Product or service description- MusclePharm is a nutritional supplement company. They sell pre,

during and post workout supplements. They also sell vitamins and fat burners.

“MusclePharm a publicly-traded healthy life-style company (MSLP:OTCBB), develops and manufactures a full line of Informed Choice-approved nutritional supplements that are free of banned substances.  Utilizing years of research at the MusclePharm Sports Science Center, the products are created through a six-stage research protocol involving the expertise of top nutritional scientists and field tested using a pool of over one hundred elite professional athletes from various professional sports leagues including the National Football League, Mixed Martial Arts and Major League Baseball.  The company's products address many categories of active lifestyles, including muscle building, weight loss and maintaining general fitness through a daily nutritional supplement regimen.  MusclePharm products are sold to consumers in more than 120 countries and available in over 10,000 U.S. retail outlets, including Dick's Sporting Goods, GNC, Vitamin Shoppe, Vitamin World and Wal-Mart. MusclePharm products also are sold through more than 100 online stores globally, including bodybuilding.com, Amazon.com and Vitacost.com.”Brand’s status in current market-

MusclePharm is a fairly new company, and is trying to establish itself as one of the fastest growing in the industry. It is garnering more attention because it has created great endorsements from star athletes. The athletes who endorse their products include: Michael Vick the Philadelphia Eagles’ Quarterback, Patrick Willis San Francisco 49ers’ linebacker, Bryce Harper Washington Nationals’ Center fielder, and Chady Dunmore the 2010 Bikini World Champion. In addition to supporting individual athletes they also endorse full sports. Muscle Pharm is the Official Nutritional Supplement Provider of the Ultimate Fighting Championship (UFC). Within the UFC two fighters: Clay Guida, Michael Bisping, and trainer Greg Jackson, endorse their products. In October of 2011 Muscle Pharm signed Chad Ochocinco wider receiver for the New England Patriots because of his link to Twitter. Ochocinco has over 2.8 million followers on Twitter. This will help them expand brand awareness.Industry Trends-

When dealing with dietary supplements, it is always best to remember the caveat “let the buyer beware.” According to the Nutrition Business Journal, which provides market research for the dietary supplement industry, U.S. sales of pills, powders, bars, and beverages to boost athletic performance reached $1.26 billion in 1997. This market was expected to grow by 6–10% in 1998.

The sale of creatine, in particular, rose from $30 million in 1995 to an expected $200 million in 1998. Thus, the economic pressure to hype athletic benefits from dietary supplementation is enormous, and marketing claims

typically range from exaggerations to outright lies. The global market for sports nutrition products increased from $27.8 billion in 2007 to an estimated $31.2 billion in 2008. It should reach $91.8 billion by 2013, a compound annual growth rate (CAGR) of 24.1%.As sports nutrition has seen substantial progression over the last decade; MusclePharm projects a steady increase from 2011’s net sales. Within the first quarter of 2012, MusclePharm exceeded its 2011first quarter sales mark by $4 million dollars, accounting for $19 million (first quarter). With the demand of MusclePharm products being significantly popular, in addition to 15 new products, projected net sales for 2012 were tailored by $35 million dollars. Growth of Muscle Pharm is rising and is projected to tally $75 million dollars in net sales by year’s end. Attributed to the growth of MusclePharm is the newly labeled product, Assault, recognized as a pre-workout supplement. MusclePharm differentiated itself from other competitors by deliberately negating the inactive ingredient, DMAA (1,3-Dimethylamylamine). DMAA has been recently eschewed by the FDA. “We believe this differentiates MusclePharm from its competitors and ensures our products are backed by real science.” Utilizing the science aspect of MusclePharm will engage consumers to be a part of this active movement forward in sports nutrition. When ingesting the pre-workout boost Assault, you are initially increasing your performance as an athlete due to the employment of Brach Chain Amino Acids, along with Beta Alanine and Creatine. Assault has become a sensation in the sports nutrition world, and has clinically proven to enhance your abilities in athletic performance.To maximize the many trends MusclePharm has delegated, Chief Operating Officer John Bluher, to focus on transitioning the company from a private to public entity. By moving to a public entity, the company would attempt to qualify for the opportunity to be sold on the New York Stock Exchange. Buyer profile and behavior-

Buying behavior is the decision making processes and actions of people involved in buying and using products. Consumers are constantly looking for the best products on the market that will provide great results. Consumers will talk with other consumers and refer to forums to see what products work well, how much they cost and if the gains are worth the cost. Serious lifters and athletes frequently will go to a store and ask professionals what their opinions are on specific products. A store such as Max Muscle in Lincoln is very popular and with our experiences and what I have heard from others Max Muscle provides quality feedback. If a customer has a good experience with a product he will continue to use it and will also try other products from that same producer. Companies are able to then cross sell to their customers. For MusclePharm, it would be selling Assault a pre-workout with Creatine for great performance and, with Bullet Proof a night time recovery powder, with whey protein to help the muscles build back up.

A buyer profile or customer profile is, “A description of a customer or set of customers that includes demographic, geographic, and psychographic

characteristics, as well as buying patterns, creditworthiness and purchase history.” When evaluating MusclePharm’s customer profile their age demographic is predominantly males ages 18 years old to 40 years old. Geographically their customers are diverse with products being sold in over 100 different countries, but the majority of those sales are coming within the United States. They are based out of Denver, Colorado. Using the professional athletes that they do for endorsements and their affiliation with specific sports would lead you to believe they are after a younger market. UFC is a new sport but is taking the country by storm, essentially replacing an age old sport, boxing. Competition’s SWOT analysis- Through extensive research within our competitor’s profiles, we found “Optimum” and “BSN” to be the only other companies to utilize athletes in their approach. A weakness I found in “Optimum” and “BSN” is the lack of prominent athletes to market their company. MusclePharm incorporates two compelling athletes, Michael Vick and Patrick Willis. Employing elite athletes will provide a basis and foundation to surpass competition. An additional weakness within “Optimum” and “BSN” is the lack of detail to the application of science. MusclePharm clearly has an advantage over these two companies which lack emphasis of science implemented in to their products. Instituting an Olympic Training Center and providing the most powerful doctors in sports medicine ensures the dominance of MusclePharm. By establishing a performance and research center dedicated to elite athletes, MusclePharm has formulated a plan to become superior in sports nutrition. MusclePharm is coined as “The Athlete’s Company” and within this company is a lifestyle to live by. “IHS” does not list athletes within their company but does integrate science to establishing their products. The science base of “IHS” is not remotely competitive to MusclePharm’s systematic research center.

The sports nutrition business is highly competitive. Competition is based primarily on quality and assortment of products, marketing support, and availability of new products. Currently, MusclePharm’s main competitors are three private companies: Optimum Nutrition, Inc. (“Optimum”), Iovate Health Sciences, Inc. (“IHS”), and Bio-Engineered Supplements and Nutrition, Inc. (“BSN”). Optimum is a wholly owned subsidiary of Glanbia Nutritionals, Inc., an international nutritional ingredients group. Optimum owns and operates two brands of nutritional supplements (Optimum Nutrition and American Body Building), providing a line of products across multiple categories. IHS is a nutritional supplement company that delivers a range of products to the nutritional marketplace. Headquartered in Oakville, Ontario, Canada, IHS’s line of products can be found in major retail stores and include such brands as Hydroxy-Cut™, Cell-Tech™, Six Star Nutrition™. BSN is also a sports nutrition leader whose top products include No-Explode™ and Syntha Six Protein™.

MusclePharm intends to compete by aggressively marketing its brand, emphasizing their relationships with professional athletes, and utilizing its relationships with those athletes, retail outlets and industry publications and

relying on the strength of the science behind MusclePharm products. The industry is highly competitive, and failure to compete effectively could adversely affect market share, financial condition and future growth.

The sports supplement industry is highly competitive with respect to: several competitors being larger more established and possess sing greater financial, personnel, distribution and other resources. MusclePharm faces competition in the health food channel from a limited number of large nationally known manufacturers, private label brands and many smaller manufacturers of dietary supplements. MusclePharm relies on a limited number of customers for a substantial portion of their sales. The loss of or material reduction in purchase volume by any of these customers would adversely affect our sales and operating results.

In 2008, three customers accounted for approximately 74 percent of net sales. MusclePharm’s largest customer in 2008 represented 48 percent of their sales. In 2009, four customers accounted for approximately 66 percent of their sales. The largest customer in 2009 accounted for 20 percent of company sales. During the year ended December 31, 2010, two customers accounted for approximately 54 percent of MusclePharm’s sales. The largest customer during this period was Bodybuilding.com, which accounted for approximately 42 percent of their sales. The loss of any of MusclePharm’s largest customers, a significant reduction in purchases by any major customer, or, any serious financial difficulty of a major customer, could have a material adverse effect on company sales and results of operations. Product’s/Client’s SWOT analysis-

MusclePharm’s product/client SWOT analysis begins with MusclePharm’s strengths in the minds of its clients. MusclePharm has produced products that appeal to its target market. MusclePharm has an athlete’s only training facility, where they are running a state of the art research and weight training facility. Although, MusclePharm makes the athletes only claim, Dr. Kim the team doctor of MusclePharm makes it clear that MusclePharm supplements are for the general public as well. MusclePharm products strengths also include the proven and cutting edge ingredients used in MusclePharm products. MusclePharm has proven its effectiveness and MusclePharm’s product ratings and reviews support it. Websites such as “Supplement Warehouse” and “bodybuilding.com” both have nine out of ten product ratings for MusclePharm supplements.

The weaknesses of MusclePharm products is simply the fact that there is such a large pool of supplements to choose from. It is often difficult for potential consumers to figure out whose product really has the scientific research behind the product. Every company a consumer researches is going to claim that their product is proven by science and will lead to the best muscle gains. In a market as large as the supplement market MusclePharm is just one face in a crowd of many. MusclePharm’s greatest challenge is convincing the public that their product is legitimately the best that the market has to offer based off proven research.

The opportunities that MusclePharm products have starts with a well-established product and then a solid niche in the market place. Although MusclePharm has the challenge of being one of many supplement providers, the product has performed above and beyond consumer expectations. MusclePharm has the opportunity to take considerable steps in the supplement industry if they can continue to provide a consistent result. Many products fluctuate in effectiveness causing an inconsistent consumer experience. This fact leaves the door wide open for MusclePharm to nail down a unique “MusclePharm” experience.

The threats that MusclePharm faces are other companies constantly entering the supplement market and the pressure to improve products to stay competitive. The supplement industry is polluted with new companies that all allegedly have the new cutting edge product. The problem here lies within the FDA law which states, “The dietary supplement or dietary ingredient manufacturer is responsible for ensuring that a dietary supplement or ingredient is safe before it is marketed. FDA is responsible for taking action against any unsafe dietary supplement product after it reaches the market.”(fda.gov) The supplement industry has companies coming out with harmful products that increase performance but also harmful to the consumer’s health. The FDA does not prevent these products hitting the market place; they simply take action to remove products from the market once it is found harmful. The damage is already done to a company like MusclePharm that is trying to operate a consumer friendly business.

Short and long-term goals-Part of the short term goals is that MusclePharm would like to increase

sales and have more brand recognition. There are many nutritional supplement companies and MusclePharm has found a unique way to position them by going after a new and emerging market in UFC. MusclePharm Corporation an expanding U.S. nutritional supplement company announced on September 20th 2011, that John H. Bluher was named Chief Operating Officer.

The company's product, Assault, has become the No. 1-selling pre-workout supplement on Bodybuilding.com, the world's largest online nutritional retailer. MusclePharm has been able to position itself as a full service supplement shop amongst many customers already. As MusclePharm continues to spread its name it will grow a market and will be able to do more advertising than just via social media. Target consumer/audience-

  MusclePharm is a fast growing maker of science based nutrition for athletes. The company is proud of the fact that it works with researchers, doctors, and professional athletes to determine the optimum formulations for top athletic performance, and has signed key endorsement agreements to emphasize its ties to the athletic community. Having big time athletes such as Michael Vick, a four time pro bowl selection and the only quarterback in

NFL history to rush for over 1,000 yards during the regular season. Patrick Willis a two-time All-American, Butkus Award Winner, five-time Pro Bowl selection, and three-time AP All-Pro first team selection and Louis Simmons, the only person at age 60 who can bench 600 pounds the only lifter over the age of 50 to squat 920 pounds and one of only six athletes in the world to hit Elite status in five weight classes over 40 years, endorse their products has given the company significant publicity.                 Having endorsements with big named athletes is also critical for a good marketing strategy, for supporting MusclePharm distributors and retailers. All the research in the world isn’t any good without getting the word out to the people. The company has invested heavily in research and testing, verifying the effectiveness of its products and thereby clearly differentiating itself from other products. Having connections with top athletes is one of the key reasons for the company’s rapid expansion. 

The target consumer does not have to be a body builder. These products are more focused on athletes who play sports and want to get into peak physical shape and then maintain it. There is a wide variety of products for people who have differing needs. As athletes our group noted that supplements are very beneficial in helping you recover from practice to practice allowing you to train and play harder because your body recovers more quickly. Throughout the course of a season your body gets fatigued and naturally breaks down. These products, however, allow it to stay healthy and build back up stronger and quicker in a legal and non-harmful manner. Product Positioning-

MusclePharm is a brand whose product has placed MusclePharm at the top of the supplement industry. MusclePharm has its own state-of-the-art training facility that features professional athletes such as Quinton “Rampage” Jackson (a popular UFC fighter) that many supplement consumers respect. This is the first factor that propels MusclePharm above its competition. MusclePharm’s association with big time athletes and top notch training and research facilities shows a level of success and professionalism that is rarely seen by the consumers. If consumers look up MusclePharm products on “bodybuilding.com” there is a video that goes behind the scenes of MusclePharm and its facilities, talking to athletes who train at the MusclePharm gym and talking to the team doctor who gives insight into the reason that MusclePharm products are effective.

MusclePharm is also placed highly in the market because of its impeccable product ratings on websites such as “bodybuilding.com.” Another example of this is www.prosource.net’s top supplements list of 2012, which lists MusclePharm’s pre-workout “Assault” in the top five pre-workouts of any company. MusclePharm also markets in a way that shows their stability and confidence as a company. For example, MusclePharm recently sent me a MusclePharm wristband in my supplement order from “bodybuilding.com.” The interesting thing about my getting a MusclePharm wristband is that I have never purchased products from MusclePharm. By receiving MusclePharm apparel I will purchase MusclePharm products now

because the wristband. As minuscule as it may seem, the wristband gave me a sense of relationship to MusclePharm. MusclePharm as a company operates in a transparent manner by providing videos that show the inner workings of the company and also gives the consumer a face with a name. Price-

Products made by MusclePharm vary in price they sell for depending on the retailer, the size/serving of the product, and the type of product. Generally, their products are available in two or four pound powders, or 8-32 servings in a container, depending on which product the consumer purchases. Buying the bigger size amount will be more expensive, but the consumer will receive more for his money. The good thing about selling their products online and through retail stores is that most are sold on sale and can be found on sale for as much as up to 50 percent off, bringing the prices down to a very competitive price.

The compensation strategy of MusclePharm is pay for performance, meaning consumers are paying to enhance their physical abilities and improve performance. MusclePharm offers 12 products which vary in purpose. Assault is MusclePharm’s newest contribution to the supplemental world, and is a pre-workout matrix. For 32 servings the price is $49.99, but can be found on sale for as low as $29.99. 8 servings are available for a price of $13.99 with a sale of $10.99. Battle Fuel, another MusclePharm product is priced at $40.00 for 126 capsules. Bullet Proof, is aimed towards nighttime recovery and is originally priced at $69.99 for 40 servings, but can be found on sale for $34.99. MusclePharm’s Combat Powder, which is made for muscle growth, is sold at $72.99 for four pounds or $39.99 for two pounds. When found on sale, however, both products come down in price and are sold for $39.99 and $24.99 respectively. MuscleGel is protein on the go and is sold in packages of 12 at a retail price of $39.99, and on sale for $23.99. Shred Matrix, comes in at a price of $27.99, but when on sale it reduces it to $17.83. These prices are for 60 capsules and helps increase energy and stamina while controlling food cravings. Re-Con, is used for refueling, replenishing, and rebuilding. It comes in 30 servings and is sold for $64.99 and reduced to as low as $38.99. Armor-V is available in 180 capsules and is sold at a retail price of $42.00 and on sale for as low as $25.98. Armor-V is an excellent source of vitamins and minerals. MusclePharm also sells BCAA 3:1:2 in 240 capsules. It is sold for $34.99 and when on sale for $20.98. This product promotes muscle development and maintenance of amino acids. A product that helps with deep, healing sleep is MusclePharm ZMA Max. The price of this supplement is $29.99 regularly and $19.99 on sale. For a price of $31.99, a customer can purchase 300 grams of Glutamine to support rebuilding and recovery from hard workouts. It can be bought on sale for $19.98. Their Creatine product can be bought in 300 grams for $27.99 and a sale price of $19.98. Creatine promotes power, strength, and endurance for the user. Compared to other supplement companies and brands, the price of MusclePharm’s products is not out of line. As a person can see, most of their products can be found on sale, making their price very reasonable.

Package/Place-MusclePharm distributes their product both domestically and

internationally. Stores that sell and promote MusclePharm products include 485 different locations for The Vitamin Shoppe, 1,200 GNC stores and, 400 Vitamin World retail stores. It sells through over one hundered internet sites, with BodyBuilding.com being most prevalent. They also work with large distributors in small retail stores and gyms in the US. MusclePharm packages are designed around looking attractive, strong, and flashy to entice customers. The comopany recently rebranded its packaging. It includes the color of green and black, so it is easily recognizable next to big name brands. The main focus of this new packaging design was to attract, recognition, and cohesiveness all from the shelf of a store. This new packaging technique allowed them to branch out into a new market and elevated their brand and brand message, which increased their brand loyalty from die hard customers and new customers just joining the MusclePharm family. MusclePharm was awarded the “Best Packaging of the Year” award from Bodybuilding.com in 2011. Simple things as reinventing your packaging are very important when it is estimated that about 60% of purchases are made in the store.Promotion-

Healthy lifestyle company MusclePharm, and the New England Patriots wide receiver Chad Ochocinco recently agreed to a sponsorship deal aimed at boosting the company’s brand through social media marketing. The agreement will leverage the massive follower base Ochocinco has developed – he currently has more than 2.8 million followers on Twitter – to expand brand awareness for the fitness company.“Like Chad, social media allows us to stay very close to our consumers and Chad gives us instant exposure to a massive audience,” Cory Gregory, senior president and co-founder of MusclePharm, said in a release. “I am involved on a daily basis with our consumers on a social media level and we at MusclePharm have repeatedly seen the tremendous impact the channel can have for business.”

Whether or not businesses have football-playing brand advocates, they’ll likely find valuable word-of-web referrals among social users. Social media marketing campaigns are becoming increasingly popular as the user base for Facebook, Twitter and other networks continues to expand rapidly. Most recent figures from the companies peg Facebook’s active accounts at more than 800 million, while Twitter surpassed 100 million.

MusclePharm promotes their products mostly through spokespeople and sponsoring high profile athletes. The objective of endorsing these athletes is to build both customer awareness and confidence and to drive consumer demand for their products in the market. The company is also big on in-store promotions. These include point-of purchase stands, aisle displays in retail outlet stores, sample demonstrations, and athlete appearances at GNC and Vitamin Shoppe locations. They also use social media as a promotional strategy, with Twitter and Facebook especially. Social media allows MusclePharm to stay very connected with their

customers, and by using well known athletes it gives them more exposure. MusclePharm sponsors many different competitions to entice people to use their product. They promote “Fueling Athletes Safely” to show that their supplements are approved and can be safely taken by athletes with minimal side effects. Each product has its own slogan to show how the product is supposed to enhance the athlete’s performance or recovery. Marketing Strategy-

Our core marketing strategy is to brand MusclePharm as the “must have” nutritional supplement line for high performance athletes. We want to be known as the athletes’ company, run by athletes with products for athletes. MusclePharm has endorsements from over 50 UFC fighters, several well known NFL players, as well as top X-Game and fitness athletes. Athletes are considered role models and many people strive to emulate their fitness and well-being regimen. The objective of these athletic endorsements is to build both consumer awareness and confidence and to drive consumer demand for our products in the market.

The fighters that are sponsored wear MusclePharm brand on their uniforms and they also advertise at the Ultimate Fighting Championship events. In 2011, MusclePharm launched a state-of-the-art website that will tap into the social networking world and we believe further expand our brand and consumer awareness. The website is very dynamic being interactive with Facebook, and Twitter. Every day on my Facebook account I receive the MusclePharm workout of the day. It is a great way to draw in customers because if they use your workouts and see your athletes and professionals getting stronger then they will use your products as well.

The Company is also currently engaged in various in-store promotions, including point-of-purchase stands, aisle displays in our retail outlets, as well as sample demonstrations and athlete appearances in GNC and Vitamin Shoppe locations.

 MusclePharm considers itself far more than a major provider of science-based nutritional supplements for athletes and other consumers seeking to optimize their physical health and strength. The fast growing Colorado-based Health Company is steadily integrating itself into the entire athletic and healthy lifestyle community. Beyond a comprehensive and expanding line of nutritional supplements, the company now offers informal sports attire, workout videos, and a 40,000 square foot state of the art athletic and testing facility where a team of scientist and doctors scientifically test the effectiveness of nutritional formulations with serious athletes.                It is all part of MusclePharms philosophy of living and breathing the truly healthy lifestyle, not simply selling product. The company works with athletes at every level every day, and knows that it’s as much about the mind as the body. The MusclePharm approach to their target market is essentially to become one with that market. MusclePharm, like the athletes it supports, loves what they do, and has gone to great lengths to provide the kind of critical nutrients necessary for superior athletic performance. This

kind of dedication to the people they serve is one of the reasons that MusclePharms revenue has increased over the past few years, from $3million in 2010 to $17 million in 2011, and has reached over $30 million for just the first half of 2012.