Professional Documents
Culture Documents
Devon Jackson
Alyssa Yarem
Daniel Wellish
January 2017
Table of Contents
Executive Summary 1
Problems 5
Solution 12
Customers.13
Channels....19
Revenue Streams..20
Financials 20
Conclusion...25
Bibliography...26
Executive Summary
Introduction:
In the summer of 2016 eleven high-school students passed away due to the high
heats while participating in athletic activities. The rise in temperature that our world has faced in
the past fifty years is unprecedented. The years 2015 and 2016 both set records for hottest years
ever recorded. This has proven to be a detrimental factor to many of those exerting themselves
during the hot summer and spring days. Statistics have suggested that the need for preventative
technology is urgent. Nearly 30,000 people suffer of heat stroke each year and the damage is
irreversible. The brain actually begins to die when the body's core temperature is not kept at
equilibrium. Within the first thirty minutes of exposure to elevated temperatures the body can
receive permanent cellular damage and in the past ten years this has proven to be fatal for more
than 30 high-schools student athletes, and these numbers are expected to rise. These deaths have
been creating tremors across states, coaches and athletic directors alike have been seeking a way
to keep their players safe no matter the temperature.
Product Description:
Here at One Degree we intend to take this
problem head on and invent a revolutionary product
in the health technology industry, the Modern Cooling
Patch . The M.C.P (Modern Cooling Patch) will lower
the risk of heat related illnesses such as heat stroke,
cramps, tightness and heat exhaustion. An adhesive
patch that is capable of accurately monitoring body
core temperature along with a cooling device that
activates when a dangerous rise of body temperature
is detected. The patch contains a Raspberry Pi 0
which acts as a transmitter of data collected from the
user and sends it to technology on the sideline
because of this athletic trainers on the sidelines would
have the ability to track real time vital signs on every
athlete on the field and be alerted when the athletes body core temperature has reached
potentially dangerous levels. With these capabilities, One Degree and our M.C.P can drastically
lower the risk of heat exhaustion and ensure the safety for all of its users.
Each year nearly 4000 people are affected by heat related illnesses and each one
of those people are treated after it's too late. Every year, 700 people pass away due to heat stroke.
Whether it be a sports game or a construction site there is no way for a person to know whether
or not they are in danger and the truth is they are always in danger. It may sound dramatic but
any person participating in a physical activity in temperatures higher than 80 degrees are already
vulnerable to heat related illnesses. How though can we ensure safety of all those participating in
these conditions? Our product is not here to treat those affected by heat illnesses but rather
prevent all users from having any risk of heat illnesses altogether. With our product it will allow
the user to accurately monitor their body temperature as well as heart rate and then react
accordingly by stabilizing the user's vital signs and thus largely reducing the risk of serious heat
related illnesses such as heat stroke and heat exhaustion or even the more minor; tightness and
cramping. By giving our product to athletic trainers on the sidelines it allows for them to
properly monitor each athlete's vital signs and make informed decisions on each players playing
time as the game goes on.
Customer Appeal:
Coaches and athletic directors have not only found a way to protect their players
the entire game but for the entire season. The M.C.P allows for trainer to properly monitor all of
their players on the field and determine how to handle those athletes that are at risk for heat
exhaustion. By incorporating the ability to accurately monitor the user's vital signs and then have
the capability to react accordingly to the escalation of body temperature our product has sparked
interest in the athletic community. Coaches, athletic directors and athletic trainers all raved to us
about the need for this product on the field. After going out and researching the high school
athletics as well as the college environment our company came to the realization that not only is
there a need for our product but there is a large want in the community for it as well.
Target Market:
Our primary consumers will be the school boards while our secondary consumer will
consist of the athletes, coaches and athletic trainers. By presenting to them the same statistics our
company transcribes in this paper, we believe that the district school boards will be motivated to
purchase our preventative technology for the betterment of their schools. Our plan is to sell to the
larger high schools that are classified as 4a, 5a and 6a, these schools could have anywhere
between 1,500 to 5,000 people. Not only do we plan to sell to high schools but after launching
our company we will reach out to college and universities in the ACC and SEC to speak to them
about purchasing our product.We estimated that each school would require to buy a bulk order of
100-300 patches on a yearly basis. After the receiving of the shipment our company would send
in a representative to each school and teach all athletic staff how to function our product. The
M.C.P would be equipped by each athlete in whatever outdoor sport they are participating
whether it be lacrosse, football, soccer, track or cross country.
Finance:
One Degree is seeking a loan of $20,000 that will be paid off in monthly increments
over a three year span with a 7% annual interest rate. We plan to use this loan to accommodate
the start up costs of our business. By using 60% of our own funds, 8% friends family associates
(FFA) we would need the remaining 32% to be covered through a loan.
We predict that after startup our company will be capable of self sufficiency thus not
needing any further loans within the early years of operations. One Degree has allocated small
sums of money towards advertising due to our grassroots approach to market as well as personal
selling to our clients. During year three we also predict to see a spike in sales due to our sales to
Collegiate sports programs that could ultimately persuade other school programs to purchase our
product.
Conclusion:
Our M.C.P will be a revolutionary product in the health technology industry and be the
singular product in the market to properly address heat related illnesses in the community.
One Degree will flourish in the college and high school athletic environment and we
expect for our product to change the way the market approaches preventative healthcare. With
funding, our company will successfully launch and the positive benefits of the M.C.P in the
community will be evident for years to come. When it comes to our health One Degree can
make a difference.
PROBLEMS
Before starting a product venture one must gauge the environment for the needs of the
demographics to properly assess further entry into the desired market. One must also analyze the
market that they intend to enter before beginning product start up, in order to do this the product
A precursor to considering any idea for our main venture product was the evaluation of
the industry.
We analyzed industries such as the quick serve and the outdoor industry, however we
realized that the quick serve market is extremely fragmented and the consumers that are in the
outdoor industry tend to be loyal to their company of choice such as REI, Arcteryx, North Face
and Patagonia, we however decided on the healthcare market. This industry is the largest in the
country, comprising of nearly three trillion dollars each year, and that number is growing nearly
6% per year . Due to to our location in the Southern States we focused on beneficial athletic wear
for athletes.We narrowed down our product ventures to the moldable ice pack and the body
cooling technology, this was due to the large market that we would be entering along with the
After deciding on the sports wellness market we spoke to professionals in the industry to
gauge their thoughts on our product that dealt with the body cooling technology. The vice
president of a large technological health company -Trendshift- stated Ultimately this will lead
to better health of individuals, advanced care outcomes and reduced costs. Which happens to be
the triple aim of our country's healthcare system.. This product would prevent the occurrence or
even the threat of heat related illnesses as well as making sure that all peoples who are equipped
with our device will ultimately lead a more healthy life with these risks voided.
the medical wearable tech market has a plethora of problems that we have to plan to address;
- Nearly every year nearly 3700 people are affected due to the harsh weather
- No product has the ability to be worn and function while playing in a sports game.
- The Earth's temperature is rapidly rising each year and fatalities increase because
of this
With the need for our bodies to maintain a stable body temperature to be effective, our
products importance to our customers will be evident for years to come. To illustrate our
products longevity, we found that by the year 2050 the number of those affected by heat related
illnesses could nearly triple. With no efficient products in our market it is vital that One Degree
make a presence in the market and establish a stronghold in the foreseeable future.
The competition in our market is very small. Products that already exist in the market are
either too large, inefficient or restricts movement. Products that we studied were the Mission
Enduracool towel and the Flexifreeze ice vest. We purchased one of products -the Enduracool
towel- and tested the effectiveness of the product. The towel - after cooling was initiated - dried
after only 27 minutes in 90 degree heat, to put this in context the average workout in the United
After analyzing customer satisfaction with the product we concluded that nearly 35% of
all customers believed that the product did not work to satisfactory levels and that the product
could have been easily replaced with a wet kitchen towel. We do not plan on equipping our
customers with a glorified towel but with modern technology that will protect against the
extreme heat for years to come. We live in a time where the hottest year ever was recorded only
last year 2015 and the year 2016 is on track to break that record already.
Our product will prevent any temperature related illnesses in a time when it is imperative
to stay cool, something that can't be accomplished with our competitors. One Degree will
prevent heat related illnesses by cooling the body temperature to a comfortable level and
simultaneously allow the user to wear our patch while participating in their chosen activity. This
product will also have the capabilities to be used by any school level sports program to monitor
their students vulnerability to heat related illnesses on the field and prevent any harm from
befalling the athletes. Even without the cooling aspect of our product trainer and athletic
directors were highly engaged in the idea of monitoring their player's health while on the
sidelines.
Our product is versatile enough to serve any function needed to be performed in hot or
A product in our industry has to be special and stand out to actually attract any attention.
An industry that is the largest in the United States needs a product that can exceed expectations
and improve the lives of all of its users. Yet In the market we are entering no such product exists
and we plan to jump on this opportunity and introduce a revolutionary healthcare product that
will allow for users to wear our product while safely participating in any outdoor activity without
overheating.
With the lack of competition in the market there is a large opportunity for us to enter the
market and take a foothold that we couldn't have gotten in any other market. With the
Enduracool Towel and Flexifreeze vest, both these products are the basis for all cooling
technology in the market at this time, however there are an abundance of complaints about
functionality, practicality and effectiveness. With no competition and a one of a kind product it
would be a large advantage for us when entering the market and allow for us to ease into the
we spoke to sport trainers and coaches. Trainers and coaches alike expressed their interest with
our product when we spoke to them. Trainers were asked a series of questions one of them being,
How many of the cases that you encounter each day with student athletes are heat related? Her
response was as follows Whether is be cramps or tightness more than 60% of the cases that I
come across are heat related. With these interviews our company was confident in any
advancement in our body cooling tech. Not only this but we learned from research that heat
related illnesses are the number one cause of cramps and tightness in muscles, so by
circumventing heat exhaustion we could also drastically lower the possibility for cramps and
an average heat index of 88 per day, the Southern states have some of the hottest temperatures
and have the largest population of people regionally in the entire Western hemisphere with
115,000,000 people. The Southern states are just the beginning of the large amount of
marketplaces we plan to reach due to the exponentially heating of the world we live in today. A
product that will have a need in the world for the next 50 years plus will inevitably be successful,
especially in a marketplace where existing companies have yet to take into consideration the
needs of their customers. These same companies plan to equip their customers with a wet towel
These products exist concurrently with the exponential rise of world temperature. This
is not the only strength and opportunity that our company has come across when performing our
analysis. Our product also meets all criteria that the healthcare market has set for its upcoming
By meeting these criteria the ability to appease the market regulation and stay ahead of
them will indubitably allow for our company to progress further into the industry.
After completing the SWOT analysis on a majority of our market we believe we have
Solution
By identifying theses holes in our competitor's products One Degree has integrated into
- A product with longevity that meets the need for the seeable future.
- A product that will allow for people to measure their vulnerability to heat related
illness
. By offering the customers everything that our competitors seems to lack it will easily
allow One Degree to gain market share in a booming industry. In 2015 the health technology
market was most profitable in the United States even in front of commercial services, industrial
Those products already existing in the marketplace have yet to meet the needs of the
community. As said before, nearly 4000 people are affected each year from heat related illnesses
and those numbers are anticipated to grow exponentially in the next 20 years yet no product has
properly addressed these problems and we plan to be the first. Our M.C.P has the capabilities to
significantly lower those affected each year by heat related illnesses by reacting to the vital signs
that each individual user gives off. By integrating into our product the ability to read and
stabilize each user's individual vital signs we suspect that the problems that our community has
previously faced will be seriously diminished. Our company is not here to only gain capital but
to assist communities around our nation to provide a safer way to perform everyday activities
outside.
CUSTOMERS
levels meaning that One Degree will have to take an active approach within the first few minutes
of any activity our user in participating in. While researching the environment around us along
with the demographics of our market we came to the realization that our product could be
utilized for any situation; military operations, construction sites, sports events, patients with high
One Degree will be entering the market in the southern states and spread west after
startup. The Southern states have a higher population than any other region by nearly thirty
million and is home to nearly 40% of the entire country's populus. The population is not the only
factor that persuaded our company to enter the market in this specific region of the United States.
The temperature in the Southern States ranges from 75-110 degrees between the spring and
The hottest states in the country are also located in the South of the United States, of the
region. In the South there are the highest number of high school
athletes with nearly 4.2 million of the 8 million in the United states.
these alarming statistics One Degree has made it our goal to improve
the lives of all of our users and create awareness for heatstroke in the
community.
combined. After interviewing high school/college trainers and coaches our company concluded
that nearly 61% of all injuries in high school/college athletes are caused by heat. Trainers we
spoke to acknowledged that there were limited products in the market that were dedicated to
preventing and solving heat related illnesses in athletes and any others extreme conditions. One
specific trainer our company spoke to stated, This product would be 100% beneficial to the
athletics in our country. Preventing heat related illnesses would be a cornerstone for the fitness
market and inevitably be the pinnacle of preventative market. She spoke to the point that any
athlete that becomes exposed to extremely hot temperatures and is then overcome with heat
exhaustion can lose mental capabilities, damage organs, weaken immune system and damage the
ability to battle hot temperatures in the future. Yet, One Degree will not be directly targeting
the student athletes. Our company will be targeting athletes as a secondary market as well will be
focusing on marketing to the School Athletic Association of each state. By marketing to the
S.A.A these associations would be able to distribute our product to their athletes and disseminate
the effectiveness of One Degree to surrounding states and their athletic programs. Our product
would be most effective in this market due to the exposure to brutal temperatures that each
student would experience throughout the season. Students under the age of 21 are more
susceptible to heat and their body temperature can rise nearly five times as fast as adults. One
Degree will function as two separate preventative products; one facet that will alert trainers on
sideline of imminent danger towards the students and the other that cools the student so any
future damage can be prevented. After interviewing players on the Apex Friendship High School
team we were told that the only time trainers would actually come out and interfere would be
when a player had collapsed on the field or was visibly fatigued. Since 1995 the number of
athletes dying from heat stroke has nearly doubled and we as a nation need to hold the lives of
our children in great regard. Six high school athletes passed away in the span of three months of
the 2016 summer, here at One Degree we are not only trying to lower the death toll but
eliminate it altogether.
After the first two years of running our business through high schools around the
southern region, we at One Degree plan on conducting business with NCAA schools in
conferences such as the ACC and SEC. Schools in those conferences have between 75,000,000
and 200,000,000 to spend on athletics each year whether it be for football, track, soccer or
lacrosse. These two conferences combined are host to 29 schools and both field nearly 60 sports,
27 of them being outdoor. With the athletic programs not only trying to protect but also learn
how to better take care of their athletes, One Degree will indubitably be a perfect fit.
During the early stages of our company we plan to focus mainly on schools within the
Carolinas and spread out after we have successfully supplied those markets. The schools that we
gain exponential growth and stamp our name on the health technology
for our product it would permit us here at One Degree to perfect our
North Carolina State would be our first entry into the college
software and technology for the company as well as dedicate time to improving the functionality
of the actual patch. Say this, One Degree would like to give NCSU the first shot at testing the
patch on the field before any other schools to ensure the effectiveness of the product throughout
the year. After accomplishing this we would begin to sell to other North Carolina schools such
High temperatures do not belong to just the Southern states but the Middle Eastern
countries, after effectively marketing to the athletics in each we state we plan to spread our
operations to the government level and go over seas. After interviewing a Special Operation
Manager focused on counter terrorism in the Middle East we came to the realization that the
people in the South were not the only ones in need. We asked this man - who wished to stay
anonymous -, is heat a large problem in day to day experiences where you work.The man
stated Yes, absolutely, running operations where i do, during combat operations it is likely
many soldiers are affected by overheating through exposure to high temperatures in combat
conditions. As a leader of fourteen-hundred men we asked him another simple question, how
many times have you experienced heat stroke in your unit or even yourself? His response
illustrated the importance of stability with your body temperature, I would see dozens of men in
the middle of combat operations fall down not from gunshot but rather from just the pure heat
they were experiencing. Once you get heat exhaustion you are incapacitated, you can't fight
anymore. We also spoke to him about his job and whether or not there was technology provided
to them that would help them defend against heat exhaustion and other heat related illnesses. He
told us that the best one could do was to stay hydrated and to stay out of the sun as much as
possible.
One Degree is attempting to eliminate the risk of any life threatening heat stroke to all
of our customers. When further researching our market we decided we would not be conducting
sales from business to consumer but rather business to business. With the high costs of
manufacturing our product would be sold on a mass scale to large associations located within
countries. We found this as the most efficient way of sales due to the large number of customers
being served in each market with nearly 8 million high school athletes and 100,000 troops
colleges/universities they would be able to disseminate our name throughout the country with
CHANNELS
One Degree will not be focusing on selling to stores or retail settings but rather in bulk to
One Degree will be able to utilize more of our resources to contact and sell to the organizations
within each state. This approach will allow us to directly reach our target market, but to
accomplish this One Degree will be traveling statewide to sell to school officials during the
offseasons of the sports programs. In addition to our marketing magazines we plan to also make
appearances at various athletic events to give coaches and athletic directors and first hand look at
One Degree will not hold a large amount of inventory in a warehouse or any other
storage unit to cut down on our expenses. We will stock by an order basis from each school and
manufacture according to these orders. This entails that One Degree will be primarily selling
prior to the summer/fall football and soccer seasons and the spring cross country, track and
lacrosse seasons. The Southern states will be the focus of our sales team, this is primarily due to
the substantial number of schools that have large amounts of money budgeted to sports
programs. With the high income and high temperatures of these areas, this will make the
Southern states our primary sales/distribution location for the majority of our sales .
Revenue Streams:
At One Degree our main source of revenue will be from sales made across school
athletic programs as well any other purchases made by government foundations. After
purchasing our product our company includes multiple services to improve their experience with
our M.C.P:
After purchasing our product, our customers will have the option at the end of the year to opt
into another contract that would supply them with another year's worth of M.C.P. as well as the
Cost Structure
Due to our minimalistic approach to the marketplace our acquisition costs will be small.
Our main customers are the athletic directors of each school as well as the school board. We will
be spending a majority of our advertising money on magazine ads and test marketing at various
athletic events. Each time a school puts in an order for our product, One Degree will be
spending very little for our distribution, anywhere between $40-80 per shipment. We will not be
hiring employees until the third year of operations and do not have to worry about an increase of
Financials:
Start up Costs:
One Degree needs a total sum of $62,275 to launch our business. Of the $64,350 a
total of 68% will be covered by either our own personal funds or friends family associates. We
are seeking a loan on the remaining $20,000 in which we will pay back monthly over a three
year period with a 7% annual interest expense. We will be spending this money on rent, traveling
expenses, office supplies, furniture, computers, prototypes of our M.C.P, and software
purchases of about 2.3% from year one two and an increase of 9.2% from year one to year three.
As seen on the following pages One Degree expects to take losses in our first two years of
operations. This is a normality and was expected in starting the business. Year three includes the
beginning of our sales towards collegiate sports programs in the Southern States and the impact
of these sales can be seen in the final net income for the year. The first two years also have been
dedicated to getting our name out into the athletic community and allowing for ourselves to
expand farther outside the beginning area of Wake County, located in North Carolina. Year three
also marks the date of our hiring of employees to help expand business in the area. By selling our
product for $14.75 and manufacturing it for $7.14 it will allow for a quick growth of sales within
the first few years of sales. This 52% gross margin will allow for us to cover the majority of our
expenses by the end of the year. As mentioned before we are taking a grassroots approach to the
market place thus increasing our costs of traveling and selling however with this increase of
As mentioned before the third year of our business operations marks our expansion to the
collegiate market. These schools have anywhere from 70 million to 250 million dollars to spend.
Due to their superfluous amount of disposable money One Degree plans to target these schools
as one of our main customers in future business ventures. These collegiate sports programs have
an extended sports season as well as a larger athlete base meaning that there would be a larger
need for our product than in the high school market. College practices can last anywhere from
two and a half to four hours and the best that an athlete can do to prepare for strenuous
conditions is stay hydrated however, the chance of heat related illnesses is still prevalent,
hydration. this just lowers the risk. One Degree plans to do all that we can to eliminate this risk
At One Degree we
36 months. We feel
this figure represents how we will pay back a portion of the loan in the first year. The large
difference between our cost of goods sold and the our selling price for the product One Degree is
primed for success in this booming technological marketplace. We will be seeking this loan
exclusively for start up costs and we predict that our company will be self-sufficient in our
operations and will not be needing any further loan in the foreseeable future.
Our goal at One Degree is to expand our market to as many schools possible to ensure
the safety of their athletes. Each year we will be monitoring the percentage of growth that we
experience each year as well as seeking any room for improvement on our Modern Cooling
Patch. We will also monitor each school to gather statistics of heat related illnesses before and
after the implementation of our device. By year 5 we hope to have expanded to at least 5 schools
Competitive advantage
One Degree is the first product in the marketplace to properly address the rise of
heatstroke in the community. We have already set in place a meeting with patent lawyers to
patent our Modern Cooling Patch. The use of an adhesive cooling patch is our unique stamp on
Conclusion:
One Degree has the chance to change the way we approach preventative healthcare in a
day and age where the threat of harm coming unto us has risen drastically. With your help we
can assist communities all around the country and provide for our users a safer way to participate
in their favorite outdoors activities whether it be football, soccer, track or even foreign affairs.
The M.C.P will be seen for years to come as the turning point for the health technology market
as well as the basis for cooling products well into the future. With your loan of $20,000, One
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