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 21th 2014

This information is confidential and presented by IRLEE at the University of Michigan to the client. The 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. The 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 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

Nutrition and Fitness Monitoring Apps .......................................................................................... 33




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Fitness Monitoring Apps .............................................................................................................. 34

Food Monitoring Apps ................................................................................................................. 36

Nestlé - Jenny Craig ..................................................................................................................... 36




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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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. 5Medical costs paid for obese individuals $1,429

higher annually than for normal weight. 6The 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 Too 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




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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 US14 , 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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Figure 1 (Source: IBISWorld)

Total Addressable Market (TAM) II

According to a more recent IBISWorld report on Business Coaching in the US15, 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




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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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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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 201 2-2022." 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%20Changes%20Driving%20.pdf>. 25

$78.5 million = (Total Revenue Generated in Industry Sector $5.1B)*(7.4% of Revenue is to Other Expenses)*(20.8% Consultant

Dietitians/Nutritionists)

Figure 7

Figure 9




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: BCC Research, Weight Loss Markets for Products and Services, Oc. 201037

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 = (Total receipts of establishments $1,342,874)*(Purchases made of 1.9% according to IBIS World US Industry Report 52 421) 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 Turk, 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

There 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.

http://www.reuters.com/finance/stocks/overview?symbol=WTW.N

http://www.reuters.com/finance/stocks/overview?symbol=MED&lc=int_mb_1001

http://www.reuters.com/finance/stocks/overview?symbol=MED.N




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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 indus try, 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


This information is confidential and presented by IRLEE at the University of Michigan to the client. The 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 Univer sity Library copyright site. The Regents are the legal owners of University faculty and staff products. The information presented here is intended for informational purposes.

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 WELLNESST

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

(Acquired 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

)

Acquired in

Februar

y 2013

High




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 &

Prevention, Inc.

(previously

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




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




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




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,

etc39.

$301M NIH

funding40

Nonprofit (part

of Massachusetts 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




20

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).




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.

They 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) Teen 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) The Counterclockwise Retreat

2) Consulting to promote mindfulness at work

The 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

http://www.grandrapidscenterformindfulness.com/




http://ibme.info/

http://ibme.info/

http://ibme.info/

http://ibme.info/

http://ibme.info/

http://langermindfulnessinstitute.com/



http://blogs.hbr.org/2010/04/leaders-time-to-wake-up/

http://www.ellenlanger.com/home/

http://www.ellenlanger.com/home/

http://www.ellenlanger.com/blog/




22

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, The New

York T imes, ABC,

Forbes,

NBC, Mashable

http://www.mentalworkout.com/store/programs/mindfulness-meditation/

http://www.mentalworkout.com/store/programs/mindfulness-meditation/

http://www.stephanbodian.org/




23

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.




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>.




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




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.




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.




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




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@datarecognitioncorp

.com

Yes. (Using Nutritional

Weight & Wellness)

http://www.weightandwellness.com/services/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

mailto:[email protected]





This information is confidential and presented by IRLEE at the University of Michigan to the client. The 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 Univer sity Library copyright site. The Regents are the legal owners of University faculty and staff products. The information presented here is intended for informational purposes.

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


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


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: They 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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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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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.





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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. "Touchfit: 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.


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.





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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.

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Duffy, Jill. “Runtastic PRO" The Fifteen Best Fitness Apps. PCMAG, 07 May 2013. Web. 16 Dec. 2013.


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/>.




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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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