United States, Pe... "Executive Summary Vision: Providing an immediate and effective solution to Stress & Anxiety Dailybreath.com — an automated, multi-step marketing system selling health and relaxation products Dailybreath.com’s vision is to provide a rich media web experience to help the user immediately begin to relax, both physically and mentally, through the use of beautiful artwork, soothing music, and cutting-edge motion graphics. Reducing stress is a primary health promotion goal of the U.S. Public Health Service. Harried baby boomers have created a “time famine” by working more hours and committing to more family and community obligations. Job-related stress has become so severe that the World Health Organization has described it as a ""world wide epidemic.” More than 40% of Americans claim they always feel rushed; 75% of all illnesses brought to a doctor are directly or indirectly related to stress; people who live in a high state of anxiety are 4.5 times more likely to die of a heart attack or stroke; tranquilizers, antidepressants, and anti-anxiety medications account for 25% of all prescriptions written in the U.S. each year; and the cost of job stress in the United States is estimated at $200 billion annually, including costs of absenteeism, lost productivity and insurance claims. (sources: American Demographics, Center for Balanced Living, Health Resource Network, USAF Medical Center) According to experts such as John Kabat-Zinn, Ph.D., Gay Hendricks, Andrew Weil, M.D., and others, the simplest, most cost effective way to reduce stress and increase relaxation is through conscious regulation of one’s breathing. While this may seem obvious on the surface, the simple fact is that most people must be reminded during moments of stress to stop and breathe. Dailybreath.com’s lead product is the Virtual Relaxation Club, consisting of a personalized daily email with an inspirational quote, a daily stress-reduction tip, and a link to a unique animated breathing exercise every day of the year. The membership retails for $29.97 a year, and will initially be marketed through a free trial program. Each paid member will then automatically be entered into an automated email follow-up system, through which they will be solicited at regular intervals to purchase a wide range of additional products, including books, music, gift baskets, candles, fountains, spa certificates, travel offers, and numerous other relaxing items. Part of $230 billion LOHAS industry with no direct competition Strategic Marketing Plan for rapid impact Affiliate and Viral Marketing for Maximum Traffic at Minimum Cost With its unique product with no direct competition, dailybreath.com is positioning itself to capture a share of the Lifestyles of Health and Sustainability (LOHAS) industry, expected to be a $230 billion market this year in the U.S. alone, according to Natural Business Communication. Specific portions of the LOHAS industry include: stress management programs, products, and services — $11.31 billion in 1999; online consumer healthcare — expected to grow to $1.7 billion by 2003; specialty bath products (oils, aromatherapy, etc.) — $921 million as of 1996, expected to grow to $1.2 billion by 2001; massage therapy — presently around $1 billion; (sources: Jupiter Communications, Forrester Research) Dailybreath.com’s current site metrics indicate that 3% of visitors to the site convert to paid breathclub members, with an initial value per visitor of 90 cents (this does not include long term back end sales or exit monetization techniques and co-registrations (see Streams of Revenue, below). Dailybreath’s initial marketing plan is based on spending no more than 60 cents per visitor, with approximately 40% of marketing funds spent on opt-in email campaigns, 25% on pay-per-click search engines, 25% on e-zine classified advertising, and 10% on banner ads. Our autoresponder email system will then regularly contact customers in order to upsell them to our various back end products. The key to dailybreath.com’s long term success will lie in the site’s strategic use of affiliate programs and “viral” marketing techniques. Affiliate programs allow for a large portion of the site’s traffic to be funneled from other sites, on a percentage-per-sale, performance basis. We are currently negotiating affiliate contracts with health sites, women’s sites, spiritual sites, and others, with a target of 1000 affiliates providing traffic by the end of 2001. Viral marketing is an extraordinarily powerful method for spreading the word from customer to customer, and has been demonstrated to be one the most consistently effective approaches to Internet marketing. During the 1998 holiday season, bluemountain.com, an electronic greeting card company, used a simple viral plan to generate more than 12.5 million visitors in December alone, making this relatively small company one of the most successful entities in the history of the web. Bluemountain.com has since been acquired for more than $700 million. Five powerful streams of revenue $28 Million+ in Annual Revenues by 2003 Strategic early-stage Investment Operating Profit in 8-10 months While several additional options are under consideration for the future, dailybreath.com will initially take advantage of five distinct streams of income. Retail sales of breathclub memberships; Back end sales of relaxation products, both directly and through affiliate partnerships; Click-through income via opt-in co-registrations and pay-per-click pop-up monetization techniques; Paid advertisers and/or sponsors in daily emails; and Business-to-business intranet sales through employee wellness programs and human resources departments in large corporations. Based on current metrics and the size and passion of the stress reduction/breathing/meditation market, we estimate that dailybreath.com will generate consumer sales of $50,000 by the end of the 2000 holiday season, $5 million in 2001, and $28 million by 2003. Dailybreath’s revenue will be generated through a combination of current-customer viral traffic, the sale of our front end product, “The Virtual Relaxation Club”, and our back end products, the dailybreath CD Rom screensaver collection, our John Barnard relaxation music CD, our dailybreath relaxation gift baskets, a CD Rom of our animated digital book “The Book of You”, and other back end products. Beginning in 2001, we will also begin implementing step-by-step sales process focused on generating customized corporate intranet sales and additional revenue from sponsors and advertisers. Combined with dailybreath’s consumer sales, this will add up to more than $28 Million in gross revenues by 2003. Dailybreath is seeking an equity investment of $100,000. This investment of $100,000 is required immediately for costs through the end of 2000 and 2001. By late 2001, it is expected that the company will be both profitable and generating a positive cash flow. Unlike many internet companies, dailybreath is 100% committed to maximum short-term monetization to achieve profitability in the shortest possible time. Clear Exit Strategy Strategic Alliances Experienced Management and Development Team We expect dailybreath.com to be approached as an acquisition candidate for $45-60 million within the next three years. To achieve this, the management team intends to use a combination of direct contact and targeted public relations campaigns to attract the attention of such corporations as Whole Foods, Aetna, Gaiam.com, WebMD.com, OnHealth.com, and other organizations committed to health and wellness. Dailybreath.com has been selected as one of only 10 companies to operate as a protégé of 1shoppingcart.com in a program designed to incubate promising online ventures, under the personal supervision of 1shoppincart CEO George Tran, formerly a lead programmer and marketing consultant for Symantec. Dailybreath is also in negotiations with AdNet International, one of the web’s most successful performance marketing companies, to launch a spin-off site based on giftbreath, dailybreath’s proprietary viral marketing application. In addition to the above, dailybreath is currently in the process of setting up partnership and/or affiliate agreements with several prominent web-based marketing and support companies, including: Insight2000.com SFI/FCS Kidsagainstdrugs.com Greenturtle.com Comfortkits.com Coastal Sites West Jean Richards and Associates Public Relations Dailybreath is also working with the ...
Marketing Professional Internet