FCP Wellness SaaS Action Plan Example 1.0

Action Plan Example
Wellness SaaS

PREPARED BY
The First Customer Program
BY

Grace Hsia
Project Manager

ON
August 21, 2014
AT THE
Institute for Research on Labor, Employment, & the Economy

FUNDED BY

Wellness SaaS Startup LLC First Customer Program August 21
th
2014
T his information is confidential and presented by IRLEE at the University of Michigan to the client. T he copying or re-transmission of
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Regents are the legal owners of University faculty and staff products. The information presented here is intended for informational purposes.

2

Table of Contents
FCP Assessment............................................................................................................................... 5
Problem Identification .................................................................................................................... 5
Value Proposition .......................................................................................................................... 6
Technology/Service ....................................................................................................................... 6
Market for Employers/Corporate Workforce and Wellness Managers ................................................ 6
Total Addressable Market (TAM) I ................................................................................................. 6
Total Addressable Market (TAM) II................................................................................................ 7
Served Available Market (SAM) II ................................................................................................. 8
Customer Validation................................................................................................................... 8
Market for Wellness Companies ..................................................................................................... 9
Business Model & Financial Model............................................................................................... 12
Team........................................................................................................................................... 12
Competition for Employers/Corporate Workforce and Wellness Managers ...................................... 13
Indirect Competitors ................................................................................................................. 21
Porter’s Five Forces Model of Competition for Employers/Corporate Workforce and Wellness
Managers ................................................................................................................................ 23
Competition for Wellness Companies............................................................................................ 24
Porter’s Five Forces Model of Competition for Wellness Companies ....................................... 25
Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis ......................................... 27
Recommended Action & Project(s) ................................................................................................ 28
Path to First Customer .................................................................................................................. 28
Recommendations, Specific Actions, and Tactical Plans................................................................. 28
Appendix I: Pre-Screening Call Notes............................................. Error! Bookmark not defined.
Appendix II: Market Specific Overview ........................................................................................ 29
Background on Application Service Provisioning (SaaS) and Corporate Wellness ................. 29
Appendix III: Some Medium Size Companies with Corporate Wellness Program ......................... 30
Kathy Ginsburg ............................................................................................................................... 31
(HR Manager) ................................................................................................................................. 31
Nutrition, Health, and Fitness Monitoring Apps ............................................................................. 32

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3

Nutrition and Fitness Monitoring Apps.......................................................................................... 33
Fitness Monitoring Apps .............................................................................................................. 34
Food Monitoring Apps ................................................................................................................. 36
Nestlé - Jenny Craig ..................................................................................................................... 36

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2014
T his information is confidential and presented by IRLEE at the University of Michigan to the client. T he copying or re-transmission of
copyrighted works in documents, document collections, or homepages without the expressed written permission of the copyright owner or the
existence of fair use is prohibited. Additional information about copyright laws is available through the University Library copyright site. T he
Regents are the legal owners of University faculty and staff products. The information presented here is intended for informational purposes.

4

Executive Summary
Wellness SaaS Startup LLC is seeking to develop a digital assessment tool called the Vita=Mind
Assessment.

At the time of pre-screening, client indicated the early stage of the product. However, the FCP team will
forward a market specific overview. The pre-screening demonstrated that the principal at Wellness SaaS
Startup LLC could greatly benefit from market intelligence and some pricing related to target audiences
including: employers/corporate workforce and wellness managers (Chief Medical Officer equivalents),
wellness and fitness firms, health plans and other third party payers, and individuals.

At this time, the First Customer Program (FCP) will provide market intelligence; keep up to date with
product development and recommend that the designer and Wellness SaaS Startup LLC develops the
product with iterative user feedback and perform customer discovery & customer validation; and share
updates related to pricing.

Wellness SaaS Startup LLC is recommended by the FCP team to consider product differentiation through
validating their tool using a case study through a corporate client or wellness/nutritional firm or running a
controlled, repeatable clinical study or pilot. Without significant clinical product differentiation,
Wellness SaaS Startup LLC risks losing market share to competitors with more long-standing reputations
and established networks.

Calculate the cost saving that Wellness SaaS Startup LLC could provide the customers
(employers/corporate workforce and wellness managers – Chief Medical Officer equivalents)
o The calculation could be based on improved productivity, employee utilization, and potential
healthcare savings in the future.

Calculate the customer lifetime value to determine the upper limit on customer acquisition cost
(may be useful for wellness managers, wellness and fitness firms, health plans and other third party
payers)
o Customer lifetime value is a prediction of the net profit (or gross profit for start-ups) attributed to
the entire future relationship with a customer. It’s an important number because it represents an
upper limit on spending to acquire new customers.
1

See Appendix I for pre-screening call notes. Some of it has been implemented into this market specific
overview.

1
http://en.wikipedia.org/wiki/Customer_lifetime_value

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2014
T his information is confidential and presented by IRLEE at the University of Michigan to the client. T he copying or re-transmission of
copyrighted works in documents, document collections, or homepages without the expressed written permission of the copyright owner or the
existence of fair use is prohibited. Additional information about copyright laws is available through the University Library copyright site. T he
Regents are the legal owners of University faculty and staff products. The information presented here is intended for informational purposes.

5

FCP Assessment
Problem Identification
Work-related or workplace stress is a response US adults have when presented with work demands and
pressures that are not matched to their knowledge and abilities and challenge their ability to cope.
Workplace stress results in significant costs owing to absenteeism, presenteeism, greater compensation
claims, health risks, and insurance expenses. The 2012 Workplace Survey released by the American
Psychological Association correlates that US workers report chronic work-related stress with 41% feeling
“tense or stressed out during the workday.” Studies cited by the National Institute for Occupational Safety
and Health (NIOSH) indicate that 40% of all workers today feel overworked, overpressured, and
squeezed to the point of anxiety, depression, and disease.
2
In 2002, occupational stress and poor employee
mental health costs were estimated to be $18,864 per person and cost US businesses over $300 billion
dollars a year. Studies on US working men and women show chronic workplace stress has been shown to
lead to increased incidence of cardiovascular disease, cancer, stroke, osteoporosis, and diabetes. One
study followed 17,000 healthy women with an average age of 57 for 10 years and found a 40% higher risk
of heart attacks than less-stressed female colleagues.
3
A 15-year study of nurses in Denmark found that
the greater the work pressure, the higher the risk for heart disease among women ages 51 and under.
4

The burden of chronic disease is growing in the United States as the prevalence of obesity and physical
inactivity is increasing incidence of diabetes and cardiovascular disease. Particularly worrisome is that the
onset of chronic disease is shifting to younger patient populations who are still active in the workforce.
This shift is increasing the economic burden of chronic disease as illness-related loss of productivity is
added to the cost of medical care. Obese employees (BMI > 35) have 4.2% higher health-related
productivity loss, equal to $506 per employee per year.
5
Medical costs paid for obese individuals $1,429
higher annually than for normal weight.
6
The cost of obesity itself, including direct health expenditures
and indirect costs from loss of productivity, has been estimated to be more than $140B.
7
To counter this
trend, employers are adopting health promotion and disease prevention strategies to take advantage of
their access to employees at an age when interventions directed at healthy behaviors can still change the
trajectory of their long-term health.
8
However, employers typically do not have the team or expertise to
institute a wellness management program or tools for managing, administering, and delivering results
(such as weight loss) as well as keeping employees engaged and making sustainable life changes.
Currently, there has also been a favorable political and cultural shift to encourage healthier eating and

2
“Are you Working T oo Hard?” Harvard Business Review. November 2005. Web. < http://hbr.org/2005/11/are-you-working-too-hard/ar/1>
3
"Women, Work, Stress, and Heart Disease: 5 Ways to Protect Yourself." HEALTHbeat Archive. Harvard, 15 Feb. 2011. Web. 25 Mar. 2014.
<http://www.health.harvard.edu/healthbeat/women-work-stress-and-heart-disease-5-ways-to-protect-yourself>.
4
Journal of Occupational and Environmental Medicine, May 2010.
5
Gates DM, Succop P, Brehm BJ, Gillespie GL, Sommers BD. Obesity and presenteeism: the impact of body mass index on workplace
productivity. J Occup Environ Med. 2008;50(1):39-45.
6
Finkelstein EA, Trogdon JG, Cohen JW, Dietz W. Annual medical spending attributable to obesity: payer- and service-specific estimates.
Health Affairs. 2009;28(5):w822-831.
7
Santos, Eric. "Weight Loss Markets for Products and Services." Market Research Report FOD027C. BCC Research, Oct. 2010. Web. 13 Dec.
2013. <http://www.bccresearch.com/market-research/food-and-beverage/weight-loss-markets-products-services-fod027c.html>.
8
A Review of the U.S. Workplace Wellness Market, July 2012 : Soeren Mattke, Christopher Schnyer, Kristin R. Van Busum

Wellness SaaS Startup LLC First Customer Program August 21
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2014
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copyrighted works in documents, document collections, or homepages without the expressed written permission of the copyright owner or the
existence of fair use is prohibited. Additional information about copyright laws is available through the University Library copyright site. T he
Regents are the legal owners of University faculty and staff products. The information presented here is intended for informational purposes.

6

lifestyles.
9
President Barack Obama and First Lady Michelle Obama have brought political momentum to
corporate wellness initiatives by supporting the “Task Force on Childhood Obesity,” The Let’s Move!
Campaign, The Affordable Care Act (ObamaCare). There is a significant opportunity in providing an
online wellness and health management platform for information management and analytics. Another part
of the problem is that people do not have a good sense of keeping mental sharpness and if they do it is a
misconception based on available products in the market. Like Luminosity it is incorrect; you do need to
keep mental sharpness exercises challenging so that they do not become routine. To be successful,
numerous experts have recommended that health and wellness systems, apps or programs, have to
succeed in building lifestyle changes, building positive reinforcement sometimes with up-front short term
goals, and provide specific treatment and guidance to individuals to help them think about their health.
Long term change happens either through changing environments or taking small, incremental steps or
lifestyle changes.
10, 11
Studies have yet to yield clinical evidence demonstrating effectiveness, efficacy,
and long term lifestyle changes. There are no large-scale clinical trials planned for these directly
competitive programs or indirect competitor apps. Current technologies remain limited in scope and
impact, clinical efficacy, and effectiveness. Most current technologies also lack a scientific foundation
and display no evidence of professional healthcare involvement.
12, 13
Finally, there is the potential to run a
clinical trial or pilot. Current products lack clinical validation and (often) scientific basis for
recommendations.
Value Proposition
Value propositions are not as fully detailed owing to the current product requiring continued
development. Current hypothesized value propositions include cost savings to the end user and the
healthcare provider as well as the ability to provide greater control/responsibility over end user initiatives
to improve help with analytics and end user trend summaries.
Technology/Service
The product will be developed and discussed in this section in greater detail.
Market for Employers/Corporate Workforce and Wellness Managers
Total Addressable Market (TAM) I
According to an IBISWorld report on Corporate Coaching in the US
14
, the revenue in 2013 for the
industry will top $8.8 billion and is expected to grow at an annual rate of 3.9% to $10.6bn in 2018, due to
improved corporate profits and the increased popularity of online training. Figure 1 illustrates the key
statistics of this industry.

9
Santos, Eric. "Weight Loss Markets for Products and Services." Market Research Report FOD027C. BCC Research, Oct. 2010. Web. 13 Dec.
2013. <http://www.bccresearch.com/market-research/food-and-beverage/weight-loss-markets-products-services-fod027c.html>.
10
Chesanow, Neil, Ph.D., and B. J. Fogg, Ph.D. "Can Health Apps Help Patients Change Their Behavior?" Appscape: Business of Medicine.
Medscape, 27 June 2013. Web. 16 Dec. 2013. <http://www.medscape.com/viewarticle/806734>.
11
"Johns Hopkins Studying Effectiveness of Mobile Health Applications." News Archive. IHealthBeat, 15 Mar. 2012. Web. 16 Dec. 2013.
<http://www.ihealthbeat.org/articles/2012/3/15/johns-hopkins-studying-effectiveness-of-mobile-health-applications>.
12
Dolan PL. What's missing from many health apps -- medical expertise. American Medical News. May 13, 2013.
http://www.amednews.com/article/20130513/business/130519995/6/#exli Accessed May 30, 2013.
13
Chesanow, Neil, Ph.D., and B. J. Fogg, Ph.D. "Can Health Apps Help Patients Change Their Behavior?" Appscape: Business of Medicine.
Medscape, 27 June 2013. Web. 16 Dec. 2013. <http://www.medscape.com/viewarticle/806734>.
14
Lerman, Sally, IBISWorld report 61143: Business coaching in the US, November 2013

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2014
T his information is confidential and presented by IRLEE at the University of Michigan to the client. T he copying or re-transmission of
copyrighted works in documents, document collections, or homepages without the expressed written permission of the copyright owner or the
existence of fair use is prohibited. Additional information about copyright laws is available through the University Library copyright site. T he
Regents are the legal owners of University faculty and staff products. The information presented here is intended for informational purposes.

7

Figure 1 (Source: IBISWorld)
Total Addressable Market (TAM) II
According to a more recent IBISWorld report on Business Coaching in the US
15
, the US revenue in 2014
for the industry will top $9.2 billion and is expected to grow at an annual rate of 3.7% to $11 billion in
2019, due to improved corporate profits, employment rates, and the increased popularity of online
training. In the future, online training is anticipated to be adopted by the early majority for its
affordability, flexibility in training, and lower operating costs for training providers. Figure 2 illustrates
the key statistics of this industry.

Figure 2. Key statistics of the Business Coaching in the US market.
Served Available Market (SAM) I
Figure 3 depicts the market segments of Corporate Coaching in the US.
16
The management development
training and quality assurance training segments have revenues of $2.9 billion, representing 33% of the
total addressable market.

Figure 3. Source: IBISWorld)

15
Lerman, Sally, IBISWorld report 61143: Business Coaching in the US, March 2014
16
Lerman, Sally, IBISWorld report 61143: Business coaching in the US, November 2013

Wellness SaaS Startup LLC First Customer Program August 21
th
2014
T his information is confidential and presented by IRLEE at the University of Michigan to the client. T he copying or re-transmission of
copyrighted works in documents, document collections, or homepages without the expressed written permission of the copyright owner or the
existence of fair use is prohibited. Additional information about copyright laws is available through the University Library copyright site. T he
Regents are the legal owners of University faculty and staff products. The information presented here is intended for informational purposes.

8

Served Available Market (SAM) II
Figure 4 depicts the market segments of Business Coaching in the US.
17
The management development
training and quality assurance training segments have revenues of $3.04 billion, representing 33% of the
total addressable market.
Figure 4. Source: IBISWorld
Target Market (TM)
The ideal medium to large employer customer profile is a firm whose executives or HR is seeking
solutions to improve productivity, energy, and engagement in their employee base and may have the
means to do so with an established corporate internal development program. The Chartered Institute of
Personnel and Development (CIPD) runs an annual CIPD/Simplyhealth Absence Management survey has
consistently demonstrated that as employer size increases, the absenteeism will also increase. The highest
absence levels are in the public services sector (8.7 days per employee per year) and lowest in the
manufacturing and production sector (6 days per employee per year).
18
The sales team could sell directly
to corporations, reaching out to corporate health divisions and stakeholders in HR and talent management.
Ideally a sales strategy would also involve getting buy in and support from healthcare vendors, such as
American Specialty Health and Healthy Roads, as well as insurance companies and brokers to distribute.
Healthy Roads has shown interest in offering robust mental health, stress management and resiliency
training programs. There may be some technical scalability challenges. There is a critical need to be
aware of the importance of developing an automatic product with high touch points with end users to
convince decision-makers in the corporate sector of the useful outcomes of the Wellness SaaS Startup
product. The FCP is of the opinion that the calculation of cost benefits the product could create could help
greatly with marketing and sales as well. All of the company’s written and recorded materials have been
submitted to the US copyright office and the founder is very careful not to release written material.
Customer Validation
The product Vita=Mind has not been validated or tested by customers.

17
Lerman, Sally, IBISWorld report 61143: Business Coaching in the US, March 2014
18
“Absence Management 2013.” CIPD/Simplyhealth Absence Management Survey. Chartered Institute of Personnel Development (CIPD).
October 2013. Accessed 3/28/2014. <http://www.cipd.co.uk/binaries/6325%20Annual%20AbMan%20SR%20(WEB).pdf>

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T his information is confidential and presented by IRLEE at the University of Michigan to the client. T he copying or re-transmission of
copyrighted works in documents, document collections, or homepages without the expressed written permission of the copyright owner or the
existence of fair use is prohibited. Additional information about copyright laws is available through the University Library copyright site. T he
Regents are the legal owners of University faculty and staff products. The information presented here is intended for informational purposes.

9

Market for Wellness Companies
The client Wellness SaaS Startup LLC is also considering targeting small and medium-size firms,
nutritionists, corporate wellness program coaches, and insurance brokers. Current methods of reaching
target markets include holding wellness events (Table 1), cold calling, email advertising, website, and
social media advertisements on Facebook, Twitter, and LinkedIn. There may be opportunities to exhibit at
trade shows.

Total Addressable Market (TAM)
Estimated global market size of the workplace wellness is $30.70 billion in 2010 as seen in Figure 5.
19

Figure 5.
Served Available Market
Estimated market size of the workplace wellness in US is $2.0 billion in US, with 4.3% annual growth
rate for 2007-2013 and 9.5% projected annual growth rate for 2012-2017. Figure 6 illustrates the key
statistics and Figures 4 and 5 (next page) illustrate the market segments.
20

Figure 6

19
http://www.statista.com/statistics/270720/market-size-of-the-wellness-industry-by-segment/
20
IBISWorld Industry Report OD4621: Corporate Wellness Services

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2014
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copyrighted works in documents, document collections, or homepages without the expressed written permission of the copyright owner or the
existence of fair use is prohibited. Additional information about copyright laws is available through the University Library copyright site. T he
Regents are the legal owners of University faculty and staff products. The information presented here is intended for informational purposes.

10

Target Market
The target market segment is weight
management, nutrition, fitness
services and other services. This
target market is estimated to be worth
$1.07 billion, representing 53.5% of
the total US workplace wellness
market. These companies comprise
33% of the target market with
estimated worth of $660 million.
21

(Figure 7) The target market of small
to mid-size businesses will differ in
the size and scope of their wellness
programs based on the health,
profitability, and adoption
willingness of the firms and their
employees. Mid-sized firms are more
likely to invest more money into
wellness programs than mom-and-
pop and other similarly small
businesses.
22

In addition to small and mid-size
businesses, target market segments
may include dieticians, nutritionists, and insurance brokers.
If one assumes that a health and wellness information management system is of great interest for
dieticians/nutritionists, the market size for nutritionists and dieticians can be estimated to be $78.5
million
23,24,25
The market size for nutritionists and dieticians includes establishments of health
practitioners who have a bachelor’s degree, licensure, certification or registration for advising on diet,
nutrition, and their effects on health. Practitioners operate private or group practices in their own offices
or in the facilities of others (hospitals or other medical centers). There are no major players among the
nutritionists and dieticians and this market is characterized by a large number of small-scale
establishments that service relatively narrow, geographically dispersed markets. The 4 largest players
account for less than 10% of the industry revenue and the market is highly fragmented. Most firms

21
IBISWorld Industry Report OD4621: Corporate Wellness Services
22
Small businesses are defined as less than 250 workers and mid-size businesses as 250 to 500 employees.
23
Of the different kinds of dieticians (clinical, community, management, and consultant), it appears that the consultant dieticians have greater
autonomy to make purchasing decisions for a wellness and information management system.
24
Rhea, Marsha, MPA, CAE, and Craig Bettles, MA. "Future Changes Driving Dietetics Workforce Supply and Demand: Future Scan 2012-
2022." Workforce Demand Study: Results and Recommendations. Journal of the Academy of Nutrition and Dietetics, Mar. 2012. Web. 16 Dec.
2013.
<http://www.etsu.edu/125/taskforces/The_Health_Sciences/documents/Dietetics%20Workforce%20Supply%20and%20DemandFuture%20Chan
ges%20Driving%20.pdf>.
25
$78.5 million = (T otal Revenue Generated in Industry Sector $5.1B)*(7.4% of Revenue is to Other Expenses)*(20.8% Consultant
Dietitians/Nutritionists)
Figure 7
Figure 9

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copyrighted works in documents, document collections, or homepages without the expressed written permission of the copyright owner or the
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11

employ less than 5 people.
26
Profit margins are estimated to be 10.5% of revenue as of 2012 and may be
decreasing owing to the recession and rising wage costs. Level of technology change or purchase is low
and technologies purchased/used include computers, strategies for making clients healthier, and various
health monitoring equipment such as blood glucose monitors to bathroom scales. The target market of
insurance brokers and agencies (NAICS 524210) appears to include 577 establishments that specialize in
third party administration and management of healthcare and/or welfare funds/plans.
27
The estimated total
target market size is worth $0.025 million.
28,29

This solution may be useful for other diet and weight reducing centers and service providers such as
fitness centers and weight loss centers which market directly to consumers.
30
Fitness centers, also called
gyms and health clubs, provide fitness equipment and are estimated to be worth $1.69 million.
31,32
Weight
loss centers, such as Weight Watchers or Jenny Craig, are commercial facilities that offer consumers
rounded weight loss programs a reasonable price. Weight loss centers are a small market opportunity
estimated to be worth $92,400.
33,34
Most fitness centers and weight loss centers who have tried to offer
weight loss counseling have not achieved success largely because of lack of education and training of the
staff to work with patients and provide positive reinforcement.
35
Despite a worsening obesity epidemic in
the United States, weight-loss program providers such as Jenny Craig, Weight Watchers International
(WTW.N), HMR, and Medifast Inc (MED.N) have been hit hard by weak economies and competition
from a host of electronic apps that count calories for free.
36

Table 2. U.S. MARKET FOR CONSUMER SERVICES, THROUGH 2014 ($ MILLIONS)
Segment 2007 2008 2009 2014
CAGR%
2009–2014
Fitness centers 18,500 19,100 19,500 21,450 1.9
Weight loss centers 1,409 1,523 1,170 1,155 -0.3
Total 19,909 20,623 20,670 22,605 1.8
Source: BC C Research, Weight Loss Markets for Products and Services, Oc. 2010
37

There is a need to determine channels for fast entry into a target market. The company could also benefit
from review and concerted development of their sales process.

26
Son, Anna. "Nutritionists & Dieticians | IBISWorld Industry Report OD5460." IBISWorld. N.p., Oct. 2012. Web. 16 Dec. 2013.
27
"Finance and Insurance: Subject Series - Product Lines: Product Lines Statistics by Kind of Business for the US." American FactFinder -
Results EC0752SLLS1. 2007 US Economic Census, 2007. Web. 16 Dec. 2013.
<http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_52SLLS1>.
28
$25,515 = (T otal receipts of establishments $1,342,874)*(Purchases made of 1.9% according to IBIS World US Industry Report 52421)
29
Hoopes, Stephen. "Insurance Brokers & Agencies | US Industry Report 52421." IBISWorld. N.p., Nov. 2013. Web. 16 Dec. 2013.
30
Santos, Eric. "Weight Loss Markets for Products and Services." Market Research Report FOD027C. BCC Research, Oct. 2010. Web. 13 Dec.
2013. <http://www.bccresearch.com/market-research/food-and-beverage/weight-loss-markets-products-services-fod027c.html>.
31
T urk, Sarah. "Gym, Health, & Fitness Clubs | IBISWorld Industry Report 71394."IBISWorld. N.p., Nov. 2013. Web. 16 Dec. 2013.
32
$1.69 million = ($21,450,000 total revenues in industry sector)*(7.9% spending on all other expenses)
33
Moldvay, Caitlin. "Weight Loss Services in the US | IBISWorld Industry Report 81219a."IBISWorld. N.p., July 2013. Web. 16 Dec. 2013.
34
$92,400 = ($1,155,000 revenues in industry)*(8% spending on all other expenses)
35
T here continues, among staff, to be negative attitudes towards overweight people.
36
Geller, Martinne, and Silke Koltrowitz. "Nestle Sells Most of Jenny Craig in Slimming Drive."Reuters. Thomson Reuters, 07 Nov. 2013. Web.
13 Dec. 2013. <http://www.reuters.com/article/2013/11/07/us-nestle-jennycraig-idUSBRE9A606X20131107>.
37
Note to Research Teams: A revised Weight Loss Markets for Products and Services will be released in January 2014. The report code is
FOD027D.

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2014
T his information is confidential and presented by IRLEE at the University of Michigan to the client. T he copying or re-transmission of
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existence of fair use is prohibited. Additional information about copyright laws is available through the University Library copyright site. T he
Regents are the legal owners of University faculty and staff products. The information presented here is intended for informational purposes.

12

Business Model & Financial Model
The table below presents an example of pricing in this space.

Product Description Duration of Use/Access Delivery Method Pricing
Course with long term
improvements in
employee engagement,
resiliency, perceived
stress, vigor, energy,
and mindfulness.
8 weeks Web-based, live
delivery with instructor
and access to unlimited
content online
$
Customized follow up
after employees
complete 8 week course
1 year Web-based
Follow up workshop 3 days Live <20 participants
$1250 - $2750 per
participant
20-30 participants
$1000 - $1250
Tailored topics/client
specific presentations
4 days Live <20 participants
$50,000
21-30 participants
$60,000
App Perpetuity Smart device (phone or
tablet) or desktop
Unknown what people
are willing to pay for
clinically validated apps
as those are not
available in the market.
Individual 8 week Web/App $30

Pricing may be tiered based upon the number of employees licensed to use the platform and has been
validated through 5 paying first customers. In addition to these annual licenses, a one-time set-up fee
ranging from $1,000 - $10,000 may be charged. Intensive coaching services may be offered for
employees on-site and online. While the price per person is cheaper for corporate customers, individuals
could also purchase the service. Multi-year discounts are available to corporations that wish to lock into a
longer agreement. Resellers are able to sell the product and are offered a 20% commission on sales. The
product can be white-labeled for resellers such as health plans or insurance brokers. The runway is as long
as can be bootstrapped.
Team
John Smith - Founder and President
There is one full time equivalent on the team. John is the 1 FTE. This company is bootstrapping
through the early product development. He is a faculty member.

Competition for Employers/Corporate Workforce and Wellness Managers
Over the next five years, it is expected that overall industry sentiment and operational financial results will improve. Thus more companies would
require professional training services as a way to remain competitive and provide employees with the assistance required to navigate the increasing
complexities and demands of modern business life. Improving margins for the corporate training industry are estimated, as rising online
technologies allow for distant, even mobile training, reducing considerable operating expenses. This trend will appeal to new operators, especially
small niche players into the industry. The common theme will be innovation with some players focusing on a single training need such as quality
assurance with others competing in terms of technology, flexibility, convenience or price. According to the American Society for Training and
Development, corporate clients value training providers with strong technical knowledge and reputation on the company’s industry, which
supports the idea of lucrative niche markets for stress relief. According to IBISWorld, the three largest companies in the field account for only
5.1% of the market, demonstrating the highly fragmented nature of the industry. Interestingly enough, 91% of all firms are a non-employing, one
person show that generates barely 11.1% of total revenue.

Mindfulness

Table 1. Direct Competitors to Mindfulness (Sales Data Source: OneSource Global, Orbis, Manta)
Company Focus
Competitive
Advantage
Domestic
revenue
Stage
Region of
Operation
Media
traction
Search Inside
Yourself
Institute
(Google)
Effective, innovative leadership using
science-backed mindfulness and
emotional intelligence training
Developed at Google
and based on the latest
in neuroscience
research; with a focus
on emotional
intelligence training
$ 72.8 billion
Non-profit
branch of
Google
US High
eMindful
Mind body wellness programs and
work place and disease management
programs
Live, interactive, online
classrooms
$ 0.2 million
Small
company
US Low
Institute for
Mindful
Leadership
Mindfulness and executive coaching
The coaches are also
experienced leaders;
customized program
N/A
Mature
company
US Low

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14

University of
Miami’s
Contemplative
Neuroscience,
Mindfulness
Research, and
Practice
Initiative
Research on how mindfulness
training can be protective against
long-term stress
Proven long-term
effectiveness from
mindfulness training
N/A Research US Medium
Franklin Covey
Management development training,
strategic execution, productivity,
leadership and communications
Reputation – License
rights to Stephen
Covey, author of The 7
Habits of Highly
Effective People
$125.2 million Mature Global High
Mind Tools
Management skills, stress
management - Self-help and support
in a wide range of work-related
situations.
Over 700 online tools.
Free unless additional
resources are required.
Over 15 million users in
2012
N/A Startup
Global
online
High

Table 2. Indirect Competitors: Online Health Management and Wellness Solutions Targeting Medium to Large
Enterprises (Sales Data Source: OneSource Global, Manta, Insideview)
Online Health Management and Wellness Solutions Targeting Medium to Large Enterprises
Compan
y
Product(s) Product Specifications Stage
Region
of
Operat
ion
Sales
($
million
)
Media
Tracti
on
StayWell
Health
Managem
ent LLC
StayWell
Health
Management
Solution
We create a supportive
ecosystem that prepares
people for behavior change.
Our strategies focus on getting
leaders to walk the talk,
communications to pique
interest, and incentive designs
to motivate. We give people a
reason to start. One size does
not fit all, which is why
StayWell defines a variety of
right-sized starting points
tailored to each person’s
readiness to change. Our
programs and tools build and
support the skills necessary for
making change a priority. Our
breadth and depth of programs
keep people engaged and
culturally supported. Our
behavior change system
becomes increasingly
personalized as people engage.
On
Market,
used by
the
Universi
ty of
Michiga
n’s
MHealt
hy
Wellnes
s
Program
’s
“Ready
to Lose”
Initiativ
e
US 0.5-1.0 High
ShapeUp
SOCIAL
WELLNESS
T
M

Health challenges; Progress
tracking; Health coaching;
Rewards for healthy
behaviors; Global capabilities;
Multiple device accesses;
Reporting; Cohesive
company-wide wellness
On
Market
US(RI)
1.3
(just
raised
$7.5M)
High
PureWell
ness
(Acquire
d by
Cerner
Corporati
on)
Cerner
Wellness
Platform
The highly flexible solutions
allow for efficient
administration and
management of customized
wellness programs and
member engagement
strategies, while empowering
individuals with a
personalized health experience
based on their risks and needs.
On
Market
US(VT
)
Acquire
d in
Februar
y 2013
High

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16

Features include: health
assessment, risk advisor,
wellness workshops, nutrition,
walking programs, team
challenges, incentive, virtual
wellness manager, condition
manager, health coaching,
reporting, and mobile access.
WebMD
WebMD
Health
Manage
Solutions
The integrated health
management solutions utilize
multi-channel engagement,
incorporate clinical data,
support value-based health
benefit design, integrate the
psychology of behavior
change, and leverage leading-
edge technology. The products
include: Behavior change
platform(for employer
organizations); Member
engagement platform (for
health plans); Consumer
guidance; Lifestyle
management; Condition
management; Onsite health
promotion; Engagement
services; Health management
consulting; Outcomes
reporting & analytics.
On
Market
US
(OR,IN
,NY)
504.1 High
Johnson
&
Johnson’s
Wellness
&
Preventio
n, Inc.
(previous
ly
HealthMe
dia)
Wellness &
Prevention
Health
Solutions
The solutions include: culture
of health assessments and
programs, on-site health
screenings, energy for
performance training, health
risk assessments, user portals,
incentive solutions, digital
health coaching, telephonic
coaching, on-site health
coaching, participation &
engagement strategies and
programs, outcomes reporting,
and data analytics. This group
has significant traction and, in
fact, their health assessment is
part of the BCBS pre-
screening to assess an
On
Market
US
(MI,
PA,FL)
67,224
(Johnso
n &
Johnso
n’s
)
High

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17

individual’s health.
Limeade
Limeade
Wellness
Program
Limeade provides a refreshing
alternative to traditional,
antagonistic wellness
approaches, and connects all
wellness programs in an
integrated, cohesive user
experience. The features
include: Well-being
assessment; Biometric
screenings; Social challenges;
Personal goals; Coaching
programs; Mobile access;
Incentives; Analytics &
insights
On
Market
US
(Washi
ngton)
10.0
Mediu
m
HealthFit
ness
Health, fitness
and condition
management
solutions

The portfolio of solutions
includes: Lifestyle
management and condition
management; Fitness
management; Health
advocacy; Occupational health
On
Market
US(M
N)
77.7
Mediu
m
Viverae MyViverae™
Each Viverae “E” product is
fully supported with a robust
communications strategy that
includes both traditional as
well as digital strategies to
ensure strong program
participation. All members
also have access to VLife
Network, the on-line wellness
community that offers
ongoing programming and
resources to help keep
members engaged.
On
Market
US(TX
)
N/A Low
Corporate
Fitness
Works
Inc.
Corporate
Fitness Works
Facility consulting, fitness
center management, and
equipment procurement for
corporate worksite fitness
facilities.
Mature
Firm
United
States
0.4 Low
Healthwa
ys Inc. Healthways
Myriad programs surrounding
wellness including
interventions, identification
and engagement tools, web
portal, networks of fitness
Mature
Firm
United
States
677.2 High

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18

centers and providers, and
weight loss. Customizable to
populations such as
employers, hospitals, and
seniors.
eDiets.co
m, Inc.
Online
Personalized
Diet Program
The exclusive profile of the
program picks the diet that
works best for the customer,
based on the body’s needs and
goals. The customer plan is
tailored to customer’s tastes
and preferences. The nutrition
professionals supply expert
information and resources.
The program also has a
network platform for friends
and mentors to better inspire
the customers to lose weight.
On
Market
US(FL) 22.1
Mediu
m
Medifast Take Shape
for Life
Medifast’s “Take Shape for
Life” program provides free
access to a personal health
coach as wells as free online
access to food journals,
nutrition guides, a weight-loss
blog, and chat rooms. The
coaching program works
together with the Medifast 5 &
1 Plan to help customers lose
weight quickly and safely.
On
Market
US(M
D)
391.3
Mediu
m
Nutrisyst
em, Inc.
Nutrisystem
Program
The program offers healthy
diet plans including women
plans, men plans, and diabetes
plans. The plans include
professional designed food
delivered to customer’s door
and system to help customers
stay on track.
On
Market
US(PA
)
396.9
Mediu
m
Weight
Watchers
Internatio
nal, Inc.
Internet
eTools
The customers could eat from
a list of foods that they can
find in any grocery store. The
program gives lots of delicious
meal ideas or the customers
can make their own. Customer
received guidance on the diet
Mature
Firm
US(NY
)
1,826.8 High

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19

through App or online.

Keas
Keas Platform
At the core of the Keas
platform is a fun and social
application that is proven to
help employees develop
healthy habits. The result is
increased job satisfaction and
a more productive workforce.
Mature
firm
US(CA
)
5
Mediu
m
Benson-
Henry
Institute
for Mind
Body
Medicine
This group’s
Stress
Management
and
Resiliency
Training
(SMART)
program is an
outpatient,
comprehensiv
e lifestyle
program
based on the
principles and
practices of
mind body
medicine. The
program
reduces the
impact of
stress through
a variety of
skill-building
exercises
scientifically
shown to
improve
medical
symptoms,
mood, and
well-being
They have online as well as
in-person professional training
seminars. Being part of the
Massachusetts General
Hospital helps build this
institute’s credibility. 2012 the
Wellness Center merged with
the Benson-Henry Institute for
Mind Body Medicine.
38
The
Benson-Henry Institute also
trains health and behavioral
health professionals including
physicians, nurses,
psychologists, clergy
members, social workers,
etc
39
.
$301M
NIH
funding
40

Nonpro
fit (part
of
Massac
husetts
General
Hospita
l)
US
Mediu
m-
High

38
Miller, Kathleen, Director. "Wellness Center Annual Report FY 2012." Benson-Henry Institute for Mind Body Medicine. N.p., Dec. 2012. Web.
28 Mar. 2014. <http://www.bensonhenryinstitute.org/images/pdfs/2012%20MGH%20BHI%20Wellness%20Center%20Annual.pdf>.
39
http://www.integration.samhsa.gov/about-us/esolutions-newsletter/stress-and-health-the-new-apple-a-day-prescription
40

http://www.bidmc.org/MedicalEducation/Departments/Medicine/Divisions/GeneralMedicineandPrimaryCare/IntegrativeMedicineFellowship/Col
laboratingInstitutions.aspx

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based off of
work by
Herbert
Benson, MD,
founder of the
institute and
author of The
Relaxation
Response
(1975) and
The Breakout
Principle
(Scribner,
2003).

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21

Indirect Competitors

Online Mindfulness Resources
There are a number of online resources (i.e. centers, blogs, etc.) promoting mindfulness (Table 3). These
online resources may be tied to a brick-and-mortar establishment that individuals can go to meditate or
take courses in addition to accessing online seminars, presentations, and electronic media. Most of these
resources are not tailored for professional/corporate employee development nor do they provide as
concrete or clinically validated outcomes in perceived stress, mindfulness, resiliency, vigor and work
engagement, and high stress episode reduction.
Table 3. Indirect Competitors: Online Mindfulness Resources Targeting Individuals
Company Classification Product(s) Product Specifications
Region of
O peration
Media
Traction

Grand
Rapids
Center for
Mindfulness
8 Week Long
Mindfulness
seminars
1) 8 Week Mindfulness Based
Stress Reduction (MBSR)
Course
2) Free Information Sessions
3) 8 Week Mindful Parenting
4) Mindfulness Meditation
Practice Group
5) Mindfulness Professionals
Group
6) Stress and Anxiety
Reduction for Teens
7) Graduate Programs
8) Corporate Program
9) Individual Instruction for
series of 4 or 8 weekly, 90
minute meetings
Certified MBSR instructors provide a number
of different mindfulness course offerings.
T hey teach these at Holistic Care Approach,
Energy Touch Center, and Women’s Health
Center.
Grand
Rapids MI,
US
Medium

Inward
Bound
Mindfulness
Education
(iBme)
Retreat
services
Mindfulness retreats for teens,
parents, and professionals.
1) T een Retreats
2) Wilderness Retreats
3) School Programs
Retreats include mindfulness meditation with
small group discussions, mindful movement,
and creative workshops.
Florence,
MA, US
Medium

Langer
Mindfulness
Institute
Retreat and
consulting
services
1) T he Counterclockwise
Retreat
2) Consulting to promote
mindfulness at work
T he retreats tend to be geared more towards
older folks with the value proposition of
increasing longevity by reducing stress.
Outcomes from her program are not clear. The
founder Ellen Langer has published an HBR
article on Mindful Leadership, published April
28, 2010.
Cambridge,
MA, US
Medium-
High
Founder
website,
Blog

Mindfulness Apps

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There are a number of mindfulness apps to learn and enjoy mindfulness (Table 4). These apps lack
clinical validation and are not tailored for professional/corporate employee development nor do they
provide concrete or clinically validated outcomes in perceived stress, mindfulness, resiliency, vigor and
work engagement, and high stress episode reduction. Apps tend to be platform agnostic and available on
iOS and Android platforms for smartphone, tablet, and desktop devices.

Company Product(s) Platform(s) Product Specifications Price
Media
Traction

Mental
Workout Inc.
1) Freedom from
Stress App
2) Good Night
App
3) Up in Smoke
App
4) Mindfulness
Meditation
App
5) Social Success
App (work in
progress)
iOS and
Android
Promises to be “simply the most convenient way to
learn and enjoy mindfulness meditation. Access it
wherever and whenever you want, to live in the
moment.” Stephen Bodian does not appear to be
MBSR certified. Outcomes are not clear but he is
able to command a premium price.
Lite versions
for each are
free. Full
versions are
$16.99/year
High

and
significant
media
traction
Jay Leno
Show, Fast
Company,
T he New
York
T imes,
ABC,
Forbes,
NBC,
Mashable

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Porter’s Five Forces Model of Competition for Employers/Corporate Workforce and
Wellness Managers

Suppliers Bargaining Power
Bargaining power of suppliers is high. The technology aspect of corporate coaching is increasingly a
distinctive competitive advantage in an era where effective use of time is highly valued. Having access to
top technology is expensive and just a handful of well-positioned players specialize in developing training
solutions, increasing suppliers bargaining power. Switching cost is very low, which decreases the
bargaining power of suppliers slightly.

Buyers Bargaining Power
Bargaining power of buyers is high. Corporations can opt to obtain training services from a large number
of players depending on specific educational needs, time constraints, player’s reputation and training
program budget. Moreover, external training is one of the first items to be eliminated under downsize
business times. Therefore, switching costs are low until a specific training program is implemented,
benefits are realized and reputation is in place.

Rivalry among Existing Firms
Rivalry among existing and emerging firms is high. The market is highly fragmented, indicating
significant competition. The advent of emerging technologies and online distant education is an open
invitation for newcomers - even those without the experience or expertise, but with the technical
advantage, to pull materials and bring experts from all over the web.

Threat of Substitution
Threat of substitution is high. Internal training initiatives and development programs are broadly popular
especially since the years of recession, with the need to keep an already weakened workforce more
competitive and motivated. Corporations that have already established internal training programs are
unlikely to replace them for external alternatives unless for very specific needs.

Threat of New Entrants
Threat of new entrants is high. Despite fierce competition in an industry driven by technology, the
promise of attractive returns in a corporate world with money to spend in training is too attractive to be
ignored. Newcomers find niche segments to compete and grow by creating strategic partnerships,
licensing programs and marketing themselves. Big players do compete by building automation and
expanding to verticals via acquisition.

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24

Competition for Wellness Companies

Current competitor target mostly large-size corporates; there may be a niche to target only small-size and
medium-sized corporates or startups. The majority of the competitors offer health risk assessments,
incentives (health challenges and rewards), food and exercise tracking, and coaching. Some companies
also offer mobile applications and health data analytics. Coaching methods include online live coaching,
on-site coaching as well as online software coaching. The potential reason why customers would switch
from existing products to a new SaaS corporate wellness app is that that platform has higher engagement
rate and can result in more weight loss. Rivalry among direct competitors is high as demand has increased
for corporate wellness services, but direct competitors face difficulty differentiating their product/service
offerings.

To be successful, numerous experts have recommended that health and wellness systems, apps or
programs, have to succeed in building lifestyle changes, building positive reinforcement sometimes with
up-front short term goals, and provide specific treatment and guidance to individuals to help them think
about their health. Long term change happens either through changing environments or taking small,
incremental steps or lifestyle changes.
41, 42
Studies have yet to yield clinical evidence demonstrating
effectiveness, efficacy, and long term lifestyle changes. There are no large-scale clinical trials planned for
these directly competitive programs or indirect competitor apps. Current technologies remain limited in
scope and impact, clinical efficacy, and effectiveness. Most current technologies also lack a scientific
foundation and display no evidence of professional healthcare involvement.
43, 44
Wellness SaaS
StartupLLC may be able to demonstrate a scientific foundation and evidence of professional healthcare
involvement; however, Wellness SaaS StartupLLC can significantly differentiate their product by
providing more concrete proof of increased engagement and lifestyle improvements following frequent
use. This would demonstrate that Wellness SaaS Startuphas a tool that can support behavioral change and
improvement. Without significant product differentiation, there is the risk of losing market share to
competitors with more long-standing reputations and more established networks.

41
Chesanow, Neil, Ph.D., and B. J. Fogg, Ph.D. "Can Health Apps Help Patients Change Their Behavior?" Appscape: Business of Medicine.
Medscape, 27 June 2013. Web. 16 Dec. 2013. <http://www.medscape.com/viewarticle/806734>.
42
"Johns Hopkins Studying Effectiveness of Mobile Health Applications." News Archive. IHealthBeat, 15 Mar. 2012. Web. 16 Dec. 2013.
<http://www.ihealthbeat.org/articles/2012/3/15/johns-hopkins-studying-effectiveness-of-mobile-health-applications>.
43
Dolan PL. What's missing from many health apps -- medical expertise. American Medical News. May 13, 2013.
http://www.amednews.com/article/20130513/business/130519995/6/#exli Accessed May 30, 2013.
44
Chesanow, Neil, Ph.D., and B. J. Fogg, Ph.D. "Can Health Apps Help Patients Change Their Behavior?" Appscape: Business of Medicine.
Medscape, 27 June 2013. Web. 16 Dec. 2013. <http://www.medscape.com/viewarticle/806734>.

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25

Porter’s Five Forces Model of Competition for Wellness Companies
Bargaining Power of Buyers
Bargaining power of buyers is medium to high. The buyer is likely to be a corporation in need of a new
wellness program, while the end user is the individual employee. As corporations have not traditionally
utilized the services of corporate wellness programs and, though they are interested in cutting costs
(through lower insurance premiums), there may be a tendency investigate developing an internal wellness
program over licensing a costly external wellness program. Buyers likely have high price elasticity and
greater ability to pressure pricing alterations. With the recent passing of the Affordable Care Act, there
may also be timing issues especially as mid-sized companies are mandated to meet new healthcare
requirements to cover full time employees with minimum levels of health coverage or face taxes. This
may cause employers to avoid wellness management programs until they sort out the costs associated
with mandate compliance.
Bargaining Power of Suppliers
Bargaining power of suppliers is low to medium. Suppliers are internet service providers, server space
providers, labor providers (SaaS programmers and developers), and health professionals such as
nutritionists, dieticians, counselors, and chiropractors. While the number of internet service providers and
server space providers is low, the number of customers utilizing the products these suppliers provide is
very large. With regards to programmers, developers, and health professionals, the number of firms
requiring their services is very high, but so it the supply of this type of labor. Besides, the switching cost
to alternative suppliers is low, which decreases the bargaining power of programmers and developers.
Dietitians, nutritionists, and fitness coaches have fairly low to medium bargaining power depending on
their level of education, licensure, and reputation with clients (consumers vs. institutional customers). The
demand is increasing for the expertise of health and wellness industry professionals including
nutritionists, trainers, and dieticians and in the future these professionals may feature more extensive
qualifications, higher pay grades, and leverage higher bargaining power.
Rivalry Among Existing Firms
Competitive rivalry is likely to be high. From 2007-2012 demand rose for corporate wellness services,
more companies entered the industry. The four-firm industry concentration ratio is 8.9%, which is
extremely low. With more firms entering the industry, competition among existing firms is increasing.
The product differentiation of current SaaS corporate wellness programs is relatively weak with most of
them providing very similar online diet and exercise management tools and incentive programs as their
core services. The low level of product differentiation increases rivalry among existing firms.
Barriers to Entry
Barriers to entry into the corporate wellness industry are medium and increasing. Investment
requirements are low to start a corporate wellness firm; however most industry firms rely heavily on the
expertise of health and wellness industry professionals including nutritionists, trainers, and dieticians and
it can take time to develop this group. New entrants that do not already have extensive knowledge of the
healthcare and wellness industry, leadership already in place with the necessary certifications, or
innovative methods to differentiate their product offerings are at a disadvantage. Success in the industry

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26

largely depends on firms’ knowledge of health and wellness and their proven track record of successfully
implementing programs. Data monitoring, record keeping, and accessing new technology, software, and
database safeguarding are crucial to sustaining competitive advantages
Threat of Substitute Products
Threat of substitute products is high as many firms do not believe that the benefits of implementing a
corporate wellness program outweigh the costs associated with it and will often opt to not develop a
wellness program. Substitutes for SaaS corporate wellness programs could include internally
implemented wellness programs as well as private wellness centers within a community such as gyms,
health centers, weight loss centers, nutrition systems, or chiropractors. Because a corporate wellness
program can be used to cut insurance costs, many employers’ human resources departments have
established their own wellness programs without the help of outside organizations. Other substitute
products include mobile applications and free tracking applications on the Internet. Both are high threats
largely because they have the capacity to be personalized based on an individual’s specific lifestyle and
health goals and most are available for a low to no cost. Mobile applications are a high threat since most
apps are well suited to being fitness and health companions as they are always or nearly always on a
person. Mobile applications continue to become more sophisticated as developers continue to utilize
advanced sensor and syncing capabilities inherent to most smart devices for fitness, medical, and
nutritional monitoring. Many apps also push notifications through the phone directly to the end user. Most
apps focus on one healthier lifestyle aspect such as nutrition, fitness, or medical monitoring. Current
problems in apps include: less than ideal functionality, lack of instructions on how to get the most out of
an app for specific groups or activities, and lack of repeat use/behavior change.
45
For specific mobile app
substitute products, see Appendix II: The Market Specific Overview. It is not unreasonable to consider
the possibility of users using the Wellness SaaS Startup LLC product in addition to an app.

45
Mobile health apps popular, but efficacy in question, experts say. iHealthBeat. March 22, 2011.
http://www.ihealthbeat.org/articles/2011/3/22/mobile-health-apps-popular-but-efficacy-in-question-experts-say.aspx Accessed. May 30, 2013.

Wellness SaaS Startup LLC First Customer Program August 21
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2014
T his information is confidential and presented by IRLEE at the University of Michigan to the client. T he copying or re-transmission of
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existence of fair use is prohibited. Additional information about copyright laws is available through the University Library copyright site. T he
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27

Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis

Strengths
 The value propositions appear sound
 The team is very strong in terms of research expertise in this space.
 The team is operating leanly and developing the product leanly.
They are housed in the Venture Accelerator at the North Campus
Research Complex; there may be an opportunity here for the
founder to learn lean startup methodology and practice customer
discovery and validation.
Weaknesses
 The team lack sales power
 The team could allow for more customer validation through
various firms
 The company needs to calculate the cost-savings for corporate
customers
 Company has not fully developed their product; it is not ready for
deployment in beta trials with early adopters.

Opportunities
 The industry has a decent projected growth rate of 3.9% for the
next 4 years till 2018
 The company is likely to gain external funds from local incubator
and technology commercialization centers
Threats
 The industry is highly fragmented and the competition is severe
 Operating within an industry that highly values credibility, the
company needs to build and show more credibility through more
marketing efforts and deals
 The bargaining power of suppliers and buyers are both likely to be
very high
 One of the strong competitors is Google.

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28

Recommended Action & Project(s)
Path to First Customer
The technology and value propositions have been validated by an early customer. The company is in need
of internal sales power to land sales quickly. The company and the FCP are of the opinion that the
development of an App would accelerate the process significantly.
Recommendations, Specific Actions, and Tactical Plans

Develop an app for the product
The FCP is of the opinion that an app would help with the tracking process and increase the engagement
rate, increasing the value of the program.

Conduct further competitive analysis
The company needs deeper understanding of the competing products to better differentiate and position
the product. The data collected during the process should be used for marketing and branding. The
competitive analysis will be better evaluated when the benefits of the product and value propositions are
validated with early adopters and customers.

Calculate the cost-savings for target audiences
Cost-savings for the target audiences should be calculated.

Consider offering discounts to future customers
o A possible pricing strategy is to price high and give a discount to first customers or those who
participate in the case study. The advantages of this pricing strategy are stated below:
 The discounted price allows the company to command a high sales price to subsequent
customers. This maintains the perception of high quality. First customers are given a similar
high quality perception when the product prices high. The discount helps anchor the
perception to customers that the product is very valuable.
 Customers experience a more favorable impression of the product because they are
inclined to believe they are getting a good deal. This may incentivize manufacturers to
become an early adopter.
 The product has the flexibility to increase prices in the future by decreasing the discount
to subsequent customers.
 This approach causes less reluctance and rejection if firm ever needs to increase prices
owing to slower adoption or scalability

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29

Appendix II: Market Specific Overview

Background on Application Service Provisioning (SaaS) and Corporate Wellness
Software as a Service (SaaS)
Application Service Provisioning is also called Software as a Service (SaaS). The most basic layer of
cloud computing, SaaS includes any application accessible via the internet that is not hosted on an in-
house server. Vendors or application service providers (ASPs) own and maintain servers housing the
application; these vendors charge customers to access and utilize it. Users log into an account to access
the software remotely. SaaS differs from software as a product (SaaP), a software package commercially
available for purchase and installation onto a single computer or network for proprietary use.
Modes of SaaS Delivery
Software as a Service can be delivered to customers in two ways. First, hosted application management is
similar to the job of an application service provider in that a provider hosts a commercially available
software on a server for customers, delivering it over the internet. With software on demand, on the other
hand, providers grant customers access to a single copy of an application via network. This application
copy has been created specifically for SaaS network-based distribution.
Corporate Wellness
Workplace wellness is any workplace health promotion activity or organizational policy designed to
support healthy behavior in the workplace and to improve health outcomes. Known as 'corporate
wellbeing' outside the US, it consists of a variety of activities such as health fairs, health education,
medical screenings, health coaching, weight management programs, wellness newsletters, on-site fitness
programs and/or facilities and educational programs.
46
Wellness programs have become very common in
US, as 92 % of employers with 200 or more employees reported offering them in 2009. Survey data
indicate that the most frequently targeted behaviors are exercise, addressed by 63% of employers with
programs; smoking (60%) and weight loss (53%). However, a non-representative survey conducted in
2010 reveals that generally fewer than 20% of eligible employees actually participate in these corporate
wellness programs.
47

46
http://en.wikipedia.org/wiki/Workplace_wellness
47
http://www.dol.gov/ebsa/pdf/workplacewellnessmarketreview2012.pdf

Appendix III: Some Medium Size Companies with Corporate Wellness Program
Mid-sized companies here are defined as the ones with the number of employees between 500 and 9,999.
48

Company data source: OneSource Global
Compan
y name
Region of
Operation
Number
of
Employ
ees
Contact Email/Phone
Do they have a
wellness program
in place?
Resource
Amway
Corporat
ion
MI 5000
Chuck Davison
(Manager of
Environmental
Health & Safety)
davison@amwa
y.com
Yes.
(On-site gym +
health counselor)
http://www.mlive.com/business/west-
michigan/index.ssf/2011/02/workplace_wel
lness_programs_ha.html
Vertafor
e
IN,
WA,CA,
TN, CT,
GA, CO
2096
Dave Acker
(Operations, Vice
President)
425-402-1000
Yes.
(Using WorkWell
Michigan Network
service)
http://www.cooperandpartners.com/testimo
nials
Data
Recognit
ion
Corporat
ion
MI, OH,
PA, MN,
WA,TX,
WA
1,329
Holly Caviness
(HR manager)
hcaviness@data
recognitioncorp
.com
Yes.
(Using Nutritional
Weight &
Wellness)
http://www.weightandwellness.com/service
s/workplace-wellness/client-testimonials/
Dart
Containe
r
MI
(parent),P
A, KY,
GA, NC,
IL, FL,
MS, WA
Around
10,000
(Michig
an
parent
compan
y: 6000)
Fred Forrester
(Operations
Manager)
fred_forrester@
dart.biz
Yes.
(Using WorkWell
Michigan Network
service)
http://www.cooperandpartners.com/testimo
nials
Alliant
Insuranc
MA,
VA,NY,
1,015 John S Beres 212-603-0200
Yes.
(Using
http://www.triwellnesstoday.com/triwellnes
s-success/employee-success/

48
"Sizing up Small-to-Medium Business (SMB)." Sizing up Small-to-Medium Business (SMB). N.p., 12 Jan. 2010

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homepages without the expressed written permission of the copyright owner or the existence of fair use is prohibited. Additional information about copyright laws is available through the University
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31

e Service WA, AZ,
IL, PA,
MD, TN,
AZ
TriWellness)
Total
Longter
m Care
CO 749
Kathy Ginsburg
(HR Manager)

http://www.link
edin.com/in/kat
hyginsburg
Yes.
(Using US
Wellness
Corporate)
http://www.uscorporatewellness.com/storie
s.php
San
Diego
Zoo
CA 605
Aida Rosa
(Global’s Director of
HR & Benefits)
http://www.link
edin.com/pub/ai
da-
rosa/13/704/a10
Yes.
(Using
TriWellness)
http://www.triwellnesstoday.com/triwellnes
s-success/employee-success/
Harrah's
Rincon
Casino
CA 2,000
Paul Schreiner
(HR Manager)
http://www.link
edin.com/pub/p
aul-
schreiner/9/448/
b11
Yes.
(Using
TriWellness)
http://www.triwellnesstoday.com/triwellnes
s-success/employee-success/
Science
Museum
Of
Minnesot
a
MN 822

Jill Rudnitski
(VP of development)
651-221-9418
Yes.
(Using Nutritional
Weight &
Wellness)
http://www.weightandwellness.com/service
s/workplace-wellness/client-testimonials/

Appendix IV: Landscape for Indirect Competitors: Substitute Products
There is a high and growing threat from smart device apps that track nutrition, health, and/or fitness.
These apps provide ease of tracking, are always or nearly always on an individual, and are require low
initial time and financial investment. There were more than 43,000 apps addressing weight loss and
fitness by October 2013 and high demand for these apps with nearly 660 million downloads as of June
2013.
49
However, evaluation by the IMS Institute for Healthcare Informatics found that only 16,274 are
directly related to patient health and treatment and can provide advice and treatment guidance. Studies
have yet to yield clinical evidence demonstrating effectiveness and efficacy. There are no large-scale
clinical trials planned for these apps. Current technologies remain limited in scope and impact. It is
unlikely that physicians will recommend apps without proof of efficacy and effectiveness in controlled,
repeatable, and large sample size clinical trials. Many apps lack a scientific foundation and display no
evidence of professional healthcare involvement.
50, 51
Apps continue to be targeted at smartphone users
who are more technological adept which leaves out older population and lower income segments that
have a high need to address chronic health issues. Figure 1 captures the shortcomings identified with
current apps. Current problems include: less than ideal functionality, lack of instructions on how to get the
most out of an app for specific groups or activities, and lack of repeat use/behavior change.
52

Figure 1. IMS Institute for Health Informatics Findings on 40,000 Apps
With the above understanding of limitations in current nutrition, health, and/or fitness monitoring apps,
the following have been identified as the top apps in the market.
Nutrition, Health, and Fitness Monitoring Apps

1. Fitbit System (Android, iOS, and Web)
This is a top competitor in the health and wellness space. The Fitbit system can be used for counting
calories, recording exercise, logging your weight, and tracking personal health metrics (heart rate,

49
Sifferlin, Alexandra. "Bad News about Your Favorite Health Apps: T hey Don't Work." Diet & Fitness. Time Magazine, 31 Oct. 2013. Web. 16
Dec. 2013. <http://healthland.time.com/2013/10/31/bad-news-about-your-favorite-health-apps-they-dont-work/>.
50
Dolan PL. What's missing from many health apps -- medical expertise. American Medical News. May 13, 2013.
http://www.amednews.com/article/20130513/business/130519995/6/#exli Accessed May 30, 2013.
51
Chesanow, Neil, Ph.D., and B. J. Fogg, Ph.D. "Can Health Apps Help Patients Change Their Behavior?" Appscape: Business of Medicine.
Medscape, 27 June 2013. Web. 16 Dec. 2013. <http://www.medscape.com/viewarticle/806734>.
52
Mobile health apps popular, but efficacy in question, experts say. iHealthBeat. March 22, 2011.
http://www.ihealthbeat.org/articles/2011/3/22/mobile-health-apps-popular-but-efficacy-in-question-experts-say.aspx Accessed. May 30, 2013.

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th
2014
T his information is confidential and presented by IRLEE at the University of Michigan to the client. T he copying or re-transmission of
copyrighted works in documents, document collections, or homepages without the expressed written permission of the copyright owner or the
existence of fair use is prohibited. Additional information about copyright laws is available through the University Library copyright site. T he
Regents are the legal owners of University faculty and staff products. The information presented here is intended for informational purposes.

33

glucose levels, sleep, and blood pressure) by using a personal activity tracker called Fitbit One which
is a hardware piece that can be purchased for $89.99 through Amazon. This Fitbit gadget can be
synced so it can collect data automatically and feed it to the account. However, one does not need to
own a tracker to use the Fitbit app.

The Fitbit site gives one the ability to track what they are eating, fitness goals, and is open to pulling
in data from other food tracking sources (such as Lose It!) into its data tracking system. This system
also lets one identify how close they are to achieving specific health or fitness goals.
53
The Fitbit app
is free to $49 per year for Premium services.

2. Weight Watchers Mobile (Android, iOS, and Web)
Tools within the Weight Watchers mobile app can only be accessed if the user has a Weight Watchers
subscription. If the user has a subscription, they can track food, activity and weight, follow progress
with the app’s interactive chart, get tips for how to make healthy habits second nature based on
location, and find workout ideas for any fitness level. In a recent survey that Weight Watchers
conducted, Baylor College of Medicine found that even though Weight Watchers offer online and
mobile tools, the biggest impact of the program exists within the meetings.
54

3. Noom Weight Loss Coach (iOS, Android, and Web)
55

Noom’s weight loss coach offers free weight loss plans for users. The company reports users lose an
average of 10 pounds in two months when they use the app because the app coaches instead of just
tracking. This app is free on all platforms.
56

Nutrition and Fitness Monitoring Apps
1. Livestrong.com – Calorie Tracker (I.e. MyPlate; available on Android, BlackBerry, iOS,
Windows Phone, and Web)
The mobile app Calorie Tracker (a.k.a. MyPlate) - Livestrong.com is another calorie and exercise
logging tool. It requires more work than others in its class, but it manages to get the job done. This
app is $2.99.
57

2. Lose It! (Android, iOS, Kindle, Nook, and Web)
The free website and app Lose It!, designed for counting calories and logging exercise, can help you
lose weight, especially if you tend to eat name-brand American foods. Avid home cooks and those
with a more international diet may feel stymied by its database of foods, and they should try
MyFitnessPal instead. Lose It! does have a strong community of supportive people to help you stick
to your goals, though.
58

53
Duffy, Jill. "Fitbit." The Fifteen Best Fitness Apps. PCMAG, 07 May 2013. Web. 16 Dec. 2013.
<http://www.pcmag.com/slideshow/story/292474/the-15-best-fitness-apps/4>.
54
Pai, Aditi. "Google’s Picks for Top 20 Free Health, Fitness Apps." Mobihealthnews RSS. MobiHealthNews, 13 Nov. 2013. Web. 16 Dec. 2013.
<http://mobihealthnews.com/27313/googles-picks-for-top-20-free-health-fitness-apps/>.
55
Pai, Aditi. "Google’s Picks for Top 20 Free Health, Fitness Apps." Mobihealthnews RSS. MobiHealthNews, 13 Nov. 2013. Web. 16 Dec. 2013.
<http://mobihealthnews.com/27313/googles-picks-for-top-20-free-health-fitness-apps/>.
56
"Noom Weight for IPhone." Noom Weight for IPhone. Noom, 2013. Web. 16 Dec. 2013. <http://www.noom.com/weight_iphone.php>.
57
Duffy, Jill. "Livestrong MyPlate." The Fifteen Best Fitness Apps. PCMAG, 07 May 2013. Web. 16 Dec. 2013.
<http://www.pcmag.com/slideshow/story/292474/the-15-best-fitness-apps/9>.
58
Duffy, Jill. "Lose It!" The Fifteen Best Fitness Apps. PCMAG, 07 May 2013. Web. 16 Dec. 2013.
<http://www.pcmag.com/slideshow/story/292474/the-15-best-fitness-apps/10>.

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34

3. MyFitnessPal (Android, BlackBerry, iOS, Windows Phone, and Web)
The free fitness app MyFitnessPal is one of the best all-in-one calorie counter and exercise trackers
for the iPhone. Using the app is a quick chore rather than a fatiguing project, which is essential to its
success. It has an expansive database of international foods, including U.K. brand name packaged
food, international cuisines, and much more. MyFitnessPal also has an active and supportive online
community. This app is free.
59

Fitness Monitoring Apps
1. Cyclemeter (for iOS only)
Bicycle tracking app Cyclemeter (for iOS only) collects a wealth of data, is very accurate, contains
several well thought out features, and appeals to fitness enthusiasts who participate in more than one
sport. All this adds up to an Editors' Choice among fitness apps. Despite the name, you can use
Cyclemeter to track walks, runs, and other activities. It does not include a calorie-counting
component, however. This app is $4.99.
60

2. Endomondo Sports Tracker (Android, BlackBerry, iOS, Windows Phone, and Web)
Endomondo focuses on the community aspects of staying motivated to reach your fitness activity
goals. Members use GPS features to track how much they run, cycle, jog, and so forth, and share their
progress with others. You can find friends on Endomondo by connecting the service to your other
accounts, such as Facebook, Gmail, Yahoo! Mail, etc. Free to $4.99 for Pro.
61

3. Fitocracy (Android, iOS, and Web)
Fitocracy uses game-like stats to spur on friendly competition and increase your dedication to
working out. The apps and website feature social interaction prominently. Post a status, whether it's
your success story of going to the gym or the reason you skipped a workout, and you're likely to find
a wealth of support from the community. It also has plentiful resources for all kinds of fitness
enthusiasts, from weightlifters to swimmers. This app is free.
62

4. Fitsby (Android only)
This Android-only workout motivation app (an iOS version is reportedly coming soon) asks you to
put your money where your mouth is. It uses a combination of gamification and betting to push you
and your friends to reach a desired goal for exercising. You and your friends decide how much money
you want to wager, and the person who checks into the gym the most in a given period of time wins
the pot. Betting real money is optional, so you can use Fitsby for friendly competition without any
monetary stakes if you prefer. This app is free.
63

5. GAIN Fitness (iOS and Web)
GAIN Fitness is a workout coaching app and website. It lets you set and schedule routines for
exercising at the gym, at home, or while on the go. GAIN Fitness runs as you actually work out. You

59
Duffy, Jill. "MyFitnessPal." The Fifteen Best Fitness Apps. PCMAG, 07 May 2013. Web. 16 Dec. 2013.
<http://www.pcmag.com/slideshow/story/292474/the-15-best-fitness-apps/12>.
60
Duffy, Jill. "Cyclemeter." The Fifteen Best Fitness Apps. PCMAG, 07 May 2013. Web. 16 Dec. 2013.
<http://www.pcmag.com/slideshow/story/292474/the-15-best-fitness-apps/2>.
61
Duffy, Jill. "Endomondo." The Fifteen Best Fitness Apps. PCMAG, 07 May 2013. Web. 16 Dec. 2013.
<http://www.pcmag.com/slideshow/story/292474/the-15-best-fitness-apps/3>.
62
Duffy, Jill. "Fitocracy." The Fifteen Best Fitness Apps. PCMAG, 07 May 2013. Web. 16 Dec. 2013.
<http://www.pcmag.com/slideshow/story/292474/the-15-best-fitness-apps/5>.
63
Duffy, Jill. "Fitsby." The Fifteen Best Fitness Apps. PCMAG, 07 May 2013. Web. 16 Dec. 2013.
<http://www.pcmag.com/slideshow/story/292474/the-15-best-fitness-apps/6>.

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T his information is confidential and presented by IRLEE at the University of Michigan to the client. T he copying or re-transmission of
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35

listen to or read its instructions and it helps you keep track of repetitions and even includes a timer
when appropriate. A "balanced" set of exercises comes included with the free app, but you'll have to
buy additional workout packs for $2.99 each to target specific areas of the body or get other kinds of
workouts, like a yoga routine.
64

6. Touchfit: GSP (iOS)
The GSP in the name of this app stands for Georges St-Pierre, your workout coach (and MMA World
Champion) for the muscle-boosting routines contained therein. What's neat about this iOS-only app is
it first has you complete a test workout, in which you rate different exercises as easy, tough,
impossible, or "need to learn," which then informs the app going forward how difficult your workouts
should be. You can choose workouts of 20, 40, or 60 minutes, which can all be performed at home or
in a gym with little more than a mat and resistance band. This app is $6.99.
65

7. Map My Fitness (Android, iOS, Windows Phone)
The company that makes the Map My Run app for runners also makes a slew of similar apps for
different sports, such as Map My Ride for cyclists and the more general purpose Map My Fitness.
Although it might sound like Map My Fitness will give you the widest range of supported activities,
really all the app have settings that let you track different sports and workouts. In other words, you
only need to download one of the apps, and you can use it for almost any activity (Map My Fitness
has more than 600 activities). But beware: The free app keeps some of its features behind a
subscription pay wall, starting at $5.99 per month. As with most fitness apps for running, walking,
cycling, etc., MayMyFitness uses GPS to track the routes you travel, and shows you a map of the
ground you covered when you're done. It also displays length, in both time and distance, as well as
pace, maximum speed, and a few other statistics.
66

8. Nike+ (iOS, Android)
The Nike+ Running app, which is available on iPhone and Android phones, tracks your distance,
pace, time, and calories burned while you run. It uses GPS to map your route and has audio feedback
built in—including real-time cheering every time one of your friends from Facebook or Path (a
private social network) "likes" the post where you've noted you're going out for a run. If you have a
Nike+ FuelBand, a hardware component, the app integrates well with it.
67

9. Runmeter PRO (iOS)
The iPhone-only Runmeter PRO is another fitness app that can handle way more than its name
implies. Sure, it works for tracking your run, but it it's just as ready to track your walks, bicycle rides,
and 5K training. Pay the $4.99 for the PRO subscription, because it adds a number of great features
you'll want, such as the ability to start and stop recording a run using your iPhone's earphone
controller, automatic exclusion of stop times (for red lights and such), as well as support for iCloud so
you can see your stats on an iPad, too. It has all the basics you'd expect, too: audio coaching, maps,
graphs, splits, intervals, laps, and training plans. The app is free, but the PRO subscription is $4.99.
68

64
Duffy, Jill. "GAIN Fitness." The Fifteen Best Fitness Apps. PCMAG, 07 May 2013. Web. 16 Dec. 2013.
<http://www.pcmag.com/slideshow/story/292474/the-15-best-fitness-apps/7>.
65
Duffy, Jill. "T ouchfit: GSP." The Fifteen Best Fitness Apps. PCMAG, 07 May 2013. Web. 16 Dec. 2013.
<http://www.pcmag.com/slideshow/story/292474/the-15-best-fitness-apps/8>.
66
Duffy, Jill. "Map My Fitness." The Fifteen Best Fitness Apps. PCMAG, 07 May 2013. Web. 16 Dec. 2013.
<http://www.pcmag.com/slideshow/story/292474/the-15-best-fitness-apps/11>.
67
Duffy, Jill. "Nike+." The Fifteen Best Fitness Apps. PCMAG, 07 May 2013. Web. 16 Dec. 2013.
<http://www.pcmag.com/slideshow/story/292474/the-15-best-fitness-apps/13>.
68
Duffy, Jill. “Runmeter PRO" The Fifteen Best Fitness Apps. PCMAG, 07 May 2013. Web. 16 Dec. 2013.
<http://www.pcmag.com/slideshow/story/292474/the-15-best-fitness-apps/14>.

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th
2014
T his information is confidential and presented by IRLEE at the University of Michigan to the client. T he copying or re-transmission of
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36

10. Runtastic PRO (Android, BlackBerry, iOS, Windows Phone, and Web)
Runtastic PRO lets you measure and track your runs, walks, and other exercises; but it also doubles as
a coaching app to motivate you to keep working toward your goals. You can use it to train for races,
too. The $4.99 Pro version is worthwhile, because the free app lacks (and tries to sell to you through
in-app purchases) many of the features that are central to the experience, such as the coaching
features, voice feedback, and music player integration. The app is $4.99 but a limited free version is
available also.
69

Food Monitoring Apps
1. CountEat. Calories (for iOS only)
The 99-cent iPhone app CountEat. Calories (for iOS only) helps you estimate, rather than count, how
many calories you consume at each meal, and helps you find a range, rather than a precise target, for
how much you should eat. The innovative approach is worth a try for anyone trying to lose a lot of
weight, but too imprecise for dropping two or three pounds.
70

2. MyFitnessPal’s Calorie Counter (iOS, Android)
MyFitnessPal’s Calorie Counter offers a database of over 3,000,000 foods and boasts a ”fast food and
exercise entry” process. After entering in food in the app, or online, users can add friends to track and
share each other’s progress. Besides food, the app can track 350 exercises and if the user’s exercise
isn’t preloaded, he or she can enter it into the app. The app is free.
71

IMS Institute for Healthcare Informatics found, in August, Calorie Counter by MyFitnessPal, was the
most popular free calorie counter and fitness tracker on Google Play, and was the second most
popular app in the Apple App store. Between downloads and the app’s website, 40 million users
tapped into the app’s easy way of tallying up the calories in any meal. That interest attracted $18
million in venture capital financing. But this app has not yet translated into any quantifiable
difference in well-being and few studies have yielded enough evidence to show calorie counting from
apps is effective. It remains to be seen if there will be a “class effect” and whether one large trial with
a specific calorie counting app or a fitness app will be seen as sufficient to cover all calorie counting
and fitness apps,” concluded IMS Institute for Healthcare Informatics.
Nestlé - Jenny Craig
Despite its relatively large operation, Jenny Craig encountered considerable problems in the early
2000s. Its $299 million in 2001 ran a distant second to Weight Watchers, which had $624 million in
sales the same year. Volume decreased gradually during four of the past 5 years. It is likely that a
portion of Jenny Craig’s problems stemmed from major competition in supermarkets. The
introduction of major new low-calorie product lines by major marketers represented competition that
the company could not meet successfully. In addition, these product lines were reinforced with
continuous line extensions of low-calorie meals. It was also likely, that the efficient distribution costs
of these competitors created quite poor price comparisons for Jenny Craig.

69
Duffy, Jill. “Runtastic PRO" The Fifteen Best Fitness Apps. PCMAG, 07 May 2013. Web. 16 Dec. 2013.
<http://www.pcmag.com/slideshow/story/292474/the-15-best-fitness-apps/15>.
70
Duffy, Jill. "CountEat. Calories." The Fifteen Best Fitness Apps. PCMAG, 07 May 2013. Web. 16 Dec. 2013.
<http://www.pcmag.com/slideshow/story/292474/the-15-best-fitness-apps/1>.
71
Pai, Aditi. "Google’s Picks for Top 20 Free Health, Fitness Apps." Mobihealthnews RSS. MobiHealthNews, 13 Nov. 2013. Web. 16 Dec. 2013.
<http://mobihealthnews.com/27313/googles-picks-for-top-20-free-health-fitness-apps/>.

Wellness SaaS Startup LLC First Customer Program August 21
th
2014
T his information is confidential and presented by IRLEE at the University of Michigan to the client. T he copying or re-transmission of
copyrighted works in documents, document collections, or homepages without the expressed written permission of the copyright owner or the
existence of fair use is prohibited. Additional information about copyright laws is available through the University Library copyright site. T he
Regents are the legal owners of University faculty and staff products. The information presented here is intended for informational purposes.

37

The company was acquired by Nestlé for more than $600 million in 2006. In 2010, according to
Nestlé Nutrition CEO Richard Laube, Nestlé aimed to be the world’s leading nutrition, health and
wellness company. While it remains to be seen whether Jenny Craig was a worthy investment for the
multinational company, Nestlé has executed a rollout of Jenny Craig operations to new markets, such
as France. In November of 2013, Nestle sold most of its Jenny Craig weight-loss business (operations
in North America and Oceania) to a US private equity firm North Castle Partners below the $600M
Nestle paid for it in 2006.
72
North Castle Partners focuses exclusively on health and wellness
businesses and has a history of turning around companies such as Atkins Nutritionals, purchased from
post-bankruptcy lenders in 2007.

72
Geller, Martinne, and Silke Koltrowitz. "Nestle Sells Most of Jenny Craig in Slimming Drive."Reuters. Thomson Reuters, 07 Nov. 2013. Web.
13 Dec. 2013. <http://www.reuters.com/article/2013/11/07/us-nestle-jennycraig-idUSBRE9A606X20131107>.

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