Assignment-Budget:Control

https://business-review.eu/business/br-analysis-coaching-industry-growing-fast-and-specialized- 203169 https://www.marketwatch.com/press-release/online-coaching-software-market-growth- opportunity-2022-global-size-industry-share-scope-opportunities-challenges-end-user-analysis- forecast-to-2028-2022-09-06 https://www.digitaljournal.com/pr/coaching-apps-market-size-share-trends-global-industry- overview-demand-growth-and-forecast-2028-top-companies-are-quenza-habitbull-remente- habitica-coach-me-symblify-pathsource-ptsd-coach https://www.researchnester.com/reports/online-coaching-software-market/3628 https://truecoach.co/case-studies/ https://blog.mobiversal.com/app-development-cost-breakdown.html https://www.cleveroad.com/blog/how-much-does-it-cost-to-create-an-app/ https://ca.talent.com/salary?job=mobile+app+developer https://www.revenuecat.com/blog/subscription-metrics-mobile-apps/ https://mindsea.com/app-stats/ https://www.appsflyer.com/company/newsroom/pr/subscription-apps-report/ Current marketing situation describes the target market and the company's position in it, including information about the market, product performance, competition, and distribution. Budget details a supporting marketing budget that is essentially a projected profit-and -loss statement. It shows expected revenues (forecast number of units sold and the average net price) and expected costs (of production, distribution, and marketing). The difference is the projected profit. Once approved by higher management, the budget is the basis for materials buying, production scheduling, personnel planning, and marketing operations. expected revenues (forecast number of units sold and the average net price) expected costs (of production, distribution, and marketing) Price objective: ( maximizing profits, maximizing sales, capturing market share, achieving a target return on investment (ROI) from a product, and maintaining the status quo in terms of the price of a product relative to competing products)

Before pricing a product, an organization must determine its pricing objective(s) ROI: Companies typically set a certain percentage, such as 10 percent, for ROI in a product’s first year following its launch. So, for example, if a company has $100,000 invested in a product and is expecting a 10 percent ROI, it would want the product’s profit to be $10,000. cutting costs cannot be a long-term strategy if a company wants to maintain its image and position in the marketplace. Factors that affect pricing decision: Customer : price elastic for beginner/ first user, but inelastic for a coach with stable group of trainers The number of competing products and substitutes is not too much-----inelastic Response: set low rate for first user (including free trial) Competitors : Truecoach (refer to their membership fee) The Economy and Government Laws and Regulations Product cost: when a new offering is launched, its promotion costs can be very high because people need to be made aware that it exists. Thus, the offering’s stage in the product life cycle can affect its price (1 st year) use cost-plus pricing , in which they take the cost of the product and then add a profit to determine a price refer to uber

Training fees- Conferences, workshops, outside contractors Material resources-software Research expenses Professional services- legal advice Capital expenditures- technical upgrades? Contingency reserves- Contingency funds to allow for flexibility and reduce risks of budget overruns, usually 5-10% of the budget. Estimation techniques: Analogous estimating, three points Analogous estimating uses one or more similar past projects to estimate the duration or cost of your current project. Basically, your IT partner should build three average mobile app development costs: optimistic, pessimistic, and realistic projections. Cost of creating an app: On-demand service app On-demand apps like Uber or Grubhub connect service providers with end-users and satisfy people’s immediate needs 25% commission Budget Timeline: 5-7 months The formula used to calculate app development cost is as follows: Total development time x hourly rate= cost Many factors influence the development cost in Canada, depending on the complexity of the app development, mobile develop rate at an average of 50$ per hour

Budget Cost Timeline (hrs) Yr 1 Yr 2 Yr 3 User registrations & profile 75 3750 Push notifications 30 1500 Geolocation 50 2500 Communication 165 8250 Settings 75 3750 Quality Assurance team 180 9000 Project management 90 4500 UI/UX design 120 6000 39250 App maintenance 19625 7850 7850 App marketing budget 10000 7000 5000 Budget Total 68875 14850 12850 Contingency reserves 4821.25 1039.5 899.5 Total Cost 73696.25 15889.5 13749.5 Total initial development Cost Maintenance can roughly be estimated at 50% of the app’s initial development cost for the first year and an annual 20% of the app’s initial development cost for the following years. Contingency reserves- Contingency funds to allow for flexibility and reduce risks of budget overruns, usually 7% of the budget. App Marketing budget will be spent most (approximately 90%) on advertising for the first and second year to gain people’s awareness, because the app is still in the introduction stage. After the 3 rd year, if the app goes to the maturity stage, we will slightly increase the spending proportion of sales promotion. ROI = (Net return on investment / Cost of investment) x 100% Target ROI for the 1 st year: 7% 1 st year expected profit = 7% x 73696.25 ≈ 5160 1 st year expected revenue = 5160 + 73696.25= 78856 We expect a continuous revenue growth rate of 10% for the first 3 years: 2 nd year expected revenue = 78856 x 110% = 86742 2 nd year expected profit = 86742-15889.5 = 70853 Membership fee Starter plan Standard plan Pro plan Annual member 19/month 49/month 99/month Monthly member 25/month 59/month 119/month

Yes No Yes No Yes No The first step is going to evaluate the financial performance indicator, which is ROI. We have set a target ROI for the first year after launching the app/website. When the actual ROI doesn’t meet our goal, we will track and measure 3 other performance indicators to find the reason and make any possible progress. If the download rate doesn’t meet the goal:  Algorithm improvement: Google play store or apple app store may have a weak algorithm to promote our app. To solve this problem, we need to ask ASO (App store Optimization) specialists for help to improve the algorithm, which could enable us to target potential customers more effectively.  Advertising improvement: Advertising is probably insufficient and ineffective. To address this problem, we could invest more on marketing and advertisement, for example, we could advertise our business through more powerful social media platforms. If the subscriber rate doesn’t meet the goal:  If the number of downloads is relatively high but subscriber rate is low, the target market and advertising are likely to be effective, but our service could not satisfy customers’ expectation. We will consider if the content of our app is unattractive, or bugs frequently exist to affect user experience. Next, we would troubleshoot by providing e- questionnaires to our previous consumers with a prize or coupon. After getting the result, we will be able to relevantly improve the quality and update regularly to meet customers’ satisfaction. Actual ROI  Target ROI Performance indicator Download rates meet goal? Incremental improvement to provide ongoing value Subscriber rates meet goal? Rate Check customer reviews Details

If the customer average review rate doesn’t meet the goal:  We need to check customers’ reviews frequently. If it is too late to respond users’ questions, we will be likely to lose customers. We can set a notification as a reminder to help us reply to those negative customers reviews and solve their problems in time. Organizing and classifying all negative reviews should be considered as a regular conduct, because how customers respond is the most direct way our improvement should be relied on. Lastly, whether those performance indicators meet the goal or not, we will check our customer reviews for details and make progress to satisfy consumers’ needs to provide ongoing value. We put our control program into this flowchart which gives vital information about how we’re doing and strategies for growth. It can also highlight important money-saving strategies.