Team PACK Final Business Plan

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  • lzi Concept Statement

    Page 0

    lzi

    12/18/2015 Final Business Plan

    A convenient, efficient, accurate, and coherent tool for

    understanding hydration and sodium needs while exercising.

    Adams | Chi | Kadim | Palmer

  • lzi Final Business Plan

    Page 1

    THE PROBLEM

    I was in ER last year after vomiting from a nutrition change on an 18 mile run. I was so dehydrated and

    imbalanced with my electrolytes that I had leg muscle fasciculations for months afterwards that worsened every time I exercise to the point of muscle fatigue. Female, 46, long-distance runner

    The most commonly diagnosed electrolyte imbalances are associated with sodium concentrations and include

    hypernatremia (high levels of sodium) and hyponatremia (low levels of sodium).1 Endurance athletes have long

    been aware of the importance of maintaining water and electrolyte balance during training and competition,

    yet exercise-associated-hyponatremia (EAH) is a prevailing condition without a common solution. EAH is

    defined as the condition in which sodium levels drop excessively during and up to 24 hours after prolonged

    physical activity.2 Recent studies show EAH in up to 29% of endurance athletes participating in marathons and

    Ironman triathlons and up to 50% in endurance cycling.3 EAH significantly impacts athletic performance,

    inducing symptoms such as fatigue, nausea, and mental confusion, which can prevent athletes from

    completing their event.4 Although known and preventable, it is one of the most life-threatening causes that

    can occur during an athletic event and has claimed the lives of 10 athletes since 1993.3 Most athletes manage

    their fluid and sodium levels using self-diagnosis and DIY methods and find it inadequate and frustrating.

    Currently, the only method for most people to measure electrolytes levels, including sodium, is by going to a

    hospital or medical lab. There is no product in the market that allows for portable, timely, and reliable diagnosis

    of sodium.

    TARGET MARKET: WHO THEY ARE

    I play the guessing game...It's usually up to me to figure out what my imbalance is...I have found myself in some near scary situations. Female, distance runner

    Our entry market focuses on athletes with the most urgent need for sodium management: endurance athletes.

    These athletes are cyclists, swimmers, and runners who compete for substantial lengths of time (2 to 24 hours),

    often unaided aside from what can be carried on their person or gleaned from intermittent aid stations.

    Endurance athletes are particularly susceptible to EAH because they exercise continuously, incurring large

    volumes of sweat and fluid loss. An average of 11% of endurance athletes consistently suffer from EAH (Table

  • lzi Final Business Plan

    Page 2

    1).5 Fluid and sodium management is therefore imperative in order to complete the race at peak performance

    and avoid hospitalization.6

    Table 1. Entry Market Segmentation3, 7-11

    Market Segment Size

    (Race Finishers)

    Annual Growth

    Rate (2009-2014)

    Reported EAH

    Occurrence Total Market Size

    Half Marathons 2,000,000 14% 8% 160,000

    Marathons 541,000 8% 10-15% 70,000

    Triathlons 477,000 5% 18% 85,860

    Cycling 63,500 2% 50% 31,750

    Total 3,081,500 11% 11% 347,610

    Endurance athletes suffering from EAH comprise approximately 3% of the market at-large we intend to capture

    (Table 2). Fluid and sodium balance is a significant determinant of performance for all athletes.12 What

    differentiates our entry market from the market at-large is that endurance athletes rarely have coaches and

    trainers on the sidelines monitoring their health. Endurance athletes ability to maintain peak performance is

    solely reliant on their self-management and diagnosis, which is a primary frustration of this market segment.

    Table 2. Total Available Market13-15

    Market Segment Number of

    Athletes

    Annual Growth

    Rate (2009-2014)

    Professional Athletes 14,900 7%

    Collegiate Athletes 478,869 20%

    High School Athletes 7,807,047 11%

    Endurance Athletes 3,081,500 13%

    Total Available Market 11,382,316 12%

    TARGET MARKET: WHAT THEY NEED

    You need to be ahead of the game and hopefully manage things before they become a problem. Male, 28, Marathon runner and endurance cyclist

    Endurance athletes have three primary jobs to be done: measure sodium levels, determine what is wrong, and

    correctly solve that issue in order to continue to competing (Table 3). Compared to incumbent methods, this

    market needs a solution which quickly provides them information in real-time and is convenient to use and

  • lzi Final Business Plan

    Page 3

    understand, without compromising accuracy (Figure 1). Additionally, personal interviews with endurance

    athletes shed light that this market has limited real estate on their person or gear, such as a bicycle, for

    utilizing additional gear. Our entry market needs a solution that minimizes impact on personal real estate and

    integrates into existing gear as much as possible.

    Table 3. Jobs to be Done

    Figure 1. Value-based Position Map

    Jobs To Be Done Importance Frequency Frustration Score Rank Benefit

    Measure sodium

    levels 5 5 5 50 1

    Accuracy/ Convenience/

    Affordability

    Determine

    discomfort source 5 3 5 40 2 Convenience/ Certainty

    Continue

    competing 4 5 4 36 3

    Ability to

    Participate/ Effective

  • lzi Final Business Plan

    Page 4

    PRODUCT DESCRIPTION:

    lzi is an all-in-one unit designed to be a convenient solution for athletes to assess their sodium levels and

    understand next-step solutions for nutrition and hydration. lzi utilizes a sweat sensor pressed against the skin to

    measure sodium levels and suggests further action to the user. Our product design is captured in the following

    four target areas:

    Convenience:

    lzi makes sodium-level assessment accessible at all times by attaching the sweat sensor to the body. It is easy

    to use and wear. The interface and sweat sensor are designed to act as a clasp, making it possible for users to

    attach lzi to existing gear, such as watch bands or shorts. lzi is not bulky; its small (approximately the

    diameter of a quarter), sleek, thin design makes it functional to attach to other gear, without being

    cumbersome or causing chafing. lzis sweat sensor is non-invasive - sodium levels are measured through skin-

    to-sensor contact. Simply attach, press the center button to turn on, and go!

    Efficiency:

    lzi provides rapid feedback to users. Sensor readings are taken every five minutes, providing continuous

    feedback to athletes. Users also have the ability to take snap shot readings, simply by tapping the center

    button, triggering an on-demand measurement.

    Accuracy:

    Most athletes rely upon intuition to understand their sodium and hydration needs. With lzi, athletes no longer

    have to question their nutrition and hydration choices; lzi is their guide. Based upon readings from the sweat

    sensor, lzi suggests the next-step for the user using color-coded commands (Figure 2).

    Coherence:

    In the middle of strenuous and prolonged exercise, athletes need an interface which is easy to read and

    understand. lzi utilizes changes in colored light to communicate to users what they need to do to keep their

    sodium levels balanced. lzi is easy to understand how to use; when held, the single center button turns the

    unit on and off and can be pressed to take a snap shot readings for users.

  • lzi Final Business Plan

    Page 5

    Figure 2. lzi Product Design

    lzi

    Interface provides

    colored readings and

    contains power and

    snap shot button

    Rotates at hinge

    to open and close

    Sweat sensor

    faces into skin

    Yellow Light Blue Light Green Light

    Solid = Increase Salt Intake Solid = Drink Water All OK

    Flashing = Urgent Flashing = Urgent

    Red Light All Lights

    End exercise seek help Rotating = Device Running

    Flashing = Low Battery

  • lzi Final Business Plan

    Page 6

    ENVIRONMENTAL SCAN:

    lzis core competency lies in the development of new monitoring technology that has information

    management designed specifically for ease of use in both training and competition. As discussed previously,

    the market value mapping shows the need for an efficient and convenient measurement tool while still

    retaining accuracy. The lzi meets these market needs through these key processes and resources, which are

    detailed later in the business model canvas.

    The competitive advantage of lzi in the athletic tracking device market is founded in being a unique

    product that meets an unserved need. The competitive hierarchy model, as shown below in Figure 3 below,

    analyzes competitors in various levels of the market environment. At the product form level, the closest

    competitors are general fitness trackers that currently do not have sweat sensing or sodium measuring

    capabilities. In the product category realm, supplements such as salt tablets or gel packets and hospital or lab

    tests are the remaining other options for treating sodium imbalance.