Yeshiva of Greater Washington - Fall of 2006

Year Two Results:

All four companies have taken major strides to define their product(s) and the consumer segments they want to target. To list all their marketing, sales, R&D, distribution, and more initiatives would be exhaustive, so this document aims to describe some of the most influential initiatives and the results they produced.

Heart Smart (M. Katz, L. Cohen, Bates, Fink, Oxman) has taken on a risky strategy in Year Two. They sold their remaining inventory from Year 1 for their lower-end product to the Japanese Army. They decided to forgo doing any market research and have instead chosen to relatively blindly invest in BlueTooth technology for their second product: a Heart Rate Monitor that has a BlueTooth headset, XM/FM/AM radio, and other high-tech technology. Heart Smart also spent resources on managing their sales channels. Heart Smart finished Year Two with revenues of $3.2 million, Net Earnings of -$6.1 million, and an ROA (Return on Assets) of -73.3%. Heart Smart is hoping that the Japanese market will warm to their high-tech offering and is undecided what to do with their lower-end product.

My Day Inc. (Y. Katz, Hillman, Kates, Pensak, Y. Cohen) added a limited amount of new functionality (e.g. waterproof to 100 meters, a battery charger, etc.) and limited their amount of investments in their business in Year Two. They chose to sell only one product and to target two markets: 20-40 year olds with a high-tech product and 60+ year olds with a product that is customized to this unique market segment. My Day had limited success with the competitive 20-40 year old market but was extremely successful with the 60+ segment. It bears mentioning that the 60+ segment is growing rapidly. My Day Inc. had revenues of $5.6 million, earnings of -$3.6 million, and an ROA (Return on Assets) of -91.6%.

Monitoring the World Inc. (Franco, Sragg, Silbiger, Sassoon) added some technology to their heart rate monitor with a wireless headset including an FM Transmitter, waterproofing to 50 Meters, and colors. The Monitoring the World product is extremely popular. As a strategic move, Monitoring the World hired two marketing specialists, two sales specialists, and human resources expert. All five hires were helpful in Year Two but should be even more so in Year Three. Monitoring the World was enormously successful in numerous markets especially the 40-60 year old market to both men and women. Their second product is simpler than their first product and was targeted to the 60+ market segment with good success. They finished Year Two with revenues of $11 million, earnings of $104,000, and a positive ROA (Return on Assets) of 1.6%.

Healthy Heart (Schafer, Waxman, Goodman, Silverman) focused on their distribution in Year One. In Year Two, they continued to focus on distribution and sales. They also created a second product and a marketing initiative behind the product that created strong customer demand. The second product is a high-tech product that incorporates GPS technology with the Heart Rate monitor so athletes (e.g. swimmers, bikers, runners) can monitor their heart rates as well as their workout distances, altitude of bike rides, etc. They sold this new product for $350 and had strong sales. They had revenues of $17.3 million, Net Earnings of $231,000 and an ROA (Return on Assets) of 2.6%. Healthy Heart had the strongest performance for Year Two and currently have the best Overall Average ROA with profitability of -28%. Yasher Koach, Healthy Heart!