Yobo Video Team14

Lean Launch Pad 2013.08.31

PERSONALISED PRACTICE:HOW YOU WANT. WHEN YOU WANT. WHERE YOU WANT.

A Health & Wellness Video Marketplace

YOBO VIDEO

Vanessa Resnick Roberto Soria Justin Stebbins

Day 5, as of 9am


Key Partners Value PropositionKey Activities Customer Relationships

Customer Segments

ChannelsKey Resources

Revenue StreamsCost Structure

• Instructors (collective body)

• Video Supplier (TokBox)• Symbiotic relationship

partners (i.e. Lululemon for yoga)

• Develop & Maintain the Platform

• Acquire instructors• Acquire members

Instructors• More Customers• More Revenue• No Studio Costs• Access to Global

Customer Base• Ability to market, manage

schedule and collect payment in one place

• Flexible hours

• Automated / Self-Serve• Co-creation• Communities

Instructors• Full-time professionals,

but with excess capacity• Part-time professionals,

looking for evening or weekend work

• Professionals in low cost areas (i..e rural or developing countries) looking for higher rates

Online• SEO and PPC• Social Media

Word of Mouth• Instructors• References

• Platform• (Eventual) Network Effect

• Fixed Operational costs for platform development and maintenance• Fixed Operational Overhead costs (rent, utilities, etc.)• Variable costs associated with bandwidth / server usage• Variable costs associated with customer acquisition & demand

creation

• Transaction Commissions (charged to Instructor)• Advertising (potentially)

Users• Busy professionals• Long Commutes• Odd hour workers• Stay at home moms• Parents with infants• Cost Sensitive, but want

personalise instruction• Need specialists, but live

far away• Frequent Travellers

Users• Saves Time /

Convenience• Flexible Hours• Cheaper• Personalised Instruction• Access

• Enabling instructors and users of H&W services to conduct online virtual sessions

Day 1 Canvas



Customer Segments











• Flexible hours










creation


Users• Busy professionals• Long Commutes• Odd hour workers• Stay at home moms• Parents with infants• Cost Sensitive, but want


far away• Frequent Travellers


Convenience• Flexible Hours• Cheaper• Personalised Instruction• Access


• Accountability• Cheaper Personalised

Instruction• Ability to try new styles /

methods / instructors

• Female, 18 to 40• Not hardcore fitness

fanatic / athlete• Don’t live close to a gym• Disabilities, have trouble

leaving house

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Day 2 Canvas


What We Thought• Both men and women would be interested• Flexible hours would be an attractive• People with long commute would be attracted to the service• Stay at home mothers and mothers with infants would be a large user group• Instructors would be interested in the service (more revenue, customers, etc.)

What We’ve Learned, thus far• Females are interested, far more than males, and aged 18 to 40 (range will probably

be narrowed, so far we’ve mainly spoken to late 20’s / early 30’s)• Personalized instruction at a cheaper price seems to resonate with the enthusiastic

• Like the idea of some sort of real time feedback• Accountability is a major value proposition for users• Current hardcore fitness fanatics (i.e. 4+ intense sessions per week, including cross

fit) are not users of this services, they A) believe they know what to do and/or B) the exercise (cross fit) isn’t suitable to online sessions (need space, spotter, etc.))

• People who have long commutes to work aren’t necessarily interested because of the long commute to work, but rather are interested if they have a long commute to the gym

• Only spoken with one so far, but she actually like going to the gym as it was a chance for her to get out of the house and have some social interaction with the outside world (note: gym had a baby sitter)

Day 2 Canvas



Customer Segments











• Flexible hours










creation


Users• Busy professionals• Odd hour workers• Stay at home moms• Parents with infants• Cost Sensitive, but want


far away• Frequent Travellers• Females, 18 to 40• Not hardcore fitness

fanatics / athletes• Don’t live close to a gym /

studio• Disabilities, have trouble

leaving the house


Convenience• Flexible Hours• Cheaper Personalise

Instruction• Access• Accountability• Ability for Variety


• Ability to learn how to cook healthy

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• Early to mid-level professionals

• Currently doing some sort of yoga / pilates

• Seldom or not using a personal instructor

• Earn less than <250k (would just do regular personal trainer)

• Commute is less than 20 minutes OR greater than 45

• Fitness / hardcore athletes that want to learn how to cook

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Day 3 Canvas


What We Thought (after day 1 / 2)• Flexible hours would be an attractive• After day 1 / 2, we didn’t think long commuters would be interested• Stay at home mothers and mothers with infants would be a large user group• Women, more than men, would be the most interested

What We’ve Learned, thus far• Potential users seem to make less than $250k (already using personal trainers

regularly)• Cost and Time / Schedule Flexibility are almost equally important, both seem to be

the primary drivers• Users like the idea of some sort of real time feedback / interaction, beyond what

they receive in a class• Users with busy schedules / odd hours that want personal instruction, but can’t

find a schedule that works• People with commute times between 20 and 45 minutes do not seem to be users (7

out of 10 said no!).• Mixed reviews from mothers w/ infants and stay at home moms. Does not seem to

be a driver given our current sample base

Day 3 Canvas



Customer Segments











• Flexible hours










creation


Users• Busy professionals• Odd hour workers• Stay at home moms• Parents with infants• Cost Sensitive, but want


far away• Frequent Travellers• Females, 18 to 40• Not hardcore fitness

fanatics / athletes• Don’t live close to a gym /

studio• Disabilities, have trouble

leaving the house



Instruction• Access• Accountability• Ability for Variety • Ability t learn how to cook

healthy


• Remote monitoring• Private Class / not-

embarrassed

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• Early to mid-level professionals


• Seldom or not using a personal instructor

• Earn less than <250k (would just do regular personal trainer)



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• -Middle Aged males, haven’t done yoga before and want private class

• Middle aged females, in suburbia who are already doi class/video

• -Sport rehab + therapists can stay in touch with clients not based in town (i.e. London / middle eastern)

• Kids (parents want it)

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Day 4 Canvas


What We Thought (after day 3)• Males would not be interested• Would mainly be for not heavily trained services (i.e. Yoga, Nutritionist, Pilates, etc).• Service would not be for kids

What We’ve Learned, thus far• Middle aged men who want to learn yoga, but are embarrassed to go to classes are

interested.• Middle aged women in suburbia are interested• Professional Therapists

• Use it to “monitor patients” (i.e. make sure they do their rehab by scheduling appointments online)

• Have patients who travel to city (i.e. London from Middle east) for treatment, then return from to their home (middle east).

• Parents are want to have their kids do it• Tweaked (future) feature to facilitate customer acquisitions

Day 4 Canvas



Customer Segments




• Video Supplier (TokBox)



Instructors• More Revs / Customers• Access to Global

Customer Base• Remote Monitoring


Instructors• Full & Part-time

professionals w/ extra capacity


• “low mantenance” Physical Therapists

• NOT full-time, fully scheduled / large studios





creation


Users• Early to mid career

professionals ??<income<$250k

• Long and Odd hour workers


• Pregnant / post pregnancy

• Suburban Parents w/ kids• Females, 20 to 40,

needing motivation and want personal feedback

• Not hardcore fitness fanatics / athletes

• Don’t live close to a gym / studio



Instruction• Access• Accountability• Ability for Variety • Ability t learn how to cook

healthy• Private Class / Not-

embarrased


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• Already doing some for of exercise, 2 – 4 times a week, often times yoga/pilates as well

• NOT consistently using a Personal trainer



• 30 to 55 yr males, never done yoga before ,

• Kids (parents want)• 30 to 55 yr females in

suburbia who are already y doing yoga classes / video

• Have disability, trouble leaving the house

• “low maintenance” rehab patients

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Day 5 Canvas (note: CR is covered)

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Users D1 D2 D3 D4 D5 Total# Spoken to: 10 8 13 6 37

Evangilists 1 2 1 4Early Adopter 1 2 5 4 12Late Adopter 3 3 2 8Not Interested 5 3 4 1 13

Total 10 8 13 6 0 37

% of EV / EA's 20.0% 25.0% 53.8% 83.3% #DIV/0! 43.2%% of Yoga / US Pop 6.3%

Instructors Day 1 Day 2 Day 3 Day 4 Day 5 Total# Spoken to: 3 0 7 1 11

Evangilists 1 1 2Early Adopter 2 2 1 5Late Adopter 0 2 2Not Interested 0 2 2

Total 3 0 7 1 0 11

Total 13 8 20 7 0 48

1 would be an EA if healthy cooking sessions were available


Value Prop Customer Segment• Affordable Personalised

Instruction• ????<Income<250k

• Convenience / flexibility / time saving

• Early and mid-level professionals

• Access

• Have disability and are not able to easily leave the house

• Accountability / Motivation

• Already doing occasional exercise or some classes

• Longer or Odd working hours

WORK IN PROGESS

• Learn to healthy cooking

• Hardcore athlete / fitness fanatics

• Privacy / lack of embarrasment

• Middle Aged Men • (others – overweight?)

• Physical Rehab / Monitor

• “Low Maintenance”Physical Therapists / Patients

• Suburban moms / middle age

• Pregnant / post pregnancy

• Kids (Parents want it)• Parents want it (why???)


Get• Direct / Online (Google Adwords)• Initial acquisition of instructors through direct emailing• Provide Instructors with Social and Email Promotions Tools• Provide Users with Group Buying Tools (See follow on feature)

Keep• Users: provide with Calorie & Exercise tracking ap• Instructors: provide with Scheduling Management Tools• Enable the ability for users and trainers to connect & follow

• Allow the formation of support groups and communities• Receive Daily/Periodic Tips

Grow• Increase intermediation fee (initially greater of $1 or 2%, per transaction)• Add Additional Features (see next slide)• Add additional markets (slide to follow)• Sale of Vitamins and Nutrition ($11B US market)• Sale of heath food and food plans ($100B+ US market)

Sale of fitness clothing ($10B+ US market)• Targeted advertising (how much are pregnant women worth to retailers?)• “Sponsored Advertising” among instructors


Follow-On Features


5/10/100+ UsersVideo (i.e. Skype)

The Virtual Class: One to Many (future)

Each at home

Instructor

Video Classes• Allow live classes to be conducted – 1 instructor to many (i.e. 5 / 10 / 100+ users, all

in their home)• Provide users with a tool & incentive for them to book and market a class

• (I.e User posting to facebook “Join me! I’ve book a private class for $50 and need 4 more people, $10 each!!! This Saturday at 9am. www.yobo.com

• Intermediation fee taken from instructor • note: group video session cost YoBo money (1 to 1 sessions are free)

http://www.yobo.com/


The Instructor Video Subscription

Instructor Video Subscription• Instructors record and upload a series of their OWN video workouts.

• Initially provided with a particular amount of free storage, then charged a monthly subscription fee beyond the limit

• Users are able to subscribe to a given Instructor, paying a monthly fee (i.e. $5) for unlimited access to videos

• Intermediation fee is taken from each monthly subscription (Instructor pays)

Instructor Certification Verification

Create the Ability for Instructors to Verify and Promote their Certification Credentials• Provides some users comfort, allowing the Instructor to receive higher rates


Market


Market Size Estimates: It’s Big Yoga Market (Yoga Paws* and Yoga Journal** )

82% of people who practice yoga are women • 23-34 year olds make up 40%• 35-55 year olds make up 41%

Approximately 70,000 instructors People who practice yoga often have a median income of $75,000 or higher and are looking for health benefits and stress reduction

Around 20M Yoga practitioners (Yogajournal.com – 2012)8.7% of US Adults

Total Available Market (hypothesis): 1 class per week, $10 per class = $10B

* http://www.yogapaws.com/market-analysis/** http://www.prnewswire.com/news-releases/yoga-journal-releases-2012-yoga-in-america-market-study-182263901.htm


US Yoga Market Size Estimates

TotalAvailabl

eMarket

Target Market

ServedAvailabl

eMarket

Total Available Market: $10B(20mn x 1 class / wk @ $10/class x 50 wks)

Served Available Market (How many people need/can use product?): $2B(Hypothesis: 10% of seg. 1, 30% of seg. 2, 20% of seg. 3)

Target Market (first 3 years): $1.6B(30% of segment 2 and 20% of 3)

Segment 1 Segment 2 Segment 3 Segment 4Description Women 23-34 Women 35-55 Men Yoga InstructorsSize 41% 42% 17% Approx. 70,000Age Range 23-34 35-55 Any AnyPeople/ Influences

Friends and family, Entertainment industry, (Magazines, celebrities)

Co-workers, Yoga instructors, Magazine articles

Family and friends, Yoga instructors

Yoga studio, Yoga school, Co-workers


Disruptable H&W ServicesFitness WellnessNutrition Spiritual

• Yoga• Pilates• Elderly workout• Tai Chi• Spinning• Mat exercises

(i.e. Buns & Tums)

• Aerobics/Zumba• Weights/Trainer• “Low

Maintenance” Rehab

• Weight Loss (MOTIVATION)

• Elderly• Diabetic• Sports• Heart / high blood

pressure• Vegetarian• Other Disorders

(i.e. Celiac)

• Stress management

• Sleep coaching• Meditation• Life coach• Smoking

Sessation

• Astrology• Career Forecasts• Dream Analysis• Fortune Telling• Kabbalah• Love &

Relationships• Palm Reading• Past Life Reading• Psychic Reading• Religion• Sex & Intimacy• Tarot Reading

Beauty & Fashion (Hair, Make-up, Dress) and Cooking as well


Market Size Estimates: It’s Big• $28bn by 2016 for Health & Fitness Clubs according to IBISWorld

• $7bn in 2012, growing at 7.7% - US Yoga market according to IBISWorld• “There are no companies with dominate market share in this industry”

• Notable Diet / Nutrition Companies• $2.4bn - Jenny Craig• $1.8bn - Weight Watchers

• Notable Supplement Companies• $2.4bn - GNC

• Notable Gym / Fitness Providers• $1.0bn - Bally’s• $1.1bn – LifeFitness• $0.7bn - 24hr Fitness


Where are the metabolically challenged?Hint: They probably speak English….


$Bn's US Int'l WW Pilates & other

Total Fitness Sessions Market

Yoga TAM 10.0 50% 15.0 10% 16.5

Jenny Craig Total Revs 2.4% of Nutrition Consulting 40%$ of Consulting 0.96

Weight Watchers Total Revs 1.8% of Nutrition Consulting 40%$ of Consulting 0.72

Total WW and JC 1.68% of Total market 50%Total Nutritional Market 2.52 2.52

Total Addressable market 19.02

Does not include:Advertising (sponsored listings or banner ads)Sell of products, vitamins and Nutritional food plans (a la weight watchers)

If extrapolating beyond US YOGA


Next Steps


Refine / Narrow initial targeted Segment through more experiments (also learn how much it will cost to acquire)

• Google Adwords LaunchRock Landing Page (collect email addresses)• Pregnant / post labor• Yoga for Kids• Accountability• Yoga for Men• Etc.

• Yoga in the Park / Subway / Community Space• Craigslist to Test for Regional Preferences

• Square Foot Per House Trends (i.e. Texas vs. Manhattan)• Distance to Gym / Studio• Studio density• Fitness lifestyle• Etc.

Attempt to create viral content for Demand Creation• Amass a list of Instructors that could be potentially interested• Provide them with “early beta access” to ensure users can find instructors

Attempt to create viral content for Demand Creation• Short Funny Videos for each customer segment and/or Value Prop?• Short Insensitive Videos for each customer segment and/or Value Prop?


What kind of company are we:Start up that is searching for a product / market fit and for which customers segments that fit occurs; once identified, if we can attract a sufficient number of customers in a profitable and repeatable manner.


Proposed Hypothesis: The largest category of users for yoga/pilates will be females aged 18-44. Experiment: An email will be sent to distribution list from our network that says the following: “We are hosting one on one personal yoga sessions via the computer from your home on Thursday at a time of your choice for $20, we have only 5 spots available, first come first serve.” We will likely send this email out multiple times with different prices. Pass/Fail: a complete fail would be if no one responds at any price level. A fail of our hypothesis (the user group is female) but not a complete fail would be if the majority of the responders is not female aged 18-44.


Proposed Hypothesis: The average person would think $20 is inexpensive for this service compared with all alternatives. Experiment: Using the previously described experiment but sending only to distribution list of yoga users. Pass/Fail: if the number of responders for $20 is much lower than $10 or the number of responders at $30 is not different from $20 our hypothesis is wrong.


Proposed Hypothesis: The farther a person has to travel to go to a gym or training session, the more appealing it is to work out from home via computer. Experiment: Using a sample of people from launch.com, we will ask each person to make a choice between two options: a one on one yoga session with an instructor in person and a session via the computer with the same trainer. We will vary the amounts of time it will take to get to the personal trainer along with varying costs for each option. Pass/Fail: if there is a correlation with both the difference one is willing to pay for computer training and commute to gym as well as absolute amount to paid for in home training it will be a pass. If there is no correlation (or negative) it will be a fail.


Proposed Hypothesis: If a person likes taking classes from a specific trainer, he/she will be more likely to take an online class with that trainer. Experiment: Host a free yoga session in one of the parks in NYC. After the class, ask each participant if they would like to book an online session (and pay) with the trainer. If they say yes, ask if they would prefer to book an online session with a different trainer at a slightly lower price point.

Pass/Fail: A fail would be if no participants in the class are willing to pay for a follow up session or if the majority of people willing to take the session would prefer a slightly lower price for an unknown person.

Yobo Video Team14

Education

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