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.

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.

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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.”

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
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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)

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 9 th, 2016. Some of the incentives to purchasing the Seed

through the Kickstarter were:

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  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 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*

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 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

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.

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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, 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 their goal of $30,000 USD. There some several

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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.

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.

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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 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 25 th 2013 and has technology that allows you to

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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

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

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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 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

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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)

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).

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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 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)

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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.

The Seed’s smart lid technology is compatible with various bottle shapes, functions and

materials, including stainless steel, plastic, glass, etc. 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.

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By identifying the level of supply chain and company positioning on Patt erns of

Collaboration Table one (Frayret). This will move the product from its 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 the end of 2016. 7%

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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 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

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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 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

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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 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

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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, 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.

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 S.W.O.T
Strengths (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
 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.
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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 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.

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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 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.

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 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 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.

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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

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

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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. 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
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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 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.

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

many followers and subscribers they have.

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:

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 1. LA marathon fitness expo – March 19

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.

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.

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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………………………………………………………………………………………………………………………………………..1
Moikit Mecare agreement…………………………………………………………………………………………………………………….2
Authority Nutrition…………………………………………………………………………………………………………………………………...3
StreetInsider……………………………………………………………………………………………………………………………………………...4
IBIS World OD5599 Gym & Fitness…………………………………………………………………………………………………5
Thermos information………………………………………………………………………………………………………………………………6
BluFit information…………………………………………………………………………………………………………………………………….7
Flow information……………………………………………………………………………………………………………………………………….8
Hidrateme information……………………………………………………………………………………………………………………………9
HydraCoach information………………………………………………………………………………………………………………………10
IBIS Market Report Plastic Bottle
Manufacturing………………………………………………………………………………………………………………………………………….11
IBIS Bottle Water Production…………………………………………………………………………………………………………….11.A
Industry at a Glance………………………………………………………………………………………………………………………………11.B
Identifying,Understanding Generations…………………………………………………………………………………………12
United States Census Information……………………………………………………………………………………………………13
California………………………………………………………………………………………………………………………………………………………13.A
San Diego with Personal Income……………………………………………………………………………………………………..13.B
Sacramento with personal Income…………………………………………………………………………………………………..13.C

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San Jose with Personal Income…………………………………………………………………………………………………………13.D
Oregon…………………………………………………………………………………………………………………………………………………………..13.E
Portland………………………………………………………………………………………………………………………………………………………….13.F
Washington………………………………………………………………………………………………………………………………………………….13.G
Seattle…………………………………………………………………………………………………………………………………………………………...13.H
Social Media Demographics for Marketers…………………………………………………………………………………….14
PewReasearch…………………………………………………………………………………………………………………………………………14.A
Generations by Philip Bump……………………………………………………………………………………………………………..15
IBIS Consumer Spending……………………………………………………………………………………………………………………16
IBIS Adult Consumer ages………………………………………………………………………………………………………………….16.A
IBIS Per Capita Disposable Income……………………………………………………………………………………………...16.B
Business Insider Fitness Trackers Sold………………………………………………………………………………………..17
Analysis on Smartwatches vs VR…………………………………………………………………………………………………….17.A
Smart Watch Or Fitness Tracker………………………………………………………………………………………………………18
China Building Reef Island………………………………………………………………………………………………………………….19
Cirrelt Supply Line Management……………………………………………………………………………………………………….20
IBIS WORLD Supply Chain………………………………………………………………………………………………………………...20.A
6 Factors……………………………………………………………………………………………………………………………………………………….21
Customs and Boarder Commercial Importers Guide ……………………………………………………………..22
IBIS Product Returns Supply Chain Industry……………………………………………………………………………….22.A
Iron and Metal Power Point………………………………………………………………………………………………………………….23
Finance Charts…………………………………………………………………………………………………………………………………………..24

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