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for 45-60 year olds

Co, Paolo
Dela Paz, Mark
Kang, Kyle
Lee, Jonathan
Ng, Keff
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FLOW OF THE PRESENTATION

Introduction Target Market Financials
1 3 5

2 4
ClassPass Marketing Strategy
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The

Wellness
Industry

Target Marketing
Introduction ClassPass Financials
Market Strategy
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Introduction ClassPass Financials
Market Strategy
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Lucrative and fast growing

Market Size

GLOBAL
CONTEXT
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Introduction ClassPass Financials
Market Strategy
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Growth Rate Comparison

The Global
Wellness Institute

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Introduction ClassPass Financials
Market Strategy
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Market Size

THE 70% wellness industry

PHILIPPINES 12% funeral services

8% equipment repair establishments

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Introduction ClassPass Financials
Market Strategy
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Nutritional Fitness
based on... Sector Centers

2020
EUROMONITOR
4.5 - 5% 6.3 %
15% 31.1%
2017
5.1 % 6.3 %
Wellness Tourism Growth
VS
Overall Tourism Industry Growth 2014
Target Marketing
Introduction ClassPass Financials
Market Strategy
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WELLNESS 20%
of GDP
INDUSTRY

said: “top industry

to invest in” (2018)

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Introduction ClassPass Financials
Market Strategy
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Market Trends
➢ People are stressed

➢ They seek
experiences

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Introduction ClassPass Financials
Market Strategy
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In 2017,
2013,

Filipinos are
usually stressed
3.3
23%
and
millioncited work

2016school
onwards
according to...

15%
3.1% cited traffic
of the pop.

Target Marketing
Introduction ClassPass Financials
Market Strategy
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Experience as
about...
Currency

84%
“We value things for how
we experience them”.

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Introduction ClassPass Financials
Market Strategy
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Role of
Social Media

67 3 hours

57
million
users minutes

(daily usage)

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Introduction ClassPass Financials
Market Strategy
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The

Aggregator
Industry

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Introduction ClassPass Financials
Market Strategy
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START
PARTNER
ESTABLISHMENTS

AGGREGATOR
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START
PARTNER
ESTABLISHMENTS

AGGREGATOR
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THE WORKING POPULATION

Many of whom are 80s and 90s kids

Market Profile

THE
MILLENNIALS

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Introduction ClassPass Financials
Market Strategy
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ClassPass
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Introduction Financials
Market Strategy
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What is
ClassPass?
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Who are they?

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Introduction ClassPass Financials
Market Strategy
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Current market
The Millennials are:
- Within 25-34 years old
- Driven and working
- Stressed
- Constantly-on-the-go

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Introduction ClassPass Financials
Market Strategy
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Market needs
addressed
- Variety without
commitment
- Advice from professionals

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Introduction ClassPass Financials
Market Strategy
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The

Target
Market
Marketing
Introduction ClassPass Financials
Strategy
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The Untapped
Market

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Introduction ClassPass Financials
Market Strategy
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“independent and self-accomplished 45-

Who are we 60 year old people who want to stay

to? Young at 45
going to market active, go out with friends and feel
youthful again, but have difficulty
engaging in activities because of lack of
time and information on these
activities.“

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Introduction ClassPass Financials
Market Strategy
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The

Marketing
Strategy
Target
Introduction ClassPass Financials
Market
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What do we
want to do?

REDEFINE
BRAND IMAGE

Target Marketing
Introduction ClassPass Financials
Market Strategy
 E-ducate
33

Marketing Plan

THE R-etain
ERE
STRATEGY
Target
E-xpand
Marketing
Introduction ClassPass Financials
Market Strategy
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Year 1:
EDUCATE
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Introduction ClassPass Financials
Market Strategy
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PROFILE

➢ Flexible hours

➢ Playful

➢ Wants different
activities John Chua
Businessman

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Introduction ClassPass Financials
Market Strategy
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PRICING (For all years)

Estimated no. Credit

Bundle Price
of Classes Equivalence
Php 2,025 2-4 classes 27 credits
Php 3,150 4-6 classes 45 credits
Php 5,850 8-12 classes 90 credits

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Introduction ClassPass Financials
Market Strategy
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EXPANDED SERVICE

➢ Add non-fitness
activities

➢ Profile-based
recommendations

➢ Age-segregated
classes
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Introduction ClassPass Financials
Market Strategy
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Feedback System

➢ Class: Pass or Fail?

➢ Improve activities

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Introduction ClassPass Financials
Market Strategy
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Place
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Place
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PLACE: Malls (events)

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Market Strategy
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Place
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Intermediaries

➢ Social Media
Platforms
○ Facebook
○ Viber

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Market Strategy
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PRODUCT

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Market Strategy
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Promotions
➢ 1st MONTH FREE
for newcomers

➢ Mall Events
○ Physical kiosks

➢ Online presence
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Market Strategy
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Brochure

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Market Strategy
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Market Strategy
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Year 2:
RETAIN
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PROFILE

➢ Serious

➢ Wise spender

➢ Practical
Maryanne Gomez
Team Manager

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Market Strategy
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Product

EVEN MORE OPTIONS

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CLASSPOINTS
➢ Currency

➢ Does not expire

➢ Access to Perks
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Market Strategy
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PROMOTIONS

➢ Emphasize
ClassPoints

➢ Newsletters (The
Warm-Up)

➢ Social Media (FB)

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Market Strategy
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Year 3:
EXPAND
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Introduction ClassPass Financials
Market Strategy
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More Classes

➢ More Of The
Favorites

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Introduction ClassPass Financials
Market Strategy
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PASS THE CLASS

➢ Refer friends

➢ Earn more
ClassPoints
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Market Strategy
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PROMOTIONS BY INFLUENCERS
AND
LOYAL CLASSPASS USERS

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Market Strategy
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Promotions
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Promotions
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The

Financials
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INCOME STATEMENT

Year 1 (2020) Year 2 (2021) Year 3 (2022)

Total Revenue ₱63,270,000.00 ₱127,710,000.00 ₱284,820,000.00

Total Expense ₱75,550,000.00 ₱125,646,000.00 ₱250,260,000.00

Profit -₱12,280,000.00 ₱2,064,000.00 ₱34,560,000.00

Tax (30%) ₱0.00 ₱619,200.00 ₱10,368,000.00

Net Profit after Tax -₱12,280,000.00 ₱1,444,800.00 ₱24,192,000.00

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Market Strategy
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Thank
You!
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Market Strategy
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How well are they performing? (aggregators)
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Timeline
Year 1 Year 2 Year 3
Distribution
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Website

Mobile Application

Social Media

Kiosks

Agents

Establishments

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Market Strategy
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Average Subscriptions per

Year 1 4
User (GuavaPass)
IMPORTANT VALUES *Applies to the old market Year 2 5
Philippine-Piso-to-US-Dollar of GuavaPass that hopped
$1.00 ₱51.75 Year 3 6
to ClassPass
Conversion Rate
Average Subscriptions per
Current Market of GuavaPass 453,000 Year 1 6
User (ClassPass)
Market Size (Guava Pass) Year 1 0.50% 2265
Year 2 7
*Applies to the old market of Year 2 1.00% 4530
GuavaPass that hopped to ClassPass Year 3 2.00% 9060 Year 3 8

Number of 45-60 Year olds (final) 135,373 COGS/Person

Year 1 ₱400.00
(Reimbursements)
Market Size (ClassPass) Year 1 2.00% 2708
Year 2 ₱550.00
Year 2 3.00% 4062
Year 3 ₱600.00
Year 3 5.50% 7446
Frequency of COGS Year 1 25
Price of ClassPass Bundle Average ₱2,500.00
Year 2 40
Year 3 80
Important Values

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Year 1 Q1 Q2 Q3 Q4 Total

Online ₱625,000 ₱625,000 ₱625,000 ₱625,000 ₱2,500,000

Print ₱2,310,000 ₱2,310,000 ₱2,310,000 ₱2,310,000 ₱9,240,000

Merchandise ₱20,000 ₱20,000 ₱20,000 ₱20,000 ₱80,000

Events ₱2,000,000 ₱2,000,000 ₱2,000,000 ₱2,000,000 ₱8,000,000

Staffing ₱1,500,000 ₱1,500,000 ₱1,500,000 ₱1,500,000 ₱6,000,000

Total ₱6,455,000 ₱6,455,000 ₱6,455,000 ₱6,455,000 ₱25,820,000

Year 1 Expenses

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Year 2 Q1 Q2 Q3 Q4 Total

Online ₱1,000,000 ₱1,000,000 ₱1,000,000 ₱1,000,000 ₱4,000,000

Print ₱1,260,000 ₱1,260,000 ₱1,260,000 ₱1,260,000 ₱5,040,000

Merchandise ₱50,000 ₱50,000 ₱50,000 ₱50,000 ₱200,000

Events ₱1,000,000 ₱1,000,000 ₱1,000,000 ₱1,000,000 ₱4,000,000

Staffing ₱750,000 ₱750,000 ₱750,000 ₱750,000 ₱3,000,000

Total ₱4,060,000 ₱4,060,000 ₱4,060,000 ₱4,060,000 ₱16,240,000

Year 2 Expenses

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Year 3 Q1 Q2 Q3 Q4 Total

Online ₱1,200,000 ₱1,200,000 ₱1,200,000 ₱1,200,000 ₱4,800,000

Print ₱589,000 ₱589,000 ₱589,000 ₱589,000 ₱2,356,000

Merchandise ₱100,000 ₱100,000 ₱100,000 ₱100,000 ₱400,000

Events ₱0 ₱1,000,000 ₱0 ₱1,000,000 ₱2,000,000

Staffing ₱500,000 ₱500,000 ₱500,000 ₱500,000 ₱2,000,000

Total ₱2,389,000 ₱3,389,000 ₱2,389,000 ₱3,389,000 ₱11,556,000

Year 3 Expenses

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Year 1 (2020) Year 2 (2021) Year 3 (2022)
Sales ₱63,270,000 ₱127,710,000 ₱284,820,000

Sales Growth (%) - 101.85% 123.02%

Cost of Goods Sold (reimbursements

₱49,730,000 ₱109,406,000 ₱238,704,000
to partners)
Gross Income ₱13,540,000 ₱18,304,000 ₱46,116,000
Expenses
Online ₱2,500,000 ₱4,000,000 ₱4,800,000
Print ₱9,240,000 ₱5,040,000 ₱2,356,000
Merchandise (ex. freebies) ₱80,000 ₱200,000 ₱400,000
Events ₱8,000,000 ₱4,000,000 ₱2,000,000
Staffing ₱6,000,000 ₱3,000,000 ₱2,000,000
Total Expenses ₱25,820,000 ₱16,240,000 ₱11,556,000
Net Income -₱12,280,000 ₱2,064,000 ₱34,560,000
Tax (30%) ₱0 ₱619,200 ₱10,368,000
Net Profit after Tax -₱12,280,000 ₱1,444,800 ₱24,192,000
Difference - ₱13,724,800 ₱22,747,200
Income Statement

Target Marketing
Introduction ClassPass Financials
Market Strategy