skinny wraps by jess business plan file · web viewwomen want to tighten up an area,...

RUNNING HEAD: SKINNY WRAPS BY JESS 1

Skinny Wraps by Jess Business Plan

Jessica Tenopir

8/10/2013MSM 520

Final Project

Bellevue University

SKINNY WRAPS BY JESS 2

Introduction

Skinny Wraps by Jess is an independently owned business under the direction of It

Works!. The business is run out of a home office. As a distributor, you bring amazing products

to individuals to enhance their lifestyles and improve their quality of life. As a personal reward,

you earn commission off the products that are purchased by your customers and the distributors

that are signed up under you. This business is all about people and making a difference in their

lives. The rewards your body receives using these products is hands down incredible and the

potential financial gain that can be made from being a distributor is absolutely endless.

Executive Summary

(Separate Document)

Market Assessment

My company, Skinny Wraps by Jess, is just one small part of the entire business. The It

Works! company is now global and is adding new members as distributors and loyal customers

every day. It Works! provides products that help our clients look better and live a healthier

lifestyle.

The target customer is anyone who would like to improve the way they look or the way they

feel. The products that It Works! Offers are natural and achieve results. There is no limit for

male or females that want to obtain this product. There of course are certain limitations like if

you are pregnant or under the age of 12, you will want to consult a physician. How many


women want to tighten up an area, reduce the look of varicose veins, have their skin look and

feel firmer, or look better for them, look great for an event, look better for their spouse in this

world? How many men want to look better for themselves or for their partner? Men and women

can use these products side by side of a sensible diet and exercise and achieve the results that

they have always dreamed of. The customer’s marital status, lifestyle, or location does not come

into play. The customer will purchase the products based on the research they will do, the

testimonials they will see, and the price point that they will have to pay for the products

themselves. Exactly why the It Works! company has created the Loyal Customer program so

that a customer can get signed up and receives discounted pricing and shipping. There are also

ultimate makeover packages that are available to loyal customers as well as distributors that

combine ultimate body applicators, defining gel, and other products into one price so that you

can decide which the best value is for you or for your customer.

Herbal wraps in High End Salons could cost up to $200 each and could not even end up

giving you the same results. The Ultimate Body Applicator shows results in as little as 45

minutes and will continue to work for the next 72 hours after the application. They come 4

applicators to a box and are priced at $59 for Loyal Customers. These “Wraps” detoxifies,

tightens, tones, and firms as well as minimizes the appearance of cellulite where they are applied

to the skin. The combinations of all potential areas are endless: chin, neck, tummy, back, upper

legs, sides, arms, and face. The results are so dramatic that these products have even been

featured in Hollywood at the Emmy and Oscar Awards celebrity gift suites so celebrities could

take them home with them. They included Melanie Griffith, Seth Green, Rumer Willis, Leeza

Gibbons, Olivia Wilde, and Kim Cattrall. They also have been on the seen on the set of movies


such as Sex & the City 2. Not to mention It Works! will be featured in the following magazines

this upcoming fall: People, Cosmopolitan, and Redbook. That should help bring the products

into the focus of the public. Competition could be spas, gyms, and detox Programs as well as

over the counter lotions, and pills. All of these things which all cost hundreds if not thousands of

dollars and take considerable amount of time to see results. The It Works! products show results

after 1 wrap in 45 minutes. Competitors are also other companies those product similar products

such as Body by VI that carry supplements and vitamins to help you lose weight and make you

healthier. The comparison has even been published against GNC products and supplements.

The It Works! company also gives back to the communities which puts them in the eye of the

public as well. It is a division of the company that is set up to give back to those in the

community that need it. The company has even been known to shut down corporate

headquarters to participate in donation walks and other community events to help raise money

for a cause. The market environment is most obviously women ranging from 16-70. The first

competition falls into the sweet spot of 20-25, however there are plenty of men who are looking

to slim and trim as well as looking good when they get undresses for their partners. The product

line exceeds just the “wraps” and affords women the opportunity to reduce stretch marks as well

as varicose veins. The potential market size is exponential. The potential money for each

distributor and team depends on the position in the company you are on but as a whole the

company is bringing in Billions of dollars.

There is a sense of urgency. Absolutely that is why It Works!. Women want it NOW and so

do their men. Without marketing consistently, men will not be thinking about this kind of “gift”

for their partner. If you consider wedding: most women diet and starve themselves before their


wedding to fit into their beautiful dress, or most women freak out before a vacation, or how do

they “fit” into the bikini that they wore before they had a family, and even that secret yearning to

buy the sexy bikini out of the Victoria Secret Catalog, knowing you would just die if any one

saw you in that suit. Is there a timeline or a deadline for these products? Yes as it is always

ingrained into our heads, “I want it NOW and I must lose weight” or instant gratification as we

all see it. These two issues have been facing men and women for decades not and it is truly

gaining momentum with the health craze sweeping the country.

“In 2010, Marketdata Enterprises Inc. estimated the total U.S. weight-$60.9 billion. “ “80%

of all Americans want a convenient, inexpensive way to lose weight and get healthy right in the

comfort of their own home. “ (SUCCESS from Home, 2012) Upstream Marketing is defined as

the strategic process of identifying and fulfilling customer needs. This process analyzes how the

end-users use the product or service and what competitive advantage will be required to win the

customer and at what price point. (Upstream Marketing, 2013) This concept is exactly what the

company It Works! is all about. The company looks at the products and the consumer and shoots

to launch products in a price point that is acquirable for all to get their products in everyone’s

hands.

Competitive Assessment

It Works! will have many competitors as salons, pharmacies, department stores,

physicians, and spas. The market is competitive. It is very tough to establish a brick and mortar

or mail order opportunity as It Works! is a global company and there are distributors everywhere

to help guide you into a decision about them. Women and men who purchase products to


improve their looks are improving their self-esteem, trying to get healthier, and potentially look

better for their spouse. The consumer is always trying to get a deal or look into the latest and

greatest pills, lotion, potion, or procedure. At a physicians’ office; these procedures could run

thousands and thousands of dollars. In a salon or a spa; procedures, products, and treatments

could cost hundreds of dollars. Even in a department store or pharmacy products can be hundreds

of dollars. It Works! provides a price point low enough for their customers that their products

are affordable and natural to provide you a healthier lifestyle. Surgery or treatments have some

recovery time as well as time you may have to take the product or use it for so many days. The

Ultimate Body Applicator shows you results in just 45 minutes. The products that are offered by

It Works! help you accomplish many things. There are products to firm, tighten and tone

selected areas of the body. The products are not necessarily gender specific, well except the ones

for menopausal health. There are products to help to focus, to make you regular, and to detox

your system.

According to (Monarch Plastic Surgery, 2013), a skin tightening package is $1200 for 4

treatments that stimulate collagen and tightened skin with a laser treatment for the face, neck,

and abdomen. A healthy skin facial including a chemical peel for 4 treatments is $425. These

prices are quite costly and one could not keep paying these prices for long. At Monarch Plastic

Surgery you can achieve many services and many different or combinations of services

performed by Board Certified Physicians. At a local Spa, Par Exsalonce, an entire day of

treatments could be purchased for a package price of $371. One treatment of Ultimate Body

applicators is 4 wraps that all come together in one box at the Price of $59. This is quite the

savings and that is the point you take advantage of being a Loyal Customer, where you gather


perks as you order and use products in the privacy of your own home. Sounds like a win /win

situation to me. After all this is their hard earned money and each dollar spent needs to be well

worth it.

Consumers or customers could be anyone and even if they are using It Works! they could

still be seeking out the competition for the best deal. That of course is human nature to make

sure you are spending you money wisely.

Those males or females over 18 that want to improve their appearance

Those who want a healthier life style

Those who need to use natural products

Those who are budget conscious and are on a budget

Friends of friends who have seen the Wraps work.

Those people who are curious about the products themselves

The products are available through It Works via ordering off the internet on the corporate

website, their personal distributors’ website, and ordering from their distributor directly. This

can all be done in the privacy of your own home, so that if you chose no one but you will know

that you are taking them or using them, well maybe the mail man will notice. They ship straight

to your door and you have no need to make an appointment or pay a gratuity. The Ultimate

Body Applicators (the Wraps) can be applied at any time, in fact you could even wear it while

you sleep and then wake up skinny.

It Works! products are natural, in a low price point and show results. The products that

make you a healthier person are also right on track. The products follow through with the results


they promise and they are all priced to make them affordable for folks that are at all different

income levels.

It Works! Corporate are developing or putting information together on the website to

show and compare results. The website also answers questions for consumers as well as the

distributors that are getting people fired up about these products. The Wraps are the entire craze

right now and yes this could be a downfall or a fad, but they are producing amazing results for

many people, so the future looks bright and prosperous. Today’s society has the mentality to

want something now, do not wait, do not stop at Go and do not collect $200. Due to the price

point, the products are still flying off the shelves. It Works! offers a tremendous selection of

products to improve your health as well as improve your appearance. There are thousands of

distributors across the world that is talking to new potential distributors every day. Those

individuals have the option to set up their own income to make wonderful changes in their life.

Debt free is the goal for It Works! Even though these products are new to the market share we

have commanding share of the product as we strive for more.

Market Strategy

It Works! is a company who targets clients who want to improve their image as well as

their health. It Works! is a company who enhances the self-esteem of the client who uses the

product. The reason behind the use can be personal or for someone but whatever is needed to

feel better about one’s self. The company does not necessarily target a particular market or age

group but merely any person, man or woman who wants to improve their looks or their health.

The market can range from anyone over 18 that are having weight issues, memory issues, or

even issues with being regular.


Distributors with It Works! advertise on Facebook, via blitz cards as well as by word of

mouth. This has proven to be highly effective. The competition is in place but you cannot

access it from the comfort of your own home. That is the beauty of each distributor of It Works!

having their own website and their customers can order directly from there. The products are

then shipped straight to the clients’ home and no one ever has to know that they are being used.

The market is saturated with spas and salons that perform similar services but they all cost

serious money. The It Works! products can all be purchased at a discounted price as a Loyal

Customer. This makes their price point very acceptable for customers. The key is to make

Facebook pages the advertisement opportunity. Facebook and personal pages or forums are to

post before and after pictures, to post product information as well as opportunities on how to

become a distributor themselves. The customer needs to see the products that are available and

the ones that are used for certain things. This market appeals and is open to many clients and is

free to advertise because Facebook does not charge to have a page or a professional page. It

Works! has even created corporate websites to ensure that distributors are getting all the

information they can in regards to their clients and their products and the best methods to make

them effective. The competition charges up to $500 per area to wrap and help induce results.

The It Works! Body applicators come to you 4 to a box for $59 as a loyal customer. The It

Works! Company considers all 4 wraps to be one treatment because it can take your body that

long to get used to the detoxifying and naturals products infused in the wraps.

Each distributor in order to move up in the ranks and the levels of commission need to

sign up 4 loyal customers and 2 distributors and then once the initial members are in place they

need to not look back and keep signing up people and their friends and complete strangers to


help them increase their commissions. Luckily no distributor is required to purchase or carry

inventory unless they plan to have a party or they want the ability to sell the wraps one at a time.

They can of course purchase product for their own consumption because we can all be our own

billboards for amazing results. The Real Key to this successful business is to believe in it and

make it your own. The amazing thing is this product from It Works! is really taking off and is

being featured in magazines, such as Home, and Success From Home. The It Works! products

have also been featured in glamorous Hollywood in Celebrity Baskets back stage of the Red

Carpet. They also have been used by such celebrities as Kim Cattrall and Cynthia Nixon from

Sex in the City; Melanie Griffith, Paula Abdul, Seth Green, and Demi Moore. These products

are life changing and worth every penny to take charge of your own life. The market for these

products will always be the same. And there will always be standard products in the line to keep

them on top of the competition. The awareness is necessary to ensure the stability and the

growth of the business. To post to Facebook, to personal Facebook pages for your business, to

use Twitter, and even to go out and Blitz a neighborhood is the way to spread the word. Wrap

Parties are equally important as everything else, but of course the most important thing is to

spread the word and keep spreading it.

Operational Requirements

The purpose of this statement is to outline the required costs of the business. It Works!

Global is the Brick and mortar store that houses the corporate officers, the lab, as well as the

customer service teams for the customers and distributors to speak with should there be a

problem with their products, to advise how to proceed with a client, anything regarding the


corporate website, and the monitoring of the Facebook pages that have been started to support

the teams across the country.

Headquarters

As of 2011, It Works! Global is located in Bradenton, Florida. It is located with its sister

company, Stoneybrook Golf Club of Bradenton. Headquarters is used for leadership meetings

and customer service opportunities for the distributors as well as for the customers themselves.

This cost of the building has already been expensed. The building needs to be able to warehouse

merchandise in a climate controlled area, handle the installation of computers and assorted

machines and equipment for packing.

Takes care of the licensing of the product and the name.

Monitors compliance of product and websites and the use of photos.

Ships out the product to the customer and distributors.

Monitors promotional material and sales of material as well.

Must have a shipping number for USPS to send their products out to customers.

Must obtain a shipping label printer and supply the tape to load in the machine to print

shipping labels.

The Board of Directors

Mark Pentecost - President & CEO

o Mark is recognized as one of the top networkers in the USA and has a long track

record of successful business ventures. Mark wanted products that would change


people’s lives. Before Launching It Works!, Mark was a high school teacher and

a basketball coach in a small town in Michigan.

Pam Sowder – Director of Marketing

o Pam has an extensive background in network marketing. Pam has help shape the

business training system for It Works! that is used by distributors. Pam travels

the country helping distributors build their businesses.

Luis Mijares – Product Formulator & Skin Care Expert

o Luis definitely has a passion for development and research in the skin care,

nutritional, pharmaceutical, and biotechnology industries. As a child, Luis,

learned natural remedies from his grandmother in Mexico.

Distributors – these are the men and women across the world that is trying to help their

customers improve their health and their lifestyles by offering these amazing products.

o Depending on the number of distributors and loyal customer that are signed up

under any one distributor will determine the commission level that the distributor

is paid at.

There are no subcontractors as each distributor runs their own business.

Staff

The only place that would have staff is the Headquarters and any customer service call

center that may be in place. The CEO, the Director of Marketing, and Product Formulator &


Skin Care Expert would also be considered staff. Outside of that each distributor runs their

personal business.

The business startup kit is $99. In this kit you will receive: 1 box of 4 Ultimate Body

Applicators, and a Nifty lime green Portfolio folder containing: Blitz cards, a copy of

Success from HOME magazine, a guide of steps to success, customer order forms, a wall

poster to chart your goals and progress, note paper, product guide, distributor contracts, a

copy of the corporate structure, and a copy of the pay structure.

Each distributor also has the option to purchase rights to their own website to increase

their sales for $20 per month.

Each distributor will need to have access to a computer and the internet to access their

website and the forums of Facebook.

Each distributor must purchase at least $80 a month in product. This product can be used

for parties to help progress your business or can be used for personal consumption.

Each distributor can really make a difference in the business world if they have tried the

products and can attest to a personal success story.

Each distributor starts out at the same level. They continue to recruit Loyal Customers

and distributors to grow their business. In order to move up to the next level you must

have 2 loyal customers and 1 distributor signed up underneath you.

Each distributor runs their business their own way. Completely up to each person to go

out and meet people, to hold wrap parties, to media blitz via Facebook, or send email.

Financial Requirements


This financial section outlines the costs associated with the initial cost of this business as

well as the monthly up keep and the potential opportunities. As It Works! is a company that

allows you to grow your own individual business is becomes necessary to understand that the

business is what you make of it and the sky is the limit for earning potential. The key is to have

a solid plan to build off of. There are basic elements that need to be addressed at first and those

that need to be constantly addressed as the business is running. The entire goal of this business

is to make a profit. The It Works! business makes this very possible. In order to start your

business there is a $99 startup fee. This covers your business kit as well as one application of the

Ultimate Body Applicators. During each month that you are a distributor you must submit an

$80 order of product to remain a distributor. This order can be product that you are allowed to

sell individually, or allow customers, to try, or use for personal consumption. Also during each

month you are a distributor you have the option of paying for a person website. The cost

associated with this marketing tool is $20 per month.

As a distributor, you call your own shots and you are allowed to build your business any way

you see fit as long as you follow the rules provided by the corporate office. There are products

available for purchase that will allow you to advertise your business or at least promote a reason

for someone to ask questions. There are displays, Blitz cards for you to pass out, business cards,

T-shirts, banners, and all kinds of other promotional items. Each month you need to advertise

your business to ensure that you draw loyal customers and potential distributors to your business.

As you build your business each month increasing the number of loyal customers and the

number of distributors that you have the level at which you are paid commission changes. Also

the company will run competitions or the distributor that you signed up under will run a contest


to increase your earnings. Also if you sign up 2 distributors and 4 loyal customers in the first 30

days of your business you receive a $100 and $150 in product.

As a distributor, when you talk to everyone you can about the product and you post like mad

on Facebook, you absolutely have the potential to cover the costs you accrue each month by the

commissions you qualify for. As each loyal customer adds to the commission you make, each

distributor that you sign up helps you climb the ladder towards the top thus achieving a higher

income earning potential.

The business you build allows you the freedom in your life. To be allowed the extra money

to pay off debt and to afford things that normally would not be available to you. The It Works!

company really is improving people’s lives not only by the wonderfully amazing products they

sell but the opportunity to make amazing money. Distributors around the world are becoming

debt free and selling their homes to upgrade to new and improved ones, as well as paying for

their secondary education and putting away money for their children’s education.

I am fortunate to be on this wild journey and to be allowed the opportunity to take myself out

of debt and to help people improve their quality of life with the products by It Works!. There is

nothing about this business that is hard or over complicated. If you put just a few minutes into it

each day or a few minutes each week and you talk to people about the products you can build it

to the moon. I especially like to see the people that are my loyal customers who really do see a

difference in their body and then it becomes a satisfaction reward and not just a financial one.

Sometimes the rewards do your heart just as much good as it does for your wallet.

Operations Requirements


It Works! is an amazing company that finds time for each one of its teammates no matter

where they might be in their journey. It Works! believes in their products 100% and stand

behind them, so naturally they back up those individuals who chose to make it their career to

help put their products in the hands of consumers across the world. After all that is the goal to

put these amazing products into the hands of consumers that want a healthier lifestyle.

The independent distributors for It Works! do not need specialized training or any kind of

degree. They only need to have the drive and the desire to want to make their business all that it

can be. The motivation can be very simple. In fact for most it is to get themselves out of debt.

Helping people feel better for them becomes secondary to being debt free. To be Debt free is

such a weight lifted off your shoulders. Think of all the things that one can actually do with your

income when you are not paying bills with it. You stand at a cross roads being a distributor with

It Works!: you either live your life to succeed and make it your mission to put these products in

the hands of every one you meet and make your dreams come true or you find capable people to

do exactly that and you still reap the benefits, or there is a third choice, use the products for your

own consumption and improve your lifestyle. Either choice that you make you cannot go wrong.

It Works! does not care about your back ground or what you currently do for a living. It

Works! builds their teams with competent individuals who have a dream. Each distributor runs

their own business and they run it the way they want by following just a few guidelines from the

corporate office. You must purchase $80 a month of product in the first level of the business.

As you build up your Loyal Customers and you sign up distributors under you that amount

increases. You become part of this amazing family that is only here to support you to do great

things and make you fulfill your dreams. You can receive this support over the phone, via


corporate website, Facebook, Twitter, or you can attend a Boot Camp. Boot Camps are put on

all across the country and help to keep the distributors fired up about the products and to kick off

new products or contests It Works! is currently holding. During these Boot Camps, you can also

attend seminars to learn how to Blitz, to learn how to approach people, how to run your business

if you are just starting out or are in a rut, how to set up and run a display or a booth at an event,

and even how to have a Wrap Party. There are also seminars about how to approach people to

become a distributor. The best part is you are around hundreds of men and women that are doing

the same thing as you and it really can help rev you up and get you excited to get out in the world

and spread the word. The earning potential is unlimited and can be as big as you desire. You

learn so much just getting to know people who really want you to succeed. You are your own

boss. Once you sign up distributors under you, you play the same support role that the person

who signed you up has and those above them do.

In the corporate offices there are positions that require knowledge and attention to detail. In

the corporate office there is a ration of different positions. There is a President & CEO: Mark

Pentecost, Chief Networking Officer: Pam Sowder, and Product Formulator & Skin Care Expert:

Luis Mijares. There are also customer service representatives to support the customer &

distributor calls, there are also specialist that take care of the web support. The amount of these

staff depends on the call volume and the amount of distributors that are active. There are also

staff that monitor the websites, the sales merchandise, and of course those who plan these

retreats or Boot Camps. These jobs all have responsibilities that coincide with their position. As

the President and CEO you have to have the vision that started the whole company and help

those around you each day fulfill their dreams. As the Chief Networking Officer you conduct


trainings and speak at Boot Camps to help the distributors across the world reach their maximum

potential. The Product Formulator has a very extensive background in skin care and the anatomy

to understand the chemicals and how they will react with the body. The customer service

representatives will need specific training in the products and the processes that they will be

answering questions about. And the web support staff will have to have a background in

computers and the programs that It Works! is running.

References

Agnetis, A., Detti, P., Meloni, C., & Pacciarelli, D. (2001). Set-up coordination between two

stages of a supply chain. Annals of Operations Research, 107(1), 15-32. Retrieved from

http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/

214509090?accountid=28125

(2013, June 23). Retrieved from IT Works!: http://www.myitworks.com/

Matsuno, K., & Mentzer, J. T. (2000). The effects of strategy type on the market orientation-

performance relationship. Journal of Marketing, 64(4), 1-16. Retrieved from


http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/

227774524?accountid=28125

Monarch Plastic Surgery. (2013, June). Retrieved from http://www.monarchps.com/

Nicholas, L. (2013, July 16). Triple Diamond Leader with It Works! Global. (J. Tenopir,

Interviewer)

Par Exsalonce. (2013, June). Retrieved from http://www.parexsalonce.com/

Scott, J. E., & Higgins, J. W. (2012). Upstream social marketing: Exploring the experiences of

recreation professionals in delivering physical activity to low-income citizens. Social

Marketing Quarterly, 18(2), 112. Retrieved from http://ezproxy.bellevue.edu:80/login?

url=http://search.proquest.com/docview/1033194900?accountid=28125

(2012, April ). SUCCESS from Home.

http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/1033194900?accountid=28125

http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/1033194900?accountid=28125

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