Marketing Vision

This marketing plan is a means for Jamestown Sports and Fitness to refocus its identity as differentiated from competitors in its market. This will involve rebranding, refocusing activities, and redeveloping many marketing materials in the coming six months. Follow up and careful examination of results over the next three years will determine whether this marketing direction is having the desired effect.

1.1 Goals
Personal Goals (Marketing Director):

Devote 20 hours per month to monthly marketing theme Speak at 20 events in FY 2013

Business Goals:

Achieve total revenue over $4 million in fiscal year 2013 Register over 8,900 new customers in FY 2013 Receive over 19,000 lead referrals in FY 2013

Tactical Goals:

Reduce customer attrition rate to 20% by FY 2013 Increase attendance rate of group sports activities to 75% of customers in FY 2013 Sign up 60% of customers to Facebook application by end of FY 2013

Strategic Goals:

Achieve market share of 60% of Jamestown fitness and gym industry based on Jamestown Business Times annual industry reports Open a fourth location in FY 2013 Achieve customer satisfaction level of 95% in FY 2013

1.2 Purpose
We want people to have fun getting the exercise they need. Jamestown Sports and Fitness will refocus its activities on the belief that exercise is more sustainable and enjoyable when undertaken with others. At the same time, the social aspect of fitness should drive membership to Jamestown Sports and Fitness in even greater numbers as the business creates more opportunities for customers to exercise with their friends.

1.3 Picture
The Jamestown Sports and Fitness member will bring friends and family to work out with, but soon discover a wealth of team sports options to participate in fun league play. The member will become even more motivated to work out, although exercise will no longer feel like work. Surrounded by old friends and new friends, it will feel like play and the member will develop an attachment for the Jamestown Sports and Fitness brand. In time, this individual will encourage more and more friends and acquaintances to join JSF so that they, too, can experience how exercise can become "play" rather than "work".

1.4 Gap Dashboard

The gap dashboard will be examined on a monthly basis, except for items which are only measured on an annual basis such as market share. The dashboard is a direct quantitative representation of the personal, business, tactical, and strategic goals established. The Marketing Director will create actionable steps to rectify negative gaps wherever

they exist unless they are not leading to an overall reduction in customer satisfaction and revenues. In those cases, the Marketing Director may adjust the goals going forward based on the current information available.

Gap Dashboard
Year 1 Personal (Marketing Director) Hours devoted to marketing theme Speaking engagements 240 8 240 14 240 20 Year 2 Year 3

Business Total revenue New customer registrations Lead referrals $2,564,065 3,979 9,948 $3,199,463 5,969 14,326 $4,201,084 8,953 19,399

Tactical Customer attrition rate % of Customers attending group sports % of Customer on Facebook application 24% 45% 30% 22% 60% 40% 20% 75% 60%

Strategic Market share of Jamestown fitness industry New locations added Customer satisfaction level 42% 0 90% 50% 0 92% 60% 1

Ideal Customer
The ideal customer for Jamestown Sports and Fitness is a 22 - 40 year old resident of the Jamestown area, living or working within five miles of one of the clubs. These individuals believe in the idea of fitness, but may find it hard to motivate themselves for solitary fitness activities (such as running, biking, or working out alone). To that end, this individual benefits from fitness activities with others or when others are around.

2.1 Market Description

The characteristics of the Jamestown Sports and Fitness target market are:

22-40 years old At least $40,000 per year personal income Professional/white collar occupation Lives or works within 5 miles of a JSF club

Finds it difficult to motivate self to exercise alone or simply prefer exercise with others Believes that fitness is important to health

Believes that fitness and social sports activities are a good way to spend time with friends

Remarkable Difference
The remarkable difference of Jamestown Sports and Fitness is its devotion to fitness as a social activity and the belief that individuals are more likely to work out consistently when there is a social aspect to exercise. All of JSF's programs and service offerings include this social aspect. For example, even exercise machines which are used alone are situated across from another individual so they can talk while working out. The core message of Jamestown Sports and Fitness is "Get in shape together" emphasizing the fitness goal through social means.

3.1 Differentiators

The services of Jamestown Sports and Fitness are not unique from all other fitness centers in the Jamestown area. However, they are all positioned as social activities and a JSF social networking application is used to help customers meet, keep in touch with, and plan exercise activities with other customers. Jamestown Sports and Fitness features:

Numerous social sports groups both at the fitness clubs and in other venues in Jamestown Exercise machines positioned to allow for and encourage social interaction rather than solitary exercise Lounge area at each fitness club JSF Facebook app mentioned above

Core Strategy
The external marketing message of Jamestown Sports and Fitness is that exercise is more enjoyable and easier to commit to when it is a social activity. The message of "Get in shape together" is drawn out through images and language that furthers this idea. The internal positioning goal for the JSF staff is to see that customers achieve social results as they are pursuing their fitness goals. This also influences staff training. Measurable results from this strategy are based on referrals brought in, customer loyalty/attrition rate, and the attendance rates of group sports activities.

Increase new referred customers per existing customer to one per year on average (some will not make referrals, while others will bring in 3 or 4 new customers) Reduce customer attrition rate to 20% per year (only 1 out of 5 customers who starts a year will have ended membership at year's end)

Increase attendance rate of group sports activities to 75% (3 out of 4 customers take part in a group sports activity within a year's time)

Jamestown Sports and Fitness will seek to achieve these results by the end of three years (2013).

4.1 Core Branding Elements

To redirect and refocus the JSF brand around the new concept of "Get in shape together," the business requires work on the following elements:

Logo - must be redesigned to incorporate the social aspect clearly Images - must be chosen from current customer images (with customer release to use) showing group activities and socialization while exercising. Where these images do not exist, a photographer will be hired over the course of a week to attend group sports activities and exercise sessions, with customer permission. These images will be incorporated into the website, printed materials, and video ads in Jamestown and within the clubs. Slogan - Will be changed to "Get in shape together" where it appears on materials and website.

Other branding elements, such as the company colors and typeface do not need revision as they will work with the new branding concept and provide a sense of continuity from the previous brand.

Product/Service Innovation
Jamestown Sports and Fitness service offerings include the following: For Prospects:

Free 3-Day Guest Pass for access to any of the club locations Free introductory session with a trainer/staff member who can teach an exercise regimen, give a tour of the club, and explain machines and service

For Clients:

Standard membership - Monthly membership of $20 per month for access to one location (registration fee of $40) Premium membership - Monthly membership of $25 per month for access to all three locations (registration fee of $30) Activities including rock climbing, basketball, bowling, flag football, inline hockey, kickball, soccer, softball, volleyball, group fitness classes Nautilus machines, free weights, variety of cardiovascular machines Supervised kid's room for additional fee Personal training with introductory price of $25 per session for the first three session Price goes to $40 per session after that point Blocks of twenty sessions at 20% discount

For Premium Clients (those who have been members for one year and have referred 4 or more new customers):

Private group option allowing member to create their own groups/teams of members for certain team sports 20% first year discount to new referred customers

5.1 Price Rationale

The prices for Jamestown Sports and Fitness are set 20-30% higher than independent gyms as the range of activities offered through JSF are much more substantial. The price is in line with full-service fitness club chains in other cities, so individuals moving to Jamestown from elsewhere will not find the prices exorbitant, and will find the prices lower than some cities (New York, Los Angeles). Pricing is set with a monthly membership fee as well as a one-time registration fee. This additional fee gives room for JSF to offer promotions of one month free or a lower registration fee from time to time to encourage new customers or referred customers. This year, prices will not increase, but they are set to rise 10% every three years or so. Customers in the past have not cited price as a primary reason that they left the business, so JSF feels its prices are reasonable for what it offers and the target market of middle and upper middle class residents.

Marketing Materials
Marketing materials for Jamestown Sports and Fitness include:

Website Facebook application In-club videos TV ads Print ads Flyer ads Online text ads - Google pay per click ads Club signage Downloadable brochure (will not be offered as a printed piece as part of the club's environmental initiative)

The website will offer a navigable tour of club services and activities, allowing potential customers to easily skip to the areas of interest to them (personal training, specific sports, social networking, etc). Over the course of the coming six months, all materials will be redesigned with the new branding direction in mind.

Web Plan
The Jamestown Sports and Fitness website offers the following pages:

Home landing page with Flash introduction Join Now page Free Guest Pass page Refer a Friend page Group fitness schedules Group fitness class descriptions and images Sports group descriptions and images Personal Training page Locations descriptions Kid's room program Contact page Careers page for those interested in employment FAQs page

These pages are easily found through a top navigation bar and sub-menus. In the coming six months, the website will be edited to include the latest offers under the social initiative, images will be updated, and the core message and new tagline will be integrated throughout. A link to the Facebook application will be added so that customers can take advantage of social networking with other customers.

7.1 Social Media Plan

The Jamestown Sports and Fitness Facebook page will ask customers to install the application which facilitates the social initiatives of the business. The application allows:

Direct messaging between club members when both agree to it Discussion groups to promote new teams, look for team members, or find partners to attend training, fitness classes, or other activities with Matching service to provide potential matches between those who are looking for workout partners (similar to a dating site's functionality)

The social networking application will be a way for existing customers to interact more deeply with each other and with the brand of Jamestown Sports and Fitness. It will also allow customers to easily share and promote JSF to their Facebook friends by making some activities appear in their News Feeds. This will help customers seek out friends, family, and colleagues as referrals, fulfilling their goal to achieve referral rewards.

Lead Generation Plan

Lead generation methods for Jamestown Sports and Fitness include the following:

TV advertising Radio advertising Local newspaper advertising Flyers distributed at area establishments Search engine marketing - pay per click Google Adwords Referrals from existing customers Visibility of outdoor sports team activities Club signage and locations PR from local press about the business, its sports teams, etc.

8.1 Advertising
Media Tracking Kits Requested

Advertising Medium WJTR - Jamestown local radio Jamestown Press Jamestown Business Times business newspaper

Contact Contact Distribution Cost/Ad Name # n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

Total CPM n/a n/a n/a

Local cable Google Adwords (pay per click)

n/a n/a

n/a n/a

n/a n/a

n/a n/a

n/a n/a

8.2 Referrals
Referrals from existing customers are an extremely important part of Jamestown Sports and Fitness lead generation. A referred customer is a new customer who filled out a referred customer form signed by the existing referring customer. Referred customers must still be customers at the time of accounting to be counted (new customers who register and then drop their membership are not counted). To encourage these referrals, JSF will use the following tactics:

New customers are informed of referral benefits in their first orientation session and given customer referral forms During a customer's first 30 days of membership, they will receive a reimbursement of their registration fee if one referred customer enrolls (who maintains membership for at least one year) offering an initial incentive to get friends to join Offer customers, after 1 year of membership and at least 4 referred customers, the opportunity to plan private sports groups made up of members of their choosing, rather than joining onto teams made up primarily of strangers. One year after referral, if the referred customer is still enrolled, the referring customer is given one free personal training session

Lead Conversion Plan

Lead conversion begins with either a call, walk-in customer, or email requesting membership information. Emails are responded to by phone (a phone number is required for email inquiries) so are treated like calls for the purpose of lead conversion methods: Calls:

A membership consultant will be available to take calls during business hours or return the call within two hours. Emails will be responded to within two hours during business hours. The membership consultant has the goal of getting the interested caller to come to the club in person for a tour. They do not attempt to get a prospect to sign up over the phone, although they can take information and do so if the caller expresses interest. Membership consultants will use a modified version of a script, but will be trained to make it their own so that they do not read as they describe the club's key service offerings.

Visits:

For prospects who walk in or make an appointment to meet a membership consultant, they will be given a tour of the club These prospects will be asked if they are settled on joining at the end of the tour (trial close) If they are not sure yet, they are offered the free three day guest pass to try out the club

Membership consultants are incentivized to sign up new members and, even more so, to sign up the right type of members - members who do not cancel within one year of starting membership and who actively refer other

customers. The membership consultant receives a small base salary, commission on member enrollments, and bonuses based on enrolling members who refer other customers, stay members for years, and become "premium clients."

Service Experience
The service experience of Jamestown Sports and Fitness is consistently examined through both proactive and reactive quality assurance of facilities and staff. Customers will also be asked for service improvements so that new services, activities, and classes are guaranteed to be of interest to the current customer base. Finally, customers are encouraged to remain members by additional benefits which accrue after one year of membership.

10.1 Loyalty Product/Service Offerings

The primary loyalty offering for "Premium Clients" is the ability to create their own sports teams and have full rights to admit the members of the team. For customers who take part in team sports activities, this will be seen as a major incentive, as they will be able to create teams within the JSF sports leagues consisting of their own friends and acquaintances, whether from the past or other customers they have met at JSF. These clients will be able to name their teams and receive discounts on ordering team t-shirts and other items from local vendors. This will encourage these premium clients to refer even more new customers so that those friends can join their teams (only members may take part in JSF sports).

10.2 WOW Process

Jamestown Sports and Fitness will attempt to wow customers through quality assurance of facilities and staff and by constantly listening to customer interests for new service offerings and responding to these with new service offerings every four months (three times a year). Quality assurance of facilities includes daily checklists by maintenance crew, more detailed weekly checklists for the maintenance crew supervisor and a monthly checklist for the club manager. Problems with machines or the facility can be logged at the front desk, anonymously by note into a suggestion box which is reviewed daily, or by phone to the maintenance support voicemail. All of these items will be checked daily and examined physically in twenty-four hours. Whenever possible, an email or call will be made back to the individual who made the request to acknowledge that it was heard and again when the problem is rectified. There is a goal of 97.5% functional machines at all times (meaning only 1 in 40 may be out of order on any given day). Clubs that fall below this level will be examined by the operations manager to determine where the problem lies. Staff performance reviews will occur twice per year and will be based on customer reviews, peer reviews, and supervisor reviews. Results of performance review can range from disciplinary action or additional training to bonuses and raises. Staff performance reviews are initiated if a failing grade is ever received by a customer in order to examine this review and to rectify any problems. Customers will be polled for new service offering ideas by email every four months linking to a Web survey. These results will be analyzed and a task group will be formed to come up with three recommendations for new services or significant service improvements out of these customer surveys. One, two, or all three of these recommendations will be implemented in the clubs. Customers who proposed the winning suggestions are rewarded with a year's free membership which serves as an incentive for participation in the survey. If more than one customer proposed the same winning suggestion, a winner will be chosen at random from that group. Through quality assurance and implementing customer suggestions for improvements on a regular basis, JSF believes customers will be consistently satisfied and even wowed by the club's services.

Marketing Calendar

On a daily basis, the Marketing Director will receive a report on customer complaints, reviews, and suggestions to remain aware of unusual items. On a weekly basis, the Marketing Director will examine a dashboard of marketing and sales results from the preceding week. On a monthly basis, after the rebranding initiative is complete in a few months, the Marketing Director will focus at lease twenty hours per month to the marketing "theme" of the month so that there is continued improvement to all programs. The Gap Dashboard will also be examined at the end of each month to look at progress towards goals. On an annual basis, the Marketing Director will undergo an annual review to examine the success and failings in meeting goals, understand the reasons behind these success and failings, and create a plan and goals for the next year.

11.1 Monthly

Months 1 2 3 4 5 6 7 8 9 10 11 12

Marketing Theme Promotion planning Lead conversion/Sales methods examination Website Staff orientation and training revision Online advertising Loyalty programs Facebook application Print advertising WOW Process Customer referral program TV and radio advertising Annual review and goal setting

Milestones
Advertising Photo sessions Create new print ads Start Date 8/1/2010 9/1/2010 End Date 8/31/2010 9/30/2010 Budget Implemented By $2,000 $1,000 Photographer Ad firm Department Marketing Marketing

Create new radio spots Create new vide ads Launch ad campaign (6 months of ads) Total Advertising Budget PR Create press release focused on the new initiative Send press release Follow up calls on press release Total PR Budget Direct Marketing Create email blast about new referral program Send email blast Create corporate offering mailing & target list Send corporate offering mailing Total Direct Marketing Budget Web Development Revise website Create new Facebook application Launch Facebook application Total Web Development Budget Loyalty and Referral Programs Create new referral forms Staff training on loyalty and referral programs Launch the new programs Total Loyalty and Referral Programs Budget Totals

9/1/2010 9/1/2010 9/30/2010

9/30/2010 9/30/2010 3/31/2011

$1,000 $5,000 $25,000 $34,000

Ad firm Ad firm Ad firm

Marketing Marketing Marketing

Start Date 9/1/2010 9/15/2010 9/20/2010

End Date 9/15/2010 9/20/2010 10/15/2010

Budget Implemented By $500 $250 $500 $1,250 PR agent PR agent PR agent

Department Marketing Marketing Marketing

Start Date 9/1/2010

End Date 9/30/2010

Budget Implemented By $0 Marketing Assistant Marketing Assistant Marketing Director Marketing Assistant

Department Marketing

9/30/2010

10/15/2010

$0

Marketing

10/1/2010

10/30/2010

$0

Marketing

11/1/2010

11/30/2010

$1,000 $1,000

Marketing

Start Date 9/1/2010 10/1/2010 11/1/2010

End Date 10/15/2010 10/30/2010 11/15/2010

Budget Implemented By $5,000 $5,000 $0 $10,000 Web Firm Web Firm Web Firm

Department Marketing Marketing Marketing

Start Date 8/15/2010

End Date 9/1/2010

Budget Implemented By $0 Marketing Assistant Operations Manager Marketing Director

Department Marketing

9/1/2010

9/30/2010

$0

Operations

10/1/2010

10/15/2010

$0

Marketing

$0 $46,250

Critical Numbers

The CRM database for the business tracks the activities of potential and actual customers, including their visits, promotions they take advantage of, referrals they make, and their transactions. The business's accounting software QuickBooks - tracks the sales numbers and interfaces with the CRM. Membership consultants are responsible for updating the CRM database for the members they oversee.

12.1 Sales Forecast

Standard and premium membership fees are calculated based on their base value. Discounts or promotions applied are included in marketing expenses and not as direct costs. Membership fees carrying a very low ongoing cost. Registration has a higher cost due to start up activities, membership packet, ID cards, etc. which are provided. Other revenues are from personal training, the kid's room, and retail products, which carry a higher cost per unit sold. An attrition rate of 2% per month will decrease leading up to the third year when we project an annual attrition rate of only 20%.

Sales Forecast
Year 1 Year 2 Year 3

Unit Sales Standard Monthly Membership Fees Premium Monthly Membership Fees Registration Fees Other Revenues Total Unit Sales 35,928 46,692 3,979 17,964 104,564 46,707 60,700 5,969 17,964 131,339 60,718 78,910 8,953 23,353 171,935

Unit Prices Standard Monthly Membership Fees Premium Monthly Membership Fees Registration Fees Other Revenues

Year 1 $20.00 $25.00 $35.00 $30.00

Year 2 $20.00 $25.00 $35.00 $30.00

Year 3 $20.00 $25.00 $35.00 $30.00

Sales Standard Monthly Membership Fees Premium Monthly Membership Fees Registration Fees Other Revenues Total Sales $718,562 $1,167,306 $139,275 $538,921 $2,564,065 $934,130 $1,517,498 $208,912 $538,921 $3,199,463 $1,214,370 $1,972,748 $313,368 $700,598 $4,201,084

Direct Unit Costs Standard Monthly Membership Fees Premium Monthly Membership Fees Registration Fees Other Revenues

Year 1 $0.20 $0.25 $17.50 $18.00

Year 2 $0.20 $0.25 $17.50 $18.00

Year 3 $0.20 $0.25 $17.50 $18.00

Direct Cost of Sales Standard Monthly Membership Fees Premium Monthly Membership Fees Registration Fees Other Revenues Subtotal Direct Cost of Sales $7,186 $11,673 $69,637 $323,353 $411,849 $9,341 $15,175 $104,456 $323,353 $452,325 $12,144 $19,727 $156,684 $420,359 $608,914

12.2 Marketing Expense Budget

Marketing expenses budgeted here do not include the additional costs delineated in the milestones chart detailing the costs associated with the new branding initiative. The ongoing marketing expenses will continue to drop as a percentage of sales as referral marketing increases in efficiency.

Marketing Expense Budget

Year 1 Advertising Sales Promotions Marketing Training Quality Assurance Referral Program Corporate Promotion Public Relations Website and Facebook $24,000 $12,000 $6,000 $6,000 $18,000 $6,000 $12,000 $6,000 -----------Year 2 $28,800 $14,400 $7,200 $7,200 $21,600 $7,200 $14,400 $7,200 -----------Year 3 $34,560 $17,280 $8,640 $8,640 $25,920 $8,640 $17,280 $8,640 ------------

Total Sales and Marketing Expenses Percent of Sales

$90,000 3.51%

$108,000 3.38%

$129,600 3.08%

12.3 Key Marketing Metrics

A large number of leads must be generated due to a low conversion rate which is common for the business (many interested leads go to competitors or choose not to enroll after a free guest period). This conversion rate is expected to improve, however. Many customers do no more than pay their membership fee each month. Some will purchase personal training, use the kid's room, or other transactions in a given month. Referrals make up about half of new customer leads and this number is expected to grow to 65% of leads. PR mentions will increase due to the new social initiative and hiring of a PR agent to send out press releases at least every other month about new programs, successes, and the importance of a social context to exercise. Testimonials are sought in customer surveys and 10% or more are expected to be positive, usable testimonials to choose from. Finally, the customer attrition rate will drop due to the effects of the loyalty program.

Key Marketing Metrics

Year 1 Revenue Leads Leads Converted Avg. Transactions/Customer Avg. $/Customer Referrals PR Mentions Testimonials Annual Customer Attrition Year 2 Year 3

$2,564,065 $3,199,463 $4,201,084 19,896 20.00% 1.26 $31 9,948 51 199 24% 23,876 25.00% 1.22 $30 14,326 60 239 22% 29,845 30.00% 1.23 $30 19,399 70 269 20%

Marketing Training Game

Marketing training is a vital part of both new staff orientation and ongoing training. Especially in light of the new "social" initiative of Jamestown Sports and Fitness, staff must understand how to promote this aspect to prospects, encourage social interaction of current and new members, and understand how social interaction can support a member's fitness goals. New staff orientation will include an overview of all current marketing, the website, the Facebook application, and the reasoning behind the new branding. Staff will be tested to make sure they understand the tagline and how to explain it to customers. Current staff will receive this same orientation in the next six months to bring them up to speed with changes. Ongoing training sessions will be held every six months for all staff, from maintenance staff to membership consultants, to create discussion around the "social" initiative and how it is working out in practice. This training will be a means to refocus staff as well as to learn from their experience with members.

Appendix
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Unit Sales

Standard Monthly Membership Fees

2,500

2,573

2,650

2,732

2,819

2,911

3,010

3,114

3,224

3,340

3,463

3,594

Premium Monthly Membership Fees

3,500

3,553

3,610

3,673

3,741

3,815

3,895

3,982

4,074

4,174

4,280

4,394

Registration Fees

250

263

276

289

304

319

335

352

369

388

407

428

Other Revenues

50%

1,250

1,286

1,325

1,366

1,409

1,456

1,505

1,557

1,612

1,670

1,732

1,797

Total Unit Sales

7,500

7,674

7,860

8,060

8,274

8,502

8,745

9,004

9,279

9,572

9,883

10,212

Unit Prices

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Standard Monthly Membership Fees

$20.00

$20.00

$20.00

$20.00

$20.00

$20.00

$20.00

$20.00

$20.00

$20.00

$20.00

$20.00

Premium Monthly Membership Fees

$25.00

$25.00

$25.00

$25.00

$25.00

$25.00

$25.00

$25.00

$25.00

$25.00

$25.00

$25.00

Registration Fees

$35.00

$35.00

$35.00

$35.00

$35.00

$35.00

$35.00

$35.00

$35.00

$35.00

$35.00

$35.00

Other Revenues

$30.00

$30.00

$30.00

$30.00

$30.00

$30.00

$30.00

$30.00

$30.00

$30.00

$30.00

$30.00

Sales

Standard Monthly Membership Fees

$50,000

$51,450

$52,993

$54,635

$56,378

$58,229

$60,191

$62,270

$64,472

$66,803

$69,267

$71,873

Premium Monthly Membership Fees

$87,500

$88,813

$90,252

$91,823

$93,532

$95,384

$97,385

$99,541

$101,860

$104,347

$107,011

$109,859

Registration Fees

$8,750

$9,188

$9,647

$10,129

$10,636

$11,167

$11,726

$12,312

$12,928

$13,574

$14,253

$14,965

Other Revenues

$37,500

$38,588

$39,745

$40,976

$42,284

$43,671

$45,143

$46,703

$48,354

$50,102

$51,951

$53,905

Total Sales

$183,750

$188,038

$192,637

$197,563

$202,830

$208,451

$214,445

$220,826

$227,614

$234,826

$242,482

$250,602

Direct Unit Costs

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Standard Monthly Membership Fees

1.00%

$0.20

$0.20

$0.20

$0.20

$0.20

$0.20

$0.20

$0.20

$0.20

$0.20

$0.20

$0.20

Premium Monthly Membership Fees

1.00%

$0.25

$0.25

$0.25

$0.25

$0.25

$0.25

$0.25

$0.25

$0.25

$0.25

$0.25

$0.25

Registration Fees

50.00%

$17.50

$17.50

$17.50

$17.50

$17.50

$17.50

$17.50

$17.50

$17.50

$17.50

$17.50

$17.50

Other Revenues

60.00%

$18.00

$18.00

$18.00

$18.00

$18.00

$18.00

$18.00

$18.00

$18.00

$18.00

$18.00

$18.00

Direct Cost of Sales

Standard Monthly Membership Fees

$500

$515

$530

$546

$564

$582

$602

$623

$645

$668

$693

$719

Premium Monthly Membership Fees

$875

$888

$903

$918

$935

$954

$974

$995

$1,019

$1,043

$1,070

$1,099

Registration Fees

$4,375

$4,594

$4,823

$5,065

$5,318

$5,584

$5,863

$6,156

$6,464

$6,787

$7,126

$7,483

Other Revenues

$22,500

$23,153

$23,847

$24,586

$25,370

$26,203

$27,086

$28,022

$29,013

$30,061

$31,170

$32,343

Subtotal Direct Cost of Sales

$28,250

$29,149

$30,103

$31,115

$32,187

$33,323

$34,525

$35,796

$37,140

$38,560

$40,060

$41,643

Marketing Expense Budget

Month 1 Advertising Sales Promotions Marketing Training $2,000 $1,000 $500 Month 2 $2,000 $1,000 $500 Month 3 $2,000 $1,000 $500 Month 4 $2,000 $1,000 $500 Month 5 $2,000 $1,000 $500 Month 6 $2,000 $1,000 $500 Month 7 $2,000 $1,000 $500 Month 8 $2,000 $1,000 $500 Month 9 Month 10 Month 11 Month 12 $2,000 $1,000 $500 $2,000 $1,000 $500 $2,000 $1,000 $500 $2,000 $1,000 $500

Quality Assurance Referral Program Corporate Promotion Public Relations Website and Facebook

$500 $1,500 $500 $1,000 $500

$500 $1,500 $500 $1,000 $500

$500 $1,500 $500 $1,000 $500

$500 $1,500 $500 $1,000 $500

$500 $1,500 $500 $1,000 $500

$500 $1,500 $500 $1,000 $500

$500 $1,500 $500 $1,000 $500

$500 $1,500 $500 $1,000 $500

$500 $1,500 $500 $1,000 $500

$500 $1,500 $500 $1,000 $500

$500 $1,500 $500 $1,000 $500

$500 $1,500 $500 $1,000 $500

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -----------Total Sales and Marketing Expenses Percent of Sales $7,500 4.08% $7,500 3.99% $7,500 3.89% $7,500 3.80% $7,500 3.70% $7,500 3.60% $7,500 3.50% $7,500 3.40% $7,500 3.30% $7,500 3.19% $7,500 3.09% $7,500 2.99%

Key Marketing Metrics

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Revenue

$183,750

$188,038

$192,637

$197,563

$202,830

$208,451

$214,445

$220,826

$227,614

$234,826

$242,482

$250,602

Leads

1,250

1,313

1,378

1,447

1,519

1,595

1,675

1,759

1,847

1,939

2,036

2,138

Leads Converted

20.00%

20.00%

20.00%

20.00%

20.00%

20.00%

20.00%

20.00%

20.00%

20.00%

20.00%

20.00%

Avg. Transactions/Customer

1.25

1.25

1.26

1.26

1.26

1.26

1.27

1.27

1.27

1.27

1.28

1.28

Avg. $/Customer

$31

$31

$31

$31

$31

$31

$31

$31

$31

$31

$31

$31

Referrals

625

656

689

724

760

798

838

879

923

970

1,018

1,069

PR Mentions

Testimonials

13

13

14

14

15

16

17

18

18

19

20

21

Annual Customer Attrition

Gap Dashboard
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Personal (Marketing Director)

Hours devoted to marketing theme

20

20

20

20

20

20

20

20

20

20

20

20

Speaking engagements

Business

Total revenue

$183,750

$188,038

$192,637

$197,563

$202,830

$208,451

$214,445

$220,826

$227,614

$234,826

$242,482

$250,602

New customer registrations

250

263

276

289

304

319

335

352

369

388

407

428

Lead referrals

625

656

689

724

760

798

838

879

923

970

1,018

1,069

Tactical

Customer attrition rate

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

24%

% of Customers attending group sports

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

45%

% of Customer on Facebook application

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

30%

Strategic

Market share of Jamestown fitness industry

42%

New locations added

Customer satisfaction level

90%