MYMARK: A MOBILE APP BUSINESS PLAN PROPOSAL

A PROJECT REPORT

Presented to the Department of Health Care Administration

California State University, Long Beach

In Partial Fulfillment

of the Requirements for the Degree

Master of Science in Health Care Administration

Committee Members:

Nathan Gerard, Ph.D. (Chair)

Sandhya Shimoga, Ph.D.
Tony Sinay, Ph.D.

College Designee:

Tony Sinay, Ph.D.

By Andres Enriquez

B.S., 2014, The University of Arizona

May 2017





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Andres Enriquez

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ABSTRACT

MYMARK: A MOBILE APP BUSINESS PLAN PROPOSAL

By

Andres Enriquez

May 2017

This business plan proposes a mobile app, MyMark, that will form in partnership with

grocery stores nationwide to promote healthy behaviors in the form of nutritional consumption.

The app will take on its initial pilot testing at a Ralphs grocery store located in San Diego,

California. It will cater to grocery store shoppers by synthesizing custom grocery lists based on

the app user’s personally input health information. The app is intended to serve as a convenient

replacement to shopping in the moment and aimlessly walking up and down the grocery store

aisles. It is also a conventional solution to bringing a nutritious grocery list to the store. This

business proposal delivers the market analysis, feasibility analysis, legal and regulatory

considerations, and financial overview that will allow MyMark to successfully pilot and

nationally expand.

ii


TABLE OF CONTENTS

ABSTRACT……………………………………………………………………………………....ii

LIST OF TABLES……………………………………………………………………………......iv

LIST OF FIGURES…………………………………………………………………………….....v

1. MARKET ANALYSIS .........................................................................................................1

2. FEASIBILITY ANALYSIS.................................................................................................21

3. LEGAL AND REGULATORY ISSUES............................................................................30

4. FINANCIAL ANALYSIS...................................................................................................37

APPENDICES………………………………………………………........................……….......43

A. MASTER CONTROL………………………………………...…………………………44

B. ANSWERS……………………………………………………...............……………….46

REFERENCES..............................................................................................................................48

iii


LIST OF TABLES

1. Competitor Comparison ……………………………………………………..............………..13

2. Market Growth ………………………………………………………………..............………25

3. SWOT Analysis……………………………………………………………..............………...27

iv


LIST OF FIGURES

1. Smartphones, tablets grew in recent years; other devices declined or stayed flat……...............5

2. Retail food store sales …………………………..………................…………………….……..9

3. But money and time constraints continue to weigh on today’s household.................….....…..10

4. Food shopping in America 2014 report……………………………................……………….11

5. The household shopping model, McGill University………………................……..…………14

6. Food shopping in America 2016 report.....................................................................................18

CHAPTER 1

MARKET ANALYSIS

MyMark is an innovative solution to countless hours wasted looking for items in the

grocery store, not knowing what exactly to buy and at what price. It not only serves as a digital

method for convenience, but as a health tracker and a personal lifestyle coach. The business itself

is a 100% technology driven company that will be presented in the form of a smart phone app

and as a mobile site. Mobile health and wellness apps, like MyMark, have the potential to

transform healthcare by spreading health information to the public at large (Steinhubl, Muse, &

Topol, 2015) . The brand MyMark stands for “My Market” and will ultimately be launched in

partnership with various major grocery store chains spanning the entire United States. The

majority of the business platform will be centered around the app. It will involve making a

profile which will allow MyMark to consider individualized health statistics, personal goals, and

lifestyle preferences when generating personalized grocery lists. The market analysis below will

introduce the business intricacies and operational needs of MyMark. It will also propose the

general marketing plan, considering key competitors and potential customers.

Introduction

The purpose of the marketing plan is to establish an understanding of why MyMark can

be embraced by the United States consumer population and how it can greatly influence

nutritional thinking among families. In its simplest form, MyMark will synthesize a grocery list

which will be tailored to individual needs and desires of each user, based on the grocery store

where they shop. Such a savvy and driven list with the potential of MyMark has currently not

been offered in the market place. Thus it has great potential to be utilized by the everyday

consumer.

Historically, there exists research on consumer science and the decision theories involved

in shopping at a grocery store or neighborhood market. This research makes associations

between family dynamics, social infrastructure, and overall population health (Wiig & Smith,

2009). The Journal of Consumer Research (JCR) has published research on various trends that

existed nearly 30 years ago in grocery stores that still exist today (Schenk, Löffler, & Rauh,

2007). It is noted that both “store knowledge and time available for shopping have an impact on

such shopping behaviors as failure to make the intended purchases, unplanned buying, brand and

product class switching, and purchase volume deliberation. The findings also suggest that the

information processing activities that mediate these relationships differ across shopping

conditions” (Park, Iyer, & Smith, 1989, p.1741). MyMark plans to cater to the consumers by

adjusting its grocery list output in regards to the differentiated shopping conditions: visit and

shop and buy, as adopted by JCR in a study addressing an integrated model of grocery store

behavior. The study found that the shopping path and purchase behavior influenced

purposefulness of purchase. The 2009 Oxford University Press’s published findings indicated

that the longer a person spent shopping in the grocery store, the more purpose was behind their

purchases. This was due to an emotional connection of what was currently in their shopping cart

at the time of purchase as well as social presence of other shoppers (Hui, Bradlow, & Fader,

2009). It is true that shopping with purpose will foster more well thought out, beneficial

purchases. Well thought out purchases are essential to a productive trip to the grocery store

because they involve the consumers’ rationale. In the development of Mymark however, it will

be the app that does the thinking, being the ultimate initiator of purposefulness as opposed to the

consumer. A conflicting view may argue that purposeful purchases may not always be healthy

purchases. According to a JAMA Internal Medicine study of 68 participants spanning ages 18-

62, it was concluded that shoppers possess different purchasing habits depending on their state of

hunger. “Fasted participants demonstrated increased activation in brain areas associated with

reward, which led to higher calorie purchases” (Tal &Wansink, 2013). The study notes that even

a short-term fasted state can lead a consumer to purchase high calorie foods over low calorie

foods. This notion of a “hungry shopper” must be considered in the development and the

marketing of Mymark. Mymark hopes to not only shift the buying habits of shoppers by creating

lists, but more so to change the perception of what is beneficial for the individualized health of

the person(s) purchasing the food. The development of the app is more so a solution to eating

right for one’s type rather than completely saying no to all unhealthy or high caloric foods.

Mymark aims to bring this element of purposefulness to the consumer in a more direct way that

will save time and transpose a health-centric element of value into each and every grocery store

visit. Purposefulness must certainly always be present within the grocery store experience. In

regards to the JCR study, Mymark wants to continue the purposefulness of the grocery store visit

but in a time that is more efficient, convenient, and healthy to the everyday consumer.

MyMark aims to solve two major problems: longer than necessary times spent in the

grocery store and unhealthy purchases that will impair health when consumed frequently. The

MyMark team believes that this app is an innovative solution to addressing consumer

convenience while most importantly, promoting healthy behaviors. The app itself will serve as a

tool that can be used by all shoppers who frequent the grocery store on a regular basis. It is not

intended for those who wish to go to the store to buy a single item or two, but rather for the

individual who needs to restock their home refrigerator and/or pantry. MyMark aims to reduce

unhealthy purchases at the grocery store and to ensure that its users experience a wholesome,

balanced diet on an everyday basis. With this notion, its big picture goal will be to reduce

chronic disease and reverse the negative cost curve that healthcare has been burdened with in

terms of overall GDP percentage (Centers for Medicare and Medicaid Services, 2016). The

following market analysis will demonstrate that this product has the ability to change the culture

of grocery store shopping and healthy eating for years to come.

Company Analysis

The purpose of MyMark is to bridge the gap between the perception of going to the

grocery store and actually getting what one wants or needs. Bassett, Beagan, and Chapman

(2008) examined families in Canada and how consumption decisions were made when going to

the grocery store. Some families had a written grocery list, while other families typed out their

list on their phones and others kept a mental list in their head. Some even combined all three

listing methods while others did not use a grocery list at all (Bassett et al., 2008).

MyMark will work by having a simple app interface that can be easily adopted by all

users of Apple iOS platforms. If the user does not have an iPhone, they can log on to their

desktop computer, laptop, or tablet and use MyMark just as anyone on the app would be able to

using the Apple iOS platform. The app will originally only be available for use on the Apple

iOS platform and may see potential growth into the Android market pending initial app use and

overall sales. Apple finished in 2015 as the number one brand in both the United States and

China however Android is rapidly catching up and dominating among low social economic

status markets (Elmer-Dewitt, 2016). Due to the app’s pilot launch at Ralphs, a Southern

California subsidiary of Kroger, clients will be highly representative of middle and upper-middle

class shoppers. Software developers for the MyMark team will most certainly keep Android in

mind for next-level development; however a more niche market to start will allow for more

robust forms of marketing, advertising, and sales.

MyMark will initially be limited to those with access to technology. However, this is not

seen as a critical issue because according to the Pew Research Center, nearly 70% of the United

States population owns a smartphone (Anderson, 2015). The documented smart phone use in the

United States continues to grow exponentially greater than most other technological interfaces,

as demonstrated by the chart below.

FIGURE 1. Smartphones, tablets grew in recent years; other devices declined or stayed flat
(Adapted from Anderson, 2015).

In addition to consumer technology, MyMark’s market analysis encompasses the

consumer’s health specifications. MyMark uses consumer-input nutritional goals, health

statistics and pertinent individualized information that will be essential to each specific user of

the technology. The overarching goal of MyMark will be to create a simplified grocery list that

is specific to product brands, prices, sales, and eating habits of the consumer. MyMark will also

provide recipes within the app in accordance with what foods the consumer typically eats and

what types of cooking they may be interested in. MyMark will create these customized grocery

lists and recipes based on the user’s current health status and health conditions, food preferences,

and health and nutrition goals. They will identify this information by requiring users to create a

profile. This profile will ask individuals to input their basic health information such as current

weight, height, body mass index, age, dietary restrictions, chronic health conditions, and

allergies. Next, users will be asked to input their dietary preferences of the major food groups

such as favorite proteins, grains, fruits, dairy, and vegetables. They will also be required to report

their guilty pleasure foods, average daily consumption of each of the major food groups, and if

they follow vegan, vegetarian, pescatarian, and/or kosher diets. Then, users will be directed to a

goals page where they will be asked their goal weight, desired amount of vitamins consumed per

day, and goal amount of each food group consumed daily. The app will restrict users from

putting any weight lower than the lowest calculated healthy weight for their height and

nutritional needs. Finally, the app will generate a personalized grocery list based on the

individual’s profile. Grocery lists built by MyMark will not be generic to any products and any

brands, but will be tailored to specific grocery stores depending on where a user is

geographically located in the United States. For example, if the MyMark user is located in

Southern California, they may primarily shop at Ralphs and if another user is located in the

Midwest, they may choose to shop at Meijer. However, it is not to say that the two consumers in

different geographic locations can’t have a few stores in common. Perhaps they both shop at

chains such as Walmart, Target or Whole Foods. With this information at hand, MyMark can

then generate personal grocery lists for its consumers based on the stores they most frequently

shop, their nutritional goals and their food preferences.

MyMark will increase its market share by tailoring to families along with individual

shoppers. MyMark will incorporate a family option for users where they can create a portfolio

for each of their family members’. Each member will be asked the same general registration

questions as the individual consumer. The family members can then each download the app and

keep track of their individual health progress as well as their family members’. The beauty of the

family option is that it will generate one grocery list based on all of the family member’s

nutritional goals, dietary restrictions and product preferences. This will allow one family member

to shop for the whole family instead of each member shopping individually from their personal

grocery lists.

MyMark will input metrics into the app that will be analyzed and assessed through

various algorithms to create its personalized grocery store lists. Specific metrics will be made

clear to the MyMark user once they initially create a profile. Their profile will include sections

for their name, username, email address, age and geographic location. MyMark will also use

GPS location technology featured in most smart phones that will allow the user to share their

location so MyMark can adjust grocery lists depending on which grocery store is located nearest

to the user. This will be useful, for instance, if a user lives in San Diego but is visiting a family

member for a birthday party in Santa Barbara. Based on their location, the grocery list may be

slightly different in Santa Barbara because of different stores with different product brands.

The metrics within the app will focus on three primary measures: Health Statistics,

Personal Goals, and Lifestyle Preferences. Each measure will contain dropdown sub-measures

and open ended questions that will provide MyMark with enough information to create its

grocery list.

Marketing Definition, Potential and Demand

MyMark’s potential is exponential as a digital commodity within the wellness industry.

According to a Global Wellness Institute study published in 2014, global wellness was composed

of nearly a $3.5 trillion market (McGroarty, 2014). This space triples revenues of the

pharmaceutical industry, which outlays the importance of any market disrupters. MyMark has

the ability to contribute to two large sectors of the wellness industry which continue to

experience extreme growth: healthy eating/nutrition/weight loss and preventative/personalized

health. Since 2010, the healthy eating/nutrition/weight loss sector has seen a 108% increase to

$276.5 billion and the preventative/personalized health sector has seen a 78% increase to $243

billion (McGroarty, 2014).

In addition to the promising aspects within the wellness market, the market of in person

shoppers continues to grow. It is evident that grocery store and supermarket demand within the

population has steadily increased. Sonya Bells (2015) from the Kroger Co. has noted that nearly

40% of the domestic industry sales in the United States are from grocery stores. Grocery stores

and supermarkets account for 95% of the food and beverages sold in the United States (Bells,

2015).

Retail Food Store Sales

700
600
500
Dollar Billions

400
300
200
100
0
2009 2009 2009 2009 2009
Year

Food and beverage stores Grocery stores Supermarkets

FIGURE 2. Retail food store sales (Adapted from Bells, 2016).

Figure 2 above demonstrates the dominance of the grocery store market that MyMark

will actively embark in. In addition to creating a convenient and innovative solution to grocery

store shopping, MyMark has great potential to solidify itself as a tool for millions of Americans

to eat healthier. This in turn, has the ability to reduce the amount of chronic disease and reduce

healthcare spending on expensive medications and treatments used to keep the sickest people

alive.

In addition to the percentage of goods sold in grocery stores, the need for this mobile app

is further solidified through a research report based on 2014 data funded by The Hartman Group,

which “has been a recognized thought leader on demand-side trends in the food industry”

(Hartman Group, 2016, para. 1). The study titled Food Shopping in America: 2014 National

Syndicated Research by the Hartman Group and MSL Group found that grocery shoppers

experience challenges with grocery store shopping due to lack of time and budget depicted in the

figure below (Hartman Group, 2016).

FIGURE 3. But money and time constraints continue to weigh on today’s household
(Adapted from the Hartman Group, 2016).

Due to an increase in millennials moving out of their childhood homes and into

apartments and new living areas, there will be an increase in grocery shopping amongst young,

technologically savvy and health conscious individuals. MyMark will use ads to target the

millennial population by promoting its customization of the traditional grocery shopping list to

target health and wellness. The Hartman Group (2016) has published findings reporting the use

of technology among different generations of grocery store shoppers. The trends below suggest

10



that millennials use technology the most while shopping compared to other age groups. MyMark

would target this population heavily in hopes to stimulate health awareness for the future of the

United States population. All of these initiatives prove that MyMark will not simply be mass

marketing to the public. Through mobile marketing, MyMark will advertise to target groups and

strategically market its product to them through social media and digital channels (Shankar &

Balasubramanian, 2009).

FIGURE 4. Food shopping in America 2014 report (Adapted from the Hartman Group,
2016).

Competitor Analysis

Competitors in the market include established smart phone apps that are readily available.

An analysis of current apps when searching for “grocery list” in the Apple app store discovered

three prominent competitors which include but are not limited to Shopping List Free, List Ease,
11



and Grocery Pal.

Shopping List Free (Grocery List) by Hensoft is the most basic of the competitors. It

allows for a user to select the category of foods they want to buy and then synthesizes a list

based on those items (iTunes, 2016). It also enables users to enter a quantity amount of the

desired product. For example, Fruits and Vegetables > Bananas > 3 Bananas.

List Ease – Grocery List + Pantry by inMarket Media, LLC (n.d.) offers an app home

screen of three icons: Grocery List, Pantry Inventory, and Coupons. The grocery list allows for

bar code scanning so it can automatically detect an item when scanned. This may be a good idea

if one sees something at the store that they do not need at the moment but may want to buy it in

the future. They can scan the item and save it to a grocery list for the next time they visit that

particular store. This app also has a Pantry Inventory feature that allows for the user to tell the

app what is currently in their pantry and the amount of each product. This feature also contains a

barcode scanner so if something in the pantry is running low, users can simply scan the item and

automatically add it to their grocery list. The coupons section of this app is very limited

however. It offers coupons for different categories of foods but does not mention when the

coupons expire or what store they apply to.

Grocery Pal by Twicular, Inc. (2016) is the biggest competitor for MyMark. Although it

does not offer the barcode scanning function that List Ease does, it provides an intuitive coupons

section. The app allows for the user to enter their zip code or use the phone’s location to access

nearby grocery stores. Users can select any store that is listed to retrieve coupons and specials

listed by the individual stores.

While these three competing smart phone apps are viable resources to obtaining coupons

12



and creating a grocery list, they do not have the functional capability of MyMark. MyMark

differentiates itself from its competition by being a source of convenience for the consumer. The

“create profile” function on the MyMark app is far more robust and detailed as compared to List

Ease or Grocery Pal, which only require an email and a zip code. These current apps on the

market do not serve as guides to decision making and tailored nutritional shopping based on an

individual’s health. While they do offer coupons and bar code scanning technology, they do not

have the ability to make people’s lives healthier. MyMark factors in the entire lifestyle of the

user and synthesizes a grocery list based on the account profile created. There is no need to

spend time thinking about what products to add on grocery lists unless it is for an atypical

shopping need.

TABLE 1. Competitor Comparison

Shopping List Ease Grocery Pal MyMark

List Free
Profile Functionality ✓ ✓ ✓ ✓
Coupons X X ✓ ✓
GPS X X ✓ ✓
Recipe X X X ✓
Recommendations
Food favorites X X X ✓
Health data & allergy X X X ✓
input
Barcode scanning X ✓ ✓ ✓
SKU connectivity X X X ✓

Customer Analysis

MyMark is a software that will be embedded into an app for a demographic of users primarily

ages 16 and older. Anyone can use MyMark, but the recommended age of 16 was chosen

because that is the age that most young-adults can drive. Since the company is focused on

13



grocery stores, it is more suitable for users to have a means of getting to the grocery store if not

by walking or using public transpiration.

MyMark will aim to target the diverse dynamics of the consumer. Shoppers of grocery

stores or supermarkets can be members of any societal level of the population. The Journal of

Research in Marketing (Bawa & Ghosh,1999) conducted a study that analyzed household

grocery shopping behavior. It was determined that there exists a household shopping model

(Figure 5) that predicts the type of shopping that will be done by the consumer. This model is

imperative for the MyMark team to understand in order to ensure that the dynamics and social

aspects of grocery store visits are accounted for.

FIGURE 5. The household shopping model, McGill University (Adapted from Bawa &
Ghosh, 1999).

Historical research on the dynamics of grocery shopping has determined that “the relationship

between household characteristics and shopping behavior can be fairly complex: for some

14



households shopping may have a recreational aspect while for others it may compete directly

with wage-earning activity” (Bawa & Ghosh, 1999, p.153). This notion taps into the

meaningfulness of the shopping experience and the budget of the consumer. Perhaps a more

affluent family buys more snacks, desserts, seasonings, or condiments, while a family on a tight

budget sticks to staple commodities and what their family needs to eat to maintain financial

sustainability. In regards to consumer trends at grocery stores, Business Insider reports that the

landscape has drastically shifted because of four primary determinants: the multitude of shopping

channels, the implementation of generic branding, greater product curation, and the availability

of fresh produce (Peterson, 2014).

Consumers are shopping for food and beverages across multiple channels. Research has

shown that consumers do not simply purchase their desired produce at one grocer or

supermarket. On the contrary, Deloitte's 2013 American Pantry study has found that consumers

go to an average of five different types of stores to purchase the products they need for their

households (DeLoitte, 2014). This diversified shopping can be attributed to general economic

principles such as consistently shifting consumer preferences and simple supply and demand.

Also, immense competition created by the free market causes variability in pricing, quality,

brand recognition, and product availability. Therefore, consumers might go to their local

supermarket for their whole grains, dairy products, and sweets while purchasing their fruits,

vegetables, legumes, soy, and organic produce at a farmer’s market or a store that specializes in

fresh, organic produce.

Private, otherwise known as generic, labeling is gaining popularity. There is an

affordability aspect that explains shifting consumer shopping trends. Although brand recognition

15



can highly influence preferences, a lot of consumers are recognizing that generic brands are often

just as good. Private or generic labels are becoming more popular because they are simply more

affordable. Sales of private label products are predicted to grow 62% to $133 billion in 2016

from $83 billion in 2008, according to a Packaged Facts survey (Peterson, 2014). This large

increase in sales of private labels can be attributed to the recession causing shoppers to search for

affordable alternatives to their favorite brands. Consumers value product affordability and

studies have shown that 90% of shoppers believe that generic brands offer better or at least the

same fiscal deals than their counterparts and 80% of consumers believe that the generic brands

are better or just as good as the primary brands.

Shoppers want more product curation. With the endless amount of options to shop and the

various products out there, it is not uncommon for shoppers to feel overwhelmed and seek

product curation. Today, grocery shopping takes on many forms and has evolved into a process

that can be completed technologically or in person at a store. However, the technological aspect

of shopping is gaining popularity and many consumers are taking advantage of online grocery

shopping that offers a diverse array of products and assistance with shopping. According to

Packaged Facts, the average square footage of supermarkets in the United States has been

continuously decreasing since 2006, and is now about 46,000 square feet (Peterson, 2014). This

decrease in storage space signifies shrinkage of the popularity of in-person store shopping.

Online grocers, such as Door to Door Organics, are expanding their services to consumers by

offering tools to curate products that can recommend produce. These recommendations are based

on factors such as previous purchases and allergies. This digitalization of shopping makes

grocery shopping more convenient and efficient for consumers.

16



Fresh produce is a main driver for consumers in deciding where to shop. There has been an

ongoing trend that features the importance of consuming fresh produce on overall health and

wellness. Consumers highly consider the freshness factor of the products sold when choosing

where and how to shop. According to a Packaged Facts survey, “seventy-five percent of

consumers say the produce department is the most important, followed by fresh meat, poultry,

and seafood (60%); store brand products (36%); local farm foods/produce (35%); and the in-

store bakery (29%)” (Peterson, 2014, “Fresh Produce”). This growing requirement of fresh

produce is a large driver in consumer preferences.

The increasing diversity of shoppers causes new class of food preferences that entails

shopping at ethnic stores that are not necessarily the larger, well known grocers such as Ralphs

or Safeway. These stores are tailored specifically to a certain culture’s traditional produce that

typically can’t be found in the highly marketed grocery stores. According to the Hartman group’s

2016 U.S. grocery shopping trends report, about 7% of the consumers they interviewed (n =

2,061) frequently shopped at ethnic stores. Since this is a relatively small ratio compared to the

other grocer options, MyMark will not include these stores in their grocery list generations.

Although the ethnic food stores compromise a relatively sizeable market, the consumer shopping

trends do not support the inclusion of these stores into the generation process.

Overall, MyMark will function to improve individual and family health by creating

personalized grocery lists based on nutritional objectives, food preferences, dietary restrictions

and store penchants. MyMark will analyze consumer trends in grocery shopping in order to

establish its market share and generate lists based on consumer product and store preferences. It

will target consumer populations that are most frequently shopping with a digital tool and will

17



identify grocers that align with the shopping trends of these consumers. MyMark will also make

the app user friendly and accessible to all populations so that it can truly help improve global

health and nutrition.

FIGURE 6. Food shopping in America 2016 report (Adapted from the Hartman Group,
2016).
Marketing Objectives and Goals

MyMark’s mission is to provide a convenient, user friendly application that will foster

healthier living in every community across the United States. Its vision is to reduce chronic

disease and empower people through mindful eating in accordance with their own personalized

health status. MyMark’s goals align with its vision and mission. These milestones include

improving consumer nutrition, promoting outreach to all income quartiles, increasing quantity of

healthy home cooked meals, advocating for efficient grocery shopping and encouraging an

overall healthy lifestyle. MyMark aims to help consumers create nutritional home cooked meals

from products found in their local grocery stores within their price ranges.

18



Marketing Strategy

The MyMark brand will be recognized by its logo and by its name. Its logo will feature a

large vibrant green font that will associate its users with fresh and healthy eating. Its name will

hold true to the app’s user friendliness because it is easy to articulate. The term MyMark was

coined for “My Market” and will be thoroughly explained on the MyMark website and social

media pages. Once the app gains prominence amongst grocery store shoppers, more funding will

be raised in advertisements on the app with grocery store incentives in the form of discounts.

This revenue generated through advertisements will fund more robust levels of marketing in

which the MyMark logo can further be publicly displayed.

The logo will be incessantly shared online. MyMark will heavily market through the use

of Facebook, Twitter, Instagram, and Snapchat. All social media platform accounts will feature

a standard MyMark logo with its mission statement and an “about us” section in its description.

All of MyMark’s social media posts will be uniform, in hopes that it can relay the same

information about its mission and user friendly accessibility to all internet users.

The MyMark marketing strategy will include cooperation with grocery stores. This

partnership will include deals that permit app users to gain coupons at the grocery store when

using the app. At checkout, store employees will scan a barcode on the app that can generate

credits or coupons. Eventually Apple will include MyMark on their mandatory apps such as the

health, home, news and weather. Cooperation with prominent technology companies such as

YouTube and Facebook will also expose MyMark to the public eye.

MyMark will also team up with a health plan, starting with Kaiser Permanente, to

encourage healthy eating and wellness through the use of the app. Kaiser will give its patients

19



10% off of their premiums if they sign up with MyMark and use the app regularly. This discount

will incentivize wellness and improve user’s overall health and quality of life. This partnership

will be a great marketing opportunity for MyMark because Kaiser being a large Southern

California health insurer can expose MyMark to the public. Kaiser and other health insurers in

the future will want to partner with MyMark because the more patients improve their health

through the use of MyMark, the more money the insurers will save in the long run.

20



CHAPTER 2

FEASIBILITY ANALYSIS

Pricing Management

MyMark’s cost structure will begin at the level of app development. Anything before the

stage of app development will be grassroots funded in San Diego California, since the app will

not have much media exposure in the beginning and will need as much help from the San Diego

community as possible to get on their feet. They will create this grass roots movement by

speaking with local San Diegans in populated areas and explaining the nutritional and health

benefits of their app. They will explain that they are a startup and that their goal is to improve the

overall health of Americans by creating personalized grocery lists. They will ask for small

donations from the public as well as for likes on their Facebok page, Instagram and Twitter to

spread the word. This will generate some funding that will go to app development, and it will

increase MyMark’s media presence. All the work on the app’s initial interface, customer base, or

marketing strategy will be done by a team of three founding individuals who will own MyMark’s

rights and its trademark. The three individuals will be MyMark’s only representative employees

once the app eventually generates revenue through advertisements. When profits are observed,

the MyMark team of three will keep 25% of the earnings initially, and reinvest the remaining

75% into more complex software infrastructure. Of MyMark’s team of three, one team member

will focus on finances and contracting, one will be an expert in nutrition and food science, and

the other individual will be focused on product development and retail grocer trends. These

three individuals will work together to gain startup funding through online fundraising accounts,

charitable donations, and personal assets. They will also seek to establish a contract with a San

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Diego grocery store so that stock keeping units (SKUs) and inventory can be implemented into

the software for app users. This initial grocery store will serve as a pilot site for MyMark’s

preliminary rollout. When the company continues to grow, MyMark will establish contracts with

more grocers.

All funds gained prior to software development will be used for the team to pay for

outsourcing MyMark’s ideas to a more robust and technologically focused organization. This

outsourcing will be done in pursuit of leveraging usability to the entire United States population

of iPhone users in the long run. All communication between founders in regards to funding and

outside contracting will exist in “public think-tank” spaces such as coffee shops, restaurants,

cafes, or houses. This is where app development companies will be thoroughly researched to

identify which companies will be able to develop the software that MyMark needs for successful

deployment. Once the app is ready for its development stage, the founding team will have

concluded their search for a reputable app development panel. At this point, the interface idea

would have been pitched to propose an initial contract.

Development costs can range anywhere between $50-200 per hour or more depending on the

complexity of the mobile app and the software required. The team would plan to raise enough

capital to cover these costs (Craigmile, 2015). MyMark’s core interface uses drop down menus

and its development will progress to more intuitive features once a revenue stream is achieved.

The most important feature of preliminary development will require algorithms that connect the

personal health statistics and meal preferences of users with products available in the grocery

store to formulate the grocery store list. With knowledge of the market and potential users,

MyMark’s team will be able to deploy the app using an Apple account and paying $99 a month.

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MyMark will need its team to work full-time in order to successfully launch their app. MyMark

will initially sustain its full-time employee team through start-up costs. Then, as it continues to

grow and make profits, it will reinvest its money and pay its employees with the revenue earned

from these investments.

Distribution Management

Distribution of the MyMark mobile app to its client base will include numerous measures

involving key stakeholders necessary for product development. These steps will involve meeting

with grocery store management, keeping up to date with the app development company for

potential glitches and software updates and surveying the consumer population through surveys

within the app on how to improve the interface. Each of these distribution channels is key to

ensuring that the mobile app has financial success by having as many users as possible. A

growing volume of MyMark users will ascertain that the app has potential to increase customer

loyalty and sales for the grocery stores it works with.

MyMark’s team members will commence meetings with grocery store general managers

to discuss marketing initiatives internally inside the grocery stores and externally in grocery store

newspapers and digital web ads. They will also formulate processes of how incentives can be

provided at store checkouts for customers to purchase goods listed on their MyMark formulated

grocery list. This will allow for co-marketing of the grocer and MyMark, further incentivizing

consumers to purchase healthy food with the grocers it collaborates with.

The physical app will be regularly updated with additions or deletions to grocery store

inventory SKUs by the team member in charge of digitalization. Also, to ensure constant

improvement, consumers will be able to email the MyMark team with any comments, questions

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and/or concerns. A survey will also be implemented within the app regarding user friendliness.

Any input will be reviewed by the MyMark team through quantitative and qualitative coding and

data analysis. Results will be discussed with the app development company accordingly to

improve customer service and access.

Since MyMark’s core construct is entirely technologically based, there will be little need

for manufacturing, warehousing, or supply chain management. The entire platform of the

organization will be digital and there will be no need for a rented public space to do manual work

or store inventory. All communication will be distributed through email and can be done at home

or on the go through the team’s personal devices.

Communication Management

Formal communication is crucial for the MyMark mobile app to deploy smoothly. When

the app is released on Apple’s app store, the MyMark team must ensure that its users can easily

use the app without complication. The composition of all necessary information will be

distributed in the form of Excel data spread sheets containing statistical data values, tables, and

graphs showing progress and causal relationships. This information will be received from district

sales managers of the stores contracted with. Qualitative data will be presented in the form of

scientific reports with thorough discussion of findings and useful recommendations that will

cultivate further strategic initiatives from the team. Each report will be meticulously analyzed by

the team member assigned to the report. Each MyMark founder is in charge of receiving their

own information flow and will report their findings to the financial representative on the team.

This process will help the entire team focus expansion of user growth and marketing outreach.

Meetings will take place in coffee shops, personal homes, rented offices, or other public places.

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Skype and phone meetings will also be viable options for communication.

TABLE 2. Management Control

The first partner will be in charge of business transactions and will serve as the company’s

financial representative. They will manage the app’s financial account and make sure that

expenses do not exceed profits. This is the partner that will be constantly analyzing the market

and keeping track of the competition. They will also be responsible for forecasting grocery store

sales and organizing company investments. Lastly, this partner will be in charge of marketing

logistics and meeting with appropriate consultants to discuss marketing strategies and expenses.

The partner will have an MBA with an emphasis on finance and marketing from a nationally

recognized university. They will have prior work experience as a financial analyst and will also

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have experience with project management. They will have substantial knowledge of financial

and managerial accounting principles and will be technology savvy. They will also understand

the psychological principles of marketing that will allow the team to successfully advertise the

app. This person will also have a good credit score and stable spending patterns in their personal

life to ensure responsible expenditure for the app.

The second partner will be responsible for nutritional analysis using statistical techniques

and market research. This is the partner that will create the healthy eating grocery lists for each

grocer based on keen analysis of nutritional value of food sold. This partner will heavily research

the health benefits of groceries being sold in the market and create reports on the final foods they

choose to present to their team. They will also keep track of nutritional trends that they can use

as a basis for marketing. The partner will look at unbiased studies that are statistically significant

with agreeable context, internal, and external validities. They will run their own statistical

analysis in order to make decisions on which food to advertise, in order to ensure that the study

presents reliable results. This partner will have an MS in Applied Nutrition and will also have a

BS in nutrition and statistics. This partner will serve as the wellness and nutrition researcher of

the group so they will need to have advanced research skills. They will also need to master

multiple regression analysis and know how to use statistical programs such as R. They will also

need to be comfortable using geocoding software such as PickPoint. They will need to be well

informed in nutritional studies and keep up with current research and market trends.

The third partner will be the IT specialist who will be in charge of app development and

maintenance. This partner will be in charge of the logistics of the app and make the vision come

alive. They will create the app and consistently monitor its internal operations. They will be

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responsible for fixing and further preventing any glitches. They will also track competitor apps

to ensure that MyMark is up to date on its presentation. They will make the app as user friendly

as possible and will constantly brainstorm ideas to improve the product. This person will also

keep track of the software updates of the devices on which the app can be downloaded and will

make necessary changes to the product software so it operates smoothly while being backward

compatible (Khalid, Shihab, Nagappan, & Hassan, 2015). This person will have an MS in

Computer Science with prior experience on working with applications. They must also have

exceptional technological skills on all devices and platforms and have advanced coding

experience. This partner will also have robust problem solving skills and will have prior

experience working with diverse teams including people from R&D and

TABLE 3. SWOT Analysis

Strengths Weaknesses
-No mobile app has connected personal health statistics with -Dara flow consists of sample statistics that
grocery store inventory and food recommendations may not be statistically significant
-Not many similar grocery or nutrition apps available -Lack of formal workspace and centralized
-Strong investment potential communication
-Strong potential for expansion -Constant need for more employees to
-Organized and efficient product spreadsheets of inventory support expansion
-Potential to generate funds from grocery stores through -Immense targeting of one population
bilateral marketing (millennials) that can result in high
-Patent will protect from plagiarism opportunity costs
-Endless marketing opportunities due to joint interests from
consumers, grocery stores and health experts
Opportunities Threats
-Possibility of being a standard app of iPhone or android such -Similar apps will be produced after launch
as weather, maps, notes etc. -Profit hungry grocery stores
-Can make healthy eating more affordable and accessible -Profit seeking companies
-Reduction of fast food consumption
-Reduction of chronic disease and diabetes rates
-Promotion of home cooking
-Potential for global expansion

MyMark has several strengths that will allow it to transform user’s eating habits and help

make grocery shopping more efficient. MyMark’s product is unique and there is currently no

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mobile app that has connected personal health statistics with grocery store inventory generated

lists or food recommendations. Not many similar grocery or nutrition apps are available, making

MyMark a leading competitor. MyMark also has strong investment potential because of

numerous expansion opportunities with grocers, nutrition establishments and health enterprises.

The company can also ensure organized grocer inventory updates through the founding team’s

product spreadsheets which will constantly be updated through grocery store company because

of their macro template formats. MyMark has the potential to generate funds from grocery stores

through bilateral marketing and can be protected by patent, which will prevent other innovators

from developing the exact same app. Lastly, marketing opportunities are endless because of joint

interests from consumers, grocery stores, and health experts. These strengths will help MyMark

thrive and make a difference in the health and wellness of communities worldwide.

Although MyMark has endless potential for success, it also exhibits several weaknesses

that must be addressed. First, its data flow consists largely of sample statistical data that may or

may not be representative of the whole population. However, if the sample is large enough, the

Central Limit Theorem allows for the sample to be a substantial representation of the population.

Another drawback is that MyMark’s team lacks a formal work space and their centralized

communication can cause issues such as limited confidentiality and the potential inability to hire

more team members in a timely manner. The company must hire more people soon for

substantial outreach and expansion. It is unrealistic for three people to handle the large amount of

data associated with each grocery store and the vast responsibilities that are necessary to

efficiently manage the app when it grows. Lastly, the fact that MyMark primarily targets

Millennials could cause them to miss opportunities to expand their influence to different

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populations who may not be as nutritionally aware as Millennials.

MyMark’s foundation presents many opportunities for the improvement of societal health

and wellness. There is the possibility of being a standard app on iPhones such as weather, maps,

notes and so on. The app can improve nutrition and can help make healthy eating more

affordable and accessible to the public. It can reduce the rates of fast food consumption, chronic

disease, and diabetes (Glanz, Bader, & Iyer, 2012). It will promote healthy, home cooking that

can essentially save the public money and improve the economy. It also shows high potential for

global expansion and can eventually help alleviate other countries’ nutritional and financial

needs

MyMark also faces several threats to its success that can slow down its expansion.

Naturally, similar apps will be produced after launch. There is also the possibility that grocery

stores will attempt to influence the app to market their most expensive products to increase

profits. This can potentially undermine the entire goal of the app to provide healthy and

affordable grocery lists. Lastly, there exists the threat of profit seeking companies providing

fraudulent data and/or making deceitful claims of nutritional benefit of products

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CHAPTER 3

LEGAL AND REGULATORY ISSUES

Introduction and Consumer Focus

The legal and ethical aspects of app development are essential in today’s digital age.

With constant growth of digital and technological mediums, security, privacy, trust and risk are

crucial components to ensuring a user’s comfort and confidence when using apps. MyMark will

be a repository of data that will take every action and measure to always keep its users’

information private. Data will be secured and necessary legal bindings will ensure that all

information received will be used for the improvement of health and nutrition for all MyMark

users. MyMark will establish itself as a renowned mobile application that has the ability to shift

the consumer behavior in order to cultivate healthy lifestyles and mitigate chronic disease

incidence. The app itself, as discussed in previous sections, will collect personal health

information and use that information in the form of data to cultivate the best possible grocery

store options while also catering to personal preferences. In order for this to be feasible,

MyMark must create strong brand identity and loyalty with its end users. This loyalty will be

created through brand trust that will be enhanced by extreme protection of all personal health

information. The following federal laws must be taken into account during the app building

process as well as throughout initial piloting and rollouts: Health Insurance Portability and

Accountability Act 1996, Public Law 104-191 (HIPAA) and Health Information Technology and

Clinical Health Act (HITECH).

Although MyMark does not deal with direct patient contact nor does it employ clinical

providers of any sort, it does require its users to enter personal information about themselves.

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This information is formally known as personal health information. According to Search Health

IT, “Personal health information (PHI), also referred to as protected health information,

generally refers to demographic information, medical history, test and laboratory results,

insurance information and other data that a healthcare professional collects to identify an

individual and determine appropriate care” (Rouse, 2015). MyMark will not be dealing with any

billing, laboratory tests, or insurance information. It will however, be dealing with medical

history and demographic information in order to synthesize an appropriate grocery list for users.

HIPPA is known as the cornerstone of health information security in the United States.

The two primary rules within HIPPA cultivate individual privacy and security. The privacy rule

states that a person’s personal health information can be used or disclosed only as explicitly

permitted by the law or as authorized by that individual. This rule pertains to who has access to

what information regarding confidential information regarding health. The security rule

encompasses more of how that information may be disclosed. It “defines administrative,

physical, and technical safeguards that a HIPAA-covered healthcare organization must

implement to protect the confidentiality, integrity, and availability of health information” (Health

and Human Services, 2013). All HIPAA privacy regulations must be followed by the MyMark

team and any other third party that has access to the mobile application’s internal software.

Privacy regulations include standards for electronic transmission, national identifiers, privacy,

and security. These regulations also pertain to the use and disclosure of protected health

information. There will be no healthcare transactions within MyMark, therefore the business

will not need to concern itself with these regulations.

All business associates of MyMark will need to abide by necessary regulations in order to

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ensure the app’s complete security. Health Administration Press defines business associates as

“entities that are not members of the workforce, but provide a service or perform a task on behalf

of a covered entity” (Health and Human Services, 2013). This definition induces that all

contracted grocery stores serving MyMark’s user population will have access to personal health

information. A business associate agreement must be created with each of these companies,

ensuring that a proper contract is created between MyMark’s covered entities and the stores

themselves. In order for the contract between MyMark and the business associates to be

approved by law, an offer, a valid acceptance and consideration all must be present. According

to UCSF, PHI can be described by the 18 different ways including such things as geographic

subdivisions smaller than a state, telephone numbers, and medical record numbers.

Due to an increased use of electronic health records, personal health records, and mobile

health applications, a federal law was passed in 2009 known as the American Recovery and

Reinvestment Act of 2009 (Health and Human Services, 2013). A sub measure of this law,

known as HITECH, was created to ensure that HIPAA was present even in the technological

space. HIPAA’s enforcement regulations were adjusted through this act as shown below:

Section 13410(d) of the HITECH Act, which became effective on February 18, 2009, revised

section 1176(a) of the Social Security Act (the Act) by establishing policies such as four

categories of violations that reflect increasing levels of culpability, four corresponding tiers of

penalty amounts that significantly increase the minimum penalty amount for each violation, and

a maximum penalty amount of $1.5 million for all violations of an identical provision. It also

amended section 1176(b) of the Act by striking the previous bar on the imposition of penalties if

the covered entity did not know and with the exercise of reasonable diligence would not have

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known of the violation (such violations are now punishable under the lowest tier of penalties)

and providing a prohibition on the imposition of penalties for any violation that is corrected

within a 30-day time period, as long as the violation was not due to willful neglect.

(U.S. Department of Health and Human Services, 2013).

Human Resources and Employee Laws

Having LLC (Limited Liability Corporation) status ensures that the owners maintain

flexible schedules and are able to adjust to market pressures and operational successes and/or

pitfalls. MyMark will initially be solely represented by these three members who make up the

entirety of the company’s ownership. The three members will work together in their specialized

areas to develop, market, contract, and eventually launch the app into the iOS App Store within

all Apple technologies. The three MyMark owners will operate the business as a LLC, however

they will be taxed as a partnership because their team consists of more than one member

(Nicholson, n.d.). They will be neither salaried nor paid hourly due to their taxation status as a

partnership. Each partner will receive a share of the annual income or deduction for losses

generated by the MyMark partnership, but not a salary. The money distributed to each member

in accordance with the operating agreement is reported on each member’s individual tax returns.

This will be reported as either income from business itself on IRS Schedule C or through

supplemental income on IRS Schedule E (Nicholson, n.d.). It is important to note that all of

MyMark partners will have stable, supplemental, salaried jobs that will provide them with the

disposable income to invest in the development of the mobile app company. There will exist no

subordinate employees until the app registers a substantial number of users for the ownership to

feel the need to hire on more staff. MyMark must first generate the popularity within the app

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community. Its heavy marketing on social media will eventually breed a greater number of

potential users and loyal clients that can use MyMark as a tool to shop at their favorite grocery

stores or supermarkets.

Organizational Incorporation and Legal Framework

MyMark’s organizational structure will consist of three primary partners that will form a

Limited Liability Corporation (LLC). MyMark will operate as an individual legal entity as a

limited liability corporation. This gives its partners a safeguard in terms of being liable and

offers both the benefits that a partnership or corporation would have. From the LLC perspective,

partners cannot be personally liable for the pitfalls, debts, or financial misfortunes of the

business. Instead, only the business of MyMark itself will remain liable. The MyMark LLC will

establish through Legal Zoom, a legal documentation service that will provide the business with

appropriate legal and technical arrangements. The LegalZoom package will include a Federal

Tax ID that will create a more efficient tax filing process that can be flexible to all members of

the team. It will also include an Employer Identification Number (EIN) that will be used by the

IRS to identify MyMark when the business files its taxes. All initial costs ($360 plus California

filing fees) for the LLC accreditation will come from the members’ personal assets and any

fundraising through close friends or third parties who may have interest in marketing MyMark.

Transparency of Privacy Policies

MyMark will ensure that its users are aware of its privacy policies and only input

information that they are comfortable sharing. MyMark will make its privacy policy clear and

transparent, so its users can understand what is being asked of them and what rights MyMark has

in accordance with its customers. According to a study on the availability and quality of mobile

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health app privacy policies, many apps do not expose their privacy policies to their users or

present policies that are difficult to understand and even to obtain

(Sunyaev,Dehling,Taylor,Mandl,2014). MyMark wants to make sure that its users can easily

access it privacy policy and that its content is clear and concise. Therefore, it will display its

policy and rights before users finish the registration process so that they are aware of the apps

legal obligations and their legal rights.

Product Recall Liability

When giving food recommendations to the public based on grocery store and super

market inventory, MyMark faces potential liability from product recall. If MyMark recommends

a product to its users that is unexpectedly recalled and a user gets sick after consuming this

product, MyMark can be liable for the consumer’s inconvenience and medical expenses.

MyMark will therefore be responsible for general damages which include pain and suffering as

well as special damages which include expenses and loss of income. In this case MyMark will

need to consult with an attorney that specializes in the assumption of risk.

In addition, if a grocer is negligent and fails to recall a faulty product that MyMark

recommends, both companies will be liable for any complications from this damaged good

(Packman, 2012). Since MyMark is in a partnership with the grocer, both MyMark and the

Grocer must compensate for damages due to the principles of joint liability. It is more beneficial

for a grocer to recall the item than to hide its damage from the public (Ben-Shahar, 2005).

However, product liability law punishes companies for recalled products to the extent that they

do not want to recall a product when necessary (Ben-Shahar, 2005). MyMark must design their

liability to ensure that they are recommending safe products and are protected against grocer’s

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potential risky business decisions. They must ensure that they do not get punished for grocers not

recalling items because of their high cost or high popularity (Ben-Shahar, 2005). MyMark must

design legal agreement that prevents or decreases the amount of customers that will sue due to a

recall. In addition, the app must include literature in their contract about the possibility of

unexpected recalls and clearly state that they are not liable for repercussions due to those recalls.

Miscellaneous Laws and Regulations

The MyMark team will register the MyMark logo and name as a registered trademark

through the U.S. Patent and Trademark Office's Web site, www.uspto.gov. This will guarantee

market control by ensuring that authentic brand originality is kept to MyMark only. It’s design

and logo will be featured on the app icon that will be available in Apple’s app store. Its logo will

also be featured on letterhead paper necessary for any formal communication or contract

negotiations with potential business associates. MyMark’s logo will also be featured as an

embedded icon within the email signature of each one of the four team members when using

their MyMark affiliated email.

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CHAPTER 4

FINANCIAL ANALYSIS

Assumptions for Expenses

MyMark LLC will assume its expenses through three levels of finance. These levels

include early stage financing, acquisition financing, and later stage financing. It is important to

note that the levels of financing have large implications on whether or not the app has undergone

its soft or hard launch. With a soft launch, the app will gain notoriety through its initial user base

of friends, family, and other vested partners who are aware of the app’s deployment. A harder,

more market-focused launch may take place weeks or even months after the initial launch. This

launch will likely occur at a mobile technology convention, which will require a purchase of

booth space for a 1-2-day period. This launch will carry heavier financial burden, as there will

be more capital at stake through a variety of channels and predetermined contract negotiations

with the pilot based grocer, Ralphs. Initial startup financing will transpire in the form of seed

funding through charitable donations and personal assets on behalf of the team of the three

MyMark partners. Seed funding will cover business registration expenses as well as

miscellaneous expenses to further enable the team to strategize a marketing campaign. Business

registration will come through LLC and federal tax ID filing by a startup package purchased on

Legal Zoom. Miscellaneous marketing finances will include physical handouts which will be in

the form of business cards, flyers, banners, pencils, pens, sunglasses, notepads, coasters, and

similar items that will advertise the MyMark brand in the local community of the pilot based

grocery store. Other marketing tactics will come at no cost due MyMark’s presence within all

major social media platforms. All miscellaneous funding (business registration, convention

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space, physical marketing) must be covered promptly in order to prepare for prompt presentation

of the app to app development companies. In addition to the miscellaneous costs in early stage

financing, acquisition financing must transpire with a contract with the Ralph's corporate

inventory team that will allow MyMark access to the grocer’s SKU database. A contract will also

be made with the app developing company that will be ongoing. This will likely be a financial

burden until the app begins to see a profit margin. In addition to development costs, an Apple

“organization” membership will be created to launch MyMark onto the Apple iOS platform.

MyMark will have zero rent or utility expenses because no brick and mortar locations will be

necessary for business operations. There will be no need for unionized employee contracts

because the only employees of MyMark are the three partners. Generated revenues will be split

equally amongst the four, and a portion will go to Apple and the app development company

under contract. MyMark will also need to contract with a Marketing Research Firm in order to

reliably identify trends in consumer preferences. One example of a contracted firm is the Nielsen

marketing cloud. This fully integrated platform gives companies built-in analytics capable of

bridging the gaps between planning, marketing, and buying (Nielsen, 2017). Mymark would

subsequently gather marketing trend data by geographic location, which the marketing firm

could provide further assistance. The Mymark team would ultimately need access to a marketing

database that the marketing research would provide them with. The costs to the marketing

research firm would be initial as well as ongoing expenses for MyMark.

Annual Expenses

The number of annual expenses is far fewer than the other purchases listed. Annual

expenses will include the $99/year cost to Apple in order for MyMark to be available on the

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Apple store via the iOS platform. This is an essential expense considering that the App store will

be MyMark’s main selling hub. It will also be important to pay apple promptly and in full

amount every year in order to keep good relations in case of a future expansion opportunity.

Another important annual expense for MyMark will be the implementation of benefits such as

health insurance for single employees as well as those who will need family plans, life insurance

and dental insurance assuming that they will continue to add more employees annually as they

continue to grow, until they reach a capacity they are satisfied with. The average cost of life

insurance per employee is about $150 (Richards, 2010 ). Additionally, the average cost of health

insurance for a single employee is approximately $3,000 and around $7,000 for an employee

needing a family plan (Richards, 2010 ). Subsequently, the average cost of dental insurance for a

single employee would be about $3,500 (Richards, 2010 ). MyMark will allocate approximately

$31,950 for its three employee's benefits, which includes family plan health insurance, single life

insurance and single dental insurance. MyMark will also need an annual budget for bonuses paid

out for improved efficiency and exceptional work measured by reaching and going beyond

milestones. MyMark will start by allocating $6,000 a year for bonuses for their three employees

and expand that number as the company grows and increases its revenue. Bonuses will be shared

equally amongst the three employees at first to avoid management issues. Then, as the company

expands, will be distributed to employees based on productivity as the initial team of three

moves up in management of the app and hires more employees.

Monthly Expenses

Monthly expenses will include maintenance and repairs, payments to back end

cybersecurity vendors, a monthly hosting fee for the website, tech convention fees, an extensive

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marketing budge, a legal retainer cost, employee wages and any other additional monthly

expenses. Approximately $100 per month will be allocated to maintenance and repairs in case of

emergency repair and/or required maintenance of app and website. This maintenance will be

executed by the tech support division of the app development consultants hired. A back end

cybersecurity vendor will cost around $50 per month (Yarmosh, 2015). This is an essential

expense because weak cybersecurity could risk perpetual disturbance of the app. MyMark should

also have a reputation as a safe app protected from hacking so its users feel comfortable using it

on their devices and inputting their personal information in the app. There will also be a required

hosting fee for the website that will cost about $15 per month (Yarmosh, 2015). This hosting fee

will ensure that MyMark has a lasting presence on the web and that it will nationally expand its

services. MyMark will need a substantial marketing budget in order to adequately advertise and

to promptly expand. Approximately $210 a month will be allocated to marketing expenditures

including video advertisements on YouTube, Pandora, and Spotify, pop up ads on websites, and

ads on other various apps available on several devices. Marketing will also consist of blog posts

written by the team, which will promote the app on various forms of social media such as

Facebook, Instagram, Twitter, and Tumblr. MyMark will also need to allocate about $60 per

month on legal retainer costs for contracting with other firms and other legal expenditures such

as product recall liability contracts. The MyMark team will need to earn wages and benefits from

this app, especially since they work on it full-time. They will allocate about $12,500 a month for

total monthly employee wages totaling about $50,000 a year for each of the three team members.

Lastly, about $350 a month will be spent on additional expenses such as supplementary

maintenance, website upgrades, added marketing opportunities, and unexpected additional

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maintenance or repair.

Finances Needed/ Sales and Revenue

MyMark’s revenue will be equally allocated between the three partners in the team.

Revenues are expected to increase about 1% every year in the first three years and then revenue

growth is expected to escalate as the app development advances further into later stage

marketing. A significant revenue stream will not be observed until MyMark’s user base hits

10,000 users. Once 10,000 consumers are using the free app, the team of three partners will have

come to consensus to make the app for sale on Apple’s app store. The price will start at 99 cents

and will go up or down according to market demand. This price point will be made with the

knowledge that Apple will take 30% of the profits gained (Yarmosh, 2015). In addition to this

revenue, MyMark will begin to see advertisements on its app. Applications are always a desired

advertising hub for marketers. (Bellman et al 2011). Advertisements will generate a very strong

revenue stream as companies compete for ad space on MyMark (Bellman et al, 2011). Several

products that serve as healthy alternatives to popular food can advertise their products on

MyMark. Leveraging these companies will be a great revenue generating for MyMark as well as

a great marketing opportunity for these products. For example, MyMark can establish a

partnership with products such as Kashi and allow Kashi to advertise on its app for revenue.

MyMark will charge these companies a starting fee of $1,050 to advertise on its app for a month

and continue to charge $650 a month for the rest of the year for the company to advertise.

MyMark will also give is users free updates when the team creates upgraded versions of the app.

These updates will endorse customer loyalty and keep MyMark on track with phone, tablet and

computer updates as well as with the fast paced digital advancement in today’s day and age.

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Conclusion

MyMark is an innovative app that can help improve the health and wellness of the public

through its highly nutritional grocery lists. Health primes such as MyMark’s food

recommendations, can help reduce unhealthy product purchases such as snacks high in sugar or

carbs, especially amongst overweight customers (Papies et al, 2014). This app has extremely

high potential for growth and can partner with several grocers, super markets, health

organizations, and healthy food producers to promote healthy eating that is affordable and

accessible. MyMark will use these partnerships to make personalized grocery lists for its users

based on their personally input health metrics and their nutritional goals. These lists will be

convergent with store inventory, allowing users to know exactly what is available and what they

need. After immense analysis of consumer shopping habits, nutritional research, and digital

trends MyMark will be able to help a diverse array of consumers reach their health goals and

improve their overall lifestyles.

42



APPENDICES

43



APPENDIX A

MASTER CONTROL

44



Master Control

Financing Shortfall -$478,100.00

Percentage Debt Financing 100%
Percentage Equity Financing 0%
Amount Borrowed $200,000.00
Percentage of Company Sold to Investors 0.00%
Founder Ownership 100.00%
Amount Due To Shareholders $0.00
Number of Payment Periods 60
Actual Monthly Interest Rate 0.63%
Total Cash Value of Loan $240,455.38
Break Even Point Analysis
Monthly Rent $0.00 0.00%
Monthly Utility Costs $0.00 0.00%
Monthly Maintenance and Repair Costs $50.00 0.29%
Monthly Insurance Costs $0.00 0.00%
Average Monthly Wages $12,500.00 73.07%
Monthly Marketing Budget $200.00 1.17%
Additional Monthly Expenses $350.00 2.05%
Monthly Debt Servicing Cost $4,007.59 23.43%
$17,107.59 100%
Sales Margin 90.00%
Needed Revenue $19,008.43
Company Valuation
Total Estimated Market Size $1,000,000.00
Percentage of Market to be Captured 3%
Years to Exit 5
Compareable P/E 11
Desired IRR 40%
Desired Equity Investment $0.00
Currently Issued Shares 0
Capitalization Rate 18%

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APPENDIX B

ANSWERS

46



ANSWERS

47



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