Nutra-Sports Mixing Station and Supplements James Teresa Brian

Nutra-Sports Mixing Station and Supplements James, Teresa, Brian, & Staci

Location: • Between 24 Hour Fitness and Time Out Sports in West Park Plaza

Mission Statement: To provide customers with economic, high-quality athletic supplements with ease and convenience of a protein mixing station.

Objectives: • • • Improve people’s health and fitness awareness through nutrition and better living Disseminate factual, accurate information to our customers Obtain 35% of the 7, 000 members at 24 Hour Fitness as well as other fitness oriented people 3% of the 2, 450 customers making rountinized re-buys 2450 x 50%=1225 customers/30 d=40 customers a day @ $40=$1600 $40. 00 per customer per visit (monthly) number came from GNC also stated that half of their clientele purchase creatine/protein monthly Charge $3. 50 a protein shake. 74 customers (3%) buy each day turns over $259. 00 x 30 = $7770 per month

Competitors: • • Bonanza Health Foods All American Nutrition GNC Montana Harvest Powerhouse Gym Mary’s Health Foods The Good Earth

Target Market • Gym members including – – – Business people Runners Bodybuilders Fitness Enthusiasts Athletes • College, High School, Semi-Pro, Amateurs Age Range of market: 15 -70 Female and Male

Business Men/Woman – New-task buyers Convenience Needs: , quick service, (in and out) competitive prices, taste, curiosity, sociability, achievement, esteem Attitudes: Upbeat, seeking education on different products. Location: convenient for the main target audience (24 Hour members)

Runners, Fitness Enthusiasts – Straight re-buys on monthly supplements – Due to respective constant goals. Needs: Quick results, convenience, happiness, self-satisfaction, personal fulfillment, pride Attitudes: Quality in product, willing to try new products Location: close to workout centers, easily accessible, conveniently located to Time Out Sports (Rimrunners headquarters)

Athletes – Modified due to periodization Needs: variety of supplements, education information for different products, convenience, fame, prestige, selfsatisfaction Attitudes: eager to see results, willingness to experiment with new products to help them gain the competitive edge Location: Centrally located to all high schools and colleges/gyms

Bodybuilders – Modified re-buys on shakes @ protein station – Straight re-buys on monthly supplements Needs: Several types of products, competitively priced, convenience, status, respect Attitudes: Looking for new products to help improve their weaknesses, driven, goaloriented Location: Conveniently located to the largest gym (4500 members) in Billings and surrounding areas.

Building Expenses • • $3200/month rent Utilities are shared throughout the mall. Average is $200. 00 for 320 square feet. $64. 00/year for insurance on a million dollar policy (quote from Claredon) Employee Wages 2 fulltime managers @ $9. 00=$1440 per pay period 2 fulltime employees @ $7. 00=$1120 per pay period 2 part-time employees @ $6. 15=$492 per pay period $1440+$1120+$492=$3052 per pay period employee wages Total Fixed Expenses Per Month $6, 276. 00

Products • • • Creatine (CGP Metabolic Nutrition) Protein Powder (Optimum) Shakes (varies per customer) Meal Replacements (Mass-Tech) Thermogenic Aid (Hydroxycut w/caffeine) Non-essential Amino Acids (Mass Amino Acids)

Product Expenses • Protein (Optimum) – 10 lb $51. 89 ws $80. 00 retail – 5 lb $26. 36 ws $45. 00 retail – 1 lb $7. 19 ws $12. 00 retail • Creatine (Metabolic Nutrition) – 1200 grams/240 servings $67. 00 ws $75. 00 retail – 800 grams/160 servings $48. 00 ws $62. 00 retail – 400 grams/80 servings $28. 00 ws $38. 00 retail • Hydroxycut – 210 capsules 52 day supply $37. 95 ws $55. 00 retail • Meal Replacement – 5 lb tub 20 servings $37. 45 ws $50. 00 retail • Mass Amino Acids – 125 servings $32. 75 ws $46. 00 retail

Projected Revenues from Products • • • Creatine: $13. 85 Protein: $10. 67 Hydroxycut: $17. 50 Meal Replacement: $12. 55 Mass Amino Acids: $13. 25 40*$67. 82= $2712. 00 per day 2712*30= $81, 384. 00 monthly 81384*12= $976, 608

Shake Expenses • Creatine/GCP =$67. 00/tub (240 servings) 1 serving per shake. . 28 cents per shake cost • Protein= 1 10 lb bag for $51. 89 (160 servings) 1 serving per shake. . 32 cents per shake • Milk $2. 63/gallon • Chocolate Milk $3. 50 11 twelve ounce servings. 31 cents per serving • . 92 cents per shake

Shake Revenues • . 92 per shake @ $3. 50 • $3. 50 -. 92=$2. 58*74 customers/day=190. 92 per day • $190. 92*30 days=$5727. 00 per month • $5727. 00*12 months=$56, 781 per year

Perceptual map Quick & Convenient Nutra. Sports Bonanza Low Price High Price MT Harvest The Good Earth All American Nutrition Powerhouse Gym Mary’s Health Foods Slow & Out of the Way GNC

Promotion • Direct Advertising – Flyers on car windows in mall parking lot – Direct mailing to 24 Hour Fitness members – Mall Directory Stands – Radio Advertising – Newspaper Advertising (Gazette/Outpost) – Program advertising (e. g. Billings Bulls/Mavericks) • Publicity – Sponsorship of different athletic events – Word of mouth, referrals – Convenient

Promo cont. • Sales Promotion – Discount for referring – Free Membership Club – Buy 9 get 10 th free at shake station – Coupons in newspaper • Direct Selling – Remind people of products – Persuade people to try new products – Inform people of changes in products

Means End Chain • Product: Nutra. Sport • Attributes: Close to 24 Hour, centrally located in Billings, convenient, lower prices than GNC • Consequences: – Physical • better health, better looks – Psychological • happy, better self-esteem • Values: low prices, personal service, convenience

References • • www. wholesalesupplements. com www. gnc. com www. metabolicnutrition. com www. 24 hourfitness. com