The Current Wellness Boom
With healthcare spending on the rise around the world (see Exhibit 1) as a percentage of GDP, there has been an increase push to change from treatment to prevention medicine ; after all, what better way to reduce the spending on healthcare than to avoid people getting sick to begin with? As of 2013, the global wellness market hit $3.4 trillion, with the healthy eating, nutrition, and weight loss sector owning $278 billion of the market . Monetizing on this trend, and realizing that people in today’s age are busy, with very limited time to make it to the gym, DailyBurn entered the market with a simple platform of bringing the workouts to the consumers in the comfort of their own homes and a time that is convenient for them.
DailyBurn’s Business Model: How They Create Value
DailyBurn is an online fitness program designed for both men and women to help them stay motivated to maintain a healthy lifestyle. Dubbed as the “digital fitness solution”, DailyBurn focuses on acknowledging a person’s well-being is not just about working out, but also about their overall wellness including diet .
DailyBurn is committed to bringing workouts to a place that is convenient for their customers at a time that works in their schedule – DailyBurn acknowledges people in the 21st century are busy and to help people stay healthy, DailyBurn must make living healthier lives as easy and convenient as possible .
DailyBurn also quantifies their customer’s success and helps them track it so that folks stay motivated to stay healthy .
Daily Burn’s Operating Model: How They Deliver The Value
Video 1: DailyBurn Advertisement 
Base Offerings: DailyBurn provides 16 different exercise programs, 500+ different workouts, meal plans, recipes, and supplement recommendations . They use high-profile expert trainers in their 16 programs, such as Bob Harper, a trainer from The Biggest Loose TV show. DailyBurn diversifies their exercise programs so that there is an option for everyone, no matter where they are fitness wise and what types of workouts they enjoy, including: cardio circuits, dancing, kettlebell workouts, yoga, pilates, and weight lighting . To keep customers from being overwhelmed, customers are asked to input key metrics such as current weight, goal weight, gender, age, previous workout experiences, and how much time they will have to work out; then customers are given a recommended trainer and fitness program which best fits their current needs .
Technology: DailyBurn offers high quality videos that can be streamed over the internet, whether customers are at home or on the road. Additionally, the videos are available on multiple internet devices, through customer’s laptop, phone, tablet, or even Xbox . The iTunes DailyBurn app is easy to use and navigate; the app logs the current workout data (i.e. calories burned) for customers after every workout and customers can even pair the app with a heart rate monitor for better data . The data is summarized in visuals (i.e. graphs on weight lost) for the customer to track their progress .
Pricing: DailyBurn has different low price offerings. The first option is $12.95/month for a cost-conscious customer (often marketed as an option that is cheaper than joining a gym). The second option is $27.95/month, which includes 1:1 coaching. Alternatively, customers could pay for a year up front for $119.95 base or $239.95 for 1:1 coaching .
Add-Ons: DailyBurn sells add-ons on their site such as a heart rate monitor, supplements, and equipment (i.e. kettlebells), none of which are required but all are nice to have for the health conscious customer DailyBurn targets.
Additional Steps DailyBurn Should Consider
Accessibility: While videos are crisp and clear, customers need a fast connection to stream the content; therefore, this will be an issue for people with limited data on their cellular plans or slow wifi. To remedy this, DailyBurn should consider a function similar to Spotify where customers can “download” the video so that they can watch it at their convenience; then customers could then manually update their stats from the workout at a later time so DailyBurn can still track a customer’s progress.
Team Motivation: One of the biggest drawbacks for DailyBurn is that the customer is working out on their own the entire program. While this is optimal for convenience, it is very difficult for the customer to be consistently self-motivated to do the work-outs and to do them well. To remedy this, DailyBurn should consider adding a teaming aspect to it – for instance, they could have people sign-up in teams and whichever team gets the most points each week earns a prize (i.e. a $25 gift card). While they do have a community function of being able to blog about their accomplishments now, there is no competitive environment .
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- “Global Wellness Market Is Now Three Times Larger than Worldwide Pharmaceutical Industry.” Global Wellness Institute, globalwellnessinstitute.org/global-wellness-institute-study-34-trillion-global-wellness-market-is-now-three-times-larger-than-worldwide-pharmaceutical-industry/.
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