BUSINESS PLAN ART20-E
Contents 01. Business Strategy fitdriv- • Starting Point Get fit. Fast. • Company’s Presentation 02. Market Analysis • Environment Analysis • Market Positioning • Geographic location • Potential Customer Estimation 03. Market Plan • Product definition • Business Model • Pricing • Capacity • Sales Curve 04. Finances 05. Annexes • Initial Investment • TOPSIS Methodology • Operating expenses • Technical specifications ART-2Oe • Income Statement • Cash-flow evolution • Bibliography • Amortization Schedule • Balance sheets • Ratios
Business Strategy 6
01. Business Strategy • Starting Point • Company’s Presentation
Business Strategy Starting Point ARUS Motorsport S.A. is a Spanish company dedicated to the design and manufacture of com- petition singleseater cars since 2013. Its work includes the design, the assembly and the cons- truction of their own product. This project is developed by a multidisciplinary team formed by 8 more tan 90 members dedicated to establish ARUS brand as a world reference. Mission Obtain the maximum profit fulfilling the best sales scenario. State the brand on a worldwide scale, inside and outside the automotive competition world. Vision Leader and benchmark in the production of competitive single-seater automobiles. Provide a dynamic work style and a work space that inspires workers to give their best, promo- ting teamwork. Develop a strong network where business associates, providers and workers that will help ARUS Motorsport become a brand that embodies: passion, speed, creativity, optimism and fun. Turn the company into an efficient and dynamic organization. Establish today’s and tomorrow’s production. Guarantee competitiveness through innovation and search of new materials and production methods. Values Guarantee that young professional drivers or automotive fans that opt for our brand, can make their dream come true. To achieve that, ARUS Motorsport must: Adapt to changes. Always have curiosity for starting investigation. Constantly analyze the market in order to listen, observe and learn from it. Focus on our customers’ and associates’ needs. Maximize the return to investors, providing reliability of our project without forgetting our com- pany’s responsibilities.
9Business Strategy It has been one year since the launch of ARUS Motorsport last product, the ART-19. Since then, the company has established as one of the leaders in competition single-seater cars manufac- turing. Regarding the potential market estimation which was developed in the last Business Plan, it is known that ARUS Motorsport counts on: An effective organization which grows year by year incorporating the best professionals. In the last years, the team has gained a whopping 90 members dedicated exclusively to the produc- tion of single-seater cars. 1400 units of the ART-20 have been sold and distributed. Property of 20774 m2 in San Fernando de Henares industrial park, in Madrid, where the factory and a testing circuit are located. Distribution centers in the following countries: Spain, Italy, France, Germany, Netherlands and England. Agreements with hostelry companies for sponsorship packages. Good relationship with the media, especially those ones dedicated to motorsports, such as Kar- ting Magazine. Agreements with Spanish karting circuits, where several events have been organized for the presentation of the product and races. A mobile app, ArusApp, with 534 users. Now, the latest product released by ARUS Motorsport, the ART-19, is starting its last phase of growth. The profits have reached the point of inflection and is at the transition stage of an emerging necessity for innovation. The strategy will be the following: before reaching the matu- rity and suffering losses, a new product will be sold: the ART-20C. The launch of this new product will be accompanied by a new business line of the ARUS Mo- torsport brand. The text included in this book details and justifies the business plan of this new project, called: Fitdriv-e.
Business Strategy Company Presentation fitdriv- 10 Get fit. Fast. What It is about Fitdriv-e is born as a new line of business of ARUS Motorsport. Exercising and reducing our car- bon footprint are two of the best things we can do to maintain a healthy and happy future both for our bodies and for the sustenance of future generations. What would you say if you knew that with your physical effort you could generate energy which you could later use to power the batteries of the ART20-e racing cars and then drive them? Fitdriv-e is a new concept of driving experience in which usesr must generate the energy used to charge the batteries of the single-seaters being able to drive it. In this way, Fitdriv-e enables you to do both things: exercise in an eco-friendly way and have the experience of driving a pro- fessional electric car on an indoor circuit, and be able to access the rest of the facilities of the sports center. Get to know us Fitdriv-e offers the user a unique experience, where you can combine routine physical exercise with the best leisure activity for motorsport fans: driving a racing car. Our product presents itself as an alternative to conventional gyms, offering the customer a new experience that breaks up with the typical and monotonous gym routines. What’s more, users will be able to do personal challenges in a way that meets their physical objectives. The cus- tomer will physically challenge themself and their effort will be rewarded with this wonderful driving experience. Fitdriv-e is more than a space dedicated to your body and mind, it is a place where all practices and exercises aim to reduce environmental pollution and promoting social and personal we- ll-being. As engineers and entrepreneurs discover new ways to harness nature’s bounty for clean ener- gy, we shouldn’t forget that as humans we can also generate renewable energy. Now that effort is rewarded with the exclusive opportunity to drive a racing car: what better reason is ther to hit the gym?!
Business Strategy 11
01. Business St Business Strategy 12
02. Market Analysis • Environmental Analysis • Market Positioning • Geographic location • Potential Customer Estimation
Enviromental Analysis PESTEL 14 In the first place, it is fundamental to understand the environment in which the future busi- ness will be developed. Carrying out an analysis of the external factors that will condition the business activity is required in order not to be oblivious of their influence. To do so, a strategic planning instrument called PESTEL is used to analyse the political, economic, social, technologi- Market Analysis cal, ecological and legal factors of the target environment. By doing so, the context in which the new product will be developed is precisely defined. Due to the close connection between political and economic factors, both will be analysed simultaneously, considering also the social ones and justifying the reason for conducting the study with a view to the European Union (EU onwards); then, the main technological characte- ristics of the world of sports activities and motorsport will be explained. The current concern of governments and society to be eco-friendly, with the measures to be followed in the coming years (specially for a business idea that claims to be revolutionary regarding environmental awareness in sports centres and motorsport), cannot go unnoticed. Finally, the most important legal aspects regarding the construction and operation of a gym and a circuit will be summari- zed. POLITICS AND ECONOMICS The European Union is an economic and political union between 28 countries i.e. Austria, Bel- gium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden. It has become a global actor and has influences on global economy and politics. It works with other major world powers and plays a very important role to encourage democracy, freedom, peace, and security at global levels. The EU maintains very good relations with the United Sta- tes. The European single market is one of the greatest achievements of the EU. It accounts for approximately 500 million consumers and 21 million SMEs (Small & Medium Enterprises). It aims to break down all the barriers to business in the member states by ensuring four liberties i.e. free movement of goods, services, capital, and labour. However, the free movement of peo- ple has the most controversial issue and drawn widespread criticisms from Eurosceptic political parties, and many others. The Gross Domestic Product (GDP) in the EU in 2018 represented approximately 30.24% of the world economy. Germany and France are the two member states that generate over half of the EU’s GDP. The USA was the EU ‘s main partner for exports, and China for imports in 2018. ARUS Motorsport is a well settled company in Europe, with numerous distribution centres sca- ttered throughout the continent, where the free movement of goods and services supposes a decrease of administrative and bureaucratic expenses, in addition to the advantages offered by the EU when creating a business.
The euro is the official currency for 19 of the 28 EU member countries. These 19 countries with 15 approximately 340 million people collectively make up the euro area which is also known as the eurozone. Market Analysis SOCIAL Europe has a shared and rich cultural heritage and the EU works to support and preserve it. The citizens of the member states can travel, work, and settle in anywhere within the EU. This helps them strenthen their mutual relationship and learn and benefit from different sub-cultu- res. However, the EU is currently facing several social challenges. For example, female employment rate is far below men’s in many member states. Likewise, youth unemployment, ageing population, income and wealth inequality, inefficiency in hospital care, higher pharmaceutical spending and unemployment of locals are some other problems facing the EU. According to some critics, low-skilled migrants from poor EU member states impact on the em- ployment opportunities for local people in highly developed economies. TECHNOLOGICAL As stated above, the EU is a global actor, and has done excellent in many areas including scien- ce and technology. In fact, Germany, Sweden, Finland, the UK, and France are some of the most technologically advanced countries in the world. By any measure, the EU is a scientific power- house and has contributed immensely to science and technology. However, the EU’s technology and IT sector falls behind economic powerhouses such as the USA, and China. The EU also suffers from a lack of IT skilled work forces. Companies such as Apple, Alphabet, Alibaba, Amazon, Baidu and Tencent are either from the USA or China. The EU needs similar companies of its own. In fact, it really needs to speed up in the artificial intelligen- ce revolution. Focusing on the technologies affecting our business idea, two main technological branches can be distinguished: power generating fitness equipment and electric powertrain. According to Green Gym, chain of eco-friendly gyms, “the demand for ecological sports facilities is growing with more launchings each year; in urban centres such as London, the number of green gyms has grown by 500% since 2011”. The reasons behind this increasing demand may be related to a greater environmental aware- ness and other social factors but it is clear that the progress and breakthroughs on power ge- nerating technologies encourage the confidence of the customer in this kind of sports centres. Cardio machines such as treadmills, cycles and elliptical create resistance while you work out. The subsequent friction is converted to heat, which is changed over into energy through a generator. An average cardio machine contains resistors that dispose of this heat. An exter- nal generator can take the place of the resistors and take in the DC power created by the gym equipment. An inverter in the generator changes the DC power into AC, which serves as your
Market Analysis According to SportsArt, the energy produced by an average person during one hour in the ellip- tical can generate up to 160 watts of electricity. The power generating equipment can capture approximately 74% of this energy and convert the workout to useful electricity. Here are some others benefits related to using power generating sports equipment in a gym facility: 16 • Provides users a fun new metric to track their workouts and workout output • Creates a sense of paying back the environment • Go green to attract new members, especially millennials On the other hand, alluding to the electric powertrain background, Polaris claims that “the global electric powertrain market size was valued at USD 257.5 billion in 2018 and is expected to grow at a CAGR (Compound Annual Growth Rate) of 11.3% during the forecast period. The transition from conventional internal combustion engines in conventional automobiles to elec- tric vehicles in an effort to develop a sustainable future will enhance demand for e-powertrain in yhe up coming years”. CNBC published in their website that “The number of electric vehicles on the road around the world will hit 125 million by 2030, the International Energy Agency forecasts. The world’s fleet of electric vehicles grew 54 percent to about 3.1 million in 2017. The IEA (International Energy Agency) says government policy will continue to be the linchpin for electric vehicle adoption”. These two statements only confirm the increasing importance of electric powertrains in land transportation and the adoption of the electric car as the transport of the future, much cleaner and environmentally friendly.
ENVIRONMENTAL 17 The EU faces some enormous environmental challenges. For example, air pollution is the big- Market Analysis gest environmental risk to public health in Europe causing an estimated 400,000 premature deaths a year. And alarmingly, most of the EU members states have failed to meet air quality standards and the measures taken by the European Commission against countries branching emission limits have not been effective either. Other notable environmental challenges facing the EU are climate change, stratospheric ozone depletion, loss of biodiversity, major accidents, acidification, deterioration of habitats and water pollution, forest degradation, and chemical risk. The European environmental policy based on the principles of caution, prevention, correction of pollution at its source and “polluter pays” cannot be ignored. Multi-annual environmental action programs set the framework for future actions in all areas of environmental policy. They are in- tegrated into horizontal strategies and they are taken into account in international negotiations on the environment. This policy is based on the following objectives: • Reduce emissions from member countries. • Encourage other large polluters to adopt strong measures. • Face the inevitable effects of climate change. • Plans for the commercialization of electric vehicles at a massive level in the up coming years. LEGAL The EU has its own legal system. It is separate from international law and it is highly respected in the member states. It overrules the national law of each member country if there is a con- flict between the national law and the EU law. A uniform application of EU law means laws are consistent in their interpretation and application, and are more accessible, understandable and transparent.
Market Analysis SWOT Analysis Strenghts • Business line based on ARUS Motorsport, leader in automotive manufacturing, with great influence in the European market • Powerful differentiator for a sports facility due to the its environmentally friendly and driving S features • First sports complex that uses mechanical energy to reduce electric costs for an electric car, leading to a lower facility consumption 18 • Great potential to captivate motorsport fans • Opportunity to practice many different sports at the same place. • Experience of driving a competition single seater in a circuit located near the city centre. • App that allows you to exchange your effort at a gym with different rewards. • Available to drive even with unfavourable weather conditions. • Service focused on encouraging participation at gym activities and creating an effective fidelity program. • New fun metric for customers to track their workouts • Located at only one place. Weaknesses W • Unknown market for the parent company Arus Motorsport. • Difficulties to attract customers that are already subscribed to another gym. • Difficulties to stock electric energy. • Lack of know-how in sports facilities operations. • High-complexity procedures to obtain electric power from kinetic energy from the gym equipment. • Impossibility to stock electric energy to later be used in the car due to legal constraints. • Joule loses at energy stocking. • Regularly driving in the same circuit may lead to customer boredom. OOpportunities • Amount of motorsport fans at central places. • Lack of sports complex specially dedicated to motorsport. • Opportunity of attracting a customer profile not appealed by physical activities but by driving competition cars. • Amount of people that use a gym. • Engineering improvements in the last century in electrical storage. • Increasing environmental awareness among citizens, giving us the opportunity to attract “green members”. • Increasing trend among society of body-care and physical wellness. • Strong entry barriers in sports facilities market due to the large amount of Threadss T gym chains. • Creation of new gyms. • Strong entry barriers in karting facilities due to the large number of karting tracks in the cities. • Possibility that important gym chains would replicate our business idea.
Get fit. Fast.
Market Analysis Enviromental Analysis The market positioning is the categorization of a product or service in the customer’s mind in relation to the competition. The following document will evaluate and illustrate the positioning of the product from the perspective of the client, defining the elements or dimensions that 20 create value for the target segment, and analyzing, based on these key dimensions, its compe- titors. The study aims to provide an understanding of how consumers perceive our brand, based on the key dimensions that make a customer choose one product or another in the market. Analysis The first step of this study is to identify the competitive framework of products/services that satisfy the consumer. Depending on what the service will offer, it has been defined as an offer of fitness venue with a wide ranging of activities to do and with a certain level of eco-friendly awareness in the sports venue. However, the value proposition of our particular business idea is not the offering of sport activi- ties, but the fact that these activities may be reachable only by means of the customers’ driving score. This score is previously affected by the prior effort of the customer on the cardio Eco- Power machines. It can be seen that, in our project, we have in very high regard the efffort of the customer. This is not the usual business model of sports facilities and gym chains and we are aware of that, but that is exactly the point of this system, differentiation, the potential for further rewards (not just weight loss or physical improvement), the possibility of driving a competition single seater, trying to achieve the best performance and being rewarded by it. Having made this difference clear, and, facing the lack of similar businesses models in our area of operation, we have chosen other gyms and sports facilities as the main competitors of our company, as sports activities are ultimately the service that our costumers are looking for. Next, we have identified the attributes or dimensions that influence the perception and decision of choice of our clients, defined as: • Wide range of fitness/leisure activities to offer • Price A. Competitors Our business, according to the TOPSIS Analysis results, will be established in Copenhagen, Den- mark. For that reason, we have focused our competition study in this city, yielding the following companies/centers:
• Crossfit Copenhagen • Fitness World 21 ▪ Price: 62.7€ ▪ Price: 36€ ▪ Number of branch offices: 18 ▪ Number of branch offices: 22 Market Analysis ▪ Range of offered activities: ▪ Range of offered activities: ◦ WOD: Workout of the Day ◦ Weightlifting ◦ Crossfit for beginners ◦ Cardio ◦ Crossfit for pregnants ◦ Mind&Body: Yoga, Pilates ◦ Stretching classes ◦ Bodypump ◦ Cycling • Vesterbronx Gym ◦ Dance classes ▪ Price: 44€ ◦ Boxing ▪ Number of branch offices: 1 ◦ TRX ▪ Range of offered activities: ◦ Personal training ◦ Weightlifting ◦ Cardio • SATS ◦ TRX ▪ Price: 46,7€ ◦ Postnatal ▪ Number of branch offices: 2 ◦ Boxing ▪ Range of offered activities: ◦ Yoga ◦ Weightlifting ◦ Cardio • SHC (Sporting Health Club) ◦ Sauna ▪ Price: 53,4€ ◦ Martial Arts ▪ Number of branch offices: 3 ◦ Dance ▪ Range of offered activities: ◦ Cycling ◦ Personal training ◦ Yoga ◦ Padel ◦ Stretching ◦ Squash ◦ TRX ◦ Pool&Spa ◦ Sports camps ◦ Boxing ◦ Prowler • Urban Gym ◦ Outdoor training ▪ Price: 13€ ▪ Number of branch offices: 3 ▪ Range of offered activities: ◦ Cardio ◦ Weightlifting ◦ Crossfit
To quantify the range of the activities offered, a score table has been made, evaluating and clas- sifying the variety of activities offered. The different workouts receive diverse scoring depen- ding on the original touch of the workout itself: • 0 points: no novelty. Seen in every gym. • 5 points: low novelty. Very common. 22 • 10 points: medium novelty. Not likely to be seen much. • 20 points: high novelty. Very rare to see in Copenhagen. • 50 points: unique. One of a kind not only in Copenhagen. Market Analysis Score Workout 0 points Weightlifting, Cardio, Cycling 5 points Boxing, Martial Arts, Outdoor training, Postnatal, Yoga, Bodypump, Stretching, Pool, Spa 10 points Crossfit, TRX, Nutrition, Personal training, Massage, Prowler, Dancing, Cardio (Eco-Power) Adding up the total points for each fitness center and arranging them in order, the results are: • SATS: 75 • SHC: 85 • Fitness World: 50 • Crossfit Copenhagen: 40 • Vesterbronx Gym: 25 • Urban Gym: 10 Regarding Fitdriv-e, they add up to 100 point, with a price of 119,99€ offering: • Weightlifting • Cardio (Eco-Power) • Cycling • Personal Training • Pool • Spa • Massage • Car Racing
B. Explanatory Graphic 23 Once the competitors have been defined and the key dimensions that make the customers opt Market Analysis for one or the other, we have proceeded to the development of a positioning matrix, which aims to represent the vision that our customers have of all the competitors analyzed depending on the key dimensions. Having established what would be the matrix of customer perception, we have located the point where we should position our product. In view of the results; It seems that the smart thing to do would be to define our product as the one with the largest catalogue/novelty of activities offered. With regard to the price, there seems to be a huge gap in cheap fitness centers membership, but of course if we pretend to offer innovative activities that require a big investment, a much better idea would be offering a high-standard service with a high price, promoting our brand in the market.
Market Analysis Geographic Location Once the decision was taken to focus the business idea in Europe, and more specifically in countries of the European Union (with the idea to be on the same legal framework), a study has been carried out to determine the geographical locations where the fitness centre will be laun- ched. 24 TOPSIS Analysis The study consisted of a multicriteria analysis using the TOPSIS methodology (Technique for Order Preference by Similarity to Ideal Solution). The method starts from a series of factors that could be relevant to the success of the fitness centre and circuit together with a set of weighted attributes and establishes a ranking of the best alternatives according to the chosen criteria. This analysis has been made three times. First, to determine some of the best countries to start our business idea. Then, to study whether it would be wiser to spread our fitness centre chain in the same country or to diversify to the main cities of the countries indicated in the first TOPSIS. And finally, to choose the best neighbourhood in the city where the first fitness centre will be launched. It would be necessary to repeat the third TOPSIS if we decide to branch out in other European cities. . A. Chosen Criteria: Countries Focusing only on the countries of the European Union, the following criteria have been taken into account to carry out the TOPSIS study: • Demographic criteria ▪ GDP per capita ▪ Age target profile (people between 16 and 60 years old) • Interest in sports ▪ Health&Fitness club membership per country ▪ people performing more than 300 minutes of physical activity in a typical week • Interest in motorsport ▪ Number of motor racing circuits ▪ Interest in motorsport competitions (Google searchs for “Formula E”) ▪ People reached in social networks by ARUS Motorsport • Environmental awareness ▪ Renewable share (modern renewables) in final energy consumption in 2016 ▪ Increase in sales of electric cars in recent years
B. Chosen Criteria: Cities 25 Another research was made using the same criteria in order to get more accurate information Market Analysis about the city and the difference between cities in the same country. Others were studied to get to know in detail the fitness and motorsport (karting) market in the city. Some of these new criteria are considered both as with a positive and a negative impact in our business (for exam- ple, a bigger amount of gyms in a city confirm a high gym attendance by its citizens but can be also considered negatively as there is more competence for our own fitness center). • Demographic criteria ▪ GDP per capita ▪ Age target profile • Fitness market ▪ Number of fitness centres ▪ Membership fee ▪ Fitness centres rivalry • Karting market ▪ Number of karting indoor ▪ Karting price ▪ Karting rivalry C. Chosen Criteria: Neighbourhoods • Demographic criteria ▪ Population growth ▪ Density (citizens/km2) • Fitness market ▪ Number of fitness centres ▪ Average price of membership fee • Average price of Airbnbs
Market Analysis Results After conducting the TOPSIS countries analysis, the countries that show the greatest affinity with ARUSGym idea are, in this order: Denmark, Sweden, Romania and Norway. The cities study has been developed considering the four biggest cities in Denmark, the two 26 biggest cities in Sweden, the capital city of Romania and the capital city of Norway. As it can be deducted from this second TOPSIS, it is clear that the best place to establish our business is Copenhagen, leaving far behind the second best option, Stockholm. Capital city of one of the eco-friendliest countries in the UE, Copenhagen’s high living standard creates an environment where our high membership fees won’t be rejected. Here we show some relevant data that makes Denmark, and specifically Copenhagen, the most suitable option for the launching of ARUSGym: • 19% of the population of the country has a fitness club membership, one of the highest percentages in the E.U • 33,1% of the total energy is produced by renewables sources, being only outpaced by Nordic countries • 1º city with highest number of karting and karting prices • Outstanding results in demographic criteria (GDP per capita and age target profile) Regarding the different neighborhoods in Copenhagen, Østerbro is one chosen for our business development.
27Market Analysis Get fit. Fast.
Potential Customers Analysis The following document details the process followed to estimate the number of potential clients of ARUSgym by means of the successive ratios method. The method consists of applying percentages successively to decompose potential markets, 28 from highest to lowest, until reaching a more specific and segmented market. The data we have obtained comes from a survey to the Copenhagen citizens and national statistics. All this information allows us to analyze the data disaggregated by neighborhood, offering us a more accurate estimate of the number of specific customers for each neighborhood. Market Analysis We will start from an absolute potential market that encompasses the entire population of the 11 neighborhoods of Copenhagen, city where the first gym would be located. From this potential market, the ratios that will be taken into account are: 1. Age, the idea is to discard all the population that is not within the range of 16 and 60 years. 2. People interested in the world of motorsports (Formula 1, Formula E, Rally, etc.). 3. Those who do physical activity at least 200 minutes a week. 4. Those who usually go karting. 5. Those who are not subscribed to any gym or those who would change gym. 6. Those who would walk or ride a certain distance to go to the gym (this distance de- pends on the neighborhood where the survey is being made). 7. Those who are in agreement with the prices offered and can afford them The following table will show the results obtained after conducting a survey: Popu- People 200 min Not Agree lation of target of physical subscribed Would with the Potential Neighborhood (2020) Motors- Karting or would walk/ride X prices and Total % custo- age port fans activity users change meters can afford mers Amager Øst 57673 Amager Vest 71755 gym them Bispebjerg 55239 Brønshøj-Husum 44741 65% 13% 43% 23% 80% 45% 50% 0,150% 87 Indre By 55493 Nørrebro 80572 74% 15% 55% 25% 78% 52% 45% 0,279% 200 Østerbro 79276 Valby 56274 69% 9% 52% 21% 64% 69% 55% 0,165% 91 Vanløse 40843 Vesterbro 67884 52% 20% 53% 22% 82% 60% 40% 0,239% 107 65% 17% 79% 21% 90% 66% 35% 0,381% 211 81% 34% 75% 20% 81% 64% 55% 1,178% 949 78% 36% 65% 23% 77% 67% 70% 1,516% 1202 76% 7% 72% 26% 81% 49% 76% 0,300% 169 62% 16% 89% 25% 74% 75% 35% 0,429% 175 59% 27% 71% 27% 69% 52% 49% 0,537% 364 Frederiksberg 105037 70% 7% 65% 29% 59% 80% 61% 0,266% 279 Total of popula- 714787 tion Total of potential customers 3835
As we can see, the neighborhood with the largest number of potential customers is Østerbro, coinciding with the results obtained in the TOPSIS method. Based on this total number of potential customers, the capacity of the gym and the sales curve have been estimated. Landing Page 29 At the end of the survey there will be a Landing Page in which the client will have the possibility Market Analysis to subscribe to the gym by choosing one of the two offered rates. These data will be used to estimate the proportion of customers that will be subscribed to each rate. In this way we can foresee that 63% of customers LANDING PAGE 246 will choose the ARUS rate and the remaining 37% ARUS rate subscription 145 the ARUS + rate. ARUS+ rate subscription 391 Total of subscriptions These results are reliable since the total subscriptions exceed the minimum sample size requi- red (384). This is the minimum sample size obtained for a population of 602,481 (Copenhagen citizens in 2017), a confidence level of 95% and a margin of error of 5%. Both the survey and the landing page have helped us to validate our product in Copenhagen.
01. Business St Business Strategy 30
03. Market Plan • Product definition • Business Model • Pricing • Capacity • Sales Curve • Marketing Strategy
Market Plan Product Definition Concept Exercising and reducing our carbon footprint are two of the best things we can do to maintain a 32 healthy and happy future both for our bodies and for the sustenance of future generations. What would you say if you knew that with your physical effort you could generate energy and with it you could power the batteries of the ART20-e racing cars and then drive them? Fitdriv-e is a new concept of driving experience in which the user must generate the energy used to charge the batteries of the single-seaters which he will be able to drive. In this way, Fitdriv-e enables you to do both things: exercise in an eco-friendly way and have the experien- ce of driving a professional electric car on an indoor circuit and be able to access the rest of the facilities of the sports center. Get to know us Fitdriv-e offers the user a unique experience, where you can combine routine physical exercise with the best leisure activity for motorsport fans: driving a racing car. Our product presents itself as an alternative to conventional gyms, offering the customer a new experience that breaks up with the typical and monotonous gym routines. What’s more, users will be able to do personal challenges in a way that meets their physical objectives. Costumers will physically challenge themselves and their effort will be rewarded with this wonderful dri- ving experience. Fitdriv-e is more than a space dedicated to your body and mind, it is a place where all practices and exercises are aimed at reducing environmental pollution and promoting social and personal well-being. As engineers and entrepreneurs discover new ways to harness nature’s bounty for clean ener- gy, we shouldn’t forget that as humans we can also generate renewable energy. Now that effort is rewarded with the exclusive opportunity to drive a racing car: There is no better reason to hit the gym!
User experience 33 Users will have an APP on their phone in which all your personal achievements and marks will Market Plan be recorded, as well as the energy you have generated, accumulated driving time, kilometers per lap performanced in the last 4 races, availability calendar and reservation of driving ses- sions, ARUSCOINS available and much more, which will be detailed below. 1. Generate energy The first thing one has to do is produce energy through spinning and elliptical bikes and tread- mills in the ECO-POWER room, which is automatically converted into minutes of driving expe- rience. A 50-minute spin class with 6 participants and an instructor can generate up to 3300 watts. And a person can generate up to 200 watts/hour. Therefore, we have estimated that a person will produce on average about 100 watts each time they go to the gym. The con- version “generated watts - driving time” will be as follows: 100 generated watts = 2,38 minutes of driving If we assume that an average person goes to the gym five times in two weeks, they will approximately achieve 14,25 minutes of driving experience in that period of time, which in reality will be equivalent to a 10, 15 or 20 minute driving session. The user will accumulate the excess driving time achieved. When clients are about to start training, they will scan the QR code of the machine they are about to use so that the APP can register the number of watts generated and the equivalent minutes of driving the car, which users will be seeing while they are exercising in their own phone, being able to place it on a support insta- lled on the machine itself. 2. ART20-e driving experience Every user will receive an initial theory driving class with a professional pilot before driving the car for the first time, which they will be able to book using the APP. In the APP, there is a calendar for the users to book the driving sessions. When you arrive at the circuit, a monitor will help you put on the necessary equipment, he will give you some basic safety instructions and he will assign you a car. There will be an indicator on the dashboard of the remaining time. When you are done, you look at the APP and see how many kilometers you have travelled.
22 km Endurance=30 min X=10 min Y=15 min Z=20 min X=7 km=7 laps Y=11 km=11 laps 34 Z=14 km=14 laps 100 meters travelled=1 ARUSCOIN 1 km=1 lap=10 ARUSCOINS Market Plan In order to encourage the competitive nature that Fitdriv-e wants to transmit to users and provide the frenetism that characterizes automobile clubs, a ranking system is established. This system consists on establishing an order of the best lap times. At the end of each week, the first 3 users of the ranking will receive a prize. Driving Sessions Time (min) 10 15 20 Distance (km) 7 11 14 Laps 7 11 14 Maximum ARUSCOINS per session Session (min) 10 15 20 70 110 140 ARUSCOINS ARUSCOINS Ranking Ranking 12 3 ARUSCOINS 10 5 3
3. ARUS SHOP In the app, the user will see how many ARUSCOINS they has available. Then, they will be able to purchase different kinds of activities in the catalogue, which they will find in the app. The users will have access to the activities by scanning a QR code at the entrance. 35 Activity 5 passes Price Market Plan Device training room and free weight room 40 ARUSCOINS 5 classes Live courses and group activities 5 days 50 ARUSCOINS A heated indoor swimming pool 5 sessions 60 ARUSCOINS Personal training session 2 classes 70 ARUSCOINS Driving technique class 80 ARUSCOINS APP The app will have a menu with four different tabs: • Eco-power results (watts generated and minutes of driving). • Distance traveled in the last four races and number of ARUSCOINS achieved + Weekly ranking. • Driving session reservation schedule. • ARUS SHOP.
Market Plan Sports facilities, staff and equipment Our sports center is equipped with a cardio eco-power room, an indoor circuit and other gym facilities such as a free weight room, a device training room, two rooms for live courses and group activities, a heated indoor swimming pool, a spa, chan- 36 ging rooms, and a parking for your vehicle or bicycle. You will recognize the building because it is entirely made of glass, in order to make the most of natural light and the heat of the sun. Eco-Power Room This room is equipped with 174 eco-power cardio machines such as treadmills, cross trainers, steppers, rowing machines, spinning and elliptical bicycles. These are created with an internal generator-transformer that when you activate it by peda- ling, striding or rowing, generates kinetic energy that is transformed into electricity, which is accumulated in batteries that are used to recharge the ART20-e ones. Staff There will be people who will take turns and be at the reception or watching the ECO-POWER room. Indoor Circuit Fitdriv-e has a professional indoor circuit equipped with all the necessary security measures. There will be six single-seaters and a battery charging area where the single-seaters will be parked. The length of the circuit is 750 meters, and the security distance between cars must be 250 meters so there will be a maximum of three ART20-e running simultaneous- ly. We will have two extra cars. Staff To ensure the proper functioning and maintenance of the cars, as well as safety on the track, we will have a specialized staff: • Circuit traffic staff: exit flags and auxiliary pit. • Security staff: help in case of accident. • Circuit maintenance staff. • Car maintenance staff.
Vehicle and driver equipment 37 • Push Bar: each ART20-e will have a removable device (called the push bar) that Market Plan attaches to the rear of the vehicle and allows two people to push and pull the vehicle while standing behind the vehicle. • An approved fire extinguisher will be mounted to the push bar so that it is quickly accessed. • Two pairs of high-voltage insulating gloves and a multimeter with two 4mm banana plug test leads rated for 1000V CAT III or better will be atta- ched to the push bar. The High Voltage (HV) gloves will be protected by a case or similar means from mechanical damage, humidity and sunlight. It is compulsory to be able to open the case without using tools. • Quick Jack: each ART20-e will have a removable device (called the quick jack) that lifts up the vehicle, so that all driven wheels are at least 100 mm off the ground and the vehicle is adequately supported. All non-driven wheels must not touch anything else than the ground. The lifting of the vehicle with the quick jack must be possible by one person and not require actions other than positioning and operating the quick jack itself. In the lifted position the vehicle must stand securely and stable and the quick jack must be locked and secured. This must function without the support of a person or additional weights. • Driver Equipment: the equipment specifi ed below must be worn by the driver at anytime and the cockpit with the tractive system must active at any time between starting the driving session and either finishing or abandoning it. • A well-fitting, closed face helmet. • A balaclava which covers the driver’s head, hair and neck, made from acceptable fire resistant material or a full helmet skirt of acceptable fire resistant material. • A fire resistant one piece suit, made from a minimum of two layers that covers the body from the neck down to the ankles and the wrists. • Fire resistant underwear (long pants and long sleeve t-shirt). This fire resistant underwear must be made from acceptable fire resistant material and must cover the driver’s body completely from neck down to ankles and wrists. • Fire resistant socks made from acceptable fire resistant material that co- vers the bare skin between the driver’s suit and the boots or shoes. • Fire resistant shoes made from acceptable fire resistant material. • Fire resistant gloves made from acceptable fire resistant material. • Arm restraints are required and must be worn so that the driver can relea- se them and exit the vehicle unassistedly regardless the vehicle’s position.
All driver equipment must be in good conditions. Specifically, it must not have any tears, rips, open seams, areas of significant wear or abrasion or stains which might compromise fire resis- tant performance. T-shirts, socks or other undergarments made from nylon or any other syn- thetic material which will melt when exposed to high heat are prohibited. Fire Extinguishers: each ART20-e will have available for them at least two dry chemical/dry 38 powder fire extinguishers with a minimum firefighting agent capacity of 0.9kg. Extinguishers of larger capacity (higher numerical ratings) are acceptable. All extinguishers will be equipped with a manufacturer installed pressure/charge gauge. Hand held fire extinguishers are not allowed to be mounted on or in the vehicle. Market Plan It has to be clarifyed that we will provide the users with all the necessary security material, which has been chosen according to the FSG regulations. Safety Ensuring our clients’ safety is a key objective of our project. This is why, in this field, our referen- ce could be no other than Formula1, the elite racing competition. Due to M.Schumacher’s accident in Silverstone ‘99, in which he suffered serious injuries to his right leg by hitting a pile of tires after Stowe curve at a speed of 200 kilometres per hour. TECPRO company started their research in shock absorption materials. It took them 6 gruelling years to develop their product, which was licensed by FIA in partnership with German safety group DEKRA. A year before being used for the first time in the Italian circuit of Monza, during the 2006 Grand Prix, French barriers were installed in the Paul Ricard practice track. Today, several circuits such as Singapore, Monaco, Abu Dhabi and Montmeló have these security measures. The aforementioned barriers are formed by 2-coloured blocks with a tongue and groove as- sembly. Depending on the curve’s danger risk they are placed in rows of 1, 2 or 3. Each block measures 150 cm long, 120 cm high and 55-60cm wide and are made from highly resistant and flexible plastic. The company carried out several tests jointly with German company DEKRA, before FIA had given their permission, at different speeds (from 60 to 218 km/h) and they reached various conclusions: • Deceleration of G-force was superior to that of the old-fashioned walls of tires and other outdated systems. • They do not break or explode in case of an accident. • They do not allow entry of vehicles. • It is possible to remove the car manually.
Having this kind of protection systems has clear advantages and hardly any or no drawbacks at 39 all. The installation is much simpler than that of the rows of tires and the same can be said for the repairs. Also, it is much cleaner as litter is not accumulated. Market Plan TECPRO offers different types of settings which are changed depending on how dangerous the area is. In our case we have opted for TEC settings for straights and TEC2Plus for curves. This safety system reduces injury risk to the minimum. Even in case of minor injuries being sus- tained, the driver would receive instant medical attention as we would have a nursing area next to the circuit. In case of a serious accident, an area has been reserved specifically to enable helicopters to rescue the patient and swiftly transport them to the city’s hospital. Technical Explanation As stated before, the energy obtained of eco-power machines will be stored in batteries that will be used in the single-seaters. Fitdriv-e will have 5 single-seaters available but only 3 of them can be ran simultaneously. In order to provide energy to these single-seaters, 10 batteries are going to be powered continuously with the purpose of satisfying the demand. In the rare case of all batteries being fully charged, the energy produced by the users could be used to feed the gym’s own electric grid. In any case, electric energy will not be poured into the public grid for substantial reasons such as law and technical problems. The following figure shows a simplified model of the gym’s electric grid: ECO-POWER ROOM BUS DC BATTERIES INVERTERS GYM E. M. DC RST CONV. G G
Market Plan There are 4 possible power flows: • From eco-power machines to batteries and from batteries to the single-seaters: these machines will generate a direct current which will be converted and poured into a DC battery bus which, in turn, will power the single-seaters batteries. The batteries will be placed in the single-seaters and they will be ready to drive. 40 • From eco-power machines to batteries and from the batteries to the gym’s electricity grid: this will happen when a battery is already charged but it is not going to be used in short terms. The energy will be poured into the gym’s electrical grid in order not to be wasted. • From the electrical grid to batteries: when the energy obtained through the eco-power machines is not enough, the electrical grid will be used to power the batteries. • From the gym’s electrical grid to batteries and vice versa: this situation exists when a battery needs to be immediately powered but at the end it is not used. These energy will be returned to the grid in order to save energy. In the last two cases, an economic measure will be applied. At night, electricity is cheaper, the- refore, the batteries will be programmed to be powered at night in order to store this energy and use it when it has become more expensive. Storing Energy Even though storing energy is expensive due to the equipment that is needed, we avoid the energy losses when the energy generated in the eco-power rooms is not enough, using the energy generated when this room was giving more power than it was needed at that time. And given the case that the batteries are not needed in the single-seaters, electrical costs will be reduced by using them to pour their power into the gym’s electrical grid. Technical Solutions If the energy is needed to supply the gym, the lighting should be disconnected from the grid and start feeding it from the battery very quickly so that it is not noticeable that the lights have gone out, in order not to have unused energy stored in the batteries.
Example (1) 41 We have eight batteries, six are charging and two are charged. We use the two charged batte- ries to power the two cars and the remaining to supply the gym. Market Plan Example (2) We have all 8 batteries plugged in. If we do not have batteries charged on time using the eco- power energy, we can use the power from the electrical network. Technical Remarks • The batteries are charged outside the car and once charged are placed inside it. • Battery life: 30 minutes (the duration of the Endurance). • Having very large batteries would not be functional because it would take a long time to get them charged. • Battery charging time (450 V at 15 A · h): 45 minutes - 1 hour. Taking less than 1 hour to get charge is not good for the baattery’s health. Exceptionally (maximum once a mon- th), if strictly necessary, it could be charged in 20 - 30 minutes. • If a person works at a power of 100 W (energy units) in an eco-power machine, he could recharge a whole battery in 67.5 hours, since he would have managed to genera- te 6750 W · h. • Battery power: 450 V× 15 A∙ ℎ = 6750 W∙ ℎ • It would take 68 people working at a power of 100 W or 34 to 200 W to fully charge a battery in one hour. Other facilities Apart from the eco-power room and the circuit, fitdriv-e has a multitude of facilities to carry out all kinds of activities: • Device training room • Free weight room • Two rooms for live courses and group activities • Heated indoor swimming pool • Spa • Nutritionist consultation • Physiotherapy consultation
Market Plan Business Model Fitdriv-e was born as a new business line for the electric single-seaters of ARUS Motorsport. The passion for sports and health has led us to go one step further and give back to the envi- ronment all that it provides us with our sustainable and adapted sports center. ARUS Motors- port will provide the six ART20-e single-seaters and the initial investment for the construction 42 of the facilities. Fitdriv-e and CBM “A circular business model articulates the logic of how an organization creates, offers, and deli- vers value to its broader range of stakeholders while minimizing ecological and social costs. Circular businesses no longer focus mainly on profit maximization or pursue cost-cutting throu- gh greater efficiency in supply chains, factories, and operations as the primary corporate objec- tive. Instead, they concentrate on redesigning and restructuring Product-Service-Systems from the bottom up to ensure future viability of business activities and market competitiveness. Circular businesses are deeply involved in the product usage phase; they generate revenues through provisioning services instead of selling physical products; they rethink the conventional producer-consumer-relationships, value creation activities and the structure of value chains; ecological and social factors complement the overall business culture and philosophy. The move to a circular business model is an example of a fundamental change, which requires a new way of thinking and doing business”. “Circular business models are special in the sense that they look for value creation in places usually of little interest to companies that operate in the traditional linear production para- digm.” In Fitdriv-e we have both a social and ecological commitment. Fitdriv-e is committed to the en- vironment by having eco-power machines, electric single-seaters and solar panels. Customers are also committed as they decide to do physical activity and benefit the planet at the same time.
Tariffs Our main source of income will be based on a subscription system, we will offer two different tariffs: CLASSIC PREMIUM 43 119,99 €/month 139,99 €/month 12 months minimum contract term 12 months minimum contract term Market Plan You get 1 ARUSCOIN for every 100 meters tra- You get 5 ARUSCOINS for every 100 meters veled with the car in the last 4 races traveled with the car in the last 4 races Direct access to the eco-power room Direct access to the eco-power room Possibility of access to the circuit Possibility of access to the circuit Possibility of access to the rest of the facilities Possibility of access to the rest of the facilities Other income sources • Merchandising ▪ Fitdriv-e bracelets ▪ Collaborations with sports brands for the sale of sportswear with the Fitdriv-e logo (Fitdriv-e x Adidas) ▪ Collaborations with casual clothing brands for the sale of sweatshirts and T-shirts with the Fitdriv-e logo (Fitdriv-e x ASOS) • Coffee shop • Vending machines of products for athletes • Fitdriv-e microfiber towel vending machines • Vending machines for locks for lockers
Pricing First, it is important to clarify that the methodology explained below affects only the most basic fee. The idea we had in mind was to establish a range of prices where we could select the most inte- 44 resting one for the company. For this, we have decided to take an initial point, where we could say our service is profitable, and a final one where our official price is still competitive. It was difficult to decide, on one hand, what price could ensure that our service is profitable and promising five years ahead; On the other hand, what numbers could fit to what we are offering in order to satisfy potential customers expectations. Market Plan Initial Price After a large war of ideas, it was established that the minimum price we could set in order to ensure that the service is profitable and promising will be the one that, offering only the basic fee, gives us a positive EBITDA in the second year. This means that our incomes have to be able to cover our operative expenses in this year, despite the fact that amortizations and other ex- penses make the exercise negative. This price we are talking about is 110,60€. Final Price For this, we have first studied the price offered by the competition. We included a service where you could, twice a month, drive a competition vehicle such as the ART20-e. Also, we offer physical activities from diverse fields. This investigation was not easy to be carried out, because this was what differentiated us from other competitors, the extra- vagant way of uniting different sports activities like the one we have achieved. Anyway, after comparing many similar companies and prices, we have finally obtained 145,97€. Conclusion Being established these two prices, it was the moment to study what we were offering, how we were offering it and making a decision. After general agreement between important charges of the company, the price was finally sett- led at 119,99€. In order to establish the plus fee, we have studied what price is equivalent to what we offer, settling it at 20€ plus, which gives us a final price of 139,99€. In this way, we continue to achieve a price at the height of what the competition offers.
Capacity 45 We have to be able to supply all our customers. Therefore, we have to limit the fees que can Market Plan offer, in order to make a good and personal attention in our service. This study has been made by continuous changes and iterations to obtain the final decisions that gives us a good number of final fees compared with the correct attention to them. In order to estimate fitdriv-e capacity, that is, the maximum number of possible members, we have to look at the bottleneck, which is obviously the circuit, since only 4 cars can run simulta- neously, while in the eco-power room and in the rest of the sports facilities the capacity is much higher. Use cycle of the circuit After some studies, we decided to make an average use cycle of our circuit per customer. This one has been settled in 2 weeks. On one hand, we offer 3 kind of coupons to redeem in our main service: 10min, 15min and 20min one. Which, along with the percentage of usage, gives us an average time of 14,25min. Adding up the 5min of preparation for the next pilot to drive, this average time per customer given is settled in 19,25min. On the other hand, knowing that we open 10h the working days and 12h the non working days, we can assume that we can offer 31 sessions of working days and 37 no working ones. To sum up, during two weeks we can offer 458 sessions per car. But we have to add two impor- tant criteria, that we are racing with up to three cars and that we have to include a delay coeffi- cient per cycle, which is 0,94. Finally we can assume 1285 sessions per cycle. Final total fees As we know, this kind of services have groups of no constant people, people who go at another pace, lesions… We have been forced to study this situation in order to offer a number of fees that let us satisfy our customers’ necessities, but which give us enough money input. This study finished with an amount of 2294 final total fees.
Sales Curve After establishing our final prices to the two different fees, it has to be explained how we are planing to build up customers loyalty and how we will estimate our incomes. Customer loyalty 46 For this, we have used the most common incentive in this kind of service, adding discounts. We have divided these discounts in three groups: Market Plan First of all, we decided to give a 50% discount for those who subscribed on the landing page we distributed with the polls. Secondly, we want a quick increase on the number of customers, so we will offer a 30% dis- count exclusively the month we officially open. Acolfnuedsaiofcinnhatyhlleyaa,tra,afetgxeBo121creoe...s067sdpt022ttu059sdto...h078ilnue716gt431lia,,,ot931hsn146tewy€€€meoaauLr11rlikdk..w398eeb577hltye008ea...rtn117eo403dw888aa,,,de423nd052aelax€€€ypz1ei5Wnc%1gt.o086tdtr977oshi4s50tehc...115awo454vue666ena,,,t272ak160ocehnr€€€imeovnoeendtmhosou,nrwtmheaocxfaimtmhueemttohnitruhdmeqbcuoeanrr-toefr customers. 3.568.160,78 € 2.683.120,03 € 1.490.103,76 € 3.828.978,43 € 2.879.244,89 € 1.599.024,12 € Incomes ToYeEsAtRim1ate the1in.0c2o9m.7e7s3,,w36e€firstly87e8s.t7a3b8li,s3h2e€d the6li7fe5t.1im46e,2c6yc€le, taking into account the pro- mYoEtiAoRns2we had1d.7e0c5id.8e6d4,t1o4o€ffer1, .d3i5v0id.1in0g8,t2h0e€m in t8h7r0e.e55sc6e,7n0ar€ios.. This was how we finally esYYtEEabAAlRRish34ed the23n..u5662m80b..01e16r01o,,97f 18po€€ten12t..i69a87l 03cu..11s42t80o,,m0453er€€s w11h..o4099w04..o11u40l36d,,72c61om€€ e to our centre. KeYeEpAinRg5in mind3.t8h2e8n.9u7m8,b4e3r€of p2e.8o7p9le.2w44h,o89ch€oos1e.5e9a9c.0h2f4e,e12on€ the landing page, to estimate the final proportion on them; the prices we finally offered and the numbers obtained in the life- time cycle we have finally estimated the incomes which we are most likely tol get in these three different scenarios. Best Likely Worst 3.650.000,00 € 3.150.000,00 € 2.650.000,00 € 2.150.000,00 € 1.650.000,00 € 1.150.000,00 € 650.000,00 € 150.000,00 € 1 2345
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Market Plan Marketing Strategy Analysis of the marketing strategy Due to the exclusiveness of our product, a specific marketing strategy has been chosen for our 48 market niche. The positive point of this method is that in addition to increasing sales because the advertising reaches a great amount of potential customer, it minimises the probability of failure. This differentiation of the market segments allows us to define the profile of our poten- tial clients, which provides a series of advantages in the marketing strategy, being very useful when it comes to: • The availability to develop a commercial strategy as suitable as possible to the target. • To ensure an increase in customers loyalty to the product, by adjusting to the customer segment needs. Definition of our customer profile The justification of the marketing strategy for our products is based on the market segmen- tation carried out when estimating the number of potential customers. It has been taken into account that the segment must be clearly differentiable and identifiable, stable in the long run and useful for the application of our commercial strategy. The process that has been followed to justify that strategy consists of the following steps: • Explanation of the segmentation variables • Development of descriptive profiles of each segment • Evaluation of the segment’s attractiveness • Identification of the best strategy to access the target segment A. Explanation of the segmentation variables The definition of the client’s profile will be based on the results obtained from all the data collected from the responses of the 391 subscriptions of the survey. With these analysis we will be able to define a group of variables to evaluate its profile. When selecting the variables for market segmentation, a series of criteria differentiated between general (common to the entire population), specific (oriented to our product or service), objective (provide quantitative infor- mation) and subjective (provide qualitative information) criteria have been taken into account. • General/Objective: geographic, demographic and socioeconomic. ▪ Gender ▪ Age • General/Subjective: related to your personality or lifestyle. ▪ Physical activity routine ▪ Interest in motorsports ▪ Karting habit
B. Explanation of the segmentation variables 49 Of these 5 variables shown before, all were used in the market segmentation and definition of Market Plan our product. Taking into account all the conclusions collected, we know that: • 73% are men and 27% women • 60% are between 26 and 39 years old, 33% between 40 and 60, and 7% be- tween 16 and 25 • 76% are interested in motorsports, 24% are not • 73% do more than 200 minutes of exercise per week, 24% do between 60 and 200, and 3% do less than 60 minutes a week • 65% are usual karting users and 35% are not C. Evaluation of the segment attractiveness To summarize, an average member of fitdriv-e may be a man between 26 and 39 years old, interested in motorsport, who exercises regularly and often goes karting. There is also a significant percentage of people between 40 and 60 years old. D. Strategy As we can see, our average client is of working age, so we will focus our strategy on places and platforms frequented by workers, reducing resources in the university world. Studying the routine of this customer profile, our advertisements will be positioned in places such as office buildings, gyms, karting circuits, parks, sports centers, motorsport events or races…). Not only offline, but also in audiovisual platforms: local TV of Copenhagen, Instagram, Facebook, Youtube or Twitter. Brand agreements will also help our business, collaborating with brands such as Adi- das, Nike or ASOS. From food brands to selling points, any brand which is settled in the sport world and could be related with our product is a good option for this business.
Market Plan Advertisement Television Based on the global strategy we have decided to allocate a total 30% of the marketing ex- penses on TV. We would have the promotional ads of fitdriv-e. These announcements will be 50 broadcast both on general channels (DR1, DR2, Berlingske…) and on sports channels (DK4, BE TV…). The ad formats that are going to be launched on the different channels are the following: • Conventional spot: With pieces of ads of 60, 30, 20 and 10 seconds, these will be dis- tributed gradually over the year starting in the strongest seasons, so that viewers are able to subscribe to fitdriv-e if they wish. We will elaborate the conventional planning by distributing the ads in all the channels men- tioned before, always in a second-time schedule from Monday to Friday where the programs broadcast are more familiar and at day-time during the weekend.
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