,00 €
Current assets
Cash and cash equivalents
-Marketing budget cash 9 000,00 €
-Office premise (3 months down
payment + 3 month rent) 3 900,00 €
-Cash reserve for first 3 months of
active partner salaries 9 000,00 €
-Start-up grant from unemployment
office 20 400,00 €
Total Current Assets 42 300,00 €
Total Assets 80 800,00 € Total equity and liabilities 80 800,00 €
Our biggest investments are two cars that we need for the movement of personal trainer from
one place to another with the least amount of time, so there are no delays for the next face-to-
face personal training client meeting. We have enough cash to cover our biggest costs for the
first 3 months, such as salaries for active partners to complement the start-up grant they will
all be receiving from the unemployment office, marketing budget for 3 months, along with the
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43. down payment of the rental premise with 3 months rent money prepared in reserve. All 4 ac-
tive partners will invest 5000 € each making a total of 20000 €, we also have 3 silent partners
that only invest 4000 € each, making a total of 12000€. They will be promised a dividend of
10% from annual profits. From our sales budget forecast, that would mean our silent partners
would get their investment back in about 1,3 years, which we think is a great investment.
The remaining of capital will be loan capital from Finnvera for a amount of 28400 € with 5
years payment plan and 6 % interest on the loan, if needed we can have the entire first year
free of payments to relieve some of the expenses if we can’t cover them.
Start-up grant (starttiraha) from unemployment office will be received for each active partner
participating in the company operations full-time. The amount of the start-up grant is between
527 - 670 €/month/partner for a maximum of 10 months. So we are taking the minimum
amount into our calculations just to be on the safe side.
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44. 8.4 Income Statement
% from total
INCOME STATEMENT (period 1.1-31.12.2009) revenue
Total revenue 207 932,00 € 100,00 %
Cost of revenue 12 995,75 € 6,25 %
Gross Profit 194 936,25 € 93,75 %
Operating expenses
*YEL-insurance 5 304,00 € 2,55 %
Other insurances 2 400,00 € 1,15 %
Salary ( 4 active partners) 96 000,00 € 46,17 %
**Salary expenses (0%)
Rent 7 800,00 € 3,75 %
Communication; phone; internet 1 800,00 € 0,87 %
Accounting 1 200,00 € 0,58 %
Office supplies 600,00 € 0,29 %
Travel expenses 6 000,00 € 2,89 %
Advertising 28 980,00 € 13,94 %
Other expenses
- Entrepreneur unemployment insurance 1 800,00 € 0,87 %
- Website maintenance 600,00 € 0,29 %
Total operating expenses 152 484,00 € 73,33 %
Operating income or loss 42 452,25 € 20,42 %
Non-Operating or Other
***Depreciations 9 625,00 € 4,63 %
****Loan payment 5 604,00 € 2,70 %
Earnings before tax & income (EBIT) 27 223,25 € 13,09 %
Interest expenses 140,00 € 0,07 %
Net income 27 083,25 € 13,03 %
Note.
*YEL-insurance amount is from the announced 8500€ an-
nual income/active partner, we want to keep this low.
**no extra expenses for salaries such as social costs, since
these are paid to active partners.
***Depreciations are made of all the Non-Current assets
with a 4 year plan, depreciation of 25% per year.
****Annual loan payment amount of loan capital
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45. 8.5 Break Even Point Analysis
Breakeven in sales
% of
sales
Sales 207 932,40 € 100,00 %
Cost of sales 12 995,75 € 6,25 %
Contribution margin 194 936,65 € 93,75 %
Breakeven calculation
Fixed costs 152 484,00 € 73,33 %
Contribution margin ratio 93,75 %
Breakeven in sales 162 650 € 78,22 %
Margin of safety 45 283 € 21,78 %
Breakeven point can tell us how much our company should sell theoretically in order to make
profit. In our case, we combine the face-to-face personal training and online personal training
because it’s hard to allocate the costs. Since we are offering two different kinds of services, the
price per unit must be different. What’s more, taking yearly as our criteria is easier for us to
analyze the information.
The breakeven point is 162650 € for the whole year. Our fixed costs are 152484 € a year and
variable costs are 12995 € a year. Since our sales budget is based on a cost-plus pricing strate-
gy, it doesn’t take the actual demand into consideration since we don’t have information about
it, our product being so unique and new to the Finnish market, but we have done our esti-
mates being fairly conservative and still we have a margin of safety of 45283 € or 21,78 %, so
our estimates can be wrong by that much and we still wouldn’t make any losses and all of our
expenses would be covered, which is why we feel very positive about the outlook based on
potential and forecast calculations.
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