Situational Analysis

The Company:

Moikit: Location

Moikit is a Chinese based company, physical address 701-703, Building #A,

Bao'an Internet Innovation Industrial Park, 2005 Xingye Road, Xinxiang Sub-

district, Bao'an District, Shenzhen (Exit D, Pingzhou Station, Metro Luobao

Line) Postal Code: 518101 Tel: 0755-23289001 Email: info@moikit.com +86-

4006-585-580.

History of Moikit the Seed

This strategy constitutes a cumulative 12 years planning and creating. The

following are expansions into the cost to profit analysis realization, and

implementation of active phases with production, marketing, and supply

chain determinations for the customer of Moikit. A small design company

Moikit’s product, “The Seed”, is an outsourced manufactured product with

two stages of production. The Smart Cap 95% made in China and the metal

bottle bottom piece made in Japan.

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Moikit is faced with strong competitors in the American market. Attempting

to reach with this particular product an untapped market. Larger existing

manufacturers produce similar technological features and inferior quality

bottles.

Moikit’s goal is to use the $582,623.00 raised from initial donations, to

produce products to distribute to Kickstarter and Indiegogo campaigns. Next,

Moikit plans to produce product, develop distribution and gain market share

in the USA with the remaining funds through production, marketing and

distribution.

The Seed Mission Statement:

“Moikit goals are to create the most affordable smart bottle to help people

stay hydrated and developing healthier lifestyles. Seed’s innovative Air-

Elastic technology monitors the user’s daily water consumption by

measuring the amount of air remaining in the water bottle. Using smart

algorithms based on an individual’s metabolism, Seed’s digital lid and

connected apps remind users when they need to drink more water. Seed also

measures water temperature, provides the user with hydration reminders,

and links with health and fitness apps all while retaining the form and

function of a classic water bottle. Seed can be connected with numerous

fitness apps, including Apple Health Kit, to allow users to keep track of their

hydration on their preferred platform.”

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Who is Moikit?

Moikit is an internet supplier and web design company. This is based on the

end user agreement (item 1 Moikit User Agreement referred to as mecare

(Moikit)). Moikit is specializing in application development mecare agreement

2 2.1. Moikit has endeavored to create a smart water bottle called the Seed.

The Seed helps keep people accountable to their hydration needs. The Seed

Water Bottle helps keep track of their daily water intake. This is a great

product as it shows just how much water you are drinking during the day.

When losing weight, the best way to start is by drinking more water. By

drinking water, toxins/chemicals are released from your body. Drinking water

helps boost your metabolism, cleanses your body, and acts as an appetite

suppressant. It will help your body to stop retaining water which will result in

losing more weight. The recommended amount of water to drink is eight to

ten glasses of water per day, keeping your body hydrated and helping you

lose those unwanted pounds. (Bjarnadottir) From all of the researched work,

there really aren’t any environmental issues. The water bottle has a copper

inlay and nitrogen welding techniques that help the water bottle maintain its

shape/design with the stainless premium steel. (Prweb) Moikit’s goal is to sell

The Seed Smart Water Bottle in America. The following is analysis on the

product and how the product The Seed will be able to compete. (Louis

Zheng)

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Marketing Analysis

Seed’s selling method is based online through their company website rather

than a brick and mortar. Customers’ can order the Seed through their

company website: Indiegogo for $65 USD + tax and shipping, ending up to

be around $70. Moikit partners with website companies that use crowd

funding such as Kickstarter and Indiegogo. Consumers can support the Seed

through crowd funding through Indiegogo or Kickstarter until February 9th,

2016. Some of the incentives to purchasing the Seed through the Kickstarter

were:

Introductory Savings of 39% off of the retail price

Ships worldwide, Restrictions apply.

Offer a variety of sizes and colors.

Two Seed Smart Water Bottles for the price of $99 (saving $30-$50)

Other products that Moikit sells are Cuptime 2. Cuptime 2 is very similar

to the seed. It can calculate your next drink time based off of your water

intake. This is based off of the data you have entered. It asks you to enter

personal information, including the amount you exercise and your

environment. If you have a water shortage it can vibrate to alert you and

help you get in the habit of drinking water.

With over 6,071 views of YouTube, Moikit has been successful with

Cuptime 2. Some of Moikit’s products and brand lines are software and 4 | P a g e

smartphone apps. When purchasing these products such as the Seed or

Cuptime 2, you need to have an app that will work with the software on your

smartphone device. The app is free and is compatible with smartphones such

as your android and I-Phones.

Moikit uses and indirect online approach to help market their product

through social media sites such as Facebook, YouTube, Indiegogo, Instagram

and Twitter. Moikit promotes through crowd funding websites such as

Kickstarter and Indiegogo. Through online promotion, Moikit will be able to

cut down on advertising costs and sales promotions. (Louis Zheng)Indirect

Competition **ADDED*

Social Media Presence

7 Followers on Google +

94,000 total views on You Tube (30,000 views from California Google

Analytics)

Indiegogo 333 subscribers

Kickstarter 1000+ subscribers (25% signed up from a California IP Address)

Instagram 15 posts 614 followers Moikit follows 59

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Facebook 9571 people “Like” Moikit (Approximately 20% from California)

Twitter 1187 followers 54 tweets following 40, likes= 37

While initially the numbers looked low for social media. A comparison of

competitors found equal numbers of Views and Likes in similar time frames

for like products.

Industry Analysis

The product of The Seed, fits in the categories of fitness, health, and gyms in

the US. It’s all operated in exercising, physical fitness conditioning,

recreational sports, fitness instructors, and operators involved in facility

management. The supply chain overviews all the key drivers being

participated in sports, spent time of leisure,  per capita disposable income,

adults from ages of 20-64, and a yield on a 10 year treasury note. The

demand industry is primarily fulfilled by consumers.  Moving on to the supply

industry, it all consist of manufacturing of sporting goods, gyms, exercise

equipment, and involvement of contractors that work with heating/air-

conditioning systems.

The nearing future over a five year period to 2021, this industry has a

success outlook, benefited from consumer spending with the help of

discretionary income. The increased discretionary income allows gyms

facilities to attract more memberships, keeping personal/group trainers busy,

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and fitness classes growing in popularity.  The forecasted revenue is

expected to grow at a rate of 3% at $31.5 billion dollars, meaning more

consumers are buying out higher cost services. These services include health

services, trainers, and guidance towards nutrition.  An expectation of profit

growth from 10.4% in 2016, is expected to reach up to 12.4% by 2021.

These increases are bound to be success from higher marginal services,

group training classes, and bolstering retention rates. 

The industry life cycle is currently continuing to grow, which defines

consumers boosted interest for fitness and health.  Public health awareness

is brought by fitness and health campaigns that keep consumers more

aware, and view gym memberships as a vital expense. Future growth is

more than likely to continue in participation of women and men, dealing with

sporting events within communities.  Another key feature towards growth in

the industry’s revenue, which is continuing to grow quicker than the

economy, rapid changes in technology, and growing popularity of new

products and brands.

Competitive Analysis

The seed was created by Moikit. This campaign is a successful crowd funded

enterprise through the website, Indiegogo. Seed’s Indiegogo was launched

back in November, 12th 2015. This campaign was set to run for 30 days. The

Seed had hoped to raise $30,000 in order to fund mass production. This

funding campaign has raised over $582,455 USD. This amount is well past

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their goal of $30,000 USD. There some several Smart Water Bottles on the

market today, making it a competition for the Seed. While creating this

product, Moikit designers were looking for a Smart water bottle that would

help consumers meet and maintain their hydration needs. (Louis Zheng)

Consumers are wanting a water bottle that is durable, reliable, and will live

up to their expectations. Seed started to ship to their customers in January of

2016. Moikit created the Seed so that it would meet and exceed consumers’

wants and needs. Some of the features of the Seed are, an LED touch screen,

a water intake reminder, premium stainless steel, 1-2 year battery life with

an Ultra-low power Bluetooth 4.0. It also is an air-elastic water consumption

tracking technology, a water consumption tracking feature, a stale water

warning, a temperature preservation and finally a copper inlay and nitrogen

welding techniques. The major competitor’s features and benefits that Seed

competes against are as follows: (Louis Zheng)

1. Thermos Smart Lid Water Bottle

Thermos is The Seeds leading competitor, as a global company founded in

1904, and have been selling everything from mugs, coolers, lunch products,

water bottles, food jars, and specialty items. Their main headquarters are

located in Schaumburg, IL. Thermos sells online as well as in sporting goods

stores global wide.

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Thermos’s products are sold in sporting goods stores. Last public record

before returning to private holds was 2009 during a buy-back of stock $259

million dollars in profitability. Even with the economic downturn of 2009

expected growth was 1 to 2% a year.

Thermos currently has a market share of 5.3%. (IBISWorld)

Thermos created a new product called Thermos Smart Lid. Thermos Smart

Lid was released on October 28th, 2015 and is designed with a smart

technology that will monitor your water intake and temperature. It

communicates through Bluetooth technology. This technology helps you

reach your daily hydration goals. Thermos is made from a BPA free, impact

resistant and durable Tritan polyester material. Some of the features for the

Thermos include connecting to your Smartphone apps, Smartphone watches,

Fitbits, helping you to stay on track with your goals and monitoring your

water temperature. The Thermos also has a micro USB socket that charges

up to a 12 hour battery life, and retailing at $60. (Product Specs) 

2. BlueFit Smart Water Bottle

BlueFit was established in 2012 by Jonathan Cook and David Morton. Their

main headquarters are located in Burlingame, CA. They mainly sell their

product online. BlueFit crowd sourced on Indiegogo. They have raised

$74,843 USD of $150,000 USD. They are working on expanding their

company and they ship worldwide. BlueFit is a smart water bottle designed 9 | P a g e

to track your water consumption on a daily basis. It will automatically record

data on your smartphone as well as record your time and the amount of

water that you drink. If you aren’t drinking enough liquid, The BlueFit, like its

competitors include features that have software that is compatible with most

android and iPhone. BlueFit is made out of glass with a silicon sleeve that

protects it from impact. BlueFit was released on September 25th 2013 and

has technology that allows you to enter information about yourself through

the app such as your weight, height, age, temperature and humidity.

(Cook/Morton) BlueFit retails for $59. (BlueFit Bottle)

3. Flow Smart Water Bottle

Flow came out in November 2015. Flow is only sold online but uses social

media sites such as Pinterest, Facebook and their company website, Gadget

flow. Its main headquarters were not applicable. Flow is an advanced

personal hydration device that monitors your daily water intake and reminds

you if you need to drink more water. Flow is a filtered water bottle made out

of coconut shells and a glass insert that helps you stay in control of your

hydration and made out of 100% of recyclable material. Some of the features

for Flow include environmentally friendly, connects to your smartphone or

smartwatch, helps you stay on track with your goals. This app also allows

you to enter you age, weight, height, activity level and your environmental

situations. It retails for $70. (Timms)

4. HidrateMe Smart Water Bottle

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HidrateMe was launched in 2014. The main headquarters are located in

Minneapolis MN. HidrateMe is sold primarily online using social media sites to

help promote their product. They use sites such as Facebook, Twitter,

Kickstarter and Instagram. HidrateMe is very similar to the Seed. It reminds

you to drink water throughout the day, glowing when it’s time to drink more

water. There is a companion app that helps you track the amount of water

that you drink so you can be sure that you’re getting enough. Some of the

features of this water bottle are dishwasher safe, has a replaceable battery

that will last up to one year, BPA free and leak proof. HidrateMe holds a max

of 24 ounces (710 ml) of water. Hydrate me is available in a variety of colors

such as Iceberg White, Bamboo Green, Ocean Teal, Crystal Pink and Obsidian

Black. It has far surpassed its goal of reaching almost $130,000. It retails for

$45. (Bell)

5. Sportline HydraCoach - Intelligent Water Bottle

HydraCoach was founded in 1999 by Craig and Kelly Perkins. Craig first had

an idea for this product when in 1996 he was climbing Mt. Whitney and fell ill

from dehydration at 13,000 feet. His wife Kelly, was also on a hike recently

after a heart operation, when she ran out of water four miles from the

nearest stream. Together, Craig and Kelly decided that they needed to

create a water bottle that would help them keep track of their hydration

intake and know just how much water they have left. HydraCoach is a

worldwide company that is sold exclusively online. They are a privately held

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company based out of California. It is an interactive water bottle that

calculates a person’s hydration needs. This product motivates you to reach

and maintain your hydration goals throughout the day. This product like

other competing products utilizes a smartphone app. They use social media

sites and their company website: www.sportline.com, and Amazon to sell

their product. It is a product that has been on the market for a while.

Features of this smart water bottle include a personal hydration monitor, a

drink monitor, your overall average consumption, a time tracker and a sip

tracker. HydraCoach retails for $25. (Hydracoach)

With research our team found that Sportline-HydraCoach are an indirect

competitor, being lower end in technology, and quality. Our team have

analyzed by comparisons of other products on the market. Our more direct

competitors are Thermos (our major competitor), BlueFit, HidrateMe and

Flow. We will tend to see Sportline-HydraCoach in stores such as Target

because you aren’t going to get that sales representation.

Economic Analysis

Costs of living expenses are primarily fuel and food costs that are directly

attributed to the performance indicators of key economic drivers like

disposable income. The United States Unemployment is marginal holding at

under 5%. On average the national outlook is good for the US consumer to

continue spending trends. Consumer spending is expected to continue with

compound growth of 3.06% over the next five years. (IBISWorld)

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This is a favorable condition as advancements in fitness app technology is

only ten years old. Smart Water bottles are a newcomer on the market at

four years. Business Insider reported stalled growth between 2010 and 2011

for these Tech toys. However, Fit Tech has recovered with 500% increases

annually in this market. (Analysis on SmartWatchs) Fit Tech sales were 3.3

million units last year, the market is very much in growth stage with a clearly

dominating company FitBit in the lead for wristbands. (Gustafson)

Political

The upcoming presidential elections for 2016 will be a factor for foreign

trade. Inflation may be an impact in the U.S. and China, while the U.S. is

estimated to have a slower consumer recovery due to replacement

technology utilization. All indicators show that after slower than expected

growth in the first qtr. Will still give way to stronger consumer dollar and

increased consumer spending (USA Today).

China has an open road towards sustainable growth and optimism into the

business areas from a rebalanced economy. The increase of high numbers in

growth from Asia, Latin America and Africa has been shifted by the growing

demand from China for iron ore, copper and oil. Most barriers to trade have

been lowered, education level of workforce have improved, and cellular

revolution has been almost signaled everywhere, and increased political

clearness. Most innovative and advanced economies are in need for a

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stronger government. Far reaching socialist movement into structural

reforms that are favored in simple solutions. For a restored political trust,

there is a demand for legitimate wage increases, better welfare and in all,

more jobs. Governments like China are investing in a stronger middle class.

Legal/Regulatory Analysis

The U.S.-China Trade in Advanced Technology Products states, “The U.S.

Census Bureau, had a total of $154.6 billion. All of the ATP products

accounted for 33.1% of total U.S. imports from China, compared with 19.2%

in 2003. Some see the large and growing U.S. trade deficit in ATP with China

as a contender that signifies the growing international competitiveness of

China in high technology. Others dispute this, noting that a large share of the

ATP imports from China are in fact relatively low-end technology products

and parts, such as notebook computers, or are products that are assembled

in China using imported high technology parts that are largely developed the

globalization of supply chains makes it increasingly difficult to interpret

conventional U.S. trade statistics.” (Wayne)

 The seed powered by Moikit, has a global user-patent for Air-Elastic water

monitoring technology. The purity of Seed comes from aero physics

technology, which measures the volume of air in the container.

(Moikit)The Seed’s smart lid technology is compatible with various bottle

shapes, functions and materials, including stainless steel, plastic, glass, etc.

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Powered by Moikit, while any water bottle can be put to place as a smart

device. (Moikit)

With social media being a dominant setting, a tech driven shift is keeping

cost pressure under control. Many startup companies have been putting up

strong growth numbers for recent years, yet the macro-economic sector has

been on a weaker side. This could be due to growth from low levels. Each

year changes with more and more consumers do more shopping on online

services like banking; meaning broader implications may be more

pronounced having greater impact on consumer spending. Profit margins

and prices are being pushed from existing firms adapting to increased

competition. (6 Factors)

Moikit as a foreign importer into the United States is required to maintain a

localized site with-in the United States. Hire and employee, US national and

maintain an US address for warranty and return complaints. (Customs and

Boarder Protection)

Addressing the issue of return and supply chain management to be

compliant with CBP. Here is the recommend companies that specialize in

foreign import and return. Ozburn-Hessey Logistics Based. Genco ATC.

Phoenix International Specialty: Reverse Logistics, Freight Forwarding and

Customs Brokerage.

By identifying the level of supply chain and company positioning on Patterns

of Collaboration Table one (Frayret). This will move the product from its 15 | P a g e

current position of Outsourced, Local Decision Making through Improved

Local Decision Making in the United States and end with Decision Objective

Alignment as the goal level for this product to stabilize too after launch.

Having identified the current level of collaboration we can meet the needs of

the company. The marketing campaign should be aliened to compliment the

developing supply chain not tax it.

Technological Analysis

Smartphones and its technology has become increasingly common

throughout the past few years. It has become a staple in everyday lives of

the generation X and Y consumers. According to A Portrait of Smartphone

Ownership, 64% of Americans now own a smartphone which is up from 58%

in 2014. This 64% is about two thirds of adults in the U.S who now use

smartphones and is up even higher from 2011 when only 35% were using

smartphone technology.

Further research showed younger demographics with higher income levels

are the highest users of smartphones with the demographic of ages 18-29

making up for 85%. 78% are college graduates and 84% are living in a

household with an income of over $75,000 per year. (Smith)

Mobile devices have become the primary usage for social media users. 80%

of internet users own smartphones with an estimated 2 billion to own one by

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the end of 2016. 7% of new emerging devices used to search the internet

are smart wristbands. Also with wearable technologies, 36% who own fitness

trackers in the U.S are 35 to 54 years old are mostly women.

With smartwatches, these owners are male between ages 18 to 34. With

these electronic devices and smart technology and income there is a

correlation between these two and their household incomes. 41% of the

fitness trackers have in income of over $100,000 and half of the smartwatch

owners made less than $45,000. (Gustafson)

Another demographic is the teenagers as they tend be online “almost

constantly”. The device of choice is a smartphone and the teens in the age

range of 13-17 say that they go online several times a day (56%). Almost all

of this age group has access to a smartphone, over two thirds to be exact.

Facebook is the primary source of social media that this market uses. While

Facebook is the most consumed social media platform this doesn’t mean

that this is the only one they use. 71% report that they use more than one

form of social media with Instagram and Snapchat being the next biggest.

Teens that come from higher income are higher users of Snapchat and

Instagram. While Facebook is still the biggest winner, status means

something. (Lenhart)

Older Generations also have a strong social media presence and can often

be forgotten in the tech world. Facebook leads age consumption by having

63% of users who are in the age range of 50-64 with pinterest accounting for

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27% of their users in this age range. These are top two social media uses in

the age range of these people. Income is a factor with this group as they

tend to have more money and disposable income and by looking at the

income ranges, pinterest has the most users with the higest amount of

income.(Lenhart)

Technology as a whole is a fast moving market and can evlolve quickly, there

will be ever changing trends and also fast advancing technology. Keeping up

to date with advancements in technology is the trend and gaining market

share will be important. As internet and social media progress certain trends

will become more popular in the coming years. Real time engagement is an

area that social media users thrive on and the response time becomes

smaller and smaller each year. 70% of Twitter users expect responses from

brands. 53% of those users expect a response in less than one hour. This

may become even shorter, when dealing with an issue or complaint.

Integrating faster response times by using advantages such as, social

listening and automation tools, which will help a brand establish an online

social presence over competitors. Along with this is having a platform like

real time events offered by social apps likes Periscope and Meerkat which

allow live broadcasts to all users/followers. This allows an almost

transparent, behind the curtain feel of how companies actually operate and

has more than 2 million users. (Beese)

Shifting to online commerce-focused features social media will play a bigger

role in sales and customer engagement in the coming years. These sales 18 | P a g e

have hit the $3 billion mark, climbing even higher as social media is

influencing purchasing decisions more than retail websites. Among the

social media sites using this avenue are Pinterest using their “buyable pins”

which allow users to purchase the product within the pin. Twitter has also

used this with their “buy button” by having users be able to purchase

products through tweets. Both Facebook and YouTube have also used these

ideas too. Online comments and reviews are key as well with consumers

being influenced by these posts. A total of 88% in consumers are influenced

by these reviews and comments. (Beese)

Socio-Cultural Analysis

Some of the socio trends affecting the Seed include health and wellness.

These trends are on the rise. Consumers are heading into the gym

purchasing more memberships, purchasing more Fitbits or smart technology

and necessities such as a water bottles. The generations that are frequenting

the gyms and sporting goods stores are X, Y and millennials (Accouting

Web). Sporting goods stores have an annual growth of 1.1%. There is an

expected annual growth until 2020 of 0.6% (IBIS)

California presented the most opportunity consistently ranking in the top 25

fittest states as rated by The ACSM American Fitness Index and CDC.

California had multiple cities represented in the top ten positions ranking

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highest overall since 2008. These rankings from ACSM were the source for

almost all of the articles written in The Huffington Post, The Washington Post,

USA Today and other highly cited publications.

The West Coast CA, OR, WA represents the 3 states found in the top 25 of

the ACSM with Portland Oregon being at the top of the list. While California

consistently placed more cities in the list than any other state.

Spread out over a population WA - Washington Total Population: 6,724,540

OR Oregon Total Population: 3,831,074 CA - California Total Population:

37,253,956 (GOV). Ages 20-24=2,765,949/ Ages 25-34=5,317,877 Ages 35-

49=7,872,529 this is a possible targetable market of 39% of California for

ages 20 through 49 (United States Gov).

Looking at these tangible target markets, Everest sees the multiple

generation’s opportunities such as:

Baby Boomers born between the years 1945-1964. Ages 50-71. This

generation of people are experiential, individualist, free spirited, self-

believers and look for self-fulfillment. Today’s baby boomers are healthier,

richer, and a preparing for a second phase of youth in their 50’s. As their

children move out their income can be focused elsewhere. They are also

increasingly a web savvy demographic.

Generation X was born between the years of 1965-1979. Ages 39-50. This

generation of people are rebellious, independent, have short attention spans,

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are multi-career flexible and have higher disposable income.

Generation Y, also known as millennials were born between the years of

1980-1994. Ages 30-44, Y is prematurely affluent. This generation are more

style conscious, tech-savvy, independent, needy and socially-

environmentally aware.

Millennials as those born in 1982 and approximately the 20 years thereafter.

TBD kids born in the last 10 years lack a designation. (Bump)

The Net generation was born between the years of 1995-present. Ages 15-

This generation is very web and technologically savvy, brand conscious,

community minded and pro-equality. This market is possibly under

represented though this generation is a little on the younger side, that

introducing the Seed to them will help create brand awareness and help

market the Seed.

S.W.O.TStrengths (Internal)

Successful crowd funding through Indiegogo raised more than 2,000 times funding.

High quality product made from stainless steel.- No BPH

Moikit is a web service and design company.

Experience Utilizing Social Media with sites such as

Pinterest, Facebook, Instagram and YouTube.

Powered by Moikit, sensor has a user patent.

LED touchscreen Works with Fit Bits and Fit

Apps.

Weaknesses (Internal) Web design company

- Outsourcing manufacturing

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Non-rechargeable battery- Custom made battery

Low representation Low interaction on social

media Supply Line/ Supply Chain

Undeveloped Low Capital

Opportunities (External) App and Fitbit compatibility Health and Wellness trending

in a growth stage

Generations X,Y,Z and Baby Boomers

Tech savvy wearables Low unemployment > 5% High Net Income (California)

- Men ages 18-34- Women ages 35-54

Threats (External) Election 2016 / 2017 Other smart water bottle

companies (Thermos, Hydrate me)

Low Price Homogenous Self- Serve Products (Personal Water Bottles)

Grab & Go Bottled Water (Pepsi, Coke, Nestle.

Based off of the SWOT , using across analysis and removing Strengths that

counter the negative threats and removing external factors that Moikit has

no ability to affect reveals a better understanding of how to reach the

identified target market. Initially the low interaction on social media was

deemed an internal weakness. While social Media responses seemed low, the

responses were over a three month period with little to almost no

advertisement. The Consumer Electronic Show was a driving factor in the

success promotion with little advertisement. CES represented The largest

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consumer B2B convention in electronics with over 170,000 visitors and

purchasing agents. Moikit was an overwhelmingly favorite winning A Best Of

CES Award at the show. This added to the success of the social media

campaign on Kickstart and Indiegogo. It’s High quality, low maintenance sets

this product apart from competitors with similar tech. Moikit’s product is

substantially of higher quality and will justify the final price as a

differentiating factor in placement within the market.

Marketing plan

Marketing objectives

Ideally team Everest would like to sell roughly 6,000 units monthly at $62

per unit. Everest would also do a price matching discount offer of $5 to the

first 3600 units sold to help boost sales. Through Amazon, Moikit would sell

around 600 units monthly at the MSRP of $75 per unit. Everest would like to

have 240,000 ads over a period of six months that would be viewed on

Tuesday – Thursday’s and Saturday – Sunday’s, equaling out to be $2,400 on

YouTube.

Target Market

Moikit’s marketing position after weighing the differences of Internal

Weakness actually works in favor of the type of modern social media

supported marketing campaign based on the target market. The identified

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consumer markets are Tech savvy, Health Conscious people with expanding

incomes. Men ages 18-34 and women ages 24 – 54 with an emphasis on

women 34-54.

Website tracking tools and observational count (where the profile was from)

and IP address indicated a strong presence of California. Respectively

California has the highest Population of all states at 40 million people and

the most condensed number of athletic stores national chains and privately

owned. California has a total of 36% of that population between ages 18-54

at almost a 50/50 ratio of men and women. This creates a targetable base of

14,000,000 people. California has seen wages grow at a rate of 1.2%

annually. All of these challenges actually creates the opportunity. Moikit

strength is its web based nature. Marketing with that strength in mind will be

prominent and crucial.

It is with customer education of product that the Seed will need to have a

sales representation in order to sell our product effectively. In order to sell

the Seed (B2C) Moikit will need to have Seed in stores such as Scheels,

Gander Mountain, Cabela’s and in local smaller sporting good retail locations.

These stores will have a higher level of quality and personal sales services.

Sporting goods stores represent a possible target market. With

unemployment being low right now consumers will have more disposable

income. Sporting goods stores have a similar target market to the Seed.

(IBISWorld OD5599)

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Now, team Everest is going to highlight some different market segments.

California has two strong market segmentations, both parallel to each other,

but differentiating the advertisement into 2 areas. They may be crucial to

aiding in the marketing campaign’s use of advertising dollars within Social

Media. California’s 40 million population is evenly divided by 22% under the

ages of 18 years, and 13% is 62 years or older. California represents a

population of potential customers of 25% target market a 10 million unit

share.

The tech savvy health concise California women ages 34-54 represent the

largest possible targetable market of 5,777,770. This market is represented

by the most employed of women being in San Diego, San Jose and

Sacramento. More than 80% have smartphones and Fitbit sales were

strongest at a staggering 14% of all sales around 2 million units over 5 years.

Nike posted strong sales with Nike Fit with the same group.

The tech-savvy, health concise California man age 18-34 represents the

largest possible secondary target market. A population targetable market of

4,622,221. This market is represented by being highly employed. Men’s

fitness representing the other half of the population. Similar outreach

reduces immediate advertising costs with both markets being from San

Diego, San Jose and Sacramento. California’s market is very fluid, travel is

common with this group. More than 80% have smartphones and Fitbit sales

were strong of all sales around 1.4 million units over 5 years. Fitbit posted

strong sales with the same group.25 | P a g e

Marketing Mix Strategies

Product

The Seed is a product of Moikit. It’s a hardware company that is committed

to building a healthier lifestyle in a smart way, by using state-of-the-art

materials, hardware, and software in every product. Some of the features the

Seed has are LED touch screen, a water intake reminder, premium stainless

steel, 1-2 year battery life with an Ultra-low power Bluetooth 4.0. It also is an

air-elastic water consumption tracking technology, a water consumption

tracking feature, a stale water warning, a temperature preservation and

finally a copper inlay and nitrogen welding techniques. Moikit is devoted to

helping its customers develop healthier habits for a brighter future. Moikit’s

design philosophy is to focus on the needs of everyday life in order to

promote a sustainable trend of healthy living with its customers. They craft

each product to meet practical problems with a modern solution.

Price

The Seed needs to be positioned as the highly valuable product that it is. The

higher costs incurred during construction unit contribution of $24.00,

demands a greater premium. The higher quality product image also supports

the value of the final MSRP of $77.00.

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Distribution

Distribution would be managed by the selected company of Moikit’s choice.

The recommended company that fits with all the needs is Phoenix. With the

cargo being secured at the dock in China. Phoenix would route the container

to a Los Angela’s Port. Handel the inbound United States Customs paper

work and transportation to warehouse and distribute via JIT to Amazon or

direct shipping to warehouse’s for large sales to national franchises. These

fees amount to 2.00 USD per shipped unit.

Phoenix also includes a return process included within this fee as a failsafe.

While initially the shipping expenses are higher due to the risk of return. At

the 2 year contract review Moikit can renegotiate the cost down as the

campaigns success becomes more defined or adjustments can be made

based on return needs.

Promotion

Based on the information and analysis Everest has done, the team was able

to come to the conclusion of using types of promotion consisting of B2C and

B2B along with social media marketing. Using this Data has allowed Everest

to come up with a concrete marketing plan that includes the implementation

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of the top 3 segmentation groups Everest is targeting. While the B2C will

consist of selling through Amazon and the B2B using gyms to sell directly to

potential customers this will all be done using product representatives known

as “Planters”. These Planters will be found and implemented using the

strong social media campaign.

Pull Strategy

Team Everest has decided to go the route of business to consumer (B2C) sell

the Seed online through the website Amazon. Some of the promotional

strategies that team Everest will be utilizing is social media sites such as

YouTube, Pinterest, Instagram and Facebook. Social media users are most

active on these sites on Tuesday-Thursday, Saturday and Sunday. The

reason is because people are visiting these sites to catch up on all the

activity from the weekend. People are out and about Friday-Sunday. Monday

is when people are active all day at work and getting back on a schedule for

the week. As a result, this is leaving Tuesday-Thursday and Saturday-Sunday

great days to catch up on all the activity. Also, Seed will look to use an

aggressive online social media campaign aimed at our specific target

markets of men and women. Using Sites such as Facebook, Instagram and

YouTube, Moikit will look gain a huge word of mouth from online endorsers.

During analysis Everest concluded that using the YouTube platform would be

best. YouTube is like a television channel in itself and is filled with health and

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fitness enthusiasts with various video content. These content providers

share the very same ideas and beliefs that coincide with the Seed. Along

with this comes a massive group of followers who listen to and consume

everything these YouTube Stars have to say. With the right people, Seed

can market their product to these stars who in turn will share their thoughts

and views on the seed. This makes for an endless line of marketing while

getting the word of mouth going on the Seed. While this is happening the

Seed will start being represented at multiple trade shows. One of the trade

shows that the seed will be represented at will be The Consumer Electronics

Show. With over 170,000 attendees over a seven day period, this will ensure

the seed will be well represented and seen. Other trade shows and

conventions Moikit will be represented at will be the L.A Marathon fitness

expo, Pasadena Fitness Expo, Mason Expo Fitness, Golden Valley Health

centers fit expo and Fit Expo. While being present at these shows, the goal

is to have content providers picked and ready to be at the Seed booth where

their followers and fans will have the chance to attend a meet and greet.

This will aid in attendance and also make is easier for newcomers who

haven’t witnessed what the Seed can do. While the content providers are

present, the advantage to have them sign on as a representative of Moikit to

become “Planters” will be taken. This will aid in spreading word about the

Seed.

What will be at the booth in order to attract attendees will be a giant

inflatable seed bottle with bright colors bringing attention to the booth.

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Along with this there will be two displays that light up when someone walks

past it, activated by motion sensor. These displays will have about 50 units

each on them and will cost around $3650.

Lastly Moikit will look to sponsor the L.A Galaxy which is the professional

soccer team in Los Angeles. This will make for a great way to reach the Net

Generation as these young kids have a liking for soccer and will be used as

an avenue to reach this target market.

Push Strategy

Another promotional strategy that team Everest will use is going business to

business (B2B) through gyms throughout the California area. Sales Agents

would go to a gym such as California Family Fitness. With over 69 locations

in the state of California, it would be a great place to start. In a fitness center

such as California Family Fitness, a great promotional strategy would be to

have a display board/ booth at each California Family Fitness location. At

each location, there would be a representative who would let gym members

have the experience of using the Seed during their workout. After their

workout, the member would be asked to fill out a short survey and tell us

what they think of the Seed. After completing the survey, they then would

receive a premium price of only $62 for the Seed if they purchase it right

then and there at the gym. It has to be a same day purchase in order for

them to get the discount. However they have to write a review on social

media sites such as Facebook, Pinterest, or Instagram. By sharing on these

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social media sites that they have just tried the Seed at their gym, will

promote and boost the Seed even more. This creates brand awareness and

free marketing for the Seed. The display models would have anywhere from

25-50 units on their model, depending on how many members are at each

location. These content providers will be found through exercise and all

topics dealing with being fit or health conscious. While looking for the right

person to be a possible sales representative or “Planter” Everest will interact

with and identify these planters. There will be about 3 months spent looking

for potential content providers before there is a decision made on who to

contact. Moikit will then send them the Seed to try out. Subsequently they

will give insight on the product for all of their followers by blogging,

reviewing and sharing to all of their social media pages. This in turn will get

word of mouth out to all of their followers who will then begin to follow

Moikit’s social media page and start to build a presence.

Along with this, Moikit would look to try and gain higher amounts of sales on

the days that users are more inclined to visit their favorite social media sites

by offering some kind of daily special to pique their interest in buying the

Seed.

Below is a list of social media Vloggers and YouTube stars along with some

info on how many followers and subscribers they have.

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Fitness blender – 2.9+ subscribers over 400 million views. Based out of

Washington

https://www.youtube.com/user/FitnessBlender

BeFit – 2.1+ subscribers 290+million views, 368,000+ likes on Facebook.

Based out of California

https://www.youtube.com/user/BeFit

XHIT Daily – 2 million + subscribers, over 55,000 likes

https://www.youtube.com/user/XFitDaily

Blogilates – 2.9+ subscribers, over 700,000 likes, 1.3 million Instagram

followers. Based out of California

https://www.youtube.com/user/blogilates

ScottHermanFitness – 930,000+ subscribers, 420,000+ likes, 58,000

Instagram followers. Based Out of New York

https://www.youtube.com/user/ScottHermanFitness/about

Twobadbodies- over 350,000 + Instagram followers, 60,000 + followers

https://www.instagram.com/twobadbodies/

List of recommended consumer and trade shows and dates:

1. LA marathon fitness expo – March 19

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2. Pasadena Fitness expo – June 27

3. Mason Expo Fitness – Aug (TBA)

4. Golden Valley Health centers fit expo – March 28

5. Fit Expo in San Jose – May 21-22

6. CES Las Vegas, Nevada – January 5-8 2017

Short & Long Term Projections

Sales of 18,000 units every four months of distribution totaling 90,000 units

over a 2 year trial run in California. The original time investment of 3 to 6

months before units arrive via shipping allows for Moikit to use this custom

remote marketing plan. This keeps the Seed in its position as the Industry

leader in quality and pricing. By the end of the first 2 years Moikit will be

able to have adjusted unit production and be able to double sales and start

expanding into the other identified states.

The early estimated ROI is $83,180.00 per 3600 units the early goal. A goal

of 5000 units a month is the recommended target by the twelfth month. As

the supply chain will be receiving enough product to justify the increase.

Moikit should see a total of $2,000,000.00 USD return on all active sales by

the end of the first 30 month cycle.

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Market limitations are minimal as Moikit is only selling to .01% of potential

first segment identified target market. The second segmentation reduces

this even further to a .005% product to marketable customer.

Conclusion

Team Everest’s marketing strategies for Moikit are an ongoing adjustable

marketing campaign that is used to hone in the optimal target market. Using

the 8 step SMPC method (Social Media Planning Cycle) Moikit will.

1. Listen via social media, web forms, and blogs.

2. Use goal orientated personas to continue to adjust the message.

3. Implement the 8 C’s strategy and adjust.

4. Interact through the selected Social Medias and adjust as needed.

5. Implement Adjustments made to personas and message.

6. Monitoring with the use of people, and web based tools. Google

Analytics’, Facebook Marketing.

7. Tune the message start the process over.

While this process is slower then hiring a company to just distribute the

product. The time invested in the beginning will allow for growth of the

supply chain for consistency. The time also allows Moikit to find the right

Planters for representing the companies’ interest remotely in the US.

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I. Appendix

Table of Contents

Section

Moikit Seed info………………………………………………………………………………………………………………………………………..1Moikit Mecare agreement…………………………………………………………………………………………………………………….2Authority Nutrition…………………………………………………………………………………………………………………………………...3StreetInsider……………………………………………………………………………………………………………………………………………...4IBIS World OD5599 Gym & Fitness…………………………………………………………………………………………………5Thermos information………………………………………………………………………………………………………………………………6

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BluFit information…………………………………………………………………………………………………………………………………….7Flow information……………………………………………………………………………………………………………………………………….8Hidrateme information……………………………………………………………………………………………………………………………9HydraCoach information………………………………………………………………………………………………………………………10IBIS Market Report Plastic Bottle Manufacturing………………………………………………………………………………………………………………………………………….11IBIS Bottle Water Production…………………………………………………………………………………………………………….11.AIndustry at a Glance………………………………………………………………………………………………………………………………11.BIdentifying,Understanding Generations…………………………………………………………………………………………12United States Census Information……………………………………………………………………………………………………13California………………………………………………………………………………………………………………………………………………………13.ASan Diego with Personal Income……………………………………………………………………………………………………..13.BSacramento with personal Income…………………………………………………………………………………………………..13.C

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San Jose with Personal Income…………………………………………………………………………………………………………13.DOregon…………………………………………………………………………………………………………………………………………………………..13.EPortland………………………………………………………………………………………………………………………………………………………….13.FWashington………………………………………………………………………………………………………………………………………………….13.GSeattle…………………………………………………………………………………………………………………………………………………………...13.HSocial Media Demographics for Marketers…………………………………………………………………………………….14PewReasearch…………………………………………………………………………………………………………………………………………14.AGenerations by Philip Bump……………………………………………………………………………………………………………..15IBIS Consumer Spending……………………………………………………………………………………………………………………16IBIS Adult Consumer ages………………………………………………………………………………………………………………….16.AIBIS Per Capita Disposable Income……………………………………………………………………………………………...16.BBusiness Insider Fitness Trackers Sold………………………………………………………………………………………..17Analysis on Smartwatches vs VR…………………………………………………………………………………………………….17.ASmart Watch Or Fitness Tracker………………………………………………………………………………………………………18

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China Building Reef Island………………………………………………………………………………………………………………….19Cirrelt Supply Line Management……………………………………………………………………………………………………….20IBIS WORLD Supply Chain………………………………………………………………………………………………………………...20.A6 Factors……………………………………………………………………………………………………………………………………………………….21Customs and Boarder Commercial Importers Guide ……………………………………………………………..22IBIS Product Returns Supply Chain Industry……………………………………………………………………………….22.AIron and Metal Power Point………………………………………………………………………………………………………………….23Finance Charts…………………………………………………………………………………………………………………………………………..24

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