Business Plan: Cazo Nutrition Application for High School Tournaments

This business plan outlines the concept for Cazo, a nutrition application targeting high school basketball teams in Detroit. It begins with an executive summary highlighting the market opportunity and the app's core functionality. Market research analyzes the basketball and nutrition industries, identifying the target market as high school athletes aged 14-18. The plan addresses competitive advantages, marketing strategies, and sales projections, estimating a 30% annual growth rate. The proposed management structure details the roles within the sole proprietorship. The business model canvas is presented, and financial projections include a sales forecast for the first year. The plan also addresses potential threats and opportunities, such as competition and changing consumer behavior. The application aims to provide tailored nutrition programs, delivery services, and expert advice, with advertising packages for sponsors. The mission extends beyond profit, aiming to build a solid physical foundation for athletes, preparing them for regional tournaments and beyond. The business plan highlights the company’s competitive pricing strategy and its focus on the underserved Detroit market.

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BUSINESS PLAN
NUTRITION APPLICATION FOR HIGH SCHOOL
TOURNAMENTS

Table of Contents
EXECUTIVE SUMMARY.............................................................................2
MARKET RESEARCH.................................................................................3
The Basketball Industry.........................................................................................3
The Nutrition Market............................................................................................3
The Target Market...............................................................................................3
Threat & Opportunity...........................................................................................4
PROPOSED MANAGEMENT AND PRODUCTION STRUCTURE SECTION................5
Management Structure..........................................................................................5
Nutrition Program Process.....................................................................................6
BUSINESS MODEL CANVAS........................................................................7
PROJECTED INCOME & EXPENDITURE SECTION...........................................8
SALES FORECAST.................................................................................... 9
REFERENCES........................................................................................10
APPENDICES.........................................................................................11
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Business Plan
Nutrition Application for High School Basketball Tournaments

EXECUTIVE SUMMARY
Sport has wide advantages such as boosting individual and community development, reducing
the social crime rate together with the burden of ill health on society. Along with the continuous
progress of the economy and society, the demand for sports activities is increasing. Thus, sport
becomes a promising industry.
In the USA, basketball is one of the most favored sports with bringing millions USA in revenue
for businesses. Detroit is the seat of Wayne County, located in the southwestern of Michigan in
the US. Compared to other regions in the US, even though basketball activities are still popular,
in Detroit the issue of nutrition for athletes, especially in high schools, is not yet focused on. This
will greatly affect the physical foundation as well as the performance of the athletes in
tournaments. Therefore, the business aims to provide a nutrition application – Cazo that can
easily be installed on phones for basketball tournaments in Detroit.
The primary market in the early stage was high school basketball teams, from 14-18 years old.
The application will bring a variety of nutrition programs to suit the health condition and budget
of each team/ athlete, along with the delivery service. Furthermore, customers might receive
advice about their diet, how to improve health status, or fitness improvement tips from the
company’s nutritionists. The price of services will depend on the meal frequency, the type of
program, and other specific requirements of customer. Last but not least, Cazo also offers
advertising packages for basketball sponsors. The business’s mission, besides profit-taking, is to
create a solid physical foundation that maximizes the athletes' abilities to prepare for regional
tournaments, and in the future, for college tournaments as well as the NBA.
The nutrition business is a very competitive market in the US with large companies that have
strong financial resources. Thus, the firm applies a competitive advantages price strategy as the
main advantage, focusing on the market gap in Detroit city, which does not have too many
competitors yet. In terms of marketing and sales strategies, the firm will advertise on social
media platforms as well as approach high school/basketball tournaments so that athletes can
experience the menu and feedback so as to improve the business’s strategy. Moreover, the
company run might many other promotion campaigns such as discounts, coupons to raise brand
awareness.
Cazo consists of 20 employees in all departments. In addition, based on the size of the target
market and defined market area, the sale projections for the first year are $252,890. Cazo has
projected a growth rate of 30% per year for the first three years. However, the sales forecast can
be affected due to the COVID 19 pandemic or another unprecedented situation.
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MARKET RESEARCH
The Basketball Industry
In the past decades, the sports market size is experiencing dramatic growth, become a worldwide
industry with unprecedented levels of revenue. In 2020, the market declined from $ 458.8 billion
in 2019 to $ 388.3 billion in 2020 at a rate of - 15.4% (Global Sports Market Opportunities and
Strategies, 2020). However, the COVID-19 pandemic leads to the decline of revenue when
lockdown and social distancing happened across countries. However, it still promises to be one
of the most important sectors of the world's economic activity in 2021.
Besides, according to research by Statista, North America was the largest region in the global
sports market, accounting for nearly 35% of the total in 2020 (Statista.com) (Appendix 1). In
most countries, football is extremely popular with the name “King of Sport”. Therefore, many
people might think there is the same situation in America. However, an interesting fact shows
that basketball is the sport with the largest number of people with nearly 25 million people,
approximately double the number of football players. In the media and through sports programs
on television, the audience has already familiar with one of the oldest basketball tournaments in
America - the NBA - the professional basketball tournament with the participation of the world's
top players. Some major basketball teams in the current NBA must include the Miami Heat, San
Antonio Spurs, or the Oklahoma City Thunders ... Today, at major tournaments like the
Olympics or the Olympics, American basketball still retains its NO.1 position. Overall,
basketball is ranked among the top crucial sectors in the US sports industry.
Due to the COVID 19, many basketball tournaments have taken place with no or limited
audiences. This might affect the revenues of the football teams as well as investors. However,
financially, the NBA collected most of its revenue for the 2019-20 season pre-pandemic (Sport
2021 outlook, 2020). This revenue usually comes from pre-pandemic matches, sponsors, virtual
signage together with advertising.
The Nutrition Market
The global sports nutrition market size was valued at USD 15.6 billion in 2019 and is expected to
grow at 8.9% from 2020 to 2027 (Sports Nutrition Market Size, Share & Trends Analysis
Report, 2020) (Appendix 2). A rise in understanding among young athletes of the importance of
nutrition is also driving the growth of this sector. In order to improve fitness, athletes concentrate
on satisfying their nutritional needs along with the adequate physical activity. In addition,
athletes, coaches, trainers, and fitness enthusiasts typically prioritize meeting nutritional needs,
since training and recovery are affected by nutrition.
The Target Market
Sports are fundamental student activity and popular activity in every high schoos. In the United
States, more than 7 million students regularly participate in high school sports, comprising
approximately 75% of all high school students (Giorgio, P. ,2020). Basketball is the most
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popular sport in terms of number of teams and spectators, with about 170 million event attendees
in 2011 (Howard, 2011; NFHS, 2013, 2014. In the US, almost every high school and university
has basketball clubs with tournaments held year-round. Furthermore, during a 2020 survey of
members of Gen Z aged between 13 and 23 in the United States, 47 percent identified
themselves as NBA fans. (NBA participants, Christina Gough, 2020). Therefore, it is a perfect
market for the business because this is the age to approach technology and social networks the
most.
In addition, the US government always places its citizen’s nutrition situation on top concern.
HHS and the U.S. Department of Agriculture (USDA) play a significant role in nutrition policy
and programs. HHS and USDA jointly publish the Dietary Guidelines for Americans (Dietary
Guidelines) every 5 years to help to make more healthy food and beverage choices.
In a basketball high school team, there are many factors that can affect the athletics meals.
Usually, some coaches can have a fixed meal plan in the competitive season; some can leave it
for athletes and their parents. Due to the variability of various coaches' schedules and methods,
as well as school rules on eating and drinking during the day, an individual strategy needs to be
used to ensure sufficient fuel for players. High school players, therefore, need assistance in not
only deciding the best foods to consume but also the right time to eat in relation to their school
day and practice/training/game schedules.
Base on that research, the company’s market target is high school basketball teams in Detroit city
aged from 13 to 18 years old. They might be players who have poor nutritional habits, do not get
sufficient sleep, and lack proper recovery and training techniques,.. Moreover, besides training,
athletes must also focus on learning, so they do not have enough time to prepare nutritious meals
by themselves or do not have adequate knowledge about nutrition.
Threat & Opportunity
A growing number of gyms and health centers and government operating sports-related activities
drive the demand for sports nutrition products in the nutrition sector. The first obstacles are the
key players in the market such as Glanbia Plc .; Hormel Foods Corporation; Stokely-Van Comp,
Inc .; and MusclePharm. They owe the diverse product offerings, partnerships, agreements, and
ongoing new product launches in the U.S. market. Moreover, these companies have high levels
of customer satisfaction and strong free cash flow.
In order to be competitive with large companies, businesses use penetration pricing - the strategy
to set the initial price of a product or service lower than the prevailing market price. This pricing
strategy will help the firm get access to the market to build brand awareness, attract customers
who have never bought products or loyal customers to competitors' products. On top of that, the
business location is in Detroit - where there are not many competitors yet. So, with a small focus
area, the firm can become the leader in the market through R&D activities and advertising as
well as promotions position.
The second threat comes from the changes in customer behavior. For instance, it might be the
trend of buying online through large wholesale. To deal with this problem, the R&D department
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will rely on new trends in consumer behavior that can open up a new market, for example, meals
packed with the lowest preservatives and home-processed maximize and ordering through the
app. In aother way, it brings a great opportunity for the organization to build new revenue
streams and diversify into new product categories.
PROPOSED MANAGEMENT AND PRODUCTION STRUCTURE SECTION
Management Structure
Cazo is a sole proprietorship company, with ownership 100% from the Director. The director -
Mr. Steve - has more than 10 years of experience in the nutrition industry. Moreover, the head of
other departments in the company also worked for many reputable businesses in food field.
Figure 1: Cazo’s Management Structure
❏ Human Resources Department: Based on the decision of the superior to provide
human resource consultancy for the company, conduct recruitment, training, human
resource management and draft the applicable regulations in the company.
❏ Sales & Marketing Department: Market research and customer needs; Product
development and management; Making marketing plan and marketing activities program
of the enterprise. In addition, Sales will incharde of ccontacting supplier, confirming
information from seller and related department; checking, receiving, approving
documents and classifying contracts; Directly responsible for contracting processes,
Seller Office monitoring systems.
❏ IT Department: organizes, implements and manages the entire information
technology system of the company; Managing and operating business software;
Researching, developing orientations, strategies and developing IT to apply for enterprise
activities in each stage of technology development and transfer; Responsible for all
matters related to the network security and communication activities of the Company;
Receiving requests and troubleshooting during the process of using software, operating
computers, hardware systems ..
❏ Finance Department: planning, reporting and control short and long term business
strategy, investments, internal risk management, auditing and accounting.
❏ Product Department: prepare meals, research food ingredients, nutritionist is
responsible as adviser for athletics, maintain the food safety.
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Cazo requires different skills for each department, and priority is given to employees with
experience in the relevant fields. Applicants after passing 2 interview rooms: phone & face to
face interview will be probed for 2 months with the salary equal to 85% of the salary of the
official employee. Then, the Head of Human Resources will coordinate with the head of the
relevant department to evaluate the performance of employees. Official staff will be contracted
full time. Moreover, there will be orientation sessions to introduce the culture and regulations of
the company, and there will be training sessions on working positions. The salary of the
employee will offer based on work experience, qualifications, and qualifications.
The company's nutritionists are in charge of scientific research and consulting in the fields of
nutrition, food, health, and healthy lifestyles. Nutritionists are people who have expertise in the
human body and holistic health care practices. Depending on the case, a nutritionist will capture
information about the condition and give appropriate advice.
In general, this is the basic management structure of the company at an early stage. Depending
on the market and the financial situation of the company, there will be a change in the
management structure as well as an increase/decrease in the number of employees. After 3 years,
Cazo's plan will expand its business model to neighboring cities and access college/university
basketball tournaments. Therefore, this growth will require a change in the operation of the
business and its management structure.
Nutrition Program Process
The company's application is built for both iOS and Android. Application has a friendly and eye-
catching interface with a diverse nutrition program, suitable for each age and health status of the
athletes. For contracts from teams participating in regional tournaments, athletes who only need
to log in with their own account can select meals based on pre-collected health information. Food
will be delivered at the requested time and location (usually at the tournament lounge or club
room at the high school. If the location is on the outskirts of town, there will be an additional
cost. For this type of contract, it will normally cost $ 5 per meal with meals and fruit, along with
some seasonal discounts. Athletes outside of this group, they need to sign up for an account with
Basic information on health status, favorite foods & drinks to receive accurate recommendations
on the right nutrition.
Secondly, a meeting room with a nutritionist will be open from 9:00 to 5:00 every day from
Monday to Friday. The nutritionist will advise and develop new nutrition regimes and menus
suitable for each team or individual. Questions about nutrition, food ingredients, and some basic
health issues will be answered. The cost of a nutritionist will be calculated as the salary of staff
in the company.
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Figure 2: The Product Line
BUSINESS MODEL CANVAS
Key Partners Key Activities Value
Proposition
Customer
Relationships
Customer
Segments
- Raw Materials
Suppliers
- Local Chamber
of Commerce
- Basketball
Teams in High
School
- Highschool
Basketball
Tournaments
- Investors
- Delivery Partner
- Offers in a
variety of
nutrition
program meals
- App available on
iOS and
Android, bug
fixes and
periodic updates
- Nutritionist
advises
- Advertisement
for Basketball
activities/ event
- Convenience
- Peak Athletic
Performance
- Affordable
Price
-
24/7 chat option in app
active customer services
(phone, email,..)
Complain portal
- Basketball
teams in
Detroit's
high school
- 14-18 ages
both gender
- Poor
nutritional
habits
- Not able/
busy to
prepare
nutrition
meals.
Key Resources
- High quality of
customer service
- Certified food
resources
Channels
- Mobile
application
- Social Media
- Delivery
Cost Structure - Payroll expenses
for employees Revenue Stream
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and delivery
partners
- R&D cost on
application
- Marketing Cost
- Administration
Cost
- Nutrition
Program
- Nutritionist
Advises Fee
- Advertisement
of Basketball
Sponsors/
Teams
PROJECTED INCOME & EXPENDITURE SECTION
Year 1 Year 2 Year 3
Revenue
Nutrition
Program
$619,057 $750,379 $888,270
Advertisement $38,293 $59,041 $92,100
Nutritionist $72,800 $70,120 $112,550
Total $730,150 $879,540 $1092,920
Expenditure
Food $120,190 $119,560 $108,470
Delivery $29,000 $35,000 $42,000
Promotion $14,570 $19,320 $25,480
Administration $34,500 $54,400 $62,670
Staff Salary $279,000 $321,000 $372,000
Total $477,260 $549,280 $610,620
Profit $252,890 $361,760 $482,300
It can see from the table that in 3 year-period, the profit is projected to increase by 30% each
year. This might due to Cazo’s business strategy that focuses on the market gap, offer cheaper
service than other competitors. The revenue mainly comes from the nutrition program which
accounted for 80-85% in total. The price of the program will base on the team’s budget, health
condition, and the kind of contract. For instance, if the team has signed a contract for 1-2 years,
they will get a discount from 5-10%. The other income elements are nutritionist and
advertisement at about 15% of total revenue
In Expenditure, as a startup, the business can not handle the delivery sector, hence the firm might
hire the delivery company. In addition, the Food sector has fallen slowly because the firm has
the discount of raw food from the supplier. Apart from it, the advertisement cost is increased
when the firm plan to expand the market. The wages of employees will be rise every year base
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on their contribution as well as performance. Last but not least, administration costs are usually
considered the fixed cost.
SALES FORECAST
Figure 3: Sales Forecast
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Nutrition Application for High School Basketball Tournaments

REFERENCES
Sports Nutrition Market Size, Share & Trends Report Sports Nutrition Market Size, Share &
Trends Analysis Report By Product. (2020, February). Grandviewresearch.
https://www.grandviewresearch.com/industry-analysis/sports-nutrition-market
Statista. (2019, July 27). Size of the global sports market 2018.
https://www.statista.com/statistics/1087391/global-sports-market-size/
Cianfrone, B. A., Zhang, J. J., Pitts, B., & Byon, K. K. (2015). Identifying key market demand
factors associated with high school basketball tournaments.
Giorgio, P. (2020, December). 2021 sports industry outlook. Deloitte United States.
https://www2.deloitte.com/us/en/pages/technology-media-and
telecommunications/articles/sports-business-trends-disruption.html
Jeukendrup, Asker, and Michael Gleeson. Sport nutrition. Human Kinetics, 2018.
Sports Market Global Opportunities And Strategies To 2022. (2019, May).
Thebusinessresearchcompany. https://www.thebusinessresearchcompany.com/report/sports-
market Maughan, R. J. (Ed.). (2008). Nutrition in sport (Vol. 7). John Wiley & Sons.
Keidel, R. W. (1984). Baseball, football, and basketball: Models for business. Organizational
Dynamics, 12(3), 5-18.
Badenhausen, K., Ozanian, M. K., & Settimi, C. (2007). The business of basketball.
Camiré, M. (2014). Youth development in North American high school sport: Review and
recommendations. Quest, 66(4), 495-511.
A.T. Kearney. “A.T. Kearney Study: Sports Industry Growing Faster Than GDP.” November
2014.
https://www.atkearney.com/news-media/news-releases/news-release/
/asset_publisher/00OIL7Jc67KL/content/id/5273085.
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APPENDICES
Appendix 1
The sports market size in North America from 2009 to 2018, with
forecasts from 2019 to 2023.( Source: Statista.com)
Appendix 2
US. Sports nutrition market size, by product 2016-2027 (USD Billion)
(Source: grandviewresearch.com)
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