Table of Contents
Executive Summary-----------------------------------------------------------------------------------------3
Company Description---------------------------------------------------------------------------------------3
Strategic Focus and Plan-----------------------------------------------------------------------------------4
a. Mission Statement
b. Marketing Goals – Financial/Non-Financial
c. Sustainable Competitive Advantage
Situation Analysis 6 a. SWOT analysis
• Internal Strengths and Weaknesses: Management, Offerings, Marketing, Personnel, Finance, Manufacturing, and Research and Development (R & D)
• External Opportunities and Threats: Consumer/Social, Economic, Technological, Competitive, and Legal/Regulatory
b. Industry Analysis
c. Competitor Analysis
d. Company Analysis
e. Customer Analysis Market-Product Focus 10
a. Marketing and Product Objectives
b. Target Markets
c. Points of Difference
d. Positioning Marketing Program 11
a. Product Strategy
b. Price Strategy
c. Breakeven Analysis
d. Promotion Strategy
e. Place (Distribution) Strategy
Financial Data and Projections 14
a. Past Sales Revenues
b. Five-Year Projections
Organizational Structure 15
Implementation 16 Evaluation and Control 17
Bibliography…………………………………………………………………………………………... 19

Executive Summary PowerGo Equipment is a partnership, family formed to produce unique indoor and outdoor exercise equipment to fitness fanatics and exercise gyms across the nation. Our company will hire knowledgeable qualified/certified staff members who will be available 24 hours for fitness advice, the proper use of our units, and customer service support. PowerGo will incorporate new age equipment that will appeal to many different consumers and construct fitness ideas using the fundamentals and theories of traditional exercise. One of the keys to success of PowerGo is the ability to market effectively using a good constructed marketing mix, offering competitive pricing, and free shipping for orders containing more than one unit. This units will provide a fun opportunity for anyone the age of 14 and up to participate in outdoor exercise activities, or exercise workouts in the privacy of their own home.
Company Description
PowerGo equipment will supply an indoor and outdoor exercise machine built for the home, athlete’s, and exercise gyms for fitness fanatics to enjoy. These exercise machines brings the old style use of an elliptical and a bicycle as one unit. PowerGo exercise machines are meant to be either used indoors as a stationary elliptical, or used outdoors similar to a bicycle. The benefits of these units include a low impact full body workout for anyone, especially people who suffer from temporary injuries, or are permanently unable to run. PowerGo equipment will be manufactured and sold from a warehouse located Marion, Ohio. The units will be partially assembled for shipment, and sent with an easy instruction manual with a video included. The idea of this equipment came into light after attending several fitness Expos and researching other similar like units on the internet. Elliptical and exercise bikes are two of the most common cardio machines found in consumers’ homes and gyms. Live Healthy chronicles posted an article written by William McCoy, a journalist specializing in health and nutrition that stated, “Set your sights on the gym’s cardio equipment-such machines as the exercise bike and elliptical training can provide an up-tempo aerobic workout that’s easy on your joints and burns calories to contribute to fat loss” (McCoy, 2014). Think about a 2 in 1 stationary/non-stationary machine that is able to be used indoors or outdoors with friends, workout buddies, or in the privacy of your own home. People tend to enjoy elliptical and bicycling equipment for their fitness needs as it can be a fun workout for all to enjoy.
Strategic Focus and Plan
This section will cover the three aspects of the strategies to prove PowerGo to be successful. This includes the mission statement, marketing goals, and competitive advantage over similar companies.
Mission Statement
PowerGo Equipment is committed to helping everyone experience a healthier way of life by providing a new, fun, and safe exercise product for friends, and families of certain ages to enjoy together. We will provide the best equipment and staff to fully meet the fitness needs of individuals who enjoy a low impact workout indoors and the outdoors. PowerGo’s employees share a vision of appreciation and affordability to fitness. Everyone should have the ease of a great workout, and enjoy the benefits of one’s workout goals.
Marketing Goals Financial/Non-Financial: The marketing goal for PowerGo fitness equipment is to have our website up and running in three months or less to advertise our units and accessories. We will differentiate the PowerGo fitness equipment from competitor’s similar equipment through aggressive advertising and promotional offers. Our goal for the first year is to generate approximately $216,000 in revenue. The business will continue to grow by generating $288,000 each year. This will allow our company to hire more knowledgeable trained certified staff members, and expand our business to more locations for our customer’s needs. PowerGo equipment is seeking $50,000 through a line of credit to secure a warehouse facility, and marketing expenses. This line of credit is forecasted to be paid off in three years. The staff of PowerGo will build the business on ethics and values. We want to become well known for our good quality equipment, exceptional customer service, and competitive pricing.
Competitive Advantage
PowerGo will offer competitive pricing, promotional offers, and pricing discounts on the purchase of two or more units. We will offer several accessories including helmets, tires and tubes, pumps, locks, and lights for outdoor use. PowerGo will have a 5-7 year warranty as other competitor’s only offer 3 years, and offer 0% interest financing. Our equipment will be priced 20% under our competitor’s prices, and is available in all colors. Two or more units sold will get a 10% discount on the final order. We believe exercise equipment should be affordable to anyone who chooses to enhance or live a healthy lifestyle. Our company will work closely with key suppliers and vendors to build a strong relationship necessary to satisfy our customers. We will only use high quality materials for our products to last, and offer the safest accessories i.e. helmets, tires, and tubes on the market today. Situational Analysis The following SWOT analysis captures the key strengths and weaknesses within our company, and describes the opportunities and threats facing PowerGo’s equipment business. Strengths Weaknesses
Internal Forces ‣ Affordable ‣ Business is unknown ‣ Strong relationship with vendors ‣ Smaller Staff ‣ Small business in a small city ‣ Product variety are limited ‣ Knowledgeable & trained staff ‣ Undetermined revenue each day ‣ Informative website Opportunities Threats
External Forces ‣ Increase company reputation ‣ Strong competitors ‣ Incorporate more products/models ‣ Price of products from other competitors ‣ Growing market ‣ Competitor has different/better productivity ‣ Giving back to the community ‣ Current Advertising not sufficient

PowerGo strengths include offering affordable exercise equipment for families of all average incomes to enjoy, and building a strong relationship with our local suppliers and vendors. We believe living a healthy lifestyle mixed with fun filled activities should not be expensive to the average consumer. We live in a small town, with a median resident age of 37 years old. These statistics include the highest number of people in the age bracket of 20-24 years old. Our staff has been trained in fitness techniques, retail/sales, equipment usage, and leadership skills to enhance the customer’s experience. The website will give any person looking for home fitness equipment an informative view, contact information, 24 hour customer service, and also include reviews and testimonies from previous consumer purchases. PowerGo is unfavorable as the business is not well known, and we only employ a small amount of staff members. We must engage in building the business through aggressive advertising, and offer the limited amount of products we supply as “the best equipment on the market”. The business of selling unique exercise equipment creates an opportunity to increase our company’s reputation, and incorporate through time new models and products. This is a growing market as people of all ages are looking for a new way to engage in physical exercise. We want our community and others to feel the benefits of living a healthier lifestyle, and providing these products will enhance this way of living. Innovation and technology will have to be looked at all angles to incorporate new ideas. Threats include other competitors products, pricing techniques, and better productivity overall. PowerGo will need to be sufficient in our marketing, innovation and advertising strategies to provide the awareness, new ideas, and the benefits of our products.
Industry Analysis According to IBIS World, the fitness equipment manufacturing industry is trending from a younger, more active generation. This has contributed to the rise in the sales of exercise equipment, and has led to the overall revenue growth of this industry. Consumers have become increasingly health conscious, anti-obesity campaigns are on the rise, and the demand for this equipment in gyms, homes, and fitness centers are increasing. “With an obesity epidemic in the United States, fitness and weight loss has been growing in popularity, if not becoming an obsession” (Franchisehelp.com). Home fitness seems to being trending upward as people are discovering the convenience of exercising at home. In 1998, Connie Koenenn, a Los Angeles Time staff writer stated “Kelly Brown belonged to a gym and liked working out, but was so involved in the family marketing business that is was a hassle to get there” (Koenenn, 1998). For many busy lifestyles, the choice or solution is to bring the gym home. The fitness equipment industry is forecasted to grow 3.5% over the next 5 years, and reach $10.6 billion by 2018 (Lucintel.com). The concern and awareness for living a healthy life, exercising and the physical benefits are the major drivers for this demand. Innovation, new ideas, and introducing new technology will maintain the market and also drive growth. The sales of fitness equipment for home use in the U.S. from 1996 to 2013 have reached 3.18 billion U.S. dollars (statista.com).
Competitor Analysis The U.S. consumer fitness equipment market is currently a $3.2 billion dollar industry, and PowerGo equipment faces competition from several large competitors. Precor is a large fitness equipment manufacture of both home and fitness clubs. This company is a subsidiary of Amer Sports Corporation, recognized internationally, and sells to a poplar list of brands. Paramount is also a large fitness equipment manufacturer for fitness gyms, but do not sell home fitness equipment. There are several other companies including Cybex, who sell a variety of light-commercial, higher quality, mid-price fitness equipment that may be used in the home, but is preferred as commercial style equipment. StreetStrider will be the biggest competitor for PowerGo equipment. They make a similar design, but offer their units at a higher price with no incentives included. Their units must be returned within 30 days, but they make the customer pay shipping fees. The advantage of PowerGo equipment is in the design, price and warranty. PowerGo equipment will need to analyze and strategically price the units to be competitive with StreetStrider. Our products may be similar in looks, but we will offer better deals, options, and warranty coverage for our customers.
Company Analysis
PowerGo is a start-up family oriented business with experience in fitness and exercise equipment. Each member of this team brings unique advantages with knowledge of customer service, fitness advice, and years of fitness equipment experience. PowerGo has a strong relationship with the local businesses that will provide the high quality sturdy material for the equipment. We together in the community focus on what is needed, and what fits with our consumer’s wants and needs. Our company is focused on understanding buyers, markets, and managing the marketing process by using an informative website providing everything the buyer needs to know about the product and business. We will make strategic decisions reflecting the important aspects of the industry to create a sustaining advantage, and achieve a high level of performance not only for our business, but for our consumers. Our strategies will set the direction to deliver a unique customer experience while achieving our goals.
Customer Analysis The customer analysis describes the characteristics of customers expected to buy PowerGo’s exercise equipment with the concern of finding the time to exercise. Gym memberships have slipped since 2006, and are expected to decline further due to recessionary times, and the need to find time that fits with a busy lifestyle. The sale of home exercise equipment has continued to grow in recent years, and is expected to continue. PowerGo expects customers looking for a great workout experience with their families, without the hassle of paying too much. We want this fitness equipment to be affordable for the average income household, as well as experiencing a unique fun workout. The equipment PowerGo provides can be used by many people who experience joint pain and excessive weight, and our units will strengthen legs, hips, and gluts more by ramping up the resistance to work your muscles at whatever pace the customer chooses. PowerGo has also targeted customers who enjoy the outside experience of a workout, without the strain of running or jogging in order to achieve this experience, and has the option of a stationary or outdoor elliptical bike. PowerGo gives the customers options to fit their busy lifestyles.
Market Product Focus This section will describe the marketing and product objectives, target markets with points of difference, and the positioning of PowerGo’s fitness equipment.
Marketing and Product Objectives PowerGo’s objective is to estimate the size of the market, expected growth, competitive position, cost for reaching the segment, and compatibility of our company’s objectives and resources. The market size determines an important factor on deciding the worth of the business. The current sales of fitness equipment are growing as the need for home fitness equipment is increasing. Distributors sell the bulk of fitness equipment. Sixty percent of the fitness club market is composed of independent clubs, which purchase their equipment through distributors. Health clubs are the second largest market of fitness equipment, behind the sales of home fitness equipment. Health clubs are seeing a shift as their customers are choosing home equipment use as a convenient way to stay in shape. PowerGo’s marketing and product objectives are to target customers who prefer convenient home use, easy assembly for our units, and many accessories to provide a safe and fun workout. Our product objectives are to consistently identify and stay current with new innovation, technology, and the needs and wants of our consumers. These new concepts will be brought to the market after the first year of business. Our goal for the first year is to generate approximately two-hundred and sixteen thousand dollars in revenue. Our website will be up and running by the first month of operation, and the business will continue to grow by generating two-hundred and eighty eight thousand each year for the next 5 years.
Target Markets The primary target market for PowerGo fitness equipment is ages fourteen and up for all household members, with an individual income equal to or greater than forty-thousand per year. Locally the average age is twenty-twenty four as the town we live in has one university, and one local community college. We will offer our products locally; however our plan is to use a website for most of our business.
Points of Difference The points of difference or characteristics of PowerGo will make our company unique from similar products sold by other competitors today. In this competitive line of business, PowerGo will offer special promotional deals including ten percent off the buying of two or more units with free shipping, twenty percent under similar competitor units, and a five-seven year warranty on every unit. We will aggressively advertise our units through social media, offer discount pricing certain times of the year, and offer a 0% financing through the life of the loan. Our unique design comes in every color, and a free helmet is included with each unit ordered, with an option to buy other accessories. Our customer support team will be available twenty-four hours a day, are trained specifically on the use of these machines with knowledge of fitness exercises. If a customer does not like our units, we will provide a thirty day guarantee for free shipping with the return of any unit.
Positioning
There are many units similar to PowerGo’s equipment on the market today that seem too high on price, making it difficult for many average households to buy. PowerGo will position themselves from the current competitor by producing high quality equipment at a more affordable price. Along with our special promotional offers, we will add a comparison section and training videos on our website for customers to determine if our units are right for their budget, and the proper and most efficient use our the equipment. This is PowerGo’s effort to influence consumer perception of our brand relative to other competing brands.
Marketing Program
The marketing mix elements of the PowerGo marketing program are detailed below. PowerGo equipment is designed “uniquely” and built to enjoy a fun filled workout.
Product Strategy Our strategy for this product is high quality built machines, packaged partly together for easy assemble. Our local vendor supplies good quality equipment, and offers the materials in any color. Each part is inspected for quality defects against specifications, and the packaging will contain our company logo, along with foam support to prevent shipping damage.
Price Strategy PowerGo significant advantage is selling our units under the current competitors pricing. Our units will start at $1200.00 per unit, priced comparably to the other units and varieties on the market. One unit per order will include a free helmet, with the option of buying more or other accessories needed for a great experience. Our accessories include affordable replacement parts, and other options to accommodate customer’s needs. PowerGo will also offer a 10% discount on the total order for buying two or more units.
Breakeven Analysis PowerGo equipment’s break-even point is at 10 units a month with monthly sales at $12,000. Sales forecasts indicate that units sold and monthly sales are expected to be much greater than the break-even point mentioned above. Total fixed costs for the year are expected to be $125,000, and variable costs at $140,000. Total cost for the year equals to $265,000. The assumptions are:
Average per unit revenue = $1,200.
Average per unit variable cost = $117.00
Estimated monthly fixed cost = $10,416.66.
Break-even point and profit analysis table. Promotion Strategy Key promotional strategies include special offers off orders of 2 units or more, pricing under our competitors, and our five-seven year warranty. If a customer decides to return a unit within thirty days, shipping will be free and they will receive a full refund. This is to encourage an in home try or test of the unit before deciding to purchase. Units will be set up at our warehouse for local customers to try and decide of the unit is specific to what they are looking for. At certain times of the year i.e. holidays, spring time, and special events, PowerGo equipment will also offer discounted or clearance items to our customers. This will also support the efforts of decreasing old stock items in the warehouse.
Place Strategy PowerGo fitness equipment will distribute directly from our warehouse to the customer. We will use a local vendor for all parts and accessories, inspect and partially assemble the units to be ready for shipping. We will keep a small stock of items based off of consumer buying trends. As sales grow, we will open more locations, and use an efficient tracking system of all in house stock, materials, orders and customers.
Financial Data Projections The following sections will outline important financial information for PowerGo equipment.
Past Sales Revenues Historically, PowerGo fitness equipment has had a steady increase in sales revenue since its introduction in the fitness industry in late 2014. Sales jumped outstandingly, due to the promotional strategies, demographics, discounts and pricing compared to other similar models sold from competitors.
Five Year Projections The Five-year financial projections for PowerGo fitness equipment appear in the graph below. These projections will reflect the continuing growth in number of units sold. In the next five years, PowerGo should produce revenue from the two different styles of units offered.
Financial Element

Years 1-5 2015 2016 2017 2018 2019
Units Sold 150 165 183 197 200
Net Sales (Yearly) $180,000 $198,000 $219,600 $236,400 $240,000
Gross Profit (Monthly) $4583.34 $6083.34 $7883.34 $9283.34 $9583.34
Organizational Structure PowerGo’s present organization appears below. It shows the people reporting to the owner of the business. Below this level are both full time and part time employees of the company. Currently, PowerGo fitness equipment will operate with full time employees in only essential positions. PowerGo key staff members operate full time to advertise & market, work with vendors, and provide 24hr customer service. This is includes fitness advice, assembly of our units, and overall customer satisfaction. We plan to hire or increase part-time labor as our needs grow.
Implementation
There are significant milestones to be achieved for PowerGo to implement and sustain a successful business. The first milestone for PowerGo will be the distribution of an ad in the local and surrounding areas newspapers to announce our grand opening celebration. This is to gain awareness in our local community. This ad will also include our website, directions to location, and our promotional offerings. We will mail flyers and invitations to our local vendors, and fitness gyms to participate in the activities. The activities will include a barbeque outside, refreshments, our own fitness trainers conducting demo’s on the use of the equipment, conduct a 50/50 raffle, and a drawing to win a brand new unit. Part of the proceeds will go to the Nationwide Children’s Hospital. PowerGo will also offer promotional discounts to local businesses in the area for advertising our products. PowerGo’s second milestone will be to build the relationships from cliental and vendors to grow the business, and eventually open a new location. This is done by providing excellent customer service, and also advertising for our vendors. Research will lead our company into innovation, which will enhance and build new products. The new location is forecasted to begin the following year. Our third milestone at PowerGo is to maintain and consistently update our website with the proper information needed to market our brand. We will use real life videos, and actual information from the users of our products. Our website will be simple to navigate, and include vendor information, feedback section, hours of operation, a summary or description of our company, and the values each member shares within the company. It’s extremely important for the website to be user friendly for all customers. During the grand opening, we will offer free products for ordering within the allotted time frame. This is to branch out our services to customers who are not able to attend our event.
Evaluation and Control The successful implementation of this plan rests with the organizational ability of our core staff members, and they are responsible for their performance. The monthly sales targets in units will be monitored closely. PowerGo will assess their financials quarterly to compare actual sales revenue versus our forecast. Our marketing strategies moving forward will be contingent on customer feedback, monthly sales, and the quality of our equipment. Research to provide new innovation will be a consistent factor in our everyday operations. Our team at PowerGo is dedicated to provide a safe, fun and a new style of fitness equipment for all to enjoy, while focusing on a healthy lifestyle.